THE INTEGRATION FUNCTIONS OF HUMAN RESOURCES THROUGH REPOSITIONING FOR BUSINESS ADVANTAGE 181.Laurencia Krismadewi – Kristianus Oktriono
Abstract
The purpose of the study was to determine the effect of Integrating Human Resource Function in Repositioning to attain a competitive advantage in business. The method exerted is descriptive quantitative by using multiple regression. This study analyzed the influence of two independent variables, i.e. human resource development and repositioning of human resources function towards dependent variable, work ethics. The population sample involved about 240 people in the media industry in Indonesia. This study further recounted the complicity of human involvement in the process, company's vigor, and role implementation of human resources. The result expected is the ability in capturing and responding immediately to business dynamic alteration. It, moreover, is intended to transform the enterprise’s discernment concerning the role of human resources that originally initiated ‘people issues’ to ‘people related business issues’. The results indicated that human resource development and repositioning leavened positively and significantly on the work ethics of employees. Based on hypothesis testing using a technical regression and significance, it depicted that the two independent variables either jointly or partially impacted positively towards work ethics. It concluded that human resource development contributed a greater influence on the development in the employees’ work ethics.
Keywords: development, human resources, management, repositioning, work ethics
JEL Code: J24
182.Introduction
The development of media industry increasingly fast and rapidly with a variety of changes in the business environment that has a strong influence and affects every aspect of the organization such as added value, complex structure, span of control, management, work groups, process activity and form of communication or the delegation of authority. The influence of these changes will be demanded of the organization to open up to the business environment integratedly and strategically. In promoting of the change in an organization, it is required to make repositioning of behavior and human resources competencies to enhance the competitive edge in business that is inseparable from their resources. The human resources have become the prime mover and success of business processes in achieving the mission of the company.
The competitive challenges of the company are not only existed at the excellence of the product technology, processes, market and capital regulation, but also on the quality of human resources. The involvements of human resources for the business play prominent role and determine the success of the process of changes in organization because it is an important subject will implement the process of change and the results of it (Moran dan Brightman, 2000)5. In supporting the triumph of the company, the indispensable integration of the HR function required i.e. through the practice of HR practices in – business strategy that is meant to empower human resources have in the management of various work units in the company. Human resources involved in the process or activity of the company including human resources knowledge-based worker and range of multiskills. Changes in the business environment will be quickly followed by uncertainty, with many of the major issues are related to human resources, among others the management of human resources to create competence in management of workforce diversity to achieve competitive advantage.
In coping of these issues, the examination for a transformation is entailed in terms of the the role, capability of working, and a novel role for human resources repositioning including the repositioning behavior related to the improvement of human resources initiatives, an exceptional ethics, and repositioning of competence in regard to the improvement of the quality of human resources.
183.1 Literature Review
The role of human resources function is transforming radically in leading companies, in response to new business challenges and significant opportunities relating to the management of people. Operating unit management required specific and measurable human resources strategies and action plans that meet their business needs and that address overall business strategic thrust (Rubino, 1994) 6. The illustration of the repositioning process to development and establishment of the new structure, roles and human resources strategic objectives as follows:
Source: Alan L. Rubino. (1994). Repositioning the Human Resources Function at Hoffmann-LaRoche. HR Planning. ABI/Inform Research. 2(17) (2011) p.45.
According to Gerhart (2008)3, human resources management activities include transactional activities covering a strategic value, a traditional activity that has strategic value because of its moderate activity shaped the practices and systems to guarantee the implementation of strategies. It encompasses performance management, training, recruitment, selection, compensation and employee relations; and activities that creates transformational capabilities and adaptability of the long term for the company that includes knowledge management, management development, culture transformation and strategy to direct back and renewal. The five strategies for human resources i.e strategic staffing, performance management, development and learning, will appraise people and enhance employee’s relations in human resources effectiveness. This practice will include work redesign, change management, quality improvement, and other organization development initiatives (Jones, 1996)4. The performance of employee is linked to enhance knowledge, skills, positive attitudes, abilities and confidence (Armstrong, 2009). That offers employees an intense way of learning that is suited to their individual needs and thus leads to greater career satisfaction (Zaleska & De Menezes, 2007)10.
