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1570 THE INDONESIAN JOURNAL OF BUSINESS ADMINISTRATION Vol. 2, No. 13, 2013:1570-1579 FORMULATING COMPANY HEALTH ASPIRATION TO ACHIEVE ORGANIZATIONAL EXCELLENCE BY USING ORGANIZATIONAL HEALTH INDEX (OHI) : CASE STUDY AT PT BIO FARMA (PERSERO) Vonny Franciska and John Welly School of Business and Management Institut Teknologi Bandung, Indonesia vonny.franciska@sbmitb.ac.id Abstract – McKinsey Company found that if an organization want to sustain for a long term, it needs to keeps not only their performance but also its health. As the company that has been sustained for more over 122 years, PT. Bio Farma needs not only sustain but also excellence to achieve their vision to become a global company. PT. Bio Farma needs to knows and then maintains their organizational health in order to keep having high performance for a long term. By using Organizational Health Index (OHI) that has been formulized by McKinsey, PT. Bio Farma could find out their organizational health level and then take some action related to the result. Business recommendation developed as action taken will help PT. Bio Farma to keep having high performance. Organizational Health Index (OHI) contains nine elements that consist of direction, leadership, culture and climates, accountability, coordination and control, capabilities, motivation, external orientation, innovation and learning. There are 37 organizational health practices under the nine elements that measure organizational effectiveness. This research found that PT. Bio Farma has surpassed the requirement of healthy organization but not excellence yet. The company needs to apply some management practices to become its health aspiration. From the analysis, PT. Bio Farma health aspiration recommended is leadership driven. By focus and done well in leadership driven archetype model, PT. Bio Farma is believed can become a sustainable excellence organization. Keywords: Organizational Health Index (OHI), health aspiration, sustainable excellence organization, McKinsey. 1. Introduction PT. Bio Farma (Persero) is a stateowned enterprise which is owned 100% by Indonesian Government. PT. Bio Farma is the only vaccine producer in Indonesia and as the biggest in Southeast Asia. Its position as the only manufacturer of vaccine and anti sera in Indonesia does not make Bio Farma complacency. To face the global competition, PT. Bio Farma keeps to adaptable and innovates in various ways. By producing new products with biotechnologybase to meet the market needs, PT. Bio Farma believes it becomes the key success in the future. Being one of 30 companies that has prequalification from World Health Organization (WHO) from total 200 vaccine producer companies of the world made PT. Bio Farma shows its existence. As stated by the board of directors at annual report 2011, the prospect of vaccine industry is still promising, however PT. Bio Farma should aware to global competition by doing several refinements in organization. They also stated that one of the main focus aspects in management to support company performance improvement is Human Resources. A. Core Business PT. Bio Farma core business is to produces vaccine and anti sera that are classified in five categories, vaccine, anti sera and diagnostic, which are viral vaccine, bacterial vaccine, combination vaccine, anti sera and diagnostic. The distribution of its products cover the national needs and has entered international market. In recent time, PT. Bio Farma has 12 distributors for domestic market and five international agents for global market.

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  • 1570

    THE INDONESIAN JOURNAL OF BUSINESS ADMINISTRATION Vol. 2, No. 13, 2013:1570-1579

    FORMULATINGCOMPANYHEALTHASPIRATIONTOACHIEVEORGANIZATIONALEXCELLENCEBYUSINGORGANIZATIONAL

    HEALTHINDEX(OHI):CASESTUDYATPTBIOFARMA(PERSERO)

    VonnyFranciskaandJohnWellySchoolofBusinessandManagementInstitutTeknologiBandung,Indonesia

    [email protected]

