Track: Business Management

Abstract

The human capital concept has been applied in terms of human resources management in many companies including one of Indonesia's electricity companies in Sulawesi. Regarding employee management, the company set human resources as an important asset in producing the best performance for the company. In 2019 - 2021, 85% of employees who took part in the competency assessment had not been able to demonstrate individual competency as required by the company. If this lack of competence continues, it can affect both individual performance and company performance. Upon seeing these conditions, this study takes several factors that are considered to affect the competence of employees. This study aims to determine how the leadership style, work motivation, and company culture affect the competence and performance of employees while emphasizing the dominant factors to increase employee competence by using SEM - the PLS method. 142 respondents participated in this study. The results showed that transformational leadership style, work motivation, and company culture affect employee competence by 43.4%. For further explanation, leadership style has a positive and significant effect on employee competence with a T statistic of 2.281, the work motivation variable has a negative and insignificant effect on employee competence with a T Statistic of 1.270, and company culture has a positive and significant effect on employee competence with a T Statistic of 3.875.