Universitas Indonesia Conferences, The 4th International Conference of Vocational Higher Education

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HR MANAGEMENT STRATEGY IN THE GARMENT INDUSTRY: IMPROVING BUSINESS BY ENSURING EMPLOYEES WELFARE
Dian Rahmasari

Last modified: 2019-06-28

Abstract


Garment industry was one of the main contributors to Indonesia’s GDP. However, their performance has been declined in the last 13 years. This study captures the influence of the HR management strategies to raise Indonesian garment performance. It is important to explore that work life balance (WLB) of the garment workers can lead to job satisfaction and life satisfaction. Once workers have higher work motivation, they will give their best performance for company which eventually will lead to higher company performance. The aim of this study is trying to assess the impact of the life satisfaction, job satisfaction and asset toward turn over intention of garment workers. This research is quantitative study based on 3691 respondents in Java and the data was analyzed by SEM. Our study provides a significant contribution for the improvement of garment industry performance from the perspective of the above variables. Result of this study showed that WLB will increase life satisfaction and job satisfaction of workers. Working condition (health condition and compensation) and asset has significant influence in WLB. Turnover intention as the last variables could be reduced by improving WLB. However high working hours (as the dimension of the working conditions) could reduce WLB.