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JURNAL INFOKUM, Volume 11, No.2, 2023 ISSN : 2302-9706

ANALYSIS OF HUMAN CAPITAL MANAGEMENT IN THE MSME

TOURIST ACCOMMODATION SECTOR IN INDONESIA
Ari Widi Prakasa 1, Aries Setiawan 2
1,2
Universitas Tangerang Raya, Indonesia
Email: ariwidi.prakasa@untara.ac.id, ariessetiawan@untara.ac.id

Abstract
Article Info The purpose of this study is to investigate the ways in which small and
Received : 29/03/23 medium-sized tourism accommodations in Indonesia manage their human
Revised : 10/04/23 resources. This study is an analysis of the human capital management
Accepted: 25/04/23 difficulties that are associated with MSME tourist accommodation in
Indonesia. It gathers the most relevant contributions from the most
important works that have been done on the subject. It also derives
conclusions to establish the conditions under which it can be called a
strategic management of human and intellectual resources. These
conditions are determined by the circumstances. In addition to the training
and development of employees and their managers, job security, and
ownership structures, a qualitative approach with descriptive study of
numerous essential aspects of human resource management was carried out.
Keywords: Human capital, Management, MSME, Tourist Accommodation

1. INTRODUCTION
The so-called human capital management is undergoing radical changes in its concept and
application, becoming an important factor for achieving competitive advantage of companies, such as
financial, technological and other types of resources. In the same way, the management and
performance evaluation processes are undergoing major modifications to adapt to the new demands of
the current changing scenario (Efendi, 2019).
The competitiveness of companies is largely due to the quality of their human capital, so that the
skills of employees and their continuous development, where training occupies a fundamental position,
become a permanent factor of competitive advantage. For this reason, devoting time and resources to
acquire, maintain and develop the company's human resource skills is a fundamental strategic objective
(Kasmawati, 2017).
Logically these factors do not affect all companies equally. There are sectors of activity in which
environmental turbulence and uncertainty is less than others and organizations which deal with strategic
changes more frequently than others. However, the notion is that the useful life of workers' knowledge
and skills is becoming shorter and consequently it is necessary to design, today more than ever, enabling
human resource policies to ensure the resilience of human capital. Thus, based on the premise that to
ensure that resilience is not sufficient to attract the best, efforts made during recruitment must be
supplemented and strengthened through adequate training and management policies. In this way, staff
turnover and loss of productivity make companies even more worried about the value of their human
assets (Saragih, 2017).
In recent years, investment planning in training has become one of the main concerns of human
resource managers, as worker training has been considered a fundamental tool when dealing with a
focus-focused approach. quality and flexibility, as well as dealing with increasingly frequent situations
of technological and organizational change. Thus, it can be emphasized that due to the rapid changes in
technology and skills required, consideration of employees as a strategic and competitive factor requires
organizations to invest in their training and development (Riniwati, 2016).
Given that training policies have a clear effect on the characteristics that determine the potential
of human capital as a strategic asset, attitudes towards training, as measured by the effort put into
financing it, must be treated as a strategic aspect. Various ratios make it possible to assess these efforts,
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such as the percentage of employees who have attended the company's training program within a certain
period of time or the relationship between training costs and total labor costs (Subyantoro & Suwarto,
2020).
Training should be considered as an investment and not as a cost, as it is an important corporate
asset that can be profitable in the short and medium term. So, like any other investment, it is necessary
to plan the investment in training to achieve the best results. This plan will be part of an integral human
resource plan so that it responds to the company's strategic goals and needs detected in the field of
human resources and, concurrently, achieves the right level of alignment between decisions related to
training and other relevant decisions in various functions of the personnel area. (Hadi et al, 2022).
Another aspect worth mentioning is the employee turnover rate within the company, which
reveals the extent to which employees are leaving the company. Companies try to track and control
their turnover rate so that they can control employee replacement costs (Pawesti & Wikansari, 2016).
The key to the operating effectiveness of an organization lies not only in the characteristics of its
components (tasks, people, structure, etc.) but in their adequacy with each other as a system.
Organizations are open systems that are constantly being modified by the influence that structures,
groups and individuals have on them. They create interdependence between groups, structures and
individuals. Human capital competencies evolve to accommodate strategic changes. Different action
areas can be defined for each basic competency area. One of them is the analysis of the work
environment which can be measured through various ratios (Ismail, 2017).
The link between the management of human capital in firms and labor rotation is an aspect in
which there is great theoretical coincidence. Both the human capital perspective and segmentation
theory or internal labor market theoretical flows show how turnover matters when there are training
costs that must be borne by workers or companies. If a company pays for the training of a worker and
he leaves, the investment made by the company is lost. Conversely, if a worker is fired after investing
in (especially specialized) training, he will lose capital. That is why companies will try to avoid labor
turnover through various mechanisms. One of the procedures to avoid job rotation is the establishment
of an internal labor market (Syarkani, 2017). In this case, special training is considered as a factor that
is closely related to the formation of the internal market considering special training as a fundamental
element for the emergence of this market.

