ABSTRACT
This chapter examines the relationship between human resource management (HRM) and foreign subsidiary performance in Russia. It investigates an important issue which firms can influence, their HRM practices. The chapter presents the literature by differentiating between HRM practices used for managerial and nonmanagerial employees. It also investigates whether or not same or different HRM practices for managers and non-managerial employees are associated with superior firm performance. HRM systems that successfully develop and engage employees to participate in company activities are likely to enhance the value and rareness of a company's human assets. The chapter analyses the HRM practices for managerial employees revealed three HRM dimensions: employee development; feedback systems, and pay/organization. The relatively weak support for the effects of HRM strategy alignment on organizational outcomes should come as no surprise as it is difficult to specify what constitutes good alignment in research across firms and industries.