The most important outcomes of the repositioning for the human resources function are its improved business orientation (Rubino, 1994)2 related ways
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Improved client focus, through operating unit HR plans and value-added corporate services
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Dimished functional barriers within the human resources function, with resulting increased flexibility
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Streamlining of human resources process and development of new capabilities of staff, managers and employess for implementing them effectively
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Increased business knowledge and operating area experience among human resources staff, through rotation of talent and through increased client contact
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Expanded development ooportunities within human resources roles through continuous change and greater flexibility
Employee development is becoming an increasingly critical and strategic imperative for organizations in the current business environment (Sheri-Lynne, Parbudyal 2007)9. Fundamental changes in the business environment have created the sudden shift of importance of the HR function. These changes include rapid rate of business change; high uncertainty, rising costs; increasing competitive pressure on margins, rapid technological change; increasing demands for new skill through sourcing, education, and retraining, complex organizations; product, geography, technologies, business function, customers/markets, flatter, learner, more flexible organizations, changing demographics, limited labor organizations, responding to external forces: legalislation and regulation, litigation, union relations and union avoidance, increasing multinational competition and collaboration; multilateral relationships.
These environmental changes are leading to the acknowledgement by line management that human resources (i.e people) are important to the business and growing uncertainty associated with key human resources issues (Schuler, 1990)8.
Companies are beginning to recognize the importance of people to the business’s success – human resources issues really “people related business issues” in that influence the essence of the business-profitability, survival, competitiveness, adaptability, and flexibility. There is a growing level of uncertainty surrounding several key human resources concerns that companies can’t be certain of a sufficient supply of people, how to attract, retain and motivate an increasingly diverse workforce, getting or having individuals with the right skills, knowledge and abilities, employees behaving in ways necessary for the company to be competitive, domestically and internationally.
The two human resources issues together are transforming how the HR function is regarded, and also how the organizations take action-to transform HR department from functional specialist to a management team player with a business understanding. The transformation of the HR department to management is impossible without repositioning. The profitability of the business could be threatened by people-related business issues:
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Managing for employee competence. Increasingly, individuals coming into the workforce lack sufficient skills or as employees they become obsolete due to technological advances or organizational changes.
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Managing workforce diversity. This means attracting, retaining, and motivating individuals with diverse and varied backgrounds regarding race, sex, origin, age and language.
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Managing for enhanced competitiveness. A major recognition of organizations today is that success and survival depend upon greater levels of operational today is that success and survival depend upon greater levels of operational and strategic effectiveness efficiency. Broadly, this is being translated into restructuring and downsizing operations, reducing costs of operation, enhacing levels of the quality of goods and services and continuous and systematic innovation of new products and services.
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Managing for globalization. The entire world is the arena for the purchase of goods and services and for manufacturing. This area must be understood and mastered by organizations to compete successfully.
184.2 Problem Statement
The main objective of the study is to analyze the integration functions of human resources through repositioning for business advantage. The background of the study identifies some highlights i.e. the determination of differentiated qualification in the recruitment process, the training given to incommenssurate employees, the employee performance decreased, the high frequency of employees’ turnover.
Authors address and formulate three key issues in the study as follows:
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Does the integration functions analysis of human resources have a significant effect on work ethics?
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Does performance have a significant effect on work ethics?
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Does the level of integration functions of human resources and performance affect on work ethics?
185.3 Conceptual Model
The conceptualization of the linking HR development to organizational strategy integrated with business process is depicted by figure 1.
Fig.1. Conceptual Model
Strategies can only be effectively implemented if organizations hold a competent force of employees (Sanghi, 2009)7. An important role in redefining the role of human resources (HR) to the tune of a changing environment with the following model system:
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Selection systems
|
All interviews are looking for the same set of abilities and characteristics
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Training and development
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It provides a list of behaviors and skills that must be developed to maintain satisfactory levels of performance
Training helps to enhance productivity and performance of the associated employees which leads to increase quality of service and ultimately enhance financial performance of the organization (Bhatia, 2006)2.
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Sucession planning
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It focuses on the same set of attributes and skills relevant to success on the positions under consideration
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Performance management
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It clarifies what is expected from the individuals
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Appraisal system
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It focuses on specific behavior, offering a roadmap for recognition, reward and possible advancement
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The successful implementation of business strategies include total quality management, cultural diversity, value management and values for excellence depends largely on effectiveness in addressing people-related issues (Jones, 1996)4.
