MBA Final Project Assignment

Research for Strategic Development

THE IMPACT OF SHRM ON THE

PERFORMANCE OF THE
ORGANIZATION

Student Name:

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Supervision:

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 Table of Contents
1. Task (1): Research Proposal..................................................................................................2
1.1. Introduction.......................................................................................................................2
1.2. Research problem..............................................................................................................2
1.3. Research Aim....................................................................................................................3
1.4. Research scope..................................................................................................................3
1.5. Research Objectives..........................................................................................................3
1.6. Success Criteria.................................................................................................................3
1.7. Project Plan.......................................................................................................................4
1.8. Justification.......................................................................................................................4
2. Task (2): Research Methodologies........................................................................................5
2.1. Literature Review..............................................................................................................5
2.2. Research Methodology.....................................................................................................7
2.3. Justification of the Research Methodologies....................................................................8
3. Task (3): Research Findings..................................................................................................9
3.1. Purpose..............................................................................................................................9
3.2. Research Methodology.....................................................................................................9
3.3. Findings.............................................................................................................................9
3.4. Recommendations...........................................................................................................10
3.5. Conclusion......................................................................................................................10
3.6. Discussion on research findings......................................................................................11
3.5. Contribution to strategic business context......................................................................11
4. Task (4) Reflective Log.........................................................................................................12
4.1. Personal Skills.................................................................................................................12
4.2. Recommendations...........................................................................................................12
4.3. Plan to improve your research skills...............................................................................13
4.4. The impact on your progress...........................................................................................14
5. References.............................................................................................................................15
 1. Task (1): Research Proposal

1.1. Introduction
Arranging a relevant and intriguing study topic is likely the most time-consuming and difficult
component of creating a proposal. In the process of preparing a proposal, it is essential to
establish focus and clarity. In addition, the proposal development process is often nonlinear, with
each step proceeding logically.

Human resources is the most important part of a company's success. Human resources are
increasingly acknowledged as a key competitive advantage for contemporary firms (Belenzon &
Tsolmon, 2016; Carré et al., 2010; Albrecht et al., 2015). Employees remain the most valuable
asset for achieving a competitive advantage. However, they are the most difficult asset to manage
for any business (Ayanda & Sani, 2011). Thus, effective human resource management demands
the concurrent use of different HR systems by businesses (Lepak et al., 2006). Strategic
management is the process of establishing plans to ensure that an organization's activities are
aligned with its objectives (Wheelen et al., 2018). Strategic management is essential to a
company's growth since it identifies its strengths and shortcomings (Noe et al., 2017).

Strategic Human Resource Management represents a paradigm shift in human resource

management. SHRM's raison d'être revolves around human resource management (HRM)
methods and practices. It focuses mostly on using HR to create a competitive edge.
Implementing efficient HR policies and processes can enhance organizational performance in a
variety of ways. Highly competent individuals supply the organization with superior output.
Consequently, the company's financial performance increases, giving it a market advantage. This
shows that HRM practices have a direct impact on the success of a company.

1.2. Research problem

Implementing HR strategies is not simple. They must first be "translated" from abstract concepts
into tangible programs with clearly defined objectives and outcomes. It is still difficult to
complete because of all the other obstacles. These obstacles can develop when practical
implementation difficulties are not given sufficient consideration. This is a situation where the
accountability and supporting processes of a line manager are crucial. To overcome these
difficulties, it is essential to clearly outline the strategy, ensure that it has support, identify the
impediments, create action plans, etc.

From above discussion we can formulate the research questions:

1. What is the role of human resource strategic management as a competitive edge in the
organisation?
2. What are the challenges of implementing SHRM?
3. What are the solutions for overcoming the HRM challenges affecting organizational
effectiveness?

1.3. Research Aim

The main goal is to explain SHRM and how it affects the performance of the organization.

1.4. Research scope

The study examines the significance, practice, and problems of SHRM methodologies, as well as
their organizational influence. SHRM is a recent phenomenon in human resource management.
SHRM is concerned with the influence of HRM systems on business performance, with a
particular focus on the alignment of human resources for competitive advantage. Organizations
are recognizing the plethora of ways that excellent HR policies and initiatives may increase
productivity, quality, and financial success.

1.5. Research Objectives

The objectives describe the practical activities and tasks that will be undertaken to determine the
outcomes and impact of the established goals.

 To determine the significance of HRM in the organization.

