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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), Tomorrow’s HR Management, by Dave Ulrich, Michael R.
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), Developing Competencies Model for Middle
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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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