International Journal of Human Capital Management, Vol. 2 (2), December 2018 International Journal of Human Capital Management, Vol. 5 (1), June 2021 120 | P a g e International Journal of Human Capital Available online at Management http://journal.unj.ac.id/unj/index.php/ijhcm E-ISSN 2580-9164 Vol. 5, No. 1, June 2021, p 121-131 Human Resource Planning Study in Hot Strip Mill 2 (HSM#2) factory at PT. Krakatau Steel, Tbk Dibyantoro Untirta Postgraduate Management Masters Program Students Email: dibyantoro02@gmail.com Abdul Chatim Pramono Untirta Postgraduate Management Masters Program Students E-mail: chatim.pramono@gmail.com Asep Rahmatullah Untirta Postgraduate Management Masters Program Students Email: aseprahmatulloh67@gmail.com Ranthy Pancasasti Lecturer of the Postgraduate Management Masters Study Program Untirta Email: ranthyipb@gmail.com ABSTRACT The purpose of this study was to analyze the human resource planning process at the Hot Strip Mill 2 (HSM#2) factory at PT. Krakatau Steel, Tbk from before it was established until the first commercial operation (first coil). The existence of human resource planning is very important forfactory new, so that human resources will be obtained in quantity and quality in accordance with the needs to support effectiveness and efficiency in order to achieve the vision and mission set by the company. HSM#2 factory isproduction work unitPT. Krakatau Steel, Tbk which started operating for the first time (first coil) on May 17, 2021. The research method is qualitative descriptive using a phenomenological approach that will reveal the experiences of leaders and the human resource planning department related to the HSM#2 factory. The number of informants is7 people consisting of2 persons the manager who makes the mapping of human resource needs, and5 staff person directly involved in human resource planning at the HSM#2 plant. Data were collected beforehand by using interview techniques, document studies, and field observations. Data were analyzed using SWOT matrix analysis by considering strengths, weaknesses, opportunities, and threats. The results of the study indicate that at the time of planning human resources, the procurement of employees is divided into two, namely those from internal for supervisory, superintendent, and manager positions and those frommix of internal and external for officer, foreman, and supervisor positions. Keywords: Human resource planning, HSM#2, Phenomenology, SWOT. Received: 9 June 2021 ; Accepted: 23 June 2021 ; Publish; July 2021. How to Cite: Dibyantoro, D., et.al. (2021). Human Resource Planning Study in Hot Strip Mill 2 (HSM#2) factory at PT. Krakatau Steel, Tbk. International Journal of Human Capital Management, 5 (1), 121-131. https://doi.org/10.21009/IJHCM.05.01.11 http://journal.unj.ac.id/unj/index.php/ International Journal of Human Capital Management, Vol. 5 (1), June 2021 121 | P a g e INTRODUCTION Human resources play a very important role in the world economy. Human resources remain at the center of global economic policy today (Donald Gillies, 2015). All the resources that exist or are owned by a company, human resources are the most important and so influential. The overall potential possessed by human resources is so decisive for the organization's efforts to achieve goals (Husaini, 2017). Human resource planning is one of the important parts in human resource management itself. Human resource planning will guarantee the availability of human resources needed by a company both now and in the future so that the vision and mission that have been set can be achieved. Success in human resource planning will be determined by the suitability of choosing a strategy in designing the empowerment of the company's human resources and estimating future needs in accordance with the dynamics of the company's business growth and development. Human resource planning will be carried out properly and correctly if the planner knows what and how human resources are (Hasibuan, 2017).Human resource planning is very essential for the organization, which is an activity that precedes other human resource management activities. Organizational success is determined by effective human resource planning (Abdul Rasul, 2017). The Hot Strip Mill 2 (HSM#2) factory began construction in August 2016 with a consortium of SMS Group (Germany) and PT. Krakatau Engineering, operated commercially for the first time (First Coil) on May 17, 2021. The construction of the second factory cost an investment of US$ 521 million with a target to increase the number of Hot Rolled Coil (HRC) production by 1.5 million tons per year. (www.beritasatu.com/economy/775331/krakatau-steel- mulai-operkan-pabrik-hsm-2). The products produced are sheet steel for automotive, steel pipes, re-rolling, and construction. Product sizes range from 600 – 1,650 mm wide and 1.2 – 16 mm thick. The HSM#2 factory was built on an area of 48 hectares in an industrial area owned by a subsidiary of PT. Krakatau Steel, Tbk, namely PT. Krakatau