www.tjprc.org editor@tjprc.org EXPLORING THE RELATIONSHIP BETWEEN STRATEGIC HUMAN RESOURCE MANAGEMENT (SHRM) AND PERCEIVED ORGANIZATIONAL PERFORMANCE IN NIGERIA OWOSENI, OMOSOLAPE OLAKITAN, OFOEGBU, ONYEMA EUGENE & AKANBI, PAUL AYOBAMI Department of Business Administration, Faculty of Social and Management Sciences, Ajayi Crowther University, Oyo P.M.B., Oyo State, Nigeria ABSTRACT Strategic human resource management (SHRM) focuses on organizational performance rather than on individual performance and it also emphasizes the role human resource management systems play as solutions to business problems. SHRM centres on collectivism rather individualism. This study explored the relationship between SHRM and organizational performance in some selected manufacturing firms in Awe, Oyo, Nigeria., Nigeria. The study employed survey research with questionnaire used as data collection instrument. Three hundred subjects were selected from the two manufacturing firms selected for this study. Six hypotheses were tested using multiple regression and correlation analysis. The study revealed that the five variables (extensive training, selective staffing, empowerment appraisal, performance appraisal and team-based work) used in measuring strategic human resource management had positive significant relationship with perceived organizational performance. Based on the findings of this study, it was recommended among others that organizations should take cognizance of the human elements in the organization with the aim of employing them as strategic mechanism for better organizational performance. KEYWORDS: Strategic Human Resource Management, Extensive Training, Selective Staffing, Resource Based View, Perceived Organizational Performance INTRODUCTION Strategic Human Resource Management (SHRM) focuses on organizational performance rather than on individual performance and it also emphasizes the role human resource management systems play as solutions to business problems. SHRM centres on collectivism rather individualism. SHRM focuses on achieving organizational performance, hence, it is crucial to integrate human resource management into organizational business strategies. Organizational performance is influenced by the set of human resource management practices. SHRM involves designing and implementing a set of proactive human resource policies or practices that ensures that an organization’s human capital contributes to the achievements of its corporate objectives. Wright and McMahan (1992) define it as ‘the planned human resource deployment and activities intended to enable an organization to achieve its goals. Human resource deployments reflect the central assumptions behind the positive conceptualization of what human resource management is and does: namely, that it responds accurately and effectively to the organizations environment and compliments other organizational system and contingents. Paauwe and Boseli (2005), drawing on the extensive body of research on SHRM studies examined the effects of SHRM practices on firm performance during significant macro-environment changes. International Journal of Human Resource Management and Research (IJHRMR) ISSN(P): 2249-6874; ISSN(E): 2249-7986 Vol. 4, Issue 3, Jun 2014, 1-8 © TJPRC Pvt. Ltd.