    AbstractMcKinseyCompanyfoundthatifanorganizationwanttosustainforalongterm,itneedstokeepsnotonlytheirperformancebutalsoitshealth.Asthecompanythathasbeensustainedformoreover122years,PT.BioFarmaneedsnotonlysustainbutalsoexcellencetoachievetheirvisiontobecomeaglobalcompany.PT.Bio Farmaneeds to knows and thenmaintains theirorganizationalhealth inorder to keephavinghighperformanceforalongterm.ByusingOrganizationalHealthIndex(OHI)thathasbeenformulizedbyMcKinsey,PT.BioFarmacouldfindouttheirorganizationalhealth levelandthentakesomeactionrelatedtotheresult.BusinessrecommendationdevelopedasactiontakenwillhelpPT.BioFarmatokeephavinghighperformance.Organizational Health Index (OHI) contains nine elements that consist of direction, leadership, culture andclimates,accountability,coordinationandcontrol,capabilities,motivation,externalorientation,innovationandlearning.Thereare37organizationalhealthpracticesunder thenineelements thatmeasureorganizationaleffectiveness.ThisresearchfoundthatPT.BioFarmahassurpassedtherequirementofhealthyorganizationbutnotexcellenceyet.Thecompanyneedstoapplysomemanagementpracticestobecome itshealthaspiration.Fromtheanalysis,PT.BioFarmahealthaspirationrecommendedisleadershipdriven.Byfocusanddonewellinleadershipdrivenarchetypemodel,PT.BioFarmaisbelievedcanbecomeasustainableexcellenceorganization.Keywords:OrganizationalHealthIndex(OHI),healthaspiration,sustainableexcellenceorganization,McKinsey.1.Introduction

    PT. Bio Farma (Persero) is a stateowned enterprise which is owned 100% by IndonesianGovernment.PT.BioFarmaistheonlyvaccineproducerinIndonesiaandasthebiggestinSoutheastAsia. Itspositionastheonlymanufacturerofvaccineandantisera in IndonesiadoesnotmakeBioFarmacomplacency.Tofacetheglobalcompetition,PT.BioFarmakeepstoadaptableandinnovatesinvariousways.Byproducingnewproductswithbiotechnologybasetomeetthemarketneeds,PT.BioFarmabelieves itbecomes thekey success in the future.Beingoneof30companies thathasprequalificationfromWorldHealthOrganization(WHO)fromtotal200vaccineproducercompaniesoftheworldmadePT.BioFarmashows itsexistence.Asstatedbytheboardofdirectorsatannualreport2011,theprospectofvaccineindustryisstillpromising,howeverPT.BioFarmashouldawaretoglobalcompetitionbydoingseveralrefinementsinorganization.Theyalsostatedthatoneofthemain focus aspects in management to support company performance improvement is HumanResources.

    A. CoreBusiness

    PT. Bio Farma core business is to produces vaccine and anti sera that are classified in fivecategories,vaccine,antiseraanddiagnostic,whichareviralvaccine,bacterialvaccine,combinationvaccine,anti seraanddiagnostic.Thedistributionof itsproductscover thenationalneedsandhasentered internationalmarket. Inrecenttime,PT.BioFarmahas12distributors fordomesticmarketandfiveinternationalagentsforglobalmarket.

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    Refer to some researchers and evidences by McKinsey Company, there is finding that if anorganizationwanttosustain fora longterm, itneedstokeepsnotonlytheirperformancebutalsohealth. ScottKeller andCollinPrice, seniorexecutivesofMcKinseyCompany, stated in theirbook,BeyondPerformancethatforcompaniestoachievesustainableexcellencetheymustbehealthy;thismeanstheymustactivelymanageboththeirperformanceandtheirhealth(2011:5).B. BusinessIssueSomemayknowthatinIndonesia,MinisterofStateownedEnterprisehasregulatedhowtomeasurethehealthy levelofStateownedEnterprise.BasedonDecisionMinisterofStateownedEnterprise,PT.BioFarma(Persero)gotscore94whichmeansHealthAAforyear2012,a littlebitlowerthanthepreviousyear,thecompanygotscore95,1thatmeansHealthAAA.Thehealthlevelcriteriaareassessedinthreeaspects,financial,operationalandadministration.Unfortunatelythisthreeaspectsonlymeasuretheperformancelevelofthecompany.As the company thathasbeen sustained formoreover122 years,PT.Bio Farmaneedsnotonlysustainbutalsoexcellencetoachievetheirvisiontobecomeglobalcompany.AuthorhasinterviewedanddiscussedtoHeaddivisionofHumanResourcesrelatedtothisissuethatPT.BioFarmaneedstoknowsandthenmaintainstheirorganizationalhealthinordertokeephavinghighperformanceforalongterm.The lowerscoreofStateownedEnterpriseMinistersassessment in2012mightbecausePT.BioFarmahasnotconcernedyet totheirorganizationalhealth.ByusingOrganizationalHealthIndex (OHI) that has been formulized byMcKinsey Company, PT. Bio Farma could find out theirorganizational health level and then takes some action related to the result. BusinessrecommendationdevelopedasactiontakenwillhelpPT.BioFarmatokeephavinghighperformance(AAA)inordertobecomeasustainableexcellencecompanyinthefuture.2.BusinessIssueExploration

