Effect of Internal and External Environment of Human Capital Development (Empirical Study on Manufacturing Company Gopublik in Indonesia)

Abstract

This study uses object manufacturing companies going public in Indonesia, with a sample of 12 companies that tedaftar in Indonesia Stock Exchange. Each sample of 10 companies was taken at the level of managers and staff. This study sought to test and analyze whether the internal and external environment influence the development of human capital through intervening variables planning and human resource management, employee improvement, education and training, and recognition of employee performance and employee satisfaction . Results of this study indicate that first, the external environment has a positive and significant impact on the planning and management of human resources, education and training, and the development of human capital, but has no effect on the increase in employees, employee performance and recognition, and employee satisfaction. Second, the internal environment has a positive and significant impact on the planning and management of human resources, employee improvement, education and training, employee performance and recognition, employee satisfaction, and the development of human capital. Third, planning and human resource management, employee improvement, education and training, employee performance and recognition, employee satisfaction has a positive and significant impact on the development of Human Capital. Testing also proved that the development of human capital such as intellectual capital, emotional capital, social capital, fortitude capital, moral capital and health capital can be increased through the use of the external environment and internal environment, and improve the planning and management of human resources, employee improvement, education and training, performance and employee recognition and employee satisfaction.