ANALYSIS INFLUENCE OF HUMAN RESOURCE MANAGEMENT PRACTICES ON STUDY EMPLOYEE PERFORMANCE AT PO. HARYANTO KUDUS 74 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license (https://creativecommons.org/licenses/by/4.0/) ANALYSIS INFLUENCE OF HUMAN RESOURCE MANAGEMENT PRACTICES ON STUDY EMPLOYEE PERFORMANCE AT PO. HARYANTO KUDUS Novita Yuliana1)*, Fuad Mas’ud2) 1,2 Islamic Economics Departement, Faculty of Economics and Business, Diponegoro University, Indonesia Abstract Islamic business management has begun to applied by several companies to set and achieve goals. The phenomenon shows that there are companies that implement Islamic business management that can achieve success, growing rapidly, and compete with others companies that do not apply Islamic business management principles. The company is PO. Haryanto Kudus. The success of a business is supported by several factors, one important factor is the support of human resources. A company needs to pay attention to human resource management to achieve the goals. This study aims to analyze the effect of human resource management practices on employee performance on PO. Haryanto Kudus. Data collection method are done through interviews and questionnaires. The object of this research are 83 employees at PO. Haryanto Kudus. This study uses multiple linear regression analysis techniques from the application of SPSS 23. The results of the analysis shows that employee recruitment and selection, performance appraisal, and compensation are in a positive and significant effect on employee performance in PO. Haryanto Kudus. Keywords: Human Resources, Recruitment and Selection of Employee, Performance Appraisal, Compensation. 1. INTRODUCTION Experts in the 20th century developed human resource management into a special field to be able to study the roles and relationships of humans to achieve organizational goals. Human resources are a key or very important factor in an organization, as assets that make an organization or company move and achieve predetermined goals. The words human and human in the concept of human resources have the same meaning, in Islam it is known as the concept of insan kamil, which means believers in whom there is the power of insight, action and wisdom. Simanjuntak (2011) states that performance is the level of achievement of results for the implementation of a certain task. TR. Michael quoted from Ruky (2001) explained that the performance indicators are service quality, communication, speed, ability, and initiative. These indicators are used as a benchmark in achieving a performance. Central Java is an area that has the highest number of intercity and inter-provincial buses or AKAPs in Indonesia. In addition, the number of bus companies (PO) in Central *Corresponding author. Email address: novitayulianaa5@gmail.com https://creativecommons.org/licenses/by/4.0/ mailto:novitayulianaa5@gmail.com AFEBI Islamic Finance and Economic Review (AIFER) Volume 5, No 1 (2020) 75 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license (https://creativecommons.org/licenses/by/4.0/) Java is also the largest in Indonesia. The number of AKAP buses in Central Java has reached 3,503 units, West Java with 2,797 units, and DKI Jakarta with 2,622 units. The following is a breakdown of the number of AKAP Central Java buses during the 2014- 2018 period: Table 1 Number of Central Java AKAP Buses for the Period of 2014-2018 Year Number of AKAP Buses Number of Companies 2014 4165 146 2015 4542 149 2016 4199 139 2017 3632 113 2018 3503 113 Source: Ministry of Transportation (Kemenhub) data, 2014-2018 There has been a decrease every year in the number of AKAP buses in Central Java, but there has been an increase in the number of tourist buses for the 2014-2018 period by 5.66%. The largest number of tourist buses is in the DKI Jakarta area with a total of 5,914 buses, followed by Central Java with a total number 5,321 buses, then West Java with 4,397 buses. If the AKAP and Tourism buses are added together, Central Java is still the top with 8,824 buses and DKI Jakarta with 7,943 buses. PO. Haryanto Kudus is an autobus company that implements sharia management in developing and managing its business, but is not included in a sharia company, which opens business opportunities by applying Islamic teachings as a business foundation. According to a preliminary survey conducted by