Group Integrative and Experiential Project

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Human Resources Division
@ PT. Setia Usaha

Group Members:
Anindhitta Chandriana ~ 1040001696

Annisa Nurrachman ~ 1040002023

Galih Savitri ~ 1040001733

Maria Elizabeth ~ 0600611433

Respati Wulandari ~ 1040001714

 COMPANY OVERVIEW

PT Setia Usaha is a printing company, focused on packaging printing, with numerous national
and multi-national company clients such as Unilever, PT ABC, Sony, etc. Quality and minimal
defect is the main strong point of PT Setia Usaha. The problem of the company is more on the
internal management than on the products itself, so we did some company visits, found the facts
by interviewing and getting data, reviewed the problems and give some suggestions to overcome
the problems.

EMPLOYEES DEMOGRAPHIC PROFILE

Graph 1: Current employee demographic profile based on education

We can see that majority of the employee are SMK

graduates and the second majority are SMP graduates. The
minority are MTS graduates and the second majority are
SMEA graduates.

Graph 2: Current employee demographic profile based on age

The majority of the employees are on the young

age with the range of 26-35 years old and 16-25
years old. These range of age are productive and
can benefit the company’s operations.
Graph 3: Current employee demographic profile based on service year

The big majority, more than 50%, of the employees

work on the company for a short period of time (0-5
years). This indicated some possible problems on
employees satisfaction and loyalty to the company.

Table 1: Employees composition on each division

Department Percentage
HRD 4.4%
Marketing 3.3%
Cetak 17.6% The majority of the employess are on production division and
Maintenance 2.2% the largest number of employees are on finishing sub-division.
Bender 20.9%
CTP 2.2%
Finishing 23.1%
PKL 4.4%
Administrasi 5.5%
Ekspedisi 4.4%
Others 12.1%
Table 2: Disciplinary Level Per Department
Department Absence
Percentage
HRD 4.0% The most discipline department is marketing since it had
Marketing 1.1%
Cetak 8.2% the lowest absence percentage. The least discipline
Maintenance 11.6% department is on other department (not mentioned clearly
Bender 16.6%
CTP 6.1% in the data) with the highest absence percentage.
Finishing 7.0%
PKL 9.4%
Administrasi 7.5%
Ekspedisi 8.2%
Others 20.3%

FACT FINDING
After three visits to the company and interviewing Bu Indah (Human Resources contact person),
also from all the data that we got, we found these facts on PT Setia Usaha HR division:

● Medical Benefit
All employee get medical benefit from Jamsostek (for the employee only) which already
comply with the Government regulation. We think no improvement needed on this part.

● HR Database System
The employment database system is using Microsoft Excel and already fulfill the company’s
needs. No improvement needed on this part.
● Employee’s Personal File
PT Setia Usaha already have complete employees personal file and already fulfill the business
needs. No improvement needed on this part.

● Leave System
The leave system is using Microsoft Excel and already fulfill the business needs. No
improvement needed on this part.

● Recruitment
The existing recruitment system in PT Setia Usaha includes recruitment requisition, job
posting, selection process, Kraepelin test and interviews with supervisor, HRD and top
management, depend on the position of the job. The problem here is the employee’s loyalty.
PT Setia Usaha already has policy that stated that if the new hire resign before two weeks
there will be no payment. We think this part needs some improvement that emphasize on
motivational fit in selection process.

● Disciplinary
The existing process on PT Setia Usaha to score the disciplinary is trough attendance report,
reviewed monthly by supervisor and HRD. The problem is high number of absence. We think
this part needs some improvements that will be explained in detail later.

● Performance Management and Measurement

The existing process are include end of contact review, attendance review and KPI, which
exist but not fixed and used yet, and reviewed by supervisor and HRD. The problem is no
specific, measurable, attainable, relevant, time-bound tool. We think this part needs some
improvement that focus on accuracy, diligence and tidiness that will be explained in detail
later.
● Employee Engagement and Satisfaction
There was employee gathering but has been postponed for a long time since it made working
distraction to the employees and uncontrollable gathering plan. We suggest the gathering
should be well planned and well communication. The objectives are to create refreshment
program for the employee, to engage the employees share of belonging and to share the
company’s achievements and goals. This will be connected with the employees loyalty and
performance.

