Management practices on strategic human resource towards employee performance through organizational commitment

Indonesia has entered international competition in regional sector due to the change on various business structures and behavior in globalization era. The international competition does not merely limit on the product competition but also on the human resource management. The enhancement on competition intensity has influenced the need escalation for organizations to keep improving their management organization performance, especially in human resource’s ability. It emphasized on the strategic approach which involved the relationship between company and its human resource management within the field of structure, culture and development. This study aimed to identify the influence of management practices on strategic human resource, including training selection, empowerments and performance appraisal, toward employee performance through organizational commitment. The methodology used in this study was quantitative methodology using survey questionnaire to the 145 employees of PT Petrokimia Gresik as the sample study. The findings of the study showed that management practices on strategic human resource had either direct or indirect positive influence towards the employee performance through organizational commitment. In conclusion, the organizational commitment and employee performance could be increase if the management practices on strategic human resource are good. Moreover, the enhancement of organizational commitment could affect the employee performance improvement.


INTRODUCTION
In globalization era, Indonesia has entered the international competition in regional sector due to the change on the various business structures and behavior. The competition did not merely limit on the product competition but also on the human resource management. The competition intensity has influenced the need escalation for every organizations or companies to keep improving their management organization performance, especially in human resource's ability aspect. It emphasized on the strategic approach which involved the relationship between company and its human resource management within the field of structure, culture and development. According to Kochan and Dyer (1993), the practice of strategic human resource's policy would give effect in organization performance improvement. Katidjan et al (2017) said that if the quality level of human resource within a company is high then the employee performance level would be easier to increase and vice verse.
PT Petrokimia Gresik was one of the fertilizer company subsidiaries of BUMN Company of PT Pupuk Indonesia Holding Company which had a thousand of employees from various functions and positions. With huge number of employees, assuredly might cause the company in having complex problems, particularly related to its management. However, the practice of strategic human resource management became very important to be done. In this study, the phenomenon of globalization and competitive competition on human resource triggered PT. Petrokimia Gresik to increase the implementation of management practice on strategic human resource related to the organizational commitment and employee performance. Alwi (2001) stated management practice on strategic human resource as an effort to provide human resource with high competence and motivation through the practices of human resource management functions. In strategic management's perspective, it was a part of implementation process of business strategy. It was formulated and done synchronously within the whole context of strategy in functional level, including; marketing, finance, production and others. The strategic human resource management was lie on the empowerment efforts, developing and maintaining human resource within organization due to optimal contribution toward the organization goals based on skill, knowledge and ability. Human resource management activity was the application of human resource functions referred to the external environment condition which developed and interacted with organization environment (Assauri, 2000;Simamora, 2004). Some variables on practice of strategic human resource management by experts could be seen below: Table 1 Variables on practice of strategic human resource management Wanet et al, 2002Herel and Tzafrir, 1999Delaney and Huselid, 1996Wahyuni, 2009 Based on the arguments above, this study adopted four variables; training, selection, empowerment and performance appraisal, since these variables were representing the management practice on strategic human resource within organization.

Practice Relation -Management Practice on Strategic Human Resource to Employee Performance
According to Hatani (2010), training, in partial, had significant influence on working achievement. If an organization wanted to increase its employee performance, then doing training was the main priority within the strategic human resource. Delery and Doty (1996) said that management strategy of human resource which described on management practice on strategic human resource was training with direct influence on the enhancement of organization performance. It was in accordance with Wan et al (2002) and Herel and Shay (1999) arguments that said the management practice on strategic human resource was seen through the training indicators and other management practices with significant influence on company performance.
A research by Widyawati (2010) claimed that: (1) the management practice on strategic human resource, including; selection, training, empowerment, performance appraisal, had positive and significant influence toward the employee performance, (2) management practice on strategic human resource (selection, training, empowerment, performance appraisal) had positive and not significant influence toward company performance, (3) employee performance had positive and significant influence on company performance, (4) management practice on strategic human resource (selection, training, empowerment, performance appraisal) had indirect and significant influence on company performance through employee performance.
A partial empowerment had significant influence on working achievement (Hatani, 2010). Supported by the universalistic theory which stated that empowerment could give direct influence for organization performance improvement (Delery and Doty, 1996). Wan et al (2002) and Herel and Shay (1999) also stated that empowerment had significant effect on company performance.
Yanti in Widyawati (2010) said that performance appraisal had significant influence and direct effect on employee performance. The effectiveness of the use of performance appraisal in pushing the employee performance was caused by the function and role from the performance appraisal itself. Since the performance appraisal process was done to define the total amount of compensation which given and as a basic for company to decide the employee promotion policy. Thus, the performance appraisal process was able to support the accomplishment of strategic organization goals. Similar to Wan and Kok (2002) and Locher and Teel (1977) who also stated that performance appraisal affected on the employee performance. Suswati and Busianto (2013) stated that affective commitment and continuance commitment partially had positive and significant influence on employee performance. This was in accordance with Shaw et al (2003) that within the commitment dimension, affective commitment was determined as individual performance. Individual with high affective commitment had firm emotional closeness toward organization (Suswati and Budianto, 2013). It meant that individual would have motivation and desire to contribute against organization rather than individual with low affective commitment. Suswati and Budianto (2013) stated that normative commitment had no significant influence on employee performance. Winner stated that normative commitment toward organization could be developed during the socialization process and within the organization (Suswati & Budianto, 2013). Bilmovena (2005) stated that organization commitment had significant influence on employee performance. This was also similar to Rodwell (1998) who stated that the positive influence of organizational commitment on employee performance was either partial or significant.

