Building Company Performance and Employee Performance: The role of HRM Practices Management as an Initial Trigger

    Subagyo Adam ,Hadi Priyono ,Dyah Setyawati ,M. Ch. Sina Setyadi ,M. Natsir

    Abstract

    This study aims (1) to describe the HRM Practices, employee performance and company performance; (2) to analyze the effect of HRM Practices on company performance; (3) to analyze the influence of HRM Practices on company performance through employee performance. The sample used in this study was 150 people. The analysis technique given is the Path model and completed with SPSS program. The t-equation model is a combination of factor analysis, t regression and path analysis. Structural equation method can be tested to determine the value of direct influence, indirect effect, and total effect between exogenous variables and endogenous variables. HRM practices on company performance, which means that company performance will be obtained to the maximum if HRM practices are carried out optimally. Furthermore, HRM practices in supporting company performance through employee performance. It can be assumed that the better the application of HRM Practicess in supporting employee performance, the more motivated employees will be to improve performance so that it can support the improvement of company performance. From the results of data analysis, the effect of HRM Practicess in improving company performance can be maximized through employee performance. Employee performance has the greatest dominance value in influencing the implementation of human resources management practices on company performance.

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