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CHAPTER I
INTRODUCTION
1.1 Research Background
The demographic trends and changing business conditions in the last two decades have made many companies to find ways to have competitive advantage by changing their managements. These conditions have also been responsed by expertises and scientists of human resource management. Based on their findings of many studies, human resource roles have been developed into more strategically in business activities to meet those demands.
The new Human Resource (HR) Roles have been shifting and related to organization strategy. The new HR Roles refers to a set of new roles for HR professionals to execute transformation for organization. HR Roles concept is developed by Ulrich, and consists of Strategic Partner, Change Agent, Employee Champion, and Administrative Expert. On the other hand, it would be the responsibility of HR professionals to manage changes in organizations by conducting human resource transformation. HR Roles will deliver successful result in HR transformation, if HR professionals can execute the above four roles comprehensively. In executing HR Roles, especially strategic partner and change agent roles, specific HR competencies are expected to HR professionals in order to deliver contribution for the success of human resource transformation process and to be a strategic business partner of the company.
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advantage is Human Resource Competency Study released by Dave Ulrich and the University of Michigan (2002). Meanwhile, the new Human Resource Competency Study (HRCS) Model 2007 had also been released by them in 2007 to reply all the responses from HR professionals of HRCS Model 2002, as it is captured from Ulrich’s statement: “People want to know what set of skills high-achieving HR people need to perform even better,” says Ulrich, co-director of the
project along with Wayne Brockbank, also a professor of business at the University of Michigan (Sharpe, 2007).
Result of the survey for HRCS Model 2007 was the six domain competencies. These six domains consist of : Credible Activist, Business Ally, Strategy Architect, Operational Executor, Talent Manager and Organization Designer, and Culture and Change Steward. These six domains are to be used in this research as independent variables that relate to HR Roles as dependent variable in carrying out the research.
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According to Long & Ismail (2008) on the findings of their research showed that HR executive in the manufacturing companies of the southern region of Malaysia were lacking in business related human resource competencies. This was one of the main barriers to be surmounted if local HR executives were to become strategic partners in their organizations. The findings of this research have shown that HR professionals in the manufacturing companies of the southern region of Malaysia were lacking in their capacities to execute important roles as strategic partner and agent for change. HR competencies used in this study was based on the Human Resources Competency Study Model 2002 held by the University of Michigan, consist of five domains: Strategic Contributions, Business Knowledge, Personal Credibility, HR Delivery, HRTechnology.
A well-known concept of Ulrich’s HR Roles in organization, known as strategic partner, change agent, employee champion, and administrative expert
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using HR Roles. It is predicted that in 2011 onwards, there will be more companies and maybe even medium size companies implement HR transformation.
Successful companies which have implemented HR transformation by executing HR Roles, depended on and influenced by key competencies possessed by HR professionals to execute the four roles comprehensively as business partners for their companies. Do all HR professionals possess key competencies as what required to execute HR Roles in order to deliver contribution to the sustainable success of the companies? How are the extent of executing HR Roles by HR professionals and HR Competencies they possessed to perform those roles in their companies? Which elements of HR Competencies that have significant influence on HR Roles to become a strategic partner? In order to get the findings, a research to be conducted to many manufacturing industries in Sidoarjo and Pasuruan.
1.2 Statement of Problems
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manufacturing industries in South Malaysia. This research used Human Resource Competencies Study Model 2002 as above mentioned. While at the moment, there was a new HRCS Model 2007 resulted from research in 2007 by Ulrich through the University of Michigan. The results include six domains: Credible Activist,
Business Ally, Strategy Architect, Operational Executor, Talent
Manager/Organization Designer, and Culture and Change Steward. Besides, an
empirical study mentioned that more than 300 big companies in Indonesia have implemented HR transformation.
Based on the above backgrounds (phenomenon), and to examine the influence of HR Competencies on HR Roles, a research to be carried out for the above issues and problems stated as the following:
1. How are the extent of executing HR Roles by HR professionals and HR Competencies that currently they possessed to perform those roles in their companies?
2. Do HR Competencies on Business Related Competencies have most significant influence on HR Roles on Strategic Focus?
3. Do HR Competencies on HR Professional Competencies have most significant influence on HR Roles on Operational Focus?
1.3 Research Objectives
Research objectives are as follows:
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To examine the most significant influence of HR Competencies on HR Roles.
