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This research was funded by Kemenristek DIKTI in 2019 Abstract This study aims to examine the strategic Human Resource Management (HRM) on organizational performance and enrich the scientific field of organizational performance. There is still not much research on organizational performance in the hospitality industry. Research locations in Malang Raya include Malang City, Malang District and Batu City (Indonesia). The research design is quantitative experimental. Research respondents were hotel personnel managers or assistant managers who worked for more than one year. Each hotel is represented by one respondent. The study population was 117 hotels. The method of determining the sample is a census. Questionnaire as an instrument to collect data. Data analysis techniques using description analysis and linear regression. The results of the research prove that strategic HRM has a significant effect on organizational performance and a rewards system is highly needed by employees when an industry is in a highly competitive position. Keywords: strategic HRM, organizational performance, reward system, productivity, hospitality DOI : 10.7176/EJBM/11-36-04 Publication date: December 31 st 2019
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