Influence of Moderating Effect of People Strategy on Startegic 1 Human Resources Functions on Organizational Performance of 2 Insurance Industry of Sri Lanka 3

7 People strategy simply aim to establish best practice in each of the HR policy areas, there 8 have been attempts to describe people strategy as an internally coherent set of HR policies 9 and practices. This endeavor has proven to be both diﬀicult and elusive. As one might expect, 10 there appears to be no one single ideal type of people strategy with a set of HR policies and 11 practices that can be adopted by organizations seeking to manage their people more 12 strategically (Lynda Gratton, Catherine Truss, 2003). People of a firm is a strategic asset and 13 a very important element and the backbone of every firm (Anam, Rashi, Rad Mizana, 2013). 14 People strategy plays a critical role in harmonizing strategic human resource management 15 implementation in an organization (Linda Gratten, Catherine Truss, 2012).

1 Introduction 20 his study focusses on how key strategic HR functions go hand in hand in a business firm with its people or human 21 resources as the key driver of the firm with other resources both tangible and intangible then discuses about key 22 strategic HR functions and their impact on people strategy. The research further emphasizes and explains the 23 relevant and important of SHRM practice and specific business models. The human resource management strategy 24 is a set of inner-organizational people management strategies. The effective application of the human resource 25 management strategy in different situations can help enterprises use employees effectively for the completion 26 of organizational targets. According to definitions of the human resource management strategy made by many 27 scholars and experts, many researchers attempted to set types of the people management strategy 28 Shieh Chich-Jen and Tang Mei-Ling, 2010).Every firms' top priority is to manage the human resources. The level 29 become imperative in the firm because individuals need to be attracted on a timely basis, in sufficient numbers 105 with appropriate qualifications. 106 Firms staff as a pool of resources to be nurtured, developed, guarded, and allocated is one of the many ways 107 to turn the "Staff" dimension into firms performance dimension with management practice (Juilen & Phillips, 108 2014). 109 Dimensions of staff are mostly considered in one of ways. At the hard end of the dimensions, elements, 110 appraisals systems, pay scales, formal training programs, at the soft end, it is about staff morale, attitude, 111 motivation and behavior (Kogo and Linda, 2018).

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Human Resource Development plays significant role for a firm to compete with a changing business environment 132 and ultimate effect goes to firm's performance (Kenny S., Victoria, 2019). A clear line of sight is there between 133 unique and difficult-to-transfer employee skills and the firm's strength to continuously outperform competitors in 134 the marketplace (Kryscynski, D., & Ulrich, D., 2015). Firms invest huge amount on the human resource capital 135 because the performance of human resource will ultimately increase the performance of the employee and the 136 organization. Performance is a major multidimensional construct aimed to achieve results and has a strong link 137 to strategic goals of an organization (Raja, Furgual & Mohammed, 2011;Gambo, 2018).

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The business firms face a volatile market situation. In order to create and sustain competitive advantage in 164 this type of environment, organizations must continually improve their business performance. Increasingly, 165 organizations are recognizing the potential of their human resources as a source of sustained competitive 166 advantage. Linked to this, more and more organizations are relying on measurement approaches, such as 167 workforce scorecards, in order to gain insight into how the human resources in their organizations add value 168 (Iqbal, A., 2019).

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The increasing trend in measurement is further stimulated by a growing number of studies that show a positive 170 relationship between human resource management and organizational performance. The relationship between 171 HRM and firm performance has been a hotly debated topic over the last two decades, with the great bulk of the 172 primary scientific research coming from the USA and, to a lesser extent.

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In a world in which financial results are measured, a failure to measure human resource policy and practice 174 implementation dooms this to secondclass status, oversight, neglect, and potential failure. The feedback from 175 the measurements is essential to refine and further develop implementation ideas as well as to learn how well the 176 practices are actually achieving their intended results (Combs, J., Liu, Y., Hall, A., & Ketchen, D., 2006).    The statements are formulated as positive. Cronbach's alpha was 0.916.

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In this case, the hypothesis that the moderating effects of people strategy between skill, staff and shared value 252 style is significant and supported. Considering the results of SEM, this section answers the hypotheses developed 253 .Hypotheses were tested through the proposed final model of the study, which was developed by the final structural 254 model (Figure ??.6). Summary conclusions for the 12 hypothesized relationships are provided in Table ??.6. H1:

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There is a significant positive relationship between people strategy and organizational performance. Tests the 256 relationship between the Independent variable of people strategy and the dependent variable of organizational 257 performance. The results (Figure ??.6) show that there is a positive influence between people strategy and 258 organizational performance (?=0.15, p < 0.05).

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Recent theoretical studies in business strategy have indicated that firm competitive advantage could be 333 generated from a firm's people factor through creating value in a manner that is rare and difficult for competitors 334 to imitate (Barney, 2011). 335 c) The relationship between staff shared value and style is moderated by people strategy This hypothesis 336 examines and establishes that recent theoretical studies in business strategy have indicated that firm competitive 337 advantage could be moderated by firm's shared values and style could be moderated by people strategy with its 338 underpinning HR policies and processes, that an organization develops and implements for managing its people 339 to optimal effect. Every company should adapt a people strategy and simply aim to establish best practice in 340 each of the HR policy areas. There have been attempts to describe people strategy as an internally coherent 341 set of HR policies and practices. People strategy has proven to be both difficult and elusive. A firm might 342 expect, there appears to be no one single "type" of people strategy with a set of HR policies and practices that 343 can be adopted by organizations seeking to manage their people more strategically which drive towards a high ? Recruitment and retention: there is a perception that external candidates are often favored over internal for 365 vacancies so some staff look outside in order to progress. ? People in the right place -the right place operationally 366 to make best use of their skills and the right place psychologically and emotionally, in terms of how inspired they 367 feel by the Company and its mission. Selection. ? Design psychometric testing process to be used for recruitment and promotions. This is a method 370 that will be adopted for the measurement of the mind, thereby, giving the recruiters a better overall  .871 a) Staff There are five items (SAF1, SAF2, SAF3, SAF4, SAF5) in the SAF construct. The descriptive summary and Inter-item correlations values for items in SAF construct are depicted in Table 4.1 the Cronbach's alpha for SAF construct was 0.712, above the recommended cut-off 0.70 (De Vellis, 2003). The Inter item correlation matrix revealed the highest correlation values for SAF construct items were more than 0.3 (Hair, Figure 6: