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Factors affecting human resource agility: A literature review and future research directions

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Article: 2193181 | Received 03 Jan 2023, Accepted 16 Mar 2023, Published online: 22 Mar 2023

Abstract

This article gives a contextual understanding of human resource agility by highlighting organizational factors that influence it. The existing literature lacks assessments of the level of knowledge on this subject. The objective of this research was to address this gap by examining scholarly advancements in the area of human resources agility. To accomplish this, researchers reviewed all of the articles that would have been available in various electronic databases up to 2022. Conceptually, the data enabled us to determine that the agility of human resources comprised three connected dimensions: proactivity, resilience, and adaptation. One can acquire these characteristics through I) effective communication, II) delegation of authority, III) decision-making, and IV) work teams. This study also allowed us to suggest a plan for future research on the agility of human resources and other related topics. This article highlights the significance of human resource agility and its potential impact on business competitiveness, particularly in developing nations. It also brings attention to a topic that has limited discussion in academic literature.

Public Interest Statement

Human resources’ agility is an essential factor that can make an organization successful and able to compete. In today’s fast-paced and changing business world, employees must be adaptable, flexible, and quick to respond to new opportunities and challenges. However, very little is known regarding the factors that impact human resource agility. Therefore, this literature review aims to fill this gap by exploring the current condition of knowledge on the factors affecting human resource agility. By conducting a comprehensive review of the available literature, this study aims to identify gaps in our understanding and provide recommendations for future research. The findings of this review will assist organizations, policymakers, and researchers in ensuring they have the human resources needed to succeed in an ever-changing business environment.

1. Introduction

Institutions compete in a highly volatile business environment marked by rising competitiveness (local and worldwide). A series of global crises, constantly changing consumer requirements, market instability, and new technologies have contributed to this (Menon & Suresh, Citation2022). Scholars and researchers both recognize the need for agility in taking advantage of and dealing with these challenges. The ability to respond quickly to unpredictable changes in a chaotic environment was described as agility (Felipe et al., Citation2016; Khodabandeh et al., Citation2018).

In this regard, the human resources in any organization have traits that promote agility and are usually called “human resource agility” (for example, Alavi et al., Citation2014; Harsch & Festing, Citation2020; Lai et al., Citation2021). In this paper, we utilize the concept of “human resource agility” since studies indicate that it is a new way of management that emerged as an appropriate response to dynamic and too-sensitive environments (Menon & Suresh, Citation2022; Munteanu et al., Citation2020). Agile human resources can deal with changes that come up out of the blue and turn them into opportunities to grow market share and meet customer needs (Harsch & Festing, Citation2020; Lai et al., Citation2021).

Despite its relevance, the existing literature lacks assessments of the level of knowledge on this subject and the factors that lead to the agility of human resources. For example, the literature focused on ability and behaviors, and most scholars agreed that the agility of human resources has three dimensions “proactivity, resilience, and adaptability” (AL-Kasasbeh et al., Citation2016; Baran & Woznyj, Citation2021; Bushuyeva et al., Citation2019; Cai et al., Citation2018; Joiner, Citation2019; Muduli & Pandya, Citation2018; Pereira et al., Citation2021).

Besides that, the agility of human resources is presently under investigation, and existing studies are confined to a small number of HR practices that have been explored in separate studies (Niederman et al., Citation2018; Petermann & Zacher, Citation2022; Radhakrishnan et al., Citation2022; Salmen & Festing, Citation2022).‏

Therefore, there is a need for additional debate on the elements that influence it. Based on these facts and a review of the relevant literature, the purpose of this study is to advance the field by providing a theory-based conceptual framework, leading to an agenda for future research that will further our understanding of the agility of human resources and the factors that influence it (Post et al., Citation2020).

The subsequent sections of this work are structured as follows: In the first section, we will provide a list of the database names and URLs used to find the information for this article. Then, we will offer a comprehensive summary of what we discovered about the agility of human resources from 2014 until 2022. We will also provide a detailed review of the factors that affect human resource agility. After that, we discuss the paper’s limits and contributions and provide a plan for future research.

Table provides the database names and URLs used to find information for this article.

Table 1. Data sources

2. Methodology

The purpose of a literature review is to give a fair assessment of a research topic by using a method that is efficient, trustworthy, and reliable (Kitchenham & Charters, Citation2007). The author evaluated articles in various electronic databases until 2022. The selection procedures used keywords like (human resource agility, effective communication, delegating authority, making decisions, and work teams). In addition, Boolean logic (or/and) was employed to show how search terms were related and to find relevant articles.

