Strategic Human Resource Management and Organizational Performance in the Nigerian Manufacturing Sector: An Empirical Investigation

Oladipo Jimoh Ayanda, Abdulkadir Danlami S.


Despite the relatively large bulk of literature on strategic HRM, there is still an ongoing debate as to whether it
exists in reality or is merely rhetoric. This paper attempted to broaden the scope of existing literature by examining
the extent to which Strategic HRM is practiced in the Nigerian manufacturing sector as well as its impact on
organizational performance. A multi-respondent survey of 21 Nigerian manufacturing companies was undertaken
and data collected was subjected to correlation and regression analysis as well descriptive statistics in pursuance of
the stated objective of finding a fit between organizational performance and strategic human resource management
practices. Results show that strategic HRM was moderately practiced by the companies operating in the Nigerian
manufacturing sector. Results also indicate that line management devolvement, innovative recruitment and
selection system, regular training and development of personnel, equity based compensation system, performance
appraisal system, effective career planning system and a robust employee participation in the organizations’
decisions and actions are the key strategic HR practices that influence organizational performance in the Nigerian
manufacturing sector. It therefore, implies that companies operating in the Nigerian manufacturing sector should
pay more attention to these practices with a view to improving their implementation across the industry.

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