G

LAPORAN KERJA PRAKTIK

PERFORMANCE MANAGEMENT – BB184803

ANALYSIS AND FORMATION OF BALANCED SCORECARD

IN PT GMF AeroAsia Tbk

Jacob Rossen M. (02411948007001)

Nur Huda F. R. (09111640000045)
M. Rizki Akbar (09111640000075)
Putri Shally M. (09111740000011)
Emilleo Boby E. (09111740000067)

SUPERVISOR:
DR.oec.HSG. SYARIFA HANOUM, S.T.,M.T., CSEP
NIP. 198001062005012005

DEPARTMENT OF BUSINESS MANAGEMENT

BUSINESS AND MANAGEMENT TECHNOLOGY FACULTY
INSTITUT TEKNOLOGI SEPULUH NOPEMBER
SURABAYA
2019

1
PERFORMANCE MANAGEMENT – BB184803

ANALYSIS AND FORMATION OF BALANCED SCORECARD

IN PT GMF AeroAsia Tbk

Jacob Rossen M. (02411948007001)

Nur Huda F. R. (09111640000045)
M. Rizki Akbar (09111640000075)
Putri Shally M. (09111740000011)
Emilleo Boby E. (09111740000067)

SUPERVISOR:
DR.oec.HSG. SYARIFA HANOUM, S.T.,M.T., CSEP
NIP. 198001062005012005

DEPARTMENT OF BUSINESS MANAGEMENT

BUSINESS AND MANAGEMENT TECHNOLOGY FACULTY
INSTITUT TEKNOLOGI SEPULUH NOPEMBER
SURABAYA
2019
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iii
 PREFACE
Praise the writer for the presence of God Almighty who has bestowed his
blessings, grace and guidance so that he can complete the Performance
Management Report with the title Analysis and Formation of Balanced
Scorecard in PT GMF AeroAsia Tbk in a timely manner.
Don’t forget we express our gratitude to the supervisor who has provided a
lot of guidance and useful input in the process of preparing this great task. The
author also thanks his fellow students and lab assistants who have contributed
directly or indirectly so that this report can be completed at the appointed time.
The author expects suggestions and input from readers for the better
compilation of other reports. Finally, the authors hope that this Performance
Management Report can provide many benefits to all parties in general and to
colleagues in ITS Business Management in particular.

Surabaya, 5 November 2019

4
 TABLE OF CONTENTS
PREFACE.........................................................................................................................4
TABLE OF CONTENTS.................................................................................................5
CHAPTER 1 PRELIMINARY.......................................................................................8
1. 1 Background.......................................................................................................8
1. 2 Research Question..........................................................................................10
1. 3 Objective.........................................................................................................10
1. 4 Benefits............................................................................................................10
1. 5 Research Format............................................................................................11
CHAPTER II LITERATURE REVIEW......................................................................13
2. 1 Key Performance Indicator...........................................................................13
2. 2 Balanced Scorecard........................................................................................13
2. 2. 1 Strategy Map..........................................................................................14
2. 2. 2 Cascading................................................................................................15
2. 3 Vision and Mission.........................................................................................15
2. 4 Performance Management.............................................................................16
2. 4. 1 Performance Measurement....................................................................16
2. 5 The McKinsey 7S Framework.......................................................................17
2. 6 PESTEL Analysis...........................................................................................18
BAB III RESEARCH METHODOLOGY...................................................................21
3. 1 Research Plan.................................................................................................21
3. 2 Research Object..............................................................................................21
3. 3 Research Flow Chart......................................................................................21
3. 3. 1 Collecting Data.......................................................................................22
3. 3. 2 Input Stage..............................................................................................22
3. 3. 3 Matching Stage.......................................................................................22
3. 3. 4 Casecade Stage........................................................................................23
3. 3. 5 Conclusion and Suggestion....................................................................23
CHAPTER IV RESULT AND DISCUSSION.............................................................24
4. 1 Existing Condition..........................................................................................24
4. 1. 1 History of Company...............................................................................24
4. 1. 2 Vision and Mission and Culture of Company......................................24
4. 1. 3 Unit Structure (Human Capital Management Division).....................26
4.1.4 Company Recent Condition.........................................................................27

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 4. 2 External Analysis............................................................................................28
4. 3 Internal Analysis (7s McKinsey)...................................................................29
4. 4 SWOT Analysis..............................................................................................35
4. 5 Recommendation of Balanced Scorecard.....................................................37
4.5.1 Identification of the Company's Strategic Objectives.................................37
4.5.2 Strategy Map PT GMF AeroAsia................................................................38
4.5.3 Balanced Scorecard Company......................................................................39
4.5.4 Aligning Corporate Balance Scorecard in Human Capital Management
Division...................................................................................................................42
CHAPTER V..................................................................................................................49
CONCLUSION AND SUGGESTION..........................................................................49
5.1 Conclusion............................................................................................................49
5.2 Suggestion.............................................................................................................50
REFERENCE.................................................................................................................51

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 Table of Figures (Table)
Table 1 Strategy Objectives PT GMF AeroAsia..............................................................37
Table 2 Strategy Map PT GMF AeroAsia........................................................................39
Table 3 KPI Balanced Scorecard Corporate.....................................................................41
Table 4 Vertical Alignments Matrix.................................................................................43
Table 5 Output, Customer/Stakeholder and Expectation Human Capital Management
Division............................................................................................................................45
Table 6 Figure Action Plan & Strategy Initiatives...........................................................48

Table of Figures (Pictures

Picture 1 The Balanced Scorecard Framework.................................................................14

Picture 2 Strategy Map of BSC........................................................................................15
Picture 3 The McKinsey 7S Model..................................................................................17
Picture 4 PESTEL Analysis Model..................................................................................19
Picture 5 Company Vision...............................................................................................25
Picture 6 Organizational Structure..................................................................................31
Picture 7 Corporate Strategy Map....................................................................................44
Picture 8 Strategy Map Unit.............................................................................................46

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 CHAPTER 1
PRELIMINARY
1. 1 Background
Performance measurement is one of the most important factors for a
company. In the face of competition in the global market, companies must always
be encouraged to continuously improve their performance. The existence of a
measurement makes the condition of the company's business processes can be
known. Balance scorecard (BSC) which is a measurement concept derived
directly from the company's business strategy needs to be monitored continuously,
because it will direct employees towards the key success factors to build company
success. To achieve this success, companies must be motivated to make
continuous improvements both to the performance measurement results and the
performance benchmarks themselves. The performance benchmark in question is
the key performance in the Balance Scorecard.
BSC is a management system mechanism that is able to translate the
organization's vision and strategy into real action on the ground. BSC is one
management tool that has been proven to have helped many companies in
implementing their business strategies. Based on the results of research from
several studies found that in 2001 about 44% of companies around the world have
used BSC with details of 57% of companies in the UK, 46% in the United States,
and as many as 26% in Germany and Austria. In a study by Bain & Company also
showed that of 708 companies on five continents as many as 62% had used the
Balanced Scorecard[ CITATION Hen04 \l 1033 ] . Another survey in the United States
by Fortune magazine estimated that 60% of 1000 companies had tried to use BSC.
A survey of Finnish companies also showed 31% of respondents had several types
of BSC systems and 30% implemented only one type. This is because the
management in the company clearly understands that the activities they do affect
the success of achieving the company's vision and mission and strategy, in other
words that the strategic activities have become the activities of all employees in

