human resources development presentation
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TRANSCRIPT
2 March 2012 Dr. Paul E. Kent, SVP Nathan Associates Inc. Captain Jasief Putrahardja Prof. Sudjanadi Tjipto Sudarmo Hidayat Mao, SH Ir. Budiyono Doel Rachman, MSc.
Workforce Performance and the Future of Indonesia’s Port Sector
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An efficient, competitive, and
responsive port system that fully
supports international domestic trade
and promotes economic growth and
regional development
An attainable vision
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Indonesia’s Multi-Dimensional Strategy for Achieving its Vision
• Issuing National Port Master Plan and complementary decree
– Establishes investment priorities
– Presents a policy framework that emphasizes
port development
port services competition
human resources development for the shipping sector (ports and maritime)
• Establishing system of landlord port authorities
• Eradication of monopolies
– Benefits of competition
Improved services
Improved working conditions
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Functional Responsibilities for a Restructured and Competitive Port Sector (1) • DGST
Establishing/implementing port policy
National port planning
Port sector advocacy
Regulation
• Port authority tariff guidelines and review
• Monitor port business entity pricing practices and service agreements
• Master plan guidelines and review
• Complaints process/procedures
• Safety and security
• Environmental protection
• Port operational guidelines
Sector human resources development
• Prepare strategy and plan for meeting sector HR development needs
Port Information System
Promoting port competition
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Functional Responsibilities for a Restructured and Competitive Port Sector (2)
•Port Authorities Market analysis/competitive intelligence
Local master/strategic planning
Promoting port competition
Tariff analysis
Concession and lease agreements
Financial management
Customer service
Maintenance of common access areas
Regulation/regulatory compliance
Operational regulations
Safety and security
Environmental protection/contingency planning
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DGST Training Curriculum Requirements
•Competition/economic regulation
•Tariff analysis
•National port planning/planning analysis
•Transportation planning and logistics
•Port operational regulation
•Port environmental planning/analysis
•Safety and security guidelines
•Human resources development/training needs assessment
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Port Authority Training Curriculum Requirements
Management Marketing Planning/ Engineering
Contracts and Regulation
Port Authority Management
Competitive Intelligence
Port Master Planning
Concession/lease Agreements
Strategic Planning Port Marketing Port Development/ Project Management
Operational Regulation
Capital/Operating Budget
Promotion/ Advertising
Operational Performance Monitoring
Safety and Security
Tariff/financial Analysis
Public Relations Terminal Operations
Environmental Protection/Contingency Planning
HR Management Customer Service Maintenance Management
Marketing and Promotion
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Option 1: Status Quo Monopoly TKBM Pool Arrangements
• Port C• Port D
• Port B• Port A
TKBM Coop A
TKBM Coop B
TKPM Coop C
TKBM Coop D
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Improving Labor Performance
Indonesian port labor system
– Reflects pre-reform environment
o System of labor cooperatives/dock labor boards initially created to provide for the welfare of casual workers
o Evolved as labor pool business
o Commonly established as monopolies
Motivation to perform well
– Career progression
– Productivity incentives
– Training
– Cross Training
– Rivalry
– Pride
– Work opportunities based on worker performance
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Ramifications of Monopoly
•Insufficient labor force skills
•Poor work ethics
•Workers not wanted by stevedoring companies
•Payment for services not rendered
•Stevedores prefer to pay the cost even if not used rather than use them
•De-motivated workers
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Options for Labor Pool Arrangements
Restructuring options
1. Maintain status quo
2. Create competition (reflects objective of Shipping Law --“eradication of monopolies”) by
a. Preserving labor cooperatives and allowing them to compete in other jurisdictions
b. Preserving labor cooperatives in their current jurisdictions and create subsidiary labor pool companies to compete for stevedoring assignments/contracts
3. Separate port labor pool from labor welfare
a. Transfer labor pool management responsibility to association of stevedores
b. Allow stevedoring companies to manage their own roster systems and engage casual labor directly
Inducing Competition Scenarios
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Option 2a. Inter TKBM Coop Competition Scenario
• Port C• Port D
• Port B• Port A
TKBM Coop A, B, C, D
TKBM Coop A, B, C, D
TKPM Coop A, B, C, D
TKBM Coop A, B, C, D
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Option 2b. TKBM Coop Inter-Subsidiary Company Competition Scenario
• Port C• Port D
• Port B• Port A
TKBM A Subsidiaries 1, 2, 3, 4...
TKBM B Subsidiaries 1, 2, 3, 4...
TKBM C Subsidiaries 1, 2, 3, 4...
TKBM D Subsidiaries 1, 2, 3, 4...
Transferring TKBM Management Scenarios
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Option 3a. Stevedoring Association TKBM Management Scenario
• Port C• Port D
• Port B• Port A
StevedoringAssociation
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Option 3b. Stevedoring Company TKBM Managed Scenario
StevedoringAssociation
• Port C• Port D
• Port B• Port A
Stevedoring Company A, B, C, D
Stevedoring Company A, B, C, D
Stevedoring Company A, B, C, D
Stevedoring Company A, B, C, D
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Strategy for Improving Individual Worker Performance
Instill pride in workers
Require training certification for casual labor to qualify for placement on rosters, e.g. Basic handling techniques
Stuffing/destuffing
Labor safety
Equipment operation
Specialized handling techniques
Establish career progression system for port labor
Install productivity/quality incentives system
Implement cross training practices