Organization and Compensation


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Midtest Presentation of Compensation Management Course by M. Firaldi Akbar Zulkarnain

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Organization and Compensation

  1. 1. OrGANIZATION AND Compensation “if you pick the right people and give them the opportunity to spread their wings - and put compensation and rewards as a carrier behind it - you almost don’t have to manage them.” — Jack WelchM. Firaldi Akbar Zulkarnain 19006126
  2. 2. What is Compensation compensation is the glue that ties between employees and employers together management compensation is something that should be the concentration of the company if you get an edge in competitive advantages 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. (
  3. 3. A good compensation package is important to motivate the employees to increase the organizational productivity. Unless compensation is provided no one will come and work for the organization. Thus, compensation helps in running an organization effectively and accomplishing its goals. Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose. The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards.
  4. 4. • Industrial relations occur when a system of relationships formed among the actors the production process of goods and services consisting of employers, workers, and government. These three elements come together to form an organization. Specialized in Indonesia government has an important role. For every type of business conducted in Indonesia should be based on Pancasila and the Constitution of the Republic of Indonesia in 1945. This means that the relationship between government, workers and employers. The government must provide protection, supervision, and enforcement. EMPLOYEE EMPLOYERS GOVERNMENT
  5. 5. • Workers' rights • Received wages from employers who may be • a. Employment that has been done in accordance with the previously agreed b. Annual leave for 12 days, for those who already have a service life of 1 year or more c. Pregnancy leave, menstruation leave, sick leave which can be verified by a doctor midwife. d. Sabbatical leave for those who already have a working period of six consecutive years or • more are set out in regulations and collective labor agreements • • Protection is given as follows – Included in the Social Security program for companies that have met the eligibility criteria – Safety and health protection and treatment in accordance with the dignity, age and religious morals. – Entered into a collective protection and association – Filed to the agency responsible for manpower affairs or to the Industrial Relations Court in case of termination of employment (FLE) is not in accordance with the rules set out in employment legislation applicable • Workers' obligations 1. Follow the dictates of employers properly and responsibly 2. Carry out the work properly 3. Comply with the Employment Agreement, the Company Regulation, or working agreements with
  6. 6. • Employers' rights 1. Give orders to the workers to perform work in accordance with the agreement 2. Getting the good work that has been programmed in accordance • Employers' obligations 1. Pay wages for work performed by workers 2. Provide the work performed by workers 3. Provide protection against labor involved in working relationships
  7. 7. • Because many of the rights and obligations contained in the role of employers and workers, the government should participate in the supervision production processs given policy or policies in order to create a conducive working company environment in each country course of industrial relations is always different. • In labor relations, harmonious state has the following elements: 1. Guaranteed rights of all parties 2. When problems arise can be resolved by consensus 3. Strike and lock out avoided 4. Improve the welfare of labor, productivity, and advancement of the company
  8. 8. NO NUMBER AND DATE OF DECISION SETTING SUBSTANCE 1 Act No. 21 of 2000, dated 4 August 2000 Organization of Trade Unions 2 Act No. 2 of 2004 On Industrial Relations Dispute Settlement 3 Act No. 98 of 1956. On 29 Agusutus 1956 About the validity of the basic fundamental right to organize and bargain collectively N o NUMBER AND DATE OF DECISION SETTING SUBSTANCE 1 Act no 1 of 1970, date 1 july 1970 about workplace safety 2 Act no 3 of 1992, date 17 february 1992 on social security work 3 Act no 13 of 2003, date 25 march 2003 about employment 4 Act no 80 of 1957, date 19 dec 1957 about equal wages for men and women for work of equal value 5 Gov regulation no 14 of 1993 on the administration of employees' social security program 6 No;Kep.224/MEN/2003 , date 31 okt 2003 about the obligations employers who hire Dll
  9. 9. UMK BEKASI 2012 Rp 1.491.886 (use 86 komponenet) Group 2 Rp 1.715.645 Group 1 Rp 1.849.913 UMK BEKASI 2011 RP 1.286.421 Meanwhile, the Decree 17 of 2005 on the KHL as a basis for setting minimum wages for new workers to accommodate 46 components. Decree Gov West Java 561/Kep.1558-Bangsos 2011 related with 561/Kep.1540-Bansos/2011
  10. 10. Dilemma • Government as the party that performs oversight and have the objectivity to welfare society must have the proper parameters. That can help people through life in pleasant conditions. In this case the government as the ruler and the supervisor has two classes of people in different roles. The first is the entrepreneur and the second is a worker. Government must be fair in attitude and can also accommodate the aspirations of these two different parties.