Relationships of HRM Functions, Chinese Culture and Employee Outcomes in Privately-owned SMEs in China

Purpose: This research investigates the role of selected human resource management (HRM) functions and the influence of Chinese culture on employee outcomes in privately-owned small and medium-sized enterprises (SMEs) in China. Design/Methodology/Approach: The study utilized a descriptive quantitative approach, in which a 5-point Likert scale questionnaire has been used during data collection. The research employs a regression model to analyze the relationship between selected HRM functions and employee outcomes using a sample of 308 respondents. The collected data were then analyzed using SPSS and the regression model to test the hypotheses. Findings: The results indicate that HRM functions, such as recruitment, performance management, reward management, learning and development, and HR planning, significantly contribute to positive employee outcomes. Interestingly, the study finds that Chinese culture moderates the connection between HRM functions and employee outcomes, thus emphasizing the importance of cultural factors in HRM strategies. Implications/Originality/Value: This study has added value to management literature and offers few practical managerial implications. It also provides valuable insights for SMEs in China, highlighting the necessity for culturally tailored HRM functions to achieve better employee outcomes