Human capital-demo graphic diversity in the relationship between HRM practices and finn performance: The Spanish case

Abstract

The purpose of this research is to analyze the moderating effect that the demographic diversity of employees may have on the relationship between HRM practices and business performance. Using a sample of more than one hundred Spanish companies, we carried out a factor analysis principal axis factoring with varimax rotation on the identified HRM practices and perceived organizational performance as factors with good factor loadings, consistent with the proposed model. Our findings indicate that the demographic diversity of employees, such as "age" and "gender", conditions the effects of HRM practices on organizational performance. This research contributes to meeting the demand for studies including moderating variables between HR policies and practices and business performance. The literature pays little attention to non-linear models. Examining the factors determining demographic diversity sheds more light on the black box of the relationship between human practices and organizational performance. This study used a cross-sectional sample which limits the conclusions regarding the findings. © Medwell Journals, 2016.