Modern production systems increasingly rely on automation, digitalization, and advanced technologies to improve productivity, yet these developments may generate physical, cognitive, and psychosocial challenges for employees. This study aims to analyze human-centered industrial engineering approaches in improving productivity and employee wellbeing within modern production systems. A qualitative library research approach was employed by examining relevant books, peer-reviewed journal articles, scientific publications, research reports, and previous studies. Data were collected through systematic literature review and analyzed using content analysis to identify patterns, relationships, and key findings related to human-centered engineering, productivity, and employee wellbeing. The findings indicate that human-centered approaches can support productivity through improved work-system design, ergonomics, human–technology interaction, employee participation, and reduced physical and cognitive workload. At the same time, these approaches contribute to employee wellbeing by addressing physical, cognitive, and psychosocial factors. The study concludes that integrating human-centered principles into industrial engineering provides a sustainable pathway for jointly optimizing productivity and employee wellbeing in modern production systems.
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