Based on the previous research, this study emphasized more on development of human resources, repositioning and work ethics as below:
186.4 Research Approach and Proposition
The study involved 240 respondents who work in media industry. The primary data are gathered and assembled through a structured questionnaire. The secondary data for this study are populated from scientific journal, and books which contributed to the literature review. The study proposed:
Hypothesis 1: The development of human resources in media industry in Jakarta has a significant effect on work ethics
Hypothesis 2: Repositioning in media industry in Jakarta has a significant effect on work ethics
Hypothesis 3: The development of human resources and repositioning in media industry in Jakarta affect on work ethics
187.5 Data Analysis and Findings
The study encompassed work ethics as the dependent variable. The independent variables comprise of development of human resources and repositioning.
Data analysis was performed using Statistical Packages of the Social Science (SPSS). Multiple regression analysis was utilized to determine the relationship between the independent variables and the dependent variable.
The results of data processing using SPSS are based on the following calculation:
Table 1. Analysis of Multiple Linear Regressions
Independent Variable
|
Regression Coefficient
|
Beta
|
t-value
|
Sig
|
(Constant)
|
2.514
|
|
8.771
|
0.000
|
Development of HR
|
0.219
|
0.296
|
3.907
|
0.000
|
Repositioning
|
0.232
|
0.271
|
3.571
|
0.000
|
R
|
0.469
|
R Square
|
0.420
|
F
|
22.168
|
Sig F
|
0.000
|
Table 1 depicted that the numbers R obtained 0.469 and it explained the correlation between variables of development of human resources and repositioning on the work ethics is 0.469. It denoted a strong relationship. The R square is also known as the coefficient of determination; to determine the contribution of independent variable (X) simultaneously in explaining the dependent variable (Y) may also indicate a wide. R square indicated the increase or decrease of the dependent variable explained by the linear influence of independent variable. The value of R square of 0.420 means contribution percentage of the influence of development of human resources variables and repositioning on work ethics amounted to 42%, whilst the remaining 58% is influenced by other variables not included in this research model. Test results of F count is 22.168 with 95% confidence level, α = 5%, and obtained value of F-table is 3.04. F calculate > F table (22168 > 3.04). Ho is rejected, which implied the development of human resources and repositioning collectively influence on work ethics.
Dimensions Correlation The Influence of Development of Human Resources on Work Ethics
To determine the strength of influence between variable dimensions of Development of Human Resources on work ethics variable which is described by the following matrix?
Table 2.The Correlation Matrix of Development of Human Resources on Work Ethics
Variable
|
Work Ethics
|
Development of Human Resources
(X1)
|
Dimension
|
Y1
|
Y2
|
Y3
|
Y4
|
Y5
|
X11
|
0.270
|
0.231
|
0.120
|
0.299
|
0.334
|
X12
|
0.344
|
0.141.
|
0.223
|
0.421
|
0.348
|
X13
|
0.464
|
0.253
|
0.206
|
0.342
|
0.546
|
X14
|
0.434
|
0.280
|
0.419
|
0.551
|
0.435
|
X15
|
0.425
|
0.219
|
0.130
|
0.259
|
0.231
|
Description:
X11 = Performance Y1 = Job Quality
X12 = Training Y2 = Motivation
X13 = Support Y3 = Contribution
X14= Career Information Y4 = Opportunity
X15 = Career Needs Y5= Behaviour
Table 2 indicated a weak relationship between performances on contributions in the amount of 0.120. Thus, the influence the assessment of the achievements of the work does not affect significantly on the contribution of employees in the company. Employees’ engagement required improvement in management roles by providing the opportunity for employees to involve in the business processes. It provides positive impact for employees that their contribution emphasiezed an important role. Therefore, it will increase their internal motivation that affects the achievements and productivity of the company.
The greatest value presented on the dimension of the career opportunities is 0.551. This depicted a very strong relationship of information on career opportunities. Work ethics of employees will be increased along with the existence of the opportunity provided by the company. The employees’ career embodied career information i.e. career planning and career management that is transparent, equitable and overt. Development and career planning enacted a major role in the part for ensuring that the organization has competitive workforce and knowledgeable.
