See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/311425228

LINKING EMPLOYEE PERFORMANCE TO STRATEGIC HUMAN RESOURCE

MANAGEMENT

Conference Paper · October 2016

CITATION READS

1 4,051

2 authors:

Gabriela Rusu Silvia Avasilcai

Gheorghe Asachi Technical University of Iasi Gheorghe Asachi Technical University of Iasi
20 PUBLICATIONS   144 CITATIONS    142 PUBLICATIONS   700 CITATIONS   

SEE PROFILE SEE PROFILE

Some of the authors of this publication are also working on these related projects:

E-PICUS View project

CRE@TIVE.BIZ View project

All content following this page was uploaded by Gabriela Rusu on 05 December 2016.

The user has requested enhancement of the downloaded file.

 16th Romanian Textiles and Leather Conference – CORTEP 2016
Iasi, 27-29 October 2016

LINKING EMPLOYEE PERFORMANCE TO STRATEGIC HUMAN

RESOURCE MANAGEMENT

Gabriela RUSU1, Silvia AVASILCAI1

1
“Gheorghe Asachi” Technical University of Iasi, Department of Engineering and Management, 29 D.
Mangeron Bd.,700050 Iasi, Romania

Abstract: The current article discusses the role of strategic partner of human resource in organizations
related to the accomplishment of company’s strategy and enhancement of overall organizational
performance. The literature emphasizes human resource strategies, practices and policies which represent
fundamental issues of strategic human resource management, encompassing the human resource system.
The current paper highlights the importance of the strategic role of human resource in organizations, relating
the strategic human resource management field to the employee performance management. The results of
the scientific paper show the impact of employee performance management and appraisal, as activities
related to the strategic human resource management, on increasing employee performance, organizational
performance and financial performance in organizations.

Keywords: Employee performance, strategic human resource management, strategic partner, employee
performance appraisal.

INTRODUCTION

Human resource management in organizations includes activities such as directing and managing individuals
and has a double role: motivating people to work and develop, the second role referring to the organization
and the accomplishment of the organizational objectives, including value creation and obtaining a
sustainable advantage in relation to other organizations [1].
Thus, human resource management represent a fundamental activity in each organisation, having as main
actors, the employees, and being defined as “the management of work and people towards desired ends”
[2]. Another definition of human resource management emphasizes that this field “deals with the design of
formal systems in an organization to ensure the effective and efficient use of human talent to accomplish
organizational goals” [3].
An effective management of human resource represents a competitive advantage for companies by valuing
the human resource and human capital and by motivating employees to obtain high work performance, in the
framework of a high performance work system.
Accordingly, the importance of human resources in organizations is highlighted in the literature and
mentioned as “among an organization’s most valuable assets” [4]. Human resources are the most valuable
resources of the company, representing the human capital, which “means the organization’s employees,
described in terms of their training, experience, judgment, intelligence, relationships, and insight – the
employee characteristics that can add economic value to the organization”[5]. In such a context, the
company may gain a competitive advantage on other competitors, by valuing the human capital, by creating
the organizational framework for enhancing the motivation and individual performance, and the premises to a
high organizational performance.

ANALYSIS

The framework of this scientific paper is based on a set of research papers in the field of human resource
management, strategic human resource management and employee performance management. The
research discusses the relationship between these research fields, emphasizing the employee performance
management research placed in the context of strategic human research management. Accordingly, the
paper highlights author's contributions to creating a framework of analysis of the strategic role of human
resources, with emphasis on key aspects regarding the impact of strategic human resource management in
organizations. Moreover, the analysis of the literature highlighted the current research in employee
performance management, in the large context of strategic human resource management. In conclusion, the
 16th Romanian Textiles and Leather Conference – CORTEP 2016
Iasi, 27-29 October 2016

paper emphasizes the strategic role of human resources in organizations, linking the strategic human
resource management to employee performance management field.

Key aspects regarding the impact of strategic human resource management: the role of human
resource as a strategic partner in organizations

