The impact of Strategic Human Resources Management (SHRM) on Employee’s Performance and Job Satisfaction level

Introduction

Many of today’s businesses worldwide consider SHRM to be part of their global strategy. In other words, it is very important for these firms to manage people as assets and not as costs by focusing on differentiating the strategy of SHRM from the strategy of managing personnel. In the educational field, it is observed that educational institutions do not consider SHRM as important as other strategies. In other words, they do not have a clear approach concerning SHRM; high school managers consider that the strategy of learning is the core of the educational process. The researcher works in one of Lebanon’s largest educational institutions, and it is observed that SHRM is regarded as very important in terms of its concept. Yet, the practices applied do not take the impact of SHRM on the employees’ job performance into consideration. These educational institutions primarily focus on achieving a higher percentage of success in the official exams and a good reputation that can help them realize a competitive advantage. In addition, no studies examined the subject in the context of institutional education in the Lebanese context. According to this subject, the research problem is the « lack of comprehension of how HR managers use SHRM practices in the private high schools in Lebanon to improve job performance and job satisfaction. »

The research intends to examine the impact of strategic human resource management (SHRM) practices on employees’ job performance and job satisfaction in Lebanese educational institutions in the private sector. Therefore, the study will answer the following questions:

-What is the direct impact of SHRM practices (staffing, training, and development, compensation, performance appraisal, talent management, motivation at work, and work climate) on employees’ job performance in private high schools in Lebanon?

-What is the direct impact of SHRM practices (staffing, training, and development, compensation, performance appraisal, talent management, motivation at work, and work climate) on job satisfaction in private high schools in Lebanon?

This study initially aimed to examine the impact of Strategic Human Resource Management (SHRM) practices on job performance, job satisfaction in Lebanese private sector educational institutions. However, due to the absence of a performance management framework like the balanced scorecard in these institutions, the direct relationship between SHRM and the mentioned variables could not be studied.

Despite contributing significantly to the existing literature, the study has limitations. The model did not predict a direct relationship between SHRM and the variables, suggesting the influence of multiple factors on job performance and satisfaction. Challenges were encountered during structured interviews with human resources managers, with some employees and managers refusing interviews due to time constraints, potentially limiting the depth of information obtained.

While surveys were distributed across various regions in Lebanon, the online survey helped overcome geographical limitations. However, caution is advised in generalizing the research model to public sector educational institutions in Lebanon and to other countries due to cultural, economic, and political differences.

The study emphasizes the time-consuming nature of interviews and the challenges faced, including privacy concerns leading to reluctance in sharing certain information. The researcher proposes developing a balanced scorecard framework with Business Intelligence software to align with contemporary Management Control research trends, aiming to enhance the performance of educational institutions.

Rehman et al. (2021) conducted a study in Hubei Province, China, using a self-administered questionnaire to investigate the relationship between resilient organizational behavior, resilient employee behavior, and strategic human resource management practices. Rodriguez and Walters (2017) discussed the importance of training and development programs and systematic methods for evaluating employee performance. Igalens and Roussel (2000) in their quantitative study investigated the impact of pay on work motivation and job satisfaction in France. Arif et al. (2019) also used a mixed design (interviews and questionnaires) to study the relationship between compensation, workplace discipline, and employee performance in the North Sumatra Province’s Office of Highways and Construction. Young et al. (2020) conducted a quantitative study that explored the connection between strategic human resource management, person-environment fit, and public service motivation in Korean non-profit organizations. Karvariti et al. (2022) conducted a quantitative (questionnaire) study in Bahrain’s public sector to investigate the mechanisms by which talent management practices influence individual talent performance. Zehir (2016) conducted a quantitative (questionnaire) study in Turkey and found that Entrepreneurial Orientation (EO) mediates the relationship between SHRM and financial performance, and partially mediates the relationship between SHRM and employee performance.

