p-ISSN: 2723-660 e-ISSN: 2745-5254
Vol. 5, No. 10 October 2024 http://jist.publikasiindonesia.id/
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4616
Human Capital Plan Analysis in Improving Competitiveness
and Productivity at FranchiseGlobal.com
Bakir1*, Edi Hamdi2, Rhian Indradewa3, Ferryal Abadi4
Universitas Esa Unggul, Indonesia
*Correspondence
ABSTRACT
Keywords:
Human Capital Plan;
competitiveness;
productivity; McKinsey 7S
Framework;
FranchiseGlobal.com
This research aims to analyze the Human Capital Plan strategy
implemented by FranchiseGlobal.com to increase the
competitiveness and productivity of the company. This research
collects data through interviews, documentation, and direct
observation using a qualitative descriptive approach. This study
also evaluates the implementation of McKinsey's 7S Framework
in the Human Capital strategy at FranchiseGlobal.com. The
results showed that FranchiseGlobal.com has implemented a
strategy divided into short, medium, and long term to improve
recruitment, employee development, and talent retention.
Although the company has made progress in HR management,
there are still challenges in building an inclusive corporate culture
and integrating new technologies in the HR management process.
This research concludes that the Human Capital Plan
implemented at FranchiseGlobal.com effectively supports
company growth but requires improvement in technology and
cultural inclusion.
Introduction
The franchise industry is experiencing significant growth in today's digital era,
especially with online platforms facilitating information and connections between
franchisors and prospective franchisees. FranchiseGlobal.com is an online media that
provides information and franchise business opportunities. The success of companies in
this industry is determined by the business model and technology used and the quality of
their human resources (Collings et al., 2019).
Human Capital is key to improving a company's competitiveness and
productivity. Effective Human Capital management can help companies recruit, develop,
and retain quality talent who can adapt to industry changes and innovations (Dessler,
2020; Harvard Business Review, 2019). FranchiseGlobal.com realizes the importance of
a structured Human Capital Plan to achieve short-, medium---, and long-term goals and
strengthen its franchise industry position.
Despite having the vision to become the leading global franchise portal,
FranchiseGlobal.com faces various challenges in managing and developing effective
Human Capital. One of the main challenges is how the company can recruit and retain
Human Capital Plan Analysis in Improving Competitiveness and Productivity at
FranchiseGlobal.com
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4617
quality talent amidst fierce competition in the digital industry. In addition, increasing
employee competence so that it is always in line with industry and technological
developments is also an important priority. FranchiseGlobal.com must formulate a
strategy to build an inclusive and innovative corporate culture that encourages employee
creativity and collaboration. In addition, the company is also faced with the need to
integrate the latest technology in human resource management to increase efficiency and
productivity (Storey, 2014). Without the right Human Capital strategy,
FranchiseGlobal.com risks experiencing a decrease in productivity and competitiveness,
which can hinder business growth and the company's long-term goals.
This research emphasizes the critical importance of financial planning as a core
factor for business competitiveness and productivity in a digital franchise platform like
FranchiseGlobal.com. The rationale for this study stems from the rapid growth of the
digital franchise industry, where companies must not only focus on technology and
business models but also on financial sustainability to remain competitive. In a highly
competitive market, FranchiseGlobal.com needs to optimize its financial resources to
maintain a stable cash flow, invest in new opportunities, and ensure long-term
profitability (Armstrong & Taylor, 2023; Wright & McMahan, 2019). The financial
planning directly influences the company's ability to scale its business, attract new
franchisees, and adapt to changing market conditions. By thoroughly analyzing financial
strategies, this research provides key insights into how FranchiseGlobal.com can leverage
its financial planning to achieve sustainable growth and enhance its position in the market.
Additionally, this study highlights the role of financial planning in boosting productivity
by improving resource allocation and reducing operational inefficiencies (Caligiuri et al.,
2024). Several previous studies have shown the importance of human capital in
improving company performance and competitiveness. According to Becker and Huselid
(2019), investment in employee development positively affects company productivity and
profitability. In addition, research by Ulrich (2015) emphasizes the role of Human Capital
strategies in creating competitive advantage by developing employee skills and
competencies. In the context of the franchise industry, research by Rohayani (2018)
shows that franchise companies with structured employee training and development
programs can improve service quality and customer satisfaction. However, limited
research still focuses on implementing the Human Capital Plan on digital franchise
platforms like FranchiseGlobal.com.
