A Review on the Impact of Human Resource Management Practices on Organizations' and Employees' Performance

Ghaleb Alharbi, Mastura Jaafar, Nurul Sakina Mokhtar Azizi

Abstract

Job performance is one of the most crucial factors which scholars have thoroughly addressed and debated to evaluate employee efficiency. The concept of human resource management (HRM) is a vital influencing factor in enhancing job performance and achieving efficient employee performance. This study aims to investigate how human resource management practices (HRMP) affect organizations' and employees' performance by reviewing the previous studies using the systematic literature review (SLR). The NVivo software was used to analyze the outcomes and findings of the literature review, discussion, and analysis. These studies addressed the relationship between HRMP and employees' performance. They evaluated the most influential variables on job performance. The findings of the reviewed studies showed that Human Resource Management Practices (HRMPs) significantly influence the performance of employees in an organization. Also, the application of HRMPs cannot be uniform worldwide. The extent to which HRMPs have been fully enforced or the emphasis on specific HRMPs differs based on the framework in which businesses or organizations usually function. In summary, most previous studies stated a significant impact of HRMP on job performance despite the debated relationship between HRMP and organizational and employee performance. Further studies on HRMPs across different societies and origins are vital.

 

Keywords: human resource management practices, job performance, employee efficiency, employee motivation.

 

https://doi.org/10.55463/issn.1674-2974.49.12.21


Full Text:

PDF


References


ABEYSEKERA R. The Impact of Human Resource Management Practices on Marketing Executives Turnover of Leasing Companies in Sri Lanka. Contemporary Management Research, 2007, 3(3): 233-252.

ABURUMMAN O., SALLEH A., OMAR K., and ABADI M. The impact of human resource management practices and career satisfaction on employee's turnover intention. Management Science Letters, 2020, 10(3): 641-652.

AHMAD S., and SCHROEDER R.G. The impact of human resource management practices on operational performance: recognising country and industry differences. Journal of Operations Management, 2003, 21(1): 19-43.

AKTAR A., and PANGIL F. Mediating role of organisational commitment in the relationship between human resource management practices and employee engagement: Does black box stage exist? International Journal of Sociology and Social Policy, 2018, 38(7-8): 606-636.

AL ADRESI A., and DARUN M.R. Determining relationship between strategic human resource management practices and organisational commitment. International Journal of Engineering Business Management, 2017, 9: 1-9.

ALBRECHT S.L., BAKKER A.B., GRUMAN J.A., MACEY W.H., and SAKS A.M. Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2015, 2(1): 7-35.

KATOU A.A., and BUDHWAR P.S. The effect of human resource management policies on organizational performance in Greek manufacturing firms. Thunderbird International Business Review, 2007, 49(1): 1-35.

ALI N., KAKAKHEL S.J., RAHMAN W., and AHSAN A. Impact of human resource management practices on employees outcomes (Empirical evidence from public sector Universities of Malakand Division, Khyber Pakhtunkhwa). Life Science Journal of Pakistan, 2014, 11(4): 68-77.

ALSAFADI Y., and ALTAHAT S. Human resource management practices and employee performance: the role of job satisfaction. The Journal of Asian Finance, Economics, and Business, 2021, 8(1): 519-529.

ALSAFADI Y., and ALTAHAT S. Human resource management practices and employee performance: the role of job satisfaction. The Journal of Asian Finance, Economics, and Business, 2021, 8(1): 519-529.

ALSHEIKH G.A.A., ALNAWAFLEH E.A.T., HALIM M.S.B.A., and TAMBI A.M.B.A. The impact of human resource management practices, organisational culture, motivation and knowledge management on job performance with leadership style as moderating variable in the Jordanian commercial banks sector. Journal of Reviews on Global Economics, 2017, 6: 477-488.

ALSHEIKH G.A.A., ALNAWAFLEH E.A.T., HALIM M.S.B.A., and TAMBI A.M.B.A. The impact of human resource management practices, organisational culture, motivation and knowledge management on job performance with leadership style as moderating variable in the Jordanian Commercial Banks Sector. Journal of Reviews on Global Economics, 2017, 6: 477-488.

