Systematic Literature Review on Human Resource Management Effect on Organization Performance

Published: Feb 22, 2023

Abstract:

Purpose: The current study is the outcome of a thorough evaluation of the literature on functionalism in human resource management as it relates to organizational performance. It examines the role of human resource management and looks into various issues with human resource management in firms in such situations.

Research Methodology: The theoretical underpinnings are accomplished through a systematic review and subsequent thematic content analysis of literature, including reports from published literature and research papers that have been published. These were critically examined, and the best matching documents were then carefully chosen for inclusion to reach a conclusion.

Result: The result emphasizes the necessity for human resource management managers to implement cutting-edge strategies for faculty and staff empowerment so they may traverse the fast-changing environment and perform to their full potential against the odds. To engage stakeholders in amicably avoiding recalcitrance, a conceptual qualitative framework is established and recommended for the functionalism of tailored human resource management. This approach can help managers of human resources find opportunities during this crisis and help them come to significant conclusions about how to address issues and create a positive culture.

Limitation: Risks of bias such as selection bias, insufficient blinding, attrition bias, and selective outcome reporting may be among the limitations.

Future Implications: By working together to overcome predicted difficulties, this framework can help an educational leader manage stakeholders' expectations and benefit academics and practitioners alike.

Novelty: Research novelty was a brand-new concept that might result in new knowledge or contribute to already-existing knowledge.

Keywords:
1. Human Resource Management
2. Functionalism
3. Organization Performance
4. Systematic Literature Review
Authors:
1 . Metasebia Adula
2 . Shashi Kant
3 . Zerihun Ayenew Birbirsa
How to Cite
Adula , M., Kant, S., & Ayenew Birbirsa, Z. (2023). Systematic Literature Review on Human Resource Management Effect on Organization Performance. Annals of Human Resource Management Research, 2(2), 131–146. https://doi.org/10.35912/ahrmr.v2i2.1418

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References

    Abukhader, K., & Onba??o?lu, D. (2021). The effects of total quality management practices on employee performance and the effect of training as a moderating variable. Uncertain Supply Chain Management, 9(3), 521-528.

    Adula, M., & Kant, S. (2022a). Examining Entrepreneurship Significant Factors affecting the Performance of MSE’s in Ethiopia, Horn of Africa. International Journal of Law Policy and Governance, 1(1), 24-32.

    Adula, M., & Kant, S. (2022b). Interpretative Phenomenological Perceptional Study of Women Entrepreneurs Facing Challenges in Entrepreneurial Activity in the Horn of Africa. Journal of Entrepreneurship, Management, and Innovation, 4(2), 321-335.

    Alshammari, A. A. (2020). The impact of human resource management practices, organizational learning, organizational culture and knowledge management capabilities on organizational performance in Saudi organizations: a conceptual framework. Revista Argentina de Clínica Psicológica, 29(4), 714.

    Amegayibor, G. K. (2021). The effect of demographic factors on employees’ performance: A case of an owner-manager manufacturing firm. Annals of Human Resource Management Research, 1(2), 127-143.

    Anwar, G., & Abdullah, N. N. (2021). The impact of Human resource management practice on Organizational performance. International journal of Engineering, Business and Management (IJEBM), 5.

    Asefa, K., & Kant, S. (2022). Transactional Academic Leadership Effect on Employee’s Engagement: the Mediating Impact of Extrinsic Motivation. Partners Universal International Research Journal, 1(4), 54-62.

    Azizi, M. R., Atlasi, R., Ziapour, A., Abbas, J., & Naemi, R. (2021). Innovative human resource management strategies during the COVID-19 pandemic: A systematic narrative review approach. Heliyon, 7(6), e07233.

    Bie?kowska, A., Koszela, A., Sa?amacha, A., & Tworek, K. (2022). COVID-19 oriented HRM strategies influence on job and organizational performance through job-related attitudes. PloS one, 17(4), e0266364.

    Bizri, R., Wahbi, M., & Al Jardali, H. (2021). The impact of CSR best practices on job performance: The mediating roles of affective commitment and work engagement. Journal of Organizational Effectiveness: People and Performance.

