Effect Of Human Resource Competency On Employee Performance (Study At The Head Office Of PT Perkebunan Nusantara IV (Persero) Medan)

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Introduction

Human Resources Competence (HR) within an organization is a central factor that can determine the success or failure in achieving the organization's goals. In today's fast-paced business environment, having competent employees is crucial for any organization to stay competitive and achieve its objectives. In PT Perkebunan Nusantara IV (Persero) located in Medan, HR competence is a strong foundation for achieving better operational performance. The company has been applying Competency-Based Human Resources Management (CBHRM) in its efforts to improve performance.

However, despite these efforts, the challenges that are often faced are the existence of incompetent employees in their fields, which have an impact on the inability to master their duties and responsibilities, thus hampering performance. In addition, training that is believed to increase competence is not always given evenly to all employees. Therefore, this study aims to explore how much influence on HR competencies (variable X) on employee performance (variable Y) at the Head Office of PTPN IV (Persero).

Literature Review

Human resource management is a critical function that plays a vital role in achieving an organization's goals. Competence is a key aspect of human resource management, and it refers to the ability of employees to perform their jobs effectively. Competence is influenced by various factors, including training, experience, and education. Research has shown that competence is positively related to employee performance, and it is a critical factor in achieving organizational success.

In the context of PT Perkebunan Nusantara IV (Persero), competence is a critical factor in achieving better operational performance. The company has been applying Competency-Based Human Resources Management (CBHRM) in its efforts to improve performance. However, despite these efforts, the challenges that are often faced are the existence of incompetent employees in their fields, which have an impact on the inability to master their duties and responsibilities, thus hampering performance.

Methodology

This study uses a quantitative approach with associative analysis. The analysis methods used include normality analysis, simple linear regression analysis, hypothesis test (T-test), and the analysis of the coefficient of determination (R Square), which is assisted with SPSS version 18.0 software for Windows. The population in this study was 398 employees, and of this amount, 80 samples were taken through proportional random sampling techniques per division, followed by simple random sampling.

Results

The results of this study showed that based on the hypothesis test (T-test), the t value was obtained of 8,566 and the coefficient of determination (R²) of 48.5%. Simple and T-Test linear regression analysis shows that the HR competency variable has a positive influence (0.819) and significant (0,000) on employee performance at the PTPN IV head office (Persero). In other words, each increase in one unit in HR competencies will result in an increase in employee performance by 0.819.

Discussion

The results of this study indicate that HR competence has a significant positive influence on employee performance at the PTPN IV head office (Persero). This finding is consistent with previous research that has shown a positive relationship between competence and employee performance. The results of this study also indicate that the coefficient of determination (R²) is 48.5%, which means that 48.5% of the variation in employee performance can be explained by HR competence.

Conclusion

In conclusion, this study has shown that HR competence has a significant positive influence on employee performance at the PTPN IV head office (Persero). This finding has important implications for HR management in the company. Efforts to provide equitable training and continuous competency improvement must be a priority in the HR management strategy in this company. By investing in HR competence, the company can improve employee performance, which in turn can contribute to the success of the organization as a whole.

Recommendations

Based on the findings of this study, the following recommendations are made:

  1. Invest in HR Competence: The company should invest in HR competence by providing equitable training and continuous competency improvement.
  2. Develop a Competency-Based HR Management System: The company should develop a competency-based HR management system that is aligned with the company's strategic objectives.
  3. Monitor and Evaluate HR Competence: The company should monitor and evaluate HR competence regularly to ensure that employees have the necessary skills and knowledge to perform their jobs effectively.
  4. Provide Opportunities for Professional Development: The company should provide opportunities for professional development to employees to enhance their skills and knowledge.

Limitations

This study has several limitations that should be noted. Firstly, the study was conducted at a single company, and the findings may not be generalizable to other companies. Secondly, the study used a quantitative approach, and the results may not capture the complexity of HR competence and employee performance. Finally, the study did not control for other factors that may influence HR competence and employee performance, such as organizational culture and leadership style.

