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CHAPTER 2 LITERATURE STUDY 2.1 Employee satisfaction Employee satisfaction is an employee’s cognitive and affective evaluation of his or her job in overall of his/ her job, in specific the components that support employee satisfaction are pay, promotions, work tasks, working system, supervisors, etc. the more satisfied an employee the he/ she could give return to the company the commitment, attendance, and performance. 4 One of theory about employee’s satisfaction is equity theory of Eliott Jaques and J. Stacey Adams (1978: 406). Equity theory contents that pay satisfaction exist when an employees job inputs (such as education, experience, effort, seniority and training) and outputs (such as pay, promotion, and intrinsic rewards) are equivalent to the job inputs and outputs of the other employees the employees considers comparable. If there is inequity, the employee will change his behavior (for example, decreased performance), if the behavior cannot be changes, he changes attitudes (reduced satisfaction) and finally he withdraws (absenteeism, turnover). 5 2. 2 Workforce Planning 2.2.1 Workforce Planning Concept According to Andrew E. Sikula, workforce planning is “Human resource of manpower planning has been defined as the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plans of the organizations”. 6 According to the Human capital management – Department of Energy, (2005) workforce planning is a planning process and analytical capability to measure and compare the current workforce (supply or faces) with the future 4 306chapter9, na 5 William F. Glueck, 1978: 406 6 Andrew E. Sikula, 1981: 145 9

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Page 1: CHAPTER 2 LITERATURE STUDY - Institut Teknologi … · CHAPTER 2 LITERATURE STUDY ... 5 William F. Glueck, 1978: 406 ... Audit is the evaluation, analysis and comparison (with standard)

CHAPTER 2

LITERATURE STUDY

2.1 Employee satisfaction

Employee satisfaction is an employee’s cognitive and affective evaluation of

his or her job in overall of his/ her job, in specific the components that

support employee satisfaction are pay, promotions, work tasks, working

system, supervisors, etc. the more satisfied an employee the he/ she could

give return to the company the commitment, attendance, and performance.4

One of theory about employee’s satisfaction is equity theory of Eliott Jaques

and J. Stacey Adams (1978: 406). Equity theory contents that pay

satisfaction exist when an employees job inputs (such as education,

experience, effort, seniority and training) and outputs (such as pay,

promotion, and intrinsic rewards) are equivalent to the job inputs and outputs

of the other employees the employees considers comparable. If there is

inequity, the employee will change his behavior (for example, decreased

performance), if the behavior cannot be changes, he changes attitudes

(reduced satisfaction) and finally he withdraws (absenteeism, turnover). 5

2. 2 Workforce Planning

2.2.1 Workforce Planning Concept

According to Andrew E. Sikula, workforce planning is “Human resource of

manpower planning has been defined as the process of determining

manpower requirements and the means for meeting those requirements in

order to carry out the integrated plans of the organizations”.6

According to the Human capital management – Department of Energy,

(2005) workforce planning is a planning process and analytical capability to

measure and compare the current workforce (supply or faces) with the future

4 306chapter9, na 5 William F. Glueck, 1978: 406 6 Andrew E. Sikula, 1981: 145

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workforce (demand or spaces). This planning process provides insight into

the best policies and initiatives needed to improve the overall human

resources system. It has a critical role in developing personnel

requirements/data elements, budgeting processes and all recurring

recruitment needs, training requirements and planning activities.

To conclude, workforce planning concept basically is a process with

analytical capability to decide the necessitate of workforce based on current

condition, forecasting, implementation that will integrate with organization

planning to create an employee concept (number, system) for the

effectiveness and efficiency, for both, company and employee itself.

2.2.2 Component of Workforce Planning

In the workforce planning, there are several components that should be

considerate. The components are objectives, organization planning, and

forecasting.7

Objectives

The workforce planning should have an objectives based on individual,

organizational and national interest.

Organization planning

Organization planning is the activities for the purposes of organization

development. The important and influencing aspects in organization

planning are business forecasting, business expansion or development,

restructuring, government regulation, the production and human capital.

Personnel forecasting

Before implement the personnel forecasting, company should conduct

the human resource audit. Audit is the evaluation, analysis and

comparison (with standard). It includes the quality of work, the skills,

employee turnover, and internal management.

After, conduct the audit, company could conduct the forecasting.

Basically, it similar between audit and forecasting, the different is audit

7 Anwar. P, 2003: 7

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is analyzing this current condition and forecasting should adapt with the

future.

According to Human capital management – Department of Energy (2005),

before beginning the workforce planning process, firm needs to have grasped

on the main drivers for workforce planning and any influence of those

drivers on the workforce planning exercise being done. These drivers set the

context for everything that will be looking at throughout this process. The

four main drivers for workforce planning are:

• Organization Direction: includes Strategic Plan, Budget Forecasts,

and new technology, working practices, organization culture and

what is rewarded in the organizational or individual reward

systems.

• Internal Labor: includes a determination of workforce profile by

multi dimensions (gender, age, grade, occupations length of

service, etc.); identification of any internal management issues like

retention, separation, promotion patterns, etc; identify potential

area of workforce that are vulnerable to current or future skills gaps

imbalances and look at geographical issues that could be the cause

of issues identified. All of these factors have implications for

recruitment and retention of the workforce.

• External Labor: Demographic change in the potential workforce

that affecting both the demand for services and workforce supply to

fill the vacancies.

• Business Change: Technological changes are leading to changes in

service/information delivery, ways of working and the skills

needed in the workforce. Consequently, this will change the

competencies for positions and how the company needs to recruit,

hire and engage the current and future workforce.

