Paper Human Resource Management (Case: Ya Kun Kaya Toast)

i | Human Resource Management, Group 2, MMUI, 2014

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

ii | 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 What is business?............................................................................ 1 1.1.2 What is Human Resource Management? ........................................ 1

1.2 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 Personal Planning - Recruitment: Ya Kun Kaya Toast Case Study 10 2.2.2 Hiring Part Time Workers ............................................................. 12 2.2.3 Good Attitude and Commitment ................................................... 13

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

2.3.1 Ya Kun Mall Kelapa Gading Outlet .............................................. 14 2.3.2 Ya Kun Kuningan City Outlet ....................................................... 16 2.3.3 Ya Kun Pacific Place Outlet.......................................................... 17

CONCLUSION ........................................................................................................... 18

REFERENCES............................................................................................................ 20

1 | 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.


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.


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


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


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.


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.


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


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


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,


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, flat-

organization, 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;


(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 Forecast

Indicator 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sales

Industry Value (in IDR

Bio) 293.7 330.3 363.2 397.7 431.5 500.6 550.6 611.2 681.5 763.3 858.7

Industry Growth (%) 12% 10% 9% 8% 16% 10% 11% 12% 12% 12%

CAGR : 9.3%

No. of Outlets

Industry Value (in Bio) 85 94 101 108 110 125 140 154 168 181 194

Industry Growth (%) 11% 7% 7% 2% 14% 12% 10% 9% 8% 7%

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 9.1 10 10 11 11.5 12 12.5 13 13.6

Company Growth (%) 2% 5% 8% 6% 4% 4% 4% 4% 4%

CAGR : 4%


No. of Outlets 27 27 28.2 29.4 30.6 32

Ratio 0.43

Additional Branch 0 1 1 1 1

Recruitment 9 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).


- 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.


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


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


2.3.2 Ya Kun Kuningan City Outlet

Location: Mall Kuningan City

Capacity: 30 people


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


2.3.3 Ya Kun Pacific Place Outlet

Location: Mall Pacific Place

Capacity: 30 people


Total staffs: 6 people

Picture 6 - Ya Kun Kaya Toast Pacific Place Outlet

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


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.


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.


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

Documents

Paper Human Resource Management (Case: Ya Kun Kaya Toast)