Impact of Strategic Human Resource Management on the Performance of Firms: a study of Service Sector Firms in India

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This study investigates the impact of Strategic Human Resource Management on the performance of firms in service sector in India. The study has been conducted in three segments of service sector viz. Transport, Finance and IT enabled Services of both Public as well as Private sector. Data from 25 firms in three industries were obtained through 2 sets of questionnaires. Set-I had measures of Business Environment, Business Strategy, Organizational Structure and Preparedness to Change (N=98). Set-II had measures of Strategic Human Resource Management, Organizational Culture and Effectiveness (N=750). Responses were analyzed using ANOVA, Correlation and Multiple Regressions. Study tested three emerging approaches viz. Universalistic, Contingency and Configurational of Strategic Human Resource Management in Indian context. Results supported Contingency and Configurational approaches, while it did not substantiate Universalistic approach. Study adds to the growing empirical evidence in this field. At methodological level study contributes in designing a 10 item instrument for ‘Preparedness to Change’. The study also finds various practical and industry implications, which may be of value to HR managers and firms in India while designing Strategic HRM for the firms to enhance their competitiveness.
Supervisor: Nachiketa Tripathy