HARAMAYA UNIVERSITY

COLLEGE OF BUSINESS AND

ECONOMICS
DEPARTMENT OF MANAGEMENT
POST-GRADUATE STUDIES WEEKEND
MBA PROGRAM
STRATEGIC HUMAN RESOURCES
MANAGEMENT COURSE ASSIGNMENT
ARTICLE REVIEW

C O V I D - 1 9 ’ s I m pa c t o n
h u m a n r e s o u rc e
m a nag e m e n t
s t r at e g y
AREVIEW STUDY

Article published by Reefat Arefin Khan

Submitted by Abadir Tahir Mohamed
c/pgp/28/15
Submitted to Mr. Mikre Fekadu
Ass. Prof. at Haramaya
University
Date April/16/2023
TABLE OF CONTENT
ABSTRACT
ii
INTRODUCTION
01 1
FINDINGS AND DISCUSSION
02 8
THEORETICAL IMPLICATIONS
03 9
PRACTICAL IMPLICATIONS
04 10
LIMITATION OF THE STUDY
05 11
CONCLUSION
06 12
RECOMMENDATION TO
07 AUTHOR 12
OTHER POSITIVE SIDE EFFECT
08 OF COVID-19 12
CITED LITERATURE
09 13
APPENDIX: ARTICLE REVIEWED
10 15
 ABSTRACT

A JOURNEY OF RISK & REWARD

The article focuses on the impact of COVID-19 on human resource

management strategies. The pandemic has brought about significant
changes in the workplace, and HR professionals need to adapt to these
changes to ensure that their organizations can continue to function
effectively.

This review study article paper is done by Reefat Arefin Khan and it
examines the impact of the COVID-19 pandemic on human resource
management strategies. The study uses a qualitative approach to analyze
the literature on the subject and present the findings. The study also
provides insights into the theoretical and practical implications of the
pandemic on HRM strategies.

This research shows that COVID-19 pandemic is causing change in the

external environment for organizations, and therefore HRM strategy is
becoming more important as it help to motivate employees and develop
the workforce. The research identifies HRM activities during the
pandemic and how HRM adapts its strategy to match the organization’s
goal. Employee anxiety is increased due to the economic conditions and
the pandemic is causing change in organizational strategy and critical
goals. The research uses a literature review to analyze recent articles,
researches papers, and scientific studies.

KEYWORDS: Covid-19;Employees’ Mental

Health; Human Resource Management; Hrm; Hrm
Strategy; Physiological Relations; Remote Work.
 COVID-19'S IMPACT ON
HUMAN RESOURCE
MANAGEMENT
STRATEGY: A REVIEW
STUDY

ABADIR TAHIR MOHAMED

This project is an article review
submitted to the Department of
Management at Haramaya University's
College of Business and Economics. It is
an individual assignment for article
review on Strategic Human Resource
Management, focusing on the topic of
"COVID-19’s impact on human resource
management strategy." The cover page,
graphic design and the revision was done
by Abadir Tahir.
The author of the article is Reefat Arefin
Khan, College of business administration
international university of business
agriculture and technology the article
revised twice before publishing and
finally published at December 2022. The
article was reviewed by Abadir Tahir
Mohamed, an MBA student at Haramaya
University, and submitted to Mr. Mikre
Fekadu, Haramaya University, for course
strategic Human Resource Management.

Jigjiga, Ethiopia

“FIRE IS THE TEST OF GOLD;

ADVERSITY, OF STRONG
MEN.”

– MARTHA GRAHAM
 1. INTRODUCTION

The COVID-19 pandemic has had a significant impact on the way businesses operate.
Human resource management (HRM) strategies have been particularly affected, as
organizations have had to adjust to the changing environment. This review study by
Reefat Arefin Khan examines the impact of the COVID-19 pandemic on HRM strategies.
The study is based on a qualitative analysis of the literature on the subject and provides
insights into the theoretical and practical implications of the pandemic on HRM
strategies.

Human resource management (HRM) is responsible for providing suitable employees for
an organization, as their talents are essential for success. Even though financial and
intangible resources are important, motivated employees can drive an organization
towards success. During the COVID-19 outbreak, HRM demonstrated its importance by
taking rapid action to improve employee performance, which had been negatively
affected. This was achieved by revising organizational policies, systems, and practices to
enhance employee attitude, behavior, and performance.

HRM policies control employees and provide workplace training to develop work-related
skills. HR encourages employees to improve their skills to achieve their own goals,
which benefits the company's goals. Due to COVID-19, HR needs to modify their
policies to manage employees using new techniques such as remote work, virtual
training, and developing a positive workplace environment.

The main objective of this research is to find out the present conflict situation
between the HRM and the employees because of the pandemic and HRM steps in order
to control the situation. Secondary objectives of this research are as follows:

1. To identify the main concerns for the employees.

2. To identify the concerns for human resource department.
3. To find out suitable strategy to be adopted by the HRM in order to control
the situation.

This study was conducted by conducting a comprehensive literature review that included
journal articles, research papers, and scientific studies to identify the current state of
human resource management during the COVID-19 pandemic. The primary
methodology of this research was to analyze secondary data to determine how
organizations responded to the pandemic and the impact on employees' mental health.To
ensure the validity of the research, reputable sources such as Research Gate, Wiley,
SSRN, and Google Scholar were utilized as the primary research engines.

The findings of this study provide valuable insights into the challenges faced by
organizations during the pandemic and the strategies implemented to mitigate the impact
on employees. The study also sheds light on the importance of prioritizing employee
mental health during times of crisis. Overall, this research serves as a valuable resource

1
 for organizations seeking to improve their human resource management practices during
times of crisis.

1.1.COVID-19 EFFECTS ON EMPLOYEES

The pandemic has had a profound impact on employees, with many experiencing job
losses, reduced working hours, and increased stress levels. The article examines how HR
strategies can help to address these issues and support employees during this challenging
time.

The COVID-19 pandemic has had a profound impact on employees in various ways.
From mental health and financial stress to physical health, productivity, and
engagement, the effects are far-reaching. It's worth noting that employees don't
necessarily have to contract the virus to be affected by it. The pandemic has external
mental effects on employees, which can be just as detrimental.

