Paper Human Resource Management (Case: Ya Kun Kaya Toast)

UNIVERSITAS INDONESIA HUMAN RESOURCE MANAGEMENT

APPLICATION APPLICATION CASE

GROUP 2 PAPER Andika Dyah Paramita - 1406513224 | Angela Jessica Stephanie - 1406513256 Annisa Ayuningtyas - 1406588654 | Anugrah Adeputra - 1406588686 Arsya Chairunnisa - 1406513312 | Arieta Aryanti - 1406513294 Ayu Meriany Savitri - 1406513331 | Camelia Indah - 1406513376

FACULTY OF ECONOMICS | MASTER OF MANAGEMENT PROGRAM JAKARTA, SEPTEMBER 2014 i| Human Resource Management…, Group 2, MMUI, 2014

TABLE OF CONTENTS

TITLE ……………………………………………………………………………... i TABLE OF CONTENTS ……………………………………………………………... ii BASIC PRINCIPLES AND THEORY ..................................... ......................................................................... ....................................1 1.1

Introduction Introduction of Human Resource Management ..................................... ........................................... ...... 1

1.1.1 1.1.2 1.2

.................................................. ................................... .......................... ........ 1 What is business?................................. ........................................ ..... 1 What is Human Resource Management? ...................................

Scope of Human Resource Management. ...................................................... ...................................................... 2

.................................................... ................................... .................... .. 3 1.2.1 Talent Management ................................... .................................................... ................ 3 1.2.2 Job Analysis and Job Description .................................... .................................................. ................ 6 1.2.3 Personnel Planning and Recruiting .................................. ................................................... .................................... ............................. .......... 7 1.2.3.1 Recruiting .................................. APPLICATION CASE OF “YA KUN KAYA TOAST” ............................................. ............................................. 8 2.1

Story of “Ya Kun Kaya Toast” ...................................................................... ......................................................................8

2.2

Case Study of “Ya Kun Kaya Toast” ................................... .......................................................... ....................... 10

2.2.1 2.2.2 2.2.3 2.3

Personal Planning - Recruitment: Ya Kun Kaya Toast Case Study  10 .................................................... .......................... ......... 12 Hiring Part Time Workers ................................... ................................................... ................. 13 Good Attitude and Commitment ..................................

Site Visit Experience of “Ya Kun Kaya Toast” ........................................... ........................................... 14

2.3.1 2.3.2 2.3.3

.............................................. ...........14 Ya Kun Mall Kelapa Gading Outlet ................................... .................................................... .................... ... 16 Ya Kun Kuningan City Outlet ................................... .................................................... ....................... ...... 17 Ya Kun Pacific Place Outlet ...................................

CONCLUSION ................................... ....................................................................... ........................................................................ ....................................18 REFERENCES .................................... ........................................................................ ........................................................................ .................................... 20

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CHAPTER 1

BASIC PRINCIPLES AND THEORY 1.1

Introduction of Human Resource Management

1.1.1 What is business? business?

A business is any activity that seeks to provide goods and services to others while operating at a profit. The management of a business including; 1. Planning: Establishing Goals and Standards, Developing Rules and Procedures, Developing Plans and Forecasting. 2. Organizing:

Giving

Each

Subordinate

Specific

Task,

Establishing

Departments, Delegating Authority to Subordinate, Establishing Channels of Authority and Communication, Coordinating Subordinate’s Work  3. Staffing : Determining Requirement in Hiring People Process, Recruiting Prospective Employee Candidates, Selecting Employees, Training and Developing Employees, Setting Performance Standards (Key Performance Indicators), Evaluating Performance (Performance Appraisals), Counseling Employees and Compensating Employees. 4. Leading: Getting others to get the job done, Maintaining Morale, Motivating Subordinates 5. Controlling: Setting Standards such as Sales Quotas, Quality Standards or Production Levels, Evaluating Standards Fulfillment and Achievements, Taking Corrective Action as needed. 1.1.2

What is Human Resource Management?

One of the parts in business management is staffing which the area of Human Resource Management. As the definition of management is ”Getting things done through people”, HR plays an important role to hire and dev elop the right people to achieve the company’s co mpany’s goal.

1| Human Resource Management…, Group 2, MMUI, 2014

Human Resource Management is a process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.

1.2

Scope of Human Resource Management

Picture 1 - Scope of Human Resource Management Management

In the past, Human Resources were plentiful, so there was little need to nurture and develop them. If you needed qualified people, you just simply hired them. If they didn’t work well, you fired them and found others. Today, the job of Human Resource management has taken on increased role in the firm since qualified employees are much scarcer, which makes recruiting and retaining people more important and more difficult. In the future, Human Resource Management may become the most critical function, responsible for dealing with all aspects of people.

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1.2.1 Talent Management Management

Talent Management Process is Goal-Oriented and Integrated Process of Planning, Recruiting, Developing, Managing and Compensating E mployees. mployees.

Talent Management Perspective: 

Understand that the Talent Management Task is a part of a Single Interrelated Talent Management Process.



Makes sure talent management decision are goal-directed.



Consistently uses the same “Profile” of Competencies, Traits, Knowledge and Experience for Formulating Recruitment Plans for a job as for making selection, training, appraisal, and payment decisions.



Actively segments and proactively manage employees.



Integrates / Coordinates All The Talent Management Functions.

1.2.2 Job Analysis and Job Description

Job Analysis: Procedures for determining the duties and skill requirements of a  job and the kind of person who should be hired for it. Job Analysis provides informations as a basis for Job Descriptions Descript ions and Job Specifications.

Job Descriptions is a List of Job’s Duties, Responsibilities, Reporting Relationships, Working Conditions, and Supervisory Responsibilities. Job Specifications is a List of “Human Requirements” such as: Education Requirement, Skills, and Personality.

Information that should be collected through Job Analysis: 

Work Activities



Human Behaviors



Machines, Tools, Equipment and Work Aids



Performance Standards



Job Context



Human Requirements

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Uses of Job Analysis Information: 

Recruitment and Selection: Duties of a job, human requirement for a job



EEO Compliance: Validating Human Resource Practices. Is it aligned with the regulation or not?



Performance Appraisal: Compare Employee Performances with the Standards



Compensation: Compensation depends on human requirements for a job, degree of responsibility, etc.



Training and Development

Picture 2 - Uses of Job Analysis Information

Steps of Job Analysis: 1. Decide how you’ll use the information This will determine the data you collect. Some data collection techniques like interviewing the employee are good for writing job descriptions. Other techniques, like the position analysis questionnaire we describe later,  provide numerical ratings for each job; these can be used to compare jobs for compensation purposes. 2. Review Relevant Background Information such as Organization Charts, Process Charts, and Job Descriptions Organization charts show the organization-wide division of work, and where the job fits in the overall organization. The chart should show the title of

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each position and, by means of interconnecting lines, who reports to whom and with whom the job incumbent communicates. A process chart provides a more detailed picture of the work flow. Finally, the existing job description, if there is one, usually provides starting point for building the revised job description. 3. Select Representative Positions Select representative sample of worker to analyze the jobs 4. Actually Analyze the Job by Collecting Data On Job Activities, Working Conditions, and Human Traits and Abilities Needed to Perform The Job 5. Verify the Job Analysis Information with the worker performing the job and with his or her immediate supervisor. 6. Develop a Job Description and Job Specifications Specificat ions

There are various methods for collecting Job Analysis Information. These include Interviews, Questionnaires, Observation, Participant Diary/Logs and Quantitative Techniques such as Position Analysis Questionnaires. Employers increasingly collect information from employees via the internet.

The Most important product of Job Analysis is the Job Descriptions. There is no standard format for writing a job description. Job Descriptions contains section that cover: 1. Job Identification 2. Job Summary 3. Responsibilities and Duties 4. Authority of Incumbent 5. Standards of Performance 6. Working Conditions 7. Job Specification

Job Specification takes the job description and defines the requirement to do the  job effectively.

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The Recruitment and Selection Process entails five main steps: 

Decide what positions to fill



Build a pool of candidates



Have Candidates complete application forms



Use Selection Tools



Decide to whom to make an offer, in part by having the supervisor and others interview the candidates.

1.2.3 Personnel Planning Planning and Recruiting

Recruitment and selection starts with workforce planning and forecasting. Workforce planning is is the process of deciding what positions to fill, and how to fill them. This often starts by forecasting personnel needs, perhaps using trend analysis, ratio analysis, scatter scatt er plots and computerized software packages. a. Trend Analysis means studying variations in the firm’s employment level over the last few years. Trend Analysis can provide an initial estimate of future staffing needs, but employment levels rarely depends just on the passage of time. Other factors such as changes in sales volume and productivity also affect staffing needs. Studying the firm’s historical and current workforce demographic and voluntary withdrawals (due to retirements and resignation, for instance) can help reveal impending labor force needs.  b. Ratio Analysis means making forecasts based on the historical ratio between some causal factor (like sales volume) and the number of employees required (such as number of salespeople). Like trend analysis, ratio analysis assumes that productivity remains about the same. c. The Scatter Plot shows graphically how two variables such as sales and your firm’s firm’s staffing levels are related. If they are, then if you can forecast the  business activity (like sales), you should also be able to estimate your  personnel needs.

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d. Markov Analysis is a mathematical process to forecast availability of internal job candidates. Markov Analysis involves creating a matrix that shows the probabilities that employees in the chain of feeder positions for a key job (such as from junior engineer, engineer, senior engineer, engineering supervisor, to director of engineering) will move from position to position and therefore be available to fill the key position. 1.2.3.1 Recruiting

Filling Open Positions with internal sources of candidates has several advantages: 

Strength and Weaknesses of Candidates has been known.



Current Employees are more commited to the Company.



Morale may rise if employees see promotions as rewards for loyalty and competence.



Require Less Orientation and Training

But, Filling Open Positions with internal sources of candidates also has disadvantages, such as: 

Employees who apply for jobs and don’t get them may become discontented.



Internal Recruiting is waste of time. Many Employers require managers to  post job openings and interview all al l inside candidates. Yet the manager often o ften knows whom he or she wants to hire. Requiring him or her to interview a stream of unsuspecting inside candidates can be a waste of time for everyone.



Inbreeding is also another potential drawback. When all managers come up through the ranks, they may have a tendency to maintain the status quo, when a new direction is required.

Sample of Job Description

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Picture 3 - Sample of Job Description

CHAPTER 2

APPLICATION CASE OF “YA KUN KAYA TOAST” TOAST”

2.1

Story of “Ya Kun Kaya K aya Toast”

“Ya Kun Kaya Toast” Toast ” was established by Loi Ah Koon in 1944 as a coffee shop. Ya Kun International was incorporated in 2001 in Singapore and

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currently has 32 Outlets in Singapore and 27 Franchise Outlets in other parts of Asia.

Ya Kun Kaya Toast has a family style work environment and “promotion from within “  “  policy. It also emphasizes emphasizes teamwork in its environment. Ya Kun has a flat structure where the staffs feel comfortable approaching their superiors.

Job Openings for the outlet staff are advertised in Chinese and English  Newspaper, as well as through t hrough recruitment notices at t heir outlets. Applicants who respond to the advertisements are invited to interview. Applicants go through two rounds of interview, one with the senior area manager and one with the operations manager.

The primary requirements for Job Applicants are their level of commitment and willingness to work shifts. Other desirable qualities include integrity, diligence and honesty. Ya Kun believes that if an applicants is commited and willing to learn, the necessary skills to excel in the job can easily be taught. Succesful applicants then go through 2 weeks of training and 3 months of  probation.

In Singapore Outlets, most of the staffs are more than 30 years of age. Mature workers generally have better work attitude and commitment. Most of the staffs are full time worker. Part-timers are only hired to substitute the full time staff when they go on a vacation or become ill. The usual of operating hours are from 7 AM to 11 PM. The staffs work 8-hour shifts. Each outlet has about 10 staffs working each of the two shifts.

The main challenge Ya Kun faces in its recruitment efforts is finding employees with the right attitude, because the technical skills for the job are relatively easy to learn. Some applicants were unwilling to work shifts,

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making it difficult for Ya Kun to hire them. Shift work is inevitable in the food and beverage retail industry.

In Indonesia, Ya Kun Kaya Toast has 28 outlets including Indonesia Head Office in Kelapa Gading. 21 Outlets are located in Jakarta, 2 Outlets in Bandung, 3 Outlets in Medan, and 2 Outlets in Makassar. 2.2

Case Study of “Ya Kun Kaya Toast”

2.2.1 Personal Planning - Recruitment: Recruitment: Ya Kun Kaya Toast Case Study

In HR management, hiring is a process of full-filling the needs of capital. It has direct relation to operational & the business itself.

To explain the process clearly & thoroughly, we are focusing on Ya Kun Kaya Toast as one of the key players in chained-café industry

Forecasting

Forecasting is an essential part in Recruitment for it will show us the cost-needed  plus it allows us to achieve effectiveness effect iveness & efficiency. The needs of workers (human resource) have strong relation with the growth of business. For example, if the business grows positively, additional numbers of workers are possibly needed; even much more, when the business is e xpanding. On the opposite, when the business flops, cut of cost is probably expected; even can lead into firing  people in extreme cases.