many autobus companies that were previously superior, they become sluggish, due to the many factors faced by these companies. There are also many bus companies that apply conventional principles in their business practices but experience a sharp setback even to the point of bankruptcy, perhaps in terms of company capital, services, human resource management, or from other factors, which can make consumers or passengers feel the quality is not good, or the bus company chooses to close it because it does not want to bear a sharp loss or reason that has been considered so that a major problem does not arise. Table 2 PO Fleet Data. Haryanto Kudus Year Total Fleet PO. Haryanto Kudus 2010 115 2011 120 2012 129 2013 135 2014 145 2015 155 2016 160 2017 168 2018 175 2019 186 Source: Employee Interview of PO. Haryanto Kudus, On January 18, 2020 https://creativecommons.org/licenses/by/4.0/ ANALYSIS INFLUENCE OF HUMAN RESOURCE MANAGEMENT PRACTICES ON STUDY EMPLOYEE PERFORMANCE AT PO. HARYANTO KUDUS 76 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license (https://creativecommons.org/licenses/by/4.0/) Fleet data shows an increase in the number of fleets each year, as evidence that more passengers trust the PO. Haryanto Kudus. PO. Haryanto Kudus has an applied organizational culture that has Islamic values or elements. The employees at the PO. Haryanto Kudus, who is in the office, is required to pray in congregation, especially men, arrive on time for work, when the time for prayer adhan has arrived, all activities in the PO office. Haryanto Kudus stops, and the bus PO. Haryanto Kudus, who was accompanying passengers on a long-distance trip, stopped at the nearest mosque to be able to carry out the obligatory prayer services. Mr. Haji Haryanto as the owner of the PO. Haryanto has a program for employees, namely leaving for Hajj or Umrah, for employees who can do their job well, comply with existing rules, and are always diligent in worshiping not only to pray five times a day but also to pray sunnah and recitation, because every morning starts from the hour seven at the Nurul Huda mosque which was built in the PO garage. Haryanto Kudus with the holding of the Khatam Al-Qur'an which was carried out alternately by the students from the pesantren. The phenomenon that occurs at this time is PO. Haryanto Kudus can develop rapidly and compete with other conventional businesses, seen from the number of fleets that increase every year, and many positive assessments have been shown from the responses of passengers, and not all businesses using sharia management principles will be defeated by conventional businesses, seen from both in terms of service, and poor performance. This phenomenon explains that what affects employee performance through human resource management practices at PO. Haryanto Kudus, namely the process of recruitment and selection of employees, performance appraisal, and compensation. Based on research from Rambi, et al (2015) entitled The Effect of Human Resource Management Practices on Employee Performance at PT. PLN (Persero) Sulutenggo Region shows that human resource management practices have a positive and significant effect on employee performance. In line with this research, a study entitled The Effect of Human Resource Management Practices on Employee Performance at the Manado State Wealth and Auction Service Office (KPKNL) by Fenina Ezra Wulan Kasenda, Christoffel Mintardjo (2016) explains that human resource management practices have a positive effect. and significant to employee performance, and that does not affect employee training. The purpose of this study is to find out more about the influence of human resource management practices on employee performance at PO. Haryanto Kudus. 