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 efforts, inefficiency will likely to be faced. Theory presents an ideal approach how Human Resource Planning should be conducted. However, the writer is intrigued to discover how Human Resource Management is applied in real situation, since the real world is dynamic and always change. This paper is a case study on how Human Resource Planning is applied in Royal Rainbow Tours, one of travel agency in Jakarta. The result shows that the best practice does not always in accordance with the theory. Human Resource Management, in this case of Human Resource planning, is regarded as flexible approach suited the needs of the organization. Keywords: Human Resource management, Planning, Royal Rainbow, Travel Agency 1.0. INTRODUCTION 1.1. Background of the Study 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, accommodation, travel agents, tour operator, food and beverage service, etc. 2 Travel agent as one of the businesses involved has a considerable role in fulfilling a person needs for travel. Travel agent provides services in which make it easier for the person fulfill his travel needs. By using its service, people do not need to waste their time or energy to make travel arrangement. Just by picking up the phone then the travel agent will take care the rests. In Indonesia, travel agent has become partner of the society where it is there to assist them in making necessary travel arrangement they need. In Jakarta itself the number has reached more than five hundreds (according to the list taken from ASITA). With the numerous presence of travel agent, it makes this business extremely competitive. Certain strategy is implemented by each travel agent in order to survive in the wave of competition. Human resource management is one factor that is significantly important for a company to achieve its goal. It is the tool which makes a company be more competitive and will able to produce highly qualified services and products. Royal Rainbow Tours is one of the travel agents in Indonesia. It has been in the business for sixteen years. With long its history, experience, as well as its ups and downs, there must be something that can be learned from the company. As it is important to study about human resource management in Travel Company, therefore, this paper is titled “HUMAN RESOURCE MANAGEMENT ANALYSIS IN ROYAL RAINBOW TOURS.” 2 3 1.2. Purpose of the Study This paper will discuss the theory of human resource management process, how the human resources management process applied by Royal Rainbow tours in order to survive in the industry. 1.3. Limitation of the Study The study will be limited on the process of Acquiring Human Resources which involve Human Resource Planning and Staffing at Royal Rainbow Tours. This is in accordance with the limitation of time and knowledge the writer has and focusing on the main issue of the findings at Royal Rainbow Tours. 1.4. Methodology of the Study The study is qualitative descriptive analysis using two instruments: observation and interview. 1.5. Goal of the Study By analyzing the theory and the application, the gap between the theory and the application can be identified and reasons can be discussed. The result of the study can generally be used as an input for those who are interested in managing a travel agent and specifically be an input for Royal Rainbow Tours to optimize their human resources process. 2.0. THEORITICAL FRAMEWORK 2.1. Definition of Travel Agent In tourism industry, there are several terminologies commonly used such as travel bureau, tour operator and travel agent or travel service. The three 3 4 terminologies seem to have significant differences. However, basically they all are the same in practice although from the activities involved are different. The terminology for travel bureau which is commonly used in Indonesia is equal to tour operator which is commonly used internationally. According to A.J. Burkat (54-56;1971) “tour operator is a distribution company in tourism industry which activities involves service provision based on demand, transport arrangement, accommodation arrangement, and other necessary services needed by tourists in particular tourist destination, as well as package tour selling through its agent or through its office to individual or group with certain prices. According to the Law of Tourism No.9, 1990, point 11 states “Usaha Jasa Perjalanan Wisata merupakan usaha penyediaan jasa perencanaan dan atau jasa pelayanan dan penyelenggaraan wisata.” (Travel bureau is bureau which provides travel planning and organizing services). From the definition it can inferred that travel bureau or tour operator is a business which serves tourists or traveler in planning, arranging, and organizing 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 Ministry of Tourism, Post and Telecommunication above involve: a) Create, sell and organize package tour b) Provide transportation service to individual or group c) Reserve accommodation, restaurant, and other facilities 4 5 d) Administer travel documents e) Organize tour program f) Provide service for convention According to Ministry of Tourism, Post and Telecommunication Decree Travel agent is a business which organizes travel and it functions as the mediator in selling or serving for travel. The activities involve: a) Selling ticket of transportation and others b) Provide Reservation services c) Administer travel documents according to the implemented law and procedure 2.2. Human Resource Management According to John M. Ivancevich and Lee Soo Hoon (2002) Human Resource management is the function performed in organizations that facilitates the most effective use of people (the employees) to achieve organizational and individual goals. The functions can be group into the following categories: 2.2.1. HR Planning Human resource planning involves determining future human resource needs and job requirement. HR plans are derived from the organization goals, the organization’s strategy, conditions faced by the firm in the external environment and the nature of its current employee’s knowledge, skills, and abilities. With HR planning, the firm ensures that sufficient numbers of properly trained staff are available at all times to carry out the firm’s operations efficiently 5 6 and sufficiently. However, HR planning must include the following to ensure well defined strategic of the company can be carried out. 1. Situation analysis and environmental scanning 2. Forecasting demand for human resources 3. Analysis of the supply of human resources 4. Development of plans for action Situation analysis and environmental scanning involves a strategic plan to adapt with the environmental circumstances. Yet, currently changing environment requires the ability of being global scanner in order to say competitive. Forecasting demand for employee requires a strong sense of the future conditions although quantitative tools are available in the market to measure the demand. It is quite difficult to do if related to the question of how many employee the company needs within 2 years for example. However, there are approaches helpful for HR practitioners to cope with the unstable condition. The approaches are: expert estimates, trend projections, statistical modeling, and unit demand forecasting. Analyzing the current supply of employees does not merely mean counting the number of the employees available. Yet, it is such a complex inventory of human resources skills in terms of career planning, management development The last stage of HR planning is the action taken to identify any gap existing among those aspects—situation analysis, forecasting demand, 6 7 analyzing supply—and overcome both in shortage and surplus condition of workforce. 