Edhie Sarwono CHAPTER 1 – INTRODUCTION
Covid-19 pandemic disrupt many aspects of our daily life in short term, medium and also long term basis. Our behaviors must be adapted with health mandatory requirements as a new normal for several years.
Macro and micro economics performance became very challenging because of mandatory implementation of health pandemic protocol standards such as PSBB (Pembatasan Sosial Berskala Besar), PSBB Transition, etc.
Private sector organization also having a big pressure situation and have to operate in a good balancing operational system between Covid-19 health prevention standard and operational excellent to achieve the organization target.
Physical distancing, minimum number of employees that required to be presence at the office-enforcing Work from Home, Schooling from Home, preventive health standard to ensure a free zone Covid-19 area in every customer office - public facilities – and also internal organization, and others health protocol requirements create a lot of shocking situation to society and also big impact to the employee behavior within the organization.
Now, all of us realize to face and survive from the pandemic Covid-19, we have to adapt with the new normal daily life requirements.
Based on the spirit of enrichment academic references this research studied the impact of employee behavior during pandemic Covid-19 to the organization effectiveness.
1.1 Background
1.1.1 General Information
The Company as an operational holding company has operation spread out Indonesia, consist with 5 business lines, 68 subsidiary company and around 120 customers support
Edhie Sarwono point, such as; branch, site and project, with population of direct employee around 34.000 people (see figure 1).
Figure 1.Company operation – spread out of Indonesia territory
The company has the biggest market share in Indonesia (market leader) for heavy equipment businesses also one of the subsidiary companies is a market leader in mining services. (PT United Tractors Tbk, 2019 Annual report).
Regarding the complexity and the coverage of area operation, several tools and procedure implemented simultaneously to orchestra company operation such as communication, tele-coordination, human capital management system, automatic/digital technology, business partner management, quality management system and many others management system including Strategic Direction and Strategic Implementation (SDSI) that consist of 1 year and 3 years company strategic and programme.
And, Quality management systems are one of the most effective tools for companies to increase competitiveness (Priede, 2012).
1.1.2 Human Capital Role and Organization
Human Capital Organization is one of the very important strategic function within the company to ensure all of the employee (at operational holding company and subsidiary)
Edhie Sarwono are ready to well perform at any condition based on characters and competencies requirements (PT United Tractors Tbk, 2019 Annual report).
There are five roles of human capital organization describe as follows:
1. Operational Partner
2. Organization Developer (and Cost Control) 3. Talent Transformer
4. Agent of Change 5. Administration Expert
Figure 2.The Role of Human Capital
And the organization structure to implement the five human capital roles describe at figure 3.
The organization responsible for all Human Capital Programme at Corporate level, Operational Holding Operation and also as a conductor of all subsidiary company.
Operation Partner Agent of Change
Administrative Expert Talent Transformer
Organization Developer + Cost Control
Org Structure:
Company Culture Management
Target:
Internalization Corporate Culture align with
business
Program:
Assessment Center as Parter of Resilient Org Organization:
Account Management
Target:
Actively involve in Company’s Strategic Mgt.
Process
Program:
Human Capital Business Partner
Program:
Redesign Organization Organization Productivity and Cost Control (OPCC)
Org Structure:
Talent Management
Corporate University
Target:
Accelerate the Star and Managing people competence and character as required by the business
Org Structure:
Reward & System Management
Target:
Setting HR Policy Internal Fairness External Competitiveness Program:
• SAP System
• Reward & Benefit System
• Employee Self service
• OPEX Optimalization Program Org Structure:
Organizational Development
Target:
Organization Fit with Business Strategy
Program:
• Young Leader Talent Transformation Program (YLTTP)
• Assessment Center
• Certification
• Long Distance Learning
Edhie Sarwono Figure 3.Human Capital Organization
The Organization consist of 3 Department:
1. Corporate HC Organization, Productivity and Cost Control Department.
2. UT Corporate University.
3. Reward, Performance and Industrial Relation Management Department.
And 3 important Function, are:
1. Operational Excellence: Responsible for running “Plan-Do-Check-Action”
implementation as review mechanism and also developing and maintain the Human Capital Management System.
2. Executive Management: Responsible for managing all Leaders within group company.
3. Business Partner: Responsible for being the best human capital operational partner for every General Manager/ Division Head.
1.1.3 Human Capital Management System
The Complexity of Human Capital operation running through a specific Human Capital management system that developed from combination of several management system
CORPORATE HUMAN CAPITAL MANAGEMENT & UT CORPORATE UNIVERSITY
SECRETARY
REWARD, PERFORMANCE,
& INDUSTRIAL RELATION MANAGEMENT DEPARTMENT CORP HC,ORGANIZATION
PRODUCTIVITY, & COST CONTROL DEPARTMENT
BUSINESS PARTNER EXECUTIVE
MANAGEMENT OPERATION EXCELLENCE
UT CORPORATE UNIVERSITY CORPORATE HUMAN CAPITAL MANAGEMENT &
UT CORPORATE UNIVERSITY ORGANIZATION CHART
ASSOCIATE A B C D E F G H
No. Main Activity A B C D PIC E F G H
1 Productivity Management L M M M
2 Organization Development Project M L M
3 Organization Development Operation M M L M M
4 Cost Control Project M L
5 Cost Control Monitoring M L M
6 Corporate HC Policy & Advisory (HC
Clinic, Development) L M M M
7 Corporate HC Monitoring & Operation
Excellence (KIPKA, Coordination) M M L
8 Partner Management L M M
ASSOCIATE ASSOCIATE
Edhie Sarwono including Total Quality Management, ISO 9001, ISO 14001, SMK3, OSHAS, etc.
Refer to ISO 9000:2015, the definition of A Management System is:
A set of policies, processes and procedures used by an organization to ensure that it can fulfill the tasks required to achieve its objectives (ISO 9005:2015 et al).
And refer to Ahmad, MF, et all, the benefits of Total Quality management are improved quality, employee participation, team work, working relationship, customer satisfaction, employee satisfaction, productivity, communication and market share (cited, Ahmad, MF, et all). Also, explained that the management system is strongly create positive impact to organization performance.
Based on that understanding and field evidence show that “Internal Organization Human Capital management system” already developed and consist of Policy, Procedure, Work Instruction and others supporting operational document (ie: Memo, Surat Keputusan, Perjanjian Kerja Bersama, etc), is an important element for the whole organization to maintain and achieve the overall performance.
The Organization Human Capital Management System developed based on the Human Capital Business Process (see figure 4, Macro Human Capital Business Process) that cascade to be several levels and for example describe at figure 5, First Level of Human Capital Business Process).
Figure 4.Macro Human Capital Business Process
Edhie Sarwono Macro Business Process should be cascade until low level and very detail to become a good foundation of procedures, working instruction or other operational document.
Figure 5.First Level of Human Capital Business Process
The effectiveness of the Management system implementation depends on how the organization running evaluation system called the “Plan-Do-Check-Action cycles”
simultaneously and consistently (cited, ISO 9001, ISO 14.001, OSHAS and also SMK3/Indonesia Safety standard for management system), because “the PDCA cycle is defined as a sequence of activities that are cyclically traversed to improve activities and continuous application and that allows a real use of the processes generated in the company, aiming at cost reduction and productivity increase. Plan (planning), Do (check), Check (check) and Act (act) is related to the philosophy of continuous improvement” (Oliveira Avinte et al., 2019). And to measure it, the organization has to define the key performance indicator that stated at Strategic Direction & Strategic Implementation (SDSI).
The SDSI document consist of one year policy; medium term direction; strategic program and activities; and also quantitative + qualitative target as Key Performance Indicator.
Edhie Sarwono All monitoring processes and review mechanism were clearly defined in Management System Procedures with various parameter, for example: weekly or be weekly, monthly or yearly, for Department level or divisional level.
A Special dashboard developed for monitored every progress from monitoring and or evaluation activities of Key Performance Indicator, see an example at figure 6.
Figure 6. Human Capital Dashboard
The dashboard of human capital Key Performance Indicator consist of very important parameter of the organization in term of efficiency and effectiveness that must be monitored and reviewed frequently.
