Impacts_Of_SHRM_and_Planning_on_UK_Technology_Industry

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1 Dissertation: Impact of Strategic Human Resource Management and Planning on Organizational Performance in the Technology Industry in the United Kingdom Student Name: Sadiya Sultana Student ID: 21062744 Module Name: Research methods and analytics for business practice Module Code: LD9718JLZ01 Instructor: Dielk Celik
2 Contents Contents ........................................................................................................................................... 2 CHAPTER 1: INTRODUCTION .................................................................................................... 4 1.1 Background and Definitions ......................................................................................................................... 4 1.2 Significance and Scope ................................................................................................................................. 6 1.3 Research Questions and Objectives .............................................................................................................. 8 1.3.1 Research Questions ........................................................................................................................... 8 1.3.2 Research Objectives .......................................................................................................................... 9 1.4 Thesis Overview ............................................................................................................................................ 9 1.4.1 Chapter 1: Introduction ..................................................................................................................... 9 1.4.2 Chapter 2: Literature Review ............................................................................................................ 9 1.4.3 Chapter 3: Research Methodology .................................................................................................. 10 1.4.4 Chapter 4: Research Findings ......................................................................................................... 10 1.4.5 Chapter 5: Discussion and Conclusions .......................................................................................... 10 CHAPTER 2: LITERATURE REVIEW ....................................................................................... 11 2.1 Theoretical Framework ............................................................................................................................... 11 2.1.1 Organization Learning Theory ........................................................................................................ 11 2.1.2 Resource Based View Theory ........................................................................................................... 12 2.2 The Concept of Strategic HRM and Planning ............................................................................................ 13 2.3 Importance of HRM and Planning in Enhancing Staffing Outcomes ........................................................ 15 2.4 HR As Agent of Competitive Advantage .................................................................................................... 16 2.5 The Strategic Role of Human Resource Management ................................................................................ 17 2.6 Challenges to Strategic Human Resource Management ............................................................................. 19 CHAPTER 3: METHODOLOGY ................................................................................................. 20 3.1 Research Design and Philosophy ................................................................................................................ 20 3.2 Selection of Research Methodology ........................................................................................................... 21 3.3 Data Collection Techniques and Procedures ............................................................................................... 21 3.4 Population and Sample ................................................................................................................................ 22 3.5 Questionnaire Design and Distribution ....................................................................................................... 22 3.5.1 Questionnaire Design ...................................................................................................................... 22 3.5.2 Questionnaire Distribution .............................................................................................................. 22 3.6 Data Processing and Analysis Methods ...................................................................................................... 25 3.7 Ethical Considerations ................................................................................................................................. 26 3.7.1 Informed Consent ............................................................................................................................ 26 3.7.2 Voluntary Participation ................................................................................................................... 26
3 3.7.3 Confidentiality ................................................................................................................................. 26 3.7.4 Privacy ............................................................................................................................................ 27 3.7.5 Anonymity ........................................................................................................................................ 27 3.8 Chapter Summary ........................................................................................................................................ 27 CHAPTER 4: RESEARCH FINDINGS ....................................................................................... 27 4.2 Limitations of the Study .............................................................................................................................. 35 4.3 Chapter Summary ........................................................................................................................................ 36 CHAPTER 5: DISCUSSIONS AND CONCLUSION .................................................................. 36 5.1 Discussions .................................................................................................................................................. 36 5.2 Conclusion ................................................................................................................................................... 38 5.2.1 Recommendations ............................................................................................................................ 40 REFERENCES .............................................................................................................................. 41
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4 CHAPTER 1: INTRODUCTION 1.1 Background and Definitions The economic landscape has undergone a notable transformation marked by the forces of globalization, intense rivalry in product markets, and the dynamic nature of customer demands. For companies to effectively compete in the corporate landscape, particularly in the realm of technology, it is imperative to strengthen organizational performance through the implementation of innovation, cost reduction strategies, and enhancements to product quality and overall productivity ( Arthur, 1994). The individuals comprising an organization, sometimes referred to as human resources, play a crucial role in improving organizational performance. As Bamey (1991) argue, the operational and functional aspects of a Human Resource (HR) department are determined by its planning approach. Nevertheless, the proficient administration and strategic allocation of human resources within the technology industry have demonstrably enhanced overall organizational performance. The individuals comprising an organization, sometimes referred to as human resources, are widely acknowledged as a critical asset for contemporary organizations. The significance of people and their management has increased due to the diminished influence of several other factors that were previously considered sources of competitive advantage. It is imperative to acknowledge the shift in the foundation of competitive advantage to cultivate a new perspective when addressing matters pertaining to Strategic Human Resource Management (SHRM) and planning ( Becker & Huselid, 1998). In contemporary business environments, conventional drivers of success, such as advancements in product and process technology, secured market positions, and economies of scale, continue to offer competitive advantages ( Becker & Huselid, 1998). However, it is increasingly becoming evident that SHRM and planning play a more critical role in organizational performance in the technology industry in the United Kingdom (U.K) and in ensuring long-term viability. Organizations in the technology industry in the U.K have exhibited a growing inclination towards enhancing the efficacy of their human resources (HR) departments, with the aim of achieving improved results and heightened productivity. This is achieved by empowering HR professionals to identify and implement comprehensive solutions that involve strategic planning,
5 design, implementation, and execution methods. According to Wong, Chan, and Tan (2014), the concept of Strategic Human Resource Management and planning is a contemporary shift in the field of human resource management, highlighting the significance of human resources in enhancing organizational performance in the technology industry. This approach clearly stresses the alignment of human resource strategies with the objective of attaining a competitive edge within the technology industry. SHRM plays a crucial role in organizational management due to the fundamental importance of human resources as the cornerstone of any company ( Wong, Chan & Tan, 2014). The workforce is the most valuable resource of any organization, and it is crucial to understand and implement strategic human resource initiatives to ensure that the company’s performance is maximized. The primary objective of SHRM and strategic planning is to optimize organizational performance by effectively managing human resources ( Delaney, Lewin & Ichniowski, 1989). Organizations operating within the technology industry in the United Kingdom are increasingly recognizing the significance of implementing efficient human resource policies and practices to boost organizational performance across several domains. Organizations in the technology industry have adopted Strategic Human Resource Management practices to augment their overall operational effectiveness ( Delaney & Huselid,1996). Consequently, the efficacy of human resource managers is on the rise across technology organizations, as there is a growing emphasis on granting individuals inside organizations greater autonomy and freedom to foster creativity and achieve their full potential. Hence, the primary purpose of human resource management and planning is to ensure alignment between the organization’s vision and objectives and the potential of its people resources. The underlying premise of Human Resource Management is that the individuals employed inside an organization are its most valuable assets, and that the overall effectiveness of the organization is heavily reliant on their contributions. To achieve a significant influence on organizational performance, it is important to establish and successfully implement a suitable array of human resource regulations and practices (Armstrong, 2008). According to Lawler and Mohrman (2003), HRM practices should be seamlessly integrated into the overall strategy of major organizations. Human resource management techniques encompass the comprehensive management of individuals within an organization, spanning from the initial recruitment process
