Multi-level fit: an integrative framework for understanding hrm practices in cross-cultural contexts

In recent years, theory and research have been increasingly devoted to understanding organizational behavior in cross-cultural and global contexts, with particular attention being paid to the appropriateness of various human resources management (HRM) practices because practices that may be effective within one cultural context may not be effective in other cultural contexts. This chapter argues that a multi-level perspective is needed to explain the interplay between HRM practices and employee responses across cultural contexts. Specifically, the multi-level framework developed in this chapter elucidates the importance of fit between HRM practices, individual values, organizational values, and societal values. Societal values play a key role in the adoption of HRM practices, and the effectiveness of these HRM practices will depend largely on “fit” or alignment with the values of the societal culture in which the organization is operating. HRM practices also shape the collective responses of employees through organizational climate at the organizational level and through psychological climate at the individual level. For positive employee attitudes and responses to emerge, the climate created by the HRM practices must be aligned with societal and individual values. Building on these notions, the strength of the societal culture in which the organization is operating serves as a mechanism that links relationships between climate, value fit, and attitudes across levels of analysis. The chapter concludes with some recommendations for future research and implications for practice.