Research has shown that the pandemic situation has led employees to make changes in
their daily work habits (Fana et al., 2020). These changes can have a significant impact
on an employee's motivation, work habits, and attitude, as well as their mental health.
It's essential for employers to recognize the impact of COVID-19 on their employees
and take steps to support them during these challenging times.

To mitigate the negative effects of the pandemic, employers can offer resources such as
mental health support, financial assistance, and flexible work arrangements. By doing
so, they can help employees maintain their well-being and productivity, which
ultimately benefits the organization as a whole.

In conclusion, the COVID-19 pandemic has had a profound impact on employees,

affecting their mental and physical health, productivity, and engagement. Employers
must recognize these effects and take steps to support their employees during these
challenging times. By doing so, they can help employees maintain their well-being and
productivity, which ultimately benefits the organization as a whole.

1.2.GOVERNMENT LEGISLATION

Governments around the world have implemented various measures to control the spread
of COVID-19, including lockdowns, travel restrictions, and social distancing guidelines.
The article discusses how HR professionals need to be aware of these measures and
ensure that their organizations are in compliance with relevant legislation. The corona
virus has forced governments to enact new rules and regulations across all sectors of the
country (Cormacain and Bar-Siman-Tov, 2020). These measures include lockdowns,
travel restrictions, and limitations on import and export. In some cases, employees are
also restricted from going to work. The government is also pushing organizations to
ensure the safety of their employees in the workplace and controlling work schedules
during the pandemic (Oulkhouir, 2020). However, COVID-19 has also had a significant
impact on employment laws. Changes in federal regulations and employment laws have
affected the overall outcomes of organizations' workforces (Corporate Wellness
Magazine, 2022). These changes have also shaped the principles of organizations, and

2
 employees expect changes in the workplace during the pandemic. Positive effects can be
seen when organizations adapt their work environment and policies to prioritize safety in
the workplace. On the other hand, negative effects can occur when organizations
implement new rules that negatively impact employees during the pandemic. It is crucial
for organizations to navigate these changes effectively to ensure the safety and well-
being of their employees while maintaining productivity and profitability. By staying
informed and adapting to the evolving situation, organizations can emerge from the
pandemic stronger and more resilient.

1.3.MACRO-ECONOMICS

The pandemic has had a significant impact on the global economy, with many businesses
struggling to survive in the current economic climate. The article looks at how HR
professionals can help their organizations navigate these challenges and develop
strategies to ensure their long-term sustainability.

The COVID-19 pandemic has had a significant impact on financial markets worldwide,
causing abrupt responses and waves of crises. According to Barua et al. (2021), the fifth
wave resulted in lower trading volume, declining prices and indexes, more sellers than
buyers in the market, and lower firm value of listed companies. Ahmed (2020) has also
shown that the global economic growth forecast for 2020 is -4.9%, due to the slowing of
global economic growth and the negative impact of the pandemic.

As a result, the unemployment rate has increased worldwide, with the creation of new
job sectors on hold due to the economic crisis (Ahmed, 2021). This has led to concerns
about job security among employees, while organizations struggle to maintain their
normal business sustainability. Failure to create new job opportunities can lead to a rise
in the country's unemployment rate, causing fear of job loss, uncertainty about the
future, and financial safety issues among employees. It is crucial for organizations to
prioritize job creation and business sustainability to mitigate the impact of the pandemic
on the economy and the workforce. By doing so, they can provide job security and
financial stability to their employees, while contributing to the overall economic
recovery.

1.4.TOP ISSUES ON EMPLOYEES’ MIND

The article examines some of the top concerns that employees are currently facing, such
as job security, work-life balance, and mental health. HR professionals need to be aware
of these concerns and develop strategies to address them. The results of a survey
conducted for this research have been analyzed to determine the top concerns on
employees' minds at present. The researcher utilized a bar chart to display the survey
results, which revealed that the primary concern among employees is financial and
economic recovery, with 81% of respondents indicating this as their top worry. The
second highest percentage, at 56%, indicates that employees are also concerned about
their health and well-being.

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 The researcher notes that employees are more preoccupied with financial and security
issues due to economic volatility and an increase in the unemployment rate. Additionally,
the ongoing outbreaks of COVID-19 have heightened concerns about health and safety in
the workplace. While the research identified 12 different issues that are currently on
employees' minds, it is important to note that the researcher did not consider other
factors that may also be affecting employees, such as new organizational policies,
lockdown measures, and future financial security. Overall, this research sheds light on
the top concerns of employees in the current climate, highlighting the need for
employers to address these issues and provide support to their workforce during these
challenging times.

1.5.TOP ISSUES ON HR DEPARTMENT’S MIND

HR professionals are also facing a range of challenges during the pandemic, such as
managing remote teams, maintaining employee engagement, and ensuring compliance
with relevant legislation. The article looks at how they can develop effective strategies to
address these issues.

In 2020, Jose Bersin conducted a survey among HR employees to determine the top
concerns of those working in HR departments during the COVID-19 pandemic. The
results of the survey are presented in Figure 1.

According to the data in Figure 1, the primary concern of HR employees is the health and
well-being of their colleagues, with 41% of respondents indicating this as their top
priority. Additionally, 39% of respondents expressed concerns about effectively
managing employees who are working remotely.

These findings highlight the importance of prioritizing employee health and well-being
during times of crisis, as well as the need for effective remote management strategies. By

4
 addressing these concerns, HR departments can help ensure the success and productivity
of their organizations during challenging times.

1.6.HRM STEPS TO CONTROL COVID-19 EFFECTS

The COVID-19 pandemic has had a significant impact on businesses worldwide, and
HRM plays a crucial role in managing its effects. To effectively control the impact of
COVID-19, HRM must take proactive steps to ensure the safety and well-being of
employees while maintaining business continuity.

One of the first steps HRM can take is to implement a comprehensive health and safety
plan that includes measures such as social distancing, regular sanitization, and the use of
personal protective equipment. This plan should be communicated clearly to all
employees and regularly updated as new information becomes available.

