The effect of SHRM practices on perceived firm financial performance: Some initial evidence from Australia

Abstract

Since its emergence, strategic human resource management (SHRM) has been the focus of debate over whether it exists in reality or is merely rhetoric. SHRM is often measured by the integration of the HR function in the strategic management process, the devolvement of HR practices to line managers, and the influence of these practices on firm performance. Our survey research findings indicate that strategic integration and devolvement of HRM were practised to a moderate extent in the firms sampled, and the degree of alignment of HRM with business objectives and strategies had a positive relationship with perceived firm financial performance.

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