Industrial Estate Cilegon. The construction of HSM#2 will increase PT. Krakatau Steel, Tbk reaches 3.9 million tons per year.The production of the HSM#2 factory will be used by one of the divisions of PT. Krakatau Steel, Tbk which makes sheet steel, namely Cold Rolling Mill (CRM) (https://www.ap3i.or.id/). The fulfillment of human resource needs can be met through promotions within the internal environment as well as the recruitment of new employees. The obstacles that will be faced in the procurement of employees from internal sources are:the possibility of a mismatch of background, can cause social jealousy, limited qualifications according to the latest needs. While from the external ispotential employees will bring a bad culture, employee performance does not match expectations, and experience in specific work areas is sometimes difficult. The threat that will be faced in recruiting employees from internal sources is that there is no change in work culture, work patterns still tend to be the same as before, and have the potential to cause increased compensation.While from the external isPotential employees will bring a bad culture, employee performance is not in line with expectations, and demands for compensation that are greater than the company's basis.For that it is neededvery mature human resource planning at the beginning of development, operational preparation, and operations so that it is expected that when operating normally the need for all human resources can be met both in quantity and quality. This research tries to reveal the human resource planning process in HSM#2 factory. How big is the company's ability to use its advantages and overcome obstacles from the internal environment, take advantage of opportunities and prevent threats from the external environment as one of the foundations in achieving the vision and mission that will be achieved in the future by the company related to human resource planning. http://www.beritasatu.com/ekonomi/775331/krakatau-steel-mulai-operasikan-pabrik-hsm-2 http://www.beritasatu.com/ekonomi/775331/krakatau-steel-mulai-operasikan-pabrik-hsm-2 https://www.ap3i.or.id/ International Journal of Human Capital Management, Vol. 5 (1), June 2021 122 | P a g e LITERATURE REVIEW Human Resource Planning Mondy and Noe (in Suwatno, 2018:45) argue that human resource planning is a process that systematically examines the state of human resources to ensure that the quantity and quality with the right skills will be available when they are needed. Arthur W. Sherman and George W. Bohlander (in Nawawi, 2017:43) define human resource planning as the process of anticipating and making provisions/requirements to regulate the flow of labor movement into (new workers), within (promotions, transfers). , and demotion), and leaving (retiring, quitting, and being laid off) within an organization/company. George Steiner (in Suwatno, 2017: 44) provides a definition of human resource planning is a series of forecasts (estimates) the need or demand for future workforce in an organization/company, which includes the utilization of existing human resources and the procurement of new workers needed. Suwatno (2017: 44) states that human resource planning is the process of establishing a strategy to acquire, utilize, develop, and maintain human resources in accordance with the current needs of the organization/company and its development in the future. Meanwhile, Hasibuan (2017) defines human resource planning as planning the workforce to suit the company's needs as well as being effective and efficient in helping the realization of goals. which includes the utilization of existing human resources and the procurement of new workers needed. Suwatno (2017: 44) states that human resource planning is the process of establishing a strategy to acquire, utilize, develop, and maintain human resources in accordance with the current needs of the organization/company and its development in the future. Meanwhile, Hasibuan (2017) defines human resource planning as planning the workforce to suit the company's needs as well as being effective and efficient in helping the realization of goals. which includes the utilization of existing human resources and the procurement of new workers needed. Suwatno (2017: 44) states that human resource planning is the process of establishing a strategy to acquire, utilize, develop, and maintain human resources in accordance with the current needs of the organization/company and its development in the future. Meanwhile, Hasibuan (2017) defines human resource planning as planning the workforce to suit the company's needs as well as being effective and efficient in helping the realization of goals. and maintain human resources in accordance with the needs of the organization/company now and its development in the future. Meanwhile, Hasibuan (2017) defines human resource planning as planning the workforce to suit the company's needs as well as being effective and efficient in helping the realization of