The relationship among human resource management, organizational culture, and organizational performance

This study examines how strategic human resource management (HRM) practices and organizational cultures influence organizational performance, and, specifically, individual employee job satisfaction. Although previous research in general business literature has investigated the relationship among HRM practices, organizational culture, and organizational outcomes, little research is available that has examined the relationship in the health care field. This study was conducted in the hospital industry with data collected by Press Ganey Associates in 2002-2003. A strategic HRM questionnaire was developed to survey hospital executives in the Press Ganey dataset to determine to what extent strategic HRM practices were implemented in the participating hospitals.; Hierarchical linear modeling was used to test how organizational cultures and strategic HRM practices affect individual employee job satisfaction. The units of analysis were obtained at two levels: individual employee data in the Press Ganey dataset (employee job satisfaction and perceptions of job attributes) and organizational data (strategic HRM practices and perceptions of organizational culture aggregated at the hospital level). Results indicated that some dimensions of progressive organizational cultures and strategic HRM practices may play a role in improving organizational outcomes.