Relationship between Strategic Human Resource Management and Firm Performance of Kenya’s Corporate Organizations

Abstract

This paper examines the extent to which strategic human resource management influences firm performance from various critical perspectives. Rapid environmental changes, competition to provide innovative products and services, changing customer and investor demands and globalization have become the standard backdrop for firms. Sustained competitive advantage could be generated from a firm’s human capital by designing strategic human resource management to diagnose a firm’s strategic needs which is required to implement a competitive strategy and achieve operational goals. Effective human resource management strategy systematically organizes all individual human resource management measures to directly influence employee attitude and behavior in a way that leads business to achieve its competitive strategy. Finally, this article develops a conceptual framework that explains the relationship between strategic human resource management, competitive strategies and firm performance.