2. LITERATURE STUDY Khan (2016), in Islam recruitment is the process of attracting a certain group of prospective workers within an organization. Islam describes the qualities of the right candidate for employment, namely pious, having good moral values, and a very competent player with the team. Rahmany (2018), revealed that the existence of a strong relationship between the recruitment process and employee selection significantly affects employee performance, which allows an organization to get suitable and quality employees who can improve performance. Based on these descriptions, the researcher developed a hypothesis: Hypothesis 1: Employee recruitment and selection has a positive and significant effect on employee performance. https://creativecommons.org/licenses/by/4.0/ AFEBI Islamic Finance and Economic Review (AIFER) Volume 5, No 1 (2020) 77 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license (https://creativecommons.org/licenses/by/4.0/) Mullins (2002) states that the performance appraisal system is a basic benchmark in assessing an individual's performance, which highlights a potential for career advancement for the future and also improves performance. Fahmi, et al (2014), explained that performance appraisal from an Islamic perspective, in principle, is to plan, monitor and evaluate the Islamic competence of employees at the company. According to Sopiah (2016), there is a positive influence between performance appraisal and employee performance, both theoretically and empirically. Hypothesis 2: Performance appraisal has a positive and significant effect on employee performance. Rivai, et al (2014), explain that compensation in an Islamic perspective that is given to employees both financially and non-financially includes fair and transparent wages, holiday allowances, Hajj and Umrah pilgrimage facilities, Islamic holidays, facilities for comfortable places of worship. to be able to carry out worship solemnly, including the implementation of activities such as Khatam Al Qur'an, and so on. RA. Ritawati (2015) states that compensation in the banking sector plays a very important role in improving employee performance. H 3: Compensation has a positive and significant effect on employee performance. 3. RESEARCH METHODOLOGY The dependent variable in this study is the Employee Performance at PO. Haryanto Kudus, while the independent variables are Employee Recruitment and Selection, Performance Appraisal, and Compensation. The population in this study were employees who worked at PO. Haryanto Kudus consists of a driver, bus driver, and internal employees. The sampling method in this study was purposive sampling. The data collection method in this study was carried out conducted by interviewing, distributing questionnaires and studying literature from journals, internet, and books. The type of data in this study is quantitative. The data analysis used was the validity and reliability test, normality test, multicollinearity test, heteroscedasticity test, multiple linear regression, t test, F test, and the coefficient of determination (R2). 4. RESULT AND DISCUSSION This part should describe informative results of empirical research which are written systematically and critically. Tables and figures can be presented in this part to support the discussion, for examples table of statistics-test results, figures of model test results and etc. In general, journal papers will contain three-seven figures and tables. Same data cannot be presented in the form of tables and figures. Overview of Respondents Table 3 Distribution of Questionnaires Information Total Number of questionnaires distributed 83 Number of questionnaires returned and filled in completely 83 Source: Primary data 2020, processed Number of questionnaires given to PO employees. Haryanto Kudus totaled 83, and the number of questionnaires that were returned and completely filled in was 83. The https://creativecommons.org/licenses/by/4.0/ ANALYSIS INFLUENCE OF HUMAN RESOURCE MANAGEMENT PRACTICES ON STUDY EMPLOYEE PERFORMANCE AT PO. HARYANTO KUDUS 78 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license (https://creativecommons.org/licenses/by/4.0/) number of male respondents was 71 people, and 12 female respondents. Based on the age of the respondents, the most filling results were 30-39 years old. Based on the latest education, the results of the most respondents were SMK. Based on religion, the result is that all respondents are Muslim or adhere to the Islamic religion. Judging by the job title of the respondent, namely the driver, bus driver, and internal company employees. Validity and Reliability Test The validity test is to show the degree of accuracy between the actual data that occurs on the object and the data collected by the researcher. by comparing the calculated r value with the r table value for the degree of freedom d (f) = n - 2 with an alpha of 0.05. If, r count is greater than r table and the value of r is positive, then the item or question