Effectiveness of human resource management in IT enterprises: the HREII-IT evaluation methodology

Authors

DOI:

https://doi.org/10.26661/2522-1566/2026-3/37-28

Keywords:

human resource management, IT company, HR management effectiveness, human capital, strategic human resource management, HR analytics, methodological approach, integrated assessment, HREII-IT

Abstract

This article presents a methodological approach to evaluating the effectiveness of human resource management in IT enterprises. The initial problem identified is the gap between operational HR analytics and the results that characterize the status of human capital, team performance, and the company’s achievements. The purpose of the study is to develop and methodologically justify an evaluation system that reflects this connection and provides a basis for diagnosing not only the result but also the mechanism by which it is achieved. Methodology. The theoretical framework consists of strategic human resource management, the resource-based and knowledge-based approaches, human capital theory, the «ability – motivation – opportunity» model, and research on HR analytics. Systemic and comparative analysis, decomposition, scientific generalization, and structural-logical modeling were applied. To develop a comprehensive assessment, the principles of the composite indicator methodology were used, specifically the standardization of indicators, the creation of sub-indices, and their aggregation. In the basic theoretical version of the methodology, equal weights were assigned to the components. The possibility of refining these weights and testing the sensitivity of the results is provided for during the subsequent empirical validation phase. Results. A structure for the HREII-IT integrated index has been developed, based on four interrelated components of an IT company’s human resource management system, namely: strategic integration of HR management (HSI), investment in human capital (HCII), motivation and rewards (MRI), and the maturity of the performance management system (PMMI). The analytical content and a system of indicators have been defined for each component. In the basic theoretical version of the model, the sub-indices are aggregated by calculating their arithmetic mean with equal weights. This approach ensures the simplicity and transparency of the basic calculation; however, it allows for mutual offsetting of component values. Therefore, it is proposed that the HREII-IT composite index be interpreted in conjunction with the profile of its sub-indices, which, in practical application, involves normalizing the composite value to a scale ranging from 0 to 100 points. Originality / Value. The innovative nature of the approach lies in the transition from a set of disparate HR metrics to a multilevel model that traces the sequence «management practices – human capital – behavior and teamwork – enterprise results». The methodology is adaptable to product, service, and outsourcing IT enterprises and can be used to identify HR risks, justify priorities for competency development, and assess the consequences of HR decisions.

JEL: M12, J24, L86, C43.

References

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REFERENCES

Angrave, D., Charlwood, A., Kirkpatrick, I., Lawrence, M., & Stuart, M. (2016). HR and analytics: Why HR is set to fail the big data challenge. Human Resource Management Journal, 26(1), 1–11. https://doi.org/10.1111/1748-8583.12090

Bondarouk, T., Parry, E., & Furtmueller, E. (2017). Electronic HRM: Four decades of research on adoption and consequences. The International Journal of Human Resource Management, 28(1), 98–131. https://doi.org/10.1080/09585192.2016.1245672

Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16, 297–334. https://doi.org/10.1007/BF02310555

Guest, D. E. (2011). Human resource management and performance: Still searching for some answers. Human Resource Management Journal, 21(1), 3–13. https://doi.org/10.1111/j.1748-8583.2010.00164.x

Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of Management Journal, 55(6), 1264–1294. https://doi.org/10.5465/amj.2011.0088

Kianto, A., Sáenz, J., & Aramburu, N. (2017). Knowledge-based human resource management practices, intellectual capital and innovation. Journal of Business Research, 81, 11–20. https://doi.org/10.1016/j.jbusres.2017.07.018

Likert, R. (1932). A technique for the measurement of attitudes. Archives of Psychology, 22(140), 1–55. https://legacy.voteview.com/pdf/Likert_1932.pdf

Lousã, E. P., Rodrigues, A. C., & Pinto, E. M. (2020). How do HRM practices relate to innovation performance in information technology firms? IBIMA Business Review, 2020, Article 306950. https://ibimapublishing.com/articles/IBIMABR/2020/306950/

Marler, J. H., & Boudreau, J. W. (2017). An evidence-based review of HR analytics. The International Journal of Human Resource Management, 28(1), 3–26. https://doi.org/10.1080/09585192.2016.1244699

McCartney, S., & Fu, N. (2022). Bridging the gap: Why, how and when HR analytics can impact organizational performance. Management Decision, 60(13), 25–47. https://doi.org/10.1108/MD-12-2020-1581

Minbaeva, D. (2018). Building credible human capital analytics for organizational competitive advantage. Human Resource Management, 57(3), 701–713. https://doi.org/10.1002/hrm.21848

Pearson, K. (1896). Mathematical contributions to the theory of evolution. III. Regression, heredity, and panmixia. Philosophical Transactions of the Royal Society of London. Series A, 187, 253–318. https://doi.org/10.1098/rsta.1896.0007

Phillips, J. J., Phillips, P. P., & Smith, K. (2016). Accountability in human resource management: Connecting HR to business results (2nd ed.). Routledge. https://doi.org/10.4324/9781315693675

Strohmeier, S. (2020). Digital human resource management: A conceptual clarification. German Journal of Human Resource Management, 34(3), 345–365. https://doi.org/10.1177/2397002220921131

Wright, P. M., & McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295–320. https://doi.org/10.1177/014920639201800205

Published

2026-10-19

How to Cite

Prints, I. (2026) “Effectiveness of human resource management in IT enterprises: the HREII-IT evaluation methodology”, Management and Entrepreneurship: Trends of Development, 3(37), pp. 398–412. doi:10.26661/2522-1566/2026-3/37-28.