Journal of Global Economics

Relationship between SHRM and Organizational Performance among Iraqi Oil Companies

Abstract

Ali Kadhim Alaraqi

Strategic human resource management (SHRM) plays a vital role to organizations success and performance. People become an essential element to organizations development. Although, extensive literature is available on the SHRM effectiveness, it is still unclear what SHRM practices can be linked with organizational performance. Thus, to fill this gap, this study aims to examine the relationship between SHRM practices and organizational performance in Iraqi oil sector. The study used a random sample of Iraqi oil sector (eight companies represents various streams). Fifteen of Iraqi’s oil industry companies are owned by the public sector representing a stratified sample, with unit of analysis representing managers and heads departments. Quantitative method (questionnaire) and structural equation modelling are utilized. Total 366 questionnaires were distributed equally to companies within the sample chosen. After initial data screening, 301 responses were used for the final data analysis using Structural Equation Modelling (SEM). Results indicated that SHRM practices (recruitment and selection, training and development and compensation and rewards) are directly linked with organizational performance. The study findings are useful for Iraqi oil sector in order to enhance their organizational performance through using of appropriate SHRM practices.