A Moderated Model for the Effect of Human Resource Management Strategy on Organizational Outcomes

Much of the previous research has focused on the relationship between human resource practices and organizational outcomes. However, there is limited research investigating the effect of human resource strategy (accumulation, facilitation and utilization strategy) on organizational outcomes. This study addresses the research gap and aims to contribute to the stock of literature and theory by analysing the moderating effect of company age and company size on the relationship between human resource management strategy and organizational performance, competitive advantage and employee turnover in Pakistan’s hotel industry. Questionnaires were used to collect data from hotels located in Punjab province. Based on a final sample of 105 hotels, we found that the hotel age moderates the association between HRM strategy and employee turnover. The results reveal that the more the inclination towards an accumulation strategy, the better is organization’s performance and competitive advantage, and the lower the employee turnover. Other than contributing to the resource-based view and the contingency theory, this research provides suggestions to hotel managers regarding the effective use of HRM strategy. Specifically, by focusing on accumulation HR strategy, hotel managers could reduce employee turnover, generate competitive advantage and achieve high performance.