Managing Industrial Relation and its impact to Productivity Growth
M a na ging I ndust ria l Re la t ion
M a na ging I ndust ria l Re la t ion
a nd it s im pa c t t o
a nd it s im pa c t t o
Produc t ivit y Grow t h
Produc t ivit y Grow t h
Totok Soeprianto Totok Soeprianto Group HR Senior Manager Group HR Senior Manager
- – Industrial Relation Forum Kuta Bali, 27 - –
29 November 2008
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
TMT Group
TMT Group
PT Tiara Marga Trakindo PT Trakindo Utama PT Mitra Solusi Telematika PT Cipta Kridatama PT Cipta Krida Bahari PT Alfa Trans Raya PT Sanggar Sarana Baja PT Chandra Sakti Utama Leasing PT Chitra Paratama PT Chakra Jawara PT Sumberdaya Sewatama PT Tunas Inti Abadi PT Tri Swardana Utama PT Cipta Kridatama
Founder ’ s Mission
Founder ’ s Mission
To set up an entity that creates worthwhile & challenging job opportunities to as many Indonesians as possible, while incorporating the following values: o
Continues development of employees o
Consistent capital growth (financial,
intellectual, brand identity) and reinvestment of capital into the business, and o Maintaining highly ethical business practices- – - – Industrial Relation Forum Kuta Bali, 27
29 November 2008
Corporate Values Corporate Values
Æ
INTEGRITY
Å Å
World Class
Demanding
Proactive
Respectful
Ethical
Employee Development
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
Always maintain and practice high level of business ethics
Build mutual respect of fellow employees, customers, marketplace and suppliers
Constantly seeking to improve operations
High level of internal expectations
Bringing international talent and best practices to Indonesia
...
… … ...
Our Common Beliefs Our Common Beliefs
Constantly seek training & employee enhancement possibilities
ÆOur Objectives Through IR Our Objectives Through IR
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
Be an employer of choice Attract & Retain the RIGHT PEOPLE Harmonious / conducive working environment
Fully developed, competent & motivated workforce
High integrity & ethical business practices
Productivity based remuneration system
Continues Growth of assets capital, technology and human capital for business growth & Sustainability
Corporate Strategy Map Corporate Strategy Map
“ Improve our Return on Capital & Grow the Business Profitably ” “ Improve our Return on Capital & Grow the Business Profitably ”
Meet or Exceed Shareholder Meet or Exceed Shareholder What we must
Expectations Expectations Cost & Productivity Cost & Productivity deliver to our
Revenue & Growth Revenue & Growth shareholders?
F
Cost Effectiveness Achieve Leadership People People
New Business and Financial Assets in Strategic
Productivity Productivity Productivity Market Segments
“ “ Be seen by our customers as the Be seen by our customers as the ‘ ‘ Customer Services Company Customer Services Company ’ ’ by adding Real Value to their business by adding Real Value to their business ” ” What our
Add Value Integrated Enduring Superior “Corporate Brand”
Customers to Industry Solution
Relationship Value Proposition Image expect from
Corporate
C
us? “ “ Corporate Corporate “ “ New Business New Business “ “ Customer Services Customer Services ” ” “ “ Operational Operational Responsibility Responsibility ” ”
What Development Development ” ”
Excellence Excellence ” ” processes we
Effectively Develop New Excel at Core Operational Be Good Corporate
Manage must excel
Products & Processes to deliver Citizen
Customer Services at to achieve
The value proposition Portfolio Operational
P
Market Leadership through ‘Operational Excellence’ Excellence? The ‘ Foundations of Success ’ begin with our People The ‘ Foundations of Success ’ begin with our People
How we must Enable The Strategy through Build a Customer &
Attract & Retain develop our
Technology Platforms Process Oriented Culture the Right People
Organization
LG
& People? Human Capital Information Capital Human Capital Information Capital Organization Capital Organization Capital Our Corporate Values are the foundation of everything we do Our Corporate Values are the foundation of everything we do
Industrial Relation Forum Kuta Bali, 27 - – – 29 November 2008
Balanced Score Card Approach Balanced Score Card Approach
Mission
Values
Vision
Strategy (Thrusts, CSFs & SAIs)
Strategy Map
Balanced Scorecard
Targets & Initiatives
Personal Objectives
Satisfied Delighted Efficient & Effective Motivated Shareholders Customers Processes Workforce
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
Translate the Strategy
Our Game Plan
What/Where we want to be
What is important to us
Why we exist
Corporate Vision 2010 Strategies Create Target Alignment
What I need to do
What we need to do (3W Forms)
Cascading the strategy Cascading the strategy
Measure & Focus Strategic Outcomes
Founder Vision, Mission, Goals & Strategy
6
11 A B C
10
PHASE 1 PHASE 2 PHASE 3
PEOPLE AND ORGANIZATION DEVELOPMENT PEOPLE AND ORGANIZATION DEVELOPMENT ( PD & OD ROAD MAP ) Competency Development Competency Development Employee Competency Assessment Employee Competency Assessment HRIS SAP & PORTAL HRIS SAP & PORTAL HR Planning “ SPPOC “HR Planning “ SPPOC “
Group Corporate Vision, Mission, Goals & Strategy
Company Vision, Mission, Goals & Strategy
1
2
3
7
8
- Strategy
- Strategy
- Planning
- Planning
- Policy
- Policy
- Operational
- Operational
- Controlling
- Controlling
9
5
Industrial Relation Forum – Kuta - Bali, 27 –
Organization Organization Individual Individual System People Biz Process Mapping Biz Process Mapping Organization Design Organization Design Job Description & Specification Job Description & Specification Job Evaluation Job Evaluation Grading System Grading System
Program PMD PMD Learning Learning Career Career
29 November 2008
4
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
Human Capital Management Human Capital Management Learning Training & Development Learning Training & Development Productivity / Performance Link Reward Productivity / Performance Link Reward Quality of Work life Quality of Work life Harmonious Industrial Relation Harmonious Industrial Relation People Development People Development Mutual Trust & Respect Mutual Trust & Respect Reciprocal Communication Reciprocal Communication Transparent, Involvement & Commitment Transparent, Involvement & Commitment Effective Effective Productivity Productivity Effective Manpower Planning Recruitment Management Placement/ Assignment & Succession
Termination Management Legal Aspect Human Capital Data Base Payroll & Tax Admin HR Value Chain HR Value Chain
Causes & Impact of Causes & Impact of In conducive Industrial Relation In conducive Industrial Relation
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
Economic & Social Gap Worker’s economic consumption behavior
Worker’s level of education (macro & majority)
Worker’s solidarity Worker’s awareness of rights & responsibilities
Poor of Leadership
Unfair treatment Communication gap External Provocation
High Cost Low Productivity Low moral of the employees High turn over ÆLost of key
Ee’s High grievances & disputes Low integrity Æfraud Lack of focus Æ delay High redo / error Lack of safety Slow operation Information Leaking Opportunity for external provocateurs
Causes Causes Impact Impact
Managing Industrial Relation Managing Industrial Relation Reciprocal Communicati on
Legal Aspect Human Capital Data Base Payroll & Tax Admin
People Development
Mutual Trust, Respect & Appreciation
Transparent, Involvement Cascading Vision, Mission, Target & Strategy
Formal Training
Regular meeting
Apprentice program
Balanced of Right & Obligation
Employee Gathering
TUSRA
Basic Training
Goal Setting (blue dot setting) PMD
Equal treatment
Tool Box Meeting
Basic Supervisory Skills Training
Career freedom
Monday Meeting
Employees Feedback
Free Gender
CIM Æ 6 Sigma
Six Sigma
Encourage Local People
Employees Opinion Survey
Management Course
AntarkitA Bulletin
President Director Quality Award
Market Benchmarking
Competency Profiling
Internal Portal
Consistency
Succession
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
o
o
o
o
o
o
o
o
“Prakarsa” Program
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o Biz Trip etc.
Productivity / Performance Link Reward Productivity / Performance Link Reward Quality of Work life Quality of Work life Harmonious Industrial Relation Harmonious Industrial Relation
o
o
o
o
How we develop a conducive Climate How we develop a conducive Climate
Develop leadership at all levels
Establish intensive reciprocal communication ER:EE
Continues People Development Æ”Fully Competent”
& Motivated Workforce Æ “mature work forces” Listen & Get employees involvement Be an Employer of Choice Æ Conduct regular EOS Build attractive & competitive Compensation &
Benefits Fair treatment to employees Æ “be consistent” Build human capital with high integrity character & behavior
Intense synergy to prevent external provocateurs
- – - – Industrial Relation Forum Kuta Bali, 27
29 November 2008
Tools To Build Conducive Climate Tools To Build Conducive Climate
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
TUSRAÆ An Employees Association incl. family
Mitratama Foundation (Scholarship & Education assistances)
AntarkitA internal bulletin for information & communication (hardcopy magazine)
Internal Portal (digital online) Employee & Family Gathering
Service Years Award President Director Quality Achievement Award Team Work Building Æ Integration
Zero Accident Award
Company’s CSR English Debate Happy Hour
Positive Impact of Conducive IR Positive Impact of Conducive IR
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
Capability to Attract & Retain the “Right People”
Capability to control Turn Over Improve Quality of Leaders Encourage Creativity & Innovation
Improving degree of Employee Satisfaction Professionalism Building Æ Trust & Integrity Continues Skills & Competency Development Optimum productivity output (speed & quality) Æ
Pay For Performance / Pay For Result
Increase degree of customer satisfaction Secure company’s growth & sustainability Continues improvement of work life
Industrial Relation Chain
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
Company Customer Satisfaction Employee Satisfaction Right People Competency & Skill Development Coaching & Counseling Fair Treatment, Open & Intense Communication The Right People For The Right Job Proper Orientation & Job Desc, Personal Profiling Æ PMD Effective Leadership Reward & Recognition Customer Loyalty Attractive & Competitive Fringe & Benefits Effective Effective Productivity Productivity Work output Work output Profit and Growth Employee Satisfaction & Productivity
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
T ha nk Y ou
T ha nk Y ou
Q & A / Discussion Q & A / Discussion
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
Internal Portal
Industrial Relation Forum – Kuta - Bali, 27 –
29 November 2008
Internal Bulletin