8
the company. So they become a unified whole and can’t be separated from a
relationship that occurs in the company.
In the Industrial 4.0 era, there were many companies competing to be
number one in the eyes of their consumers. This also applies to companies
engaged in aircraft maintenance repair and overhaul. In the industry sector, if
viewed from national competition there are four companies. First, PT GMF
AeroAsia Tbk is tasked with maintaining Garuda Indonesia aircraft, ranging from
the light A check, B check, C check, to D check. Some customers of PT GMF
AeroAsia Tbk include Lion Air, Sriwijaya Air, outside airlines such as KLM
Netherlands, Kabo Air Nigeria, PIA Pakistan, and several wide body cargo planes
from abroad. Secondly, Lion Air also has an MRO in Batam specifically for
internal companies only. Third, namely Pelita air, which has an MRO in Pondok
Cabe, serves the majority of the Pelita Air fleet, the majority of Fokker 100 and
narrow body aircraft. Finally, Merpati Maintenance Facilities (MMF) in Surabaya
which is still able to develop and specifically takes care of Fokker 27, F 28, and
some of its clients from the Philippines. MMF also has certification from Europe.
Of the many competitors and the increasingly sophisticated technology available,
it causes companies to make very innovative breakthroughs. This breakthrough
can be in the form of creating a new company strategy, creating an attractive and
unique marketing and promotion system, or it can integrate technology
developments with business processes owned by the company. The point of this is
to be able to compete and compete with other competitors and win the hearts of
MRO service users. The author chose the company PT GMF AeroAsia Tbk
because this company is a company that has long operated in Indonesia for 25
years and certainly has experience in the MRO industry.
PT GMF AeroAsia Tbk (PT Garuda Maintenance Facility AeroAsia Tbk)
is an Indonesian company that specializes in aircraft maintenance repair and
overhaul (MRO). The company serves the Asia-Pacific region and employs more
than 4,000 people, and is based in Tangerang, Indonesia, it has many offices
around the world. It services airplanes of many types and is one of the largest and
leading aircraft maintenance facilities in Asia. What if GMF AeroAsia Company
wants to have an advantage in rapid business competition, it is necessary to have a

9
proper performance measurement system framework, which uses the Balance
Scorecard concept. That is because the Balanced Scorecard has special features in
terms of its comprehensive measurement coverage because besides still
considering financial performance, the Balance Scorecard also considers non-
financial performance, namely customers, internal business processes, and
learning and growth. In addition, the Balance Scorecard not only measures
outcomes but also measures the final determinant activities (drivers).
Therefore, to be able to determine performance, companies can apply the
Balance Scorecard as a strategic measurement tool, such as financial perspective,
customer perspective, internal process business perspective, and learning and
growth perspective. Based on this background, the authors use PT GMF AeroAsia
Tbk as the object of research regarding the use and application of the Balance
Scorecard and make a unit-level strategies from those company, so that PT GMF
AeroAsia Tbk can compete with other competitors in the MRO industry in this era
of Industry 4.0.
1. 2 Research Question
Based on the study of empirical and theoretical problems above, the
research problem formulation are obtained:
1. What is the current condition of PT GMF AeroAsia Tbk?
2. What is the right strategy map for PT GMF AeroAsia Tbk in accordance
with the company's strategy and Balanced Scorecard?
3. How to design unit-level strategies at PT GMF AeroAsia Tbk?
1. 3 Objective
The purpose of this research is as follows:
1. Conduct an analysis of the latest conditions at PT GMF AeroAsia Tbk.
2. Design the right strategy map for PT GMF AeroAsia Tbk in accordance
with the company's strategy and the Balanced Scorecard.
3. Draft unit-level strategy making at PT GMF AeroAsia Tbk.

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 1. 4 Benefits
The benefits to be gained through this research are divided into two,
namely the benefits for the reader and the benefits for PT GMF AeroAsia Tbk.
The following benefits can be provided through this study in accordance with
these two categories.
1. Benefits for Readers
For readers, the results of this study can be used as research material to
analyze the performance of a company by using the Balanced Scorecard (BSC).
The results of this study can also be an opportunity for system development in
performance management for existing activities in the company.
2. Benefits for the Company
For companies, the results of this study can be used as an overview of the
company's performance analysis which can be used as research material for
further research. The results of this study can also be taken into consideration in
determining the strategic steps needed.
1. 5 Research Format
Chapter 1: PRELIMINARY
This chapter contains the background of the research, the formulation of
the research problem, the aims and benefits of the research and the format of the
study.
Chapter 2: LITERATURE REVIEW
This chapter describes the basics of research sourced from theories
obtained through the literature relating to the problem being investigated.
Chapter 3: RESEARCH METHODOLOGY
This chapter describes the procedure steps that will be carried out in
conducting research that contains a research plan, research objects, research flow
diagrams, and the research stage starting from data collection to the conclusions
and suggestions stages.
Chapter 4: RESULT AND DISCUSSION
Presenting an analysis of the object of research that is on aspects of current
conditions, internal and external analysis of corporate objects, corporate
strategies, balanced scorecards applied by the company in general as well as

11
specific home service divisions, key performance indicators on research objects
taken, evaluations, and recommendations.
Chapter 5: CONCLUSIONS AND SUGGESTIONS
Provide conclusions on evaluative research that has been done with a
focus on evaluation and recommendations that answer the problem formulation
then proceed with suggestions for the research object.

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 CHAPTER II
LITERATURE REVIEW
In this chapter will explain the basis of the theories that will supporting the
analysis of this research. The theories that will be used include KPI, BSC, Vision
and Mision, Performance Management, McKinsey Framework, and PESTEL
Analysis.
2. 1 Key Performance Indicator
According to Banerjee and Buoti (2012), Key Performance Indicator (KPI)
is a scale and quantitative measure used to evaluate organizational performance in
achieving organizational targets. Key Performance Indicator is also used to
determine measurable objectives, read the trends, and support decision making.
Another understanding was conveyed by Warren (2011) who said that KPI is a
measurement that evaluates how an organization executes its strategic vision. It
refers to how the organizational strategy is interactively integrated in the overall
organizational strategy.
One of the most important but often overlooked aspects that KPI is the
form of communication. Just like the other forms of communication, KPI provides
clear, concise, and relevant information so that easily to be absorbed and acted
upon. In developing and formulating strategies for KPI the organization must start
from understanding the goals, what plan to achieve them, and who acts on that
information. This must be an iterative process that involves feedback from
analysts and agencies, so that when the mission is revealed the organization can
understand which business processes must be measured by KPI and to whom the
information must be shared.
2. 2 Balanced Scorecard
According to Kaplan and Norton (1997), Balanced Scorecard (BSC) is an
alternative method used by organizations or companies to measure their
performance more comprehensively, not only limited to financial performance,
but extends to non-financial performance, such as customer, internal business
process, and learning and growth. Kaplan and Norton first identified and
implemented BSC as a performance measurement tool aimed at presenting key

13
factors for the success of a business and facilitating the alignment of business
operation with the right strategy.