    In thispart, authorattempts to findout factors so assumed tobe the rootofbusiness issue. Suchfactors form conceptual framework of his/her final project. By analyzing factors found in suchconceptual framework, the student could identify one or several significant factors affecting thebusinessissues.Descriptionconcerningconceptualframeworkandanalysisisdescribedasfollows.C. ConceptualFrameworkThis research started from nine element of Organizational Health Index (OHI) that has beendeveloped by McKinsey Company to measure the healthiness of organizations. There are 37organizationalhealthpracticesunderthenineelements thatmeasureorganizationaleffectiveness.Organizationaleffectiveness ismeasured from theprocessof37organizationalhealthpractices inthismodel.Therearetwooutcomesoforganizationaleffectiveness,thosearehealthyandunhealthyorganization. The organization needs to be healthy first to have a change for being sustainableexcellenceorganization.Oncetheorganizationmeasuredhealthy,thenitneedstochooseandapplythe archetype driven of the company. The archetype drive is the formula to help companies tobecomesustainableexcellenceorganizations.

    D. MethodofDataCollectionandAnalysis

    Authorusesmixedmethodresearchthatiscombinedthequantitativeandqualitativeresearch. Quantitativeresearch

    Thequantitativeresearchisconductedbyprocessthequantitativedatafromquestionnaires.Thevalidateddata isanalyzedtofindtheexistingOHIresultofPT.BioFarma.Thisexistingresultthencomparedwiththearchetypesmodeltobechosen.

    QualitativeresearchThequalitativeresearchisconductedbydoinggapanalyzingofcurrentOHIresultofPT.BioFarmawith thearchetype chosen.Thegapanalysis isused to formulate the solution thatwouldbevalidatedbyexpertjudgementinPT.BioFarma.

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    The primary data that is used in this research were obtained directly by the author throughquestionnairesdistributionand interviewanddiscussionwithseniormanagersandmanagers inPT.Bio Farma. The questionnaire is developed by interpreting from the definition of organizationalhealththatisconsistsofnineelementsand37organizationalpractices.ThenineelementofOHIand37practicesasfollows:

    Table1.OrganizationalHealthIndex

    Elements Practices

    1.Direction

    1.Sharedvision2.Strategicclarity3.Employeeinvolvement

    2.Leadership

    4.Authoritativeleadership5.Consultativeleadership6.Supportiveleadership7.Challengingleadership

    3.Cultureandclimates

    8.Openandtrusting9.Internallycompetitive10.Operationallydisciplined11.Creativeandentrepreneurial

    4.Accountability

    12.Roleclarity13.Performancecontracts14.Consequencemanagement15.Personalownership

    5.Coordinationandcontrol

    16.Peopleperformancereview17.Operationalmanagement18.Financialmanagement19.Professionalstandards20.Riskmanagement

    6.Capabilities

    21.Talentacquisition22.Talentdevelopment23.Processbasedcapabilities24.Outsourcedexpertise

    7.Motivation

    25.Meaningfulvalues26.Inspirationalleaders27.Careeropportunities28.Financialincentives29.Rewardsandrecognition

    8.Externalorientation

    30.Customerfocus31.Competitiveinsight32.Businesspartnership33.Governmentandcommunityrelations

    9.Innovation&Learning

    34.Topdowninnovation35.Bottomupinnovation

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    36.Knowledgesharing37.Capturingexternalideas

    Thequestionnairewasdeveloped into two typesof instrumentsbasedonOHImodelasdescribesabove.The first type isabouthealthoutcomeswhichaskabout respondentsextent towhich theyagree.ThisquestionnaireconsistofnineelementsofOHIwhichhasfivepossibleresponseasfollows:

    Table2.HealthOutcomesScale

    LikertScale PossibleAnswer

    1 Stronglydisagree2 Disagree3 Neutral4 Agree5 Stronglyagree

    The second type is about organizational health practices that are consist of 37 practices whichareasks the respondents how often the practices are demonstrated at their organization.Respondentsareaskedtheextenttowhichitistrueoftheirorganizationwherethereare5possibleresponsesasfollows:

