Progressive human resource management and firm performance Empirical evidence from Indian context

Purpose This study aims to examine the adoption and efficacy level of progressive human resource management (HRM) practices in various organizations operating in India. Design/methodology/approach Primary data based on 615 respondents from 103 domestic firms and 116 foreign multinational corporations (MNCs) operating in India were gathered and analyzed using statistical techniques like t-test, confirmatory factor analysis and structural equation modeling. Findings The results reveal that the adoption of progressive HRM practices in form of self-managed teams, flexibility to work flexible hours, use of online mediums to invite applicants, selection of candidates using assessment center and integrity test, performance based incentives, flexible benefits, facility of e-learning and innovative management development programs is positively related to firm performance in Indian context. Using institutional and cultural perspective, the findings have also demonstrated that their exist differences in adoption of progressive HRM practices between foreign MNCs and domestic firms. Originality/value By exploring the differences between domestic and foreign MNCs, this study has offered some key insights on the extent of adoption and operationalization of progressive HRM in current Indian business environment.