Strategic management of human resources: Analysing the significance of human capital in the organization

Priti Marwah; Varsha Agarwal; Smita Mishra; Roopa Traisa; Ayaan Faiz

doi:10.31893/multirev.2023ss091

Keywords:

Abstract

Strategic management for human resources (HR) entails maximizing human capital's value and integrating with organizational objectives to maintain competitive advantage and performance. Limited emphasis on employee well-being, resistance to transformation, disregard for diversity and inability to adapt hinder efficient human capital development. This review improves the efficiency of organizations through strategic HR administration, analyzing and improving the value of human capital during longer-term achievements. Here, we explained the HR that includes HR management approaches with sustainability competitiveness, as well as HR framework levels with proper measurement and integrative framework for HR management. Following that, we described human capital such as economics and social significance for human capital, characteristics for human capital, leveraging human capital for a competitive advantage and workforce-centric organizations. Then, we demonstrate an interactive relationship framework for human and organizational capital. Strategic HR management improves organizational efficiency by leveraging the entire possibilities of human capital for long-term achievement and competitive advantages.
References
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4. Alfawaire, F., &Atan, T. (2021). The effect of strategic human resource and knowledge management on sustainable competitive advantages at Jordanian universities: The mediating role of organizational innovation. Sustainability, 13(15), 8445. DOI: 10.3390/su13158445
5. Alghababsheh M, &Gallear D (2021) Socially sustainable supply chain management and suppliers’ social performance: The role of social capital. Journal of Business Ethics, 173, 855-875. DOI: 10.1007/s10551-020-04525-1
6. Allal-Chérif O, AranegaA Y, & Sánchez R C (2021) Intelligent recruitment: How to identify, select, and retain talents from around the world using artificial intelligence. Technological Forecasting and Social Change, 169, 120822. DOI: 10.1016/j.techfore.2021.120822
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9. Baia, E., Ferreira, J. J., & Rodrigues, R. (2020). Value and rareness of resources and capabilities as sources of competitive advantage and superior performance. Knowledge Management Research & Practice, 18(3), 249-262. DOI: 10.1080/14778238.2019.1599308
10. Banmairuroy, W., Kritjaroen, T., &Homsombat, W. (2022). The effect of knowledge-oriented leadership and human resource development on sustainable competitive advantage through organizational innovation's component factors: Evidence from Thailand’s new S-curve industries. Asia Pacific Management Review, 27(3), 200-209. DOI: 10.1016/j.apmrv.2021.09.001
11. Batool M, Nadim M, Saeed A F, Wadood F, Quresh M, &Pucelj M (2023) Human resource strategy: enhancing organizational performance through effective HRM. PalArch's Journal of Archaeology of Egypt/Egyptology, 20(2), 1556-1573.
12. Biron, M., De Cieri, H., Fulmer, I., Lin, C. H. V., Mayrhofer, W., Nyfoudi, M., ... & Sun, J. M. J. (2021). Structuring for innovative responses to human resource challenges: A skunk works approach. Human Resource Management Review, 31(2), 100768. DOI: 10.1016/j.hrmr.2020.100768
13. Boon, C., Den Hartog, D. N., &Lepak, D. P. (2019). A systematic review of human resource management systems and their measurement. Journal of management, 45(6), 2498-2537. DOI: 10.1177/0149206318818718
14. Capozza, C., &Divella, M. (2019). Human capital and firms’ innovation: evidence from emerging economies. Economics of Innovation and New Technology, 28(7), 741-757. DOI: 10.1080/10438599.2018.1557426
15. Chowdhury, S., Dey, P., Joel-Edgar, S., Bhattacharya, S., Rodriguez-Espindola, O., Abadie, A., & Truong, L. (2023). Unlocking the value of artificial intelligence in human resource management through AI capability framework. Human Resource Management Review, 33(1), 100899.DOI: 10.1016/j.hrmr.2022.100899
16. Du S, Bstieler L, &Yalcinkaya G (2022) Sustainability-focused innovation in the business-to-business context: Antecedents and managerial implications. Journal of Business Research, 138, 117-129. DOI: 10.1016/j.jbusres.2021.09.006
17. Gillmore, E. (2022). Mandate dynamics and the importance of mandate loss for subsidiary evolution. International Business Review, 31(6), 101994. DOI: 10.1016/j.ibusrev.2022.101994
18. Hamadamin, H. H., &Atan, T. (2019). The impact of strategic human resource management practices on competitive advantage sustainability: The mediation of human capital development and employee commitment. Sustainability, 11(20), 5782. DOI: 10.3390/su11205782
19. Hermans M, & Ulrich M D (2021) How symbolic human resource function actions affect the implementation of high‐performance work practices: The mediating effect of influence on strategic decision‐making. Human Resource Management Journal, 31(4), 1063-1081. DOI: 10.1111/1748-8583.12361
