Human resource management practices in corporate restructuring: a review and agenda for future research

Abstract

PurposeAlthough corporate restructuring has the potential to provide performance benefits to firms, it can also bring upheaval and challenges to the restructuring firms’ employees. Further, the frequency of corporate restructuring across the business landscape shows no signs of abating. The purpose of this review paper is to identify and synthesize what is known about the selection, implementation and outcomes of the human resource management (HRM) practices that firms deploy in the context of corporate restructuring, with the additional aim of distilling fertile research areas for scholars and best-practice guidance for practitioners.Design/methodology/approachThis paper is based upon a systematic review of 110 articles published in highly-ranked, peer-reviewed journals from 2003 to 2023.FindingsThis review surfaces the predominant ability-, motivation- and opportunity-enhancing HRM practices employed by restructuring firms. It further elucidates the major themes and challenges associated with the use and outcomes of these practices across firms and restructuring settings. The analysis illuminates gaps and opportunities in the literature to suggest future directions for the study of HRM practices and corporate restructuring.Originality/valueThis paper identifies, categorizes and integrates the extant literature on HRM practices and outcomes in corporate restructuring, which is a topic that is salient to both researchers and managers. Papers are classified using the Ability, Motivation and Opportunity framework. An inclusive definition of corporate restructuring, which includes organizational, portfolio, governance and financial restructuring, is applied across two decades of research to provide a comprehensive and holistic assessment.