is said to be valid. Table 4 Validity Test Results Variabels Indicator r Calculate r Table Employee Recruitment and Selection (X₁) X1.1 0,815 0,216 X1.2 0,821 0,216 X1.3 0,780 0,216 X1.4 0,697 0,216 X1.5 0,775 0,216 X1.6 0,762 0,216 X1.7 0,543 0,216 X1.8 0,636 0,216 X1.9 0,657 0,216 X1.10 0,590 0,216 X1.11 0,556 0,216 Performance Appraisal (X₂) X2.1 0,771 0,216 X2.2 0,740 0,216 X2.3 0,644 0,216 X2.4 0,657 0,216 X2.5 0,750 0,216 Compensation (X₃) X3.1 0,746 0,216 X3.2 0,715 0,216 X3.3 0,636 0,216 X3.4 0,803 0,216 X3.5 0,762 0,216 X3.6 0,721 0,216 X3.7 0,737 0,216 X3.8 0,683 0,216 Employee Performance (Y) Y1.1 0,733 0,216 Y1.2 0,841 0,216 Y1.3 0,899 0,216 Y1.4 0,764 0,216 Y1.5 0,933 0,216 https://creativecommons.org/licenses/by/4.0/ AFEBI Islamic Finance and Economic Review (AIFER) Volume 5, No 1 (2020) 79 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license (https://creativecommons.org/licenses/by/4.0/) Variabels Indicator r Calculate r Table Y1.6 0,835 0,216 Source: Primary Data (SPSS) 2020, processed Based on Table 4 that all the results of the calculation of r count are greater than r table, namely 0.216, it is known that all items of the instrument used are valid. Reliability test is a series of measurements or a series of measuring instruments that have consistency if the measurements are made using the measuring instrument repeatedly. Criteria in decision making in the reliability test, that is, if it provides value crobanch's> 0.70 then it is declared reliable, and if the value shows crobanch's <0.70 then it is not reliable. Table 5 Reliability Test Results Variabels Standart Alpha Cronbacnh’s Alpha Information Employee Recruitment and Selection (X1) 0,7 0,893 Reliabel Performance Appraisal (X2) 0,7 0,759 Reliabel Compensation (X3) 0,7 0,871 Reliabel Employee Performance (Y) 0,7 0,914 Reliabel Source: Primary Data (SPSS) 2020, processed Based on Table 5, it is shown that the variables of Employee Recruitment and Selection, Performance Appraisal, Compensation, and Employee Performance obtained cronbacnh's alpha value> 0.7. With the above results, all items from all the variables studied are reliable and can be analyzed further. Classic assumption test The normality test aims to be able to test whether the dependent variable regression model and the independent variable are normally distributed or not. Data normality testing uses the Kolmogrov-Smirnov Test of Normality in the SPSS program, the basis for decision making can be made based on probability (Asymptic Significance), namely: if probability> 0.05 then the distribution of the regression model is normal, and vice versa if the probability <0.05 then the distribution of the regression model is not normal. Table 6 Normality Test Results Unstandardized Residual N 83 Test Statistic 0,059 Asymp. Sig. (2-tailed) 0,200 Source: Primary Data (SPSS) 2020, processed Based on the data table 6 shows that the value of the Kolmogorov-Smirnov test has a significance> 0.05, namely 0.200, indicating that the dependent and independent variables have a normal distribution. https://creativecommons.org/licenses/by/4.0/ ANALYSIS INFLUENCE OF HUMAN RESOURCE MANAGEMENT PRACTICES ON STUDY EMPLOYEE PERFORMANCE AT PO. HARYANTO KUDUS 80 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license (https://creativecommons.org/licenses/by/4.0/) The multicoloniearity test aims to test whether or not the regression model is found in the correlation between the independent variables. If there is a correlation, it is called the multicollinearity problem. If, there is multicollinearity, preferably one independent is excluded from the model, and the regression modeling is repeated. To be able to detect the presence or absence of multicollinearity, it can be seen from the Variance Inflation Factor (VIF) value and tolerance. With the guidance of a regression model that is free of multicollinearity, it has a tolerance number close to 1. The VIF limit is 10, if the VIF value is below 10 then there are no symptoms of multicollinearity, and if the VIF value is above 10, there will be a symptom of multicollinearity. Table 7 Multicollinearity Test Results Collinearity Statistics Tolerance VIF Employee Recruitment and Selection 0,541 1,850 Performance Appraisal 0,651 1,536 Compensation 0,538 1,860 Source: Primary Data (SPSS) 2020, processed The multicollinearity test results in table 7 show that