Solving Human Resource Problem in Pt Maspion

Solving Human Resource Problem of [pic 1][pic 2]

PT Maspion by Applying Motivation and Payment Theory

Fitria Candra Dewi, Zamrida Ma’arifatul Lillah, Dhea Elvira Rossa, Dody Kurnia Lumban Gaol, Devina Kartika Sari

Department of Business Management

Institut Teknologi Sepuluh Nopember

1. Introduction

Motivation is the process which purpose to increase an individual’s intensity, direction and persistence of effort toward attaining a goal specifically, an organizational goal. There are four early theories about motivation, they are:

1. Maslow Hierarchy of Needs Theory
2. Mc Gregor’s Theory X and Theory Y
3. Harzberg’s Two-factor Theory
4. McClelland’s Theory of Needs

These theories are still relevant but need to be more developed in order to fulfill the developing of industrial needs. So, the contemporary theories appear to accommodate the industrial needs. They are:

1. Self determination Theory
2. Goal setting Theory
3. Equity Theory
4. Expectancy Theory

Payment is one of factors which can motivate the employees. Appropriate payment will avoid employees from the dissatisfaction but inappropriate payment will demotivate the employees. One of demotivation effect is decreasing productivity. The human resource department should maintain the payment according to employee’s needs and the laws. The human resource department can determine the salary based on employee’s position and job. But the payment must not be below the minimum wage. Beside the based salary, human resource department can apply these the payment plan:

1. Piece-rate pay plan
2. Profit sharing
3. Gain sharing

2. The Problems

Minimum wages noticeably increased between 2012 and 2014, average wages have not maintained the same pace of growth. This trend highlights that the minimum wage fixing  mechanism is still the most predominant mechanism through which wage increases are achieved in Indonesia. This situation has lead to a narrowing of the gap between average minimum wages and average wages over time. To further emphasize, in 2001 the simple average minimum wage for Indonesia was 58.5 per cent of the average wage for regular employees and by August 2014 this ratio had increased to 76.5 per cent (ILO, 2014)

The government already determined Rp. 3.040.000 as the minimum wage. This rules discourage many entrepreneurs to pay their labor. Some entrepreneurs decide to replace their labors with machines and robots. But Mr. Ali Markus, the CEO of Maspion Group decided to fired around 3600 labors and make them to retire so early. Mr. Markus is not able to pay the labor as much as that. This decision occurs some problems in Human Resource point of view. They are:

1. Treatment for 3600 fired labors.
2. Increase the payment in order to equity.
3. Keep the production levels with the existing labors.
4. Stress management for the labors.

4. Solutions

4.1 Treatment for 3600 faired labors