Volume 7, Issue 12, December – 2022 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Questioning the Effect of Employment Conditions,

Welfare Facilities and Middle Managers in
Lime Stone Mining Activities of Pt. Tonasa
Cement Indonesia, Tbk. from A Japanese
Management Style Perspective during
Covid-19 Pandemic and the New Normal Era
Hariyono Gunawan
Magister Sains Manajemen,
Universitas Hasanuddin, Makassar,
Indonesia

Idayanti Nursyamsi Nurdjanah Hamid

Professor of Human Resource Management, Associate Professor of Human Resources Management,
Universitas Hasanuddin, Makassar, Universitas Hasanuddin, Makassar,
Indonesia Indonesia

Abstract:- This article employed a documentation Indonesia, Tbk. (TCI).

analysis and in-depth observation techniques on the
situation faced by one of the biggest limestone mining The internationalization of business and the emergence
companies, PT. Tonasa Cement Indonesia, Tbk. (TCI). of multinational companies have been major trends in recent
Employment conditions and welfare facilities become the years. Indonesia as one of the countries located in South
focus of this article as they influence employee East Asia has also attracted many foreign companies to
performance in the said company. Nevertheless, during establish their business there. Some of them are Japanese
the primary data gathering, we found some conflicting foreign companies. The Indonesian Foreign Japanese
aspects that need to be addressed directly by the Human company as a comparison to the subject of this studyadapts
Resource Division and Board of Directors. The article their organizations according to their worldwide
closes with some summary and recommendations that involvement and strategies.
we think would contribute to the field of Human
Resource Management to build a strong case study and In the process of sustaining TCI’s future in this
thorough qualitative analysis on the subject related to circular economy, we advise TCItoadoptthe uniquenessof
employment conditions, welfare facilities, and middle the Indonesian Foreign Japaneseand their Japanese-style
managers. management alongwith their global organization structure
within TCIs daily organizational activities. A critical review
Keywords:- employment conditions, welfare facilities, of the literature both sourced from Japanese and English
employee performance, middle managers, Japanese-style have revealed the conceptual framework of this study by
management, an Indonesian mining company, PT Tonasa looking at the unique Japanese-style management and some
Cement Indonesia Tbk. current issue that evolved around its practices in Japan
which are believed might influence TCI practices. The
I. INTRODUCTION nature & importance of Japanese middle managers in
Japanese today’s corporations is thus discussed. A
The covid-19 pandemic haspassed, however, the preliminary review of various management approaches is
remnant of the virus known as Omicron still exists in also discussed. Finally, an identification of the problem is
Indonesia. The recent cases of Omicron infection are clarified and our analysis andresults of this qualitative study
catching Indonesian’s society attention as the mass media are presented.
and social media tend to report them regularly. This has put
the Government of Indonesia (GoI) in this New Normal Era Dyna (1972) explained that multinational organization
to re-advise Indonesian citizens on the wear of face masks, primarily deals with the ways of establishing the internal
hand sanitiser, etc, relationships of authority, responsibility, communications,
and control of a company to achieve its basic purposes and
This article employs a qualitative method analysis to objectives. It also determines the functional and other
unearth our primary research question on how employment interrelationships among people within the firm to manage
conditions and welfare facilities affected employee and perform the work of the enterprise. The organization
performance in the biggest lime mining company in the sets up the structure for decision-making within a company
Eastern Provinces of Indonesia, PT Tonasa Cement

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Volume 7, Issue 12, December – 2022 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
and strives to blend decision-making with specialized II. OBJECT AND PURPOSE OF THE STUDY
expertise on a variety of short and longer-range problems
that a company encounters. Before going deeper to explain the above statement,
we strongly believe we need to look back to the role of a
Thus, multinational companies want to anticipate and middle manager in Japanese history. According to
influence their future rather than be victims of it. They want Hasegawa (1985), middle managers are as indispensable to
to use their corporate resources – management, personnel, the existence of Japanese corporations as food and air are to
technical and business know-how, funds, and other assets – human beings. When Japan entered the mainstream of
more efficiently and productively. Managers as one of the international affairs in 1868, middle managers played a
company resources are the most important central central role in assimilating and introducing the foreign
component which guides its companies to achieve its expertise – technological, economic, political, and military –
previously stated purposes and objectives. needed for the modernization of Japan.

