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

Research Article: 2021 Vol: 20 Issue: 3

Tree Model in Human Resource Management Based on Personality, Competence and Spirituality to Improve Organizational Performance

Amir Tengku Ramly, Universitas Ibn Khaldun Bogor

Hendri Tanjung, Universitas Ibn Khaldun Bogor

Abstract

Human Resource Management has a significant influence on the success and development of a company. This research analyses the most important variable in human resources that influences one's success and organizational performance. This research uses literature review methodology by examining journals on the influence of human personality, competency, and spirituality on organizational performance over the past ten years. The scientific analysis uses the concept of learning and developing in the Pumping HR Model.

The results show that personality, competency, and spirituality at work are critical and directly affect organizational performance improvement. According to the Pumping HR model, the three variables can be structured like a complete tree by analogy with the roots of stems and fruits or leaves, which describes the variables that must be prioritized hierarchically. Based on this sequence, the root analogy is spirituality, while the stem analogy is competence, and the fruit or leaf analogy is performance. Personality is in a position between the root and stem, which is known as part of the preconscious in Iceberg's theory.

Keywords

HRM Tree Model, Pumping-HR Model, Performance, Personality, Competency, Spirituality.

Introduction

As an organizational subsystem, HR is a valuable asset for the organization (Sobirin, 2014). Its existence makes all inputs run towards achieving organizational goals. Human resources who can play an optimal role in the organization are qualified human resources with morale, competence, and an attitude of love for their work. With good management, these human resources produce excellent organizational performance.

Human resource management (HR management) is at the heart of organizational performance. In the digital era, the position of HR for a company has begun to transform from a “production factor” paradigm to a company “asset” paradigm. As a company asset, HR management also needs to change from Skill Management Approach to personal and professional empowerment (Talent Management Approach). Talent management is a new approach to HR management, emphasizing passion, personality, competency, spirit, and others, all of which are group under the term “talent pool”.

This transformation is essential to changing the worldview of HR and organizational performance. Without a process of transformation and paradigm shift of human resources from production factors to assets, it will result in discrimination in human resources, organizational politics, employee turnover, and organizational performance. According to Allam (2019a) in the HRM world, discriminatory practices are still found. HR discrimination is still found in the implementation of (1) training & development, (2) job analysis, (3) recruitment & selection, (4) intention to stay in the company, (5) compensation & benefits, (6) co-workers, ( 7) relationship, (8) performance appraisal, (9) working conditions, (10) communication, and (11) occupational safety & health, but in a marginal form. Apart from discrimination that hinders organizational performance, organizational politics also occurs. According to Asad et al. (2020) organizational politics is a major problem for some organizations which results in demotivation or even resignation of competent employees. The results of research by Asad et al. (2020) found that organizational politics in companies is caused by (1) the inability of individuals to work, (2) greed for money, (3) fame, (4) nepotism of extrovert power behavior, (5) interest in management finance, (6) the nature of the organization, and (6) change in management.

Prevent discrimination and organizational politics in the company. The process of transforming the HRM paradigm from production factors to company assets is very important. Companies must eliminate discriminatory HRM practices so that employees are more enthusiastic at work and able to play an important role in the organizational development process. Thus it is expected that organizational performance will be achieved optimally and employees feel happy and satisfied with their work. Employee happiness and satisfaction at work is an important part of the quality of work life (QWL). It is a common fact that quality of work life (QWL) is considered a philosophy of making people more effective at work by understanding their psychological well-being and involvement or attachments (Allam & Shaik, 2020).

The results of Allam's (2019b) research regarding QWL can be concluded that some of the most prominent things from the results of this study are: (1) all aspects of work-life balance have a positive relationship with each other except teamwork, (2) marriage was highly valued in terms of time management and teamwork which showed statistically significant differences with their peers, and (3) social need for a work-life balance component emerged as one of the strongest pre-factors.

Apart from discrimination and organizational politics, every company in the world also has an employee turnover problem. The results of a literature study on research in the world show that companies around the world face turnover problems (Asad, 2020). Employee turnover not only causes waste of costs but also reduces organizational performance. In the literature it is found that research on the issue of employee turnover intentions explicitly focuses on human resource practices. However, the role of human resource practices in developing organizational commitment and its effect on employee turnover intentions has not received much attention (Asad, 2020). One of the human resource practices in developing commitment, reducing turnover and improving organizational performance is the talent management approach (Mohammed, 2015).