Understanding of Efficiency is The Comparison of what is actually produced or performed with what can be achieved with the same consumption of resources (money time, labour, etc.). And Effective is the degree to which objectives are achieved and the extent to which targeted problems are solved. So, effectiveness is determined without reference to cost, and whereas efficiency means “Doing the things right” and effectiveness means “Doing the right things”.
Edhie Sarwono The Productivity is one of the very important parameters among the Key Performance Indicators, as explained, that was very strong related to cost, quality, customer satisfaction, performance, etc (Harris, 2006)(Bloom et al., 2015).
Another important parameter is employee engagement index (see figure 7). This parameter reflects the bonding and happiness of employee during involve with organization. And degree of Employee involvement is one of parameter of Organization Effectiveness (Harris, 2006).
Figure 7.Employee Engagement Survey 2019 result
Source: Internal Organization Data of Human Capital Performance Evaluation Describe at figure 7 that during normal condition, employee have a very good bonding, comfort and contributions during executing the programs/activities. And most of the activities running as a plan with only small deviation in term of time.
1.1.4 Standard Parameters for Human Capital Management System Activities Using “PDCA” approach for implementation of Human Capital Management system, the organization define several parameters as standard processes, for example: type of activities, frequency and lead time of the process as describe at Table 1. Standard Parameters for Human Capital Management System.
92,30%
97,25%
7,66%0,04% 2,59%0,16%
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
70,00%
80,00%
90,00%
100,00%
EES UT 2016 EES UT 2019
EEI UT 2016 vs 2019
Engaged Not Engaged Actively Disengaged
Target
= 85%
Strongly Engaged Employee =
9,87%
Edhie Sarwono Table 1.Standard Parameters for Human Capital Management System
Phase Activities WFO (Normal)
Lead Time Frequency Plan 1. Operational Policy Development
2. Strategic Program Development 3. Operational Policy & Strategic
Program Deployment
3–4 Days 1–2 Weeks 2–3 Days
3-6/ Year 3-6/ Year 3-6/ Year
Do 1. Division Discussion 2. Department Discussion 3. Section/team Discussion 4. Internal Team Coordination 5. Cross-function Coordination
2 Hours 3 Hours 2–4 Hours 1 Hour 1 Hour
1/ Week 1/ Week 2–3/ Week 2 – 3/ Week 1/ Week Check 1. Divisional Monitoring Process
2. Departmental Review 3. Divisional Review
1-2 Hour 1 Hour 2 Hours
1 – 2 / Week Once a Week Once a Month Action 1. Lead Time of Finishing Problem
Solving
2. Lead Time from Review to Final Result of Core Action
1–3 Days
1–5 Days
N/A
NA
That parameter was very useful for every leader and employee as guidance and standardized process.
1.1.5 “Expect the Unexpected”: Pandemic Covid-19.
That wisdom is very meaningful and useful for every organization, who by nature always to be exist, sustain and survive at any condition. Having that mind set, organization always be alert with business situation and always anticipate for having a step ahead from the competitor.
The company has the system called Business Continuity Plan System for facing
Edhie Sarwono unpredicted and or emergency situation, such as big earthquake, big flooding, Tsunami, fire, etc.
At that situation some operational procedures will implement comprehensively to ensure all the important component of the company organization still operate to support the business operation, while the other team should take care the employee and family that impacted that condition.
All the company operation system will operate with less bureaucracy, high speed of decision making, limited resources, etc.
Pandemic Covid-19 suddenly happened, company and others organization around the world were shocking to deal with, because all of us never been dealt with that situation and impact a lot to humanity and businesses.
Pandemics create very unique situation and massive impact to the (all) stakeholder of the company, and not only domestic and regional but international also, not only public health issue but economic and businesses sector, too.
Government enforced special health protocol such as: Social/Physical Distancing, promote cleanness, Lock Down or Pembatasan Sosial Berskala Besar (PSBB) full mode and transition mode, implementing Work from Home (WFH), Schooling from Home, limitation of people mobility, etc.
