UNIVERSITAS INDONESIA

HUMAN RESOURCE MANAGEMENT

APPLICATION CASE

GROUP 2 PAPER
Andika Dyah Paramita - 1406513224 | Angela Jessica Stephanie - 1406513256
Annisa Ayuningtyas - 1406588654 | Anugrah Adeputra - 1406588686
Arsya Chairunnisa - 1406513312 | Arieta Aryanti - 1406513294
Ayu Meriany Savitri - 1406513331 | Camelia Indah - 1406513376

FACULTY OF ECONOMICS | MASTER OF MANAGEMENT PROGRAM

JAKARTA, SEPTEMBER 2014
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Human Resource Management, Group 2, MMUI, 2014

TABLE OF CONTENTS

TITLE ... i
TABLE OF CONTENTS ... ii
BASIC PRINCIPLES AND THEORY ......................................................................... 1
1.1

Introduction of Human Resource Management ........................................... 1

1.1.1
1.1.2
1.2

What is business?............................................................................ 1
What is Human Resource Management? ........................................ 1

Scope of Human Resource Management ....................................................... 2

1.2.1 Talent Management ........................................................................ 3

1.2.2 Job Analysis and Job Description .................................................... 3
1.2.3 Personnel Planning and Recruiting.................................................. 6
1.2.3.1
Recruiting ................................................................................ 7
APPLICATION CASE OF YA KUN KAYA TOAST ............................................. 8
2.1

Story of Ya Kun Kaya Toast...................................................................... 8

2.2

Case Study of Ya Kun Kaya Toast .......................................................... 10

2.2.1
2.2.2
2.2.3
2.3

Personal Planning - Recruitment: Ya Kun Kaya Toast Case Study 10

Hiring Part Time Workers............................................................. 12
Good Attitude and Commitment ................................................... 13

Site Visit Experience of Ya Kun Kaya Toast........................................... 14

2.3.1
2.3.2
2.3.3

Ya Kun Mall Kelapa Gading Outlet .............................................. 14

Ya Kun Kuningan City Outlet ....................................................... 16
Ya Kun Pacific Place Outlet.......................................................... 17

CONCLUSION ........................................................................................................... 18
REFERENCES............................................................................................................ 20

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Human Resource Management, Group 2, MMUI, 2014

CHAPTER 1
BASIC PRINCIPLES AND THEORY
1.1

Introduction of Human Resource Management

1.1.1 What is business?

A business is any activity that seeks to provide goods and services to others while
operating at a profit.
The management of a business including;
1. Planning: Establishing Goals and Standards, Developing Rules and
Procedures, Developing Plans and Forecasting.
2. Organizing: Giving Each Subordinate Specific Task, Establishing
Departments, Delegating Authority to Subordinate, Establishing Channels of
Authority and Communication, Coordinating Subordinates Work
3. Staffing: Determining Requirement in Hiring People Process, Recruiting
Prospective Employee Candidates, Selecting Employees, Training and
Developing Employees, Setting Performance Standards (Key Performance
Indicators), Evaluating Performance (Performance Appraisals), Counseling
Employees and Compensating Employees.
4. Leading: Getting others to get the job done, Maintaining Morale,
Motivating Subordinates
5. Controlling: Setting Standards such as Sales Quotas, Quality Standards or
Production Levels, Evaluating Standards Fulfillment and Achievements,
Taking Corrective Action as needed.
1.1.2 What is Human Resource Management?
One of the parts in business management is staffing which the area of Human
Resource Management. As the definition of management is Getting things done
through people, HR plays an important role to hire and develop the right people
to achieve the companys goal.

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Human Resource Management is a process of acquiring, training, appraising, and

compensating employees, and of attending to their labor relations, health and
safety, and fairness concerns.

1.2

Scope of Human Resource Management

Picture 1 - Scope of Human Resource Management

In the past, Human Resources were plentiful, so there was little need to nurture
and develop them. If you needed qualified people, you just simply hired them. If
they didnt work well, you fired them and found others. Today, the job of Human
Resource management has taken on increased role in the firm since qualified
employees are much scarcer, which makes recruiting and retaining people more
important and more difficult.
In the future, Human Resource Management may become the most critical
function, responsible for dealing with all aspects of people.

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Human Resource Management, Group 2, MMUI, 2014

1.2.1 Talent Management

Talent Management Process is Goal-Oriented and Integrated Process of Planning,
Recruiting, Developing, Managing and Compensating Employees.

Talent Management Perspective:

Understand that the Talent Management Task is a part of a Single

Interrelated Talent Management Process.

