Professionalized SHRM and corporate performance in India

Liberalization in India created a hyper-competitive and turbulent environment. Responding to these changes, Indian organizations adopted changes in their HRM practices for superior performance. This paper tries to understand the role of strategic HRM practices like the role of HR department, recruitment, retraining & redeployment, performance appraisal and compensation in enhancing corporate performance during the change process. A multiple-respondent survey of 69 Indian organizations found that the professionalized recruitment and compensation practices have a positive and significant relationship with firm performance. Professionalized recruitment, role of the HR department and compensation practices seem to be significantly changing within the Indian firms in the context of India’s economic liberalization. The synergy between professionalized HRM practices was not significant in enhancing corporate performance.