DIE : Jurnal Ilmu Ekonomi dan Manajemen Website: http://jurnal.untag-sby.ac.id/index.php/die/index 195 DIE: Jurnal Ilmu Ekonomi dan Manajemen ISSN. 0216-6488 (Print), 2775-7935 (Online) The Influence of Human Capital on Organizational Performance M. Taufiq Hidayat 1 , Arifin Puji Widodo 2 Fakultas Ekonomi dan Bisnis, Universitas 17 Agustus 1945 Surabaya 1 Fakultas Ekonomi dan Bisnis, Universitas Dinamika 2 taufikhidayat@untag-sby.ac.id 1 arifin@dinamika.ac.id 2 Received: July, 2022; Accepted: August, 2022; Published: September, 2022 ABSTRACT Currently, the economic downturn in various parts of the world has made human capital increasingly important with increasing globalization and the saturation of the job market.In order to increase economic growth by giving more time and effort, both developed and developing countries place an emphasis on human resource development.To enter the international arena, human resource development is one of the basic solutions.For this, companies need to invest the necessary resources to develop human resources that have a greater impact on performance.This paper reviews the effects of human capital having a direct impact on firm performance from various critical perspectives.Company performance in terms of financial and non-financial performance.Finally, this paper proposes an initial model that explains the relationship between human capital and firm performance. Keywords: Human capital; Company, Performance INTRODUCTION Human capital development is the process of helping people to acquire skills. In an organizational context, this is the process by which organizations assist their employees on an ongoing and planned basis to: acquire or sharpen the skills necessary to perform various functions related to their current or expected future roles; develop their general skills as individuals, discover and utilize their inner potential for their own and/or organizational development purposes; develop an organizational culture in which superior-subordinate relationships, teamwork and collaboration between sub-units are strong and contribute to the professional