Human Resource Management Practices and Firms’ Performance: A Review of Mediating Models

Abstract

This study aims to categorize the processes that mediate the company's performance in HR practices to offer a better-organized comprehension of the operation of this process. Important themes and arbitrage kinds were taken out and examined to determine the ranks. The breadth of the examined publications places limitations on the investigation, perhaps making all potential mediation strategies unfeasible. Moreover, the updated research's diverse sectors and circumstances could restrict how broadly the findings can be applied. When creating their HR strategy, organizations should take hierarchical arbitrage approaches into account. This will help to ensure that their approach is in line with whether the goal impact is at the individual employee or firm-wide level. It can enhance HR procedures to get better performance results. Future studies should examine the ways in which various settings (such as industry-specific characteristics) influence the relative importance of individual vs firm-level arbitrage mechanisms. To validate these categories in a variety of organizational situations, more empirical research is required.