Strategic Human Resources Management and its Impact on Performance: The Case from Saudi Arabia

The aim of this study is to explore the adoption of Strategic Human Resources Management (SHRM) approach in banking organizations that operates in Abha city Sauid Arabia. It aims also to examine the relationship between Human Resource Management (HRM) and organizational performance, in addition, it aims to explore the main problems and challenges that may face (HRM) in the targeted banks. A survey methodology was adopted in this study through using the self-administrated standardized questionnaire as the data collection method and that was distributed to (50) managers and collected from (29) managers. The results of the study were as follows: the targeted banks adopt (SHRM) approach when managing their (HR) as they also have long-term (HR) plans and written (HR) plans and policies; (HRM) managers participate in top management meetings. The most prominent challenges that hinder the effective implementation of (SHRM) were: limited budget dedicated to (HR) activities; lack of cooperation and coordination between executive managers and (HR) managers. Training, initial test, compensation and rewards are the main (HRM) practices and activities in the targeted banks. Importantly, (SHRM) positively affect the organizational performance which can be represented by increasing profits, increasing the sales ratios, increasing job satisfaction and increasing the loyalty of employees. The current study has made significant contributions to the body of knowledge at academic and practical levels and has come up with good recommendations to improve management of (HRM) and (SHRM) which will affect the effectiveness of whole organization; they are presented in the final chapter of the dissertation.