HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE

Human resource management is one of the most important components to increase organizational performance. This is because human resources are the most valuable assets that can drive the organization to grow and prosper, and to be able to compete in the global market. This paper aimed to study the important components of human resource management and a linkage between human resource management and organizational performance based on the literature review. The results of the study showed that human resource management can help the organization to elicit and extract knowledge, skill, expertise, talent and competency of employees to work for the success and growth of the organization. Without effective human resource management, the organization cannot run its business to reach its goals and objectives. Therefore, each organization focuses on recruiting and selecting knowledgeable, skillful and competent employees and pay them with fair benefits and compensation to create their organizational commitment so that that they work to increase organizational performance. In addition, the organization should train unknowledgeable and unskillful employees to have more knowledge and skills required to work for the organization.