Industrial System Design

INDUSTRIAL SYSTEM DESIGN

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MODULE 4ORGANIZATION AND RESOURCE PLANNING

On the 4th module will explain about organization and resource planning on Andalan, Inc. consist of organizational structure planning, job analysis, resource planning in a year and compensation scheme planning to resource

4.1Organizational StructureThis sub module will explain about the organizational structure in Andalan, Inc. The organizational structure of a company is designed based on its Visions, Missions, and Strategies. The organizational structure of Andalan, Inc. defines the structure of human resources needed to run the company effectively with the available resource in order to achieve the Visions and Missions of the company. The companys organizational structure is designed based on the needs of the company in the first year where the company stands as a newly built company that is still adapting in the market and will later on need reconciliation. As the aims of most companies, the utilization of human resource inAndalan,Inc. relies on the optimization of resources with spending the least resource possible in order to minimize the cost.

4.1.1Organizational Structure Planning According to Vision-Mission & Operational NeedAny operating organization should have its own structure in order to operate efficiently. For an organization, the organizational structure is a hierarchy of people and its functions. The organizational structure of an organization tells the character of an organization and the values it believes in.There are several steps to construct the organization structure as follow:1. Identify the condition of business.2. Make the ideal organizational structure that fit with the business characteristics for several years ahead.3. Determine the growth of organizational structure by choosing departments needed in first year and so on, in ideal organizational structure.4. Give reasons of organizational structure growth choosing.In Modul 1 already mentioned about vision and mission of Andalan Company. Recall from Modul 1, here is the vision and mission:Vision:To be an excellent domestic company in air purifier production in all of industrial levelMission:1. We committed to help people increase the air quality especially in public area.2. We committed to increase customers satisfaction by continue improve the product quality based on customer needs.3. We committed to become partner of government especially in Green Product.4. We promise not to imitate the product competitor.Based on EFE Matrix result, Andalan position is in cell 2: support a turnaround oriented strategy, so the suitable strategy is WO strategy. WO strategies overcome weaknesses to pursue opportunities. So company must match internal weaknesses with external opportunities and list the resulting Weaknesses-Opportunities strategies. WO strategies also called diversification strategy that attempt to minimize the weakness to maximize the opportunities by utilize other strength that available. There are several strategies that can be implemented inside the company based on WO Strategy such as:a. Increase service level of the product by giving long warranty to catch the high demand of market. This strategy is overcoming weakness of company that the product didn't have customer loyalty yet by using opportunity the demand of green product is increasing in the market.b. Acquire market competitor by using green building campaign as momentum. This strategy is overcoming weakness of company that didn't have subsidiary yet by using opportunity that the green building campaign sounding more intensive now.c. Giving special price for public facilities as branding media. This strategy is overcoming weakness of company that bad in advertisement or branding by using opportunity that the public facilities need more air purifier d. Joint venture with another company to developing green technology. This strategy is overcoming weakness of company that low cooperative with other company by using opportunity that green technology is continuous developing.e. Partnering with government to open new market. This strategy is overcoming weakness of company that low number distributor especially in the area that far from city by using opportunity that many institution that can be partnering with company (e.g government)f. Improve penetration the green air purifier market in Indonesia. This strategy is overcoming weakness of company that doesn't have specific target market by using opportunity that in Indonesia, green air purifier product is rare.All the strategies can be chosen by Andalan, Inc. to stand up in Indonesian Market.An organization structure is the manner in which subunits in organizations are inter-related and grouped An organizational structure specifies how subordinates report to their superiors. This enhances coordination in the activities of the members of the group. There are various organization structures which include line, functional, product and matrix organizational structures. A major advantage of an effective organizational structure is that it reduces conflict between employees regarding who is to carry out certain jobs in the organization. It is very important to choose the most fit organization structure, so Andalan Company can operate their business efficiently. There are also other advantages that will be achieved by choosing the right organization structure as follows: Facilitates SpecializationOrganizational structure facilitates division of work since each boss has specialized knowledge on his field of work. He has better and accurate knowledge to guide his subordinates. The supervisor's task is to ensure that his department performs its best, regardless of whether other units are performing as well. The supervisor should also help his subordinates perform to their best in that area of specialization. Control Over ResourcesOrganizational structures simplify control over resources because these resources can be rationed and allotted to the various units. These resources should be used to their most productive uses at that level. Since resources are very scarce, they should be utilized effectively by eliminating unnecessary wastage. This can only be done if an organizational structure is clearly defined and there is control of employees through an effective organizational structure. Easier CommunicationOrganizational structures clearly state who reports to whom. A subordinate cannot report directly to the manager before communicating with his immediate supervisor. This simplifies the work of executive employees so that they are not overwhelmed by the activities of the firm. Flow of information is controlled so that employees do not take advantage of insider information that may expose confidential information critical for the firm's survival. Better Employee PerformanceOrganizational structures clearly show various jobs to be performed by employees and which supervisor will manage them. The supervisor trains them out of his own experience or from the rules of the organization and helps they become better performers. Supervisors punish and reward where necessary and this helps the employees learn from their own experiences and also from their supervisors. In a way, these supervisors are role models to their subordinates.As mentioned before there are several types of organizational structure. According to the Lamar University article titled Organizational Structure on its website, types of organizational structure in management can include flat structures as well as functional, product and geographical-structured organizations.1. Flat Organizational StructureMany small companies use a flat organizational structure, where very few levels of management separate executives from analysts, secretaries and lower-level employees. Flat organizations work best when a company has less than 20 employees, especially if the company employs one or two employees per department. One advantage of using a flat organizational structure for management is that decisions can be made relatively quickly. The flat organizational lacks the typical bureaucracy of taller organizational structures--those with many levels of management.2. Functional Organizational StructureA functional organizational structure is centered on job functions, such as marketing, research and development and finance. Small companies should use a functional organization when they want to arrange their organizational structure by department. For example, a small company may have a director, two managers and two analysts in the marketing department. The director would likely report to the Chief Executive Officer (CEO) and both managers would report to the director. In addition, each manager may have an analyst reporting to them. A functional organizational structure works well when small companies are heavily project-focused. Directors can assign certain projects to managers, who can then divvy up tasks with their analysts. The department can then more effectively meet their project deadlines.3. Product Organizational StructureA product organizational structure has managers reporting to the president or head of the company by product type. Product organizational structures are primarily used by retail companies that have stores in various cities. However, stores in each city may still need a local human resources or marketing department to carry out functions locally. For example, a small department store company may have a vice president of sporting goods, housewares and general merchandise at the corporate office. One manager may report to each vice president. However, each manager may oversee the work of one or more field marketing employees who travel and handle local marketing stores in several states. These field marketing employees may work for the sporting goods manager one week in League City, Texas, then do merchandising for the housewares manager another week in the Sugarland, Texas, market.4. Geographical Organizational StructureThe Small Business Administration is responsible for defining small businesses in different industries. For example, in manufacturing, the SBA usually considers a company with 500 or fewer employees a small business. Point is, small businesses are still large enough to use a geographical organizational structure. A geographical organizational structure is when companies decentralize the functional areas. For example, unlike the product organizational structure, there may be a local marketing, finance, accounting and research development person based in each region. For example, a small consumer products food company may be large enough to place a marketing research manager and analyst in each of six different regions. This can be important because consumers in various areas have different tastes. Hence, a geographical structure will enable the company to better serve the local market.