This research is important to fill the literature gap regarding the role of the Human
Capital Plan in increasing competitiveness and productivity in digital-based franchise
companies. FranchiseGlobal.com can optimize its human resources to achieve its
business goals by understanding effective Human Capital strategies and implementation.
In addition, the results of this study are expected to make a practical contribution
to companies' formulation of employee development policies and programs. For the
industry, this research can be a reference for similar companies that manage human
capital to achieve a competitive advantage.
Bakir, Edi Hamdi, Rhian Indradewa, Ferryal Abadi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4618
This research aims to analyze the Human Capital Plan strategy implemented by
FranchiseGlobal.com in its efforts to increase the competitiveness and productivity of the
company. In addition, this research also aims to identify key factors in Human Capital
management that contribute to the achievement of company goals. Based on these
findings, this research will provide recommendations that can be used to optimize the
Human Capital Plan so that it can support the growth and development of the company
more optimally. By achieving these objectives, it is hoped that FranchiseGlobal.com can
develop a more effective and efficient Human Capital management strategy and provide
added value to related stakeholders.
Research Methods
This research uses a qualitative descriptive method with a case study approach at
FranchiseGlobal.com. This method was chosen to deeply understand the Human Capital
Plan strategy implemented by the company and identify key factors that contribute to
increasing competitiveness and productivity. The data used in this study consisted of
primary and secondary data. Primary data is obtained through semi-structured interviews
with FranchiseGlobal.com management, especially from the Human Capital division and
related stakeholders. Meanwhile, secondary data was collected from internal company
documents such as financial reports, human capital reports, relevant articles, and previous
research. Data collection techniques include in-depth interviews, documentation, and
direct observation of the work environment at FranchiseGlobal.com to see how HR
management strategies are implemented.
The research instruments were validated through triangulation. Data from
interviews, documentation, and observation were cross-checked to ensure consistency
and reliability. Furthermore, member checking was employed, where initial findings were
shared with the interview participants to verify the accuracy of the data and
interpretations. This process enhanced the credibility of the research result.
Data analysis uses qualitative methods through data reduction, presentation, and
conclusion drawing. The data that has been collected will be organized and grouped
according to the research focus, namely the Human Capital Plan strategy, McKinsey's 7S
Framework, and key factors in Human Capital management. The analysis results are
presented as narratives, tables, and diagrams. This research uses triangulation techniques
to ensure data validity by comparing the results of interviews, documentation, and
observation. Using McKinsey's 7S Framework as the basis of analysis, this research
evaluates seven important organizational elements related to Human Capital
Management: Strategy, Structure, Systems, Shared Values, Style, Staff, and Skills (Putra
et al., 2019).
The Human Capital Plan is pivotal for companies like FranchiseGlobal.com
because it ensures the organization's workforce can adapt to market demands,
technological advancements, and industry competition. A robust Human Capital Plan
improves a company’s ability to attract and retain top talent, maintain productivity, and
ultimately secure its competitive position in the market. For readers unfamiliar with the
Human Capital Plan Analysis in Improving Competitiveness and Productivity at
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4619
term, the Human Capital Plan serves as the company’s blueprint for managing its most
valuable assetits people.
Results and Discussion
Human Capital Goals and Objectives
The goal of Human Capital at FranchiseGlobal.com is to increase competence,
recruit quality talent, and innovate social media to strengthen the position in the franchise
industry (Boxall & Purcell, 2016).
