The impact of strategic human resource management on firm performance and HR professionals' work attitude and work performance

TLDR

An organization exhibits SHRM when its human resources function is vertically aligned with the mission and objectives and horizontally integrated with other functions. The study assesses SHRM’s impact on organizational performance and investigates its effect on human resource professionals’ individual performance, organizational commitment, and job satisfaction. The authors analyzed data from 269 HR professionals in large U.S. manufacturing firms using structural equation modeling.

Abstract

The impact of strategic human resource management (SHRM) on organizational performance is assessed. Additionally, the impact of a SHRM approach on the individual performance, organizational commitment and job satisfaction levels of human resource professionals is investigated. An organization exhibits SHRM when the human resources function is vertically aligned with the mission and objectives of the organization and horizontally integrated with other organizational functions. Data from a national sample of 269 human resource professionals from large US manufacturing firms were analyzed using structural equation modeling techniques. Results indicate that the direct impact of SHRM on organizational performance is positive and significant, as hypothesized. Further, SHRM was found to directly and positively influence individual performance, organizational commitment and job satisfaction. Top managers implementing a SHRM system can, therefore, expect improved organizational performance and improved levels of individual performance, job satisfaction and organizational commitment from the organization's human resource professionals.