See Article History Organizational analysis, in management sciencethe study of the processes that characterize all kinds of organizations, including business firms, government agencies, labour unions, and voluntary associations such as sports clubs, charities, and political parties. Any organization is a social unit with three properties: Modern cultures are marked by an increase in the importance, influence, and power of organizations.
Volume 11, Issue 2 May. Innovation is regarded as the driving force of rapid changes in the modern world and one of the key success factors in the competitive market.
Firms have to innovate, to survive in the market. The disruptive wave of innovation every year makes so many businesses disappear from the market. On the other hand, successful implementation of innovation programs can guarantee profitability and an acceptable overall performance for any firm.
In addition, strategic planning for human resources plays a key role in innovation practices and helps firms achieve their long-term objectives.
This paper intends to assess a linkage between strategic human resource management, innovation, and overall performance within a firm.
In order to examine such a linkage, an online survey was applied and data were collected from 54 managers of product development projects in Malaysian manufacturing companies. Analysis of the collected data using correlation analysis techniques proved that there is a strong correlation between the three mentioned concepts.
Every year, some new competitors emerge in the market and some others disappear. There are several reasons why some businesses fail to compete in the market.
It is proven that organizations with a higher level of innovativeness are more successful in responding to the increasing demands of changing environments; also, they perform better in developing essential capabilities which allow them to achieve a higher market share Montes et al.
Within the last decade, a new phrase emerged in the world of innovation: This phrase addresses those innovation activities that help to create a new market and value chain, and unintentionally disrupts an existing market or value chain, and displaces an earlier technology. Disruptive innovation actually stands against sustaining innovation which does not create new value chain or market and rather only tries to evolve the existing markets with higher value.
This kind of innovation allows the firms to compete upon each other's sustaining improvement.
Anyway, the new approach to innovation changed the classic rules of business, including marketing methods and the ways of strategic thinking. For example, the conventional strategic disciplines mostly emphasized on one of the three common strategies: On the other hand, such a competitive environment strongly requires creative people and proper human resource policies.
Innovation programs strongly depend on skills, knowledge, and the degree of commitment as the essential factors needed for value creation mechanism Youndt et al. Development of human resource strategies is an essential action wherever a group of people work together to achieve common goals Sharma, .
It is clear that in order to achieve long-term objectives firms need to manage their human resources strategically; the need for strategic human resource management SHRM emerges from here.
In order to examine such a linkage, in this section a conceptual framework will be presented and later, proposition of hypotheses, construction of the questionnaire, and analysis of collected data all will be done based on this framework.
As the figure shows, three concepts of SHRM, innovation and firm performance form the foundation of this study. Figure1 The conceptual framework According to the above scheme, it is expected to find a positive link between each two concepts independently.
Based on this framework, three hypotheses will be proposed in the following sections. In his opinion, strategic human resource management deals with creating a clear linkage between the strategic goals of the firm and its human resource policies.
Scarbrough  argues that when firms start to develop a new product or improve the quality of services, they need a high level of motivation and competencies among their human resources to generate innovative ideas, develop innovation practices to provide new opportunities. HR activities can change the capacities, attitudes and behaviors of all the staff in order to satisfy strategic objectives of the organization Collins and Clark, .
Such activities have an undeniable effect on providing required conditions which lead individuals to implement innovative programs Scarbrough, . Firms can pursue different strategic human resource activities such as planning, hiring, training, monitoring and rewarding as required tools to motivate employees, enhance their level of commitment to the firm and encourages them to participate in strategic thinking and innovation Laursen and Foss, .
According to them, when firms decide to develop their innovative activities, they normally face with relatively higher levels of uncertainty, risk and instability in the process of innovation.
Hence, firms are required to focus more and more on such competencies in their staffing programs. When firms apply creative capacities and innovative competencies as selection and recruitment criteria, their staff are likely to produce diversity of new ideas and show more innovative behaviors.
An effective staffing makes employees huge sources of innovative ideas within the firm's journey toward innovation. Organizations try to provide employees different training programs to improve their knowledge, skills, and also the innovative capability required for fulfilling their tasks Mumford, .
Through training programs, firms can enhance the overall level of organizational expertise as a necessary tool for the innovation process Weisberg, .Examining the Relationship between International Public Relations Efforts, Media Coverage, Country Reputation and Performance using Agenda Building & Agenda Setting • Rajul Jain & Lawrence Winner, University of Florida • Using first and second level agenda building and agenda setting as the theoretical framework, this study examines the.
On the other hand, the relationship between organization strategy and innovation would seem to be clearer in the literature as it commonly agrees that there is a positive association between innovation, particularly product innovation, and differentiation strategy, and not with cost leadership strategy.
ph-vs.com 86 | Page The linkage between strategic human resource management, innovation and firm performance Training of human resources facilitates employees' exposure to different fields of knowledge and fertilizes creative ideas (Jaw and Liu, ) .
Nov 19, · The relationship between organizational structure and strategy becomes clearer when the company’s strategy is in place. With a clear focus of what it wants to achieve, the organization will proceed to align its structure in such a manner to best achieve this.
If your strategy is to move quickly whenever you spot an opportunity in the marketplace, and your organization has a strict hierarchy of managers and supervisors that must approve every action, your organizational design is fighting your strategy .
Foreword Over the course of my career as a strategic planner in higher education, I have worked with a wide variety of individuals who have misconstrued the role of strategic planning in the academy.