International Journal of Society Reviews (INJOSER) e-ISSN: 3030-802X

Vol. 2 No. 8, August 2024, pages: 2175~2186

THE ROLE OF HUMAN RESOURCE MANAGEMENT IN INCREASING PRODUCTIVITY

Eloh Bahiroh *1
Universitas Sultan Ageng Tirtayasa
Email: [email protected]

Sri Ndaru Arthawati

Universitas Sultan Ageng Tirtayasa
[email protected]

Fatika Andaristi
Universitas Sultan Ageng Tirtayasa
[email protected]

Najla Indira Faradiva

Universitas Sultan Ageng Tirtayasa
[email protected]

Andi
Universitas Sultan Ageng Tirtayasa
[email protected]

Abstract
Human Resource Management (HRM) has a significant impact on improving
employee productivity through various strategic practices. Careful recruitment
processes ensure that hired employees have the skills and capabilities to fit the
company culture, thereby reducing turnover and increasing efficiency. Ongoing
training and effective performance appraisals help workers develop
competencies and stay motivated to achieve their targets. In addition, a
positive company culture and effective communication play an important role
in creating a supportive work environment, which in turn encourages
collaboration and innovation. Supporting work-life balance and implementing
HR management technologies, such as human resource management systems
(HRMS) and e-education platforms, also improve worker satisfaction and
retention, while enabling higher operational efficiency. With an integrated
approach that combines recruitment practices, training, corporate culture, and
technology, HR management can create a productive work environment that
supports superior performance and business sustainability.
Keywords: Role, Human Resource Management, Productivity Improvement

1
Correspondence author.

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Introduction
In the era of increasingly fierce global business competition, organisations
around the world are required to continuously improve their output power in order
to survive and thrive. Human output is a core factor in maintaining competitive
advantage and achieving long-term business goals (Ichdan, 2024). One of the main
influences affecting output power is adequate human resource management (HRM).
Effective human resource management not only maximises human potential but also
creates a working climate conducive to productivity and innovation (Pochekutova,
2022).
Human resource management encompasses a variety of practices and
strategies designed to effectively manage people. These include recruitment and
selection, training and development, performance appraisal, compensation and
benefits, and labour relations. Each of these practices has an important role to play
in improving individual performance and, overall, organisational output (Laskar &
Singh, 2022).
Human Resource Management (HRM) is one of the core elements in the
success of modern organisations. In today's dynamic and competitive business
environment, effective people management is critical to gaining competitive
advantage. Good HR helps organisations attract, develop and retain the best talent
(Aytekin et al., 2021). Qualified and skilled people are highly valuable assets, and
through structured and detailed HR management practices, companies can ensure
that they have a workforce capable of effectively executing business strategies. In
addition, good people management also contributes to increased people motivation
and satisfaction, which in turn has a positive impact on output power and quality of
work (Sung et al., 2024).
Furthermore, in the current era of globalisation and digitalisation, HRM plays
an important role in helping organisations adapt to rapid changes in the market and
technology. Innovative HR practices enable organisations to develop work cultures
that are responsive, collaborative and orientated towards continuous learning
(Hernita et al., 2021). Faced with challenges such as workforce diversity, the need for
work-life balance, and changes in regulations and labour rights, HRM has become a
strategic element that ensures organisations remain agile and responsive to external
changes. As such, the role of HRM has evolved from a conventional administrative
function to a strategic partner that supports the achievement of organisational goals
over the long term (Arnav et al., 2022).
In addition, technological changes and the dynamics of the modern labour
market also demand new approaches to HR management. The application of
technology in HR management, such as HR information systems and data analytics,
opens up new opportunities to improve the efficiency and effectiveness of employee
handling. On the other hand, social dynamics, such as the increasing need for work-

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life balance and the increasing diversity of the workforce, demand a more inclusive
and responsive approach to HRM (Phahlane, 2023).
Based on this background, this research aims to examine the role of HRM in
productivity improvement through a literature review approach. The research will
not only identify effective HRM practices but will also explore the challenges and
opportunities faced by organisations in implementing these practices. As such, the
results of this study are expected to provide valuable insights for HR practitioners
and organisational leaders in their efforts to improve employee productivity.