AMIN M., ISMAIL W.K.W., RASID S.Z.A., and SELEMANI R.D.A. The impact of human resource management practices on performance: Evidence from a Public University. The TQM Journal, 2014, 26(2): 125-142.

BANDIBENO I.K., and NDONGO J.C.A. Human Resource Management Practices and the Social Performance of Decentralised Territorial Communities in Cameroon. Developing Worlds, 2017, 178(2): 139-154.

BARTEL A.P. Human Resource Management and Organizational Performance: Evidence from Retail Banking. Industrial and Labor Relations Review, 2004, 57(2): 181. https://doi.org/10.2307/4126616

BLUNT P., and JONES M. Human resource management in developing countries. Journal of the History of Economic Thought, 1991, 2(1): 3-5.

BON A.T., ZAID A.A., and JAARON A. Green human resource management, Green supply chain management practices and Sustainable performance. In: 8th 2018 International Conference on Industrial Engineering and Operations Management, Bandung, Indonesia, March, 6-8. 2018.

BOSELIE P., DIETZ G., and BOON C. Commonalities and contradictions in HRM and performance research. Human Resource Management Journal, 2005, 15(3): 67-94.

BUDHWAR P.S., and BOYNE G. Human resource management in the Indian public and private sectors: an empirical comparison. The International Journal of Human Resource Management, 2004, 15(2): 346-370.

CAILLIER J.G. Factors Affecting Job Performance in Public Agencies. Public Performance and Management Review, 2010, 34(2): 139-165.

CHAND M., and KATOU A.A. The impact of HRM practices on organisational performance in the Indian hotel industry. Employee Relations, 2007, 29(6): 576-594.

CHANG P.-L., and CHEN W.-L. The effect of human resource management practices on firm performance: Empirical evidence from high-tech firms in Taiwan. International Journal of Management, 2002, 19(4): 622-631.

COBANOGLU F., SERTEL G., and SARKAYA S.S. Human resource management practices in Turkish education system (Denizli case). European Journal of Educational Research, 2018, 7(4): 833-847.

COOPER B., WANG J., BARTRAM T., and COOKE F.L. Well‐being‐oriented human resource management practices and employee performance in the Chinese banking sector: The role of social climate and resilience. Human Resource Management, 2019, 58(1): 85-97.

DATTA D.K., GUTHRIE J.P., and WRIGHT P.M. Human resource management and labor productivity: does industry matter? Academy of Management Journal, 2005, 48(1): 135-145.

GILAL F.G., ASHRAF Z., GILAL N.G., GILAL R.G., and CHANNA N.A. Promoting environmental performance through green human resource management practices in higher education institutions: A moderated mediation model. Corporate Social Responsibility and Environmental Management, 2019, 26(6): 1579-1590.

GORMAN C.A., MERIAC J.P., ROCH S.G., RAY J.L., and GAMBLE J.S. An exploratory study of current performance management practices: Human resource executives' perspectives. International Journal of Selection and Assessment, 2017, 25(2): 193-202.

GREEN K.W., WU C., WHITTEN D., and MEDLIN B. The impact of strategic human resource management on firm performance and HR professionals' work attitude and work performance. The International Journal of Human Resource Management, 2006, 17(4): 559-579.

GUEST D., CONWAY N., and DEWE P. Using sequential tree analysis to search for 'bundles' of HR practices. Human Resource Management Journal, 2004, 14(1): 79-96.

GUEST D.E. Human resource management and performance: a review and research agenda. International Journal of Human Resource Management, 1997, 8(3): 263-276.

GUTHRIE J.P. High-involvement work practices, turnover, and productivity: Evidence from New Zealand. Academy of Management Journal, 2001, 44(1): 180-190.

HAREL G.H., and TZAFRIR S.S. The effect of human resource management practices on the perceptions of organisational and market performance of the firm. Human Resource Management, 1999, 38(3): 185-199.

HOFSTEDE G. Cultural constraints in management theories. Academy of Management Perspectives, 1993, 7(1): 81-94.

HU X., ZHAN Y., GARDEN R., WANG M., and SHI J. Employees' reactions to customer mistreatment: The moderating role of human resource management practices. Work and Stress, 2018, 32(1): 49-67.

JOHARI J., and YAHYA K.K. Job characteristics, work involvement, and job performance of public servants. European Journal of Training and Development, 2016, 40(7): 554-575.