Human resources in organizations play a strategic role and this view conducted to a new research field in the
literature, known as strategic human resource management, a field that lies at crossroads between strategic
management and human resource management [6]. Thus, the strategic human resource management was
defined in the literature as “an approach to managing people that deals with how the organization’s goals will
be achieved through its human resources by means of integrated HR strategies, policies and practices” [7]. It
may be observed the fundamental role of the human resources in organizations as a competitive advantage
in relation with other companies. Also, it should be outlined the value of the human capital, as the employees
implement the company’s strategy to which are also aligned human resource plans and strategies [7].
The literature indicates a strong relationship between strategic human resource management and the
organizational performance, as a result of the high productivity, enhanced efficiency and increased
profitability [8].
Thus, within strategic human resource management framework, a similar importance to what performance
management is provided to a high performance work system [9]. Moreover, studies from this research field
emphasize a positive correlation between high performance work practices implemented within organizations
and the employee performance [10]. In such a context, employee performance management refers to “a
strategic and integrated approach to delivering sustained success to organizations that focuses on
performance improvement and employee development” [11].
Furthermore, a key aspect of the strategic human resource management is highlighted in recent studies
within the relationship between HR practices and policies and overall strategic organizational objectives and
the organizational environment [12]. In this context, HR performance management practices represent
fundamental issues of the strategic human resource management, as the HR managers and top managers
cooperate for establishing the company’s strategy, which provide the framework for the human resource
activities, as recruitment, selection, employee performance management, employee performance appraisal,
etc. [12].
Among these human resource activities aligned to company’s strategy, the performance management
policies outline an integrated approach of an organization regarding employee performance appraisal which
aims to ensure that employees focus on work efforts and contribute to organizational goals accomplishment
[13].
Consequently, we can conclude that within strategic human resource management, HR systems influence
the most important financial results which depend on the impact of the HR system on employees’
performance [13]. Thus, the role of an employee performance management system may be outlined, and
also the strategic role of a performance management system, supposed to link “the organization’s goals with
individual goals, thereby reinforcing behaviours consistent with the attainment of organizational goals” [14].
All in all, employee performance management represents a key process within strategic human resource
management on which companies should focus, considering human resource as a strategic partner who may
produce positive results for maintaining a competitive advantage in relation to other competitors.

Human resource system

The activity of human resource management could be integrated in a human resource management system
which includes: HR philosophies, encapsulating the values and principles adopted in managing people; HR
strategies, which highlights the overall direction in which HRM intends to go; HR policies, referring to
guidelines defining how values, principles and strategies should be implemented; HR processes, including
formal procedures and methods to put HR policies into practice; HR practices, comprising informal
approaches used in managing people; and HR programmes, which enable HR strategies, policies and
practices to be implemented according to a plan [15].
Thus, the literature emphasizes the strategic role of human resource and the contribution which employees
have on attaining the company’s strategy. The existence of a HR system represents the basic pillar of the
strategic role of human resource in organizations [16]. This systemic approach represents that any
component of the system and the connection between these components of the system contribute to
highlighting the inter-relations between system’s components [16] and the HR role of leverage to attaining
performance in organizations.
 16th Romanian Textiles and Leather Conference – CORTEP 2016
Iasi, 27-29 October 2016

RESULTS

The findings we highlighted in this current study, according to the literature we analysed, provide an
integrated framework linking employee performance to strategic human resource management field
research. Thus, the current paper brings into light the newest approaches in this field, outlining the strategic
role of human resource in organizations in attaining a high level of organizational performance.
Moreover, the literature highlights that HR practices enable employee performance enhancement and an
overall high level of organizational performance, by motivating employees [17]. Accordingly, the model
emphasizes a direct association between strategic human resource practices (e.g. recruitment, training and
development, performance appraisal, reward systems, etc.) and the organizational performance, mediated
by the influence on employees’ motivation [17].
Another study outlines the role of high performance work practices regarding the enhancement of employee
motivation and performance, which determine employees to contribute to increasing the overall
organizational performance [18]. Thus, the level of employee motivation represents a premise for anticipating
employee performance, and human resource management practices may influence the employee motivation
by encouraging them to work harder and to obtain high performance [19].
A study elaborated by Guest et al. (2000) highlights the link between human resource management through
human resource practices and the financial performance obtained, and also how human resource
management influence the organizational performance [15]. According to the figure below, human resource
management represents a strategic player, as the HR department is directly involved in providing the
strategic direction of the company by adding value to the business strategy and by human capital recruitment
and by organizational design and strategy development [20].

HR
effectiveness

Business
strategy

HR HR Quality of
practices outcomes goods and Financial
services performance
Employee:
competence
HR commitment Productivity
strategy flexibility

Figure 1: The model of relationship of human resource management and performance, according Guest et
al. (2000) [15]

Employee performance management: key activity related to strategic human resource management

Employee performance management and employee performance appraisal represent the most important
practices, with direct impact on increasing employee performance, organizational performance and financial
performance [1]. Employee performance management incorporates key aspects regarding company’s
strategy, human resources, company’s goals, management, which includes the employee performance
management process within strategic human resource management in organizations and considers human
resource a strategic partner contributing to attaining company’s strategic goals and to enhancing work
performance and overall company’s performance. Thus, employee performance management is placed in
the context of strategic human resource management and aligned to company’s strategy, to the strategic
objectives, organizational culture and other elements of the organizational context specific to each
organization.

