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Impact of Strategic Human Resource Management on Organisational Performance of SMEs in the UK


“Impact of Strategic Human Resource Management on Organisational Performance of SMEs in the UK”

The research will try to address if new opportunities could be explored with increasing focus on the human resource management in small-and-medium-sized enterprises (SMEs) in the United Kingdom (UK). According to a study, ‘Strategy Execution’ is one of the major problems facing managers in SMEs in the UK (Lai et al., 2016). Managers make strategies in a response to changes in external business environment; however, its execution fails on notable number of instances due to numerous different reasons, such as ‘managing the changing business needs for talent and skills.’ In a volatile business environment, such as these days, Companies can only remain successful only if they have a workforce with the right attitudes and skills as required for increased adaptability with the changing business conditions (Whysall et al., 2019).

Having the right talent in place is the competition half won. The full victory will be destined if the talent is aware of management expectations with them and they feel themselves being heartedly and emotionally into it. The talent will feel connected either they themselves understand the magnitude of importance for the right commitment or the management acknowledges the gap between their talent and changing market conditions to take the right approach to manage it. Akter et al., (2018) has confirmed from their study that the talent of a company holds a critical role in responding to market changes. The talent will perform as expected from them if their practices are strategically aligned to enhance and sustain the performance of the company.

To examine the relationship between strategic human resource management and organisational performance of SMEs in the United Kingdom.

The research objectives are as listed under:

To review the literature on strategic HRM and SME performance’

  • To explain useful ways to implement practices related to Strategic HRM to enhance organisational performance,
  • To investigate the relationship between human resource management practices and the business’s performance, in terms of financial result, turnover revienew and others as well.
  • To recommend Strategic HRM practices that may lead to improved organisational performance.

In this research, the ‘Quantitative’ research methodology will be used since it is easily understandable (Matovi? and Ovesni, 2021). The research will be carried out across ‘Dependent’ and ‘independent’ variable. In this research project, ‘Organisational Performance’ will be the dependent variable with ‘Strategic Human resource Management (SHRM) to be the independent variable covering the main strategic items (to cover minimum 5 objectives). The SHRM is itself influenced by numerous other factors, like talent and strategic alignment. The data will be collected from the online survey will reflect a specific sample population (Kim, 2019). As for the ‘Sample Size’, employees of 30 small-and-medium-sized enterprises (SMEs) will be surveyed.

In this research paper, the data will be collected through survey. The questionnaire will be designed using the ‘5-point Likert scale’. In the Likert Scale, 1 = Strongly disagree, 2 = disagree, 3 = neutral, 4 = agree and 5 = strongly agree (Vieira, 2016).  

‘SPSS’ will be used as the data analysis approach in this research. SPSS will be an appropriate statistical software than any other software, like Analysis of Moments Structure (AMOS) because it provides comparatively a more comprehensive output. This is also suitable in case the sample size is small (Greening, 2019).

Online surveys challenge the ethical principles of traditional researches, like risk, privacy, consent, confidentiality, anonymity, and autonomy. This also adds new methodological complexities in terms of survey design, data storage, security, and sampling (Nayak and Narayan, 2019)

Harvard referencing system will be used to cite sources in the texts in the paper.

This project as well as the final report will be the work of the researcher. It will not be either copied, plagiarised or written by a different source. In case, the work is suspected, the work will be referred to the University of Chichester in line with item 8E of the Academic Regulations.

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