JOUDA A.A., AHMAD U.N.U., and DAHLEEZ K.A. The impact of human resource management practices on employees performance: The case of Islamic University of Gaza in Palestine. International Review of Management and Marketing, 2016, 6(4): 1080-1088.

KADIRESAN V., SELAMAT M.H., SELLADURAI S., RAMENDRAN C.S.P.R., and MOHAMED R.K.M.H. Performance appraisal and training and development of human resource management practices (HRM) on organisational commitment and turnover intention. Asian Social Science, 2015, 11(24): 162.

KHDOUR N., AL-ADWAN A.S., ALSOUD A., and AL-DOURI J.A. Human Resource Management Practices and Total Quality Man-agement in Insurance Companies: Evidence from Jordan. Problems and Perspectives in Management, 2021, 19(1): 432-444.

KRISHNAVENI R., and MONICA R. Factors influencing employee performance: The role of human resource management practices and work engagement. International Journal of Business Performance Management, 2018, 19(4): 450-475.

KUNDU S., and MALHAN D. Human resource management practices in insurance companies operating in India: A Study. In: Proceedings of the 13th Asia Pacific Management Conference, Melbourne, Australia. 2007: 472-488.

LAMALEWA F., KORE E.L.R., and KALALO C.N. The influence of practices of human resources management, compensation, work satisfaction and motivation on performance of bank employees in Merauke City. International Journal of Mechanical Engineering and Technology, 2018, 9(10): 64-71.

LEE K.S., LEE H.S., and KIM S.Y. Factors influencing the adoption behavior of mobile banking: a South Korean perspective. The Journal of Internet Banking and Commerce, 2007, 12(2): 1-9.

MANSOUR M. 2020 The relationship between human resources management practices and job engagement: The mediating role of psychological capital. Management Science Letters, 10(13): 3047-3056.

MARIANI L., GIGLI S., and BANDINI F. Pay-for-Performance and other practices: Alternative paths for human resource management effectiveness in public social care organisations. Review of Public Personnel Administration, 2021, 41(1): 78-104.

NASSAR M.A. Human resource management practices and organisational commitment in four-and five-star hotels in Egypt. Journal of Human Resources in Hospitality and Tourism, 2018, 17(1): 1-21.

NGWENYA L., and AIGBAVBOA C. Improvement of productivity and employee performance through an efficient human resource management practices. In KANTOLA J., BARATH T., NAZIR S., and ANDRE T. (eds.). Advances in human factors, business management, training and education. Springer, Cham, 2017: 727-737.

OTOO F.N.K. Human resource management (HRM) practices and organisational performance: The mediating role of employee competencies. Employee Relations: The International Journal, 2019, 42(6): 1353-1380.

PAPA A., DEZI L., GREGORI G.L., MUELLER J., and MIGLIETTA N. Improving innovation performance through knowledge acquisition: the moderating role of employee retention and human resource management practices. Journal of Knowledge Management, 2018, 24(3): 589-605.

PATTERSON M., RICK J., WOOD S. J., CARROLL C., BALAIN S., and BOOTH A. Systematic review of the links between human resource management practices and performance. Health Technology Assessment, 2010, 14(51). https://doi.org/10.3310/hta14510

PAUL A.K., and ANANTHARAMAN R.N. Impact of people management practices on organisational performance: analysis of a causal model. International Journal of Human Resource Management, 2003, 14(7): 1246-1266.

PAVLOV A., MURA M., FRANCO-SANTOS M., and BOURNE M. Modelling the impact of performance management practices on firm performance: interaction with human resource management practices. Production Planning and Control, 2017, 28(5): 431-443.

RAJNI, SINGH R., and SATPAL. Assessing the impact of human resource practices on knowledge management and performance of organisation in service industries of India. Journal of Advanced Research in Dynamical and Control Systems, 2019, 11(2): 1833-1847.

SAAD M.M., GABEr H.R., and LABIB A.A. Investigating the impact of human resource management practices on employee engagement, and the moderating role of strategy implementation in Egypt. South African Journal of Human Resource Management, 2021, 19: 1-9.