HR management practices with a talent management approach require various supports to find and maintain a reliable HR (talent pool) as an organizational asset. Reliable human resources are significant because it determines the high performance of the organization. Many studies show that the influence of variables from HR management such as personality, competence and spirituality at work has a significant effect on organizational performance. From the results of this scientific study, what is interesting for the author is how to place these three variables when analogous to a tree's structure?

This paper describes the effectiveness of HR management with personality, competency and spirituality variables based on the tree model structure. This structure is important for the organization to continuously improve reliable HR management (talent pool) that focuses on increasing the organization's high performance. The results of Ramly's research (2019) show the effect of the pumping principle as the root of HR management on success up to 82.4 percent, pumping competency as a stem that grows in HR management 78.8 percent and pumping action as a fruit/leaf that produces continuous results in HR management up to 81, 8 percent.

Literature Review

Human Resource & Organization Performance

Human resource management is an essential factor in an organization, and HR is a strategic factor in organizational leadership. Human resources are significant to give direction and guidance from human resource management to produce optimal performance. Employee performance is an individual matter depending on the level of qualification that is different from each individual, reflecting the quantity and quality of something produced or done by the worker.

Human resource development defined as an organization's effort to adapt its human resources to competitive global challenges, accelerated technological advances, and social change (Noe et al., 2003). Human resources development is part of overall Human resources management. Human resources have a direct and or indirect effect on organizational performance. This conclusion is in line with the results of research conducted by Camps & & Luna‐Arocas (2012); Çalişkan (2010); Ramly (2019) and Armstrong (2006). How can human resource management practices effectively align organizational, group and individual factors with corporate strategy?

The essence of human resource management is how to manage HR performance (Sobirin, 2014). Managing humans in an organizational context means managing people to produce an optimal performance for the organization. According to Buller & McEvoy (2012), it is necessary to redefine the line of view as the alignment of organizational capabilities and culture, group competencies and norms, and individual KSA, motivation and opportunities for each other and with corporate strategy. Based on the research results, we propose that alignment, which contributes to the creation of human and social capital, is indispensable for achieving and maintaining superior performance (Buller & McEvoy, 2012).

Personality variables and Organizational Performance

Personality is an important variable in HR management because it is one of the determinants of organizational performance. Personality is often defined as personality. But what personality is not easy to define. Personality itself is unique to every human being. According to in Akgunduz et al. (2018) Personality is a characteristic of people who are not limited by situational forces, initiating meaningful changes in their environment and showing initiative. This is called proactive personality, which is a personality that produces strong intrinsic motivation and is defined as taking the initiative to achieve the desired goal, positively correlated with salary increases in Akgunduz et al. (2018).

In the course of organizational behaviour and leadership, personality gets its position as an inseparable part of the behaviour and character of an individual, organization and leadership. Ramly & Suherbi (2020) defines Personality is the way an individual reacts and interacts with other individuals. This interaction involves elements of behaviour and related individual characters. Something that appears in individual employees and leadership in organizational behaviour, but something hidden that causes mobility, proactive, defensive or aggressive in individual employees or and leadership describes the character of the organization. Personality is about how individuals react, perceive, think, perceive, attitudes or behaviour as a person towards their environment. Personality can be defined as a dynamic or set of characteristics possessed by a person that affects cognition, motivation, and behaviour in various situations (Youshan & Hasan, 2015).

Robbins & Judge (2015) suggests that personality is the dynamic organization within the individual of those psychophysical systems that determine his unique adjustment to his environment. Personality is defined as the total of ways in which an individual react and interacts with others, the measurable traits a person exhibits. Personality is a dynamic organization of an individual's psychophysical system that determines how the individual adapts to his environment.

Personality has been scientifically proven to have a direct and indirect effect on organizational performance. This is in line with the results of research conducted by Sikalieh & Mkoji (2012); Youshan & Hasan (2015); Akgunduz et al. (2018); Ramly & Suherbi (2020); Hartati (2020).

