The Contribution of Strategic Human Capital Management to Organizational Performance: A Case Study of PT Len Railway Systems Rita Rosmawati (*), Janah Sojanah, Eeng Ahman
Management, Faculty of Economics and Business Education, Indonesia University of Education
Jalan Dr. Setiabudhi No. 229, Isola, Kec. Sukasari, Kota Bandung 40154, Jawa Barat - Indonesia
*ritarosmawati5896[at]upi.edu
Abstract
In the era of Industry 4.0, organizational success is determined not only by technological innovation but also by the strategic management of human resources (HR). This study aims to analyze the implementation of human capital management (HCM) practices and their contribution to organizational performance at PT Len Railway Systems (PT LRS), a strategic company in the Indonesian railway industry. This research employed a qualitative case study approach, using data collected from in-depth interviews, direct observations, and document analysis of company performance reports over the last five years (2019-2023). The findings reveal that HCM practices at PT LRS are centered on five key aspects: (1) workforce planning and recruitment, (2) training and development, (3) performance evaluation, (4) employee retention and wellbeing, and (5) compensation systems. These practices significantly contribute to improving employee competence, motivation, loyalty, and overall organizational effectiveness. The results confirm that strategic HCM integration with corporate objectives strengthens the company^s competitiveness in a project-based transportation industry. This study implies that adaptive workforce planning, continuous training programs, transparent performance evaluations, and fair compensation policies are essential in supporting organizational sustainability and competitiveness. Furthermore, the study contributes to the academic literature by providing empirical evidence of HCM practices within a state-owned enterprise in Indonesia^s strategic transportation sector.
Keywords: Human Capital Management- Organizational Performance- Strategic HRM
