Human Resource Management Implementation at Startup Arena Corner
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International Journal of Research and Review
DOI: https://doi.org/10.52403/ijrr.20210826
Vol.8; Issue: 8; August 2021
Website: www.ijrrjournal.com
Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237
Human Resource Management Implementation at
Startup Arena Corner
Farah Agharid Zahra1, Tantri Yanuar Rahmat Syah2, Rhian Indradewa3,
Diana Fajarwati4
1,2,3,4
Faculty of Business Economics, Esa Unggul University, West Jakarta, Indonesia.
Corresponding Author: Farah Agharid Zahra
ABSTRACT exact extraordinary when pure ideas have
been presented that creates value in the
Arena Corner is a new startup engaged in economy. The problem begins when we
applying sports venue rental related to look at statistics related to startup success
everything that smells of sports. In an effort and failure and find many startups that have
company's performance, it is necessary to
failed and been forced to leave the
implement good human resource management.
The following purpose of this research is that competition arena. Despite emerging as a
research aims resource management (HRM) in small business, startups create jobs and lead
the growth of Arena Corner startup. Considering to innovation and competition. In their
Arena Corners of new digital startups are symbolic importance to economic growth,
growing and require many human resources in they bring benefits to their owners,
the They need. Information systems so that the employees, and investors because of their
proper implementation of HRM correct maintain rapid growth. The startup growth model is
arena corner in the competitive digital startup different, and each startup has its growth
competitive. The method applied uses human model that is vulnerable to change over time
resources the approach with spectrum (Nascimento, 2017).
recruitment, personnel, people development,
From the beginning to the growth
compensation benefit, and industrial relations.
The results of this research show that the stage, these startups are inevitably faced
application of HRM becomes a necessity for with various challenges and obstacles. So,
startup companies. In winning competition, it is simple structure changes so that the need to
necessary to create a training center to print specialize in operations will increase the
human resources that understand technology for importance of HRM's role in these
the needs of the company and the needs of the circumstances (Blau, 1970). Therefore, the
startup ecosystem and can add income and new role of HRM for startups becomes more
businesses in the era of startup the competition. import critically more complex and must
deliver good results to stakeholders. Here,
Keywords: Human resource management the importance of a deeper focus on human
mission; Human resource management
resources as a prominent factor in gaining a
practices; HR startup, Arena Corner.
competitive edge and distinguishing
companies from each other is becoming
INTRODUCTION
Every year thousands of new increasingly apparent (Dana et al., 2016;
startups emerge in the hope of success and Devine et al., 2019; Garousi et al., 2020),
become one of the businesses experiencing and companies that are aware of uncertainty
great success in a limited time (Akula, will pay attention to human resources that
2015; Jafari-Sadeghi et al., 2020a; Jafari- are more productive than companies. When
Sadeghi et al., 2020b). This seems to an discussing human resources for startups, it
International Journal of Research and Review (ijrrjournal.com) 185
Vol.8; Issue: 8; August 2021Farah Agharid Zahra et.al. Human resource management implementation at startup arena corner.
means that the mission and practices of sports venues online and in real-time. Direct
HRM appropriate should be designed to competitors today are still not many who
address the short and long-term needs of the start on digital platforms, so it has more
company as well as how to try to meet them. value to consumers. Still, over time Arena
HRM in startups can have a variety Corner must create a strong strategy to stay
of visions and missions where startup life afloat.
depends on human resources (Nascimento, Human Resource Management
2017). In addition, HRM practices should be Strategy is the best step to consider all
more scientific and tailored to the needs of factors related to human resources at arena
companies to increase the impact of corner startup because Human Resource
individuals on startups (Mokhtarzadeh et Management is part of the process to
al., 2018). Today, the biggest challenge manage the most valuable human resources
facing startups is attracting and retaining top assets and ensure everything necessary to
talent. start-ups compete with large meet the goals, suggestions, vision, and,
organizations to attract and retain top talent. mission of the company in the sphere of
HRM practices can attract top talent and Human Resources Management.
retain it in the best way to continue their Based on the explanation described
activities. Therefore, challenges in startups above about the phenomenon of Human
include failures and obstacles in HRM Resource Management in Arena Corner,
practices such as startup weaknesses in human resource management variables
various aspects of recruitment, incentive become an important issue in winning the
systems, performance assessments, et. In a competition of digital startup business today
competitive environment, HRM can add that causes gaps. So that makes the
value to organizations. background of researchers to conduct
Understanding the growth and research entitled" "The Influence of Human
success of startups can increase the Resource Management there is Business
motivation of a new generation to create Arena Corner" (Case Study on Arena
startups (Jafari-Sadeghi, 2020). However, Corner Indonesia). This research aims to
considerable attention is not paid to HRM examine the role of HRM in the initial
on startups for a variety of reasons. This startup process up to the development
problem exists globally and can be seen in process.
real terms within our country.
