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Implication of Strategic Human Resources Management on Organizational

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Chapter 14:
Implication of Strategic Human Resources 302
Management on Organizational Performance
- Samuel Ayodele Majakodunmi and Oseremen
Felix Irene
Journal of Humanities, Management and Social Sciences (MTU-JHUMASS)
CHAPTER 14
Implication of Strategic Human Resources Management
on Organizational Performance
Samuel Ayodele Majekodunmi

and
Oseremen Felix Irene
Department of Business Administration
Mountain Top University
Prayer City
Ogun State, Nigeria
+2348026659958
ofirene@mtu.edu.ng
Abstract:
The research work is aimed at examining the 'Implication of
Strategic Human Resources Management on Organizational
performance' in selected companies across diff erent industries in
Lagos State. The goal of this study is to establish the relevance of
performance of organization to its stakeholders and how it can be
made possible through various strategies at the disposal of human
resources experts. The study adopts quantitative and qualitative
(mixed method) approach as its research design. Questionnaire was
used in the collection of data. The statistical tools used in analyzing
the data were simple percentage and correlation analysis. It is
revealed that there is significant relationship between strategic
human resources and organizational performance. Also, it is found
that, careful implementation of human resources strategies lead to
improved profitability, liquidity, activity, and leverage ratios
respectively. The recommendation to decision makers includes
ensuring conducive environment and diligence in implementation of
strategies, giving room for flexibility and subordinate participation.
Keywords: Implication, Strategic Human Resources,

Management, Organizational, Performance
302
Introduction
Meaningful organizational performance is the desire of
every stakeholder in an organization, be it employees,
management, shareholders, board members, suppliers, creditors,
distributors, government and general public (Pearce and
Robinson, 2009).An organization with outstanding performance
will be able to put smiles on the faces of all the stakeholders by
way of better incentives to employees, harmonious relationship
with the suppliers and distributors through prompt settlement of
legitimate claims, juicy returns (dividends and bonus shares) to
shareholders on their investment; motivating allowance to the
board members; salivating rewards to management, timely
settlement of creditors; regular and improved tax to government
and also meeting corporate social responsibilities to the general
public within the community the organization operates. These
cannot happen in a vacuum, it requires a robust human resources
management.
As a multidimensional concept, organizational
performance seeks to measure companies' success (de Brito& de
Oliveira, 2016).Organizational performance according to Jalagat,
(2016, p.30) measures firm's financial performance including
return on investment, return on assets, and stock values (Boxall
and Purcell, 2000; Delery and Shaw, 2001).Performance
measurement has been defined as the process of quantifying the
efficiency and eff ectiveness of action. Organization performance
can be measured through financial measure such as sales and
profitability, employee satisfaction and productivity and other
non financial measures such as market share, company image and
best quality product. However, Wang-Jang and Tung (2005)
suggest that performance is better measured with financial
consideration like sales and performance. He identified activities
required to measure performance as consisting of three inter-
related elements:
 Individual measures that quantify the efficiency
and eff ectiveness of activities.
303
 A set of measures that combine to assess the

performance of an organization as a whole.
 A supporting infrastructure that enables data to be
acquired, collated, sorted, analysed, interpreted and
disseminated.
The scope of performance measurement includes

strategy development and the taking of action (Wood and
Wall, 2002). Given the often quoted adage that what gets
measured gets done, implicit in the growing literature on
performance measurement is that performance measurement
includes development of strategies or objectives, and the taking
of actions to improve performance, based on the insight
provided by performance measures. The available metrics by
which organizational performance can be determined are: sales
analysis, marker share analysis, marketing expense-to-sales
analysis and financial analysis.
Many companies keep on changing Managing
Directors and dissolving Board of Directors, but they keep on
getting it wrong, because their problem which bothers on
strategy is left unaddressed. Several business strategies have
failed.We strongly opine that, the only imposition that helps an
organization into enviable performance is located in SHRM.
It is against this backdrop that this paper aims at
exploring SHRM as alternative approach to addressing the
specific problem of this study, which is poor organizational
performance. Therefore the objective of this study is to
investigate the impact of strategic human resources management
(SHRM)on organizational performance and growth.
Strategic human resources management (SHRM)