It is a recognized fact that managers play a crucial role The situation after World War II was similar, for the
in today’s global industrial society. Megginson (1963) nation was once again starting from scratch. With the defeat,
pointed at the contribution of managers to economic the middle manager that had devoted themselves to the war
development by saying: “...it is becoming evident that one of effort now turned their energies to the task of reconstruction.
the main reasons for this fantastic economic development At first, many were jobless; the majority soon found
has been the vitality, energy, and practical intelligence of the employment in private industry. Driven by the need to earn
men who have managed it...”. their keep, as well as by a professional sense of
responsibility, they tackled the arduous job of resurrecting
Industrial growth contributes significantly to the the nation’s industry. This sense of dedication and
economic development and the civilization of the country. commitment to the job is so prevalent in Japanese
Industrial growth depends a great deal upon the abilities and companies that it endows them with a special atmosphere, in
skills of the managers in managing their national or which work takes precedence over private life.
multinational industrial corporations. Farmer and Richman
(1965) state: “We view management as the single most This atmosphere we believe can repeat itself today and
critical social activity in connection with economic progress. we believe the crucial role of middle managers in guiding
Physical, financial and manpower resources are by TCI to cope with the problem back home in Japan and
themselves passive agents; they must be effectively successfully operating its business outside its own country is
combined and coordinated through sound, active dispensable if their companies are to survive the financial
management if a country is to experience a substantial level crisis of today’s economy.
of economic growth and development. A country can have
sizeable natural and manpower resources including plentiful Thus, we choose to study middle management atTCI
skilled labour and substantial capital but still, be relatively for several reasons, they are:
poor because very few competent managers are available to  The crucial and unique role of the middle manager. He
put these resources efficiently together in the production and has to translate objectives and policies coming from top
distribution of useful goods and services.”. management in operational terms. Implements and
supervises plans and decisions. Compresses the data
Today, before the recent financial crisis in Asia coming from lower levels of the organization and from
followed by Japan (Akira, 1999), a question arises about outside the company in forms useful for upper-level
how Japan’s competitive edge will stay on top and how will decision-making. Coordinates the available resources and
TCI particularly will cope with this problem and succeeds in sustains the effective functioning of the organization.
the future. Apart from the entire problem that Japanese  The middle manager has the opportunity to be promoted
company must face back in the homeland, an assessment of to key positions and top management positions
management candidates for a middle management position responsible for making crucial decisions concerning the
are still one of the most crucial roles even when it is adjustment and development of the business organization
operating in a foreign country. in an ambiguous and ever-changing environment.
This call for research, then, will try to cover the object III. CONCEPTUAL FRAMEWORK
and purpose of our study, shortly after this introduction. We
also try to discuss the conceptual framework of this study by A. Japanese-Style Management
looking at the unique Japanese-style management and some As have been known, lifetime employment (shushing
current issue that evolved around its practices in Japan that Koyo), seniority system (Renkojoretsuseido) and company-
we believe might influence TCI practices. The nature of based welfare facilities (kigyo-nai future Kosei) are three
Japanese middle managers in Japanese today’s corporations main customs that have been developed over the principle of
will also be explained. A preliminary review of various managerial familyism (keieikazoku-shugi) in Japanese
management approaches is discussed. Finally, an companies as a result of the deep-rooted corporate
identification of the problem is clarified and our plan of philosophy of Japanese-style management (Economics,
study is presented. Business & Management Encyclopedia, 1992; Kodansha
International Japanese Encyclopedia, 1990).