The BSC concept that has been widely adopted and often used to
evaluating organizational performance through four perspectives, which are
financial perspective, customer perspective, internal business process perspective,
and learning and growth perspective. This perspectives relates to four
management functions in organizations, which are accounting and finance,
marketing, operational and value chains, and human resources. The important
principle of BSC is balancing financial standars with non-financial standards.
2. 2. 1 Strategy Map
Strategy Map is a diagram that shows the vision, mission, and organization
strategy implemented in daily activities in each business unit using KPI. The
organizations can clearly see the linkages between vision, mission, and KPI by
using the strategy map. It’s created by explicitly connecting organizational
strategic objectives with each KPI grouped into the four perspectives of the BSC.
This concept was introduced in 2001, which is as a transformation of the BSC
from a performance management system to a strategic management system.

14
 Picture 2 Strategy Map of BSC
The strategies made refers to the strategy objectives of organizations
according to four perspectives of BSC. Each perspective has an interconnected
strategy both in one perspective or with the strategies contained in another
perspective. The arrows in the strategy map shows cause and effect relationship.
2. 2. 2 Cascading
Cascading The Balanced Scorecard is translate the corporate scorecard
down to the first business units, support or departments units, and then teams or
individuals. The end result focus on all levels of the organizations. Scorecard
should be used to improve accountability through objective and performance
measure and desired employee behaviors should be incentivized and rewards.
Cascading is a form of a development of the BSC at each level of the
organization to generalize and integrate the creation of different values. Niven
(2006) said that BSC development will form a common vision at the employee to
executive level. Cascading also provides direction for all employees of the
organization in providing information on how they can contribute to achieving the
company’s financial performance targets and performance on an ongoing basis.
2. 3 Vision and Mission
According to Kotler as quoted by Nawawi (2000:122), Vision is a
statement of organizational goals expressed in the products and serviced offered,

15
needs that can be adressed, the group of people served, the values obtained and
aspirations, and aspirations and ideals of the future. According to Wheelen as
quoted by Wibisono (2006:46), Mission is a series of sentences stating the
purpose or reason for the existence of an organization that contains what is
provided by the company to the public, both in the form of products or services.
Vision and Mission are very important for the survival of an organization,
especially in implementing a performance management system. Thus strategic
planning is used to realize the vision and mission of the organization and divide
up the resources needed to achieve it. It can be said that an organization initially
has an ideal or final goals to be achieved in long term called vision, then to realize
the vision of the organization that has been determined the organization
formulates general efforts to be called mission. Organizations formulates specific
efforts that are felt to be the most effective and efficient way to achieve the ideals
of the organization called strategic planning.
2. 4 Performance Management
According to Anwar Prabu Mangkunegara (2006:67), Performance is
work of quality and quantity achieved by an employee in carrying out their duties
in accordance with the responsibilities given to him. Another understanding was
conveyed by Donnelly, Gibson, and Ivancevich (1994), Performance is the level
of success in carrying out the task and the ability to achieve the goals set. It stated
as good and successful if the desired goals can be achieved well.
Performance Management is a strategic and integrated approach to
delivering successful results in organizations by increasing performance and
developing team and individual abilities (Armstrong and Baron, 1998). According
to Dessler (2003:322), Performance Management is the process of consolidating
goal setting, evaluation, and performance development into one single joint
system which aims to ensure employee performance support the company’s
strategic goals.
2. 4. 1 Performance Measurement
According to Anderson and Clancy (1991), Performance Measurement is
feedback from the accountant to management that provides information about
how well the action represent the plans. It also identifies where managers may

16
need to make corrections or adjustments in future planning and controlling
activities. Another undertsanding was conveyed by Anthony, Banker, Kaplan, and
Young (1997) when they said that performance management is the activity of
measuring the performance of an activity or the entire value chain.
Lynch and Cross (1993) mentions the benefits of performance
measurement as follows:
1. Track performance against customer expectations so that it will bring the
company closer to its customers and get all people in the organization
involved in efforts to satisfy customers.
2. Identifying various wastes while encouraging efforts to reduce waste
(deduction of waste).
3. Making a strategic goal that is usually still vague becomes more concrete
so that it accelerates the process of organizational learning.
2. 5 The McKinsey 7S Framework
According to Hanafizadeh (2011), McKinsey 7S Framework is a tool used
to analyze the internal aspects of a company’s organization using seven elements,
which are strategy, structure, system, share values, style, staff, and skills. The
seven elements have a dependent relationship with each other. If there’s a change
in one element it will affect the other elements. The McKinsey 7S Model can be
applied to a variety of situations and is an excellent tool in designing the shape of
an organization, improving organizational performance, testing changes in the
organization, aligning departments and processes during acquisitions and mergers
and determining the best strategy for the organization.

Picture 3 The McKinsey 7S Model

17
 The seven elements are divided into two big groups, hard and soft. The
hard group includes strategy, structure, and system. This three elements are
categorized as hard group because they’re easier to identify and can be directly
influenced by management. While the other elements named as soft group, which
are includes share values, style, staff, and skills. This four elements categorized as
soft group because they’re intangible and relatively difficult to pin down and are
strongly influenced by the culture of an organization. The alignment of the seven
elements is a key factor for a company’s success. The following is an explanation
of each element:
1. Strategy
Plan for building and maintaining a competitive advantage over its
competitors.
2. Structure
How the company is organized, how departments or teams are structured,
who reports to whom.
3. System
Daily activities and procedures to get the job done.
4. Share Values
Core values of the organization, corporate culture, general work ethic.
5. Style
Style of leadership adopted.
6. Staff
The employees that needed and their general capabilities.
7. Skills
Actuall skills or competencies of the organization’s employee.
2. 6 PESTEL Analysis
PESTEL Analysis is a framework tool used by marketers to analyse and
monitor the macro-environmental factors that have an impact on an organization.
According to Ward and Preppard (2002), PESTEL Analysis is an analysis of
business external environmental factors covering the fields of politics and law,
economics, social, environment, and technology.