Table 1, Human Capital Goals and Objectives
Period
Destination
Target
Short-
term (Y
0 to Y 2)
Employee
Recruitment and
Development
1. 80% annual training participation
2. 5 workshops and three mentoring programs per year
3. 30% increase in qualified candidates
4. 20% increase
in quality of
candidate selection
Recruitment Process
Optimization
1. Reduce recruitment process time
by 25%
2. 15% increase in qualified candidates with three innovative
strategies
BNSP Certification
for Specific Positions
1. 70% of employees get certified within two years
2. 4 training sessions and exam simulations per year
Building an Inclusive
Corporate Culture
1. 3 team building activities & 2 diversity initiatives per year
2. 25% increase in internal creativity index
Medium-
Term (Y
2 to Y 4)
Internal Leadership
Development
1. 30% internal promotions to leadership positions
2. 5 leadership training sessions, three managerial workshops
per year
3. 40% of employees have customized career plans
Improved Welfare
Package
1. 15% increase in satisfaction through annual review
2. 10% increase in retention from satisfaction survey
3. 2 wellbeing programs per year
Creating a Positive
Work Environment
1. 20% increase in life balance satisfaction
2. 4 team building activities, two feedback sessions per year
3. 10% increased motivation through recognition program
Long-
Term (Y
4 to Y 5)
HR Team
Management in
Global Branches
1. 100% operational standard compliance
2. 90% uniformity of implementation
3. 80% increased collaboration between teams
Integration of Latest
Technology in HR
Management
1. 95% of employees familiar with new technology within
six months
2. 85% employee satisfaction with new technology
Strengthening
Reputation as a Best
Employer
1. 15% increase in talent retention
2. 5 industry awards per year
3. 25% increase in high-quality candidate applications
Source: Author, 2023
Bakir, Edi Hamdi, Rhian Indradewa, Ferryal Abadi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4620
Human Capital Strategy
FranchiseGlobal.com's Human Capital strategy enhances competency,
technology, and data analysis through training and talent recruitment, supported by
McKinsey's 7S framework (Sparrow, 2021).
Figure 1. McKinsey's 7S Framework
Source: McKinsey, (2008)
Table 2. Implementation of the McKinsey Model 7S Framework
Elements
Brief Description
Structure
The organizational structure supports skill development and innovation.
Systems
Systems for training, recruitment, talent retention, and data analysis.
Shared Values
Core values that support innovation, quality, and creativity.
Style
Leadership that encourages creativity and collaboration.
Staff
Focus on quality staff development, retention, and inclusion.
Skills
Development of technical and interpersonal skills as per industry trends.
Source: Writing Team, 2023
Corporate Culture and Values
Corporate culture and core values influence growth. The 'Soft' components of
McKinsey's 7S Framework are skills, people, leadership style, and support for human
capital strategies.
Artifact
Corporate culture artifacts, such as the tagline "World Franchise Portal," reflect
FranchiseGlobal.com's focus on the global franchise industry and reinforce its image as
a market leader.
Company Logo
The FranchiseGlobal.com logo, in red with a globe symbol, reflects global energy
and reach. A large "F" and modern typography emphasize franchising and brand
authenticity.
Figure 2. FranchiseGlobal.com logo
Human Capital Plan Analysis in Improving Competitiveness and Productivity at
FranchiseGlobal.com
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4621
Source: Writing Team, 2023
Office Layout
FranchiseGlobal.com's office layout is designed for comfort and productivity,
with desk placement, collaboration facilities, and flexibility to support change.
Figure 3. Employee Workspace
Source: Writing Team, 2023
Uniform
The blue shirt uniform used by FranchiseGlobal.com employees reflects the
consistency of the brand and corporate identity through the logo design elements. It
creates a professional impression and strengthens the company's image.
Figure 4. FranchiseGlobal.com Employee Uniforms
Source: Writing Team, 2023
Company Value
The company values, Real, Focus, Optimal, Responsible, Respect, Value, and
Dedication-shape employees' character and support FranchiseGlobal.com's vision and
strategy.
Believe/Assumption
HR assumptions at FranchiseGlobal.com include the application of corporate
culture, maximum service, innovation, and adaptation. Violations are punished,
compliance is rewarded, and certain criteria-based assessments are used.
