Business Strategy, SHRM, HR Outcome and Organizational Performance : Evidence From an Indian Industry
Over the past decade, there has been an increasing emphasis by researchers and practitioners alike on the importance of human resources as one of the key ways of gaining a competitive advantage for a firm. Consequently, numerous researches have been conducted on business strategy and its effect on human resource management within the context of firm performance. Most of the research on this theme have been conducted in USA, and very less number of research are conducted in the context of emerging economy like India. Further, the controversies related to the suitable methodology require the use of alternative methodologies, such as case studies for studying the relationship between business strategy and HRM. The study aims to understand the relationship among Business strategy, SHRM activities, HR Outcome and Organizational Performance variables in the context of an Indian industry. For this purpose qualitative and quantitative data were collected from various the largest public sector steel making company of India. The result illustrates importance of business strategy in planning and implementing SHRM practices. It also agrees that SHRM variables are primarily based on the business strategy adopted by the organization. Further, the study also supplements the existing literature on SHRM by agreeing to a fact that SHRM practices are designed to achieve some deliberately identified HR outcomes such as commitment, satisfaction, motivation etc. Further, the paper also witnessed that relevant HR outcome always contributes to the company in the form of better organizational performance. (original abstract)
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