Capitalizing Human Capital: The Role of Instrumental Leadership

Authors

  • Yessie Fransiska Lydiana, MSM School of Business and Management ITB, Jl. Ganesha No. 10, Indonesia
  • Yuni Ros Bangun, MBA School of Business and Management ITB, Jl. Ganesha No. 10, Indonesia

DOI:

https://doi.org/10.11113/jt.v64.2214

Keywords:

Human capital, leadership, instrumental leadership, competitive advantage

Abstract

It is important for company to maintain their sustainability. Today human issue becomes very important, company realizes that people is their asset and capital. The most important from this issue is how to capitalize human capital. This paper also tries to find the influence of instrumental leadership toward capitalizing human capital. Analytical literature review as a methodology is trying to find the correlation between capitalizing human capital and instrumental leadership. It is found that theoretically, instrumental leadership plays an important role in capitalizing human capital. This paper contributes to the business world; explicitly in company's efforts to capitalize their employee. Based on this literature, company must evaluate their leadership style; because this research finds the significant effect of instrumental leadership.

References

Birasnav, M., S. Rangnekar, A. Dalpati. 2010. Transformational Leadership and Human Capital Benefits: The Role of Knowledge Management. Leadership & Organization Development Journal. 32(2): 106–126.

Rhoades, L., R. Eisenberger. 2002. Perceived Organizational Support: A Review of the Literature. Journal of Applied Psychology. 87(4): 698–714.

Bassey, E. 2012. Capitalized Human Resources Cost and Its Influence on Corporate Productivity: A Study of Selected Companies in Nigeria. International Journal of Financial Research. 3(2).

Baron, A., M. Armstrong. 2008. Human Capital Management: Achieving Added Value Through People. London: Kogan Page

Eisenberger, R., P. Fasolo, V. Davis. 1990. Perceived Organizational Support and Employee Diligence, Commitment, and Innovation. Journal of Applied Psychology. 75(1): 51–59.

Day, D., J. Antonakis. 2011. The Nature of Leadership. Sage Publication.

John Ingham. 2007. Strategic Human Capital Management Creating Value through People. Elsevier.

Harris, J., S. Hartman. 2002. Organizational Behaviour. NY: The Haworth Press.

Jac Fitz-enz. 2000. The ROI of Human Capital: Measuring the Economic Value of Employee Performance. Amacom.

G. Becker. 1993. Human Capital: Theoritical and Empirical Analysis. The University of Chicago Press.

Marimuthu, M., L. Arokiasamy, M. Ismail. 2009. Human Capital Development and Its Impact on Firm Performance: Evidence From Developmental Economics. The Journal of International Social Research. 2/8.

António Martins. 2010. The Model of Intellectual Capital Approach on the Human Capital Vision. Journal of Management Research. 2(1): E10.

Bontis, N., W. Keow, S. Richardson. 2000. Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital. 1(1): 85–100.

Seleim, A., A. Ashour, N. Bontis. 2007. Human Capital and Organizational Performance: A Study of Egyptian Software Companies. Management Decision. 45(4): 789–801.

Stiles, P., S. Kulvisaechana. 2000. Human Capital and Performance: A Literature Review. The Judge Institute of Management

D. P. Lepak, S. A. Snell. 1999. The Human Resource Architecture: Toward a Theory of Human Capital Allocation and Development. The Academy of Management Review. 24: 31–48.

N. Bontis, and J. Fitz-enz. 2002. Intellectual capital ROI: A Causal Map of Human Capital Antecedents And Consequence. Journal of Intellectual Capital. 3: 223–247.

B. Harley. 1999. The Myth of Empowerment: Work Organisation, Hierarchy and Employee Autonomy in Contemporary Australian Workplaces. Work, Employment and Society. 13: 41–66.

Scott, S. and Bruce, R. 1994. Determinant of Innovative Behaviour: A Path Model of Individual Innovation in the Workplace. Academy of Management Journal. 37(3): 580–607.

Harley, B. 1999. The Empowerment: Work Organization, Hierarchy and Employee Autonomy in Contemporary Australian Workplace. Work, Employment & Society. 13(1): 41–66.

Phillips, J. J. 2005. Investing in Your Company’s Human Capital: Strategies to Avoid Spending myth of Too Little–or Too Much. AMACOM, New York, NY.

Rowe, W. G. 2007. Cases in Leadership. Sage Publications, New Delhi.

Wayne, S. J., Liden, R. C., Kraimer, M. L. and Graf, I. K. 1999. The Role of Human Capital, Motivation and Supervisor Sponsorship in Predicting Career Success. Journal of Organizational Behavior. 20(5): 577–95.

Alban-Metcalfe, J. and Alimo-Metcalfe, B. 2009. Engaging leadership Part One: Competencies Are Like Brighton Pier. International Journal of Leadership in Public Services. 5(1): 10–18.

Derek Stockley.2009. Human Capital Concept–Definition and Explanation. Google Website on the Human Capital Management Definition.

D. Ulrich, J. Zenger, and N. Smallwood. 1999. Results Based Leadership. Boston: Harvard Business School Press.

Yulk, Gary. 2002. Leadership in Organization. Prentice Hall. Upper Saddle River, NewJersey.

Levey, S., Hill, J., & Greene, B. 2002. Leadership in Health Care and the Leadership Literature. Journal of Ambulatory Care Management. 25(2): 68–74.

Rafferty, A. E. and Griffin, M. A. 2004. Dimensions of Transformational Leadership: Conceptual and Empirical Extensions. The Leadership Quarterly. 15(3): 329–54.

Bass, B. M. and Riggio, R. E. 2006. Transformational Leadership. Lawrence Erlbaum Associates. Mahwah, NJ.

Podsakoff, P. M., MacKenzie, S. B. and Bommer, W. H. 1996. Transformational Leader Behaviors And Substitutes For Leadership As Determinants Of Employee Satisfaction, Commitment, Trust, And Organizational Citizenship Behaviors. Journal of Management. 22(2): 259–98.

Rafferty, A. E. and Griffin, M. A. 2004. Dimensions of Transformational Leadership: Conceptual and Empirical Extensions. The Leadership Quarterly. 15(3): 329–54.

Nemanich, L. A. and Keller, R. T. 2007. Transformational Leadership in an Acquisition: A Field Study of Employees. The Leadership Quarterly. 18(1): 49–68.

Wayne, S. J., Liden, R. C., Kraimer, M. L. and Graf, I. K. 1999. The Role of Human Capital, Motivation and Supervisor Sponsorship in Predicting Career Success. Journal of Organizational Behavior. 20(5): 577–95.

Alban-Metcalfe, J. and Alimo-Metcalfe, B. 2009. Engaging Leadership Part One: Competencies are like Brighton Pier. International Journal of Leadership in Public Services. 5(1): 10–18.

Antonakis, J., House, R. 2004. On Instrumental Leadership: Beyond Transactions and Transformations. UNL Gallup Leadership Institute Summit, Omaha.

Downloads

Published

2013-10-15

Issue

Section

Social Sciences

How to Cite

Capitalizing Human Capital: The Role of Instrumental Leadership. (2013). Jurnal Teknologi, 64(2). https://doi.org/10.11113/jt.v64.2214