The Dominance of Human Resource Management Practices Over the Financial Performance in Malaysian Companies

Abstract

The intense and continues changes in working environment lead the companies in Malaysia to gain and conquer the competitive advantages in order to compete well with other competitors in the market and with effective utilization of Human Resource Management in the aspect of its practices, companies will able to gain the advantages not only in terms of human capital, as well as increase in performance in general including the financial performance. The ignorance on the domain hold by the Human Resource Management had shown that companies tend to neglect the essential of human resource practices and focus on the continuity of business affair especially after the pandemic strikes. Thus, this paper is to gain the put the Human Resource Management practices under the spotlight its deserved through the scope of financial performance. This study applying the literature review technique on the secondary resources that are relevant to human resource practices and financial performance aspect. Therefore, through this paper the corporate sectors in Malaysia can be alert on the influence of human resource practices had in order to steer company upon the desirable outcome such as profitable return and boost in term of financial performance.