<![CDATA[This study examines human resource management (HRM) practices in a family-owned enterprise, PT. Mena Moria, and evaluates the firm’s strategic response to high employee turnover. The company, operating in building material distribution, experienced financial decline between 2020 and 2023. Using a qualitative case study approach, data were collected through participant observation, in-depth interviews, and document analysis. Data validity was ensured through triangulation techniques. The study involved 12 informants consisting of owners, managers, and operational employees selected through purposive sampling. The findings reveal systemic weaknesses in HRM practices, including the absence of standardized recruitment procedures, ineffective retention strategies, lack of structured training programs, inconsistent performance evaluation, inequitable compensation systems, and weak managerial communication. These deficiencies contributed significantly to both financial losses and organizational instability. This study proposes a comprehensive HRM design tailored for family businesses, emphasizing formalization, professionalization, and the establishment of a dedicated HR department. The proposed HRM design was constructed through thematic synthesis of identified HR problems and aligned with established HRM frameworks, including recruitment formalization, structured training systems, performance-based evaluation, and transparent compensation policies. The research contributes to the literature by linking informal governance in family firms with HR inefficiencies and organizational decline, offering a practical framework for sustainable HR transformation.]]>
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