The review methodologies proposed by Petticrew and Roberts (Citation2008) may assist us in analyzing the existing literature more critically, given the importance of the agility of human resources in businesses. In accordance with Arksey and O’malley (Citation2005), Snyder (Citation2019), Tranfield et al. (Citation2003) this study investigates a topic that is in its infancy in the academic literature by reviewing the current literature in many databases and identifying the specific factors that impact the agility of human resources. Figure displays the approach for evaluating papers included in this review.

Figure 1. The procedure for reviewing articles.

Figure 1. The procedure for reviewing articles.

After evaluation and analysis, 63 articles were included in the review, categorized as follows: 19 articles focused on human resource agility, whereas 44 articles focused on the factors that lead to human resource agility (Sources: SAGE = 4, Taylor & Francis online = 4, Science Direct = 4, Springer Link = 4, Emerald Insight = 5, Elsevier = 10, Willey = 11, and Google Scholar = 21). Now each topic will be explored and explained independently in the following sections.

2.1. Review of the Literature on Human Resource Agility

In the 21st century, agility is a new way to think about how to run a business. Where the difficult environment has set stress on institutions to enhance their ability to adapt, build resilience, and act quickly. In the early 1990s, the agility of human resources arose as a new response to changeable and dynamic surroundings and became a vital aspect of the success and growth of businesses (Al-Faouri et al., Citation2014).

In addition, the agility of human resources is regarded as a practical concept of the new managerial that has appeared to empower businesses through their workers to drive innovation and adjust to the challenges of the unsteady enterprise environment, such as the opening of the world market, communication advancements and rapid technological (Munteanu et al., Citation2020).

In this context, the literature says that agility is the capacity to respond rapidly to unanticipated developments (Menon & Suresh, Citation2022). In other terms, the agility of human resources is essential for the production of an agile enterprise because it relies on active workers rather than systems. The agility of human resources is one of the most important factors affecting an organization’s performance and its chances of surviving in a competitive business climate and accomplishing its objectives (Qin et al., Citation2015).

Besides that, the vast majority of sources, including Saleem et al. (Citation2021), AL-Kasasbeh et al. (Citation2016), Alavi (Citation2016), Muduli (Citation2016), Nadhira Putri and Mangundjaya (Citation2020) Sherehiy et al. (Citation2007), Sherehiy and Karwowski (Citation2014) concur that human resource agility focuses on three measures: “proactivity, adaptability, and resilience”. Figure shows the constructs of agility of human resources along with their respective explanations.

Figure 2. The constructs of agility of human resources.

Figure 2. The constructs of agility of human resources.

The concept of “human resource agility” has previously been defined in the literature. Consequently, this work presents a comprehensive assessment of the definitions used in the existing literature to extrapolate the dimensions and scales of human resource agility for future research. Table provides the authors, publication year, definitions of “human resource agility,” and a brief summary of each study published between 2014 and 2022.

Table 2. List of Literature on HR Agility

In our review, the author utilized the various steps described by García et al. (Citation2020), Kitchenham and Charters (Citation2007), and Mikalef et al. (Citation2018) to conduct a critical analysis of the gathered data in order to: (1) identify the gaps in the existing literature. (2) construct research questions. (3) extract and filter data based on exclusion and inclusion criteria. (4) put together a report of the findings. (5) determine the path of future research.

The method of review was guided by the main research question: (1) what variables influence the agility of human resources? (2) what is the relationship between these variables? By paying attention to these variables, the most important topics and relevant publications were identified. The following are the answers to these questions:

2.2 The agility of human resources and effective communication

Effective communication has received a great deal of attention over the past several decades, as scholars have recognized its relevance in the attainment of an organization’s objectives (Razak et al., Citation2019). Researchers described successful communication as a technique of human behavior characterized that involves the flow of information, active participation, and the sharing of information between employees at all levels of an organization (Yuest & Sumantra, Citation2017).

In addition, Rajhans (Citation2018) asserts that effective communication aids employees in comprehending the entire corporate organization’s strategy, exploitation and knowledge-sharing in an optimal technological and cultural environment are also essential.

In their concept, Nwabueze and Mileski (Citation2018) emphasize the significance of exchanging knowledge and data inside an organization to improve its capacity for functioning effectively and efficiently. Effective communication is defined by the following important components: (1) an information exchange; (2) a process or occurrence of sending data; (3) a written or verbal transmission; (4) an approach for effectively communicating thoughts; and (5) a method via which employees interact via a common system (Syakur et al., Citation2020).‏

Therefore, effective communication among employees and supervisors is required for adapting to changes. Researchers have asserted that communication is one of the most crucial aspects of administration and may be the most crucial aspect of damage control (Muhamedi & Ariffin, Citation2017).

