THE DEFINITION OF "BUNDLES" OF HUMAN RESOURCE MANAGEMENT FUNCTION AND THEIR CONNECTION WITH THE FINANCIAL PERFORMANCE OF COMPANIES

The development of human resource management function in modern business is one of the key elements of management as a discipline and as a practical activity in the process of managing people and organisational success. In this respect, theoretical and empirical research has been conducted in order to reveal the most dominant groups of activities ("bundles") in the field of human resource management, related to financial performances of Croatian companies. Human resource managers of companies listed on the Croatian Stock Exchange Market were contacted so as to get their opinion regarding the level of development of human resource management function. The next step was to identify the financial ratios of the same companies. The analysis provided very interesting results, whereby the key aspect are three different "bundles" comprised of different human resource activities that affect the business performance. The research also confirmed that connection between "bundles" and companies' financial results is stronger than relation between separated (isolated) human resource activities and observed results.