The Impact of Human Resource Management on Organizational Performance in Manufacturing Companies in West Java

Abstract

Purpose: This study aims to explore the relationship between Human Resource Management (HRM) practices and organizational performance in manufacturing companies in West Java, Indonesia. It focuses on the impact of recruitment, training and development, performance management, and employee engagement on overall organizational outcomes.

Subjects and Methods: A quantitative research design was adopted, involving 150 employees from various manufacturing firms in West Java as respondents. Data were gathered using structured questionnaires and analyzed through statistical techniques to examine the influence of HRM practices on performance indicators.

Results: The findings reveal that HRM practices significantly contribute to organizational performance, with employee engagement identified as the most influential factor, followed by training and development, and performance management. Recruitment showed a weaker but still positive relationship with organizational outcomes. These results highlight the importance of fostering employee involvement, continuous skill development, and effective performance monitoring to drive organizational success. The study supports the resource-based view of HRM, emphasizing human capital as a key driver of competitive advantage.

Conclusions: Organizations in West Java’s manufacturing sector can enhance performance by strategically implementing HRM practices that prioritize employee engagement, skill development, and effective management systems.