18
 Picture 4 PESTEL Analysis Model
PESTEL Analysis direction is a framework for assesing a situation and
assesing a strategy or position, company direction, marketing plan or idea. This
analysis is carried out to identify new opportunities or threats for the company.
PESTEL is divided into several factors, which are:
1. Political
Government intervenses in economy. Often have an impact on
organization business. Organization need to able to respond to the current
and anticipated future legislation, and adjust their marketing policy.
Factors that can include are government policy, foreign trade policy, tax
policy, labour law, and so on.
2. Economic
Have a significant impact on organization business and their profitable.
Macro-economical factors deal with the management demandin any given
company, while the micro-economical factors are all about the way people
spend their incomes. Factors that can include are economic growth,
interest rate, exchange rate, inflation, and so on.
3. Social
Areas that involve the shared belief and attitudes of the population. Have a
direct effect on marketers understand and drives customers. Factors that

19
 can include are population growth, age distribution, health, career, and so
on.
4. Technological
Technological can be fast to change the landscape of marketers and
customers, and have impact to market their product. It affect the marketing
and management in three distinct ways, which are new ways of producing
goods and services, new ways of distributing goods and services, and new
ways of communicating with target markets.
5. Environmental
Have become important due to the increasing scarcity of raw materials,
polution targets, doing business as an ethical and sustainable company,
carbon footprints targets set by government. Marketers are facing with
those factors issue. More consumers are demanding the products they buy
are sourced ethically.
6. Legal
If organization trades globally it becomes very tricky area to get rich as
each country has its own set of regulations and rules, so need to know what legal
and ilegal in order to trade successfully. Factors that can include are health and
safety, advertising standards, consumer rights, product labelling and safety, and so
on.

20
 BAB III
RESEARCH METHODOLOGY
This chapter will explain the procedure steps that will be carried out in
conducting research that contains a research plan, research objects, research flow
diagrams, and the research stage starting from data collection to the conclusions
and suggestions stages.
3. 1 Research Plan
The research in the PT GMF AeroAsia case study uses analysis by
analyzing primary and secondary data. To determine and formulate an appropriate
strategy design, the authors will conduct several stages of research, namely the
initial stage which is the data collection stage, the input stage, the matching stage,
and finally the corporate cascading stage BSC to the business unit.
3. 2 Research Object
In this study, the authors take PT GMF AeroAsia case study as an object
of research.
3. 3 Research Flow Chart
The following is a flow chart in this study.

21
 3. 3. 1 Collecting Data
This data collection stage is the first step or step in starting research. This
data collection is carried out in-depth analysis of primary data and secondary data.
Primary data were obtained from conducting interviews with PT GMF AeroAsia
employees. Secondary data collection is done by using financial statement data
and annual reports from PT GMF AeroAsia.
3. 3. 2 Input Stage
1. PESTEL Analysis
Three-step approach that can use to conduct powerful analyses:
Step 1 Know the categories
Step 2
Step 3
2. 7 Mc Kinsey
Step 1 Identify the areas that are not effectively aligned
Step 2 Determine the optimal organization design
Step 3 Decide where and what changes should be made
Step 4 Make the necessary changes
Step 5. Continuously review the 7s
3. 3. 3 Matching Stage
Balanced Scorecard (BSC) is a visual tool used to measure the
effectiveness of an activity against the strategic plans of a company. Balanced
scorecards are often used during strategic planning to make sure the company's
efforts are aligned with overall strategy and vision.
 Determine the vision. The company's main vision belongs in the center of
a balanced scorecard. Whichever part of your company look at, you should
always keep this goal or vision in mind.
 Add perspectives. To create a traditional balanced scorecard, place the four
perspectives in a ring around the central vision.
 Add objectives and measures. Within each perspective define specific
objectives, measures, targets, and initiatives.

22
  Connect each piece. Link each perspective to the others using arrows to
indicate that they're all interconnected when it comes to achieving the
company's vision.
 Share and communicate. Use the balanced scorecard to demonstrate how
different initiatives and short-term actions are contributing to the long-
term strategic objectives of the company.
3. 3. 4 Casecade Stage
Casecade corporate BSC to business unit:
 Understand the unit's mission and identify relevant corporate strategic
objectives
 Identify the output units, stakeholders, and expectations
 Formulate the unit's strategic objectives
 Arrange a strategy map unit
 Formulation of performance indicators and targets
 Establish strategic initiatives
3. 3. 5 Conclusion and Suggestion
The last step is to draw conclusions from this research and provide advice
to PT GMF AeroAsia, which is the object of observation regarding the
performance management to achieve the objectives to be achieved by the
company.

23
 CHAPTER IV
RESULT AND DISCUSSION
4. 1 Existing Condition
4. 1. 1 History of Company
Starting from the Maintenance & Engineering (M & E) Division of
Garuda Indonesia in 1984 which then developed into an independent business
unit. In 1998, the M & E Division was transformed into a Strategic Business Unit
of Garuda Maintenance Facility (SBU-GMF) responsible for all Garuda
Indonesia’s fleet to enable Garuda Indonesia to focus on its core business as an
airline operator.
The ability of GMF is increasingly recognized by its success in achieving
various national and international certifications, including DKU-PPU (Director of
Airworthiness and Aircraft Operations), FAA (Federal Aviation and
Administration) and EASA (European Aviation Safety Agency). In 2002, Garuda
Indonesia spun off the SBU-GMF to become a subsidiary of PT Garuda
Maintenance Facility Aero Asia by Deed of Establishment No. 93 dated April 26,
2002 by Notary Arry Soepratno, S.H. and amended the Articles of Association as
evident in the Deed of Resolution of the Shareholders Number 47 dated February
17, 2015. GMF is able to carry out maintenance and repair of aircraft in an
integrated manner known as Maintenance, Repair and Overhaul (MRO) business
from Line Maintenance to overhaul, maintenance and repair of machinery and
components, modification process and cabin refurbishment. Business
development continues and in 2012, GMF began providing Industrial Gas Turbine
Engine (IGTE) maintenance services as well as maintenance of Industrial
Generator
Overhaul, which is a new source of revenue. In addition, the beginning of
the bookkeeping era in English with the currency of United States Dollar (USD).
In 2013, GMF added two new business fields namely SBU Engine Maintenance
and SBU IGTE and the construction of Hangar 4.
4. 1. 2 Vision and Mission and Culture of Company
PT GMF Aeroasia Vision is to be the top 10 maintenance, repair, and
operations (MRO) in the world.

24
 Picture 5 Company Vision
The higly competitive landscape in airlane industry and its mission-critical
nature have inspired GMF “to provide integrated and reliable aircraft maintenance
solutions in contribution to create a safer sky” -a mission that is inherent to its
overall corporate governance and management practices.
PT GMF AeroAsia Mission is to provide integrated & reliable aircraft
maintenance solutions for a safer sky and secured quality of life of mankind.
Developing aircraft maintenance system, including the schedule, materials,
production, and strict standardization, to ensure airworthiness of each aircraft with
a competitive price. Developing employees’ technical expertise and
professionalism and raising the bar on the quality of the facilities and equipment
to ensure the customers have the best alternative for the utilization of the airplane,
with works performed by professionals with high morals and strong work ethics.
Encouraging teamwork and consistently implementing occupational safety
standard to ensure overall safety and optimum work. GMF fully appreciates and
realizes unique contribution from each individual and strives for building an
atmosphere independence and freedom to contribute inputs and feedback in a in a
polite and civilized manner.