The Influence of Repositioning on Work Ethics
To determine the strength of influence between variable dimensions of Repositioning on Work ethics variable is described by the following matrix:
Table 3.The Correlation Matrix of Repositioning on Work Ethics
Variable
|
Work Ethics
|
Repositioning
(X2)
|
Dimension
|
Y1
|
Y2
|
Y3
|
Y4
|
Y5
|
X21
|
0.224
|
0.341
|
0.120
|
0.222
|
0.290
|
X22
|
0.310
|
0.256
|
0.342
|
0.411
|
0.367
|
X23
|
0.314
|
0.212
|
0.227
|
0.309
|
0.340
|
X24
|
0.161
|
0.227
|
0.227
|
0.179
|
0.143
|
X25
|
0.339
|
0.189
|
0.134
|
0.284
|
0.304
|
Description:
X21 = Knowledge Y1 = Job Quality
X22 = Skills Y2 = Motivation
X23 = Technical capability Y3 = Contribution
X24 = Concept Y4 = Opportunity
X25 = Relation Y5= Behaviour
The table 3 revealed a weak relation between knowledge on contributions is 0.120 so it was concluded that the knowledge is not significantly influential on contributions in the company, while the biggest value is presented by the dimension of skills on the chance is 0.411. This means there is a strong relationship between the work ethos on the opportunity that was given to employees for developing their potential and skills. Support from organizations or companies can be realized through the training both internally and externally.
188.Conclusion
This study has analyzed the influence of two independent variables, i.e. human resource development and repositioning of human resources function towards dependent variable (work ethics) in Jakarta media industry. The main findings on this study are listed below:
Based on the analysis of human resources development and repositioning in a positive and significant, it impacts on work ethics which means human resources development required way of working, thinking and a new role of HR repositioning. It will improve work ethics of employees in the company. The first variable is human resources development that influenced employees positively and significantly on the work ethics of employees, which means that by increasing human resources function, the employees will improve the work ethics. Secondly, repositioning variable that influenced positively and significantly on work ethics of employees, which means that transformation of human resources function i.e. repositioning or behavior will increase the work ethics. Human resources development variable has a greater influence than repositioning variable.
Based on the analysis of the relationship human resources development and work ethics obtained, it is concluded that career information dimension becomes the dominant factor of work ethics to be improved. Meanwhile, the weak relationship is the performance evaluation of employee to contribution, which can be deduced that the assessment does not significantly influence the contribution or participation of employees.
Based on the correlation analysis of the repositioning and work ethics, it exhibited that skill dimension becomes the dominant factor of employees to be improved. The other analysis results of other dimensions specifically and fairly strong positive affected on work ethics i.e. relation and work quality, motivation and knowledge, skills and contribution, skills and behavior.
189.References
Armstong M. (2009). A handbook of Human Resource Management practices. (11th ed.). London: Kogan Page Limited.
Bhatia S.K. (2006). Human Resource Management - A Competitive Advantage - Concepts, Strategies, Challenges. India: Jain book Agency.
Gerhart, H & Hollenback, J.R & Noe, Raymond A. & Wright, Patrick M. (2008). Human Resources Management. New York : McGraw-Hill.
Jones, David D. (1996). Repositioning Human Resources. HR Planning. ABI/Inform Research 1(19). p.51.
Moran,J.W. & Brightman. (2000). Leading Organizational Change. Journal of Workplace Learning. MCM University Press.
Rubino, Alan L. (1994). Repositioning the Human Resources Function at Hoffmann-LaRoche. HR Planning. ABI/Inform Research 2(17). p.45.
Sanghi, Seema. (2009). Building Competencies. Industrial Management. ABI/Inform Research. May/Jun. 51(3). p.14.
[Schuler, Randall S. (1990). Repositioning the Human Resource Function : Transformation or Denise ? The Executive. ABI/Inform Research 4(3). p.49.
Sheri-Lynne, Leskiw and Parbudyal Singh. (2007). Leadership development: learning from best practices. Leadership and Organization Development Journal, 28(5).
Zaleska, K. & De Menezes, L. (2007). Human resources development practices and their association with employee attitudes: Between traditional and new careers. Human Relations, 60(7). p. 987-1018.
Contact
Laurencia S. Krismadewi
University of Economics Prague
Náměstí Winstona Churchilla 4, 130 67 Praha 3, Czech Republic
kril02@vse.cz or lauren.paree@yahoo.fr
Kristianus Oktriono
Language Center
Bina Nusantara University, Jakarta, Indonesia
koktriono@binus.edu
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