Abstract:

Management theories that exist at either the micro or the macro level predict that investments  in human resource (HR) management can improve corporate performance (CrooZ et al., 2011). These theories imply that HRs are important elements in influencing the course of an organization. Currently, humans are often viewed as assets of an organization. Thus,  investments in HRs create positive effects on both individual and organizational performance  (CrooZ et al., 2011). However, to create and sustain above-average organizational  performance, having competent HRs (employees) is not enough. These employees also need  to be committed. Therefore, the company must be able to design strategic HR systems and  practices that can develop employees’ competencies and commitment, especially in an era of  turbulence, economic downturns, and intense competition. Despite the difficulties that a  company may encounter, strategic HR management practices that start from planning,  development, and retaining employees should be implemented.