Andalan Company will use 3 organizational structure, they are for zero phase (0 year), introduction phase and for maturity phase. In zero phase, the company doesnt produce their product yet and Andalan Company will use mixed organizational structure between flat and functional. There are several advantages that will be achieved by Andalan Company by implement this structure during 0 year as follows:Cost SavingsSince flat organizational structures feature fewer layers of management, flat organizations can incur smaller expenses on salaries. It is very important to consider the expense that will spend by Company since in zero year there will many cost occurred because of Company have to build their plant, buy machines and equipment, etc.AdaptabilityEmployees and work groups in flat organizations tend to be more adaptable in changing or unique circumstances, due to their smaller hierarchies and lack of bureaucracy.CollaborationEmployees and work groups in flat organizations tend to be more adaptable in changing or unique circumstances, due to their smaller hierarchies and lack of bureaucracy.Innovation and CreativityIdeas come from a wider range of sources in a flat organizational structure than in companies with many layers of management. By giving everyone in a company an equal voice in submitting new ideas and feedback on operational processes, products, services, business models and company policies, companies can discover new ideas that may lead to competitive success.Here is the organizational structure of Andalan Company in zero phase.

Figure 4.1 Organizational Structure of Andalan Company in 0 year

Flat organizational structures feature less layers of management. In flat organizational structures, employees are empowered and expected to take responsibility for a range of traditionally managerial decisions in their daily routines. Table 4.1 shows the job position and job description of zero phase operation.

Table 4.1 Job Position and Job Description of Zero Phase OperationJob PositionJob Description

General ManagerOversees all aspects of operations within a company.

R&DNew product research, new product development, existing product updates, quality checks, innovation.

HRDDeals with the people in the organization, helping them develop their skills and enhancing their sense of job satisfaction

MarketingMaximise profits through the development of sales strategies that match customer requirements.

FinanceManages accounting, administration, business records,transactions, bills, etc. , help a business become more profitable.

For introduction phase, still the Company will implement flat and functional organizational structures but by adding 2 departments, PPIC and Production department. Here is the organizational structure of introduction phase:

Figure 4.2 Organizational Structure of Andalan Company in Introduction Phase

Table 4.2 shows the job position and job description in introduction phase.

Table 4.2 Job Position and Job Description of Introduction Phase OperationJob PositionJob Description

General ManagerOversees all aspects of operations within a company.


HRDDeals with the people in the organization, helping them develop their skills and enhancing their sense of job satisfaction



PPICResponsible in inventory planning, materials handling and preparation of production schedule in accordance with sales forecast or market demand.

ProductionPlanning, coordination and control of manufacturing processes.

After the company gets the stable condition, then the organizational structure will be changed mixed organizational structure of fuctional and geographical organization structure, because based on the vision Andalan Company want to be an excellent domestic company in air purifier production in all of industrial level, so Andalan will build Company branches not only in Java Island but also in other potential regions in Indonesia to enlarge the market. Thats why Andalan choose to implement geographical structure because consumers in various areas have different tastes. Hence, a geographical structure will enable the company to better serve the local market. Here is the organizational structure in maturity phase:

Figure 4.3 Organizational Structure of Andalan Company in Maturity Phase

Actually it is not only for Java but for every region there will be marketing, logistics, finance and HR department. Table 4.3 shows job position and job description of maturity phase.

Table 4.3 Job Position and Job Description of Maturity Phase OperationJob PositionJob Description

PresidentFocuses on the core functions of the organization to enable it to achieve its long-term vision.


HR & LegalDeals with the people in the organization, helping them develop their skills and enhancing their sense of job satisfaction.Viewing, interpreting and deciphering legal documents.



PPICResponsible in inventory planning, materials handling and preparation of production schedule in accordance with sales forecast or market demand.

ProductionPlanning, coordination and control of manufacturing processes.

Information TechnologyMaintains information technology strategies by managing staff; researching and implementing technological strategic solutions

Vice PresidentOversees all aspects of operations within the region.

LogisticsResponsible for co-ordinating the storage, transportation and delivery of goods.

HRDeals with the people in the organization, helping them develop their skills and enhancing their sense of job satisfaction.

4.2Job AnalysisIn this sub chapter will discuss about job analysis which is must have done for internal stakeholder in company. Hence the input of this sub chapter is the organization structure and level of position that already made in previous chapter. The job analysis section can fall into job description, job specification and job qualification. Generally the output of this section is specification and detailed of the job description form each level of description. Job analysis may be viewed as the hub of virtually all human resource management activities necessary for the successful functioning of organizations (Gael, 1988a; Mirabile, 1990; Oswald, 2003; Siddique, 2004). In addition Job analysis sits at the heart of all human resource practices, making it a critically important management activity in every organization. Since At the heart of almost every human resources management program or activity is the need for accurate and thorough job information. Job analysis is thus a prerequisite activity for the effective management of human resources. Attached the steps how to analyze the job analysis. 1. Type of Job identification2. Job coverage identification3. Duty and responsibility4. Job specify determination Before making the job analysis in each level of position , it will explain about scoring each of those based on PDCA

Table 4.4 General Manager's PDCA phase 0ActivityExplanationScore

PlanIdentifying the vision and mission of the company, and decide the policies that will be implement5

DoImplement the pilot project in small scale2

CheckAnalyzing the impact of policies 3

ActionDo the measurement regarding the idea.2

Total12

Table 4.5 R&D's PDCA Manager phase 0ActivityExplanationScore

PlanContribute idea by giving the research topic3

DoDo the experiment and Implement the research policies4

Table 4.5 R&D's PDCA Manager phase 0 (cont)ActivityExplanationScore

CheckEvaluate the research and give the feedback about the research align with the policies 2

Total9

Table 4.6 HRD's PDCA Manager phase 0ActivityExplanationScore

PlanDesigning the organization structure for a year5

DoImprove the human resource skill3

ActionI Analyze the culture of the company measure the indicator related to work performance2

Total10

Table 4.7 Marketing's PDCA Manager phase 0ActivityExplanationScore

PlanIdentifying the market segment3

DoDesign how the way for promoting the product by soft brand launching4

CheckAnalyzing market behavior 2

Total9

Table 4.8 Finance's Manager phase 0ActivityExplanationScore

PlanEstimate the initial investment4

CheckEnsure the cost estimation for whole activities recorded 4

Total8

Table 4.9 General Manager's PDCA phase 1ActivityExplanationScore

PlanMake policies regarding the project, design the short term strategy5

DoImplement the pilot project in medium scale and implement in short term3

CheckAnalyzing the impact of policies in short term period3

ActionDo the measurement and feedback regarding the project idea3

Total14

Table 4.10 PPICs PDCA phase 1ActivityExplanationScore

PlanPlan the supplier and material determination, SOP of purchasing5

DoAgreement among the supplier, Make schedule of purchasing, Execute the purchasing,4

CheckEvaluate whether the SOP of supply chain and warehouse are obeyed 2

Total11

Table 4.11 Human Resourcess PDCA phase 1ActivityExplanationScore

PlanSet the work of functional and divisional among the department3

DoImplement the Training to the worker 4

CheckMonitoring the framework specification4

ActionRecruitment process3

Total14

Table 4.12 Production's PDCA Manager phase 1ActivityExplanationScore

PlanSet the production process design the manufacturing system and capacity planning4

DoProduction schedule, execute production process4

CheckEnsure the process production align with strategy2

ActStandardized the operation time output rate2

Total12

Table 4.13 Contracting's PDCA Manager phase 1ActivityExplanationScore

PlanPositioning and targeting the another company3

DoAgreement among the corporation5

CheckAgreement target evaluation2

ActAdapt the competitor behavior1

Total11

Table 4.14 Finance's PDCA phase 1ActivityExplanationScore

DoRecord all the transaction regarding the business process4

CheckBalancing and adjust the costing4

Total8


PlanIdentifying the market segmenting, positioning and targeting4

DoDo the promotion in point of strategic event by doing soft and brand launching effectively and efficiently4

CheckAnalyzing market behavior 2

Total10

Table 4.16 President's PDCA phase 2ActivityExplanationScore

PlanMake policies regarding the project, design the short term strategy in a central area5

DoImplement the pilot project in medium scale and implement in short term3



Total14

Table 4.17 Region Vise President's PDCA phase 2ActivityExplanationScore

PlanMake policies regarding the project, design the short term strategy in each region5