SALAS‐VALLINA A., ALEGRE J., and LÓPEZ‐CABRALES Á. The challenge of increasing employees' well‐being and performance: How human resource management practices and engaging leadership work together toward reaching this goal. Human Resource Management, 2021, 60(3): 333-347.

SALAS‐VALLINA A., ALEGRE J., and LÓPEZ‐CABRALES Á. The challenge of increasing employees' well‐being and performance: How human resource management practices and engaging leadership work together toward reaching this goal. Human Resource Management, 2021, 60(3): 333-347.

SEPAHVAND R., and KHODASHAHRI R.B. Strategic human resource management practices and employee retention: A study of the moderating role of job engagement. Iranian Journal of Management Studies, 2021, 14(2): 437-468.

SHAHID M.N., and HAMID S.N.A. Impact of Sustainable Human Resource Management Practices on Secondary School Teacher Job Performance: A Conceptual Framework of Teacher Psychological Ownership. International Journal of Innovation, Creativity and Change, 2019, 6(2): 217-241.

ADIL M.S. Strategic human resource management practices and competitive priorities of the manufacturing performance in Karachi. Global Journal of Flexible Systems Management, 2015, 16(1): 37-61.

SINGH K. Impact of HR practices on perceived firm performance in India. Asia Pacific Journal of Human Resources, 2004, 42(3): 301-317.

SOLANKI K. Analysis of Etihad Airlines human resources management practices and factors that lead to employee's motivation. International Journal of Entrepreneurship, 2020, 24(1): 1-14.

TAYEH N.S.A. Human resource management practices and their impacts on personnel's performance in Jordanian Public Academic Libraries. European Journal of Scientific Research, 2010, 47(1): 118-121.

TESSEMA M.T., and SOETERS J.L. Practices and challenges of converting former fighters into civil servants: the case of Eritrea. Public Administration and Development: The International Journal of Management Research and Practice, 2006, 26(4): 359-371.

TIAN A.W., CORDERY J., and GAMBLE J. Staying and performing: How human resource management practices increase job embeddedness and performance. Personnel Review, 2016, 45(5): 947-968.

TSAI C.-J. High performance work systems and organisational performance: an empirical study of Taiwan's semiconductor design firms. The International Journal of Human Resource Management, 2006, 17(9): 1512-1530.

UGARTE S.M., and RUBERY J. Gender pay equity: Exploring the impact of formal, consistent and transparent human resource management practices and information. Human Resource Management Journal, 2021, 31(1): 242-258.

VON BONSDORFF M.E., ZHOU L., WANG M., VANHALA S., VON BONSDORFF M.B., and RANTANEN T. Employee age and company performance: An integrated model of aging and human resource management practices. Journal of Management, 2018, 44(8): 3124-3150.

VOO I.C., LONG C.S., and SOEHOB K. Investigating the relationship of human resource management practices and firm performance. Journal of Engineering and Applied Sciences, 2017, 12(7): 1727-1731.

VOO I.C., SOEHOD K., LONG C.S., and DOULATABADI M. Enhancing firm performance through Human Resource Management (HRM) practices and HR roles. In: Proceedings of the International Conference on Industrial Engineering and Operations Management, 2019: 3429-3438.

VOO I.C., SOEHOD K., LONG C.S., and DOULATABADI M. Enhancing firm performance through Human Resource Management (HRM) practices and HR roles. In: Proceedings of the International Conference on Industrial Engineering and Operations Management, 2019: 3429-3438.

YANG C.L., and HWANG M. Personality traits and simultaneous reciprocal influences between job performance and job satisfaction. Chinese Management Studies, 2014, 8(1): 6-26.

YANG F. Guanxi human resource management practices as a double‐edged sword: The moderating role of political skill. Asia Pacific Journal of Human Resources, 2014, 52(4): 496-510.

YUSOFF Y.M., NEJATI M., KEE D.M.H., and AMRAN A. Linking green human resource management practices to environmental performance in hotel industry. Global Business Review, 2020, 21(3): 663-680.

ZAID A.A., JAARON A.A.M., and BON A.T. The impact of green human resource management and green supply chain management practices on sustainable performance: An empirical study. Journal of Cleaner Production, 2018, 204: 965-979.


Refbacks

  • There are currently no refbacks.