HRM should also consider implementing flexible work arrangements, such as remote
work or staggered schedules, to reduce the risk of exposure and ensure business
continuity. Additionally, HRM can provide employees with resources and support to
manage the stress and anxiety caused by the pandemic.

Finally, HRM should stay informed about the latest developments and guidelines related
to COVID-19 and adjust their strategies accordingly. By taking these proactive steps,
HRM can effectively control the impact of COVID-19 and ensure the safety and well-
being of employees.

1.7.EMPLOYEES’ MENTAL HEALTH

According to Fig. 2, the health of employees is the top priority for HR departments, with
26% of HR professionals stating it as their top priority. Workplace safety is also a top
priority to reduce COVID-19 risks. Employees need mental support during the pandemic
due to uncertainties about job security, personal finances, and unknown stress. To ensure
employee motivation and focus, HR needs to observe employees individually and provide
mental support.

5
 The pandemic has caused many businesses to close and others have reduced their
workforce causing mental anxiety for employees. Organizations can develop a training
model, meet with employees, and offer mental support to motivate them and keep in
close contact. This is summarized in a bar chart shown in Figure 2.

1.8.EMPLOYEE RETENTION MODEL

This passage explains that employees are important to an organization and employee
retention is crucial. A model is presented with four dimensions that can help the HR
department develop retention strategies during the COVID-19 pandemic. Another study
suggests that building relationships between employees and the organization can increase
employee retention, and an effective HR strategy can also help to retain employees.

Developing a strong brand in the job market can increase employee retention. Human
resources (HR) should provide appropriate training, fair judgment, and a positive work
environment to gain goodwill. Improving employee mental health during the COVID-19
pandemic can also increase retention by reducing anxiety, boosting enthusiasm and focus,
and alleviating depression. To retain employees, follow an employee retention model.

1.1.HRM MODEL TO OVERCOME THE COVID-19 CRISIS

The pandemic has caused changes in the way people work and organizations have had to
adapt. HR departments have implemented changes to overcome the challenges of
COVID-19, including increasing the use of technology and virtual training. Roy's
research also shows that organizations have started to practice artificial intelligence and
are developing new talent in their employees to adjust to the changes. A HRM model to
overcome the COVID-19 crisis is presented in Fig. 4, which includes eight entities that
can help HR develop this model.

6
 HR departments are prioritizing health issues in their strategy and allowing employees to
work from home, depending on their rank and responsibilities. They are constantly
observing and looking for ways to motivate and provide mental support to employees
during COVID-19. HR is also analyzing their existing reward and bonus policies to
emphasize financial wellness.

1.2.HRM STRATEGY LINKED TO ORGANIZATIONAL STRATEGY

1.2.1. THE 8-BOX MODEL OF PAUL BOSELIE

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 The core of this study is on COVID-19 and its impact on a company's HR strategy. The
8-box model of Paul Boselie is used to show how external environmental factors affect
HR strategy, and how HR managers consider these factors when developing the strategy.
The model takes into account various external factors including macroeconomics,
legislation and market share.

The 8 box model by Paul Boselie consists of six basic parts, including intended HR
practices, actual HR practices, perceived HR practices, HR outcomes, critical HR goals,
and ultimate business goals. The configuration drives this model, and it needs to be
adjusted according to the current situation due to the challenges posed by COVID-19.

2. FINDINGS AND DISCUSSIONS

The study found that the pandemic has had a significant impact on HRM strategies.
Organizations have had to adjust to the changing environment by introducing new
policies and practices. These include flexible working arrangements, remote working,
and virtual learning. The study also found that the pandemic has led to an increased focus
on employee wellness, with organizations introducing measures to ensure the mental and
physical wellbeing of their employees

The aim of this research was to uncover the latest strategies that HRM has implemented
to combat the challenges posed by the pandemic. Specifically, the study focused on the
difficulties faced by HR professionals and employees during this unprecedented time.
Additionally, the research delved into the impact of the pandemic on employees' mental
health and explored the employee retention model.

Through a thorough literature review and analysis of current trends, the findings revealed
that employees were grappling with financial insecurity in addition to concerns about
their own health and safety, as well as that of their families. This was due to the
deteriorating economic conditions in many countries, resulting in business closures and
workforce reductions. As a result, employees experienced heightened anxiety, which had
a significant impact on their mental health. This was particularly true for those who were
forced to leave their jobs due to COVID-19 outbreaks.

Given this situation, HRM must develop an effective employee retention strategy in
response to the COVID-19 outbreak. However, HR professionals must also consider the
challenges they will face in implementing these changes within their organizations.

To address these issues, a model was developed that takes into account external factors
such as the COVID-19 pandemic, government legislation, and micro-economics, and
their impact on company and HR strategy. The model also outlines how HR can develop
effective strategies and goals that align with the organizational strategy, ultimately
driving the organization towards its goals.

In summary, this research sheds light on the challenges faced by HR professionals and
employees during the pandemic and provides valuable insights into the development of
effective HR strategies that can help organizations navigate these unprecedented times.

8
 3. THEORETICAL IMPLICATION

The study provides insights into how the pandemic has impacted HRM strategies and
how organizations have had to adjust to the changing environment. The study also
highlights the importance of employee wellbeing and the need for organizations to
introduce measures to ensure the mental and physical wellbeing of their employees.

This research has made significant contributions to the field of HRM strategy by
shedding light on the impact of various factors on employee retention and mental health.
Specifically, the study has identified three key factors that affect HRM strategy:
employee mental health, government legislation, and the pandemic lockdown. To support
this concept, the study used an 8-box model developed by Paul Boselie.

The findings of this study confirm that employee mental health, government legislation,
and pandemic lockdown have a direct impact on HRM strategy. In normal circumstances,
HRM can develop their strategy by considering the employee's mental health condition.
However, during the COVID-19 pandemic, external factors have disrupted normal life,
and HRM needs to develop their strategy by taking into account the impact of the
pandemic on employees' mental health, government legislation, and the lockdown
situation. HRM should include activities in their strategy to support and develop
employees' mental health.