2.2.2. Staffing Once the critical job competencies are identified from the HR Planning process, the firm can carry out its staffing process. Staffing is the process of hiring people to perform work for the organization. It comprises two major activities: recruitment and selection. Recruitment 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 fill needs for additional employees: present employees (internal) or those not presently affiliated with the organization (external). 1. Internal sources can be tapped through the use of job posting and bidding, and seeking recommendations from present employees regarding friends who might fill vacancies. 2. External sources include media advertisement, the internet, employment agencies, and special events recruiting such as job fair, and referrals from schools Selection process is employed to hire employees who are most likely to meet the organization’s standards of performance and who will be satisfied and developed on the job. The typical selection process can include up to five steps: 1. preliminary screening with an application blank and a brief interview 2. Employment interviews 7 8 3. Employment tests 4. Reference checks and letters of recommendations 5. Physical examination as a part of a conditional job offer. 2.2.3. Orientation, Training and Development Orientation gives new employee the opportunity to adapt with the new surrounding of the organization that he or she enters in. The focus of orientation is to socialize with to the rules, regulations, and goals of the organization, department, and work unit. Training and development activities teach employees new skills and refine their existing skills. Training is the organization’s efforts to increase the capabilities of individuals to achieve organizational objectives. The goal of training and development is to have competent, adapted employees who possess up-to-date skills, knowledge, and abilities to perform their current jobs successfully as well as to prepare them for future job changes. 2.2.4. Compensation Compensation is the human resource management function that deals with every type of reward that individuals receive in exchange for performing organizational tasks – wages, salaries, bonuses, commissions, benefits, and non financial rewards like praise. The objective of the compensation function is to create a system of rewards that is equitable to the employer and employee alike. 2.2.5. Performance Management 8 9 Performance management is the process of communicating the organization’s performance expectations to employees, assessing the performance of employees’ work quality and outcomes as well as assessing employees’ future work potential. The organization evaluates their employees for several reasons. This includes determining pay raises, giving feedback, and assessing training needs. Without evaluations, employees will not know how they are performing based on company expectations or where they can make improvement. 2.2.6. Employee Relations A labor relation is the formal structure that governs the interaction between an organization’s management and its unionized employees, for some managers it means reducing hostilities or employee dissatisfaction. For others they seek to ensure fair and equitable treatment for all employees. 3.0 RESULT OF THE STUDY 3.1. An overview of the Company Royal Rainbow Tours was established in 1989. It was first located on JL. Cikini Raya No.88 Central Jakarta and named as PT. Griya Dharma Wisata. Since the name of PT. Griya Dharma Wisata is not very easy to remember, the company uses Royal Rainbow Tours as its company name. In the beginning, the company only had four staffs. In 1990, it received Operational Approval Letter from Directorate General of Tourism no. 079/IU.BPW/KW.BSP/1990. On the first year of its 9 10 establishment, the company was focusing on its in-bound tour program in which it covers Java-Bali Tour program. And the target market of the company was international tourist and domestic tourist. In 1992, the company invested on Travel Bus. In the same year the company had 22 employees. The company continuously focusing on its in- bound tour program and airlines ticket sales was just a supplement. In 1998, the national economics and political situation was unstable and it had a great impact on the company. The company had to make necessary adjustment with the not very conducive external situation. The company has managed to survive, and now it is still exist with 7 employees. Royal Rainbow Tours has got two outlets. One is the head office and the other one is the branch office. Head office: Jl. Dr. Muwardi III No.40 Jakarta 11450 Telp.021-530311, Fax.021-56964833 Branch office: Jl. Kompleks Pertokoan Cempaka Mas Telp.021-42880509, Fax.021-42880508 The company has a motto “We are tour-packaged specialist.” It implies that the company is specializing in tour with the fact that the economics return from tour program sales is higher than air transport ticket sales. However, the company 10 [...]... 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 flexible and based on... discussion in acquiring human resource process which involves human resources planning and staffing of Royal Rainbow Tours It is quite 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 findings have also visualized that the modified human resources planning in... Rainbow Tours principally has followed the theory of Human Resource Management system, starting from HR planning, Recruitment and Selection, Training & Development, Compensation, etc However, technically it does not apply one hundred percent what is mentioned in the theory It happens because of several factors The company applies the human resources management system simply based on the needs of the... with the supervision of the director, to show the company’s commitment to human resources development REFERENCES Burkat A.J and Medlik S Tourism Past Present, and Future Heinemann London, 1981 Chalik, E.A Dasar-Dasar Pengetahuan Membangun Jakarta 1992 Pariwisata Yayasan Bhakti Ivancevich, J.M and Lee Soo Hoon Human Resource Management in Asia Mc Graw Hill Education 2002 21 22 LAMPIRAN DAFTAR PENGHASILAN... economics and political situation which influence tourism sector also has affected the internal economics of the company It gives an impact on how the company manages its human resources 5.2 Suggestion 1 It is suggested for the sake of human resources effectiveness, job distribution and description among employees are well defined Particularly, in the department of tour with above average workload compared... given health allowance, the company would give more In addition, all staffs receive uniform annually, 3 shirt and 2 trousers per year T-shirts made for group are given to the employees 3.6 Performance Management There is not strict performance evaluation on the work done by the staffs in the company The company evaluates probation staffs when they have completed the probation period and after that decides... that economics is the key factor that determines the decision made by the director in planning and managing his staff The decision made by the director to cut off 80% of his workforce, either for the mid -management 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 by the government is the strategy implemented