Citation:

Salma Azzahra, Sri Wahyu Wijayanti, Asropi. "Proposed Recruitment, Performance Appraisal and Compensation Design for Rumah Makan Oma Queen" International Research Journal of Economics and Management Studies, Vol. 4, No. 3, pp. 32-46, 2025.

Abstract:

This study examines human resource challenges in small and Medium-Sized Enterprises (SMEs) within the culinary sector, using Rumah Makan (RM) Oma Queen as a case study. Common issues in restaurant HR include inadequate workforce planning, lack of formal performance appraisals, and recruitment difficulties. RM Oma Queen, despite recent growth, faces these challenges due to its informal HR practices and heavy reliance on its current manager. Key HR issues at RM Oma Queen include high employee turnover, particularly post-Lebaran, reliance on informal referrals for recruitment, below-market salaries, and the absence of structured performance appraisals. The lack of a formal organizational structure and succession plan further exacerbates these problems, as seen in a failed 2020 branch expansion due to the inability to replicate the manager’s expertise. This qualitative study gathers data through semi-structured interviews and observations with twelve participants, including owners, managers, and employees. It examines HR practices in recruitment, performance appraisal (using the Behaviorally Anchored Rating Scale), and compensation (salary mapping). The study aims to analyze RM Oma Queen’s HR practices and propose strategies for improvement. Preliminary findings indicate informal recruitment, subjective performance evaluations, and below-market compensation, leading to retention issues. Recommendations include diversifying recruitment channels, implementing structured interviews, adopting BARS for performance appraisal, and aligning salaries with market standards. This research provides a practical case study, offering evidence-based HR solutions for SMEs in the culinary sector to improve efficiency and sustainability.

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Keywords:

Compensation, Human Resource Management, Performance Appraisal, Recruitment, Small, and Medium Enterprises.