Some of the assumptions made by the proponents of the strong version of HRM are tested, using social identity theory and group processes. In particular, the author explores the proposed link between the HRM characteristics integration, commitment, quality and flexibility and examines their relationships to employee satisfaction, intention to stay and organisational performance. Based on a survey conducted among bank employees, correlational and multiple regression analysis, both at individual and at branch level, confirm the connection between integration, commitment, quality and flexibility. Commitment emerges as the central variable. It is closely related to work satisfaction and intention to stay and, most importantly, makes a significant contribution to branch performance.