IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF SAFARICOM)

Authors

  • Joyce W. Kariithi Kenya Methodist University
  • Dr. Mark Odongo Ogutu Kenya Methodist University

DOI:

https://doi.org/10.47941/hrlj.23

Keywords:

organizational performance, strategic human resource management practices, strategic fit, resource based view

Abstract

Purpose: The purpose of the study is to investigate the impact of strategic human resource practices on performance of Safaricom Ltd 

Methodology: The study adopted a cases study research design. Stratified random sampling technique was applied to select the managers from various departments in order to best inform the study results. A questionnaire was the preferred data collection instrument due to its convenience and confidential nature. The data was analyzed using descriptive statistics. Specifically, means, mode and median were the preferred descriptive statistics. The findings were presented in bar charts and graphs.

Results: Findings indicated that that the human resource factors, personal factors and firm level factors contributed to the vertical and horizontal firm between strategic human resource management and competitive strategy. Consequently, it was concluded that Strategic Human management impacted on the superior performance of Safaricom Ltd.

Unique contribution to theory, practice and policy: Since the study established the presence of horizontal fit among human resource function factors, the researcher recommended that Safaricom should continue to align its human recruitment policy with its motivation policy, compensation policy and training policy. For instance, Safaricom should continue recruiting highly qualified individuals, compensate the individuals highly, motivate the individuals highly and train them effectively. In addition, the Safaricom management should allow the HR function to operate flexibly such that the department is able to exercise all the available options relevant to carrying out human resource activities. Furthermore, the investment budget towards Safaricom HR function should be increased so as to enhance the strategic fit and the consequent superior organization performance. The study further recommended a causal study on the statistical relationship between investment in HR function and the performance of Safaricom using the balanced score card concept advocated by Kaplan and Norton

Downloads

Download data is not yet available.

Author Biographies

Joyce W. Kariithi, Kenya Methodist University

Undergraduate student

Dr. Mark Odongo Ogutu, Kenya Methodist University

Lecturer

References

Baird, L., & Meshoulam, I. (1988). Managing two fits of strategic human resource management. Academy of Management Review, 13(1), 116-128.

Barney, J. B. (1986). Types of competition and the theory of strategy: Toward an integrative framework. Academy of Management Review, 11(3), 791-800.

Barney, J. 1995. Looking inside for competitive advantage. Academy of Management Executive, 9(4): 49-61.

Barney, J. B. (1991). Firm resource and sustainable competitive advantage. Journal of Management, 17(1), 99-120.

Becker, B., & Gerhart, B. 1996. The impact of human resource management on organisational performance: Progress and prospects. Academy of Management Journal, 39:779-801.

Bhattacharya, M., & Wright, P.M. (2005). Managing human assets in an uncertain world: applying real options theory to HRM. International Journal of Human Resource Management, 16(6), 929-948.

Bjorkman, I., & Fan, X. (2002). Human resource management and the performance of western firms in China. International Journal of Human Resource Management, 13(6), 853-864.

Bowen, D. E., & Ostroff, C. (2004). Understanding HRM-firm performance linkages: The role of the "˜strength' of the HRM system. Academy of Management Review, 29 (2), 203-221.

Boxall, P. (1998). Achieving competitive advantage through human resource strategy: Towards a theory of industry dynamics. Human Resource Management Review, 8(3), 265-288.

Chan, L. L. M., Shaffer, M. A., & Snape, E. (2004). In search of sustained competitive advantage: The impact of organisational culture, competitive strategy and human resource management practices on firm performance. International Journal of Human Resource Management, 15(1), 17-35.

Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resources management: Tests of universalistic, contingency, and configurational performance prediction. Academy of Management Journal, 39(4), 802-835.

Delaney, J. T., & Huselid, M. A. (1996). The impact of human resource management practices on perceptions of organisational performance. Academy of Management Journal, 39(4), 949-969.

Dutton, J. E., & Ashford, S. J. (1993). Selling issues to top management. Academy of Management Review, 18(3), 397-428.

Fey, C. F., & Bjorkman, I. (2001). The effect of human resource management practices on MNC subsidiary performance in Russia. Journal of International Business Studies, 32(1), 59-75.

Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organisation as a reflection of its top managers. Academy of Management Review, 9(3), 193-207.

Huselid, M. A. (1995).The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635-672.

Huselid, M. A., Jackson, S. E., & Schuler, R. S. (1997). Technical and strategic human resource management effectiveness as determinants of firm performance. Academy of Management Journal, 40(1), 171-188.

Jackson, S. E., & Schuler, R. S. (1995). Understanding human resource management in the context of organisations and their environment. In J.T. Spence, J.M. Darley & D.J. Foss (Eds.), Annual review of psychology (Vol. 46, 237-264). PaloAlto, CA: Annual Reviews, Inc.

Kane, B., & Palmer, I. (1995). Strategic HRM or managing the employment relationship? International Journal of Manpower, 16(5/6), 6-21.

Kerr, J. (1982). Assigning managers on the basis of the life cycle. Journal of Business Strategy, 2(4), 58-65.

Lado, A. A., Boyd, N. G., & Wright, P. (1992). A competency-based model of sustainable competitive advantage: Toward a conceptual integration. Journal of Management, 18(1), 77-91.

Lado, A. A., & Wilson, M. C. (1994). Human resource systems and sustained competitive advantage: a competency-based perspective. Academy of Management Review, 19(4), 699-727.

Lengnick-Hall, C. A., & Lengnick-Hall, M. L. (1988). Strategic human resource management: A review of the literature and a proposed typology. Academy of Management Review, 13(3), 454-470.

Martell, K., Gupta, A., & Carroll, S. J. (1996). Human resource management practices, business strategies, and firm performance: A test of strategy implementation theory. Irish Business and Administrative Research, 17(1), 18-35.

Miles, R., & Snow, C. (1984). Designing strategic human resource systems. Organisational Dynamics, 13(1), 36-52.

Pfeffer, J. (1994). Competitive advantage through people. Cambridge, MA: Harvard Business School Press.

Pfeffer, J., & Salancik, G. (1978). The external control of organizations: A resource dependence perspective. New York: Harper & Row.

Porter, M. (1985). Competitive advantage: creating and sustaining superior performance. New York: Free Press.

Schuler, R.S., & Jackson, S.E. (1987). Linking competitive strategies with human resource management practices. Academy of Management Executive, 1(3), 207-219.

Schuler, R.S., & MacMillan, I.C. (1984). Gaining competitive advantage through human resource management practices. Human Resource Management, 23(3), 241-256.

Tsui, A. S. (1990). A multiple-constituency model of effectiveness: An empirical examination at the human resource subunit level. Administrative Science Quarterly, 35(3), 458-484.

Wei, L. (2006). Strategic Human Resource Management: Determinants of Fit, Research and Practice in Human Resource Management, 14(2), 49-60.

Wright, P. M., & McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295-320.

Wright, P.M., & Snell, S.A. (1998). Toward a unifying framework for exploring fit and flexibility in strategic human resource management. Academy of Management Review, 23(4), 756-772.

Youndt, M. A., Snell, S. A., Dean, J. W., & Lepak, D. P. (1996). Human resource management, manufacturing strategy, and firm performance. Academy of Management Journal, 39(4), 836-866.

Downloads

Published

2016-11-03

How to Cite

Kariithi, J. W., & Ogutu, D. M. O. (2016). IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF SAFARICOM). Human Resource and Leadership Journal, 1(1), 1–18. https://doi.org/10.47941/hrlj.23

Issue

Section

Articles