As the global corporate environment intensifies and complicates, the survival of business relies on how critical the competencies and competitive advantages a company possesses. Since most companies tend to have similar infrastructures, equipment and technologies, which leaves only one factor vital to determining the success or failure of a company, human resources.

Modern HRM should be constantly monitored and measured for its impacts on the people and the organization because it can serve as a driver in increasing the value of intellectual capital and helping enterprises boost organizational performance. Peter Drucker, perhaps the top management philosopher of our time, spoke of about the issue of measurement in several of his writings and emphasized how vital it was to measure HR effectiveness as measurement is the weakest area in management today (Fitz-enz, 1995).

Job satisfaction, on the other hand, as Robbins (1998) pointed out, is important to the employees and the company because it can serve as an indicator that helps to identify problems from the aspects such as communications, working conditions and interactions, etc. And by dealing with the problems once they arise, it can improve the level of job satisfaction of the employees and therefore contribute the positive effects to the outcome of the company.

This research study investigates the influence of HR effectiveness and job satisfaction on organizational performance and the results show that (1) HR effectiveness has significantly positive influence on organizational performance; (2) job satisfaction has partially significant positive influence on organizational performance; (3) HR effectiveness has significantly positive influence on job satisfaction.

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