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Personnel management was the concept and techniques we need to carry out the people or personnel aspect of our management job. Personnel management in organization was mainly focus on the employees' management for example; determining numbers of employees is adequate, selection, monitoring, job analysis, compensation and so on. As is discussed in the article "The future of human resource management" by Seyed-Mahmoud Aghazadeh, there are few numbers of personnel issues was been stated in the article like selection, retaining employees, system issue, layoff, cutback and etc. There are two of it is mostly discussed in the article which is selection as the more important issue and dealing employees during layoff and cutback.
Employee selection is important in every organization. Selection is a decision making process aimed at identifying the most suitable candidates for the job. Hire the wrong person for the job can causes high turnover, waste time with useless interviews, high cost in training and development and more. Employees who haven't the right abilities won't perform effectively, and performance will therefore suffer. Effective screening or interviewing was important because of what it costs to recruit and hire employees. A good selection is said to be vital because of the legal implication of doing a poor job of selecting employees. It is very important in selecting, human resource department must be as careful to define the job demand and human requirement as for any job. Many companies make the mistake of evaluating based on their own personnel skills that can lead them to make the right decision in hiring the suitable people for the job. Selection process should be done carefully to avoid from doing the wrong decision. A doing well organization was actually the company that can attract and retain potential and intellectual employees that can deal with the challenges in the business world.
However, to attract and retain potential and suitable workers, organization needs to offer the better benefits package to the employee due to what they want and need. As stated in the article, partnership approach was been stated as how good the executive treat their employees, that's how their employees will treat back to them. This is mean by if employees reach the job satisfaction, employees will usually work hard for the organization in attaining the organization's goal. Thus, by retaining the potential workers, innovative and flexible benefits was to be offer to the employees. The way of keeping employees happy and productive is by spotting what is the employees need. Due to the diversity workforce, every employee has their different want and need and this is where human resource department is here to identify the needs and wants and offer the best package to the employees. For example, a part time student that currently working in the organization that needs to attend classes twice a month, and to retain this kind of employee, company can approve their need whereby allow the employees to take unpaid leave twice a month. Once need have been solve out, compensation need to be set up fairly due to the employees' position and work task. A fair compensation must fit to the employees and human resource department are responsible to make employees' understand why is the compensation are different among each of the employees. By taking the previous example, is impossible for workers that take unpaid leave twice a month have the same paid another worker that work everyday in a month.
Moreover, organization need to build a better benefits package as stated in the article to attract, reward and retain potential workers. Having attracted and selected appropriated qualified and skilled candidates, it is necessary to reward them so they will accept the job, but to also ensure the organisation offers rates in which it can sustain itself. Remuneration is linked to the regulatory framework in that pay rates are often determined after negotiation between employer and employee representatives collectively (trade unions) or with the employee directly. Retaining workers was usually add on value to the organization by improving the productivity better then recruit and train new worker which have the higher labour cost. The main cost of bringing in new employees can usually impact the shareholder turnover as human resource department need to spend on the orientation, training, and more. Training was undertaken to attract and retain an adequate supply of people with skills and competencies that meet the organisations goals. Development prepares the employees for future opportunities through the process of acquiring new knowledge, skills and attitudes. In such explanation, training can usual distract the productivity as new employees was still in learning and slow in the team, nevertheless, development for the existing employees can regularly continue with the productivity and learning fast in improvement of the production.
In term of this, inducements shouldn't be only motivating employees but should also make employees understand this is how much they deserve on how much they work. No matter what, training and development cannot stay away from the experience or internal labour because of the globalization and technology advance that keep changing. Other than compensation, other terms of advantage should be propose to the employees, like Socso and EPF as the self-funded plan. Is important to remember, employees is not only value with financial reward but also non-financial reward, like flexible schedule, holiday package and so on. Conceivably, nowadays employees take security as a career anchor. Most employees seemed to be mostly concerned with long-run career stability and job security. Thought, employees willing to do what was required to maintain job security with a stable future in the form of a good retirement program and benefits. Therefore, employees might choose for government job, where possession still tends to be a way of life.
