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Article Abstract

International Journal of Trends in Emerging Research and Development, 2024;2(2):75-80

The impact of strategic human resource management on organizational performance

Author : Neetu Jindal

Abstract

In a rapidly evolving competitive landscape, human resources represent a crucial source of competitive advantage. Effective human resource systems can foster a sustained edge by developing firm-specific competencies. Strategic human resource management (SHRM) focuses on aligning human resource strategies with the overall strategic goals of a business. Research indicates a positive correlation between the adoption of comprehensive HR practices and improved business performance. The 21st-century business environment is marked by rapid changes due to factors such as globalization, technological advancements, shifts in consumer preferences, and environmental fluctuations. As competition intensifies and markets become more dynamic, organizational performance becomes increasingly vital. Success is measured through various indicators, ensuring that companies remain competitive globally. Proper management of human resources is essential for maintaining this competitiveness. It is crucial to strategically manage HR to achieve organizational goals and adapt HR strategies in alignment with the overall business strategy.

SHRM has become a key factor in the success of businesses within this competitive environment. It encompasses the principles and practices that align HR management with the strategic and long-term objectives of an organization, with a focus on human capital. The foundation of SHRM lies in developing methodologies for long-term people management, which helps organizations gain a competitive advantage. SHRM involves integrating human resource management with the strategic management of the organization to achieve its goals effectively and efficiently. This study aims to explore the impact of strategic human resource management on organizational performance.

Keywords

Human, resource, management, strategic management