25
 4. 1. 3 Unit Structure (Human Capital Management Division)
The total number of GMF’s employees in 2017 is 5,011. There is an
increase of 8.8% as compared to the total number of employees in 2016 which
was 4,604. The increase can be attributed to the Company’s recruitment efforts to
fulfil the needs of its growing business. Below is the composition of the
Company’s employees based on job levels, education levels, employment status,
work locations, gender, and age. In order to strengthen the Company’s workforce
competences at present and in the future, GMF has conducted various
development programs. These programs are the responsibility of the Human
Capital Management and the Learning Services Unit. The aim of these
development programs is to improve Company’s overall productivity.
Aim of the development program. The improvement of employees’
qualification has been done in the Annual Training Program 2017. The program is
based on the Personal Competency Manual (PCM) and GMF Career System that
is in line with the capability and capacity targets as set in the Company’s long
term plan (RJPP). The training program includes technical training and
Leadership & Managerial
Several technical training has been conducted in 2017, including:
a) Orientation training classes have been done 10 times with 671 number of
participants. The goal is to develop employees’ basic knowledge about the
Company.
b) Basic competencies training classes have been done 379 times with 7.264
number of participants. The goal is to develop employees’ basic knowledge
and skills in order to do their work.
c) Job competencies training classes have been done 52 times with 944 number
of participants. The goal is to develop employees’ knowledge and skills
based on their job role and responsibility.
d) Continuation training classes have been done 197 times with 2.649 number
of participants. The goal is to periodically renew employees’ knowledge and
skills.

26
 e) Task competencies training classes have been done 83 times with 1.248
number of participants. The goal is to develop employees’ specific
knowledge and skills based on their tasks and functions.
Leadership & Managerial Training is based on GMF Leadership Academy
development model. It is done through Leadership & Managerial Development
Program (LMDP) which includes, among others, formal master degree program,
Emerging Leadership Program (ELP), Operational Leadership Program (OLP),
Strategic Leadership Program (SLP), Certified Business Management (CBM),
MRO Finance, and MRO Management. Trainings for leaders that have been done
up to the end of 2017
are as follows:
a) Training MRO Finance with 6 number of batch and 107 total number of
participants.
b) Training MRO Management with 6 number of batch and 115 total number
of participants.
c) Training ELP with 6 number of batch and 118 total number of participants.
d) Training OLP with 2 number of batch and 38 total number of participants.
e) CBM Modul Human Resource Management Programme with 1 number of
batch and 6 total number of participants. In 2017, the number of employees
that received training was 14.789 persons, a 0,92% increase from the
number of employees that received training in 2016. The expense that was
used for employees’ training program in 2017 increases to Rp16.095,685
million from Rp 14.176,35 million in 2016. This increase was mainly
caused by. The complete elaboration of the employees’ report can be found
on Review of Support Functions section.
4.1.4 Company Recent Condition
GMF's plan to expand their business in the ASEAN region and the Middle
East. Their business expansion is aimed at making GMF able to reach the top
10 best MRO companies in the world. Middle East as the main gate of long
distance transit and world-class competition is the right choice to get lots of
money from world-class travelers. They are optimistic that this expansion can
be realized and run well in 2017 so that the target to become the top 10 MRO

27
 companies in 2020 can be achieved. This achievement will of course only
provide added value not only to the progress of the Company and its
stakeholders, but also to achieving our offering for Indonesia's economic
development. To achieve its vision, mission and targets, GMF formulates
annual strategies and long-term strategies set forth in the Company’s Work
Plan and Budget (RKAP) and the Company Long Term Plan (RJPP).
4. 2 External Analysis
The following is the result of an external analysis from PT Garuda
Maintenance Facility using PESTEL Analysis.
1. Politics
The political situation situation in a country can affect the procurement of
flight routes to that country. This can add to the cost and travel time of the trip,
because it has to go through a different and long route. Other than that, Garuda is
a full member of SkyTeam’s Global Alliance, so they can do several important
things in bilateral cooperation, such as cooperating with global partners to build
Hangar in Batam and Surabaya, general aviation maintenance, and approval of
aircraft maintenance to conduct maintenance of airline aircraft in China.
2. Economics
Domestic and international flight competition is considered to be tighter
due to the incessant growth of the Low Cost Carrier (LCC). This caused a shift in
many passengers to the airlines that provided cheaper ticket prices. In addition,
depreciation of the apparent value of the USD affect the company. The majority
of flight routes are obtained in Rupiah or IDR, but in terms of financing it’s
dominated in USD. The improving national economic condition provides a
positive impact on the company’s overall operations. Company managed to record
an increase in asset growth. The high level of aviation distribution in the Asia
Pacific region is a great opportunity for company. The aspect of aircraft
maintenance becomes fundamental requirement and plays an important role for
the airline company in maintaining the operational quality and safety of its
commercial aircraft.
3. Social

28
 Company CSR activities cover a number of things, such as environmental
conservation programs, employment programs, occupational health and safety
programs, social and community development programs, and programs related to
customer responsibility. Company believes that the business provides benefits or
great value for the nation and the people of Indonesia in general if managed
wisely, in accordance with the good corporate governance principles, taking into
account the sustainability aspects.
4. Technological
PT GMF AeroAsia has a strategy called Total Solution Provider where all
the needs related to maintenance and repairs can be provided by the company, so
that all problems faced by customers can be resolved quickly, precisely, and
easily. Company also developed value added to the strategies, such as engineering
and modification services.
5. Environmental
Company was named as one of the winner of Indonesian Green Company
Award 2017, because of the company’s firm commitment and practice that takes
into account the triple bottom line aspects. Company believes that the company
will continue to provide greater benefits and contribution to all stakeholders in
line with the concept of triple bottom line (profit, people, planet).
6. Legal
Companies has been certified and approval from 29 countries authorities
for aircraft maintenance. In the MRO industry, company has shown considerable
operational performance boasts by providing quality international certified aircraft
maintenance to customers. Companies is complying with OJK regulation to hold
Initial Public Offering (IPO), so the company can legally make an offer and invest
in shares.
4. 3 Internal Analysis (7s McKinsey)
Analysis of the company's internal conditions is done by the 7s McKinsey
method, namely:
a. Strategy (Strong)
PT GMF AeroAsia has several strategies implemented to fulfil its vision
and mission. These strategies are formulated based on the company's internal and

29
external conditions which support the existence of the vision and mission. PT
GMF AeroAsia has a long-term strategic plan contained in its vision of To Be the
Top 10 Maintenance, Repair, and Operations (MRO) in The World. For this
reason, PT GMF AeroAsia infrastructure to increase their competitive advantage
in their maintenance, repair and operations systems, namely by realizing PT GMF
Aeroasia Mission is to provide integrated & reliable aircraft maintenance
solutions for safer sky and guaranteed quality of life of mankind. Developing
aircraft maintenance systems, including the schedule, materials, production, and
strict standardization, to ensure airworthiness of each aircraft with a competitive
price. Also, GMF AeroAsia have to maximize return to stakeholder in order to
make the company sustainable, and leveraging partnership and portfolio manager.
Developing employees' technical expertise and professionalism and raising the bar
on the quality of the facilities and equipment to ensure the customers have the best
alternative for the utilization of the airplane, with works performed by
professionals with high morals and strong work ethics. Enhance customer solution
and Encouraging teamwork and consistently implementing occupational safety
standards to ensure overall safety and optimum work. Strategies that have been
implemented by PT. GMF AA are:
1. Implement 3 in 1 strategies, including increasing sales, productivity, and
creating high work value.
2. Increase the leadership talents of educated and specialist specialists.
3. Streamlining functions through regional procurement centers and
component integration.
4. Optimizing marketing through counter trading, uniting components and
developing a non-Garuda portfolio.
5. Conducting In-house Training according to your need