Continue with the second issue, layoff and cutbacks has became an important issue in these days economy. Due to the economic factor and labour cost factors, layoff and cutbacks should be occurring in all organization. A layoff is not a termination, which is a permanent severing of the employment relationship although some employers do use layoff for discharge a workers. Layoff refers to a situation which there is no work available for employee who is being sent home, management expects the no-work situation should be temporary and probably short-term and management intend to recall employee when work is available again. Many employees recognize the massive investment they made in the selection, recruiting and training process and in developing their commitment and loyalty. Therefore, reducing layoffs and cutbacks can usually keep good relationship between customer and vendor (Frances, 2002) and retaining high employee morale and efficiency.
However, sometimes layoffs and cutbacks is something organization cannot avoid as the economy condition is not controlled but the organization itself. As a result, many employers are more hesitant to lay off employees at the first signs of business decline, instead, they are using new approaches to either blunt the effects of the layoff of eliminate the layoffs entirely. As if employees agree in voluntary reduction in pay plan, employers can force to keep everyone in working. Other employers arrange to have most of their employees accumulate their vacation time and voluntary time off which can has the effect of reducing the employer's payroll and avoiding the need for a layoff. As in the article, to keep morale value, organization that plan for a layoff can offer services to employees to find substitute employment or help them in planning their income for life.
In short, a selection and layoffs issue was important for human resource department to take attention to keep and retaining potential workers. Selection need to be done carefully to avoid from hiring the wrong person on the wrong job. Thus, for layoffs, human resource department need to think carefully before action is to be taken for not harming the relationship between employees and customer and maintaining the employees' morale and efficiency.
Identify five human resource management (HRM) challenges and discuss using your own words.
As is stated in the article with the title "The Future of Human Resource Management" by Seyed-Mahmoud Aghazadeh, nowadays business environment, there are five serious challenges that needed to be face by the organization. First of all, the globalization which face by most of the organization as people these days thinking have become internationally and impose to their daily life which lead to a challenge to the organization. Secondly, the beneficial growth that which include the financial growth that appears as one of the challenges to the organization. Thirdly, the technological advances which force organization to cope with it. Fourthly, the potential assets or employees which brought HR department a responsibility in retaining, build up and create a center of attention to keep those potential capitals. Lastly, the changes that never stops popping up around the organization which make a challenge to the business.
Globalization of business can be define as multi-directional (Jeongsuk Joo, 2004) because globalization is at the same time leading to greater emphasis on nation identity and leading to greater cooperation between nations. It is also multi-dimensional (Achin Vanaik, 2004) because business, communication technology, ecology, work organization, culture and politics are all caught up in the far reaching changes being caused by globalization. Globalization is creating a situation where manager must able to work with people from different cultures, nations, regions and continents. In globalization challenge, the ability of manager and employees should be able to perform to a great extent when dealing with the foreign organization. In this challenge, human resource manager was responsible to follow-up with the HR policies in the term of understanding the national culture which refers to the attitudes and perspectives shared by the people of a specific nation or cultural group that shape their behavior and the way they see the world. Besides that, changes in compensation plan should be impose to ensure fair and suitable payment concerning to the position hold by employees in overseas due to the living cost at the foreign country. In this point, human resource management needs to adapt personnel policies and procedures to the unique differences amongst countries or place in which each subordinate is based.
For the growth challenge, as organization have gain cost-effective, this require a better company image, product and services should be provided to gain customer satisfaction. Besides attaining customer satisfaction, organization should also ensure employees gain job satisfaction indeed. In this challenge, human resource professionals should improve the inspiration and modernization (Jana Matthews, 2008) within the organization's employees by encourage employees doing task in group work for information exchange and sharing of ideas. In this, human resource management needs to be in line with the business strategy due to the growth. More workers were needed due to the economy growth which leads to the increase in demand and amount of production need to be enlarged. In the point of company enlargement, organization needs to restructure their compensation and recognition for employees to retain them and motivate to keep up the good work. On the topic of company enlargement in terms of joint ventures, franchising, import export and so on, human resource department need to ensure professional skills needed to be there to deal with the diverse working environment and cultural differences (Seyed-Mahmoud Aghazadeh, 2003). For example, organize activities that needed all the employees from various cultures to join, for the objectives that let them concern more about the diversity of culture in organization and build relationship on them.