1.4 Research Contributions
This research contributes for the below mentioned:
For University and Academician.
On theoretical contribution is that result of this research to be used :
o As a reference for those who intend to carry out further research on HR Roles and HR Competencies of HR professionals who work at more various kind of businesses.
o To deliver contribution in developing human resource management science specifically in human resource transformation. The development of human resource roles to become more strategically, as a business partner of the company, given human resource professionals to execute human resource roles comprehensively in order to transform human resource to be aligned with corporate strategy.
For Practitioners
THE ROLES AND COMPETENCIES OF HUMAN RESOURCE PROFESSIONALS WITHIN HUMAN RESOURCE TRANSFORMATION IN
SIDOARJO AND PASURUAN MANUFACTURING INDUSTRIES
Fulfilling part of conditions for attainment of Master Degree Magister of Management
Proposed by: Dianawati Suryaningtyas
NIM 09660023
POST GRADUATE PROGRAM
THE ROLES AND COMPETENCIES OF HUMAN RESOURCE PROFESSIONALS WITHIN HUMAN RESOURCE TRANSFORMATION IN SIDOARJO AND PASURUAN
MANUFACTURING INDUSTRIES
Proposed by : Dianawati Suryaningtyas
Nim : 09660023
Had been approved on : October 4th, 2011
Academic Supervisor I Academic Supervisor II
Dr. Nazaruddin Malik, MSi. Dra. Uci Yuliati, MM
Director Chief of Study Program Post Graduate Program Magister of Management
THESIS
Prepared by : Dianawati Suryaningtyas
Nim : 09660023
Had been defended in front of Examining Committee : On August 23th, 2011
EXAMINING COMMITTEE :
Chairman : Dr. Nazaruddin Malik, MSi. _______________________
Secretary : Dra. Uci Yuliati, MM _______________________
Examiner I : Dr. Ahmad Juanda, MM _______________________
DECLARATION
With this letter, I
Name : Dianawati Suryaningtyas Nim : 09660023
Study program : Magister of Management hereby declare that
1. My thesis with the title of : THE ROLES AND COMPETENCIES OF HUMAN RESOURCE PROFESSIONALS WITHIN HUMAN
RESOURCE TRANSFORMATION IN SIDOARJO AND
PASURUAN MANUFACTURING INDUSTRIES
is originally made by myself and without any copy of erudite writings that have been proposed by others for academic purposes or opinions that have been published, partially as well as entirely, except the citations with the sources and references mentioned.
2. If there is a PLAGIATION in this thesis, I am ready for CANCELLATION of this THESIS and MY ACADEMIC TITLE, and to be processed according to the law.
3. This thesis can be a reference which represent FREE RIGHTS NON EXCLUSIVE ROYALTY.
That is the way of my declaration which I make it truly and to be used properly.
Malang, October, 2011
ACKNOWLEDGMENT
Alhamdulillah to Allah SWT with His highness and benediction, overflowing His blessing and easiness, this thesis is finally done at the right time. This thesis is the final exam for attaining master degree of management at the University of Muhammadiyah, Malang.
During the process of research and finalizing this thesis, I have got a great deal support from several persons. At this opportunity, I would like to say my sincere thank to:
1. Dr. Latipun, M.Kes, as the Director of Post Graduate Program
2. Dra. Ratih Juliati, MSi., as Chief of Study Program on Magister of Management
3. Dr. Nazaruddin Malik, MSi., as Academic Supervisor I, for his support on discussion, guidance, and feedback
4. Dra. Uci Yuliati, MM, as Academic Supervisor II, for her support on guidance and feedback
5. My parents, family, and friends for giving me support on facing difficulties during the process.
Lastly, it is to be my expectation that this thesis will be useful for the readers, especially academic communities.
