
Publication History
Submitted: August 02, 2023
Accepted: August 20, 2023
Published: September 01, 2023
Identification
D-0163
Citation
Maryam Sabah Salah Mahdi & Ali Jalil Mahadi (2023). Evaluation and Future Directions of Organization’ Human Resources Management Performance. Dinkum Journal of Economics and Managerial Innovations, 2(09):564-570.
Copyright
© 2023 DJEMI. All rights reserved
564-570
Evaluation and Future Directions of Organization’ Human Resources Management PerformanceReview Article
Maryam Sabah Salah Mahdi *1, Ali Jalil Mahadi 2
- Erbil Polytechnic University, Iraq; maryamsalahmahdi@gmail.com
- Erbil Polytechnic University, Iraq; alijalil@gmail.com
* Correspondence: maryamsalahmahdi@gmail.com
Abstract: The effectiveness of business human resource management, a topic of major academic significance in human resource management research, is a prerequisite for firms to achieve long-term sustainable development. Despite the fact that science has advanced much thus far, a comprehensive overview of the literature is still missing. The present study employs a systematic literature review methodology and a bibliography utilizing Citespace programs to examine the business’s HRM efficiency from the perspectives of content sorting, topic overview, and evolution. It is based on 218 research findings that were compiled in the WOS’s SSCI and CNKI databases between 2019 and 2023. In addition to defining the term “enterprise human resource management effectiveness,” this essay looks at the results of earlier study and points out areas that require more investigation. This study presents possible future research topics relating to measurement tools, influencing factors, and outcomes, drawing on the body of existing research on the effectiveness of enterprise human resource management. By doing this, it provides direction for future research in addition to adding to a methodical overview of the area.
Keywords: human resource management, sustainability, organization performance
- INTRODUCTION
Corporate human resource management (HRM; henceforth referred to as “HRM effectiveness”) efficacy is a crucial prerequisite for boosting organizations’ competitiveness and ensuring their long-term growth. Since it was first presented in the 1980s, it has received attention from many academic areas [1-4]. Several research have proven the effect of HRM effectiveness on employee well-being, organizational creativity, and business performance [5-7]. Businesses must simultaneously deal with opportunities brought about by the widespread use of big data and artificial intelligence [9] and challenges like the decline of demographic dividends, changes in the economy’s structural makeup, and overcapacity production [10] as the global economy enters the “VUCA (volatile, uncertain, complex, and ambiguous) era” [8]. Consequently, the efficiency of HRM has become more important. Zhengfei Ren, the creator of Huawei, for example, emphasizes having “two flows and one effectiveness,” or a high income flow, a high cash flow, and a high effectiveness in human resources management. This means that in order to guide future research and the adoption of business practices, a thorough and methodical examination of the study findings about the effectiveness of HRM in firms, together with the proposal of prospective areas for future research, will be essential. The academic community has carried out a large number of studies on HRM effectiveness, with noteworthy results [11, 12]. Numerous scholars’ review studies [13–15] provide a useful tool for systematically presenting the state of the art in this field. However, there are still gaps in the studies. Because the earlier reviews were written many years ago and did not cover recently released study findings, their breadth was constrained. Furthermore, without reviewing the variables influencing HRM, the outcomes of HRM, or even the general advancement of research in the field and the key research issues, the research substance of the earlier evaluations is restricted to the definition and techniques for gauging the efficacy of HRM. After defining the term “HRM effectiveness,” 218 papers—112 from the SSCI and 106 from the CSSCI—were analyzed using systematic and bibliometric techniques with Citespace software through a literature search and sample screening in order to provide a thorough understanding of the state of the art in enterprise HRM effectiveness. The main problems and advancements in this field are examined and summarized in this essay. In the end, HRM’s effectiveness is obtained via a theoretical framework. Based on the results, some recommendations for future research directions in this field are also provided for the benefit of the researchers. The main contributions of this study are as follows. Content analysis has been the main focus of most previous studies of the literature on the effectiveness of corporate HRM. In this study, the theme overview and research evolution of HRM effectiveness are graphically assessed using CiteSpace software. The vast majority of reviews on HRM effectiveness that are currently available focus on metrics and definitions. The theoretical framework for HRM effectiveness is developed in this study, along with recommendations for future research areas and a logical arrangement of HRM research issues based on three criteria: results, influencing variables, and measuring procedures. It accomplishes this by carrying out an exhaustive literature study. The results of this study can be used as a reference for earlier research on the efficacy of HRM as well as a direction for additional in-depth follow-up investigations.
