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h p:jdm.unnes.ac Nationally Accredited based on the Decree of the Minister of Research, Technology and Higher Education, Number 85/M/KPT/
e Role of Organizational Culture in the In uence of HR Practices,
Knowledge Management, and Talent Management on Organizational
Performance
Agustinus Setyawan 1 , Alden Nelson 2 Faculty of Economics, University of International Batam, Batam, Indonesia1, Abstract e objective of this research is to analyze the effect of human resource management practices, knowl- edge management, and talent management on organizational performance by mediating organization- al culture in the mining industry. e design used in this research is hypothesis testing using structural equation modeling. e population of respondents in this study were employees at the management level of mining companies in East Kalimantan Province. e sample collection of respondents is car- ried out proportionally to company employees based on production capacity per year with purposive sampling method, where the number of samples that meet the criteria for analysis is from 127 employ- ees of coal mining companies taken from 10 existing companies. From the research results, there are three direct relationship hypotheses that are accepted and four hypotheses are rejected. Organizational culture as a full mediation of the relationship between HRM practice and talent management on or- ganizational performance, while only as a partial mediation on the relationship between knowledge management and organizational performance. Future research can focus on social and environmental issues in the mining industry in Indonesia or other countries.
Info Article History Article: Submi ed 1 July 2021 Revised 19 October 2021 Accepted 27 November 2021 Keywords: HRM Practice; Knowledge Management; Talent Manage- ment; Organizational Culture; Organizational Performance.
Peran Budaya Organisasi dalam Pengaruh Praktivk SDM, Manajemen
Pengetahuan, dan Manajemen Talenta terhadap Kinerja Organisasi
Abstrak Tujuan penelitian ini adalah untuk menganalisis pengaruh praktek manajemen sumber daya manu- sia, manajemen pengetahuan, dan manajemen talenta pada kinerja organisasi dengan mediasi bu- daya organisasi pada industri pertambangan. Rancangan yang digunakan dalam penelitian ini ada- lah pengujian hipotesis dengan menggunakan model persamaan struktural. Populasi dari penelitian ini adalah karyawan tingkat manajemen perusahaan pertambangan di Propinsi Kalimantan Timur. Pengumpulan sampel responden dilakukan secara proporsional pada karyawan perusahaan ber- dasarkan kapasitas produksi per tahun dengan metode purposive sampling, dimana jumlah sampel yang memenuhi kriteria untuk dianalisis dari 127 karyawan perusahaan pertambangan yang di- ambil dari 10 perusahaan yang ada. Dari hasil penelitian terdapat tiga hipotesa hubungan langsung yang diterima dan empat hipotesa ditolak. Budaya organisasi sebagai mediaton penuh hubungan antara praktek SDM dan manajemen talenta terhadap kinerja organisasi, sementara hanya sebagai partial mediation terhadap hubungan antara manajemen pengetahuan dan kinerja organisasi. Pe- nelitian selanjutnya dapat berfokus pada isu-isu sosial dan lingkungan di industri pertambangan di Indonesia atau negara lain.
JEL Classi cation: M3, M
Correspondence Address Institutional address : Jl. Gajah Mada, Balol, Sei Ladi, Batam 29422, Kepulauan Riau Email: agustinus@uib.ac
ISSN 2086-0668 (print) 2337-5434 (online) DOI: xxxxxxxxxxxxxx
How to Cite: Setyawan, A., Nelson, A. (2021). e Role of Organizational Culture in the In uence of HR Practices, Knowledge Manage- ment, and Talent Management on Organizational Performance. Jurnal Dinamika Manajemen, 12(2), 275-284.
INTRODUCTION
Competition with a global dimension is a serious and fundamental challenge for all count- ries in the current era of globalization, where global competition requires the availability of quali ed and superior-minded human resources. According to e Global Talent Competitiveness Index report 2020, Indonesia is ranked 65 out of 132 countries and lags behind 4 (four) neighbo- ring countries that are members of ASEAN count- ries (Singapore (3), Malaysia (26), Brunei (38), and Philippine (46). e Global Talent Competi- tiveness Index measures how a country’s growth, efforts to a ract and retain talent, and provides resources to develop strategies to increase the competitiveness of their talents. In the 2017 Bank Indonesia economic report, Indonesia’s econo- mic recovery in 2017 continues gradually, driven by improvements in exports and investment. e dynamics of economic growth show that the national economy has passed its lowest point of economic growth, namely 4% which occurred in mid-2015. Development shows that economic growth continues to improve slowly so that the Gross Domestic Product (GDP) in 2017 recor- ded a growth of 5%, an increase when compa- red to with the previous year’s economic growth of 5%. e mining industry is one of the in- dustries that contributes quite high to Indonesia’s GDP with a percentage of 8% but the increase is quite low, namely only 1% compared to the previous year (BPS, 2018). is is a challenge for the mining industry in Indonesia in improving organizational performance. Of several mining areas in Indonesia, the province of East Kaliman- tan is one of the provinces whose mining industry contribution is quite high with coal mining being the prima donna, contributing 45% of the to- tal Gross Regional Domestic Income (PDRB) of East Kalimantan Province (BPS Kaltim, 2018). e mining industry, including coal mining, is one of the industries that is able to absorb a large workforce so that human resource management strategies are very important in improving com- pany performance because it is closely related to business strategies (Gautam, 2015).
