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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 eforts, inefciency will likely to be faced. Theory
presents an ideal approach how Human Resource lanning should be
conducted. Howe!er, the writer is intrigued to disco!er 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 lanning is applied in Royal Rainbow Tours, one of
tra!el 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 $e%ible approach suited the needs of the organization.
Keywords& Human Resource management, lanning, Royal Rainbow,
Tra!el 'gency
1.0. INTRODUCTION
1.1. Backr!"#$ !% 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,
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accommodation, travel agents, tour operator, food and beverage
service, etc.
Travel agent as one of the businesses involved has a
considerable role in fulflling a person needs for travel. Travel agent
provides services in which make it easier for the person fulfll his
travel needs. y 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 fve 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 signifcantly
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
)ualifed 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.
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$s it is important to study about human resource management
in Travel 'ompany, therefore, this paper is titled )HUMAN
RESOURCE MANAGEMENT ANALYSIS IN ROYAL RAINBOW
TOURS.*
1.+. ,"r-!s' !% t&' St"$(
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 $c)uiring (uman
*esources which involve (uman *esource Planning and Sta+ng at
*oyal *ainbow Tours. This is in accordance with the limitation of time
and knowledge the writer has and focusing on the main issue of the
fndings at *oyal *ainbow Tours.
1.1. M't&!$!2!( !% t&' St"$(
The study is )ualitative descriptive analysis using two
instruments, observation and interview.
1.3. G!a2 !% t&' St"$(
y analy-ing the theory and the application, the gap between
the theory and the application can be identifed and reasons can be
discussed. The result of the study can generally be used as an input
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for those who are interested in managing a travel agent and
specifcally be an input for *oyal *ainbow Tours to optimi-e their
human resources process.
+.0. THEORITICAL 4RAMEWORK
+.1. D'5#/t/!# !% Tra6'2 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 terminologies seem to have signifcant di.erences.
(owever, basically they all are the same in practice although from the
activities involved are di.erent.
The terminology for travel bureau which is commonly used in
"ndonesia is e)ual to tour operator which is commonly used
internationally. $ccording to $.!. urkat #/01/234564% 7tour operator is
a distribution company in tourism industry which acti!ities in!ol!es
ser!ice pro!ision based on demand, transport arrangement,
accommodation arrangement, and other necessary ser!ices needed
by tourists in particular tourist destination, as well as package tour
selling through its agent or through its ofce to indi!idual or group
with certain prices.
$ccording to the 8aw of Tourism 9o.5, 455:, point 44 states
7(saha #asa er)alanan Wisata merupakan usaha penyediaan )asa
perencanaan dan atau )asa pelayanan dan penyelenggaraan wisata.*
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#Travel bureau is bureau which provides travel planning and
organi-ing services%.
;rom the defnition 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 <inistry 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
d% $dminister travel documents
e% Organi-e tour program
f% Provide service for convention
$ccording to <inistry of Tourism, Post and Telecommunication
=ecree Travel agent is a business which organizes tra!el and it
functions as the mediator in selling or ser!ing for tra!el. 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
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+.+. H"0a# R's!"rc' Ma#a'0'#t
$ccording to !ohn <. "vancevich and 8ee Soo (oon #>::>%
(uman *esource management is the function performed in
organi-ations that facilitates the most e.ective 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 frm in the external environment and the nature of its current
employee@s knowledge, skills, and abilities. &ith (* planning, the frm
ensures that su+cient numbers of properly trained sta. are available
at all times to carry out the frm@s operations e+ciently and
su+ciently. (owever, (* planning must include the following to
ensure well defned strategic of the company can be carried out.
4. Situation analysis and environmental scanning
>. ;orecasting demand for human resources
A. $nalysis of the supply of human resources
0. =evelopment of plans for action
Situation analysis and environmental scanning involves a
strategic plan to adapt with the environmental circumstances. Bet,
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currently changing environment re)uires the ability of being global
scanner in order to say competitive.
;orecasting 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 di+cult 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.
$naly-ing the current supply of employees does not merely
mean counting the number of the employees available. Bet, it is such
a complex inventory of human resources skills in terms of career
planning, management development
The last stage of (* planning is the action taken to identify any
gap existing among those aspectsCsituation analysis, forecasting
demand, analy-ing supplyCand overcome both in shortage and
surplus condition of workforce.
+.+.+. Sta7#
Once the critical ?ob competencies are identifed from the (*
Planning process, the frm can carry out its sta+ng process. Sta+ng is
the process of hiring people to perform work for the organi-ation. "t
comprises two ma?or activities, recruitment and selection.
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*ecruitment involves obtaining a large number of applicants,
thereby giving human resources professionals and managers more
choices to select from among the competent candidates. Two sources
of recruits could be used to fll needs for additional employees,
present employees #internal% or those not presently a+liated with the
organi-ation #external%.
4. "nternal sources can be tapped through the use of ?ob posting
and bidding, and seeking recommendations from present
employees regarding friends who might fll vacancies.
>. Dxternal sources include media advertisement, the internet,
employment agencies, and special events recruiting such as ?ob
fair, and referrals from schools
Selection process is employed to hire employees who are most
likely to meet the organi-ation@s standards of performance and who
will be satisfed and developed on the ?ob. The typical selection
process can include up to fve steps,
4. preliminary screening with an application blank and a brief
interview
>. Dmployment interviews
A. Dmployment tests
0. *eference checks and letters of recommendations
/. Physical examination as a part of a conditional ?ob o.er.
+.+... Or/'#tat/!#8 Tra/#/# a#$ D'6'2!-0'#t
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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 refne their existing skills. Training is the organi-ation@s e.orts 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 up1to1date 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 E wages, salaries,
bonuses, commissions, benefts, and non fnancial 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
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
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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.
+.+.9. 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. ;or others they seek to ensure fair and
e)uitable treatment for all employees.
..0 RESULT O4 THE STUDY
..1. A# !6'r6/': !% t&' C!0-a#(
*oyal *ainbow Tours was established in 45F5. "t was frst
located on !8. 'ikini *aya 9o.FF 'entral !akarta and named as PT.
Griya =harma &isata. Since the name of PT. Griya =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
sta.s.
"n 455:, it received Operational $pproval 8etter from
=irectorate General of Tourism no. :65H"I.P&HJ&.SPH455:. On the
frst year of its establishment, the company was focusing on its in1
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bound tour program in which it covers !ava1ali Tour program. $nd the
target market of the company was international tourist and domestic
tourist.
"n 455>, the company invested on Travel us. "n the same year
the company had >> employees. The company continuously focusing
on its in1bound tour program and airlines ticket sales was ?ust a
supplement.
"n 455F, 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 6 employees.
*oyal *ainbow Tours has got two outlets. One is the head o+ce
and the other one is the branch o+ce.
(ead o+ce,
!l. =r. <uwardi """ 9o.0: !akarta 440/:
Telp.:>41/A:A44, ;ax.:>41/2520FAA
ranch o+ce,
!l. Jompleks Pertokoan 'empaka <as
Telp.:>410>FF:/:5, ;ax.:>410>FF:/:F
The company has a motto 7&e are tour1packaged specialist.K "t
implies that the company is speciali-ing in tour with the fact that the
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economics return from tour program sales is higher than air transport
ticket sales. (owever, the company start focusing on its air transport
sales as well as the airlines industry is booming in >::>.
R!(a2 Ra/#b!: T!"rs Ora#/;at/!#a2 Str"ct"r' %r!0 1<<+=1<<<
R!(a2 Ra/#b!: T!"rs Ora#/;at/!#a2 Str"ct"r' A%t'r 1<<<
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<anager of Tour
=epartment
Shareholder

=irector
<anager of
Transport
=epartment
<anager of ;inance
and
$ccounting
=epartment
4 Ticketing sta.
> Tour sta.
4: =rivers
/ 'o1
=river
4
'ashier
Sharehold
er
=irector
Tour =epartment
#(ead O+ce%
Tour =epartment
#ranch%
4 TicketingH'ashier
Sta.
4 TourH Transport Sta.
4 TicketingH 'ashier
Sta.
4 TourH Transport
Sta.