Research Methods
The study conducted in this research uses the literature research method,
which is a technique used to collect and analyse information from various written
sources (such as books, journals, articles, and other materials) in order to build a
theoretical basis or understand certain phenomena. (Arikunto;, 2000); (Fadli, 2021);
(Setiowati, 2016).

Results and Discussion

Definition and Concept of HR Management
Human Resource Management (HRM) is a strategic approach to managing
individuals in organisations as valuable assets. The main tasks of HR management
include functions such as recruitment and selection, training and development,
performance appraisal, compensation, and ensuring the welfare and safety of
workers (Zyl & Magau, 2024). Not only focusing on personnel administration, HR
management also plays a role in ensuring that employment policies and practices are
in line with the organisation's business strategy so that short and long term goals can
be achieved (Khatri et al., 2022).
In addition, HR management also plays an important role in building and
maintaining a positive and productive organisational culture. Through development
policies and initiatives that support worker engagement, motivation and
commitment, HR management seeks to create a work environment conducive to
personal growth and collective success (Gurmu, 2020). This involves a holistic
approach that considers the needs of workers as people, not just work resources,
and establishes good communication between management and all levels of the
organisation. As such, HRM is not just about managing workers, but also about
building organisational strength and competitiveness in a sustainable way (Mthupha
& Bruhns, 2022).
Human Resource Management (HRM) consists of various key components
that are interrelated in order to ensure the effectiveness of workforce management
in organisations. The five main components are recruitment, training, performance
appraisal, compensation, and labour relations. Each of these components plays an

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important role in building a productive, motivated, and satisfied workforce (Storey,
2023).
Taken together, these key components are interrelated and form a solid
foundation for effective human resource management in organisations. Proper
implementation of each of these components will not only increase worker
productivity and satisfaction, but also help the organisation achieve its strategic
goals.

Employee Productivity
Employee performance is a measure of the effectiveness and efficiency with
which an employee is able to complete their duties and responsibilities within a
certain period, usually assessed in the form of results produced per unit of input such
as time or resources used. High productivity indicates that an employee is able to
work effectively and efficiently, maximising results while minimising the use of
resources (Sumarsid et al., 2020). This not only reflects individual talent but is also
influenced by a variety of factors such as training, available tools, work environment,
motivation, and effective organisation. Good productivity is critical to overall
organisational performance, as it contributes directly to the achievement of strategic
goals and business success (Prasetiyo, 2023).
Employee performance is influenced by various factors that can be divided
into internal and external. Internal factors include employees' abilities and skills,
motivation, and their health and welfare conditions. Employees who have adequate
technical skills and knowledge of their work tend to be more productive (Felgate,
2020). Motivation, both intrinsic and extrinsic, such as rewards, recognition and
career opportunities, also play an important role in encouraging employees to work
harder and smarter. Good physical and mental health conditions ensure that
employees can work consistently without obstacles that may arise from stress or
other health problems (Yuliana, 2022).
On the other hand, external factors such as work environment, leadership,
organisational culture, and technology also have a significant impact on productivity.
A comfortable and safe work environment, equipped with adequate work facilities
and tools, allows employees to focus and work efficiently. Effective leadership, which
provides clear direction and supports and empowers employees, can increase
productivity by creating a positive and collaborative work environment (Fertilia &
Adji, 2020). An organisational culture that encourages innovation, teamwork and
open communication can also improve productivity by making employees feel more
engaged and motivated. In addition, appropriate use of technology can improve
work efficiency by streamlining processes and automating routine tasks, allowing
employees to devote more time and energy to more strategic and high-value tasks
(Giudice et al., 2021).

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 Thus, employee productivity is an important factor for organisational success
and is influenced by various internal and external aspects. Internal factors include
employee skills, motivation and health, while external factors include work
environment, leadership, organisational culture and technology. To achieve optimal
productivity, organisations need to pay attention to and manage these two aspects
holistically, ensuring employees have the necessary support and resources to work
effectively and efficiently.