● Training and Development

The existing process are ‘learning by doing’ method for the office staff and training by
supervisor for production staff. The problem is undocumented processes, so when an
employee in a division retired or resign there will be difficulties to replace that employee and
make sure the company’s operation run well as usual. We suggest the company to create
standard of procedure for the core processes, which will be explained later.

● Role Management
The existing process are one-man-show and discrepancy of role for the staff. These existing
process are the problems that could disturb the operation. We suggest to create clear job
description for each position in order to define the scope of work and delegation of
responsibilities.

● Compensation
The existing compensation procedure are decided by the top management and standardized for
new hire (fresh graduates). We can not suggest any improvement on this part since it is out of
scope due to confidentiality issue.

● Rewards and Recognition

The existing review process for rewards and recognition is based on monthly attendance only,
which we think can be improve by create specific reward measurement to motivate the
employees. The award is not limited to cash only but can also be on the other forms, like
certificate.
● Payroll System
There are two existing models of payroll on the company: monthly payment by transfer and
daily payment by cash. The problem is no standardized procedure so we suggest to create
salary transfer system only to minimized the workload.

From all the facts we mentioned above, we decided to focused on these problems that could be
improved:
- Recruitment and retention
- Disciplinary performance management and measurement
- Standardization

We proposed a solution which is the integrative employment life cycle which will be described
more on the latter part of this paper.

INTEGRATIVE EMPLOYMENT LIFE CYCLE

 EMPLOYEE RECRUITMENT AND RETENTION

Recruitment Steps:

1. Recruitment requisition by Supervisor

2. Job vacancy posting by HR
3. CV screening by HR
4. Fill the application form (if meet the requirement)
5. Kraeplin Test by HR (Failed and pass)
6. Personality and motivational fit interview by HR (failed and pass)
7. Interview by Supervisor
8. Interview by top management (pass)
9. Medical check up (pass)
10. Offering the job to candidate
11. Accept the offer (New Employee)

Candidate(s) Competency

 Clarity of what expected from a job/position

Clearly define a Threshold Competencies or a minimum requirement to get the job done.

 Matching job requirement with individual capabilities.

Company must select the best candidate and develop the Talent Pool by choosing the
capability of candidates according their talents.

 Sharpen Performance
Identify what knowledge, skill and behavior needed to meet long-term organization needs
  Align behavior with organization value and strategy
Convey communication to the employees what must be focused to align with the
organization values and strategy.

Our goal is to match workforce requirements with workforce capabilities by getting the right
people with the right skill at the right environment at the right jobs at the right time.

Employee’s Competency

Workforce Requirement : Vision and Mission, Business Strategy, Organization Climate,

Leadership Style.

Workforce Capabilities : Job Challenges, Technical Competencies, Individual Competencies,

Organization Knowledge, Personal Traits and Motivation

To achieve PT Setia Usaha vision and mission, the organization need workforce capabilities with
certain organization knowledge, personal traits and motivation.

To execute its business strategy, the organization need workforce capabilities with certain hard
competencies, behavioral competencies, job challenges, organization knowledge, personal traits
and motivation.

To be able to quickly adapt with the organization climate and leadership style, the organization
need workforce capabilities with certain behavioral competencies, organizational knowledge,
personal traits and motivation.

Company Culture

The objective of creating company culture is to develop the value and speciallity of the company
it self. Company is created to be the employees “home” , it is not only a place to work and
receive the salary at the end of the month or in a certain time of period. To retain the employee
royalty, the company must have or creates attraction or positive values so employees will feel
that they are appreciated by the company, it is not only measured by salary but also the good
working environment. There are several points about creating company culture:

1. Pray together before working

Praying is not as simple as it is. Before we start our activity or work, pray can create a good
feeling to all of the staff and company’s owner. Praying together will create positive energy to
start the day. Pray together can be applied in morning before work and staff shift.

2. Uniform
Wearing a uniform will create uniformity in the company. We can say it is a mark of
indentification. Since PT Setia Usaha has its uniform already, it is good to be the company
characteristic.

3. Motivational Quotes
Motivational quotes are very important in our daily lives. It will create or increase people or
employees mood and self confidence. PT Setia Usaha could put these quotes in every side of the
wall so that employees can see they easily and regularly. Motivational quotes examples: Kita
menggapai bintang setapak demi setapak; Tak ada hal yang mustahil bagi hati yang berkemauan;
Batu ujian terbesar dimuka bumi adalah menanggung kekalahan tanpa kehilangan semangat, etc.
It important to maintain everyone’s spirit and confidence.

4. Canteen or Lunch Together

Company can schedule or set a time to have lunch together all of the staff and owner, sit together,
eat together in the same place. The time could be once in a week or once in two weeks. This
moment of lunch together will create a sense of togetherness or being like a family. The lunch or
food it self does not have to be very luxurious, the food can be simple because the food is not the
point.

5. Coaching
Coaching is very important in every work field. It can be an upgrading employees working
capability or an positive entertainment that will facilitate employee to do better in their job. This
activity can be set in the company or factory once in a week by watching DCD motivation coach
by Indonesian motivators. It takes only one hour to watch it so it will not take a long time or
disturb working time. To make it works, all of level of staff must sit together with the owner of
the company, so all staff will understand the importance of coaching. Company can held or
organize a motivation seminar once in six months or once in a year by inviting famous motivator.
This seminar can be as an appreciation to all of the employees for their dedication to the
company.

6. Gathering
Simple gathering can be held once in a month by sitting together in one room. The purpose of
this simple gathering is to broaden their horizon by sharing their experiences to each other, every
employee can express their ideas and creativity or asking for help to solve their problems in
lives. This simple gathering can takes 3 hours, the company must set this schedule carefully.

Outbond is one of good form of gathering. Company can held this event once in a year. To create
company value through outbond, owner or staff must take one hour to share their experiences
and listen to employees conversation, thus it will create a good coordination among others.
 EMPLOYEE PERFORMANCE MANAGEMENT

Why do we do Performance Management and Development Planning?

Benefits to employee:

- To clarifying employee’s expectations

- Provides for ongoing conversation

- Formalizes development goals

- Links pay to performance

Benefits to manager:

• Supporting to set clear objectives

• Enables better planning

• Provides for ongoing conversations about performance and development

• Links pay to performance

Benefits to the organization:

1. Providing for consistent process globally

2. Employee work is aligned with organizational goals

The process in the Performance Management and Development Planning:

 Objective setting and Development Planning

To make something desired to be happened, the company needs to have a good plan,
which accompanied with goals and objectives. A goal may have one or many objectives
that would need to be fulfilled to achieve the goal. The method for setting objectives is
using the S.M.A.R.T way. S.M.A.R.T objective are the stepping stones towards the
achievement of our goals. That refers to describe the key characteristics of meaningful
objectives. This kind of slogan we create for the employee performance area.

S.M.A.R.T:

 It must be Specific, means that the objective is concrete, detailed, focused, and
well-defined. This should be straightforward, emphasizes action and the required
outcome to determine specific factors that company needs to measure and assess
the performance. It also has to be aligned with the company’s objectives. To help
set specific objectives, here are the example of questions to ask:

How am I going to do this?

When do I want this to be completed?

Who is going to do what? Who else need to be involved?

Why is this important for me to do?

 What am I going to do?

To evaluate the answers of those questions, there are further diagnostic

questions to help in reviews:

“What strategies will be used?”

“Is the objective well understood?”

“Is it clear who is involved?”

“Is the outcome clear?”

“Will this objective lead to the desired results?”

1. It must be Measurable, means that the measurement source is identified and the
results of the actions can be tracked (numbers, comparison, quantity,
benchmarking), as the progress towards achieving the objective. Measurement is
the standard used for comparison. To be able to manage the performance, it must
be able to measure it. Measurement helps to know when the objective has been
achieved. Diagnostic questions:

“How will I now that the change has occurred?”

“How far this improvement affects the final results?”

2. It must be Achievable, means it should be logically affordable for them to reach

that point, so every employee will keep motivated to be able to get any rewards
the company offers. Diagnostic questions:

“Can we do this with the existing available resources?”

“Is this work feasible to conduct within a given timeframe?”

“Has anyone else done this successfully?”

“Do I know the work-constraints?”

 3. It must be Realistic, means that the resources needed to get work done are readily
available. To achieve the objective must require resources such as skills, money,
equipment, etc to support the tasks in order to achieve the objective. Diagnostic
questions:

“What priorities to be concerned more to make things happen?”

“Are the available resources sufficient to achieve this objective?”

4. It must be Time-Bound, means set the deadline for the achievement of the
objective, which can create the urgency, serious prompts action-taking. Without
setting the deadline, the motivation and urgency required to run the tasks will be
decreased. Diagnostic questions:

“Is there a stated deadline?”

“When will this objective be accomplished?”

 Implement and Update Plans

The next step is implementing the plan by establishing good relationship amongst
employees and between employees and the company. Then undertaking the
implementation steps that occurred within each department, work units, where under their
own supervisor’s responsible. As ongoing operations day-to-day, the implementation
should be monitored regularly and continuously to figure out the conditions in the work
environment and the actions done by employees. This type of plan must be periodically
updated and improved / upgraded.

 Year-End Performance and Compensation Discussion

After 1 year of the business activities and tasks run by the employees, company should
prepare the performance discussion for employees. This is conducted by creating actual
performance discussion agenda to guide in conducting the meeting for the employee and
supervisor/manager, which include:
 • Discussing about specific behaviors observed from the previous performance
period, including corresponding documentation and the employee’s self-
assessment

• Reviewing status of established goals (attainment and non-attainment)

• Identifying priorities including skill-full development needs for the coming year

• Create goals for the coming year

• Agreeing on how/when to record the employee’s comments and finalize the

discussion document

Here are the ways of giving good feedback and what factors well required in receiving
feedback that occurred in the performance discussion meeting.

Giving good feedback:

1. Direct

2. Timely

3. Relevant to the specific task

4. Only about the performance the employee can control

5. About both positive performance and areas in need of improvement

6. Balanced

7. Non-personal and mutually respectful

Receiving feedback well by active listening, involving:

1. Eye contact

2. Not interrupting

3. Asking questions, responding clearly

 4. Concentrating

5. Seeking meaning

6. Considering nonverbal and verbal communication

7. Interpreting

8. Summarizing

9. Paraphrasing

10. Remaining open-minded and positive

11. Identifying problem performance

12. Forming a jointly developed plan

The important issues in the employee performance management strategy

Disciplinary

This issue will be discussed later below in its own scope.

Capability

Every employee has his/her own capability level depending on their experience and
knowledge that will differentiate their level among other employees. This requires different
levels of supervision. The employee should be assessed from the starting level required, then
progress into the next level which definitely need supervision until the employee familiar with
the use of any safety or tools used on the job. In here, the employee needs to have adequate
trained to carry out that job properly and safely. However, the training will be needed to be
reviewed, if the tasks and process or equipment used on the job has changed. Other than that, the
supervisor must have his/her own work notes to record all employee’s daily work progress
reports. This is the way to ease the supervisor to investigate if there is something happened, or
some problems occurred related to the employee in the future, by tracking back through this
work notes reports, the solution to those problems are expected to be found and met.
 Here is the example of employee capability level, through experience the employee has
and supervision level that employee need according to his/her training level.

Employee training level:

Level 1, is for a beginner or new employee  required supervision level:

• Full direction of tasks and direct oversight of work

• Supervisor present at all times

Level 2, is for partly experienced employee  required supervision level:

1. Assignment of activities by supervisor

2. Supervisor present during a proportion of the work. The proportion of time spent
depend on the level of risk involved in the task

3. Supervisor to discuss all reports face to face with the trainee prior to signing off

4. A plan must be in place to manage the unforeseen trainee difficulties. This

involves supervisor’s intervention as required

Level 3, is for experienced employee that still working under supervision  required supervision
level:

5. Assignment of activities by supervisor with occasional overseeing of work as

required

6. The supervisor who assigned the work must check all reports, and must be readily
available for discussion

7. A plan must be in place to deal with unforeseen trainee difficulties

Level 4, is for employee capable of stepping up to the supervisor level  required supervision
level:

8. Employee has obtained much experience and/or a good qualification

 9. Supervisor feels confident that the employee has got fully trained and self
managed of health and safety, and to others in the workplace

10. The employee is capable with no supervision working, and capable to be trained
to supervise others

Motivation

Motivation is the key to performance improvement. Generally, people will do what they
want to do or otherwise they need to be motivated to do. So, with the employees in the company,
to excel their works on their own job they must be motivated or driven to it, either by themselves
or through external stimulus.

As some of employees are born with their own self-motivation or drive, and some are
not. Therefore, for those who are not, they can be motivated, for motivation is a skill which can
and must be learnt, and finally this has bigger effect for the company to survive and succeed.

There are strategies for motivation:

12. Positive reinforcement / high expectations

13. Effective discipline and punishment

14. Treating people fairly

15. Satisfying employee needs

One of the examples is company can provide the employees’ personal needs, such as:

In every year of the beginning new start of school, the employees who have child must
need to provide their child with the school equipment. The company can participate to
prove the attention it give on reducing them of spending expenses for these stuffs by
providing the bags, books, and writing tools which are necessary for their education.

7. Annual Dinner – special occasion with preparation

8. Regular meeting / gathering – provide time to watch coaching video, get and give
feedback / any work-related inputs amongst the employees
 9. Provide employee’s personal needs – school equipment for the employee’s child

10. Leader must inspiring the employees – to be a great role model, lead by example,
motivate, inspiring, mentoring, coaching, have clear vision, encourage excellent
teamwork, to winning and meeting the work target (company’s objective) such as
producing zero defect products (satisfying consumers’ needs)

16. Setting work related goals

17. Restructuring jobs

18. Base rewards on job performance

There is a gap between actual state the employee experience and the employee’s desired
state, which the company through its managers should try to reduce this gap. And “Motivation”
is the answer to reduce this gap.

Motivation works through inducing the others in a specific way towards goals
specifically set by the motivator (company is involved in it). The goal and this motivation
technique must be attached to the company’s policy. In short, the motivational technique must be
tailored to the employee’s work situation and to the organization (company).

The factors which are in the highest consideration to raise the motivation for employees:
work safety/security, advancement (can be in the promotion form, and training), types of work,
the company (they proud to work for), pay and benefit (rewards), and working conditions. Even
though pay and benefit is not the only one considered motivator, yet it does not mean that the
company could ignore this pay and benefit factor, and rewards the employees poorly or unfairly.

Capability and Motivation Relationship

Employee’s Job Performance is considered to be a function of employee’s capability and

motivation [www.accel-team.com/motivation/index.html]:

Job Performance = f (capability) (motivation)

Capability depends on education, experience and training while its improvement is a long
process and slow. Motivation can be improved quickly.
To assess the employee’s performance, here are factors that can be considered in the employee
evaluation form:

 Obedience (Kepatuhan)

 Work discipline (Disiplin kerja)

 Absence (Absensi)

 Job understanding level (Daya tangkap)

 Behavior and attitude (Sikap dan tingkah laku)

 Honesty (Kejujuran)

 Capability to meet the work target (Kemampuan untuk menyelesaikan target)

 Work spirit (Semangat kerja)

 Accurateness, carefulness, cautiousness in work detail (Ketelitian)

 Work inisiative (Inisiatif kerja)

 Health (Kondisi fisik / kesehatan)

Work Satisfaction

There are three important perspectives that inspire the employee and how they approach
their work:

1. It is a job → if they approach it as a job, they must focus primarily on the financial
rewards, and may have little interest on the nature of their work. Consequently, while
money is important, then if there is opportunity comes to them with more pay, they will
likely move on.