Variable Competence and Organizational Performance

Competence is a fundamental factor that exists in someone who has more abilities and makes him different from other people with average abilities. Competence is a person's ability or capacity to perform various tasks in a job, where this ability is determined by intellectual and physical factors (Robbins & Coulter, 2018). Job competence is the workability of each individual which includes aspects of knowledge, skills and work attitudes under established standards (Undang-Undang Nomor 13 Tahun 2003).

Competence is a basic characteristic of a person which consists of knowledge, skills, and attitudes related to one's performance (Martini et al., 2018). From the opinions of experts and research results, it can be said that competence consists of task skills, task management skills, contingency management skills, job role skills, and transfer skills. Other researchers state that competence consists of dimensions of knowledge, abilities, legal/ethical requirements, and self-awareness bias. According to Francis (2015); Rahardjo (2014); Sriekaningsih & Setyadi (2015); and the Indonesian National Competency Standards (SKKNI, 2015) which consists of Knowledge, Ability, and Work Attitudes. Previous researchers have examined many competencies, including Ansori & Ali (2017); Ridwan et al. (2020).

According to Hitt et al. (2011), competitive advantage and the differences they create in company performance are often closely related to the resources that companies have and how they manage them. Core competencies are abilities that serve as a source of competitive advantage for the company over its rivals. Core competencies distinguish a competitive company and reflect its personality. Core competencies emerge over time through the organization's process of gathering and learning how to use different resources and abilities. As the capacity to take action, core competencies are the “crown jewels of a company”, the activities of a company that performs well especially when compared to competitors and through its core competencies a company adds unique value to goods or services over a long time (Hitt et al., 2011).

Prahalad & Hamel (2003) in Nugroho et al. (2018) companies are like a tree that grows from its roots (Figure 1). The core product is nourished by competence and gives rise to business units, the fruit of which is the final product. Therefore, companies need to know what competencies they have now and continue to improve their competencies so that they can continue to grow and develop. The competency approach is very suitable to be applied in higher education institutions because, in addition to its management philosophy concerning individual growth and empowerment, the cbp (competency-based pay) system also motivates academic staff to continue to develop knowledge to achieve certain levels of competence

Figure 1 Competence as the Root of Competitive Advantage

Variable Spirituality and Organizational Performance

According to Arshad et al. (2020), the spirituality variable (SQ) in organizational performance is very important, which is currently found to be a missing part of the employee development process. The study of the vital influence of SQ on the bottom line of the organization proves that human resources can make a very important contribution to the sustainability of an organization. Therefore, emerging ideas about human SQ and its various dimensions should be included in HRD initiatives to achieve a holistic mechanism (Arshad et al., 2020).

Experience shows that spiritual variables are closely related to organizational performance. Sholah Athiyyah's business proves this. Sholah and his friends built their business from a small village called Tahfana Al Asyrof, mid gamir, aqoiyah province of Egypt. After graduating with a bachelor's degree in agriculture, Sholah and his friends planned to build a livestock business. For that, they collect business capital with all their might. Some sold their land, some sold their wives' jewellery and some borrowed from other sources.

There are 9 people in total and want to fulfil it to be 10 people. Sholah decided that the 10th party who would be invited to partner was Allah SWT with the agreement that Allah would take care and develop his business. For this 10th party, a share of 10 percent of the profits is given. To strengthen this commitment, a business cooperation agreement is written before a notary. After one season of business, his poultry farming business grew rapidly. The partners have not predicted this increase. With the increase in profits, the partners, amounting to 9 people, increase the profit share for the 10th partner to 20 percent in the second season. After the second season ended, his business profits increased again, so it was agreed that the profit portion for the 10th party was 30 percent. And so on from season to season, until it was decided that the portion of the profits for the 10th party was 100 percent. Finally, Sholah became an employee of Allah after previously being a business partner of Allah SWT. The proceeds are used to build a baitulmal that serves to reduce poverty in the area (El Maghrebi, 2019).

HRM Tree Model and Pumping-HR Model

The tree model is a model that comes from the Qur'an, which is the author's term in applying Surah Ibrahim verses 24-25 about the parable of good like a good tree. A good tree consists of strong roots, growing stems and fruit/leaves that are useful and are produced continuously. The model is clearly shown in Figure 2.