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Volume 7, Issue 12, December – 2022 International Journal of Innovative Science and Research Technology
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This philosophy then makes Japanese companies B. Middle Manager
mainly practice annual employment of new graduates and Stoner & Freeman (1992) define that middle
not offer middle management positions to people from management as a term that covers a variety of management
outside its companies based on its lifetime employment & positions between supervisors (lower management) and top
seniority system. However, as shown in a study by Urata & management. The middle management position is a position
Hara (1995) explaining that is not the case regarding: not belonging to the board of directors, reporting to a
 A 1988-1989 survey by the Japanese Ministry of Labor managing director or a general manager, and is above the
indicates some of the following actual hiring situations: position of first-line supervisors. Small organizations
(1) a survey on Japanese company’s rate of employees usually do not have any middle managers, but large and
who have experience working for other companies reveals medium-sized organizations may have several layers of
that mid-career hiring is high among Japanese companies, middle management.
especially in manufacturing, real estate, transport, and
communication industries; (2) when examine by company As a consequence, a middle manager will have either a
size, Japanese large-sized companies show the high rate of top manager or another middle manager from a higher level
mid-career hiring when compared to small and medium- – in large or medium-sized organizations, as his superior. He
sized companies. will have one subordinate or more, but not in a large
 A survey on “important points emphasized in the number. His subordinate is always a manager, either another
promotion to middle managers” by the Japanese Institute middle manager from a lower level or a supervisor (a
of Personnel Survey in 1990-1991 shows, that the manager from a lower management position).
simplistic picture of Japanese companies being seniority-
According to Hasegawa (1986) candidates for middle
based cannot be applied. A survey indicates that
management positions in Japanese companies are from
competency-based factors such as “administrative ability”
inside their own companies, they are:
and “contribution to the company” hold the top positions,
 Newly hired graduates of top universities, whom the
and the rates of stressing seniority factors, such as “age”
company hopes will prove their mettle in intracompany
are low in present Japanese companies.
competition, and
Thus from these surveys, we can assume that among  The pool of men, occasionally women, who have shown
Japanese large-sized companies dominantly in that they are capable of holding a managerial post despite
manufacturing, real estate, transport, and communication the lack of college education.
industries rising a need to hire candidates for middle
management positions from outside their companies, while In addition, candidates for middle management
utilizing the in-house talent already available by promoting positions also can be recruited from outside the company
it to middle management positions. such as:
 Mid-career employees (chute saiyosha). They are usually
Regarding this assumption, Kazuo (1996) explained skilled workers with specialized training who either are
that contrary to popular belief of the lifetime employment scouted by companies ‘in need’, have quit their former job
practice of recent graduates hiring as the primary source of or have become jobless due to, for example, bankruptcy.
new employees among Japanese companies, he observes Their specialist skill is often highly regarded, but their
that many of the new employees are now from other status in the organization is remarkably lower than that of
companies or as categorized by him as “job changers” their colleagues of the same age group as can be seen in
employee. Based on the Survey of Employment Mobility General Council of Trade Unions of Japan (Soho) news
(Koyo DokoChosa) by the Japan Ministry of Labor, shows (White Paper on The 1980 Spring Struggle, 1980). They
that the percentage of recruits from other companies frequently can improve their position by switching to
exceeded the percentage of recruits from recent graduates. another company despite their lower status, and
Even among male workers at large companies, “job  ‘Descent from heaven’ employees (amakudari). This is a
changers” outnumber recent graduates and are an senior bureaucrat who has retired from central
overwhelming majority at small and medium-sized government positions and continued to be hired as a
companies. management executive in private industry. The aim is to
take advantage of bureaucratic know-how, familiarity
Furthermore, an assumption rise from Urata & Hara’s with government procedures, and personnel connections.
surveys that Japanese company is leaving their seniority
system to promote people to a middle management position Azumi (1969) states four ingredients in a successful
and become more dependent on the competency or ability of recruitment and selection policy, they are:
their people. This assumption is supported by Professor  A clear conception of the kind of work for which
Tsuchiya Moriaki& Konomi Yoshinabu’s opinion in their candidates are to be chosen, together with the qualities
book “Shaping the Future of Japanese Management: New and qualifications needed to carry it out,
Leadership to Overcome the Impending Crisis”. According  Knowledge of where to look for possible recruits,
to them, the new hidden assets – the ability of Japanese  Knowledge of how to look for them, and
company employees – must be acquired and developed if  Means of recognizing and assessing the candidates
Japanese companies want to survive the impending crisis of presenting themselves with the qualities and qualifications
today. sought.

