Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


The Influence of Human Capital on the Performance of Regional Government Employees in South Sulawesi Province

Author(s): Aini Indrijawati, Kartini, Rahmawati Hs, Hermita Arif

The objective of this research is to examine the influence of human capital comprising of individual capability and motivation, leaderships, the organizational climate, and workgroup effectiveness on the performance of employees. The primary theory employed was resource-based theory by Wernerfelt (1984) & Barney (1991) which suggests that firm resource helps an entity in increasing its operational efficiency and affectivity. Additionally, as supporting theory, this study used human capital by Mayo stating that an entity consists of individuals who are collaborating in achieving certain goals. Mayo (2000) proposes that human capital comprises of five components such as individual capability, individual motivation, leaderships, the organizational climate, and workgroup effectiveness. This study used quantitative method of explanative approach. From the population of officials of the Regional Finance Agency of South Sulawesi Province, a total sample of 30 was drawn using random sampling technique. The primary data obtained through questionnaire using a likert scale which was subsequently tested for its validity and reliability as well as classical assumption and hypothesis test. The result shows that all of human capital, except leadership, has a positive and significant impact on the performance of employees.

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