the VIF value is <10 and the Tolerance value> 0.10, thus it can be concluded that the independent variables used in the study do not have multicollinearity symptoms. The heteroscedasticity test aims to test whether in the regression model there is an inequality of variance from the residuals of one observation to another. In this study, two methods were used to test for heteroscedasticity, namely the scatterplot and glejser methods. The Scatterplot method is as follows: Picture 1 Results of the Scatterplot Heteroscedasticity Test Based on Figure 1, it explains that the distribution of points is above and below 0 on the Y axis, does not gather only above or below, is not patterned, does not form a wave pattern, is straight or curved so it can be interpreted that the data collected does not have a wave heteroscedasticity. https://creativecommons.org/licenses/by/4.0/ AFEBI Islamic Finance and Economic Review (AIFER) Volume 5, No 1 (2020) 81 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license (https://creativecommons.org/licenses/by/4.0/) The Glejser method is as follows: Table 8 Heteroscedasticity Test Results Independent Variable Sig. Constant 0,303 Employee Recruitment and Selection 0,852 Performance Appraisal 0,462 Compensation 0,283 Source: Primary Data (SPSS) 2020, processed Based on table 8, it shows that the significance value is> 0.05, and it can be concluded that there is no heteroscedasticity between the variables used in the research model. Hypothesis Analysis Multiple linear regression is a model used to analyze the effect of various independent variables on one dependent variable. Table 9 Multiple Linear Regression Test Results Dependent Variable Independent Variable Standardize d Coefficients Sig. Information Beta Employee Performance Employee Recruitment and Selection (X1) 0,345 0,000 Significant Performance Appraisal (X2) 0,477 0,000 Significant Compensation (X3) 0,202 0,009 Significant Source: Primary Data (SPSS) 2020, processed The results are as follows: Y = 0.345 X1 + 0.477 X2 + 0.202 X3 Information : Y: Employee performance at PO. Haryanto Kudus β₁, β₂, β₃: The coefficient of each variable X1: Employee Recruitment and Selection X2: Performance Appraisal X3: Compensation e: error Based on the regression equation above, it can be perceived that: a. The regression coefficient on the employee recruitment and selection variable (X₁) is 0.345. Positive coefficient means that there is a positive relationship between recruitment and selection of employees and employee performance, the recruitment https://creativecommons.org/licenses/by/4.0/ ANALYSIS INFLUENCE OF HUMAN RESOURCE MANAGEMENT PRACTICES ON STUDY EMPLOYEE PERFORMANCE AT PO. HARYANTO KUDUS 82 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license (https://creativecommons.org/licenses/by/4.0/) and selection process carried out by the PO will increase. Haryanto Kudus will have an effect on increasing employee performance. b. The regression coefficient on the performance appraisal variable (X₂) is 0.477. Positive coefficient means that there is a positive relationship between performance appraisal and employee performance, the increasing process of the performance appraisal carried out by the PO. Haryanto Kudus will have an effect on increasing employee performance. c. The regression coefficient on the compensation variable (X₃) is 0.202. Positive coefficient means that there is a positive relationship between compensation and employee performance, the increasing compensation provided by the PO. Haryanto Kudus to employees will have an effect on increasing employee performance. Partial Effect Significance Test (t test), the purpose of this test is to find out how far the influence of one independent variable (employee recruitment and selection, performance appraisal, and compensation) separately explains the variation of the dependent variable (employee performance at PO. Haryanto Kudus) separately. or together. The criteria for this test are as follows: If t count > t table, then H0 is rejected and H1 is accepted, which means that each independent variable individually has a significant effect on the dependent variable. Conversely, if t count 0.05, H₀ is accepted and H₁ is rejected, and if probability t is calculated < 0.05, H₀ is rejected and H₁ is accepted. Then the t table value is: df = 83- 4 = 79. With this it is found that df