Empirical literatures report varieties of factors aff ecting
the relationship between HRM and firm performance (Irwin,
Hoff man & Geiger, 1998).The concept of HRM has been defined
by Noe et al (2006) as referring to all organizational policies,
304
practices and systems that exist to influence employees'

behavior, attitude and job performance. Its main activities
include attracting, retaining and maintaining organizational
workforce through rewarding, training, developing and
safeguarding. Human resources management (HRM) practices
comprise of many activities through which organizations create
human capital that meets conditions leading to meaningful
organizational performance (Wright and McMahan, 1992)
that is obtainable at business arena. We are in the business age
where sustainable competitive advantage is the prime pursuit
of competitors in order to win the battles against the posing
equals. Hence, resources, capabilities and competencies in
possession of an organization are to be harnessed toward
enviable performance of an organization. HRM systems that
successfully develop and engage employees to participate in
company's activities are likely to enhance the value and
rareness of company's human assets (Arthur, 1994).
Strategic human resources management

Strategic human resources management (SHRM)
emphasizes the need for plans and strategies to be formulated
within the context of overall organizational strategies and
objectives, and be responsive to the changing nature of the
organization's external environment. Although scholars are yet to
reach consensus on how best to define SHRM, there is,
nevertheless, broad agreement that it involves designing and
implementing a set of internally consistent policies and practices
that ensure a firm's human capital contributes to the achievement
of its business objectives. However, Wright and McMahan
(1992,p.298) define strategic human resources as the pattern of
planned human resources deployment and activities intended to
enable an organization to achieve its goals. During the past
decades, compensation systems in particular have been studied as
a way to deploy HRM systems strategically. The strategic role of
an organization's HRM system has become the focus of
305
empirical investigation. The seven practices that are consistently

considered in Strategic Human Resources Practices are:
  Internal career opportunity
 Formal training systems
 Appraisal measures
 Profit sharing
 Employment security
 Voice mechanisms and
 Job definition
The overall themes of SHRM arethe integrationofall
human resources management (HRM) functions, adherence to
broad organizational goals and explorative interaction with the
external environment. Human resources strategies are difficult to
imitate (Barney, 1991; Collis and Montgomery, 1995).SHRM
and organization performance is a research topic that cannot be
over-emphasized in a hurry.The greatest value HRM can add to
an organization through its role as a strategic partner that helps
organization develop its strategy, is by participating in strategic
planning process. Strategic HRM is valued by eff ective business
and line managers and they recognized the important roles of
HRM(Boudreau and Ramstad, 2007).
What makes the diff erence between an organization that
is performing enviably well and the one performing regrettably
poor within same industry is the ability of one, through strategic
human resources management (SHRM) to create a formidable
working team and individuals with competency that is valuable,
rare, not easily imitable and non-substitutable. The business
organic functions are better as functional departments of an
organization by looking up to HRM for fortification by way of
being equipped with dependable and result oriented staff . So, if
HRM being looked up to by these respective functional
departments (marketing, finance, production/operation, research
and development, computer/information) failed in its
responsibilities to strategically fortify these departments toward
the attainment of the set goals and objectives of the organization,
306
then such organization heads toward doom of non-

performance. Headquarters of organizations need to boost
performance through returns from the subsidiary. The strategic
approaches that may be employed are: exportive, adaptive and
integrative approaches (Taylor, Beechle& Napier, 1996). The
Taylor's work was .fondly referred to as taxonomy of diff erent
MNC approaches to strategic International Human Resources
Management (SIHRM). The various types of SIHRM
approaches are:
> Exportive Approach to SIHRM: This refers to the
replication of MNC parent company's HRM policies
and procedures oversee.
> Adaptive approach to SIHRM: This refers to situation
where flexibility, initiative and diff erentiation with the
utilization of duplication of eff orts.
> Integrative approach to SIHRM: The practice here is
that, whatever approach that works best is taken and
implemented, regardless of where they originate. Its
disadvantage is that such practices may not work in all
contexts.
Key issues in SHRM

There are five key aspects that any strategic Human Resource
Management model should have, these are:
 External Environment: It is the element that provides
opportunities and that determine limits to SHRM
 which must operate in an organization.
 Internal Environment: It is the organizational context
that includes structure and culture which organization
 operates in.
 Business Strategy: It is the general strategic purpose of
the organization which have influence on SHRM and
 which is influenced by SHRM.
 Strategic Human Resource Management: It includes both
HR strategies and the respective implementations.
307
The strategic aspect of HRM consists of four

elements. These are planning, personnel policy
philosophy, integration of SHRM practices, and
perceiving people in the organization as strategic
source to gaining competitive advantage.
 Results: This is the knowledge about the outcome of
SHRM practices.
Human resources management

