HUMAN CAPITAL IN ISLAMIC BANK AND ITS EFFECT ON THE IMPROVEMENT OF HEALTHY ORGANIZATION AND EMPLOYEE PERFORMANCE

Human resources have become one of strategic issues of Islamic banking in Indonesia. Islamic bank is important to have a good human capital, who has specialized knowledge and expertise related to Islamic aspects. The quality of human resource that is bad will affect the organization to grow unhealthy and also the employee performance. This research aims to test and analyze the role of human capital that affect the healthy organization and the employee performance. This research was conducted on all employees of Islamic banks in the Province of Daerah Istimewa Yogyakarta (DIY) and East Java. The reason is because nowadays, Islamic banking in Indonesia is experiencing a slowdown growth of business performance, especially market share so that it needs human capital with good quality. Sampling technique is using purposive sampling. Bank employees came from Islamic bank, government bank, and private bank. The result concludes that human capital (HC) has significant positive effect on the improvement of employee performance (EP) and healthy organization (HO). Meanwhile, healthy organization (HO) has significant positive effect on the improvement of employee performance (EP). Healthy organization mediates the relationship between human capital and employee performance.