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“The effect of strategic human resources management (SHRM) on organizational excellence”

ARTICLE INFO Mohamad Noor Al-Jedaiah and Rokaya Albdareen (2020). The effect of strategic human resources management (SHRM) on organizational excellence. Problems and Perspectives in Management, 18(4), 49-58. doi:10.21511/ppm.18(4).2020.05 DOI http://dx.doi.org/10.21511/ppm.18(4).2020.05 RELEASED ON Wednesday, 11 November 2020 RECEIVED ON Monday, 24 August 2020 ACCEPTED ON Thursday, 29 October 2020


INTRODUCTION
Organizational excellence is the core of any business. The dynamicity of the business environment calls any organization to build its sustainable organizational excellence. Sustainable organizational excellence should consider all the factors that affect the performance of the organization. Of these factors and in the first position are market changes, business development, competitors' creativity, quality management, and customer satisfaction (Hussain et al., 2018). The accomplishment of excellence requires a learning organization with the abilities and capabilities to meet the new manufactory developments to be in the first position compared to other competitors. The sustainability of organizational excellence requires integrated human resources management. The organizations' human factor is the key to lead the organization for excellence.
The reliability of strategic human resources management (SHRM) could lead organizations to build their integrated plan for human resources that help accomplish sustainable excellence (Vardarlier, 2016).

LITERATURE REVIEW
Human resources are the base that determines the extent of organizations' success. The deep and strong HR management will determine the extent to which these resources will take over the different activities successfully. Strategic planning of HR will determine the organization's needs and, at the same time, will relate the HR strategy to the overall organizational strategy. The human resources strategy will direct HR in all directions. The strategy will help determine the organizations' needs and move forward side-by-side with the organizational strategy to accomplish the organization target in markets. Moreover, the HR strategy will specify the other organizational needs that help manage HR, such as the experiences required and training to improve the organizational capabilities. In the other direction, the success of the HR strategy will be affected by different factors. One crucial factor will be the technology available to manage HR. So, the success of HR strategies will be tied with the availability of high technology that helps in its management, which directly affects the performance of the organization.
Human resource management strategies represent the process of focusing on human elements in organizations, where it is concerned with attracting, evaluating, and rewarding employees and following up organizational leadership and organizational culture, ensuring the commitment of the human element to the strategic plans of the organization. Human resource management strategies are sometimes referred to as an individual or personal management skills, because they require a strategic focus to ensure the ability of individual resources to achieve the objectives of the organization (Anyadike, 2013). The SHRM strategy will be very powerful if it has a clear, defined, and flexible one in attitudes, policies, and practices, which will play a significant role in accomplishing the organizational objectives. The strategy should improve employees' skills to improve the opportunities to reach the organizational objectives (Zehir et al., 2016;Marashdah & Albdareen, 2020).
The excellence of an organization can mainly be achieved through human resources management. The role of human resources within the organization should be connected directly to the strategies the organization builds toward its excellence. Strategic human resources management should be part of the organization's other strategies and work parallel to them. The role of SHRM is to determine the role of human resources in the accomplishment of other strategies (Hamadamin & Atan, 2019). Continuous assessment of SHRM and the feedback will help the organization to stay on track of excellence.
The components of SHRM will impact the strategy directly and so the organizational excellence as it affects the quality of processing and outputs of the organization (Alkhazali & Halim, 2015). The human resources strategy should consider four major elements to formulate an integrated one. These elements include the organization, people, processes, and systems (HRWG, 2005). The organizational factor concentrates on the changes inside the organization to accomplish excellence. The processes concentrate on internal management that leads to excellence. The people refer to people's ability in one organization to lead the organization to excellence, while the systems reflect the external technological developments that should be adopted to lead to excellence.
Human resources management strategies should concentrate on the practices that lead to human resources excellence. The practices include recruitment, development, training, and the incentive and benefits system, and career development in the organization (Arbab & Mahdi, 2018). The SHRM should reflect and include the HR practices that help in its achievement (Mwaniki & Gathenya, 2015).
Organizational excellence reflects the organization's ability to satisfy the sustainable development of the organization and meet customers' needs (Hashemy et al., 2016). The measurement of organizational excellence is affected by the type of organization, public or private, and the nature of organization activities. In industrial organization, the excellence should concentrate on different elements related to quality, technology management and deploy customer satisfaction and competences (Shirvani & Iranban, 2013). In light of the great technological transformations and developments, organizations have sought to take advantage of these changes and make them more effective in their policies and strategies to maintain their position in a rapidly changing environment. Several studies, such as Demirkaya et al. This paper is based on the resource-based view theory. The theory is based on HRM practices that impact organizations' employees' behavior, attitudes, and skills. On the other hand, the theory is based on HRM-outcomes, which are represented in improving organizational performance (Boxall & Steeneveld, 1999). The theory concentrates that the organization should have the ability to reflect its capabilities and resources. The theory does not concentrate on the inputs of the organization but the outputs. The theory concentrates on human resources management policies and their relation to organizational performance (Wright et al., 2005). The other theory that reflects the performance of the system is the AMO theory. The first part of the theory concentrates on the organization's ability and skills based on training and education, while the other part concentrates on motivation and incentives, which are represented in employment security and promotion opportunities. The third part of the theory concentrates on the opportunity related to quality, labor cost, and the profit gained (Appelbaum et al., 2000).