    Table3.OrganizationalPracticeScale

    LikertScale

    PossibleAnswer

    1 Never2 Seldom3 Sometimes4 Often5 Always

    Thequestionnaire isrepresented into48 itemsthataccommodatebothhealthoutcomes (9 items)andorganizationalhealthpractices(39items).Theorganizationalhealthpracticeshave37variablesthat interpreted into 39 statements in the questionnaire. There are 36 variables represented 36statements and there is one variable people performance review that represented threestatements. People performance review represented into three statementsdue to its descriptioncouldnotberepresentedinsinglestatements.Characteristicoftherespondentsarethepermanentemployeeswhohaveastrategicposition inthecompanysuchas,DivisionHead,DepartmentHead,SectionHead,StaffandYoungStaff.PT.BioFarmahas fivedirectoratesthatconsistof24divisionswhere there are 489 people that meet that respondents characteristic. As much as 115questionnairecopiesofrespondentsvalidtobeanalysis.Therespondentsparticipatedareshowedasfollows:1.DivisionHead(9) 5.YoungExpert(5)2.DepartmentHead(17) 6.YoungStaff(16)3.SectionHead(31) 7.Staff(26)4.MediumExpert(8) E. AnalysisofBusinessSituationKellerandPriceexplainedintheirbookthatwhenanorganizationsetsaspirationsforitshealththatareasclearandexplicitasthoseforitsperformance,itsignificantlyincreasesitschanceofachievinga successful transformation (2011:58). McKinsey research indicates that organizations need toachieveathresholdlevelofhealthacrossallnineelementsoforganizationalhealth.Specifically,theorganizations need to be above the bottom quartile on each of the 37 practices that drive the

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    outcomesontheseelements.Intheotherwords,anorganizationmustbeabovethethresholdlevelofhealthonall37of themanagementpracticesdefined in the survey.The threshold levelof thebottomquartile is1,25.The researchhas shown thatorganizationsdonotneed toexcel ineveryaspectofhealth.Theyfoundthatacompanythat is inthetopquartileforsixormorepracticehas80% likelihoodofbeing inthetopquartileforoverallhealth,which inturndrivessuperiorbusinessperformance.Sothehealthminimumstandardisabovethebottomquartileonallpractices,buttheyneedtohavesixpracticesatthetopquartiletoachieveexcellentorganizationalhealth.Thereare fourrecipes thatcanbeusedas foundationtobuild theexcellentorganizationalhealth.Therecipesare labeledasarchetype.The fourarchetypesare leadershipdriven,executionedge,marketfocus,andknowledgecore.Afterfilteringthetopquartile,thenitneedstobesortedfromthebiggestmeanvaluetothesmallestto find out what is the strength priority practices of PT. Bio Farma (Persero).There are 13 toppracticesthatarespreadin3differentarchetypesasfollow:

    1. Leadershipdriven,thereare5practicesfitandhasthehighestscore,193.Thepracticesare:Openandtrusting,Performancecontract,Operationallydiciplined,OperationalmanagementandConsultativeleadership.

    2. Knowledge core, thereare3practices fitandhas score102.Thepracticesare:Role clarity,Performancecontract,Professionalstandard

    3. Execution edge, there are 3 practices fit andhas the lowest score, 73. The practices are:Creativeandentrepreneurial.Talentdevelopment.Topdowninnovation.

    a. HealthAspirationThequestionnaireresultfoundthatallof37itemspracticesofPT.BioFarmaareabovethebottom

    quartile(1,25)andthereare13itemsare layingonthetopquartile(above3,75).It ismeanthatPT.BioFarmahasmettherequirementconditionofhealth.

