Human Resource Management

Importance of Human Resources Management

Human Resource Management (HRM) is the process of recruiting, hiring, inducting, and managing employees. Human resources as a department in an organization handle all kinds of aspects of employees and have various functions to it.

People who are in the Human Resources Management like any other department in an organization do experience challenges especially in a recession time like this. They certainly have not imagined the challenges that COVID-19 has struck on them. This uncertainty has crumbled the economy, most employees are in stressful situations, and people in the HR department are trying their best to keep everything intact.

The sudden shift in work culture has for sure bring new challenges for the HR department and their priority for the people in HR are keeping the employees engaged, provide the right communication channels, tools for working from home, and much more things.

Omnibus Law

Omnibus Law itself is a law that covers a number of a diverse or unrelated topic that is meant to simplify affected laws. “Omnibus” is a Latin word meaning “for everything”. It seeks to strengthen the economy by increasing competitiveness, creating, jobs, and making it easier to do business in Indonesia.

As President Jokowi said “Our dream is that by 2045, Indonesia’s gross domestic product will have reached US$7 trillion. Indonesia will have become one of the top five world economies with a poverty rate nearing zero percent. That is what we must head toward.” The government notices that to fulfill the vision of being the top 5 world economies in the world it must address the problem of over-regulation in Indonesia. The law will loosen up restrictions in 11 critical areas, including labor law, capital investment, business licensing, corporate tax, and land acquisition. Sure enough, all these rules will make Indonesia a far more attractive place for foreign businesses and investors.

There are some proposed changes that will perk the interest of foreign investors such as simplifying business licensing, loosening up foreign investment restrictions, easing labor laws, streamlining corporate tax regulation, and many more.

Still talking about laws Indonesia does not have a comprehensive anti-discrimination law however, it has a patchwork of laws and sector-specific regulations prohibit discrimination and encourage equality including the 1945 Constitution; The Labor Law (Law No.13 of 2003 on Labor); Law No. 21 of 1999; Law No. 80 of 1957; Law No. 4 of 1997 on Disabled People and Law No. 40 of 2008 on the Elimination of Racial and Ethnic Discrimination.

Human Resources Needs

How do we prepare an organization’s human resources needs? Firstly, the HR needs to check not only traditional methods such as interviews but social media as well, especially business-oriented sites such as LinkedIn. Avoid hiring mistakes and take the time to do a thorough screening of each applicant before hiring them. Employee training to keep employees interested and keep improving and progressing on their jobs. Retention is vital because a positive, inspiring work climate which is sincere appreciation, clear expectations, and an inspiring company vision makes employees feel they are in a winning company. It also needs policies and procedures to remove any out-dated information and ensure that it still complies with the regulations of the organization.

As we already see although the organization already established a concrete preparation for recruiting and training their employees, there are also factors that make it difficult to recruit qualified employees such as the legal restriction that complicates hiring and firing practices, finding suitable employees because it can be difficult to find the required people to fill jobs because of the teamwork that is required.

Therefore, organizations forego a six-step selection process for hiring people starting from obtaining a complete application form, conducting initial and follow up interviews, giving employment test, conducting background investigations, obtaining results from physical exams, and lastly establishing a trial period of employment.

Work Cited:

Robbins, S. P., & Coulter, M. K. (2015). Management, Global Edition. Pearson.

What foreign investors need to know about Indonesia’s proposed omnibus law. (2020, July 06).