Abstract
Strategic human resource management (SHRM) seeks to create alignment between human resource management (HRM) practices and business strategy (strategy fit); linking HR strategies, policies, and practices within the functional units of the HR department (intra-functional fit); maintaining the status of the HRM department within corporate strategic plan (HR-roles-position fit); and alignment of HRM functions with all other departments (cross-functional fit). This study investigates the effects of SHRM on organizational performance. Data was collected from 314 employees in tertiary educational institutions in Ghana. A conceptual model was developed and a set of hypotheses were proposed. The results found that cross-functional fit has a significant effect on both financial and operational performance. However, the results found no significant effect of strategy fit, role-position fit, and intra-functional fit on financial and operational performance. Therefore, tertiary educational institutions should develop cross-functional fit to improve their financial and operational performance.
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