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1. INTRODUCTION
Global competition is unavoidable in this global era. Each company manufacturer or services
competes intensely. This forces companies to meet customers‟ want and need. Especially in Indonesia, people mostly need good quality products, but still in reasonable
price. Every company can survive and develop into a better company if they can
transform customers‟ needs and wants and upgrade systems within the company
. Since 2015, Indonesia has entered the ASEAN Economic Community AEC which means the
global competition within ASEAN countries begin. This involves exchanges of goods, information, or employee. The table below presents the facts about Indonesia readiness to
face global economic competition.
Table 1. Readiness Facts to compete in global
No. Notes
Readiness Facts
1. Assessment of ASEAN
Secretary 2012 - 2013 Thailand 84,6
Malaysia and Laos 84,3 Singapore 84
Cambodia 82 Indonesia 81,3
2. Global
Competitiveness Report 2012
– 2013 in 144 countries
Singapore number 2 Malaysia number 29
Thailand number 38 Philippine number 52
Vietnam number 53 Indonesia number 59
3. Worker productivity
23 countries in Asia Indonesia has rank 15
Source: Meliala, et. Al. 2014
Every business must be prepared to deal with global economy. Globalization is unlimited to any certain sector of economy, product market, or company size Noe, 2013: 14. To
face the global business and economic environment, or in ASEAN as we know as AEC ASEAN Economic Community, which has been beginning on December 2015, there
4 must be several preparations. One of the several preparations is preparing human resource.
Human resource is the part of human capital in business or organizations. Human resource development holds a crucial role for every business performance Ugoji and Mordi, 2014.
In business, finance, equipment, information and people must be manage. Because of the dynamic human nature, while managing people or known as human resource management
is the most difficult one Ugoji and Mordi, 2014.
Metal crafts are a popular business in Cepogo County, Boyolali. Cepogo has been known as a place that has many metal crafts artisans. Metal crafts businesses in Cepogo county
are mostly family businesses that have been operating for decades since established by their grandparents. All metal craft businessmen who have joined Logam Timur business
group, did not have any job experience in another metal craft firm, they only run the established family business. Although they have run their business for decades, not all
metal craftsmen have the ability to manage their business, especially the SMEs. Some of them only know how to manufacture products, but not to manage them. In short, they only
have the ability to create products, but not to develop business. The ability to manufacture products without supported by the ability to manage businesses can diminish the likelihood
of growth. However, The ability of business management is an important key to manage the business, and if the management mishandled. It will affect its organization Kaswan,
2013: 7.
Indarti and Langenberg 2004 mentioned three variables that determine business success in Indonesia. They are technology, capital access, and marketing. Those three are the
deficiency identified happened in Indonesia SMEs. Setyawan et. Al., 2015 argue that SME in the selected clusters have a similar assumption that the only capital is working
capital. The SME in this study Logam Timur business group has the similar problems as Indarti and Langenberg and Setyawan mentioned above. They only count working capital
as the amount of money required for manufacturing in certain period.
In the case of metal craftsman in Cepogo, there are several previous studies. Soemarjati et. al 2013 and Setyawan et. al. 2013 gave training program to certain metal crafts
business group. Nevertheless, their studies focus on managing website to market the metal crafts products.Nevertheless, there is no evaluation of their program. In brief, the materials
on internet marketing that easier to understand needed by the metal crafts. Furthermore,
5 the training program on cost of goods sold had never been established. Thus, cost of goods
sold need to be given for metal crafts in Cepogo Timur.
The goal of this study consist of three points, 1 to describe the training program; 2 to evaluate the effectiveness of the training program; 3 to identify of training‟s need for
SME. The training program itself aims to increase knowledge of metal craftsmen of the cost of goods sold and also give a material about how to rule business in cyber era. As
Yahya et. Al. 2012 stated that SMEs profitability and productivity effective if facilitated by training.
To enhance employee productivity, training is the one method Arthur et al, 2003. As the third point
of the study‟s goal, this study is important to analyse what they will need in the future while running their business. This training actually aims to enhance knowledge of
small business in the county. All people have a chance to know how to manage the business better. As a student university, this training is the part of becoming useful in real
life. At the end of this article, there are some identification of needs and wants of metal craftsman to drive their business. A suggestion for Cepogo County stated in the part of
conclusion in this article.
Training and development have a significant aspect to involve knowledge, to improve skills, and to change behaviour and attitude in the organization Ahmed and Din, 2009. In
line with Kaswan 2013: 2, training should be a continuous activity in every organization as a daily business need. Training means a way to give new or level up skills of new or
current employees in an organization to perform their jobs Dessler, 2013. In this case, the training session was given to metal craftsmen who joined Logam Timur business group in
Cepogo County. Dessler 2013 stated that training can influence the performance of the
employee‟s record and give an impressive result. According to Dhliwayo and Nyanumba 2014 stated if a training transferred effectively it will give benefits not only to the
employee but also to the organization.
Santos and Stuart 2003 have suggested that training and development in training will give impact greatly both on organizational and personal performance. Due to the main aim
of training and development is learning Noe, 2013: 7 staff can learn more to organize their jobs. Learning in theoretical or practical is one of the ways to educate staff or
6 employees with required and appropriate knowledge and skills for daily company activities
Hamburg, 2014. Organizations should develop integrated learning in their company and business environment Hamburg, 2014.
There are two types of training program, the first is on-the-job training program and the second one is an off-the-job training program. Managers can choose which one is better to
be implemented based on the objectives set, budget, and also the designed program Dessler, 2013. This research used on-the-job training method. On-the-job-training means
a person applying what they learn about their job Dessler, 2013. Dessler in his book Human Resource Management 13th Ed. 2013 classified several types in on-the-job
training program such as apprenticeship training, informal learning, job instruction training, lectures, programmed learning, audio-visual based learning, vestibule training,
electronic performance support system EPSS, videoconferencing, computer-based training CBT, and simulated learning. The most familiar one in types of on-the-job
training is the coaching or lectures. A lecture is a simple way to transfer knowledge for big groups of trainees. This program appropriates when we want to do quickly and spend low
budget. The efficient training could reduce or remove the business failure potency in SMEs, and this is one of important factor in SME organizational success Hamburg, 2014.
Siengthai et. al 2014 stated that the training content, the trainer, the training method, and the participant‟ skills are the factors that can influenced the effectiveness of training. The
first two are depend on the interaction and collaboration between the organization and the instructorstrainers. The training activity plans should be based on needs analysis
conducted prior to the actual organization of training activities. The main purpose of the training is to increase Logam Timur business groups‟ members, a
skill to organize their business. A few weeks before the training started, the first thing to do was to internalize the importance of training. Internalization was given by persons who
have the authority to persuade in Cepogo county and in Logam Timur business group. As Ahmad and Bakar 2003 suggest if the employee who gives a comprehensible about the
benefits of training, participants will become more committed and more enthusiastic to participate in training activities. Rahman and Rahman 2013 stated that the earlier
researches show that there is a relationship between training perception and the employees‟ participation in training.
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2. METHODOLOGY
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