DoImplement the pilot project in medium scale and implement in short term and represent to the president3



Total14

Table 4.18 Human Resource Manager's PDCA phase 2ActivityExplanationScore

DoImplement the Training to the worker 4

ActionDo Recruitment process3

Total7

Table 4.19 Finance's PDCA phase 2ActivityExplanationScore

PlanEstimate the initial investment4


Total8

Table 4.20 R&D's PDCA Manager phase 2ActivityExplanationScore

PlanPlan the schedule for research3

DoDo the experiment, Implement the research policies, and find the project regarding the research management.4

CheckEvaluate the research4

Total11


PlanIdentifying the market segmenting, positioning and targeting in specific region.4

DoDo the promotion in the best way of each region.4

CheckAnalyzing market behavior in each region2

Total10

Table 4.22 PPICs PDCA phase 1ActivityExplanationScore

PlanPlanning the method to forecast the demand in accurately. 5

DoDo the distribution, warehousing and planning for the production4


Total11

Table 4.23 Production's PDCA Manager phase 2ActivityExplanationScore

PlanSet the enlargement for the production process design the manufacturing system and capacity planning4

Table 4.23 Production's PDCA Manager phase 2 (cont)ActivityExplanationScore

DoEnlarge the capacity of Production schedule, execute production process.4

ActStandardized the operation time output rate3

Total11

Table 4.24 Information Technology's PDCA Manager phase 2ActivityExplanationScore

PlanIdentifying type of gadget that might be implement in the company to support the business process. 3

DoProcure and selecting the gadget for the company4

ActEvaluate the gadget and other related tools in supporting business process3

Total10

Table 4.25 Marketing's PDCA Regional phase 2ActivityExplanationScore

PlanIdentifying the market segmenting, positioning and targeting in specific region.4

DoDo the promotion in the best way of each region.3

CheckAnalyzing market behavior in each region2

Total9

Table 4.26 PPICs PDCA Regional phase 2ActivityExplanationScore

PlanPlanning the method to forecast the demand in accurately in specific region4

DoDo the distribution, warehousing and planning for the production in scale of regional4


Total10

Table 4.27 Finance's PDCA Regional phase 2ActivityExplanationScore

PlanEstimate the initial investment in specific region of the company4


Table 4.27 Finance's PDCA Regional phase 2 (cont)ActivityExplanationScore

Total8

Table 4.28 Human Resource Manager's PDCA Regional phase 2ActivityExplanationScore

DoImplement the Training to the worker in scale of regional4

ActionDo Recruitment process in scale of regional 3

Total7

Here show the detail job analysis each level of position in Andalan Air Purifier Inc. Table 4.29 Job Analysis of General Manager Phase 0Job Description

Position : Director/CEO

Group of function : -

Division : -

Departement : -

Brief explanation1. The CEO is responsible for developing and effectively implementing the vision for the company ensuring the appropriate program design and support mechanisms are in place by bringing the green concept to business core.

Experience and Knowledge Requirement1. Ideally educated to a graduate level or equivalent with a professional qualification2. Ability to develop and communicate the vision of the organization at all levels internally and externally 3. Experience of working at, and leading organizations at a senior level

Responsibility1. The CEO is responsible for ensuring that the Board of Directors has all the information necessary to properly

Table 4.30 Job Analysis of General Manager Phase 1Job Description

Position : Director/CEO


Division : -

Departement : -

Brief explanation1. The CEO is responsible for developing and effectively implementing the vision for the company ensuring the appropriate program design and support mechanisms are in place by bringing the green concept to business core.2. This position requires a high level of understanding and sensitivity of political, labour relations and public policy issues relating to forest practices in Andalan Air Purifier Inc.3. The CEO has a wide range of responsibilities and accountabilities that contribute to the overall achievement of Andalan air Purifier Inc. sector marketing objectives.


Responsibility1. The CEO is responsible for developing and effectively implementing the vision for the company ensuring the appropriate program design and support mechanisms are in place.2. The CEO is responsible for establishing and maintaining positive and productive relationships with the media, industry and industry representatives to build the sustainable manufacturing for the environment, recipients, government organizations and communities, including national and international stakeholders. 3. The CEO develops and maintains an effective and innovative organizational structure based on achieving performance objectives that reflect the gree industry and market requirements.

Table 4.31 Job Analysis of President Phase 2Job Description

Position : President


Division : -

Departement : -

Brief explanation1. The CEO is responsible for developing and effectively implementing the vision for the company ensuring the appropriate program design and support mechanisms are in place.2. This position requires a high level of understanding and sensitivity of political, labour relations and public policy issues relating to forest practices in Andalan Air Purifier Inc.3. The CEO has a wide range of responsibilities and accountabilities that contribute to the overall achievement of Andalan air Purifier Inc. sector marketing objectives and contributing in green product manufacturing system.


Responsibility1. The CEO is responsible for developing and effectively implementing the vision for the company ensuring the appropriate program green design and support mechanisms are in place.2. The CEO is responsible for establishing and maintaining positive and productive relationships with the media, sustainable industry and industry representatives, recipients, government organizations and communities, including national and international stakeholders. 3. The CEO develops and maintains an effective and innovative organizational structure based on achieving performance objectives that reflect the green industry and sustainable industry required by the market.

Table 4.32 Job Region Vise President Phase 2Job Description

Position : Region Vise President


Division : -

Departement : -

Brief explanation1. Responsible for total branch performance in accordance with company policy and procedures. Create and execute the branch business plan. Ensure store profitability and manage and develop branch personnel.

Experience and Knowledge Requirement1. AbilitytoTrainBusinessOwnersaccordingtoAndalan Air Purifierstandards2. Goodwrittenandverbalcommunications 3. AbilitytoAnalyzeandthinkstrategically 4. AttentiontoDetail

Responsibility 1. Responsibleforoverallperformanceofassignedgroup2. Assistinmonitoringoverallcustomersatisfaction in region.3. Assistinthedevelopingofnewoperationsproceduresandpolicies.4. Conductandattendregionalmeetingsforassignedregions.

Role1. Plan, implement, and manages areas of responsibility to facilitate continuous improvement and personal growth while supporting company goals, missions, and vision. Bring green concept of marketing atmosphere

Table 4.33 Job Analysis of Marketing Manager Phase 0Job Description

Position : Marketing Manager


Division : Marketing

Departement : Sales and Marketing

Brief explanation1. TheMarket Research Analystis principally responsible for interpreting data, formulating reports and making recommendations based upon the research findings (sustainable product). To accomplish this task, the Market Research Analyst works with the client (either internal or external) to understand the important of waste and green production, define and document the overarching business object in less paper. The Market Research Analyst applies qualitative and quantitative techniques to interpret the data and produce substantiated recommendations. Market Research Analysts frequently present the findings and recommendations to the client.

Experience and Knowledge Requirement1. A minimum of 3 to 5 years within the custom Market Research industry2. 1 to 3 years of industry/sector experience3. Strong analytic and critical thinking skills4. Exceptional written, oral, and presentation communication abilities5. Expertise with Excel, PowerPoint, and SPSS/SAS6. Bachelors or advanced degree in business, mathematics, or the sciences

Responsibility1. Communicating with clients to understand and document the business objectives2. Formulating analysis plans and acquiring client sign-off3. Designing or assisting in the development of questionnaires and moderator guides to ensure the necessary data is captured4. Conducting in-depth data analyses using traditional and advanced methods5. Authoring reports containing actionable recommendations6. Making presentationsanswering questions and instilling confidence

RoleDirect marketing campaigns to monitoring competitor activity and developing marketing Strategies.

