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.
Hinelo et al. (Sat,) studied this question.
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