Impact of 7s model, Strategic Human Resources Management functions and moderating effect of people strategy on organizational performance in Insurance industry of Sri Lanka.

Abstract

The aim of this study was to investigate the impact of 7S model, moderating effect of people strategy and strategic human resource management functions on organizational performance and applications in the Sri Lankan insurance companies considering the 7S model as a organizational strategic planning tool which assists and drive organizations. 7S model defines organizational factors which are separating excellent businesses from other aspects .The success of a business depends on interrelated seven factors. The distinctive argument of the 7S model is that the process of strategic planning is made up of creating strategies and considering the other factors expressed in the model. Thus, it is claimed that business succeeds with the coherent corporation of the strategy factor and below explained factors. The 7S model focuses on key SHRM dimensions which are critical to any organization namely, Strategy, Structure, Systems, Staff, Shared Values and Style. The researcher focuses on the study how these seven elements and Statistics, measurement driven tools impact on organizational performance with moderating effect of people strategy. The study sample consisted (29 ) Licensed Insurance Companies (LIC,s) individual employees of leadership and supervisory functions in insurance companies operating in Sri Lanka, where the questionnaire was developed to gauge the views of the respondents consisting of (576) employees. After a process of data analysis and hypothesis testing using SPSS package and AMOS, the study found the importance and benefits and the possibility of relying on the 7S strategic planning tool in strengthening the application of strategic human management functions. The study recommends that design of appropriate organizational SHRM functions, which are pushing for more performance of insurance companies and application of new knowledge as a prerequisite for higher firm’s performance.