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Human Resource Management within the Company

The company creates products for men, machines made by humans, products made by humans, and managed by humans. Human Resources (HR) is the main factor that drives the company. As one of the strategic factors in the company, the role of Human Resource Management can determine whether or not the life and death of a company.

Human Resource Management within the Company


There are many experts who have defined Human Resource Management, but to this day no one is the standard rule. The science of human resource management is actually also something that is growing, not static, and there is no similar definition.

For comparison, here we present 5 (five) definition of Human Resource Management according to experts:

Armstrong, "How can people be managed in the best way in the interests of the organization"

Kenooy, "A method of maximizing the yield of labor resources by integrating MSDM into business strategy"

Storey, "A typical approach, to labor management that seeks to achieve competitive advantage, through the development of a strategy of a highly capable and highly committed workforce using an integrated, structural, and personnel engineering culture".

Edwin B Flippo, defines personnel management as "planning, organizing, directing and supervising the functions of development, rewarding, integrating, maintaining and segregating human resources so that individual, organizational and community goals can be achieved".

Malay SP. Hasibuan, "Human Resource Management is the science and art of organizing and working relations roles in order to effectively and efficiently in order to help realize the company's goals, employees and society."

Of the five definitions that have been submitted above, although not exactly the same but in principle the same goal of the management and utilization of human in the company to be able to provide maximum results.

Human Resource Management Function

Not only the definition, Human Resource Management Function-there are many different points of view. Yet in principle it is almost the same.

As with the general management function, the HR Management function is more focused on managing its human resources in order to work as effectively as possible so that each person can work optimally.

MSDM function in general can be categorized into two, namely managerial functions and operational functions.

A. Managerial Functions

1. Planning, Define in advance the program that will help achieve company goals that have been set

2. Organizing, Designing the composition of various relationships between position, personnel, and physical factors

3. Briefing, Conducting work, working to get employees to cooperate effectively

4. Control / Supervision, Observe and compare the implementation with the plan and correct it in case of irregularities, or if necessary to re-adjust the plans that have been made.

B. Operational Functions

1. Procurement, Determining the type / quality of employees and the number (determining the success of recruitment through appropriate procedures).

2. Development, To improve the effectiveness of work by improving the knowledge, skills and attitudes of employees.

3. Compensation, remuneration, tangible money or any other according to sacrifices / contributions of employees. Wages are part of compensation, and can also be in the form of facilities that can be valued with money.

4. Integration, Achieving synergy between employees and companies for different purposes.

5. Maintenance, the Company maintains the capabilities and attitudes of employees through safety, health and service programs.

6. Discipline, the Company ensures that all rules that have been established can really be obeyed by all existing people.

7. Termination of Employment, Give strict action if the workforce does not comply with all rules that have been determined.

Objectives of Human Resource Management

Any company would want all the workforce involved in it can run optimally, effectively and efficiently. To achieve the desire it has become a necessity for companies to be able to get, develop, use, evaluate, and maintain every workforce therein.

According to Werther and Davis, MSDM has four goals, including:


1. Social Objectives (Societal objective)

In any company there are people who personally are also part of the community. With the existence of Human Resource Management is expected to accommodate the interests of society, both ethically, morally and socially. This is useful to minimize the negative impact on the organization, not to be harmed. The failure of the organization to use its resources for the benefit of society, can certainly be bad for the growth and development of the company.

2. Organizational Objectives (Organization objective)

The existence of MSDM in the company is not stand alone, its existence aims to contribute and utilize the achievement of organizational effectiveness as a whole in the company. It is formed to assist and serve other parts of the organization in dealing with matters related to human resources.

3. Functional Objectives (Functional objectives)

Functionally, MSDM aims to maintain the contribution of other parts for HR in each other to perform its task optimally. That is, every worker in the organization that can perform its functions well.

4. Personal Objectives (Personnel objective)

Every individual in the company is a unique person with their own interests and goals. With the existence of Human Resource Management is expected to help each individual to have the same goals with the organization. Fulfilling personal goals that every individual entitles to will be able to bring them together to realize the goals of the organization.

Of the four purposes of the above MSDM, for the company the ultimate goal is:

  • Increased efficiency
  • Increased effectiveness
  • Increased productivity
  • Minimize labor migration
  • Reduced employee absenteeism
  • Increase service satisfaction
  • Minimize complaints from customers
  • Improve the company's business

Effective Human Resource Management Strategy

Human Resource Management is not the ultimate goal of an organization, but it is a long process to achieve company goals. An effective MSDM would require a great strategy. There is much literature on effective MSDN strategies, each having different ways and points of view.

Here we describe the 5 steps of our Human Resources Management strategy quoted from ILO (www.ilo.org/publns):

1. Setting strategic business goals

A business strategy establishes priorities, plans and activities for human resource management. The workforce management plan should be aligned with the overall business objectives. The focus is to get the right person in the right place at the right time.

2. Identify suitable organizational structures

The organizational structure defines who performs the tasks and what is the responsibility and accountability. The organizational structure reflects the different divisions of work both vertically and horizontally.

The organizational structure must support the pre-defined strategic business objectives. The dynamic organizational structure allows for the integration of flexible division of labor, as and when needs arise.

3. Evaluate HR needs

Once the structure is adopted, a number of questions can be used to determine what the labor needs in this structure are:

  • How much business volume might a business strategy produce?
  • What tasks need to be completed?
  • What kind of skills will be required?
  • What kind of skills do we have?
  • What types of workers will be needed, and how many?
  • What kind of workers do we have?
  • How much supervisory work will be needed? how much do we have?
  • What administrative, technical and secretarial staff will be needed to support additional workers and managers? How much do we have?
  • Will there be people with sufficient skills to meet the projected needs?
  • How can we make the necessary changes to do?
  • How are workers involved in this change process?

4. Consult with workers about needs and strategies

Consultations not only provide advice to workers or their representatives of the changes to be made. Pure and effective consultations include: relevant information on issues with workers; workers are given a reasonable opportunity to express their views, raise issues and contribute to the decision-making process on how to deal with problems; workers' views are taken into account; workers are informed of the results of the consultation in a timely manner.

5. Implement human resource strategy

To plan and manage the development of human resources in any organization, it is useful to think of the different phases that a worker does in the workplace from recruitment to the separation and interaction between management and the workers that occur during this phase. This phase includes:

  • Recruitment / Selection
  • Staff motivation (including remuneration and working conditions),
  • Staff development and performance (including training and performance management),
  • Separation or transfer (including dismissal),
  • Cycle approach.


* Processed from various sources

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