    Carnevale, J. B., & Hatak, I. (2020). Employee adjustment and well-being in the era of COVID-19: Implications for human resource management. Journal of Business Research, 116, 183-187.

    Chompunuch, S. (2019). Exploring and Modeling the Concept of Team Creativity. Proceedings of the AIMS GT Innovation, Grenoble, France, 17-18.

    Collins, C. J. (2021). Expanding the resource based view model of strategic human resource management. The International Journal of Human Resource Management, 32(2), 331-358.

    Danilwan, Y., & Dirhamsyah, I. P. (2022). The Impact of The Human Resource Practices on The Organizational Performance: Does Ethical Climate Matter? Journal of Positive School Psychology, 6(3), 1–16-11–16.

    Emmanuel, O. O. (2021). The dynamics of work environment and its impact on organizational objectives. Annals of Human Resource Management Research, 1(2), 145-158.

    Forozandeh, M. (2022). Optimizing the Banking Service System Using Queue Theory, Fuzzy DEMATEL and TOPSIS Approach: Case Study. Annals of Human Resource Management Research, 2(2), 87-104.

    Gomes, J. F., Sabino, A., & Antunes, V. (2023). The Effect of Green Human Resources Management Practices on Employees’ Affective Commitment and Work Engagement: The Moderating Role of Employees’ Biospheric Value. Sustainability, 15(3), 2190.

    Halid, H., Yusoff, Y. M., & Somu, H. (2020). The relationship between digital human resource management and organizational performance. Paper presented at the First ASEAN Business, Environment, and Technology Symposium (ABEATS 2019).

    Huettermann, H., & Bruch, H. (2019). Mutual gains? Health?related HRM, collective well?being and organizational performance. Journal of Management studies, 56(6), 1045-1072.

    Irani, F., Kiliç, H., & Adeshola, I. (2022). Impact of green human resource management practices on the environmental performance of green hotels. Journal of Hospitality Marketing & Management, 31(5), 570-600.

    Jacob, B. J., & Bajama, S. Y. (2022). Impact of human resource management on organizational performance in Nigeria: Nigeria breweries Kaduna plc as a case study. SocioEconomic Challenges, 6(3), 123-131.

    Kant, S., & Adula, M. (2022). Mediation Effect Of Customer Satisfaction Between Promotion Mix Elements And Customer Buying Behavior In Education Sector Of Ethiopia. International Journal of Islamic Business and Management Review, 2(2), 174-181.

    Kant, S., & Asefa, K. (2022). TRANSFORMATIONAL EDUCATIONAL LEADERSHIP EFFECT ON STAFF MEMBERS ENGAGEMENT: THE MEDIATING IMPACT OF INTRINSIC MOTIVATION. International Journal of Business and Management (IJBM), 1(2), 35-49.

    Kant, S., & Tufa, G. (2022). Reviewing Relevance of Leadership Styles on Leadership Outcomes: An Epistemological Study of Bule Hora Town, Oromia Regional State, Ethiopia, Horn of Africa. Horn of Africa.

    Katou, A. A., Budhwar, P. S., & Patel, C. (2021). Line manager implementation and employee HR attributions mediating mechanisms in the HRM system—Organizational performance relationship: A multilevel and multipath study. Human Resource Management Journal, 31(3), 775-795.

    Khan, S., & Abdullah, N. N. (2019). The impact of staff training and development on teachers’ productivity. Economics, Management and Sustainability, 4(1), 37-45.

    Khancharovna, F. M. (2022). The Importance of The Application of Human Resources Management in The Management of Public Sector. Integration of science, education and practice. Scientific-Methodical Journal, 3(2).

    Komakech, E., Obici, G., & Mwesigwa, D. (2021). Efficacy of inspirational motivation on the performance of public health workers in mid-north of Uganda. Annals of Human Resource Management Research (AHRMR), 1(2), 85-97.

    Libert, K., Mosconi, E., & Cadieux, N. (2020). Human-machine interaction and human resource management perspective for collaborative robotics implementation and adoption.

    Lombardi, R., Manfredi, S., Cuozzo, B., & Palmaccio, M. (2020). The profitable relationship among corporate social responsibility and human resource management: A new sustainable key factor. Corporate Social Responsibility and Environmental Management, 27(6), 2657-2667.