Bakir, Edi Hamdi, Rhian Indradewa, Ferryal Abadi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4622
Table 3. HR Assumptions
Positive
Negative
Work with sincerity
Violation of the IKHLAS
assumption
Produce real work
Does not produce real work
Focus on process and outcome
Loss of focus
Work optimally
Work is not optimal
Responsible
Breach of responsibility
Always respect & appreciate
Does not show respect
Become an expert and keep learning
Does not show expertise
Upholding religious, moral, and social
values
Violation of values
Work with high dedication
Does not show dedication
Source: Writing Team, 2023
Organization Structure
FranchiseGlobal.com's organizational structure is designed to achieve the
company's HR objectives. It describes each division's positions, responsibilities, and
functions. Figure 7.6 shows the structure to be implemented.
Figure 5. Organizational Structure of FranchiseGlobal.com
Source: Writing Team, 2023
Job Description
Writing job descriptions at FranchiseGlobal.com is important for clear
responsibility and authority. In addition, the company proposes teamwork to maximize
the potential of resources by supporting each other.
Human Capital Plan Analysis in Improving Competitiveness and Productivity at
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Human Capital Planning
FranchiseGlobal.com has prepared detailed Human Capital planning and
recruitment schemes to support the need for quality human resources.
Recruitment Scheme
Internal Recruitment
1. Job Posting:
Announcing job openings via email and posters in the office.
Employees can provide recommendations if they have acquaintances who meet
the criteria.
Announcements are placed in easily visible areas of the office.
External Recruitment
1. Advertisement Method:
External recruitment is conducted through advertisements on online platforms and
cooperation with third-party partners.
Stages of Recruitment Process (Both Internal and External)
Application Submission: Receive applications from prospective employees.
Initial Selection: Screening incoming applications.
Field Test: Conduct tests according to the field of work.
Interview: Conducting interviews with prospective employees.
Final Selection Results: Determines the shortlisted candidates.
FranchiseGlobal.com's recruitment process aims to get the best candidates
according to the company’s skills, culture, and values through detailed strategies and
methods.
Figure 6. FranchiseGlobal.com Recruitment Scheme
Source: Writing Team, 2023
Bakir, Edi Hamdi, Rhian Indradewa, Ferryal Abadi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4624
2. Training and Development
FranchiseGlobal.com focuses on employee training through four stages: needs
identification, planning, implementation, and evaluation to support performance and
innovation.
Figure 7. Stages of Employee Training and Development
Source: Writing Team, 2023
Here in the table below, FranchiseGlobal.com categorizes the training categories
that will be carried out on employees:
Table 4. HR Training Schedule for the first year
No.
Inhouse Training
Year 1 (Month)
1
2
3
4
5
6
7
8
9
10
11
12
1
New Employee Orientation
2
Business Model Introduction
3
Excellent Service
4
Time Management
5
Team Building
6
It Innovation
7
Internal Audit
Source: Writing Team, 2023
As for the employee development that FranchiseGlobal.com will do is as follows:
Table 5. Employee Development Path
Source: Writing Team, 2023
Employee Status
Employee status at FranchiseGlobal.com refers to Law No. 11 of 2020 concerning
Job Creation Article 56 paragraph (1), which divides employee status into:
Development Path
Relevance
Competency Test
Selected employees
Career Path
Selected employees (as per Performance Evaluation)
Job Rotation
They are conducted in the 5th year or according to the company's
Long Term, considering the stability of the division.
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1. PKWT (Fixed Time Work Agreement) Employee: Contract or temporary
employees who can be appointed permanent employees after the contract period
according to the company's needs.
2. PKWTT (Indefinite et al.) employees: Permanent employees with continuous
employment status without time limit, except in the event of layoff or retirement.
Working Time and Hours
FranchiseGlobal.com applies a working time of 8 hours per day and 40 hours a
week according to applicable regulations. The working time applied is:
Monday-Friday: 08.00 - 17.00 WIB
Break (Monday-Thursday) : 12.00 - 13.00 WIB
(Friday) : 11.30 - 13.00 WIB
Flex Time : Marketing & Sales
Employee Performance Appraisal
FranchiseGlobal.com conducts annual performance appraisals in two stages: mid-
year appraisal for early improvement and year-end appraisal for target evaluation. The
results are used to design the following year's strategy.
