The Logic of Internal HRM Consistency: The Synergic Effect of the Subfunctions' Advancement Levels on the Financial Performance Results of MNCs

Abstract

For the last few decades, the relationships between the HRM advancement level and organizational performance results have been studied both theoretically and empirically in many various ways. However, only a few of those studies incorporated the logic and synergy of internal HRM consistency from the Central European (CE) perspective. Hence the main goal of the paper is to determine in what way the coherence of the advancement levels of HRM subfunctions may influence the performance financial results of MNCs headquartered in CE. Consequently, the identification and analysis of the relationships between the advancement levels of HRM subfunctions (independent variables) and the financial performance results of local subsidiaries of MNCs (dependent variable) makes the research problem. The HRM subfunctions covered: employee resourcing, employee retention, engagement & satisfaction, performance appraisal, career development, talent management, competency management, development of leadership, employer branding. The research sample comprised 200 CE headquarters (HQs) of MNCs and their local subsidiaries. The correlational analysis proves that there are some identifiable and statistically significant correlations between dependent and independent variables. The major conclusion is, excluding employer branding, that the higher the advancements level of HRM subfunctions and the stronger the associations between these levels - the better the financial performance results of foreign subsidiaries of MNCs. Additionally, the research findings confirm that the logic of maintaining internal HRM consistency within the high advancement levels of its particular subfunctions may result in their positive synergic impact on the company's performance.