A CRITICAL REVIEW OF STRATEGIC HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE

Author's Name: Dr. Revenio C. Jalagat, Jr.
Subject Area: Social Science and Humanities
Subject Business Management
Section Research Paper

Keyword:

SHRM, HPWS, HR Strategy, Business Strategy, Organizational Performance, Competitive Advantage


Abstract

The objective of this paper is to discuss the significant relationship between High Performance Working System (HPWS) as the main component of Strategic Human Resource Management (SHRM) and organizational performance as basis in determining sustainable competitive advantage. Moreover, it also examines the connectivity between HR strategy and business strategy. Findings affirmed the relationship between SHRM-HPWS and organizational performance both financial and non-financial (employee outcome) based on the examination of literatures as evidenced. HR strategy is also connected to business strategy as it contributes to the keeping of quality customer satisfaction, superior quality performing and loving employee, and maintaining the dedication and commitment of the employees to the organization for successful and sustainable competitive advantage. Thus, it enhances employee development, motivation and commitment to stay longer in the company. To conclude, organizational performance can be achieved through different sources to sustain competitive advantage. The conceptual framework also reflects how the analysis comes into conclusion.

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