1. Imam Hadi Pramono 10208042 COMPENSATION MANAGEMENT MB 4015 2012 LEGAL ASPECT IN COMPENSATION MANAGEMENT UU KETENAGAKERJAAN PASAL 87.1

2. Outline Introduction Definition of Compensation Management About Assignment Legal Aspect in Compensation Management The Legal Aspect The Theoretical Background Common Implementation of the Legal Aspect in Indonesia Case Study Company Profile Implementation of the Legal Aspect in the Company Critical Review/ Analysis Suggestion Conclusion About the Legal Aspect and Its Implementation About the Assignment References/ Bibliographi

3. Introduction Definition of Compensation Management Compensation is the remuneration received by an employee in return for his/ her contribution to the organization. It is an organized practice that involves balancing the work employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. [1]

4. Introduction Definition of Compensation Management Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. [2]

5. Introduction About Assignment A relationship between legal aspect in Indonesia and compensation management. Analyze the implementation of legal aspect in the company in Indonesia (case study).

6. Legal Aspect in Compensation Management The Legal Aspect UU Ketenagakerjaan pasal 87 Ayat 1 Every company is obliged to apply an occupational safety and health which are integrated with enterprise management system.

7. Legal Aspect in Compensation Management The Theoretical Background Definition of occupational safety and health management system is part of the whole management system in the company which includes organizational structure, planning, implementation, responsibilities, procedures, processes, resources needed for application development, achievement, assessment, maintenance policies safety and health in order to control the risks associated with work activities to create a safe working, efficient, and productive place. [3]

8. Legal Aspect in Compensation Management The Theoretical Background There are three basic principles of safety: Structuring and arrangement Inspection and maintenance Standard operating The objective of occupational safety and health management system is make health workplace and accident free. The function of this management system is to minimize work accident which caused by human and technical factor. [4]

9. Legal Aspect in Compensation Management Common Implementation of the Legal Aspect in Indonesia In general, the implementation of this legal aspect is for big company/ industry which have to generate a product/ service for consumer.

10. Case Study Company Profile PT Holcim Indonesia Tbk Mission : PT Holcim Indonesia Tbk (Holcim Indonesia or the Company), through the manufacture and sale of cement, concrete, aggregates and the development of people, will deliver the maximum sustainably profitable return to shareholders while maintaining a responsible duty of care to all stakeholders. Vision : To be the best performing and most respected Indonesian company in our industry, ranked amongst the best in the Holcim Group. Production Sites : Operating two cement plants at Narogong and Cilacap and the single largest stone quarry in Java, Holcim Indonesia has a finished-cement capacity of 7.9 million tonnes. Holcim Indonesia is the leading integrated producer of cement, concrete and aggregates (crushed stone and sand) in its market. The Company has two subsidiaries, PT Holcim Beton (ready-mixed concrete and aggregates operator) and PT Wahana Transtama (transportation company). [5]

11. Case Study Implementation of the Legal Aspect in the Company The company applied several program such as: specific courses on supervision, safe driving, working at height, fall prevention, safety during maintenance, safety training is accident prevention, a safety champion reward programme, re-evaluated its healthcare programmes to raise standards, reduce lost time from illness, improve the general level of care, regular chest x-rays and medical check-ups are carried out for all employees on a rolling 12 month basis.

12. Case Study Critical Review/ Analysis The occupational safety and health management system is very important thing not only for Holcim company, but also for every company/ industry because this management goals to control the risks of companies productivity like build safe working, efficient, and productive place. There are several benefits for parts of the company from several point of view: Company the quality of product/ service is proven, became popular company for keeping a good occupational safety and health management, get achievement from government. Employee being safe and health, get awards from company, can increase motivate of work to the company. Consumer sophisticated with the product/ service.

13. Case Study Suggestion The company must be consistent to do a good management of safety and healthy. The policy in the management must be added and updated with development of the company.

14. Conclusion About the Legal Aspect and Its Implementation The legal aspect and the implementation are very important for a whole parts of the company/ industry. About the Assignment The relationship of legal aspect and compensation management is closely related.

15. References/ Bibliographi [1]http://www.citehr.com/68382-what-definition- compensation-management.html (6 March 2012/ 10.30) [2]PPT of Compensation Management Lecture [3]Undang-Undang No. 13 Tahun 2003 [4]http://staff.ui.ac.id/internal/131287959/material/Sa fetyChapter-1SMK3.pdf (8 March 2012/ 1:49) [5]http://www.holcim.co.id/holcimcms/uploads/ID/Hol cim%20AR%2006_FINAL.pdf (8 March 2012/ 2:42)

16. Thankyou Very Much