CHAPTER 2 LITERATURE STUDY 2.1 Employee satisfaction Employee satisfaction is an employee s cognitive and affective evaluation of his or her job in overall of his/ her job, in specific the components that support employee satisfaction are pay, promotions, work tasks, working system, supervisors, etc. the more satisfied an employee the he/ she could give return to the company the commitment, attendance, and performance. 4 One of theory about employee s satisfaction is equity theory of Eliott Jaques and J. Stacey Adams (1978: 406). Equity theory contents that pay satisfaction exist when an employees job inputs (such as education, experience, effort, seniority and training) and outputs (such as pay, promotion, and intrinsic rewards) are equivalent to the job inputs and outputs of the other employees the employees considers comparable. If there is inequity, the employee will change his behavior (for example, decreased performance), if the behavior cannot be changes, he changes attitudes (reduced satisfaction) and finally he withdraws (absenteeism, turnover). 5 2. 2 Workforce Planning 2.2.1 Workforce Planning Concept According to Andrew E. Sikula, workforce planning is Human resource of manpower planning has been defined as the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plans of the organizations. 6 According to the Human capital management Department of Energy, (2005) workforce planning is a planning process and analytical capability to measure and compare the current workforce (supply or faces) with the future 4 306chapter9, na 5 William F. Glueck, 1978: 406 6 Andrew E. Sikula, 1981: 145 9
workforce (demand or spaces). This planning process provides insight into the best policies and initiatives needed to improve the overall human resources system. It has a critical role in developing personnel requirements/data elements, budgeting processes and all recurring recruitment needs, training requirements and planning activities. To conclude, workforce planning concept basically is a process with analytical capability to decide the necessitate of workforce based on current condition, forecasting, implementation that will integrate with organization planning to create an employee concept (number, system) for the effectiveness and efficiency, for both, company and employee itself. 2.2.2 Component of Workforce Planning In the workforce planning, there are several components that should be considerate. The components are objectives, organization planning, and forecasting. 7 Objectives The workforce planning should have an objectives based on individual, organizational and national interest. Organization planning Organization planning is the activities for the purposes of organization development. The important and influencing aspects in organization planning are business forecasting, business expansion or development, restructuring, government regulation, the production and human capital. Personnel forecasting Before implement the personnel forecasting, company should conduct the human resource audit. Audit is the evaluation, analysis and comparison (with standard). It includes the quality of work, the skills, employee turnover, and internal management. After, conduct the audit, company could conduct the forecasting. Basically, it similar between audit and forecasting, the different is audit 7 Anwar. P, 2003: 7 10
is analyzing this current condition and forecasting should adapt with the future. According to Human capital management Department of Energy (2005), before beginning the workforce planning process, firm needs to have grasped on the main drivers for workforce planning and any influence of those drivers on the workforce planning exercise being done. These drivers set the context for everything that will be looking at throughout this process. The four main drivers for workforce planning are: Organization Direction: includes Strategic Plan, Budget Forecasts, and new technology, working practices, organization culture and what is rewarded in the organizational or individual reward systems. Internal Labor: includes a determination of workforce profile by multi dimensions (gender, age, grade, occupations length of service, etc.); identification of any internal management issues like retention, separation, promotion patterns, etc; identify potential area of workforce that are vulnerable to current or future skills gaps imbalances and look at geographical issues that could be the cause of issues identified. All of these factors have implications for recruitment and retention of the workforce. External Labor: Demographic change in the potential workforce that affecting both the demand for services and workforce supply to fill the vacancies. Business Change: Technological changes are leading to changes in service/information delivery, ways of working and the skills needed in the workforce. Consequently, this will change the competencies for positions and how the company needs to recruit, hire and engage the current and future workforce. 11
2.2.3 Phase of Workforce Planning According to Human capital management Department of Energy (2005), there are five phase in workforce planning. Phase 1 Analyzing The effectiveness of planning depends on the detail, accuracy and reliability of the information sources. It is important to identify all factors that could influence future demand for outputs/service as well as competencies of the internal and external supply of labor. Information gathered during the analyzing phase must be reliable and accurate as this will be the basis for the forecasting phase. To begin the analyzing phase, there are four information sources that will provide key workforce information needs. They include: organization direction and environmental factors (demand analysis); internal and external labor (supply analysis). It is simply analyzing the supply (current workforce profile) against the demand (future workforce profile). Suggested points for Organization Direction information: Demand Analysis Strategic Plan Internal or External reports that could affect business outcomes Budget Estimates for Short and Long terms Plans for new technology Employee survey information Etc Suggested points for Environmental Factors Information: Demand Analysis Demographic changes to the client base Analysis of the influence of technology Changes in economic forecast and how that will effect the organization Analysis of current and future levels of accountability and compliance 12