30
b. Structure

Picture 6 Organizational Structure

31
 Under this structure, employees are grouped into the same departments
based on similarity in their skill sets, tasks, and accountabilities. This allows
effective communications between people within a department and thus leads to
an efficient decision-making process. This company are good examples of a
functional structure. Businesses with functional or divisional structures tend to use
straightforward modeling. Out of the four organizational structures, functional
structures are the easiest to build financial and forecasting models on, because of
the simplicity of the companies’ departmental structure. An FP&A analyst can
easily gather data, perform analysis and realize variances, identify data trends, and
forecast future performance for each department.
Sometimes, an FP&A analyst may drill down to as deep as each employee
when collecting information for detailed analysis. Because all employees are in a
single reporting relationship in a functional or divisional structure, the analyst can
easily track individual performance, working hours, and expenditures. This helps
in performing precise analysis on departmental costs, earnings, and productivity,
without simply making a lot of assumptions.
c. System
The system can be interpreted as all matters relating to procedures
contained in the company. A system varies depending on the needs of the
company. The system implemented at PT GMF AeroAsia is more concerned with
consumer needs, better coordination between divisions or departments,
responsiveness and flexibility, development in general management skills, easier
management, more full concentration, divisional organizational structure is
suitable for fast changing environment. Consistent excellence product and service,
enhance process for effective QCD. In implementing the system, GMF AeroAsia
often conducts training Several technical training has been conducted in 2017,
including:
a) Orientation training classes have been done 10 times with 671 number of
participants. The goal is to develop employees’ basic knowledge about the
Company.

32
 b) Basic competencies training classes have been done 379 times with 7.264
number of participants. The goal is to develop employees’ basic knowledge
and skills in order to do their work.
c) Job competencies training classes have been done 52 times with 944 number
of participants. The goal is to develop employees’ knowledge and skills
based on their job role and responsibility.
d) Continuation training classes have been done 197 times with 2.649 number
of participants. The goal is to periodically renew employees’ knowledge and
skills.
e) Task competencies training classes have been done 83 times with 1.248
number of participants. The goal is to develop employees’ specific
knowledge and skills based on their tasks and functions.
d. Style
The leadership style adopted at PT GMF AeroAsia refers to every existing
corporate culture. Leaders can communicate important decisions of the company
and ensure that the company's culture has utilized a variety of ideas / ideas,
culture and thoughts from the workforce. They are leading organization capital
enhancement. So that by implementing company culture in a leadership style, it is
expected to close the gap between leaders and also workers in GMF AeroAsia.
GMF service carries a total solution full of hospitality - from marketing people,
sales, to the lower ranks. All elements in GMF could be moved thanks to the
delegation's leadership style. In addition to believing in subordinates, going down
also becomes the power he leads. For his achievements, Iwan was rewarded with
the Industry Marketing Champion - Spare Parts & Services Sector in the Marketer
of the Year 2018
e. Staff
In terms of workforce capacity and capability requirements, PT GMF
AeroAsia considers various decisions including; business demands, level of
competition, agility (optimization) of HR optimization, as well as benchmarking
workload and targets with fellow positions at other GMF AeroAsia. The authority
of PT GMF AeroAsia in managing, managing and organizing the workforce is
adjusted to the achievement of the organization's strategic objectives. In facing the

33
changing needs of capabilities and workforce capacity due to business
transformation, PT GMF AeroAsia will conduct an evaluation process whether
human resource capacity is sufficient, and if internally possible, the existing
workforce is given training for knowledge transformation.
To accelerate people development, manage the workforce, workforce
needs, organizational needs, and ensure the continuity of PT GMF AeroAsia
implement in a way; provide benefits to employees according to company
policies, build a work environment that supports productivity, conduct
assessments and coaching, and apply counseling mechanisms to Workers to
understand Workforce needs. In addition, regular training, i.e. Trainings for
leaders that have been done up to the end of 2017 are as follows:
a) Training MRO Finance with 6 number of batch and 107 total number of
participants.
b) Training MRO Management with 6 number of batch and 115 total number
of participants.
c) Training ELP with 6 number of batch and 118 total number of participants.
d) Training OLP with 2 number of batch and 38 total number of participants.
CBM Module Human Resource Management Programme with 1 number
of batch and 6 total number of participants. In 2017, the number of employees that
received training was 14.789 persons, a 0,92% increase from the number of
employees that received training in 2016. The expense that was used for
employees’ training program in 2017 increases to Rp 16.095,685 million from Rp
14.176,35 million in 2016. This increase was mainly caused by. The complete
elaboration of the employees’ report can be found on Review of Support
Functions section.
f. Skill
In meeting its long-term strategic plan, PT GMF AeroAsia has a strong
commitment in carrying out their infrastructure transformation. For this reason,
skills and adequate numbers of staff are also needed. This means that with this
business transformation, PT GMF AeroAsia will experience changes in the
capability and capacity needs of its workforce. Faced with this, PT GMF
AeroAsia will conduct a process of evaluating whether human resource capacity is

34
sufficient, if it is not sufficient then it is possible for new recruitment or holding
partners. This means that the staff / existing are ready with the business
transformation in the company and can apply their new skills as well as possible
for the continuity of the company's business.
g. Shared Value
PT GMF AeroAsia has a core value called "3S", including Solid, Speed,
and Smart. This core value is the basis of how the company and employees work,
namely to prioritize synergy to achieve a shared vision with mutual trust, initiative
in working with speed in making decisions and serving consumers, understanding
goals correctly and being able to set priorities in work and find new solutions in
increase the company's competitive advantage. The core values that are applied
aim to build open communication between leaders and staff. Besides that, with the
core value, companies must work smart by reading opportunities from digital
lifestyle in the community while looking for new solutions to increase the
company's competitive advantage, so that PT GMF AeroAsia can continue to
provide innovative services for its users. Encouraging teamwork and consistently
implementing occupational safety standards to ensure overall safety and optimum
work. GMF fully appreciates and realizes unique contributions from each
individual and strives for building an atmosphere of independence and freedom to
contribute input and feedback in polite and civilized manner.
4. 4 SWOT Analysis
Strength
a. Leading aircraft maintenance provider
b. The main supplier of spare parts, and maintenance of Garuda Indonesia
aircraft
c. More competitive pricing and product bundling policies
d. Strong commitment to carry out infrastructure transformation to increase
competitive advantage
e. Having highly competent human resources thanks to the implementation
of excellent training
f. Good Leadership Style –Proved by achievement

