Abstract

Abstract This research combines quantitative research to calculate data variables and draw conclusions as well as meaning-based qualitative research for things that are observed and cannot be calculated precisely such as psychological factors in human resources and other human factors related to human capital investment and organizational performance in Hotel Industry throughout Indonesia and Malaysia. With careful observation based on activity reports and various reliable sources using content analysis, we find that investment in human capital can be successful if human factors of human resources can be fulfilled such as comfort and job satisfaction. So that the factors of expertise and work comfort are the two dominant factors in increasing the success of investing in human capital in improving organizational work.

Highlights

  • In human capital management, new ideas, frameworks and theories have sprung up to replace old ideas, frameworks and theories

  • Strategic Human Resources can hold from the perspective of human resources. They must integrate the perspectives of other scientists to study the characteristics of people in the organization and how these characteristics affect company performance in the field of Strategic Human Resource Management

  • This study combines qualitative content analysis from a collection of written, oral and visual texts to conclude with quantitative content analysis using secondary data collected during the study period which is estimated using Vector Error Correction Models to see the relationship of human capital investment and financial performance in the hotel industry in Indonesia and Malaysia

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Summary

Introduction

New ideas, frameworks and theories have sprung up to replace old ideas, frameworks and theories. Strategic Human Resources can hold from the perspective of human resources Still, they must integrate the perspectives of other scientists to study the characteristics of people in the organization and how these characteristics affect company performance in the field of Strategic Human Resource Management. Human resource management practices can affect the psychological processes of human resources being managed, such as changes in personnel commitment to the organization, organizational personnel behaviour, and other factors that can affect company performance. The human capital theory is a comprehensive framework in managing and developing human resources to improve organizational performance. Human capital in practice uses a psychological basis on how the practice of managing human resources owned by a company or organization to improve the performance of the company.

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