Furthermore, the study has shown an employee retention model in Fig. 3 that could be
suitable during the COVID-19 situation. The model highlights four different entities that
play a crucial role in retaining employees: appropriate HR strategy, studying the
psychological contracts, the brand of the organization, and the employee's mental health.
The study emphasizes the importance of retaining employees during the COVID-19
pandemic, as many organizations are losing suitable employees. The findings of the study
are consistent with the 8-box model of Paul Boselie, which shows that the configuration
of the company impacts HRM strategy. Intended HR practices can help the organization
retain its employees as well.

In conclusion, this research has provided valuable insights into the impact of various
factors on HRM strategy, particularly during the COVID-19 pandemic. The study
highlights the importance of considering employees' mental health, government
legislation, and the lockdown situation when developing HRM strategies. The employee
retention model presented in the study provides a useful framework for organizations to
retain their employees during these challenging times.

9
 4. PRACTICAL IMPLICATION

The study provides practical insights into how organizations can adjust their HRM
strategies in response to the pandemic. The findings suggest that organizations should
introduce flexible working arrangements, remote working, and virtual learning. The study
also suggests that organizations should focus on employee wellbeing and introduce
measures to ensure the mental and physical wellbeing of their employees.

The COVID-19 pandemic has had a significant impact on the strategies of both the HRM
department and the organization as a whole. As shown in Fig. 6, the HRM department
must develop its strategy while keeping the organizational strategy in mind. The goals of
the HR department are focused on employee activities such as flexibility, safety, and
communication, which are crucial considerations when developing an HRM strategy.
During the pandemic, employees are concerned about job security, personal health,
children, and homeschooling, while HR professionals are focused on employee health,
transitions to remote work, and engagement while working remotely. Therefore, when
setting up the HRM strategy, HRM must consider both employees and HR professionals'
perceptions.

Furthermore, when developing the organizational strategy during the pandemic, top
management must consider the HR strategy as well. In this case, the HR strategy must
consider employee retention models to retain existing employees, which are valuable
assets for any business.

To overcome the challenges posed by the pandemic, the HRM model can be used to
develop the HR strategy. Incorporating artificial intelligence (AI) in the workplace can
reduce employee workload and increase workplace safety. Organizations can seek
outside assistance to develop AI in the workplace and arrange for virtual training to
support their employees mentally and increase productivity by developing their skills
through virtual training. Moreover, organizations can allow employees in certain
positions to work remotely, but they must ensure that they can monitor the employees
after allowing them to do so. Additionally, the organization must support its employees
financially and ensure job security during the pandemic period.

In conclusion, the COVID-19 pandemic has had a significant impact on the HRM
department and organizational strategies. To overcome the challenges posed by the
pandemic, HRM must consider both employees and HR professionals' perceptions when
developing the HR strategy. The organizational strategy must also consider the HR
strategy and employee retention models to retain valuable assets. Incorporating AI in the
workplace, arranging for virtual training, and allowing remote work can also help
organizations overcome the challenges posed.

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 5. LIMITATIONS OF THE STUDY

The article reviews existing literature on the impact of COVID-19 on HR management

strategies. It examines various aspects of HR management, including remote work,
employee mental health, and the role of HR technology.

The findings of this study are both exceptional and impactful, as they highlight the need
for HRM and organizational strategies to adapt to the challenges posed by the pandemic.
However, it is important to acknowledge that certain limitations were encountered during
the data collection and research process. For instance, this study did not account for the
potential obstacles that HRM may encounter in the post-pandemic era. As a result, it is
crucial to develop short-term strategies that can be adjusted as the situation evolves.
Additionally, this study relied solely on published journals and secondary data, as
primary data collection was deemed too risky and could have violated government
restrictions during the COVID-19 pandemic. Despite these limitations, the insights
gained from this study can inform HRM and organizational decision-making during these
unprecedented times.

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 6. CONCLUSION

The article presents a comprehensive review of the impact of COVID-19 on human

resource management strategies. The author effectively highlights the challenges and
opportunities that arose due to the pandemic and how organizations have responded to
these changes. The article argues that HR professionals need to adopt flexible and
innovative strategies to succeed in the new normal.

The findings of this study are both exceptional and influential, as the COVID-19
pandemic has necessitated modifications to both HRM and organizational strategies.
However, it is important to note that certain limitations were encountered during the data
collection and research phases. For instance, this study did not account for the potential
obstacles that HRM may encounter in the post-pandemic era. As a result, it is
recommended that strategies be developed for the short-term. Additionally, this study
relied solely on published journals and secondary data, as primary data collection was
deemed too risky and potentially in violation of government restrictions during the
pandemic.

7. RECOMMENDATIONS TO THE AUTHOR:

The author could have included more empirical research, case studies, or interviews with
HR professionals to support the review study's findings. This would have enhanced the
credibility and reliability of the article. Additionally, the author could have explored the
impact of COVID-19 on specific industries or organizations and how they have adapted
their HR strategies to survive and thrive during the pandemic.

8. OTHER POSITIVE SIDE EFFECT OF COVID-19

One potential positive effect of COVID-19 on wealth distribution is that it has led to
increased government spending and support for low-income individuals and families.
This has helped to mitigate some of the financial impacts of the pandemic and provide
much-needed relief to those who are struggling to make ends meet.

For example, many governments have introduced stimulus packages and unemployment
benefits to support those who have lost their jobs due to COVID-19. This has helped to
prevent widespread poverty and has ensured that vulnerable individuals and families have
access to basic necessities such as food, housing, and healthcare.

Additionally, COVID-19 has led to increased awareness and recognition of the

importance of essential workers, many of whom are low-income individuals. This has led
to calls for better pay and working conditions for these workers, which could help to
address some of the underlying inequalities in the labor market.

Overall, while COVID-19 has had many negative impacts on individuals and
communities, it has also highlighted the need for greater investment in social welfare
programs and support for low-income individuals and families. This could ultimately lead
to a more equitable distribution of wealth and a reduction in poverty over the long term.

