Abstract
<p>Human resource management (HRM) is the foundation to face business competition. Organizational strategies related to HRM create satisfaction among employees so that employees perform well and can create a competitive advantage for their organization. The need for human resources in the hospital industry has developed along with the availability of hospitals reaching 2813 hospitals in Indonesia. This of course requires superior human resources performance. HRM practices are expected to drive human resources performance and achieve a competitive advantage in the hospital industry. This study will examine the effect of HRM practices, namely training, performance appraisal, and compensation systems on employee performance. Furthermore, this study will also examine the role of job satisfaction to mediate HRM practices on employee performance. The study was conducted in a private hospital in the Surakarta area with a sample of 120 respondents. Convenience sampling technique as a sampling method used to collect samples using a questionnaire. SmartPLS is used to analyze research data. The results showed that there was a significant positive effect on HRM Practices (training, performance appraisal, compensation system) on employee performance. However, job satisfaction only mediates the effect of performance appraisal and compensation system on employee performance, while job satisfaction does not play a role in mediating the effect of training on employee performance..</p>
Highlights
The dynamic business environment requires every organization to maximize its strategic capabilities to take advantage of business opportunities and achieve superior performance compared to its business competitors
The purpose of this study was to investigate the impact of human resource management practices (HRMP), which include training, performance appraisal, and remuneration systems, on employee performance in private hospitals, as mediated by job satisfaction
The results of the analysis of research data to see the effect of training on results of the analysis show that the first hypothesis (b) is accepted means that there is an influence of performance appraisal on the performance of employees of the private hospital industry in Surakarta
Summary
The dynamic business environment requires every organization to maximize its strategic capabilities to take advantage of business opportunities and achieve superior performance compared to its business competitors. Effectiveness of human resource management is needed to support organizational performance, for that employees as the main organizational resources are in a strategic position to be able to create a competitive advantage (Allameh et al, 2014; Khan, 2010; Taib et al, 2018) because human resources in each organization vary, they have unique characteristics and cannot be imitated (Shaukat et al, 2015). Effective human resource management practices directly impact the performance of an organization and its ability to obtain a competitive edge (Chukwuka Ernest J., 2016; Rawashdeh & Al-Adwan, 2012). This is a fact that human resources play an essential role in managing the life and long-term viability of a company's operations since human resources are responsible for carrying out the organization's policies, programs, objectives, and goals. Good human resource management practices (HRMP) contributes to the creation of a good organizational climate so that it will provide opportunities for the development and proper distribution of work for members of the organization and create a pleasant working relationship
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