Human resource management practices of medium-sized companies in the textile industry in Java, Indonesia

Recently, human resource is considered as the most important resource of the organisations. Mathis and Jackson (2008, p. 4) claim that Human Resource (HR) management deals with 'the designing management systems to ensure that human talent is used effectively and efficiently to accomplish organisational goals'. HRM has been characterised as diverse, strategic, commitment-oriented and based on the belief that people should be treated as human capital (Armstrong, 2006). DeCenzo and Robbins (2007) suggest that HRM must balance two primary responsibilities: assisting the organisation in its strategic direction and representing and advocating for the organisation’s employees. They suggest further that HRM must take the lead in assisting management with the people component of the organisation and also serve the organisation by determining lower-cost strategies in its HRM practices. Therefore, the role of the HR manager is to make sure that all HRM functions are performed in accordance with the organisational objectives. Success of managers in the new century would absolutely depend upon their capabilities in managing human resources (Budhwar & Debrah, 2001).