THE INFLUENCE OF HUMAN CAPITAL MANAGEMENT PRACTICES ON EMPLOYEE COMPETENCIES: THE MEDIATING ROLE OF INTERNAL SERVICE QUALITY AND EMPLOYEE DEVELOPMENT CASE STUDY AT BORMA TOSERBA

• Main Author: Fernanda Aulia, Shieren
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72939
• Institution: Institut Teknologi Bandung

Borma Dakota is one of the well-known retailers in Bandung also known for their vision of providing the greatest management services for employee welfare and customer satisfaction. However, Borma Dakota Management has problems in providing services to employees due to a lack of management and optimization of existing resources such as financial constraints. There are quite a number of employees whose performance is below standard, which can affect the company's performance. It’s necessary to analyze the influence of human capital management practices on all employees of Borma Dakota Management. The methodology uses a quantitative approach through non-probability sampling techniques also purposive judgment sampling by distributing surveys to 100 employees in 3 branches of Borma Dakota Management such as Borma Kopo Sayati, Borma Cibaduyut and Borma Taman Kopo Indah II. The collected data were analyzed through path analysis with multiple regression assisted by the SPSS 26 program. The first hypothesis analysis, human capital management practices have a significant effect on employee competencies. The second hypothesis, human capital management practices have a significant effect on internal service quality 28.8%. The third hypothesis, human capital management practices have a significant effect on employee development by 50.1%. The fourth hypothesis, human capital management practices have a significant effect on employee competencies through internal service quality. The fifth hypothesis, human capital management practices have a significant effect on employee competencies through employee development. The sixth hypothesis, human capital management practices, internal service quality, and employee development have a significant effect of 64.5% on employee competencies. Therefore, to increase employee morale which will have an impact on the quality of performance, Borma Dakota Management must stive to implement human capital management practices and preparing a special training funds in every branch of Borma Dakota Management. These practices include recruitment and selection, training and development, performance appraisal, compensation, and benefits. When a company has good performance quality and employee competence, indirectly customers will feel comfortable and loyal to the company because the employees are competent, responsible and have high knowledge about their roles and about their company.