Relationship between HR Management and Productivity

Human Resource Management (HRM) plays a vital role in determining
employee productivity and ultimately the success of the organisation as a whole.
Effective HR management encompasses a range of practices including recruitment,
training, development, performance management, introduction of compensation
and benefits (Syahputra, 2023). By ensuring that the right employees are recruited
for the right positions, HR management can increase productivity by placing
individuals with appropriate skills and high motivation. In addition, continuous
training and development helps employees to improve skills and knowledge, which
in turn supports better performance (Cantoni, 2021).
Performance management is another key element of HR management that
has a direct impact on productivity. By setting clear goals, conducting regular
evaluations, and providing constructive feedback, managers can help employees
understand work expectations and areas for improvement. When employees know
that their performance is being monitored and rewarded, they are more likely to be
motivated to achieve performance targets and contribute to their full potential. In
addition, a fair and transparent approach to performance management can build
employee trust and engagement, which are important factors in improving
productivity (Kubiak, 2022).
Compensation and rewards also play a significant role in the relationship
between HRM and productivity. Competitive compensation programmes and fair
reward systems can increase employee satisfaction and motivation, which in turn
affects productivity (Cartwright, 2021). When employees feel that their efforts are
appreciated and well paid, they will tend to be more energised and committed to
working efficiently and producing high-quality output. In addition, fringe benefits
such as further education, regular training, and welfare benefits help employees feel
valued and supported, which creates a positive and productive work environment
(Febriana & Mujib, 2024).
Finally, the organisational culture established by HR management also plays
an important role in employee productivity. Organisations that have a collaborative,
innovative and inclusive work culture tend to have more motivated and productive
employees. HR management can promote this culture through policies, procedures

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and programmes that encourage open communication, teamwork and employee
empowerment (Herlina et al., 2024). By creating an environment where employees
feel heard, valued and given opportunities to grow, HR management can drive
sustainable productivity and improve overall organisational performance (Nguyen,
2023).
Thus, Human Resource (HR) management has a close and significant
relationship with employee productivity. Effective HR management, including
recruitment practices, training, development, performance management, and
compensation systems, can ensure employees have the right skills and remain
motivated to perform optimally. Continuous performance evaluation and fair reward
systems can boost employee motivation and confidence, while a positive and
inclusive organisational culture can encourage collaboration and innovation. By
prioritising holistic and strategic HR management, organisations can significantly
improve employee productivity, ultimately contributing to the overall success of the
organisation.

HR Management Practices that Increase Productivity

Careful and well-planned recruitment practices are one of the important
approaches in Human Resource management that can improve organisational
productivity. An effective candidate selection process not only focuses on the
technical capabilities of prospective employees, but also considers their fit with the
Company's culture and values (Bahiroh & Imron, 2024). Using competency-based
interview methods and psychometric tests can help identify candidates who are not
only capable of completing job tasks but also have the potential to thrive in a
particular work environment. This is expected to reduce employee turnover and
improve operational efficiency, as carefully selected employees tend to stay longer
and contribute significantly to the Company's goals (Roux & Botha, 2021).
Continuous training and development is another important element in
improving productivity through people management. Employees who are given the
opportunity to develop their skills and knowledge tend to be more confident and
capable of performing tasks well (Subramony & Chadwick, 2020). Training
programmes can cover a wide range of topics, from improving technical and
functional expertise to fostering soft skills such as communication and time
management. By investing resources in employee training, companies can improve
the quality of work and keep employees motivated to learn and achieve better
performance (Haghirian, 2022).
Effective performance management is an important HR management practice
to boost employee productivity. It includes clear goal setting, regular feedback, and
a fair performance evaluation system. Well-defined goals provide clear direction for
employees, while regular evaluations allow them to understand how much they are

