MM 6011 HUMAN CAPITAL

For MID - EXAM / FINAL PROJECT

Abdul Rizal 29116363

Rendy Setiadi Mangunsong 29116550

Master of Business Administration

Bandung Institute of Technology
2017
Introduction
Human resources are the most important resource among the other resources that exist
within an organization. Human capital is often also called intellectual capital is an intangible
asset that is not easy to measure, given that humans have dynamic properties and relatively
change in line with changes in the situation and conditions. To measure the human resources
is certainly needed dimensions and indicators appropriate so that the measurement results more
accurate. Determination of dimensions and indicators as a manifestation of the
operationalization of a variable will greatly determine the validity of the instrument that will
be used to measure the variable of human capital capital.

Attention to human resources or human capital as one of the major production factors for
most companies is often secondary compared with other production factors such as capital,
technology, and money. human capital with all knowledge, ideas, and the innovation it has. In
addition, human capital is also the core of a company. The mention of human capital for human
resources (HR) seems to have not been widely embraced by the business, while the role of HR
to the future of the company is very decisive. HR is a capital that can continue evolving over
time and dynamics of the business environment as well as advancements in science.

in this case we discuss the issue of human capital in bank bukopin. Bank Bukopin was
established on July 10, 1970, previously known as Bank Umum Koperasi Indonesia. In 1989,
the company changed its name to Bank Bukopin. Furthermore, in 1993 the status of the
company changed to a limited liability company. Bank Bukopin focuses on the segment of
UMKMK, currently has grown and developed into a bank that entered the group of middle
banks in Indonesia in terms of assets.
Problem

1. Seniority
According to Wahyudi (2002), seniority defined as the length of service from employee
recognized by the organization, either in the relevant position or in the organization as a whole.
In addition, seniority also reflected understanding of age and work experience of certain
employee.
Seniority still can be found at Bank Bukopins company system. For example, the
seniors bullying to juniors, big working pressure given to junior, and long-time
compensations increasing.

2. Employee Not Speak Up

Several employees at Bank Bukopin stay keep in silence than to question initiatives or
suggest new ideas at work. They become afraid to speak their mind, and keep justifying their
silence with an explanations like Thats the way our culture is- you just dont disagree with
our boss. This can be a bad culture at work, because employees maybe have a valuable
information to company.

3. Uneven Employee Spreading

There was unbalanced employee spreading at Bank Bukopin. Some division have
overload employees, but other division have lack of people to work optimally. It can be affected
to working performance of related division.
Analysis
SWOT Analysis
Below are the SWOT analysis from Bank Bukopin:

STRENGTH WEAKNESS

Good working Seniority culture

environment Fear and futulity of
Well-educated employees to speak up
officer Gap between high and
Well benefits for below level of
employees employees

OPPORTUNITY THREAT

Good and clear Possibility for

company regulations employees to move out
Fast-growth into another company
customers of banking No regeneration for
industry in Indonesia higher position
Fast-growth of Losing competitions in
digital banking banking industry
system

Ishikawa Diagram

Below are the Ishikawa Diagram for each problem stated above:
From the Ishikawa Diagram above, we can conclude the roots for each problems:
1. Seniority
- from the working environment, juniors usually got lot of workload from seniors. They also
got the pressure to finish the job as fast as possible under high pressure.
- the seniority culture was happen for long time in the company. This become a usual system
there. The company also usually give rewards to employees based on how long they have been
working.
- different background also contribute to the seniority, from age and culture difference. This
condition make junior employee shy to express their voice or critics to seniors.
- the last is from difference skills from seniors and juniors. From education background and
training level, the difference was so significant. Seniors have mastered much more training
needed than the juniors. This make seniors feels more superior and more arrogant to employees
below.
2. Employee Not Speak Up
- there was a communication gap from high level employees to the employees below. This
make the employees in lower level do not have initiatives to talk, and reverse. Also, the arrogant
and threat from seniors also make them keep in silence.
- from the system in company itself, there was no resources provided or can be accessed if an
employees have argument, so this feeling of futulity make them silenced.
- company also only heard from high level employees, and not gonna heard from employees
below.
3. Uneven Employee Spreading
- there was a flaws from the recruitment system held annually that makes the company have
overload employees. Also, the employees come in have lack of training needed for certain
division.
- the workload and working hour for each divisions also different. There was high workload
divisions with lack of people, and also there was low workload divisions with lot of people.

Problem Solving
We already know that Bank Bukopin has 3 issues related to human capital. For the first
and second issues of seniority and employee not speak up, we can find a solution from research
conducted by James R Detert and Ethan R Burris entitled "CAN YOUR EMPLOYEES
REALLY SPEAKS FREELY?". Some solutions are: the first Reach out, meaning the leader
must have an active interaction with employees, do not feel exclusive. Frequently asked
questions and discussions with employees, so there is a comfortable atmosphere that supports
employees to speak up. The next is Soften the power, meaning it is modest and necessary so
that leaders can intercommunicate with employees. For example, coffee together, eat together
in a place that is not too "wow" in the usual place employees hang out so would be know and
be familiar with employees. The solution is expected to reduce and even eliminate the gap
between the boss with subordinates and also employees with fellow employees. And for the
employee is also expected to be able to speak up and no longer shy to express what he wanted
to say.

And the next solution to the problem of the Uneven Employee Spreading is: the first to
organize company recruitment based on certain employee needed, not in the regular basis.
The second is to give training for employees so they can be distributed to another division
needed. And the last is spread the employees evenly for each divisions.