Studies on SHRM emphasize the role of human
resources practices in achieving organizational objectives
(Ferguson & Reio JR., 2010; Oliveira & Oliveira, 2011).
Scholars in the field of human resources management concern
themselves with how HR can lead to improved organizational
performance (DelbridgeandKeenoy,2010). Earlier researches
in human resources(HR) proposed a direct link between HR
practices and organizational performance (Owor, 2016).Also,
recent studies suggest a relationship most likely mediated by
attitudinal and behavioral variables at the individual level–
employee engagement, task performance, and organizational
citizenship behaviours.
Human resources personnel and managerial competencies

The outcomes of past research works affirm two requisite
competencies for HR personnel, these are:
• Human resource professional skill and competency
• Business-related skill and competency
While the HR professional skill and competency is seen
from the perspective of record keeping and auditing. The
business-related skill and competency is purely strategic and
dynamic, it is highly responsive to the environment internal and
external to an organization i.e. team skills, consultation skills and
understanding of business (Noe, Hollenbeck, Gerhart & Wright,
1997)
.
308
HR managerial competencies can:

· Enhance the status of HR department.
· Act as important influence on the level of integration
between HR management and organization strategy.
Taylor et al. (1996) buttressed HRM competence both
tangible (HR planning systems, training programmes, selection
tests) and intangible resources (e.g. shared mindset, ability to
attract qualified employees, managerial experience). Another
source of competitive advantage is the firm's administrative
heritage (Bartlett and Ghoshal, 1989) and the ability to transfer
centralized policies. Making sure that members of the HRM
personnel have the appropriate human capital or competencies
had been suggested as one way to increase the likelihood of
eff ective implementation of HRM practices.
The future of HR professional will need four basic
competencies to become partners in the strategic management
process. These include:
(a) Business competence
(b) Professional and technical knowledge
(c) Integration competence and;
(d) Ability to manage change.
Line managers prefer high-quality technical HRM
activities. Technical HRM activities that have been
increasingly regulated through stakeholder expectations
include recruiting, selection, performance measurement;
training; and the administration of compensation and benefit
(Grant, 2008). Reflecting the high level of knowledge and
expertise associated with these activities are occupational
specializations for those who carry out these activities,
professional criteria for judging the eff ectiveness of those
activities, and professional certification programs for those
who carry them out.Strategic HRM activities are relatively
recent innovations, so stakeholders are not yet likely to hold
strong expectations or put pressure on organizations to adopt
such practices (Wright and McMaham, 1992).
309
Strategic approach in human resources management

Strategic approach in human resources management
aims to integrate strategic management of firm by making human
resources relevant in business strategy, and by integrating all
activities relating to human capital with all functions of the firm.
For this purpose, most important influence of HRM is to facilitate
strategy which is top management's job, by evaluating internal
and external factors which changes continuously (Pearce and
Robinson, 2009).Strategic human resources management is all
activities capable of influencing individual's and team's behaviour
in order to recognize and provide organization's needs (Wright
and McMahan, 1992,p.297-298).
Strategic planning and HR practices

Most recent HR practices – engagement - performance
studies situate their analyses within the framework of social
exchange theory (Owor, 2016). The role of motivation and
incentives cannot be overemphasized in the analysis. For
motivation and incentives to work, they must first be tied to a
goal. An organization must employ needs assessment and
human resources development strategies in pursuit of its vision
or mission. Needs assessment (of where an organization wants
to go) and human resources development (of those who are to
get it there) focus on the specific organization and individual
needs whose satisfaction will lead to enhanced productivity.
The vision and path for fulfilling it derived from strategic
planning is put into practical perspective through the use of
macro-tools such as Total Quality Management (at the group
level) and management by objectives (at the individual-level).
Strategic planning involves rational analysis. It takes
"what is" and develops ideas of "what should be?" along with
plans for "how to get there?" Strategic planning provides the
"road map" for fulfilling the future.
The foremost advantage derivable from strategic
planning is that it helps improve organizational performance.
310
Considering the fact that strategic planning focuses on the

future what should be? It therefore, serves as a"guiding star"
by which to steer the organization's development. Hence,
individual and team eff ort can be profitably devoted to
efficient accomplishment of the organizational goals and
objectives.
Strategic planning also helps in facilitating objective-
based performance appraisal systems. It enhances accountability
for results. The strategic planning process itself can serve as a
team-building exercise. Finally, the process is transformative,
considering it from systematic point of view (Keen, 1994).
Broad categories of ratios

