Implementation of Competency Based Human Resource and Knowledge Management to Organizational Culture and Organizational Performance Implication

Abstract

This study aims to analyze : (i) implementation of competency based human resource management, knowledge management, organizational culture and organizational performance, (ii ) the effect of the implementation of competency based human resource management and knowledge management either simultaneously or partially on organizational culture; (iii) the effect of the implementation of competency based human resource management and knowledge management either simultaneously or partially on organizational performance, (iv) the influence of organizational culture on organizational performance, and (v) the influence implementation of the competency based human resource management and knowledge management simultaneously  to organizational performance through organizational culture.

The analysis unit of the study conducted in 42 regions in the five state-owned energy sector companies in Indonesia. Therefore, the units of observation in this study were composed of 47 middle managers, 81 line managers and 155 employees. Meanwhile, to determine the simultaneous or partial influence implementation of competency-based human resource management and knowledge management of organizational culture and its implications for organizational performance, directly or indirectly, it was analyzed by using the Structural Equation Model (SEM) based on the model variant with Partial Least Square (PLS), using Smart PLS software 2014.

The results showed that (i) the implementation of competency-based human resource management, knowledge management, organizational culture and organizational performance has been achieved well, (ii) the simultaneous implementation of competency-based human resource management and knowledge management were very large effect of organizational culture, the partial implementation of competency-based HR management influential moderate of the organizational culture, the implementation of knowledge management moderately influence of the culture of the organization, and the implementation of competency-based human resource management had a very large positive relationship with the implementation of knowledge management, (iii) the simultaneous implementation of competency-based human resource management and knowledge management had a small effect  on the performance of the organization and so not significant, the partial implementation of competency-based human resource management had a medium effect  on the performance of organization and the implementation of knowledge management had a very small effect (3.02%) on the performance of the organization, (iv) the organizational culture had a medium influence on the performance of the organization, (v) the simultaneous implementation of competency-based human resource management and the knowledge management had a very large effect on the performance of the organization through organizational culture.