ORGANIZATIONAL CHART FY 2005/06

BOARD OF DIRECTORS

Executive Committee Audit Committee

CHIEF EXECUTIVE OFFICER

business corporate project project human support corporate

improvement planning, support Implementation capital services services
Marketing management
& sales

sr manager deputy GM deputy GM deputy GM manager sr manager manager

business corporate project project human finance legal &

improvement planning support implementation capital administration corporate
Management IT affair

marketing development contract

& leasing planning management

sales & product project

customer development management
relation
management

Cost property
Management management

Risk quality assurance

Management & quality control

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 Structure of Negara Properties

The company realized that extremely effective chains of command can

make the strategies more effective. So in term of HR planning functions it will take the

advantage of the chains of command to implement any of the created plans. So in

building the best and effective chain of command the company keeps changing their

structure trough time, this approach is similar to what we called as ‘try and error’. After

they find the best way by analyzing the performance then they’ll stick to the plan and

keep monitoring it whether it need to be changed or not.

The previous two pages should give you a rough picture of the structure

and how the chain of command works in this company. The first page showed you the

structure in year 2004 and the second one showed you the structure in year 2005. We can

see the difference at the HRM roles where in the first year the department weren’t in

direct contact to the CEO but later the company adjusted it where HRM department are

now can communicate directly to the CEO.

So based on the explanation by the senior executive that we interviewed,

she told us that the company now can feel the difference when the department can

manage the people in more effective way. The result can be seen and translated through

the profit where in 2004 they had lost a whopping 20 million but the condition changed in

2005 when they’d received a 9 million profit. Obviously the changes of the organization

structure have a big impact to the company’s performance.

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 The structure will not impacting the performance alone, it will affect in

ethical situation too. Such as the thoroughness of senior level officer when dealing with

the low level subordinate will differ completely when he dealing with his same or junior

level officer. In Negara Properties, there is several codes of ethics that must be followed

by all member in this organization, that is (please note that I’m only giving some of the

examples because there are some area that cannot be revealed to strangers):

I. Responsibility to Self.

a. Strive continually for self-knowledge and personal growth.

b. Act with integrity; be authentic and true to myself.

II. Responsibility for Professional Development and Competence.

III. Responsibility to Clients and Significant Others.

IV. Responsibility to the Profession.

a. Contribute to continuing professional development for myself, other

practitioners, and the profession.

V. Social Responsibility.

a. Act with awareness of the cultural filters which affect my view of the

world, respect cultures different from my own, and be sensitive to cross-

cultural and multicultural differences and their implications.

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 Strategies & Practices of Negara Properties

The organization has many competitive strategies but what matters the

most is how are the strategies can be implemented. So that’s why the HRM (in this

company it’s HCM) department was brought up one level in the organization structure,

that is to implement the strategies more effectively and freely. The key strategies are:

• Committed to synergistic growth to enhance shareholder value.

• Expansion, diversification, and/or divestment to maximize growth in market and

profit.

• Developing a high performance organization with a committed and competent

workforce capable of delivering business results.

• Business driven research and development for competitive edge.

• Enhance market position of product through brand recognition and preferred

global supplier.

• Maximizing the use of technology focusing on information and communication

technology and automation to drive business improvement.

• Total commitment to corporate governance, quality, safety, health and

environment.

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 Currently the common practice in this organization is performance

appraisals; it is done twice a year by the HR department in this company. It is because the

company needs to maintain its performance through time. When in comes to recruiting,

of course the HR department implement it but in just casual occasion because of the

turnover of the employee is very low. They will just take new employee when someone is

being promoted, thus leaving a vacant position, in this case they’ll just use head hunter

technique to replace the vacant position if it’s executive, and will use walk in interview if

it’s just regular worker.

The company currently developing ‘succession planning’ because it doesn’t have

succession planning, yet. But it is in progress because they realized the importance of it.

And they try to realized this plan as soon as possible because this organization will

depend on it when the time comes, especially when one of the upper suddenly move out

or in worst case, past away. In the succession planning there are three steps:

• Identify and analyze key jobs.

• Create and assess candidates.

• Select those who will fill the key position.

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 The Company’s Rules and Ethics

Managing people involves making fair decision. When the company hires one

candidate and rejects another, promote one and demote another, pay one more and one

less. How employees react to these decisions depend on whether they think and the

process were fair.

In the Negara Properties Company, there are several rules and regulation that all

the employees must obey and follow it. The company stated it as Code of Conducts. In

the Code of Conducts, all the employees must appropriately dress when come to the job.