Ratios can be grouped into the following:
 Profitability ratios
 Gross Profit and Net Margin
 Return on Assets Managed (ROAM)
 Return on Capital Employed (ROCE)
 Return on Equity (ROE)
Gross profit and Net Profit Margin:

The Gross profit margin is the ratio of gross profit to
sales and the net profit margin is the ratio of net profit to sales.
 Return on Assets Managed (ROAM)
Profit is sometimes seen as a function of the size of the total
assets placed at the disposal of management for operating the
business.
 Return On Capital Employed (ROCE)
Capital employed is defined as all the long-term funds
invested in the business. This is made up of equity (Share
capital, reserves, and profit, preference shares and debentures).
The profit in this case should be net profit before interest and
taxes (Pearce and Robinson, 2009).
 Return On Equity (ROE)
The equity funds in a business consist of share capital plus all
retained surplus. It represents the book value of the total
311
investment by the owner's class.

Liquidity rations
The components of liquidity ratios are:
 Current Ratio
 Quick Assets Ratio (Acid Test)
 Current Ratio
Currentratio is the ratio of current assets to current liabilities.
It assesses the extent of cover of the total liquid and near-
liquid assets over all short-term liabilities. This ratio is a
measure of the liquidity or solvency of the firm.
 Quick Asset (or Acid Test) Ratio
Quick asset (or acid test) ratio is the ratio of current assets less
inventories. A health firm is expected to maintain a quick
assets ratio of not less than 1:1.
Statement of the problem

Organizations in many countries, especially in Nigeria are
being faced with dynamic and continuously changing
environment. The Nigerian economy recently experienced shock
and went into recession with many losing their jobs in various
companies in the country. The tide of economic down turnshook
many MDs, CEOs, COOs; Presidents of corporations and Board
members. One becomes more worried because the uncelebrated
performances spread across all the facet of industries i.e. b a n k i
ng,insurance,manufacturing,conglomerate
, confectionaries, construction, automobile e.tc with all these;
anybody who wants to be sincere to him or herself will admit that
there are problems.
The genuine concern for bread winners losing jobs daily,
the investors losing their worth, creditors being made to commit
suicide, the debtors living under constellation, CEOs and Board
members losing credibility, dignity and rewards; dearth of
dividends to general public as relating to life betterments projects
that would have been accruable from CSR from organizations,
uncertain and irregular payment of taxes that would have made
312
nation buoyant to provide social amenities for the masses.

Hence, as long as the organizations failed to perform industries
are in danger and if industries failed to perform the economy is
in trouble, then both the working class and the dependants will
die of hunger and starvation. Despite the myriad of functional
business units and corporate strategies in the organizations, we
read about woeful performances of these organizations on
pages of Newspapers. The observers of events in industries
could not help exclaiming!
The strategists' weapons of wars such as generic
strategies (low cost, diff erentiation and focus); segmentation;
competitor analysis, life cycle concept; strategic alliance; joint
venture; innovation; integration (vertical and horizontal);
SWOT analysis; portfolio analysis; turnaround strategy; and
diversification strategies have not helped matters, hence the
turn of attention to SHRM.
The objectives of the study

The overall objective of this study is to investigate the
implication of strategic human resources management on
organization performance
The specific objectives of the study are to investigate the:
1. To investigate the possibilities that HRM strategic use
of performance-based compensation will be
instrumental to organization's performance
2. To ascertain the likelihood that an organization will
perform well through strategic HRM function of
broadly-defined job
3. To examine the extent to which an organization will be
successful in business owing to strategic
implementation of internal career-ladder
4. To investigate if result-oriented performance appraisal
as a strategic HRM function can lead to remarkable
organizational performance
5. To investigate how integration of SHRM into business
313
strategy will lead to fascinating performance of

organisation
6. To examine the relationship between strategic human
resources management and organizations' performance.
Research Questions
I. What are the various strategic HRM functions being
implemented in organizations?
ii. What are the various performance measures to which
your organization is exposed?
iii. What are the possibilities that HRM strategic use of
performance-based compensation will be instrumental to
organization's performance?
jV Is it likely that an organization will perform well through
strategic HRM function of broadly-defined job?
v. Will an organization be successful in business owing to
strategic implementation of internal career ladder?
vi. Can result-oriented performance appraisal as a strategic
HRM function lead to remarkable organizational
performance?
Research Hypothesis
1. Ho: There is no significant relationship between Strategic
Administration of Internal Career-Ladder and
Organizational Performance.
Hi: There is a significant relationship between Strategic
Administration of Internal Career-Ladder and