AIMS AND HYPOTHESES
This research aims to investigate the effect of SHRM through recruitment, training, development, and career development on organization-al excellence, including customer satisfaction, technology deployment, product quality, and competitiveness.
The authors studied the effect of some SHRM criteria on organizational performance. Harky (2018) has approved that recruitment and selection affect organizational performance. Moreover, Ali and Ngui (2019) approve the relationship between training and organizational performance. According to Gagnon and Dragon (2015), through the literature review, the organizational performance was measured through customer satisfaction, technology development, product quality, and competitiveness. The explained effects of SHRM components and organizational performance elements lead to building the research model.
The research model consisted of two parts. The first part is related to SHRM components, while the other part is related to organizational excellence in the industrial sector. The major elements of SHRM composed of HR recruitment, development, training, and career development, while the variables of organizational excellence included customer satisfaction, deploying technology, product quality, and competitiveness within the same industry ( Figure 1).
To reach the objectives of this research, the study will test the following hypotheses: H0: There is no significant effect of recruitment on achieving organizational excellence.
H02: There is no significant effect of training on achieving organizational excellence.
H03: There is no significant effect of organization HR development on achieving organizational excellence.
H04: There is no significant effect of career development on organizational excellence.
This research will contribute to human resources management science by raising the important inputs that improve organizational performance and excellence in the industrial sector.

METHODS
The reachability of organizational excellence depends mainly on the organization's internal capability to take over all challenges to improve its profitability and meet the customer satisfaction. Excellence in industrial organization is considered a challenge that should be accomplished through formulating strong SHRM. The objective of this research is to investigate the effect of SHRM components on achieving organizational excellence. This research will be applied to industrial organizations. The population of this research is the industrial companies of Al Hasan Industrial City in Northern Jordan. A simple random sample was selected from industrial companies. The sampling unit included managers, units' heads, and human resources managers of these companies. The random sample included 120 persons in the previously explained positions. The questionnaire was used as a data collection tool. The questionnaire is composed of three parts. The first part concerned with the collection of demographic data, while the second part concerned with the collection of sampling units' point of view of the implementation of SHRM components extent, and the third part is concerned with the attitudes of the sample of the accomplishment of excellence under the execution of SHRM strategy. A fivepoint Likert scale was used to measure the extent of agreement and started with highly agree with weight 5 and highly disagree with weight 1.

RESULTS
The reliability of the questionnaire was measured using Cronbach's alpha. The results showed that the minimum value was recorded 0.75 for career development, which is higher than the acceptable limit for such research. The highest reliability was recorded to test all variables together for SHRM components (0.91) and organizational excellence (0.94).   The agreement of the contribution of training toward excellence was positive. The highest agreement was given for the regular assessment of the training needs with a mean of 3.61, while the least agreement was for in situ training to assure employees' excellence with a mean of 3.48. The respondents agreed on the concentration of training needs contribution to excellence, the assessment of training impact on employees' behavior toward excellence, and the employees recognize the objectives of training and its connection to organizational excellence (Table 3).  Table 4 shows the mean of respondents to the role of development in organizational excellence. The results showed that the highest agreement was for the relationship between human resources practices and organizational development (3.57) ( Table 4). The least negative agreement was given to connect the SHRM strategy and the organiza-tional strategy with a mean of 2.97. The companies care for the introduction of the organizational development strategy for human resources and staff. Also, company development is measured through the progress made by the staff. Concerning career development, the managers agreed that the human resources staff has equal opportunities to develop their careers with a mean of 3.38. The least positive agreement was for the connection between SHRM strategies to organizational excellence (3.09). The companies care for the employees' behavior toward excellence, agree that career development is an important factor toward excellence, and the internal culture helps exchange experience and encourage career development (Table 5).