    Leadershipdriven reached thehighest scoreandbecomeas thedominantarchetype inPT.BioFarmawhichmean the company strength.Keller andPrice alsomention at their finding, that it isharder foranorganization tochange itsarchetype than togo fromunhealthy tohealthywithin itsarchetype(2011:71).ItmeansthateasierforPT.BioFarmatobeasustainableexcellencecompanybydoingtheleadershipdrivenarchetyperatherthanhavetomovetotheotherarchetypes.b. RootCauseAsdiscussedbefore,tobeasustainableexcellenceorganization,PT.BioFarmaneedstoachieve

    well intheirperformanceandhealth.Tomake limitation inthisresearch,PT.BioFarma isassumedhas a high performance due to its achievement score of Stateown Enterprise health levelassessment got Health AAA in 2011 and Health AA in 2012. Refers to this assumption, thisresearchdiscussionfocustohealthaspectsoftheorganization.DuetotheOHIresultwherePT.BioFarmahassurpassedtherequirementofhealthyorganization

    butnotexcellenceyet,thenitneedstodeterminewhicharchetypethatshouldbechosenanddonewell in the company. This archetypewill be the health aspiration to be focused in order enablepeoplereachtheperformanceaspirationoftheorganization.Asahealthyorganization,PT.BioFarmadoesnothavetochangetheirbusinessstrategy,sothatit

    does not need tomake a transformational change. The needs of PT. Bio Farma is choosing thearchetypetobefocusedandappliedwellinthecompanyinordertobecomeexcellenceandachievetheirvision.3.BusinessSolutionF. AlternativeofBusinessSolutionRefers to the archetypesmodel, leadership driven has the biggest result of aspiration in PT. BioFarma.Thisarchetype is recommended tobeapplieddue to itsdomination rather than theotherarchetypeexecutionedgeandknowledgecore intheorganization.Asdiscussedatthepreviouschapter,PT.BioFarmawouldeasier tobecomeorganizationexcellencebykeepingon the lineoftheirstrengthat leadershipdrivenarchetypemodel.Theydonotneedtomakeatransformationalchangewhilestillontheirdominantarchetypetodevelop.

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    G. AnalysisofBusinessSolutionTo achieve thepriority as same as thearchetypemodel, there shouldbe a target tobedesigned.ComparingthetargetwithOHIexistingresult,table4showsthegapswithinit.

    Table4.LeadershipDrivenGap

    No. LeadershipDriven Mean Target Gap1 Careeropportunities 3,43 4,25 0,822 Open&trusting 4,04 4,04 0,003 Performancecontract 3,90 4,00 0,104 Inspirationalleaders 3,69 3,90 0,215 Strategicclarity 3,48 3,85 0,37

    6 Peopleperformancereview 3,47 4,00 0,53

    7 Operationalmanagement 3,76 3,76 0,00

    8 Operationallydisciplined 4,21 4,21 0,00

    9 Consultativeleadership 3,87 3,87 0,00

    10 Consequencemanagement 3,29 4,00 0,71

    Targetisdeterminedbyconsideringthepriorityofthepracticesinitsarchetype.ThetargetisusedtoknowthegapbetweenexistingsituationandfutureconditionrecommendedtoPT.BioFarma.Atthisarchetype,thereare fourpracticesthatPT.BioFarmahasalreadyachievewellcomparedwiththemodel,whichareopenandtrusting,operationallydisciplinedandconsultativeleadership.Openandtrusting isatthesecondplaceasmatchasthearchetypemodel.Theotherpracticeoperationallydisciplined is at the first place,much higher than the archetypemodel. It is also happened toconsultativeleadershipandoperationalmanagementwhichareatthefifthandsixth,higherthanthearchetypemodelwhereplacedatseventhandninth.Itmeansthatthereisnogaptobefilledinthisarchetype.PT.BioFarmaneedstokeepmaintainingthesefourpractices.Ontheotherside,performancecontract is inPT.BioFarmatoppracticesbutthere isgapwiththepriorityof thearchetypemodel. Its rank fifthare lower than the requirement third, so thispracticealsoneedsdevelopment to fill the rankgap.Fivepractices remaincareeropportunities,inspirational leaders,strategicclarity,peopleperformancereviewandconsequencemanagementintheleadershipdrivenmodelarelayinginsecondquartile,notinthetoppracticesofPT.BioFarma.Sothat, itneedsmoreefforttofillthegapsbecausethecompanyhaveto leverage it fromsecondquartiletothetopquartilefirst. CareerOpportunities

    Thecompanyneedstodevelopthispracticeandmake ittobethehighestpriority.It isbecausethehighestpriorityoftheleadersinthisarchetypeistobuildapipelineoffutureleaderbycreatingcareer opportunities. This archetype guide people in the company to be a leader where theleadershipislearnedbydoing.PT.BioFarmashouldprovidingcareeranddevelopmentopportunitiesinordertomotivateemployee.Thecareerpathprogramsrecommendedare:

