JOB EVALUATION FOR DESIGNING PAY STRUCTURE AT PT LAPI ITB FINAL YEAR PROJECT Submitted to the School of Business and Management Institute Technology of Bandung in Partial Fulfillment of the Requirements for the Degree of Bachelor of Business and Management By : Benny Banu Aji NIM: 19004010 Advisor : Ir. Nurhayati Ma mun, M.Sc. UNDERGRADUATE PROGRAM SCHOOL OF BUSINESS AND MANAGEMENT INSTITUT TEKNOLOGI BANDUNG 2007
JOB EVALUATION FOR DESIGNING PAY STRUCTURE AT PT LAPI ITB By: Benny Banu Aji NIM: 19004010 Undergraduate Program School of Business and Management Institut Teknologi Bandung Validated By Ir. Nurhayati Ma mun, M.Sc. NIP. 130679608
JOB EVALUATION FOR DESIGNING PAY STRUCTURE AT PT LAPI ITB Benny Banu Aji 19004010 Date of Final Examination: August 6, 2007 Date of Graduation: October 27, 2007 Undergraduate Program School of Business and Management Institut Teknologi Bandung, 2007 Thesis Advisor: Ir. Nurhajati Ma mun, M.Sc. ABSTRACT Facing global competition as well as in order to achieve its objectives, PT LAPI-ITB is in the way to make difference. Human resources are one aspect that must be a consideration of PT LAPI-ITB. Maintaining and attracting best talent to join PT LAPI- ITB is an answer for PT LAPI-ITB in increasing its competitiveness. For that reason, PT LAPI-ITB should arrange an excellent compensation system. However, there is no systematic documentation that explains about the duty of job and its worth thus far. PT LAPI-ITB must evaluate every single position using a systematic job evaluation as the first step for designing compensation system. The limitation of this research are: the coverage of this research is focused in doing a job evaluation in PT LAPI-ITB for the purpose of arranging a compensation system, the study will be done starting from doing a job analysis to determining the job worth as the outcome of job valuation, the position that covered in this research is limited only from mid management level to staff level. It is assumed that the organization structure is the most recent organization structure as the result of annual meeting on April 2007. The company strategy is assumed already applied clearly. The aim of this research is conducting job analysis that produces job description and job specification and using those outputs in evaluating job worth for every single position as a base for arranging compensation system. By conducting job analysis, job description as well as job specification could be written. The result of job analysis will be the basic data for conducting job evaluation. There are eighteen positions in PT LAPI-ITB that must be evaluated. Using Factor Evaluation System (FES) of U.S. Office of Personnel Management as compensable factors, those eighteen positions is evaluated. Point method is the chosen appropriate method in conducting the job evaluation here. By the completion of this study, the management of PT LAPI-ITB would be able to determine relative job worth in points for each position. The other findings are management should be differentiating each kind of job-especially for staff level-by titling the proper job title based on job nature. This end result could be a basic input for next step in arranging compensation system: determine job structure. Keywords: job analysis, job evaluation, compensation, factor evaluation system ii
EVALUASI JABATAN UNTUK PERANCANGAN STRUKTUR PENGGAJIAN DI PT LAPI ITB Benny Banu Aji 19004010 Tanggal Sidang: 6 Agustus 2007 Tanggal Wisuda: 27 Oktober 2007 Program Sarjana Sekolah Bisnis dan Manajemen Institut Teknologi Bandung, 2007 Pembimbing: Ir. Nurhajati Ma mun, M.Sc. ABSTRAK Menghadapi persaingan global dan dalam rangka mencapai tujuannya, PT LAPI-ITB saat ini sedang berbenah. Sumber daya manusia adalah salah satu aspek penting yang harus menjadi perhatian PT LAPI-ITB. Mengelola dan menarik pegawai-pegawai terbaik adalah jawaban bagi PT LAPI-ITB dalam rangka meningkatkan daya saingnya. Untuk itu, PT LAPI-ITB harus membuat system kompensasi yang baik. Namun, hingga saat ini PT LAPI-ITB bahkan belum memiliki dokumen sistematis mengenai tugas dan nilai jabatan dari setiap jabatannya. PT LAPI-ITB harus melakukan evaluasi jabatan secara sistematis. Batasan penelitian ini adalah bahwa penelitian ini dilakukan mulai dari analisis jabatan hingga evaluasi jabatan dengan hasil berupa nilai relatif jabatan. Sementara itu cakupan penelelitioan dibatasi untuk jabatan mulai dari manajemen tengah hingga jabtan terendah. Manajemen puncak tidak termasuk dalam penelitian. Diasumsikan bahwa struktur organisasi yang digunakan adalah struktur organisasi terbaru sesuai dengan hasil RUPS April 2007 dan semua strategi perusahaan sudah dijalankan dengan baik. Sebagai awal, dilakukan analisis jabatan yang akan menghasilkan uraian jabatan dan persyaratan jabatan. Hasil tersebut akan menjadi dasar dalam melaksanakan evaluasi jabatan untuk menghasilkan nilai jabatan sebagai dasar pembuatan sistem kompensasi. Sebanyak delapan belas jabatan di PT LAPI-ITB dievaluasi dengan menggunakan metode angka (Point Method). Untuk menentukan faktor jabatan sebagai karakteristik jabatan yang dianggap harus dibayar oleh perusahaan, digunakanlah Factor Evaluation System (FES) yang dikembangkan oleh Office of Personnel Management Amerika Serikat. Hasil akhir dari penelitian ini adalah nilai relatif jabatan untuk setiap jabatan di PT LAPI-ITB yang dievaluasi. Nilai relatif jabatan ini bias digunakan sebagai dasar untuk menentukan struktur jabatan yang akan datang sebagai bagian dari perancangan sistem kompensasi perusahaan. Rekomendasi lainnya adalah bahwa sebaiknya manajemen membedakan jabatan dengan memberi nama yang tepat sesuai sifat dan jenisnya. Kata Kunci: analisis jabatan, evaluasi jabatan, kompensasi, factor evaluation system iii
ACKNOWLEDGEMENTS I am truly indebted to guidance provided by my advisor, Ir. Nurhajati Ma mun, M.Sc., who has guided and supported me throughout this process. I would like also thanks to Donald C. Lantu, ST., MBA and Achmad Gazali, ST., MBA for the invaluable help and encouragement during my study. They have always been my mentors and friends. I really appreciated the privilege to be in this relationship. I thank the corporate secretary of PT. LAPI-ITB for the support provided, Wahyu Nugroho H. C., ST. I would also like to extend my appreciation to all the individuals in PT. LAPI-ITB office. To Bang Indra Surya Dinata, Mang Udin, and Mr. Sardjono, the completion of my final year project was also due to all your time and help. To my officemate: Bagus Satria and Wildan Kusuma, also for Gamangers: Aditya Prabowo, Nalendra Widigdya, Harry Nurhadi, Panji Dwi Suntara and Bagas Wicaksono. I really enjoyed the friendship and fun we shared together. Special thanks to Intan Pramesti and Alfin Merancia who shared the ups and downs during the program. Thanks also go to all my friends in School of Business and Management ITB: all member of SBM year 2007 especially to members of People Management Majoring, SBM Bikerz, SBM Muslim Society as well as to Admin staff and Librarians, I strongly feel that any little attention was indeed a big push toward the completion of my final year project. Benny Banu Aji iv
Praise to Allah SWT only with His blessings was this endeavour possible. To my parents, brothers and sisters, I will never forget the continuous love and support you have always given me. To Irma Gamawati, thanks for the love and encouragement.
TABLE OF CONTENT APPROVAL...i ABSTRACT... ii ACKNOWLEDGEMENT... iv DEDICATION... v TABLE OF CONTENT... vi LIST OF FIGURE... viii LIST OF TABLES... ix CHAPTER I: INTRODUCTION... 1 1.1 BACKGROUND... 4 1.2 PROBLEM IDENTIFICATION... 4 1.3 RESEARCH OBJECTIVE... 4 1.4 PURPOSE OF RESEARCH... 5 1.5 LIMITATIONS AND ASSUMPTIONS... 5 1.6 WRITING SYSTEMATIC... 5 CHAPTER II: THEORETICAL FONDATIONS... 7 2.1 JOB ANALYSIS... 7 2.1.1 Definition... 7 2.1.2 Function... 7 2.1.3 Method... 8 2.1.4 Procedures in Conducting Job Analysis... 9 2.1.5 End Result...10 2.2 JOB EVALUATION...12 2.2.1 Definition...12 2.2.2 Function...13 2.2.3 Method...13 2.2.4 Procedures in Conducting Job Evaluation...15 2.2.5 Compensable Factor...16 CHAPTER III: METHODOLOGY...20 3.1 RESEARCH FRAMEWORK...21 3.2 STAGE OF JOB ANALYSIS PREPARATION...21 3.2.1 Colecting Organization Data and Information...21 3.2.2 Determining which Position Will Be Evaluated...21 vi
3.2.3 Preparing Job Analysis Question List...21 3.2.4 Verification of Question List...21 3.2.5 Revision of Question List...22 3.3 STAGE OF INFORMATION GATHERING...22 3.3.1 Interviewing Employees...22 3.3.2 Writing Initial Result...23 3.3.3 Verification of the Initial Result...23 3.3.4 Result of Job Analysis...23 3.4 STAGE OF JOB EVALUATION...23 3.4.1 Conducting Job Evaluation Using Point Method...24 3.4.1.1 Select Compensable Factors...24 3.4.1.2 Determine Factors and Degree...24 3.4.1.3 Determine Points for Factors and Degree...24 3.4.1.4 Determine Total Points for Each Job...24 REFERENCES...26 vii
LIST OF FIGURES 2.1 Uses of Job Analysis Information... 8 2.2 Framework in Determining Internally Aligned Job Structure...12 3.1 Research Framework...21 viii
LIST OF TABLES 1.1 Compensation Administration Checklist... 2 ix