Publication Details
Abstract
This systematic literature review integrates findings from 39 empirical and theoretical studies published between 2022 and 2025 that investigate the digital transformation of Human Resource Management (HRM) and its effects on employee efficiency. Based on the interdisciplinary literature from HRM, organizational behavior, management, information systems, and Industry 4.0 studies, the review combines the findings from qualitative, quantitative, and review-based studies to explain the role of digital HR systems such as e-HRM, HRIS, AI-based HR practices, and analytics-based HR systems in influencing efficiency-related outcomes of employees. The review finds that digital HRM has a positive effect on employee efficiency, which is mediated by process automation, data-driven decision-making, performance management, and digital learning and development, but this is dependent on the alignment of socio-technical factors of technology design, work processes, leadership, and employee digital skills. The review also finds that engagement, organizational agility, digital leadership, and human-centered governance are important mediating and moderating variables that determine whether the digital transformation of HRM is successful in improving employee efficiency. However, the literature is still scattered, with a lack of consistency in the conceptualization of efficiency, a lack of longitudinal studies, and a lack of integration of ethical and governance perspectives in AI-based HRM models. By integrating the convergent and divergent findings from the literature, this review develops an integrative and socio-technical framework that links digital HRM practices to employee efficiency. The review makes a theoretical contribution to HRM by treating employee efficiency as a multi-level outcome of digital transformation and provides evidence-based recommendations to organizations for the effective, ethical, and sustainable digitalization of HRM.