35
 Weakness
a. Low stock prices
b. GMF AeroAsia's profit income is not too much
c. Rely on other companies in the supply of manufacturing systems from the
analysis above can be formulated opportunities and threats that will be
faced by the company.
Opportunities
a. Continous improvement in management, organization, systems, products,
service, expertise and professionalism of workers to be able to sustain and
compete in the national and international aviation industry and solve the
customers problems with several solution as quickly, precisely, and easily.
b. Indonesia has become one of the fastest growing air aviation markets.
Aviation traffics is still relatively small compared to the population, thus
saving the potential for a large increase in aviation service users, especially
in Asia Pacific Region.
c. As a member of SkyTeam Global Airline Alliance is a good thing for the
company to increasing the range and access of flying to various cross-border
destnations and expanding the scope of the international market. Legally to
do investment and IPO.
Threats
a. Increased capacity, reduced ticket prices, Low Cost Carrier, and more new
flight routes provided by other airlines and competitors.
b. Foreign airlines that penetrate the market to Indonesia.
c. Natural disasters and other inevitable natural factors.

36
 4. 5 Recommendation of Balanced Scorecard
4.5.1 Identification of the Company's Strategic Objectives
After conducting internal and external analysis, the authors then formulate
strategic objectives at PT GMF AeroAsia. The following are the company's
strategic objectives listed in table 4.1.
Table 1 Strategy Objectives PT GMF AeroAsia
PERSPECTIVES STRATEGY OBJECTIVES
FINANCIAL  Maximize return to shareholder
 Enhance customer solution
CUSTOMER  Consistent excellence product and
service
 Develop product and expand capacity
INTERNAL BUSINESS  Leveraging partnership and portfolio
PROCESS management
 Enhance processes for effective QCD
 Accelerate people development
LEARNING AND  Leading organization capital
GROWTH enhancement
 Reliable ICT MRO
Strategic objectives at the corporate level have been prepared based on the
company's vision and mission, then also based on internal and external analysis of
the company. These strategic objectives are grouped into four perspectives,
namely financial, customer, internal business process and learning and growth
perspectives. The strategic objective that have been prepared also pay attention to
the values to be achieved by the company contained in the vision and mission.
There is one strategic objective in the financial perspective, two strategic
objectives in the customer perspective, three strategic objectives in the internal
business process perspective, and three strategic objectives in the learning and
growth perspective.
On the financial perspective, the strategic objectives has been prepared is
maximize the return to shareholders. In this strategy map, the financial perspective
is at the top because most companies are established with the aim to prosper the

37
shareholders they have, so that all business processes of the company will have an
impact on revenue growth on the financial perspective. The objectives of this
financial strategy cannot stand alone because it depends on the other three
perspectives.
Furthermore, the perspective under the financial perspective is the
customer perspective. This perspective is a perspective that is quite important
because it is very influential on the financial perspective. This customer is needed
by the company for the continuity of the company's business processes in the
fields of manufacturing, services, and projects. In order to achieve the objectives
in the financial perspective, the company must be able to enhance customer
solutions and consistent product and service excellence. If the customer is
satisfied, then the customer will be moved to reuse the company's services. This is
to increase the number of customers and increase profits, the company also
expanded its market reach.
Under the customer perspective is the internal business process
perspective, where in this perspective the focus is on the company's internal
conditions. Objective strategies from this perspective are three strategies
formulated, namely developing products and expand capacity, leveraging
partnerships and portfolio management, and enhancing processes for effective
QCD.
The last perspective is the learning and growth perspective. This
perspective looks at how a company can develop existing resources for the
company's growth process. There are three strategic objectives that the writer has
formulated in this perspective, namely the first accelerate people development.
Along with the development of increasingly sophisticated and rapid technology,
PT GMF AeroAsia overcomes this by accustoming its employees to continue to
hone their skills and develop them. Second is the leading organization capital
enhancement, and the third is Reliable ICT MRO.
4.5.2 Strategy Map PT GMF AeroAsia
After the identification of the company's strategic objectives is done, the
next is to identify the company's strategy map has been prepared. Strategy map is
a diagrammatic diagram that illustrates the relationship between the four

38
perspectives in the BSC where all four perspectives have their respective goals
and have a causal relationship.
Table 2 Strategy Map PT GMF AeroAsia
STRATEGY MAP
FINANCIAL
Maximize Return to
Shareholder
CUSTOMER
INTERNAL Consistent
Enhance Customer
BUSINESS Excellence Product
Solution
Develop Leveraging Enhance
and Service
PROCESS Product and Partnership and Processes for
LEARNING Expand Portfolio Effective
AND GROWTH Capacity Management
Leading QCD
Accelerate Organization Reliable
People Capital ICT MRO
Development Enhancemen
t

4.5.3 Balanced Scorecard Company

In this section the author will provide a company-level balanced scorecard
recommendation that includes the company level Key Performance Index (KPI)
and measurement (measurement) listed in table 4. 3. After analyzing and
formulating the strategic goals contained in the strategy map, the authors then
formulate and analyze any KPIs that will be included in the company-level
balanced scorecard. There are a total of 12 KPIs that the authors have formulated,
including three KPI from financial perspective, two KPI from customers'
perspective KPI, four KPI from internal business process perspective, and three
KPI from learning and growth perspective. Next is to weight each KPI. The
author formulates a balanced scorecard including KPI together with a speaker at
PT GMF AeroAsia, where each strategic objective is given measurement
indicators, weights and targets that must be achieved by the company.

39
 Table 3 KPI Balanced Scorecard Corporate

Perspective Strategies Objective KPI Weight Target

% of revenue 15% 424 Million USD
Financial Maximize return to shareholder % of net profit 20% 58 Million USD
% of cash ratio 10% 5%
Enhance customer solution % of customer satisfaction index 5% 4.5%
Customer
% of customer SLA fullfillment 10% 100%
Consistent excellence product and service
% of Capability development and
Develop product and expand capacity 7% 100%
Internal capacity expansion
Leveraging partnership and portfolio
Business % of strategy partnership 7% 5%
management
Process
% of continous improvement 6% 100%
Enhance processes for effective QCD
% of compliance index 5% 100%
Accelerate people development % of human capital readiness 5% 100%
Learning and Leading organization capital enhancement % of organization capital readiness 5% 100%
Growth
Reliable ICT MRO % of information capital readiness 5% 100%

40
4.5.4 Aligning Corporate Balance Scorecard in Human Capital Management
Division
The Human Capital Management Division is a division that is directly
related to employees and is an important key for the company in improving
company performance through employee competence. The limitation in alignment
is that the division does not have a unit mission so that in the preparation of cause
and effect relationships the author only considers corporate strategic goals and
expectations of key stakeholders.
In this section there will be alignment between the corporate strategy
resulting from the writer's proposal and the Human Capital Management Division.
This alignment is done with the aim that every activity carried out by the Human
Capital Management Division can help the realization of the strategy of the
corporate strategy of PT GMF AeroAsia, as well as to make direction for the
division in knowing which activities should be prioritized and linear with the
corporate strategy.
The first step is to determine the responsibilities of the Human Capital
Management Division through strategy objective and KPI at the corporate level. It
can be seen that the biggest responsibility of the HCM Division is on accelerate
people development. This will be a reference to create a BSC at the unit level.