2. It is a career → if they approach work as a career, they are likely interested in

advancement (job promotion). This type of employee eager to climb the career ladder as
far as possible or want to be regarded as one among the most highly professionals in the
work field. Status, prestige, and power that come with the job are really motivating them.
 3. It is a calling → if they approach job as a calling, they will focus on the work itself.
This typical of employee is less interested in financial gain or career advancement,
instead their preferable interest is much on discovering a sense of fulfillment from the
work itself.

Therefore, the able to figure out what approach the employees tend to be among those
perspectives, is really helpful for the company to arrange the strategy to improve the
employee performance in the way to reach the company's objectives.

DISCIPLINARY

Discipline is the attitude of an employee working in following the rules set by the company
which is based on self-awareness to adjust to company regulations.

Work discipline will determine the quality of work an employee, but unfortunately by some
experts claim that the discipline of employees working in Indonesia is still relatively low.

There are several factors that affect the discipline of work :

1. Personality factors
The values that uphold the disciplines which are taught by parents and society will
become a reference for the application of discipline in the workplace.

2. Environmental factors
High work discipline tiddak just show up, but through continuous learning process.
The process of learning to be effective then the leader of a modifier agent needs
to consider the principles are consistent, fair, positive and open attitude.

To improve employee discipline there are two ways :

3. Reward
A company reward program can be as simple as recognizing the contributions of an
employee. Company reward program can be either peer- or management-driven, or both,
 and can help motivate employees to continually improve; to be innovative and manage
resources creatively; to set high standards and goals; and to work together in teams.
Recognition is a great esteem builder and can help create workplace loyalty and build a
sense of community. It helps employees see what their co-workers are doing, and why.

4. Punishment
If one employee violates the efforts necessary disciplinary action for socialization
principles such as fair discipline can be maintained.

Reward which has been running at PT. SU :

4. Employee Of The Year ( not existing anymore in a few years)
5. Monthly Bonus (still exist)

Based on these facts, we suggest a few rewards that should run at PT. SU :
11. Employee Of The Year
Previously scoring only on the basis of absence. Now we suggest to integrative scoring
between absence and performance. Employee of the year get 1 times salary of that
employee.

12. Monthly Bonus

Rewarded to employee who achieve target in that one month (calculated based on target
each division). This award is not limited to cash only, it could be other reward such as
certificate

13. Annual Bonus

This budget rewards depends on company's profit. Rewarded to all employees based on
grade of absence and performance. Example grade of absence and performance :
Grade A – get bonus 1 times of salary, Grade B – get bonus 80% of salary and Grade C –
get bonus 50% of salary
To punishment that is still running at PT. SU : Cut The Overtime. We suggest to add some
punishment for employee such as :
13. Postpone The Promotion (example : employees will be promoted, but he did a fatal
mistake, then it becomes postpone the promotions)
14. Cancel The Bonus (example : if the employee should he get a monthly bonus for
achieving the target company, but employees are often not present, then the bonus is
canceled by the company)

To stimulate motivation and disciplinary employees, company also provides several other
benefits :
8. Lunch box
Create togetherness with set a time to have lunch together in one room, maybe could be
once in a week or once in two weeks.
9. Outbound Activities
Conduct outbound maybe once a year. where employees can learn about cooperation and
refreshing time
10. Accelerating promotion
For potential employees, companies can provide to employees get promotions.
11. Program Orang Tua Asuh
Paying attention to employee's personal need: every new beginning school year, company
give school equipment as a gift for employees who have child

