Labor Efficiency Management in a Power Plant Company Using Data Envelopment Analysis
Santo Aziz Zotuho Wau (a), Syarifa Hanoum (b), Nugroho Priyo Negoro (c), Fadila Isnaini (d*)

a,b,c,d) Department of Business Management, Faculty of Creative Design and Digital Business, Institut Teknologi Sepuluh Nopember
*fadilaisn[at]its.ac.id

Abstract

To achieve company goals, labor is an important resource where the presence and quality of labor in accordance with the company^s strategy and operations will improve or develop company performance in the future. The importance of the role of the workforce makes its management equally important because the strategy or method used in managing the workforce can determine its success. This research will focus on the evaluation of labor management in a power plant company that currently has a workforce with two labor statuses, namely permanent labor and outsourced labor. In order to evaluate the labor management in this power plant company, this research uses the Data Envelopment Analysis (DEA) approach, with the aim of measuring the efficiency of its labor management, and then providing improvement recommendations for better labor management. The DEA calculation model used is input oriented, which will focus on minimizing inputs with constant outputs. Input variables that are directly related to labor management are the reason for choosing this calculation model. The results of the evaluation show that labor management in the last year of the evaluation was already running optimally. However, the implementation of digitalization in the future could improve efficiency by reducing the number and cost of permanent workers.

Keywords: Data Envelopment Analysis (DEA)- Efficiency- Labor- Management- Outsource

Topic: Business and Economic