41
 Table 4 Vertical Alignments Matrix

Perspective Strategies Objective KPI Cascading

% of revenue ∆
Financial Maximize return to shareholder % of net profit ○
% of cash ratio ∆
Enhance customer solution % of customer satisfaction index ∆
Customer
% of customer SLA fulfillment ∆
Consistent excellence product and service
% of Capability development and
Develop product and expand capacity ∆
Internal capacity expansion
Leveraging partnership and portfolio
Business % of strategy partnership ○
management
Process
% of continuous improvement ∆
Enhance processes for effective QCD
% of compliance index ∆
Accelerate people development % of human capital readiness ●
Learning and Leading organization capital enhancement % of organization capital readiness ○
Growth
Reliable ICT MRO % of information capital readiness ○

42
 FINANCIAL
Maximize Return to
Shareholder
CUSTOMER
INTERNAL Consistent
Enhance Customer
BUSINESS Excellence Product
Solution
Develop Leveraging Enhance
and Service
PROCESS Product and Partnership and Processes for
LEARNING Expand Portfolio Effective
AND GROWTH Capacity Management
Leading QCD
Accelerate Organization Reliable
People Capital
ICT MRO
Development Enhancement

Picture 7 Corporate Strategy Map

After knowing how the strategies to be achieved in the Human Capital
Management Division, the next step is to map the stakeholders of the Human
Capital Management Division. Stakeholder mapping is intended to find out who is
being addressed by the Human Capital Management Division's strategy, what
expectations are expected and what outputs will be produced. In aligning
corporate balanced scorecards to the division level, an appropriate definition of
division stakeholders is needed so that the strategies derived can be in accordance
with the duties of the relevant divisions and their responsibilities to stakeholders.

43
 Table 5 Output, Customer/Stakeholder and Expectation Human Capital
Management Division

No Output Customer Expectation

1 Company Corporate Optimization HCM unit cost
Profit
2 New Employee All Unit The fulfillment of all employee
needs
3 Personal All Employee Provide personal service and
Service employee benefits to improve their
work and personal life
4 Compensation All Employee, The implementation of a
and Benefit BOD competitive and fair compensation
Standard and benefit system
5 Information All Employee, The availability of information
about BOD about Corporate HC that can help
Corporate HC decision making
6 Recruitment HC Unit, Implementation of a recruitment
System University, Job system and get employees who
Applicant have high competence
7 Employee All Employee, Increased employee competency
Development All Unit

After determining the Output, Customer / Stakeholder and Expectation of

the Human Capital Management Division, a strategy map is then made to
facilitate the company in understanding what needs to be done as well as the
relationship between one strategy with another strategy. Strategy map is made
based on the strategy that has been formulated through the Balanced Scorecard
division. The figure below shows the strategy map owned by PT GMF AeroAsia's
Human Capital Management Division, Customer / Stakeholder and Expectation.
Providing strategic initiatives are used to realize a goal. Strategic
initiatives here are formulated with a qualitative statement that can be
implemented in the future to realize company goals.

44
Picture 8 Strategy Map Unit

45
No Perspective Strategy Objective KPI Unit Achievem Strategy Initiative
ent Status
1 Financial Cost optimalization Cost of health care insurance <100 % Lower is Implement cost
within budget better management initiatives
Cost of promotion & mutation
employees within budget
Cost of outstation mutation &
retired employees within budget
2 Customer Accelerate people Customer satisfaction level 1-10 score Higher is Develop a training and up-
development better qualification plan for
employees
Optimal employee Fulfillment of labor in all units 100 % Higher is Implement recruitment
fulfillment better programs
3 Internal Ensuring that new Performance rating from local 1- score Higher is Implementing a competency
Business recruits are the best manager and senior employees to 100 better based recruitment system
Process possible option new employees
Improve efficiency Internal self audit quality, 10 times Higher is Implementing HCIS
and productivity integrity data program (SAP & better
SOE) & integrity dozier data
implementation report available
Achieving more Amount of processes completed 100 % Higher is Implement disciplinary
streamlined internal on agreed TAT better policy, complied to agreed

46
 processes TAT
4 Learning Strengthen employee Quarterly audit of employee 1- score Higher is Implement training and
and Growth competencies competencies 100 better development programs
available for emloyees
Improving employee Measuring added value per $ value Higher is Implement evaluation and
performance employee better provide incentives for
employees
Table 6 Figure Action Plan & Strategy Initiatives

47
 CHAPTER V

CONCLUSION AND SUGGESTION

This chapter explains related conclusions from the study and suggestions given
for further research. In addition, this chapter contains recommendations for
companies related to performance measurement in the PT GMF AeroAsia
division.
5.1 Conclusion
Based on the analysis that has been done in the previous chapter, we get several
conclusions from the results of this study, which are as follows:
 PT GMF AeroAsia formulated a strategy based on internal and external
analysis which was then formulated in the form of SWOT analysis to be
able to know what is the content for the Balanced Scorecard and then be
made to Strategy map and strategy initiatives. One of the strategy is to
Implementing a competency based recruitment system, Implement
disciplinary policy, complied to agreed TAT, Improve the process and
inculcation of the company's culture and values for each employee so that
each employee could work in accordance with the existing culture and
values. This implementation is then reflected in the company's balanced
scorecard which is then measured using target achievement.
 Based on the analysis of the compatibility between the strategies in the
Internal External and Analysis, the current conditions and the balanced
scorecard of PT GMF AeroAsia, there are several proposed improvements
that can be given by the author. The proposal is a strategic goal that the
company has not included in the management contract, namely in the
fields of adding (Implement cost management initiatives, Develop a
training and up-qualification plan for employees, Implement recruitment
programs, increasing productivity and the innovation process. The analysis
was performed using primary data and secondary data.
 By aligning corporate balance scorecards to the division level, it is
expected that the strategies derived can be in accordance with the duties of
the relevant divisions and their responsibilities to stakeholders. Based on

48
 the results of the proposed strategic map from the evaluation results of the
authors, the strategy is aligned to the Human Capital Management division
as a division that plays an important role in the achievement of company
goals. The analysis was conducted by identifying stakeholders, division
responsibilities, and conducting vertical alignment in order to produce a
strategy map of the Human Capital Management division.
5.2 Suggestion
Suggestions given based on the results of the study are intended as a form of
recommendation for the authors in conducting further research. Meanwhile,
suggestions to the company have been submitted by the author as the final goal of
this report. Suggestions for further research are to extend the time of observation
at related companies and ensure that important data access can be obtained so that
it does not use too many assumptions in the report.

49
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