Managing Human Capital in Indonesia

Book excerpt: Indonesian organizations are facing ever increasing competitive pressure within and between local companies but also from global competitors. Consequently, to defend local markets and indeed exploit growth opportunities in other regions, the management of human capital (the skills, competencies and mindsets of the employeebase) has become a performance imperative for lndonesian organizations. Managing Human Capital in Indonesia: Best Practices in Aligning People with Strategic Goals explains how lndonesian organizations can migrate the management of human capital from a tactical, personnel operation to a strategic capability. In the first instance this requires a substantive overhaul of the human resource function. Based on an analysis of Indonesian, Asian and global best practices in HR management, this book explains how HR functions are being reconfigured as Strategic HR functions. The book's step-by-step practical guidelines shows how HR professionals can gain a firm understanding of the strategic imperatives of the enterprise and use this knowledge to deploy effective HR interventions. Central to such interventions is the providing of strategically critical people goals, measures and targets within a corporate Balanced Scorecard. From this, the HR organization should then build its own dedicated HR scorecard that ensures that the work of all in the function is strategically focused. Using the Balanced Scorecard as an overarching strategy management framework. Managing Human Capital in Indonesia: Best Practices in Aligning People with Strategic Goals helps the reader master those HR interventions that are most critical to the success of the enterprise. The book describes how to build and deploy a robust process for identifying, nurturing and retaining talent–a urning platform for organizations across the globe–and how to implement best practice competency, training and coaching frameworks. Providing both a helicopter view of improving enterprise performance as well as coming on developing that of the individual, the book shows how to ensure that people capabilities are hardwired to strategic goals through the shaping of individual Balanced Scorecards–from executive to front-line levels–that serve as the only appraisal system and that drive the application of appropriate bonus systems. The book also describes how lndonesian organizations can create a cadre of leaders that are capable of leading global enterprises and explains how to build a highperforming corporate culture. Reporting the findings of an exclusive survey of the HR practices of Indonesia-based organizations that was commissioned to support this book, Managing Human Capital in Indonesia: Best Practices in Aligning People with Strategic Goals provides a clear roadmap for readers to follow in the creation of a high-performing HR organization: a function that is seen as a strategic asset of the enterprise.