THE HUMAN RESOURCE FUNCTION OF HARRISON

BROTHERS CORPORATION
SUMMARY
Harrison’s is a multiline traditional department store which deals mainly with men’s, women’s and
children’s clothing. It was founded in upstate New York on September 15, 1898, by Aubrey and William
Harrison. It is one of the largest privately owned retail stores. Traditional department stores like
Harrison ‘s are beginning to experience the effects of a number of changes in the retail industry and
being all things to all customer. Also, the industry faces the challenge of keeping a well-trained, highly
motivated sales staff and management team.

James Harrison adalah CEO dari company ini, dia menyewa consultant untuk membantu dia
menaksirkan keunggulan dan kelemahan dari perusahaan. Dan hasilnya adalah, Konsultant
menyarankan untuk lebih memperhatikan mengenai human resource function dalam cakupan Harrison
Brothers. Harrison kemudian menginterview beberapa HR Managers dan Store Managers level.

Brenda McCain adalah salah satu HR manager yang berkonsentrasi pada human resource management,
she said that there is heavy turnover on the sales floor in our business, and the average sales person at
Harrison Brothers is either part-time, an older employee, or one who is in between jobs, if a better job
came along , they would snap it up immediately. For example, of the 119 part-time people hired in the
last four months, 65 have left. Their selection procedures: “The main sources of our applicants are
newspaper ads and word of mouth by present or past employees. Brenda also spend a good deal of time
with training class and help out if the training classes are too large.

Harrison hired salespeople at the minimum wage, and performed an annual evaluation of their
performance to determine merit increases. They used sales productivity as the major criterion.
Performance is evaluated on average sales per hour.

Interview with store manager, Jennifer Daft, she said that with the new strategic direction of our
company, however, I need human resources to be more of a key player. It’s not hard to get the
merchandise we want to sell, but we need people who know how to merchandise it and how to sell it to
customers.