goals. and maintain human resources in accordance with the needs of the organization/company now and its development in the future. Meanwhile, Hasibuan (2017) defines human resource planning as planning the workforce to suit the company's needs as well as being effective and efficient in helping the realization of goals. To design and develop effective human resource planning, Mancini (in Suwatno, 2018:45) states that there are three types of planning that are interrelated and constitute a single unified planning system, namely: a). Strategic planning Has the aim of maintaining the continuity of the organization in a competitive environment. b). Operational planning Has the aim of showing the demand for human resources. c). Human resource planning It is used to predict the quantity and quality of human resource needs in the short and long term that combines development programs and human resource policies. International Journal of Human Capital Management, Vol. 5 (1), June 2021 123 | P a g e Human Resource Planning Indicators Hasibuan (2017: 256-259) states that the indicators of the human resource management function are implemented properly and appropriately, it is necessary to plan beforehand which includes: 1. Organizational planning Organization as a tool and a place for people to work together, be integrated, coordinated, effective, and harmonious needs to be planned in advance. 2. Procurement planning The procurement of human resources must be planned properly and correctly so that the quality and quantity of resources are in accordance with the company's needs. 3. Development planning Human resource development must be planned properly so that development can increase the productivity of current and future employees. 4. Compensation planning Compensation (compensation) of human resources needs to be well planned, in order to encourage employee morale. SWOT analysis Definition of SWOT Rangkuti (2018:20) states that SWOT stands for the internal environment of Strengths and Weaknesses as well as the external environment of Opportunities and Threats faced by the business world. SWOT analysis compares the external factors Opportunities (Opportunities) and Threats (Threats) with internal factors Strengths (Strengths), and Weaknesses (Weaknesses). Nur'aini (2016:8) states that SWOT analysis is an instrument for identifying various factors that are systematically formed that are used to formulate company strategy. According to Fahmi in Ismaya (2017:14) the abbreviation of SWOT is strength (Strengths), weaknesses (Weaknesses), opportunities (Opportunities), and threats (Threats). Where SWOT is used as a model in analyzing a profit-oriented and non-profit organization with the main objective of knowing the state of the organization more comprehensively. Erwin Suryatama (in Cahyono, 2016:130) states that SWOT analysis is a strategic planning method used to evaluate strengths or Strengths, Weaknesses or Weaknesses, opportunities or Opportunities, and Threats or Threats in a project or business speculation and can be applied by analyzing and sort out the things that affect the four factors. Benefits of SWOT Analysis Suryatama (in Bilunng, 2016:119) suggests that the benefits that can be obtained from a SWOT analysis include the following: a. As a guide for the company to formulate various strategic policies related to plans and implementation in the future. b. Become a form of material for evaluating strategic policies and planning systems of a company. c. Provide challenge ideas for company management. d. Provide information about the condition of the company. Factors that affect SWOT According to Purwanto (in Rusmawati, 2017:919) to analyze more deeply about SWOT, it is necessary to look at external and internal factors as an important part of SWOT analysis, namely: a. External Factors These external factors affect the formation of Opportunities and Threats (O and T). Where this factor is related to the conditions that occur outside the company that affect the company's International Journal of Human Capital Management, Vol. 5 (1), June 2021 124 | P a g e decision making. These factors include the industrial environment and the macro business environment, economy, politics, law, technology, population, and socio-culture. b. Internal Factors These internal factors affect the formation of Strengths and Weaknesses (S and W). Where this factor is related to the conditions that occur in the company that affect the company's decision making. These internal factors include all kinds of functional management: marketing, finance, operations, human resources, research and development, management information systems and corporate culture. RESEARCH METHOD The research was conducted in May-June 2021 at a new factory, namely the HSM#2 factory which was established on August 22, 2016 and only started its first commercial operation (first coil) on May 17, 2021. Human resource planning at the HSM#2 Plant is considered important to be researched because it is a project