STANDARDIZATION FOR OPERATING PROCEDURES (SOP)

The standardization process is very important not in HR process only, but in all business
processed. As we know that the company’s objectives has been set up, this SOP will guide the
employees on how the achieve the objectives. The purpose of standardization is to have a
standard administration and process guide for developing, revising, approving, implementing,
and socializing which cover consistent information. The socialization will ensure all people
concerned are informed about the changes so that the SOP is implemented correctly. Policy and
Procedures must be followed by all employees when they are creating new SOPs or revising the
existing SOPs. The key control objectives are:
 To create uniformity of information covered by the SOPs that created by different
divisions.
 To ensure that all processes have an adequate control and comply with the applicable
Law and Regulation.

The Business Process Owner obliges to draft an SOP in order to guide related employees to
understand the business process behind the activities within each function. The SOPs’ content
could be expanded in order to give more clarity of the information given to the employees.
However the standard requirement is mandatory to be covered in all SOPs and the content of the
policy should be in line with the law and regulations. Process owner is an employee who is in-
charge for a specific function and takes ownership for running that function according the
approved SOPs. The socialization method for SOP could be by printed letter or the training.

SOP Policy
5. Process owner must initiate, prepare and update the Policy and Procedures (SOP) for all
functional activities under his/her area responsibility.
6. The SOP must be reviewed by the affected Department Head prior to Top Management’s
approval.
7. The process owner must socialize every change in existing SOP or new SOP to all related
employees prior to the effective date of implementation.
8. SOP review is mandatory once every 2 years. Whenever there is not any change
necessary thus process owner must update the issue date and re-circulate the SOP
approval.

SOP Procedures
Creating the new SOPs or revising the existing SOPs
 Whenever the process owner / an employee initiates a new process or changes the current
process, it is very important that this activity is followed by updating the SOP.
  The process owner must circulate the draft of new SOP to the related and responsible
employees to ensure the adequate system have been designed to minimize the risk
exposure.
 The process owner must deliver information to effected functions/employee in regards to
the changes of the SOP. Whenever the SOP is totally renewed or revised from the
previous one, the process owner will either conduct training for the users to ensure the
new process is implemented correctly.

Standardization as a Buffer
The SOPs also purpose as a buffer whenever a process or function is failed. One of the examples,
if retaining employees program failed, the new incumbent employee whether new or transferred
from another job function will be able to do the job by having the SOPs. Even if the hand-over
process is missed but the job process will continue without disturb the business operations.
 CONCLUSION

HR systems and processes are integrated one another, it should be aligned with the employee’s
life cycle from recruitment process, hiring, on boarding, the employee movement, retaining,
performance management system, disciplinary, bonus and reward system, until the termination
(retirement or resignation). If the company is good in attracting people to work at PT SU, but the
work environment or the benefits are not competitive enough in the market, then the employee
will tend to leave the company. In this case the retaining program will be needed. If the
company’s culture, environment and benefits are good, but the recruitment process is poor, then
who will be attracted to apply at PT SU? Again, all HR systems and processes are integrated one
another.

The company’s vision and mission will be cascaded in company’s business strategy and
objectives (Strategic Management). How to achieve the objectives will be arranged by the
policies and procedures (SOP). The company’s objectives will be cascading down to each
department, and department’s objectives will be cascaded down to each employee. This
employee’s objective should be specific, measurable, achievable, relevant, and have a time-
bound (SMART), which will be evaluated by the performance management tools. Subsequent to
the performance, the company should appreciate the good one by providing reward. The
company should do coaching, developing, or may be punishing the employee who has below-
expectation performance.

The management level in the organization have the accountability to transform “what and ho
aspect” to their employees. Each element in the organization has to contribute to perform the
whole picture of near future. Gain commitment from top management and organize to all key
persons is a must to gain a long-term change process. Synergy across function is a must to
operate the business in efficient and effective way to achieve long-term success. It means that
synergy is a must in order to achieve the company’