ere has been a lot of literature that discusses knowledge management and talent management in relation to human resource ma- nagement strategies, they are: Budiarti (2017) and Singh & Rao (2017) examined the effect of the application of human resource management on knowledge management and its impact on employee performance, Tin (2002) and Seye- dyouse et al., (2016) researched about the in- uence of organizational culture on knowledge management, Glaister et al., (2017) examined the effect of the application of human resource management on talent management and com- pany performance, Syayanipour et al., (2017) and Kontoghiorghes (2015) researched about the in uence of organizational culture on talent management, Ahmed (2016) and Ambumathi & Sivasubramanian (2016) examined the role of talent management on knowledge management, Ahmed & Elhag (2017) and Claver-Cortes et al., (2018) examined the effect of knowledge management on organizational performance, and Son et al., (2018) and Mwanzi et al., (2017) who examined the effect of talent management on organizational performance. From previous studies, there have been many studies that discuss the effect of the app- lication of human resource management and organizational culture on organizational per- formance but there is no research that jointly discusses the mediating effect of talent mana- gement and knowledge management in brid- ging the inconsistencies of previous research. Besides that, there is no research that examines together the application of human resource ma- nagement, organizational culture, talent mana- gement, knowledge management, and organiza- tional performance in one research model.
Hypothesis Development The relationship human resource management practice (HRMP) to organizational culture (OC) Organisational culture (OC), the unique internal nature of an organisation, is essential to how members of an organisation interact with each other and the organisation. Lawler ( 2003 , p. 35) argued that ‘the organisational design ele-
mance, such as affecting employee performance (Kooij et al., 2013; Al-Abbadi, 2018) and its im- pact on employee performance, operational per- formance and direct nancial performance and indirectly (Vermeeren et al., 2014) and Paauwe et al., (2013) who also concluded that there was a positive relationship between the application of human resource management and various kinds of performance measurements. Based on the explanation above, a hypot- hesis will be generated: H4: e application of human resource mana- gement practice has a positive effect on organizational performance
The relationship knowledge management (KM) to organizational performance (OP) Knowledge management (KM) will rep- resent a proper procedure, which ensures the competent and concurrent use of work process, technology and knowledge, by the employees at the same time. It also represents the transfer of knowledge at the right time and to the right individual, Duffy (2001). KM will also enable organizations to detect and remove barriers to knowledge ow, thereby fostering be er orga- nizational performance. Elements of KM will include four key parameters: people, processes, tools and organizations. Organizational culture (OC) is the workplace culture, which controls employee behaviour within the organization and outside the organization; every organizati- on has an exclusive working style, which signi - cantly contributes to the OC, Alvesson (2012). Based on the explanation above, a hypot- hesis will be generated: H5: e application of knowledge management has a positive effect on organizational per- formance
The relationship talent management (TM) and organizational performance (OP) e substantial volume of research on the link between HRM and organizational perfor- mance over nearly two decades generally nds a positive relationship between the extent of HR practices used and organizational performance
(see, Boselie et al., 2005 for a survey). Despite debate about which HR practices to include in the analysis of the relationship between HR and performance, a common practice that is found in almost all such studies, is training and development. is re ects, in part, the consis- tent importance given to training and develop- ment in the human capital and RBV theories. It is perhaps common sense that there would be substantial expected utility associated with MD for organizations and employees. Since mana- gers are considered to be such a key resource for rms, the successful development of this resour- ce – the presence of “good” managers in organi- zations – is likely to be associated with positive performance. Investment in MD by organiza- tions is also likely to be viewed as a commitment by employees that may help to strengthen the mediating in uences of affective commitment, discretionary effort, job satisfaction and turno- ver intentions of employees, all of which can have positive effects on organizational perfor- mance (Kuvas & Dysvik, 2010). Based on the explanation above, a hypot- hesis will be generated: H6: e application of Talent Management has a positive effect on organizational performance
The relationship organizational culture (OC) and organizational performance (OP) While no uniform de nition of organiza- tional culture exists, the description provided by Schein (2001) as a pa ern of basic beliefs and assumptions learned and shared by a group that is taught to new members as the accepted way to perceive, think, and feel when interacting with other members of the group is representative of many de nitions. Culture is a shared experience by individuals creating a system with meaning, values, and beliefs that in uences and shapes in- dividual and group behaviors. Unseen and intan- gible, organizational culture may be the most in- uential factor in in uencing the effectiveness of KM initiatives (Davenport & Prusak, 1998; Lee & Choi, 2003). Behavioral manifestations of or- ganizational culture can, and do, present barriers
Agustinus Setyawan & Alden Nelson/ e Role of Organizational Culture in the In uence of HR ...
