The document discusses compensation and organization. Some key points: 1) Compensation motivates employees and ties them to employers. It includes both monetary and non-monetary benefits. 2) A good compensation package is important to attract talented employees and improve productivity. Compensation helps organizations achieve their goals. 3) Setting the minimum wage involves balancing the interests of employers, employees, and government. The government oversees industrial relations and ensures rights and protections for both parties.

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. 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.
(http://www.citehr.com/68382-what-definition-compensation-management.html)

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.
http://payroll.naukrihub.com/compensation/

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. • 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. • 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. • 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. 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. 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. 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.