Abstract
Three main issues which growing in Indonesia in the field of human resource management is: outsourcing, mergers-acquisitions, and contractual workers. These issues effect on job insecurity among workers in company. Job insecurity can decrease workers performance directly and company performance indirectly. Authors describe the practice of those issues in several companies in service industries. Authors give recommendation that organization should manage those issues by concern on motivation function through extrinsic and intrinsic motivation.
Highlights
Nowadays, companies in Indonesia are faced by the entry of foreign companies
RECOMMENDATION & CONCLUSION Conceptually, outsourcing, mergers-acquisitions, and contractual workers can cause the emergence of job insecurity
The authors have recommendation to solve this problem based on human resource management functions
Summary
Companies in Indonesia are faced by the entry of foreign companies. For that, local and national companies compete with the similar companies, and with the companies which comes from abroad. Fourth is the likelihood of getting fired is lower than in a permanent position, though a client of the agency can make a request for the temporary worker not to return, even for a minor infraction These three strategies, conduct outsourcing, mergers-acquisitions and use contractual workers will give very valuable benefits to the companies in one hand. They like a coin which has two sides. Multi outsourcing is a framework to enable different parts of the client business to be sourced from different suppliers This requires a governance model that communicates strategy, clearly defines responsibility and has end-to-end integration. Partitioning of intermediate markets occurs as the coordination of production across a value chain is simplified and as information becomes standardized, making it easier to transfer activities across boundaries
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