Makes sure talent management decision are goal-directed.

Consistently uses the same Profile of Competencies, Traits, Knowledge

and Experience for Formulating Recruitment Plans for a job as for making
selection, training, appraisal, and payment decisions.

Actively segments and proactively manage employees.

Integrates / Coordinates All The Talent Management Functions.

1.2.2 Job Analysis and Job Description

Job Analysis: Procedures for determining the duties and skill requirements of a
job and the kind of person who should be hired for it. Job Analysis provides
informations as a basis for Job Descriptions and Job Specifications.
Job Descriptions is a List of Jobs Duties, Responsibilities, Reporting
Relationships, Working Conditions, and Supervisory Responsibilities.
Job Specifications is a List of Human Requirements such as: Education
Requirement, Skills, and Personality.

Information that should be collected through Job Analysis:

Work Activities

Human Behaviors

Machines, Tools, Equipment and Work Aids

Performance Standards

Job Context

Human Requirements

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Human Resource Management, Group 2, MMUI, 2014

Uses of Job Analysis Information:

Recruitment and Selection: Duties of a job, human requirement for a job

EEO Compliance: Validating Human Resource Practices. Is it aligned with

the regulation or not?

Performance Appraisal: Compare Employee Performances with the

Standards

Compensation: Compensation depends on human requirements for a job,

degree of responsibility, etc.

Training and Development

Picture 2 - Uses of Job Analysis Information

Steps of Job Analysis:

1. Decide how youll use the information
This will determine the data you collect. Some data collection techniques
like interviewing the employee are good for writing job descriptions. Other
techniques, like the position analysis questionnaire we describe later,
provide numerical ratings for each job; these can be used to compare jobs
for compensation purposes.
2. Review Relevant Background Information such as Organization Charts,
Process Charts, and Job Descriptions
Organization charts show the organization-wide division of work, and where
the job fits in the overall organization. The chart should show the title of

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each position and, by means of interconnecting lines, who reports to whom

and with whom the job incumbent communicates. A process chart provides
a more detailed picture of the work flow. Finally, the existing job
description, if there is one, usually provides starting point for building the
revised job description.
3. Select Representative Positions
Select representative sample of worker to analyze the jobs
4. Actually Analyze the Job by Collecting Data On Job Activities, Working
Conditions, and Human Traits and Abilities Needed to Perform The Job
5. Verify the Job Analysis Information with the worker performing the job and
with his or her immediate supervisor.
6. Develop a Job Description and Job Specifications

There are various methods for collecting Job Analysis Information. These include
Interviews, Questionnaires, Observation, Participant Diary/Logs and Quantitative
Techniques such as Position Analysis Questionnaires. Employers increasingly
collect information from employees via the internet.

The Most important product of Job Analysis is the Job Descriptions. There is no
standard format for writing a job description. Job Descriptions contains section
that cover:
1. Job Identification
2. Job Summary
3. Responsibilities and Duties
4. Authority of Incumbent
5. Standards of Performance
6. Working Conditions
7. Job Specification

Job Specification takes the job description and defines the requirement to do the
job effectively.

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The Recruitment and Selection Process entails five main steps:

Decide what positions to fill

Build a pool of candidates

Have Candidates complete application forms

Use Selection Tools

Decide to whom to make an offer, in part by having the supervisor and

others interview the candidates.

1.2.3 Personnel Planning and Recruiting

Recruitment and selection starts with workforce planning and forecasting.
Workforce planning is is the process of deciding what positions to fill, and how to
fill them. This often starts by forecasting personnel needs, perhaps using trend
analysis, ratio analysis, scatter plots and computerized software packages.
a. Trend Analysis means studying variations in the firms employment level
over the last few years.
Trend Analysis can provide an initial estimate of future staffing needs, but
employment levels rarely depends just on the passage of time. Other factors
such as changes in sales volume and productivity also affect staffing needs.
Studying the firms historical and current workforce demographic and
voluntary withdrawals (due to retirements and resignation, for instance) can
help reveal impending labor force needs.
b. Ratio Analysis means making forecasts based on the historical ratio between
some causal factor (like sales volume) and the number of employees
required (such as number of salespeople).
Like trend analysis, ratio analysis assumes that productivity remains about
the same.
c. The Scatter Plot shows graphically how two variables such as sales and your
firms staffing levels are related. If they are, then if you can forecast the
business activity (like sales), you should also be able to estimate your
personnel needs.

