p–ISSN: 2723 - 6609 e-ISSN: 2745-5254

Vol. 5, No. 6 June 2024 http://jist.publikasiindonesia.id/

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2783

The Influence of HR Management Quality on Improving the

Performance of Contracting Companies in North Sumatra

Moses Hasiholan Septian Tampubolon

, Gina Cynthia Raphita Hasibuan

M. Ridwan Anas

, Ricky Bakara

Universitas Sumatera Utara, Indonesia

Email: [email protected]

*Correspondence

ABSTRACT

Keywords: Quality of HR

Management;

Performance of the

Contractor Company;

Organizational

Effectiveness.

This research aims to determine the influence of the quality

of human resource management on the performance of

contractor companies in North Sumatra. The hypothesis

proposed is that there is a positive relationship between the

quality of human resources and the performance of

contractor companies. A total of 24 respondents from 6

contractor companies were selected as samples using the

probability sampling method. The research results show that

there is an influence between the quality of human resources

on company performance. This is proven by the results of

the hypothesis test which shows the calculated t value of

10.785, exceeding the t table value of 2.074. Therefore, the

null hypothesis is rejected, indicating that there is a

significant influence between the quality of human resource

management and the performance of contractor companies

in North Sumatra. From the research results, it can be

concluded that the quality of human resource management

has a significant influence on the performance of contractor

companies in North Sumatra 84.1%; the remaining 15.9% is

influenced by other factors. Therefore, it is recommended to

improve the quality of human resource management to

improve the performance of contractor companies.

Introduction

The performance of contracting companies in the construction industry is a key

factor in determining the success and competitiveness of the company (Prasetijo,

Tjendani, & Witjaksana, 2023). Contracting companies that can manage human resources

(HR) well have the potential to achieve project objectives efficiently, generate greater

profits, and meet client expectations. In a broader scope, improving the performance of

contracting companies can contribute to the growth of the construction sector and

economic development (Rusli, Afifuddin, & Abd Rani, 2018).

Construction companies have a variety of complex problems and factors such as

cost, quality, and safety. The construction sector involves many parties from various

expertise. This cannot be separated from the role of humans as the main resource in a

construction company. So the management of human resources (HR) is one of the key

Moses Hasiholan Septian Tampubolon, Gina Cynthia Raphita Hasibuan, M. Ridwan Anas,

Ricky Bakara

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2784

elements of success in the sustainability of the company (Miswar, Hidayat, & Ophiyandri,

2017). One of the key factors for the success of construction companies in achieving their

vision and mission is the good quality of human resources (Dharmayanti, Adnyana, &

Nugraha, 2020). This is because human resource management in the construction sector

is an important factor. After all, in its implementation, the construction organization is

dominated by human labor (Kirchev & Bartoschek, 2021).

The construction process with a high level of complexity and continuous process

also requires a high level of education from the workers. (Hecklau et al., 2016). In

addition, to increase the company's attractiveness to stakeholders, human resource

training that suits the company's needs also needs to be carried out to gain the trust of

these stakeholders (Pinto & Soekiman, 2022).

Improving the quality of human resources needs to be done so that the organization

becomes more competitive and able to respond to external challenges for the existence

and sustainability of the company (Arshad, 2021). The increase in the strategic role of

HR management can be realized through recruitment, placement, payroll/compensation,

and career development policies based on competencies. Implementing competency-

based HR management in the company will have an impact on more reliable human

resource ownership in the face of changes and shifts in the era of globalization (Artini,

2019).

Based on a preliminary study that has been conducted (Andius, 2019) in Malang

City, it was found that a phenomenon or problem was produced by the company itself

and existed within the control of the company's organization. This problem is usually

related to weak human resource management, so human resource management problems

are the single biggest factor behind many company failures. In addition, the problem that

usually occurs in construction service companies, namely recruitment that is carried out

consistently, is not supported by the efficiency of employee training, both new and

permanent employees, and will cause someone to be ineffective in working and can

further reduce performance. In the long run, this can have an impact on the company's

performance.