of PT. Krakatau Steel, Tbk in an effort to diversify and to face the increasingly fierce competition in the steel industry, so that good human resource planning is needed in terms of quantity and quality to support the company's operations. This study uses a qualitative method with a phenomenological approach which is expected to be able to explain the experience of employees involved in human resource planning at the HSM#2 factory in planning and realizing the plan until the factory can operate. Creswell (2017: 18) states that phenomenological research is a research design that comes from philosophy and psychology in which researchers describe the experience of human life about a particular phenomenon as described by participants. This description culminates in the essence of the experiences of several individuals who have experienced all of these phenomena. This design has a strong philosophical foundation and involves conducting interviews (Giorgi, 2009; Moustakas, 1994). The informants in this study were 7 employees of the Human Capital division who were willing to be interviewed, consisting of 2 managers and 5 staff employees who were intensively involved in human resource planning at the HSM#2 factory. There are 2 leaders who are directly involved in the vision bias and 5 others play a role in triangulating the data that has been submitted by the head of the Human Capital division. Data collection was carried out by structured interviews according to the prepared research protocol. This is intended to facilitate the interview process. In addition, field studies, documentation studies, and Focus Group Discussions (FGD) were also conducted, then the data were analyzed using content analysis, descriptive analysis, and SWOT matrix analysis. The data was transcribed and classified (coding) in advance according to the focus of the study by referring to the research protocol. RESULTS AND DISCUSSION 1. Human Resource Planning with Company Vision and Mission Based on the results of the following interviews, the vision and mission of the company PT. Krakatau Steel, Tbk. Vision “An integrated steel company with competitive advantages to grow and develop sustainably to become the world's leading company”. International Journal of Human Capital Management, Vol. 5 (1), June 2021 125 | P a g e Mission "Providing quality steel products and related services for the prosperity of the nation". As for Human Capital PT. Krakatau Steel, Tbk has the following vision and mission. Vision “To become a Center of Talent Development and Knowledge Management to generate a competitive advantage for the company”. Mission "Producing Excellent Human Capital and Work System for the achievement of stakeholder satisfaction". 2. Human Resource Needs Analysis Human resource planning for the HSM#2 factory from the results of interviews was carried out in several stages as follows: 1. Conduct job analysis related to workload, number of employees, and employee qualifications that must be met for a predetermined section. 2. Benchmarkwith factories similar to HSM#2 such as several Joint Venture companies, PT. Krakatau Steel, Tbk, namely PT. Krakatau Posco, PT. Krakatau Nippon Steel Sumitomo (KNSS), and PT. Krakatau Osaka Steel (KOS). 3. By performing steps (1) and (2) above, it can be concluded that the human resource requirements for the HSM#2 factory are as follows: Table 1. Human resource requirements of HSM#2 factory NO POSITION LEVEL NEEDS 1 MANAGER B 2 2 SUPERINTENDENT C 9 3 SUPERVISOR D 26 4 FOREMAN E 45 5 OFFICER F 112 194 Source: Company internal data processed for research 3. Human Resource Procurement Analysis After determining the need for human resources at the HSM#2 factory, the next step is to plan in procuring the availability of these human resources. Based on the results of the interview, there are several categories in the procurement of human resources for the HSM#2 factory: 1. Promotion Hasibuan (2017:108) states that promotion is a move that increases the authority and responsibility of employees to higher positions within an organization so that their obligations, rights, status, and income are greater. Promotions to fulfill positions are carried out for foreman, supervisor, superintendent, and manager positions. 2. Mutation Hasibuan (2017:102) provides a definition of mutation as a change in position/position/place of work carried out both horizontally and vertically (promotion/demotion) within an organization. Basically, mutations are included in the employee development function, because the goal is to increase work efficiency and effectiveness within the company. Transfers are made to the positions of supervisor, superintendent, and manager. International Journal of Human Capital Management, Vol. 5 (1), June 2021 126 | P a g e 3. Recruitment Kasmir (2017:93) states that recruitment is an activity to attract a number of applicants to be interested and apply to companies according to the desired qualifications. Recruitment is carried out for officer, foreman, and