MMO Presentation

The Impact of Strategic Human

Resources Management on the Performance of Firms in India

Presented by Group 4Aftina / Alfin / Ali / Azhar / Ferry / Iman / Indri

A study of service sector firms

Ajit Kumar Nigam, Sonia Nongmaithem, Sudeep Sharma, Nachiketa Tripathi

Journal of Indian Business Research, 2011

Background

• Transition from traditional HRM

become SHRM

• Dependence on Human Resource in

service sector industry is more

critical compared to other sectors

• No studies yet about SHRM in India’s

Service Sector Industry

Objectives

• Investigate relationship between SHRM and performance in service sectors firms in India

• Does the universalistic, contingency & configurational perspective of SHRM hold true in India

• Does the extent of impact of SHRM vary amongst the sub sector within the service sector

3 Methodology & Theory

• Methodology− Sample by questionnaires

• 25 organizations (n=750)• Location : Bangalore,

Chennai, Delhi, Kolkata, Mumbai

• Service sectors : transportation (309), finance (161), IT (280)

−CFA

• Strategic HRM theories− Universalistic− Contingency− Configurational

Set 1 : Business Strategy

Set 2 : SHRM

System Orientation

(17 Qs)

Organization Capability

(25 Qs)

Performance

Effectiveness

Independent Variables

7 point of scale

- Participative decision making- Internal orientation- Job security- Objective performance appraisal

- Strategic HRM- Technical HRM- Strategic HR capability- Technical HR capability

- Quality- Quantity- Flexibility- Efficiency- Adaptability

Dependent Variables

- Futurity- Analysis- Proactive strategy

4 SummaryBusiness Strategy

Parameter PDM

INTORT

JOBSEC

OBJPA

STRHR

TECHHR

THRCAP

SHRCAP

Futurity High

Low -

Analysis High

Low -

Proactive High -

Low - SHRMPerformanc

e Effectivenes

s

Contingent

Job Security

on IT Corp

Performance

Effectiveness

Negative Correlation

• Universalistic • Contingency • Configurational

Configurationally

5 Recommendation

• The SHRM policies need to be

dynamic and contingent on business

strategy to attain maximum impact

on effectiveness and higher

competitiveness

• Need more research on broader

segment of industry