Strategic human resource management to improve the performance of the financial status of the financial institutes

Economic Annals-XXI: Volume 211, Issue (11-12), Pages: 56-61

Citation information
Hinelo, R., Muktirizka, S. A., Prabowo, H., Mariani, M., & Maharani, A. (2024). Strategic human resource management to improve the performance of the financial status of the financial institutes. Economic Annals-XXI, 212(11-12), 56-61. doi: https://doi.org/10.21003/ea.V212-10

Raflin Hinelo
PhD (Management),
Universitas Negeri Gorontalo
Jl. Jend. Sudirman No.6, kota Gorontalo, 96128, Indonesia
raflin@ung.ac.id
ORCID ID: https://orcid.org/0000-0003-0386-9564

Sri Ainin Muktirizka
PhD (Research and Management),
Management Department,
Doctor of Research in Management,
Binus Business School
Jl. Raya Kb. Jeruk No.27, Kemanggisan, Kec. Palmerah, Kota Jakarta Barat, Daerah Khusus
Ibukota Jakarta, 11530, Indonesia
sri.muktirizka@binus.ac.id
ORCID ID: https://orcid.org/0009-0005-8555-5607

Harjanto Prabowo
PhD (Research and Management),
Management Department,
Doctor of Research in Management,
Binus Business School
Jl. Raya Kb. Jeruk No.27, Kemanggisan, Kec.Palmerah, Kota Jakarta Barat, Daerah Khusus Ibukota Jakarta, 11530, Indonesia
harprabowo@bisnus.edu
ORCID ID: https://orcid.org/0000-0002-9317-2818

Minsani Mariani
PhD (Research and Management),
Management Department,
Doctor of Research in Management,
Binus Business School
Jl. Raya Kb. Jeruk No.27, Kemanggisan, Kec. Palmerah, Kota Jakarta Barat, Daerah Khusus Ibukota Jakarta, 11530, Indonesia
mmariani@binus.edu
ORCID ID: https://orcid.org/0000-0002-4865-8317

Anita Maharani
PhD (Research and Management),
Management Department,
Doctor of Research in Management,
Binus Business School
Jl. Raya Kb. Jeruk No.27, Kemanggisan, Kec. Palmerah, Kota Jakarta Barat, Daerah Khusus Ibukota Jakarta, 11530, Indonesia
anita.maharani@binus.edu
ORCID ID: https://orcid.org/0000-0003-3942-9755

Strategic human resource management to improve the performance of the financial status of the financial institutes

Abstract. Strategic human resource management (SHRM) is the result of utilizing human resources and planned activities that help the organization achieve its goals. The purpose of the present study is to investigate the relationship between SHRM and financial performance of financial institutes. The present study deals with the effect of SHRM functions on organizational performance, with respect to the financial management variable. This study is based on the purpose of an applied study and category of data collection, it is a survey-descriptive. The statistical population of the study is all banks and credit institutions in Jakarta, and through non-probability sampling, data were collected from 31 banks and credit institutions in the form of a questionnaire and were examined and analyzed. Descriptive and inferential statistical approaches using SPSS software were used to analyze the data. The research findings showed that companies that pursue SHRM activities have better performance and the use of SHRM measures and principles improves the performance of companies. The questionnaires’ reliability, calculated by Cronbach’s alpha, was above 83% for the functions of human resource management, financial management and performance of companies. The results of data analysis showed that human resource management functions have a positive and significant impact on the management and financial performance of the company; also, financial management has a positive and significant impact on organizational performance.

Keywords: Strategic Human Resource Management; SHRM; HRM; Financial Management; Organizational Performance; Financial Institution; Bank; Credit Institution; Recruitment; Employee

JEL Classifications: Е24; Е41; Е64; I18; J28; J31

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V212-10

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Received 23.09.2024
Received in revised form 20.10.2024
Accepted 1.11.2024
Available online 28.12.2024