Effect of Strategic Human Resource Management Practices on the Performance of Bidco Africa Limited

Abstract

The purpose of the study was to assess the effect of strategic human resource management on performance of BIDCO Africa Limited. To achieve this objective, data was collected using questionnaires to test the effect of strategic human resource management practices on organizational performance. The data collected was sorted and cleaned for analysis and presentation. Preliminary tests included understanding the demographic nature of the interviewees followed by descriptive statistics. In the study, the independent variable was strategic human resource management practices while the dependent variable was organizational performance. The analysis of strategic human resource management practices showed that training is to a large extent a strategic human resource management practice in the organization, including recruitment, performance management and compensation. The study found that there is significant and positive relationship between training, recruitment, performance management and compensation with organizational performance. The findings also show that a significant proportion of the variation in organizational performance is as a result of training, recruitment, performance management and compensation. The findings of the study are also supported by theories and work of other researchers as discussed in the literature review, all of which show the importance of strategic human resource practices in organizational performance. Thus, strategic human resource management practices significantly affect organizational performance, and that if managers use best human resource management practices, which include training, recruitment, performance management and compensation, there is increased likelihood of improved organizational performance. This study has implications to managerial practice; first of all, the study established that strategic human resource management practices have a significantly high and positive impact on all predictors of organizational performance. This implies that managers need to consider strategic human resource management practices, especially training, recruitment, performance management and compensation as critical elements in organizational performance. Previous studies have also showed that strategic human resource management practices have a strong relationship with organizational performance and this emphasizes that strategic managerial decisions need to attach greater weight on the key elements of strategic human resource practices, which include training, recruitment, performance management and compensation. There is also, as a result of the study, opportunity for managers to develop effective policies in respect of training, recruitment, performance management and compensation in a way that support organizational performance and competitivene