Midtest Presentation of Compensation Management Course by Imam Hadi Pramono

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