Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2020 Vol: 19 Issue: 2

The Effect of Non-Formal Education Mediation on Human Resources Development

Arief Tukiman Hendrawijaya, University of Jember

Abstract

Non-formal education is a type of education carried out by institutions other than schools. Non-formal education has a different curriculum with the aim at educating the public in all age groups. This study aims to analyze and examine human resources development mediated by non-formal education. The research used an explanatory research type involving street vendors in Jember as the research samples, as many as 240 respondents. The main research utilized primary data obtained by questionnaire, in addition to observation and documentation. The analytical tool used was path analysis to determine the direct effect and indirect effect by using SEM method. The results found that type of work, income levels, condition of family and home living had a significant positive effect on non-formal education; that type of work, income levels, condition of family and home living, family environment and non-formal education have a significant positive effect on human resource development; and that non-formal education was able to mediate the effect of type of work, income levels, condition of family and home living on human resources development. The variables of type of work, income level, condition of family and home living directly have a positive and significant effect on non-formal education and human resource development.

Keywords

Type of Work, Income Levels, Condition of Family, Home Living, Non-Formal Education, Human Resources Development.

Introduction

Non-formal education is held in educational institutions, while education non formal is carried out in another place whose main function is not as places of education such as mosques, factories, hospitals, fields, institutions correctional facilities, military barracks and others (Syahid, 2016). Non-formal education must be carried out systematically by considering aspects of planning, implementation, and evaluation (Widodo, 2018). Non-formal education is a mechanism that provides opportunities for everyone to enrich science and technology through learning lifetime (Adawiyah & Sulfasyah, 2016).

Human resources are a very central factor in an organization, whatever its forms and goals. An organization is established on various visions for human interests. The importance of human resources in an organization requires each organization to get qualified and productive employees to run the organization. According to Dessller (2010), human resource management strategy connects human resource management with strategic roles and goals in order to improve business performance and develop organizational culture and to encourage innovation and flexibility. Thus, the leader in an organization must link the application of human resource management with organization strategy to improve performance and develop an organizational culture that will support the application of innovation and flexibility.

Human resources are considered as one of the most important factors that play a major role in maintaining organizational sustainability, credibility, and public trust. Human resources as a valuable capital in an organization give more portions on intangible resources than that on the real ones. As stated by Becker et al. (2001), investment in human resources aims to benefit the organization in the long or short term. Through the skills and abilities possessed, employees will be motivated to continue to learn to build a superior business environment. Human resources are used significantly as a driver of other resources and have a strategic position that contributes to realize the performance of corporate organizations with competitive advantage (Wright et al., 2005).

Human resources development for the community is a process of systematic learning and practice to improve their competence and performance in their current work and prepare themselves for future roles and responsibilities. According to Schuler & Youngblood (1999), human resources development as part of an organization will lead to the involvement of various factors; that is, type of work, income, welfare and family residence. Work is something to do to make a living or a livelihood. People who are busy with activities or daily work will have more time to get information. This relates to one's income level. Thus, it can be said that livelihood can affect community participation in development. This is because work will influence one's free time to get involved in development (Mankiw, 2012).

There are differences in character between formal and non-formal learning methods related to learning innovation (Sichula & Genis, 2019). Self-directed learning is very compatible with the characteristics of non-formal education, however needs to be supported by adequate literature (Kim et al., 2019). Lifelong education needs to be applied especially in developing countries to reduce poverty (Didier, 2018). Non-formal education still cannot be compared with the level of formal education related to the aspects of graduate competence (Agrawal & Agrawal, 2017). Non-formal education must be supported by quality assurance in order to compete with formal education (Onstenk & Duvekot, 2019). Previous studies does not discuss relationship among non-formal education mediation and income levels, condition of family, type of work and home living. This relationship is very important to improve the quality of human resources in the perspective of non-formal education

Human resource development is an interesting subject to study and research. Therefore, based on the above descriptions, it is interesting to study and analyze the influence of type of work, income level, family and home living condition on human resources development both directly or indirectly mediated by non-formal education.

Literature Review and Hypotheses Development

Relationship between Occupation, Income Level, Family and Home Living Condition and Non-Formal Education

Employment is an absolute necessity for future challenges. It will get worse especially due to the increasing intensity of competition, so that the increasingly complex and risky product services must be provided. The scope of competition is no longer local, but regional and even international. Thus, the quality must be improved to face work competition. It has been proved that there is a relationship between qualification of non-formal education programs and graduate competencies as human resources and recommendations for developing the quality of non-formal education programs in the coming years (Komar, 2017).

