The Impact of Strategic Human Resource Management on Organizational Performance:A Case Study for Saudi Arabia Basic Industries Corporation (SABIC)

Abstract

Strategic human resource management is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. This can affect the way things are done at a business site, improving everything from hiring practices and employee training programs to assessment techniques and discipline.This study  is descriptive  based on the collection and analysis of results of studies, reports, periodicals and books related to the topic of study in order to investigate the relationships between strategic human resource management (SHRM) on organizational performance ,case study of  Saudi Arabia Basic Industries Corporation (SABIC).The Purpose of this Study is to demonstrate the meaning of strategic human resource, the meaning of organizational performance ,advanced studies related to the topic of study , the relationship between strategic human resource management on organizational performance Saudi Arabia Basic Industries Corporation (SABIC) and How (SABIC) company enhance organizational performance through its HR strategy. The researcher has adapt four possible types of measurement for organizational performance in SABIC 1) Human Resource outcomes (turnover, absenteeism, job satisfaction), 2) organizational outcomes (productivity, quality, service), 3) financial accounting outcomes (ROA, profitability), and 4) capital market outcomes, (stock price, growth, returns). Based on descriptive study, the researcher has analyzed SABIC performance. The finding of this study that (SABIC) has overall good performance due to Strategic human resource management .However continuo improvement is required specially decline in oil prices in the last quarter of 2014 and global financial crisis.In the conclusion of this study, the researcher has mentioned to 10 important points in SABIC performance .

Keywords: strategic human resource management , organizational performance