Does Firm Size Affect HRM Formality in Organizations?

Abstract

There have been many researches on the human resource management (HRM) in organizations. But the degree to which human resource management (HRM) has been formalized is still relatively unknown, as well as how this formalization relates to organizational performance. The aim of this paper is to identify the relationship between firm size, HRM formality and organizational performance. The findings of this paper contribute to existing research by further clarifying the relationship between HRM formality and organizational performance. This paper identifies that changes in the size of the organization affect the degree of HRM formalization in the organizations. This study also finds that the effect of HRM formality on organization's performance becomes larger when the firms are larger in size.