THE STRATEGIC SIGNIFICANCE OF DISTRIBUTION EXPANSION FROM THE PERSPECTIVE OF THE MICHIGAN HUMAN RESOURCE MODEL: A CASE STUDY OF CV. ERFOLG SHOES INDONESIA (ESI)

Abstract

This study evaluates the Michigan Model of Human Resource Management (HRM) within an Indonesian footwear SME, CV. Erfolg Shoes Indonesia (ESI), during its distribution network expansion. Using a qualitative single-case study, this research analyzes the alignment between the firm's HR practices (selection, appraisal, rewards, development) and its distribution strategy. Findings reveal a systemic misalignment, creating a dysfunctional cycle where flawed selection is compounded by irrelevant performance metrics, ineffective training, and inequitable rewards. The study questions the applicability of "hard" HRM models in resource-constrained SMEs and recommends a more integrated, technology-enabled, and network-centric approach to managing both internal and external human capital.