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.
References
Abendan, C. F., Kilag, O. K., Taping, M. L., Poloyapoy, G., Echavez, R., & Suba-an, H. M. (2023). Driving Excellence in Management Education through IT Innovation. Excellencia: International Multi-disciplinary Journal of Education (2994-9521), 1(4), 62-75.
Andrin, G., Kilag, O. K., Groenewald, E., Unabia, R., Cordova Jr, N., & Nacario, K. M. (2023). Beyond Management: Cultivating Leadership in Educational Institutions. Excellencia: International Multi-disciplinary Journal of Education (2994-9521), 1(6), 365-375.
Arthur, J. B. (1994). Effects of human resource systems on manufacturing performance and turnover. Academy of Management journal, 37(3), 670-687.
Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: where do we go from here?. Journal of management, 32(6), 898-925.
Bowen, D. E., & Ostroff, C. (2004). Understanding HRM–firm performance linkages: The role of the “strength” of the HRM system. Academy of management review, 29(2), 203-221.
Boxall, P., & Purcell, J. (2022). Strategy and human resource management. Bloomsbury Publishing.
Boxall, P., & Macky, K. (2009). Research and theory on high‐performance work systems: progressing the high‐involvement stream. Human resource management journal, 19(1), 3-23.
Conway, N., & Briner, R. B. (2002). A daily diary study of affective responses to psychological contract breach and exceeded promises. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 23(3), 287-302.
Cordova Jr, N., Kilag, O. K., & Ibañez, D. (2023). Beyond Reactivity: Proactively Managing Projects in Turbulent Environments. Excellencia: International Multi-disciplinary Journal of Education (2994-9521), 1(5), 433-445.
Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions. Academy of management Journal, 39(4), 802-835.
Groenewald, E., & Kilag, O. K. (2024). E-commerce Inventory Auditing: Best Practices, Challenges, and the Role of Technology. International Multidisciplinary Journal of Research for Innovation, Sustainability, and Excellence (IMJRISE), 1(2), 36-42.
Guest, D. E. (1997). Human resource management and performance: a review and research agenda. International journal of human resource management, 8(3), 263-276.
Guest, D. E. (2017). Human resource management and employee well‐being: Towards a new analytic framework. Human resource management journal, 27(1), 22-38.
Gong, Y., Law, K. S., Chang, S., & Xin, K. R. (2009). Human resources management and firm performance: The differential role of managerial affective and continuance commitment. Journal of applied psychology, 94(1), 263.
Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of management journal, 38(3), 635-672.
Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of management Journal, 55(6), 1264-1294.
Lepak, D. P., & Snell, S. A. (1999). The human resource architecture: Toward a theory of human capital allocation and development. Academy of management review, 24(1), 31-48.
Manubag, M., Kilag, O. K., Peñalosa, B., Timtim, J. M., Padilla, J. B., & Abendan, C. F. (2023). Empowering Skills Development: Exploring the Role of Technology Management in Technical Vocational Education Enhancement. Excellencia: International Multi-disciplinary Journal of Education (2994-9521), 1(5), 195-208.
Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human resource management review, 1(1), 61-89.
Orozco, F., Kilag, O. K., & Parinasan, M. A. (2023). Navigating Unpredictability: Exploring Fundamental Components of Crisis Management in Organizational Settings. Excellencia: International Multi-disciplinary Journal of Education (2994-9521), 1(6), 1-11.
Paauwe, J., & Boselie, P. (2003). Challenging ‘strategic HRM’and the relevance of the institutional setting. Human resource management journal, 13(3), 56-70.
Parry, E., & Tyson, S. (2011). Desired goals and actual outcomes of e‐HRM. Human resource management journal, 21(3), 335-354.
Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual review of psychology, 63, 539-569.
Spector, P. E. (1997). Job satisfaction: Application, assessment, causes, and consequences (Vol. 3). Sage.
Truss, C., Delbridge, R., Alfes, K., Shantz, A., & Soane, E. (Eds.). (2013). Employee engagement in theory and practice. London: Routledge.
Wang, S., & Noe, R. A. (2010). Knowledge sharing: A review and directions for future research. Human resource management review, 20(2), 115-131.
Wright, P. M., Dunford, B. B., & Snell, S. A. (2001). Human resources and the resource based view of the firm. Journal of management, 27(6), 701-721.
Wright, P. M., & McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of management, 18(2), 295-320.