TABLE OF CONTENT
APPROVALS i, ii
ACKNOWLEDGMENT iii
DECLARATION iv
ABSTRACT v,vi
TABLE OF CONTENT vii
LIST OF TABLES xi
LIST OF FIGURES xiii
LIST OF CHARTS xiv
CHAPTER I INTRODUCTION
1.1 Research Background 1 1.2 Statement of Problems 4 1.3 Research Objectives 5
1.4 Research Contributions 6 CHAPTER II LITERATURE REVIEW
2.1 Earlier Studies 7
2.1.1 Human Resource Competencies 10
2.2 Theoretical Framework 18
2.2.1 Human Resource Transformation
2.2.2 Human Resource Roles 24 2.2.3 Meanings of Human Resource Roles, Competencies,
and Human Resource Competencies 31 2.2.3.1 Typology of Human Resource Roles 31 2.2.3.2 Definition of Competencies 32 2.2.3.3 Definition of Human Resource Competencies 36 2.2.4 Relationship between HR Roles and HR Competencies 38
2.3 Conceptual Model 40
2.4 Research Framework 41
2.5 Hypothesis 43
CHAPTER III RESEARCH METHODS
3.1 Research Design 46
3.1.1 Location 46 3.1.2 Types of Research 46 3.1.3 Coverage of Research 47
3.2 Population and Sampling 47
3.2.1 Population 47 3.2.2 Sample and Sampling Technique 48 3.3 Data Collecting Procedures 49 3.3.1 Type and Source of Research Data 49 3.3.2 Data Collection Methods 50
3.4 Research Variables 50
3.4.2 Definition of Conceptual Variable 52 3.4.3 Definition of Operational Variable 53 3.5 Data Measurement Technique 56 3.6 Data Analyzing Techniques 57 3.6.1 Validity and Reliability Test 57 3.6.2 Variable Description 58 3.6.3 Partial Least Square (PLS) 59 3.6.3.1 Linearity Test 60 3.6.3.2 Outer Model (Measurement Model) 60 3.6.3.3 Inner Model (Structural Model) 62 CHAPTER IV RESULTS AND DISCUSSIONS
4.1 Results 63
4.1.1 Location 63 4.1.2 Research Taken Place 63 4.1.3 Respondents’ Characteristics 67 4.1.3.1 Position of Human Resource 67
4.1.3.2 Years of Work 69
4.1.3.3 Education 70
4.2.3.2 Outer Model (Measurement Model) 91 4.2.3.3 Inner Model (Structural Model) 94
4.3 Discussions 98
4.3.1 HR Roles and HR Competencies by HR professionals 98 4.3.2 HR Competencies that influence on HR Roles 102 CHAPTER V CONCLUSION AND IMPLICATION
5.1 Conclusion 105 5.2 Implication 106 REFERENCE OF LITERATURE 107 APPENDIX
APPENDIX A – RESEARCH INSTRUMENTS APPENDIX B – TABULATING RAW DATA
APPENDIX C – PARTIAL LEAST SQUARE (PLS) OUTPUT
LIST OF TABLES
2.1 Table 1 Changing HR Roles and Expectation to HR Professional 9 2.2 Table 2 Definition/Outcome of Human Resource Roles 26 2.3 Table 3 Evolution of HR Roles 30 4.1 Table 4 Position of Human Resource Professionals 68 4.1 Table 5 Years of Work of HR Professionals 69 4.1 Table 6 Education of HR Professionals 71 4.2 Table 7 Validity Test Result 72 4.2 Table 8 Reliability Test Result 73 4.2 Table 9 Mean Score of HR Competencies 74 4.2 Table 10 Frequency Distribution of Business Ally (BA) (%) 76 4.2 Table 11 Frequency Distribution of Strategic Architect (SA) (%) 77 4.2 Table 12 Frequency Distribution of Credible Activist (CA) (%) 78 4.2 Table 13 Frequency Distribution of Operational Executor (OE) (%) 79 4.2 Table 14 Frequency Distribution of Talent Management &
Organization Designer (TMOD) (%) 81 4.2 Table 15 Frequency Distribution of Culture & Change Steward
4.2 Table 20 Frequency Distribution of Administrative Expert (AE) (%) 86 4.2 Table 21 Linearity Test Result for Model 1 88 4.2 Table 22 Linearity Test Result for Model 2 89 4.2 Table 23 Linearity Test Result for Model 3 89 4.2 Table 24 Linearity Test Result for Model 4 90 4.2 Table 25 Outer Loading of Convergent Validity 91 4.2 Table 26 Cross Loading of Discriminat Validity 92
4.2 Table 27 AVE 93
LIST OF FIGURES
2.1 Figure 1 HRCS 2007 Model 12 2.2 Figure 2 Transformation of the HR Function 23 2.2 Figure 3 HR Roles in Creating Competitive Organization 25 2.2 Figure 4 Defining competencies in terms of behaviours,
outputs and results 35
LIST OF CHARTS
REFERENCE OF LITERATURE
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