Suggested points for Internal and External Labor Profile Information: Supply Analysis Internal Age and Gender distributions Length of time necessary to become proficient in mission critical occupations Retirement rates overall but more in mission critical occupations Competencies of Mission Critical occupations Location of Workforce Diversity Characteristics Length of Service Resignation rates Internal Career Paths External Contracts for services Supply analysis External Labor trends in mission critical occupations Internal vs. external acceptance rates Phase 2 Forecasting Forecasting is considering the future needs of an organization. There are 4 steps in the Forecasting phase; identifying key workforce assumptions, validating assumptions, utilizing assumptions for scenario building and performing gap analysis. The first step is to identify key workforce assumptions/issues for the elements based on the data/information collected. The second step is to validate these assumptions by utilizing questionnaires or interviews to various leaders in your organization. The feedback provided will ensure that gathered assumptions are valid and based on the best data available. The third step is utilizing these assumptions in scenario building. Scenarios are a way to develop alternative futures based on different combinations of 13
assumptions, facts and trends that will help to you meet the forecasting goals. Scenarios are generally a descriptive statement presenting a particular picture of the future that includes comments on the probability of certain events occurring. Moreover, scenarios are usually accompanied by qualitative or quantitative information. The following scenarios are the assumptions of best case scenario, worst case scenario. In this research, it will be correlated with the number of vehicle transactions. It can be assume in basic day, holiday, or long weekend that will come out with the number to classify the case scenario. The objective is to meet the efficiency for PT. Jasa Marga itself but still consistent to the service of highway gate. The final phase of forecasting is performing gap analysis. It compares the previous scenario with the current (preferred) scenario. Demand is based on the preferred scenario and competencies or skills need to meet demand requirements. The Gap Analysis should indicate the skills gap, surplus, any recruitment issues, and retention issues to meet the demand, etc. Phase 3 Analyzing This stage will ensure the element to recruit, develop and retain the critical staff needed for a successful workforce plan. A few factors should be considered when deciding upon strategies to address a workforce gap. There are political issues, economic issues, social issues, technological change, legislation and environment issues. In this project, it will be focus on the consideration of technological change. The technological change aspects are innovation (new equipment, new techniques, new methodology, etc), communications, and new ways of working. 14
Phase 4 is implementing, and phase 5 is evaluation. In this research, it not discuss until that phase, so in this theoretical foundations just stated until phase 3. 8 Note: the blue words are the points that will be consider analyzing in this research. 2.3 Work system 2.3.1 Work schedule Working system or schedule in a company could affect the employee needs and the supply of employees. For example, in PT. Jasa Marga, currently use eight hours of work, overall it needs 42 number of employee, but when it change in six hours it could be needs 48 number of people or it could be decrease. In Indonesia, government limits the working hour. The full time work week has not change much since 1940: on average, it is 40 hours. 9 2.3.2 Shift Work When shift work is used, there are two approaches to scheduling it: to assign people to shifts or to rotate them through shifts. Most employees prefer not to rotate their work schedule, but if rotation is used, they would rather have changes every several day rather than at week-long or month long intervals. Shift hours will affect employee adversely. It interferes with time-oriented bodily functions, such as digestion, sleeping, and elimination. Rotating shift work particularly affects personal and family lives and social participation, adversely. 10 8 Guide to workforce planning human capital at the department of energy, 2005 9 William F. Glueck, 1978: 123 10 William F. Glueck, 1978: 124 15
2.3.3 Flexible hours (flexi time) Flextime is an arrangement of working hours which provides for all workers to be present for a specified period in the core time but the rest of the required hours may be completed at their discretion within a specified period. 11 Douglas Fleuter describes four typical approaches to flextime: 1. Daily flexible with fixed lunch period, are time and two flexible periods. In this plan, the person must work the full hours (usually eight) each day. 2. Daily flexible with flexible lunch period. The same as in no.1, except the enterprise is more flexible regarding lunch periods 3. Weekly flexible. Employees must works core times each day, but as long as they get in their weekly total hours, it does not matter if they work more hours on any one day than other. 4. Monthly flexible. It works like no.3, except that each employee s hours are checked for completeness monthly instead of weekly. 12 11 William F. Glueck, 1978: 128 12 William F. Glueck, 1978: 128 16