6 to the eventual separation of employees from the organization (Armstrong, 2008). According to Ferris (1998), several HRM techniques can be identified, including strategic human resource management (SHRM), information management, organization growth, resource allocation, performance oversight, training and growth, incentive planning, and relations with workers. 1.2 Significance and Scope The management of individuals within an organization is gaining significance since alternative drivers of competitive advantage are diminishing in potency. Gary, Latham and Kenneth (1981) contend that while traditional factors like economies of scale, protected markets, and product and process technology continue to provide a competitive advantage, the significance of human resources within an organization has grown in importance for its long-term viability and effectiveness. The primary objective of this study is to investigate the impact of strategic human resource management and planning on organizational performance within the technology industry in the United Kingdom. The role of human resource management is ascending throughout the organizational hierarchy in alignment with the recognition of the criticality of human resources within the technology industry in the UK. The primary objective of human resource management is to facilitate the acquisition and retention of competent, dedicated, and highly motivated staff that is essential for the organization’s success (Armstrong, 2014). This entails undertaking measures to evaluate and fulfill the anticipated requirements of future individuals, as well as their contributions, potential, and employability through the provision of learning and ongoing development prospects. The process includes the execution of recruitment and selection protocols as well as the implementation of management development and training initiatives that are aligned with the industry requirements ( Gary, Latham & Kenneth,1981). Strategic human resource management is a recent development in the realm of human resource management. The Society for Human Resource Management is dedicated to examining the impact of human resource management systems on the overall performance of organizations, with a specific emphasis on the strategic alignment of human resources to achieve a competitive edge. Organizations in the tech industry are increasingly recognizing that the implementation of effective human resource policies and practices has the potential to enhance performance across
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7 various domains, including productivity, quality, and financial outcomes ( Dyer & Reeves, 1995). Human resources are widely acknowledged as a critical asset for contemporary organizations. The significance of individuals and their management has increased due to the diminished influence of several other factors that were previously considered crucial for achieving organizational success. Acknowledging the shift in the foundation of competitive advantage is crucial in adopting a new perspective when examining matters pertaining to strategic human resource management and planning. According to Ping, Leiya, and Jieqiong (2012), in contemporary business environments, conventional factors that have historically contributed to success, such as product and process technology, protected markets, and economies of scale, continue to offer competitive advantages in the technology sector in the UK. However, it is increasingly recognized that an organization’s human resources play a more critical role in ensuring its long-term viability (Armstrong, 2014). In alignment with the recognition of the criticality of human resources within an organization, the role of human resource management and planning is likewise ascending throughout the organizational hierarchy. The primary objective of human resource management and planning is to facilitate the acquisition and retention of proficient, dedicated, and highly motivated staff that is essential for the organization’s success. This entails undertaking measures to evaluate and fulfill the anticipated requirements of future individuals, as well as to improve and cultivate the innate abilities of individuals, their contributions, potential, and employability, through the provision of learning and ongoing developmental opportunities. The process includes the execution of recruitment and selection protocols, the implementation of management development initiatives, and the facilitation of training activities that are tailored to meet the specific requirements of the organization ( Hayton, 2003). According to Hayton (2003), strategic human resource management signifies a relatively recent paradigm shift within the domain of human resource management. The Society for Human Resource Management is primarily interested in examining the impact of human resource management systems on the overall performance of organizations, with a specific emphasis on the strategic alignment of human resources to achieve a competitive edge ( Huselid, 1995). Organizations are increasingly recognizing that the implementation of effective human resource policies and practices can potentially enhance performance across
8 various domains within the technology industry, including productivity, quality, and financial outcomes. Organizational performance and strategic human resource management are integral elements of corporate governance in the technology industry in the U.K. This article investigates the impacts of SHRM and planning on organizational performance in the technology industry, focusing on an inside perspective by conducting a comprehensive analysis and study within the United Kingdom. It demonstrates strategies for improving business performance and optimizing organization management. This work entails a thorough review and analysis of several theoretical studies, then the execution of empirical research that builds upon the theoretical foundations set by these studies. This study investigates the impact of strategic human resource management on organizational performance within a theoretical framework. The This study also investigates the interplay between company strategy, competitive advantage, and strategic human resource management. It also examines the current state of strategic human resource management (SHRM) and highlights its inherent limitations. The study investigates the impact of strategic human resource management on organizational performance through the utilization of Statistical Package for the Social Sciences (SPSS) tool during the empirical research phase. Additionally, this study aims to draw comparisons between technology companies and non-tech companies, with the objective of identifying distinctive characteristics exhibited by technology industry ( Huselid, 2009). This article presents a comprehensive examination of the relationship between strategic human resource management and company performance, supported by a collection of studies and data analysis. It provides valuable insights into the potential benefits of strategic human resource management and offers relevant methods and techniques for organizations to effectively implement this approach. Business enterprises, especially those heavily dependent on technology, ought to exert efforts to improve their operational efficiency through the adoption and continuous improvement of a strategic human resource management framework that is in line with their organizational goals and prevailing circumstances ( Brewster et al., 2000).
9 1.3 Research Questions and Objectives 1.3.1 Research Questions 1. To what degree is the alignment of strategic human resource management and planning crucial for organizational performance? 2. What is the influence of optimal staffing on organizational performance within the technology sector in the United Kingdom? 3. The significance of employee motivation and its influence on organizational performance within the technology industry in the United Kingdom is a subject of inquiry. 1.3.2 Research Objectives The following are the main objectives of the research study: To assess the impact of aligning strategic human resource management (SHRM) with technology on organizational performance. To assess the impact of appropriate staffing levels on performance within the technology industry in the United Kingdom. To examine the relationship between employee motivation and organizational performance within the technology industry in the United Kingdom. 1.4 Thesis Overview 1.4.1 Chapter 1: Introduction This chapter presents a comprehensive outline of the thesis, which is divided into four components. The first section provides an introductory background of the subject matter and explains the theoretical framework, which encompasses the research challenge. The second part of the chapter presents a comprehensive summary as well as the significance and scope of the study. The third component of this study outlines the objectives, research inquiries, and
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10 hypotheses of the study. The last section provides a comprehensive outline of the thesis’ overarching framework. 1.4.2 Chapter 2: Literature Review This chapter offers a comprehensive review and analysis of pertinent scholarly works. The theoretical underpinnings of this concept are examined and deliberated upon. The chapter provides an overview of prior research conducted in the realm of human resource management methods, skilled labor, commitment from employees, and worker and organizational performance within the technology industry. It presents a comprehensive examination of the existing body of literature on strategic human resource management. The chapter also explores the various strategies for SHRM, such as the resource-based perspective and the behavioral viewpoint, with a specific focus on the technology industry. The relationship between SHRM and organizational performance is also analyzed. Furthermore, the study delves into the implementation of SHRM in the domain of technology in the United Kingdom. 1.4.3 Chapter 3: Research Methodology This chapter provides a comprehensive examination of the methodology employed in this study, including a thorough description and rationale. It delves into the methodological considerations and justifies the selection of statistical methods and techniques utilized. The section presents the methodological justification and procedural guidelines required to conduct an empirical investigation of the research questions and proposed hypotheses. The thesis covers the research paradigm and delineates the research context, specifically focusing on the technology sector in the UK. It also provides an overview of the sample population and sampling frame, focusing specifically on the impacts of strategic Human Resource Management and Planning on the technology industry in the United Kingdom. The chapter gives an overview of the research design and techniques employed in the study, while also delving into the operationalization of the construct under investigation and the methods used for its measurement. The section also analyzes the procedures used to evaluate the reliability and validity of the research instrument. This part of the document includes the selection of data analysis methodologies and provides an overview of the data analysis methodology.