Table 4.34 Job Analysis of Marketing Manager Phase 1Job Description

Position : Supervisor General Trading


Division : Marketing

Departement : General Trading

Brief explanation1. The supervisor of general trading will be at the heart of driving all trading activity across the company. In a key role at The Future Laboratory you will be expected to be involved at all levels, from drafting email direct marketing campaigns to monitoring competitor activity and of the green product in the market such as trend developing marketing. strategies.

Experience and Knowledge Requirement1. 1 to 3 years of management business experience2. Strong analytic and critical thinking skills3. Proven knowledge and application of a wide range of marketing techniques and concepts4. Effective and efficient time management and organizational skills

Responsibility1. Work with the Managing Director to create a PR strategy, and lead and deliver PR objectives. 2. Direct and coordinate counter and outside sales (if applicable) efforts. Assist in account development. 3. Direct sales program to develop new markets. Make joint calls with salesmen as needed. 4. Conducting in-depth data analyses using traditional and advanced methods5. Authoring reports containing actionable recommendations6. Create, implement and be accountable for the companys marketing strategy, working closely with the Managing Director and the sales team.

Roledirect marketing campaigns to monitoring competitor activity and developing marketing Strategies.

Table 4.35 Job Analysis of Human Resource Manager Phase 0Job Description

Position : HRD Manager


Division : Human Resource

Departement : Human Resource

Brief explanation1. Reporting to the Managing Director of the Company, under the guidance of the Head of HR to provide Human Resources support at both strategic and operational levels to the Devonshire Hotels & Restaurants through interpreting business needs, and together with the Head of HR developing focused and pragmatic HR solutions which are aligned to the business objectives.

Experience and Knowledge Requirement1. At least 5 years experience of delivering pragmatic operational HR advice to managers and staff in an organization comparable to Lifeline Project 2. At least 3 year experience of leading and managing staff and teams to deliver results.3. Experience of developing and implementing HR policies, procedures & and achievement of Improved organization outcomes. 4. Educated to degree level or equivalent experience5. Post-graduate qualification in human resources management

Responsibility1. To audit present systems and processes 2. To work alongside the MD and senior managers to improve the quality and retention of recruits and ensure that probationary periods are managed effectively.

RoleThis role is a member of the companys Senior Management Team.

Table 4.36 Job Analysis of Human Resources Manager Phase 1Job Description



Division : Corporate Human Capital


Brief explanationCoordinate the basic function as counselor for personal to each worker

Experience and Knowledge Requirement1. Educated to degree level or equivalent experience2. Post-graduate qualification in human resources management

Responsibility1. To provide the Managing Director of the Hotels with professional HR advice and guidance 2. To improve present systems and processes working with the Head of HR and the HR team

Role

Table 4.37 Job Analysis of Human Resource Manager Phase 2Job Description



Division : Human Resource


Brief explanationReporting to the Managing Director of the Company, to provide Human Resources support at both strategic and operational levels to the Andalan Air Purifier through interpreting business needs, and together with the Head of HR developing focused and pragmatic HR solutions which are aligned to the business objectives.

Experience and Knowledge Requirement1. At least 5 years experience of delivering pragmatic operational HR advice to managers and staff in an organization comparable to Lifeline Project 2. At least 3 year experience of leading and managing staff and teams to deliver results.3. Experience of developing and implementing HR policies, procedures & and achievement of Improved organization outcomes. 4. Educated to degree level or equivalent experience5. Post-graduate qualification in human resources management

Responsibility1. To provide the Managing Director of the Company with professional HR advice and guidance 2. To audit present systems and processes 3. To improve present systems and processes working with the Head of HR and the HR team 4. To work alongside the MD and senior managers to improve the quality and retention of recruits and ensure that probationary periods are managed effectively.

Table 4.38 Job Analysis of Finance Phase 0,1 and 2Job Description

Position : Finance & Accounting Manager


Division : Finance

Departement : Finance

Brief explanationThe Financial Accountant is responsible for managing a small accountancy team, providing accounting and system support to the Finance team. Reports to the Financial Operations Controller.

Experience and Knowledge Requirement1. A minimum of 4 years' accounting experience2. Qualified Accountant with a recognized accountancy body 3. Ability to investigate a problem or situation beyond routine questioning

Responsibility 1. Leads a team of Senior Finance Assistants and a Finance Assistant, managing performance and developing skills.2. Manages the accounting and systems support for the whole finance function, planning, controlling and prioritizing activities.

Role1. Reports to the Financial Operations Controller

Table 4.39 Job Description of Production Manager Phase 1Job Description

Position : Head of Production

Group of function : production

Division : Production & QualityControl

Department : production

Brief explanation1. Organizing the repair and routine maintenance of production equipment.2. Supervising the work of junior staff.3. Planning and organizing production schedules

Experience and Knowledge Requirement1. Has qualified in education minimum bachelor of engineering/ degree.2. Minimum 5 years work experience in that field.3. Pass the interview process when recruitment.

Responsibility1. Controlling : 3-5 hours / day2. Inspect the product : 2 hours/day3. Maintenance : 1 hour/day

Role1. Give instruction to the labor for completing the job2. Force the labor to be more productive3. Give the feedback regarding the work performance

Table 4.40 Job Description of Production Manager Phase 2Job Description

Position : Head of Production

Group of function : production

Division : Production & QualityControl

Department : production

Brief explanation1. Organizing the repair and routine maintenance of production equipment.2. Supervising the work of junior staff.3. Planning and organizing production schedules4. Determining quality control standards5. overseeing production processes


Responsibility1. Controlling : 3-5 hours / day2. Inspect the product : 2 hours/day3. Maintenance : 1 hour/day4. adjust the production and coordinate the production schedule with PPIC department

Role1. Give instruction to the labor for completing the job2. Force the labor to be more productive3. Give the feedback regarding the work performance

Table 4.41 Job Description of PPIC phase 1Job Description

Position : Manager

Group of function : Production and Planning

Division : PPIC

Department : PPIC

Brief explanation1. Do the controlling in purchasing in order to get the raw material effectively and efficiently in term of.2. Control the identification of the product and the traceability of the product.


Responsibility1. Controlling : 3-5 hours / day

Role1. Give instruction to the labor purchasing for completing the job2. Scheduling the purchasing and warehousing

Table 4.42 Job Description of PPIC phase 2Job Description

Position : Manager

Group of function : Production and Planning

Division : PPIC

Department : PPIC

Brief explanation1. Do the controlling in purchasing in order to get the raw material effectively and efficiently by respecting the chemical ingredients in raw material.2. Control the identification of the product and the traceability of the product.3. Plan and do the research that useful for better production process in green concept.


Responsibility1. Controlling : 3-5 hours / day2. make the master plan for requirement production planning

Role1. Give instruction to the labor purchasing for completing the job2. Scheduling the purchasing and warehousing

Table 4.43 Job Description of Information Technology Manager phase 2Job Description

Position : Manager


Division : -

Department : Information Technology

Brief explanationThe job of Information Technology Support Specialist is done for the purpose/s of advising staff regarding the procurement of District approved technology equipment, supplies and materials; answering user inquiries regarding computer software or hardware operation or other advanced technology regard the environmental issues; collaboration with Information Technology administration and staff.

Experience and Knowledge Requirement1. Has qualified in education minimum bachelor of information technology degree/ diploma. 2. Minimum 5 years work experience in that field.3. Pass the interview process when recruitment.

Responsibility1. installing computer hardware2. repairing District approved computers,3. Operation systems, application software, and related equipment; maintaining current knowledge of technology and industry trends; preparing documentation.4. Repairing District approved computers, peripherals, network equipment, application and operating software requiring specialized computer and electronics troubleshooting skills; and transporting various items.

Role1. Advises staff regarding the procurement of District approved technology equipment, supplies and materials for the purpose of maintaining District standards.