Implementation of Result-Oriented Performance
Appraisal and Organizational Performance.
Hi: T h e r e i s a s i g n i fi c a n t r e l a t i o n s h i p b e t
w e e n Implementation of Result-Oriented
Performance and Organizational Performance.
314
3. Ho: There is no significant relationship between

Strategically Implemented Broadly-Defined Job and
Hi: There is a significant relationship between
Strategically Implemented Broadly-Defined Job and
Administration of Compensation and Organizational
Performance.
Performance.
Scope of the study

Any attempt to capture the entire function of HRM from
strategic perspective and the available performance measure will
amount to life time exercise. Hence, the study focuses on four
SHRM functions and four organizational performance measures.
The four SHRM functions within the scope are:
 Performance-based compensation function.
 Internal career ladder function
 Result – oriented performance appraisal function.
 Broadly-defined job function.
 The four accounting measures

within the scope are:
 Activity ratios
 Financial liquidity ratios
 Profitability ratio
 Financial leverage
Research Design
This study adopts a combination of quantitative and
qualitative design (mixed methods) approach. The study is
based on both a desktop review of literature and field study.
315
Data collection and analysis

The field study involved the collection of data from
respondents using questionnaires as instrument. Questionnaires
were administered to CEOs, HR Directors and HR managers in
selected organization across diff erent industries in Nigeria.At
least 93 respondents used the instrument to supply the relevant
primary data for the study. Secondary data for the study was
drawn through library research technique, online resources,
and other relevant literatures. The analysis of the data for the
study was carried out using SPSS package.
Results and discussion

The demographic variables used in this study are;
• Sex of the respondents.
• Age of the respondents.
• Marital status of the respondents.
• Qualification of the respondents.
Distribution of Sex of the Respondents

Sex Frequenc Percenta Valid Cumulative
percentage
Male 63 67.7 67.7 67.7
Female 30 32.3 32.3 100.0
Total 93 100.0 100.0 100.0
As shown in the table above, 63 is the number of male
respondents representing 67.7 percent, while 30 is the number
of female respondents representing 32.3 percent.
316
Distribution by Marital status
M a r i t a l Frequency Percentage
Status
Single 47 50.5 50.5 50.5
Female 46 49.5 49.5 100.0
Total 93 100.0 100.0 100.0
The table above shows 47 singles representing 50.5% of the
respondents and 46 married people representing 49.5%. The
percentage diff erence is marginal.
Distribution of Age of the Respondents
Age Valid
16-25yrs 30 32.3 32.3 32.3
26-35yrs 33 35.5 35.5 67.7
36-45yrs 26 28.0 28.0 95.7
4§-55yrs 4 4.3 4.3 100.0
Total 93 100.0 100.0 100.0
The above table reveals that greater percentage (32.3% +

35.5%) of those in strategic decision making position fall
below the age of forty years, while those in the other age range
constitute only32.3%.
317
Distribution of qualifications of respondents
From the above table, 48 respondents representing 51.6 %

were HND/B.Sc holders, 31 respondents representing 33.3%
were M.Sc/MBA holders while 14 respondents representing
14.1 percent were holders of other qualifications
Distribution of respondents by religion affiliation
Religion Frequency Percentage Valid Cumulative

percentage
Christian 83 89.2 89.2 89.2
Muslim 10 10.8 10.8 100.0
Total 93 1000.0 100.0 100.00 1
From the table above, 83 respondents representing 89.2 were
Christians while 10 respondents representing 10.8 percent were
Muslims, making up a total of 93 respondents.
318
Distribution by years of service
The table above reveals that 47 (50.5%) of the respondents

were serving between l~5years in the organization, 26 (28%)
were between 6- 10 years in service, 19 (20.4%) had put in ll-
15years in services while 1 (1.1%) had spent above 16years in
service. Looking at the breakdown, it is obvious that 78.5% of
the respondents had less than 11 years in service.
The independent variable in the study comprise of the following:

 Strategic Administration of Internal Career-Ladder.
 Strategic Approach to Job Definition (Broadly Defined-
Job)
 Strategic Compensation of Employees (Performance
Based Compensation).
 Strategic Implementation of Result - Oriented
Performance Appraisal and Organisational Performance
The dependent variables in this study are performance

indicators specifically those in focus are:
• Liquidity
• Profitability
• Leverage
319
Distribution of response that Good Liquidity Ratios are

made possible through Strategic Administration of Internal
Career-Ladder
Response Code Frequency Perce Valid Cumulative

ntage percentage percentage
Not so 1 7 7.5 7.5 7.5
Slightly so 2 13 14.0 14.0 21.5
To some extend 3 29 31.2 31.2 52.7
Very so much 4 44 47.3 47.3 100.0
Total 93 100.0 100.0 100.0
From the table above, it is clear that 7 (7.5%) of the respondents

came up that good liquidity ratios can be tied to strategic
administration of Internal career ladder, 13 (14%) responded that
strategic administration of Internal career –ladder will slightly
bring about good liquidity ratios, 29 (31.2%) responded that
strategic administration of internal career ladder will to some
extent bring about good liquidity ratios, while 44 (47.3%)
responded that strategic administration of internal career-ladder
will very much lead to good liquidity ratios. With responses to
codes 3 and 4, 73 (78.5%) of the respondent validated the claim.
Therefore, it can be reasonably established that good liquidity
ratios are facilitated through the instrumentation of strategic
administration of internal career-ladder.
320
Distribution of response that optimal individual and team

performances enhance profitability of the organization
Response Code Frequency Perc Valid
entage
Not so - 1 8 8.6 8.6 8.6
Slightly so 2 14 15.1 15.1 23.7
3 24 25.8 25.8 49.5
Very much so 4 47 50.5 50.5 100.0

Total 93 100.0 100.0 100.0

disapproved the claim that optimal individual and team
performances enhance profitability of their organizations, 14
(15.1%) claimed that profitability of their organization is
slightly enhanced by optimal individual and team
performances, 24 (25.8%) responded that to some extent, their
organizations' profitability receives enhancement through
optimal individual and team performances, while 47 (50.5%)
responded that profitability is very much enhanced by optimal
individual and team performances. Without mincing words, the
breakdown made it clear that the performances of individuals
and teams in an organization will invariably enhance the
profitability of the organization, and any organization that
makes profits progressively will be judged as performing well.
321
Distribution of Response that Employees Measure up to

Expectations When Sufficiently Compensated
Response Code Frequ Percen Valid Cumulative

ency tage percentage percentage
Not so 1 6 6.5 6.5 6.5
Slightly so 2 7 7.5 7.5 14.0
To some 3 26 28.0 28.0 41.9

extend
Very so 4 54 58.1 58.1 100.0

much
Total 93 100.0 100.0 100.0

disfavoured the claim that employees measure up to expectations
when sufficiently compensated, 7 (7.5%) slightly favoured the
claim, 26 (28%) favoured the claim to some extent, while 54
(58.1%) favoured the claim very much. From the break down, it
is evident that when sufficiently compensated, employees would
measure up to expectations of the organization.
322
Distribution of Response that result-oriented performance

appraisal enhances profitability ratios
The above table reveals that 9 (9.7%) of the respondents

disfavoured the affirmation that result-oriented performance
appraisal enhances profitability ratios, 13 (14%) favoured the
affirmation slightly, 21 (22.6%) favoured it to some extent,
while 50 (53.8%) very much favoured the affirmation. Only 9
(9.7%) of the respondent disfavoured the claim, the remaining
84 (92.3%) favoured the claim in various degrees. Hence, it is
affirmative that result-oriented performance appraisal enhances
profitability ratios.
323
Distribution of response that profitability ratios are used to

determine Organizational Performance
Response Code Frequ Perce Valid Cumulative

ency ntage perce percentage
ntage
Not so 1 13 14.0 14.0 14.0
Slightly 2 1 1.1 1.1 15.1

