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Advances in Social Science, Education and Humanities Research, volume 167
First International Conference on Administrative Science, Policy and Governance Studies (1st ICAS-PGS 2017)
Second International Conference on Business Administration and Policy (2nd ICBAP 2017)
The Effect of HRM Practices on Employee Organizational
Citizenship Behavior in ICT Companies
Ananda Putra Fajar Pantius Drahen Soeling
Department of Business Administration, Faculty of Department of Business Administration, Faculty of
Administrative Science, Universitas Indonesia, Administrative Science, Universitas Indonesia,
Depok, Indonesia Depok, Indonesia
anandaputrafajar@gmail.com pantiusdrahen@gmail.com
Abstract—The present era of globalization and while the OCB variables were measured based on
technology have encouraged the human resource five major dimensions by Organ (1988). The
management (HRM) function to optimize strategy analysis is on the active employees of PT Sigma
in dealing with challenges faced by the Cipta Caraka (Telkomsigma) who had worked for
organization. With precious value and endless at least a year in the company with the number of
capabilities, the contribution of capable human 243 employees. This study uses quantitative
resources practices is needed to support the methods in collecting data with a questionnaire as a
strategic objectives of the company. In a sense of research instrument. The research data will be
developing a broader organizational climate analyzed using descriptive statistic analysis,
through the program people capability as a source correlation, and regression analysis to test the
of sustainable and highly competitive advantage in relationship among variables. The results of this
the organization, the progression of extra-role study provide an evidence that each dimension of
behavior activities has been developed in the form HRM practices, with the exception of training, have
of supporting interactions and relations among a positive significance but no strong indication to
employee and employers by helping each work unit encourage OCB activities showed by employees in
running in the company more effectively. This the ICT company.
study attempts to propose and analyze the effects of
HRM practices on organizational citizenship Keywords— HRM practices; ICT company;
behavior (OCB). The HRM practices variable were organizational citizenship behavior
measured through the High-Involvement HRM
Practices tool by Prieto and Pérez-Santana (2014),
I. INTRODUCTION management intended to support the
To gain a better understanding about strategic goals of the company.
the life of an organization whether it is a When HR professionals gain a clear
private sector or public sector, human understanding of the organization's
resource management (HRM) acted as a business objectives, they can turn those
personnel unity that is manifested in the business goals into measurable human
form of human resources or employees as resources practices [2] The organizational
the part of assets owned by a company. changes in certain companies into more
From managerial perspectives, the notion dynamic and complex environment tend to
of HRM act as a perspective to build a improve the resources in effectiveness and
strategic management structure for the performance by achieving competitive
relationships of various job offerings [1]. advantage. Therefore, HRM practices had
HRM always played a critical role in the ability to help the organization achieve
facing various organizational challenges, some form of competitive advantage
which in turn takes some form of through support from individual human
contribution from organizational
Copyright © 2017, the Authors. Published by Atlantis Press. 282
This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Advances in Social Science, Education and Humanities Research, volume 167
resource competencies that can add business units within each organizational
measurable value to the company [3]. directorate through the policies of human
The application of HRM practices are capital as well as improving employees’
experienced by challenge to understanding end-to-end contribution through a program
the skills, knowledge, and motivation of performance evaluation which
shown by employees, that by term leads to contributes to the success of an
managerial evaluations to find out what are organization [8].
the most important factors to affect the The adoption of high-performance
behavior of employees [4] through a HRM practices activities in a sustainable
variety of ways leading towards certain condition [9] will provide support for the
strategies [5]. This creates support from premise that employee motivation and
employees by the form of a good behavior interactions directly affects knowledge
may deliver some form of explicit sharing within the organization. The ability
contributions, known as organizational are shown and reinforced by the employee
citizenship behavior (OCB), which stated in the form of specific behaviors that are
by Organ as ‘individual behavior that is considered more important and effective
discretionary, not directly or explicitly when executed appropriately [10]. This
recognized by the formal reward system’. form of citizenship behavior that is related
OCB has been considerably important to within the improvement of organizational
organizational life that perhaps now more effectiveness [11] by high degree
crucial then ever indicated by the increased performance of both quality and quantity at
level in global competition, emphasis on work are capable to enchance the level of
customer-oriented services, and job effectiveness and improving the
requirements that depends on team-based organization ability to retain its employees
structures [6]. [12] while at the same time reducing the
The current largest integrated turnover rate for employees [13].
information and communication According to initial research, the
technology (ICT) company in Indonesia is employees only focus on their job
known by the name of PT Sigma Cipta description and rarely help each other in
Caraka (Telkomsigma). It is a subsdiary solving work issues. Consequently, their
part of PT Telekomunkasi Indonesia Tbk cooperation is needed to reach more
(Telkom Indonesia Group) which operates succcesful business goals. By creating a
in activities through professionally owned balance of organizational climate needed
resources support in generating revenue in terms of diversity and work situation,
engine through development programs in a the company can improve a set of
sustainable manner and ongoing basis to corporate value within the employees by
provide the best service for customers in establishing more positive environment
the form of strategic business partners and through the people capability program.
the public community. This ultimately leads employees to engage
Based on the exposure, then it takes into higher levels of OCB as well as to led
special attention to grow and maintain the the desire into low turnover in
efficiency of HRM pratices on employees. organizations [14].
