Strategic Human Resource Management and Organizational Performance: A Comprehensive Review: case study about employees at Ninewells Hospital, Dundee, UK
DOI:
https://doi.org/10.37376/deb.v44i1.7609Abstract
Human resource management (HRM) enables making sustainable organisational performance a reality for today›s dynamic business environment. HR practice alignment and organisational strategy have been among the biggest forces driving innovation, employee engagement, and competitive success. This article presents an overview of the history of HRM from administrative work to being an organisational strategy partner and its contribution to organisational performance. Based on extensive literature review and some recent theory such as Resource-Based View (RBV) and Human Capital Theory, in this study an analysis has been presented on how strategic HR practices such as talent management, performance management, employee development, and diversity management have influence on employee›s performance along with organisational performance. The study also addresses the role of leadership, organisational culture, technology such as artificial intelligence, in trying to conceptualise HR effectiveness. For organisational leaders and HR practitioners in best practice and trends in world-class companies, implications of the study are noted. The study reiterates the importance of strategic HRM and alignment of firm strategy in response to changing labour markets and generating long-term value. Research implications are developed to build strategic competencies of HR functions, and suggestions are given for future research..
Downloads
References
Aguinis, H. (2009). Performance management (2nd ed.). Pearson Prentice Hall.
Armstrong, M., & Taylor, S. (2020). Armstrong’s handbook of human resource management practice (15th ed.). Kogan Page.
Armstrong, M., & Taylor, S. (2023). Armstrong’s handbook of human resource management practice (15th ed.). Kogan Page.
Avolio, B. J., & Bass, B. M. (2004). Multifactor leadership questionnaire manual (3rd ed.). Mind Garden.
Barney, J. B. (2021). Firm resources and sustained competitive advantage: Ten years later. Journal of Management, 47(1), 1–25.
Bass, B. M. (1999). Two decades of research and development in transformational leadership. European Journal of Work and Organizational Psychology, 8(1), 9–32. https://doi.org/10.1080/135943299398410
Bass, B. M., & Riggio, R. E. (2006). Transformational leadership (2nd ed.). Psychology Press.
https://doi.org/10.4324/9781410617095
Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: Where do we go from here? Journal of Management, 32(6), 898–925. https://doi.org/10.1177/0149206306293668
Becker, G. S. (2022). Human capital: A theoretical and empirical analysis (3rd ed.). University of Chicago Press.
Bock, L. (2015). Work rules!: Insights from inside Google that will transform how you live and lead. Twelve.
Boggild, H., Knudsen, L., & Kristensen, T. S. (2017). Job strain and cardiovascular health: A review. Scandinavian Journal of Work, Environment & Health, 43(4), 289–298. https://doi.org/10.5271/sjweh.3647
Bondarouk, T., & Brewster, C. (2022). Conceptualizing digital HRM: A framework for analysis. Human Resource Management Review, 32(2), 100839.
Boxall, P., & Purcell, J. (2016). Strategy and human resource management (4th ed.). Palgrave Macmillan.
Boxall, P., & Purcell, J. (2023). Strategy and human resource management (5th ed.). Palgrave Macmillan.
Cascio, W. F., & Montealegre, R. (2022). How technology is changing work and organizations. Annual Review of Organizational Psychology and Organizational Behavior, 9(1), 1–25.
Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions. Academy of Management Journal, 39(4), 802–835. https://doi.org/10.5465/256713
Delery, J. E., & Roumpi, D. (2023). Strategic human resource management: Definitions and frameworks. Academy of Management Perspectives, 37(1), 10–25.
Den Hartog, D. N., Boon, C., Verburg, R. M., & Croon, M. A. (2013). HRM, communication, satisfaction, and perceived performance: A cross-level test. Journal of Management, 39(6), 1637–1665. https://doi.org/10.1177/0149206312440118
Dessler, G. (2020). Human resource management (16th ed.). Pearson.
Dobbin, F., & Kalev, A. (2016). Why diversity programs fail. Harvard Business Review, 94(7/8), 52–60.
Farndale, E., Scullion, H., & Sparrow, P. (2023). The role of the corporate HR function in global talent management. Journal of World Business, 58(1), 101345.
Guest, D. E. (2022). Human resource management and employee well-being: Towards a new analytic framework. Human Resource Management Journal, 32(1), 22–39.
Huselid, M. A. (2013). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635–672. https://doi.org/10.5465/256741
Jackson, S. E., Schuler, R. S., & Jiang, K. (2022). An aspirational framework for strategic human resource management. Academy of Management Annals, 16(1), 1–54.
Jehanzeb, K., & Bashir, N. A. (2022). Training and development program and its benefits to employee and organization: A conceptual study. European Journal of Training and Development Studies, 4(1), 29–46.
Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2022). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of Management Journal, 65(4), 1056–1084.
Kaplan, R. S., & Norton, D. P. (2022). The balanced scorecard: Measures that drive performance. Harvard Business Review, 100(1), 172–180.
Katou, A. A. (2015). Transformational leadership and organisational performance: The mediating role of innovation. Journal of Business Research, 68(11), 2419–2426. https://doi.org/10.1016/j.jbusres.2015.02.004
Kaufman, B. E. (2015). Theoretical perspectives on work and the employment relationship. In B. E. Kaufman (Ed.), Theoretical perspectives on work and the employment relationship (pp. 1–43). Industrial Relations Research Association.
Kaufman, B. E. (2022). The evolving concept of strategic HRM. Human Resource Management Review, 32(4), 100831.