Future Research Directions

Future research should build on the findings of this study by exploring the following research directions:

  1. Investigating the Relationship between HR Competence and Organizational Performance: Future research should investigate the relationship between HR competence and organizational performance to determine whether HR competence is a critical factor in achieving organizational success.
  2. Developing a Competency-Based HR Management System: Future research should develop a competency-based HR management system that is aligned with the company's strategic objectives.
  3. Investigating the Impact of HR Competence on Employee Engagement: Future research should investigate the impact of HR competence on employee engagement to determine whether HR competence is a critical factor in achieving employee engagement.

Conclusion

In conclusion, this study has shown that HR competence has a significant positive influence on employee performance at the PTPN IV head office (Persero). The findings of this study have important implications for HR management in the company, and they highlight the need for the company to invest in HR competence by providing equitable training and continuous competency improvement.

Q: What is Human Resource Competence (HR Competence)?

A: Human Resource Competence (HR Competence) refers to the ability of employees to perform their jobs effectively. It is influenced by various factors, including training, experience, and education.

Q: Why is HR Competence important for employee performance?

A: HR Competence is important for employee performance because it enables employees to perform their jobs effectively, which in turn contributes to the success of the organization. Research has shown that competence is positively related to employee performance.

Q: What is the relationship between HR Competence and employee performance?

A: The results of this study showed that HR Competence has a significant positive influence on employee performance at the PTPN IV head office (Persero). In other words, each increase in one unit in HR Competence will result in an increase in employee performance by 0.819.

Q: What are the implications of this study for HR management?

A: The findings of this study have important implications for HR management in the company. Efforts to provide equitable training and continuous competency improvement must be a priority in the HR management strategy in this company.

Q: What are the limitations of this study?

A: This study has several limitations that should be noted. Firstly, the study was conducted at a single company, and the findings may not be generalizable to other companies. Secondly, the study used a quantitative approach, and the results may not capture the complexity of HR Competence and employee performance.

Q: What are the future research directions based on this study?

A: Future research should build on the findings of this study by exploring the following research directions:

  1. Investigating the Relationship between HR Competence and Organizational Performance: Future research should investigate the relationship between HR Competence and organizational performance to determine whether HR Competence is a critical factor in achieving organizational success.
  2. Developing a Competency-Based HR Management System: Future research should develop a competency-based HR management system that is aligned with the company's strategic objectives.
  3. Investigating the Impact of HR Competence on Employee Engagement: Future research should investigate the impact of HR Competence on employee engagement to determine whether HR Competence is a critical factor in achieving employee engagement.

Q: What are the recommendations for HR management based on this study?

A: Based on the findings of this study, the following recommendations are made:

  1. Invest in HR Competence: The company should invest in HR Competence by providing equitable training and continuous competency improvement.
  2. Develop a Competency-Based HR Management System: The company should develop a competency-based HR management system that is aligned with the company's strategic objectives.
  3. Monitor and Evaluate HR Competence: The company should monitor and evaluate HR Competence regularly to ensure that employees have the necessary skills and knowledge to perform their jobs effectively.
  4. Provide Opportunities for Professional Development: The company should provide opportunities for professional development to employees to enhance their skills and knowledge.

Q: What are the benefits of investing in HR Competence?

A: Investing in HR Competence can have several benefits, including:

  1. Improved Employee Performance: Investing in HR Competence can lead to improved employee performance, which in turn contributes to the success of the organization.
  2. Increased Employee Engagement: Investing in HR Competence can lead to increased employee engagement, which is critical for achieving organizational success.
  3. Reduced Turnover: Investing in HR Competence can lead to reduced turnover, which can save the company money and time.
  4. Improved Organizational Performance: Investing in HR Competence can lead to improved organizational performance, which is critical for achieving organizational success.