Impact of Strategic Human Resource Management on Employee Selection and Training in Organizational Performance

¶ … Management and Decision Sciences

Information Systems Management

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The Impact of Strategic Human Resource Management on Employee Selection and Training in Organizational Performance

Statement of Your Research Problem or Area of Inquiry:

Strategic human resource comprises of human resource activities which are aligned in such a way that they help the organization to achieve its strategic goals (Wright & McMahan, 1992). Strategic management has a long-term effect on the performance of the organization. Therefore, it is very important to align the human resource activities of the organization with the strategic management (Bratton, 2003). Wei (2006) concludes in the research that effective strategic human resource management (SHRM) leads to quality of human capital of the company as well as the financial performance of the organization. Employee training is an investment through which the performance of employees and also the overall organizational performance are improved (Carl & Inagmar, 2000). Most researches focus on the impact of general Human Resource practice but this paper investigates the effect of Strategic Human Resource Management practices regarding the selection and training on the performance of the organization. The problem addressed in this research paper is to study the long-term and short-term effect of strategic HR management on training and selection of the employees in any organization. Selection of employees is very critical because efficiency of human capital determines the efficiency of the organization (Mondy, 2009). According to Martell, Gupta, & Carroll (1996) strategic HRM have a positive effect on performance of organization. Training and selecting according to strategic activities lead towards a more productive end effective human capital which performs better.

Theories or Prior Research Related to the Problem or Area of Inquiry:

The theoretical foundation for this study will be implicit human resource management theory. Implicit theory posits that individuals hold belief systems about their organizations based on personal experiences, perceptions, and interpretations (Price, 2007). Thus, information about organizational performance communicated by individuals within the organization may be biased (Burnett, Pollack, & Hoyt, 2010; Heslin & VandeWalle, 2008; Yorkston, Nunes, & Matta, 2010). Gardner and Wright (2009) extended implicit theory and examined the possibility of potential bias in data about organizational human resource (HR) practices. This bias is provided by individuals and based on an implicit theory of human resource management.

Goals, Purpose and Potential Significance of Your Research:

The purpose of this quantitative correlation research is to examine the relationship between SHRM functions and its impact on organization performance. The results of this study may help firms to bring in the finest talent and choose members that will maintain a competitive advantage in the organization.

Research Questions

1. To what extent does Human resource practices relates to overall organizational performance?

2. To what extent does employee selection relates to overall organizational performance?

3. To what extent does employee training relates to overall organizational performance?

4. Which is more related to overall organizational performance, employee selection or employee training?

Hypotheses

H-1o: There is no relationship between the human resource practices and overall organizational performance.

H-1a: There is a relationship between the human resource practices and overall organizational performance.

H-2o: There is no relationship between the employee selection and overall organizational performance.

H-2a: There is a relationship between the employee selection and overall organizational performance.

H-3o: There is no relationship between the employee training and overall organizational performance.

H-3a: There is a relationship between the employee training and overall organizational performance.

H-4o: Employee selection and training has no impact on overall organizational performance

H-4a: Employee selection and training has an impact on overall organizational performance

Your Research Design and Methodology:

Type of Inquiry:

Check one

Qualitative Research

Quantitative Research

X

Both Qualitative and Quantitative Research

Method of Inquiry:

A quantitative research design will be used to study and provide a more comprehensive understanding of the independent variable strategic human resource management. Strategic human resource management (SHRM) is a strategic approach to manage human resource, and all organizational activities, which affect the behavior of individuals in an effort to formulate and implement planned strategies to help an organization achieve business objectives (Gomez-Mejia, Balking, & Cardy, 1995). Quantitative data will be gathered from the companies. This data will consist of the performance of employees in the form of sales, commission or KPIs. Attendance and training need assessment will also be used to measure the performance of sample population.