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Business and Management Dissertation

The significance of strategic human resource management (SHRM) in organisational effectiveness



Strategic human resource management (SHRM) is a future-oriented practice of developing and applying HR programs that solve and address business predicaments and offer direct contribution to fundamental long-term business goals (Das Gupta 2020, p. 43). Strategic planning offers significant opportunities and challenges for HR professionals. Almost all HR leaders in major international companies participate in strategic decision-making the strategy team. They also acknowledge that strategic planning is an integral component of their task. However, HR professionals in several small firms do not engage in organisational strategic planning (Kramar 2014, p. 1079). As a result, HR departments should persuade senior management about the role of HR in firm’s success to fulfil long term strategic HR goals.

Statement of the Problem

Traditionally, HR management was administrative undertaking focused on routine responsibilities like worker selection and recruiting and managing worker benefits. However, emerging labor market circumstances and novel business ideas mandates HR business strategies that incorporate enlisting and retaining the appropriate people, and providing cultural and ethical leadership (Dimba 2010, p. 135). The growing significance of HR in the strategic planning and success of firms is vital in ushering a new approach in organisations. Although SHRM has emerged as the new frontier of organisational success, little research has been conducted on how the integration of HR perspectives in the strategic objectives of firms leads to organisational effectiveness. There is a need for a comprehensive study to examine how SHRM contributes to the effectiveness. The proposed study examines the significance of strategic human resource management (SHRM) in organisational effectiveness.

Research Objectives

The study will evaluate significance of strategic human resource management (SHRM) in organisational effectiveness. The research objectives include

  • To examine the meaning of SHRM and its role in contemporary firms
  • To evaluate the emergence of SHRM as an organisational imperative
  • To investigate how SHRM enhances organisational outcomes
  • To examine the significance of SHRM in organisational effectiveness

Key Research Questions

The major research questions of the study include;

  • What is the meaning of SHRM and its role in contemporary firms?
  • What is the historical emergence of SHRM as an organisational imperative?
  • How does SHRM enhance organisational outcomes?
  • What is the significance of SHRM in organisational effectiveness?


The study on the significance of strategic human resource management (SHRM) in organisational effectiveness is vital since it covers an important area of business and management. SHRM is an emerging organisational imperative that seeks to merge HR objectives and the long term strategic goals of a firm. Therefore, examining how SHRM contributes to the effectiveness of a firm will help many stakeholders to understand how the dynamic is vital in business. The study is important to scholars, HR professionals, business organisations, governments, and policy makers. Scholars will use the findings of this study to extend discourse on the role of SHRM in organisational effectiveness. HR professionals will use this study to understand the significance of along HR objectives and the long-term strategic goals of firms. Policymakers and governments will use this study to develop policy and laws guiding HR practice, while organisations will use this study to understand the vital role of merging HR and strategic objectives.

Preliminary Literature Review

The significance of SHRM in the effectiveness of firms is based on its role in influencing competitive advantage. According to Khawaja et al. (2014, p. 84) HR contributes to competitive advantage in organisations through strategic human resource management. SHRM improves organisational effectiveness by providing a framework for HR to enhance competitive advantage. SHRM enhances a firm’s competitive advantage which influences a company’s effectiveness and performance. The role of utilising HR in strategic decisions is a vital component organisational effectiveness since in makes firms optimise HR capabilities in enhancing performance. SHRM makes it possible to incorporate HR in strategic planning and decision-making which contribute to effectiveness.

Organisations can benefit from the alignment of HR and business strategy by gaining the ability to respond and anticipate customer needs as well as maintaining competitive advantage. Rigorous research, development, and planning of workforce culture, competencies and behaviours support the successful implementation of business strategy (Marler 2013, p. 247). The benefits of HR strategic planning include avoiding disruptive and costly surprises that inhibit the attainment of goals, addressing major issues faster to avert crises, enhancing employee productivity the general success of firms, and providing a bearing to influence how work is done positively affect (Gurbuz & Mert 2011, p. 1818). The other benefits include making workers to focus on company goals, offering a strategic focus that guides development and training initiatives, and providing leaders tools to implement and focus strategic initiatives.

SHRM can be linked to organisational effectiveness by examining how commercial strategy relates with effectiveness. There is a direct and positive association between SHRM and business effectiveness (Nigam et al. 2011, p. 151). This is based on the fact that business strategy affects the connection between SHRM and effectiveness, and this relationship is moderated by SHRM. By enhancing the effectiveness of firms, SHRM makes it possible for firms to improve their performance and attain competitiveness advantage. Therefore, the role of SHRM in influencing organisational performance can be examined in the impetus of enhancing performance through the merging of HR capabilities and strategic planning.

SHRM underscores the link between strategic implementation and human resources (HR) in organisations. An organisations effectiveness and performance is based on the connection between strategy and the use of HR as a competitive advantage (Harrison & Bazzy 2017, p. 1263). This implies SHRM influences organisational effectiveness by combining business strategy and human resources to generate competitive advantage. Through the combination of these two dynamics a firm increases its chances of effectiveness, performance, and competitiveness.

Large transnational firms use SHRM to enhance their performance, indicating its significance in contributing to organisational effectiveness. SHRM practices like compensation, development, and training systems predict organisational performance (Dimba 2010, p. 134). There is an indirect relationships between SHRM functions and organisational performance, which is moderated by motivation. By enhancing the motivation of workers, SHRM enhances the effectiveness and performance of firms.