11 1.4.4 Chapter 4: Research Findings Chapter four of this thesis involves the examination of the data and the subsequent presentation of the empirical results. It presents the demographic characteristics of the study participants and an overview of the descriptive statistics. The study introduces multivariate analysis of variance and examines the correlation between the system of strategic human resource management (HRM) practices and organizational performance. This includes evaluating the multivariate normality of the data, assessing the measurement models, and addressing any potential common method bias. 1.4.5 Chapter 5: Discussion and Conclusions The primary objective of this chapter is to provide a comprehensive overview and in-depth analysis of the study’s findings, drawing connections to existing literature and related research. Additionally, the study provides an analysis of its contributions and limits. The chapter concludes the thesis by presenting the primary recommendations and conclusions, along with suggestions for future research endeavors. CHAPTER 2: LITERATURE REVIEW 2.1 Theoretical Framework The attainment of organizational goals and objectives can vary across different organizations. The management of employees, who are considered the fundamental assets of a firm, also varies across different entities. Nevertheless, the influence of Strategic Human Resource Management is substantial across the technology industry in the UK when it comes to achieving organizational goals and objectives. According to Chunyan and Shuming (2004), firms that effectively implement superior SHRM practices has the inherent ability to ultimately achieve their objectives and maintain a positive image and reputation within their own industry. The implementation of strategic human resource practices and planning plays a crucial role in effectively managing personnel and ensuring optimal performance within the organization. Therefore, various research in this field emphasizes the importance of using a strategic human resource management and planning approach to effectively attain corporate goals. Moreover, most scholarly research emphasizes the significance of aligning human resource plans with the
12 overall organizational strategy to achieve the desired level of performance (Jordi, 2012). There are two main theories examining the influence of strategic human resources management on organizational performance. They include organization learning theory and resource-based view theory. 2.1.1 Organization Learning Theory The notion of organizational learning was initially proposed by Cyert and March during the 1960s and has subsequently been embraced by several scholars. The incorporation of organization learning theory into industries like technology aims to provide a comprehensive framework for explaining the introduction of new concepts, particularly in the context of organizational performance ( Paauwe, 2010). Understanding fundamental concepts on the impacts of SHRM and planning is crucial in shaping organizational behavior, design, and structures. A comprehensive grasp of organization theory is contingent upon a wide range of fields and specialties that demonstrate its applicability to organizations in the technology industry in the U.K. According to the research conducted by Akhavan and Jafari (2006), it is crucial to comprehend the theory of organizational learning from a management standpoint to effectively address behavioral patterns that impact the design and structures of technology companies. This observation indicates that organization theory has a significant role in facilitating the inter- organizational dynamics within tech firms. In the context of this study, the theory of organizational learning offers a valuable framework for technology organizations to examine performance and behavioral patterns related to strategic decision-making ( Jianwu & Shuming, 2007). The effective implementation of strategic human resource management in technology organizations is contingent upon institutional policies. Consequently, a comprehensive comprehension of how these organizations utilize organization theory is crucial to strategically manage their human resources throughout their extensive network of branches. 2.1.2 Resource Based View Theory The theory was formulated by Wernerfelt (1984) within the context of organizational dynamics. According to Wernerfelt (1984), to transform a temporary competitive advantage into a lasting one, it is necessary for a firm’s resources to possess heterogeneity and be limited in terms of mobility. Today, the resource-based view theory posits that companies must recognize the
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13 scarcity and value of their organizational resources ( Wright & Snell, 2001). The primary objective of integrating resource-based perspective theory is to assess both the efficacy and efficiency of an organization in the formulation of strategic decisions. The authors additionally specified that the theory of resource-based view demonstrates the skills present within an organization and the steps implemented to promote long-term strategic decision-making (Jordi, 2012). Competences refer to the abilities and skills possessed by a firm, while core competencies pertain to the specific capabilities in which the firm excels in comparison to its competitors, both of which are fundamental in analyzing the impact of strategic HRM and planning on organizational performance. Based on prevailing ideas and concepts, the occurrence of opportunity costs in most businesses is mostly attributed to the allocation of resources towards non-core activities inside the corporation. The significance of this matter is particularly emphasized in the context of strategic human resource practice, as highlighted by Wright and Snell (2001). The primary objective of implementing resource-based theory within prominent firms is to assure the strategic acquisition and deployment of human resources possessing the requisite skills necessary to sustain a competitive advantage over an extended period. Therefore, it is imperative for firms to consider implementing appropriate recruitment and selection criteria (Barney, 2001). Furthermore, the theory explains how the workforce team and the caliber of workplace interactions among employees can facilitate the identification of an organization’s strengths and weaknesses. According to Neeraj (2012), firms that possess efficient recruitment and employee retention strategies can cultivate a skilled workforce that can effectively manage organizational objectives. The assessment of employee performance and the resulting outcomes are indicative of organizational competency. In the context of resource-based theory, this observation likely illustrates how tech organizations can allocate resources towards endeavors that entail opportunity costs. Given that most tech organizations allocate a significant portion of their budget towards human resource management, it is likely that the implementation of strategic human resource practices inside these organizations will present considerable difficulty (Louise, Morgan, John, & Martin, 2017). The study utilized the resource-based view theory to assess organizational resources and their role in developing and executing strategic human resource and planning practices within organizations in the technology industry in the U.K.
14 2.2 The Concept of Strategic HRM and Planning According to Campbell’s (1999), performance is characterized as observable behaviors and actions that are directly related to the achievement of an organization’s objectives. Additionally, these behaviors and actions can be quantified and evaluated through measurement. Furthermore, the theory of job performance can be characterized as the fulfillment of tasks and responsibilities for which an individual receives compensation, or for which they are deserving of compensation. The theory posits that the various measurement options, such as ratings from a supervisor, peer, or self, a simulated work sample, or hard criteria, should possess the qualities of validity, reliability, and lack of deficiency ( Katz & Kahn, 1978). Additionally, these measurement options should be devoid of contamination from external factors that are beyond the individual’s control, such as variations in technology that may impact their performance. If situational stimulants or restrictions are not considered during an evaluation, they can introduce bias into the mean, variance, or both when evaluating an individual’s performance. The formulation of successful criteria is contingent upon the utilization of observation and interpretation. However, a persistent issue in the evaluation of individuals lies in the limited reliability associated with the observation of their behavior ( Peter, 1954). The lack of dependability in the ratings can be mostly related to widely recognized rating flaws, including “first impressions,” “halo,” and “similar-to-me” biases. According to Lifson’s (1953) study, a significant portion of the variability in performance measurement can be attributed to variances among raters, even when these observers possess substantial experience in monitoring and evaluating individuals within a professional setting. The argument was supported by Lance (1994). However, it should be noted that experience cannot serve as a replacement for formal instruction. To address the issue pertaining to insufficient reliability, it is imperative for an observer to undergo appropriate training. According to Holbeche (2004), Strategic Human Resource Management is characterized by its emphasis on the implementation of strategic change and the development of the organization’s skill set. This approach aims to enable the business to effectively compete in the future. The Society for Human Resource Management plays a crucial role in fostering the growth and cultivation of a skilled workforce that aligns with the demands of an organization’s competitive
15 strategy (Boxall, Purcell, & Wright, 2007). By doing so, SHRM enables organizations to effectively attain their goals and fulfill their mission (Guest, 1987). The integration of human resource management strategy within the broader framework of business strategy is a fundamental component. The primary emphasis of this strategy is to attain the goals and objectives of the firm. Strategy, in essence, encompasses a collection of strategic options, a portion of which may be deliberately formulated. It is arguable that a significant portion, if not the majority, of a company's strategy is developed through a series of actions that occur over a period (Boxall and Purcell, 2003). The Society for Human Resource Management can be characterized as a strategic process that aims to optimize the alignment of human resource strategies with the overall business action plans, as well as with other complementary approaches. The organizational strategy should clearly articulate the objectives and goals of the organization, including its efficacy and many areas related to personnel management, among other factors. Effective human resource management in the technology industry is crucial when compared to other organizational functions due to the significant role it plays in leveraging the diverse assets possessed by employers to enhance productivity and achieve organizational objectives. Xu (2015) asserts that Strategic Human Resource Management and planning are centered around the implementation of strategic change and the development of organizational skills. This is done with the aim of ensuring the organization’s progressiveness and ability to effectively compete in the future. The Society for Human Resource Management is likewise focused on the cultivation of human capital necessary to align with an organization’s competitive strategy to achieve its goals and objectives. The primary mission of the society is to achieve organizational goals ( Steven & Richard, 2013). According to Wright and Snell (1998), strategic HRM refers to a collection of strategic decisions or strategies aimed at attaining these goals and enhancing employee productivity through effective employee management. It is also the synchronization of strategic human resource management and planning with organizational strategy ( MacDuffie, 1995). Numerous tech firms recognize the significance of harmonizing human resource management practices with the overarching strategic objectives of the organization.