The development of all lines within firms To summarize, HRM practices have
also involves human resources strategies in played a key role of all decision-making
managing and improving organizational strategy [15]. It allows organizations to
performance on every employee of the formally augment effective helping
firm that allow them to decide how their routines employees have developed on
jobs are performed [7]. These roles are their own [16]. High-involvement HRM
required to be performed by the various practices also capable of bringing high
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Advances in Social Science, Education and Humanities Research, volume 167
engagement through the OCB activities [20], namely: altruism, conscientiousness,
outside a formal policy, where such sportsmanship, courtesy, and civic virtue.
behaviour may result in increased
performance in more developed and B. Human Resource Management
effectively within the organization [13]. Practices
Therefore, this study will focus on areas of The way the human resources
HRM practices applied in the ICT management approach is running through
company, namely job design, staffing, in a manner of strategic and coherent way
training, compensation, performance to maximize contributions endowed with a
appraisal, and participation. Then, by range of productivity, quality and
including direct effects on each variable of profitability through enhancement and
OCB could give practical insights on how support of a business strategy [21]. HRM
to increase the work performance in practices include process that are
accordance with signified principles of developed and executed specifically by
good corporate governance stated by the departments and human resources
company. professionals [2] to perceive a form of
II. LITERATURE REVIEW enchanced performance and superior
competitive basis for the better progress of
A. Organizational Ciitizenship Behavior the organization firms [15].
Organizational citizenhip behavior A series of HRM practices not only can
(OCB) is defined as a concept required to produce a higher form of corporate
understand behavioral cause of performance, but may give impact directly
performance, an individual spontaneous against external and internal social
behavior [17]. The notion of OCB was not networks of the top management teams [3].
specified as a main requirement of the Based on extensive review of the literature,
organizational work, but regarded as a the identify aspects of high-performance
attitude of voluntary participation to human resource practice during the process
improve the effectiveness of the of company management and development
organization. to include: job design, staffing, training,
OCB is reflected as something that is compensation, performance appraisal, and
discretionary and does not belong in the participation [22]. These six aspects have
form of official role or needs in the different role and functions, as explained
organization [18] so that individuals have a next:
choice that can be favoured more to Job design is the methods that
determine the job length in regards with management used to develop the content or
effort, care, innovation, as well as material, including work assignments and
productive attitude closely linked to analysis as well as the process of a
discretionary behavior and associated with working line [10] that is relevant up to
positive outcomes for the sake of organizational competitiveness which
efficiency and organizational performance includes experience and motivation of
[19]. individuals and working unit in the firm
Examples of OCB’s at the workplace [21].
like volunteering for extra job activities, Staffing process aims to obtain people
helping coworkers, and making positive with appropriate skills, abilities,
comments about the company [10]. knowledge and experience that fit to fill
Such activities constitute the aspects of the jobs in the organization [21].
many previous research studies that Internally, the role of prospective
classify these main operational dimensions employees referred in the magnitude of
of OCB, following the study of Organ existing business units within decentralized
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Advances in Social Science, Education and Humanities Research, volume 167
operation activities are set to specified To adapt with a distinct set of needs in
responsibilities for choosing new recruits the current human resources environment,
[18]. job design practices should be designed in
Training may be applied in any more flexible way [26] in which the
organizations which specified the process employee role structure can be modified to
through condition which people demonstrate extra discretionary behavior in
systematically acquire and improve the support of peer activities to deliver better
skills and knowledge needed to enhance results within every working unit. The
job performance [23]. For training to be direct relationships between job design
most effective, transfer of training may act with extra role behavior was postulated by
as a tend to enable employees to measure Krishnan, Alias, Ismail, and Kanchymalay
the degree in more gain knowledge and [27] who find that direct effect of
skills elaborated in daily work activities. perceived work design characteristics, such
Compensation is a stage where as feedback, task significance,
psychological demand, autonomy and
companies offer some form of incentives social support to engage in OCB. Based on
in extent through competence as the discussion, the following hypotheses is
individual, work group, and long-term proposed:
performance [9]. Under any circumstances H1: Job design practice has a
that companies will have to reward their significant effect to organizational
employees according to their job-related citizenship behavior.
performance [24] with compensation The preparation of HRM practices in
payments through pay-performance the company is connected to their staffing
standards by size and base procedures needed for stimulate and
recommendations to generate valuable reinforce the emergence of a necessary
feedback on any resources invested [15]. different behavior among employees [28].
Performance appraisal forms a Following this statement, Nasurdin,
systematic process from HRM practices to Ahmad, and Tan [29] found that the
classify and sort the hierarchy into placement of staff in the firm including
employees in carrying out the integration activities of recruitment, selection, and
of beliefs, values, and actions on the orientation can result in a more fitting and
actively work activities [21]. The purpose significant way against the service-oriented
of performance appraisal scheme must be OCB’s. Thus, the next following
tend to build some additional relationships hypotheses is proposed:
between the business line manager and H2: Staffing practice has a significant
employees to adopt into more respectable effect to organizational citizenship
policies [25]. behavior.
Participation activities provide the Company training program steers their
opportunity for employees to personally employees to get some sort of a learning
voice their discontent and make experience. However, with minimal effort
adjustments against the authority or the to transfer the acquired knowledge, these
issue of the firm management [18]. which perceptions lead to motivate various
in turn would affect employee behavior manifestation to implement some
against organizational processes through behavioral activities of OCB, as
the "sense of belonging" or interchange Turnipseed and Murkison [30] suggested
information among each individuals [17]. can be beneficial, by provide additional
C. The effect of HRM practices on training to improve productivity, direct
organizational citizenship behavior engagement in activities outside the
organization that lead to further
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