Managing Industrial Relation and its impact to Productivity Growth

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Industrial Relation Forum – Kuta - Bali, 27 – 29 November 2008

M a na ging I ndust ria l Re la t ion

a nd it s im pa c t t o

Produc t ivit y Grow t h

Totok

Totok SoepriantoSoeprianto

Group HR Senior Manager

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Industrial Relation Forum

Industrial Relation Forum ––KutaKuta--Bali, 27 Bali, 27 ––29 November 200829 November 2008

PT Tiara Marga Trakindo

PT Trakindo Utama

PT Mitra Solusi Telematika

PT Cipta Kridatama

PT Cipta Krida Bahari

PT Alfa Trans Raya

PT Sanggar Sarana Baja

PT Chandra Sakti Utama Leasing

PT Chitra Paratama

PT Chakra Jawara

PT Sumberdaya Sewatama

PT Tunas Inti Abadi PT Tri Swardana Utama

PT Cipta Kridatama

TMT Group

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Industrial Relation Forum – Kuta - Bali, 27 – 29 November 2008

Founder

’

s Mission

To set up an entity that creates worthwhile &

challenging job opportunities to as many

Indonesians as possible, while incorporating

the following values:

o

Continues development of employees

o

Consistent capital growth (financial,

intellectual, brand identity) and

reinvestment of capital into the business,

and

o

Maintaining highly ethical business

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Industrial Relation Forum

Corporate Values

Our Common Beliefs

Our Common Beliefs……......

World Class

Bringing international talent and best practices to Indonesia

Demanding

High level of internal expectations

Proactive

Constantly seeking to improve operations

Respectful

Build mutual respect of fellow employees, customers, marketplace and suppliers

Ethical

Always maintain and practice high level of business ethics

Employee Development

Constantly seek training & employee enhancement possibilities Æ

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Industrial Relation Forum – Kuta - Bali, 27 – 29 November 2008

Our Objectives Through IR

Be an employer of choice

Attract & Retain the RIGHT PEOPLE

Harmonious / conducive working

environment

Fully developed, competent & motivated

workforce

High integrity & ethical business practices

Productivity based remuneration system

Continues Growth of assets capital,

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Industrial Relation Forum

F

Meet or Exceed Shareholder

Expectations

Revenue & Growth

Revenue & Growth Cost & ProductivityCost & Productivity

“

“Operational Operational Excellence

Excellence””

“

“Corporate Corporate

Responsibility

Responsibility””

Corporate Strategy Map

Develop New Products &

Services

Cost Effectiveness and Financial Assets

Productivity People People Productivity Productivity Integrated Industry Solution Enduring

Relationship “Corporate Brand”_Image

Superior Value Proposition

Our Corporate Values are the foundation of everything we do

Our Corporate Values are the foundation of everything we do

Human Capital

Human Capital Information CapitalInformation Capital Organization CapitalOrganization Capital

Attract & Retain the Right People

Enable The Strategy through Technology Platforms Achieve Leadership

in Strategic Market Segments

Excel at Core Operational Processes to deliver The value proposition

Be Good Corporate Citizen New Business

“

“Improve our Return on Capital & Grow the Business ProfitablyImprove our Return on Capital & Grow the Business Profitably””

“

“Be seen by our customers as the Be seen by our customers as the ‘‘Customer Services CompanyCustomer Services Company’’by adding Real Value to their businessby adding Real Value to their business””

Effectively Manage Customer

Portfolio

“

“Customer ServicesCustomer Services””

“

“New Business New Business Development

Development””

What we must deliver to our shareholders?

Build a Customer & Process Oriented Culture Add Value

to Corporate

Market Leadership through ‘Operational Excellence’

The

The ‘‘Foundations of SuccessFoundations of Success’’begin with ourbegin with ourPeoplePeople

C

P

LG

How we must develop our Organization & People? What processes we must excel at to achieve

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Balanced Score Card Approach

Cascading the strategy Cascading the strategy

Targets & Initiatives

What we need to do (3W Forms) Personal Objectives

What I need to do

Satisfied Delighted Efficient & Effective Motivated

Shareholders Customers Processes Workforce

Corporate Vision 2010 Strategies

Create Target Alignment

Mission

Why we exist

Values

What is important to us

Vision

What/Where we want to be

Strategy (Thrusts, CSFs & SAIs)

Our Game Plan

Strategy Map

Translate the Strategy

Balanced Scorecard

Measure & Focus

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Industrial Relation Forum ––KutaKuta--Bali, 27 Bali, 27 ––29 November 200829 November 2008 Organization Development Organization Competence Individual Individual Competence Competence System & Tools People Development Biz Process Mapping Biz Process Mapping Organization Design Organization Design Job Description & Specification Job Description & Specification Job Evaluation Job Evaluation Grading System Grading System Program & Execution PMD PMD Learning Learning Career Career