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16 Organizations within the technology industry employ comprehensive approaches to create human resources strategies that establish goals and articulate objectives for addressing overall organizational challenges. To achieve optimal results, it is imperative for technology firms to possess a comprehensive understanding of the company strategy. During deliberations with departmental leaders and management, it is imperative for HR department to have a comprehensive understanding of the organization’s overarching objective to assess the role of human resources in achieving the overall vision (Collins et al., 2003). There is a heightened focus on the role of human resource liaison to gain a competitive advantage, as the implementation of effective practices across different functional areas within the organization boosts overall performance. Aligning the objectives of the Society for Human Resource Management with organizational structures might prove to be an effective approach once the human resource objectives have been determined. Consequently, many tech organizations have recognized the necessity of aligning SHRM with the management of human resources. This alignment ensures that organizational managers effectively implement human resource policies and procedures in their daily operations ( Stanley et al. 2012). According to Clark and Collins (2010), when firms strategically connect their human resources management with their organizational strategy, they are more likely to gain a competitive advantage in the industry due to their enhanced clarity of purpose and direction. 2.3 Importance of HRM and Planning in Enhancing Staffing Outcomes Human resource management and planning play a crucial role in facilitating an organization’s ability to effectively utilize its human resources, hence improving production while minimizing costs. To enhance the staffing outcomes of a business, human resource management implements certain tactics. Youndt (1996) argues that employee motivation plays a crucial role in facilitating behavioral change, fostering creativity, enhancing competency development, cultivating interest, promoting goal setting, nurturing talent development, and increasing engagement within an organizational context. Ideally, the desired staffing outcomes encompass the creation of a conducive working environment wherein organizational personnel can effectively fulfill their respective goals and objectives along with the organization’s overall mission ( Collins et al.,
17 2003). Therefore, the optimization of staffing outcomes and the achievement of organizational goals and objectives are facilitated by the implementation of effective human resource management techniques by the HR team. 2.4 HR As Agent of Competitive Advantage The formulation of the notion of competitive advantage is attributed to Michael Porter. According to Porter, competitive advantage is derived from a firm’s ability to generate value for its consumers ( Creswell & Clark, 2011). Porter underscored the significance of differentiation, which involves providing a product or service that is regarded as distinct within the industry, and concentration, targeting a certain buyer group or product market more effectively or efficiently than competitors who have a broader scope of competition. Subsequently, the individual proceeded to formulate a widely recognized framework consisting of three generic tactics, namely cost leadership, differentiation, and focus ( Pfeffer, 1994). These strategies serve as viable options for firms seeking to attain a competitive edge. According to Porter’s generally acknowledged perspective, the performance of a corporation is influenced by industry and its environmental variables. The resource-based view, in contrast, posits that a firm’s competitive advantage is essentially derived from the effective utilization of its valued resource portfolio. According to Creswell and Clark (2011), the concept of competitive advantage, as per this perspective, diverges from the environmentally centered strategic management paradigm in that it places greater emphasis on the interconnectedness between the firm’s internal resources, its strategy, and its performance. The resource-based view posits that human resource systems have the potential to contribute to the attainment of persistent competitive advantage by enabling the cultivation of firm-specific competencies ( Creswell & Clark, 2011). The exceptional and enduring success exhibited by numerous firms has been attributed to their distinctive abilities in effectively managing their people’s resources to attain a competitive edge. On the other hand, if human resource systems impede the development and utilization of new competencies or if they undermine existing competencies, they could potentially increase organizational susceptibility and lead to a competitive disadvantage. In the final years of the twentieth century, there has been an increasing recognition within the field of management that individual, rather than products, markets, currency, buildings, or
18 equipment, play a crucial role in distinguishing a company enterprise. All the resources possessed by an organization, except for human capital, are considered inactive ( Fitz-enz, 2000). Passive resources necessitate human intervention to generate value. The productivity of the workforce is a crucial factor in ensuring the long-term profitability of a firm or the overall health of an economy. It is crucial to acknowledge the factors that contribute to the sustainability and non-imitability of success achieved through human resources to gain a comprehensive understanding ( Lado, Wilson & Mary, 1994). The rationale behind this phenomenon is the fact that the outcomes derived from proficiently managing individuals are frequently less conspicuous or readily discernible in terms of their origins. As Fitz-en (2000) argues, the domain of culture, encompassing the management of individuals and its consequential impact on their behavior and talents, is occasionally regarded as the least tangible aspect of business and occasionally disregarded. Understanding the intricacies of a certain company and its operations can be challenging, even in the absence of dismissal, due to the interdependent nature of managerial practices inside the organization (Clark & Collins, 2010). Replicating a single item is a relatively straightforward task; however, duplicating multiple items poses a significantly greater challenge. 2.5 The Strategic Role of Human Resource Management The function of human resource management has continually encountered challenges in substantiating its role within the technology industry. During periods of favorable economic conditions and sufficient financial resources, tech organizations readily rationalize their investments in training, personnel, rewards, and employee participation systems. However, in times of financial constraints, these human resource systems are often the first to experience reductions. The emergence of the subject known as strategic human resource management, which focuses on examining the role of HR in facilitating corporate strategy, has presented a means of showcasing its significance to the organization ( Wernerfelt, 1984). The emergence of the area of strategic human resource management can be traced back to the year 1984, when Devanna, Fombrun, and Tichy conducted an in-depth investigation into the connection between company strategy and human resources ( Devanna & Fombru, 1982).
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19 According to the source cited, the field of human resource management has undergone significant transformations in the last quarter century. These modifications signify two significant alterations. One significant development in the realm of management is the transition from people management to human resource management (Voorde, et al., 2010). The second change pertains to the shift from the domain of human resource management to the domain of strategic human resource management. The user did not provide any text to rewrite. According to Voorde, et al. (2010), the first initial change facilitated the acknowledgement that individuals constitute a significant resource inside enterprises and can be effectively handled through methodical approaches. The second transformation has expanded upon the existing knowledge base within the profession. This transformation is grounded in the understanding that, alongside aligning human resource policies and practices internally, it is imperative to establish a connection between these policies and practices and the organizational requirements (Voorde, et al., 2010). The incorporation of these needs into the firm’s strategies led to the emergence of the term “strategic human resource management”. Strategic human resource management is predicated on the acknowledgement that organizations can enhance their effectiveness by implementing human resource policies and practices that ensure the provision of an optimal number of individuals with the requisite behaviors, competencies, and motivation levels to meet the organization's needs. In other words, strategic human resource management involves establishing a connection or integration between the overarching strategic objectives of a corporation and the strategy and implementation of human resource management (Lado, Wilson & Mary, 1994). The company’s internal operations and personnel are effectively governed to support the objectives of the business plan and establish a cohesive framework for managing different human resource tasks, including recruitment, training, and compensation, in a mutually reinforcing manner. HRM embodies a novel conceptualization and methodology for executing personnel-related tasks. The continued execution of personnel functions, which have developed in response to emerging needs, is necessary. Nevertheless, rather than regarding these functions as discrete entities, HRM acknowledges their interconnectedness and views them as integral components of a management system that necessitates close integration with strategic organizational planning ( Schuler et al., 2007). Human resources are a significant and asset that can contribute to gaining
20 a competitive edge. Human resource systems have the potential to enhance persistent competitive advantage by enabling the cultivation of firm-specific competencies. Schuler et al. (2007) postulate that strategic human resource management pertains to the establishment of a connection between the overarching strategic objectives of an organization and the formulation and execution of its human resource strategy. The existing body of research consistently presents findings that indicate a positive correlation between the increased implementation of human resource strategies and the overall performance of organizations. The establishment of a causal relationship between human resources and organizational performance allows HR managers within the technology sector to develop strategic initiatives aimed at improving operational outcomes and ultimately achieving enhanced organizational performance. Human resources are a critical driver of competitive advantage (Porter, 1985). Based on empirical evidence derived from academic research, it can be inferred that there exists a noteworthy correlation between strategic human resource management practices and organizational performance. This assertion is supported by specific instances documented in scholarly literature that highlight the influence exerted by an organization’s approach to human resource management on its overall performance. 2.6 Challenges to Strategic Human Resource Management Strategic human resource management in the technology industry in the UK environment is faced with numerous challenges in its pursuit of achieving optimal performance. O’riordan (2017) provides a comprehensive analysis of the challenges inherent in the implementation of strategic human resource management within the technology sector. The primary issue at hand is recognized to be corporate culture. Schuler et al. (2007) argue that the importance of corporate culture in enabling the efficient implementation of the strategic HRM function should not be underestimated. The proper implementation of strategic human resource management can successfully accomplish all its objectives when the business culture promotes collaboration. In contrast, the lack of a conducive corporate culture may hinder the attainment of objectives related to sexual and reproductive health and rights management within technology firms. The requirements imposed on the professionals inside an organization can hinder the attainment of strategic Human Resource Management goals. The presence of unfulfilled aspirations can
21 have a detrimental effect on an individual’s commitment to professional objectives and impede overall employee productivity (Porter, 1985). Schuler et al. (2007) argue that creating an appropriate work environment necessitates meeting the desires of employees while also satisfying the needs of the firm. The allocation of adequate resources, including tools, information, and training, to employees is a crucial step towards achieving strategic human resource management goals within an organizational setting ( Miranda & Fernando, 2020). CHAPTER 3: METHODOLOGY 3.1 Research Design and Philosophy Research design is a methodical and structured approach that researchers use to systematically gather and assemble data for the purpose of conducting scientific investigations. The primary objective of research design was to facilitate researchers in identifying specific and credible data that leads to significant consequences. The study utilized a descriptive research design. This is given that, as stated by Sekaran (2010), a descriptive research design provides a comprehensive description of pertinent concerns, including the study goal, location, investigation processes, and research interruption. Allen and Patrick (2007) observed that descriptive survey research yields statistical data to investigate a particular phenomenon such as the impact of SHRM and planning on organizational performance in the technology sector in the UK. The chosen design for this study is suitable as it allows the researcher to collect information regarding the strategic HR procedures implemented by technology organizations. The present study centers on quantitative data analysis and examines the impact of strategic human resource management and planning within the technology industry in the United Kingdom. The study utilizes the positivist paradigm, despite the presence of a significant association between diverse variables and the underlying reasons associated with them ( Darwish, 2012). Consequently, the result will inherently incorporate quantitative data. The chosen methodology for this study is a research approach. The researcher intends to employ a quantitative study design for the investigation, as this approach is known for its objectivity and accuracy ( Allen & Patrick, 2007). Moreover, the quantitative approach is deemed superior as it entails a meticulous analysis of a limited number of factors.
