This study examines the strategic role of Human Resource Management (HRM) in improving organizational performance amid dynamic internal and external changes. HRM is no longer viewed as a purely administrative function but as a central pillar that shapes organizational capability through the management of competencies, work culture, leadership, and systems that drive employee effectiveness. Using a literature review approach, this study analyzes various scholarly perspectives and empirical findings regarding the relationship between HRM practices such as recruitment, selection, placement, performance management, and leadership and organizational performance. The results indicate that well-implemented and strategically aligned HRM practices strengthen human capital, increase productivity, enhance organizational culture, and create sustainable competitive advantage. The integration between HRM strategy and organizational strategy is found to be crucial in ensuring goal alignment and operational effectiveness. This study concludes that HRM serves as a foundational element in connecting individual potential with the achievement of long-term organizational objectives.
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