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This study supported Hasegawa’s (1986) view. Why the delay?
According to his book, Japanese Style Management:
“Today, however, the selection and training process is beset Of the several reasons mentioned by various
with stumbling blocks. The growth in the size of Japanese management authors, one seems to be the main reason. In
corporations makes it difficult to evaluate the growing the Middle Age, business was held in low esteem, it was
number of candidates for managerial positions. The regarded as a degrading occupation (Koontz, O’Donnel,
inevitable tendency is to standardize procedures and make Weihrich, 1986; Kast & Rosenzweig, 1974). These
them impersonal. This usually leads to placing stress on unfavourable climates begin to change in the 19th century.
seniority and de-emphasizing ability. Once this approach The Protestant ethic and the emerging spirit of capitalism
makes headway in a company, there is an erosion of vitality contributed to the growing emphasis on scientific
and morale, with a consequent loss in the ability to compete investigation and technological application in Western
in the marketplace.” societies. At the beginning of the 20th century, the climate
was favourable for the development of management as a
Furthermore, he pointed out that misjudgments in science. After the civil war in the U.S. large-scale industrial
middle management promotions can threaten a company’s development took place. The industrial revolution, with its
very existence. With the recent slowdown in the economy, emphasis on the technology of production, utilization of
the demand for middle managers is on the decline. The machinery, and the factory system, required the collective
situation has given rise to a class of employees dubbed the organization of men and resources.
“window-side tribe”, a term that refers to middle-aged
workers, who, having failed repeatedly to be promoted to a After the work of Taylor and other members of the
middle management position, simply remain with the scientific management school, management became a
company, sitting in a nice sunny spot by an office window subject of study to many scholars. After the Great
with nothing meaningful to do. Depression in 1929 and after World War II, management
theories developed like mushrooms.
Also according to the author, there is a growing trend
among employees of large companies who fear that they Until present, management theories can generally be
may one day join the “window-side tribe” to consider divided into five. The scientific management school; the
moving while they are still young enough and flexible administrative management theory; the human relations
enough to make the change. Smaller companies welcome movement; the operation research or management science;
such people, especially if they are technicians. Although the and the system approach to management.
phenomenon is still limited for the most part to technicians,
there are signs that it will extend to other classes of workers Because the assessment of management candidates as
who have specialized professional skills. Should this a management activity cannot be studied in isolation,
movement gain momentum the effects on security and independent of other management activities within the
lifetime employment, generally considered the most industrial organization. Thus we believe that a systematic
characteristic features of Japanese-style managerial approach is the most appropriate approach to studying this
practices, are bound to be devastating. problem, especially in the identification of potential middle
managers in TCI.
This restlessness among employees seems to be
focused on those who filled middle management positions in D. Identification of the Problem
large-sized companies. Moriwaki and Yoshinobu (1997) Although there will always be a risk in recruiting people,
explained that middle manager displeasure over the present the risk in positioning “the right middle managers in the
conditions in their company due to the bureaucratized nature right place” should be kept to a minimum as far as possible.
of their firms are possessed of nothing other than the This consideration has to be taken because the decision
prestige of being large. Furthermore, large companies in made by middle managers will have a great impact, either
Japan have become so ponderously structured that they are positively or negatively, on the further operations and
suffocating. Indeed the problem seems to be more complex development of the industrial organizations. Therefore a felt
in large-sized companies and that is where we will need to look for a better or an alternative to the assessment
concentrate our study in the future. method of identifying potential middle managers need to be
developed.
C. The System Approach to Management
Management is a new science with a long history. Thus rise a need to identify potential middle managers
Koontz, O’Donnel, and Weihrich (1986) quoted studies by identifying their common personal attributes and
indicating the attention to and recognizing the importance of leadership capabilities. Managerial effectiveness as an
management in ancient Egypt, China, and Greece. output of management positions needs to be taken into
study. Last but not least, developing a better assessment
No doubt, managerial activities were executed in method to identify potential middle managers needs to be
governmental institutions and industrial organizations since studied in the future.
their existence. Management as science, however, was
founded early at the beginning of the 20th century. With this framework in mind, we organized the
information obtained from a detailed study of Japanese and
non-Japanese literature on the subject and a field study in
several TCIs. Thus the literature will be studied, and

