Impact of Human Resource Management on Business Performance: A Review of Literature
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Abstract
This paper examines the impact of human resource management (HRM) on business performance. The primary objective was to conduct a comprehensive and systematic review of literature on HRM and business performance, resulting in a concise review paper. A substantial body of literature explores the link between HRM and business performance, allowing for an in-depth analysis of numerous articles. Specifically, 212 articles were analyzed, with 187 being excluded through various review steps. The findings suggest a positive correlation between HRM practices and overall business performance, as well as a positive influence on employee well-being, productivity, and organizational climate. However, there is a possibility that good business performance may drive the implementation of effective HRM practices, rather than the other way around. This issue is further addressed and discussed within the article. With the information gathered and results obtained, it can be concluded that this systematic review paper makes a significant contribution to the existing literature. Moreover, it serves as a valuable starting point for future research on HRM practices and their impact on business performance.
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