The Effects of Organizational Culture on Human Resources Management: A Study on Vietnamese Publicly Listed Enterprises

Abstract

The current study has investigated the impact of organizational culture on human resources (HR) management. Out of the 666 firms on Vietnam's two main stock exchanges, this research conducted a survey in 300 of these firms. A total of 600 observations were taken, as two observations from every firm were analyzed. However, there were only 412 viable replies. In order to evaluate the causal hypothesis, this research applied multiple regression analyses. The findings indicate that the involvement, consistency, adaptability, and mission of an organizational culture statistically affect HR management, which includes recruitment and selection procedures, training and development processes, compensation and reward systems, and performance appraising tools. Generally, organizational culture has the biggest effect on training and development and the smallest impact on recruitment and selection. This study will be useful for business executives in Vietnam and other developing economies in terms of business decisions and HR management in different organizational cultures. This will help executives to acquire a competitive advantage and achieve the best organizational performance. Contribution/Originality: This research is one of the first studies to provide statistical evidence for the effects of organizational culture on HR management in Vietnamese enterprises, as a developing nation. 1. INTRODUCTION Every enterprise's workforce is fundamental to its success, and the survival of this workforce depends predominantly on the sound management of the firm's human resources (HR). Enterprises have been facing more competitive business environments when trying to accomplish their objectives. Therefore, an enterprise should focus on the competence of its HR in order to enhance its organizational performance by decreasing expenses and innovating and improving services and products. In addition, organizational culture plays a vital role in the way workers in an enterprise behave, communicate, and work together to achieve organizational goals. Employees from different cultures work together to achieve a common objective. Therefore, HR management should be able to manage such differences in order to enable workers to reach their potential. The performance level of workers is Asian Economic and Financial Review