    Mousa, S. K., & Othman, M. (2020). The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework. Journal of cleaner production, 243, 118595.

    Nadeem, K., Riaz, A., Iftikhar, Y., Ahmad, M. B., & Shamshad, W. (2019). Influence of high-performance work system on employee service performance and OCB: The mediating role of psycap. International Economics and Business, 5(2), 1-21.

    Nyathi, M., & Kekwaletswe, R. (2022). Realizing employee and organizational performance gains through electronic human resource management use in developing countries. African Journal of Economic and Management Studies (ahead-of-print).

    Othman, M., & Abdullah, N. N. (2016). The conceptual assessment of Malaysian entrepreneurship environment and EO economic contribution. Othman, M., Saud, MB, Mat Isa, MA, & Abdullah, NN (2015). The Conceptual Assessment of Malaysian Entrepreneurship Environment and EO Economic Contribution. Journal of Resources Development and Management, 20, 15-20.

    Pham, N. T., Thanh, T. V., Tu?ková, Z., & Thuy, V. T. N. (2020). The role of green human resource management in driving hotel’s environmental performance: Interaction and mediation analysis. International Journal of hospitality management, 88, 102392.

    Prabhu, M., Abdullah, N. N., Ahmed, R. R., Nambirajan, T., & Pandiyan, S. (2020). Segmenting the manufacturing industries and measuring the performance: using interval-valued triangular fuzzy TOPSIS method. Complex & Intelligent Systems, 6, 591-606.

    Pradhan, G. M. (2022). Impact of reward systems on employee performance of service sector institutions in Nepal. The Batuk, 8(2), 1-13.

    Seran, E. R., Kase, P., & Nursalam, N. (2022). The effect of competence, workload, and incentives on the interest of civil servants to become commitment-making officials in Malaka Regency. Annals of Human Resource Management Research, 2(1), 15-30.

    Susanto, Y., & Rambano, D. (2022). The Role of HRM Factors in Improving Performance Analysis of Local Government Financial Reports. Golden Ratio of Human Resource Management, 2(2), 98-107.

    Tensay, A. T., & Singh, M. (2020). The nexus between HRM, employee engagement and organizational performance of federal public service organizations in Ethiopia. Heliyon, 6(6), e04094.

    Thathsara, A., & Sutha, J. (2021). Investigating the influence of e-hrm practices on organizational performance: The mediating role of organizational agility (with special reference to financial institution). International Journal of Engineering and Management Research (IJEMR), 11(1), 1-8.

    Usmani, S., Ajonbadi, H., & Mordi, C. (2022). Cultural Perspectives on Intrinsic Motivation and HRM Practices in Pakistan. HRM in the Global South: A Critical Perspective, 283-315.

    Zhao, H., & Zhou, Q. (2021). Socially responsible human resource management and hotel employee organizational citizenship behavior for the environment: A social cognitive perspective. International Journal of hospitality management, 95, 102749.