Understanding employer and employee LITERATURE REVIEW
perspectives HRM's role in startup growth Human Resource Management
can help employers to take steps to align The concept of Human Resource
employee perspectives with the company's Management (HRM) was first developed in
HRM mission and practices. On the other academic work in the United States and then
hand, the awareness of entrepreneurs' increasingly applied (Mahdiraji et al.,
shortcomings in the company's HRM 2019a). HRM is a strategic, integrated, and
practices cannot be a way to strengthen comprehensive approach to the recruitment
HRM practices in the company. level development well-being of people
Arena Corner is a web mobile-based working in the organization. It includes a set
application company developing, where the of policies designed based on management
operational reach is in the DKI Jakarta area decisions to achieve the organization's
has the concept of leasing services for desired goals (Mahdiraji et al., 2019). HRM
various sports venues. When high mobility practices companies must manage human
conditions make sportsmen need an resources to achieve optimal goals and
application that runs on all digital platforms, sustain the enabled society. Assuming that
thus providing convenience to its users in the main purpose of any business is to
helping to provide easy booking and get increase profits or generate and deliver the
International Journal of Research and Review (ijrrjournal.com) 186
Vol.8; Issue: 8; August 2021Farah Agharid Zahra et.al. Human resource management implementation at startup arena corner.
desired services, HRM practices can be a competitive advantage, while at the same
strategic and efficient way to recruit time focused on professionalizing the
employees who fit, motivate, and engage company and avoiding the ossification of
them, increase flexibility, and improve innovation thinking (Nascimento, 2017;
profitability (Mahmoud et al. 2019). Sukumar et al., 2020). Each startup faces
Therefore, formulating HRM practices can different challenges at different stages of its
be considered as managing people to life cycle (Colombo and Piva, 2008),
achieve organizational goals and improve including financial challenges, human
performance (Dana, 2017). HRM's resources, support mechanisms,
practices include job design, recruitment environmental elements (Salmanzadeh and
and selection of employees, performance Kawamorita, 2015). HRM comes as a
assessment, training and Development solution to address emerging workforce
career planning, compensation, labor challenges and business complexities once
relations (Orakwue and Iguisi, 2020). startups progress throughout the five stages
of development (Nascimento, 2017).
Startup Hornsby et al. (2005) consider job
In recent years, it is been said that design, assigning tasks and objectives,
the definition of a startup should not to be training and development, employee
based on the number of employees because relationships, working conditions, selection
there is no standard measure in this regard. and hiring, incentive strategies, performance
Believe that the definition of a startup assessment as the most common HRM
should focus more on revenue than the practices that affect employee motivation
number of employees; although, these and satisfaction. They also form the
criteria can also depend on the type of theoretical framework of this research. The
industry. The researchers argue that it's term "startup" has been widely used since
easier to determine which companies aren't the 1990s to describe young companies,
startups than to determine the opposite. As a tech companies, and small companies.
case in, a reliable, repeatable, scalable, and Startups are usually recognized as small
proven business model that no longer companies (with a relatively small number
requires venture capital should no longer be of employees) with a high growth rate that
recognized as a startup (Blank, 2014). Ries has recently rend market-related dated
(2012) defines startups as human entities technologies (Robehmed, 2013), and due to
created to provide new goods or services the ease of establishment, they have
under extreme uncertainty. attracted the attention of entrepreneurs to
Startups cover five stages of growth. test their capabilities by building their
In the first stage (existence), the main businesses (Gering and Conner, 2002; Hajia
problem of the business is getting clients et al., 2015; Jafari- Sadeghi et al. 2019).
