Human Resources Management Development Strategy at Microfinance Institutions in North Sumatra

Abstract

Globalization, changing consumer and investor needs, and increased product market rivalry in microfinance institutions such as cooperatives are all signs of rapid change in the economic environment. Human resources created by cooperatives are a microfinance institution's most valuable asset. Recognizing that the basis of competitive advantage has changed, it is critical to develop a new frame of reference to consider management issues and its human resource strategy in innovating. This article used a qualitative approach to analyze strategies in innovation-based HR development using the SWOT model, which is a decision-supporting model for evaluating strategic priorities by outlining alternative strategies. The research revealed that the proposed approach was a WO strategy, which entailed minimizing weaknesses in order to maximize opportunities in the development of microfinance organizations.