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22 The research strategy refers to the systematic approach employed by researchers to investigate a certain topic or problem. It involves careful planning and execution. The study will utilize quantitative methodology, namely employing correlation analysis, to examine the relationship between strategic human resource management and organizational performance in the technology industry in the United Kingdom. The utilization of surveys and secondary sources will be employed for data extraction, as these sources are widely acknowledged for their effectiveness in facilitating the collection of large-scale samples in research. 3.2 Selection of Research Methodology There are three distinct research options available for selection, namely mono method, mixed method, and multi-method. Mono techniques provide researchers with the capability to gather data of a certain nature, which may manifest as either quantitative or qualitative in nature ( Darwish, 2013). The utilization of mixed methods in research enables researchers to employ a wider range of data gathering instruments, resulting in a more comprehensive dataset that may be segmented into several regions, yielding multiple datasets. This study will also adopt a mono- methodological approach where quantitative data will be gathered. According to Allen and Patrick (2007), the concept of time horizon refers to the length of time over which an individual, organization, or society plans and makes decisions. Most of research endeavors commonly utilize two fundamental types of temporal frameworks. These encompass the research designs known as “cross-sectional” and “longitudinal” ( Darwish, 2013). Data will be gathered at a specific point in time if it is required to adhere to a cross-sectional time frame. The research methodology employed in this study will utilize a cross-sectional time horizon, which is distinct from the longitudinal technique where data is collected over an extended period. 3.3 Data Collection Techniques and Procedures The data collected will consist of both primary and secondary sources. The collection of primary data will be conducted by the administration and distribution of semi-structured questionnaires among the participants. The secondary data will be extracted from a variety of papers utilized in the literature study and will involve sourcing information from various online articles and scholarly journals. The data will be subjected to a correlational analysis technique to identify factors that warrant further investigation ( Gratton et al, 1999). The survey instrument is designed
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23 to be self-administered and sent electronically, facilitating convenient dissemination among the participants. This approach is advantageous as it provides researchers with an additional means to identify valuable variables. 3.4 Population and Sample The research employed a probability sampling technique to minimize the potential for systematic errors and sample bias. The study employed a sample size of 100 technology companies in the UK as the researcher deemed it suitable to ensure a comprehensive evaluation of a representative population in the research endeavor. 3.5 Questionnaire Design and Distribution 3.5.1 Questionnaire Design Prior to this, numerous specialists in strategic human resource management have conducted extensive surveys in the field of organizational performance, which has achieved a rather advanced level of development in this domain. Consequently, this study undertakes the task of gathering and organizing the surveys conducted by earlier researchers. As a result, minor modifications have been made to the existing questionnaires. The questionnaire will be partitioned into three distinct sections. The first phase involves the gathering and categorization of fundamental data pertaining to the organization. Secondly, the internal human resource management system of the firm is examined. Lastly, an inquiry is conducted to evaluate the performance of the tech enterprise. Extensive research has provided evidence of the correlation between strategic human resource management and organizational performance (Becker & Huselid, 1998). However, due to the adoption of various evaluation indicators by different individuals and the enormous number of such indicators, a significant number of inaccuracies may arise. This study will do factor analysis on the selected indicators, followed by a detailed study of the complete indicators. Furthermore, this study article will undertake a comparative analysis between technology companies and non-tech companies, evaluating the merits and drawbacks of technology organizations in relation to their non-tech counterparts and providing recommendations based on the findings.
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24 3.5.2 Questionnaire Distribution The study utilized a sample of enterprises derived from various technology companies within the United Kingdom. The provided samples encompass companies of diverse characteristics and tech industry contexts within which they function. Given the constraints inherent in the research and investigation procedure outlined in this study, including restrictions in research scope, time constraints, and spatial constraints, a method was employed to gather data through the distribution of online questionnaires ( Huselid et al., 2005). A total of 202 responses were obtained because of this approach. The questionnaires yielded the following fundamental data as shown in Figure 1. Figure 1: Type of companies In terms of company classification, a total of 100 questionnaires were obtained from technology companies, while 102 questionnaires were collected from non-technology companies in this study. The proportions of the two entities are approximately 50%, and the dataset exhibits a rather even distribution. Among the technological companies surveyed, most respondents (40 individuals) are employed by organizations with a workforce size of over 200 employees, which represents the highest proportion of employees across all company sizes. In contrast, the
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25 participants employed by tech organizations, including less than 50 individuals, constituted the least significant segment, with a mere 15 individuals employed in such establishments. Among the non-technology organizations surveyed, it was found that 38 respondents were employed by organizations with a workforce exceeding 200 individuals. This group constituted the highest proportion of employees when compared to companies of varying sizes. In contrast, the participants employed by organizations consisting of 50 to 100 individuals exhibited the lowest percentage, amounting to merely 20% as demonstrated in the figure below. Figure 2: Number of employees in different types of companies In the conducted survey, it was observed that most of the participants (43 individuals) employed in non-technology firms have accumulated over a decade of experience within the non- technology sector. Conversely, a smaller proportion of respondents (14 individuals) reported having worked exclusively in non-technology enterprises. Non-technology-oriented enterprises were founded within a span of fewer than three years. Among the participants employed in technology firms, most of these firms (34 out of the total) were established between 5 and 10 years ago, representing the highest proportion. Conversely, the technology companies where the respondents were currently employed were predominantly established within the last 3 years,
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26 also accounting for the largest proportion. The ratio exhibits the minimum value, as it consists of a just 17 individuals. Figure 3: Years of established of companies Most of the participants employed by technology businesses are engaged in the information transmission, computer services, and software sectors, accounting for 20 respondents. Conversely, just three respondents are employed in the real estate industry. Non-technology enterprises exhibit a higher representation of respondents from the technology industry, with a total of 19 additional participants. Conversely, a mere 3 respondents are employed in companies operating within non-tech companies. 3.6 Data Processing and Analysis Methods Following the completion of data collection, a comprehensive process of data cleaning and verification was conducted on all the questionnaires before analysis. The tasks of editing, coding, and tabulation was performed. According to Mugenda and Mugenda (2008), qualitative data does not yield discrete numerical values. The researchers collected qualitative data using open-ended questions and subsequently conducted theme analysis to examine the received data. The results
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27 were organized in frequency formats to facilitate comprehension and enhance the visual representation of the respondents’ responses. The analysis of quantitative data was conducted utilizing the Statistical Packages for Social Sciences (SPSS) tool. 3.7 Ethical Considerations Given the methodology employed in this study, which involves the utilization of a meticulously designed questionnaire, utmost importance is placed on safeguarding the anonymity and privacy of research participants. It is crucial to note that their personal information is not used employed in any manner after the process of data mining (Sekaran, 2010). The study utilized a voluntary approach for sample participation, ensuring that participants were fully aware of their voluntary involvement in the research. Upon reaching a consensus and granting consent, the researchers will thereafter apprise the participants of their entitlement to rescind their agreement and discontinue their involvement in the investigation at any juncture. The principles of data privacy, anonymity, and confidentiality will be rigorously upheld during both the analytical and reporting phases of the project. 3.7.1 Informed Consent The concept of informed consent is a fundamental principle in medical ethics and research. It refers to the process of obtaining permission from someone before conducting an interview or research with them (Becker & Huselid, 1998). It is a crucial component in research studies as it guarantees that participants possess a comprehensive understanding of their rights and responsibilities prior to engaging in the study. The study implemented measures to guarantee that all participants who signed the permission form were adequately prepared to engage in the research. 3.7.2 Voluntary Participation The concept of voluntary participation refers to individuals willingly engaging in a certain activity or study without any external coercion or pressure. The participants were not coerced into taking part in the research. In contrast, the participants were provided with a comprehensive overview of the research objectives and goals prior to obtaining their informed consent.