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 9. CITED LITERATURE

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Human Resource Management During COVID-19: A Study to Enhance Employee
Loyalty Using Intrinsic Rewards. Frontiers in Psychology, 12, 627659.
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Ahamed, F. (2021). Macroeconomic Impact of COVID-19: A case study on Bangladesh.

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AlMala, W. (2020). How COVID-19 Changes the HRM Practices (Adapting One HR
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Bartik, A. W., Bertrand, M., Cullen, Z., Glaeser, E. L., Luca, M., & Stanton, C. (2020).
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Barua, S., Alam, A., Rahman, I., &Hossen, R. (n.d.). Mapping the COVID-19
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Butterick, M., & Charlwood, A. (2021). HRM and the COVID‐19 pandemic: How
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Collings, D. G., McMackin, J., Nyberg, A. J., & Wright, P. M. (2021). Strategic Human
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Cooke, F. L., Dickmann, M., & Parry, E. (2020). Important issues in human resource
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Fana, M., Torrejón Pérez, S., & Fernández-Macías, E. (2020). Employment impact of
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Giorgi, G., Lecca, L. I., Alessio, F., Finstad, G. L., Bondanini, G., Lulli, L. G., Arcangeli,
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Hamouche, S. (2020). COVID-19 and employees’ mental health: Stressors, moderators

and agenda for organizational actions. Emerald Open Research, 2, 15.
https://doi.org/10.35241/emeraldopenres.13550.1

Jenitta, J. N. (2020). The Impact of Employer Branding on Retaining High Potential

Employees in the Banking and Finance Industry in Trincomalee District. 10(4).

Joshbersin. (2020). COVID-19 May Be The Best Thing That Ever Happened To Employee
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ever-happened-to-employee- engagement/

Lewis, N. (2020). HR Managers Rethink Their Role During the Coronavirus Pandemic.
https://www.shrm.org/hr- today/news/hr-news/pages/hr-managers-rethink-their-work-
coronavirus-pandemic.aspx

Mohammed Ali Bait Ali Sulaiman, Et Al. (2020). COVID-19 Challenges and Human
Resource Management in Organized Retail Operations.
https://doi.org/10.5281/ZENODO.4280092

Mohindru, D. (2022). COVID-19: Shaping rewards in a

volatileworld. https://www.peoplemattersglobal.com/article/benefits-and-
rewards/COVID-19-shaping-rewards-in-a- volatile-world-25929

Oulkhouir, M. (2020). Government response to COVID-19’s impact on employment.

https://www.lexology.com/Commentary/Employment-Immigration/Morocco/CWA-
Maghreb/Government- response-to-COVID-19s-impact-on-employment

Roy, U. (2021). Evolving uses of Artificial Intelligence for HRM During COVID-19:
Bangladesh Perspective. 1(5). https://paper.sijsca.com/v1/i5/SIJSCAV1I50004.pdf

14
 SRADERS, A., & LAMBERT, L. (2020). Nearly 100,000 establishments that
temporarily shutdown due to the pandemic are now out of business.
https://fortune.com/2020/09/28/COVID-buisnesses-shut-down-closed/

Venusamy, K., Selvarani, Dr. A., & Krishnan, N. (2020). Working from Home: Role of
Human Resource Professional in Setting up an Operative Approach. 83, 7323–7325.

Vermeeren, B., Steijn, B., Tummers, L., Lankhaar, M., Poerstamper, R.-J., & van Beek,
S. (2014). HRM and its effect on employee, organizational and financial outcomes in
health care organizations. Human Resources for Health, 12(1), 35.
https://doi.org/10.1186/1478-4491-12-35

Vulpen, E. van. (2022). The Standard Causal Model of HRM.

https://www.aihr.com/resources/5_HR_Models.pdf Weralupitiya, &Yasodara, J. (2016).
Impact Of Psychological Contract On Employee Retention: A Case Of Apparel

Sector In Sri Lanka. 3(11).

WHO. (2022). Coronavirus disease (COVID-19). WHO. https://www.who.int/health-

topics/coronavirus#tab=tab_1 Wrox, P. (2021, May 17). Creating Employee Wellness
and Mental Health Programs in the Workforce. Creating

Employee Wellness and Mental Health Programs in the

Workforce. https://www.paychex.com/articles/human-resources/creating-mental-
health-programs-at-work.

10. APPENDIX: THE REVIEWED ORIGINAL ARTICLE

15
IUBAT Review—A Multidisciplinary Academic Journal, 5 (1): 44-53
https://doi.org/10.3329/iubatr.v5i1.64591

COVID-19's Impact on Human Resource Management strategy: A Review Study

Reefat Arefin Khan*

College of Business Administration, International University of Business Agriculture and Technology

Received: August,2022 Revised: November, 2022 Accepted+Published: December, 2022

Abstract

The COVID-19 outbreak poses challenges for organizations as many external environmental objects are
changing. It raises the importance of Human resource management (HRM) strategy as the HRM strategy
works to motivate the employees and develops the workforce. The methodology used in this research is
general literature review which shows the analysis of most recent articles, research papers and scientific
study. The aim of this research is to identify HRM activities during COVID-19 pandemic and the way HRM
develops their strategy to match their strategy with the organizational strategy to shove the business towards
their goals. In the light of COVID-19, employee anxiety is increasing due to the deterioration of economic
conditions, as well as an increase in the unemployment rate, and the number of businesses is congested.
COVID-19 pandemic situation modify the Organizational strategy and HR strategy, and organizational
critical goals are transform by COVID-19 pandemic situation.

Keywords: COVID-19;Employees’ mental health; Human resource management; HRM; HRM strategy;
Physiological relations; Remote work.

1. Introduction

The main task for human resource management (HRM) is to deliver an appropriate workforce for the organization.
Employees work as the heart of the organization because the workforce's talent can drive the organization towards
success (Vermeeren et al., 2014). Other resources, like financial or intangible resources, can make things possible,
but the motivation of appropriate employees can make things happen (Cooke et al., 2020). During the outbreak of
COVID-19, HRM proved its importance again as the employees failed to focus on their tasks and HRM took rapid
steps in order to overcome the situation. During the pandemic, employee performance was negatively affected, and
at that time, HRM revised the organizational policies, systems, and practices in order to develop the employee’s
attitude, behavior, and performance (Collings et al., 2021).

