Human Resource Management Strategies in Facing the Challenges of the Industrial Revolution 5.0: A Review of the Literature
Keywords:
Human Resource Management, Industry 5.0, Human-Centered Organization, Digital Transformation, Systematic Literature Review
Abstract
The emergence of Industry 5.0 has shifted organizational management from technology-oriented approaches toward human-centered management. Human Resource Management (HRM) is expected to become a strategic function capable of integrating technological innovation with employee development, organizational resilience, and sustainability. This study aims to identify the challenges faced by organizations in managing human resources during the Industry 5.0 era and analyze effective human resource management strategies based on previous studies. This research employed a Systematic Literature Review (SLR) by reviewing scholarly publications related to Human Resource Management and Industry 5.0. The findings indicate that organizations need to strengthen digital competencies, implement continuous reskilling and upskilling, promote adaptive leadership, optimize artificial intelligence as a collaborative technology, enhance employee well-being, and establish sustainable organizational cultures. The study concludes that successful organizations in Industry 5.0 are those capable of balancing technological advancement with human values to achieve long-term competitiveness.
References
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Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Becker, G. S. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago Press.
Bennett, N., & Lemoine, G. J. (2014). What VUCA really means for you. Harvard Business Review, 92(1–2), 27.
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa
Brynjolfsson, E., & McAfee, A. (2014). The second machine age: Work, progress, and prosperity in a time of brilliant technologies. W. W. Norton & Company.
European Commission. (2021). Industry 5.0: Towards a sustainable, human-centric and resilient European industry. Publications Office of the European Union.
Frank, A. G., Dalenogare, L. S., & Ayala, N. F. (2019). Industry 4.0 technologies: Implementation patterns in manufacturing companies. International Journal of Production Economics, 210, 15–26. https://doi.org/10.1016/j.ijpe.2019.01.004
Guest, D. E. (2017). Human resource management and employee well-being: Towards a new analytic framework. Human Resource Management Journal, 27(1), 22–38. https://doi.org/10.1111/1748-8583.12139
Kitchenham, B., & Charters, S. (2007). Guidelines for performing systematic literature reviews in software engineering (EBSE Technical Report EBSE-2007-01). Keele University & Durham University.
Kotter, J. P. (1996). Leading change. Harvard Business School Press.
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
Nahavandi, S. (2019). Industry 5.0—A human-centric solution. Sustainability, 11(16), 4371. https://doi.org/10.3390/su11164371
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2021). Fundamentals of human resource management (9th ed.). McGraw-Hill Education.
Northouse, P. G. (2022). Leadership: Theory and practice (9th ed.). Sage Publications.
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., ... Moher, D. (2021). The PRISMA 2020 statement: An updated guideline for reporting systematic reviews. BMJ, 372, n71. https://doi.org/10.1136/bmj.n71
Schwab, K. (2016). The fourth industrial revolution. World Economic Forum.
Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333–339. https://doi.org/10.1016/j.jbusres.2019.07.039
Stone, D. L., Deadrick, D. L., Lukaszewski, K. M., & Johnson, R. (2015). The influence of technology on the future of human resource management. Human Resource Management Review, 25(2), 216–231. https://doi.org/10.1016/j.hrmr.2015.01.002
Tarafdar, M., Cooper, C. L., & Stich, J.-F. (2019). The technostress trifecta—Techno eustress, techno distress and design: Theoretical directions and an agenda for research. Information Systems Journal, 29(1), 6–42. https://doi.org/10.1111/isj.12169
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of sustainable enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
World Economic Forum. (2025). The future of jobs report 2025. World Economic Forum.
Wright, P. M., & McMahan, G. C. (2011). Exploring human capital: Putting 'human' back into strategic human resource management. Human Resource Management Journal, 21(2), 93–104. https://doi.org/10.1111/j.1748-8583.2010.00165.x
Published
2026-07-25
How to Cite
Slamet Pamuji, Kasmin, Edouard Aryadi Supriyadi, & Rendi Anugrah. (2026). Human Resource Management Strategies in Facing the Challenges of the Industrial Revolution 5.0: A Review of the Literature. International Journal of Business and Quality Research, 4(03), 662-690. https://doi.org/10.63922/ijbqr.v4i03.5590
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