Strategic integration of HRM for organizational performance: Nepalese reality

The purpose of this paper is to explore the extent of strategic integration between business strategy and human resource (HR) policies and their impact on organizational performance of public listed companies in Nepal.

Exploratory cum descriptive research design is followed with structured questionnaire distributed to 105 publicly listed individual organizations as a unit of analysis and secondary source of information used to verify the performance result of perceptual measurement.

Formulation of explicit mission and business strategies indicate that around half of the organizations are doing business without business strategy and just one-fourth organizations formulate explicit HR strategy in order to support business strategies. Among the respondent organizations, few organizations meet the requirement of high strategic integrating organizations that were performing better than organizations that were low integrating.

This study provides sufficient evidences to Nepalese decision makers and academics that integration of business and HR strategies will have better impact on organizational performance. The result of this study motivates decision makers and academics, particularly South Asian, to understand the importance of investing in HR to raise organizational performance.

Examining strategic integration for organizational performance is perhaps the first study which certainly contributes to the overall assessment HRM and its impact on organizational performance to the developing countries of South Asia, like Nepal and add values to the process of theoretical development as well as HR management.