to social interactions limiting the effectiveness of even the most sophisticated knowledge pro- cesses. Barriers identi ed by Hansen & Nohria (2004) include resistance to seek input and learn from the experience of others, unwillingness to assist other members, and resistance to working together and sharing knowledge. Surveys of organizational culture con- ducted by the Great Place to Work Institute (GPTW) of thousands of organizations in over 40 countries provide a baseline from which to evaluate relative levels of elements of organiza- tional culture. e GPTW survey accumulates perceived levels elements of organizational cul- ture into ve dimensions. e ve dimensions are respect, fairness, credibility, pride and ca- maraderie with respect, fairness and credibility collectively identi ed as the Trust Index (Gre- at Place to Work Institute, 2011). Other rese- arch conducted by Herbert A. Nold III (2012) shown OC has signi cant effect to OP. H7: e application of organizational culture has a positive effect on organizational per- formance
The Organizational culture (OC) as mediating e cultural uniqueness of an organization constitutes an inimitable organization capability to create its competitive advantage over its rivals (Hall, 1993). erefore, in the current turbulent and constantly changing global business envi- ronment, the preeminent leaders know how to shape the organizational culture (OC) of their organizations to achieve short as well as long- term objectives (Kuratko & Welsch, 2004). e
comprehensive review of the (KM) literature, found that the conducted empirical studies ex- ploring the (KM) and (OP) relationship revea- led that the ndings are inconsistent, should be deeply investigated and examined in the future research work. However, it has been widely re- ported in the literature that (OC) is among the variables that can in uence and be er explain the relationship between organization strategies and long-term (OP). Zoubi et al., (2015); Rashid & Yeop, (2020) found has positive impact knowled- ge management to organizational performance mediated by organizational culture. Based on the explanation above, a hypot- hesis will be generated: H8: e application of human resource mana- gement practice has a positive effect on organizational performance is mediated by organizational culture H9: e application of knowledge management has a positive effect on organizational per- formance is mediated by organizational culture H10: e application of Talent Management has a positive effect on organizational per- formance is mediated by organizational culture.
Research Framework Based on the above explanation, a theo- retical framework can be derived that describes the causal relationship between HR practices, knowledge management, and talent manage- ment through the mediation of organizational culture as shown in Figure 1.
Figure 1. Research Framework
Agustinus Setyawan & Alden Nelson/ e Role of Organizational Culture in the In uence of HR ...
cient when a value loading 0 to 0 (Ghozali, 2014). Based on the result test, found 6 indi- cators not valid from 66 indicators due to the value below 0. When validity testing completed, reliabi- lity test conducted to measure the instrument’s internal consistency. Cronbach’s alpha and Composite Reliability are used for two reliabi- lity test parameters. Cronbach’s alpha measures the lower limit of reliability while Composite Reliability measures the true value of construct reliability (Ghozali, 2011). is study uses both methods of reli- ability, although Composite Reliability is bet- ter in estimating the internal consistency of the construct (Werts et al., 1974). e rule of thumb value of alpha Composite Reliability should be above 0, although the value of 0. is still acceptable (Chin, 1998 dan Hair et al., 2011). All constructs in this study are reliable based on table 1.
e coecient of determination test is one part of the results of hypothesis testing, and the results of the coecient of determination can be seen in the information in table 3 below. e results of the Adjusted R2 test below explained HRM P, KM and TM in uence OC 65% while other variable has 34% which not discussed in this research. OP has 51% in uenced by HRM P, KM, TM and OC and other variable factor has 48% which not discussed in this research.