In a previous journal by Ihedigbo, Kingsley Sunday and Richard Jimoh explained

that the success of an organization depends on the effective and efficient use of human

resources. In addition, in any project-based industry, for example, the construction

industry, the performance of the project is highly dependent on the effectiveness of its

human resources. Labor turnover in the construction industry and poor performance of

the construction industry in terms of project delays, cost uncertainty, and lack of quality

are caused by inadequate utilization of human resource management practices

(Maddeppungeng, 2015).

Therefore, it is important to recognize that human resources are valuable assets in

a contractor company. The quality of HR management is a very important factor in

achieving optimal performance. In the context of North Sumatra, which is one of the

provinces with significant construction activity in Indonesia, contractor companies

operate amid increasingly fierce competition. Therefore, it is important to understand the

The Influence of HR Management Quality on Improving the Performance of Contracting

Companies in North Sumatra

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 2785

impact of HR management quality on improving the performance of contracting

companies in this region.

The objectives of this research are:

1. Analyze and understand the quality of human resource management (HR)

implemented by contracting companies in North Sumatra.

2. Measuring the performance of contractor companies in North Sumatra. This will

involve indicators such as quality, quantity, timeliness, effectiveness, independence,

transformation, and maintenance.

3. Whether the quality of HR management has a significant influence on the performance

of the contractor company. It involves statistical analysis that reflects the relationship

between HR management and company performance.

Method

Research Location

The location of this research was carried out in North Sumatra Province, Indonesia

Data Used

The data to be researched and analyzed in this study consists of primary data and

secondary data.

1. Data Primer

Primary data was obtained by conducting structured interviews (surveys) with

competent construction companies on the problems studied. As a theoretical basis in

primary data collection, literature studies are carried out through books, journals,

magazines, and articles.

2. Data Seconds

Secondary data used in literature studies contained in books, journals, and various

media related to the topic being researched.

Research Variables

The research conducted by the author consists of two variables, namely independent

variables and dependent variables.

Independent Variable (Independent Variable)

In this study, there are independent variables that are studied, namely the quality of

human resource management

Bound Variable (Dependent Variable)

Bound variables are variables that are influenced or become a result, because of the

existence of independent variables". In this study, the dependent variable is Company

Performance.

Population and Sample

1. Populasi

The population in this study is contractor companies in North Sumatra that handle

public and private projects.

2. Sample

Moses Hasiholan Septian Tampubolon, Gina Cynthia Raphita Hasibuan, M. Ridwan Anas,

Ricky Bakara

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2786

The sampling technique in this study is the probability sampling method where the

sampling is random or random. This method gives all members of the population the same

probability or chance to be a selected sample. A sample of contractor companies is 6 (six)

companies that will be taken by each respondent.

Data Collection Techniques

In this study, the data collection technique used is structured interviews (surveys).

Structured interviews and surveys were aimed at several respondents such as directors,

project managers, site managers, etc. who are in the contracting company related to

human resource management and improving the performance of the contracting

company.

Research Stages

The stages carried out in this study can be depicted in Figure 1.

Figure 1. Diagram of the research stages

Results and Discussion

Tabulation of Human Resource Management Quality Questionnaire Results (X)

The Influence of HR Management Quality on Improving the Performance of Contracting

Companies in North Sumatra

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 2787

The analysis of variable data on the quality of human resource management (X)

was based on 19 statements. Based on table 3.1. Operational Research Variables, then in

the personality dimension with moral, ethical, and 5S indicators (greetings, greetings,

politeness, courtesy, smile) which is based on 7 statements received an average score of

4.05 with a good interpretation of agree. Likewise, in the productivity dimension with

indicators of intelligence, work, and knowledge based on 7 statements, it received an

average score of 3.95 with interpretations tending to agree. In the dimension of creativity

with indicators of critical thinking, skills, and intention based on 5 statements received an

average score of 4.19 with a good interpretation of agree.