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d. Markov Analysis is a mathematical process to forecast availability of

internal job candidates. Markov Analysis involves creating a matrix that
shows the probabilities that employees in the chain of feeder positions for a
key job (such as from junior engineer, engineer, senior engineer, engineering
supervisor, to director of engineering) will move from position to position
and therefore be available to fill the key position.
1.2.3.1 Recruiting
Filling Open Positions with internal sources of candidates has several advantages:

Strength and Weaknesses of Candidates has been known.

Current Employees are more commited to the Company.

Morale may rise if employees see promotions as rewards for loyalty and
competence.

Require Less Orientation and Training

But, Filling Open Positions with internal sources of candidates also has
disadvantages, such as:

Employees who apply for jobs and dont get them may become
discontented.

Internal Recruiting is waste of time. Many Employers require managers to

post job openings and interview all inside candidates. Yet the manager often
knows whom he or she wants to hire. Requiring him or her to interview a
stream of unsuspecting inside candidates can be a waste of time for
everyone.

Inbreeding is also another potential drawback. When all managers come up

through the ranks, they may have a tendency to maintain the status quo,
when a new direction is required.

Sample of Job Description

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Human Resource Management, Group 2, MMUI, 2014

Picture 3 - Sample of Job Description

CHAPTER 2
APPLICATION CASE OF YA KUN KAYA TOAST

2.1

Story of Ya Kun Kaya Toast

Ya Kun Kaya Toast was established by Loi Ah Koon in 1944 as a coffee
shop. Ya Kun International was incorporated in 2001 in Singapore and

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currently has 32 Outlets in Singapore and 27 Franchise Outlets in other parts

of Asia.
Ya Kun Kaya Toast has a family style work environment and promotion
from within policy. It also emphasizes teamwork in its environment. Ya
Kun has a flat structure where the staffs feel comfortable approaching their
superiors.

Job Openings for the outlet staff are advertised in Chinese and English
Newspaper, as well as through recruitment notices at their outlets. Applicants
who respond to the advertisements are invited to interview. Applicants go
through two rounds of interview, one with the senior area manager and one
with the operations manager.

The primary requirements for Job Applicants are their level of commitment
and willingness to work shifts. Other desirable qualities include integrity,
diligence and honesty. Ya Kun believes that if an applicants is commited and
willing to learn, the necessary skills to excel in the job can easily be taught.
Succesful applicants then go through 2 weeks of training and 3 months of
probation.

In Singapore Outlets, most of the staffs are more than 30 years of age. Mature
workers generally have better work attitude and commitment. Most of the
staffs are full time worker. Part-timers are only hired to substitute the full
time staff when they go on a vacation or become ill. The usual of operating
hours are from 7 AM to 11 PM. The staffs work 8-hour shifts. Each outlet
has about 10 staffs working each of the two shifts.

The main challenge Ya Kun faces in its recruitment efforts is finding

employees with the right attitude, because the technical skills for the job are
relatively easy to learn. Some applicants were unwilling to work shifts,

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Human Resource Management, Group 2, MMUI, 2014

making it difficult for Ya Kun to hire them. Shift work is inevitable in the
food and beverage retail industry.

In Indonesia, Ya Kun Kaya Toast has 28 outlets including Indonesia Head

Office in Kelapa Gading. 21 Outlets are located in Jakarta, 2 Outlets in
Bandung, 3 Outlets in Medan, and 2 Outlets in Makassar.
2.2

Case Study of Ya Kun Kaya Toast

2.2.1 Personal Planning - Recruitment: Ya Kun Kaya Toast Case Study

In HR management, hiring is a process of full-filling the needs of capital. It has
direct relation to operational & the business itself.

To explain the process clearly & thoroughly, we are focusing on Ya Kun Kaya
Toast as one of the key players in chained-caf industry

Forecasting
Forecasting is an essential part in Recruitment for it will show us the cost-needed
plus it allows us to achieve effectiveness & efficiency. The needs of workers
(human resource) have strong relation with the growth of business. For example,
if the business grows positively, additional numbers of workers are possibly
needed; even much more, when the business is expanding. On the opposite, when
the business flops, cut of cost is probably expected; even can lead into firing
people in extreme cases.

Ya Kun Kaya Toast can show us positive example of recruitment forecast. It has
unique ways in retaining workers; through its family-like environment, flatorganization, job security & fair compensation. Therefore, the necessity is
assumed mostly driven by business expansion.

With the positive & promising growth of Chained Caf Industry in Indonesia
(1) More than 9% growth in current value, reaching IDR 500.6 Billion in 2012;

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(2) Constant value of CAGR over 10% is expected during forecast period;
Ya Kun Kaya Toast is considered a contender; with direct competition
towards Dome Coffee, Black Canyon & Bengawan Solo. However the
industry is highly driven by Starbucks as the biggest player.