Figure 2 Tree Model (QS. 14: 24-25)

According to the interpretation of ibn katsir, this is a parable about the deeds, good words and good deeds of a believer like a palm tree. The good deeds of a believer are promoted to him at all times, at every opportunity, in the morning and evening.

Meanwhile, according to the interpretation of jalalain, for example a good sentence, namely Laa ilaha illallah is like a good tree, namely a date palm. Its roots fall to the earth, and the branches rise to the sky, bearing fruit every moment. Such is the sentence of faith that is embedded in the soul of a believer, then his actions will rise to the sky so that they will be blessed and rewarded every time.

In his interpretation as Shobuni, it is explained that Qs Ibrahim verse 24 talks about the parable of the sentence of faith. Ibn Abbas said, the sentence of faith is Laailaahaillah, and a good tree is a parable of a believer. The tree had roots that fell to the ground and branches that rose to the sky. Such is the faith that is instilled in the heart of a believer, his deeds soar into the sky so that blessings and rewards come to him every moment.

Buya Hamka gives the interpretation of Surat Ibrahim verse 24 in Al Azhar's interpretation as follows: “This beautiful parable is given so that people remember that the tree seed that has been in our souls and minds since we were born into the world, does not wither. Let the household grow rapidly to care for this 'al-hayah' tree in one household is the duty of the father and mother to care for it so that the child must be cared for. This maintenance which in Arabic is called taqwa. wiqayah, maintenance, does not obstruct it from the sun, sunlight is prayer so that the branches of the wood float into the sky. All good deeds, virtue, compassion for others, generous helping hands, etc. are the fruit and this cannot overthrow”.

The tree model is a model developed by the author as a concept of learning, self-development, profession and career called the pumping model. For human resource development, the writer then calls it the Pumping-HR model. The structure of the Pumping-HR Model follows the tree model analogy. Its strong roots in HR management are called the Pumping Principle. The stem that grows in HR management is called Pumping Competency. Useful fruit/leaves that produce continuously, in HR management it is called Pumping Action (Ramly, 2016 & 2019).

The Pumping Model is a learning concept used in training and HR development programs as a learning approach model. The pumping model is the author's intellectual work that has been tested in training programs for 10 years since 2004. The pumping model has received intellectual property rights (IPR) from the Ministry of Law and Human Rights with No Haki: IDM000427876, dated 15 August 2011. Framework, structure, and the components of the pumping model learning concept are as shown below (Figure 3)

Figure 3 The Concept of Learning the HR Pumping Approach Model

According to Ramly (2019) the Pumping Model Framework has 3 main foundations, namely (1) the pumping principle, (2) Pumping Competency and (3) Pumping Action which are sourced from existing theoretical approaches and have been scientifically tested, namely: (1) using the metaphor of complete tree structures consisting of roots, stems and leaves & fruits (QS.14: 24), (2) based on the principles of the milky way model (solar system) which consists of a centre orbit, an orbital point and an orbit line, (3) based on Iceberg's theory which shows 3 human realms, namely the subconscious, pre-conscious and conscious nature, and (4) based on modern theories about human grace, namely the senses, intuition, and heart (Ramly, 2016). Pumping Principle in the metaphor is similar to the root of a good tree. Or in the metaphor of the milky way is the centre of the orbit of the solar system. In the concept of Iceberg theory, it is an unconscious area (the base of an invisible iceberg). In the concept of human intelligence, the pumping principle is a function of the human heart. The pumping principle has four main variables, namely (1) Belief System, (2) Awareness, (3) values, (4) Personality.

Personality is a combination of behaviour with character. The behaviour consists of (1) energy, (2) Self-portrait and (3) learning styles. While the characters consist of (1) the path of success, (2) mindset, and (3) brain hemispheres. Pumping competency in the concept of a good tree (Qs: 14: 24) is the pillar/ stem of human success. In a milky way are the orbital points of the solar system. In Iceberg's theory, pumping competency is the pre-conscious region (the middle region of the iceberg that sometimes appears to sink). In the concept of human intelligence, pumping competency is a function of the human brain/ mind. There are 6 main components/ variables of pumping competency.