Each indicator is based on the statements described in the table below:

Table 1

The statements of respondents in Questionnaire No.1 stated that they agreed with

13 respondents (54.2%), and respondents stated that they strongly agreed with as many

as 11 respondents (45.8%). None of the respondents answered strongly disagree, disagree,

or disagree. This means that respondents agree by applying ways of interacting (deeds,

behaviors, and speech) between fellow employees.

Tabulation of Company Performance Questionnaire Results (Y)

The analysis of the company's performance variable data (Y) is based on 16

statements. Based on table 3.1. Operational Research Variables, then in the dimension of

contextual performance (interpersonal or interpersonal work achievement of a person)

with the dimensions of quality, quantity, timeliness, effectiveness, and independence

based on 8 statements received an average score of 4.27 with a good interpretation. As

well as in the dimension of task performance (work performance, technique, or behavior

in organizationalization or interpersonal) with indicators of transformation and

maintenance based on 8 statements getting an average score of 4 with a good

interpretation.

Each indicator is based on the statements described in the table below:

Table 2

Statements of respondents in questionnaire No.20 stated that 13 respondents

(54.2%) agreed, and respondents stated that they strongly agreed with 11 respondents

(45.8%). There were no answers from respondents who answered strongly disagree,

disagree, and disagree. This means that respondents agree with the quality of human

STS % TS % KS % S % SS % ∑ %

Karyawan mendapatkan penataran

mengatur cara berinteraksi

(perbuatan, perilaku, dan ucapan)

antar sesama karyawan

0 0,0 0 0,0 0 0,0 13 54,2 11 45,8 24 100

Pernyataan

Jawaban Responden

STS % TS % KS % S % SS % ∑ %

Karyawan dapat menyelesaikan

pekerjaan dengan baik, teliti, serta

sesuai standar yang ditetapkan

perusahaan

0 0,0 0 0,0 0 0,0 13 54,2 11 45,8 24 100

Pernyataan

Jawaban Responden

Moses Hasiholan Septian Tampubolon, Gina Cynthia Raphita Hasibuan, M. Ridwan Anas,

Ricky Bakara

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2788

resource management applied by completing work well, thoroughly, and according to

standards.

Table 3

The statements of respondents in questionnaire No.35 stated that they strongly

disagree and disagree with each as many as 1 respondent (4.2%), respondents who stated

that they disagree as many as 2 respondents (8.3%), respondents who stated that they

agree as many as 8 respondents (33.3%), respondents who stated that they strongly agree

as many as 12 respondents (50.0%). And respondents answered all of these statements.

This means that respondents agree with employees that they expect to become permanent

employees, in order to guarantee compensation and benefits.

The average score based on 16 statements on the company's performance variables

can be seen in the following table:

Table 4

Average value on the Company's performance variables

Based on Table 1, a company performance profile can be made for construction

companies in Indonesia as shown in the following figure.

STS % TS % KS % S % SS % ∑ %

Karyawan memiliki harapan menjadi

karyawan tetap, karena kompensasi

dan tunjangan yang terjamin

1 4,2 1 4,2 2 8,3 8 33,3 12 50,0 24 100

Pernyataan

Jawaban Responden

Reponden Rata-ra ta P enafsiran Reponden Rata-ra ta Pen afsiran

1 3 Ragu-ragu 13 4 Baik

2 3 Ragu-ragu 14 4 Baik

3 3 Ragu-ragu 15 5 Sangat Baik

4 4 Baik 16 4 Baik

5 4 Baik 17 5 Sangat Baik

6 4 Baik 18 5 Sangat Baik

7 4 Baik 19 5 Sangat Baik

8 4 Baik 20 5 Sangat Baik

9 4 Baik 21 5 Sangat Baik

10 4 Baik 22 5 Sangat Baik

11 4 Baik 23 5 Sangat Baik

12 4 Baik 24 5 Sangat Baik

The Influence of HR Management Quality on Improving the Performance of Contracting

Companies in North Sumatra

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 2789

Figure 2. Company Performance Profile

Figure 2 shows that the performance of contractor companies in North Sumatra with

very good conditions is 38%, good condition is 50%, and hesitant is 13%. This condition

shows that most of the performance of construction companies in North Sumatra is in

good condition.

