Background & Aims: Human Resource Management (HRM) has long been recognized as a vital component of organizational success. As organizations face increasing complexity, uncertainty, and rapid technological change, the strategic role of HRM has become more prominent than ever before. The ability of HR strategies to align with organizational goals, respond to internal dynamics, and adapt to external pressures determines not only the effectiveness of human capital deployment but also the long-term sustainability of the organization. In this context, organizational health emerges as a critical outcome, reflecting the organization’s ability to function effectively, adapt to change, and foster a positive, resilient workplace culture. Organizational health is a multifaceted construct encompassing psychological, structural, and cultural dimensions. It involves creating an environment where employees feel empowered, supported, and committed to the organization’s mission. A healthy organization demonstrates high levels of employee engagement, low turnover rates, and strong alignment between individual and organizational goals. It can also maintain its internal integrity while effectively responding to external challenges. As such, organizational health is not merely the absence of dysfunction; it is a dynamic state of well-being that supports sustained high performance. Achieving and maintaining organizational health requires deliberate and informed HR strategies. However, the challenge lies in how these strategies are formulated and implemented. Traditional HR models often rely on generic best practices that may not consider the unique context of each organization. This is where the Strategic Reference Point Theory (SRPT) offers significant value. SRPT suggests that organizations make strategic decisions based on reference points- benchmarks that reflect internal conditions, market positioning, and external environmental factors. These reference points guide how organizations assess their current performance and future direction. When applied to HRM, SRPT allows organizations to develop strategies that are not only theoretically sound but also contextually relevant. It encourages decision-makers to consider internal and external reference points- such as employee expectations, industry standards, and market competitiveness- when designing HR policies and practices. For example, a company facing high employee turnover may use internal metrics (e.g., engagement surveys) and external comparisons (e.g., industry retention benchmarks) to adjust its talent acquisition and retention strategies. This reference-based approach ensures that HR decisions are better aligned with organizational realities, ultimately enhancing their impact on organizational health. Furthermore, SRPT emphasizes adaptability and feedback. Organizations continuously reassess their position relative to strategic reference points, allowing for dynamic adjustments in HR strategy. This agility is crucial in today’s volatile business environments, where rigid plans often fail to respond to emerging trends. A flexible HR strategy informed by SRPT can support continuous improvement in areas such as performance management, workforce development, and cultural transformation- each of which directly contributes to organizational health. The connection between HR strategy and organizational health is also reinforced by the concept of psychological empowerment. Empowered employees are more likely to experience job satisfaction, take initiative, and contribute to organizational goals. HR strategies that foster empowerment- such as participative decision-making, skills development, and recognition systems- are more likely to lead to healthier organizational climates. In this way, SRPT-aligned HR strategies act as a mechanism for enabling psychological empowerment, which in turn promotes organizational health. Given these considerations, the present study seeks to explore the relationship between HR strategy and organizational health through the lens of Strategic Reference Point Theory. By identifying the specific HR components that influence organizational health and modeling their interactions, the study aims to provide both theoretical insights and practical guidance. In doing so, it addresses a critical gap in the literature: the need for context-aware, flexible HR strategies that contribute to sustainable organizational well-being. Ultimately, the research aims to offer a model that organizations can use to align their HR practices with strategic goals, thereby fostering long-term health and performance.
Methods: This applied research employed a mixed-method exploratory design, combining both qualitative and quantitative approaches to gather comprehensive insights. In the qualitative phase, the Delphi method was used to identify and validate key dimensions of HR strategies relevant to organizational health within the SRPT framework. The expert panel consisted of 23 academic professionals in management fields, 14 of whom were selected through purposive sampling based on the principle of theoretical saturation. In the quantitative phase, a descriptive survey was conducted among senior managers, deputies, and top-level staff of Shahrvand Company. Out of a population of 2100 employees, a sample of 325 participants was selected using Cochran's sampling formula and random sampling techniques. Data collection tools included a researcher-developed questionnaire on HR strategy and the Miles Organizational Health Questionnaire. Data were analyzed using exploratory factor analysis (EFA), confirmatory factor analysis (CFA), structural equation modeling (SEM), and the Friedman test.
Results: The Delphi technique, executed in three rounds, led to the identification of eight core components for the HR strategy questionnaire: performance management, human resource training, planning, recruitment, organizational structuring, organizational culture, agile organizational structure, and employee retention. These components collectively reflect the multidimensional nature of strategic HR practices when considered through the SRPT framework. Quantitative results showed a factor loading of 0.660 between HR strategy and organizational health, indicating a strong and positive relationship. Moreover, the t-statistic value of 18.597 exceeded the critical range (±2.58), confirming the statistical significance of the impact. This signifies that HR strategies aligned with SRPT have a meaningful and measurable influence on improving organizational health.
Conclusion: The study concludes that organizational health significantly benefits from strategically aligned HR practices, particularly those framed by the principles of SRPT. Psychological empowerment, as a facet of organizational health, serves as a mediating mechanism through which HR strategies influence job performance and organizational outcomes. Therefore, it is recommended that executive managers not only work toward cultivating a healthy organizational environment through appropriate policies and procedures but also prioritize employee empowerment initiatives. Empowered employees tend to exhibit higher levels of engagement, creativity, and commitment- attributes that are essential for navigating contemporary organizational challenges. Establishing a healthy organization requires more than structural changes; it calls for a paradigm shift in managerial thinking where human capital is positioned as the cornerstone of strategic success. By embedding SRPT into HR strategy formulation, organizations can develop a dynamic and adaptive workforce capable of sustaining performance in volatile and complex environments. In practical terms, the findings encourage HR professionals and organizational leaders to re-evaluate traditional HR approaches and adopt a more flexible, reference-point-driven methodology. This approach allows HR strategy to be continuously refined based on performance feedback, market changes, and internal benchmarks, ensuring alignment with organizational health goals. Ultimately, a well-calibrated HR strategy informed by SRPT serves not just as a functional necessity, but as a strategic imperative for building resilient, high-performing organizations.