HRM policies are designed to control the employees at the workplace and develop work-related employee skills
by providing training at the workplace (Abdullah et al., 2021). In addition, Human Resources (HR) encourages
employees to develop their work-related skills to drive the employees towards the employee’s own goals, which
drives the employees to work better for the company in order to achieve the organizational goals (Sulaiman, 2020).
Hence, HRM approaches the employee’s needs, and the organization needs to be modified because of the demands
of the situation. The outbreaks of COVID-19 restrict the organization and the employees from working according to
their daily habits. Government legislation and the effect of COVID-19 demand HRM develop their policies in order
to manage their employees. Therefore, HRM needs to include new techniques in their strategy that they have never
used before, such as allowing employees to do remote work, developing the workplace environment, supporting
employees to create a positive impact in their minds, and introducing virtual training, in order to overcome the
critical period of the pandemic. The main objective of this research is to find out the present conflict situation
between the HRM and the employees because of the pandemic and HRM steps in order to control the situation.
Secondary objectives of this research are as follows:

1. To identify the main concerns for the employees.

2. To identify the concerns for human resource department.
3. To findout suitable strategy to be adopted by the HRM in order to control the situation.

This research was created by conducting a general literature review that included journal articles, researcher
papers, and scientific studies in order to identify the current state of human resource management during COVID-
19. The methodology of this research is mainly to look at secondary data in order to determine the way HRM at the
organizations responded during COVID-19 and the condition of the employees’ mental health.
Corresponding Author’s email: reefat.arefin@iubat.edu

44
 COVID-19's Impact on Human Resource Management

For this article, the research engines were used which were approved as the science source such as Research Gate,
Wiley, SSRN, Google Scholar etc.

COVID-19 effects on employees

COVID-19 is the disease that the novel Corona virus causes. This virus primarily spreads through discharge from
the nose when an infected person coughs or sneezes. The novel Corona virus is a new strain of virus that has never
been seen before (WHO, 2022). The COVID-19 disease may lead a human towards death, and therefore, people
become scared. Multiple levels of impacts on the business sector take place because of COVID-19 all over the world
(Abdullah et al., 2021). According to Fana et al. (2020), COVID-19 can impact employees in multiple ways. These
may include their mental health and well-being, financial stress, physical health, productivity, and engagement. It is
not necessary for the employees to be affected by the Corona virus. As a result, the pandemic has a variety of
external mental effects on the employees. The pandemic situation led the employees to implement changes in their
daily work habits (Fana et al., 2020). Overall, COVID-19 has an impact on an employee's motivation, work habits,
and attitude, as well as their mental health, which has an impact on their professional life.

Government legislation

The novel Corona virus compels governments to enact new rules and regulations in all sectors of the country
(Cormacain and Bar-Siman-Tov, 2020). The government implements lockdown, restrictions on travel, restrictions
on export and import, and in some situations, the government puts restrictions on the employees' ability to go to
work. In addition, the government pushes the organizations to ensure safety at the workplace for the employees, and
the government controls work timing for the employees during the pandemic situation (Oulkhouir, 2020). On the
other hand, employment laws are affected by COVID-19. Changes in federal regulations and employment laws have
an impact on the overall outcomes of the organization's workforce (Corporate Wellness Magazine, 2022). Changes
in government laws and regulations shape the principles of the organization. Moreover, employees expect changes
in the organization during the COVID-19 situation. As a result, positive effects come when the organization changes
the work environment and policies to develop safety at the workplace. In contrast, negative effects come when the
organization implements new rules for the employee during the pandemic situation.

Macro-Economics

Financial markets all over the world are responding abruptly because of the pandemic situation. Waves were used to
explain the COVID-19 crises, and the fifth wave resulted in lower trading volume, declining prices and indexes,
more sellers than buyers in the market, and lower firm value of listed companies (Barua et al., 2021). Ahmed,
(2020) has shown that, The global economic growth forecast for 2020 is -4.9%. It is due to the slowing of global
economic growth and the fact that the figure has now turned negative due to the COVID-19 pandemic. As a result,
the unemployment rate all over the world is increasing as the creation of new job sectors is on hold because of the
economic crisis (Ahamed, 2021). Many employees worry about their job security, and the management of the
organization struggles to maintain its normal business sustainability because of the economic crisis. If organizations
do not create new job opportunities, the country's unemployment rate rises. In this situation, fear of losing the job,
fear for the future, and financial safety issues take place among the employees.

Top issues on employees’ mind

The survey conducted for this research has been analyzed in order to determine the top issues on employees' minds
right now. The researcher used a bar chart to display the survey results, and the bar chart shows that the primary
concern in employees' minds right now is financial and economic recovery, which received 81% of respondents, and
the second highest percentage is 56%, indicating that employees are concerned about their health and well-being.
According to the researcher of this study, employees are more concerned about financial and security issues than
other issues as a result of economic volatility and an increase in the unemployment rate. In addition to that, they also
have concerns about their health because of the outbreaks of COVID-19. The research revealed the top issues on
employees' minds, with the researcher identifying 12 different issues. However, in this case, the researcher did not
consider the employee’s issues with new organizational policies, lockdown, and future financial security that also
might moderate the employee’s mind.

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 COVID-19's Impact on Human Resource Management

Top issues on HR department’s mind

Jose Bersin (2020) also runs the same type of survey among HR employees to find out the top issues on HR
department employees’ mind during the COVID-19 situation. Fig. 1 shows the survey outcomes of the result. Fig. 1
shows that, main concerns of HR employees are about the health and well-being of the employees. The percentage is
41. On the other hand, 39% have shown their concerns about managing the employees in the remote areas.