2. METHODS
This research is a qualitative research that seeks to describe and describe the phenomena that
occur. A qualitative research approach is a process of research and understanding based on methods
that investigate social phenomena and human problems (Sugiyono, 201 1). In this study the researcher
creates complex descriptions, scrutinized words, detailed reports of conducting research in natural
situations. Qualitative research is used if the problem is not clear, to find hidden meanings, to understand
social interactions, to develop theories, to ensure the correctness of data and to study the history of
development (Semiawan, 2010). Considering that this research aims to understand and interpret various
phenomena that exist or actually occur as a feature of qualitative research, in this case how is the
management of human capital in the Tourism Accommodation MSME sector in the city of Bandung.

3. RESULTS AND DISCUSSION

A. Human Capital and MSMEs
"Human capital" can be defined as the knowledge that everyone has, develops, and accumulates
in their academic training trajectory and work trajectory, as well as the individual qualities they possess
such as loyalty, polyvalence, flexibility, etc. which affect the value of an individual's contribution to the
company. Adriani (2019) points out the importance of human capital when he says that “at present
human capital is one of the determining factors that contribute to organizational competitiveness, due
to skills, knowledge, creativity, problem solving abilities, leadership and staff commitment. are some
of the assets required to meet the demands of a volatile environment and achieve the mission of the
organization. Thus, to the extent that the elements that make up human capital are tacit and sustainable,

