HUMAN CAPITAL MANAGEMENT IMPLEMENTATION AT SME BUSINESS BANKING REGIONAL A1 OF PT. BANK SIANTAR JAYA

• Main Author: Wahyuni Gultom, Uly
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63576
• Institution: Institut Teknologi Bandung

Rapid change and improvement intensify industry competitiveness and create new opportunities, notably in the banking business. SME is one of the industrial sectors targeted by the banking industry's business lines, with PT. Bank Siantar Jaya and other competing banks attempting to maximize the value of the company's assets to strengthen their business. Organizations must be able to generate new strategies to remain competitive in the industry. Human resources (HR), as a corporate asset that requires significant time to evolve, is a critical resource that can benefit the organization or vice versa. The organizational performance will suffer without a strong focus on the employees. Thus, human resource management is critical for attracting and retaining top performers and directing their performance in the desired direction. PT. PT. Bank Siantar Jaya, notably its SME Banking Business Regional A1, is confronted with unprecedented business challenges. As the division that contributes the most nationally, SME Banking Regional A1 has shown a decline in recent years regarding lending achievement, customer base, and business process execution. This paper aims to identify the implementation and maturity level of Human Capital Management (MMM) in the SME Business Banking Regional A1 organization. Determine which areas of MMM practice are most in need of improvement and the approaches that can be utilized to improve Regional A1 SME SME Banking's MMM maturity level. This research uses a method developed by Bassi and McMurrer (2007) in an online survey conducted to all SME Banking Business Region A1 employees. The tool assesses five primary MMM drivers: leadership practices, employee engagement, knowledge accessibility, workforce optimization, and learning capability. According to the results of the survey, the HCM score for SME Business Banking A1 is 75.82, or the HCM maturity level is "marginal”, which means the organization cannot maximize the return on its human capital due to an inability to leverage its human resource advantage. Nine HCM practices of HCM drivers fall short of the minimal 3.7 score, namely leadership practices (systems), employee engagement (time management and systems), knowledge accessibility (information sharing), workforce optimization (systems), and learning capacity (development, value & support, and systems). The nine HCM practices are identified as areas for improvement, where approaches for improving HCM maturity, and implementation plans are proposed.