THE ROLES AND COMPETENCIES OF HUMAN RESOURCE PROFESSIONALS WITHIN HUMAN RESOURCE TRANSFORMATION IN SIDOARJO AND PASURUAN MANUFACTURING INDUSTRIES

1

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.
There are many HR competencies issued by researchers. The most cited
and used by many companies in transforming human resource into competitive

2

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 highachieving 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.
Although many researchers have highlighted the importance of the HR
Roles and HR Competencies (Selmer & Chiu, 2004: Ramlall, 2006) but most
researchs have yet to prove any relationship of the two variables (Long & Ismail,
2008). Only a recent study by Pietersen & Engelbrecht (2005: Long & Ismail,
2008) which was carried out in South Africa showed that there was a positive
relationship between business related competencies and strategic partner roles of
the HR executives. The two variables appeared to be interrelated as both were
very important factors that enable HR executive to contribute to their
organization’s success.

3

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, HR Technology.
A well-known concept of Ulrich’s HR Roles in organization, known as
strategic partner, change agent, employee champion, and administrative expert
has been implemented by many big companies in Indonesia. Moreover, according
to Soetjipto, that Management Institution of Economic Faculty from Indonesia
University together with SWA magazine have conducted HR Excellence Award
Competition every year since 2006. And around 300 big companies attended the
competition in 2007. Whereas, there were still many companies which have
successfully implemented HR transformation refused to attend the competition
because of lack of confidence to be compared to other big companies. The
Management Institution and SWA magazine use Ulrich’s HR Roles as basing
assessment to the successful of companies (Soetjipto, 2008). This is an evidence
of empirical study that many big companies have implemented HR transformation

4


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
With growing emphasis being placed on HR competencies as a means to

increase human resource effectiveness, this research seeks to determine if there
are

significant

influences

between


key

competencies

and

particular

responsibilities of HR Roles. Refers to a research study carried out by Long and
Ismail (2008) in regard to their findings of HR Competencies on Business Related
Competencies and HR Professional Competencies mentioned that there were
lacking in Business Related Human Resource Competencies and also their
capacities to execute important roles as strategic partner and agent for change in

5

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:


To identify and describe the extent of executing HR Roles by HR
professionals and HR Competencies that currently they possessed to
perform those roles for the success of their business.


6



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
On practical contribution is to deliver contribution of information on the
implementation of human resource transformation for sustainable
competitive advantage of organization.

7

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
UNIVERSITY OF MUHAMMADIYAH MALANG
July 2011

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
Post Graduate Program

Chief of Study Program
Magister of Management

Dr. Latipun, M Kes

Dra. Ratih Juliati, MSi

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

_______________________

Examiner II

: Drs. Eko Handayanto, 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

RESOURCE

PROFESSIONALS

TRANSFORMATION

IN

WITHIN

HUMAN

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

Dianawati Suryaningtyas

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.
Malang, October 2011
The Author

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

2.2

Earlier Studies

7

2.1.1 Human Resource Competencies

10

Theoretical Framework

18

2.2.1 Human Resource Transformation
2.2.1.1 Definition of Transformation

18

2.2.1.2 Traditional HR Function

19

2.2.1.3 New HR Function

20

2.2.1.4 Understanding HR Transformation

21

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
3.4.1 Identification of Variables

50
51

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 Data Analyzing Results

72

4.2.1 Validity and Reliability Test

72

4.2.2 Variable Description

73

4.2.3 Partial Least Square (PLS)

88

4.2.3.1 Linearity Test

88

4.3

4.2.3.2 Outer Model (Measurement Model)

91

4.2.3.3 Inner Model (Structural Model)

94

Discussions
4.3.1 HR Roles and HR Competencies by HR professionals
4.3.2 HR Competencies that influence on HR Roles

98
98
102

CHAPTER V CONCLUSION AND IMPLICATION
5.1 Conclusion

105

5.2 Implication

106

REFERENCE OF LITERATURE
APPENDIX
APPENDIX A – RESEARCH INSTRUMENTS
APPENDIX B – TABULATING RAW DATA
APPENDIX C – PARTIAL LEAST SQUARE (PLS) OUTPUT

107

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) (%)
4.2

Table 15

81

Frequency Distribution of Culture & Change Steward

(CCS) (%)

82

4.2

Table 16

Mean Score of HR Roles

83

4.2

Table 17

Frequency Distribution of Strategic Partner (SP) (%)

84

4.2

Table 18

Frequency Distribution of Change Agent (CHA) (%)

85

4.2

Table 19

Frequency Distribution of Employee Champion (EC) (%)

86

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

4.2

Table 28

Composite Reliability and Cronbach’s Alpha

94

4.2

Table 29

R – Square

95

4.2

Table 30

Bootstrapping Result : Path Coefficient

96

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

2.2

Figure 5

Conceptual Model

41

2.3

Figure 6

Research Framework

42

4.2

Figure 7

Path Diagram Construct

63

LIST OF CHARTS

4.1

Chart 1

Respondent’s Characteristic on HR Position

68

4.2

Chart 2

Respondent’s Characteristic on Years of Work

70

4.3

Chart 3

Respondent’s Characteristic on Education

71

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