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Human Resource Strategy and Practice

Strategic Human Resource Management and Organisational Performance: The Mediating Role of Firm–Employee Relationship—A Case Study on Movit Products

DOI:

https://doi.org/10.63385/hrsp.v2i2.101149

Keywords:

Strategic Human Resource Management,Firm–Employee Relationships,Organisational Performance,Mediation,Mixed Methods,Uganda

Abstract

This study examined the influence of Strategic Human Resource Management (SHRM) practices on organisational performance, with particular emphasis on the mediating role of firm–employee relationships at Movit Products Limited, Uganda. A convergent parallel mixed-methods design was adopted, combining quantitative data from a survey of 210 respondents with qualitative data from key informant interviews. Quantitative data were analysed using IBM SPSS (Version 26.0), while qualitative data were analysed using thematic analysis. The findings revealed a significant positive relationship between SHRM practices and organisational performance (r = 0.513, p < 0.01). Multiple regression analysis identified training and development, together with employee participation and communication, as the strongest predictors of both organisational performance and firm–employee relationships, whereas job performance strategies, wellness programmes, and leadership development had insignificant effects. Mediation analysis using Hayes' PROCESS Macro (Model 4) demonstrated that firm–employee relationships fully mediated the relationship between SHRM and organisational performance. The direct effect of SHRM became non-significant (β = 0.109, p > 0.05), while the indirect effect through firm–employee relationships remained significant (β = 0.457, 95% CI [0.276, 0.602]). Qualitative findings corroborated these results, showing that effective communication, employee recognition, and continuous training strengthened trust, commitment, and employee satisfaction, leading to improved productivity, product quality, and customer satisfaction. The study concludes that SHRM contributes to organisational performance primarily by fostering strong firm–employee relationships and recommends prioritising employee development and participatory communication to achieve sustainable organisational success.

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