Evaluating the Effects of HRM Practices on Employee Engagement and Organizational Culture

Abstract

Human resource management (HRM) is a critical field in business and organizations, and practices in this field can significantly influence employee engagement and organizational culture. The paper proposes a model for evaluating the effects of HRM practices on employee commitment and organizational culture. The empirical study in which the model is tested was carried out among 294 employees from Romanian organizations who answered the questionnaire questions. Structural equation modeling was used to process the data and obtain the results. HRM practices can directly influence employee engagement and organizational culture. Involving employees in the decision-making process, offering opportunities for career development, properly managing labor relations, and promoting diversity and inclusion are HRM practices that can increase employee engagement and develop a positive organizational culture. The study has important managerial implications by highlighting HRM practices that substantially affect employee engagement and organizational culture. Employees more involved and loyal to the organization are more likely to respect its values and goals, so the organizational culture becomes more substantial and better defined. Therefore, organizations must implement HRM practices that help increase employee engagement and develop a more robust and better-defined organizational culture.