This paper examines the adoption of strategic human resource management (HRM) by for-profit and non-profit knowledge-intensive health services (HS) organisations in Australia. Survey data collected from senior executives is used to test the relationships between a strategic HRM model and firm performance. Path analysis found that, irrespective of whether for-profit or non-profit, adopting strategic HRM could increase organisational performance. Strategic HRM could be achieved through the cultivation of an external orientation to customers’ demands and an internal orientation highlighting commitment to employees. Public and non-profit organisations in the HS industry facing or undergoing health sector reform need to be aware of both of these orientations in order to adopt strategic HRM and improve their performance.<br /