so
To some 3 15 16.1 16.1 31.2

extend
Very so 4 64 68.8 68.8 100.0

much
Total 93 1 0 0 . 100.0 100.0

0
Table 4.0.37 shows that 13 (14%) of the respondents

disfavoured the claim that profitability ratios are used to
determine the organizational performance, 1 (1.1%) slightly
favoured the claim, 15 (16.1%) favoured the claim to some
extent, while 64 (68.8%) very much favoured the claim. It can
be deduced from the analyses that profitability ratios are being
to determine organization performance. Those in disfavour are
insignificant ratio. There may be need to re-orientate
management staff of those organizations.
324
Distribution of response that indicators of organizational

performance include leverage ratios
Response Code Frequ Perc Valid Cumulative
ency enta perce percentage
ge ntage
Not so 1 4 4.3 4.3 4.3
Slightly so 2 12 12.9 12.9 17.2
To some 3 33 35.5 35.5 52.7

extend
Very so much 4 44 47.3 47.3 100.0
Total 93 100. 100.0 100.0

0

disfavoured the claim that indicators of organizational
performance include leverage ratios, 12 (12.9%) slightly
favoured the claim, 33 (35.5%) favoured the claim to certain
degree, while 44 (47.3%) favoured the claim completely. It is
therefore made clear that, leverage ratios are among indicators
on organizational performance, given 77(82.8%) of the
respondents' who concurred. Those in disfavour should be re-
oriented on indicators of organizational performance.
325
HYPOTHESIS TESTING
Hypothesis I
Ho: There is no significant relationship between Strategic
Administration of Internal Career-Ladder and Organizational
Performance.
Hi: There is a significant relationship, between Strategic
Administration of Internal Career-Ladder and Organizational
Performance.
Correlation between Strategic Administration of Internal
Career-Ladder and Organizational Performance.
Sig P < 0.05
The, mean sum of Strategic Administration of Internal Career-

Ladder (15.44) is less than that of Organizational Performance
(66.04). However, the correlation of 0.28 shows that Strategic
Administration of Internal .Career-Ladder contributed about
28% to Organizational Performance, significant at 95%
confidence internal. Therefore, Strategic Administration of
326
Internal Career-Ladder has significant impact on

Organizational Performance. Hence, the alternative hypothesis
(Hi) becomes valid.
Hypothesis II
Correlation between Strategic Implementation of

Result Oriented Performance Appraisal and
Sig P < 0.05

The mean sum of Strategic Implementation of Result-Oriented
Performance Appraisal (16.40) is not up to that of Organizational
Performance (66.04). However, the correlation of 56% shows that
Strategic Implementation of Result-Oriented Performance
Appraisal immensely facilitated Organizational Performance, thus
significant at 95% confidence interval, which means, Strategic
Implementation of Result-Oriented Performance Appraisal
significantly boost Organizational Performance. Hence, the
alternative hypothesis (Hi) is accepted as stated.
327
Hypothesis III
Instrumentation of Broadly-Defined Job and
Hi: There is a significant relationship between Strategic I n s t r
u m e n t a t i o n o f B r o a d l y - D e fi n e d J o b a n d
Correlation between Broadly-Defined Job
and Organizational Performance
Variable Mean N Std. Dev. R Sgp Comment
Broadly- 16.31 93 3.01 0.57 Significant
Defined Job 0.00
Organizational 66.04 93 11.02
performance
Sig P < 0.05
The sum mean of Strategic use of Broadly-Defined Job (16.31)

is less than that of Organizational Performance (66.04). With
the correlation of 57%, it is evident that Broadly-Defined Job
made relevant impact on Organizational Performance
considering 95% confidence interval. The staled alternative
hypothesis should be accepted.
328
Hypothesis IV
Hi: There is no significant relationship between Strategic
Performance.
Ho: There is a significant relationship between Strategic
Performance.
Correlation between Strategic Administration of
Compensation and Organizational Performance.
VARIABLES Mean N Stddev R SSP
Strategic 5.80 93 3.23

compensation
Organisational 66.04 93 11.02 0.71 0.00

performance
Sig P < 0.05
The hypothesis formulated for this study was tested using
statistical tool. The test was be carried out at 5% (0.05) level
of significance. Meaning that we were 95% (0.95) sure of
choosing the correct alternative hypothesis. From the test
table above, the sum total of Strategic Compensation (15.80)
is less than sum total of Organizational Performance given as
(66.04). The correlation of 71% established the evidence that
Strategic Compensation contributed immensely to the optimal
performance of the organizations investigated. Therefore, the
alternative hypothesis (Hi) is hereby validated as stated.
Limitation of the study

