The Role of Strategic Human Resource Management in Enhancing Organizational Effectiveness

Abstract

This quantitative research was aimed at investigating the position of Strategic Human Resource Management (SHRM) in determining organizational effectiveness in Pakistani organizations. In particular, the paper examined the association between SHRM practices and organizational performance, measured the effectiveness of the major dimensions of SHRM training, performance management, and talent development on employee performance, and the role of SHRM in enhancing efficiency, innovation, and competitive advantage of the organization. The sample of 180 HR managers was sampled in terms of self-administered Likert-scale questionnaire and the data were analyzed by using regression, multiple regression and ANOVA. The findings showed that the SHRM practices have a substantial influence on the organizational effectiveness, and the most influential dimension was the training of the employees. Further, the companies that had been more adopted in SHRM had been found to be more efficient, innovative and had competitive advantage. This paper notes the strategic relevance of aligning the HR practices and the organizational objectives to enhance the capability of its workforce, the performance of its operations, and future development. The findings have a significant implication to managers, HR professionals, and policymakers that seek to use human capital as a form of strategic resource.