Managers' attitudes for the accomplishment of excellence
Customer satisfaction is a very important measure of excellence according to managers' point of view (3.44). The highest agreement was given for the regular measurement of customer satisfaction (3.69), while the least positive agreement was given for including the product information that provides easy methods for customers to contact the company for complaints and suggestions (3.29). Customer satisfaction is reached through a formulated policy; the feedback from customers is collected through different methods, the company's communication tools to measure customer satisfaction (Table 6). The organization has the policy to achieve customer satisfaction 3.43 1.21 The organization receives customers' feedback through known channels 3.41 1.03 The organization include communication tools to get customer satisfaction 3.40 1.18 The products of the organization include information about customer contact 3.29 1.19 All 3.44 1.10 The attitudes show the agreement for the positive effect of technology deployment on excellence (3.12). The highest agreement was searching for new technology that updates and meets the organization's excellence (3.18). The lowest positive agreement was for the regular assessment of organization technology toward improvements (3.06) ( Table 7). The highest attitudes were given for product quality (3.44) ( Table 8). The highest agreement was given to measure product quality as a major factor of organizational excellence (3.55). The lowest agreement was for the regular improvement of products (3.22). The agreement for competitiveness as a measure of excellence was positive (3.12). The highest agreement was for the regular measure of market share (3.18), while the lowest agreement was for the connection between competitiveness with the organizational strategies (3.06). The organization collect information about the product from hyper stores 3.14 0.98 The organization measure competitiveness as part of profitability 3.12 0.99 The organization has specific measures for competitiveness measurement 3.11 0.90 Competitiveness is directly connected to excellence through the different organizational strategies 3.06 0.88 All 3.12 0.82

Hypotheses testing
The effect of SHRM components on customer satisfaction was significant (p < 0.01). The highest effect was attributed to career development (β = 0.40), while the least effect was for recruitment (β = 0.08) (Table 10). Moreover, the effect on technology deployment was significant (p < 0.01). The highest effect was attributed to recruitment (β = 0.7), while the lowest effect was associated with training (β = 0.31).
The effect of SHRM on product quality was significant (p < 0.01). The highest effect was associated with recruitment (β = 0.61), while the lowest effect resulted from training (β = 0.31). For competitiveness, the effect of SHRM components was significant (p < 0.01). The highest effect was resulted from recruitment (β = 0.83), while the lowest effect was for development (β = 0.38) ( Table 10).

DISCUSSION
The objective of this research is to investigate the effect of SHRM on accomplishing the excellence of industrial organizations in Al Hassan Industrial City in Jordan. The results showed that managers of the companies investigated carrying nationalities more than the Jordanian one. This provides the chance for an industrial company to use different experiences to accomplish its objectives. Variation in experience exchange would help the industrial organization to adopt decisions that help its sustainability. The studied managers' experience varied, indicating that the industrial company concentrates on the quality of experience more than the long traditional experience to accomplish its excellence. Moreover, the results showed that the research tool is reliable.
Most organizations seek excellence in their work. Recruitment plays a crucial role in awarding the organization's design of the career needed to reach excellence. Harky (2018) found that recruitment will affect organizational performance. This will help the organization to recruit staff that meets the organization's needs all the time. The organizations look to improve the technical capacity through the recruitment of employees that have technology experience. The newly recruited staff would enrich the technology experience of the organization. The results showed a lack of connection between the different sub-strategies of the organization to make integration, including the recruitment policies with organizational strategies.
The training was found to improve the experience of the organization toward excellence. The design of training programs and its follow up was shown Results showed that excellence is high associated with customer satisfaction. The hard efforts extended to get feedback about customer satisfaction, the more excellence the organization achieved. The results showed that organizations lack the provision of different connection tools to improve customers' contributions to provide feedback.
Technology deployment in the organization plays an important role in accomplishing excellence. The deploying of the required technology will necessarily improve the quality and improve customer satisfaction and increase competitiveness. Lal (2017) investigated the effect of technology on organizational excellence. The research results showed that technology is crucial for any organization to accomplish excellence.
The results showed that SHRM strategy components directly affect the organizational excellence. The highest effect was associated with the requirement process and the technology deployment, reflecting the connection between these two variables toward excellence. The other higher effect of recruitment was on product quality as the product quality resulted from technology and human interference. A similar result was found by Al-Jedaiah (2008), indicating that information and communication technology tools play a major role in organizational performance.

CONCLUSION
The objective of this research is to investigate the effect of the SHRM components on organizational excellence. The study was applied to the industrial sector. The Industrial City in North Jordan was selected to apply this research. The managers of organizations were selected as subjects to answer the questionnaire as they are interested in their organizational excellence. The results showed that the research tool was reliable. The results showed that training activities inside the organization are the priority toward organizational excellence. In the second position, the interest was in organizational development through the concentration on human resources practices. The concentration on training and organizational development was stuck with the organizational strategy and plans that lead to excellence. The career development was in the third position, while the last position was for recruitment. The concentration on customer satisfaction and product quality was of the first concern toward the organizational excellence. The least effect was for technology deployment and competitiveness, as they may be considered basic elements that should be owned by the organization. The hypotheses testing showed a significant effect of different SHRP components on organizational excellence.

MANAGERIAL IMPLICATIONS
The researchers recommend that the organization should formulate a strategy of excellence and investigate the human resources requirements to achieve it. The organization should concentrate on training and its connection with organizational strategy and objectives toward excellence.