    1. IndividualCareerPath2. InternalMovementProgram3. JobTenderProgram

    Thedevelopmentcareerprogramrecommendedare:1. ManagementTrainee(MT)

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    2. ManagementDevelopmentProgram(MDP) PerformanceContractThefollowingarethestrategytodevelopperformancecontract(JimJoseAssociate,2003):

    1. Startwithperformanceexpectationsgoals.2. Includemilestones.3. Scheduleaccountabilitiessessions.

    Attheendoftheevaluationperiod, individualsandgroupsareevaluatedbasedonhowcloselytheactualperformancemettheperformancecontract. InspirationalLeadership

    The inspirational leaderprogramwillhelp leadersbuildthe leadershipskillstheyneedto inspireandmotivatetheirteamstogreatersuccess.Todevelopthe inspirational leaders,themanagementhas to understanding what qualities that are necessary. Training and development program arenecessarytocreateinspirationalleaderscontinuously.

    StrategicClarity

    PT.BioFarmashouldensurefivestepsofstrategymanagementprocess(BatemenandZeithaml,1990:185) internal assessment, environmental analysis, strategy formulation, strategic control arerunningwelltoachievethestrategicclaritytarget.Themostimportantstepishowtoimplementandcontrolthestrategy,becausenomatterhowgreatthestrategyplan itmeansnothing if itdoesnotimplementandcontrolwell.

    Themanagersshouldcreatestrategymaptodescribethestrategiesformulatobesharedtotheirpeople.An integrated system connected to alldivisions canbeused for sharing all the strategiesinformation(e.g.,goals,targets)toallemployees.Thestrategiesareaccessibletoallpartiesofthecompanywithsomeprivilegebasedonjobposition.Themonitoringstepisalsodoneinthissystem,wherethemanagersshouldreportallthestrategiesprogressthroughthesystem. PeoplePerformanceReview

    Aspartofperformancemanagement system, thispracticeare strongly related toperformancecontract practice. The deficiency in recent appraisal system can be enhanced by using the resultapproach.The resultapproach focusesonmanaging theobjective,measurable resultsofa jobofworkgroup.

    The subjectivity can be minimized from the measurement process, relying on objective,quantifiable indicators of performance where the result are the closest indicator of onescontributiontoorganizationaleffectiveness.Throughthispractice,PT.BioFarmashouldhas:

    1. Peopleperformanceassessmentprogram2. Peopleperformancereview3. Individualappraisal

    ConsequenceManagementConsequence management program is linking rewards and punishment to individual

    performance. Consequence management practice is divided into positive consequence (rewards,incentiveandrecognition)andnegativeconsequence(punishment).Anappropriateconsequence iswhentheemployeesachievetheirperformancecontract,thecompanypraise,encourage,recognizeandrewardthem.Ontheotherhand,whentheyarenotdoingwhattheycommittedinperformancecontract, the company gives them negative consequence and engages them in a conversation tounderstandwhyprogresshasnotbeenmade.

    PT. Bio Farma has to ensure the rewards and punishments are given as the objectiveconsequencesofindividualperformance.Itistheessentialofconsequencemanagementpractice. ExpertJudgement

    Tovalidatethebusinesssolutionrecommendation,authorconducted interviewanddiscussiontomanagersfromHumanResourcesdivisionandseveralseniormanagersinPT.BioFarma.

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    4. ConclusionandImplementationPlan

    H. ConclusionThereareseveralpointstobeconcludedinthisthesisresearch: PT.BioFarma ismeasuredasahealthyorganizationbasedonOrganizationHealth Index (OHI)

    model. The highest score of management practices PT. Bio Farma is operationally discipline and the

    lowestisemployeeinvolvement. PT. Bio Farma has 13 management top practices recognized as the strength spread into 3

    archetypesmodel leadershipdriven,executionedge,knowledgecorewherethedominant isleadershipdriven.

    PT.BioFarma shouldapplyanddonewell the leadershipdrivenarchetype tobea sustainableexcellenceorganizationinthefuture.