Managing schedule
Social isolation
Productivity
Family health
Work life balance
Stress and mental health
Viability of employer
Remote work
Personal finances
Childcare and home schooling
Personal Health
Job security
0% 10% 20% 30% 40% 50% 60%

Fig. 1: Top issues on employees’ minds Source: (Bersin, 2020)

HRM steps to control COVID-19 effects

In this section, issues that come to the HR department’s mind are shown. However, the researcher ignored the issues
that arise as a result of their efforts to implement changes in the organization, implement developed policies, and
continue the business with a sustainable workforce.

Employees’ mental health

Fig. 2 shows that, The health of the employees is the first priority of the organization's HR department. 26 percent of
HR professionals have stated that the health of their employees is their top priority. Furthermore, improving
workplace safety is a top priority in order to reduce COVID-19 threats. Employees require mental satisfaction from
organizational activities related to their health and safety issues in order to be motivated at work. Employees need
mental support during the pandemic situation as uncertainty about their job security, personal finances, and
unknown stress take place in their minds. In this situation, HR needs to observe the employees individually and
provide mental support in order to get full focus from the employees (Hamouche, 2020).

As a matter of fact, many businesses in all over the world are closed down because of the pandemic situation
(Sraders & Lambert, 2020). Moreover, many companies reduced their workforce due to unhealthy situation of the
business (Bartik et al., 2020). It increases the mental anxiety of the employees to lose their jobs (Giorgi et al., 2020).
Organization can develop training model, meeting with the employees and keep in close touch with the employees
of motivate them towards work and mentally support them.FollowingFig. 2 is the bar chart that shows the survey
outcomes:

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 COVID-19's Impact on Human Resource Management

Help employees mental health

Deal with uncertainty
Increase long term viability
Communicate frequently and clearly
Create engagement working remotely
Health of Employees
0% 5% 10% 15% 20% 25% 30%
Fig. 2: Top issues on HR departments’ minds (Bersin, 2020)

Employee retention model

Employees of the organization are one of its most valuable assets and the backbone of the organization. It is because
employees constantly improve their knowledge and skills through training and experience. Therefore, employee
retention plays an important role for an organization (Degbey et al., 2021). Fig. 3 shows employee retention model
where four dimentions can help the HR department to develop the employee retention model during COVID-19
pandemic situation. According to Weralupitiya and Jayarathna (2016), the study on Physiological contact between
the employees can help to build bonding between the employees and the organization which increases possibility to
retain the employees. Furthermore, appropriate HR strategy in order to control the employees can also help to retain
the employees (Weralupitiya and Jayarathna, 2016).

The brand of the organization in the job market can increase the rate of employee retention. In order to develop
the brand in the job market, HR needs to provide proper training to the employees, judge them appropriately, and
provide a developed work environment in order to gain goodwill in the job market (Bindhya and Harikumar, 2020).
It can create the brand of the organization. With the help of the organization can retain the employees as well
(Jenitta, 2020). Moreover, the development of the employee’s mental health can create opportunities to retain the
employee as well. During the COVID-19 situation, employees need mental support in order to reduce anxiety,
increase enthusiasm, increase focus, and decrease depression (Wrox, 2021). Therefore, following employee
retention model would be helpful to retain the employees,

Appropriate
HR strategy

Brand of the Employees' Studying the

Phycological
organization
retention contracts

Employee's
mental
health

Fig. 3: Employee retention model

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 COVID-19's Impact on Human Resource Management

HRM model to overcome the COVID-19 crisis

Pandemic has changed the pattern of work for vast majority of the employees. It forced organizations across the
globe to adapt the new work style and job design (Collings et al., 2021). HRM accepted the challenges of COVID-
19 and they also implemented many changes in their organization in order to overcome the situation of COVID-19
(Butterick and Charlwood, 2021). Fig. 4 shows HRM model to overcome the COVID-19 crisis. According to Fig. 4,
Eight entities can help HR to develop HRM model to overcome the COVID-19 crisis. Roy (2021) has shown into
his research that, many organizations increased technological uses during the lockdown and HRM started to practice
Artificial Intelligence (AI) as well. The uses of virtual training increased during the pandemic situation (Bhagat,
2021). In addition, the organizations are developing new talent in their employees in order to mentally adjust with
the changes (Roy, 2021).

HR departments are developing their strategy by focusing more on health issues (Jenitta, 2020). Moreover,
organizations allow their employees to work from home which is called the remote work. It mainly depends on the
rank and responsibilities of the employees (Venusamy et al., 2020). HR professionals observe the employees
continuously during the pandemic situation. Their main aim is to identify the ways to motivate the employees and
provide mental support during COVID-19 (Lewis, 2020). In addition, HR analysis their existing reward and other
policies to develop the monetary reward (Oak & Schoeffler, 2020)and bonus policies in order to emphasis financial
wellness (Mohindru, 2022).

Include AI in the
organization

Emphasize Provide vertual

financial wellness training

HRM model
to overcome
the COVID-19
Crisis
Continuously Focus on
motivate the employee health
employees and welbeing

Develop new
Allow remote
talent to adjust
working
the changes

Fig. 4: HRM model to overcome the COVID-19 crisis

HRM strategy linked to organizational strategy

The 8-box model of Paul Boselie

The core of this study is "COVID-19." COVID-19 is an external factor for the organization, but it forces the HR
department to develop a strategy. Therefore, the 8-box model of Paul Boselie has been chosen for this research. Fig.
5 shows the 8-box model of Paul Boselie. The core of this model is to show how external environmental factors
affect HR strategy and how HR managers take steps to develop the strategy by considering external environmental
factors (AlMala, 2020). This model depicts the internal and external factors that influence an organization's human
resource activities. This model considers the macroeconomics, the legislation, the market share, and many other
objects that are part of the external analysis (People Hum, 2021).

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 COVID-19's Impact on Human Resource Management

Fig. 5 shows the 8 box model of Paul Boselie Paul. In this model, the configuration drives the six basic parts of
the 8-box model. Those are the intended HR practices, the actual HR practices, the perceived HR practices, the HR
outcomes, the critical HR goals, and the ultimate business goals (Vulpen, 2022). As the new challenges has taken
place because of the COVID-19, therefore, all parts of the model need to be adjusted according to the situation.