CONCLUSIONS

Starting from the human resource management and strategic management, the study brought into light an
actual research field, strategic human resource management. The study emphasized the strategic role of
human resource in organizations, mentioning the most important components of the human resource system
which have a significant impact on increasing employee performance in organizations.
 16th Romanian Textiles and Leather Conference – CORTEP 2016
Iasi, 27-29 October 2016

ACKNOWLEDGMENT

This research was undertaken within the framework of the National Research Program PN II, financed by
MEN – UEFISCDI, project PN-II-PT-PCCA-2013-4-1811.

REFERENCES

[1] Hamid, J.: Strategic human resource management and performance: the universalistic approach - case of
Tunisia, Journal of Business Studies Quarterly, Vol. 5 (2013) No. 2, pp. 184-201.
[2] Boxall, P. et al: Human Resource Management: Scope, Analysis, and Significance, In The Oxford
Handbook of Human Resource Management, Oxford University Press, ISBN 978 0 19 928251 7, New York,
(2007), pp. 1-16.
[3] Mathis, R. L. & Jackson, J. H.: Human Resource Management (Eleventh Edition), SouthWestern, ISBN
978-0-324-28958-9, (2004)
[4] Boselie, P.: Human Resource Management and Performance: Adding Value through People, In Strategic
Human Resource Management: A Balanced Approach, Tata McGraw-Hill, ISBN 9781259002311, (2010), pp.
47-69.
[5] Noe, R. A. et al: Fundamentals of Human Resource Management (4th edition), McGraw Hill/Irwin, ISBN-
13: 978-0-07-353046-8, (2011)
[6] Allen, M. R. & Wright, P.: Strategic Management and HRM, In The Oxford Handbook of Human Resource
Management, Oxford University Press, ISBN 978 0 19 928251 7, New York, (2007), pp. 88-107.
[7] Armstrong, M.: Armstrong's Handbook of Strategic Human Resource Management (5th ed.), Kogan
Page, ISBN 978 0 7494 6394 6, London, (2011)
[8] Stavrou, E. T.; Brewster, C.: The configurational approach to linking strategic human resource
management bundles with business performance: myth or reality?, Management Revue, Vol. 16 (2005)
No.2, pp. 186-201
[9] Den Hartog, D. N. et al: HRM, communication, satisfaction, and perceived performance: a cross-level
test, Journal of Management, Vol. 36 (2013) No.6, pp. 1637-1665
[10] Harris, C. M.: Strategic Human Resource Management at the Crossroads: Relationships among Human
Resource Capital, Overlapping Tenure, Behaviors, and Performance, 2005, University of Texas, SUA
[11] Armstrong, M.: Armstrong's handbook of performance management. An evidence-based guide to
delivering high performance, Kogan Page, ISBN 978 0 7494 5392 3, London, (2009)
[12] Mitushi, J.: Organizational success through strategic human resource management, Journal of Social
Welfare and Management, Vol. 6 (2014) No. 1, pp.5-9
[13] Jiang, K. et al: Clarifying the construct of human resource systems: relating human resource
management to employee performance, Human Resource Management Review, Vol. 22 (2012), pp. 73-85
[14] Aguinis, H.: An expanded view of performance management, In Performance Management: Putting
Research into Action, John Wiley & Sons, ISBN 978-0-470-19232-0, San Francisco, (2009), pp. 1-43.
[15] Armstrong, M.: A Handbook of Human Resource Management Practice (10th ed.), Kogan Page, ISBN 0
7494 4631 5, London, (2006)
[16] Becker, Brian E. et al: The HR Scorecard. Linking People, Strategy, and Performance, Harvard
Business School Press, ISBN 978-1578511365, Cambridge, (2001)
[17] Akong' o Dimba, B.: Strategic human resource management practices: effect on performance, African
Journal of Economic and Management Studies, Vol. 1 (2010), pp. 128-137.
[18] Den Hartog, D.N. et al: HRM, communication, satisfaction, and perceived performance: a cross-level
test, Journal of Management, Vol. 39 (2013), pp. 1637-1665
[19] Huselid, M. A.: The impact of human resource management practices on turnover, productivity and
corporate financial performance, Academy of Management Journal, Vol. 38 (1995), pp. 635-872
[20] Lawler III, E. E. et al: Achieving strategic excellence. An assessment of human resource organizations,
Stanford University Press, ISBN 978-0804753319, Stanford, (2006)

Corresponding Author: Gabriela Rusu

Full address: Gheorghe Asachi” Technical University of Iasi, Department of Engineering and Management,
29 D. Mangeron Bd.,700050 Iasi, Romania
E-mail: gabrielarusu01@gmail.com

View publication stats