Human Resource Management Assignment

This paper is a case study on how Human Resource Planning is applied in Royal Rainbow Tours, one of travel agency in Jakarta.. Keywords: Human Resource management, Planning, Royal Rainbo

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 fortraveling either for leisure or business purposes Seeing that a personhas traveling needs whether for leisure or business, it createsbusiness opportunity in this sector, such as transportation,

accommodation, travel agents, tour operator, food and beverageservice, etc.

Travel agent as one of the businesses involved has aconsiderable role in fulfilling a person needs for travel Travel agentprovides services in which make it easier for the person fulfill histravel needs By using its service, people do not need to waste theirtime or energy to make travel arrangement Just by picking up thephone then the travel agent will take care the rests

In Indonesia, travel agent has become partner of the societywhere it is there to assist them in making necessary travelarrangement they need In Jakarta itself the number has reachedmore than five hundreds (according to the list taken from ASITA).With the numerous presence of travel agent, it makes this businessextremely competitive Certain strategy is implemented by eachtravel agent in order to survive in the wave of competition

Human resource management is one factor that is significantlyimportant for a company to achieve its goal It is the tool whichmakes a company be more competitive and will able to producehighly qualified services and products

Royal Rainbow Tours is one of the travel agents in Indonesia Ithas been in the business for sixteen years With long its history,experience, as well as its ups and downs, there must be somethingthat 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.”

1.2 Purpose of the Study

This paper will discuss the theory of human resourcemanagement process, how the human resources managementprocess applied by Royal Rainbow tours in order to survive in theindustry

1.3 Limitation of the Study

The study will be limited on the process of Acquiring HumanResources which involve Human Resource Planning and Staffing atRoyal Rainbow Tours This is in accordance with the limitation of timeand knowledge the writer has and focusing on the main issue of thefindings at Royal Rainbow Tours

1.4 Methodology of the Study

The study is qualitative descriptive analysis using twoinstruments: observation and interview

1.5 Goal of the Study

By analyzing the theory and the application, the gap betweenthe theory and the application can be identified and reasons can bediscussed The result of the study can generally be used as an input

for those who are interested in managing a travel agent andspecifically be an input for Royal Rainbow Tours to optimize theirhuman resources process.

2.0 THEORITICAL FRAMEWORK

2.1 Definition of Travel Agent

In tourism industry, there are several terminologies commonlyused such as travel bureau, tour operator and travel agent or travelservice The three terminologies seem to have significant differences.However, basically they all are the same in practice although from theactivities involved are different

The terminology for travel bureau which is commonly used inIndonesia 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 andorganizing services).

From the definition it can inferred that travel bureau or touroperator is a business which serves tourists or traveler in planning,arranging, and organizing their trip starting from preparing thenecessary documents, amenities, and facilities needed during the trip,either partly or entirely

The activities of travel bureau, according to the Ministry ofTourism, 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 facilitiesd) 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 inorganizations that facilitates the most effective use of people (theemployees) to achieve organizational and individual goals Thefunctions can be group into the following categories:

2.2.1 HR Planning

Human resource planning involves determining future humanresource needs and job requirement HR plans are derived from theorganization goals, the organization’s strategy, conditions faced bythe firm in the external environment and the nature of its currentemployee’s knowledge, skills, and abilities With HR planning, the firmensures that sufficient numbers of properly trained staff are available

at all times to carry out the firm’s operations efficiently andsufficiently However, HR planning must include the following toensure 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 astrategic plan to adapt with the environmental circumstances Yet,

currently changing environment requires the ability of being globalscanner in order to say competitive.