Ya Kun Kaya Toast shows sustainability with value of CAGR up to 4%.

Through this approach, we manage to conduct a forecast of recruitment,
driven by business ambition & expansion, as below:

Historical
Indicator

2007

2008

Forecast
2009

2010

2011

2012

2013

2014

2015

2016

2017

Sales
Industry Value (in IDR
293.7 330.3 363.2 397.7 431.5 500.6 550.6 611.2 681.5 763.3 858.7
Bio)
Industry Growth (%)

12%

10%

9%

8%

16%

10%

11%

12%

12%

12%

94

101

108

110

125

140

154

168

181

194

11%

7%

7%

2%

14%

12%

10%

9%

8%

7%

CAGR : 9.3%

No. of Outlets
Industry Value (in Bio)

85

Industry Growth (%)

CAGR : 6.6%

Ya Kun Kaya Toast

Indicator

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Sales
Company Shares

2.70% 2.50% 2.40% 2.40% 2.20% 2.09% 1.96% 1.83% 1.71% 1.58%

Company Value (in Bio)

8.9

Company Growth (%)

9.1

10

10

11

11.5

12

12.5

13

13.6

2%

5%

8%

6%

4%

4%

4%

4%

4%

CAGR : 4%

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Human Resource Management, Group 2, MMUI, 2014

27

No. of Outlets

27

Ratio

0.43

Additional Branch

Recruitment

28.2

29.4

30.6

32

10

10

11

Source: Euro monitor market data

2.2.2 Hiring Part Time Workers

Most of the employees of Ya Kun Kaya Toast are permanent employees (full
time workers). They use part-time staff only to complement the full time staff
when they go on vacation or become ill. Furthermore, the advantages and the
disadvantages of Ya Kuns hiring part-time staff are:

Advantage
-

Part-time staff are costing less than full time staff in terms of benefit
since part time staff dont get regular benefit and compensation but
only get salary per time period (hour or shift)

In general, hiring part time staff will affect the society because it
makes more job opportunities.

Business activities in Ya kun Kaya Toast will continue to operate even

when the full-time staff take leave because of vacation or sick.

When Ya Kun Outlet opened a new outlet, Ya Kun can hire part-time
staff as permanent or full-time staff instead of hiring new people. So
Ya Kun doesnt need to train new person. Less cost and effort needed
because the part time worker assume already understand the business
pace of Ya Kun

Disadvantage
-

Hiring part-time staff can make additional cost to the company because
Ya Kun need to pay double salary (for the full-time staff and also for
the replacement).

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Human Resource Management, Group 2, MMUI, 2014

Part-time staffs tend to have less commitment than permanent staff

because part time staff only get salary base on working hours (less
engage to the company value of family style work environment).

The service standard of part-time staff is potentially different with the

permanent staff.

From our group interview and discussion with several Ya Kun Staff in
Jakartas outlet, part time staff is on call when full time staff is on vacation or
sick. But most of the employees in Indonesia outlet are permanent employees,
so either Ya Kun ask for part time worker or full-time staff work overtime to
replace the leave employees.

2.2.3 Good Attitude and Commitment

A good attitude and commitment are two important attributes that Ya Kun
looks for in its job applicants. Is a job interview an effective method to assess
these two attributes? What else can Ya Kun do to get reliable information on
these two attributes?

Answer:
This method is only the prior way to asses these two attributes. The applicants
will be interviewed by Senior Area Manager and Operation Manager.
After passed interview process, the employee will have 2 weeks training and 3
months probations in Ya Kun. Through these training and probation, the
manager can see what kind of staffs that will be work in Ya Kun. Qualities
such as integrity, honesty, diligence and commitment are valuable values to
become Ya Kun employee.
Our group suggests that simple personality test can be added for recruitment
process. Simple personality test can give the manager the personality of the
applicants.