  1. Abukhader, K., & Onba??o?lu, D. (2021). The effects of total quality management practices on employee performance and the effect of training as a moderating variable. Uncertain Supply Chain Management, 9(3), 521-528.
  2. Adula, M., & Kant, S. (2022a). Examining Entrepreneurship Significant Factors affecting the Performance of MSE’s in Ethiopia, Horn of Africa. International Journal of Law Policy and Governance, 1(1), 24-32.
  3. Adula, M., & Kant, S. (2022b). Interpretative Phenomenological Perceptional Study of Women Entrepreneurs Facing Challenges in Entrepreneurial Activity in the Horn of Africa. Journal of Entrepreneurship, Management, and Innovation, 4(2), 321-335.
  4. Alshammari, A. A. (2020). The impact of human resource management practices, organizational learning, organizational culture and knowledge management capabilities on organizational performance in Saudi organizations: a conceptual framework. Revista Argentina de Clínica Psicológica, 29(4), 714.
  5. Amegayibor, G. K. (2021). The effect of demographic factors on employees’ performance: A case of an owner-manager manufacturing firm. Annals of Human Resource Management Research, 1(2), 127-143.
  6. Anwar, G., & Abdullah, N. N. (2021). The impact of Human resource management practice on Organizational performance. International journal of Engineering, Business and Management (IJEBM), 5.
  7. Asefa, K., & Kant, S. (2022). Transactional Academic Leadership Effect on Employee’s Engagement: the Mediating Impact of Extrinsic Motivation. Partners Universal International Research Journal, 1(4), 54-62.
  8. Azizi, M. R., Atlasi, R., Ziapour, A., Abbas, J., & Naemi, R. (2021). Innovative human resource management strategies during the COVID-19 pandemic: A systematic narrative review approach. Heliyon, 7(6), e07233.
  9. Bie?kowska, A., Koszela, A., Sa?amacha, A., & Tworek, K. (2022). COVID-19 oriented HRM strategies influence on job and organizational performance through job-related attitudes. PloS one, 17(4), e0266364.
  10. Bizri, R., Wahbi, M., & Al Jardali, H. (2021). The impact of CSR best practices on job performance: The mediating roles of affective commitment and work engagement. Journal of Organizational Effectiveness: People and Performance.
  11. Carnevale, J. B., & Hatak, I. (2020). Employee adjustment and well-being in the era of COVID-19: Implications for human resource management. Journal of Business Research, 116, 183-187.
  12. Chompunuch, S. (2019). Exploring and Modeling the Concept of Team Creativity. Proceedings of the AIMS GT Innovation, Grenoble, France, 17-18.
  13. Collins, C. J. (2021). Expanding the resource based view model of strategic human resource management. The International Journal of Human Resource Management, 32(2), 331-358.
  14. Danilwan, Y., & Dirhamsyah, I. P. (2022). The Impact of The Human Resource Practices on The Organizational Performance: Does Ethical Climate Matter? Journal of Positive School Psychology, 6(3), 1–16-11–16.
  15. Emmanuel, O. O. (2021). The dynamics of work environment and its impact on organizational objectives. Annals of Human Resource Management Research, 1(2), 145-158.
  16. Forozandeh, M. (2022). Optimizing the Banking Service System Using Queue Theory, Fuzzy DEMATEL and TOPSIS Approach: Case Study. Annals of Human Resource Management Research, 2(2), 87-104.
  17. Gomes, J. F., Sabino, A., & Antunes, V. (2023). The Effect of Green Human Resources Management Practices on Employees’ Affective Commitment and Work Engagement: The Moderating Role of Employees’ Biospheric Value. Sustainability, 15(3), 2190.
  18. Halid, H., Yusoff, Y. M., & Somu, H. (2020). The relationship between digital human resource management and organizational performance. Paper presented at the First ASEAN Business, Environment, and Technology Symposium (ABEATS 2019).
  19. Huettermann, H., & Bruch, H. (2019). Mutual gains? Health?related HRM, collective well?being and organizational performance. Journal of Management studies, 56(6), 1045-1072.
  20. Irani, F., Kiliç, H., & Adeshola, I. (2022). Impact of green human resource management practices on the environmental performance of green hotels. Journal of Hospitality Marketing & Management, 31(5), 570-600.
  21. Jacob, B. J., & Bajama, S. Y. (2022). Impact of human resource management on organizational performance in Nigeria: Nigeria breweries Kaduna plc as a case study. SocioEconomic Challenges, 6(3), 123-131.
  22. Kant, S., & Adula, M. (2022). Mediation Effect Of Customer Satisfaction Between Promotion Mix Elements And Customer Buying Behavior In Education Sector Of Ethiopia. International Journal of Islamic Business and Management Review, 2(2), 174-181.
