The Impact of Strategic Human Resources Management on the Performance of Firms in India

1. The Impact of trategic
uman esources
anagement on the
Performance of Firms
in India
Presented by Group 4
Aftina / 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

2. • 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

3. • 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

4. • 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

5. Business
Strategy
Parameter
PDM
INTORT
JOBSEC
OBJPA
STRHR
TECHHR
THRCAP
SHRCAP
Futurity High  
Low  -  
Analysis High    
Low  - 
Proactive High  - 
Low  - 
SHRM Performance
Effectiveness
Contingent
Job
Security on
IT Corp
Performance
Effectiveness
Negative Correlation
• Universalistic 
• Contingency 
• Configurational 
Configurationally

6. • 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