Implementation of enterprise human resources management standards to achieve supply chain excellence in fertilizer companies in Indonesia

Abstract

Employees have collective skills, abilities and experience that contribute to the interests of the company where they work, and can contribute to the success of supply chain and is a resource that is an asset in achieving supply chain excellence. To examine this relationship, this study investigates the role of human resources management (HRM) on the supply chain management of fertilizer companies in Indonesia, which is focused on the distribution and logistics of fertilizer from producer to their network and consumers. This study took samples from two fertilizer companies in East Java, structural equation modeling (SEM) analysis was carried out with the Smart PLS. 18 (Partial Least Square) program, and shows the value of t = 348.825 with p = 0.000 (p < 0.000) which means there is a significant effect of implementing enterprise human resources management (HRM) standards on company supply chain excellence and represents indicators of management strategy, cost leadership, focus on productivity, logistics, distributions, operational effectiveness, differentiation, and cooperation with companies or other institutions that support each other. The results of this study have provided an overview of the application of enterprise capable of supporting human resource management. Enterprise standards in both fertilizer companies are applied regularly, starting from checking the completeness of the employee database, including contact information, details of salary, compensation and benefits; attendance, employee performance, career planning, work relations, socialization, and informal communication so that the company would be able to adapt and be more flexible towards every need in the present and in the future.