Income is the amount of income monthly received by a family. The income variable that is often used in various studies is gross household money income (Wolff & Zacharias, 2007), the same as USA statistical agency that uses pretax money income (Meyer & Sullivan, 2011). However, Wolff & Zacharias (2007) themselves use a comprehensive income measure. With a high income, a person will be moved to carry out things that increasingly enhance his value, for example by carrying out a non-formal education.

Malik et al. (2010) point out that there is a relationship between non-formal education in having a positive impact on family conditions (poor, vulnerable and marginalized), especially on women. Location of residence can affect someone in carrying out activities. The remote place to live will be increasingly difficult for someone to get information about programs launched by the government in connection with improving the quality of life. Non-formal education is one of the educational programs outside formal schools. Non-formal education covers all levels of life that are not limited to age, sex, socioeconomic status and previous level of education. The target is to give priority not only to those who have never attended school, dropped out of school, or those who have graduated from school and expect to get a job but also all levels of society without exception including those who already have high levels of education or even permanent employment. In other words, the targets of non-formal education are those who need additional knowledge and skills to improve themselves which leads to the principle of lifelong education.

The hypotheses proposed based on the above descriptions are stated below:

H1: Type of work has a positive effect on non-formal education.

H2: Level of income has a positive effect on non-formal education.

H3: Family condition has a positive effect on non-formal education.

H4: Home living has a positive effect on non-formal education.

Relationship between Occupation, Income Level, Condition of Family, Home Living and Non-Formal Education and Human Resources Development

Work is an activity that produces goods and services for one’s self and others within a certain period of time to get income to meet their daily needs. In addition, activities that are considered as work must be in accordance with the social and cultural values that exist in the community and can be accounted for in the time period determined by the party working. The rewards that will be obtained from a job are adjusted to the responsibility that has been given by the individual. Thus, the greater the responsibility carried by an individual, the greater the income to be obtained. Work can affect the formation of individual behavior, and work experience gained can help him in developing himself (Wolff & Zacharias, 2007).

High community income, if not balanced with human resources development, will lead to low level of achievement of life goals or low level of welfare of the community. Hence, there should be a systematic and well-organized planning carried out by the community and the government to increase community resources. As an effect, this can create reliable and competitive resources that have an impact on changing good thinking patterns for the achievement of ideals and better life goals (Kamakura & Mazzon, 2013). Although investment plays an important role in organizational development, it is acknowledged that the role of human resources in the organization is more important, so that in a superior organization, human resource development is mainly delegated to human resource management (Karsten, 2006).

A home living is a house that is occupied by someone every day. Distance of a home living can be a driving factor because the distance can affect someone in carrying out activities. The further distance someone takes from his place of residence, the more time and energy spent. Therefore, the long distance of a person’s residence will further reduce his desire to develop himself.

Non-formal education is very important to improve the quality of human resources. This is inseparable from the purposes of non-formal education itself; that is, serving citizens to learn so that they can grow and develop as early as possible and throughout their lives in order to improve their dignity and quality of life; fostering citizens to learn to have knowledge, skills and mental attitude needed to develop themselves, work for a living or to continue to a higher level of education and; meeting the learning needs of the community that cannot be met in the path of school education. The hypotheses proposed based on the above descriptions are stated as follows:

H5: Type of work has a positive effect on human resources development.

H6: Level of income has a positive effect on human resources development.

H7: Condition of family has a positive effect on human resources development.

H8: Home living has a positive effect on human resources development.

H9: Non-formal education has a positive effect on human resources development.

Relationship between Type of Work, Income Level, Family and Home Living Condition and Human Resources Development Mediated by Non-Formal Education

Income is one of the benchmarks that indicate people's lives that play a role in improving the quality of life. The tendency is that the higher the level of income of a community, the better the quality of its human resources. Although education does not always guarantee a better livelihood, with a good formal education people will have wider opportunities to develop themselves. One way of self-improvement is by carrying out non-formal education.

Non-formal education is an education channel outside formal education that can be implemented in a structured and leveled manner. Non-formal education includes life skills education, early childhood education, youth education, women's empowerment education, literacy education, vocational education and job training, equality education, and other education aimed at developing community capabilities. The hypotheses proposed based on the above descriptions are set below:

H10: Type of work has a positive effect on human resources development mediated by non-formal education.

H11: Level of income has a positive effect on human resources development mediated by non-formal education.

H12: Condition of family has a positive effect on human resources development mediated by non-formal education.

H13: Home living has a positive effect on human resources development mediated by non-formal education.

