Organisational Values and Firm Effectiveness: Intervening Role of Strategic Human Resource Management

Abstract

The study aimed to investigate the effect of organisational values on firms’ effectiveness using strategic human resource management (SHRM) as a mediating variable. The design for the study was descriptive, and the approach was quantitative. A questionnaire was administered to solicit data from 344 participants. Descriptive statistics, correlation and multiple regression analysis, were done to ascertain the averages, relationships and effects of the independent variable (organisational values) on the dependent variable (firm effectiveness). The study revealed corporate values' positive and significant effect on firm effectiveness. Besides, strategic human resource management practices mediate the relationship between organisational values and a firm's effectiveness. The implication is that firm leaders who prioritise corporate values win employees' trust, enthusiasm and commitment and can manage them strategically to achieve firm effectiveness. The interplay of organisational values, strategic human resource management, and firm effectiveness in a single study, especially in Ghana and in the institutions of higher learning context, makes this study unique. Besides, most studies on values and a firm’s effectiveness have been explorative and carried out primarily in developed economies.