They must wear a formal office dress. They are not allowed to wear jeans during the

working day. Except on one day, that called t-shirt day on Friday.

We have defined in the organization have treated the employees fairly based on

how the do the procedural justice to the employees. To ensure the fairness, the

organization has prepared early to face these problems. During the recruitment process,

the organization will screen out undesirable person before they apply. The organization

will do the selection based on job-related criteria and based on company’s values on

ethical and fair treatment.

During the recruiting, the entire applicant will view job sample test as fair if these

are job-related, the applicant will be given an opportunity to perform and the organization

will provide specific feedback to the applicants. The effect of this situation, all the

applicant will consider an interview as fair if it provides two ways communication, allow

them to show their skills, offer the feedback to them and has high validity.

In the training session, is the one way that the organization uses to develop the culture of

ethics and fair play to the employees. The training includes example to show employees

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how to recognize ethical dilemmas and how to use the Code of Conduct to resolve the

problems.

In the performance appraising process, the company will make the appraisal clear

not only adheres to high ethical standards but also actually measures employees who

follow those standards. The organization will use the score card and report from the

supervisor to make the appraisal among the employees.

To ensure the fairness in the discipline is based on one pillar. There are rule and

regulation of the company. The rule was setup to deal with issues such as theft,

destruction of company property, drinking on the job and insubordinations.

During the year under review, the Group’s Human Capital Management policy

was further enhanced. The Balanced Business Scorecard featuring Key Performance

Indicators were developed, customized and enhanced with the incorporation of adjusted

measurement rating taking into consideration the divisional and department objectives.

Along with positioning plan for the group, the Human Capital Management focused on

developing career value propositions to attract and retain the most talented employees.

Employees profiling was conducted to establish the general behavioral pattern in the

company and employee personality traits for charting the human capital.

Improvement programmes which include Corporate Culture Change programme,

Strategic Human Capital Management and Quarterly Communication sessions with all

employees were also conducted during the year under review.

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 The Work Culture in Negara Properties

We have come to believe that each workplace has a different culture which

must be respected and reflected when providing workplace training and services.

Organization culture is defined as a system of shared values, belief and norm that

interpret elements in the environment and to guide all kinds of behavior. Organization

culture is not something that is found in a mission statement or corporate policy statement

or a cooperate policy manual. Rather, organization culture is communicated and

reinforced thought organizational mechanism.

From the information we gather from the interview session we have

conclude Negara Properties have change in the organization culture compared from last

year because the HRM in this company done a very good effort to achieve the company

mission and goal. The other factors of this company organization culture change because

of the changing of new CEO.

The HRM of the Negara properties had try to identify the culture of the

company so the department of HRM had pay the consultant from the outside to made a

research about the employee movement and behavioral. The consultant stays and does the

research in the company for a month to gain the information and do their research.

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After finish the employee movement and behavioral the consultant comes up with these

issues:

• The employees just do their work if the boss is there.

• The employees are very slow and wasting time do others thing than finish their

own work.

• The leadership in this company is very poor.

• It is no relation between the department to others department and they do the

work alone.

So the consultant has the solution to settle these problems and advise the department of

HRM to do some training and practices:

• The entire employee must go to the summer camp to improve the relationship

between them.

• The high management must attend the leadership camp.

• There must be the time to the employees and the boss together.

So from the advice the HRM of the Negara Properties have managed training to the

employees that held at Kem Bina Semangat, Hulu Langat Selangor. The CEO and the

high managerial of Negara Properties also joining this training to build the relationship

spirit among the employees and the boss in each department and for the High managerial

employees there will be a training every week that conducted by the outside consultant to

keep their confident and to improve their leadership quality.

The second factor that influence the culture of the employees in Negara Properties is

it own CEO or it high managerial afford to manage the relation between he and his

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employees. From what we know the CEO of the Negara Properties this year is new. He

style and personality is totally difference compared to the former CEO. This new CEO

very talkative and warm person and the late CEO quite and not talk much to the

employee. He also sportsmen and enjoy exercise to maintain his healthy life.

Because of his characteristics the employees of Negara Properties become friendlier

and have confident to give idea and to rapport what happen in actual of this company.

Employees can come-up with new ideas and this give them warm feeling because they

can shared the ideas. He also made a ‘tai chi’ club in this company so every weekend all

the employees together do the exercise. From his effort employees not only become

healthier they also become closer to each others.

Every month there will be conference between the CEO, manager and the

employees in the Negara Properties. They will sit together in one room and have chat. In

this session what ever problem will come up and they solve it together. If anyone of them

doesn’t feel satisfied that is the time to talk and tell every one in the room so they can

listen. In this, session there is no gap between high managerial and lower employees

because they can talk what ever if they feel it suitable.

