An examination of human resources management practices on employee performance, the moderating role of hierarchy culture: proposal of a model

Abstract

Employees are a critical asset for any organization, and managing them effectively is key to achieving competitive advantage. Human resource management (HRM) is the process of managing human capital to maximize their potential and productivity. This paper aims to explore the relationship between HRM practices and employee performance, with a focus on the moderating role of hierarchy culture.

To achieve this objective, a systematic literature review was conducted, and existing research on the topic was analyzed. The review revealed that recruitment and selection, training, compensation, job dedication, and task performance are key HRM practices that influence employee performance. Moreover, the review highlighted that hierarchy culture can moderate the relationship between HRM practices and employee performance.

Based on these findings, a theoretical model was developed to explain the interplay between HRM practices, hierarchy culture, and employee performance. The model proposes that a centralized and formalized approach to organizational structure and decision-making, known as power distance culture, can affect the strength or direction of the relationship between HRM practices and employee performance.

In terms of methodology, this paper utilized a systematic literature review approach to synthesize existing research on HRM practices and employee performance. The review process involved a comprehensive search of various academic databases, including Google Scholar, JSTOR, and ScienceDirect, among others. Relevant articles were identified based on predefined inclusion criteria, and data was extracted and analyzed to identify key themes and findings.

Overall, this paper provides a theoretical framework that can help organizations understand the factors that influence employee performance and the role of HRM practices and hierarchy culture in this process. The findings suggest that organizations should adopt a centralized and formalized approach to HRM practices that considers the impact of hierarchy culture on employee performance.[P1] 

Employees represent a critical asset for any organization, and the best organizations oversee human capital in the most optimal and productive manner[P2] . Human resource management is a crucial component of any organization and is required for its competitive advantage. Leading HRM may be as difficult as managing technology and capital. In developed countries, many academics have investigated the link between human resource management and employee performance, and they have concluded that organizations require an effective HRM system since it is viewed and defined as the policies and procedures needed to conduct and manage an organization's human relations routines.

This article provides a comprehensive overview of the relationship between human resources management practices and employee performance, with a particular focus on the moderating role of hierarchy culture in this relationship. Drawing on existing research and theoretical frameworks, the article examines the key HRM practices that influence employee performance, such as recruitment & selection, training, compensation, job dedication, and task performance, and explores the concept of hierarchy culture and its potential impact on the effectiveness of those HRM practices in improving employee performance. Using a theoretical lens, the article proposes a theorical model for understanding the interplay between HRM practices, hierarchy culture, and employee performance.