A =rivers
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4% =irector
To oversee, direct all aspects of *oyal *ainbow Tours operation
and receive reports from department manager on the on1going
activities of the company.
>% <anager of ;inance and $ccounting
To make strategic fnancial plan and budgeting, record out Low
and in Low cash, control all form of collection in terms of
fnance and banking, and write fnancial report to the director.
A% 'ashier
To receive payment from sales and make invoices, distribute
salaries to all sta.s, and report to <anager of ;inance and
$ccounting
0% <anager of Tour =epartment
To plan, create and organi-e tour package, supervise ticketing
sta.s work, assist ticketing sta.s when needed, and write
reports to the director.
/% Ticketing Sta.
To make reservation whether by phone or face to face, make
bookings of airlines seats, provide su+cient information on
Light and airlines seats prices.
2% Tour Sta.
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To assist <anager of Tour =epartment in planning, creating and
organi-ing tour package, and sell and promote tour program
made by Tour =epartment.
6% <anager of Transportation
To ensure that all vehicles owned by the company are under
good condition, to coordinate, direct, and supervise drivers and
co1drivers based on the program scheduled by tour department
or based on re)uest.
F% =river
To operate the vehicles owned by the company safely, fetch and
drop o. vehicles right on schedule, and wisely use the fuel in
line with tour program.
5% 'o1driver
To assist driver in fulflling his duties
..+. HR ,2a##/#
4% ;rom 455> to 4555
&henever there was a very high demand for tour in 455>, the
company had to ensure that it had su+cient number of sta.s 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 sta.s, through
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experience and practices during the work, was expected to able to
handle pro?ects initially given to hisHher manager. Therefore, it
stimulated the employees to improve their performance. Bet, the
director, as he explained, faced a dilemma where his best personnel
then was hi?acked by other companies, contrasted to the
development process that had been given to the employees since
they were new comers in the industry.
>%;rom 4555 to present
<a?or changes occurred in 4555 following the post culmination of
monetary crisis. =emand fell down to its lowest point that reached :
#-ero demand% and called for dramatic e+ciency for the sake of the
company@s survival. $s a result, F:M of its total workforce needed to
cut o.. Once again, the company su.ered from poor cash Low and
forced to sell its assets consisting of A #three% buses and > #two% micro
buses. The money gained was used to pay the fee for the employees.
Those who worked less than A years received #one% month salary and
who worked for more than A years or less than 4: years received A
#three% months salary. The fee, however, was paid in A1month
installment to avoid the company from running out of cash.
The remaining / employees are now working on > departments both
in the head o+ce and the branch o+ce with direct supervision from
the =irector.
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Bet, since >::0 there has been a positive trend in tour packages
demand, so the company is able to keep in business while restoring
its fnancial condition. $ccording to the director, the average value of
the pro?ects received is "=* 0::,:::,::: per year since >::0 up to
present and it is enough to sustain the operation cost of the company.
Since then, the company is applying 4::M 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 packages demanded with satisfying service.
Permanent employees work only on administrative tasks at the o+ces
while feld pro?ects are handled by the outsourcing with direct
supervision form the director. There is no specifc 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.
.... Sta7#
"n 4552, 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 )ualifed and un)ualifed candidates applied for the post. "t took
him some time to screen the candidates, so it would be impractical to
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use this method for recruitment. ;or recruitment process, he would
prefer referral from school or friend. $s the director himself was a
teacher in Travel =epartment of a Nocational School in !akarta, he
would recruit his student who had ?ust graduated #fresh1graduate% to
work for his travel. Otherwise, he would ask his friend a favor to fnd
him the suitable candidates to work for his company.
;or the selection process, once the director has got several
candidates to fll 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 sta. and the other is with
the director himself. There are two basic )ualifcations in order to pass
the selection process. The frst one is intelligence and the second one
is attitude. ;or sta. level, at least the person has to be tourism
vocational school graduates and for managerial level3 the person
must minimally have diploma certifcates. ;or tour department, the
person must be able to make tour program and can speak Dnglish,
while for ticketing department, the person must be computer literate
and able to use $bacus *eservation System.