e hypothesis testing is performed using the bootstrapping method to obtain path coecients and to know the result on all hy- pothesis. Hair et al., (2011) stated when T- statistics above 1 or P-values below 0. will be concluded signi cant. Based on the result at table 4 found the relationship variables in the study are as fol- lows: (H1) HRM P has a positive effect on OC due to T statistic 2 and P value 0. and this result his research is relevant with the previous research (Rao, 2013; Marouf, 2015; Lockhart et al., 2019). (H2) KM has a nega- tive effect on OC due to T statistic 1,6603 and P value 0 and this result his research is contradictive with the previous research (Ma- rouf, 2015; Nanjundeswaraswamy T & Swa- my D,2020). (H3) TM has a positive effect on OC due to T statistic 6 and P value 0,0000 and this result his research is relevant with the previous research (Ahmed Deif & Ma-
rilyn V Beek, 2019; Srihandayani & Kusnendi, 2018). HRM P has a positive effect on OC due to T statistic 2 and P value 0. and this result his research is relevant with the previous research (Rao, 2013; Marouf, 2015; Lockhart et al., 2019) e result of hypothesis to OP are (H4) HRMP has a negative effect on OP due to T sta- tistic 1 and P value 0 and this result his research is contradictive with the previous
Table 1. Composite Reliability and Cronbach’s Alpha Testing
Variable Cronbach’s Alpha Composite Reliability Conclusion HR Management Practices (HRMP) .897 .913 Reliable Knowledge Management (KM) .769 .825 Reliable Talent Management (TM) .935 .944 Reliable Organizational Culture (OC) .917 .929 Reliable Organizational Performance (OP) .867 .891 Reliable
Table 2. Coecient of Determination result (R2)
Variable R Square R Square Adjusted Organizational Culture (OC) .6602. Organizational Performance (OP) .5338.
research (Chew & Sharma, 2005; Bha i et al., 2020). (H5) KM has a negative effect on OP due to T statistic 1 and P value 0 and this result his research is contradictive with the previous research (Najmi et al., 2017; Sivathanu & Pillai, 2019). (H6) TM has a negative effect on OP due to T statistic 0 and P value 0 and this result his research is contradic- tive with the previous research (Sheehan,2011; Arif & Uddin, 2016). (H7) OC has a positive effect on OP due to T statistic 5 and P va- lue 0,0000 and this result his research is relevant with the previous research (Herbert A Nold, 2012; Rashid & Yeop,2020). e result of hypothesis OC as mediating are (H8) HRMP has a positive effect on OP due to T statistic 2 and P value 0 and this result his research is relevant with the previous research (Al-bahussin & El-garaihy, 2013; Tre- han & Setia, 2014), the OC in this result as full mediating. (H9) KM has a negative effect on OP due to T statistic 1 and P value 0 this result his research is contradictive with the previous research (Rashid & Yeop, 2020; Zoubi et al., 2020), the OC in this result as partial me- diating. (H10) TM has a positive effect on OP due to T statistic 3 and P value 0 and this result his research is relevant with the pre- vious research (Cao et al., 2015; Tan, B 2019), the OC in this result as full mediating.
CONCLUSION AND RECOMMENDATION
In terms of direct relationships, in this study there are three accepted hypotheses, na- mely HRM practice on organizational culture, talent management on organizational culture, and organizational culture on organizational performance. While the four hypotheses that were rejected were knowledge management on organizational culture, HRM practice on organi- zational performance, knowledge management on organizational performance, and talent mana- gement on organizational performance. Refer to the indirect relationships, there are two accepted hypotheses, namely the relationship between HRM practice and organizational performan- ce mediated by organizational culture and the relationship between talent management and organizational performance mediated by organi- zational culture, while the relationship between knowledge management and organizational performance that mediated by organizational culture is rejected. e practical implementati- on of this research as a guidance for all decision makers at mining coal industry to manage hu- man resource management practice, knowledge, talent, and culture in their organization as well to improve organizational performance. eore- tical implications of this research will be useful for mining coal industry that are able to descri-
Table 3. Hypothesis Testing
Variable T Statistics P Values Conclusion HRM Practices -> Organizational Culture 2 0 Accepted Knowledge Management -> Organizational Culture 1 0 Rejected Talent Management -> Organizational Culture 6 .0000 Accepted HRM Practices -> Organizational Performance 1 .1920 Rejected Knowledge Management -> Organizational Performance .1405 .8883 Rejected Talent Management -> Organizational Performance .2887 .7729 Rejected Organizational Culture -> Organizational Performance 5 .0000 Accepted HRM Practices -> Organizational Culture -> Organizational Performance 2 .0164 Accepted Knowledge Management -> Organizational Culture -> Organizational Performance 1 .1418 Rejected Talent Management -> Organizational Culture -> Organizational Performance 3 .0001 Accepted
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30980 87607 1 PB - JURNAL DINAMIKA MANAGEMEN
Course: manajemen (mnjm1k)
University: Universitas Swadaya Gunung Jati