After researching and assessing the literature on the agility of human resources and the impact of effective communication on it, the authors found that the correlations have been positive in most scholarly works. For instance, Lee et al. (Citation2019) found that an effective method of communication had a direct effect on the agility of human resources, specifically proactive behavior. Lassoued et al. (Citation2020) revealed that effective communication practices are vital organizational practices for resolving any difficulties and gaining a competitive edge and that these behaviors are significantly correlated with the agility of human resources.

In addition, Cai et al. (Citation2018), Deksnys (Citation2018), Farahani and Salimi (Citation2015), Citation2019), Sumukadas and Sawhney (Citation2004), Pitafi et al. (Citation2019); Muduli (Citation2016, Citation2017) reported that effective communications between employees within a company positively impact the agility of human resources. Based on the findings, we can conclude that efficient communication among employees is essential to fostering human resources agility. Besides that, the existing literature lacks sufficient assessments of the level of knowledge on this subject. Future research should examine these topics in greater depth.

2.3 The agility of human resources and delegation of authority

Human resources are the most valuable source of production and capital. They are also the source of competitive advantage and the development of basic organizational capabilities. Using more efficient employees is one of the best ways to gain a competitive edge in the current market (Juhana et al., Citation2020). Scholars described authority delegation as the procedure of giving power to lower levels of management so that employees can have a say in decisions that affect their performance (Liu, Citation2017).

Besides that, Ghamari et al. (Citation2018) defined delegation of authority as the provision of the power and authorization to make decisions, use financial resources, and perform responsibilities in order to assist the execution of responsibilities and tasks. In this case, Anwar and Abdullah (Citation2021) concluded that a delegation of authority has a big effect on how well human resources work as a whole. In addition, all employees should think in terms of human resource agility, so that organizations can move quickly.

Furthermore, Al-Jammal et al. (Citation2015) investigated the effects of delegation of authority on job performance and discovered that delegation of authority correlates positively with the effectiveness of various tasks. Alhosani et al. (Citation2019) evaluated the link between the delegation of authority and employee performance within the company and concluded that, in competitive situations, the delegation of authority is essential and has a significant impact on employee productivity and organizational success.

In addition, Lassoued et al. (Citation2020) discovered that delegation of authority had a statistically significant positive influence on the decision-making and problem-solving skills of workers. Moreover, there is a positive and significant correlation between the delegation of authority and proactivity, adaptability, and resilience in human resources (Al-Jammal et al., Citation2015; Aldalayeen & Aldofairy, Citation2016; Farahani & Salimi, Citation2015; Nouri & Mousavi, Citation2020; Sofijanova & Zabijakin, Citation2013).

In short, these reviews lead us to infer that employee collaborating, sharing their viewpoints, and having decision-making authority are essential to fostering human resources agility. Besides that, the existing literature lacks sufficient assessments of the level of knowledge on this subject. Future research should examine these topics in greater depth.

2.4 The agility of human resources and decision making

The literature highlights the importance of decisions for employees and businesses (Athari & Bahreini, Citation2022). Numerous definitions of decision-making exist. For instance, Hanaysha (Citation2016) defined decision-making as a process of letting the organization’s workers express their suggestions, views, and recommendations concerning their job and department. Tindowen (Citation2019) divided the decision-making process into many stages: (1) problem identification, (2) information gathering, (3) identifying decision criteria, (4) choice of the decision, and (5) execution and updating.

Decision-making is contingent on the level of independence inherent to individual positions (Mawad et al., Citation2022). This provides workers with a chance to provide thoughts and recommendations necessary to enhance corporate commitment to attaining its goals (Ugwu et al., Citation2019 . Participation of employees in decision-making has a significantly positive effect on agility (Kock & Georg Gemünden, Citation2016).

Recent research by Nafei (Citation2016) indicates that organizations that encourage employee participation in decision-making outperform their competitors and are positively related to business effectiveness. Sherehiy and Karwowski (Citation2014) concur that employee engagement in decision-making provides the chance for employees to gain the skills and technical knowledge necessary for achieving high productivity. It also helps to improve staff morale and self-assurance, which leads to high levels of creativity, and it is significantly and positively correlated to the agility of human resources.

Multiple studies have explored the link between the agility of human resources and decision-making. These have led to positive arguments in the academic literature. These studies were accomplished in various regions around the globe and in different situations. Muduli (Citation2016, Citation2017) studied the impact of employee involvement as organizational practice “decision making” on workforce agility. Findings indicated that empowerment in decision-making is deemed essential for agile workforces.