Relation between Organizational Commitments on Employee Performance
The organizational commitment could influence the performance significantly since the employee with high commitment was active in giving the whole effort for the success of organization. Ivancevich et al (2006) said that an employee with high organization commitment would perceive his and the organization objectives as a private thing. So, committed employee would feel that the company's behalf as his behalf too, also the problem faced by company was his problem.

Practice Relation -Management Practice on Strategic Human Resource to
Organizational Commitment. Paul and Anantharaman (2004) had done a research on professionals in India, they found that training had positive relation on organizational commitment. Training became the most favorite factors which able to improve the affective commitment, high loyalty and reduce the early retirement (Herrbach, 2009). Lamba and Choudhary (2013) stated that in banking sector, training was also one of the factors with significant role affecting the organizational commitment. In informational technology sector, the employee commitment was influenced by training. Training activity was not merely build and improve employee ability but also improve the working satisfaction and commitment to organization (Choi and Yoo, 2014;McEvoy, 1997;Herel and Tzafrir, 1999;Kalleberg and Moody, 1994). Chew (2005) claimed that selection was one of the practices which influenced the commitment more than the other practices. Placing the employee in a right position would build high commitment on organization. A good selection result would create employee satisfaction and reduce the desire to quit from the organization. In opposite, employee that came from bad selection would have bigger desire to quit the organization. Some researcher, such as Weiner, Guest, Caldwell, Iles, Meyer & Allen, Storey, Tepstra in Mathebula (2004), were identified the relation between selection and organization commitment development. The candidate would develop the organization commitment if the selection procedure was accurate and fair. It also found positive correlation between the selection process and normative commitment.
Organizational commitment would increase along with the enhancement of the influence of empowerment variable. Delaney and Huselid (1996) stated that empowerment had influence on organizational commitment. Empowerment was the most dominant variable and had direct influence on organizational commitment (Nursyamsi, 2012). Empowerment gave strength to make decision, thus employee had the feeling of belonging on their job which then influence their affective and continuant commitment.
A study stated that performance appraisal was correlated with the organization commitment of employee significantly (Jaiswal, Ogilvie and Sigh in Choi and Yoo, 2014). Supported by Paul and Anantharaman (2004) that developmental oriented appraisal showed positive correlation with employee's organizational commitment. A good quality of performance appraisal could enhance the commitment and effectiveness of organizational (Fletcher and Williams in Krisma, 2011). It led to the confidence of the employee that affect on the higher organizational commitment (Sweeney and McFarlin in Krisma, 2011).
From the statements above, it showed that the management practices on strategic human resource had influence on the enhancement of employee and company performance. The management practices on strategic human resource were able to increase the capability of human resource, also able to produce uniqueness as strength in facing the competition and transformation of desire and market need. The hypotheses were seen as follow Variable Operational Definition a. Management practices on strategic human resource (X) 1. Training (X1) is a systematic process of employee's behavior transformation to a certain direction due to increase the organizational objectives, with indicator as below (Wan et al, 2002); Organizational commitment was defined as a condition in which an employee who, psychologically, showed his partisanship on a company along with the objective and his desire to withstand in the company. The indicator was referred to Meyer and Allen (2007); affective commitment (Y1), continuant commitment (Y2), normative commitment (Y3) c. Employee Performance (Z) Employee performance was identified as employee's achievement level from organization in doing their job within a certain period. According to Wahyuni (2009) the indicator of employee performance could be seen through; working quantity (Z1), time management (Z2), working quality (Z3), and working initiative (Z4).