- LITERATURE REVIEW
The term “human resources” was first used and defined by Drucker [16] in 1954. According to this definition, human resources are unique resources that must be used to a company’s advantage through appropriate incentives. Since then, the academic community has given human resources and HRM effectiveness a great deal of attention. For instance, Barney [17] considered human resources to be one of the sources of an organization’s long-term competitive advantages, but Zhao [18] emphasized that HRM is the efficient creation, thoughtful application, and methodical management of this unique resource. The English phrases efficiency, effectiveness, and other key terminology for assessing and measuring performance are primarily translated as “efficacy” [19]. According to Drucker [20], the focus of management effectiveness should be on “doing the right thing,” which refers to how much the system’s output achieves the predetermined goal after resources are input, and the focus of management efficiency should be on “doing things right,” which refers to allocating resources—financially, humanly, materially, and informationally—to ensure that the output exceeds the input. The modern academic community defines effectiveness in management as the extent to which objectives are achieved via management [21]. Several terms for enterprise HRM effectiveness, including efficiency, effectiveness, effect, validity, performance, and value, are used in some of the research. The definition of enterprise HRM effectiveness is a topic of debate among academics, but research published in English journals tends to focus on how HR service users perceive it [22], or how HR activities are delivered [23], whereas research published in Chinese journals emphasizes the role HRM plays in businesses [15]. Nonetheless, they primarily concentrate on the results of HRM activities and the connection between those results and corporate objectives [15]. According to their proposals, enterprise HRM effectiveness is a product of HRM activities and can serve as a gauge for assessing the achievement of HRM objectives [24]. According to this study, the degree to which businesses use different HRM practices (overall planning, recruitment, remuneration, development, evaluation, and incentive activities) to accomplish corporate goals is known as enterprise HRM effectiveness. From a connotation standpoint, enterprise HRM effectiveness is centered on the efficiency that an organization generates through HRM; from a characteristic standpoint, enterprise HRM effectiveness is quantifiable; however, it can be challenging to include concepts and indicators that have different meanings to different people in an evaluation of HRM effectiveness. Research on the effectiveness of HRM in businesses was conducted earlier in other nations than in China [25], with studies on the subject gradually starting in China in 1998 as a result of participation in studies conducted abroad [13]. This is in line with the findings of earlier research on Chinese human resource management [26]. In general, the majority of Chinese papers accepted the ideas and measuring techniques created by English papers with regard to the theories and methods used in the investigations. The relationship between enterprise HRM effectiveness and employee and enterprise factors is a common research topic for English papers. Chinese newspapers, in contrast, tend to focus more on businesses than on workers. Cultural differences could account for this, as prior research has indicated that Chinese culture places greater emphasis on the communal [27]. During this time, the majority of studies concentrated on theoretical research, or the theoretical development of the meaning of enterprise HRM effectiveness [28]. Human capital theory and strategic HRM theory were the primary sources of the theories employed in these investigations. The studies’ main objectives were to examine the theoretical underpinnings of enterprise HRM effectiveness and how these relate to organizational and enterprise performance. Chinese publications have given greater attention to related ideas and their implications for enterprises, whereas English studies concentrate on research methodologies, models, and the consequences on people and enterprises. During this time, empirical research methodologies grew progressively on the foundation of earlier theoretical conceptions [29]. The primary areas of interest for the research were the measurement of the efficacy of enterprise HRM and the connections between human resource management and more in-depth internal variables like enterprise innovation, enterprise culture, enterprise strategy, enterprise system, and knowledge management. Topic-wise, the English articles have mostly concentrated on how HRM success affects both people and organizations. The relationship between HRM effectiveness and enterprise factors is the main subject of Chinese studies, and further qualitative research has evolved. During this time, new techniques based on big data and artificial intelligence arose, although qualitative and empirical methods continued to be used extensively [30]. These studies increasingly shifted their attention from mid-term measures and effects on internal enterprise characteristics to employee work experience and social responsibility [31]. The effects of external national