THE INFLUENCE OF HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE AND PRODUCTIVITY

Abstract

Background: Human resource management (HRM) represents a strategic determinant that significantly influences organizational performance and productivity. In an era of intensifying global competition and accelerating digital transformation, organizations are increasingly required to manage their human resources effectively, adaptively, and in alignment with core organizational values. Objective: This study aims to analyze the influence of HRM practices on organizational performance, examine the effect of HRM on organizational productivity, and identify the role of digital transformation as a contextual factor moderating these relationships. Method: The research employs a library research approach utilizing integrative analysis of ten scientific literature sources published between 2022 and 2025, retrieved from reputable academic databases using rigorous inclusion criteria. Results: Findings demonstrate that HRM practices encompassing selective recruitment, training and development, compensation systems, performance management, as well as diversity and inclusion policies, exert a positive influence on both organizational performance and productivity. These relationships are mediated by employee engagement, job satisfaction, and organizational commitment, and are further moderated by leadership quality, organizational culture, and digital readiness. Discussion: The integrative model constructed in this study affirms that HRM effectiveness is fundamentally multidimensional in nature and is highly contingent upon the internal consistency among HRM practices and the organization's preparedness to embrace digital transformation as a strategic imperative