Studying the Impact of Strategic Human Resource Management on Financial Performance of Companies Listed on Tehran Stock Exchange

Abstract

Within the challenging environment of the new millennium and competition among organizations and companies, one of the factors enhancing success for organizations is to focus on strategic human resource management. Control of resources (such as physical resources, organizational, information and human), confers organizations with competitive advantage. Meanwhile, because of limited human resource and information resources due to its importance in decision making, they are more important. Strategic human resource management outcomes have been reviewed and evaluated in several studies all around the world. Depth of implementation of strategic human resource management leads to productivity and performance of organizations. The purpose of this paper is to investigate the relationship between strategic human resource management and the financial performance of companies in Tehran Stock Exchange. It deals with the issue that is there any relationship between the methods used in human resource management and organizational performance? For data analysis, descriptive statistics (survey), inferential methods along with SPSS software were employed. The methodology used in this research is descriptive one and the results show that those organizations which have used a strategy for human resource consistent with their competitive strategy (product innovation/facilitation, cost/benefit) show distinct performance than companies that have not adopted this policy.

Keywords

• Strategic human resource management
• competitive advantage
• Financial performance