PENGARUH FAKTOR MANAJEMEN SUMBER DAYA MANUSIA TERHADAP KINERJA ORGANISASI DI INDUSTRI PERBANKAN INDONESIA = THE EFFECT OF HRM FACTORS ON THE ORGANIZATIONAL PERFORMANCE IN THE INDONESIAN BANKING INDUSTRY

This study investigates the effect of Human Resource Management (HRM) factors on organizational performance in the Indonesian banking industry. Using panel data from 31 commercial banks between 2020 and 2023, organizational performance was measured by Return on Assets (ROA). The independent variables are HRM investment, individual employee performance, and employee growth, analyzed through multiple regression. The findings reveal that individual employee performance has a positive and significant effect on ROA, underscoring the critical role of workforce productivity in bank profitability. Conversely, HRM investment and employee growth show no significant effect, suggesting that higher budgets and larger workforces do not automatically translate into better financial outcomes. The model explains 41.7% of ROA variation, and diagnostic tests confirm validity. Overall, the results highlight that productivity, rather than spending or expansion, is the main driver of profitability in Indonesian banks.

Keyword : Human Resource Management, Employee Performance, Organizational Performance, ROA, Indonesian Banking.