Analyzing the impact of HRM Systems on the organizational climate, culture and outcomes: the mediating role of HMR strength, organizational climate and culture

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and EconomicsIt is the propose of this study to (1) analyze the impact of the Human Resource Management (HRM) content (i.e. practices) in the organizational climate, culture, and performance; (2) assess the influence of the HRM process (i.e. HRM Strength) as a mediator in the link between HRM content and the organizational climate, culture, and performance; and (3) investigate the mediating roles of climate and culture in the HRM-performance link. The proposed model was tested using a sample of 80 questionnaires, where 63 were responses from non-supervisory employees and 17 from supervisors, from 2 Hospitals. HRM practices were grouped into 4 bundles, through an exploratory factor analysis – Training, Internal Recruitment, Merit Compensation, and Participation & Job Stability. From these HRM bundles, Merit Compensation and Participation & Job Stability, were shown to have a significant impact on proximal outcomes. Specifically, Participation & Job Stability was associated with Organizational Citizenship Behavior, Merit Compensation was associated with Work Engagement, and both HRM bundles were associated with Innovative Behavior. The mediation effect was only visible in the case of Innovation & Flexibility and Reflexivity for the relation between Merit Compensation and Innovative Behavior, and only Innovation & Flexibility demonstrated to mediate the relation between Merit Compensation and Work Engagement. No mediation effects were found concerning HRM Strength. Both Merit Compensation and HRM Strength were found to have a significant association with all the climate dimensions except for Formalization