policies on enterprise HRM effectiveness and the effects of enterprise HRM effectiveness on the performance of external capital markets were also the subject of research during this time. The Chinese literature focuses on the relationship between HRM effectiveness and the performance of enterprises in the capital market, gradually increasing the content of employee welfare and employee experience. In terms of topics, the English literature focuses on the relationship between HRM effectiveness and enterprise factors, such as commitment and a work performance system. A sample’s keyword analysis can be used to identify the main areas of study for a certain field of study. The study of enterprise HRM effectiveness metrics on their own or the correlation between enterprise HRM effectiveness and other variables are examples of relatively autonomous research subjects in this field in China, as seen in Figure 4 [32]. Studies conducted in China typically address many business HRM effectiveness issues concurrently, in contrast to research conducted in other nations [23]. Research on the relationship between human HRM performance and effectiveness has been conducted both domestically and internationally. research conducted abroad have also examined how the usage of electronic human resources (E-HR) affects the effectiveness of business HRM, but research conducted in China have concentrated more on assessments of HRM effectiveness and real-world management scenarios. Researchers both domestically and internationally have created a wide range of measurement models or questionnaires to evaluate the efficacy of corporate HRM from various angles. Previous study has examined HRM effectiveness from many angles, such as subjects and cycles [33]. A few academics also examined enterprise HRM effectiveness measurement techniques [15]. The impact of the aforementioned factors on HRM effectiveness has been examined in both domestic and international literature, which has examined various facets of organizational cultures of businesses, the relationship between HR departments and business managers, employee emotion management [34], and technology [35]. a”Only measurable things can be effectively managed,” asserted Peter Drucker. As a result, despite obstacles to measuring business HRM effectiveness, such as the HRM process’s ambiguity and measurement scope [22], academics are dedicated to evaluating enterprise HRM efficiency in order to identify a suitable and efficient measurement technique. There are almost 20 different approaches to measuring human resources overall [15]. The primary techniques for assessing the efficacy of corporate HRM primarily stem from findings in overseas study. The stakeholder model put forth by Tsui [37], the human resource scorecard based on the balanced scorecard proposed by [38], and the human resource index created and built by Schuster [36] are some of the often employed techniques. While some researchers [39] have sought to create their own measurement techniques, most domestic scholars [11,14,38] use the techniques found in international studies to fit their own research objectives. The following four phases represent the evolution of this subject of study. (1) Before HRM became widely recognized, it was known as labor management, and its main function was personnel management [39] (late 19th to early 20th century). Although HRM was still in its infancy, there was potential to quantify enterprise HRM effectiveness in the future; at the moment, this measurement was in the phase of practical preparation. (2) The term “human resources” first appeared in the 1950s, and HRM followed in the 1980s. At this point, researchers started measuring the HRM effectiveness of businesses and looked at ways to quantify it, such as using goal decomposition or including enterprise HRM performance in financial statements. This was known as the exploratory phase of the research process. (3) Many comprehensive studies on the effectiveness of enterprise HRM from a variety of angles, including human resource projects, financial indicators, and the overall assessment of human resource work, were carried out in the early stages of strategic HRM (after the 1980s), and enterprise HRM effectiveness measurements entered a stage of robust development. The Bayesian approach, entropy theory, fuzzy evaluation, and other theories and methods were incorporated into enterprise HRM effectiveness assessments in the later stages of strategic HRM, and human efficiency measurements went through a thorough evaluation phase. Through the aforementioned phases, the assessment of HRM effectiveness in businesses has evolved, resulting in more sophisticated models and techniques, a wider range of data gathering techniques, and more precise measurement indicators. The techniques for assessing the efficacy of corporate HRM were thereafter largely implemented or adjusted in accordance with the techniques suggested during the previously indicated time. The following categories comprise the elements that influence the efficacy of enterprise HRM: management, institutional culture, and strategy. According to studies, the degree of human resource activities and the strategic involvement and adaptability of enterprise HRM have an effect on the effectiveness of enterprise HRM. A strategic HRM engagement structure, for instance, has a major positive impact