supervisor positions. Table 2. Breakdown of human resource requirements LEVEL ORGANIZATION 1 2 0 Grand Total B 1 1 C 3 1 4 D 3 10 1 14 E 25 11 36 F 58 26 3 87 Grand Total 90 40 5 142 *) 1=Existing Workforce, 2=Recruitment Workforce Source: Company internal data processed for research Table 3. Details of procurement of human resource requirements NO POSITION LEVEL NEEDS EXISTING DEFICIENCY INFORMATION 1 MANAGER B 2 1 1 Mutation/Promotion 2 SUPERINTENDENT C 9 6 3 Mutation/Promotion 3 SUPERVISOR D 26 10 16 Recruitment 4 FOREMAN E 45 17 28 Recruitment 5 OFFICER F 112 25 87 Recruitment 194 59 135 Source: Company internal data processed for research From table 3 above, it can be seen that there are 59 employees who can be obtained from existing companies, namely PT. Krakatau Steel, Tbk while 135 people can be done by recruitment, promotion, and mutation. 4. Human Resources Procurement SWOT Analysis From the results of interviews with representatives of human resource planning for the HSM#2 factory, it can be seen that the strengths and weaknesses as well as the potential and threats for the procurement of employees from internal and external sources are as follows: a. Internal Procurement Hariandja (2015:109) states that internal procurement is a recruitment process that utilizes internal sources (pre-existing employees) to be transferred to fill vacancies. The following is a SWOT analysis of human resource planning using the internal procurement method for the procurement of HSM#2 factory employees: International Journal of Human Capital Management, Vol. 5 (1), June 2021 127 | P a g e Table 4. Strength (S) and Weakness (W) NO STRENGHT(S) WEAKNESS (W) 1. Employees have work experience in accordance with the field of work in a steel factory. There is a possibility of a background mismatch. 2. High level of employee engagement. Can cause social jealousy. 3 Can be considered from the performance of previous employees. Limited qualifications to suit the latest needs. Source: Processed data for research Table 5. Opportunity (O) and Threat (T) NO OPPORTUNITY (O) THREAT (T) 1. Encouraging healthy work competition among employees. No change in work culture 2. Save on employee procurement costs. The work pattern still tends to be the same as before. 3 Provide opportunities for employees to develop. Potential to cause increased compensation. Source: Processed data for research Table 6. Strategy (SO) and (WO) NO STRATEGY (SO) STRATEGY (WO) 1. Appropriate work experience and to create a healthy job competition form the basis for the recruitment of internal employees. The potential for social jealousy and to encourage job competition and save on employee procurement costs are the basis for internal procurement. Source: Processed data for research Table 7. Strategy (ST) and (WT) NO STRATEGY (ST) STRATEGY (WT) 1. Appropriate work experience and potential for no change in work culture will be anticipated with the adoption of a new work culture Any background discrepancy and a tendency for no change in work will be anticipated by external procurement. Source: Processed data for research From table 6. above, it can be seen that the SO strategy that can be carried out is with employee experience in the steel industry and still has a correlation with the HSM#2 factory and also to encourage employee competence, it can be the basic capital in determining internal employee procurement policies . The WO strategy that can be done is with the potential for social jealousy and to encourage job competition and save on procurement costs as the basis for internal procurement. implementation of a new, better corporate culture . b. External Procurement Hariandja (2015: 109) states that external procurement is a recruitment process by opening up opportunities for external parties (general public) to apply for job vacancies available in the company. International Journal of Human Capital Management, Vol. 5 (1), June 2021 128 | P a g e The following is a SWOT analysis of human resource planning with the external procurement method for the procurement of HSM#2 factory employees: Table 8. Strength (S) and Weakness (W) NO STRENGHT(S) WEAKNESS (W) 1. There are many choices of applicants. It takes more time and stages. 2. The potential for a new and better work pattern. Requires costs in the procurement process. 3 Reliable employees are possible. Experience in a specific work area is sometimes difficult. Table 9. Opportunity (O) and Threat (T) NO OPPORTUNITY (O) THREAT (T) 1. Qualification of employees in accordance with the requirements set. Employees have the potential to bring a bad culture. 2. Acquire employees with reliable competencies Employee performance is not in line with expectations. 