Fig. 5: The 8 box model of Paul Boselie Source: (Vulpen, 2022)

2. Findings and discussions

The objective of this research was to identify the latest strategies that HRM has adopted to overcome the pandemic
situation. The research focused on the challenges that HR professionals and employees are facing during the
pandemic situation. The research also reviewed employees' mental health and the employee retention model.

Literature review and general updates help to develop the finding, and the finding shows that the employees
were worrying about financial security on top of their own health and safety issues and their families' health and
safety issues. It is because the countries' economic conditions were deteriorating and many businesses were closing
or reducing their workforce. It causes employees to become anxious, and it becomes a mental issue for them.
Especially for those employees who need to leave the job because of the COVID-19 outbreaks Looking at the
situation, HRM should consider and develop an employee retention strategy in light of the COVID-19 outbreak.
HRM also needs to consider the challenges that they will face in implementing the new changes in the organization.

The following model was developed by considering the situation, which represents external factors such as the
COVID-19 pandemic, government legislation, and micro-economics, and their effect on company and HR strategy.
It also describes the way HR can develop the strategy and HR goals in order to relate to the organizational strategy
and push the organization towards their goals.

3. Theoretical implication

This research has contributed theories in a variety of ways. First of all, employees’ mental health, government
legislation, and the pandemic lockdown affect HRM strategy. This study used an 8-box model by Paul Boselie to
support the concept. This study's findings confirm that employee mental health, government legislation, and
pandemic lockdown have an impact on HRM strategy, as HRM strategy is directly related to employee health. If the
employee’s mental health condition remains according to normal life, then HRM can develop their strategy by

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 COVID-19's Impact on Human Resource Management

considering the normal situation. However, during the COVID-19 situation, external situations were not normal. In
this situation, HRM needs to develop their strategy by considering employees’ mental health, government
legislation, and the pandemic lockdown situation, and they need to include activities in their strategy in order to
develop employees’ mental health.

Secondly, this study has shown the employee retention model in Fig. 3 which could be suitable during COVID-
19 situation. In this section, four different entities were shown in the employee retention model. Appropriate HR
strategy, studying the psychological contracts, the brand of the organization, and the employee’s mental health play
an important role in retaining employees. This study shows the importance of retaining employees during the
COVID-19 pandemic, as many organizations are losing suitable employees. Particularly, the finding of the
moderating effect of the employee retention model was consistent with the 8-box model of Paul Boselie. The 8-box
model of Paul Boselie shows that the configuration of the company, which could be counted as the goodwill of the
company, impacts HRM strategy. In addition, intended HR practices can help the organization retain its employees
as well.

4. Practical implication

In general, COVID-19 pandemic situation effects on HRM department strategy and organizational strategy. Fig. 6
shows that, The HRM department developed the strategy while keeping the organizational strategy in mind. HR
departmental goals, on the other hand, are related to employee activities such as flexibility, safety, and
communication, which may be the primary consideration when developing an HRM strategy. During the pandemic
situation, employees care about their job security, personal health, children, and homeschooling, whereas HR
professionals care about the employee’s health, transitions to remote work, and engagement while working
remotely. Therefore, when setting up the HRM strategy, HRM needs to consider both employees' and HR
professionals’ perceptions. Furthermore, when developing organizational strategy during the pandemic, top
management needs to consider HR strategy as well. In this case, HR strategy needs to consider employee retention
models in order to retain their existing employees, which could be considered an asset for a business.

Finally, the HRM model could be considered to develop the HR strategy to overcome the pandemic situation.
Human resource management (HRM) can incorporate artificial intelligence (AI) in the workplace to reduce
employee workload and increase workplace safety. Organizations can seek outside assistance to develop AI in the
workplace. They can also arrange for virtual training to support their employees mentally and increase productivity
by developing their skills through virtual training. Moreover, organizations can allow employees in certain positions
to do remote work. In this case, organizations need to ensure that they can monitor the employees after allowing
them to do remote work. In addition, the organization needs to support their employees financially and ensure job
security during the pandemic period.

According to Fig. 6, Organizations set their critical goals by looking at internal and external environmental
factors. The pandemic situation influences the management of the organization to set their goals by considering
flexibility, safety, and developing communication among the employees. The organization can achieve its objectives
by providing adequate facilities for its employees. They must use developed technologies to improve their
communication processes and capitalize on the benefits of remote work by allowing employees to work from home.

5. Limitations of the study

The outcomes of this study are unique and powerful as the HRM strategy and the organization strategy require
changes during the pandemic period. However, some limitations of this study also occurred at the time of collecting
data and doing research. This study did not consider the challenges that HRM may face during the post-pandemic
period. Therefore, the strategy development needs to be for a short-term period. Moreover, this study only
considered published journals and secondary data. Because primary data collection was risky and may have violated
government restrictions during the COVID-19 pandemic.

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 COVID-19's Impact on Human Resource Management

Company
strategy
COVID-19 effects in HR

• HRM model
• Employee
(Pandemic, Government
HR Strategy retention model
legislation, Macro-Economic)
• Employee's
mental health

Intendend HR • HR policies and

intention HR
practice manager

Actual HR • How policies

implemented line
practice manager

Perceived HR • How policies

perceived
practice Employees

HR results

Critical HR • Flexibility,
• safety,
goals • communicaiton

Ultimate
• Sustainable
company • Competitive
Goals

Fig. 6: COVID-19 effect in HR strategy and Critical HR Goals

6. Conclusion

The main target of this study was to identify the HR activities needed to overcome the pandemic situation. The
research was done by finding out the way the HR department developed its strategy to control the employees and the
challenges that they faced. The challenges faced by the employees during the pandemic have also been considered in
this study. Moreover, the mental health of the employees, the model of employee retention, and HR approaches to
overcoming the COVID-19 situation were also reviewed in this research. By considering the overall scenario, an HR
model was developed that considers the effects that the company and the HR department of that company face
because of the COVID-19 situation and the way those effects affect the ultimate goals of the company.

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