ABSTRACT

The term human resource management (HRM) system was coined in the USA (e.g. Pfeffer and Veiga, 1999) and denotes a bundle of HRM practices (Macduffie, 1995) or systems (Bamberger and Meshoulam, 2000) that are linked with higher performance and employee commitment, which, in turn, leads to higher profits for firms (e.g. Huselid, 1995). However, empirical studies of HRM systems have largely been limited to the Western context of relatively stable institutional economic, political, and social environments. Little empirical research on Latin America has been conducted, with the exception of studies presented in two special journal issues (Elvira and Davila, 2005a; Davila and Elvira, 2007) and a book on Latin America (Elvira and Davila, 2005b).