Six important components of pumping competency are (1) vision, (2) motivation, (3) leadership, (4) knowledge, (5) management, and (6) training/practice (Ramly, 2019). To support these six components in daily practice, 2 components are needed (pumping supporting), with 6 main variables, namely (a) Personal mastery support, namely (1) mentality, (2) morality, (3) spirituality; and (b) Profession mastery support, namely (4) feeling, (5) intuiting, and (6) thinking. Pumping action in the concept of a good tree is part of the fruit and leaves. In the Milky Way are the orbital lines of the solar system.

In Iceberg's theory, pumping action is a conscious region (the top region of the iceberg that is visible). In the concept of human intelligence, pumping action is a function of the human senses. There are 5 main components/variables of pumping action. The five important components of pumping action are (1) Statement, (2) Personality Change, (3) Self Controlling, (4) Synergy-Collaboration, and (5) Continuous Improvement (Ramly, 2019).

Results and Discussion

The Influence of Personality on Organizational Performance

The results showed the importance of employees (HR) in understanding the personality of themselves and the team at work. The results of the influence test and various statistical analysis tools prove that the effect of personality on organizational performance is very significant. Even the research results of Adnan (2007) states “that personality types and attitudes towards shift work have a significant relationship as well as circadian types and attitudes towards shift work”. The result of the Bivariate Correlation effect test shows that the result of the calculation of the correlation obtained r=-0.228 and the significance=0.001. This means that there is a significant negative relationship (at 99% confidence level) between personality types and attitudes towards shift work. The interpretation is that the more extroverted the respondent's personality is, the more negative his attitude is towards shift work (Adnan, 2007).

An investigative study of 274 hotel employees, published by Akgunduz et al. (2018) states that there is an influence of proactive personality on the meaning of work and creativity of employees in the hotel business. The results of the structural equation modelling (SEM) affect a test to show that proactive personality has a positive effect on the meaning of work and employee creativity. The most important characteristic of a proactive personality is to consider all possible future consequences (Parker & Collins, 2010). In Akgunduz et al. (2018) Proactive personality is positively correlated with salary increases and performance target orientation, strategic proactive behaviour and some proactive work behaviour (Parker & Collins, 2010).

The research results of Ramly & Suherbi (2020) show that there are significant differences in the effect of personality types on employee performance. It is known that the Extrovert = Introverted personality type produces the best average return based on the results of the employee performance system evaluation at the Bogor Agricultural Service. On the other hand, the extrovert personality type gives the lowest average performance of Civil Servants in Dinas Pertanian Bogor. The results of the LSD (Least Significant Difference) test on employee personality types are as shown in Table 1.

Table 1 LSD Test Results on Personality Types
Personality Type Average
Extrovert 4.125
Extrovert+Introvert 4.268
Introvert+Extrovert 4.234
Extrovert=Introvert 4.330

The results of the LSD test can be concluded that the Personality Type that produces the best performance is Extrovert = Introvert (4,330). The results of the path analysis conducted by Kawiana et al. (2018) show that the standardized regression weight coefficient value is 0.505. The odds are 0.045 is lower than 0.05. This shows that personality has a positive and significant influence on employee performance. Each increase in the personality score of one set of scores will lead to an increase in employee performance by 0.505 unit scores. The results found a direct relationship consistent with the sixth hypothesis. It is stated that the better the personality, the higher the employee's performance. The results of this study are consistent with research conducted by Kawiana et al. (2018).

Widyasari (2007) found that personality has a positive and positive effect on employee performance. This conclusion applies to employees who have a higher level of education. That's diplomas and bachelors working in livestock companies. Another study was conducted by Gellatly and Irving (2001) entitled Personality, Autonomy, and Manager's Contextual Performance. The aim was to examine the relationship between personality (extroversion, friendliness, and caution), job autonomy, and contextual performance, and the moderating effect of work autonomy on personality and performance relationships. The research data is derived from a sample of the public sector. The analytical method used in moderated regression analysis. The conclusion of the study includes extroversion having a positive effect on contextual performance, friendliness has a positive effect on contextual performance, awareness harms contextual performance, work autonomy has a positive effect on contextual performance.

The Effect of Competence on Organizational Performance

Competence has become his god of success among professionals. The Mc Clelland CBHRM theory has become very popular among HR scientists and practitioners. How does competence affect organizational performance? This can be answered by the following research results.