According to Muduli and Pandya (Citation2018), Alavi et al. (Citation2014), Harraf et al. (Citation2015), Munteanu et al. (Citation2020), Natapoera and Mangundjaya (Citation2020) employees with granted authority and collaboration in decision-making tend to be more adaptable and responsive to the external environment. This was interpreted as evidence that allowing the workforce to contribute to decision-making will strengthen and improve the agility of human resources. Besides that, the existing literature lacks sufficient assessments of the level of knowledge on this subject. Future research should examine these topics in greater depth.

2.5 The agility of human resources and work teams

Literature defines a work team as a group of organization employees whose abilities complement one another and whose experiences and efforts are united to attain a shared objective. The staffs feel jointly accountable, which may boost their adaptability (Abuzid & Abbas, Citation2017). Unit-level or cooperative strength is a shared emergent condition characterized by four measurements: Independence, significance, influence, and effectiveness (D’innocenzo et al., Citation2016).

Besides that, O’neill and Salas (Citation2018) discovered that a work team entails many characteristics: (1) Teams must accomplish stakeholder objectives with the best quality. (2) Over time, teams must develop into increasingly competent work units. (3) Teams must provide members with opportunities to improve and expand their skills over time.

In addition, Hanaysha (Citation2016), Muduli (Citation2016), and Qin et al. (Citation2015) argued that work teams are a group activity that aims to achieve a common decision by involving organization employees in sharing their skills, knowledge, and experience. These improve the behavior of the workforce and its ability to be adaptable, proactive, and resilient.

Many scholars have emphasized the benefits of work teams. For instance, Erkutlu and Chafra (Citation2012) claim that empowering teams inside a business has an effect on employee proactive and the workforce. Munteanu et al. (Citation2020), and Sofijanova and Zabijakin (Citation2013) assert that a company that supports work teams has the greatest impact on enhancing agility. Muduli (Citation2017), Sherehiy and Karwowski (Citation2014) observed that for an organization to foster workforce agility, a focus on work teams requires attention to the internal, external, and interactional working environments and that work team has a positive impact on the agility of the workforce.

In addition, the work teams have been organized in previous studies on developing workforce agility (Hawajrah & Al-Azab, Citation2019; Ibrahim & Mona, Citation2018; Muduli, Citation2017; Munteanu et al., Citation2020; Sumukadas & Sawhney, Citation2004; Varshney & Varshney, Citation2020). It has been shown that work team activities contribute significantly to the development of a proactive attitude among employees, a quick adaptation to a changing environment, as well as an increase in flexibility. Based on the findings, we can conclude that collaboration inside teams among employees is essential to fostering human resources agility. Besides that, the existing literature lacks sufficient assessments of the level of knowledge on this subject. Future research should examine these topics in greater depth.

This paper proposes a conceptual model with four factors whose effects on human resource agility were measured in separate studies (e.g. Deksnys, Citation2018; Hawajrah & Al-Azab, Citation2019; Lassoued et al., Citation2020; Muduli, Citation2016). Figure depicts the association between these elements and their effect on human resource agility.

Figure 3. Factors affecting human resource agility.

Figure 3. Factors affecting human resource agility.

3. Discussion and Conclusions

The primary purpose of this review was to assess the academic development of the agility of human resources and to provide a better knowledge of the factors influencing it. Our findings indicate that the agility of human resources with three interconnected dimensions: proactivity, resilience, and adaptability, arose as a new response to changeable and dynamic surroundings and became a vital aspect of the success and growth of businesses (AL-Kasasbeh et al., Citation2016; Al-Faouri et al., Citation2014; Alavi, Citation2016; Muduli, Citation2016; Nadhira Putri & Mangundjaya, Citation2020; Saleem et al., Citation2021; Sherehiy & Karwowski, Citation2014).

Various factors are impacting the agility of human resources, as demonstrated by this review. First, effective communication plays a significant role in enhancing the agility of human resources through analyzing the flow of information, active participation, and the sharing of information between employees at all levels of an organization followed by the development of a suitable strategy to cover the gap between the current and desired agility (Cai et al., Citation2018; Deksnys, Citation2018; Farahani & Salimi, Citation2015; Khan et al., Citation2019; Muduli, Citation2016, Citation2017; Pitafi et al., Citation2019).

Second, the delegation of authority that considers using more efficient employees is one of the most effective ways to gain a competitive edge in the current market. By empowering lower levels of management so that employees can influence decisions that affect their performance, this strategy is working to encourage employees to improve their agility (Al-Jammal et al., Citation2015; Aldalayeen & Aldofairy, Citation2016; Farahani & Salimi, Citation2015; Nouri & Mousavi, Citation2020).

