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.