Strategic Human Resource Management and its Impact on Organisational Performance

In Today’s volatile environment, organizations are facing emerging challenges in the form of Competitive advantage. Human resources are the assets for an organisation. These assets play a major role towards enhancing the performance of a company. HRM Practices facilitate the development of completeness among the company employees that are specific to an organisation. Strategic HRM focuses on the setting up of a causal link between the overall strategic objectives of an organisation and its HR strategy and its implementation. This research concludes that there exists a positive relationship between good HR practices and business performance. The understanding of casual linkage between the SHRM practices and organisational performance of business enables the HR managers to design programmes that would lead to better operational results. It also helps the organisation to perform better and achieve higher goals. In this paper, the concept that human resources are an important source of competitive advantages has been emphasised. Thereafter, SHRM is defined. Specific examples from academic researchers have been considered to emphasise the influence of SHRM practices on the performance of an organisation. The conclusion reached is that the way an organisation manages, and sustains its human resources has a remarkable relationship with its performance and achievements.