Third decision-making, which has a huge effect on the agility of human resources to change the way an organization responds to threats and challenges in the market by allowing workers to express their suggestions, views, and recommendations concerning their job, particularly if the organization wants to use its employees as a competitive advantage to stay in business (Alavi et al., Citation2014; Harraf et al., Citation2015; Muduli & Pandya, Citation2018; Munteanu et al., Citation2020; Natapoera & Mangundjaya, Citation2020).

Fourth, work teams as a group activity that aims to achieve a common decision by involving organization employees to share their skills, knowledge, and experience, which leads the organization to confront complexity and uncertainty in a highly dynamic environment. This enhances the workforce’s behavior and capacity to be adaptive, proactive, and resilient (Hawajrah & Al-Azab, Citation2019; Muduli, Citation2017; Munteanu et al., Citation2020; Varshney & Varshney, Citation2020).

Lastly, the correlation between effective communications, the delegation of authority, decision-making, and work teams on the one hand, and the agility of human resources with three interconnected dimensions: proactivity, resilience, and adaptability, on the other hand, were evident from the analysis of the relevant literature. Likewise, this review contributes by promoting discussion on a topic that is still in its infancy in the academic literature. This study also guides policymakers and organizations to seek the agility of human resources in order to gain a competitive edge in a dynamic business environment and offers an important conceptual framework for future studies.

4. Implications, Limitations, and Future research directions

4.1 Implications

This paper has many implications. First, this study recognized and summarized the significant research drivers. Second, as revealed by this analysis numerous elements are influencing the agility of human resources, which enables organizations to develop and adopt strategies that result in improved adaptability to an environment that is changing rapidly. Thirdly, the literature has been undertaken on each of these factors independently in a variety of frameworks, but very few studies (if any) have investigated the factors that directly influence the agility of human resources using a single model.

Equally important, given the paucity of data and the significance of these factors impacting the agility of human resources, this review has aimed to fill this gap in the literature and offer a foundation for future research. This review also may have substantial implications for organizations to focus on encouraging employees to self-assurance, develop their approaches in order to achieve competitive advantages, improve employee abilities, and adjust to external and internal changes in the workplace.

Similarly, when policymakers in an organization are made aware of these factors, they are more likely to put in place and refine processes that shape suitable principles for developing and enacting successful choices about agility. Improving human resource agility could also lead to increased efficiency and competitiveness in the marketplace. Organizations should consider implementing strategies that support HR agility, such as providing training and development opportunities, promoting effective communication, and encouraging employee involvement in decision-making processes.

In sum, our review has policy implications for different stakeholders in many contexts. Organizations may need to focus more on factors affecting human resource agility. HR professionals may need to invest in training and development programs, cultivate an innovation culture, and encourage workplace flexibility to promote HR agility. Policymakers and regulators should consider whether current regulations and standards promote HR agility rather than hinder it. Researchers may need to continue these studies and build new ones in different settings to better understand HR agility.

4.2 Limitation

As previously stated, there is a paucity of scholarly literature on this topic. Due to the novelty of the topic, it is restricted. Very few researchers explored the factors that contribute to the agility of human resources, posing the problem of seeing the topic through a narrow lens. This theoretical framework may have benefited from a plethora of relevant knowledge.

Another limitation of the study is that the review was only done until 2022, which influences the accuracy of the data. Future studies should enhance the sample size to gather additional information on the factors that influence the agility of human resources.

4.3 Future research directions

The review’s conclusions and paucity of studies on this topic lead us to propose some direction for future research. The first proposal for future studies is to generalize and support this review by applying this framework to different businesses and countries. The second proposal for future studies is to use a qualitative approach to collect data, which may give us more information about the role of these factors. Comparing two or more sectors may also provide important information that will help us understand how these factors work to make human resources more agile. The third proposal for future studies is to find other factors that affect the agility of human resources and add them to the proposed framework to expand the existing model and get more useful information for scholars and businesses.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Mohamed Husni Ali Athamneh

Mohamed Husni AliAthamneh is a PhD candidate at the Department of Business and Management, College of Graduate Studies, Universiti Tenaga Nasional (UNITEN), Kajang, Malaysia. His interests include Human Resource Agility, continuous improvement and employee empowerment.

Juraifa Jais

Juraifa Jais is a Senior Lecturer in the Department of Business and Management, College of Graduate Studies, Universiti Tenaga Nasional (UNITEN), Kajang, Malaysia. Her interests include Human Resource Agility, continuous improvement and employee empowerment. Her publications have appeared in international refereed journals.

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