However, technology has influence the human resource management which technological advances have continue shifting employment from some occupation to others while contributing to slow increase in productivity. Technology improvement like in telecommunication, computerization, and automation, for instance (Timothy F. Bresnahan, 2000), are increasingly shifting work from blue collar and clerical function to technical, managerial, and professionals' one. Job and organizations' structures will have to be redesigned, new incentive and compensation plan instituted, new job description written on for the new job tasks for the position, training and development to be plan for employees for the new technology devices. Human resource management should make sure employees able to cope with the technology change and wholly use up-to-date information to assist human resource management department in doing the daily task like organizing, information system and so on by using technology devices. Besides that, human resource management should keep employees up-to-date to the newest technology that provided in the organization to ease them in doing their daily task effectively and efficiently.
Intellectual capital whereby define as the persons was intelligence and problem solving capacity as well as to specific intellectual aptitudes like understanding mechanical activities. Intellectual capital not only person's intellectual potential but also person's ability to apply intellectual capacity. Knowledge work productivity was depends on placing the right person in the right job. Due to the challenging environment nowadays, potential labor was limited and is hunted by most of the company. Human resource department need to retain those potential employees regarding to their knowledge, skills, abilities and experience which can easily cope with the global technology changes and globalization issue. Human resource department need to plan how to retain those talented workers by introduce reward system which provide a reward in term of monetary and non-monetary to the employees if they attain the goal. Besides that, to preserve these potential workers, organization need to motivate them by promoting them to the higher management level if their performances are excellent. However, no matter how intellectual are the employees, human resource department still need to organize some training and development program to keep them more productive and up-to-date which can ease them in doing their task and faster in achieving organization's goal.
The fifth challenge in overall is still the changes that keep mounting and more to be face. As regards, human resource department played an important role to ensure organization never drop out from the business world. To lead the employees, human resource department must itself change to be flexible, responsive and value-adding (Seyed-Mahmoud Aghazadeh, 2003). To monitor the employees to be more globalize and technologically, human resource department should solve out and be alert to all the issues and challenges that appear in the surrounding. Not only the non-managerial employees need to be alert in the changes but also the upper level managers need to get involve to lead, monitor and liaison to the employees. Due to the changes, human resource department need to be conceptual skilled by using information to solve the problems. Besides that, human resource department need to recognize problem areas and implementing solution, identify opportunities for innovation and understand the uses of technology in organization.
In summary, challenges were something organization hard to avoid and organization need to be prepared to face all the challenges to survive in the business world. Instead, human resource management was very vital in helping organization overcome the challenges as human or workers was the main asset that runs the organization and help to attaining organization's goals.
Do you opine that Malaysia is facing the same HRM challenges as affirmed by the author? Discuss and give ONE example to support you answers.
To express my opinion, I can clearly stated that Malaysia usually facing the same human resource management as affirmed by the author, Seyed-Mahmoud Aghazadeh in the article "The future of human resource management". The challenges that declared by the author was globalization, technology, intellectual capital, profitability through growth and the changes that keep occurring due to nowadays business improvement. Malaysia was now a developing country and Malaysia government has recognized the importance of developing the human resource capital in line with Vision 2020, based on which Malaysia aim to be a developed country on year 2020 (Gladys et al. 2003). To be succeed and achieving this goal, human resources have become the main capital in attaining the Vision 2020 by over coming all the human resource management challenges that encircled the business environment around Malaysia business world.
Malaysia as the developing country was facing the globalization challenge as many foreign investments were participating in Malaysia business. Malaysia consists of Multinational Corporation and Transnational Corporation. Multinational Corporation which is an organization that maintains significant operations in more than one nation, but with the managers from one base located in the home nation. Genting Group was an example whereby as the leading multinational corporation which include more that 40, 000 employees internationally known as one of the best managed company in Asia. Transnational Corporation whereby organization still maintains significant operations in more than one nation but decentralizes decision making to each operation in host country. Petronas as the national oil company was as an example of transnational country in Malaysia which involve of more than RM 89.59 billion of foreign direct investment. Due to the kinds of corporations, human resource department globalization issue should be overcome to be succeeding in the country.
