HUMAN RESOURCE MANAGEMENT ANALYSIS

AT ROYAL RAINBOW TOURS

BY: RINA KURNIAWATI
Abstract
Human Resource management is an important aspect for any organization in
pursuing its goal. Without a careful knowledge and management efforts,
inefficiency will likely to be faced. Theory presents an ideal approach how
Human Resource Planning should be conducted. However, the writer is
intrigued to discover how Human Resource anagement is applied in real
situation, since the real world is dynamic and always change. This paper is a
case study on how Human Resource Planning is applied in Royal Rainbow
Tours, one of travel agency in !akarta. The result shows that the best practice
does not always in accordance with the theory. Human Resource anagement,
in this case of Human Resource planning, is regarded as fle"ible approach
suited the needs of the organization.
Keywords# Human Resource management, Planning, Royal Rainbow, Travel
$gency
1.0. INTRODUCTION
1.1. Backr!"#$ !% t&' St"$(
People have very complex needs. One of them is the need for traveling
either for leisure or business purposes. Seeing that a person has traveling
needs whether for leisure or business, it creates business opportunity in this
sector, such as transportation, accommodation, travel agents, tour operator,
food and beverage service, etc.
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Travel agent as one of the businesses involved has a considerable role
in fulfilling a person needs for travel. Travel agent provides services in which
make it easier for the person fulfill his travel needs. By using its service, people
do not need to waste their time or energy to make travel arrangement. ust by
picking up the phone then the travel agent will take care the rests.
!n !ndonesia, travel agent has become partner of the society where it is
there to assist them in making necessary travel arrangement they need. !n
akarta itself the number has reached more than five hundreds "according to
the list taken from #S!T#$. %ith the numerous presence of travel agent, it
makes this business extremely competitive. &ertain strategy is implemented by
each travel agent in order to survive in the wave of competition.
'uman resource management is one factor that is significantly important
for a company to achieve its goal. !t is the tool which makes a company be
more competitive and will able to produce highly (ualified services and
products.
)oyal )ainbow Tours is one of the travel agents in !ndonesia. !t has
been in the business for sixteen years. %ith long its history, experience, as well
as its ups and downs, there must be something that can be learned from the
company.
#s it is important to study about human resource management in Travel
&ompany, therefore, this paper is titled )HUMAN RESOURCE MANAGEMENT
ANALYSIS IN ROYAL RAINBOW TOURS.*
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1.+. ,"r-!s' !% t&' St"$(
This paper will discuss the theory of human resource management
process, how the human resources management process applied by )oyal
)ainbow tours in order to survive in the industry.
1... L/0/tat/!# !% t&' St"$(
The study will be limited on the process of #c(uiring 'uman )esources
which involve 'uman )esource Planning and Staffing at )oyal )ainbow Tours.
This is in accordance with the limitation of time and knowledge the writer has
and focusing on the main issue of the findings at )oyal )ainbow Tours.
1.1. M't&!$!2!( !% t&' St"$(
The study is (ualitative descriptive analysis using two instruments*
observation and interview.
1.3. G!a2 !% t&' St"$(
By analy+ing the theory and the application, the gap between the theory
and the application can be identified and reasons can be discussed. The result
of the study can generally be used as an input for those who are interested in
managing a travel agent and specifically be an input for )oyal )ainbow Tours to
optimi+e their human resources process.
+.0. THEORITICAL 4RAMEWORK
+.1. D'%/#/t/!# !% Tra5'2 A'#t
!n tourism industry, there are several terminologies commonly used such
as travel bureau, tour operator and travel agent or travel service. The three
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terminologies seem to have significant differences. 'owever, basically they all
are the same in practice although from the activities involved are different.
The terminology for travel bureau which is commonly used in !ndonesia
is e(ual to tour operator which is commonly used internationally. #ccording to
#.. Burkat ",-.,/01231$ 4tour operator is a distribution company in tourism
industry which activities involves service provision based on demand, transport
arrangement, accommodation arrangement, and other necessary services
needed by tourists in particular tourist destination, as well as package tour
selling through its agent or through its office to individual or group with certain
prices.
#ccording to the 5aw of Tourism 6o.2, 1227, point 11 states 4%saha
!asa Per&alanan Wisata merupakan usaha penyediaan &asa perencanaan dan
atau &asa pelayanan dan penyelenggaraan wisata.' "Travel bureau is bureau
which provides travel planning and organi+ing services$.
8rom the definition it can inferred that travel bureau or tour operator is a
business which serves tourists or traveler in planning, arranging, and organi+ing
their trip starting from preparing the necessary documents, amenities, and
facilities needed during the trip, either partly or entirely.
The activities of travel bureau, according to the 9inistry of Tourism, Post
and Telecommunication above involve*
a$ &reate, sell and organi+e package tour
b$ Provide transportation service to individual or group
c$ )eserve accommodation, restaurant, and other facilities
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d$ #dminister travel documents
e$ Organi+e tour program
f$ Provide service for convention
#ccording to 9inistry of Tourism, Post and Telecommunication :ecree
Travel agent is a business which organizes travel and it functions as the
mediator in selling or serving for travel. The activities involve*
a$ Selling ticket of transportation and others
b$ Provide )eservation services
c$ #dminister travel documents according to the implemented law and
procedure
+.+. H"0a# R's!"rc' Ma#a'0'#t
#ccording to ohn 9. !vancevich and 5ee Soo 'oon ";77;$ 'uman
)esource management is the function performed in organi+ations that facilitates
the most effective use of people "the employees$ to achieve organi+ational and
individual goals. The functions can be group into the following categories*
+.+.1. HR ,2a##/#
'uman resource planning involves determining future human resource
needs and <ob re(uirement. ') plans are derived from the organi+ation goals,
the organi+ation=s strategy, conditions faced by the firm in the external
environment and the nature of its current employee=s knowledge, skills, and
abilities. %ith ') planning, the firm ensures that sufficient numbers of properly
trained staff are available at all times to carry out the firm=s operations efficiently
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and sufficiently. 'owever, ') planning must include the following to ensure well
defined strategic of the company can be carried out.
1. Situation analysis and environmental scanning
;. 8orecasting demand for human resources
>. #nalysis of the supply of human resources
-. :evelopment of plans for action
Situation analysis and environmental scanning involves a strategic plan
to adapt with the environmental circumstances. ?et, currently changing
environment re(uires the ability of being global scanner in order to say
competitive.
8orecasting demand for employee re(uires a strong sense of the future
conditions although (uantitative tools are available in the market to measure the
demand. !t is (uite difficult to do if related to the (uestion of how many
employee the company needs within ; years for example. 'owever, there are
approaches helpful for ') practitioners to cope with the unstable condition. The
approaches are* expert estimates, trend pro<ections, statistical modeling, and
unit demand forecasting.
#naly+ing the current supply of employees does not merely mean
counting the number of the employees available. ?et, it is such a complex
inventory of human resources skills in terms of career planning, management
development
The last stage of ') planning is the action taken to identify any gap
existing among those aspects@situation analysis, forecasting demand,
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analy+ing supply@and overcome both in shortage and surplus condition of
workforce.
+.+.+. Sta%%/#
Once the critical <ob competencies are identified from the ') Planning
process, the firm can carry out its staffing process. Staffing is the process of
hiring people to perform work for the organi+ation. !t comprises two ma<or
activities* recruitment and selection.
)ecruitment involves obtaining a large number of applicants, thereby
giving human resources professionals and managers more choices to select
from among the competent candidates. Two sources of recruits could be used
to fill needs for additional employees* present employees "internal$ or those not
presently affiliated with the organi+ation "external$.
1. !nternal sources can be tapped through the use of <ob posting and
bidding, and seeking recommendations from present employees
regarding friends who might fill vacancies.
;. Axternal sources include media advertisement, the internet, employment
agencies, and special events recruiting such as <ob fair, and referrals
from schools
Selection process is employed to hire employees who are most likely to
meet the organi+ation=s standards of performance and who will be satisfied and
developed on the <ob. The typical selection process can include up to five steps*
1. preliminary screening with an application blank and a brief interview
;. Amployment interviews
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>. Amployment tests
-. )eference checks and letters of recommendations
,. Physical examination as a part of a conditional <ob offer.
+.+... Or/'#tat/!#6 Tra/#/# a#$ D'5'2!-0'#t
Orientation gives new employee the opportunity to adapt with the new
surrounding of the organi+ation that he or she enters in. The focus of orientation
is to sociali+e with to the rules, regulations, and goals of the organi+ation,
department, and work unit.
Training and development activities teach employees new skills and
refine their existing skills. Training is the organi+ation=s efforts to increase the
capabilities of individuals to achieve organi+ational ob<ectives. The goal of
training and development is to have competent, adapted employees who
possess up.to.date skills, knowledge, and abilities to perform their current <obs
successfully as well as to prepare them for future <ob changes.
+.+.1. C!0-'#sat/!#
&ompensation is the human resource management function that deals
with every type of reward that individuals receive in exchange for performing
organi+ational tasks B wages, salaries, bonuses, commissions, benefits, and
non financial rewards like praise. The ob<ective of the compensation function is
to create a system of rewards that is e(uitable to the employer and employee
alike.
+.+.3. ,'r%!r0a#c' Ma#a'0'#t
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Performance management is the process of communicating the
organi+ation=s performance expectations to employees, assessing the
performance of employees= work (uality and outcomes as well as assessing
employees= future work potential. The organi+ation evaluates their employees
for several reasons. This includes determining pay raises, giving feedback, and
assessing training needs. %ithout evaluations, employees will not know how
they are performing based on company expectations or where they can make
improvement.
+.+.7. E0-2!('' R'2at/!#s
# labor relation is the formal structure that governs the interaction
between an organi+ation=s management and its unioni+ed employees, for some
managers it means reducing hostilities or employee dissatisfaction. 8or others
they seek to ensure fair and e(uitable treatment for all employees.
..0 RESULT O4 THE STUDY
..1. A# !5'r5/'8 !% t&' C!0-a#(
)oyal )ainbow Tours was established in 12C2. !t was first located on 5.
&ikini )aya 6o.CC &entral akarta and named as PT. Driya :harma %isata.
Since the name of PT. Driya :harma %isata is not very easy to remember, the
company uses )oyal )ainbow Tours as its company name. !n the beginning,
the company only had four staffs.
!n 1227, it received Operational #pproval 5etter from :irectorate Deneral
of Tourism no. 732E!F.BP%EG%.BSPE1227. On the first year of its
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establishment, the company was focusing on its in.bound tour program in which
it covers ava.Bali Tour program. #nd the target market of the company was
international tourist and domestic tourist.
!n 122;, the company invested on Travel Bus. !n the same year the
company had ;; employees. The company continuously focusing on its in.
bound tour program and airlines ticket sales was <ust a supplement.
!n 122C, the national economics and political situation was unstable and
it had a great impact on the company. The company had to make necessary
ad<ustment with the not very conducive external situation. The company has
managed to survive, and now it is still exist with 3 employees.
)oyal )ainbow Tours has got two outlets. One is the head office and the
other one is the branch office.
'ead office*
l. :r. 9uwardi !!! 6o.-7 akarta 11-,7
Telp.7;1.,>7>11, 8ax.7;1.,/2/-C>>
Branch office*
l. Gompleks Pertokoan &empaka 9as
Telp.7;1.-;CC7,72, 8ax.7;1.-;CC7,7C
The company has a motto 4%e are tour.packaged specialist.H !t implies that the
company is speciali+ing in tour with the fact that the economics return from tour
program sales is higher than air transport ticket sales. 'owever, the company
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start focusing on its air transport sales as well as the airlines industry is
booming in ;77;.
R!(a2 Ra/#b!8 T!"rs Ora#/9at/!#a2 Str"ct"r' %r!0 1::+;1:::
R!(a2 Ra/#b!8 T!"rs Ora#/9at/!#a2 Str"ct"r' A%t'r 1:::
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9anager of Tour
:epartment
Shareholder
:irector
9anager of
Transport :epartment
9anager of 8inance
and
#ccounting :epartment
1 Ticketing staff
; Tour staff
17 :rivers
, &o.:river
1
&ashier
Shareholder
:irector
Tour :epartment
"'ead Office$
Tour :epartment "Branch$
1 TicketingE&ashier Staff
1 TourE Transport Staff
1 TicketingE &ashier Staff
1 TourE Transport Staff
> :rivers
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1$ :irector
To oversee, direct all aspects of )oyal )ainbow Tours operation and
receive reports from department manager on the on.going activities of
the company.
;$ 9anager of 8inance and #ccounting
To make strategic financial plan and budgeting, record out flow and in
flow cash, control all form of collection in terms of finance and banking,
and write financial report to the director.
>$ &ashier
To receive payment from sales and make invoices, distribute salaries to
all staffs, and report to 9anager of 8inance and #ccounting
-$ 9anager of Tour :epartment
To plan, create and organi+e tour package, supervise ticketing staffs
work, assist ticketing staffs when needed, and write reports to the
director.
,$ Ticketing Staff
To make reservation whether by phone or face to face, make bookings of
airlines seats, provide sufficient information on flight and airlines seats
prices.
/$ Tour Staff
To assist 9anager of Tour :epartment in planning, creating and
organi+ing tour package, and sell and promote tour program made by
Tour :epartment.
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3$ 9anager of Transportation
To ensure that all vehicles owned by the company are under good
condition, to coordinate, direct, and supervise drivers and co.drivers
based on the program scheduled by tour department or based on
re(uest.
C$ :river
To operate the vehicles owned by the company safely, fetch and drop off
vehicles right on schedule, and wisely use the fuel in line with tour
program.
2$ &o.driver
To assist driver in fulfilling his duties
..+. HR ,2a##/#
1$ 8rom 122; to 1222
%henever there was a very high demand for tour in 122;, the company had
to ensure that it had sufficient number of staffs to carry out the organi+ational
pro<ects which were (uite high in demand. Therefore, it hired up to ;;
employees divided into three departments. There was a career planning stated
implicitly that an employee had the opportunity to move up into a higher position
particularly in the tour department where the staffs, through experience and
practices during the work, was expected to able to handle pro<ects initially given
to hisEher manager. Therefore, it stimulated the employees to improve their
performance. ?et, the director, as he explained, faced a dilemma where his best
personnel then was hi<acked by other companies, contrasted to the
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development process that had been given to the employees since they were
new comers in the industry.
;$ 8rom 1222 to present
9a<or changes occurred in 1222 following the post culmination of monetary
crisis. :emand fell down to its lowest point that reached 7 "+ero demand$ and
called for dramatic efficiency for the sake of the company=s survival. #s a result,
C7I of its total workforce needed to cut off. Once again, the company suffered
from poor cash flow and forced to sell its assets consisting of > "three$ buses
and ; "two$ micro buses. The money gained was used to pay the fee for the
employees. Those who worked less than > years received "one$ month salary
and who worked for more than > years or less than 17 years received > "three$
months salary. The fee, however, was paid in >.month installment to avoid the
company from running out of cash.
The remaining , employees are now working on ; departments both in the head
office and the branch office with direct supervision from the :irector.
?et, since ;77- there has been a positive trend in tour packages demand,
so the company is able to keep in business while restoring its financial
condition. #ccording to the director, the average value of the pro<ects received
is !:) -77,777,777 per year since ;77- up to present and it is enough to
sustain the operation cost of the company.
Since then, the company is applying 177I outsourcing employees for
carrying up all of the pro<ects. :ue to the strong relationships and connections
among the tour and travel industry, the company is able to provide tour
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packages demanded with satisfying service. Permanent employees work only
on administrative tasks at the offices while field pro<ects are handled by the
outsourcing with direct supervision form the director. There is no specific
system of merit at the company because of its short and thin company
structure. 'owever, to ensure the employees work comfortably, the director has
the initiative to involve the employees in the pro<ects in order to develop the
(uality of the employees, in terms of the knowledge in the tour and travel
industry.
.... Sta%%/#
!n 122/, the director of the company had once advertised <ob vacancy on
local newspaper. 'e also said that this method was impractical, as too many
applicants applied for the <ob. 'e found a lot of (ualified and un(ualified
candidates applied for the post. !t took him some time to screen the candidates,
so it would be impractical to use this method for recruitment. 8or recruitment
process, he would prefer referral from school or friend. #s the director himself
was a teacher in Travel :epartment of a Jocational School in akarta, he would
recruit his student who had <ust graduated "fresh.graduate$ to work for his
travel. Otherwise, he would ask his friend a favor to find him the suitable
candidates to work for his company.
8or the selection process, once the director has got several candidates to fill
in certain post, he would do selection process by interviewing them. The
interview process is conducted twice, one is with the department manager or
the senior staff and the other is with the director himself. There are two basic
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(ualifications in order to pass the selection process. The first one is intelligence
and the second one is attitude. 8or staff level, at least the person has to be
tourism vocational school graduates and for managerial level0 the person must
minimally have diploma certificates. 8or tour department, the person must be
able to make tour program and can speak Anglish, while for ticketing
department, the person must be computer literate and able to use #bacus
)eservation System.
..1. Or/'#tat/!#6 Tra/#/# a#$ D'5'2!-0'#t
Once the employee is hired, he would undergo a three.month.probation
period, including one month training period. Training is given by the senior
employee0 the schedule is from 2 to 1; a.m. every day during the training
period. #nd after the probation period is over, the employee will be evaluated
whether he will be hired or not. On special event basis, the company would
send its employee to <oin a training program, for example* when the company
received an order to cater 8rench tourists, the company enrolled his staff to a
8rench course, and when there is an invitation for seminar, the company will
send its staff to participate in it.
..3. C!0-'#sat/!#
!n the probation period, a staff would receive )p.1,, 777Eday for eight
working hour, six days work and one day off, for three months. #fter that, once
the staff could pass the probation period, then he would receive a salary which
is in accordance with the minimum payment set by the government. The salary
already includes meals and transport. %hen the company serves a large group,
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then the staff would get an incentive for every field work he does. The incentive
excludes accommodation and meals. Besides that, The &ompany gives T')
"the 1>
th
salary$ for every staff employed.
The company gives its staff health allowance of )p.17, 777E month or
)p.1;7, 777Eyear. This allowance is given to the staff whether they are sick or
not. 'owever, when the staff has got an accident or severe sickness which
re(uires more money than the given health allowance, the company would give
more. !n addition, all staffs receive uniform annually, > shirt and ; trousers per
year. T.shirts made for group are given to the employees.
..7. ,'r%!r0a#c' Ma#a'0'#t
There is not strict performance evaluation on the work done by the staffs
in the company. The company evaluates probation staffs when they have
completed the probation period and after that decides whether to hire or not.
This evaluation is based on the employee=s attendance and comments from the
co.worker and the department manager.
%hile for the old staffs, the evaluation is based on the <udgment of the
director himself. The <udgment is based on attendance, punctuality, honesty,
and work done.
..<. E0-2!('' R'2at/!#
To promote good relationship with the employees, the company
organi+ed annual outing program for the employees. 'owever since 1222 the
outing program is never held, because the staffs refuse it and prefer to have
incentive bonus instead.
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1.0 DISCUSSION
#s noted earlier in the first chapter, the writer has limited the area of
discussion in ac(uiring human resource process which involves human
resources planning and staffing of )oyal )ainbow Tours. !t is (uite interesting
for the writer to focus on this area because of the extreme shift how the
company managed its employees to remain in the business through the hard
times during the economic crisis. The findings have also visuali+ed that the
modified human resources planning in the company helped its operational
activities in the early years of the crisis and redefined the way how the company
retained profit.
The following are the findings that are of our interests.