Ya Kun Kaya Toast can show us positive example of recruitment forecast. It has unique ways in retaining workers; through its family-like environment, flatorganization, job security & fair compensation. Therefore, the necessity is assumed mostly driven by business expansion.

With the positive & promising growth of Chained Café Industry in Indonesia (1) More than 9% growth in current value, reaching IDR 500.6 Billion in 2012;

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(2) Constant value of CAGR over 10% is expected during forecast period; Ya Kun Kaya Toast is considered a contender; with direct competition towards Dome Coffee, Black Canyon & Bengawan Solo. However the industry is highly driven by Starbucks as the biggest player.

Ya Kun Kaya Toast shows sustainability with value of CAGR up to 4%. Through this approach, we manage to conduct a forecast of recruitment, driven by business ambition & expansion, as below:

Historical Indicator

2007

Forecast

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

330.3

363.2

397.7

431.5

500.6

550.6

611.2

681.5

763.3

858.7

12%

10%

9%

8%

16%

10%

11%

12%

12%

12%

94

101

108

110

125

140

154

168

181

194

11%

7%

7%

2%

14%

12%

10%

9%

8%

7%

Sales

Industry Value (in IDR 293.7 Bio) Industry Industr y Growth (%) CAGR : 9.3%

No. of Outlets

Industry Value (in Bio)

85

Industry Growth (%) CAGR : 6.6%

Ya Kun Kaya Toast Indicator

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Sales

Company Shares

2.70% 2.50% 2.40% 2.40% 2.20% 2.09% 1.96% 1.83% 1.71% 1.58%

Company Value (in Bio)

8.9

Company Growth (%)

9.1

10

10

11

11.5

12

12.5

13

13.6

2%

5%

8%

6%

4%

4%

4%

4%

4%

CAGR : 4%

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27

No. of Outlets

27

Ratio

0.43

Additional Branch

0

Recruitment

28.2

29.4

30.6

32

1

1

1

1

9

10

10

11

Source: Euro Source:  Euro monitor market market data

2.2.2 Hiring Part Time Workers Workers

Most of the employees of Ya Kun Kaya Toast are permanent employees (full time workers). They use part-time staff only to complement the full time staff when they go on vacation or become ill. Furthermore, the advantages and the disadvantages disadvantages of Ya Kun’s hiring part-time part -time staff are:



Advantage -

Part-time staff are costing less than full time staff in terms of benefit since part time staff don’t get regular benefit and compensation but only get salary per time period (hour or shift)

-

In general, hiring part time staff will affect the society because it makes more job opportunities.

-

Business activities in Ya kun Kaya Toast will continue to operate even when the full-time staff take leave because of vacation or sick.

-

When Ya Kun Outlet opened a new outlet, Ya Kun can hire part-time staff as permanent or full-time staff instead of hiring new people. So Ya Kun doesn’t need to train new person. Less cost and effort needed  because the part time worker assume already understand the business  pace of Ya Kun



Disadvantage -

Hiring part-time staff can make additional addit ional cost to the company because Ya Kun need to pay double salary (for the full-time staff and also for the replacement).

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-

Part-time staffs tend to have less commitment than permanent staff  because part time staff only get salary base on working hours (less engage to the company company value of family family style work environment). environment).

-

The service standard of part-time staff is potentially different with the  permanent staff.

From our group interview and discussion with several Ya Kun Staff in Jakarta’s outlet, outlet, part time staff is on call when full time staff is on vacation or sick. But most of the employees in Indonesia outlet are permanent employees, so either Ya Kun ask for part time worker or full-time staff work overtime to replace the leave employees.

2.2.3

Good Attitude and Commitment Commitment

A good attitude and commitment are two important attributes that

Ya Kun

looks for in its job applicants. Is a job interview an effective method to assess these two attributes? What else can Ya Kun do to get reliable information on these two attributes?

Answer:

This method is only the prior way to asses these two attributes. The applicants will be interviewed by Senior Area Manager and Operation Manager. After passed interview process, the employee will have 2 weeks training and 3 months probations in

Ya Kun.

Through these training and probation, the

manager can see what kind of staffs that will be work in

Ya Kun.

Qualities

such as integrity, honesty, diligence and commitment are valuable values to  become Ya Kun employee. Our group suggests that simple personality test can be added for recruitment  process. Simple personality test can give the manager the personality of the applicants.