    Therearesixmanagementpractices inPT.BioFarmathatneeddevelopmentandfourpracticesneedtokeepmaintaining.Thesixmanagementpracticesneeddevelopmentare:1. Careeropportunities2. Performancecontract3. Inspirationalleaders4. Strategicclarity5. Peopleperformancereview6. Consequencemanagement

    PT.BioFarmahasvalidated the resultandagreed toconsider implement thebusinesssolutionrecommended.

    PT. Bio Farma should conduct the OHI survey again after one year implementation of theprogram.Itpurposestoevaluateandmeasuretheprogrameffectiveness.

    I. ImplementationplanAftervalidatedthebusinesssolutionrecommendation,the implementationplanoftheprograms

    areshowedattablebelow:

    Table5.ImplementationPlan

    No LeadershipdrivenProgramtodevelop PIC Time

    1Careeropportunities

    Careerpath

    TM Oct2013

    1.Individualcareerpath2.Internalmovement3.JobtenderDevelopment

    KM Sept2013ManagementDevelopmentProgram(MDP)

    2 PerformancecontractPerformancecontract PM

    Oct2013

    3Peopleperformancereview

    1.Assessmentprogram

    PM Oct20132.Performancereview3.Performanceappraisal

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    No LeadershipdrivenProgramtodevelop PIC Time

    4

    Consequencemanagement

    Consequencetoindividualperformance

    PM Oct2013

    5 Inspirationalleaders

    1.Trainingprogram KM Jan20142.Developmentprogram

    6 Strategicclarity

    ImplementingStrategicManagementProcess

    CS,OD,IT

    Oct2013

    PersoninCharge(PIC)TM : TalentManagementDepartmentPM : PerformanceManagementDepartmentKM : KnowledgeManagementDepartmentOD : OrganizationDevelopmentDepartmentCS : CorporateStrategyDivisionIT : InformationTechnologyDepartment BudgetingBudgetingisneededforproposingtheprogramsbudgetthathavenotallocatedin2013.Careerpath,performance contract, people performance review and consequence management already haveallocatedthebudget in2013.TheseprogramsareplannedtobefinishedatSeptemberandwillbeimplementedatOctober2013.TheotherprogramsMDP,inspirationalleadersandstrategicclarityhavenotallocatedthebudgetin2013,sothattheseprogramneedtosetbudgetingtobeproposedin2014. SocializationSocialization isnecessary forallprogramproposed. Itneedstobeunderstoodwelltoallpeople inentirecompany tomeet theobjectivesof theprograms.ThePICsof theprogramshaveminimumdurationonemonthbefore implementationtoensurethesocialization is receivedandunderstandwelltoalldivisionofPT.BioFarma.

    EvaluationEvaluation isthe importantpartofthe implementationplan.Theevaluation isdonebyconductingOHIsurveyattheendof2014.Thissurveywillmeasuretheeffectivenessoftheprogramsandhowclosetheprogramseffectivenesstomeetthetargettobeasustainableexcellenceorganization.ReferencesAnnualReportPT.BioFarma(Persero),2011.Bateman, T.S., Zeithaml, C.P., 1990,Management Function and Strategy,Boston,USA: RichardD.

    Irwin,Inc.Cascio,W.F.,2003,ManagingHumanResources,NewYork,USA:McGrawHill/Irwin.http://www.biofarma.co.id/index.php/home.html

    James,G,2012,7TraitsofTruly Inspiring Leaders, July9th2012.QuotedonApril4th2013fromhttp://www.inc.com/geoffreyjames/6traitsoftrulyinspiringleaders.htmlJim JoseAssociate,2003,ManagingEmployeePerformance through PerformanceContract,January 13th 2003. Quoted on March 18th 2013 from

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    http://www.jimjoseassociates.com/newsletter/SS01132003.htmlKeller,S.,andPrice,C.,2011,BeyondPerformance,NewJersey,USA:JohnWiley&Sons,Inc.

    KeputusanMenteriBadanUsahaMilikNegaraNomor:KEP100/MBU/2002tentangPenilaianTingkatKesehatanBUMN.

    LRNcorporation,2010,Inspirationalleadership.Noe,R.A.,Hollenbeck, J.R.,Gerhart,B.,Wright,P.M.,2010, HumanResourceManagement,New

    York,USA:McGrawHill/Irwin.Palmer,I.,Dunford,R.,andAkin,G.,2009,ManagingOrganizationalChange:AMultiplePerspectives

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