Relationships between Human Resource Manager-related Factors and Practice of Strategic Human Resource Management in Sri Lankan Listed Firms

Abstract

The objectives of this research paper were to investigate whether competency, education, experience, age and hierarchical level of human resource manager of the listed firms relate to the practice of SHRM of those firms; and to investigate whether these factors have a significant joint impact on the practice of SHRM of listed companies in Sri Lanka. A research framework consisting of five independent variables and one dependent variable was developed and six hypotheses were formulated using deductive approach. The study was conducted relating to all Sri Lankan listed firms numbering 242. Purpose of the study, type of investigation, extent of researcher interference with the study, study setting, unit of analysis and time horizon were hypotheses testing, noncausal, minimal, noncontrived, individual and cross-sectional respectively. Measures of the study had possessed sufficient validity and reliability. The structured questionnaire was administered to cover all the firms and head of human resource department worked as the respondents on behalf of the firms. 161 human resource heads responded making a response rate of 66.52 per cent. Data exploration ensured the normality and linearity assumptions being not violated. The results of the study showed significant and positive relationships between the independent variables, i.e., competence, education, experience, and hierarchical level of human resource managers and the dependent variable, i.e., practice of SHRM. However, no significant relationship was found between age of human resource manager and practice of SHRM. Multivariate analysis revealed that combined influence of competency, education, experience, age, and hierarchical level of human resource manager on the perceived practice of SHRM within a firm was significant. Findings of the study will be important on practical grounds. Important implications of the findings of the study are that a firm should hire and retain a person as the Head of HRM who should possess a high competence of HRM, higher formal education of HRM, and more experience in HRM in order to establish a serious practice of SHRM, and also the Head of HRM is to be appointed as a member of the Top Management of the firm.