Figure 8. Performance Appraisal Cycle
Source: Writing Team, 2023
FranchiseGlobal.com uses a balanced scorecard to improve divisional
performance according to the company's vision and goals, supporting achieving business
objectives (Price, 2016).
Bakir, Edi Hamdi, Rhian Indradewa, Ferryal Abadi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4626
Figure 9. Balanced Scorecard framework
Source: Writing Team, 2023
Table 6. KPI Score and Compensation
KPI Score
Bonus
Salary Increase
> 95
10%
89 - 94
8%
82 - 88
6%
75 - 81
4%
<75
-
4%
Source: Writing Team, 2023
Table 7. Employee Rating Scale
Value
Results
Benchmark
Description
5
Highly Effective
120%
Very special, always above target
4
Effective
>100% - 120%
Exceeding targets, often above expectations
3
Good
80% - 100%
Achieved the set target
2
Needs Improvement
50% - 80%
Has not reached the desired target
1
Poor
<50%
Far below target, not meeting expectations
Source: Writing Team, 2023
Compensation system
FranchiseGlobal.com values achievement and reduces employee turnover so that
the company provides compensation. The following is the compensation system set by
FranchiseGlobal.com:
a. Direct Compensation
Direct compensation at FranchiseGlobal.com is a fixed monetary reward based on
a certain time, including several compensation systems such as:
Basic Salary: Fixed salary as per regional minimum wage standards.
Fixed Allowances: Additional monthly wages, such as job and family allowances,
independent of attendance or performance.
Non-permanent Allowance
Human Capital Plan Analysis in Improving Competitiveness and Productivity at
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4627
Incentives: Additional money beyond salary for extra tasks, as per
FranchiseGlobal.com SOP, to motivate employees.
Overtime: Overtime pay is 1/173 of the base salary per the company's requirement.
b. Indirect Compensation
Benefits: THR of 1x basic salary, BPJS Ketenagakerjaan, and BPJS Kesehatan.
Leave: At least 12 days of annual leave per Law No.11 of 2020. The HRIS system
is used to administer compensation and manage attendance.
HR Cost Projections
HR cost projection FranchiseGlobal.com estimates employee needs and costs for
budget planning (Noe et al., 2021). This affects the company's operating budget and must
be considered in planning for the next five years.
Table 8. Estimated Number of Employees of FranchiseGlobal.com
Number of Employment
No.
Level
Position
Division
Total Number of Employees
Y1
Y2
Y3
Y4
Y5
1
BOD
Chief Executive Officer
Business
1
1
1
1
1
2
Staff
Secretary
Business Support
1
1
1
1
1
3
Manager
Finance Accounting & Tax
Finance
1
1
1
1
1
4
Staff
Finance Administration
Finance
1
1
1
1
1
5
Staff
Accounting & Tax
Finance
1
1
1
1
1
6
Manager
Human Resource & GA
Business Support
1
1
1
1
1
7
Staff
HR & GA Staff
Business Support
1
1
1
1
1
8
Manager
Risk Management
Business Support
1
1
1
1
1
9
BOD
Editor in Chief
Editorial
1
1
1
1
1
10
Manager
Managing Editor
Editorial
1
1
1
1
1
11
Staff
Journalist
Editorial
4
4
4
4
4
12
BOD
Chief Marketing Officer
Marketing
1
1
1
1
1
13
Manager
Marketing Manager
Marketing
1
1
1
1
1
14
Staff
Account Executive
Sales
5
5
6
10
10
15
Staff
Design Graphics
Artisitik
1
1
2
2
2
16
Staff
Video Editor
Artisitik
1
1
2
2
2
17
Staff
Content Creator & Marketer
Digital Marketing
1
1
1
1
1
18
Staff
SEO Specialist
Digital Marketing
1
1
1
1
1
19
Staff
Partnership & Promotion
Promotion
1
1
1
1
1
20
Staff
Event Management
Event
1
1
1
1
1
21
Staff
Adm & Business Support
Administration
2
2
2
2
2
22
Staff
Data and Research Staff
Research
1
1
1
1
1
23
Staff Sus
IT, Systems & Web
Development
IT & System
1
1
1
1
1
24
Staff
Office Boy
GA
1
1
1
1
1
25
Staff
Messenger
GA
1
1
1
1
1
26
Staff
Driver
GA
1
1
1
1
1
Total
34
34
37
41
41
Bakir, Edi Hamdi, Rhian Indradewa, Ferryal Abadi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4628
Note:
Short Term (Y 0 - Y2)
Medium Term (Y2-Y4)
Long-term (Y4-Y5)
Source: Writing Team, 2024
Discussion
This study analyzes FranchiseGlobal.com's Human Capital Plan strategy and
evaluates its implementation in increasing the company's competitiveness and
productivity. Based on the results of interviews, documentation, and
observations, FranchiseGlobal.com has implemented several strategic steps to manage
human resources effectively. This strategy is divided into three short-, medium-, and long-
term stages, designed to optimize employee recruitment, development, and retention
(Cascio & Boudreau, 2020; Rees & Smith, 2021).