The results of the research prove that competence and performance are in the category of being on the way to good. Meanwhile, the results of verification research prove that competence has a significant effect both partially and simultaneously on employee performance (Hartati, 2020). The competency variable shows an average value of 82.0345 with a standard gap of 4.90479. The mode value or the frequently occurring value indicates 80.00. The minimum average value is 72.00 and the maximum average value is 97.00.

Competence affects employee performance, this statement is based on articles from relevant and reviewed research, including: Ansori & Ali (2017); Ridwan et al. (2020). According to Nguyen, et al (2020), this explains if a company or organization can assign employees according to their competencies, both technical and non-technical competencies. Then this will also be followed by an increase in employee performance in the form of technical skills, conceptual abilities, responsibility, initiative, and interpersonal relationship skills.

Schuller in Parashakti et al. (2020) by having competence, human resources are seen as humans with a uniqueness that needs to be developed. Humans are seen as valuable asset. With this trend, the role of human resources will be increasingly appreciated, especially in terms of human resource competence. Respected human resources will work wholeheartedly to provide the best for the organization.

The Influence of Spirituality on Organizational Performance

According to James et al. (2020) South Asia is a place where various spiritualities of the three religions, namely Hinduism, Buddhism and Islam have presented and demonstrated their respective doctrines. The founders of these religions have expanded their holistic contributions such as Bhagawat Geeta holy Tripita and Qur'an. Since spiritual activities are based on religious beliefs and concepts, how they are performed varies. At the same time, despite the diversity of religions and beliefs, solidarity can be visualized as the principle of all these religions which aims at the satisfaction, happiness, welfare and prosperity of humanity as a whole and thus, the establishment of world peace in James et al. (2020).

The results of Fadillah's research (2018) show that spirituality in the workplace has a significant effect on employee performance either directly or indirectly. The result of the influence test with a coefficient value of 0.340. If the value of spirituality is getting better, it will affect the increase in employee performance in related organizations.

The Influence of HR Variables in the Pumping HR Model for Tree Model

The research results of Ramly (2016) report that 3 variables affect employee motivation, productivity and performance, namely (1) strong belief in work, (2) employee competence towards work, and (3) employee behaviour in work. Belief is an important variable of spirituality, competence, while behaviour is a personality variable. Confidence in work affects success by 82.4 percent, competence affects 78.8 percent, and behaviour affects one's success by 81.8 percent (Ramly, 2016).

The results of this study indicate that the three variables have a significant effect on the performance of human resources. But how does this influence if it is systematic by a tree model structure? This can be explained as in Figure 4.

Figure 4 Pumping HR Model in a Tree Model Structure

The tree structure, which is the root of the successful Pumping HR model is called the Pumping Principle, the successful stem is called Pumping Competency, and the successful fruit/leaf is called Pumping Action. Based on this structure, the spirituality variable is the root of human success in work and life. The competency variable is the success bar that continues to grow in human work, while the personality variable is the root at the top layer, which Iceberg's theory calls Preconscious. The composition of the three variables in the structure of the Pumping HR model is as shown in Table 2.

Table 2 Composition of HR Variables in the Tree Model, Pumping HR Model and Iceberg's Theory
Variable SDM Tree Model Pumping HR Model Iceberg Theory
Spirituality Root Pumping Principle Unconscious
Competency, Personality Trunk Pumping Competency Preconsiouos
Behaviour Fruit/Leaf Pumping Action Conscious

Table 2 shows that for organizational effectiveness and efficiency, human resource development in an organization needs to strengthen 3 basic variables, in the following order (1) strengthening the spiritual values of employees, (2) training competencies, and (3) developing personality.

Conclusion

The variables of personality, competence and spirituality have a significant influence on employee and organizational performance. From the structure of the tree model, the three variables have a composition (1) spirituality is the root of human success, (2) competence is a growing trunk, and (3) personality is part of the roots, stems and fruit/leaves.

Employee and organizational performance are very much determined by the personality, competence and spirituality of human resources at work. With the 'Pumping-HR model' tree model to improve employee and organizational performance, human resource development must prioritize improving the quality of human resources with variables (1) strengthening spirituality, (2) personality development, and (3) strengthening work competencies

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