CHAPTER I
INTRODUCTION
Industry Competition
Tight competition in world of industry has many implications for many business organizations. Organizations are forced to plan corporate strategy, rise needed resources then work and execute the plan efficiently. Many organizations struggling to survive in their industry, their goal is clear to win the competition and lead the industry. To win the competition the most important things is operates efficiently by managing and using resources to achieve corporate goal. In management theory we may know five “M” that needs good handling and management, (1) man, (2) machine, (3) method, (4) money, (5) market. Man or Human Capital are main resources for an organization as they play main role to drive organization’s operations and achieve its goal.
Managing human capital means everything for business organizations to keep the business running and growing. Since human capital is the most main resources for a company, then company needs a good management to develop the human capital. It will be easy for organization to achieve goals when top management able to manage human capital in their organization. But when fails on managing human capital happen, then it leave no choice for organizations beside fail to achieve its goals and downsizing their workforce to avoid bankruptcy
The Turnover
Many people would argue that little turnover within an organization is sometimes good to get rid lower level talent to keep high productivity and workforce output, but it will be a disaster when turnover happen at higher level like executive hijacking. Loosing high talented person also means cost for an organization either it formed as compensations, training cost, or cost for recruiting new person. The lag time until empty position is filled, the company facing reduced productivity, and usually the task will be handled by other employee which means another stressful task for them. Hijacking as one of turnover causes is becoming trend in...