Impact of Implementation of Strategic Human Resources Management on Firm Performance (With Special Reference to Finance Companies in Sri Lanka)

Abstract

In today's dynamic business environment, improving the firm performance has become a business asset and a competitive edge for various companies. In order to get that one of the major tools they use is Strategic Human Resources Management. This has become a common practice in finance companies as well. To improve firm performance and create firm competitive advantage, firm Human resources must focus on a new set of priorities. These new priorities are more business and strategic oriented and less oriented towards traditional Human resources functions such as staffing, training, appraisal and compensation. Strategic priorities include team-based job designs, flexible workforces, quality improvement practices, employee empowerment and incentive compensation. (Huselid dal., 1997). This study focused on SHRM (strategic human resources management) implementation of finance companies in Sri Lanka.