The Effect of Strategic Human Resource Management on Organizational Performance: The Mediating Role of High-Performance Human Resource Practices

This study investigates the impact of a strategic role for human resource management (HRM) on organizational financial performance. Survey data from 118 financial and manufacturing organizations in Jordan is analyzed to investigate a moderated mediated pathway between a strategic role for HRM and organizational financial performance. The first finding, that high-performance human resource practices (HPHRPs) mediate the relationship between the HR strategic role and performance, suggests that the position of the HR professional as a strategic partner enhances the legitimacy of HR initiatives, as well as facilitating the resourcing and support for their implementation. The second finding, that line management devolvement moderates the relationship between the HR strategic role and HPHRPs, suggests a trade-off between a strategic and operational focus for HR professionals, and also indicates the value of embedding HR practice execution in operational administration. © 2013 Wiley Periodicals, Inc.