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Volume 7, Issue 12, December – 2022 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
theories and research results (including the few research representatives of the majority, that the employer should
results on the same subject) relating to the assessment and grant six days annual vacation with pay consecutively and
identification of potential middle managers will be explored extend this number with one day every year after two years
and analyzed: of employment, in total not exceeding twenty days.
 to develop comprehensive research projects on the
assessment of management candidates in TCI Based on this legal framework, TCI has designed their
 to look for possible alternatives to developing an employment conditions. Based on the documentation
appropriate strategy to identify management candidates analysis, we observe a substantial disparity between top
with good potential for middle management positions in management, medium-level management, and lower-level
TCI. management position in TCI in terms of annual workdays,
holidays, and leave, and the total number of hours worked.
For our study, we choose TCIsubsidiaries around In lower-level management positions, employees work more
Indonesia which can be compared to a Japanese large-sized days than those in top-level management. Overall, they all
company. Because as has been shown earlier, in Japanese lack 6 days of paid leave in comparison to their fellow
large-sized companies dominantly in manufacturing, real enterprises in other lime mining companies.
estate, transport, and communication industries, the
identification of potential middle managers could well be Moreover, a 5-day workweek system has not yet been
better observed. This is not just due to their nature in fully established in TCI. In 2021 only 23.26% of the active
selecting and recruiting but also to the difficulty of employees enjoyed two days weekends every week, while
determining the right assessment practices that can be used the remaining were under schedules of one day off. Active
in the identification of the right potential middle managers. employees are employees that have been selected by the
Human Resources Division at TCI as a few employees that
Surely, the growth in the size of Japanese corporations have been considered to still work during the Covid-19
makes it difficult to evaluate the growing number of pandemic because they have been shot twice or third
candidates for managerial positions (Hasegawa, 1986; Clark, coronavirus vaccines/booster.
1987). Therefore, the development of the right assessment of
management candidates is more important in large-sized Interesting findings, though, appeared who hold their
companies than in medium and small-sized companies. position in middle- and lower-level management. They are
Furthermore, Japanese large-sized companies are believed to very reluctant to change to the 2 days weekend due to the
be more influenced by the financial crisis in Japan today, costs involved and the productivity lost during the Covid-19
thus affecting their management practices. pandemic. Improvement of this situation is very slow
despite pressure from the labour unions, the Human
To categorize the size of TCI we used the Japanese Resources Division, and the General Board of Directors.
law classification category (Paus, 1966). According to
Japanese law, medium and small-size company (chusho- The slow realization of a five day’s work week for all
kigyo) employs not more than 300 persons or are capitalized employees also can be attributed to the high number of non-
at 10 million yen or less. By this legal definition, any scheduled working hours at a time when Covid-19 hits the
company surpassing these lines of demarcation could be Indonesian community very hard with the number of dead
considered a large-size company (dai-Kogyo). tools reaching the highest that year (2021) as the health
facility could not contain more patients along with the fact
IV. ANALYSIS & RESULTS that the virus had spread all over Indonesian and the world
in general. Nevertheless, when the year 2022 comes, the
Employment conditions and welfare facilities are a number of Covid-19 cases suddenly dropped quite
collective term for that provision which we would rank, for significantly after the new vaccine, booster, arrived in
convenience’s sake, as secondary labour conditions. Some Indonesia. This helps the situation become normal again and
of these provisions are law provided and apply to all this era is known as The New Normal for every Indonesian.
industries, while others are optional and differ per company
in scope and content. In this introductory section, we will V. CONCLUSION & FUTURE PLAN OF STUDY
review a part of Indonesia’s social welfare directly about
business enterprises, starting with employment conditions. This article is only the first part of our study in TCI
and how to strive in a circular economy and the forthcoming
Aspects of work, belonging to the sphere of Industrial Revolution 5.0. We plan to begin the future study
employment conditions, such as working hours, recess, with five management theories that will be discussed shortly
holidays, and safety and hygiene measures, are all stipulated in our study. Emphasis will be given to the system approach
in the Labor Standard Law. This Law, the Labor Relations, to management. The system approach views the industrial
has been promulgated by the GoI to be enforced in any organization as an open socio-technical system and
industry, small and big, including TCI. considers all the primary subsystems and their interactions.
It is hoped that it will provide general management
The Labor Standards Law stipulates for instance, that knowledge and serve as a general study frame.
working should not exceed eight hours a day, that the
employer must provide one rest day per week to the worker,
and that the number of working hours can be extended if it
has been agreed upon with the labour union or the

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Volume 7, Issue 12, December – 2022 International Journal of Innovative Science and Research Technology
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