2180
achieving and areas for improvement (Roundy & Burke-Smalley, 2022). Regular
constructive feedback helps employees feel supported and valued, and gives them
the opportunity to adjust their performance to the company's expectations. A
transparent and objective performance management system can increase employee
trust and engagement, which in turn supports increased productivity (Jirjahn et al.,
2023).
Proper compensation and appreciation also play an important role in
improving employee productivity. A competitive and fair remuneration system,
including salaries, bonuses, and various other facilities, can increase employee
motivation and satisfaction. In addition, recognition of individual achievements and
contributions through appreciation, both in the form of financial and non-financial
incentives, can strengthen employee morale and loyalty (Isfahani et al., 2021). When
employees feel valued and cared for, they tend to work harder to achieve targets,
increase efficiency, and make maximum contributions to the company. A well-
designed appreciation programme can be a powerful tool for boosting high
performance and a productive work culture (Mahbod et al., 2022).
The development of an organisational culture that is inclusive of all people is
one of the human resource management practices that can significantly increase
employee productivity. A work environment that values diversity, opens access, and
provides welfare for everyone will create a situation where all parties feel accepted
and appreciated. A strong and positive corporate culture can encourage
collaboration, improve morale, and reduce stress levels (Sang, 2024). People who are
comfortable and supported in their workplace tend to work together effectively,
come up with innovative ideas, and stay longer in the organisation. Therefore,
establishing and maintaining a supportive organisational culture is a long-term
investment in productivity and business sustainability (Greer et al., 2022).
Effective communication is another human resource management practice
that can have a positive impact on productivity. Management must ensure open and
transparent lines of communication between different levels of the organisation
(Gruman & Budworth, 2022). This can be achieved through regular meetings,
progress reports, as well as internal means of communication such as electronic mail,
intranet, or co-operative applications. When people are well-informed and feel heard,
they are better able to understand the organisation's goals and priorities and how
their role supports them. Effective communication can minimise misunderstandings,
improve coordination, and ensure problems are addressed quickly, all of which
ultimately improve efficiency and productivity (McPhail et al., 2023).
To maximise productivity, management also needs to focus on work-life
balance for people. Organisations that promote work-life balance often witness
improvements in job satisfaction, people retention, and productivity. Flexibility in
work schedules, work from home policies, and adequate leave are some of the ways

2181
to support this balance (Straus et al., 2022). In addition, wellbeing programmes such
as counselling services, sports facilities and social activities can help reduce stress and
burnout. When people do not have to worry about excessive workloads and have
time to rest and relax, they are better able to put their full attention and energy into
their work (Alekseev et al., 2023).
Finally, the implementation of technology in human resource management
can also contribute to improving people's productivity. A sophisticated human
resource management system (HRMS) can automate various administrative tasks,
such as payroll, leave management, and performance reporting, which reduces
manual workload and allows HR teams to focus on strategic tasks. In addition, online
learning platforms and co-operation tools can assist in the efficient delivery of
training and upskilling (Ahammad et al., 2020). By leveraging technology to improve
operational efficiency and achieve data-driven decision-making, organisations can
create a more dynamic and responsive environment, ultimately improving overall
productivity.

Conclusion
Human Resource Management (HRM) is a core component that plays a role in
improving organisational productivity through the implementation of effective and
strategic recruitment, training and performance appraisal practices. A proper
personnel selection process ensures that the hired individuals not only possess the
required technical competencies but also fit into the corporate culture. This reduces
employee turnover and improves operational efficiency. Continuous training
enhances employee skills and confidence while a measurable performance appraisal
system through clear target setting and regular feedback encourages employees to
reach and exceed their goals.
A conducive organisational climate and effective communication also
contribute to productivity through people management. An inclusive and supportive
work culture provides employees with a sense of belonging and being valued, which
enhances collaboration and innovation. Transparent and open information ensures
that everyone in the company has the data needed to get the job done well and is
heard by management, minimising misunderstandings and improving team
coordination.
Work-life balance and the use of technology in HR management also have a
significant impact on people productivity. Organisations that promote work-life
balance by providing flexibility and employee wellbeing programs can observe
increased employee satisfaction and retention. In addition, technology in HR
management such as human resource information systems and online learning
platforms help automate administrative tasks and facilitate efficient training so that

2182
employees can focus on high-value activities. These strategies work synergistically to
create a productive and dynamic work environment.

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