The aim of this study is to review how human resource management (HRM) practice influences labor productivity in oil companies in Libya. This study brought the fact that due to the distinct features of oil companies, common discourses of MRM very often ruled out. In addition, this study focused that HRM is applied at the micro level, which influences the labor productivity in oil companies. Nevertheless, the crucial determinants for fostering labor productivity are not individual level of HRM practice, instead the macroeconomic aspects such as political instability and quality of governance and diplomatic relation. Therefore, this study prescribes a holistic approach, which is that along with micro level of HRM practice and political and macroeconomic stability are crucially important to foster labor productivity.

This study evaluated the links between HRM practices and Labour productivity comprehensively with the mediating role of social skills. The study focuses on the Libyan oil and gas companies that play an important role in Libya's economic development. The data of this study were collected using the quantitative approach, whereby the questionnaire was administered and yielded 339 respondents with a response rate of 56.5%. Results based on these practices have significant impact on both social skills and labour productivity. Finally, the roles of staffing and on-the-job training as HRM practices contradict the results of previous studies that found these factors to be crucial for labour productivity. This study suggests that decentralised decisions lies in the strategic models and enables the HRM policies to be in force.