Strategic Human Resource Management:A Three-Stage Process Model and Its Influencing Factors

Strategic Human Resource Management (SHRM) has captured considerable attention in research and the practitioner world. Research in SHRM has primarily focussed on the link between Human Resource Management (HRM) systems and organizational performance. The development of theoretical perspectives and proper frameworks for the mediating processes linking HRM systems and organizational performance have not got adequate attention in this literature. In this paper, a three-stage model for the process of SHRM is developed. The three stages are: (1) The formulation of business and Human Resource (HR) strategy through one/two-way vertical fit; (2) The implementation of HRM systems and employee-related interventions; and (3) The evaluation/review of HRM systems for increased efficiency and best vertical and horizontal fit. The interlinkages in this dynamic model have been explored, and the organizational factors that have an enabling/deterring influence on the success of each of these three stages have been looked at. Enablers/deterrents for the three stages have been classified into structural, cultural, individual, and contextual factors for the first stage; structural, cultural, operational, and environmental factors for the second stage; and structural, operational, and behavioral factors for the third stage. The key players for each stage have been identified and the role of HR department in each of the three stages has been looked into. Research has shown that horizontal and vertical fit of HR practices can have an influence on the organizational performance and this paper provides a model of enactment of SHRM, and a practical approach to evaluating SHRM process in an organization.