 To clarify the role of SHRM as a competitive edge in the organization.

 To identify the challenges facing the implementation of SHRM.

 To make recommendations for overcoming the HRM challenges.

1.6. Success Criteria

Evaluation of the success criteria are as the following:

 How well does the proposal situate the intended subject?

  Are the objectives of the topic clearly stated in the proposal?

 Is the methodology (design, participants, instruments, and processes) adequately defined

in the proposal?

 Are the research questions expressed succinctly?

 Is the budget reasonably priced?

1.7. Project Plan

Week/ 1-2 3-4 5-6 7-8 9-10
Choosing the title of the project 
Research questions, aims, and objectives 
The literature review 
Methodology and discussion 
Conclusion

and recommendations

1.8. Justification
SHRM solves corporate problems and advances long-term goals. SHRM aims to boost
organizational performance while fostering an innovative, competitive culture. It goes beyond
HR and spans the organization (Kramar, 2014). If a company's HR strategy is tied to its overall
business plan, it can better foresee and respond to consumer desires and maintain a competitive
edge. Corporate strategy is successfully implemented by extensive study, planning, and
development of worker culture, habits, and skills (Laukkanen et al., 2013).

Strategic HRM can impact a company's bottom line when applied correctly. Multiple ways, the
corporation wins. It can help identify and evaluate internal and external threats and opportunities.
Vision and plan clarity are further benefits. The recruiting process is greatly affected by the need
to place the proper people in influential jobs so they can maximize their potential.

Business planning and HR management require transparency and openness. When employees are
involved in the company's business strategy, they gain trust and respect for management (Men et
al., 2014). Open communication helps employees understand the company's objective and vision.
The right approach helps retain and grow competent workers.
 2. Task (2): Research Methodologies

2.1. Literature Review

2.1.1. Strategic Human Resource Management

HRM is a management function in any organization, says Batti (2014). They're the company's
most important asset. HRM helps firms find, choose, and develop employees.

SHRM defines HRM as "the sequence of structured human resource deployments and activities"
(Pinnamaneni & Findley, 2015). This means SHRM has four parts. It stresses human resources as
a competitive advantage. Second, activities focus human resource programs, policies, and
practices that enable a corporation manage its people for a competitive edge. Pattern and plan
represent the strategy's objective and technique, a consistent alignment or design that fits. This fit
could be vertical (alignment with the organization's plan) or horizontal, according to the authors
(alignment of all HR activities). Fourth, this description includes people, procedures, and
planned patterns for goal achievement.

SHRM is a company's efforts to align its people policies and practices with its business strategy
(Boxall & Purcell, 2011). SHRM's expanding popularity shows the importance of HR to
organizational success. In many organizations, SHRM's usefulness remains uncertain. SHRM
focuses on integration and adaptation, according to Lengnick-Hall et al. (2009). It aims to: 1)
HRM is tied to the organization's strategy and needs. 2) HR policy domains and hierarchies are
congruent 3) Line managers and workers apply HR practices in their daily job.

2.1.2. Strategic Management of HR as a Competitive Edge

Human capital is today's most valuable asset. Employees may make or break a firm in today's
competitive economy (Polychroniou & Giannikos, 2009). Human capital quality is the only
source of long-term competitive advantage, say HR specialists. Capacity to attract, develop, and
retain qualified personnel is key to business success. An eager, dedicated, and well-paid
workforce boosts production. People are a company's most valuable and difficult to control
resource, according to Trivellas & Reklitis (2014). Human capital offers the vision, defines the
scope of activities, guides work tasks, sets goals, develops strategic plans, and implements them
using business principles.
Human capital is vital to a company's competitiveness because of staff talents such high
productivity, adaptability, creativity, and customer service. HRM policies, procedures, and
strategies combine individuals, abilities, styles, processes, and business culture (Dargenidou &
Trivellas, 2008; Trivellas & Drimoussis, 2013). Good human capital management makes it
harder for competitors to copy competitive advantages. Companies striving to generate
innovative products and services rely largely on their employees' competencies and performance,
according to surveys. (Trivellas & Santouridis, 2009).

2.1.3. The Effect of SHRM on the Organization Performance

Academics and professionals have emphasized the relevance of competitive human resources
strategy. The reliance on HR to boost organizational performance and competitiveness has grown
since they can't be reproduced or mimicked and because they respond effectively and quickly to
market needs. Human capital, core competences, intellectual capital, organizational capabilities,
high-performance work systems, process management, value-based teams, and high-performance
teams confirm HRM's organizational performance contribution (Altarawneh, 2016).

