Strategic Human Resource Management Practices: An Empirical Analysis of Horizontal and Vertical Alignment

Abstract

The purpose of this research paper is to assess the role of SHRM and alignment tools in organizational success within Libyan companies for 2022-2024. In this case, it will be tested if horizontal and vertical alignments positively affect organizational performance after controlling for individual HR practices. To address the stated goal, a quantitative cross-sectional survey was conducted among 60 firms in Tripoli, Benghazi, and Misrata. The collected data were evaluated with reliability checks (α = 0.93), correlation analysis, multiple regressions, and structural equation modeling. The findings indicate that SHRM has a significant predictive effect on organizational performance (β = 0.41; p < 0.001). Furthermore, vertical fit increases the efficiency of organizations (β = 0.36; p < 0.001), while horizontal fit improves the effectiveness of human resource management (HRM) activities (β = 0.33; p < 0.01). Together, the considered variables explain 58% of the total variance in organizational performance (R² = 0.58). Furthermore, structural equation modeling shows strong associations between SHRM and organizational performance (β = 0.45), and from alignment variables to results. The results demonstrate that well-aligned and strategic HRM systems yield better outcomes than dysfunctional HR strategies in transition economies. Lastly, it can be concluded that alignment strategies are the vehicle through which SHRM becomes organizational success in Libya