In carrying out this research, challenges were posed by:
Time constraints,
Financial constraints
329
Difficult in penetrating organizations

A few copies of questionnaire were not returned.
Recommendation
The study recommends the following:
Firstly, decision makers should as much as possible ensure
conducive working environment which is the internal
environment of the organization. An unconducive environment
can frustrate strategy implementation.
Secondly, the decision makers should study the external
environment of their organization to be sure that the environment
can service them with the appropriate workforce. For instance, if
there is scarcity of labour in the environment either due to brain
drain on the ground of search for greener pasture or visa lottering,
the organization must strategize accordingly so as to be able to
retain sizeable productive workforces.
Thirdly, it is not just enough to have strategies in place, but to
get them implemented as appropriately and timely as possible.
Decision makers should make sure that strategies do not get
obsolete before implementation. Also improvement must be
made on the strategies periodically.
Fourthly, the bottom-top approach strategy should be
employed, that is, the subordinates from the lowest level
should be allowed to fashion out how best to achieve desired
charges aimed at attaining organizational objectives. In other
words, subordinates should be given sense of belonging so that
when it comes to implementation, they will find themselves
gladly implementing what was co-determined by them.
Lastly, the decision makers should as much as possible

minimize expenses at every stage of strategy i.e. strategy-
formulation, implementation, evaluation and control of
strategy, hence the objective might be frustrated.
330
Conclusion
This study reveals that strategic human resources management
often has positive impact on organizational performance and
growth. It could also be seen from the study that a steady and
productive workforce is required to promote profitability,
liquidity and activity ratios in organizations. Hence, decision-
makers in organization, should ensure a conducive working
environment for workforce in organization, and also provide
training and re-training support to build workforce capacity.
Conducive environment is also required for strategy
implementation. There is the need for organizations to
strategize accordingly with a view to retaining productive
workforce in the organization
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Implication of Strategic Human Resources Management on Organizational

Article · July 2022

Majekodunmi Samuel Oseremen Irene

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Samuel Ayodele Majekodunmi

Keywords: Implication, Strategic Human Resources,

 A set of measures that combine to assess the

The scope of performance measurement includes

Strategic human resources management (SHRM)

practices and systems that exist to influence employees'

Strategic human resources management

empirical investigation. The seven practices that are consistently

then such organization heads toward doom of non-

Key issues in SHRM

The strategic aspect of HRM consists of four

Human resources management

Human resources personnel and managerial competencies

HR managerial competencies can:

Strategic approach in human resources management

Strategic planning and HR practices

Considering the fact that strategic planning focuses on the

Broad categories of ratios

Gross profit and Net Profit Margin:

investment by the owner's class.

Statement of the problem

nation buoyant to provide social amenities for the masses.

The objectives of the study

strategy will lead to fascinating performance of

2. Ho: There is no significant relationship between Strategic

3. Ho: There is no significant relationship between

Scope of the study

 The four accounting measures

Data collection and analysis

Results and discussion

Distribution of Sex of the Respondents

Distribution by Marital status

Distribution of Age of the Respondents

The above table reveals that greater percentage (32.3% +

Distribution of qualifications of respondents

From the above table, 48 respondents representing 51.6 %

Distribution of respondents by religion aﬃliation

Religion Frequency Percentage Valid Cumulative

Distribution by years of service

The table above reveals that 47 (50.5%) of the respondents

The independent variable in the study comprise of the following:

The dependent variables in this study are performance

Distribution of response that Good Liquidity Ratios are

Response Code Frequency Perce Valid Cumulative

Not so 1 7 7.5 7.5 7.5

Slightly so 2 13 14.0 14.0 21.5

To some extend 3 29 31.2 31.2 52.7

Very so much 4 44 47.3 47.3 100.0

Total 93 100.0 100.0 100.0

From the table above, it is clear that 7 (7.5%) of the respondents

Distribution of response that optimal individual and team

Very much so 4 47 50.5 50.5 100.0

The table above reveals that 8 (8.6%) of the respondents

Distribution of Response that Employees Measure up to

Response Code Frequ Percen Valid Cumulative

Not so 1 6 6.5 6.5 6.5