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2.3

Site Visit Experience of “Ya Kun Kaya Toast”

2.3.1 Ya Kun Mall Kelapa Gading Outlet 

Location: Mall Kelapa Gading Gad ing



Capacity: 13 tables for 4 people and 8 tables for 2 people. Total : 68  people



Working hour: 10 AM AM –   –  10  10 PM



Source: Store Supervisor, Mr. Usin (9 years working in Ya Kun). Started as waiter in Plaza Indonesia. One year later, he was moved to Ya Kun Gading outlet



Total staffs: 10 staffs. There are two shifts (8 hours). Store supervisor is in charge for scheduling working time table. For morning shift, the staffs are less than night shift. For night shift, 1 staff will be at cashier desk, 2 staffs in charge for cooking, and 3 staffs in charge for making beverages and serving to customers 

Mr Usin is responsible for daily operation. Store supervisor will submit report to headquarter every month. Inspection from headquarter is done for about 1-2 times a year



For, every opening of Ya Kun outlet, two or t hree experienced staffs will  be in charge for training new staffs



Recruitment for new outlet: Information about recruitment will be given first to permanent staffs. Usually, from these permanent staffs, they refer their family to work in new outlet



Unique thing :

Ya Kun  do

not terminate working relationship with its

staffs

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Picture 1 - Ya Kun Kaya Toast Kelapa Gading Outlet

Picture 2 - Interior of Ya Kun Kaya Toast Kelapa Gading Outlet

Picture 3 - Mr. Usin, Store Supervisor with his Crews

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2.3.2 Ya Kun Kuningan City Outlet 

Location: Mall Kuningan City



Capacity: 30 people



Working hour: 10 AM –  AM  –  10  10 PM



Total staffs: 7 people. Morning shift: 2-3 people. One person in charge at cashier clerk and baker. One person as waiter.



Mr. Dodi (30 years old) has worked since 2005. He get rotated in some of Ya Kun Jakarta outlet.

Picture 4 - Menu of Ya Kun Kaya Toast Kuningan City Outlet

Picture 5 - Interior of Ya Kun Kaya Toast Kuningan City Outlet

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2.3.3 Ya Kun Pacific Place Place Outlet 

Location: Mall Pacific Place



Capacity: 30 people



Working hour: 10 AM AM –   –  10  10 PM



Total staffs: 6 people

Picture 6 - Ya Kun Kaya Toast Pacific Place Outlet

Picture 7 - Interior of Ya Kun Kaya Toast Pacific Place Outlet

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CHAPTER 3

CONCLUSION

Ya Kun Kaya Toast as one of the branding coffee outlet in region have shown us a unique ways in retaining workers by having corporate culture of family-like environment, flat-organization, job security & fair compensation. The forecasting of hiring new employee is done by analyzing business expansion. As an approach our group used Ratio Analysis through historical data of Ya Kun Kaya Toast business performance and also industry growth. From that analysis, we can conclude that the business expansion could be more expansive compare to the market growth with the same industry. The market growth of last 5 years is 10.6% whilst Ya Kun growth for last 5 years is only 8.4 %. If Ya Kun could boost their business ambition so it will be more competitive with markets and competitors, it could mean more outlets open in regions, furthermore Ya Kun will be eager to hire new empl e mployees. oyees.

Regarding the recruitment process, we can conclude that it will be done by interviewing the candidates with Senior Area Manager and Operation Manager. Furthermore, this process quite effective but it would be better if Ya Kun can have more selection process rather than just interview. Our group suggests that simple personality test can be added for recruitment process. Simple personality test can give the manager the personality and emotional overview of the applicants. The simple personality test can be done by third party with the price of between Rp. 250.000  –  Rp.   Rp. 350.000 (approx. USD 22  –  USD   USD 32). Since the hiring process usually based on prediction of new outlets, it would be better if the  personality test done by third third party in terms of cost.

Hiring full time worker or part time worker can be tricky; it should be based on company needs. Part time worker can also mean more cost to the company. Regarding this, the management should make a leave schedule to all of  permanent employee, so that the management could make forecast in examine replacements whether it’s part it’s part time worker or full time worker with double shift.

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Part time worker is used when the permanent employee takes leave or sick. Despite of hiring new part time worker for new or existing outlets, Ya Kun can create a group of part time worker as backups to replace the empty spot left by leave / sick employee. So whenever one outlet has shortage of employee, the team member can replace the employee.

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REFERENCES

Ebert, Ronald J., and Ricky W. Griffin. (2012). Business Essential. 9th Ed., New Jersey: Prentice Hall, Upper Saddle. Dessler, Garry. (2013). Human Resource Management. 13th ed. Pearson. Euromonitor Euromonitor Study, Café & Bar Industry, Indonesia, 2012

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