Impact of Strategic Human Resource Management on Organizational Performance of the Cable Industry in Sri Lanka

Abstract

The financial year of 2017 and 2018 marked drastic changes to the cable industry in Sri Lanka due to unexpected and unfavorable economic and external trends. As a result, the cable industry underwent a huge transition in terms of diminishing profits, losing the existing competitive edge and facing difficulties in sustaining in the market. Therefore, as a long term solution, the cable industry shifted their management focus from managing imitable resources to managing people for better results for their long term sustainability. Hence this research is an attempt to explore the impact of Strategic Human Resource Management (SHRM) on Organizational Performance of the Cable Industry in Sri Lanka and the mediating role played by Organizational Climate. Accordingly, three variables were conceptualized; Strategic Human Resource Management as the independent variable; organizational performance as the dependent variable; and organizational climate as the mediating variable. For the purpose of the study 126 respondents of the managerial staff of the cable industry was selected using systematic random sampling to obtain their views. Questionnaires were distributed to the respondents personally via email and data were collected which were analyzed using inferential and descriptive statistics. The research findings revealed that there is a positive linear relationship between SHRM and organizational performance, SHRM and organizational climate and organizational climate and organizational performance and that there is a mediating effect of organizational climate on the relationship between SHRM and organizational performance.