HR focuses on boosting organizational effectiveness since it's tough for competitors to duplicate
and because it's an effective and timely response to market needs (Joyce & Slocum, 2012).
Academics say HRM concerns like "core competency, intellectual capital, organizational
capability, high-performance work systems, process management, value-based teams, and high
performing teams" are vital to organizational performance.

According to Waiganjo et al. (2012), high-performance HRM work practices can boost employee
skills, knowledge, and capacities. It boosts staff excitement, reduces shrinkage, enhances quality
retention, and encourages non-performers to leave. Effective HRM practices that harness
complementarities or synergies while implementing the organization's competitive strategy are
sources of sustained competitive advantage. (Paauwe & Boon, 2008).

2.1.5. Challenges of Implementing SHRM

Despite statistics showing SHRM's usefulness, what's advised and what's done differ. SHRM
isn't frequently used, according to Burke & Cooper (2006). Pynes (2008) notes that many public
organizations are unwilling to expand personnel spending due to strategic HR costs. SHRM
implementation fails often. Other reasons include management's misunderstanding of SHRM,
despite their desire for greater integration of human resource functions with various
organizational strategies, and Human Resource Professionals' lack of flexibility in initiating new
programs or restructuring organizational structures, especially when change issues conflict with
existing rules and regulations in standard operating procedures.

Many organizations fail to implement HRM and systems that improve performance or company
financial performance for a variety of reasons, including managers' distrust of high-performance
work systems, the causality of study findings, and HRM competency and complexity
(Armstrong, 2020). Experts should employ current findings and methods to increase workplace
productivity. Strategic HRM encompasses long-term planning and intervention techniques,
according to Tiwari & Saxena (2012).

2.2. Research Methodology

2.2.1. Secondary Sources

The secondary data enables the researcher to define and better appreciate the subject of study and
broadens the body of knowledge on the issues under investigation. In addition, it gives a solid
foundation for continuing the research and identifies relevant research methods.

The following are some of the most often used approaches for secondary research:

1. Information found on the internet: Using the internet to gather secondary data is a common
practice. Data is freely available online and may be retrieved with a single click.

2. Public libraries: Libraries are yet another excellent place to do data searches for your study.
The results of vital prior studies can be found in public libraries. You'll find a treasure trove of
valuable data and papers in these places

3. Educational Institutions: In secondary research, it is critical to collect data from educational

institutions. Universities and colleges, on the other hand, conduct more research than any other
enterprise.

2.2.2. Primary Sources

Primary information refers to the data obtained directly by the researcher in relation to the topic
under investigation. In both quantitative and qualitative techniques, primary data collection
methods must be known; nevertheless, the choice of method depends on the objective of the
study, the availability of resources, and the skill of the researchers.

The following are some of the most common data collection techniques by organizations:

1. Interviews: Using interviews to collect data has been around for a long time. Face-to-face or
phone interviews are also acceptable methods of conducting these investigations.

2. Online surveys: For the most part, researchers collect data from participants by sending out
online surveys. Online surveys are simple to use and can be distributed through email or
completed directly on the survey's website. (Hair et al., 2019).

3. Focus groups: To gather information from a small number of people, this popular research
method is employed frequently. Those who are knowledgeable about the topic issue are gathered
in a focus group.

4. Observations: In this primary research method, there is no direct relationship between the
researcher and the person/consumer being observed. The reactions of a subject are observed and
recorded by a researcher.

2.3. Justification of the Research Methodologies

The rationale for selecting primary research (Goundar, 2012): All information is gathered
directly from the source, which is a significant advantage. There is no manipulation of the facts.
It is also feasible to tailor the research methodology to the specific needs of businesses or
organizations. Focusing on the subject at hand, primary research seeks potential solutions to a
specific topic. It is feasible to investigate all possible outcomes for a given situation through
primary research. It is vital to have control over gathered data. There are numerous benefits to
performing primary research, including the management of data collection and utilization. It is
up to firms or organizations that collect data to determine the most effective way to use the data
in order to derive valuable research insights. Due to the extensive history of primary research,
you may rely on the findings. Questionnaires are chosen because they are a low-cost, quick, and
efficient tool for collecting large quantities of data from a large sample of individuals. Due to the
fact that the researcher is not necessary to be present during the completion of the questionnaires,
data collection can be completed relatively quickly. (Gillham, 2008).
 3. Task (3): Research Findings

3.1. Purpose
The primary objective is to ascertain whether the implementation of SHRM has an effect on
organizational performance. The decision to target all Saudi Arabian banks was decided since the
private sector is the most promising business in Saudi Arabia. They are well-known as private
companies that invest more in human resource management activities and programs.