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28 Additionally, the participants possess an equitable entitlement to either opt to participate in the research or discontinue their involvement at any point, based on their own convenience. 3.7.3 Confidentiality The concept of confidentiality is a fundamental principle in various professional fields, particularly in research. The participants were assigned numerical code names instead than using their actual names. This measure was implemented to safeguard the confidentiality of participants’ identities, shielding them from both other participants and the organization itself (Mugenda & Mugenda, 2008). Furthermore, a commitment was made to safeguard sensitive data from any external third-party entities. 3.7.4 Privacy The concept of privacy is a fundamental aspect of individual autonomy and personal freedom. To safeguard the confidentiality of the participants, the surveys were disseminated to the respondents’ designated workstations or any other secluded location where they feel a sense of security. This measure guarantees the absence of interference or influence from other participants. 3.7.5 Anonymity According to Mugenda and Mugenda (2008), anonymity refers to the state or condition of being anonymous or unknown, where one’s identity is concealed from third parties. The study has gathered and presented the research findings while maintaining the anonymity of the participants and withholding any identifying information. According to the given information, the participants were instructed to refrain from including their own names or any identifying information. Conversely, code names were allocated to them along the course of the research endeavor. 3.8 Chapter Summary This chapter is centered around the identification of an adequate research design for the study. It discusses the selection of the target population and the utilization of the correct sample design and procedure. Additionally, it explores the construction and explanation of the research
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29 instrument employed, as well as the implementation of the pilot study. In addition, the chapter provides a detailed explanation of the data analysis methodologies employed and the methods employed to ensure ethical issues were upheld by the responders. CHAPTER 4: RESEARCH FINDINGS The findings of this study indicate a notable and positive correlation between strategic human resource management and organizational performance of organizations in the technology industry in the United Kingdom, thereby confirming the basic hypothesis. Furthermore, extensive research has established that SHRM exerts a direct and substantial influence on individual performance, organizational commitment, and job satisfaction in the UK’s technology industry. The synchronization of human resource practices within technology organization in the UK is of paramount importance in boosting overall performance, as it facilitates the efficient administration of individuals in a manner that yields a competitive edge (Wright & McMahan, 1992). Furthermore, the generation of value for a firm is dependent on the congruence between individual human resource practices and the goal of cultivating essential resources or capabilities. The direct influence of recruitment and selection, as well as evaluation of performance, on organizational productivity is found to be minor, whereas the HR practices of remuneration, training and development as well as strategic HR alignment exhibit a considerable direct impact on performance. The favorable impact of human resources on work satisfaction, turnover intention, and organizational commitment serves to enhance organizational performance within technology firms in the UK. Thus, the proposition that human resource policies will influence performance through human resource outcomes is corroborated. The findings of the study indicate that there is a notable correlation between strategic human resource management and planning methods, including recruitment and selection, remuneration, training and development, and performance appraisal, and the overall performance of technology firms in the UK. Furthermore, the results indicate that there is a significant and positive correlation between human resource outcomes, namely work satisfaction, turnover intention, and organizational commitment, and the organizational performance of technology enterprises in the UK. When looking at the mediation function of HR results, on the other hand, the individual effects of HRM practices had smaller coefficients or were not statistically significant. This study
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30 demonstrates the strong impact of HRM practices on organizational performance, hence validating the configurational approach. The current empirical findings in this study indicate that the implementation of integrated HRM practices has the potential to enhance the organizational performance of technology enterprises in the United Kingdom. It is apparent that technology organizations that have implemented efficient and structured human resource management procedures are experiencing notable benefits in terms of their impact on job results (Voorde, et al., 2010). This phenomenon has had a substantial influence on the performance of UK’s tech organizations. The findings align with prior research that has demonstrated the strong influence of organizational interventions on performance outcomes, particularly when efforts are directed at modifying employee behavior. The inclusion of corporate human resources (HR) policies and procedures has been found to yield certain HR results, such as a heightened degree of work outcomes, which subsequently contribute to a more proficient workforce. The presence of an efficient and competent workforce plays a significant role in facilitating the attainment of corporate objectives in a good manner (Sekaran, 2010). Empirical findings indicate that the implementation of integrated HRM practices has the potential to enhance the organizational performance of manufacturing enterprises in Ethiopia. It is apparent that manufacturing organizations that have implemented efficient and structured human resource management procedures are experiencing notable benefits in terms of their impact on job results. This phenomenon has had a substantial impact on the performance of organizations. The findings align with prior research conducted by Delaney and Huselid (1996), indicating that organizations have the potential to exert a substantial influence on performance by initially focusing on modifying employee behavior. The inclusion of organizational human resources (HR) policies and practices has been found to yield certain HR results, such as a heightened degree of work outcomes, which in turn contribute to a more efficient workforce (Allen & Patrick, 2007). The presence of efficient and qualified personnel has a favorable impact on the attainment of organizational goals. The research revealed that the HR business partner plays a crucial function in facilitating communication and collaboration among CEOs, HR personnel, department managers, and
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31 employees in the technology industry in the United Kingdom. The primary responsibility of this pivotal position entails leveraging human resources capabilities to effectively contribute towards the overarching objectives of the tech organization. The research has emphasized the necessity of conducting studies that specifically examine the function of human resource management and planning practices in the successful management of strategic partnerships, including mergers and acquisitions, collaborative agreements, and joint venture relationships. Additionally, there exists a necessity to conduct further research on the effects of these strategic partnerships on the existing human resource management practices within the participating organizations. This is due to the presence of numerous difficulties that must be effectively addressed at the intersection of two or more strategic partnerships. The study also found that promotion and integration of diversity, equity, and inclusion hold significance within the technology sector, as they have been crucial in fostering product innovation, enhancing decision-making processes, and cultivating high-performing teams (Sekaran, 2010). It is not unexpected that teams characterized by gender diversity and inclusivity exhibit superior performance compared to gender-homogeneous teams with lower levels of inclusivity, with an average performance advantage of 50 percent. However, the issue of diversity in the technology sector remains a significant human resources burden, with many numerous technology organizations grappling to address the problems of underrepresentation, discrimination, and bias inside their organizational environments. According to the research findings, the prevalence of employee burnout in the workplace is increasing, particularly within the technology industry in the United Kingdom where it is observed as a frequent concern in human resources. The prevailing ethos in this environment often promotes a “hustle culture” that prioritizes high levels of productivity, often to the point of being unrealistic (Becker & Huselid, 1998). The phenomenon can be ascribed to a mindset characterized by entrepreneurial tendencies and the continuous progression of technology, which fosters a need for immediate completion of tasks. All these actions have associated repercussions: The duration of working hours has been extended. According to Allen and Patrick (2007), factors such as inadequate leadership, lack of clear direction, excessive job demands, and a detrimental work environment are identified as prominent sources of stress.
