Strategic Human Resource Management and Organizational Performance in Singapore

Abstract

Many academics and practitioners have noted the emergence of a new generation of workers characterized by decreased company loyalty and increased expectations on various aspects of work life. At the same time, increasing emphasis on knowledge-based competition has accelerated the importance of human capital and hence the strategic role of the human resource management (HRM) function in any organization. This article includes a study of 191 Singapore firms. The study found a positive relationship between various aspects of a company’s strategic HRM policies/practices and its HR performance. However, the relationship seems weaker when it comes to a firm’s financial outcome. The study reveals that these two aspects of organizational performance may be affected by different HRM components. It also discusses how proper management of human capital can be a critical source of competitive advantage.