20. Hitka, M., Kucharčíková, A., Štarchoň, P., Balážová, Ž., Lukáč, M., &Stacho, Z. (2019). Knowledge and human capital as sustainable competitive advantage in human resource management. Sustainability, 11(18), 4985. DOI: 10.3390/su11184985
21. Kaufman B E (2020) The real problem: The deadly combination of psychologisation, scientism, and normative promotionalism takes strategic human resource management down a 30‐year dead end. Human Resource Management Journal, 30(1), 49-72. DOI: 10.1111/1748-8583.12278
22. Kryscynski D, Coff R, & Campbell B (2021) Charting a path between firm‐specific incentives and human capital‐based competitive advantage. Strategic Management Journal, 42(2), 386-412. DOI: 10.1002/smj.3226
23. Lopez-Cabrales, A., & Valle-Cabrera, R. (2020). Sustainable HRM strategies and employment relationships as drivers of the triple bottom line. Human resource management review, 30(3), 100689.DOI: 10.1016/j.hrmr.2019.100689
24. Malik A (2019) Creating competitive advantage through source basic capital strategic humanity in the industrial age 4.0. International Research Journal of Advanced Engineering and Science, 4(1), 209-215.
25. Malik, S. Y., Cao, Y., Mughal, Y. H., Kundi, G. M., Mughal, M. H., &Ramayah, T. (2020). Pathways towards sustainability in organizations: Empirical evidence on the role of green human resource management practices and green intellectual capital. Sustainability, 12(8), 3228. DOI: 10.3390/su12083228
26. Martín-de Castro G, Díez-Vial I, & Delgado-Verde M (2019) Intellectual capital and the firm: evolution and research trends. Journal of Intellectual Capital, 20(4), 555-580. DOI: 10.1108/JIC-12-2018-0221
27. Martinez-Sanchez A, Vicente-Oliva S, & Pérez-Pérez M (2021) The strategy of human resource flexibility versus absorptive capacity of knowledge: an integrative framework in industrial firms. European Journal of Innovation Management, 24(2), 315-337. DOI:10.1108/EJIM-10-2019-0314
28. Moustaghfir, K., El Fatihi, S., &Benouarrek, M. (2020). Human resource management practices, entrepreneurial orientation and firm performance: what is the link?. Measuring Business Excellence, 24(2), 267-283. DOI: 10.1108/MBE-12-2019-0119
29. Olopade BC (2020) Economic growth, energy consumption, and human capital formation: Implication for a knowledge-based economy. International Journal of Energy Economics and Policy. DOI: 10.32479/ijeep.8165
30. Piwowar-Sulej K (2021) Human resources development as an element of sustainable HRM–with a focus on production engineers. Journal of cleaner production, 278, 124008. DOI: 10.1016/j.jclepro.2020.124008
31. Popescu C R G (2019) Intellectual Capital”: Major Role, Key Importance and Decisive Influences on Organizations’ Performance. Journal of Human Resources Management Research, 509857, 1-17. DOI: 10.5171/2019.509857
32. Ramlall S, & Melton B (2019) The role and priorities of the human resource management function: Perspectives of HR professionals, line managers, and senior executives. International Journal of Human Resource Studies, 9(2), 9-27. DOI: 10.5296/ijhrs.v9i2.14492
33. Sepahvand R, & Bagherzadeh Khodashahri R (2021) Strategic human resource management practices and employee retention: A study of the moderating role of job engagement. Iranian Journal of Management Studies, 14(2), 437-468. DOI: 10.22059/ijms.2020.291391.673843
34. Seufert, S., Guggemos, J., &Sailer, M. (2021). Technology-related knowledge, skills, and attitudes of pre-and in-service teachers: The current situation and emerging trends. Computers in Human Behavior, 115, 106552. DOI: 10.1016/j.chb.2020.106552
35. Sima V, Gheorghe I G, Subić J, &Nancu D (2020) Influences of the Industry 4.0 revolution on the human capital development and consumer behavior: A systematic review. Sustainability, 12(10), 4035. DOI: 10.3390/su12104035
36. Sinambela E A, Darmawan D, &Mendrika V (2022) Effectiveness of Efforts to Establish Quality Human Resources in the Organization. Journal of Marketing and Business Research (MARK), 2(1), 47-58. DOI: 10.56348/mark.v2i1.43
37. Suliman, A., Rao, A. S., &Elewa, T. (2019). CEO transformational leadership and top management team performance: study from GCC. Measuring Business Excellence, 23(1), 63-79. DOI: 10.1108/MBE-09-2018-0077
38. Tejedo-Romero F, & Araujo J F F E (2022) The influence of corporate governance characteristics on human capital disclosure: the moderating role of managerial ownership. Journal of Intellectual Capital, 23(2), 342-374. DOI: 10.1108/JIC-03-2019-0055
39. Tseng, S. T., & Levy, P. E. (2019). A multilevel leadership process framework of performance management. Human Resource Management Review, 29(4), 100668.DOI: 10.1016/j.hrmr.2018.10.001
40. Zhang Y, Sun J, Yang Z, & Wang Y (2020) Critical success factors of green innovation: Technology, organization and environment readiness. Journal of Cleaner Production, 264, 121701. DOI: 10.1016/j.jclepro.2020.121701