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32 By using a human capital management system, management teams in the UK’s technology industry can effectively assign jobs and oversee employee overtime as needed. Every tech firm is likely to encounter stress in this domain at some juncture, but it ought to be an anomaly rather than the norm (Sekaran, 2010). The research findings suggests that employees are likely to have reduced levels of stress and increased productivity when they have a consistent work schedule, thereby tremendously impacting organizational performance. The impact of strategic human resource management and planning on employee performance is paramount, leading to the improvement of organizational performance. This is achieved through the formulation and implementation of HRM guidelines and procedures that align with both outside factors and the objectives of the company. According to Mienipre and Nwuche (2021), the impact of strategic HRM practices and regulations on organizational performance can be further explored by examining three key dimensions of human assets: human capital, social value, and psychological wealth. The two primary constituents of human capital are the physical condition and welfare of employees, alongside their knowledge, competence, and experience. In a crisis, the active engagement of organization members can significantly influence the condition of the organization, since they possess the ability to respond to the situation promptly and judiciously, drawing upon their education, competence, and experience (Mienipre & Nwuche, 2021). This will have an impact on the organization’s ability to withstand and recover from challenges or disruptions. The development of an organization’s collaborative intellect can be enhanced through interpersonal connections and the exchange of knowledge and expertise among its stakeholders. The shared cognitive capacity of a group promotes tacit collaboration, mutual confidence, and cohesion among members of an organization when confronted with challenges, hence augmenting the organization’s unique ability to manage crises, and impacting its performance. Social capital is regarded as a latent asset that an organization possesses inside the framework of the social network system. According to Mienipre and Nwuche (2021), the environmental factor in question can be classified into two main categories: external environmental variables, which encompass collaborations with distributors or suppliers and the implementation of adaptable
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33 third-party information systems; and internal environmental variables, which include interpersonal relationships among colleagues, the atmosphere for learning, and team cohesion. The concept of social capital possesses the capacity to enhance the levels of collaboration and coordination among workers within a workplace setting. Consequently, this augmentation contributes to an increase in the motivation of the organization’s workforce and enhances its effectiveness in managing crises. Moreover, the utilization of social capital can facilitate the acquisition of external resources and information that are crucial for effectively addressing emergencies and redistributing resources both within and beyond the confines of the technology organization (Shafer et al., 2001). This phenomenon enhances the organizational capacity to withstand and recover from adverse events, hence mitigating the detrimental impacts of the crisis on the company. In essence, individuals possessing a substantial amount of psychological capital possess the capacity to endure the significant pressures associated with a crisis. They approach challenges and alterations with a constructive and confident mindset, thereby cultivating a favorable work atmosphere (Shafer et al., 2001). Furthermore, they effectively utilize their expertise and abilities in alignment with the specific circumstances, thereby generating prospects for organizational growth and performance during adversity. These elements significantly impact the organization's ability to enhance its performance and achieve a competitive advantage. Moreover, previous studies have demonstrated a robust association between organizational performance and strategic human resource management (HRM) that aligns with corporate culture, strategic planning, and the organizational context. For example, Shafer et al. (2001) found that firms can cultivate organizational agility by aligning their staffing rules, people training, career development programs, and performance criteria with their core values. This phenomenon contributes to the enhancement of organizational performance. Umoh et al. (2014) research findings revealed significant correlations between organizational performance, human resource development, and training, suggesting the presence of mutually advantageous relationships among these factors. Mienipre and Nwuche (2021) research findings revealed a significant positive relationship between the monitoring of organizational risks, the capability to respond to crises, and the management of talent.
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34 When constructing a strategic human resource management system, it is imperative to establish a strategic rank system. The operational and managerial requirements of scientific and technological companies necessitate the specification of the enterprise’s special needs in terms of organizational structure and the knowledge and competencies of its human resources. The techniques of job design, job evaluation, and other related procedures are implemented to construct and enhance the hierarchical structure inside an organization. These processes aim to strategically design positions and determine the appropriate number of employees for each role. During the operational phase, technology-driven enterprises ought to establish a comprehensive framework for job content, responsibilities, and evaluation methods at various levels, considering the requirements of the creation of products, marketing, service, and other relevant factors. This framework should include the creation of job descriptions, which can serve as a valuable resource for employee recruitment, training, and performance evaluation. Simultaneously, the approach incorporates and utilizes both quantitative and qualitative methodologies, employing techniques such as component comparison and position ranking to carry out job evaluation. This process serves to elucidate the interconnections among various jobs and establish an institutional framework. Technology-based corporations are enterprises that prioritize the development of innovative solutions and the generation of financial gains. The implementation of various incentive mechanisms is crucial in fostering the realization of self-worth among knowledge-based workers, constantly stimulating their enthusiasm for work, and facilitating the mutual success of both firms and employees (Umoh et al., 2014). The evaluation of employees’ self-worth encompasses more than just their compensation; it also encompasses their personal growth, professional advancement, acknowledgment and regard, and involvement in decision-making processes. Organizations ought to prioritize the considerations of their employees and implement various strategies such as wage rewards, training motivations, promotion perks, reputation benefits, and other similar approaches (Shafer et al., 2001). To retain skilled workers and ensure the long-term viability of the organization’s core team, it is imperative to provide enhanced career development opportunities for knowledge-based personnel and involve them in company decision-making processes.
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35 Middle-level managers play a pivotal role in engaging the lower-level management of a tech organization in the process of strategic planning. When stakeholders actively participate in the process of strategic planning, organizations often employ external management techniques, such as customer relationship management, to aid in their decision-making and implementation. Mienipre and Nwuche (2021) hold that involvement of senior executives is associated with management methods that prioritize internal operations, particularly in the context of technology process reengineering. When senior managers and owners participate simultaneously, it is more advantageous to utilize management tools that are specifically tailored to owners. Mid-level managers frequently engage in the process of strategic planning while concurrently conducting benchmarking activities. Conversely, top-level managers assume responsibility for overseeing business process reengineering endeavors (Shafer et al., 2001). Bayesian network models frequently incorporated the involvement of specialists and blue-collar workers as participants but failed to demonstrate any form of interaction between strategic managers and management tools. The implementation of strategic human resource planning components has been found to have a positive impact on an organization’s overall productivity, employee satisfaction, reputation, and a decrease in operating expenses. According to Masadeh, Obeidat, and Tarhini, (2016), organizations strive to successfully respond to the changes they encounter to enhance performance and sustain competitiveness. To do this, organizations must employ their human resources in a manner that fosters engagement and commitment to their work. Therefore, it is imperative for human resource managers to possess a comprehensive understanding of the efficacy of strategically formulated human resource practices in several areas like training, planning, reward systems, recruitment, and selection. Mienipre and Nwuche (2021) argue that these practices play a crucial role in cultivating a culture of employee engagement inside the firm. The Society for Human Resource Management is employed to establish a direct connection between human resource management and an organization’s strategic management processes. This approach highlights the importance of coordination and alignment among various HRM practices. The study employed inferential statistics for analysis. In this study, inferential statistics were employed to investigate the correlation between strategic HR practices and organizational performance, with HR outcomes serving as a mediating variable. The study employed
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36 hierarchical linear regression analysis to investigate the direct relationship between strategic human resource strategies and organizational performance. The study used structural equation modeling to investigate the work outcomes-mediated indirect relationship between human resource practices and organizational performance. This research aims to examine the direct associations between HR practices and organizational performance. A hierarchical regression analysis was undertaken to investigate the influence of strategic human resource management techniques on organizational performance. The primary aim of this study was to investigate the mediating function of human resource outcomes in the correlation between HR management practices and organizational performance. To investigate the indirect relationship between HRM practices and organizational performance, with HR outcomes serving as a mediating factor, a structural equation model was employed. At the outset, there was a prevailing assumption that the implementation of human resource management strategies aimed at enhancing HR outcomes would have a substantial influence on organizational performance. Two hypotheses were formulated in this study to assess the influence of strategic human resource planning (HRP) on the performance of Jordanian public shareholding enterprises, as seen by managers. The subsequent results depict the outcomes of the hypothesis test. The combination of strategic planning and HRP has been found to have a statistically significant influence on organizational performance. The findings of this study are consistent with the research carried out by Nwachukwu and Chladkova (2019), which suggests that there exists a statistically significant and positive correlation between strategic performance and key factors such as human resources, financial resources, and strategic analytical capabilities. Furthermore, it is imperative for managers and executives to possess a comprehensive comprehension of the impact of the organizational structure on both human and financial resources, as well as the efficacy of strategic analysis, to significantly augment strategic performance. The reason for this is that the organizational structure plays a crucial role in governing the interplay between human resources, financial resources, strategic analysis capabilities, and strategic performance. The results indicated that strategic participation exhibited a statistically significant influence on the organizational performance of technology firms in the UK. The discovery aligns with the findings of Kasule and Bisaso (2019), who observed a notable absence of strategic HRM practices throughout the technology industry in the United Kingdom. The findings of the study
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37 additionally indicate that managers occupying high-level and intermediate positions demonstrate a significant dedication towards incorporating strategic approaches to HRM. This commitment is driven by the recognition that such integration can effectively address the problem of inefficient management prevalent within the technology industry. According to the research, it is imperative for tech companies to adopt SHRM practices to enhance their operational effectiveness. This necessity arises from the swift transformations resulting from globalization, the emergence of a knowledge-based economy, the technological revolution, and the decline in government funding allocated to technology institutions. The establishment of a shared purpose within a tech organization is facilitated by the implementation of strategic management practices. It often possesses the capacity to improve financial performance. Moreover, it offers the organization a set of well-defined objectives and instructions, fostering uniformity in the process of making decisions. Moreover, it promotes the implementation of organizational transformation to effectively respond to evolving conditions. 4.2 Limitations of the Study Cooperation: The respondents showed a lack of willingness to comply with the researcher’s request to complete the questionnaires. The researcher encountered challenges in collecting the necessary information and organizing the data. The questionnaires were distributed to the respondents, who were given the opportunity to complete them at their convenience. Confidentiality: The participants expressed concern over the potential breach of confidentiality in the submitted information, which non-governmental organizations might access and use. Nevertheless, the researcher included an introduction letter as evidence that the study is solely intended for academic purposes. 4.3 Chapter Summary This chapter presents the data that was collected from the participants in accordance with the study questions. The chapter also includes a description of the study’s findings as well as an exploration of its limitations.