3.2. Research Methodology

The decision was made to use the self-administered questionnaire as a data collection approach
in accordance with the study's adopted design in order to answer the research questions and
achieve the objectives. Prior research in the topic informed the development of the study's
questionnaire questions.

 Study Design: Through using a quantitative method to decide whether SHRM adoption
impacts the organization's performance banking sector in Saudi Arabia.

 Data Collection: In this study, a self-administered, standardized questionnaire was

employed as the data gathering instrument. It will permit a greater number of prospective
responders, eliminate any personal bias throughout the questionnaire, and provide equal
opportunity to respond to the questions under comparable settings.

 Population and Sample Size : The sample population is 50 managers from various
Private organizations in Saudi Arabia.

 Sampling: The participants in this study are chosen randomly to form the study's sample.

3.3. Findings
The findings of the study indicate that the targeted banks utilize a (SHRM) method to manage
their because they have long-term strategies, written plans and policies, and human resource
management managers who attend senior management meetings. Principal (HRM) operations
and activities of the targeted banks include training, initial testing, remuneration, and benefits.
Notably, (SHRM) has a positive effect on organizational performance, as seen by higher
profitability, sales ratios, job happiness, and employee loyalty. The following were the greatest
obstacles to the successful deployment of (SHRM): The budget for (HR) operations is
constrained, and executive and (HR) management lack collaboration and coordination.

3.4. Recommendations
According to research, enhanced managerial support is required to ensure that recommendations
are brought to the board of directors in a timely way for consideration. The environment is
changing, and delays might result in projects being obsolete before they are properly adopted
inside the firm. Despite the fact that money has already been committed, it is very advantageous
to invest in programs that educate management and staff on the requirement of strategic human
resource management.

To gain the essential buy-in to assure the success of these plans, the company must include its
employees in brand-new endeavors. To do so successfully, the business needs a communication
plan that educates employees about issues that affect them within the organization. Additionally,
management should examine how to systematize the implementation process. While anarchic
creativity is tolerated during the planning phase, only methodical execution will result in a
successful implementation.

3.5. Conclusion
The conclusion of the article should demonstrate the significance of the study to the reader.
Rather of summarizing the concepts or restating the study topic, a conclusion should summarize
the most significant elements.

Covering all areas of SHRM, HRM activities, HRM effectiveness, and HRM's key issues and
problems, the current study has broad implications for HR and other management practitioners as
well as HRM professionals. This research has provided valuable insight into the fundamental
features and factors that contribute to SHRM success. It helps to identify the factors that may
hamper the success of HRM in order to find solutions to these challenges and hurdles. This
research's academic contributions are recognized as a crucial empirical study that addresses
themes that must be addressed in order to effectively manage HRM activities and programs.
Consequently, it promotes and develops HRM, SHRM, and the HRM-performance relationship
in Saudi Arabia, thereby enhancing and filling gaps in the Arab HRM literature.
 3.6. Discussion on research findings
The following are the main points on how to discuss the research findings:

1. Establish context and illustrate why readers should care: The discussion should begin
with a brief, one-paragraph summary of the study's key results, and then proceed to
contextualize the findings.
2. Exaggeration is one of the most frequent errors made by students when arguing a topic. It
is fine to hypothesize so long as you don't wander too far from the facts and don't get
carried away with your guesses.
3. In addition to identifying the limits of the work, it is vital to suggest future research..

