Abstract

ABSTRACT This research aims to investigate if the competence of human resources affect the organization's performance of Sekolah Tinggi Ilmu Ekonomi (Economics-based College or STIE), if organizational learning affect organizational performance of STIE, if competence of human resources through innovation culture influence organizational performance of STIE, and if learning organization through organizational competence STIE affect the organization's performance. Descriptive analysis was used to describe and interpret the characteristics of respondents and each of the variables used. Inferential statistical analysis was used to examine the hypothesis. Inferential statistical method that was used to analyze the data of this research was Structural Equation Model (SEM) by using Partial Least Square (PLS). The results of the hypothesis experiment are as follows: that competence of human resources has a positive effect and significant on organizational performance; that organizational learning has a positive effect and significant on organizational performance; that competence of human resources through a culture of innovation has a positive effect and significant on organizational performance; and that learning organization through organizational competence has a positive effect and significant on organizational performance. Based on these results, it indicates that the fourth hypothesis (H4) was rejected.

Highlights

  • This research aims to investigate if the competence of human resources affect the organization's performance of Sekolah Tinggi Ilmu Ekonomi (Economics-based College or STIE), if organizational learning affect organizational performance of STIE, if competence of human resources through innovation culture influence organizational performance of STIE, and if learning organization through organizational competence STIE affect the organization's performance

  • The improvement of the competing skills is the main focus of this strategy regarding the Human Development Index (HDI) of Indonesia is poor, which results from the research done by the Political and Economical Risk Consultancy (PERC) in 2012 showed that the present quality of the education in this country is low

  • The result of this study showed that the competencies of human resource had significant influence to the performance of the organization including the state-owned universities and private-owned universities as well

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Summary

Introduction

This research aims to investigate if the competence of human resources affect the organization's performance of Sekolah Tinggi Ilmu Ekonomi (Economics-based College or STIE), if organizational learning affect organizational performance of STIE, if competence of human resources through innovation culture influence organizational performance of STIE, and if learning organization through organizational competence STIE affect the organization's performance. The following explanation points out some research gaps related to the studies on the competence of human resources, orientation of learning, working performance and empirical phenomena of higher education which showed various results. The variety of the previous findings were caused by different variables, objects, and indicators This difference is called research gap as stated by Ferdinand (2006) including; Firstly, a study on the relationship between the competence of human resources and the performance of the organization in higher education was conducted by Stiles and Kulvisaechana (2004). The result of this study showed that the competencies of human resource had significant influence to the performance of the organization including the state-owned universities and private-owned universities as well. The result of this study showed that there was no significant influence of human resources’ competencies to the performance of the organizations, it was found that the competence of the human resources in relation to the innovations could improve the performance of the organization, which means that innovation is one of the determining point of the organizational performance (Lopez et al, 2005)

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