Does Technical or Strategic HRM Provide a Better Explanation of Organization Performance?

Abstract

This study is to examine the ability of technical HRM versus strategic HRM in predicting organizational performance in the health care industry. A postal survey was distributed to the HR managers of all the hospitals in Taiwan, with a response rate of 56%. Hierarchical regression analyses were based on data from the 277 responding hospitals. From the result, we found that technical HRM is more important in explaining perceived organizational performance, and strategic HRM is better at predicting human capital accumulation. Technical HRM does not moderate the relationship between strategic HRM and perceived organizational performance, but it does moderate HR strategy and human capital accumulation.