and delivering products/services. In the
second stage (survival), the main problem is HRM Role in Startup
shifting the company from mere existence to HRM affects all aspects of the
a workable relationship between income and organization because IT supports employees
expenses. In the third (successful) phase, who are the most important business assets.
owners face the decision of exploiting the Therefore, employers need to be aware of
company's achievements and expanding or HRM decisions from the beginning (Khan,
keeping the frying pan stable and detached. 2017; Sadet et al., 2019a,b). (Nascimento,
In the fourth stage (takeoff), the company is 2017) conducted a study on the role of
growing fast, and the biggest concern is HRM in startups through interviews with
financing. In the end, in the fifth stage employees and entrepreneurs from the five
(maturity of resources), the company startups. The results show that HRM can
consolidates, tries to find ways to maintain a have several roles in growing startups –
International Journal of Research and Review (ijrrjournal.com) 187
Vol.8; Issue: 8; August 2021Farah Agharid Zahra et.al. Human resource management implementation at startup arena corner.
from strategic to non-strategic. In the study assessed, a common problem facing almost
of HRM practice development in small and all startups is their juggling workforce with
medium enterprises, Rojanapuwadol (2012) various roles and responsibilities resulting
conducted a case study from the point of from attribution. Furthermore, the presence
view of entrepreneurs and CEOs related to of the best talent determines the success or
strategic human resources and labor failure of an organization to remain
relations. The results showed that small competitive in today's fast-changing world.
companies relied on different types of Who is employed is not only important but
networks in recruitment (Mokhtarzadeh et how employees are managed and
al., 2020; Sadeghi and Biancone 2018). maintained is also considered important, as
Although the companies in this study it says? Hiring and retaining a slain
experienced instability in profits, they have workforce is considered a major challenge
been providing formula training since the for startup companies to be successful, and
formative years. With the problem of lack of the reason for this is the organization's
financial resources, they emphasize uncertain climate (Lee et al., 2017).
psychological rewards rather than financial
rewards. In addition, Baron and Hannan MATERIALS & METHODS
(2002) examined the extent to which HRM In this study, qualitative research
is important in the new economy. Some method was applied with study approach
commentators have recently stated that the and application of HRM role in Arena
goal of building a managed company has Corner business. Qualitative research is
been unprofitable. "Building to flip" has often used to find complex properties of
replaced "building to last" so that phenomena, which aim to describe and
entrepreneurs and their financial backers are understand phenomena from researchers'
looking for a treasure trove of technology. point of view (Leedy and Ormrod, 2005).
The new economic turnaround represents Qualitative research relates to the meaning
the development of the organization as (at of phenomena rather than measuring and
best) irrelevant or (at worst) a drag source of evaluating them. Yin (2003) states that case
organizations in the world that assess on studies do empirical investigations
internet speed, a futile diversion of the time investigating contemporary phenomena in
and energy of leaders from more important real-world contexts, especially when the
and immediate concerns that must be boundaries between phenomena and
addressed. contexts are unclear. Using case studies in
Kunampurat and Nithila (2018) this study is to provide possible analysis at
argue that retaining qualified employees in a startups, simultaneously analyze more than
labor-intensive, rigorous, and fast working one unit, and increase confidence in results
environment is a great struggle for all compared to single case studies (Pearce et
industries, especially startup companies. al., 2014).
When startups try to provide new
products/services in the market, there are RESULT AND DISCUSSION
many challenges for their companies, such Human Resource Management Planning.
as problems in the face of competition, Human resource planning is a
uncertainty about the future of the product, strategy or set of steps and approaches to
irregular income at an early stage, changes manage or use human resources (HR) to
in tax policies, and regulated frameworks, achieve a goal/goals set by the company/
high salaries paid by competitors and so on, organization. Human Resources determine
all of which led to challenges in employee the human aspect of management positions
retention at startups. Therefore, there must related to obtaining, training, assessing, and
be the right motivational strategy to retain compensating employees. This includes
employees. As a result of their study being paying attention to their working
International Journal of Research and Review (ijrrjournal.com) 188
Vol.8; Issue: 8; August 2021Farah Agharid Zahra et.al. Human resource management implementation at startup arena corner.
relationships, health, safety, and justice organizational functions, facilitating people
issues. Special human resources are filled (employees) to achieve organizational and
with programs concerned with people individual goals.
