Human Resource Management

Michaela Monic
4 min readDec 1, 2020

Human Resource Management or HRM is the process of managing people in organizations in a structured manner. HRM job include hiring people, retention of people, pay and perks setting and management, change management and performance management. HRM also managing people in the form of a collective relationship between management and employees.

There are so many challenges HRM faces especially in recession times like this. Many company go bankrupt during this time because they can’t keep their position. Most businesses and companies are effected by this pandemic, but it’s more harder for big companies. So, the biggest challenge for HRM right now is sustaining the company’s growth and position.

The news regarding Omnimbus Law stir the public anger in Indonesia. But what exactly is Omnimbus Law? In other words Omnimbus Law is The Job Creation Law, or the Omnibus Law on Job Creation. Omnimbus Law aims to improve the ease of doing business and boost the national investment. So why does it caused many Indonesians oppose this Omnimbus Law? This Omnimbus Law has advantages and also disadvantages, therefore it’s a complex matter to be explained. But to put it simply, the pros of Omnimbus law is to loosen up Indonesia’s complex business, labor, land acquisitions, sanctions, research and innovation, and environmental legal network in an effort to attract investment and boost the economy. The cons of Omnimbus Law is many employees are at risk. In Article 90B Cilaka [Job Creation] which states that the wages of MSMEs may not follow the minimum wage as long as they are not below the poverty line. In addition, the poverty line for South Jakarta last year was around IDR 730,000. That would be a a great disadvantages for employees.

In Indonesia, there are laws that protect employees against discrimination. Article 27 of the Indonesian Constitution states that all citizens shall have equal status accorded by law and the government, and are obliged to respect the law and government without exception, and each citizen shall be entitled to work and to have a reasonable standard of living.

Law No13 of 2003 regarding Labor (the “Labor Law”) states that termination of an employment relationship shall not be permitted if it is based on the ideology, religion, political inclination, ethnic group, race, social group, gender, physical condition, or marital status of the employee. Article 3 of Government Regulation No78 of 2015 regarding Wages (“GR 78″) states that in determining an employee’s wage, an employer may not discriminate between male and female workers who perform work of equal value. Law No21 of 1999 ratifies International Labor Organization (“ILO”) Convention No111 concerning Discrimination in Respect of Employment and Occupation, and Law No80 of 1957 ratifies ILO Convention No100 concerning Equal Remuneration for Men and Women for Work of Equal Value. Law No8 of 2016 on Disabled People (“Law No8″), employers are required to ensure that at least 1% of their workforce is comprised of disabled persons. Law No8 also requires employers to accommodate facilities to enable employees with disabilities access. Enforcement of the law is handled by the Ministry of Social Affairs.

There are severeal needs for a firm’s human resources. But demand forecasting and supply forecasting is the most important thing to prepare a firm’s human resources needs. Supply forecasting is to determine the current resources available to meet the demands. Demand forecasting is the detailed process of determining future human resources needs in terms of quantity of the employees needed and the quality of the employees such as talents and skills that’s required to meet the company’s current and future needs.

There are so many factors that make it difficult to recruit qualified employees especially in this generation. Younger generations these days tend to not often stay with an organization more than two or three years. The applicants are fewer because of the job posting is not being seen by enough people and the competition between companies that need qualified employees.

There’s a selection proccess for applicants in order to be selected as an employee. The six steps in the selection proccess is recruitment, reviewing candidates applications, conducting initial candidate screening, interviewing in person, making final candidate selection, testing the candidate.

References :

William G. Nickels, James M. McHugh, and Susan M. McHugh. 2016.Understanding Business, eleventh Edition. Mc Graw Hill.

https://www.ssek.com/blog/discrimination-and-employment-law-in-indonesia

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