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to cite

Marwah, P., Agarwal, V., Mishra, S., Traisa, R., & Faiz, A. (2024). Strategic management of human resources: Analysing the significance of human capital in the organization. Multidisciplinary Reviews, 6, 2023ss091. https://doi.org/10.31893/multirev.2023ss091

[1] Abdeldayem, M. M., Aldulaimi, S. H., &Kharabsheh, R. (2021). Development of human capital resources to increasing economic growth and innovation in the GCC Countries. International Journal of Green Management and Business Studies, 1(1), 62-79.

[2] Agustian K, Pohan A, Zen A, Wiwin W, & Malik A J (2023) Human Resource Management Strategies in Achieving Competitive Advantage in Business Administration. Journal of Contemporary Administration and Management (ADMAN), 1(2), 108-117. DOI: 10.61100/adman.v1i2.53

[3] Akdere M, & Egan T (2020) Transformational leadership and human resource development: Linking employee learning, job satisfaction, and organizational performance. Human Resource Development Quarterly, 31(4), 393-421. DOI: 10.1002/hrdq.21404

[4] Alfawaire, F., &Atan, T. (2021). The effect of strategic human resource and knowledge management on sustainable competitive advantages at Jordanian universities: The mediating role of organizational innovation. Sustainability, 13(15), 8445. DOI: 10.3390/su13158445

[5] Alghababsheh M, &Gallear D (2021) Socially sustainable supply chain management and suppliers’ social performance: The role of social capital. Journal of Business Ethics, 173, 855-875. DOI: 10.1007/s10551-020-04525-1

[6] Allal-Chérif O, AranegaA Y, & Sánchez R C (2021) Intelligent recruitment: How to identify, select, and retain talents from around the world using artificial intelligence. Technological Forecasting and Social Change, 169, 120822. DOI: 10.1016/j.techfore.2021.120822

[7] Azarenko, N., Kazakov, O., Kulagina, N., &Rodionov, D. (2020, September). The model of human capital development with innovative characteristics in digital economy. In IOP Conference Series: Materials Science and Engineering (Vol. 940, No. 1, p. 012032). IOP Publishing. DOI: 10.1088/1757-899X/940/1/012032

[8] Azeem, M., Ahmed, M., Haider, S., &Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, 101635. DOI: 10.1016/j.techsoc.2021.101635

