Business / Strategic Human Resource Management
Strategic Human Resource Management
Autor: andrew 05 April 2011
Words: 4938 | Pages: 20
Strategic human resource management
effectiveness and . HRM performance
Orlando C. Richard and Nancy Brown Johnson
Abstract This study tests whether strategic human resource management (SHRM)
effectiveness signi. cantly affects organizational level outcomes. Using the resource-based
view of the . rm, this study examines the effective use of human capital on organizational
performance. Further, the role that a contextual factor – capital intensity – plays in
modelling is explored. Results show that SHRM effectiveness signi. cantly reduces
employee turnover and increases overall market performance assessment. However,
SHRM effectiveness affected both . rm productivity and return on equity only when
moderated by capital intensity.
Keywords Human resources; strategy; effectiveness; outcomes.
The interest of strategic management in examining the role of human resources as
value-added has evolved (Baird and Meshoulam, 1988) to broaden the focus of human
resource management research from a micro (i.e. individual effectiveness focus)
approach to a macro (i.e. organizational effectiveness focus) or strategic approach
(Butler et al., 1991). The strategic human resource management perspective (SHRM)
makes evident the importance of human resource practices for organizational performance,
such as employee turnover, productivity and . nancial performance.
The current focus on HRM as integral to . rm's strategic processes involves viewing
HRM activities as a resource contributing to . rm pro. tability as opposed to a cost of
production (Butler et al., 1991; Delery and Doty, 1996; Huselid, 1995; Lado and
Wilson, 1994). However, previous work has concentrated on linking the existence of
individual or sets of HR practices to . rm performance. Huselid et al. (1997) note that
future research needs to go beyond the mere presence of HR practices and their
relationship to . nancial performance to examining the effectiveness of the practices
compared to the desired outcome. They argue that...