THE ROLE OF HUMAN RESOURCE MANAGEMENT IN ENHANCING ORGANIZATIONAL RESILIENCE DURING ECONOMIC CRISES: A REVIEW
DOI:
10.5281/zenodo.23050903Published:
2026-09-29Downloads
Abstract
Economic crises present profound operational and existential threats to organizations globally, necessitating dynamic capabilities that extend beyond reactive cost-cutting measures. This critical review examines the strategic role of Human Resource Management (HRM) in building, sustaining, and deploying organizational resilience during severe macro-economic disruptions. Synthesizing 15 benchmark peer-reviewed studies published between 2021 and 2026, this study categorizes strategic HR interventions across anticipatory, coping, and transformative phases of crisis management. Findings indicate that traditional defensive HR practices, such as immediate mass lay-offs and budget freezes, often erode institutional memory and trust, whereas strategic HR practices—including agile talent reallocation, continuous reskilling, psychological safety nets, and empathetic leadership—significantly enhance employee adaptive capacity and organizational resilience. Furthermore, structural equation modeling evidence confirms that the relationship between strategic HRM and recovery performance is fully mediated by workforce adaptability and mutual trust, bounded by crisis severity. This review offers an integrative conceptual framework and actionable guidance for executives seeking to transform human capital into a competitive buffer against systemic economic shocks.
Keywords:
Economic Crises Human Resource Management Organizational Resilience Psychological SafetyReferences
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