3.5. Contribution to strategic business context

As seen by greater profitability, sales ratios, work happiness, and employee loyalty, the results
demonstrate that (SHRM) has a positive influence on organizational performance. The
integration of HR and business strategy is one of SHRM's most critical requirements in the
contemporary day. The management and academic literature concur that smart personnel
deployment and management may contribute to the performance and longevity of an
organization. Some argue that a company's human capital is the cornerstone of its competitive
advantage (Greer, 2021). According to this theory, the most important asset of a corporation is its
human capital. In addition to the inherent value of human resources, it is essential that human
resource management be fully aligned with the overall management of the organization and its
strategic initiatives.
 4. Task (4) Reflective Log

4.1. Personal Skills

Without feedback, the cyclical process of learning and assessment is insufficient. Regular and
consistent feedback is an essential element in accelerating the learning progression of
researchers. It entails distributing information on a variety of understanding and performance-
related factors. This information may be offered by practitioners, peers, the individual, as well as
by learners to practitioners. For feedback to be successful, it must be constructive (helpful). For
feedback to be constructive, the learner must be able to take action based on it. During the
feedback process, there should be an opportunity for the learner to reflect on performance and
learning.

These are the techniques I may use to evaluate my personal development plan progress. I will
continue to work on planning and improvement tracking programs. I must arrange and manage
my time to attain my stated objectives and ambitions. I will shift my emphasis to achieving my
progress tracking and analysis objectives. I will be honest with myself to determine how far I
have advanced, how much work remains, and how effective my efforts have been.

Using my growth plan's results to evaluate my progress will help me to assess whether or not I
am on track. In addition, I must check that my intended personal development approach and
comments have not hindered my progress.

4.2. Recommendations
Improved research demands a well-planned schedule and a thorough framework, as well as an
independent inquiry and the creation of a study statement, reputable citations, and objective
arguments. A well-organized structure and exhaustive editing are also required to ensure that the
report is grammatically correct and contains pertinent references such as figures and tables.

Here are a few tips to help me perform qualitative research more effectively:

• Develop a schedule. To fulfill deadlines and generate a high-quality research report, a

strategy is required. Establish a deadline for each project part and break the work into
manageable portions. The duration of the first phase may be one week, while the duration
 of the second phase could be two and a half weeks. Nonetheless, I've discovered that
setting deadlines is more effective.
• Information organization The more progress I make, the more important it is to arrange
my data to guarantee that each piece of information I acquire is distinct and significant.
• Utilize emerging technology. Tens of thousands of scientists and researchers rely on
cutting-edge technology for their productivity and satisfaction. There are several
locations where well-organized catalogues of certain books may be found.
• Put it in writing. Ideas arise spontaneously. While studying, I must have a notepad and a
pen with me. I was occasionally able to draw ideas from unanticipated sources.

4.3. Plan to improve your research skills

The following are steps of the plan that assist in improving my abilities:

 Start with a basic overview and then get into the specifics. When conducting research, it
can be difficult to know where to begin; thus, a simple Internet search might be an ideal
starting point.
 Learn how to distinguish between credible and unreliable sources. Consequently, it is
crucial to recognize which sources are credible and which are not. You will need to utilize
your analytical and critical thinking skills while evaluating a reliable source.
 Obtain information from many sources and confirm its accuracy. On the internet,
anybody may publish whatever they want, and many websites do not verify their
information for veracity. Consequently, several false or untrustworthy sources exist. The
most effective technique for combating this is to ensure that all of your research findings
can be corroborated by many sources.
 Be ready for unexpected responses. Good research is all about finding answers to your
research questions, not necessarily confirming what you already believe to be true about
the topic. You cannot have a comprehensive understanding of the topic if you are simply
concerned in confirming that you are on the correct path. Be sure to have an open mind
when conducting research in order to learn as much as possible.
 Maintain orderliness. Throughout the data collection process, you will meet a deluge of
material, ranging from web pages to PDFs to videos. You must retain this information in
 a systematic manner to avoid losing something or being unable to properly cite
something.
 Utilize library materials. Even if you are not a student performing academic or course-
related research, there are various resources accessible to assist you if you have further
research queries. In truth, high school and university libraries are accessible to the public
as well as staff and students performing research.

4.4. The impact on your progress

A skill enhancement strategy is required for conscious skill progress, and this plan is most
successful when it is related to my goals. Consequently, I must first establish my objectives and
then determine the skills necessary to attain them. By tying talent development to long-term
goals, I can ensure the presence of motivation and a desire to cultivate that specific potential.

 Why By organizing my data, I will have a better understanding of how to write a research
proposal that meets the standards of certain grant and funding agencies. Every research
grant has certain requirements and objectives that must be satisfied.

 Collecting information from a range of sources and confirming it will aid me in gaining a
deeper understanding of my issue and picking the most suitable one.

 By embracing emerging technologies and quickly having access to new information

sources, I will be able to better manage my time.
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