Table 4.44 Job Description of Research and Development phase 0 Job Description

Position : Manager


Division : -

Department : R&D

Brief explanation Responsible for developing, optimizing and improving green products concepts, performances and technologies within our PU foam portfolio;

Experience and Knowledge Requirement A profound knowledge of Chemistry and /or Chemical Engineering; A Master's degree in a scientific discipline from an accredited college/university and 5+ years of experience in research and development.

Responsibility1. Give the report of the result from the research project.2. Give the analysis of the conclusion regarding the experiment.

Role1. give the detailed information about research

Table 4.45 Job Description of Research and Development phase 1Job Description

Position : Manager


Division : -

Department : R&D

Brief explanation Responsible for developing, optimizing and improving green products concept, performances and technologies within our PU foam portfolio;

Executing necessary physical and chemical tests and analyses; Working with project management structures; Maintaining and building close contacts with customers, suppliers and markets in order to translate trends and opportunities into product or technology development; Close collaboration with sales, purchasing, operations and marketing.

Experience and Knowledge Requirement A profound knowledge of Chemistry and /or Chemical Engineering; A Master's degree in a scientific discipline from an accredited college/university and 5+ years of experience in research and development. Proven experience as a project manager with good supervisory and teamwork skills in a fast paced and challenging environment; Experience with project management tools.

Responsibility1. Give the report of the result from the research project.2. Give the analysis of the conclusion regarding the experiment.

Role1. give the detailed information about research

Table 4.45 Job Description of Research and Development phase 2Job Description

Position : Manager


Division : -

Department : R&D

Brief explanation Responsible for developing, optimising and improving products, performances and technologies within our PU foam portfolio; Executing necessary physical and chemical tests and analyses; Working with project management structures; Maintaining and building close contacts with customers, suppliers and markets in order to translate trends and opportunities into product or technology development; Close collaboration with sales, purchasing, operations and marketing.

Experience and Knowledge Requirement A profound knowledge of Chemistry and /or Chemical Engineering; A Master's degree in a scientific discipline from an accredited college/university and 5+ years of experience in research and development. Proven experience as a project manager with good supervisory and teamwork skills in a fast paced and challenging environment; Experience with project management tools.

Responsibility1. Give the report of the result from the research project.2. Give the analysis of the conclusion regarding the experiment.3. Make the policies in best way in experiment to grab optimizing result.

Role1. Give the detailed information about research2. Give the alternative research project to the manager regarding the decision making in information gathering.

Table 4.46 Job Description of Staff of R&D phase 0,1,2Job Description

Position : staff


Division : Research & Development

Department : R&D

Brief explanation1. Continuing the plan of manager of R&D by Maintaining and building close contacts with customers, suppliers and markets in order to translate trends and opportunities into product or technology development. Close collaboration with sales, purchasing, operations and marketing.


Responsibility1. Execute the plan of the plan that already settled by manager2. Be involved and contribute at team meetings

Table 4.47 Job Description of Staff of HRD phase 0, 1, 2Job Description

Position : staff


Division : -

Department : Human Resources Development

Brief explanation1. Execute the reporting to the Managing Director of the Company, under the guidance of the Head of HR to provide Human Resources support at both strategic and operational levels to the Andalan Air Purifier through interpreting business needs, and together with the Head of HR developing focused and pragmatic HR solutions which are aligned to the business objectives.

Experience and Knowledge Requirement 1. Has qualified in education minimum bachelor of engineering/ degree.2. Minimum 2 years work experience in that field.3. Pass the interview process when recruitment.

Responsibility1. Always adhere to all company policies and procedures of recruitment2. Set the training based on the planning of from the HRD manager3. Create, update, and maintain job descriptions

Table 4.48 Job Description of Staff of Marketing phase 0, 1, 2Job Description

Position : staff


Division : -

Department : R&D

Brief explanation1. To deliver the strategic plan from the marketing manager by friendly, efficient customer service and to create a warm and welcoming atmosphere for all of our customers, with the key aim of retaining of green aspect of the product and attracting new customers.


Responsibility1. Deliver excellent customer service, at all times2. Be involved and contribute at team meetings3. Keep up to date with current promotions and new products

Table 4.49 Job Description of Staff of Finance phase 0,1,2Job Description

Position : staff


Division : -

Department : Finance

Brief explanation1. The Finance manager Assistant is responsible for cash reconciliation for the Company


Responsibility1. Prepare and file related monthly journal entries2. Research outages and make journal entry corrections

Table 4.50 Job Description of Staff of PPIC phase 0,1,2Job Description

Position : staff


Division : -

Department : R&D

Brief explanation1. The purchasing staff is responsible for day to day operation of all aspect purchasing within the company and the supplier


Responsibility1. Assist with other functions or projects as determined by PPIC manager for Purchasing and inventory control managing.

Table 4.51 Job Description of Staff of Production phase 0,1,2Job Description

Position : staff


Division : -

Department :Production

Brief explanation1. Do the production controlling in order to get the process effectively and efficiently in terms of green aspect.2. Keep the administration of the stock finished good.3. Control the identification of the product and the traceability of the product.4. Do the preventive maintenance to the machines and do the monitoring.


Responsibility1. Perform one or several functions on a production line such as assembly or fabrication of parts and products, testing finished products, transporting materials and equipment to other areas or cleaning production areas.

Table 4.52 Job Description of Staff of Information & Technology phase 0,1,2Job Description

Position : staff


Division : -

Department : R&D

Brief explanation1. The Network Technician is responsible for providing network hardware support to company, manager, and staff.


Responsibility1. Work with helpdesk personnel as needed in the troubleshooting and repair of network issues.2. Maintain a current inventory of network hardware and other components as required by the Company.3. Coordinate MACs (moves, adds, and changes) of company network hardware/systems.

4.3 Determination of the Human Resources NeededThis sub module is compiled to make sure that the company has the appropriate amount of employee and appropriate allocation of human resource, considering the foreseen expansion and implementation of the company in order for Andalan, Inc. to run effective and efficiently. The following is the approach used to determine the amount of human resources needed in the company in a time frame of one year:There are three phase for Andalan Inc. to determine number of human resources, such as zero phases (initial phase), introduction phase, and maturity phase. At the zero phases, Andalan Inc. will not produce product so thats why there is no direct worker. Table 4.40 show human resources needed for andalan Inc. especially indirect worker.

Table 4.53 List indirect worker needed for zero phaseNo DepartmentRoleNumber

1General Manager-1

2R&DManager1

Staff1

3HRDManager1

Staff1

4MarketingManager1

Staff1

5FinanceManager1

Staff1

6Security-2

7Office Boy-2

Total13

There are 13 human resources needed by Andalan, Inc. in zero phase. This are consist of GM, Department (RD, HR, Marketing, Finance) and additional such as security and OB.At the introduction phase, determination of the human resource needed in Andalan Inc. is divided into direct worker and indirect worker. Direct worker will be needed for the shop floor and only focus in produce the product and indirect worker will focus in how well the company run especially in managerial aspect. Below is the direct worker needed for Andalan, Inc.

Table 4.54 List direct worker needed in each department for introduction phasetimeDepartment NameShiftWork UnitNumber of Worker

1Injection blow molding 236

2Injection molding224

3Air cooling 1212

4Air cooling 2236

5Assembly fan236

6Assembly body with container and wheels236

7Assembly all component248

8Inspection 1224

9Inspection 2224

10Inspection 3212

11Packaging224

Total Worker52

Table 4.41 show us the number of direct worker that needed in Andalan Inc. Andalan Inc. will need 52 worker to fulfil the demand in a year at introduction phase. After that, Andalan, Inc. also determine the number of indirect worker based on previous subchapter organizational structure planning. Below is the number of indirect worker of Andalan, Inc.

Table 4.55 List indirect worker needed in each department for introduction phaseNoDepartmentRoleNumber

1General Manager-1

2R&DManager1

Staff2

3HRDManager1

Staff2

4MarketingManager1

Staff2

5FinanceManager1

Staff2

6PPICManager1

Staff2

7ProductionManager1

Staff2

11Security-2

12Office Boy-3

Total24

Table 4.2 show us the number of indirect worker needed for Andalan, Inc. Andalan Inc. need 24 worker to run their managerial process. Andalan add more department such as production and PPIC because at introduction phase they start to make their product and sell it to the market. So it necessary At the maturity phase, determination of the human resource needed in Andalan Inc. are divided into direct worker and indirect worker. Direct worker will be needed for the shop floor and only focus in produce the product and indirect worker will focus in how well the company runs especially in managerial aspect. Below is the direct worker needed for Andalan, Inc.Table 4.56 List direct worker needed in each department for maturity phaseNo.Station NameRoleShiftWork UnitNumber of Worker

1Injection blow molding Worker339

2Injection moldingWorker326

3Air cooling 1Worker313


5Assembly fanWorker339

6Assembly body with container and wheelsWorker339

7Assembly all componentWorker3412

8Inspection 1 and 2Worker326

9Inspection 3Worker326


11PackagingWorker326

Total78

Table 4.43 show us the number of direct worker that needed in Andalan Inc. Andalan Inc. will need 78 worker to fulfill the demand in a year at maturity phase. This is happen because Andalan must add one shift to fulfill the demand of that year. After that, Andalan, Inc. also determines the number of indirect worker based on previous subchapter organizational structure planning. Below is the number of indirect worker of Andalan, Inc.Table 4.57 List indirect worker needed in each department for maturity phaseNoDepartmentRoleNumber

1President-1

2Assistant-1

3R&DManager1

Staff2

4HR & LegalManager1

Staff2

5MarketingManager1

Staff2

6FinanceManager1

Staff2

7PPICManager1

Staff2

8ProductionManager1

Staff2

9Information TechnologyManager1

Staff2

10Java RegionVice President1

Staff Marketing2

Staff Logistics2

Staff Finance2

Staff HR2

11Sumatra RegionVice President1

Staff Marketing2

Staff Logistics2

Staff Finance2

Staff HR2

12Kalimantan RegionVice President1

Staff Marketing2

Staff Logistics2

Staff Finance2

Staff HR2

13Sulawesi RegionVice President1

Staff Marketing2

Staff Logistics2

Staff Finance2

Staff HR2

14Papua RegionVice President1

Staff Marketing2

Staff Logistics2

Staff Finance2

Staff HR2

15Security-7

16Office Boy-9

Total84

Table 4.44 show us the number of indirect worker needed for Andalan, Inc. Andalan Inc. need 8 worker to run their managerial process. Andalan add more department such as information technology and expand their market by add new 5 regional office. Information technology is needed by company because with 5 regional office, Andalan need fast and reliable information transfer and this department will be do this role. Beside that each region will have VP, marketing, logistic, finance and HR without production and PPIC because each region just focus on marketing their product by bringing their product closer to the consumer. The main office at Probolinggo will be main production center for the whole country. After all human resources determination is done by Andalan Inc. Andalan will make recapitulation of human resources needed in eleven years based on the previous data. Here is the recapitulation of human resources

Table 4.58 Recapitulation of worker needed in ten yearsNo.Department NameRole20152016201720182019202020212022202320242025

1President (General Manager)-11111111111

2Assistant-00000000011

3R&DManager11111111111

Staff12222222222

4HR & LegalManager11111111111

Staff12222222222

5MarketingManager11111111111

Staff12222222222

6FinanceManager11111111111

Staff12222222222

7PPICManager01111111111

Staff02222222222

8ProductionManager01111111111

Staff02222222222

9Information TechnologyManager00000000011

Staff00000000022

10Java RegionVice President00000000011

Staff Marketing00000000022

Staff Logistics00000000022

Staff Finance00000000022

Staff HR00000000022

11Sumatra RegionVice President00000000011




Staff HR00000000022

Table 4.58 Recapitulation of worker needed in ten years (cont)No.Department NameRole20152016201720182019202020212022202320242025

Kalimantan RegionVice President00000000011


12Staff Logistics00000000022


Staff HR00000000022

13Sulawesi RegionVice President00000000011




Staff HR00000000022

14Papua RegionVice President00000000011




Staff HR00000000022

15Security-22222222277

16Office Boy-23333333399

17Injection blow molding Worker06666666699

18Injection moldingWorker04444444466



21Assembly fanWorker06666666699

22Assembly body with container and wheelsWorker06666666699

23Assembly all componentWorker0888888881212

24Inspection 1 and 2Worker04444444466



27PackagingWorker04444444466

Total137676767676767676162162

Table 4.45 shows Andalan, Inc. human resources needed for eleven years. In the 2015, company only needs 13 people as their worker. In the 2016-2023, company only needs 76 people. In the 2024-2025, company only needs 162 people. This is based on each phase that occur at Andalan Inc.

4.4Employee CompensationThis sub module discusses about the waging system for every job position in the company. Employee compensation relates to every form of payment towards the employees devotion to the company. The form of payment is divided into 2 ways which are Direct Payment and Indirect Payment. Direct payment is payments in form of wage, incentives, and bonuses. While the Indirect Payment is as financial support such as insurance and employee facilities. In order to determine the employee compensation, the company has to determine the salary and the scale of salary payment for each job position. The salary payment scale is represent in the table 4.52

4.59 salary for each job positionNoJob position Monthly Payment Scale

1President Rp 10.000.000,00

2Vice President Rp 7.500.000,00

3General Manager Rp 6.000.000,00

4Assistant Rp 6.000.000,00

5Department Manager Rp 4.500.000,00

6Staff Rp 2.000.000,00

7Worker Rp 1.250.000,00

8Security Rp 1.250.000,00

9Office boy Rp 1.250.000,00

The salary for each job position is differeces. The amount of salary is based on the work load, the skill that need to do the job in that position, and other consideration from Andalan Inc. The determination of salary is also from UMR policy in Problolinggo.The salary in the table 4.52 can be add based on the UMR level in the next year. The next step is determine the level of work. The level of work is represent in the table 4.53Table 4.60 level of taskLevelNature of the taskResponsibility level

1Define and control the all element in organizationDefine strategic direction and decision

2Do specific job in functional areaGuarantee the continuance of staf tasks and evaluate the result of staf task

3Do operational activitiesDo daily jobs which have been give to them

Determining the level of activities or task is to know what is job position level that have bigger impact to whole company. After know the main salary for each position in the company, Andalan Inc has to calculate allowance, old age assurance, and K3 assurance to define the cost to pay its employee. The calculation of total salary cost plus the insentives and allowance is done in three phase. The first phase is zero phase which means the company doesnt start the production yet. The company still prepare the plant, office etc. The second phase is introduction phase. In this phase the company start to produce but in not large quantity numbers. The third phase is maturity phase. In this phase the company start to enlarge the market with build some branches in around Indonesia. The calculation of total salary cost of employee in first phase is represent in the table 4.48

41

4.61 Total employee compensation in first phaseDefinitionPositionDepartmentNumber of employee Salary (Rp) Payment period K3 Assurance (Rp) Old age assurance (Rp) Total salary and allowance (Rp)

General ManagerGeneral Manager-1 Rp 6.000.000,00 Monthly Rp 104.400,00 Rp 120.000,00 Rp 6.224.400,00

ManagerManager of Research and DevelopmentResearch and Development1 Rp 4.500.000,00 Monthly Rp 78.300,00 Rp 90.000,00 Rp 4.668.300,00

ManagerMarketing ManagerMarketing1 Rp 4.500.000,00 Monthly Rp 78.300,00 Rp 90.000,00 Rp 4.668.300,00

ManagerFinance ManagerFinance1 Rp 4.500.000,00 Monthly Rp 78.300,00 Rp 90.000,00 Rp 4.668.300,00

ManagerHRD ManagerHRD1 Rp 4.500.000,00 Monthly Rp 78.300,00 Rp 90.000,00 Rp 4.668.300,00

StaffResearch and development stafResearch and Development1 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 2.074.800,00

StaffHRD StaffHRD1 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 2.074.800,00

StaffMarketing StaffMarketing1 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 2.074.800,00

StaffFinance StaffFinance1 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 2.074.800,00

StaffSecurity-2 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 2.593.500,00

StaffOffice boy-2 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 2.593.500,00

TOTAL Rp 38.383.800,00

The calculation of total salary and allowance for each job position is:(salary + (K3 assurance (%) *salary)+ (old age assurance (%) * salary))* employee numberFor general manager:(Rp 6.000.000 + (1,74%*Rp 6.000.000)+(2%*Rp 6.000.000))*1(Rp 6.000.000+Rp 104.400+Rp 120.000)*1Rp 6.224.400The value of K3 assurance percentage is from BPJS rules. Based on PP No. 84 Tahun 2010, employee of Andalan Inc is categorize to group V which has K3 assurance percentage 1,74% from monthly salary (BPJS, 2014). For oldage assurance the amount of percentage is 2% from monthly salary. There is no direct labors in Andalan Inc in the first phase. The indirect labors in Andalan Inc are general manager, manager of RnD, manager of marketing, manager of finance, manager of HRD, staf of each department, security and office boy.The calculation of total cost for employee salary in the second phase is represent in the table 4.49 and table 4.50

Table. 4.62 the indirect labor compensation in second phaseDefinitionPositionDepartmentNumber of employee Salary (Rp) Payment period K3 Assurance (Rp) Old age assurance (Rp) Total salary and allowance (Rp)

General ManagerGeneral Manager-1 Rp 6.000.000,00 Monthly Rp 104.400,00 Rp 120.000,00 Rp 6.224.400,00




ManagerHRD ManagerHRD1 Rp 4.500.000,00 Monthly Rp 78.300,00 Rp 90.000,00 Rp 4.668.300,00

ManagerPPIC ManagerPPIC1 Rp 4.500.000,00 Monthly Rp 78.300,00 Rp 90.000,00 Rp 4.668.300,00

ManagerProduction ManagerProduction1 Rp 4.500.000,00 Monthly Rp 78.300,00 Rp 90.000,00 Rp 4.668.300,00


StaffHRD StaffHRD2 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 4.149.600,00


Table. 4.62 the indirect labor compensation in second phase (cont)DefinitionPositionDepartmentNumber of employee Salary (Rp) Payment period K3 Assurance (Rp) Old age assurance (Rp) Total salary and allowance (Rp)


StaffPPIC StaffPPIC2 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 4.149.600,00

StaffProduction StaffProduction2 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 4.149.600,00



TOTAL Rp 65.615.550,00

Table 4.63 direct labor compensation in second phaseDefinitionPositionDepartmentNumber of employee Salary (Rp) Payment period K3 Assurance (Rp) Old age assurance (Rp) Total salary and allowance (Rp)

WorkerInjection blow molding WorkerInjection blow molding 6 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 7.780.500,00

WorkerInjection molding WorkerInjection molding4 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 5.187.000,00

WorkerAir cooling 1WorkerAir cooling 12 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 2.593.500,00

WorkerAir cooling 2 WorkerAir cooling 26 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 7.780.500,00

WorkerAssembly fan WorkerAssembly fan6 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 7.780.500,00

WorkerAssembly b&wc WorkerAssembly body with container and wheels6 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 7.780.500,00

Table 4.56 direct labor compensation in second phase (cont)DefinitionPositionDepartmentNumber of employee Salary (Rp) Payment period K3 Assurance (Rp) Old age assurance (Rp) Total salary and allowance (Rp)

WorkerAssembly all component WorkerAssembly all component8 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 10.374.000,00

WorkerInspection 1 & 2 WorkerInspection 1 and 24 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 5.187.000,00

WorkerInspection 3 WorkerInspection 34 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 5.187.000,00


WorkerPackaging WorkerPackaging4 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 5.187.000,00

TOTAL Rp 67.431.000,00

The calculation of total salary and allowance for each job position is:(salary + (K3 assurance (%) *salary)+ (old age assurance (%) * salary))* employee numberFor injection worker:(Rp 1.250.000+ (1,74%*Rp 1.250.000)+(2%*Rp 1.250.000))*6(Rp 1.250.000+Rp 21.750+Rp 25.000)*6Rp 7.780.500The value of K3 assurance percentage is from BPJS rules. Based on PP No. 84 Tahun 2010, employee of Andalan Inc is categorize to group V which has K3 assurance percentage 1,74% from monthly salary (BPJS, 2014). For oldage assurance the amount of percentage is 2% from monthly salary. The direct labors in Andalan Inc in are injection blow molding worker, injection molding worker, air cooling 1 worker, air cooling 2 worker, assembly fan worker, assembly body and water container worker, assembly all component worker, inspection 1 and 2 worker, inspection 3 worker, inspection 4 worker and packaging. The indirect labors in Andalan Inc are general manager, manager of RnD, manager of marketing, manager of finance, manager of HRD, manager of PPIC, manager of production, staf of each department, security and office boy. The total employee compensation per month for Andalan Inc in the second phase is Rp 133.046.550.The calculation of total cost for employee salary in the third phase is represent in the table 4.50 and table 4.51Table 4.57 indirect labor for third phaseDefinitionPositionDepartmentNumber of employee Salary (Rp) Payment period K3 Assurance (Rp) Old age assurance (Rp) Total salary and allowance (Rp)

PresidentPresident-1 Rp 10.000.000,00 Monthly Rp 174.000,00 Rp 200.000,00 Rp 10.374.000,00

Vice PresidentVice President-5 Rp 7.500.000,00 Monthly Rp 130.500,00 Rp 150.000,00 Rp 38.902.500,00

AssistantAssistant-1 Rp 6.000.000,00 Monthly Rp 104.400,00 Rp 120.000,00 Rp 6.224.400,00




ManagerHRD ManagerHR & Legal1 Rp 4.500.000,00 Monthly Rp 78.300,00 Rp 90.000,00 Rp 4.668.300,00

ManagerPPIC ManagerPPIC1 Rp 4.500.000,00 Monthly Rp 78.300,00 Rp 90.000,00 Rp 4.668.300,00

ManagerProduction ManagerProduction1 Rp 4.500.000,00 Monthly Rp 78.300,00 Rp 90.000,00 Rp 4.668.300,00

ManagerInformation TechnologyInformation Technology1 Rp 4.500.000,00 Monthly Rp 78.300,00 Rp 90.000,00 Rp 4.668.300,00


StaffHR & Legal StaffHR & Legal12 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 24.897.600,00

Table 4.57 indirect labor for third phase (cont)DefinitionPositionDepartmentNumber of employee Salary (Rp) Payment period K3 Assurance (Rp) Old age assurance (Rp) Total salary and allowance (Rp)



StaffPPIC StaffPPIC2 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 4.149.600,00

StaffProduction StaffProduction2 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 4.149.600,00

StaffInformation Technology StaffInformation Technology2 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 4.149.600,00

StaffLogistics StaffLogistics10 Rp 2.000.000,00 Monthly Rp 34.800,00 Rp 40.000,00 Rp 20.748.000,00



TOTAL Rp 220.966.200,00

Table 4.58 Direct labor for third phaseDefinitionPositionDepartmentNumber of employee Salary (Rp) Payment period K3 Assurance (Rp) Old age assurance (Rp) Total salary and allowance (Rp)

WorkerInjection blow molding WorkerInjection blow molding 9 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 11.670.750,00

WorkerInjection molding WorkerInjection molding6 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 7.780.500,00

WorkerAir cooling 1WorkerAir cooling 13 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 3.890.250,00

WorkerAir cooling 2 WorkerAir cooling 29 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 11.670.750,00

