HUMAN RESOURCES DEVELOPMENT (HRM) AND DIGITAL FINANCIAL LITERACY MODEL IN MANAGING MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) IN BATU CITY IN THE DIGITAL ERA 5.0

Micro, Small, and Medium Enterprises (MSMes) are the main drivers of economic growth in Batu City, East Java, but they face significant challengers in managing Human Resources (HR) model based on strategic management, technology, and organizational maturity levels in the context of Micro, Small, and Medium Enterprises (MSMEs). The research method used is a case study with a descriptive qualitative approach, involving in-depth interviews with practitioners in Micro, Small, and Medium Enterprises (MSMEs) in Batu City, East Java. The findings indicate that Human Resources (HR) management practices are still traditional, with limitations in workforce planning, relevant training, and well-documented performance management. Most Micro, Small, and Medium Enterprises (MSMEs) are at an early maturity stage according to the Human Resource Capability Maturity Model (HRCMM). This study indicates an urgent need for integrating a Human Resources (HR) development model that combines strategic workforce planning, technology-based training, performance management, and competency assessment in accordance with the needs of local Micro, Small, and Medium Enterprises (MSMEs). The proposed model is expected to provide valuable contributions both conceptually and practically to enhance competitiveness and sustainability at the regional level.