Research Framework
Practice of SHRM refers to human resource manager’s perceived
degree of application ofSHRM by the particular firm. It seems that there is
diversity in the literature over themeaning of “Strategic Human Resource
Management Practice” (Boxall and Purcell,2000). According to Baker
(1999), SHRM Practice has number of key features includingthe internal
integration of personnel policies and their external integration with
overallstrategy and line management responsibility for HR implementation.
As per Wan andTung (2005) the practice of SHRM is the degree of
participation in core decision makingand partnership played by HRM
departments and the specificity and formality that HRMdepartments require
in planning and implementation, all of which are designed to ensurethat firm’
human capital contributes to achieving firm’s business goals. Khatri
(1999)defined the concept of practice of SHRM as managing the human
factor as a competitivetool. In general, the goal of strategic human resource
management is the effectiveapplication of human resources to meet
organizations’ strategic requirements andobjectives (Greer, 2003). Budhwar
(2000) has identified the main features of practice ofSHRM as the practices
of integration of HRM into the corporate strategy anddevolvement of
responsibility for HRM to line managers. Viewing from the above,SHRM is linking HRM with business needs. It is about integration. The
term‘integration’ stresses three major themes. The first is that HRM should
be fully integratedwith the strategy and the strategic needs of the
organization. The second theme is thecoherence of HRM policies within
themselves and with other areas of policy. Thirdtheme is the involvement of
line managers in managing people at work. For this researchpaper, following
working definition, adapting from Budhwar (2000) was used withregard to
the variable of the practice of SHRM: