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Jurnal Int 7
Jurnal Int 7
2
A Professor of Economics and Business, National Development University “Veteran”, Yogyakarta
1
fx.suwarto@yahoo.com, 2ariefsubyantoro@yahoo.com
ABSTRACT
The aims of this study was to determine the effect of recruitment on performance, the effect of selection on
performance, the effect of placement on performance, the effect of recruitment on selection, and the effect
of selection on placement. Depreciating number of employees at PT Green Glovers Indonesia in Klaten was
caused by employees entering retirement, death or dismissal. Newly-hired employees are required to
improve their performance. Technical data processing was conducted using Structural Equation Modeling
(SEM) with Partial Least Square (PLS) approach. The sample of this study consists of 90 employees. The
results showed that recruitment has no effect on performance; selection affects performance; placement
affects performance; recruitment affects selection; and that selection affects placement.
Keywords: Recruitment, Selection, Placement, Employee Performance.
What we need to pay attention to foremost is the The results show that factor loadings of the
results of factor loadings for each latent variable. indicator of each latent variable no longer below
Figures in bold type are the factor loadings, 0.4. AVE values indicate the level of variation or
indicators of latent variable. The factor loadings are diversity in the indicators of latent variables.
used to accomplish the convergent validity of the Therefore, the higher the level of variation or
measurement model. The underlined factor diversity in the indicators of latent variables, the
loadings (< 0.7) showed that the indicators have closer the indicators to the latent variables they
poor convergent validity [21]. As for the italicized represent. In other words, the higher the values of
factor loadings (< 0.4), they should be excluded AVE, the higher the capability of latent variables to
from the model [22]. This is because the explain the diversity of their indicators. The
measurement model does not meet the criteria of acceptable AVE should be greater than 0.5 [23].
convergent validity (AVE in bold type for selection After further evaluation of measurement model
is less than 0.05), therefore it would be better to employed in this study, the AVE for all latent
exclude the indicator from the model for hypothesis variables is > 0.5. This means that more than 50%
testing. Unless this was done, the results of study of indicators’ diversity can be explained by each of
will have a weak measure of validity. Furthermore, their latent variables. Based on the two criteria,
invalid indicators should be excluded from the factor loadings and AVE, the data have passed the
model (indicator X2.2 or reference). Subsequently, convergent validity assessment.
reexamination should be conducted after the The discriminant validity can be evaluated by
exclusion of invalid indicators from the research using cross-loading of indicator. The measurement
model. of cross loading is conducted by comparing loading
indicator with its latent variable and latent variable
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F. Suwarto and A. Subyantoro / International Journal of Computer Networks and Communications Security, 7 (7), July 2019
of other blocks. If the loadings between the variables explain the endogenous variables. The
indicator and its latent variable are higher than higher the R-square value, the better the exogenous
those of latent variables of other block, this
indicates that the latent variables predict the Sele
Perf
measure on their block better than other blocks. The Recru ctio Place
Indic orm
loadings are greater than those of latent variables. itmen n ment
ator ance
For example, indicators X1.1, X1.2 and X1.3 have t (X1) (X2 (X3)
(Y1)
)
factor loadings in the recruitment column (bold
0.47 0.59
typed) greater than those in the selection, placement X1.1 0.910
2
0.684
6
and performance columns. This holds true for other 0.38 0.32
latent variables. Thus, the data have passed the X1.2 0.610 0.370
5 7
discriminant validity test. 0.48 0.58
X1.3 0.875 0.637
Now we come to the composite reliability value. 1 2
Composite reliability and Cronbach’s alpha have X2.1 0.402
0.66
0.501
0.48
the same interpretable meaning, for all variables 7 1
with values higher than 0.7. This indicates that the 0.57 0.38
X2.3 0.289 0.285
data is highly reliable or, in other words, the 5 3
0.82 0.55
internal consistency of each latent variable is quite X2.4 0.422 0.466
6 0
satisfactory. This means that all latent variables are 0.83 0.48
reliable. X2.5 0.387 0.376
2 5
Based on the descriptions in the above sections, it 0.84 0.60
X2.6 0.536 0.587
can be concluded that the data have been valid and 8 8
reliable to be subjected to further evaluation of 0.57 0.59
X3.1 0.617 0.812
structural model and hypothesis tests. 1 0
Evaluation of structural model (inner model) 0.60 0.79
X3.2 0.636 0.915
After the evaluation of measurement model, the 2 6
0.49 0.78
next phase is the structural model evaluation. The X3.3 0.611 0.921
4 4
evaluation is intended to determine effect of 0.45 0.72
exogenous latent variables on the endogenous X3.4 0.657 0.860
2 8
variables. The criteria of the measurement model 0.71 0.82
evaluation include the coefficient of determination Y1.1 0.498 0.736
0 0
(R2), predictive 0.51 0.91
Y1.2 0.579 0.763
0 4
5.2 Evaluation of structural model (inner model) 0.58 0.86
Y1.3 0.574 0.701
4 5
After the evaluation of measurement model, the 0.62 0.92
Y1.4 0.607 0.800
next phase is the structural model evaluation. The 8 3
evaluation is intended to determine effect of 0.39 0.73
Y1.5 0.444 0.473
exogenous latent variables on the endogenous 0 0
variables. The criteria of the measurement model Cron
evaluation include the coefficient of determination bach’
0.80 0.90
s 0.725 0.900
(R2), predictive relevance (Q2), and Goodnes of 8 6
Alph
Git Index (GoF/GFI). Results of structural model a
evaluation using SmartPLS3 are summarized in the Comp
table below. osite 0.86 0.93
0.847 0.931
reliab 8 0
Table 4: Results of R-square and criteria ility
0.57 0.72
R- Crite AVE 0.655 0.771
3 8
Square ria
Selection (X2) 0.305 Good
0.365 Good variables explain their endogenous counterparts.
Placement (X3)
According to [21], R-square values are divided into
Performance Very
0.735 three categories: R-square values of 0.67, 0.33 and
(Y1) Good
0.19 as substantial, moderate and weak,
respectively. In this study, performance can be
R-square or coefficient of determination is a explained by recruitment, selection and placement
statistical measure of how good the exogenous at 73.5 % (very good). Placement can be explained
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F. Suwarto and A. Subyantoro / International Journal of Computer Networks and Communications Security, 7 (7), July 2019
by selection at 36.5% (good). Selection can be In addition to R2 and Q2, Goodness of Fit (GoF)
explained by recruitment at 30.5% (moderate). The model is also used to validate the structural model.
rest are explained by other variables not included in GoF index is a single measure to validate the
the research model. composite performance between the measurement
model and the structural model. The GFI ranges
Table 5: Results of Q2 calculation between 0 and 1, with the values interpreted as:
GoF small=0.1, GoF medium=0.25, and GoF
SSO SSE Q²(=1SSE/S) large=0.36. GoF can be calculated using the
Recruitment following formula.
270.00 270.000
(X1)
Selection √̅̅̅̅̅̅ ̅̅̅̅
450.00 378.626 0.159
(X2)
dengan ̅̅̅̅̅̅ adalah rataan nilai AVE variabel
Placement
(X3)
360.000 265.709 0.262 laten dan ̅̅̅̅ adalah rataan nilai R2.
Performance √̅̅̅̅̅̅ ̅̅̅̅
450.000 232.107 0.484
(Y1)
Source: processed primary data (2018) √
Origin Standar
t-Statistics
al sample Deviation P-Values
(|O/STDEV|)
(O) (STDEV)
RecruitmentSelection 0.552 0.063 8.772 0.000
RecruitmentPerformance 0.023 0.094 0.246 0.806
SelectionPlacement 0.604 0.053 11.387 0.000
SelectionPerformance 0.268 0.053 5.029 0.000
Placement Performance 0.651 0.089 7.294 0.000
Source: processed primary data (2018)
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F. Suwarto and A. Subyantoro / International Journal of Computer Networks and Communications Security, 7 (7), July 2019
By path coefficient we mean that every possible performance in a company can be improved
linkage between latent variables fits the research through proper placement of employees..
hypothesis. The fitness of a measurement model 4. Recruitment has a significant effect on
can be determined by P-value or t-statistic. If the t- selection. This indicates that relationship exists
statistic is greater than 1.96 and the probability between recruitment and selection and their
value is less than 0.05 or 5%, the research effect on HRM functions. This confirms
hypothesis H1 is accepted. In the present study, the previous research by [25] stating that
research hypotheses are as follows. recruitment has a direct correlation with
1. H0: Recruitment has no effect on selection. Thus, in this research model, the path
performance. between recruitment and selection can be
H1: Recruitment affects the performance. maintained.
2. H0: Selection has no effect on performance. Selection has a significant effect on placement. The
H1: Selection affects the performance. positive value indicates that the placement of
3. H0: Placement has no effect on performance. employee might be improved through selection
process. The placement of employees based on the
H1: Placement affects the performance.
results of selection complies with both employer
and employee wishes. This makes possible for the
4. H0: Recruitment has no effect on selection. employees to understand their scope of work to put
H1: Recruitment affects the selection. their maximum effort to achieve the company
5. H0: Selection has no effect on placement. goals.
H1: Selection affects the placement.
The hypothesis tests for the measurement model 7 SUGGESTION
will be presented in this section. The table below
summarizes the results of hypothesis testing. PT Green Glovers Indonesia in Klaten needs to
Outer weight means that every correlation pay serious attention to the factors affecting
between indicators and their latent variables has an employees’ performance. The reason is that
effect that corresponds to the hypothesis testing recruitment has no effect on employee
model. The fitness can be determined by P-value performance, while other variables have a
and t-statistic, i.e. the procedure similar to that of significant effect on employee performance. Job
hypotheses testing for structural model. It can be analysis needs to be conducted before the selection
seen that the t-statistic in all relationships between and placement of human resources. Proper method
indicators and their latent variables amounted to > of employee selection that is adaptable to the
1.96. Likewise, the P-value amounted to < 0.05 for workplace situation and condition is indispensable.
all the relationships between the indicators and their Placement of new employees needs to be
latent variables, thereby H0 is accepted. This means implemented with reference to job analysis
that all indicators have an effect on their latent conducted previously and the results thereof.
variables.
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6 CONCLUSION
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