1. Shift from manager.centered to director.centered pro<ect work.
The writer has found that since 1222 until present, the director has
been the ultimate planner and executioner of the pro<ects received. 'is task
involves from designing the tour packages until supervising the ongoing tour
packages to ensure that everything is on the right track. The implication of
this activity is that the director must have a strong sense when he has to hire
a new employee or he will handle the pro<ect himself. This is difficult to
measure the degree of the accuracy of the new recruitment based merely on
his feelings, however, experience and wide relationships have proven that
the company rarely suffers from shortage.
;. 9odified company=s staffing strategy for cost effectiveness
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!t is interesting to find that economics is the key factor that determines
the decision made by the director in planning and managing his staff. The
decision made by the director to cut off C7I of his workforce, either for the
mid.management level or craft level as well as the decision to recruit fresh
graduates of tourism vocational schools and reward them with the minimum
salary set by the government is the strategy implemented by the director to
reduce cost, so that the business can run well.
Thus, it needs kind consideration and tolerance from the staffs to see
that the small.organi+ation where they work in is unstable, dependent to
economic change, full of uncertainty, and do not offer a very great salary.
#nd also due the nature of the salary they receives which is pro<ect.based,
the level of uncertainty is (uite high.
3.0. CONCLUSION AND SUGGESTION
3.1. C!#c2"s/!#
!t seems that there are two opposing arguments on the best ideal model
and best practice of human resource management practice. On one side, there
is an argument that best ideal model of human resource management should
go in line with the theory, and another argument that the reality says the best
practice of human resource management does not have to go in line with the
theory, that the implementation of human resource management is flexible and
based on circumstances and conditions.
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)oyal )ainbow Tours principally has followed the theory of 'uman
)esource 9anagement system, starting from ') planning, )ecruitment and
Selection, Training K :evelopment, &ompensation, etc. 'owever, technically it
does not apply one hundred percent what is mentioned in the theory. !t happens
because of several factors.
The company applies the human resources management system simply
based on the needs of the company and from the <udgment that the applied
system has already fulfilled the company needs to achieve its goal. Axternal
factor, such as national economics and political situation which influence
tourism sector also has affected the internal economics of the company. !t gives
an impact on how the company manages its human resources.
3.+. S"'st/!#
1. !t is suggested for the sake of human resources effectiveness, <ob
distribution and description among employees are well defined. Particularly,
in the department of tour with above average workload compared to its
counterpart ticketing department. There should be a redefinition of the
director=s task because it is (uite risky to be dependent fully to the director=s
decision. This dynamic industry re(uires a fast decision maker in order to
stay competitive which can be achieved in the company by optimi+ing the
potential of the employees. 6ew hires should also be considered for
succession planning.
;. Seeing that the organi+ation is engaged in the industry which is very
competitive, unstable and full of uncertainty, the organi+ation will need to set
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strong driving force within the employees while fulfilling and maintaining their
satisfaction in order to enhance the (uality of the services and productivity of
the organi+ation. The issue does not focus merely on financial matters but
also promoting the employees= motivation. This can be achieved by giving
more chances to the employees to directly handle the pro<ects received, with
the supervision of the director, to show the company=s commitment to
human resources development.
RE4ERENCES
B"rkat. A.=. a#$ M'$2/k S. Tourism. Past. Present, and (uture. 'einemann.
5ondon, 12C1
C&a2/k6 E.A. )asar*)asar Pengetahuan Pariwisata. ?ayasan Bhakti
9embangun. akarta. 122;
I5a#c'5/c&6 =.M. a#$ L'' S!! H!!#. 'uman Resource anagement in $sia.
9c Draw 'ill Aducation. ;77;

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5#9P!)#6
DA4TAR ,ENGHASILAN ,ERUSAHAAN
ROYAL RAINBOW TOURS >,ER;TAHUN?
TAHUN =UMLAH >R-.?
122; B 1222
1222 . 6ow
1,;77,777,777
-77,777,777
DA4TAR ,ENGHASILAN KARYAWAN
,T. ROYAL RAINBOW TOURS >,ER;BULAN?
1:::;NOW
,OSISI =UMLAH >R-? BONUS@INSENTI4 >R-?
Ticketing and Tour Staff
:river
F9)
F9)
,77,777.;,777,777Eproyek
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