The Impact of Human Resource Development and Continuous Improvement on Performance Improvement in the Steel Industry

Abstract

This research presented a conceptual model to develop employees’ performance using a human resource development and business strategy (Continuous Improvement) to practice within the organization. The researcher developed a questionnaire to examine the relationships among the independent variables: Human resource development, mediator: Continuous Improvement, and dependent variable: Performance Improvement. The population was composed of employees in steel industry. The sample was 622 people. The study contains four research questions: First, does Human Resource Development (HRD) influence Performance Improvement (PI) through Continuous Improvement (CI)? Second, does HRD influence PI through CI among the various levels of employee positions in the business? Third, does HRD influence PI through CI among business functional areas? Finally, does HRD influence PI through CI between the different of personality of openness to experience? Dimensions of variables include three variables: independent variable, mediator variable, and dependent variable. Independent variable, namely HRD, has been regrouped into five factors: planning, learning culture, design, training and development, and feedback system. Mediator variable, namely CI has six factors: getting the CI habit, focusing CI, spreading the word, CI on the CI system, walking the talk, and learning organization. Dependent variable, namely PI has three factors: cost performance, relationship performance, and organizational performance. The data was calculated using the Structural Equation Model (SEM). The results indicated a positive influence of the implementation of the model. Human Resource Development (HRD) and Performance Improvement (PI) through Continuous Improvement (CI) has been implemented with direct and indirect effect. It is also revealed that the organizational personnel whose positions were Levels 5-6, and above 6 in all responsibilities together with the personnel with explorer personalities enable to exploit the Continuous Improvement (CI) strategy in the cause of Human Resource Development (HRD) that has the best effect on Performance Improvement (PI).