Research Methods

The population of this research is the street vendors in Jember City in a total of 600 traders. The inclusion criteria of this study are street vendors in Jember City with a maximum age of 50 years. Maximum respondent age is 50 years because in general this age group is a productive age both at work. The sampling technique used Slovin method. The Slovin formula was used because the population in this study is not yet known for its specific characteristics. Of 600 street vendors in Jember City with a tolerance of 5%, 240 respondents were set as samples. Street vendors are made into populations because they involve workers with low level of education background. The main data in this study used primary data collected by observation and questionnaires. Data were collected by filling out the questionnaire carried out from March to July, 2019. Questions in the questionnaire were used as instruments in the variables type of work, income level, family condition, home living, non-formal education and human resource development validated to obtain relevant data.

The results of the instrument validity test on the variables of income level, family condition, type of wrok, home living, non-formal education and human resource development indicated a correlation coefficient from 0.443 to 0.628 with a significance value between 0,000, thus indicating a significance value of less than α (0.05). This means that all items in each variable of this study are valid. Instrument reliability testing obtained Cronbach's Alpha coefficient values ranging from 0.602-0.653 and greater than 0.60, so the variable instruments in the study are declared reliable (Hair et al., 2010).

Path analysis assisted by AMOS program was used to identify the direct and indirect effects of exogenous variables (type of work, income level, family condition, home living) on endogenous variables (non-formal education and human resource development). According to Baron & Kenny (1986), path analysis is used because it is superior to examine direct and indirect effects with mediating variables (non-formal education).

Results and Discussion

Respondent Data

A sample of 240 respondents consisted of street vendors in Jember City with a maximum age of 50. Data on respondent characteristics include age, sex, education, length of service in selling, and total income. A description of each of these characteristics is presented in Table 1. The general description of respondents shows Table 1 that the majority of research respondents are aged between 25-35 years (65.0%), senior high school leveled (45.83%) and female (53.33%). Most of the research respondents work for 1-5 years (46.67%) and have income ranging from IDR 1,500,000 to IDR 3,000,000 (37.08%).

Table 1 Data on Respondents’ Characteristics
Characteristics Description Distribution
Frequency Percentage (%)
Age < 25 years 21 8.75
  25-35 years 156 65.00
  36-45 years 40 16.67
  > 45 years 23 9.58
Education Unfinished Elementary School
  Completed Elementary School 23 9.58
  Junior High School 103 42.92
  Senior High School 110 45.83
  University 4 1.67
Sex Male 112 46.67
  Female 128 53.33
Length of service in selling < 1 year 55 22.92
  1-5 years 112 46.67
  6-10 years 70 29.17
  > 10 years 3 1.25
Income < IDR 1,500,000 71 29.58
  IDR 1,500,001 – 3,000,000 89 37.08
  IDR 3,000,001 – 4,500,000 52 21.67
  > IDR 4,500,000 28 11.67
Total 240 100

Path Analysis

The results of testing the direct effect on the variables of type of work, income level, condition of family, home living, and family environment on non-formal education as well as variables of type of work, income level, condition of family, home living and non-formal education on human resources development are presented in Table 2.

Table 2 Testing Hypothesis of Direct Effect
Hypothesis Regression Model Direct Effect Critical Ratio Sig.
H1 Type of Work (X1) → Non-formal education (Z) 0.403 3.753 0.000 **
H2 Income level (X2) → Non-formal education (Z) 0.163 2.059 0.039 *
H3 Condition of family (X3) → Non-formal education (Z) 0.278 2.546 0.011 *
H4 Home living (X4) → Non-formal education (Z) 0.299 2.409 0.016 *
H5 Type of Work (X1) → Human Resources Development (Y) 0.277 3.132 0.027 *
H6 Income Level (X2) → Human Resources Development (Y) 0.130 2.031 0.002 **
H7 Condition of Family (X3) → Human Resources Development (Y) 0.193 2.170 0.030 *
H8 Home Living (X4) → Human Resources Development (Y) 0.206 2.041 0.041 *
H9 Non-formal education (Z) → Human Resources Development (Y) 0.103 1.992 0.046 *

Based on Table 2, the results of testing the direct effect on all variables have a positive marked coefficient which means that any increase in exogenous variables (type of work, income level, condition of family, and home living) will be followed by an increase in endogenous variables (non-formal education and human resources development). The results of testing the effect of mediation (indirect) of non-formal education on type of work, income level, condition of family and home living on human resources development are presented in Table 3.

