Strategic human resource management and organizational performance: a review of literature and research framework

The primary objective of this paper is to present a review of literature on theories and empirical studies on the relationship between Strategic Human Resource Management (SHRM) and organizational performance and derive a framework for further research. Three central issues emerged in this paper. First, that a growing body of evidence converge to suggest that changes taking place in the global business environment often are not accompanied by complementary changes in human resource management practices leading to a situation whereby the failure of some firms is due to the mismanagement of people rather than to problems with technical systems per se. Secondly, that this is because organizations have achieved relatively low levels effectiveness in implementing Strategic Human Resource Management (SHRM) practices especially in emerging economies of Asia and other developing countries in Africa like Nigeria that are exposed to the challenges and opportunities of globalization. Finally that in order to manage employees for competitive edge, human resource personnel must possess competencies relevant for implementing such strategic HRM policies and practices. Guided by theoretical perspectives such as the firm’s resource-based theory of competitive advantage and empirical studies, this paper develops a research framework to guide further research in strategic HRM to prepare organizations especially in the developing world for the challenges of globalization.