Introduction

Literature review

Discussion

Conclusion and future research

References

Abstract

Purpose – Despite the strategic importance of the approaches, most of the approaches consider “internal fit” or “external fit”, and do not consider the role of creative climate. The purpose of this paper is to explore the relationship between approaches to strategic human resource management (SHRM) and organisational performance through a creative climate.
Design/methodology/approach – This paper has divided into three parts. First, the paper explores the literatures on the constructs. Second, it examines the relationships between constructs dealt with in the literature. Third, the review identifies the gaps in the literature and describes future recommendations of research for this field.
Findings – This study can serve as a starting point for future research on the relationship between SHRM practices, creative climate and organisational performance in terms of financial, human resource and customer retention. Researchers and practitioners need to understand the relationship between the three constructs.
Originality/value – The paper helps managers need to design strategic HRM policies and practices that are aligned with creative climate and organisational performance. Furthermore, it helps scholars/researchers focus their research on the relationship between HRM approaches (universal and contingency approaches), organisational performance and examining the role of creative climate as a mediator to overcome its causal limitations.

Introduction

Twenty-first century organisations are competing over the efficiency and utilisation of their workforce. Moreover, in a competitive environment, a company must understand all its negative and positive forces, including relevant skill sets among its workforce to stay in the market. Hence, having the right composition in the team, with the right skill sets is good enough to get a sustainable competitive advantage ( Jery, 2013). Gilmore and Williams (2009) identified that: “employees provide the primary source of competitive advantage, with the quality of HRM being a critical influence on the performance of firms and managing people”. Along those lines, Delery and Roumpi (2017) argued that: “HRM practices can contribute to a firm’s sustainable competitive advantage not only by enhancing employee’s ability, and offering motivation and opportunities, but also by shaping supply-side and demand-side mobility constraints”. Wright and McMahan (1992) defined the term “strategic human resource management (SHRM)” as: “the pattern of planned human resource deployments and activities intended to enable an organisation to achieve its goal”. Delery and Doty (1996) address SHRM as a vast organisational culture and is structured to promote performance effectiveness, the fundamental development of resources, knowledge and capability within an organisation. It is a link to develop an organisational cluster of cultures, innovation and manpower towards the business goal and organisation mission in the long term. SHRM, hence, being applied vastly within organisations to examine the relationship between the strategic approaches applied and their impact on an organisation’s performance barrier.