Malaysia also has challenges in retaining intellectual capital which is preserving the potential employees in organization. Every employee has their own needs and wants, whereby human resource management is here to distinguish what is the employees deserve and offer the best benefit and package to the employees. However, every employee still asks for a better life style and compensation have become the main issue in retaining those skilled workers. If compensation is under the perception of employees want, employees will usually search for a new job which offer the better paid for them. Nevertheless, to retain potential employees is not only by using the monetary method but also non-monetary way. Better package that can be offer to employees is such as the on leave package, whereby employees can take specified days of leave in one year working period. Sometimes employees ask for flexible working environment like work in home, less working hours and so on. In this issue, Malaysians' organization should try to offer them with what they wants and needs as long as employees complete their task effectively and efficiently by attaining the organization's goals.
During the organization reach the stage which reaches cost-effectively, organization shouldn't only stay at where they are but moving to the better environment and improve their productivity. Instead, human resource management also needs to ensure improvement in the human capital in line with the growth. Training and developing is something human resource management cannot keep away from improvement should be started from the employees to improve the productivity of organization. Organization shouldn't only stay in the same old way during the growth. To keep organization as competitive as possible, human resource management need to take care and retaining the employees to be succeed. Compensation plan should be change as employees have help organization attain the goals and reward like yearly bonus should be given to keep motivates employees and keep up the good job.
Malaysian's human resource management should also be aware of all the changes that keep coming up into the business world. Organizations in Malaysia prefer staying in the traditional business system more than hack with the global was of dealing with business. For example, some companies still using labor if completing their job as computerization is already exist to help and speed up in attaining organization's goal. Most Malaysian's companies rely on the ethnocentric perspective which the provincial belief that the best work practices and approaches are those of the home nation. It have the advantage which have a simple structure and managers can exercise closer control but the decision making may be less effective and will be difficulties in building good business relationships with other companies. To make employees cope with the changes, human resource manager should be the first one to solve out the challenges and then monitor the employees.
However, technology challenge was one of the examples I want to discuss as the human resource challenge in Malaysia because nowadays, Malaysia is trying and contributing a lot in technologies advance method just to cope with it. At the same time, technological advances will continue to shift employment from some work to others while contributing a gradual increase in productivity. For example, telecommunication already makes it relatively easy for many workers to work at home. Similar changes are taking place in the office automation, where personal computers, word processing, and management information system continue to change the working environment. The skills required to operate these new technologies will obviously have major effect on all levels of organizational functioning. Therefore, the nature of work will change and with it, the nature of the work force with which human resource management must cope.
The technological environment in Malaysia is increasingly advancing with time. With more than 12 million internet users and about 337 674 internet hosts as of 2007, Malaysia is part of an emerging market technology wise. Malaysia has broadcasted two Intel satellites over the Indian and Pacific Ocean and has excellent international services. Most important, Malaysia has also launched Multimedia SuperCorridor (MSC) which is an information and communication technology hub that's main purpose is for research and development; to transform Malaysia into a knowledge society and ease human resource management in using it for training and development for the technologies devices. MSC Malaysia is the mainly exciting plan for the worldwide information and communication technology industry. Since year 1996, Malaysia has been improving in the communication technology whereby Malaysian companies focused on communication and multimedia products, research and developing and more. The success factor is whereby firm pays full commitment to the Malaysian government in improving the MSC. Due to this, human resource management need to be responsive in leading and liaison the employees and pick up the pace in human resource training and development about using the technology in daily work to cope with the trend of technological world.
In short, Malaysia human resource management has been facing the challenges as what the author stated in the articles and ways of overcoming the challenges is the human resource management responsible in ensuring the labor force can cope with it. Without the efficiency and effective human resource management, organization will just be out dated can can't be in line with the global business.