Prerequisite Analysis Testing

The prerequisite analysis test that will be applied in this study is a reliability and

validity test.

In this study, the data obtained from the list of statements and documentation was

analyzed with the help of a computer using the Statistical Product for Service Solution

(SPSS) program, because the questionnaire item scores were on an interval scale, so the

validity test used product-moment correlation. The value of r of the table with the number

of samples (n = 24) at a significant level (α = 0.05) is obtained from the r table of 0.404,

meaning that if r counts < r table then the instrument item is invalid and if r calculates >

r table then the instrument item can be used (valid). The values of the correlation

coefficient for the validity test of each variable's instrument, the researcher presents in the

form of a table as follows:

Human Resource Management Quality Variable (X)

The values of the correlation coefficient for the validity test for the Human

Resource Management Quality variable can be seen in the following table:

Moses Hasiholan Septian Tampubolon, Gina Cynthia Raphita Hasibuan, M. Ridwan Anas,

Ricky Bakara

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2790

Table 5

Based on the data listed in the table, it is known that the values of the correlation

coefficient for the validation test of the variable instrument Quality of human resource

management (X) obtained by the Pearson corelation (r calculation) are greater than the r

of the table and always the instrument as many as 19 items are said to be valid. As for the

results of the Reliability Coefficient Test (Alpha Cronbach) listed in the table above the

Pearson

Correlation

Sig. (2-

tailed)

.604

0,002

.604

0,002

.611

0,002

.660

0,000

.678

0,000

.481

0,017

.705

0,000

.537

0,007

.507

0,012

P10

.439

0,032

P11

.538

0,007

P12

.500

0,013

P13

.534

0,007

P14

.719

0,000

P15

.543

0,006

P16

.565

0,004

P17

.618

0,001

P18

.600

0,002

P19

.586

0,003

**. Correlation is significant at the

0.01 level (2-tailed).

*. Correlation is significant at the

0.05 level (2-tailed).

Correlations

N %

Valid 24 100,0

Total 24 100,0

a. Listwise deletion based on all variables in the procedure.

Case Processing Summary

Cases

Cronbach'

s Alpha

N of Items

0,875 19

Reliability Statistics

The Influence of HR Management Quality on Improving the Performance of Contracting

Companies in North Sumatra

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 2791

variable Alpha Cronbach value is greater than the Critical Alpha value (0.05), this can be

said that the instrument used is reliable, meaning that the instrument is reliable enough to

be used as a data collection tool, because the instrument is already considered good.

Company Performance Quality Variable (Y)

The correlation coefficient values for the validity test for the Company Quality

variable can be seen in the following table:

Table 6

Based on the data listed in the table, it is known that the values of the correlation

coefficient for the validation test of the Company Performance variable instrument (Y)

obtained by Pearson Corelation (r calculate) are greater than the r table and always the

Pearson

Correlation

Sig. (2-

tailed)

P20

.710

0,000

P21

.463

0,023

P22

.714

0,000

P23

.663

0,000

P24

.646

0,001

P25

.549

0,005

P26

.471

0,020

P27

.727

0,000

P28

.577

0,003

P29

.533

0,007

P30

.770

0,000

P31

.633

0,001

P32

.723

0,000

P33

.708

0,000

P34

.644

0,001

P35

.564

0,004

*. Correlation is significant at the

0.05 level (2-tailed).

Correlations

**. Correlation is significant at the

0.01 level (2-tailed).

N %

Valid 24 100,0

Total 24 100,0

a. Listwise deletion based on all variables in the procedure.

Case Processing Summary

Cases

Reliability Statistics

Cronbach'

s Alpha

N of Items

0,899 16

Moses Hasiholan Septian Tampubolon, Gina Cynthia Raphita Hasibuan, M. Ridwan Anas,

Ricky Bakara

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2792

instrument as many as 16 items are said to be valid. As for the results of the Reliability

Coefficient Test (Alpha Cronbach) listed in the table above the Alpha Cronbach value of

each variable is greater than the Critical Alpha value (0.05), this can be said that the

instrument used is reliable, meaning that an instrument is reliable enough to be used as a

data collection tool, because the instrument is already considered good.

