Aligning Strategy and Leadership: Examining The Impact ofSHRM Practices on Employee Performance in Oman’s Banking Sector

Strategic human resource management is increasingly recognized as a foundation of organisational ‎competitiveness, yet limited evidence exists from the Arab Gulf region. This study examines the direct ‎influence of SHRM practices on employee performance in Oman’s banking sector. Grounded in the ‎resource-based view and the ability–motivation–opportunity framework, SHRM is conceptualized through ‎three dimensions: strategic recruitment, targeted training, and incentive systems. Data were collected from ‎‎346 non-managerial employees of the Central Bank of Oman and analyzed using structural equation ‎modeling with SmartPLS 4.0. The findings reveal that SHRM practices significantly improve employee ‎performance, underscoring the strategic value of human capital. The study contributes theoretically by extending the SHRM literature to a non-Western context and practically by offering insights for Omani banks to strengthen workforce effectiveness and competitiveness through strategically aligned HR practices.