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In this paper the influence of human resource management (HRM) on business performance is analyzed. The main goal was to thoroughly and systematically examine literature in the domain of HRM, and business performance that resulted in a concise review paper. A large body of literature addresses the HRM-business performance link, thus there was plenty of room for an extensive analysis of various articles. To be more precise, two hundred and twelve (212) articles were analyzed from which 187 were removed through several steps in the review process. The findings indicate that there is a positive relationship between HRM practices and overall business performance. In addition, HRM has a positive influence on employee wellbeing, productivity, and organizational climate. However, there is a possibility that good HRM practices are not the cause of good business performance, but vice-versa. This issue is addressed, and discussed further in this present article. Based on the gathered information, and obtained results, it is safe to suggest that this systematic review paper has a significant contribution to the existing body of literature. In addition, the paper can be used as a starting point for future research in the domain of HRM practices and their impact on business performance.
Bakator et al. (Tue,) studied this question.
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