Abstract

The purpose of this paper is to evaluate the effects of strategic human resources management (SHRM) practices on the primary measures as expressed by the Organisational Climate and the secondary measures as expressed by the organizational performance, and to find out the effect of the Organisational Climate on the organizational performance of Nigerian oil and gas companies. To achieve these objectives, an empirical study was conducted via the administration of 450 selfadministered copies of questionnaire to a randomly selected senior and management staff often (10) Oil and Gas Companies, that have implemented SHRM in Nigeria. Organizational climate was measured through a set of questionnaire that we developed based on the eight organizational climate dimension proposed by Litwin and stringer (1968). Strategic human resources management (SHRM) practices was measured using six dimensions (strategic HRM alignment, selection system, training and development system, performance appraisal system, compensation system, and career planning system. Organizational performance was measured by the following variables: profitability, growth, sustainable competitive advantage and customer service dimensions. Data collected was subjected to regression and correlation analysis. The three-step regression procedure was used to corroborate the seven hypotheses. Findings based on the survey revealed that strategic human resources management (SHRM) practices positively affected both performance measures in the Nigerian oil and gas companies. Specifically, apart from career planning system, in descending order, the results suggest that, Strategic HRM alignment, training and development, Compensation System, Selection System, and Performance appraisal system and are the key SHRM practices that influenced both organizational climate and performance in the Nigerian oil and gas industry. Results also suggest that the relationship between SHRM practices and organizational performance in the Nigerian oil and gas industry is moderately influenced by organizational climate. The model provides predictive implications on improved organizational climate and organizational performance, given the activities of some factors manifesting strategic human resources management (SHRM) practices. Hence, to improve both organizational climate and organizational performance, oil and gas companies could control their strategic human resources management (SHRM) practices.