The roles of HRM practices and HRM outcomes to promote organizational competitiveness through people (case study of Mubadala Petroleum Indonesia)
Strong competition amongst multinational oil and gas subsidiary companies in Indonesia drive organizations to implement strategies that would give them an edge over competitors. In order to guarantee long-term competitiveness, organizations must maintain their most valuable intangible asset; human resource. This study analyzes the roles of human resource management (HRM) practices towards HRM outcomes on perceived employees and competitiveness of an organization. This study aims to assist Mubadala Petroleum Indonesia, the company focused in this study, in formulating strategies to improve the roles of HRM practices in order to maintain its valuable employees as their competitive advantage. Therefore, the main purposes of this research are to analyze the impact of HRM practices towards HRM outcomes as perceived by employees and the relationship between the usage intensity of HRM practices to promote organizational competitiveness through HRM outcomes. This study uses descriptive research and a quantitative approach conducted through the distribution of a questionnaire to 79 permanent employees. Using AMOS and SPSS, the data is analyzed through structural equation modelling (SEM). This study is also supported by semi-structured interviews with the Senior HR Manager and Capability, Learning and Development Coordinator in Mubadala Petroleum Indonesia. The results of this study found that HRM practices (recruitment & selection, training & development, performance appraisal, and compensation & benefits) can positively influence HRM outcome in terms of employee satisfaction, retention and commitment. One HRM practice that has a particularly strong influence towards promoting organizational competitiveness in Mubadala Petroleum Indonesia is compensation and benefits. Therefore, it is necessary for the human resource department of Mubadala Petroleum Indonesia to pay further attention on the roles of HRM practices implementation in order to promote and maintain organizational competitiveness.
B01396 | (wh) | Available |
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