Abstract
Based on 101 foreign firms operating in Russia, the effect of human resource management (HRM) on firm performance in Russia is investigated. This is accomplished by developing and testing a model including HR outcomes (motivation, retention and development) as a mediating variable between HRM practices and firm performance. Our study provides some support for the use of HRM outcomes as a mediating variable between HRM practices and firm performance. The results also indicate that non-technical 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 non-managerial employees. Thus, our study provides support for the importance of including both managers and non-managers in the same study, but treating them separately. In addition, results indicate a direct positive relationship between managerial promotions based on merit and firm performance for managers and job security and performance for non-managers.