..1. Or/'#tat/!#8 Tra/#/# a#$ D'6'2!-0'#t
Once the employee is hired, he would undergo a three1month1
probation period, including one month training period. Training is
given by the senior employee3 the schedule is from 5 to 4> a.m. every
day during the training period. $nd after the probation period is over,
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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 ;rench tourists, the company enrolled his sta. to a ;rench
course, and when there is an invitation for seminar, the company will
send its sta. to participate in it.
..3. C!0-'#sat/!#
"n the probation period, a sta. would receive *p.4/, :::Hday for
eight working hour, six days work and one day o., for three months.
$fter that, once the sta. 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, then the sta.
would get an incentive for every feld work he does. The incentive
excludes accommodation and meals. esides that, The 'ompany
gives T(* #the 4A
th
salary% for every sta. employed.
The company gives its sta. health allowance of *p.4:, :::H
month or *p.4>:, :::Hyear. This allowance is given to the sta.
whether they are sick or not. (owever, when the sta. 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
sta.s receive uniform annually, A shirt and > trousers per year. T1
shirts made for group are given to the employees.
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..9. ,'r%!r0a#c' Ma#a'0'#t
There is not strict performance evaluation on the work done by
the sta.s in the company. The company evaluates probation sta.s
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 co1worker and the
department manager.
&hile for the old sta.s, 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
4555 the outing program is never held, because the sta.s refuse it
and prefer to have incentive bonus instead.
1.0 DISCUSSION
$s noted earlier in the frst chapter, the writer has limited the
area of discussion in ac)uiring human resource process which
involves human resources planning and sta+ng 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 fndings have also visuali-ed that the
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modifed human resources planning in the company helped its
operational activities in the early years of the crisis and redefned the
way how the company retained proft.
The following are the fndings that are of our interests.
4. Shift from manager1centered to director1centered pro?ect work.
The writer has found that since 4555 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 di+cult 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 su.ers from shortage.
>. <odifed company@s sta+ng strategy for cost e.ectiveness
"t is interesting to fnd that economics is the key factor that
determines the decision made by the director in planning and
managing his sta.. The decision made by the director to cut o.
F:M of his workforce, either for the mid1management 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
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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 sta.s
to see that the small1organi-ation where they work in is unstable,
dependent to economic change, full of uncertainty, and do not
o.er a very great salary. $nd also due the nature of the salary they
receives which is pro?ect1based, 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 Lexible and based
on circumstances and conditions.
*oyal *ainbow Tours principally has followed the theory of
(uman *esource <anagement system, starting from (* planning,
*ecruitment and Selection, Training O =evelopment, 'ompensation,
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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 fulflled the company
needs to achieve its goal. Dxternal factor, such as national economics
and political situation which inLuence tourism sector also has a.ected
the internal economics of the company. "t gives an impact on how the
company manages its human resources.
3.+. S"'st/!#
4. "t is suggested for the sake of human resources e.ectiveness, ?ob
distribution and description among employees are well defned.
Particularly, in the department of tour with above average
workload compared to its counterpart ticketing department. There
should be a redefnition 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. 9ew 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 strong driving force within the employees while
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fulflling 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 fnancial 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'$2/k S. Tourism. ast. resent, and ,uture.
(einemann. 8ondon, 45F4
C&a2/k8 E.A. -asar.-asar engetahuan ariwisata. Bayasan hakti
<embangun. !akarta. 455>
I6a#c'6/c&8 ?.M. a#$ L'' S!! H!!#. (uman Resource
"anagement in 'sia. <c Graw (ill Dducation. >::>

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8$<P"*$9
DA4TAR ,ENGHASILAN ,ERUSAHAAN
ROYAL RAINBOW TOURS @,ER=TAHUNA
TAHUN ?UMLAH @R-.A
455> E 4555
4555 1 9ow
4,>::,:::,:::
0::,:::,:::
DA4TAR ,ENGHASILAN KARYAWAN
,T. ROYAL RAINBOW TOURS @,ER=BULANA
1<<<=NOW
,OSISI ?UMLAH @R-A BONUSBINSENTI4 @R-A
Ticketing and Tour Sta.
=river
I<*
I<*
/::,:::1
>,:::,:::Hproyek
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