So we can conclude here in Negara Properties it have own culture among the high

managerial and employee but this is not strong culture because it can be change after the

training and practices. The subordinate and the boss become the main factors of the

employees’ culture in the Negara Properties so HRM department become the important

role to create or maintain the culture of the Negara properties. So this department must

work hard to make sure the culture of the employees and the high managerial will be the

achiever of the company missions and goals.

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 Issues that Negara Properties Facing

Negara Properties is a very big company and deal with others big company in it

making the profit. Negara Properties as the plantation and development company also

deal with the environment matter. This issues give the Negara Properties and it back bone

pressure because they need to be the best managed, diversified and construction company

and at the same time they need to maintain the environment pollution that maybe will

happen during the development and construction.

So to make sure this issues they can handle with peacefully and no and will hurt they

need to create the cultures, ethics and values among the workers that will be the company

assets and also the one will show the company attitudes. In maintain the environment

matter and also the safety of the employees Negara properties must try as hard as possible

to adopt the positive value to the employee in their way facing this issues. They must

create a very strong value to the employees so the employees will be they nature lover in

doing there job as a developer and constructer.

So from the information we gather in the interview session Negara properties

practice Total Quality and Environment Management (TQEM) to support their business

strategies and goals. Negara Properties must make sure all the employees adapt to the

TQEM culture so the strategies and goals will be achieve.

In making the TQEM culture become a reality Negara Properties made some afford.

The familiarization programmer is compulsory for all new personnel entering

employment with the organization. this program is to ensure that all the employee are

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properly briefed about the businesses of the organization, organization business strategy

and also the organization goals.

The HRM department must make sure all the employees aware about the

organization’s history and background. They must be knowledgeable about the

organization vision, organization culture and philosophies. But, the most important thing

this program is to developed the correct attitudes in employees working life. This is also

to make sure the new members of the organization to start right that meant they must

have a good understanding of the company and the people who work for the company.

The employees must discharge their duties and responsible to the best of their

abilities. They also must participate actively and contribute selflessly in all the activities

in the company. Be co-operative and unselfish in workplace because only with co-

operative and selfless commitment can the company strives ahead to achieve its stated

goals and objective.

The HRM department also must advice all the new employees to embrace to the

quality culture conscientiously and conform to the company high standards religiously.

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 Summary

From this assignment that is need to us dig in dept of the Negara Properties

organization values, organization culture and the ethical issues that the Negara Properties

facing we can summarize that all the organization must hold the good values and culture

to support and also to achieve the strategies, mission and organization goals. We have

come to believe that each workplace has a different culture which must be respected and

reflected when providing workplace training and services.

We have noticed methods which are broad and differ from workplace to workplace,

but which provide a starting point for discussion in planning workplace basic skills

programs. We also noticed that the high level managerial such as the CEO play the

important role to create a strong and good culture to the lower employees. The first

approaches also being the important thing in build the organization good values. For

example the TQEM program that is for new members of the Negara properties that is

very important to the organization in adopt the values and hold it very clearly.

The special staff training and staff development also important to create and

changing the altitudes from worst to better altitudes so that can be some afford to the

organization in achieving it mission and goals.

Lastly, the organization itself is the developer to the employee’s values, culture and

ethics. If the organization aware and take this thing serious so it will come up with

positive result. So all the employees will practice the good values, cultures and ethics

along that way organization goals and organization missions will be achieved

successfully.

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 Reference:

1. Golden Hope Staff Familiarization No.1-2003/04

2. Human Resources Development 4th edition by Thomsom South-Westen with John

M. Werner and Randy L. DeSimone.

3. Understanding and Managing Organization Behavior 4th edition by Pearson

Prentice Hall with Jennifer M. Goerge and Gareth R. Jones.

4. The Importance of a Culture, 27 September 2006,by Corante

<http://importance.corante.com/archives/culture/>

5. Encyclopedia of Chicago, Work Culture, 29 September 2006,

<http://www.encyclopedia.chicagohistory.org/pages/1382.html>

6. About, Recruiting Culture, 2 October 2006

<http://jobsearch.about.com/b/a/217238.htm>

7. Culture at Work, Culture, 2 October 2006

<www.culture-at-work.com>

8. The Penguin Concise English Dictionary, Compiled by G.N.Garmonsway with

Jacquelin Simpson, Published Bloomsbury Books, Generation Gap, Page 322.

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