How organizational culture and HRM practices affect organizational performance in Greece and Scandinavia

Abstract

Purpose: The intense competition among firms and their need to respond effectively to the constant changing operational conditions, as well as employees' requirements has escalated the necessity to identify the factors that affect organisational performance. The aim of this paper is to examine the interrelations between organizational culture-related dimensions (proactivity, obligation towards others, responsibility seeking, participation) and human resource management practices- related dimensions (job design, supervisory practices, reward system) and their impact on organizational performance in different countries, such as Greece and Scandinavia.

Design/Methodology/Approach: A new research model that examines the relationships between the variables of Organisational Culture, Human Resource Management Practices and their impact on Organizational Performance.

Findings: Based on the appropriate research model we develop and test hypotheses that show the relationship between Organizational Culture, Human Resource Management practices and their impact on Organizational Performance in different countries such as Greece and Scandinavia. Moreover, it presents some practical implications for the companies which may assist them to increase their organizational performance.

Research Limitations: A potential limitation of this study is that it is not focused only on one business sector.

Originality/Value: There has not been much research comparing these specific countries, which makes it worthwhile to explore the similarities or differences that may exist. Most importantly, these differences are examined under the light of different environmental forces, such as organisational culture, human resource management practices which are analyzed in depth. Give us comprehensive insights on their impact on organisational performance in different areas. Also, this research presents some practical implications for companies. Managers who are aware of the HRM practices which are more effective can contribute to enhance organizational performance. Some preliminary results show that proper job design, empowering supervision, reward allocation drive employees' satisfaction, that raises work efficiency which in turn increases organizational performance. Though strict supervision reduces employees' satisfaction and productivity.