Hypothesis Testing

After calculating the value of each variable studied, the next thing is to test the

hypothesis proposed in the research. Hypothesis testing is proposed to see how the

independent variable of human resource management quality affects the company's

performance-bound variable. In this study, the hypothesis to be tested is "There is a

positive influence between the Quality of Human Resource Management and Company

Performance". To find out whether there is an influence of the independent variable on

the bound variable, it is first searched whether the two variables are related. The strength

of the relationship between the human resource management quality variable (X) and

Company Performance (Y) can be determined through correlation analysis while finding

the form of the relationship between the two variables is carried out by regression

analysis.

Coefficient of Determination (Determining Coefficient)

The determination coefficient analysis was used to determine the percentage of

contribution (share) of the influence of the human resource management quality variable

(X) on the company's performance (Y). The results of the calculation process carried out

using SPSS can be seen in the table below:

Table 7

Model Summary

Model

R Square

Adjusted R

Square

Std. Error of

the Estimate

.917

.841

.834

3.81894

a. Predictors: (Constant), Kualitas Manajemen SDM

Based on the calculation above, a value of (r)² of 0.841 or 84.1% of the variability

of the company's performance occurred due to the quality of resource management. In

other words, the influence of the human resource management quality variable (X) on the

company's performance (Y) is 84.1%, and the remaining 15.9% is influenced by other

factors that in this case are not researched by the author.

Simple Linear Regression Analysis

A simple regression between the human resource management quality variable (X)

and the company's performance variable (Y), can be seen as shown in the table below:

The Influence of HR Management Quality on Improving the Performance of Contracting

Companies in North Sumatra

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 2793

Table 8

Coefficients

Model

Unstandardized

Coefficients

Standardized

Coefficients

Say.

Std. Error

Beta

(Constant)

.582

6.131

.095

.925

Quality of HR

Management

.851

.079

.917

10.785

.000

a. Dependent Variable: Company Performance

From the results of computer calculations with the SPSS program, it is known that

the constant price from the regression analysis of the variable pair of Human Resource

Management Quality (X) to Company Performance (Y) is obtained as a regression

equation:

After the calculation above, it is known that a simple regression between the human

resource management quality variable (X) to the company performance variable (Y) can

be interpreted that there is a regression model, namely

A constant of 0.582 states that if there is no increase in the value of the human

resource management quality variable (X), then the company's performance (Y) is 0.582.

The regression coefficient of 0.851 states that every increase in the quality value of human

resource management (X) will give an increase in the quality of human resource

management by 0.851.

Partial Correlation Coefficient Significance Test (T-test)

To test the hypothesis or alleged influence (correlation) between the human

resource management quality variable (X) on the company performance variable (Y) with

the following statistical formulation:

Ho: The human resource management quality variable has no influence (correlation) on

the company's performance variable

H1: The human resource management quality variable has an influence (correlation) on

the company's performance variable

The stages in hypothesis testing are as follows:

a. Initial hypothesis

Ho: ß ≠ 0, there is no influence between the quality of human resource management

and employee performance

H1: ß > 0, there is an influence between the quality of human resource management

and employee performance

Moses Hasiholan Septian Tampubolon, Gina Cynthia Raphita Hasibuan, M. Ridwan Anas,

Ricky Bakara

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2794

b. Correlation Test Formula (t calculate)

10,785

c. Compare the observation results with the table test

T table = t ( α ; df = n-2 )

α =5% = t ( 0,05 ; pdf = 24 – 2 )

= 0,05 ; 22

= 2,074

d. Hypothesis Test Results

Because t counts > t table (10,785 > 2,074), Ho is rejected and H1 is accepted,

meaning that there is a significant influence between the quality of human resource

management and a positive and significant effect on the company's performance.

