Comparative Study of Human Resource Management in Family Business v/s Normal Business

The primary purpose of this study is to examine and explain differences in the professional HRM practices between family and non-family owned and managed firms. A model is presented concerning direct and indirect effects of family firm characteristics on the use of professional HRM practices. This article investigates whether Human Resource Management is maintaining its national character or whether it is converging towards a model that potentially clashes with the country's traditional societal values. This issue fits in the wider convergence-divergence debate that has been the concern of many cross cultural researchers. The aim is to show how HRM practices of family business firms differ from those of HRM practices of normal business. The results indicate that HR practices in firms reflect national culture to a great extent. Moreover, they imply that in some areas MNC subsidiaries have realized a considerable degree of adaptation, embracing practices that are in line with organization's cultural environment.