  23. Kant, S., & Asefa, K. (2022). TRANSFORMATIONAL EDUCATIONAL LEADERSHIP EFFECT ON STAFF MEMBERS ENGAGEMENT: THE MEDIATING IMPACT OF INTRINSIC MOTIVATION. International Journal of Business and Management (IJBM), 1(2), 35-49.
  24. Kant, S., & Tufa, G. (2022). Reviewing Relevance of Leadership Styles on Leadership Outcomes: An Epistemological Study of Bule Hora Town, Oromia Regional State, Ethiopia, Horn of Africa. Horn of Africa.
  25. Katou, A. A., Budhwar, P. S., & Patel, C. (2021). Line manager implementation and employee HR attributions mediating mechanisms in the HRM system—Organizational performance relationship: A multilevel and multipath study. Human Resource Management Journal, 31(3), 775-795.
  26. Khan, S., & Abdullah, N. N. (2019). The impact of staff training and development on teachers’ productivity. Economics, Management and Sustainability, 4(1), 37-45.
  27. Khancharovna, F. M. (2022). The Importance of The Application of Human Resources Management in The Management of Public Sector. Integration of science, education and practice. Scientific-Methodical Journal, 3(2).
  28. Komakech, E., Obici, G., & Mwesigwa, D. (2021). Efficacy of inspirational motivation on the performance of public health workers in mid-north of Uganda. Annals of Human Resource Management Research (AHRMR), 1(2), 85-97.
  29. Libert, K., Mosconi, E., & Cadieux, N. (2020). Human-machine interaction and human resource management perspective for collaborative robotics implementation and adoption.
  30. Lombardi, R., Manfredi, S., Cuozzo, B., & Palmaccio, M. (2020). The profitable relationship among corporate social responsibility and human resource management: A new sustainable key factor. Corporate Social Responsibility and Environmental Management, 27(6), 2657-2667.
  31. Mousa, S. K., & Othman, M. (2020). The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework. Journal of cleaner production, 243, 118595.
  32. Nadeem, K., Riaz, A., Iftikhar, Y., Ahmad, M. B., & Shamshad, W. (2019). Influence of high-performance work system on employee service performance and OCB: The mediating role of psycap. International Economics and Business, 5(2), 1-21.
  33. Nyathi, M., & Kekwaletswe, R. (2022). Realizing employee and organizational performance gains through electronic human resource management use in developing countries. African Journal of Economic and Management Studies (ahead-of-print).
  34. Othman, M., & Abdullah, N. N. (2016). The conceptual assessment of Malaysian entrepreneurship environment and EO economic contribution. Othman, M., Saud, MB, Mat Isa, MA, & Abdullah, NN (2015). The Conceptual Assessment of Malaysian Entrepreneurship Environment and EO Economic Contribution. Journal of Resources Development and Management, 20, 15-20.
  35. Pham, N. T., Thanh, T. V., Tu?ková, Z., & Thuy, V. T. N. (2020). The role of green human resource management in driving hotel’s environmental performance: Interaction and mediation analysis. International Journal of hospitality management, 88, 102392.
  36. Prabhu, M., Abdullah, N. N., Ahmed, R. R., Nambirajan, T., & Pandiyan, S. (2020). Segmenting the manufacturing industries and measuring the performance: using interval-valued triangular fuzzy TOPSIS method. Complex & Intelligent Systems, 6, 591-606.
  37. Pradhan, G. M. (2022). Impact of reward systems on employee performance of service sector institutions in Nepal. The Batuk, 8(2), 1-13.
  38. Seran, E. R., Kase, P., & Nursalam, N. (2022). The effect of competence, workload, and incentives on the interest of civil servants to become commitment-making officials in Malaka Regency. Annals of Human Resource Management Research, 2(1), 15-30.
  39. Susanto, Y., & Rambano, D. (2022). The Role of HRM Factors in Improving Performance Analysis of Local Government Financial Reports. Golden Ratio of Human Resource Management, 2(2), 98-107.
  40. Tensay, A. T., & Singh, M. (2020). The nexus between HRM, employee engagement and organizational performance of federal public service organizations in Ethiopia. Heliyon, 6(6), e04094.
  41. Thathsara, A., & Sutha, J. (2021). Investigating the influence of e-hrm practices on organizational performance: The mediating role of organizational agility (with special reference to financial institution). International Journal of Engineering and Management Research (IJEMR), 11(1), 1-8.
  42. Usmani, S., Ajonbadi, H., & Mordi, C. (2022). Cultural Perspectives on Intrinsic Motivation and HRM Practices in Pakistan. HRM in the Global South: A Critical Perspective, 283-315.
  43. Zhao, H., & Zhou, Q. (2021). Socially responsible human resource management and hotel employee organizational citizenship behavior for the environment: A social cognitive perspective. International Journal of hospitality management, 95, 102749.