Crossman and Abou-Zaki (2003) studied the relationship between job satisfaction and job performance in Lebanon. They found that employees are more satisfied with co-workers and supervision but less satisfied with work itself, promotion and pay. Overall satisfaction is slightly related to demographic variables such as age, tenure, and education level. (1995), training and development have been argued to be a trade to minimize the rate of turnover and to maximize the degree of productivity. Anwar (2015) found that training and development affect employees’ productivity and job satisfaction in private banks in Erbil. Other studies have found that compensation, job promotion, and job happiness all have an impact on job satisfaction. Working conditions also have a significant impact on the job satisfaction level. The results indicated also that satisfaction in current jobs could be achieved through maintaining adequate staff levels in the organization. To sum up, it can be concluded from this study that equitable rewards systems are determinants of employee’s job satisfaction. Bahwna (2018) aimed to examine the connections between strategic human resource strategies like hiring and selecting employees, providing them with training and development, evaluating their performance, paying them appropriately, and measuring work satisfaction. The study was applied in India, the researcher considered the practices of human resource management as independent variables and the job satisfaction level as the dependent variable. The results showed that all undertaken variables have an impact on the job satisfaction level. Furthermore, this study indicated that other organizations in different sectors that exercise on the HRP need to understand which HRP influences job satisfaction.

Strategic Human Resources SHRM practices

The aim of SHRM practices is to attract, motivate and retain employees to ensure the survival of the organization. Many researchers attempted to investigate the importance of SHRM practices. Snell and Dean (1992) considered that SHRM practices such as performance appraisal, training and development are designed to increase the performance level and to motivate the employees to work better in order to increase the performance of the whole organization.

Staffing is not used to replace departing employees, but to increase the performance level.

Compensation is the monetary value given to the employees. There is a positive relationship between compensation and performance. Human Resource managers should create recruitment and retention strategies that balance competitive compensation and a workplace that promotes respect.  Compensation is divided into two types; financial compensation and non-financial compensation. Leibowitz (1986) developed career planning; he defined the concept of career planning as a “process that focuses on the employees’ motivation to reach both personal and organizational goals. According to Gardner (2011), career planning and development is a process that can be useful in identifying the employee’s skills, experience and assigning them tasks accordingly. Performance Appraisal (PA) can be defined as a systematic process to evaluate the performance of an employee in his tasks… According to Jordan (2009), performance appraisal is a process used to evaluate and support employees for their job performance… Performance appraisal is a process used to enhance the professional growth of any organization by pointing out the area of performance enhancement. Within a business, the three primary stages of an employee’s lifespan are talent management. The first stage is known as talent acquisition. The second stage is talent development, and the third is talent retention. The last stage is to encourage top performers to remain committed to the business. Employees who are inspired to work are more likely to be tenacious, inventive, and productive. The level of motivation at work directly affects how productive employees are. Employers must get to know their staff members well in order to encourage them. Work climate has been studied for more than 50 years. But the literature has grown disjointed and lost, says the author. Work climate affects the environment in a variety of ways, he says. The work climate is a key factor in workplace climate

Job performance

According to Shawn Smith et al. (2011), Performance management is a systematic approach to tracking individual performance against the targeted objectives of the organization and identifying strengths and opportunities for improvement. Another definition of performance management was developed by Armstrong (2006); he considered performance management as “the approximation of individual objectives of the employees with organizational objectives that employees support the culture of the organization.

Figure 1. The relationship between HRM and performance Source: Armstrong (2006, p. 75)

Job Satisfaction

Job Satisfaction can be defined as any combination of psychological and environmental circumstances that cause a person truthfully to say that he is satisfied with his job (Hoppock, 1935). Authors argue that there is no general agreement on what job satisfaction means. Hoppock (1935) defines job satisfaction as the extent to which people like their job. Vroom (1964) has defined job satisfaction level as an affective orientation to work roles. The purpose of the SHRM concept is to ensure that companies treat their employees in a proper way to obtain the greatest benefits, at the same time the employees obtain their material and psychological rewards. Business gives importance to SHRM and they work to make this department effective by ensuring that they recruit, train and develop good employees so they are able to work effectively and to realize satisfaction in their jobs. Job satisfaction level is affected by high levels of productivity and low rate of turnover, according to Hackman and Oldham (1975). Study of teachers in Hong Kong found that job satisfaction level affected by commitment level and productivity. Job satisfaction is a “positive, passionate reaction” to a job. The impact of human resource factors on employee’s job satisfaction level. Training and development are the most important practice that has a significant effect on job satisfaction. Korean companies’ main goal is to build an employee loyal and dedicated to the organization. Millennial generation is considered lazy and self-centered.

