BBPB 2103

HUMAN RESOURCE MANAGEMENT

1.0

Introduction
Efficacious human resource management can be really helpful for small entrepreneurs

or conglomerates alike. Successful management such as in processing payrolls or managing

workforce labour can benefit the company and flourish its perspective for a lucrative return.
The roles of human resource management are essential in developing employee-centred
business activities so that more opportunities could be widely opened for the corporation.
Susan (2015) defined human resource management (HRM) as the function within an
organization that focuses on recruitment of, management of, and providing direction for the
people who work in the organization. HRM can also be performed by line managers. To be
precise, HRM is the organizational function that deals with issues related to people such as
compensation, hiring, performance management, organization development, safety, wellness,
benefits, employee motivation, communication, administration, and training.
HRM is also a strategic and comprehensive approach to managing people and the
workplace culture and environment. Effective HRM enables employees to contribute
effectively and productively to the overall company direction and the accomplishment of the
organization's goals and objectives. HRM is moving away from traditional personnel,
administration, and transactional roles, which are increasingly outsourced. HRM is now
expected to add value to the strategic utilization of employees and that employee programs
impact the business in measurable ways. The new role of HRM involves strategic
direction and HRM metrics and measurements to demonstrate value.

2.0

The Selected Company

The chosen company for the purpose of analysing the HRM competence for this

assignment is DRB-Hicom Bhd. This company was chosen based on its global achievements
as well as their reputation in automotive field.
As cited in their official page, DRB-HICOM Bhd. is a fully integrated automotive
company in Malaysia which involved in every link of the automotive chain ranging from the
manufacturing of automotive components to assembly and followed by distributions. They
also involve actively in the after sales supports for a wide range of vehicles such as
motorcycles to passenger, commercial, defence and customized vehicles like buses,
ambulances, police vehicles, fire trucks and garbage compactors. While focusing on their
domestic market, DRB-HICOM at the same time has also develop exponentially into a global
market through export, especially in component manufacturing and assembling. Today, DRBHICOM is recognized globally for their expertise in complex and precision automotive
engineering.
DRB-HICOM Bhd. as one of Malaysias leading automotive tycoon was established
following a merger between Heavy Industries Corporation of Malaysia Berhad (HICOM) and
Diversified Resources Berhad (DRB) in the year 2000. HICOM was incorporated in the year
1980 to lead the countrys nationalization drive and was instrumental in the development of
the National Car Project while Diversified Resources Berhad (DRB) was the developer of
Malaysias first national motorcycle and Malaysian-made trucks. After the Groups
acquisition by Etika Strategi Sdn Bhd in 2005 and led by a new management team, its
businesses were rationalized into three core sectors in the following year, namely
Automotive; Services; and Property, Asset and Construction. In 2012, DRB-HICOM acquired
PROTON Holdings Berhad, empowered its leadership position as one of the most
comprehensive and integrated automotive operations in Malaysia.
DRB-HICOM has a vision to be the number one in the businesses that they all do and
they also have the vision to be continuously excellent in all their businesses. The vision is
somehow what they have achieved and yet to maintain the high rank and reputation which
they currently hold.

The companys mission is to lead in the growth of the Nation in the areas of DRBHICOMs core business which include wide range of automotive, services, and property,
asset and construction. DRB-HICOM is practicing the shared values of excellence, decorum,
teamwork, integrity, innovation, quality and transparency in order to achieve and to maintain
their mission. With more than 80 operating companies in its stable and a workforce of more
than 60,000 employees, DRB-HICOM has today become as one of the more exciting
companies listed on the Main Board of Bursa Malaysia.

3.0

Issues and Challenges in Human Resource Management

Fluctuating economic along with global advancement are among the factors that are

