School of Business & Management

Institut Teknologi Bandung

Assignment Cover Sheet for Students

An assignment cover sheet needs to be included with each assignment. Please complete all detail clearly.

Nam
e Garry Jonathan
Student ID 29112169 Mobile phone 081806527970

Course code and title MM5002 | People in Organization

Course time and Progra
Sunday, 3 February 2013| Jakarta MBA Jakarta
place m
Lecturer John Welly

Assignment number Final Exam Due date 23 February 2013

Assignment title/topic/case Human Research Management at PT. Sanco Indonesia
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() Midterm Exam
() Final Exam
() Individual Assignment
() Group Assignment
() Other
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Garry Jonathan 23 February 2013

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Recorded Dispatched (if applicable)

HUMAN RESOURCE MANAGEMENT AT PT. SANCO INDONESIA

HUMAN RESOURCE MANAGEMENT AT PT. SANCO INDONESIA

Company Profile

PT. Sanco Indonesia is a rapid developing trade company, which specialized in

processing and packaging machinery for food, beverage, pharmaceutical, and agro

industry, with a mission to provide the best solution for valuable clients. PT. Sanco

Indonesia has proven itself as one of the top machinery trading agents who owns

exclusive rights with local and international companies to promote and distribute the

products worldwide.

Established in July 2004, PT. Sanco Indonesia has three (3) offices, which are

located in:

1. Meruya, acts as the headquarter office for Finance and Accounting Division,

Human Resource Department, Procurement Division, Sales and Marketing

Division with 19-20 personnel.

2. Cempaka Mas, acts as General Trading Division for end user product with 3

personnel.

3. Taman Tekno, Bsd, acts as Engineering Division for workshop, showroom for

machinery, and warehouse for spare parts with 20 personnel.

As a trading company, PT. Sanco Indonesia focuses its activity in Sales &

Marketing Division to increase its turnover. Thus, the company highly invests its

resources in human resource to get the right person in the right job.

Vision of PT. Sanco Indonesia:

“To be the leader in Food and Pharmaceutical machinery business and the
preferred partner in processing and packaging engineering services in
Indonesia and some region countries.”

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CREATIVE Mission of PT. Sanco Indonesia:

 Customer Satisfaction
 Reliable Machines
 Excellent Services
 Affordable Prices
 Technology in Advance
 Improvement
 Value & Quality of Employee
 Expectations of Shareholders

Organizational Structure of PT. Sanco Indonesia

PT. Sanco Indonesia is led by Mr. Erik Santoso, the President Director, who

manage the corporate group business, and Mr. Bonifasius Victoria, the Managing

Director, who manage the daily operational of PT. Sanco Indonesia. The Managing

Director directly involved with all divisions of PT. Sanco Indonesia, which is led by a

division head. The detail organizational structure for each division can be seen in the

next figure.

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Human Resource Roles

Human Resource Department (HRD) of PT. Sanco Indonesia acts as a

strategic business partners to meet the company’s vision in the most effective and

efficient way. In order to be the leader in the dynamic market, Human Resource

Department implement the company’s CREATIVE mission in practical ways to

increase productivity and create a conducive working environment. By aligning HR

and business strategy, every employee is expected to have better result by sharing

the knowledge and skill of how works are done. A human resource strategic planning

is created, standardized, and developed to facilitate and provide consultations to the

employees.

The Human Resource Department provide well manage infrastructure in the

company. By integrating a recent technology of RFID (Radio Frequency

Identification), employee discipline behavior can be monitored for their punctuality;

thus, reward and punishment mechanism can be applied to each of employee. The

company also invested in the latest accountancy software to create a more effective

and efficient administrative work and data sharing between Finance Division, Sales

& Marketing Division, and Engineering Division. By using the software, the

management knows the details of every transaction made between the Sales &

Marketing Division and the customers. Once the order has been placed, the Finance

Division will be able to make the payment schedule for the customer according to the

agreement. Engineering Division will be able to coordinate the production schedule,

spare parts logistics, procurement, etc.

Every sales force & managerial level is facilitated with an operational vehicle and

a laptop for daily operational to increase their performance in work. With such

arrangement, they are expected to work not only in the office, but also outside of the

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office, such as home, or customer’s site. In addition, only sales force is equipped

with additional tools, such as Blackberry mobile phone and CDMA phone to enable

easy communication of E-mail, messenger, phone call, and text messages. In the

office, every person has their own cubicle work place, which is equipped with sound

proof, where each of the employees can concentrate on their own work without any

noise disturbance from the others.

To meet the demand of dynamic market, the management has decided that a

breakthrough needs to be applied in Sales & Marketing Division. The management

agreed that, currently, the number of machinery that is sold by the company is more

than 40 types of machines from different principals, while there are only six sales

persons. In this arrangement, it is not possible for every sales person to know every

technical details of every machinery, whereas the customer required to know not

only the price of the machinery, but also the technical advantage. To accomplish the

company’s mission of ‘Customer Satisfaction’, every sales person is given a

responsibility to represent, at least, five to six machineries. Thus, every sales person

is expected to know further details about the machinery that each of them represents

and able to work better with the customers to fulfill their needs and wants. A weekly

meeting between the management and every sales person is conducted to discuss

the progress of every project and set the next goal in a certain timeframe.

Implementing such method boost up the motivation of sales person and increase the

productivity, because not only updating the project, but also discussing the problems

that the sales person are facing, where the management can provide the solution.

Also, by assigning a sales person with respective machinery, the system will result in

no competition between the sales forces, because they are free to access all

customers from each other database and help each other to introduce their

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respective machinery. So, there are many chances that two or three sales persons

share the same customer, however, with the different projects.

In the daily operational, there are hardly any written rules applied on how the

works should be done in the office, although every division has their own standard

operating procedure. For example, Engineering Division has their own procedure on

how the work should be started after the work order arrived, Finance Division has

their own procedure how the finance report should be done and to manage the cash

flow in the company, Sales & Marketing Division has their own procedure how to do

their works, starting from making appointments with the customers to have further

discussion to following up the after sales service, and so on. Those procedures

come through quick training and real application, so every employee will know how

to do their works well even without a long time training. The only written rules are

only about discipline behaviors, such as, arriving on time, taking sick leaves, etc,

where reward and punishment system can be easily applied. Such methodology

creates conducive working environment with less pressure and no competition with

each other. The performance of every employee is evaluated at the end of the year

by their respective supervisor and the management to conclude the reward or the

punishment for the employee.

Analysis of Human Resource Practices

Human Resource of PT. Sanco Indonesia plays an important role by

performing basic practices of recruiting, training, performance management, labor

relations, employee relations, job analysis, job design, selection, development, pay

structures, incentives, and benefits.

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 Recruiting. Recruitment process is usually triggered by the need of the

company to have personnel to fill in certain job or position within the company,

usually for admin, technician, engineer, accountant, or sales position. The HRD

of PT. Sanco Indonesia focuses only on advertisement on the newspaper, such

as KOMPAS, The Jakarta Post, etc, about the job vacancy to attract and recruit.

However, for managerial position, the HRD only propose the qualified candidates

inside the company to the management, and then the management will

personally contact the candidates for IQ & EQ test, and interview the candidates.

In some cases, relatives of the management can fill a managerial position. The

recruitment for standard position usually has skillful personnel to fill in the

required position. However, a new strategy of IQ & EQ test and interview

process need to be developed, because there are many cases that new

personnel left the company without any news after working for several weeks or

months. When it happened, the workflow will be dragged down. For example, a

person in charge for export-import department whose daily jobs are to manage

shipment from/to customers site. Such position required experience in the same

field of job, and not everyone in the company can take over the job easily.

 Training. New recruitment will have a short training, for a day or two, to know

the standard operating procedure of each position, and then a supervisor will

work together to supervise their work. Such method will provide the real

experience on how to work in PT. Sanco Indonesia. Also, since PT. Sanco

Indonesia has been cooperating with many overseas principal, the sales force

receive the trainings directly from the principal, thus will have the opportunity and

experience on how international business are done. Trainings from the principals

are required to have better technical knowledge about the respective machinery.

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Also, during the principal visit in Indonesia, both the sales force and principals

will visit the customers to have discussions. Thus, the sales force will learn from

the principal and have better knowledge.

 Performance Management. In PT. Sanco Indonesia, the methods of managing

the performance of every employee are not the same. For example, Sales &

Marketing Division is required to bring a project list that contains the customer’s

details, the inquiry, and the project’s time frame to the weekly meeting. This way,

the management will know the performance of every sales person every week.

In terms of standard evaluation, every year, HRD instructs all employees to fill in

balance scorecard regarding individual’s knowledge, development, achievement,

and working environment. Then, the management will review all the balance

scorecard and concludes the increase of incentives that would be given to each

employee.

 Labor & Employee Relations. PT. Sanco Indonesia is a developing trade

company with 3 small offices, which each contains 10 to 20 personnel. The small

number of employee in an office encourages every employee to have good

relationship with each other. Moreover, every division will need support from the

other division to increase the performance. In addition, the management holds a

fellowship event where all employees from the group have to attend, in order to

tighten the relationship between the employees. Also, it is a good opportunity to

introduce new recruitment.

 Job Analysis & Design. HRD of PT. Sanco Indonesia does not really analyze

and design the job for every employee. The HRD only post the vacancy on

advertisement based on the position (i.e. technician, accountant, sales person,

etc), respond the applicant, make the test & interview, and wait for approval from

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the management. Generally speaking, jobs in PT. Sanco Indonesia have

standard job descriptions, where the HRD is not required to do analysis and

design the job for every position.

 Selection. The selection process of promoting an employee to a higher level

usually needs management approval, and the HRD follow-up the decision by

providing the pay structure, incentives, benefits, and facilities to the promoted

employee.

 Development. Every employee in PT. Sanco Indonesia can be considered quick

to develop their knowledge, skill, and moreover, the position. For example, in 1-2

years, an employee can be promoted to be a supervisor or a manager. The

attitude of every employee is also developed because of not only there is no

competition to each other, but also helping each other to achieve their target.

 Pay Structure. The company offers a standard structure of salary payment,

where an employee is given 12 months net salary with an additional 2 months of

basic salary for yearly bonus and THR (Tunjangan Hari Raya). Every month,

HRD transfer the salary payment through Automatic Teller Machine (ATM). By

evaluation of performance balance scorecard every year, the management can

either decide for a raise on monthly salary or cut the bonus for certain

percentage, depends on discipline behavior.

 Incentives. Every employee in the company is given transportation and meal

allowances, which are transferred to the employee account every month. When

an employee breaks certain rules, the allowances for next month will be cut,

depends on the company policy. For managerial level, starting from the division

head, every head is given a car for transportation. Employee, whose level is

below the managerial level, is given a motorcycle. These operational vehicles

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are also allowed for private use. Moreover, the toll, parking, and fuel expense will

be reimbursed every two weeks. In addition, every sales person will be rewarded

a commission for every machine that they sell with the condition of achieving the

target within a certain period of time.

 Benefits. Aside from the pay structure and the incentives, there are other

benefits that the company has for the employee. The first one Is JAMSOSTEK,

where the company regularly pay JAMSOSTEK without reducing the amount of

employee’s salary. Secondly, insurance for accident, hospitalization, and death

caused by the accident. Also, the company does not reduce the rights of

employee for this benefit. However, the employee will receive the benefits as

long as they are still working with the company.

Conclusion

PT. Sanco Indonesia is a company that still develops their business with the

rapid growth. However, it seems that the HRD of the company only perform basic

tasks, and still highly depends on the management decision regarding the

organization structure, recruitment & selection, pay structure, incentives, and

benefits. The mission and vision of the company seems only applied to the sales

force as the front liner, and the corporate value itself is not well developed.

Considering the business growth and the capability of every personnel to

perform their task well, the HRD should develop the corporate culture and value. By

socializing the new culture and value, every employee can motivate each other and

create efficient and effective work performance to achieve the short-term and long-

term goal. Furthermore, every employee will have a self-belonging point of view for

the company and have an equal vision to make the company as “The leader in Food

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and Pharmaceutical Machinery business and the preferred partner in processing and

packaging engineering services in Indonesia and some region countries.”

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