In this research, a positivist position was used because there is a kind of independence between the reality and the subject being studied, as well as the researcher seeks to find this reality and to explain it. In addition, a hypothetic-deductive methodology was applied by setting some hypotheses in order to be tested. In other words, the hypotheses that have been studied will be proved or disproved depending on the results of the study.

This study employs two research methods according to the purpose classification. The first one is the descriptive research method. Descriptive research is used to determine and describe attitudes, perceptions, and opinions of a defined group (Gay et al., 2009). Descriptive research is often referred to as survey research because surveys are regularly used to collect data from the study participants as well as to describe existing phenomena or the characteristics of a particular situation.  Consequently, to fulfill the purpose of this study, the researcher used a survey descriptive research design. The main purpose of most social sciences studies is to describe phenomena and events.

This study employs a correlational research design. It uses both qualitative and quantitative methods to study human resource management. The aim of the study is to gain an understanding of the importance of human resources. The research was conducted using an online survey technique. A study was conducted on 10 selected educational institutions in the Lebanese private sector. The survey received responses from just 414 participants. The researcher used the SRS method to select the target population of employees of the private educational sector in Lebanon. 500 responders from the chosen schools make up the study population

Multiple regression analyses have been used to analyze the results; multiple regression is statistical technique used for forming equations for linearly related variables. However, it has broadly been used to describe complex relationships in fields of social science, behavioral science, business, health and education (Cohen, Cohen,West, & Aiken, 2013)

To evaluate the model, predictive analysis was used, R² and Q2 were analyzed.

Data analysis Findings

Hypothesis 1: There is a positive significant relationship between SHRM as a set of practices and employees’ performance level.

Hypothesis 2: There is a positive significant relationship between SHRM as a set of practices and job satisfaction level.

From the results of Pearson correlation analysis, the researchers concluded that Pearson correlation coefficient of training and development variable reveals a high correlation with other variables, showing that the relationship with Job Performance variable is highly significant. (Correlation coefficient =0.875). In the second hand, the results showed that Pearson correlation coefficient of Work Climate variable shows a high correlation with other related variables. (Correlation coefficient =0.832). Moreover, the Pearson coefficient reveals a high correlation between the Performance Appraisal variable and other variables. (Correlation coefficient =0.752). Lastly, the Staffing variable shows a significant correlation with other variables. (Correlation coefficient =0.484). from the results mentioned above of Pearson correlation. Training and development have the highest value with 0.832. Which means that the relationship between training and job performance is highly significant.

Concerning the results of Pearson correlation (Model 2). In the Training variable, the Pearson correlation coefficient reveals a high correlation with other variables, showing that the relationship with the Job Satisfaction variable is highly significant. (Correlation coefficient =0.828). The Pearson correlation coefficient of the Talent Management variable shows a high correlation with other related variables. (Correlation coefficient =0.709). Moreover, the Pearson coefficient reveals a high correlation between the Compensation variable and other variables. (Correlation coefficient =0.728). Lastly, the Motivation variable shows a significant correlation with other variables. (Correlation coefficient =0.692). According to the results, training and development have the highest value with 0.828. Which means that the relationship between training and job satisfaction is highly significant.

Hypothesis 1 tests the relationship between practices of SHRM (independent variables), and the dependent variable (Job Performance). There are many independent variables and just one dependent variable that is why multiple linear regression is applied. Model one tested the relationship between four practices of SHRM (training, staffing, performance appraisal, and work climate) and the dependent variable performance level

The coefficient of determination or adjusted R² has a value of 0.889, which shows that the independent variables explain 88.9% of the variability of the dependent variable..