Forecasting demand for employee requires a strong sense ofthe future conditions although quantitative tools are available in themarket to measure the demand It is quite difficult to do if related tothe question of how many employee the company needs within 2years for example However, there are approaches helpful for HRpractitioners to cope with the unstable condition The approaches are:expert estimates, trend projections, statistical modeling, and unitdemand forecasting

Analyzing the current supply of employees does not merelymean counting the number of the employees available Yet, it is such

a complex inventory of human resources skills in terms of careerplanning, management development

The last stage of HR planning is the action taken to identify anygap existing among those aspects—situation analysis, forecastingdemand, analyzing supply—and overcome both in shortage andsurplus condition of workforce

Recruitment involves obtaining a large number of applicants,thereby giving human resources professionals and managers morechoices 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 theorganization (external)

1 Internal sources can be tapped through the use of job postingand bidding, and seeking recommendations from presentemployees regarding friends who might fill vacancies

2 External sources include media advertisement, the internet,employment agencies, and special events recruiting such as jobfair, and referrals from schools

Selection process is employed to hire employees who are mostlikely to meet the organization’s standards of performance and whowill be satisfied and developed on the job The typical selectionprocess can include up to five steps:

1 preliminary screening with an application blank and a briefinterview

2 Employment interviews

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 withthe new surrounding of the organization that he or she enters in Thefocus of orientation is to socialize with to the rules, regulations, andgoals of the organization, department, and work unit

Training and development activities teach employees new skillsand refine their existing skills Training is the organization’s efforts toincrease the capabilities of individuals to achieve organizationalobjectives The goal of training and development is to havecompetent, adapted employees who possess up-to-date skills,knowledge, and abilities to perform their current jobs successfully aswell as to prepare them for future job changes

2.2.4 Compensation

Compensation is the human resource management functionthat deals with every type of reward that individuals receive inexchange 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 ofrewards that is equitable to the employer and employee alike

2.2.5 Performance Management

Performance management is the process of communicating theorganization’s performance expectations to employees, assessing theperformance of employees’ work quality and outcomes as well asassessing employees’ future work potential The organization

evaluates their employees for several reasons This includesdetermining pay raises, giving feedback, and assessing trainingneeds Without evaluations, employees will not know how they areperforming based on company expectations or where they can makeimprovement

2.2.6 Employee Relations

A labor relation is the formal structure that governs theinteraction between an organization’s management and its unionizedemployees, for some managers it means reducing hostilities oremployee dissatisfaction For others they seek to ensure fair andequitable 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 firstlocated on JL Cikini Raya No.88 Central Jakarta and named as PT.Griya Dharma Wisata Since the name of PT Griya Dharma Wisata isnot very easy to remember, the company uses Royal Rainbow Tours

as its company name In the beginning, the company only had fourstaffs

In 1990, it received Operational Approval Letter fromDirectorate General of Tourism no 079/IU.BPW/KW.BSP/1990 On thefirst year of its establishment, the company was focusing on its in-

bound tour program in which it covers Java-Bali Tour program Andthe target market of the company was international tourist anddomestic tourist.

In 1992, the company invested on Travel Bus In the same yearthe company had 22 employees The company continuously focusing

on its in-bound tour program and airlines ticket sales was just asupplement

In 1998, the national economics and political situation wasunstable and it had a great impact on the company The companyhad to make necessary adjustment with the not very conduciveexternal 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 officeand the other one is the branch office

economics return from tour program sales is higher than air transportticket sales However, the company start focusing on its air transportsales as well as the airlines industry is booming in 2002

Royal Rainbow Tours Organizational Structure from

Manager ofTransport Department

Manager of Finance and

Accounting Department

1 Ticketing staff

2 Tour staff

10 Drivers

5 Driver

Co-1 Cashier

Shareholder

Director

Tour Department

(Head Office)

Tour Department (Branch)

1 Ticketing/Cashier

Staff

1 Ticketing/ Cashier Staff

3 Drivers

1) Director

To oversee, direct all aspects of Royal Rainbow Tours operationand receive reports from department manager on the on-goingactivities of the company

2) Manager of Finance and Accounting

To make strategic financial plan and budgeting, record out flowand in flow cash, control all form of collection in terms offinance and banking, and write financial report to the director.3) Cashier

To receive payment from sales and make invoices, distributesalaries to all staffs, and report to Manager of Finance andAccounting

4) Manager of Tour Department

To plan, create and organize tour package, supervise ticketingstaffs work, assist ticketing staffs when needed, and writereports to the director

5) Ticketing Staff

To make reservation whether by phone or face to face, makebookings of airlines seats, provide sufficient information onflight and airlines seats prices

6) Tour Staff