The intense and continues changes in working environment lead the companies in Malaysia to gain and conquer the competitive advantages in order to compete well with other competitors in the market and with effective utilization of Human Resource Management in the aspect of its functions, companies will able to gain the advantages not only in terms of human capital, as well as increase in performance in general including the financial performance. In additions, according to Cyert and March (1963), profit was identified as the one of the domains that is consistently important to an organization aside from inventory, market share and production. It is no doubt that, with the intense competition due to globalization, the organization required to obtain a better financial performance and to maintain financial position in order to run its daily business operations and continues operate the business in the long term. The main objective of this study not only to study the relationship of each functions of Human Resource Management have but to identify which functions that influence the most toward the financial performance of the companies. The methods used for this research study is quantitative method and 200 questionnaires had been distributed and collected for data analysis purposes. SPSS software was used to analyse the data retrieved from the questionnaires and the outcomes of this had showed that, performance appraisal have the most influential effect upon the financial performance of Malaysian Public Listed Companies and all the functions does establish a relationship with the financial performance but the most influential functions was performance appraisals with slight different from compensation and the least influential functions was job flexibility followed by recruitment & selection.