WorkerAssembly fan WorkerAssembly fan9 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 11.670.750,00

WorkerAssembly b&wc WorkerAssembly body with container and wheels9 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 11.670.750,00

WorkerAssembly all component WorkerAssembly all component12 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 15.561.000,00

WorkerInspection 1 & 2 WorkerInspection 1 and 26 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 7.780.500,00



Table 4.59 Direct labor for third phase (cont)DefinitionPositionDepartmentNumber of employee Salary (Rp) Payment period K3 Assurance (Rp) Old age assurance (Rp) Total salary and allowance (Rp)

WorkerPackaging WorkerPackaging6 Rp 1.250.000,00 Monthly Rp 21.750,00 Rp 25.000,00 Rp 7.780.500,00

TOTAL Rp 101.146.500,00

The calculation of total salary and allowance for each job position is:(salary + (K3 assurance (%) *salary)+ (old age assurance (%) * salary))* employee numberFor injection worker:(Rp 1.250.000+ (1,74%*Rp 1.250.000)+(2%*Rp 1.250.000))*9(Rp 1.250.000+Rp 21.750+Rp 25.000)*9Rp 11.670.750The value of K3 assurance percentage is from BPJS rules. Based on PP No. 84 Tahun 2010, employee of Andalan Inc is categorize to group V which has K3 assurance percentage 1,74% from monthly salary (BPJS, 2014). For oldage assurance the amount of percentage is 2% from monthly salary. The direct labors in Andalan Inc in are injection blow molding worker, injection molding worker, air cooling 1 worker, air cooling 2 worker, assembly fan worker, assembly body and water container worker, assembly all component worker, inspection 1 and 2 worker, inspection 3 worker, inspection 4 worker and packaging. The indirect labors in Andalan Inc are president, vice president, assistant, manager of RnD, manager of marketing, manager of finance, manager of HR and Legal, manager of PPIC, manager of production, manager of Information Technology, staf of each department, security and office boy. The total employee compensation per month for Andalan Inc in the third phase is Rp 322.112.700.

4.5Legal AspectBefore starting registration procedures, aspiring entrepreneurs should seek professional advice from small enterprise advisors, accountants or solicitors on what is the best type of enterprise to establish, as this varies according to the legal framework and economic structures prevailing at a given time in a particular country

4.5.1 EstablishmentFirst step to start a business is determining the establishment of a business. It is used to determine who the investors are and what roles and responsibilities of the people involved in it. The establishment is divided into Perseroan Terbatas (PT) or Commanditaire Venootschaap (CV) based on capital and business responsibility voters.Commanditaire Venootschap is an alternative establishment that can be selected ny entrepreneurs who want to do business activities with limited capital because CV is not determined the minimum capital. It is different with PT that has requirement of minimum capital about 50 million rupiahs and should be in the store to cash his company at least 25%. The fundamental difference between PT and CV is, PT is legal body, which equated itself with people and has a rich area with the founders wealth. So, PT Can act out both at home and in justice as is the case with people and can have its own wealth. While CV, it is a business entity that is not incorporated and the founders wealth inseparable from wealth CV. The characteristic of CV that are not owned by other corporation is: CV established by at least two people, one of which will act as active persero (persero manager) and i twill be the title of president, while others will act as a Persero Comanditer (persero idle). An active persero acts perform all actions on the company management. Thus, in the event of a loss then Persero Active be liable in full to all private property to replace the loss claimed by a third party. While for Persero Comanditer is responsible only big capital that is deposited into partnership. Other differences are quite significant between PT and CV is in committing capital deposit CV stand, in the charter is not mentioned the allocation like PT. So, persero should make its own deal about it, or make a separate entry. All of that is because there is no separation of wealth between CV and each persero.Based on the statement above, so Andalan, Inc can establish as a CV because there is minimum capital when it is constructed and the wealth cannot be separated from CV. Andalan, Inc still in the introduction phase of a first company that focus on Air Purifier in Indonesia.

4.5.2 Law and Business LicensingThere are several kind of business license given by government relates on the business license NPWP (Nomor Pokok Wajib Pajak)Wajib Pajak (WP) is individual or entity include taxpayers, cutting taxes and the tax collector who has the right and obligation of taxation based on the provisions of the tax legislation.Nomor Pokok Wajib Pajak (NPWP) is a number given to Wajib Pajak as a means in taxation administration that is used to be personal identification or identity of Wajib Pajak in doing the right and obligation of taxation.NPWP is used to give a means in tax administration, personal identity or identity of Wajib Pajak in doing the right and obligation of taxation, maintaining order in payment of taxes and administration oversightThe benefit of NPWP is easy to handle the administration in filing credit bank, making checking account at the bank, Filing Business License/TDP, Final Tax Payments (Final Income Tax, VA and BPHTB, etc) and also following the auction in government agencies, BUMN and BUMD. Besides that, it is easy to serve the tax return, reduction of tax payments and deposit and report the taxes.Creating the NPWP is too easy because the requirement is only filling the form registration and show Kartu Tanda Penduduk (KTP) or passport. There is no cost (free) to make the NPWP in Kantor Pelayanan Pajak. SIUP (Surat Izin Usaha Perdagangan)SIUP is a license letter given by minister or official appointed to employers to carry out business activities in the field of trade and services. Trade business license (SIUP) is given to the employer whether an individual, firm, CV, PT, cooperatives, or BUMN.Liability of SIUP holders are reported to the head office of Trade and Industry Department or the office of the Commerce Department publishing the SIUP if the company does not do it again or close the companys trading activities accompanied with the purchase of Business License. Every company that has trading business must have SIUP that consist of:1. Small SIUP, must be owned by trading company with capital and netto until Rp 200.000,- including the land and building.2. Medium SIUP, must be owned by trading company with capital and netto above Rp 200.000,- until Rp 500.000,- not include land and building.3. Large SIUP, must be owned by trading company with capital and netto above Rp 500.000,- not include the land and building.SIUP is valid for trading company carrying on business activities. Trading companies referred shall re-register every five years in the license issuance. CopyrightCopyright is a legal concept, enacted by most governments that grants the creator of an original work exclusive rights to its use and distribution, usually for a limited time with the intention of enabling the creator of intellectual wealth to receive compensation for their work and be able to financially support. Copyright is a form of intellectual property (as patents, trademarks and trade secrets are), applicable to any expressible form of an idea or information that is substantive and discrete. SITU (Surat Ijin Tempat Usaha)SITU is a letter to obtain a business license at a business location with a view to avoid any disruption or harm to certain parties. This letter also has its legal basis based on local regulation of domicile of the company concerned. The legal basis of SITU is in local legislation of each local government. Legal sanctions are also vary in each region, but sanctions are generally closed its operations or could not obtain other permits needed to improve its operations.

REFERENCES

Anityasari, Maria dan Aranti, Naning. (2011). Analisa Kelayakan Usaha. Surabaya : Guna WidyaCV. Afita Consultant (2014). Surat Ijin Tempat Usaha [Online] Available at: www.afitaconsultant.weebly.com [Accessed 3 May 2014].Direktorat Jendral Pajak (2012). Seri KUP-NPWP dan Manfaatnya. [Online] Available at: www.pajak.go.id [Accessed 3 May 2014].Layanan Perizinan (2014). Penerbitan Surat Izin Usaha Pedagangan. [Online] Available at: www.jakarta.go.id [Accessed 3 May 2014].CV. Afita Consultant (2014). Surat Ijin Tempat Usaha [Online] Available at: www.afitaconsultant.weebly.com [Accessed 3 May 2014].Suttle, Rick, 2014, Types of Organizational Structure in Management, [Online] Available at: http://smallbusiness.chron.com/types-organizational-structure-management-2790.html, accessed 1 May 2014Wikipedia (2014). Copyright. [Online] Available at: www.wikipedia.org [Accessed 3 May 2014].

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