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2.2.3 Phase of Workforce Planning

According to Human capital management – Department of Energy (2005),

there are five phase in workforce planning.

Phase 1 – Analyzing

The effectiveness of planning depends on the detail, accuracy and reliability

of the information sources. It is important to identify all factors that could

influence future demand for outputs/service as well as competencies of the

internal and external supply of labor. Information gathered during the

analyzing phase must be reliable and accurate as this will be the basis for the

forecasting phase.

To begin the analyzing phase, there are four information sources that will

provide key workforce information needs. They include: organization

direction and environmental factors (demand analysis); internal and external

labor (supply analysis). It is simply analyzing the supply (current workforce

profile) against the demand (future workforce profile).

Suggested points for Organization Direction information:

Demand Analysis

• Strategic Plan

• Internal or External reports that could affect business outcomes

• Budget Estimates for Short and Long terms

• Plans for new technology

• Employee survey information

• Etc

Suggested points for Environmental Factors Information:

Demand Analysis

• Demographic changes to the client base

• Analysis of the influence of technology

• Changes in economic forecast and how that will effect the organization

• Analysis of current and future levels of accountability and compliance

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Suggested points for Internal and External Labor Profile Information:

Supply Analysis Internal

• Age and Gender distributions

• Length of time necessary to become proficient in mission critical

occupations

• Retirement rates overall but more in mission critical occupations

• Competencies of Mission Critical occupations

• Location of Workforce

• Diversity Characteristics

• Length of Service

• Resignation rates

• Internal Career Paths

• External Contracts for services

Supply analysis External

• Labor trends in mission critical occupations

• Internal vs. external acceptance rates

Phase 2 – Forecasting

Forecasting is considering the future needs of an organization. There are 4

steps in the Forecasting phase; identifying key workforce assumptions,

validating assumptions, utilizing assumptions for scenario building and

performing gap analysis. The first step is to identify key workforce

assumptions/issues for the elements based on the data/information collected.

The second step is to validate these assumptions by utilizing questionnaires

or interviews to various leaders in your organization. The feedback provided

will ensure that gathered assumptions are valid and based on the best data

available.

The third step is utilizing these assumptions in scenario building. Scenarios

are a way to develop alternative futures based on different combinations of

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assumptions, facts and trends that will help to you meet the forecasting

goals. Scenarios are generally a descriptive statement presenting a particular

picture of the future that includes comments on the probability of certain

events occurring. Moreover, scenarios are usually accompanied by

qualitative or quantitative information. The following scenarios are the

assumptions of best case scenario, worst case scenario.

In this research, it will be correlated with the number of vehicle transactions.

It can be assume in basic day, holiday, or long weekend that will come out

with the number to classify the case scenario. The objective is to meet the

efficiency for PT. Jasa Marga itself but still consistent to the service of

highway gate.

The final phase of forecasting is performing gap analysis. It compares the

previous scenario with the current (preferred) scenario. Demand is based on

the preferred scenario and competencies or skills need to meet demand

requirements. The Gap Analysis should indicate the skills gap, surplus, any

recruitment issues, and retention issues to meet the demand, etc.

Phase 3 – Analyzing

This stage will ensure the element to recruit, develop and retain the critical

staff needed for a successful workforce plan. A few factors should be

considered when deciding upon strategies to address a workforce gap. There

are political issues, economic issues, social issues, technological change,

legislation and environment issues.

In this project, it will be focus on the consideration of technological change.

The technological change aspects are innovation (new equipment, new

techniques, new methodology, etc), communications, and new ways of

working.

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Phase 4 is implementing, and phase 5 is evaluation. In this research, it not

discuss until that phase, so in this theoretical foundations just stated until

phase 3. 8

Note: the blue words are the points that will be consider analyzing in this

research.

2.3 Work system

2.3.1 Work schedule

Working system or schedule in a company could affect the employee needs

and the supply of employees. For example, in PT. Jasa Marga, currently use

eight hours of work, overall it needs 42 number of employee, but when it

change in six hours it could be needs 48 number of people or it could be

decrease.

In Indonesia, government limits the working hour. The full time work week

has not change much since 1940: on average, it is 40 hours.9

2.3.2 Shift Work

When shift work is used, there are two approaches to scheduling it: to assign

people to shifts or to rotate them through shifts. Most employees prefer not

to rotate their work schedule, but if rotation is used, they would rather have

changes every several day rather than at week-long or month long intervals.

Shift hours will affect employee adversely. It interferes with time-oriented

bodily functions, such as digestion, sleeping, and elimination. Rotating shift

work particularly affects personal and family lives and social participation,

adversely. 10

8 Guide to workforce planning – human capital at the department of energy, 2005 9 William F. Glueck, 1978: 123 10 William F. Glueck, 1978: 124

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2.3.3 Flexible hours (flexi time)

Flextime is an arrangement of working hours which provides for all workers

to be present for a specified period in the core time but the rest of the

required hours may be completed at their discretion within a specified

period. 11

Douglas Fleuter describes four typical approaches to flextime:

1. Daily flexible with fixed lunch period, are time and two flexible periods.

In this plan, the person must work the full hours (usually eight) each day.

2. Daily flexible with flexible lunch period. The same as in no.1, except the

enterprise is more flexible regarding lunch periods

3. Weekly flexible. Employees must works core times each day, but as long

as they get in their weekly total hours, it does not matter if they work

more hours on any one day than other.

4. Monthly flexible. It works like no.3, except that each employee’s hours

are checked for completeness monthly instead of weekly. 12

11 William F. Glueck, 1978: 128 12 William F. Glueck, 1978: 128

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