IIJSE
Vol 9 No 1 (2026): Sharia Economics

The Influence of Human Resource Management (HRM) in Improving Organizational Performance

La Ode Huruhara (Universitas Riau Kepulauan, Batam, Indonesia)
Herni Widiyah Nasru (Universitas Riau Kepulauan, Batam, Indonesia)
Ervin Nora Susanti (Universitas Riau Kepulauan, Batam, Indonesia)



Article Info

Publish Date
02 Jan 2026

Abstract

This study aims to analyze the influence of Human Resource Management (HRM) on organizational performance using a quantitative approach using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) method. HRM in this study is proxied through several main dimensions, namely recruitment and selection, training and development, performance appraisal, and compensation systems. Meanwhile, organizational performance is measured based on aspects of productivity, operational effectiveness, and the achievement of the organization's strategic goals. Data were obtained by distributing questionnaires using a Likert scale to respondents who met the criteria as employees or active managers in various types of organizations. Analysis was conducted using SmartPLS software to test the measurement model and structural model. The results show that all dimensions of HRM have a positive and significant influence on organizational performance. This indicates that the better the implementation of HRM practices, the higher the level of organizational performance. These findings reinforce the importance of human resource management as a strategic factor in achieving competitive advantage and organizational sustainability in various sectors.

Copyrights © 2026






Journal Info

Abbrev

iijse

Publisher

Subject

Economics, Econometrics & Finance

Description

The Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) is Sharia Economics Journal published by Sharia Economics Department Institut Pesantren KH. Abdul Chalim, Mojokerto. The Journal focuses on the issues of Sharia Economics, the History of Islamic Economic Thought, Islamic Law, Local ...