(employees) performed in the most effective
Figure 7.1 Human Resource Management Framework.
Human Resources Management beings who perform excellent (high
Objectives performing human assets). To ensure that it
Arena Corner Company has a plan do achieved, the human resource function in
that do arranged in such a way and further the application startup must design
managed well to take into account each side measurement tools for each organizational
of each activity in the planned arrangement management development system,
that aims to contribute development to especially in human beings that do
maintain the company. The short-term goal implemented. Thus, an organization can
is to get human resources that have high ensure that the investment made by human
competence and integrity. The medium- resources related to knowledge, expertise,
Term Objective is to Run a knowledge and behavior will ultimately increase
management program to improve confidence in oneself within the
employees' ability following the needs of organization and the organization's success.
Arena Corner and conduct a performance
evaluation of human resources owned by Corporate Culture and Values
Arena Corner. Long Term Goal to Increase Building a work culture is important
the loyalty of human resources to remain for startup companies to create employee
loyal to work with Arena Corner, then comfort in a work environment but still
Retain employees so that employees' professional. Startups are synonymous with
expertise and knowledge are maintained. the relaxed work culture and not many rules.
Human resource management plays a big
Human Resource Management Targets role in ensuring that your startup can still
The target of human capital is a create a quality work ethic while relaxed.
process run in the organization management Human resource management helps create a
system (in the application startup) designed fun work environment that has a big impact
and implemented is the wealth of human on improving work productivity.
International Journal of Research and Review (ijrrjournal.com) 189
Vol.8; Issue: 8; August 2021Farah Agharid Zahra et.al. Human resource management implementation at startup arena corner.
Conducting refreshing activities for Standard arena corner dress set by
employees is one way to prevent employees the company is sporty where the company's
from stress because they continue to uniform will describe the company so that
struggle with work. Through these activities' employees all levels wear the same uniform,
employees can also build a more solid while for others will know and see that the
kinship. Conflict of opinion tends to be identity of the arena corner company will
found more often at startups. If that increase the motivation of work for
happens, human resource management plays employees. Here is the uniform shape of the
an intermediary role in disputes to maintain arena corner, as shown in the following
a friendly and professional work image.
atmosphere.
PT. Arena Corner Indonesia focuses Company Value
on developing mobile-based application PT. Arena Corner Indonesia has
applications. First time PT. Arena Corner corporate values: Placing Consumers as the
builds a company with an organizational highest priority in all aspects of our
culture that we do so far: Creativity, business. The basic value must be real and
thinking outside the shell, or "Out of the felt in consumers' activities to safely and
Box" we use imagination and insight to comfortably use the arena corner
provide more value for stakeholders. Team, application.
qualified personnel in their fields, loyal and
dedicated to the company, able to build a Assumption
system that can develop talents and potential Competition between companies in
human resources (HR) owned by the the era of globalization is getting sharper, so
company and play a maximum role for the human resources are required must able to
progress and welfare of the Joint. Passion, develop themselves proactively. Human
the spirit of the soul to devote themselves to resources must want to be human beings
the task completely, overcome new who want to learn and work hard vigorously
challenges, improve self-quality, and so that the human potential grows to the
improve performance (teamwork). maximum because HR is a resource that is
Innovation, the spirit of thinking more mean organization. Human resources are
advanced to always look for something new, resources that play an active role in the
to a better goal. In terms of processes, course of an organization and the decision-
methodologies, systems, and viewpoints making process. So, it can be said that an
organization does not mean anything in the
Company logo absence of human resources. Human
The company logo is based on the resources in the company need to manage
company's philosophy and signifies the professionally to realize the balance
company itself. Why do we choose blue, between the needs of employees and the
orange and red? Exposure to short wavy demands and capabilities of the company's
colors such as blue and green gives rise to a organization. That balance is the key for the
feeling of calm in exercising; on the company to grow productively and fairly.
contrary, red and yellow stimulate the desire With professional management of human
to exercise more actively. And a sign like a resources, employees do expect to work
picture in the middle of hoping PT. Arena productively. Human resource management
Corner Indonesia is a company that is called human resource management.
develops in the field of information
technology and shines. Organizational Structure
The company's organizational
Company uniform structure is useful to know the duties,
responsibilities, and authorities of each
International Journal of Research and Review (ijrrjournal.com) 190
Vol.8; Issue: 8; August 2021Farah Agharid Zahra et.al. Human resource management implementation at startup arena corner.
work unit, and then each division must be system does not allow the candidate to get
competent in carrying out its duties and special treatment and follow hiring
responsibilities. The following is the procedures like other candidates.
organizational structure of Arena Corner.