[9] Baia, E., Ferreira, J. J., & Rodrigues, R. (2020). Value and rareness of resources and capabilities as sources of competitive advantage and superior performance. Knowledge Management Research & Practice, 18(3), 249-262. DOI: 10.1080/14778238.2019.1599308

[10] Banmairuroy, W., Kritjaroen, T., &Homsombat, W. (2022). The effect of knowledge-oriented leadership and human resource development on sustainable competitive advantage through organizational innovation's component factors: Evidence from Thailand’s new S-curve industries. Asia Pacific Management Review, 27(3), 200-209. DOI: 10.1016/j.apmrv.2021.09.001

[11] Batool M, Nadim M, Saeed A F, Wadood F, Quresh M, &Pucelj M (2023) Human resource strategy: enhancing organizational performance through effective HRM. PalArch's Journal of Archaeology of Egypt/Egyptology, 20(2), 1556-1573.

[12] Biron, M., De Cieri, H., Fulmer, I., Lin, C. H. V., Mayrhofer, W., Nyfoudi, M., ... & Sun, J. M. J. (2021). Structuring for innovative responses to human resource challenges: A skunk works approach. Human Resource Management Review, 31(2), 100768. DOI: 10.1016/j.hrmr.2020.100768

[13] Boon, C., Den Hartog, D. N., &Lepak, D. P. (2019). A systematic review of human resource management systems and their measurement. Journal of management, 45(6), 2498-2537. DOI: 10.1177/0149206318818718

[14] Capozza, C., &Divella, M. (2019). Human capital and firms’ innovation: evidence from emerging economies. Economics of Innovation and New Technology, 28(7), 741-757. DOI: 10.1080/10438599.2018.1557426

[15] Chowdhury, S., Dey, P., Joel-Edgar, S., Bhattacharya, S., Rodriguez-Espindola, O., Abadie, A., & Truong, L. (2023). Unlocking the value of artificial intelligence in human resource management through AI capability framework. Human Resource Management Review, 33(1), 100899.DOI: 10.1016/j.hrmr.2022.100899

[16] Du S, Bstieler L, &Yalcinkaya G (2022) Sustainability-focused innovation in the business-to-business context: Antecedents and managerial implications. Journal of Business Research, 138, 117-129. DOI: 10.1016/j.jbusres.2021.09.006

[17] Gillmore, E. (2022). Mandate dynamics and the importance of mandate loss for subsidiary evolution. International Business Review, 31(6), 101994. DOI: 10.1016/j.ibusrev.2022.101994

[18] Hamadamin, H. H., &Atan, T. (2019). The impact of strategic human resource management practices on competitive advantage sustainability: The mediation of human capital development and employee commitment. Sustainability, 11(20), 5782. DOI: 10.3390/su11205782

[19] Hermans M, & Ulrich M D (2021) How symbolic human resource function actions affect the implementation of high‐performance work practices: The mediating effect of influence on strategic decision‐making. Human Resource Management Journal, 31(4), 1063-1081. DOI: 10.1111/1748-8583.12361

[20] Hitka, M., Kucharčíková, A., Štarchoň, P., Balážová, Ž., Lukáč, M., &Stacho, Z. (2019). Knowledge and human capital as sustainable competitive advantage in human resource management. Sustainability, 11(18), 4985. DOI: 10.3390/su11184985

[21] Kaufman B E (2020) The real problem: The deadly combination of psychologisation, scientism, and normative promotionalism takes strategic human resource management down a 30‐year dead end. Human Resource Management Journal, 30(1), 49-72. DOI: 10.1111/1748-8583.12278

[22] Kryscynski D, Coff R, & Campbell B (2021) Charting a path between firm‐specific incentives and human capital‐based competitive advantage. Strategic Management Journal, 42(2), 386-412. DOI: 10.1002/smj.3226

[23] Lopez-Cabrales, A., & Valle-Cabrera, R. (2020). Sustainable HRM strategies and employment relationships as drivers of the triple bottom line. Human resource management review, 30(3), 100689.DOI: 10.1016/j.hrmr.2019.100689

[24] Malik A (2019) Creating competitive advantage through source basic capital strategic humanity in the industrial age 4.0. International Research Journal of Advanced Engineering and Science, 4(1), 209-215.

