KEY CRITERIA TO EVALUATE CONTRACTOR PERFORMANCE FROM HUMAN RESOURCE MANAGEMENT STRATEGY

• Main Author: Anggraini, Denok
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/83112
• Institution: Institut Teknologi Bandung

The mining industry significantly contributes to Indonesia's workforce. However, shifts in company operations, global demand and supply, and commodity price fluctuations have necessitated changes in workforce composition. This research investigates the key criteria for evaluating contractor performance from a human resource management perspective at PT Freeport Indonesia (PTFI), a major player in the mining sector. The study begins by outlining the challenges faced by PTFI, including the shift towards a higher composition of contractor employees, the regulatory landscape, and trends in human resource management impacting labor practices. It highlights the importance of managing contractor employees effectively to ensure operational efficiency, compliance with safety and labor regulations, and sustainability of operations. To address these challenges, the research identifies critical human resource criteria for evaluating contractor performance. Through a comprehensive literature review and focus group discussions with PTFI's HR and safety experts, the study establishes criteria such as safety performance, compliance with labor regulations, employee competency, and fair remuneration practices. The research employs the Analytical Hierarchy Process (AHP) to prioritize these criteria and assign appropriate weights, ensuring a balanced and effective evaluation framework. Additionally, Pareto analysis is used to identify the most impactful criteria affecting contractor performance, focusing on key factors that contribute to the majority of issues. The study result indicates that critical criteria, such as safety compliance and competency development, are identified as the most important factors in evaluating vendor performance from HR strategy.