Method Section

The study will utilise mixed methods research methodology in examining the significance of strategic human resource management (SHRM) in organisational effectiveness. Mixed methods research denotes the combination of qualitative research methodology and quantitative research methodology in one research (Clark & Ivankova 2015, p. 22). Therefore, this method involves the use of two methods of research in examining a subject matter. Mixed method approach helps researchers incorporate qualitative and quantitative approaches in research which enhance the attainment of research outcomes. Whereas quantitative method examines the statistical data of a subject matter, qualitative approaches focuses on patterns, trends, and developments in the subject matter (Clark & Ivankova 2015, p. 54). Using multi-methods research helps examine the statistical and qualitative data and dimensions of a subject matter which enhances the attainment of research goals. Mixed methods approach is appropriate for this study since it examines both qualitative and quantitative aspects. SHRM is a broad field of research that involves patterns, theories, and trends in organisations as well as data about a firms strategic goals. Using mixed methods will enhances the effectiveness of this research.

A sample of 16 participants drawn from HR professionals, senior managers, leaders, and strategic management experts and professional will be examined in this study. The participants will provide data in the significance of SHRM in organisational effectiveness. Their responses will be used to answer the research question and examine the subject matter exhaustively.

Data Collection

Primary and secondary data will be collected for the study on the significance of strategic human resource management (SHRM) in organisational effectiveness. Secondary data refers to data collected for a different purposes but available and relevant to the current study (Vartanian 2011, p. 72). Secondary data is vital in informing theory about SHRM and how it influences organisational success. Secondary data will be collected in the form of books, journal articles, magazines, newspapers, and other published materials on the subject. Primary data denotes data collected by a researcher from participants directly on the subject matter (Helen 2013, p. 62). Primary data is vital in providing original information about a subject matter and it helps answer the research question directly. Primary data will be collected using questionnaires and observation.

Questionnaires and Observation

Questionnaires offer an opportunity for respondents to provide feedback on research questions. The data collection instruments involves a list of questions in the subject matter for participants to respond. Open ended questionnaires are most suitable since they offer room for additional information and further explanations (Humble 2020, p. 52). This study will use open ended questionnaires which will help collected large volumes of quality and relevant data on the subject matter.

Observation will be used to collect data about the role of SHRM in influencing organisational effectiveness. Through observation the researcher will examine the subject matter and record the observation which will be subjected to further analysis. Observation is effective for this study since it make it possible for the researcher to make original and accurate observations about the role of SHRM in organisational effectiveness.

Data Analysis

Data will be analysed using descriptive statistics and thematic analysis, which will enable the researcher to interpret the data in view of the research questions. Descriptive statistics denotes a summary of characteristics of countable data (Holcomb 2016, p. 29). It will be used to analysis quantitative data on the significance of SHRM in organisational effectiveness. Thematic analysis denotes ascertaining, evaluating, and interpreting forms of meaning within qualitative data (Braun & Clarke 2021, p. 49). Thematic analysis will be used to analyses qualitative data in the significance of SHRM on organisational effectiveness. Through these two methods, the study will evaluate data and make the necessary interpretations about its deeper meaning.

Ethical Considerations

The study will be conducted by considering ethics dimensions of free and informed consent, privacy, confidentiality, and approval by ethical boards. Ethical considerations in research denote the institutional arrangement, values, and norms developed to regulate research processes (Antonio 2018, p. 31). All participants will be required to make free and informed consent before taking part in the research, and the data collected from participants will only be used for research purposes and will not be revealed to third parties. The researcher will obtain all approvals before commencing the study.

Reference List

Antonio, S., Ana, F., & Elena, U. (2018) Ethics in Research Practice and Innovation

Braun, V. & Clarke, V. (2021) Thematic Analysis: A Practical Guide. Sage.

Clark, V. L. P. & Ivankova, N. V. (2015) Mixed Methods Research: A Guide to the Field. Sage Publications.

Das Gupta, A. (2020) Strategic Human Resource Management: Formulating and Implementing HR Strategies for a Competitive Advantage. Routledge/Taylor & Francis Group.

Dimba, B. K. (2010) “Strategic human resource management practices: effect on performance”, African Journal of Economic and Management Studies, 1(2), 128-137.

Gurbuz, S. & Mert, I. S. (2011) Impact of the strategic human resource management on organizational performance: evidence from Turkey. The International Journal of Human Resource Management, 22(8),1803-1822

Harrison, T. & Bazzy, J.D. (2017) “Aligning organizational culture and strategic human resource management”, Journal of Management Development, Vol. 36 No. 10, pp. 1260- 1269.

Helen, K. (2013) Collecting Primary Data: A Time-Saving Guide. Policy Press.

Holcomb, Z. C. (2016) Fundamentals of Descriptive Statistics. Taylor & Francis.

Humble, S. (2020) Quantitative Analysis of Questionnaires: Techniques to Explore Structures and Relationships. Routledge, Taylor & Franis Group.

IGI Global.

Khawaja, K., Azhar, S. M. & Arshad, A. (2014) Examining Strategic Human Resource Management and Organizational Effectiveness in Pakistani Organizations. International Journal of Human Resource Studies, Vol. 4, No. 3, 2014, Available at SSRN:

Kramar, R. (2014) Beyond strategic human resource management: is sustainable human resource management the next approach? The International Journal of Human Resource Management, 25(8), 1069-1089

Marler, J. H. (2013) Strategic Human Resource Management in Context: A Historical and Global Perspective. Academy of Management Perspectives, 26(2)

Nigam, A.K., Nongmaithem, S., Sharma, S., & Tripathi, N. (2011) “The impact of strategic human resource management on the performance of firms in India: A study of service sector firms”, Journal of Indian Business Research, Vol. 3 No. 3, pp. 148-167.

Vartanian, T. P. (2011) Secondary Data Analysis. Oxford University Press, USA.


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