Examining Strategic human resource management and organizational effectiveness in Pakistani organizations

Abstract

Purpose

SHRM is facing potential theoretical challenge in terms of unveiling “black box” mystery lies between logical and strategic application of SHRM and its impact on organizational effectiveness. To explore the gap between HR contribution and competitive advantage gained by the organizations, a viable mediating framework is needed in SHRM.

Design/Methodology/Approach

In the awake of rising world interest in SHRM, this paper aimed to analyze the scholarly works on SHRM those offer to stimulate mechanisms and configurations through which SHRM can serve to improve organizational effectiveness. Outcome of the debate is likely to use in future empirical research.

Findings

Organization needs to distinguish itself in performance and strategy from the other organizations. Improvement in resources helps the organizations to gain competitive advantage. Resource-based view of the firm used as a lens for this study explains that difference in business’s performance is dependent upon resources owned by the business. This study attempts to offer a framework that proposes a strategy to distinguish itself in performance. HRM management set up in an organization gets influenced by HR system, and practices prevalent in the organization, workforce skills, employee level of competence, employee commitment and engagement. An organization cannot remain aloof from the repercussions of extraneous conditions such as political, economic, sociological, technological, legal and environment.

Limitations and Future Research Directions

This conceptual study is limited to state and status of strategic HRM activities in Pakistani organizations. Future study may conduct empirical research by including employee perceptions as unit of analysis at the province level.

Practical Implications

The study is of great value to Pakistani organizations to excel on organizational effectiveness to optimize financial performance. This study offers a practical and rudimentary framework to implement desired strategic human resource management to gain organizational effectiveness.

Key words

SHRM, organizational effectiveness, Pakistan, framework