The Importance of Human Resource Management (HRM)
Human Resource Management
Human resource is a key aspect within an organization and it is really important for an organization to be able to manage their human resource correctly. That is why there is something that is called Human Resource Management. HRM is a process where a company determine the human resource that is needed, recruit them, and reward them appropriately to achieve the goals of an organization.
What are the challenges in managing Human Resource in recession period?
There are a lot of challenges that an organization going to face in managing their human resource especially in recession era right now we are in. The main problem that they faced is that how are they going to optimize the cost of an organization and finding the right balance for it. Because as you know when we are in a recession economic activity is low and company naturally have to cut cost. But HR have to remember when cutting cost they also have to be considered the people (how they are feeling and more importantly they have to try to be as fair as possible to them).
What is Omnibus Law?
Recently in Indonesia there had been an uproar regarding the omnibus law and there were a lot of demonstration happened. But what exactly is omnibus law? Omnibus Law is a law that include a lot of aspect into one law. In Indonesia this law includes 4 main aspect which is RUU Cipta Kerja, Omnibus Law Perpajakan, Omnibus Law Ibu Kota Baru, and Omnibus Law Kefarmasian. In each of those laws there are a lot of aspect that included in it. The purpose these laws are made is because the government wanted to make investation in Indonesia easier to boost the economic development by making the laws much more simple.
Laws in Indonesia for Protecting Employees Against Discrimination
Discrimination against employees is a major issue that we need to be aware of. But is there a law that protect the employees from these discriminations? Indonesia itself doesn’t have an overarching anti-discrimination law. But rather Indonesia has some law and regulation within a specific aspect of it. For examples is Law No 40. Of 2008 about the Elimination of Ethnic and Racial Discrimination (it states that discrimination is prohibited within the politic, economic, cultural and social fields) . Law no 4. Of 1997 about Disabled People (stated that employer have to hire minimum of 1 disabled people within 100 person that they employed). And labor law which is law no.13 of 2003 on labour (stated that work termination by ideology, religion, race, gender, and political inclination is not accepted.
How Firm prepare their resource needs?
Because human resource is crucial then a firm have to prepare their resource needs meticulously. And how do they do it? They do it by following these steps. First they have to prepare the inventory human resource of their firms. Then they have to do prepare a job analysis. After knowing all of those things they have to assess the future labor supply and future demand of human resources. Finally they can make the strategic plan to prepare their human resource needs.
Factors that make it difficult to hire qualified employees
Employees are a major part of an organization but there are some factors that hindered firm to hire the right and qualified employees. These factors are as follow. First is a shortage of trained workers within key areas. Then there is also changes in employee attitudes about their work and their decreased sense of loyalty. More than that there is also increase in benefit demands and benefit cost.
Six Steps of Selection Process
When selecting human resource then there are 6 steps that needed to be followed. These steps needed to be followed to ensure that a firm will able to select an employee that will be productive for them. The first step is to obtain the complete form application. Then there will be follow up and initial interviews. And there will be an employment test conducted. Following that firm will conduct investigation of the applicant’s background and obtaining results from the physical exams. Then the last thing is that there will be a trial work period to see how they are performing.
Reference:
Nickels, W.G., McHugh, J.M., & McHugh, S.M. (2018). Understanding Business (12th ed.). New York, United States of America: McGraw-Hill Education
Singh, A. (2020, April 13). The Impact of Recession on HR Practices. SightsIn Plus. https://sightsinplus.com/hottopic/economic-slowdown/the-impact-of-recession-on-hr-practices/
Yasmin, P. (2020, October 5). Mengenal Apa Itu Omnibus Law yang Jadi Kontroversi. detik news. https://news.detik.com/berita/d-5200381/mengenal-apa-itu-omnibus-law-yang-jadi-kontroversi
Discrimination Law and Equality in Indonesia. (2014, November 25). global business guide Indonesia. http://www.gbgindonesia.com/en/main/legal_updates/discrimination_law_and_equality_in_indonesia.php
