This study aims to examine the strategic Human Resource Management (HRM) on organizational performance and enrich the scientific field of organizational performance. There is still not much research on organizational performance in the hospitality industry. Research locations in Malang Raya include Malang City, Malang District and Batu City (Indonesia). The research design is quantitative experimental. Research respondents were hotel personnel managers or assistant managers who worked for more than one year. Each hotel is represented by one respondent. The study population was 117 hotels. The method of determining the sample is a census. Questionnaire as an instrument to collect data. Data analysis techniques using description analysis and linear regression. The results of the research prove that strategic HRM has a significant effect on organizational performance and a rewards system is highly needed by employees when an industry is in a highly competitive position.
27Armstrong (2008) explains that human resource management in companies was a logical and conceptualized way of properly managing employees as corporate assets that are managed individually or in groups to achieve organizational goals. In general, HRM areas include work programs related to organizational effectiveness, human capital management, knowledge management, gift management, employee relations, meeting diverse needs and bridging the gap between rhetoric and reality (Armstrong, 2008)
StrategyThe strategy has two basic meanings, namely what is to be achieved and how to achieve it (Armstrong, 2008). The strategy includes the dimensions of time, activities and achievements. A good strategy is that the organization is able to carry out the functions of the dimensions of time, activities, and achievements carefully. To maximize competitive advantage requires a strategy, which is to integrate the capabilities and resources of the company with existing external opportunities. Hofer and Schendel (1986) conclude that top management has a job at the strategic level that is matching effectively and efficiently from time to time between organizational competencies (internal resources and skills) with opportunities, risks that change due to external environmental conditions.Many experts explain the strategy with various versions. The 1960s such as Chandler (1962) explained that strategies were more focused on setting long-term goals and objectives and taking action to allocate company resources to achieve goals. In the 1970s, Child (1972) described the strategy as a fundamental and critical choice in setting business goals. In the 1980s, Rumelt (1984) described the strategy as a way of utilizing organizational unique resources when the external environment changed. In 1990 there was an environmental change that is high-level competition, so the meaning of the strategy shifted a little as directed by Johnson and Scholes (1993) that the strategy was a setting the direction of the organization for the long term, integrating resources and changes optimally, es...