Interview with the operation manager, Pat Hartlake. Pat talked about interactions with the human
resource department: I have a good working relationship with the Human Resource Department, but it
took some time to develop that relationship. They have been somewhat slow in filling the vacant sales
positions, and they don’t always respond as quickly as they should. They seem terribly understaffed and
overworked most of the time.
STATEMENT OF THE PROBLEM
How does the company integrate the human resource strategy, processes, and the human resource
function with the business? Because these necessary for the maximum impact on a business.
SWOT ANALYSIS MATRIX
STRENGTH
1. Harrison’s is one of the
SWOT largest privately owned
retail store in US
MATRIX 2. Its largest store is located
in a major urban center
and has 950 employee
3. Highly decentralized
4. Maintain a very small
corporate office
5. Selling a good product, like
polo,nautical, and tommy
Hilfiger
6. Store expanded include
household furnishing and
other item
7. Performance appraisal
WEAKNESS
1. Lack of knowledge of most
human resource managers
regarding the scope of
their roles and
responsibilities. (yaitu
sebenarnya utk melayani
pelanggan,staff,mencakup
semua, untuk suatu
kepuasan)
2. Relate to the institutional
reinforcement of human
resource practices, the
policies and traditions, and
managerial short-termism,
3. Clearly see that there is
very weak reinforcement
for human resource
practice in the company as
evidence by their slow
response and continual
vacancy of positions.
4. Delayering, may
accentuate these other
tendencies in managers job
because of increased
workloads, although the
effect is more indirect
5. Distribution of human
resource responsibilities
placed on the shoulders of
one person, because
that person is effectively
at work.
6. This company understaffed
and overworked most of
the time.
OPPORTUNITY
1. Become the leading chain
of department stores in
the northeast selling
moderate to better priced
merchandise to middle-
class (expand the
business)
2. Change human resource
strategy with the new
strategy or expand the
existing one
3. Selling a branded product,
or build up the
underdeveloped
merchandise
4. Need to develop the
system and (kinerja) in the
company about their
human resource
department, jangan hanya
focus pada pencapaian
hasil, tapi proses
pencapainnya juga.
5. Perkembangan teknologi,
use advanced computer
system.
THREAT
1. Number of changes in the
retail industry. Banyaknya
perubahan yang terjadi
pada retail industri
mengenai system yang
digunakan, teknologi, dan
strategi.
2. Superstores and giant
discounters are also
popping up
3. Changing customer taste
SO WO
 Mengembangkan
perusahaan dengan
expand their market di
beberapa tempat yang
belum dimasuki (O1,S6)
 Menambah produk produk
yang branded untuk
meningkatkan sales
(O3,S5)
 Memasuki pasar baru
dengan mengembangkan
produk atau memasuki
pasar baru dengan menjual
furnishing,and other
item.(O1,S1,S6)
 Menggunakan teknologi
dalam proses penjualan
dan pengoperasian yang
terjadi di dalam
perusahaan , utk
menghemat waktu dan
biaya, (dengan
komputerisasi, bisa
meminimize employee)
(O5,S1)
ST WT
 Membuat strategy yang
berpusat pada human
resource yaitu service,
yang bisa memuaskan
pelanggan.(T1,S1,T3)
 Strategy pricing dari
Harrison untuk harga
eceran pada middle
class(T1,S1)
 Membuat suasana store
yang menyenangkan
 Membuat new strategy
tentang penilaian
employee, dengan
menghindari delaying, An
assessment of
performance appraisal
content and result,
together with appropriate
questions on attitude and
satisfaction surveys can be
used to measure the
effectiveness of the human
resource practice
outlined(O2,W4,W3,O4)
 Membuat perekrutan
karyawan berdasarkan
komitment bekerja,
misalnya bekerja selama 1
tahun, dan ada semacam
punishment terhadap yang
melanggar(O2,O4,W6,W3)
 Memberikan training
terhadap karyawan about
how to sell the product to
customer, bukan hanya
target sales.(O4,W1)
 Adanya training atau
penyampaian kepada
managers tujuan dari
human resource
management, dan
memperbaiki pola pandang
yang kurang tepat.(W1,O2)
 Mengembangkan cara
perekrutan karyawan
dengan cara memasang
iklan di Koran dengan
spesifikasi yang jelas, yaitu
dibutuhkan orang yang
berkomitmen dan syarat2
yang diperlukan.(W3,T6)
 Memberikan training
secara teratur dengan tidak
menunda training.
 of product
4. Department stores with
serve customer with all
things (competitor like a
supermarket)
5. About
technology(perkembangan
teknologi yang semakin
canggih)
6. Tentang tenaga kerja yang
kurang berminat bekerja
di Harrison, karena system
perekrutannya.
dengan speciality pada
rak,(atmosphere)(T1,S1)
 Menggunakan advanced
technology utk
pengoperasian dlm store
dan di dalam company
tersebut. (T5,S1)
(disiplin)(W4, S1)
 Berfokus menawarkan
product yang ada pada
market middle class
disesuaikan wants and
need, dan layanan
terbaik.(T3,W1)
 Bekerja dengan berfokus
how to sell product to
customer, (layanan) itu
dapat meningkatkan
penjualan.(T3,W1,T4,W6)

ACTION PLAN
1. Kita harus mengkaji kembali system yang ada diperusahaan mengenai human resource, para
manager dan staff serta karyawan.
2. Mengadakan rapat antara high level of company untuk membicarakan atau mengevaluasi
kembali mengenai Human resource management (strategic plan).
3. Setelah di lakukan rapat, pengambilan keputusan dengan membuat perubahan atau
pengembangan terhadap human resource function , yaitu masalah distribution of human
resource responsibilities, Distribution of human resource responsibilities harusnya tidak
dibebankan hanya pada satu orang, tidak peduli seberapa effective orang itu. Pekerjaan akan
lebih mudah jika di Bantu oleh orang lain, jadi dalam hal ini harus ada team kerja.
4. Performance appraisal of employees should be rigidly followed. Mengenai penilaian kerja dari
karyawan harus dilakukan secara terus menerus dan konsisten terhadap hal tersebut.
5. More proper training not only for the salespeople but for human resource managers as well.
Harus dilakukan training kepada seluruh staff dan bukan hanya kepada staff saja tapi juga
terhadap managers, untuk menyatukan visi dan misi (tujuan) untuk pencapaian hasil yang
diinginkan.
6. Controlling. Mengamati dan mengontrol tentang perubahan yang ada dalam perusahaan, kalau
memberi dampak yang baik atau tidak.
7. Adakan evaluasi setiap tahun atau bulan, disesuaikan dengan kebutuhan perusahaan.
HUMAN RESOURCES MANAGEMENT AND
LEADERSHIP
1)Case about The human Resource Function of Harrison Brothers Corporation
2)Journal about Human Capital Planning: A review of Literature and Implications for
Human Resource Development
3)THE LINKAGE BETWEEN HRM PRACTICES AND COMPETITIVE ADVANTAGE. (sangat
berhubungan dengan 7 pfeffer HRM practices.

