Optimizing Human Capital: Exploring the Effectiveness of HRM Systems
Keywords:
Human Resource Management, HRM systems, organizational performance, measurementAbstract
This systematic literature review examines the intricacies of Human Resource Management (HRM) systems and their measurement, synthesizing empirical evidence to provide insights into their effectiveness and implications for organizational performance. The review highlights the diversity in HRM measurement approaches, ranging from comprehensive scales to specific dimensions, underscoring the need for standardized tools to facilitate comparability across studies. Findings reveal positive associations between high-performance HRM practices and organizational performance outcomes, though the strength of these relationships varies across contexts. Contextual factors such as industry type, organizational size, and environmental dynamism moderate the effectiveness of HRM systems, emphasizing the importance of considering organizational and environmental factors in HRM research. Moreover, the review identifies employee perceptions and behaviors as critical mediators in the HRM-performance relationship, highlighting the importance of aligning HRM practices with employee needs and values. Methodological challenges, including reliance on cross-sectional data and difficulties in establishing causality, necessitate methodological rigor and innovative research designs to advance our understanding of HRM systems. Overall, this study contributes to the broader discourse on HRM systems by offering insights for scholars, practitioners, and policymakers seeking to optimize organizational performance through effective human capital management.
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