The estimated path diagram for the proposed HRM - performance link framework
(presented in Figure 1) is presented in Figure 2. The boxes represent exogenous or
endogenous observed variables and the circles represent the related latent
variables. The light arrows indicate the observed variables that constitute the
related latent variables and the bold arrows indicate the structural relationships
between the corresponding variables. The numbers that are assigned to each arrow
show the significant estimated standardised coefficients. We must remind here that
in order to keep the model as simple as possible without loosing its validity, we
followed Paawue and Richardson (1997) and we did not group the HRM policies into
their relevant areas of resourcing, development, rewards, and relations, and the
HRM outcomes into their relevant areas of skills, attitudes, and behaviours