The interaction between HRM practices and organizational performance in different national cultures: an essay of structural equations modeling

Abstract

Understanding how human resources (HR) practices interact with organizational performance, and how they are perceived and adopted in different cultural contexts, is crucial to the success of organizations in an era of globalization and workplace diversity. In order to examine how HR practices fluctuate according to the national context and thus influence the effectiveness of structures, a survey was conducted among companies of different nationalities. Therefore, five key HRM practices were analyzed: recruitment, compensation, training, evaluation, and communication.

The results announced in this work highlight significant differences in the adoption of HRM practices from one country to another in close interaction with the performance of organizations. These findings underscore the need for organizations to adapt their human resources strategies to local values and preferences, rather than adopt a singular approach.

The article also reveals that the HR practices implemented are subject to various cultural factors, indicating that the importance of holding and the maturity of global markets influence their notoriety. By recognizing its intercultural implications, organizations can develop human resource strategies that support employee engagement, motivation and productivity in various international contexts.