Based on the organizational structure chart Hackathon Contest
of Arena Corner, the responsibilities and In the startup world, it is very
authorities of each position can be described common for technology companies to find
as follows: talented seeds in the world of technology.
The company is also considering holding a
Human Resource Planning competition as a process of finding the best
In the HR planning arena corner, employees.
there is department will plan HR needs up to
five years by using a manpower plan, then Selection System
will run the HRM process as follows. The selection system has a process
to find the right person for the position the
Employee Recruitment company needs, which is treated by
Online Recruitment prospective employees who pass the
There is no denying that several selection process. In general, the process
companies currently do online recruitment phase does carry out as follows: first
to get the desired workforce. Many media administrative selection. Both basic are
professionals such as LinkedIn, Jobstreet, ability tests—third Interview. The four
and JobsDB provide information and even activities on the job training three 3, months
labor recommendations that match the and the fifth are signing the contract to be
company's values if using the premium an employee. Before choosing a qualified
services provided. Companies only need to employee for the company, the company
manage information and profile pages, sort must also be smart to choose who can carry
applicants and summon potential candidates out these responsibilities well. Recruitment
to the company for further proceedings. methods that the company can choose in
cod recruitment such: web companies,
University Recruitment advertising Kalibrr, Jobstreet, and email the
IT-based universities are developing human resource management team should
in Indonesia, and the company believes that be able to identify the recruitment needs of
universities are an ideal place to find each division and know the quality that the
potential candidates to work in the company appreciates from each candidate.
company. The recruitment has done by Teams must also be selective in selecting
working with career divisions with general candidates. Not necessarily someone with
requirements such as IT projects, portfolios, senior experience in a large company has
and experience in the digital field. The what the company needs. In addition, the
selection of universities is chosen based on human resources management team must
the credibility and quality of campus also know what can encourage employees'
graduates recognized by the community. morale and help overcome the problems that
arise. Employees who are accepted will be
Recommendation included in the On-the-Job Training (OJT)
In addition to utilizing recruitment activities for three months to see the ability
through Online media and universities, the and performance of the employee. If the
company is also considering recruiting employee is declared graduated in the On-
workers through recommendations from the-Job Training (OJT) activities, the
both employees who have worked in the employee will be appointing as a permanent
company and related parties to the employee of the company.
company. But with this recommendation
International Journal of Research and Review (ijrrjournal.com) 191
Vol.8; Issue: 8; August 2021Farah Agharid Zahra et.al. Human resource management implementation at startup arena corner.
Learning and Development Employee development improves
Learning and Development aim to the technical, theoretical, conceptual, and
improve the performance of each employee moral skills of employees through training
both in groups and individuals, with this and certification. Training and certification
learning will improve the skills and must be following the needs of the current
knowledge for all employees in a company and future work. Training is an activity
to be part of the management strategy to designed to give students the knowledge and
align the design of goals with the entire skills needed for their current work
vision of the company's existing target (Eriyanto et al., 2021). Development is
mission. learning beyond the current work and has a
long-term focus (Eriyanto et al., 2021)
Coach Human resource development is a follow-up
Trainers or instructors do conduct by step of the labor provision process that aims
companies that are pro-training education to ensure and maintain the available
actions to employees. Trainers provide an workforce to meet the required
important into the progress of the qualifications and be able to perform work
capabilities of the employees to be in line with the company's strategic planning
develops. Coaches who will develop people and achieve the company's objectives as
development are internal, external, and planned.
internal and external coaches. First is the
Internal Coach. The internal coach is an Compensation System
arrangement or a team of coaches assigned Compensation is the entire
from the company to provide training or repayment received by employees due to the
education to employees. Each head of the implementation of work in the organization
section is an internal trainer for his in the form of money or other. In short,
subordinate employees by providing compensation has two dimensions. The first
instructions to get the job done and using dimension is the factor related to money
tools, machines, and others. The nature of (direct), and the second is not related to
development given by the direct supervisor money (indirect) (Imron et al., 2020). This
is continuous as long as the employee compensation relates to money in salaries,
becomes his subordinate. The development wages, bonuses, incentives, and other
carried out by a team by a coach is only benefits such as health benefits, holiday
temporary as long as the training or allowances, meals, leave money, and others.