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they can be considered a source of competitive advantage because they are a valuable resource that is
difficult to imitate and replace and match.
In order to develop a highly motivated, qualified and satisfied workforce, companies must
implement an adequate human resource management strategy. Schuler (1992) pointed out the need to
integrate human resources into corporate strategy, establishing links between human resource practices
and corporate strategic management processes and coordination between different human resource
management. Pfeffer (1994) shows that achieving competitive advantage through people involves
fundamentally changing the way people think about the workforce as well as about relationships with
employees. In this way, companies that adopt this perspective often successfully strategize and stand
out from their competitors. The knowledge and skills of workers to develop work and how they do it
are fundamental elements for the continuity of the company, considering that traditional sources
(technology, financial resources, economies of scale, etc.) are increasingly underpowered. Various
works provide a series of recommendations aimed at gaining a competitive advantage based on proper
management of human capital in companies
Zahra & Pearce (1990) pointed out that depending on the type of strategy followed by an
organization, its managers will adopt certain human resource management practices. Defensive
companies are those that generally maintain a more traditional human resource management system, as
recruiting and selection are usually internal and the remuneration system is usually based on a fixed
salary, although a great deal of importance is placed on the long term. term-oriented training. In contrast,
exploration companies are characterized by using more advanced human resource management systems
such that they employ external recruitment and selection. In addition, the evaluation system is built
based on performance and rewards, as variable remuneration. However, unlike defensive companies,
scouts offer limited and informal training (Deans, 2009).
At this point, it is necessary to note the relevant role that training plays in the operation and
development of an organization such that it is one of the most important processes in human resource
management. Following Aragon et al. (2002) when it comes to making decisions in companies, whether
to carry out training actions or not is a key element, mainly due to the importance of the knowledge
acquired and the possibility of having a qualified workforce with skills. which allows organizations to
become increasingly competitive. Among the competencies, direction is determined by a series of
factors such as the profile of directors, the characteristics of the organizational climate. These two
factors are interrelated to determine the competency of the company's management and include both
"software" and "hardware" elements. of managerial competence. The former refers to the will to act and
the latter determines the ability of the organization to act effectively.
First of all is the profile of the managers. This can be determined by qualifications, it is the result
of your skills and knowledge, talents and personality, and your leadership style or abilities. In addition,
in the managerial profile you can find the "mentality of the manager" which consists of four variables:
his knowledge of the environment (external and internal), his temporal perspective which manifests
relative trust in results, his propensity to take risks, and the system. values, norms, and goals that
motivate and condition them. The second factor refers to the characteristics of the organizational
climate. The mindset and leadership style of managers is a determining factor in organizational culture.
Organizational power structures, along with rewards and incentives, are key elements of organizational
climate (Russel & Sauber, 1995).
In the Micro, Small and Medium Enterprises (MSMEs) sector, to achieve success in the global
market, it requires a highly motivated, qualified and satisfied workforce, which can produce with good
quality and low cost. In an empirical study conducted by Cakranegara & Rahadi (2020) it is verified
that the most competitive MSMEs are those who show greater concern for the company's human factors.
Indeed, those who are more developed in human resource management practices are those who possess
the human capital with the skills and capabilities necessary to maintain a sustainable competitive
position. These organizations are characterized by having a greater international orientation, being more
technologically advanced, investing in R&D, as they manage quality and have a good reputation and
image.

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According to Syarifah et al (2020), the success of MSMEs comes from human hands, so it is
absolutely necessary to implement policies for managing and directing human capital that attract,
motivate and retain qualified and competent personnel. In this sense, several authors point out that
among the main problems of SMEs are the recruitment, motivation and retention of employees. It should
also be noted that various studies have found a positive relationship between human capital management
and business outcomes. In this sense, competent workers are motivated to excel. However, both in
practice and in the professional literature on SMEs, more attention is paid to issues related to financing,
marketing, and planning than to human capital management. Inadequate and inefficient management of
human capital in companies often results in low productivity, high dissatisfaction, and employee
turnover. For this reason it does not provide the necessary value for human capital management a major
cause of failure in SMEs".
One explanation for this result lies in the fact that the activity sector conditions this relationship
in such a way that MSMEs belonging to the industrial sector are the ones that best fit the theoretical
approach analyzed, unlike those belonging to the construction and service sectors which exhibit more
erratic behavior. . For Dhamayanti & Fauzan (2017) the ability of entrepreneurs to manage business
growth is related to two characteristics of their demographic profile: experience and training. In this
sense, Sulastri & Dilastri (2015) shows a positive relationship between experience in business
management, high academic training of entrepreneurs and the growth of MSMEs. However, these
managers lack training in personnel management practices and do not view the use of generally accepted
human resource management practices as critical to increasing productivity. In addition, it is considered
that employers with high levels of training have easier access to alternative employment and are
therefore more amenable to the risks associated with business growth.