[25] Malik, S. Y., Cao, Y., Mughal, Y. H., Kundi, G. M., Mughal, M. H., &Ramayah, T. (2020). Pathways towards sustainability in organizations: Empirical evidence on the role of green human resource management practices and green intellectual capital. Sustainability, 12(8), 3228. DOI: 10.3390/su12083228

[26] Martín-de Castro G, Díez-Vial I, & Delgado-Verde M (2019) Intellectual capital and the firm: evolution and research trends. Journal of Intellectual Capital, 20(4), 555-580. DOI: 10.1108/JIC-12-2018-0221

[27] Martinez-Sanchez A, Vicente-Oliva S, & Pérez-Pérez M (2021) The strategy of human resource flexibility versus absorptive capacity of knowledge: an integrative framework in industrial firms. European Journal of Innovation Management, 24(2), 315-337. DOI:10.1108/EJIM-10-2019-0314

[28] Moustaghfir, K., El Fatihi, S., &Benouarrek, M. (2020). Human resource management practices, entrepreneurial orientation and firm performance: what is the link?. Measuring Business Excellence, 24(2), 267-283. DOI: 10.1108/MBE-12-2019-0119

[29] Olopade BC (2020) Economic growth, energy consumption, and human capital formation: Implication for a knowledge-based economy. International Journal of Energy Economics and Policy. DOI: 10.32479/ijeep.8165

[30] Piwowar-Sulej K (2021) Human resources development as an element of sustainable HRM–with a focus on production engineers. Journal of cleaner production, 278, 124008. DOI: 10.1016/j.jclepro.2020.124008

[31] Popescu C R G (2019) Intellectual Capital”: Major Role, Key Importance and Decisive Influences on Organizations’ Performance. Journal of Human Resources Management Research, 509857, 1-17. DOI: 10.5171/2019.509857

[32] Ramlall S, & Melton B (2019) The role and priorities of the human resource management function: Perspectives of HR professionals, line managers, and senior executives. International Journal of Human Resource Studies, 9(2), 9-27. DOI: 10.5296/ijhrs.v9i2.14492

[33] Sepahvand R, & Bagherzadeh Khodashahri R (2021) Strategic human resource management practices and employee retention: A study of the moderating role of job engagement. Iranian Journal of Management Studies, 14(2), 437-468. DOI: 10.22059/ijms.2020.291391.673843

[34] Seufert, S., Guggemos, J., &Sailer, M. (2021). Technology-related knowledge, skills, and attitudes of pre-and in-service teachers: The current situation and emerging trends. Computers in Human Behavior, 115, 106552. DOI: 10.1016/j.chb.2020.106552

[35] Sima V, Gheorghe I G, Subić J, &Nancu D (2020) Influences of the Industry 4.0 revolution on the human capital development and consumer behavior: A systematic review. Sustainability, 12(10), 4035. DOI: 10.3390/su12104035

[36] Sinambela E A, Darmawan D, &Mendrika V (2022) Effectiveness of Efforts to Establish Quality Human Resources in the Organization. Journal of Marketing and Business Research (MARK), 2(1), 47-58. DOI: 10.56348/mark.v2i1.43

[37] Suliman, A., Rao, A. S., &Elewa, T. (2019). CEO transformational leadership and top management team performance: study from GCC. Measuring Business Excellence, 23(1), 63-79. DOI: 10.1108/MBE-09-2018-0077

[38] Tejedo-Romero F, & Araujo J F F E (2022) The influence of corporate governance characteristics on human capital disclosure: the moderating role of managerial ownership. Journal of Intellectual Capital, 23(2), 342-374. DOI: 10.1108/JIC-03-2019-0055

[39] Tseng, S. T., & Levy, P. E. (2019). A multilevel leadership process framework of performance management. Human Resource Management Review, 29(4), 100668.DOI: 10.1016/j.hrmr.2018.10.001

[40] Zhang Y, Sun J, Yang Z, & Wang Y (2020) Critical success factors of green innovation: Technology, organization and environment readiness. Journal of Cleaner Production, 264, 121701. DOI: 10.1016/j.jclepro.2020.121701

Abstract

References

How to cite