Abstract:
In a rapidly changing competitive environment, human resources are one
important source of competitive advantage. Human resource systems can
contribute to sustained competitive advantage through facilitating the
development of competencies that are firm specific. Strategic human
resource management concerns with the creation of a linkage between
the overall strategic aims of business and the human resource strategy
and implementation. The published research generally reports positive
statistical relationships between the greater adoption of HR practices and
business performance. The causal linkage between HR and
organizational performance will enable the HR managers to design
programmes that will bring forth better operational results to attain
higher organizational performance. In this paper, after emphasizing that
the human resources are an important source of competitive advantage,
strategic human resource management is defined. Through spesific
examples from academic research regarding the impact of strategic
human resource management practices on organizational performance,
the conclusion is that the way an organization manages its human
resources has a significant relationship with the organization’s
performance