Kniffin, K. M., Narayanan, J., Anseel, F., Antonakis, J., Ashford, S. P., Bakker, A. B., ... & van Vugt, M. (2022). COVID-19 and the workplace: Implications, issues, and insights for future research and action. American Psychologist, 76(1), 63–77.
Kryscynski, D., & Ulrich, D. (2015). Making strategic human capital relevant: A time-sensitive opportunity. Academy of Management Perspectives, 29, 357–369.
Legge, K. (2005). Human resource management: Rhetorics and realities (Anniversary ed.). Palgrave Macmillan.
Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2023). Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review, 33(1), 100807.
Leicht-Deobald, U., Busch, T., Schank, C., Weibel, A., Scherer, A., & Schlegel, M. (2019). The challenges of algorithm-based HR decision-making for personal integrity. Journal of Business Ethics, 160(2), 377–392. https://doi.org/10.1007/s10551-019-04204-w
Lepak, D. P., Liao, H., Chung, Y., & Harden, E. E. (2023). Human resource management and organizational performance: Integrating strategic and behavioral perspectives. Academy of Management Annals, 17(1), 1–61.
Marler, J. H., & Boudreau, J. W. (2023). An evidence-based review of HR analytics. Human Resource Management, 62(1), 1–16.
Minbaeva, D. (2023). Building credible human capital analytics for organizational advantage. Human Resource Management Review, 33(2), 100814.
NHS Employers. (2020). Staff retention and development strategy. https://www.nhsemployers.org
Nielsen, K., Nielsen, M. B., Ogbonnaya, C., Känsälä, M., Saari, E., & Isaksson, K. (2023). Workplace resources to improve both employee well-being and performance: A systematic review and meta-analysis. Work & Stress, 37(1), 1–26.
Page, S. E. (2007). The difference: How the power of diversity creates better groups, firms, schools, and societies. Princeton University Press.
Pfeffer, J. (1998). The human equation: Building profits by putting people first. Harvard Business Press.
Renwick, D. W. S., Redman, T., & Maguire, S. (2022). Green human resource management: A review and research agenda. International Journal of Management Reviews, 24(1), 24–48.
Roberson, Q. M. (2023). Diversity and inclusion in the workplace: A review, synthesis, and future research agenda. Annual Review of Organizational Psychology and Organizational Behavior, 10, 351–372.
Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600–619. https://doi.org/10.1108/02683940610690169
Schneider, A., Zollo, M., & Whittington, R. (2020). Strategic management and the circular economy: Integrating a circular lens. Journal of Management Studies, 57(4), 715–751. https://doi.org/10.1111/joms.12580
Sharma, R., & Singh, G. (2023). Performance management systems and their impact on organizational effectiveness. International Journal of Productivity and Performance Management, 72(3), 581–600.
Sheehan, M. (2023). Strategic HRM challenges in the 21st century: A contingency perspective. Human Resource Management Review, 33(1), 100801.
Shen, J., Chanda, A., D’Netto, B., & Monga, M. (2009). Managing diversity through human resource management: An international perspective and conceptual framework. The International Journal of Human Resource Management, 20(2), 235–251. https://doi.org/10.1080/09585190802670516
Storey, J. (2007). Human resource management: A critical text (3rd ed.). Thomson Learning.
Strohmeier, S., & Piazza, F. (2022). Artificial intelligence techniques in human resource management – a conceptual exploration. Journal of Business Research, 138, 366–374.
Subramony, M., Krause, N., & Grohmann, B. (2023). Strategic HRM and organizational learning: Developing capabilities for innovation. Human Resource Management Journal, 33(2), 300–317.
Taylor, S., McNamara, J., & Yuen, K. F. (2023). Strategic HRM and organizational performance in healthcare: A meta-analysis. Health Care Management Review, 48(2), 112–123.
Tursunbayeva, A., Pagliari, C., Bunduchi, R., & Franco, M. (2018). Human resource information systems in health care: A systematic evidence review. Journal of the American Medical Informatics Association, 25(4), 413–427. https://doi.org/10.1093/jamia/ocx048
Ulrich, D., Brockbank, W., Johnson, D., Sandholtz, K., & Younger, J. (2008). HR competencies: Mastery at the intersection of people and business. Society for Human Resource Management.
van Esch, P., & Black, J. S. (2019). Factors that influence new generation candidates to engage with and complete digital, AI-enabled recruiting. Business Horizons, 62(6), 729–739. https://doi.org/10.1016/j.bushor.2019.07.004
Wright, P. M., Gardner, T. M., Moynihan, L. M., & Allen, M. R. (2005). The relationship between HR practices and firm performance: Examining causal order. Personnel Psychology, 58(2), 409–446. https://doi.org/10.1111/j.1744-6570.2005.00487.x
Wright, P. M., & McMahan, G. C. (2022). Exploring human capital: Putting ‘human’ back into strategic human resource management. Human Resource Management Journal, 32(1), 3–15.
Wright, P. M., & Nishii, L. H. (2013). Strategic HRM and organizational behavior: Integrating multiple levels of analysis. In J. Paauwe, D. E. Guest, & P. M. Wright (Eds.), HRM and performance: Achievements and challenges (pp. 97–110). Wiley.
Wright, T. A., Kroll, M. J., & Wang, W. (2023). High-performance work systems and manufacturing productivity: A multilevel investigation. Journal of Operations Management, 68(1), 1–17.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Dirasat in Economics and Business
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