Results showed the four dependent variables: training, staffing, performance appraisal, and work climate are statistically and significantly predicting the dependent variable as sig=.000<.005, meaning that the variables a good fit with the general model with (F (4.409=824.208), p≤.001).

Y=0.136+0.410X1i+0.090X2i+0.174X3i+0.266X4i+∈i

The results showed that training (ß= 0.498, t=20.235, p=.000) staffing (ß= 0.090, t=4.921, p=.000), performance appraisal (ß= 0.237, t=10.374, p=.000), and work climate (ß= 0.279, t=10.541, p=.000) positively predict job performance level. (See table 4.33) it can be seen that all independent variables have significance<0.005, that does mean that the variables are a good fit for the general model. The higher the beta value shows, the more influential the independent variables are. The sign of the beta represents the strength of the relationship

From the results mentioned above, the model shows that the independent variable (training) has the highest influence on job performance followed by work climate, then performance appraisal, and finally staffing.

H1 is accepted with a significant positive relationship between SHRM practices and job performance.

Model two tested hypothesis number two, which shows if there is a significant relationship between SHRM practices and job satisfaction.

In the Model II, this study tests the relationship between Job satisfaction level (Y), and five independent variables: Compensation (X_1i), Training (X_2i), Talent Management (X_3i (, Work climate (X_4i), and motivation (X_5i

In this model, the practices of SHRM are tested to predict their relationship with Job Satisfaction level, in other words, to test if these practices have an impact on the job satisfaction level. It was hypothesized that compensation, training, talent management, work climate, and motivation will have a significant positive impact on the job satisfaction level. The hypothesis is that job satisfaction level can be predicted by the five presented factors. To test this hypothesis, a multiple linear regression analysis was used.

The results showed the independent variables statistically and significantly predict the dependent variable as sig=.000<.005, meaning that the variables are a good fit with the general model, (F (5.408=547.589), (See table 4.36).

The results showed that compensation (ß= 0.166, t=6.631, p=.000) training (ß= 0.372, t=14.05, p=.000), talent management (ß= 0.176, t=7.281, p=.000), work climate (ß= 0.124, t=5.055, p=.000) and motivation (ß= 0.292, t=11.056, p=.000), positively predict job satisfaction level. The higher the beta value shows, the more influential the independent variables are.

Y= 0.801+0.132X_1i+0.292X_2i+0.125X_3i+0.079X_4i+0.179X_{5i +} i

Where Y represents the dependent variable (Performance level), and X1, X2, X3, X4, and X5 represent the independent variables respectively as follows: Compensation, training, talent management, work climate, and motivation.

The results showed that there is a statistically significant relationship between SHRM practices and Job Satisfaction, the independent variable (training) has the highest influence on job satisfaction followed by motivation, then compensation, talent management and finally work climate.

H2 is accepted with a significant positive relationship between SHRM practices and job satisfaction.

Conclusion

Since most of the Lebanese educational institutions don’t have a clear understanding on the role of SHRM practices and their impacts on job performance, satisfaction and involvement, there was a need to study the possible factors that might have an impact on implementing a new approach concerning SHRM…

Educational private institutions in Lebanon need to improve the quality of their services, says the researcher. The researcher studied the impact of SHRM practices on job satisfaction, and job performance in the Lebanese educational institutions. Many studies have emphasized the importance of the SHRM practice in schools in Lebanon. Change in the Lebanese educational institutions could not be achieved without the efforts of the owners of these institutions. They must know that the degree of performance of their teachers and staff are related directly to their practices of Human resources management. History is full of examples that justify the importance of the balance in distributing responsibilities (power and participation) among the manager and the employees. When balance is achieved, performance outcomes are more likely to float on the surface. In the Lebanese private institutions, change will be more likely to occur when they realize the importance of the applied SHRM practices and their impacts on the job performance from one side, and on the job satisfaction and job involvement from the other side.