Integrated Approach in Human Capital Management to Improve Employee Job Satisfaction in Higher Education

Abstract

Higher education institutions are knowledge-based organizations; therefore, their primary source of competitive advantage resides in high-performance human resources. Human capital management represents an approach to human resource management that seeks to optimize existing potential to generate superior performance and yield returns in the form of enhanced organizational performance. Within this paradigm, employees are regarded not as factors of production but rather as capital or assets. Job satisfaction constitutes one determinant of employee performance levels. Organizations develop various human capital management strategies to maintain employee job satisfaction, including transformational leadership (TL) and internal corporate social responsibility (ICSR). This study aims to develop a causal model examining the relationships among TL, ICSR, and job satisfaction. The unit of analysis is University X, a higher education institution located in Bandung City. The research employs a verification survey methodology. Data are analyzed using linear regression and processed descriptively. The findings are expected to contribute to the scholarly understanding of human capital management and its application in higher education institutions, which possess distinct characteristics compared to other service-oriented organizations. The verification analysis of TL, ICSR, and job satisfaction variables reveals that both TL and ICSR exert positive effects on job satisfaction, both individually and collectively.