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38 CHAPTER 5: DISCUSSIONS AND CONCLUSION 5.1 Discussions Strategic human resource management is a systematic procedure that entails the utilization of comprehensive methodologies for the formulation and implementation of HR strategies. These strategies are designed to align vertically with the overarching corporate plan and horizontally with each other. These strategies encompass the goals and plans that pertain to broader organizational issues, such as the efficiency of organizations, as well as more specialized aspects of people management, including resourcing, professional growth, reward systems, and interpersonal relationships. SHRM places emphasis on the implementation of specific actions that serve to distinguish the organization from its competitors. Strategic HRM places significant emphasis on the implementation of strategic change and the development of the organization's skill set, with the goal of enabling the organization to effectively compete in the future (Holbeche, 2004). The topic of HR strategy diverges from conventional HR management research in two significant ways. Firstly, it is important to note that the SHRM places emphasis on the performance of organizations, rather than solely focusing on individual performance. Additionally, it highlights the significance of HR management systems as remedies for business challenges, encompassing both positive and negative synergies rather than focusing solely on individual HR operations in isolation. However, the concept of strategy goes beyond merely focusing on systems or financial performance. The concept of strategy revolves around the development of a durable competitive advantage, which subsequently leads to financial performance that surpasses the average. The most basic representation of the SHRM model illustrates the connection between a company’s HR infrastructure and its overall performance. The HR architecture encompasses various components such as systems, practices, competences, and staff efficiency behaviors that are indicative of the company's strategic growth of human capital and maintenance. The HR architecture’s correlation with above-average business performance can be attributed to the quasi-rents connected with this strategic resource. The function of HRM within technology organizations has seen significant transformations over the course of time. HRM has evolved from its predecessor, personnel management, with the aim
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39 of addressing a wide array of employee-related issues and establishing comprehensive employment regulations. The incorporation of ideas from human interactions and human resources schools of thought has been observed in the field of HRM. This integration aims to foster fair and compassionate relations between organizations and employees, thereby mitigating the organization-centric hiring procedures and vantage points that arise from scientific management and managerial theory. Over the past few decades, the field of HRM has undergone multiple shifts in its primary focus. Most recently, there has been a transition from prioritizing organizational efficiency and streamlining operations through business process reengineering to emphasizing the creation of value for the organization through the implementation of strategic HRM practices. The structure and function of HRM are influenced by broader patterns observed in organizations, tactics, and management philosophies rather than being the driving force behind them (Mendenhall et al., 2003). The fields of HRM and strategic human resource management, like other disciplines within the field of management, predominantly adopt a positivist and managerial perspective (Harley, Hardy & Alvesson, 2004). Consequently, it has undergone transformations in response to evolving assumptions about employment and management at both the organizational and social levels. At the organizational level, it has been observed that there is an increasing emphasis on the assumption that human resource management practices would directly contribute to enhancing organizational performance. There have been notable transformations at the societal level concerning the determination of pay and working conditions, the execution of essential human resource management activities, including selection, and the representation and protection of workers. Numerous societal-level transformations have been instigated by legal and regulatory modifications, while others have been prompted by evolving stakeholder expectations pertaining to ethical employment practices. The present work utilizes a blend of theoretical deduction and empirical investigation. The research on the impact of SHRM and planning on organizational performance in the technology industry in the United Kingdom demonstrates a degree of success in both theoretical and practical domains; however, it is not without its limitations. This study only employs the questionnaire method as the primary means of gathering sample data, hence relying on a particular data source. To enhance the accuracy of data, future research endeavors may consider
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40 employing a combination of experimental, interview, and other methodological approaches, along with the utilization of interviews. Additionally, the study’s data came from employee self- reported information. It is important to note that no consideration was given to temporal variations throughout the completion of the questionnaires by the participants. The findings, which fell within an acceptable range, indicate that common-method bias was not eliminated. To mitigate prevalent technique bias, future research endeavors may use strategies such as procuring objective data directly from organizations or refining the study’s design. This study exclusively examined the mediator factor of self-efficacy. 5.2 Conclusion Conclusively, performance management is a methodical approach aimed at improving organizational performance through the development of individual performance (Delery & Roumpi, 2017). Strategic human resource management serves as a mechanism for businesses to enhance their outcomes by fostering mutual comprehension and efficient performance management within a predetermined framework of strategic objectives and established competency criteria. Previous research has elucidated the importance of human resource management within technology businesses since effective management of human resources is known to boost the attainment of an organization’s goals and objectives. Numerous studies have elucidated the substantial influence of strategic human resource management on organizational success. Richard and Johnson (2020) argue that the technology industry can achieve improved performance through the implementation of certain tactics in human resource management. The management and planning of strategic human resources have had a transformative impact on organizational performance, particularly in the technology industry, enabling businesses to achieve their predetermined objectives. Moreover, the implementation of strategic human resource management has enabled firms to maintain a competitive edge over their counterparts. Hence, strategic human resource management assumes a critical role as an essential tool for organizational development. Strategic human resource management continues to be an essential element in optimizing employee motivation and the overall accomplishments of a firm. The enhancement of strategic human resource management objectives can be achieved by optimizing organizational operational endeavors. The effectiveness of human resource management is
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41 crucial in ensuring the alignment of all aspects of an organization, enabling them to carry out their respective jobs efficiently. The fundamental purpose of SHRM and planning stays consistent in technology organizations, irrespective of the extent of implementation. Hence, it is imperative for enterprises to ensure the effective integration of human resource management activities with the organization’s vision and missions, given the significance of Strategic Human Resource Management. By implementing this approach, the organization’s human resources department will ensure that all elements of organizational performance are closely linked to human resource practices. Previous research has elucidated the significance of human resource management within organizational contexts, since it has been established that effective human resource management practices play a pivotal role in enabling the achievement of an organization’s goals and objectives. Numerous studies have indicated that strategic human resource management and planning exerts a significant influence on organizational performance in the technology sector in the UK. The conventional perception of expenses associated with the development of an HR strategy as operating costs should be reconsidered in favor of recognizing them as investments in capital assets. Academic research has consistently demonstrated that human resources are a significant driver of long-term competitive advantage, which supports this viewpoint. The resource-based view posits that investments in firm-specific assets contribute to business competitiveness. Evidence supporting this viewpoint shows a strong correlation between an organization’s performance and the human resources department’s efficient management of its workforce. It is important to keep in mind that organizational success can be influenced by several factors beyond HR practices. While existing research generally demonstrates positive statistical associations between the heightened implementation of HR policies and company performance, it is crucial to acknowledge the potential impact of external variables. Moreover, it is possible that there are complex interrelationships between the various resources of the organization and its human resources protocols. The causal relationship between HR and organizational performance suggests that HR managers possess the ability to develop programs that enhance operational outcomes and elevate overall organizational performance. The primary objectives of HR
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42 management should encompass comprehending organizational performance processes and formulating HR policies that impact both process and outcome aspects. 5.2.1 Recommendations It is recommended that the company adopt effective techniques for the recruitment process. The selection of employees should be predicated upon their experience and qualifications. The recruitment procedure should encompass the organizational objectives and the requisite goals. It is recommended that technology organizations provide frequent training for its staff. The firms should consider implementing in-house training programs for their personnel, which should be scheduled and conducted as necessary. It is recommended that a training workshop be organized, accompanied by the development of a calendar that outlines the schedule for training sessions. The tech firms should consider adopting contemporary technology to enhance its overall performance. The use of human resource management within the firm will prove beneficial in effectively monitoring the work performance of all employees. The scope of this study was restricted to examining the effects of SHRM and planning on the performance of the technology industry in the United Kingdom. Additional research should be conducted on the same subject matter, with a focus on a broader demographic. It is recommended that the study be conducted at several other businesses. Future studies should also consider investigating additional mediating variables that are linked to the relationship between strategic human resource management and planning on organizational performance. This exploration should be conducted from many angles to further the understanding of the underlying mechanisms that drive the impacts of strategic HRM on organizational performance.
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