rapidly affecting HRM. With this rapid business transformation seen in all business entities,
there will surely be arising issues and challenges that will be faced in the years to come.
According to Josh (2012), workplace diversity is one of the issue and challenge faced in
HRM. This may consist of issues involving age, education, ethnicity, gender, income, marital
status, physical limitations, and religion or any number of other things. By understanding the
issues and challenges that could be faced by any of these groups, besides their openness
towards working together, HRM personnel could perform better to provide assistance in
training the employees.
The second issue and challenge is about the compensation and benefits given by the
company to its workers. With a slow economy and tightening corporate purse-strings, the
issue of compensation and employee benefits is one that almost every business must deal
with. The compensation and benefits is about managing the personnel expenses budget,
setting the performance standards, setting the transparent compensation policies and
introducing the competitive benefits for employees. The key is to present mandatory changes
in such a way that employees can accept, if not necessarily agree with them while providing
non-monetary morale boosting incentives whenever possible to make the changes less
traumatic. In fact, HRM that organizes effective compensation and benefits will drive its
workers to be more efficient and functioning professionally.
The third issue is on recruiting skilled employees which can sometimes be difficult
considering the high demands. To be precise, recruitment is the process of identifying an
organizational gap and attracting, evaluating, and hiring employees to fill that role. In an era
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of rising unemployment, it would seem that finding qualified workers would be easier than
ever. But thats seldom the case. Many industries are facing dire needs for employees with
acceptable skills and the required training or degree. This applies not only to health care, but
also to technology and other fields as well, causing many employers to search outside their
local marketplace for workers who can do the jobs they need filled. There are various
recruitment approaches, such as relying on in-house personnel, outsourcing, employment
agencies, executive search firms, social media, and recruitment services on the Internet. With
a global marketplace for prospective employees, and the enormity of data and applications
supplied via the Internet, HR professionals are challenged with filtering vast streams of data
to find the best fit.
Training and development are also considered as one of the issue and challenge faced
in HRM. Training and development activities include the determination, design, execution,
and analysis of educational programs. Orientation programs, for example, are usually
necessary to acclimate new hires to the company. The HRM training and education role may
encompass a wide variety of tasks, depending on the type and extent of different programs.
This is another challenge that HR managers and personnel must deal with more frequently.
With the need to cut training costs, training itself often suffers. Yet the skills an employee
needs must still be taught. Many companies are meeting this challenge by providing
opportunities that allow employees to receive the training they need without the expenses
associated with travel, on-site trainers, hours away from their jobs and high-priced materials.
In any case, the HRM professional ideally is aware of the fundamentals of learning and
motivation, and must carefully design effective training and development programs that
benefit the overall organization as well as the individual. Training initiatives may
include apprenticeship, internship, job rotation, mentoring, and new skills programs.

4.0

4 Issues and Challenges Faced by the Organization

With their outstanding achievement in automotive business and the success in

establishing a reputable empire, it is also noted that DRB-HICOM Bhd. is facing issues and
challenges in HRM. These issues and challenges are addressed professionally, hence results
in their accomplishment up until now. As DRB-HICOM Bhd. continues to spread its wings
locally and internationally, one of its paramount challenges is the training and development of
its HRM personnel. This is based on the fact that, it is the people that drive the organization
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and that the company itself is depending on the combined knowledge, involvement or
experience in the nature of the particular business and skills of its human capital. Therefore,
to guarantee an effective administrations and managements, DRB-HICOM Bhd. needs to
cultivate constructive learning environments that are reassuring for the staffs as a whole to
continually ascend a learning curve for the sustainability.
4.1

Staffs Appreciation and Appraisal

The first issue and challenge related to DRB-HICOM Bhd. HRM is pertaining to their

staffs appreciation and appraisal. DRB-HICOM Bhd. like any other business entities is
looking after their staffs and their management and acknowledged their contribution as they
are the fundamental engine of the organization. It is imperative for these staffs to be
manipulated or motivated in an agreeable term for them to unremittingly deliver their best
effort in achieving DRB-HICOM Bhd.s main objectives and goals.
4.2

Training
The HRM of the DRB-HICOM Bhd. takes the training of their staffs as a serious

matter. Generally, the staffs often have the competence of executing the trusted tasks well, but
they might be lacking in understanding and experience towards the tasks accomplishments.
Thus, the training must be carefully planned to ensure that the employees are conscious and
updated with the latest improvement in the industrial pursuits which directly impacts the
technologies as well as their skills. On the other, providing constant trainings could help
DRB-HICOM Bhd. to standardize the latest industrial skills in the effort to stay ahead of their
rivalries.
4.3

Organization Structure
Comprehensive organization structure is principally used by every organization

including the DRB-HICOM Bhd. HRM in displaying the correlation between the top
managers and their subordinates. An organized structure shows the various divisions in the
organization and the line authority. Besides this, organization structure also defines on how
task and duties are delegated in the management of DRB-HICOM Bhd. The communication
flow is influenced by this structure in terms of moving upward and downward. Thus, the
decision making power and the commanding power lies on this structure as well.

4.4

Discrimination in Workplace
As a giant business entity, DRB-HICOM Bhd. is also experiencing discrimination in

its HRM. Discrimination, in general is acting partially based on certain criteria such as
religion, races, gender, physical appearance and others. For example, DRB-HICOM Bhd. is
considering hiring a new staff based on contact rather than publicizing the job prospect in
newspapers or online media. Thus, based on the inappropriate manner of appointing and
potentially unqualified staff being hired, it may result to poor performance of the department
as a direct outcome. Besides that, the discrimination could also takes place in the manner of
an employee being offered unfair terms and conditions of employment, being denied training
opportunities, promotion, transfers, performance pay or other employment-related benefits or
even being unfairly dismissed, retrenched or demoted.

