The Impact of Human Resource Management on Financial Performance: A Systematic Review in Cooperative Enterprises

Birhanu Daba Chali () and Vilmos Lakatos
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Birhanu Daba Chali: Faculty of Economics and Business, Doctoral School of Management and Business, University of Debrecen, 4032 Debrecen, Hungary
Vilmos Lakatos: Faculty of Economics and Business, Institute of Accounting and Finance, University of Debrecen, 4032 Debrecen, Hungary

JRFM, 2024, vol. 17, issue 10, 1-13

Abstract: This paper presents a systematic review that examines the influence of human resource management (HRM) on financial performance in cooperative enterprises, utilizing the PRISMA approach. To gather relevant resources, we formulated a search strategy using predefined keywords such as “HRM”, “Financial Performance”, and “Cooperative”. After applying the inclusion criteria (full articles, online accessibility, English language, and relevance to the topic), 26 articles were selected for review. The findings of this analysis reveal a positive relationship between HRM practices and financial performance, with HRM driving both efficiency and profitability. High-performing HRM functions enhance employee productivity while ensuring personnel welfare and improving the organizational climate. Modern HRM practices are crucial in increasing employee engagement, fostering innovative cultures, and improving operational efficiency. These practices directly affect financial performance by linking employee engagement with product quality, profitability, and retention. Based on the studies reviewed, this paper contributes significantly to the existing literature and offers key conclusions that can be drawn from the findings.

Keywords: HRM; financial performance; cooperative enterprises; employee participation; HRM practices (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
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