education is carried out. Internal trainers Direct compensation in the form of wages
only train employees in the company or salaries, bonuses, and commissions,
environment. The second is External Coach. while indirect compensation such as efforts
A person and team of trainers from outside to improve the calmness and satisfaction of
the company must provide development to employees such as benefits. Several factors
employees, whether the coach does bring in affect compensation, namely education,
or his employees are assigned to attend experience, dependents, company
educational institutions or training. The capabilities, economic conditions, and
third is Internal and External Joint Training. employment conditions. The purpose of
Internal and external joint training is a compensation and payroll is to create
combined team of internal and external loyalty and retention of employees,
trainers that provide development to especially non-permanent employees who
employees. This method is best because the easily change jobs. Arena Corner will
trainers will fill each other in providing provide compensation and payroll following
development to employees. employee Key Performance Indicators
(KPIs) to increase work motivation and
Training and Certification
International Journal of Research and Review (ijrrjournal.com) 192
Vol.8; Issue: 8; August 2021Farah Agharid Zahra et.al. Human resource management implementation at startup arena corner.
minimize employee turnover. The rewards Retirement
are financial and non-financial. In doing employee pension, there are
several things of concern to the company,
Job Evaluation such as the age of the employee where it is
Arena Corner conducts performance necessary to take into account the age of the
assessments every six months to determine employee at the time of retirement, then the
salary increases or incentives each year. working period of the employee in the
Performance assessment is useful for setting company, how long he worked as an
policies that the company will take. employee at PT. Arena Corner. It is closely
Assessment needs to carefully and related to the reward to be awarded. The
thoroughly so that employees do their job availability of company funds is also
well to provide satisfaction for patients who influential. The possibility of offering
receive health services. The aspects assessed employees an early retirement plan can be
are knowledge of his work, leadership, consider, and lastly, the pension payment
initiative, quality of work, cooperation, will be made once the employee retires at
decision making, creativity, reliability, least five times the amount of the last home
planning, communication, intelligence, pay.
problem-solving, delegation, attitude, effort,
motivation, and organization. It is group Excommunication
into technical, conceptual, and interpersonal In carrying out the act of termination
relationships. of employment, several things do consider
by the company, among others: The first is
Termination of Employment the cause of the company's condition, it will
Termination of Employment is do given the option to take early retirement
something that in the past few years is an for workers who have worked more than
activity feared by employees who are still five years, or VP Human Resource can
actively working. Due to the faltering advise the CEO the names of employees
political life conditions, followed by the following the quota that been determined.
collapse of economic conditions that affect Employees affected by the termination of
many industries that have to go out of employment are given severance 1x THP
business, termination of employment done and replacement money Rights. The second
very unplanned. Termination of is because of personal conditions, such as If
employment or layoffs is the termination of an employee does not enter work seven days
employment due to a certain thing that in a row without notice and written evidence
results in the expiration of the rights and or a doctor's letter, Commits a serious
obligations of workers or workers and violation according to company rules,
employers (Law no. 13 of 2003 on Harms the company due to negligence of
Employment, article 1 paragraph 25). There work, Detained for unlawful acts or social
are two kinds of terminations or layoffs, norms outside the company or using drugs,
namely temporary layoffs and permanent or Dismissal will do be done disrespectfully,
layoffs. Temporary layoffs are two types, and employees affected by the termination
namely while not working for reasons such of employment will get severance following
as family problems, health, continuing labor laws or employment agreements
education, and others; temporary dismissal between the company and employees
for economic and business reasons of the
company. Permanent layoffs consist of three CONCLUSION
types of atresia or permanent dismissal due The results showed that HRM
to resigning, retirement and death; practices applied by Arena Corner in order
termination; or death. to be able to compete in the digital startup
industry in Indonesia. Refers to the role of
International Journal of Research and Review (ijrrjournal.com) 193
Vol.8; Issue: 8; August 2021Farah Agharid Zahra et.al. Human resource management implementation at startup arena corner.
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