HUMAN RESOURCE PRACTICES AND ORGANISATIONAL CULTURE EFFECTS ON ORGANIZATIONAL PERFORMANCE

Purpose: The present study addresses a central research question: Do human resource management practices fit with competitive strategy and organizational culture in the Greek contextual environment? If yes, does this alignment contribute to firm performance? We examined the following HR practices: (1) job security (2) selective hiring, (3) self-managed teams and decentralization of decision making (4) compensation policy, (5) extensive training, and (6) information sharing. We measured culture drawing on the Competing Values Framework Design/methodology/approach: We surveyed managing directors and HR managers in Greece sending structured questionnaires via fax and recorded their perceptions on HR practices and their relation to organizational performance. Survey took place during March-May 2010. Findings: Results provide insights from improving organisational culture in Mediterranean countries. Directions for further research are provided. Originality / Value: This study is uniquely focusing on the combined effect of culture and HR practices on organisational performance. In doing so, it sheds lights on the repercussions of different types of business culture on firm performance, as moderated and expressed by HR practices. This study has both theoretical and practical implications. Research limitations/implications will be thoroughly discussed in the research paper.