3 Acquire employees from competing companies. Compensation requests that are greater than the company's basis. Source: Processed data for research Table 10. Strategy (SO) and (WO) NO STRATEGY (SO) STRATEGY (WO) 1. There are many choices of applicants and the presence of potential employees with competencies above the requirements are the basis for external procurement The higher time and costs and the potential of employees with higher competencies become the basic capital in certain positions. Source: Processed data for research Table 11. Strategy (ST) and (WT) NO STRATEGY (ST) STRATEGY (WT) 1. There are many choices of applicants and the potential for employees with performance that does not meet expectations can be anticipated with a probationary period. The higher time and cost and the lower competency potential of employees become the basic capital in internal procurement. Source: Processed data for research From table 10 above, it can be seen that the SO strategy that can be carried out is that by having many choices of potential employees and potential employees who have competence above qualifications, it can be the basic capital in determining external employee procurement policies. The WO strategy that can be carried out is with higher costs and potential employees who have the potential to become the basis for external procurement. From table 11. ST strategy that can be done is by having many choices of potential employees and employee performance that does not meet expectations can be anticipated with a probationary period. WT strategy that can be done is International Journal of Human Capital Management, Vol. 5 (1), June 2021 129 | P a g e with high procurement costs and employee performance is not in accordance with the anticipated procurement of employees from within. 5. Human Resource Development Andrew F. Sikula (in Hasibuan, 2017:70) suggests that human resource development is a long-term educational process using a systematic and organizational procedure with managers, learning conceptual and theoretical knowledge. For various levels of positions at the HSM#2 factory, the following is a description of human resource development: Table 11. Employee resource development plan NO POSITION LEVEL CORE 1 MANAGER B Business process SMKS Corporate Culture PKB Mgr Set Manager Production and Maintenance Competence 2 SUPERINTENDENT C Mgr Set Jr. Manager 3 SUPERVISOR D Mgr Set Supervisor 4 FOREMAN E Mgr Set Foreman 5 OFFICER F Operator Certificate Source: Processed data for research 6. Human Resource Planning Indicators The indicators in human resource planning at the HSM#2 plant can be stated as follows: 1. Organization Human resource planning for the HSM#2 plant was carried out in three stages, the first stage was the 47-person phase-1 construction team, the second stage was the second-stage development team of two stage-1 teams, and the third stage was the 142-person operation preparation team. person. 2. Procurement Human resource planning for the HSM#2 factory is carried out with two sources, namely external for the position of officers with vocational/high school education qualifications, foreman with D3 educational qualifications, supervisors with undergraduate education qualifications. While internal for superintendent and manager positions by using mutation and promotion paths. 3. Development Human resource development is adjusted to the position and also the existing competency gap so that it is right on target. Where development is getting upwards, it has a tendency to be managerial 4. Compensation The compensation factor is adjusted to the position and grade of the employee's position by fulfilling the basic salary components, allowances which include: transportation allowances, pension benefits, health benefits, premiums, incentives, bonuses, as well as development which includes training, training, and motivation. International Journal of Human Capital Management, Vol. 5 (1), June 2021 130 | P a g e CONCLUSION AND RECOMMENDATION The results of this study explain that human resource planning at the HCM#2 plant is carried out very well by maximizing the advantages and opportunities that exist both internally and externally and minimizing existing obstacles and threats both from internal and external. Where for the initial conditions utilize the human resources available in the existing company PT. Krakatau Steel, Tbk, then conducted an analysis of human resource planning from outside for officers, foreman, and supervisor positions. As for the positions of supervisor, superintendent and manager from internal sources, which is described in the SWOT analysis. Human resource planning HSM#2 is equipped with clear indicators of achievement of human resource planning, namely (1) Organization, (2) Procurement, (3) Development, and (4) Compensation which is carried out in a well-planned and well-planned manner. To be able to achieve the human resources needed in the present and in the future, the company has carried out a good planning stage. The theoretical implication is that using SWOT human resource planning can be done well. The managerial implication is that the policy is in accordance with the fulfillment of human resource needs with two internal and external sources. 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