Strategic Human Resource Management and Firm Performance: Mediating Role of Transformational Leadership
Published: 2013
Author(s) Name: Surabhi Loshali, Venkat R Krishnan |
Author(s) Affiliation: 1-Hewitt Associates, New York, United States; 2-Great Lakes Institute of Management, Chennai, India
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Abstract
Relationships between transformational leadership, Strategic Human Resource (HR) practices, and firm performance were
studied using a sample of 121 managers from different organizations in India. Transformational leadership was measured by requesting
respondents to judge how frequently each of the 20 statements fitted the CEO or the head of the organization. Strategic HR was measured
by requesting respondents to indicate their opinions and feelings on the extent to which their organization was characterized by each of the
18 items listed. Firm performance was measured through six parameters—market share growth, sales growth, return on investment, return
on assets, return on sales, overall performance—as perceived by the respondent. The score on each performance parameter was recorded
in comparison to the major competitors of the organization during the previous year. Results show that strategic HR partially mediates the
relationship between transformational leadership and performance.
Keywords: Strategic Human Resource Management, Firm Performance, Transformational Leadership
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