PHASE 1 PHASE 2 PHASE 3

PEOPLE AND ORGANIZATION DEVELOPMENT PEOPLE AND ORGANIZATION DEVELOPMENT

( PD & OD ROAD MAP )

Competency Development Competency Development Employee Competency Assessment Employee Competency Assessment HRIS SAP & PORTAL HRIS SAP & PORTAL HR Planning “ SPPOC “

•Strategy •Planning •Policy •Operational •Controlling HR Planning “ SPPOC “

•Strategy •Planning •Policy •Operational •Controlling

Group Corporate Vision, Mission, Goals & Strategy

Company Vision, Mission, Goals & Strategy

Founder Vision, Mission, Goals & Strategy

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Industrial Relation Forum – Kuta - Bali, 27 – 29 November 2008 Human Capital Management Human Capital Management Learning Training & Development Learning Training & Development Productivity / Performance Link Reward Productivity / Performance Link Reward Quality of Work life Quality of Work life Harmonious Industrial Relation Harmonious Industrial Relation People Development People

Development Mutual Trust & Respect Mutual Trust & Respect Reciprocal Communication Reciprocal Communication Transparent, Involvement & Commitment Transparent, Involvement & Commitment Effective Effective Productivity Productivity Effective Manpower Planning Recruitment Management Placement/ Assignment & Succession Termination Management Legal Aspect Human Capital Data Base Payroll & Tax Admin

HR Value Chain

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Industrial Relation Forum

Causes & Impact of

In conducive Industrial Relation

Economic & Social Gap

Worker’s economic consumption behavior

Worker’s level of education (macro & majority)

Worker’s solidarity

Worker’s awareness of rights & responsibilities

Poor of Leadership

Unfair treatment

Communication gap

External Provocation

High Cost

Low Productivity

Low moral of the employees High turn over ÆLost of key

Ee’s

High grievances & disputes Low integrity Æfraud

Lack of focus Æ delay High redo / error

Lack of safety Slow operation

Information Leaking Opportunity for external

provocateurs

Causes

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Managing Industrial Relation

Reciprocal Communicati on

o Regular meeting o Employee

Gathering o TUSRA

o Tool Box Meeting o Monday Meeting o CIM Æ6 Sigma o “Prakarsa”

Program o AntarkitA

Bulletin

o Internal Portal

People

Development

o Formal Training o Apprentice

program o Basic Training o Basic Supervisory

Skills Training o Six Sigma o Management Course o Competency Profiling o Succession Mutual Trust, Respect & Appreciation

oBalanced of Right & Obligation

oEqual treatment oCareer freedom oFree Gender oEncourage Local

People

oPresident Director Quality Award oBiz Trip etc. Productivity / Performance Link Reward Productivity / Performance Link Reward Quality of Work life Quality of Work life Harmonious Industrial Relation Harmonious Industrial Relation Transparent, Involvement Cascading Vision, Mission, Target & Strategy

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How we develop a conducive Climate

Develop leadership at all levels

Establish intensive reciprocal communication ER:EE

Continues People Development

Æ

”Fully Competent”

& Motivated Workforce

Æ

“mature work forces”

Listen & Get employees involvement

Be an Employer of Choice

Æ

Conduct regular EOS

Build attractive & competitive Compensation &

Benefits

Fair treatment to employees

Æ

“be consistent”

Build human capital with high integrity character &

behavior

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Industrial Relation Forum – Kuta - Bali, 27 – 29 November 2008

Tools To Build Conducive Climate

TUSRAÆ An Employees Association incl. family

Mitratama Foundation (Scholarship & Education assistances)

AntarkitA internal bulletin for information & communication (hardcopy magazine)

Internal Portal (digital online)

Employee & Family Gathering

Service Years Award

President Director Quality Achievement Award

Team Work Building Æ Integration

Zero Accident Award

Company’s CSR

English Debate

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Industrial Relation Forum

Positive Impact of Conducive IR

Capability to Attract & Retain the “Right People”

Capability to control Turn Over

Improve Quality of Leaders

Encourage Creativity & Innovation

Improving degree of Employee Satisfaction

Professionalism Building Æ Trust & Integrity

Continues Skills & Competency Development

Optimum productivity output (speed & quality) Æ

Pay For Performance / Pay For Result

Increase degree of customer satisfaction

Secure company’s growth & sustainability

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Industrial Relation Forum – Kuta - Bali, 27 – 29 November 2008

Industrial Relation Chain

Company

Customer Satisfaction Employee

Satisfaction

Right People Competency & Skill Development

Coaching & Counseling Fair Treatment, Open & Intense Communication

The Right People For

The Right Job

Proper Orientation & Job Desc, Personal Profiling ÆPMD

Effective Leadership

Reward & Recognition

Customer Loyalty

Attractive & Competitive Fringe & Benefits

Effective

Productivity

Work output

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T ha nk Y ou

Q & A / Discussion

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