FranchiseGlobal.com focuses on recruiting quality talent and developing
employees through training and mentoring programs in the short-term phase. The main
target in this period is to increase employee participation in training to 80% and create a
more efficient recruitment process with a 25% reduction in processing time. In the
medium term, the company focuses on internal leadership development, with a target of
30% internal promotion to leadership positions and improving employee welfare
packages. On the other hand, in the long term, FranchiseGlobal.com focuses on managing
HR teams in global branches and integrating the latest technology to support HR
management processes. Observations show that implementing McKinsey's 7S
Framework has helped the company maintain alignment between organizational
structure, corporate culture, and core values, significantly improving team collaboration
and employee productivity (Abadi et al., 2023).
However, FranchiseGlobal.com still faces several challenges, especially in
building an inclusive company culture and ensuring every employee can access training
relevant to industry needs. Although the company has made good progress, especially in
improving the quality of recruitment and leadership development, challenges in terms of
employee retention and the implementation of new technology still need improvement.
Implementing technology as part of human capital management was also identified as an
area for continuous improvement, with a target of 95% of employees adapting to the latest
technology within six months (Prima et al., 2021).
Overall, FranchiseGlobal.com's Human Capital Plan strategy has proven to
support company growth, although there is still room for improvement, especially
regarding technological innovation and work culture inclusion. Evaluating this strategy
provides important insights for companies to continue adapting and updating HR
management plans in accordance with changing industry trends and internal needs.
Human Capital Plan Analysis in Improving Competitiveness and Productivity at
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4629
Conclusion
Based on the research results, it can be concluded that the Human Capital Plan
strategy implemented by FranchiseGlobal.com effectively supports the improvement of
the company's competitiveness and productivity. This strategy is focused on improving
recruitment, employee development, and talent retention through training, mentoring, and
internal leadership development programs. FranchiseGlobal.com has leveraged
McKinsey's 7S Framework to align organizational elements, such as structure, shared
values, and employee skills, positively impacting team collaboration and efficiency.
However, the company still faces challenges in building an inclusive work culture and
optimizing technology integration in HR management. Improvements in this aspect are
important to ensure that all employees can adapt to technological changes and feel
involved in the company's development process. Overall, the Human Capital Plan
strategy at FranchiseGlobal.com has proven to be effective, but the company needs to
continue to make adjustments to deal with the evolving industry dynamics.
FranchiseGlobal.com is advised to increase investment in digital tools such as AI-
based recruitment systems and data analytics for performance evaluation and ensure all
employees have digital literacy through continuous training to adapt to technological
changes. The company should also strengthen efforts to build a more inclusive work
culture by making diversity and inclusion a core part of the organizational culture and
encouraging inter-divisional collaboration to increase innovation and employee
satisfaction. In addition, FranchiseGlobal.com needs to conduct periodic reviews of the
Human Capital Plan to ensure this strategy remains aligned with the company's evolving
needs and market changes. These recommendations will help FranchiseGlobal.com
optimize human resource management and maintain success and sustainability in the
competitive digital franchise industry.
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