From Organizational Culture to Efficiency in People Management: Development and Validation of the People Management Efficiency Scale (PMES)

This study investigates people management efficiency as a multidimensional organizational capability, contributing to the broader discussion on how organizational culture and internal processes are associated with management effectiveness as a socially embedded organizational outcome beyond formal institutional arrangements. A sequential exploratory mixed-methods design was employed, comprising three interrelated studies. Study 1 involved semi-structured interviews with 15 auditors to identify the key dimensions of people management. Study 2 used cognitive interviews with 28 professionals to refine and validate the measurement items. Study 3 consisted of a survey administered to 286 employees, aiming to validate the People Management Efficiency Scale (PMES) and to test a parallel mediation model. Exploratory and confirmatory factor analyses supported a stable five-dimensional structure. The results show that organizational culture is positively associated with people management efficiency, both directly and indirectly, with work organization and continuous improvement operating as statistically significant mediating variables within the tested model. No statistically significant differences were identified between certified and non-certified organizations in terms of people management efficiency, work organization, and transparency. However, statistically significant differences were observed for organizational culture and continuous improvement. Overall, the findings suggest that people management efficiency is closely associated with the alignment between cultural values and internal organizational practices as socially embedded processes. These results highlight the relevance of internal organizational mechanisms in shaping people management outcomes. Given the simplified operationalization of certification in the present study, the findings should be interpreted with caution and do not support definitive comparative conclusions between culture-driven processes and formal certification mechanisms.