The effect of human resource management practices on firm performance in Russia

Based on 101 foreign firms operating in Russia, the effect of human resourc e management (HRM) on firm performance in Russia is investigated. This is a ccomplished by developing and testing a model including HR outcomes (motiva tion, retention and development) as a mediating variable between HRM practi ces and firm performance. (Sur study provides some support for the use of H RM outcomes as a mediating variable between HRM practices and firm performa nce. The results also indicate that nontechnical training and high salaries will have a positive impact on HR outcomes for managers while job security is the most important predictor of HR outcomes for nonmanagerial employees . Thus, our study provides support for the importance of including both man agers and non-managers in the same study, but treating them separately. In addition, results indicate a direct positive relationship between manageria l promotions based on merit and firm performance for managers and job secur ity and performance for non-managers.