Table 3 Hypothesis Testing of Indirect Effect
Hypothesis Regression Model Indirect Effect Critical Ratio Sig.
H10 Type of Work (X1) → Non-formal education (Z) → Human Resources Development (Y) 0.042 3.422 0.001 **
H11 Income level (X2) → Non-formal education (Z) → Human Resources Development (Y) 0.017 1.992 0.049 *
H12 Condition of family (X3) → Non-formal education (Z) → Human Resources Development (Y) 0.029 2.427 0.017 *
H13 Home living (X4) → Non-formal education (Z) → Human Resources Development (Y) 0.031 2.304 0.023 *

The results of hypothesis testing on the path of indirect effect (Table 3) show that all indirect pathways have a very significant effect, which means that non-formal education is able to mediate the effect of type of work, income level, family condition, home living and family environment on human resources development. The recapitulation of the results of testing the direct effect, indirect effect and the total effect of exogenous variables (type of work, income level, condition of family and home living) on endogenous variables (non-formal education and human resources development) is presented in Table 4.

Table 4 Direct, Indirect and Total Effects
Regression Model Direct Effect Indirect Effect Total Effect
Type of work (X1) → Human Resources Development (Y) 0.277 0.042 0.319
Income Level (X2) → Human Resources Development (Y) 0.130 0.017 0.147
Family condition (X3) → Human Resources Development (Y) 0.193 0.029 0.221
Home living (X4) → Human Resources Development (Y) 0.206 0.031 0.237

Based on the table, each total effect of the independent variable is type of work by 31.9%, income level by 14.7%, family condition by 22.1% and home living by 23.7%. Type of work is one of the most influential factors in reflecting the quality of human resources because it is related to competence. In general, the results of path analysis testing are presented in Figure 1.

Figure 1 Path Coefficient of Direct and Indirect Effect

Based on Figure 1, type of work, level of income, condition of family, home living has a positive and significant effect on non-formal education and human resources development. The indicators in non-formal education can increase the development of human resources. Therefore, non-formal education is essential in improving the quality of human resources.

Discussion

Type of work has a positive and significant effect on non-formal education. Essentially, work is human nature. Work is one component that determines happiness in adult humans because when an individual has reached the stage of maturity, the status that will be inherent in him greatly depends on type of work he has. People who have jobs will be considered to have a higher potential than those who are unemployed even though sometimes the work they have does not generate income that can meet all their daily needs.

The level of income has a positive and significant effect on non-formal education. This means that the higher level of income will make someone more interested in carrying out non-formal education. With sufficient income, a person will be more independent to carry out things that can increase his knowledge, including by carrying out non-formal education.

The test results show that the condition of family has a positive and significant effect on non-formal education which means that the condition of family is able to increase one's desire to carry out non-formal education. The condition or position of family is a state that is regulated socially and assigns a person to a certain position in the structure of society. The situation in the family greatly affects the fulfillment of family needs in achieving a prosperous standard of living and achieving maximum health. The condition of family has a major role in non-formal education. It has been identified as a certain group that is relevant to the implementation of non-formal education. Shiror (1995) argues that the need for non-formal education arises because of limited financial resources; in the context of rapid population growth where there is a perceived need to provide education for everyone to enhance human development. Non-formal education gains popularity because of its low costs and nature that can be tailored to the needs and requirements of its clients.

Home living has a positive and significant effect on non-formal education which means that the indicators of home living can increase the effect of the implementation of non-formal education. Location of home living can affect someone in carrying out activities. The remote place of living will make someone find it increasingly difficult to get information about the programs launched by the government in connection with improving the quality of life. Non-formal education is one of the educational programs outside formal schools. Non-formal education includes all levels of life that are not limited to age, sex, socioeconomic status and previous level of education.

The findings above emphasize that aspects of work type, level of income, home living, and family conditions reflect a significant influence from non-formal education. The findings emphasize aspects of human needs and environment, and differ from the results of previous studies as follows, Kerdnoonwong (2016) stated that the role of non-formal education depends on the characteristics of the country. Non-formal education can contribute to modifying the learning methods used in formal education (White & Lorenzi, 2016). Non formal education has a crucial role in the future (Varanda Marques & de Freitas, 2016). Non-formal education is better than formal education in terms of self-development aspects (Ivanova, 2016).

This study found that type of work has a positive and significant effect on human resources development. Work in the broadest sense is the main activity carried out by humans, and in the narrow sense the term work is used for a task/work that makes money for someone. Job status is a type of position of someone in doing work in a business unit or activity. By increasing the status of work, he will be increasingly motivated to develop himself, so that the resources within a person will increase.

The level of income has a positive and significant effect on human resources development. This means that a high level of income will ripen someone to further develop him. This is in line with the findings of Ghazanfar et al. (2011) that revenue in organizations is currently a major consideration in human resources development and how it is allocated. It sends a message to employees about what is believed to be important by the organization. For business people, compensation usually represents a sizable proportion of operating costs. Many entrepreneurs see this only as a cost, but they fail to consider the strategic benefits of a well-considered remuneration package and benefit.

