Strategic Human Resource Management and Organizational Success: A Study of Turnover, Productivity, and Economic Outcomes

Abstract

In the recent scholarship, Human Resource Management (HRM) has come to be more and more recognized as a strategic activity that can have a significant impact on the behavior of employees, the effectiveness of organizations, and long-term economic results. The current treatise presents a thorough re-statement of how HRM practices influence employee turnover, organizational performance and economic performance with specific reference given to organizations in developing economies. The mixed-methods research design was used to collect quantitative information among HR professionals and managers and qualitative information among senior executives. Structural Equation Modelling (SEM) was called on to question both direct and indirect relationships among the major variables. Based on the Resource-Based View (RBV), Human Capital Theory, and the Ability-Motivation-Opportunity (AMO) model, the results indicate that a strategic- oriented HRM practices significantly reduce the intention to leave, increase the organizational productivity and economic performance. Moreover, HRM practices and financial results are connected through organizational productivity to some extent. The research has a substantive contribution to the strategic HRM literature, because it combined various dimensions of performance into one analytic framework, without losing references to the original sources; it included other quality scholarly sources. The article has good theoretical input and practical implications to managers and policymakers who want to attain sustainable organizational performance by using efficient HRM systems.