The readiness organization and also employee for implement Work from Home tested by Covid-19, because Work from Home or Teleworking require the proper technology to support communication, coordination and other activity (Brumm, 2016) and The Other requirements are:
1. Technical factors such as: roaster management, time management, etc that are able to handle by the leader who responsible for managing the job.
2. Non-technical factors such as: culture, mentality and rapid change of competitor strategy.
Edhie Sarwono Every person at any level organization had the culture shock because the rapid changing of situation that enforce by internal organization and also from external parties (by government, customer, etc).
Disruption is happening everywhere and the company (management and all employee) should adapt quickly and move at the same time for ensuring the business shall continue and running well equal with implementation of health protocol.
According to complexity of business structure and organization, it is not simple and easy for Human Capital Organization who responsible for managing people/employee to adapt, transform and act at the same time.
Figure 8. Coal Trends in 2014-2020
Source: NYMEX (New York Merchantile Exchange); LME (London Metal Exchange); MPOB; SICOMM (Singapore Commodity Exchange); SHFE (Shanghai
Future Exchange) – as of October 2020
Refer to the international market that impacted by Covid-19, all the commodity prices are declining as shown on the table above, this phenomenon directly impacting the revenue and recurring profit of the organization.
200 4060 10080 120140
1/3/2014 4/3/2014 7/3/2014 10/3/2014 1/3/2015 4/3/2015 7/3/2015 10/3/2015 1/3/2016 4/3/2016 7/3/2016 10/3/2016 1/3/2017 4/3/2017 7/3/2017 10/3/2017 1/3/2018 4/3/2018 7/3/2018 10/3/2018 1/3/2019 4/3/2019 7/3/2019 10/3/2019 1/3/2020 4/3/2020 7/3/2020 10/3/2020
Thermal Coal Price(USD/ton) GCNI: Global Coal Newcastle Index
ICI: Indonesian Coal Index
GCNI 6322 GAR ICI 2 5800 GAR ICI 4 4200 GAR
Edhie Sarwono Many critical and urgent decision should be made very fast, balancing with developing some official regulation policy, procedure and field working instruction related with health protocol. As a conductor for managing health preventive program against Covid- 19, Human Capital Organization (HCO) also ensure that all the employee within organization, from Head Office, Branch, Site Operation and also subsidiary company (group company) had to have the same understanding, spirit and action. The big challenge was ensuring the Human Capital organization effectiveness to implement their role and Strategic Direction and Strategic Implementation properly.
1.2 Research Problems
Management concern Work from Home will affect organizational effectiveness. There are several factors strengthening this concerns, such as: having children at home might disrupt the employee; no home internet connection to support telework system; no mobile devices to support employee on their work; also superior and subordinate have different perceptions during execute their work.
1.3 Research Objectives
To ensure there is correlation between Work from Home and Organizational Effectiveness for facing The New Normal considering several factors: having children at home; home internet connection; mobile device; also superior and subordinate perceptions.
1.4 Significant of Study
To support management, determine the proper policy of working method during Covid- 19 Pandemic and facing The New Normal that maintain Organizational Effectiveness based on several factors: having children at home; home internet connection; mobile device; also superior and subordinate perceptions.
1.5 Research Question
1. Does Work from Home correlate with Organizational Effectiveness?
Edhie Sarwono 2. Are Employee condition (Having Children at Home, Home Internet Connection,
Mobile Device) correlated with Organizational Effectiveness?
3. Is there any difference perception between Superior and Subordinate toward implementation Work from Home method?
4. Is there any difference in perception between Superior and Subordinate toward Organization Effectiveness?
1.6 Research Limitations
This research will focus on finding the correlation between Work from Home and Organizational Effectiveness in Human Capital Organization during Covid-19 Pandemic based on several factors: having children at home; home internet connection;
mobile device; also superior and subordinate perceptions.
1.7 Hypothesis
1. Work from Home correlated with Organizational Effectiveness.
2. Employee condition (Having Children at Home, Home Internet Connection, Mobile Device) correlated with Organizational Effectiveness.
3. There is different in perception between Superior and Subordinate toward implementation Work from Home method.
4. There is different in perception between Superior and Subordinate toward Organizational Effectiveness.
