Integrating HRM with organizational strategy in Ethiopia: a study of manufacturing companies in Addis Ababa and adjacent zones of Oromia

The integration of human resource management (HRM) with business strategy is essential for fostering organizational coherence, adaptability, and sustained competitive advantage in complex market environments; conversely, misalignment can result in operational inefficiencies and diminished resilience...

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Main Authors: Tekalign Gidi Kure, Meheret Ayenew Warota
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2024.2448779
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author Tekalign Gidi Kure
Meheret Ayenew Warota
author_facet Tekalign Gidi Kure
Meheret Ayenew Warota
author_sort Tekalign Gidi Kure
collection DOAJ
description The integration of human resource management (HRM) with business strategy is essential for fostering organizational coherence, adaptability, and sustained competitive advantage in complex market environments; conversely, misalignment can result in operational inefficiencies and diminished resilience. The study aimed to assess the integration of HRM into the organizational strategy in Ethiopia, with a specific emphasis on manufacturing companies in Addis Ababa and the adjacent Zone of Oromia. Our study emphasizes the need to move beyond just analyzing statistical relationships and instead focus on the active integration of HRM issues into organizational strategy. We employed a mixed research approach and pragmatism research philosophy, gathering data through a structured questionnaire distributed to 371 respondents and conducting 24 key informant interviews with HR managers from the manufacturing sector. Using Principal Component Analysis (PCA), we have decomposed Strategic HRM into two dimensions: strategic orientation and strategic development. Our findings reveal a strong strategic human resource orientation in Addis Ababa and the adjacent Zone of Oromia’s manufacturing sectors. However, this orientation occurs within an environment of low involvement in strategic development and the absence of a written HR strategy. This decomposition offers organizations a valuable framework for assessing their level of strategic HRM integration. Managers and practitioners need to recognize the significance of strategic orientations and strategic development in strategic HRM.
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spelling doaj-art-e804112d947e4b7fba88fa1368170a122025-01-08T13:09:50ZengTaylor & Francis GroupCogent Business & Management2331-19752025-12-0112110.1080/23311975.2024.2448779Integrating HRM with organizational strategy in Ethiopia: a study of manufacturing companies in Addis Ababa and adjacent zones of OromiaTekalign Gidi Kure0Meheret Ayenew Warota1Department of Management, College of Business and Economics, Wachemo University, Hossana, EthiopiaDepartment of Public Management and Policy, College of Business and Economics, Addis Ababa University, Addis Ababa, EthiopiaThe integration of human resource management (HRM) with business strategy is essential for fostering organizational coherence, adaptability, and sustained competitive advantage in complex market environments; conversely, misalignment can result in operational inefficiencies and diminished resilience. The study aimed to assess the integration of HRM into the organizational strategy in Ethiopia, with a specific emphasis on manufacturing companies in Addis Ababa and the adjacent Zone of Oromia. Our study emphasizes the need to move beyond just analyzing statistical relationships and instead focus on the active integration of HRM issues into organizational strategy. We employed a mixed research approach and pragmatism research philosophy, gathering data through a structured questionnaire distributed to 371 respondents and conducting 24 key informant interviews with HR managers from the manufacturing sector. Using Principal Component Analysis (PCA), we have decomposed Strategic HRM into two dimensions: strategic orientation and strategic development. Our findings reveal a strong strategic human resource orientation in Addis Ababa and the adjacent Zone of Oromia’s manufacturing sectors. However, this orientation occurs within an environment of low involvement in strategic development and the absence of a written HR strategy. This decomposition offers organizations a valuable framework for assessing their level of strategic HRM integration. Managers and practitioners need to recognize the significance of strategic orientations and strategic development in strategic HRM.https://www.tandfonline.com/doi/10.1080/23311975.2024.2448779IntegrationHRMstrategic HRMmanufacturing companyHuman Resource ManagementPersonnel Selection, Assessment, and Human Resource Management
spellingShingle Tekalign Gidi Kure
Meheret Ayenew Warota
Integrating HRM with organizational strategy in Ethiopia: a study of manufacturing companies in Addis Ababa and adjacent zones of Oromia
Cogent Business & Management
Integration
HRM
strategic HRM
manufacturing company
Human Resource Management
Personnel Selection, Assessment, and Human Resource Management
title Integrating HRM with organizational strategy in Ethiopia: a study of manufacturing companies in Addis Ababa and adjacent zones of Oromia
title_full Integrating HRM with organizational strategy in Ethiopia: a study of manufacturing companies in Addis Ababa and adjacent zones of Oromia
title_fullStr Integrating HRM with organizational strategy in Ethiopia: a study of manufacturing companies in Addis Ababa and adjacent zones of Oromia
title_full_unstemmed Integrating HRM with organizational strategy in Ethiopia: a study of manufacturing companies in Addis Ababa and adjacent zones of Oromia
title_short Integrating HRM with organizational strategy in Ethiopia: a study of manufacturing companies in Addis Ababa and adjacent zones of Oromia
title_sort integrating hrm with organizational strategy in ethiopia a study of manufacturing companies in addis ababa and adjacent zones of oromia
topic Integration
HRM
strategic HRM
manufacturing company
Human Resource Management
Personnel Selection, Assessment, and Human Resource Management
url https://www.tandfonline.com/doi/10.1080/23311975.2024.2448779
work_keys_str_mv AT tekaligngidikure integratinghrmwithorganizationalstrategyinethiopiaastudyofmanufacturingcompaniesinaddisababaandadjacentzonesoforomia
AT meheretayenewwarota integratinghrmwithorganizationalstrategyinethiopiaastudyofmanufacturingcompaniesinaddisababaandadjacentzonesoforomia