Theoretical Perspective for Strategic Human Resource Management and Organisational Effectiveness

This paper aims to present and analyse theories that explain the strategic nature of people management in both the private and public sector for organisational effectiveness. Management of people in organisations is a key area which helps achieve organisational effectiveness. Previous studies identified operational and financial factors as company sources of achieving organisational objectives. It is crucial in today’s organisations to consider people management matters for organisational effectiveness since employee skills, behaviour and loyalty cannot be easily imitated or substituted. Therefore, there is a need to take into consideration theories and frameworks that help provide an understanding of the effective management of people for competitive advantage. By using a library search and analysing previous literature on strategic people management and organisational effectiveness, this study proposed that there is a strong relationship between people management and corporate strategy, and objectives. The theoretical framework and critical discussion presented in this paper strengthen the body of knowledge on the relationship between employee management and corporate objectives which result in organisational effectiveness and competitive advantage.