Influence of Business Strategy and Human Resource Management Practice on Organizational Performance with Mediation Human Resource Outcome (Study on Banking in Southeast Sulawesi Province)
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 8
Abstract
This study aims to determine the mechanism of causal relationship between Human Resource Management (HRM) Practice on Organizational Performance. In response to the debates from previous researchers on how HRM Practice affects Organizational Performance, it encourages further research in this dissertation by involving Business Strategy variable as an external factor of HR management and HR Outcome variable as an internal factor of HR management. Research this dissertation uses a universal perspective approach, contingency perspective and a configurationally perspective. The hypotheses based on these three approaches include the structural relationship between Business Strategy, HRM Practice, HR Outcome and Organizational Performance variables. Conducted a study on 52 units of banking organizations in the region of Southeast Sulawesi to obtain information related to research variables. The data obtained are statistically analyzed by Regression Structural Equation Modeling (SEM) by using IBM_SPSS_AMOS (Analysis of Moment Structure) application to obtain information of structural relationship between research variables simultaneously. The results obtained showed that the universal approach of placing Business Strategy horizontally or together with HRM Practice has an effect on Organizational Performance showing significant value. The contingency approach puts Business Strategy vertically above or precedes the HRM Practice so that structurally the influence of Business Strategy on Organizational Performance is through HRM Practice, the results are supported significantly. The Configurational Approach puts Business Strategy vertically ahead of the HRM Practice that is configured with HR Outcome that structurally mediates the impact of HRM Practice on Organizational Performance, the results are also supported significantly. A more in-depth analysis of the configuration theory is obtained that the HRM Practice dimensions affect the HR Outcome dimensions in certain realms, namely; The dimension of Resourcing & Development has an effect on the Employee Skill, the dimension of the Rewards affects Employee Attitude, the dimension of Involvement affects Employee Behaviour. HRM Practice can directly influence Organizational Performance but only from certain dimension that is the dimension of Resourcing & Development of human resources, while for the dimension of Rewards and Involvement can’t have direct effect. However, SEM analysis shows the dimensions of Rewards and Involvement can influence indirectly through its influence on HR Outcome that is on Attitude and Behaviour dimension. Analysis of the effect of dimensions of HR Outcome variables including Skill, Attitude, and Behaviour to Organizational Performance variables, shows that only the dimensions of Behaviour can directly influence or can realize Organizational Performance. The result of SEM analysis shows that between the dimensions in HR Outcome variable have serial effect. in accordance with the of AMO theory (Ability - Motivation - Opportunity) is the intellectual process of human resources leads to behaviour that is an opportunity to realize Organizational Performance.
Authors and Affiliations
Sam Arisal, Murdjani Kamaluddin, Rahmat Madjid, La Ode Bahana Adam
Keywords
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- EP ID EP412316
- DOI 10.9790/487X-2008026475.
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