"STRATEGIC SYNERGY: ALIGNING FINANCIAL PERFORMANCE WITH HUMAN CAPITAL MANAGEMENT"

Abstract

This research explores the connection between strategic human resource (HR) practices and financial performance, emphasizing the optimization of HR investments for long-term economic success. It investigates key HR strategies such as training programs, competency development, and reward systems, which are instrumental in improving organizational outcomes. The study synthesizes insights from recent industry research to provide an integrative analysis grounded in theoretical frameworks like the Resource-Based View (RBV) and Agency Theory. These frameworks help contextualize the impact of strategic HR practices on financial performance. The findings underscore the significant role of HR practices in boosting organizational productivity, operational efficiency, and cost management. Innovative approaches such as Green Human Resource Management (GHRM) are highlighted for their contributions to sustainability, enhanced reputation, and improved financial results. Additionally, integrating technology, such as data analytics and performance tracking systems is identified as a critical factor for informed decision-making and resource optimization. Aligning HR planning with organizational strategies is also emphasized to ensure cohesive and effective workforce management. While relying on secondary data presents limitations, the research opens avenues for future empirical studies to validate and expand upon its findings