By:
Montolalu, Millyta M. I.

2011
 HUMAN CAPITAL PLANNING: A REVIEW OF LITERATURE AND
IMPLICATION FOR HUMAN RESOURCE DEVELOPMENT

SUMMARY

Human Capital thought began 1776 when Adam Smith wrote The Wealth of Nation. Smith postulated
two primary foundation in The Wealth of Nations, which would become the principles for all later
human capital framework. This two principle components are:

1. Labor inputs are not merely quantitative.

2. Ability acquired through education, study and apprenticeship, always cost to a real expense,
which is a capital fixed and realized, as it were, in person.

The analysis of training and development as investments in human capital was pioneered through the
works of leading economics scholars such as Becker, Denison, Fabricant, Mincer and Schultz (Nafukho,
Hairston, & Brooks, 2004: Sweetland, 1996)

Schultz defined human capital theory as the knowledge and skills that people acquire through education
and training as being a form of capital, and this capital is a product of deliberate investment that yields
returns. According to Becker (1992) human capital analysis starts with the assumption that individuals
decide their education, training, medical care, and other addition to knowledge and health by weighing
the benefits and costs. Becker’s (1992) initial work on human capital began with an effort to calculate
both private and social rates of return to men, women, blacks, and other group from investments in
different levels of education. Becker defines the theory of human capital “ as a form of investment by
individuals in education up to the point where the returns in extra income are equal to the costs of
participating in education. Returns are both private to the individual in the form of additional income
and to the general society in the form of greater productivity provided by the educated” (Nafukho et al.,
2004, p.11). The original aim of the Becker study was to calculate the return on investment (ROI) on
college and high school education in the U.S. economy.

There are 3 types of education and training: (1) on the job training- “learning new skills and perfecting
old ones while on the job” (1a)general training-those skills which are useful in many firms besides those
providing it, (1b)specific training-training that has no effect on the productivity of trainees that would be
useful in other firms”. (2) schooling-an institution specializing in the production of training, as distinct
from a firm that offers training in conjunction with the production of goods” and (3) other knowledge-
any other information that a person obtains to increase their command of their economic situation.

Human capital theory suggests that education, training, and development and other knowledge have
positive impact on productivity and wages. Investment of Inputs there are: formal education or
schooling, General on the job training, Firm specific on the job training, other knowledge, and then the
four will become intangible asset or human capital and result as Increased Productivity and profits and
increased wages and Income.
A strategic Human Resource Planning is long-term in nature and integrated with the business strategy.
Rothwell and Sredl (2000) developed a model for human resource planning to include the integration of
HRP and strategic planning; analysis of future HR demands and supplies; analysis of the environmental
trends that will affect the HR supply chain; comparison of HR demands and anticipated supplies’ action
to match HR demand and supplies; and evaluation of the pans and results (p.242). These key initiatives
identified for the HRP process are strategic and will integrate with the business strategies. These HRP
initiatives will assist the HR practitioner with narrowing the gaps between present human capital supply
and the forecasted human capital demand.

Kaplan and Norton developed a strategic tool called the balanced scorecard approach to management
and performance measurement in 1992. Balance Scorecard is a set of measures that provides a far but
comprehensive view of the company. The BSC emerged out of the need for effective accounting
procedures since traditional financial accounting which was developed in the industrial era and success.
According to the BSC approach to management (Kaplan&Norton, 1992) how a company is performing
should and must become a top priority for leaders. Human resource scorecard emerging strategic
potential hinges on the increasingly central role of intangible assets and intellectual capital in today’s
economy. The importance of aligning HR management and measurement with the strategy of the
organization is as important as aligning the people.

Human Capital Planning is a critical business process because of its transformational impact on the value
the function delivers to the business. Human capital planning is used to identify the human capital needs
of goals and objectives tied to the business strategy. HCP involves the recruitment, selection, allocation
and retention of human talent (intellectual and knowledge resources), including the training and
education of these resources. To successfully link the HCP process with the business strategy ,
Zula(2007) suggests the following major elements: (a) leadership driven approach to planning; (b) a
detailed assessment of the current organizational status; (c) the development of systems for
measurement, accountability, and feedback; (d) organizational learning and buy-in; (e) integrated
organizational competency models; and (f) a detailed assessment of the human resource capabilities
and capacities.

The field of Human Resource Development could benefit from a greater understanding of how human
capital scholars have clearly defined methods of quantifying returns of investment in education and
training. HRD practitioners must utilize a proper planning methodology and empirically researched
instruments form human capital planning, in order to continue to develop credibility among other fields,
HRD must developed systematic and uniform approaches to determining ROI through the utilization of
instruments and standardized measures for human capital planning. The field of HRD is evolving from
“anecdotal interventions” to an evidence-based field from external and internal organizational
demands. NO longer is it acceptable to inform stakeholders about the impact of interventions: these
stakeholders now insist on factual evidence to demand impact based upon measurable outcomes. The
effect of HCP on HRD theory will only enhance the once assumed anecdotal evidence of the impact of
HRD on the organization. HCP can provide and develop evidence and research based on outcomes for
further theory development and enhancement. HRD has long theorized that interventions have
improved organizational performance, however, HCP may be the method to provide the evidence
necessary, such as quantifiable data, to support this theory. Theories of human capital provide much of
the groundwork already and extending these already highly used economic theories of HRD into a clear
and concise theory of how these elements apply in organizational planning would be valuable indeed.

COMMENT

Setelah saya membaca jurnal ini, saya mendapati teori-teori yang secara langsung berhubungan dengan
Human Capital, Jurnal ini memaparkan keterkaitan antara Human Capital Theory, Human Capital
Planning, and Human Resource development. Saya setuju dengan pendapat para ahli yang mengatakan
bahwa according to Becker (1993) schooling, training, courses, medical care, and lectures on personal
improvement are all capital too because these “improve health, raise earnings, or add to a person’s
appreciation of literature over his or her lifetime”. Mengapa saya setuju? Karena setiap orang memiliki
modal awal untuk bekerja yaitu modal fisik yang sehat, tapi juga harus di dukung oleh bekal education
yaitu schooling, dan kita juga memerlukan yang namanya training (dalam perusahaan) tapi harus juga di
tunjang dengan intangible asset yang dimiliki pribadi orang yaitu kemampuan untuk bersosialisasi,
kadang kala ini sering dilupakan, tapi ini adalah faktor yang penting untuk dilakukan karena seperti yang
di katakan Aristoteles (makhluk sosial) , setiap orang perlu belajar ilmu sosial yang juga disebut informal
knowledge.

Human capital theory suggests that education, training, and development and other knowledge have a
positive impact on productivity and wages. Saya setuju dengan pendapat ini sesuai dengan apa yang
dikatakan Sweetland, (1996) Human capital theory suggests that individuals and society derive economic
benefits from investments in people, tapi tidak hanya itu saja. Untuk merencanakan pengembangan
sumber daya manusia kita perlu seorang pemimpin yang berpikiran strategic yang bisa memimpin
perusahaan, seperti yang dikatakan (Rao & Rothwell, 2000) “It is essential to have the commitment of
the organizational leadership”. Seorang Pemimpin adalah seorang partner yang juga bekerja sama untuk
membangun perusahaan set the goals, yang kalau kita lihat di jurnal dalam Human Capital Planning,
untuk sukses menghubungkan HCP dengan business strategy, yaitu yang pertama harus ada leader ,
seterusnya assess current organizationa status, establish systems for measurement accountability and
feedback, create organizational learning and buy in, Integrate organization competency models,
Determine HR capabilities and capacities. Setelah perencanaan sumber daya manusia, kita masuk pada
pengembangan dari SDM tersebut yaitu Human Resource Development (HRD) . Human Resource
Development is the framework for helping employees develop their personal and organizational skills,
knowledge, and abilities (http://humanresources.about.com/od/glossaryh/f/hr_development.htm)

Dalam mengembangkan SDM, perlu juga diperhatikan satu istilah yang di sebut talent management, is
being used to refer the activities to attract, develop and retain employees. Some people and
organizations use the phrase to refer especially to talented and/or high-potential employees. The phrase
often is used interchangeably with HR, although as the field of talent management matures, it’s very
likely there will be an increasing number of people who will strongly disagree about the interchange of
these fields (http://managementhelp.org/hr_mgmnt?hr_mgmnt.htm) ya, saya setuju, tidak semua
employee yang lulus di universitas terbaik, berpengalaman kerja, memiliki capability atau kemampuan
yang sama dalam bekerja , untuk itu talent management baik dikembangkan di setiap perusahaan, yaitu
salah satu bagian dari perusahaan yang membantu employee to get success at work. Contoh :adanya
training untuk orang-orang disabilities, ya dengan melihat pekerjaan yang sesuai dengan
kemampuannya. Kembali pada Human Resource Development, ada salah satu implications for HRD yaitu
evolving from anecdotal intervention. Apa yang dimaksud dengan anecdotal intervention ? (lebih
mendalam).
 THE LINKAGE BETWEEN HRIM PRACTICES AND COMPETITIVE
ADVANTAGE. (sangat berhubungan dengan 7 pfeffer HRM
practices)

Seiring perkembangan bisnis global saat ini yang menuntut persaingan yang kompetitif untuk dapat
memasuki pasara atau bahkan berhasil menguasai pasar dimana salah satu tujuan utama setiap
perusahaan adalah untuk memaksimalkan profit. Perusahan harus menyiapkan semua sumber daya
yang dimilikinya untuk dapat bersaing. Modal terbesar yang dimiliki perusahaan adalah sumber daya
manusia yaini karyawan yang berada di dalam perusahaan tersebtu yang merupakan penggerak utama
dari sumber daya lainnya.

Sumber daya manusia memiliki peranan yang sangat penting dalam mengembangkan dan mencapai
sasaran organisasi, selain itu kinerja organisasi juga bertumpu pada faktor manusianya. Untuk dapat
memperoleh pegawai yang handal dan professional, maka diperlukan berbagai kegiatan yang biak,
mecakup proses rekrutmen dan seleksi pada tahan awal. Kegiatan rekrutmen dan seleksi yang baik
diharapkan akan dapat mengasilkan calo-calon pegawai yang berkinerja baik.

Proses perekrutan karyawan melalui prsedur dan standar yang baik sangat diharpkan akan mampu
menghasilkan karyawan-karyawan yang handal sebagai mitra strategic perusahhan, sehingga proses
penempatan karyawan yang dsesuaikan dengan job specification dan job description. Dalam hal memilih
karyawan haruslah melewati system perekrutan yang panjang, perusahaan harus selective dalam hal ini,
untuk itu perlu juga diadakan training.

Program pengembangan karyawan melalui pelatihan(training) akan menunjukkan peningkatan prestasi

dari karyawan, sehingga dapat mengevaluasi keahlian dan kemampuan dari karyawan dalam proses
pencapaian kinerja perusahaan. Program pengembangan karywan juga dapat membrikan motivasi
kepada karyawan untuk memberikan kepastian (commitment) untuk melewati jenjang karier yang akan
dicapai nantinya. Tujuan pengembangan karyawan adalah dapat menciptakan karyawan sebagai modal
utama perusahaan yang dapat berperan dalam perkembangan perusahaan, bukan hanya sebagai
operasional tetapi dapat berperan aktif dalam peran barunya guna meningkatkan competitive
advantage.