on the efficacy of business HRM, according to ref. [40]. According to studies, enterprise HRM effectiveness will increase when business executives take a participation role in management style, team decision-making and procedures, and management flexibility. The efficacy of HRM can also be enhanced by a management approach that values human nature and incorporates shared leadership, transactional leadership, or transformational leadership. For instance, Sun et al. [41] discovered that various leadership philosophies have an impact on the efficacy of corporate HRM throughout several business life cycles. Research has indicated that company culture and employee care policies—which include things like career counseling and employee welfare—have a favorable effect on the efficacy of enterprise human resource management. Chang [42], for instance, observed that business HRM effectiveness and commitment to human resources are positively correlated. Employees are impacted by enterprise HRM effectiveness in two primary ways. Previous research has demonstrated that the efficacy of corporate HRM can influence employee behavior by way of attitude and perception, which subsequently influences employee performance. Employee happiness, the perception of the environment around labor-capital connections, and employee well-being are all impacted by the efficacy of enterprise HRM in terms of attitudes and perceptions held by employees. When it comes to employee behavior and performance, the efficacy of enterprise HRM will have an impact on learning and performance orientation, which will increase organizational citizenship behavior, lower attrition rates, and enhance employee performance and breakthrough innovation. For instance, Hu and Mao’s study [43] indicated that varying company HRM efficiency had varying effects on workers’ feelings of workplace well-being.
- CONCLUSION
From the standpoint of the evolution of research, research in China is primarily based on research conducted elsewhere. Based on the content of each historical period, domestic and foreign studies may be categorized into three stages: the theory construction period, the explosive growth era, and the deepening of knowledge period. Research on HRM effectiveness is now maturing and ready for innovation. The majority of domestic and international studies on the subject of corporate HRM effectiveness have concentrated on measurement techniques, influencing factors, and outcomes when looking at the distribution of research topics. Among these, frontier topics that have drawn increased attention recently are employee experience and involvement, company investment efficiency, and social responsibility. One distinction is the greater independence of research topics in the home country compared to those in other countries. HRM effectiveness is measured using techniques that possess both multiangle and multicategory features. Measurements like the people maturity model, human resource scorecard, and human resource index are frequently employed and are adapted from international research methods. Four categories—function-efficiency, function-effectiveness, enterprise-efficiency, and enterprise-effectiveness—can be used to categorize the approaches used to measure the efficacy of enterprise HRM. The enterprise-effectiveness category receives greater attention than the functional-efficiency category. When looking at the history of HRM practices and research throughout time, enterprise HRM effectiveness measuring techniques also keep evolving. Enterprise HRM effectiveness measurement techniques have advanced in terms of measurement indicators, data acquisition techniques, measurement methods, and models after passing through the planning, measurement exploration, development deepening, and comprehensive evaluation phases. The techniques used in the literature to measure the efficacy of enterprise HRM are primarily based on the findings of these four research eras. Four tiers can be used to classify the contributing variables for the effectiveness of company HRM: enterprise, employees, HR department, and technology. The enterprise and employee levels are responsible for the majority of these characteristics, which include institutional culture, strategy, management, and employee perception, conduct, and attitude. The success of enterprise HRM is also influenced by the technical and HR department levels. These levels relate to professional skills, a company’s business departments and strategy, the E-HR system, big data technologies, and other technical applications. The primary beneficiaries of efficient corporate HRM are both employers and employees. Because there might be an impact on organizational innovation and enterprise performance, the effect at the enterprise level is more evident. The efficacy of corporate HRM is primarily examined at the employee level in relation to attitude, perception, behavior, and performance output.
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Publication History
Submitted: August 02, 2023
Accepted: August 20, 2023
Published: September 01, 2023
Identification
D-0163
Citation
Maryam Sabah Salah Mahdi & Ali Jalil Mahadi (2023). Evaluation and Future Directions of Organization’ Human Resources Management Performance. Dinkum Journal of Economics and Managerial Innovations, 2(09):564-570.
Copyright
© 2023 DJEMI. All rights reserved