From the calculation of a simple determination coefficient, a regression equation is

obtained: The constant is 0.582. stated that if there is no increase in the value of the human

resource management quality variable (X) then the company's performance (Y) is 0.582.

The regression coefficient of 0.851 states that every increase in the value of human

resource management quality (X) will provide an increase in company performance of

0.851.

Based on the data listed in the table above, the correlation value between the human

resource management quality variable (X) and the company's performance (Y) is 0.917

or 91.7% in the quadrant of 0.80 – 1,000 with a very strong category, this means that the

influence of the human resource management quality variable (X) on the company's

performance (Y) is very strong and positive

Based on the calculation above, a value of (r)² of 0.841 or 84.1% variability in the

quality of human resource management occurred due to the company's performance. In

other words, the influence of the human resource quality management variable (X) on the

company's performance (Y) is 84.1%, and the remaining 15.9% is influenced by other

factors that in this case are not researched by the author.

Based on several studies such as those conducted by Dhita Gusfita Sari, Heriyanto,

and Andrian Noviardy at PT Waskita Beton Precast, Tbk Batching Plant Palembang

Airport, it was concluded that there is a strong and positive relationship between the

quality of human resources and employee performance. Next in the previous research by

(ZAINUDDIN, 2021), MM and Woro Dyah Pratiwidi PT. Petrosea Tbk, Tangerang also

concluded that there is an influence between performance management variables on the

quality of human resources with strong and positive categories.

In the wider population scope, in the research of A.A Diah Parami Dewi, I Gusti

Ketut Sudipta, and Dewi Suci Setyowati in the research Analysis of Human Resources

Aspects on Performance in Construction Projects in Badung Regency; concluded that

Human Resources (competence, motivation, loyalty, work discipline) partially had a

positive effect on employee performance in construction service companies in Badung

Regency and showed that there was a strong and positive correlation between competency

aspects, motivation aspects, loyalty aspects, and work discipline aspects on performance.

The remaining 53.8% is caused by other factors. Likewise, a previous study entitled

The Influence of HR Management Quality on Improving the Performance of Contracting

Companies in North Sumatra

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 2795

Human Resource Quality in the Era of Industry 4.0 Construction Services Case Study of

Construction Service Companies in Malang City written by (Winarti, 2018) and (Andius,

2019), concluded that the lower motivation, technical expertise, and knowledge affect the

quality of human resource work. So the assessment of the quality of human resource

performance in construction service companies in Malang City is 51%.

In addition, in a study conducted by Natalicio Pinto, and Dr. Anton Soekiman with

the title The Influence of the Quality of Human Resource Management (HRM) on the

Performance Improvement of Contracting Companies in the Implementation of

Construction Projects in Timor Leste, it was concluded that the quality of human

resources in the implementation of construction projects in Timor Leste simultaneously

affected the performance of improving contractor companies in Timor Leste. This is in

line with one of the conclusions of a previous study in the same year (2022) entitled

Influence of Human Resources Management Practices on Organisational Performance of

Construction Firms: A Review by Kingsley Sunday Ihedigbo and Richard Ajayi Jimoh,

namely that the success of an organization depends on the effective and efficient use of

human resources. In every project-based industry, such as the construction industry,

project performance is related to human resource effectiveness and human resource

management practices.

Conclusion

Based on the results of the research and data analysis that has been carried out, the

conclusion of this study is:

1. In this study, the analysis of the quality of human resource management applied by

contracting companies in North Sumatra with good conditions was 64%. This shows

that most of the performance of construction companies in North Sumatra is in good

condition.

2. Measurement of the performance of contractor companies in North Sumatra. With

indicators such as quality, quantity, timeliness, effectiveness, independence,

transformation, and maintenance in very good condition at 38%, good condition at

50%, and indecisive at 13%.

3. The quality of human resource management has a positive and significant influence

on the performance of contractor companies by 84.1%; The remaining 15.9% was

influenced by other factors that in this case were not researched by the authors.

Moses Hasiholan Septian Tampubolon, Gina Cynthia Raphita Hasibuan, M. Ridwan Anas,

Ricky Bakara

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2796

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