METHODOLOGY
This study used explanatory research with quantitative approach as the methodology. Explanatory research explained on the variables position and the relation between one variable and the other variables. This study was held in PT. Petrokimia Gresik, Kebomas, Gresik, East Java as one of the fertilizer company subsidiaries of BUMN PT. Pupuk Indonesia Holding Company. The samples were the employees of PT. Petrokimia Gresik from Eselon V until Eselon III that has working time for more than 2 years. The samples were taken using stratified random sample based on the certain layers that give the same chance to every stratum. The samples obtained were 145 employees. The data were collected using questionnaire and interview and measured using Likert scale.

a. Validity, Reliability and Linearity Test
If the correlation result (r) ≥ 0.30 then the test was a strong construct due to its ability to describe the instrument ability in revealing the data from observed variables. The coefficient score had validity bigger than the critical point (0.30). Thus, it can be said that the whole variables were valid.
Reliability was a standard for precision and accuracy which showed by the research instrument. A construct or variable could be said reliable if it gives alpha score bigger than 0.6. The score of reliability coefficient on each variable was bigger than the critical score for 0.60 which make the whole variables reliable.
b. Path Analysis The calculation of path coefficient used in this study was the standardized regression analysis by looking at the impact both simultaneously and partially for each similarity. The relation among variables was described in table 2 below:   The hypothesis result showed that: H1 : Training had significant influence on organizational commitment. A wide chance to join the training and a support from director made PT. Petrokimia Gresik employees feel recognized and appreciated. The test result showed that a high training influence would make the organizational commitment of the employee high.
H2 : Selection was influenced on the organizational commitment. Some factors, including the duration of selection stage, information on compensation or intensive, comfortable workplace, facility, and career development, influence PT. Petrokimia Gresik employee's organizational commitment. If the selection was good, then the employee's organizational commitment for organization was also good. It indicated that the selection process had direct influence on the enhancement of organizational commitment. H3 : Empowerment had significant influence on organizational commitment. PT. Petrokimia Gresik has been noticed the aspiration from the employee in making decision. The higher impact on empowerment made the higher impact to the organizational commitment of the employees. H4 : Performance Appraisal had significant influence on organizational commitment. Pt Petrokimia Gresik has been done the working evaluation by the director and partner. The result was used as the basic character development of employees. The objective result influenced the employee's commitment within the company. If the performance appraisal influence was high then the organizational commitment was also high. H5 : Training had significant influence on employee performance. PT. Petrokimia Gresik did the training process based on the competition gap among the employees. The facilities and infrastructures were directly supported the continuity of learning process. If training brought good influence then the employee performance would be good too.

H6
: Selection had significant influence on employee performance. PT. Petrokima Gresik had set a high standard and strict selection stages due to get the quality employee. If the selection influence was good, the employee performance would be good too.
H7 : Empowerment had significant influence on employee performance. PT. Petrokimia Gresik had facilitated the employees to deliver their idea and had applied the employee's idea within the working process; hence it had positive impact on employee performance. This was indicating that the high influence on empowerment could lead to a good employee performance. H8 : Performance Appraisal had significant influence on employee performance. PT. Petrokimia Gresik has been done the working evaluation by the director and partner. The evaluation mechanism could trigger the employee to show their best performance. Therefore, the high influence on performance appraisal could lead to a good employee performance. H9 : Organizational commitment had significant influence on employee performance. The employee of PT. Petrokimia Gresik felt hard to leave the company which proved by the low turnover level. The employee was tried to show their best performance due to their desire in spending their career within the company. It indicated that a high organizational commitment could affect the higher working performance of the employees. H10 : Training had indirect influence on employee working performance through organizational commitment. It showed that the higher training influence on organizational commitment could affect the higher employee working performance. If an organization wanted to increase their employees' performance then training could become the main priority. Generally, PT. Petrokimia Gresik had been implemented training system to cover the competency gap among the employees due to support the employee performance, thus the employee feel appreciated and needed by the company. H11 : Selection also had indirect influence on employee performance through organizational commitment. As long as the selection had higher influence on organization commitment, then the employee performance could increase. A long and strict selection stages on recruiting new employee, information on compensation or intensive, comfort working place, facility, and career development were the factors that influence the organizational commitment on PT. Petrokimia Gresik employees. Employees with high commitment on company would give their best performance. H12 : Empowerment had indirect influence on employee performance through organizational commitment. It meant that the higher the empowerment influence the organizational commitment, then the higher the employee performance. Company appreciated and had been applied employees' notion in working process. Employee who had their notion applied would be more committed and passionate in working.
H13 : Performance appraisal also had indirect influence on employee performance through organizational commitment. This meant that the higher performance appraisal on organizational commitment could affect the enhancement of employee performance. An objective performance appraisal had positive influence on employee commitment within the company. This was supporting the target achievement on Individual Performance Target which had been arranged in the early year.
The practical implication of this study was every company had strategy to enhance the employee performance in order to make employee keep on building, improve and keep the organizational commitment high by doing the management practice on strategic human resource which include training, selection, and empowerment and performance appraisal.

CONCLUSIONS
In conclusion, if the management practices on strategic human resource, including; training, selection, empowerment, and performance appraisal are good then the organizational commitment and employee performance could be increased. Also the enhancement of organizational commitment could affect the employee performance improvement. This study was limit on some management practices on strategic human resource which tested for the impact toward the employee performance. However, this study had limited time in observation, thus there were only 4 management practices which could be observed. For further study, another management practices are recommended.