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Human Resource Management, Group 2, MMUI, 2014

2.3

Site Visit Experience of Ya Kun Kaya Toast

2.3.1 Ya Kun Mall Kelapa Gading Outlet

Location: Mall Kelapa Gading
Capacity: 13 tables for 4 people and 8 tables for 2 people. Total : 68
people
Working hour: 10 AM 10 PM
Source: Store Supervisor, Mr. Usin (9 years working in Ya Kun). Started
as waiter in Plaza Indonesia. One year later, he was moved to Ya Kun
Gading outlet
Total staffs: 10 staffs. There are two shifts (8 hours). Store supervisor is in
charge for scheduling working time table. For morning shift, the staffs are
less than night shift. For night shift, 1 staff will be at cashier desk, 2 staffs
in charge for cooking, and 3 staffs in charge for making beverages and
serving to customers
Mr Usin is responsible for daily operation. Store supervisor will submit
report to headquarter every month. Inspection from headquarter is done
for about 1-2 times a year
For, every opening of Ya Kun outlet, two or three experienced staffs will
be in charge for training new staffs
Recruitment for new outlet: Information about recruitment will be given
first to permanent staffs. Usually, from these permanent staffs, they refer
their family to work in new outlet
Unique thing : Ya Kun do not terminate working relationship with its
staffs

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Human Resource Management, Group 2, MMUI, 2014

Picture 1 - Ya Kun Kaya Toast Kelapa Gading Outlet

Picture 2 - Interior of Ya Kun Kaya Toast Kelapa Gading Outlet

Picture 3 - Mr. Usin, Store Supervisor with his Crews

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Human Resource Management, Group 2, MMUI, 2014

2.3.2 Ya Kun Kuningan City Outlet

Location: Mall Kuningan City

Capacity: 30 people

Working hour: 10 AM 10 PM

Total staffs: 7 people. Morning shift: 2-3 people. One person in charge at
cashier clerk and baker. One person as waiter.

Mr. Dodi (30 years old) has worked since 2005. He get rotated in some
of Ya Kun Jakarta outlet.

Picture 4 - Menu of Ya Kun Kaya Toast Kuningan City Outlet

Picture 5 - Interior of Ya Kun Kaya Toast Kuningan City Outlet

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Human Resource Management, Group 2, MMUI, 2014

2.3.3 Ya Kun Pacific Place Outlet

Location: Mall Pacific Place
Capacity: 30 people
Working hour: 10 AM 10 PM
Total staffs: 6 people

Picture 6 - Ya Kun Kaya Toast Pacific Place Outlet

Picture 7 - Interior of Ya Kun Kaya Toast Pacific Place Outlet

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Human Resource Management, Group 2, MMUI, 2014

CHAPTER 3
CONCLUSION
Ya Kun Kaya Toast as one of the branding coffee outlet in region have shown us
a unique ways in retaining workers by having corporate culture of family-like
environment, flat-organization, job security & fair compensation. The forecasting
of hiring new employee is done by analyzing business expansion. As an
approach our group used Ratio Analysis through historical data of Ya Kun Kaya
Toast business performance and also industry growth. From that analysis, we can
conclude that the business expansion could be more expansive compare to the
market growth with the same industry. The market growth of last 5 years is
10.6% whilst Ya Kun growth for last 5 years is only 8.4%. If Ya Kun could boost
their business ambition so it will be more competitive with markets and
competitors, it could mean more outlets open in regions, furthermore Ya Kun
will be eager to hire new employees.

Regarding the recruitment process, we can conclude that it will be done by

interviewing the candidates with Senior Area Manager and Operation Manager.
Furthermore, this process quite effective but it would be better if Ya Kun can
have more selection process rather than just interview. Our group suggests that
simple personality test can be added for recruitment process. Simple personality
test can give the manager the personality and emotional overview of the
applicants. The simple personality test can be done by third party with the price
of between Rp. 250.000 Rp. 350.000 (approx. USD 22 USD 32). Since the
hiring process usually based on prediction of new outlets, it would be better if the
personality test done by third party in terms of cost.

Hiring full time worker or part time worker can be tricky; it should be based on
company needs. Part time worker can also mean more cost to the company.
Regarding this, the management should make a leave schedule to all of
permanent employee, so that the management could make forecast in examine
replacements whether its part time worker or full time worker with double shift.

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Human Resource Management, Group 2, MMUI, 2014

Part time worker is used when the permanent employee takes leave or sick.
Despite of hiring new part time worker for new or existing outlets, Ya Kun can
create a group of part time worker as backups to replace the empty spot left by
leave / sick employee. So whenever one outlet has shortage of employee, the
team member can replace the employee.

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REFERENCES
Ebert, Ronald J., and Ricky W. Griffin. (2012). Business Essential. 9th Ed., New
Jersey: Prentice Hall, Upper Saddle.
Dessler, Garry. (2013). Human Resource Management. 13th ed. Pearson.
Euromonitor Study, Caf & Bar Industry, Indonesia, 2012

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Human Resource Management, Group 2, MMUI, 2014