is 79, and a = 0.05, then the t table is obtained at 1.990. Table 10 T Test Results Independent Variable t Hitung t Tabel Sig. Information Recruitment and Selection of Employees 4,560 1,990 0,000 H₀ ditolak, H₁ diterima Performance Assessment 6,925 1,990 0,000 H₀ ditolak, H₂ diterima Compensation 2,666 1,990 0,000 H₀ ditolak, H₃ diterima Source: Primary Data (SPSS) 2020, processed a. Effect of Employee Recruitment and Selection on Employee Performance In Table 10, the t value of employee recruitment and selection (X₁) is 4.560 while the t table is 1.990 and significant at 0.00 <0.05, so Ho is rejected and H₁ is accepted, which states that Employee Recruitment and Selection (X₁) have a positive effect. and significant to Employee Performance (Y) at PO. Haryanto Kudus. b. The Effect of Performance Appraisal on Employee Performance In Table 10, it is obtained the t value of Performance Appraisal (X₂) of 6.925 while t table is 1.990 and a significance of 0.000 <0.05, then Ho is rejected and H₂ is accepted, which states that Performance Appraisal (X₂) has a positive and significant effect on Employee Performance (Y) at PO. Haryanto Kudus. c. The Effect of Compensation on Employee Performance https://creativecommons.org/licenses/by/4.0/ AFEBI Islamic Finance and Economic Review (AIFER) Volume 5, No 1 (2020) 83 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license (https://creativecommons.org/licenses/by/4.0/) In Table 10, it is obtained that the t value of Compensation (X₃) is 2.666 while the t table is 1.990 and a significance of 0.009 <0.05, which indicates that H₀ is rejected and H₃ is accepted, which states that Compensation (X₃) has a positive and significant effect on performance employee (Y). The model feasibility test is used to determine whether the independent variables jointly or simultaneously affect the dependent variable. then the value of the F table is: df 1 = 4-1 = 3 df 2 = 83 - 4 = 79. and a = 0.05, then the F table is obtained at 2.72. Table 11 Anova Test Results Source: Primary Data (SPSS) 2020, processed Based on Table 11, the calculated F value gives a value of 81.482, and the F table is 2.72, and a significant probability of 0.000 is less than 0.05 (the real level is equal to 5 percent) which means that simultaneously and together the Recruitment and Selection variables Employees, Performance Appraisal, and Compensation affect the performance of PO employees. Haryanto Kudus. The coefficient of determination test is used to measure the ability of the model to explain the variation in the dependent variable. Table 12 Determination Coefficient Test Results R 0,869 R Square 0,756 Adjusted R Square 0,746 Source: Primary Data (SPSS) 2020, processed Based on Table 12, it shows that the results of the multiple linear regression test above indicate that the value of the coefficient of determination (Adjusted R Square) regression is 0.746, which means that variations in employee performance changes can be explained by the variables of Employee Recruitment and Selection, Performance Appraisal, and Compensation of 74. 6%, while 25.4% was explained by other variables not examined. 5. CONCLUSION Based on the results of data analysis and the discussion that has been described regarding the Analysis of Human Resource Management Practices on the Performance of Study Employees at PO. Haryanto Kudus, the following conclusions can be drawn: df F Count F Table Sig. Regression 3 81,482 2,72 0,000 Residual 79 Total 82 https://creativecommons.org/licenses/by/4.0/ ANALYSIS INFLUENCE OF HUMAN RESOURCE MANAGEMENT PRACTICES ON STUDY EMPLOYEE PERFORMANCE AT PO. HARYANTO KUDUS 84 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license (https://creativecommons.org/licenses/by/4.0/) a) Employee Recruitment and Selection have a positive and significant effect on Employee Performance at PO. Haryanto Kudus. b) Performance Appraisal has a positive and significant effect on Employee Performance at PO. Haryanto Kudus. c) Compensation has a positive and significant effect on Employee Performance at PO. Haryanto Kudus. Reference Ezra, Fenina Wulan Kasenda, dan Christoffel Mintardjo. (2016). “Pengaruh Praktek- Praktek Manajemen Sumber Daya Manusia terhadap Kinerja Pegawai pada Kantor Pelayanan Kekayaan Negara dan Lelang (KPKNL) Manado”. Jurnal Emba. Vol. 4, No. 4 : 1229-1248. 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