B. Human Capital in Tourist Accommodation SMEs

Tourist accommodation is a business that provides accommodation services for tourists for a
period of not less than one stay, can offer other complementary services and the main types of
accommodation are: hotels, inns, motels, cabins, shelters, inns and apart hotels, and the categories start
from one to five stars according to the dimensions and services offered (Revida et al, 2020). Beyond
these general regulations, provinces have established their own regulations and even some
municipalities as well. Within the national accommodation offer are those with a formal organization
with strictly defined roles and functions and mostly with an informal type of organization where tasks
and responsibilities are not strictly defined, in the latter case family-run SMEs.
It is estimated that more than 90% of jobs in Indonesia are generated by individual or family
MSMEs and because of their size, family members have management and implementation duties. SME
entrepreneurs have certain characteristics that often threaten the sustainability of these organizations in
the market. They provide some sort of protection to those who comply with their influence, and serve
as a punishment to those who reject it, they employ a system of rewards and punishments, they act as a
force and record the dimensions of that power.
More than 50% of hotel companies in Indonesia are in the MSME sector. Problems related to
lack of financing and high interest rates, deficiencies in human resource management and the relative
possibility of technological innovation, are also part of the problems that must be faced by hospitality
SMEs in various regions of the country. On the other hand, it is increasingly evident that the traditional
sources of success for firms, such as financial resources, products, and economies of scale, are losing
importance and are less powerful than the knowledge, skills, and attitudes of people, aspects they have
made increasingly vital (Pfeffer 1994).
Concentrating the efforts of business actors to always adapt to contextual conditions and solve
urgent financial problems, makes them underestimate the aspects that are the key to their
competitiveness and which they can control more. These aspects are related to the management and
organization of the company. One of the main aspects that must be addressed is the short term vision
and lack of knowledge to develop policies and strategies in the medium and long term covering issues
related to production management, information, administration, communication, technology, relations
with markets, knowledge and capacity. human capital.
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Several academic studies have verified and demonstrated that knowledge management enables
better service and greater customer satisfaction as a key to sustainable competitive advantage that
enhances business capacity through the right combination of resources and capabilities. So,
entrepreneurs need to stop focusing only on financial aspects and include other aspects related to
intellectual capital management. It has been verified that the combination of the company's human,
organizational, technological and relational resources includes all intangible forms, both obtained and
created by the company, regardless of whether it is worthy of accountability or not, greater than the sum
of the individual elements that compose it (Indiyati, 2014).
Empirical knowledge suggests that some Indonesian hospitality companies have an interest in or
are trying to work on their intangible assets, but for now in an unplanned and unclear way due to a lack
of concrete application tools in practice. In addition, the results of the investigation have determined
that managers and owners of hotel companies in Indonesia appreciate the importance of intellectual
capital management in organizations, but do not know how to do it in a planned manner. Currently there
is no tool or model that can be implemented in their organization and some of the actions taken are
fragmented, not responding to a global strategy.
It also emerged that companies should not only manage their knowledge efficiently but also
measure it through organizational intellectual capital measurement tools, knowing the difficulties that
exist to manage and improving aspects that are not difficult to measure because they are intangible.
While intellectual capital represents the intangible assets of a hospitality company with “human,
structural, relational and technological” capital, knowledge management attempts to formalize and
systematize the processes of identification, administration and control of the same.

4. CONCLUSION
MSME entrepreneurs recognize the importance of human capital as well as the difficulties that
arise when finding hierarchical and/or operational personnel, with experience and potential, especially
in companies that are seeking or have improved their service standards. In the service sector such as
tourist accommodation MSMEs, in addition to the lack of human resources in aspects related to
operations, which are the most feasible to solve, there are also deficiencies in relational aspects and
attitudes that are more difficult to solve, which makes U MKM entrepreneurs reluctant to recruit new
staff. In addition to all these problems faced by SMEs, it is worth mentioning that a high percentage of
them are familial in nature, making their situation even more complex because of this. Among its main
peculiarities are centralization in decision making, little professionalism in company management,
pyramidal structure with few levels, direct relationship between owners and employees, barriers to
delegation of functions and empowerment, and difficult segregation of assets. company and owner.
Family based organisations, present certain vulnerabilities both due to internal aspects of their
organization and management as well as external aspects of the context in which they operate. Most of
the studies and approaches to these problems have so far focused more on aspects of financing, human
resources, technology and information, but not on issues related to knowledge management. Most of
the hospitality companies in Indonesia are MSME, family run, run by entrepreneurs who have a short
term vision and a management style that focuses mainly on financial results and which mostly ignores
key aspects. to achieve competitiveness, such as organization and management of human and
intellectual capital.

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