Keywords
Human Resource Management
Employee Well-Being
Work Productivity
How to Cite
Abstract
The increasingly competitive work environment requires organizations to manage human resources (HR) strategically by paying attention to employees’ psychological aspects. The application of psychological principles in human resource management is believed to enhance productivity as well as employees’ psychological well-being. This study aims to examine the implementation of psychological principles in human resource management at Company X and its impact on employee productivity and well-being. This research employs a qualitative approach using a case study method. Data were collected through structured interviews with human resource management personnel, focusing on the application of psychology in recruitment and selection, training and development, performance appraisal, motivation, and psychological well-being. The results indicate that the application of psychological principles in HR management has a positive impact on work effectiveness, employee engagement, and the creation of a more harmonious work environment. However, this study also identifies challenges, including limited understanding among some management members regarding the importance of psychological aspects and difficulties in measuring the direct impact of psychological implementation in the short term. Overall, this study confirms that integrating psychological principles into human resource management is a crucial factor in improving organizational productivity and sustaining employee well-being.
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