5.0

Recommendation to Overcome
To ensure sustainability in business continuity and smooth operations, DRB-HICOM

Bhd. must fully utilize their HRM so that every issue and challenge arises in this group can
be resolved in a professional manner and at the same time to display effective management.
Based on the issues and challenges discussed above, here are some recommendations for
DRB-HICOM Bhd.s HRM to look into so that their objectivity and main core business are
safeguarded from any internal issues.
5.1

Staffs Appreciation and Appraisal

Undeniably, appreciation and appraisal is seen as an important element in any

company especially in a giant business entity that employ many workers at a time. For DRBHICOM Bhd. it is utterly important for them to be able to manipulate and motivate these
staffs so that they can harvest the superiority of work and at the same time to amplify their
productivity as a measurable output. DRB-Hicom Bhd. HRM should appreciate their
contributions and efforts by organizing annually or monthly employee appraisal program. By
implementing this program, employees would be inspired and positively driven to provide a
better service to the organization. On the other hand, this program would help DRB-HICOM
Bhd.s HRM to identify the most qualified staffs that excel in their job thus recognizing their
contributions. In fact, they can conveniently use this platform to promote the appropriate
staffs that have been recognized by everyone in the company. This would motivate the rest of
the workers to contribute as to be appraised and appreciated accordingly.
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5.2

Training
Training of the employees is an important matter that must be properly organized. The

training will help inexperienced workers to learn everything they need to know about their
nature of the business especially that involves meeting potential business partners or
customers. Therefore, the HRM of DRB-Hicom Bhd. must administer the training sessions to
all their employees especially those unskilled and semi-skilled in an organized and effective
way to reduce the amount of time needed and at the same time producing equally competent
workers as their current workforce. For example, the manufacturing staffs can be classified
into skilled, semi- skilled and unskilled staffs, and the major workers consist of semi-skilled
and unskilled staffs. These staffs need to be trained continuously in order to keep their
knowledge of the production up to the standard.
5.3

Organization Structure
Today, it is assumed that the main asset of any organization lies in people. Quality,

productivity, profitability, customer approval and the image of a company depends largely on
training, coordination and motivation of its staffs. In other words, the organizational structure
must be arranged so that productivity and efficiency could be enhanced throughout the entire
organization. For a DRB-HICOM Bhd. to function properly, they require that their personnel
to know everything they need to know about business plans and objectives, besides willing
and able to work properly. It is advisable for DRB-HICOM Bhd. HRM to identify their
workers strengths and relocate their non-performing employees to different departments
which they can perform better before terminating their services immediately. This would give
them the opportunity to develop the required competence and contribute towards the
company at their own strengths without forcing them with tasks outside their limit.
5.4

Discrimination is Workplace
In any workplaces that hire many workers, there would be potential discrimination

among the workers. This could include discrimination according to religion, age or any other
factors that considered as different by others. In order to avoid discrimination, DRB-Hicom
Bhd. hiring procedures must include a panel of members from HRM that respected by their
subordinates, to form the panel for the purpose of hiring new workers. This panel will
interview and hire the right applicant instead of letting a personnel being in charge for the
hiring and decides on every decision. Besides that, the panel should be set up mainly for
assessing the employees job accomplishment instead of the evaluation by their superior. With
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the implementation of this suggestion, the chances of potential discrimination in workplace

could be reduce even though there is no guarantee that it could be eliminated for good.

6.0

Conclusion
Based on the discussion about the issues and challenges faced by DRB-HICOM Bhd.

above, it is can be concluded that HRM in their automotive business plays a very important
role in safeguarding their sustainability and continuity. It is also noted that DRB-HICOM
Bhd. needs to support their HRMs strategy with their business goals in order to face the
progressively competitive atmosphere.
HRM has always been a central department in every organization including DRBHICOM Bhd., as their current strategic position is growing in the fast-pace and advanced
industries. Their successfulness in business and organization depend heavily on the
knowledge, skills and abilities of employees, particularly as they help to establish a set of
core competencies that distinguish an organization form its competitors. When employees
talents are valuable, rare difficult to imitate and organized, the organization is more likely to
achieve sustained competitive advantages through people.
The DRB-HICOM Bhd. had anticipated that the strengthening of their HRM will be a
constant process, with the effort of accentuating as well as encouraging the talent pool of
critical function both from local and international sources. The continuous accomplishment of
their organization lies on each and every individuals hand of those who are either related
directly or indirectly with their business.
(2702 words)

7.0

Reference

Josh (2012). Five Challenges To HRM You Need To Aware Of. Retrieved from http://www.
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coursepark.com/blog/2011/08/five-challenges-to-hrm-you-need-to-be-aware-of/
Susan (2015). What Is Human Resource Management? Definition of Human Resource
Management. http://humanresources.about.com/od/glossaryh/f/hr_management.htm
www.drb-hicom.com Retrieved on 4th, February 2015