Human resources development is also affected by family condition. It is usually identified with the socioeconomic condition which is an external factor that includes the level of education, position in the community and wealth owned. Someone who has a higher social status tends to have broader insight is more capable of achieving higher income and interacting with his social environment compared to someone who has a low socioeconomic status. With this advantage, it is normal that socioeconomic status groups have the intensity of economic education in different family conditions. It means that the higher the level of socioeconomic status, the higher the intensity of economic education in the family and this increases the quality of human resources to obtain greater income (Jorgensen & Margareth, 2010).

Housing has a positive and significant effect on human resources development, which means that living conditions can improve human resource development. A home living is a house that is occupied by someone every day. Distance of residence can be a driving factor as it can affects someone in carrying out activities. The further distance someone takes from one's place of residence, the more time and energy spent. Therefore, the distance of a person’s residence will further reduce one's desire to develop him.

Non-formal education has a significant positive effect on human resources development. This can be interpreted that the indicators in non-formal education can increase the development of human resources. Non-formal education is essential in improving the quality of human resources. This is inseparable from the purposes of non-formal education itself; that is, serve citizens to learn so that they can grow and develop as early as possible and throughout their lives in order to improve their dignity and quality of life; fostering citizens to learn to have knowledge, skills and mental attitude needed to develop themselves, work for a living or continue to a higher level and/or level of education and; meeting the learning needs of the community that cannot be met in the path of school education.

Type of work affects the development of human resources mediated by non-formal education. This means that non-formal education variables are able to mediate the effect of type of work on human resources development. The direct effect of type of work on human resource development is 27.7%, while the indirect effect of type of work on human resources development mediated by non-formal education is 4.2%. This indicates that the indirect effect is smaller than the direct effect of type of work on human resources development without going through non-formal education. If viewed from the significance value of 0.001 which is smaller than α (0.05), it means that non-formal education is able to mediate the effect of types of work on human resources development.

Level of income affects human resources development mediated by non-formal education. This means that non-formal education variables are able to mediate the effect of income levels on human resources development. The direct effect of level of income on human resources development is 13.0%, while the indirect effect of level of income on human resources development is mediated by non-formal education by 1.7%. This shows that the indirect effect (mediated by non-formal education) is smaller than the direct effect of the level of income on human resources development. If viewed from the significance value of 0.049 which is smaller than α (0.05), it means that non-formal education is able to mediate the effect of income level on human resources development.

The condition of family affects human resources development mediated by non-formal education. This means that non-formal education variables are able to mediate the effect of family condition on human resources development. The direct effect of the condition of family on human resources development is 19.3%, while the indirect effect of condition of family on human resources development mediated by non-formal education is 2.9%. This shows that the indirect effect is smaller than the direct effect of family condition on human resources development. If viewed from the significance value of 0.017 which is smaller than α (0.05), it means that non-formal education is able to mediate the effect of the family condition on human resources development.

Home living affects human resources development mediated by non-formal education. This means that non-formal education variables are able to mediate the effect of home living on human resources development or indicators of home living are able to enhance human resources development supported by non-formal education. The direct effect of home living on human resources development is 20.6%, while the indirect effect of home living on human resources development mediated by non-formal education is 3.1%. This shows that the indirect effect is less than the direct effect of home living on human resources development. If viewed from the significance value of 0.023 which is smaller than α (0.05), it means that non-formal education is able to mediate the effect of home living on human resources development. This result is seen from the significance value of 0.000 which is smaller than α (0.05). This study can be used to analyse government and community strategies to improve the quality of human resources by considering aspects of work type, conditions of familiy, home living, and income level.

Conclusion

The study was conducted on 240 street vendors in Jember City to study and analyze the factors that affect human resources development both directly and indirectly. The results showed that the variables of type of work, income level and condition of family and home living directly have a positive and significant effect on non-formal education and human resource development. Meanwhile, non-formal education is indirectly able to mediate the effect of variables of type of work, income level, family condition and home living on human resources development in Jember City.

The limitation in this study is that this study was conducted on street vendors with various commodities, so that they have not specialized in just one commodity. Future research can be carried out by exploring broader research variables such as selling experience, capital or expertise. In addition, research can also be conducted on sellers who specialize in selling just one commodity.

Acknowledgement

Thanks to the Dean of the Faculty of Teacher Training and Education at the University of Jember for supporting this research. This publication will be funded by my self.

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