full report hr

7/31/2019 Full Report HR

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1.0 Companys background

Sapura Industrial Limited involvement in the automotive components industry is

beginning in the early 1980's to the manufacture of car suspension components. Business growth

and encouraging industry to produce a group structure with the formation of a holding company

in 1994 under the name of Sapura Motors Berhad. Sapura Motors was subsequently listed on the

Second Board of Bursa Securities Malaysia Berhad on May 9, 1997. On January 14, 2004, it was

transferred to the Main Board of Bursa Securities Malaysia Berhad. To reflect its diversified

business, Sapura Motors name has now been converted to Sapura Industrial Berhad on August

11 the same year of 2004. At present, the main activity of Sapura Industrial Berhad is the

manufacture the main components of vehicles ranging from raw materials, precision machining

to safety components. These include engine components, transmissions, chassis modules,

handlers, suspension and braking systems. Many years of experience has made Sapura Industrial

Berhad expanding the company worldwide including overseas, and ensure its future is not

compromised. In its efforts to diversify its portfolio, Sapura Industrial has also ventured into the

manufacture of high-tech equipment for the Oil and Gas, Petrochemical and Chemical in 2005.

For more in-depth, Sapura Industrial serves as the headquarters for four major manufacturing

companies in Bandar Baru Bangi which are Sapura Brake Technologies, Sapura Machining

Corporation, Sapura Automotive Industry and Asian Automotive Sendirian Berhad. It is also

regarded as a center of business administration in the industry. All four of these companies are

under the surveillance of Sapura Industrial in terms of financial, administrative, legal and human

resources. Sapura Industrial consists of two-storey building where all offices are located on level

2. There are four main departments which are legal department and secretary, department of

administration, accounting and finance department and human resources departments.


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1.1 Vision

Create a technology platform in the spirit of consensus originality, entrepreneurial digest

technical skills consistently profitable.

1.2 Mission

To become a company that has a high capacity and superior technology in the field of business

by providing solutions that exceed customer expectations based on professional leadership and

continuous performance improvement.


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1.3 Sapuras Human Resources and Administration Department chart


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2.0 Human Resources Planning

Human Resource Planning is the ongoing process of systematic planning to achieve

optimum use of an organization's most valuable asset which is its human resources. The

objective of human resource planning is to ensure the best fit between employees and jobs, while

avoiding manpower shortages or surpluses. The three key elements of the HR planning process

are forecasting labor demand, analyzing present labor supply, and balancing projected labor

demand and supply. Human resources planning are needed because it anticipate not only the

required kind and number of employees but also determine the action plan for all functions of

personnel management. In addition, having systematic human resources planning allowed the

company becomes more success since hiring the wrong people or failing to anticipate

fluctuations in hiring needs can be costly. Therefore, it is important for the company to put an

effort into human resource planning.

Sapura Industrial human resources planning consist of 3 main steps which are forecasting hiring

needs, analyzing and planning the employment programs.

1. Forecasting hiring needs The aim of forecasting is to determine the number and type of employees needed in the

future. Forecasting should consider the past and the present requirements as well as future

organizational directions. In Sapura, bottom-up forecasting is the methods used to

estimate future human resource needs by gathering human resource needs of various

organizational units which is each of department head will identify how many of vacancy

will be needed for their department for the year. Then, meeting will be held with the


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respective department together with the CEO. In the meeting, each of the department will

have to justify why the department need such additional employees.

2. Analyzing Supply After the meeting, human resources manager will analyze the sources of their employees

whether from the internal or external source. This second step in HR planning is consider

as an inventory analysis or keeping track of the current employees in the organization to

determine the extent to which this meets the forecast. In this second step also, the human

resources manager will determine the feasibility of hiring including the costs of hiring,

the benefits of hiring, and the risks of not hiring. The HR inventory analysis entails:

i. Skill inventory or keeping track of the number of employees, and the age, locations,qualifications, and skills of each employee to determine the specific role each

employee would fill in the short term and long term

ii. Forecasting resignations and recruitment and understanding their impact on the skillinventory levels

iii. Forecasting leaves, transfers, dismissals, sabbaticals, prolonged illness, and deaths ofemployees and their impact on inventory levels

3. Planning the employment programsThe final step in human resource planning is developing action plans based on the

gathered data, analysis and available alternatives. The key issue is that the plans should

be acceptable to both top management and employees. Plans should be prioritized and

their key players and barriers to success identified. Some of these plans include employee


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utilization plan, appraisal plan, and training plan including the recruitment. In Sapura, the

alternatives that they are used are including:

Strategy to recruit new employees Retrenchment of downsizing strategy to shed excess workforce Training and Development plans to develop employees skills and knowledge Changes in work regulations such as timings, overtime policy and the others

3.0 Human resources and objectives strategies

Objectives are pre-determined goals to which individual or group activity in an

organization is directed. Institutions procure and manage various resources including human to

attain the specified objectives. Thus, human resources are managed to divert and utilize their

resources towards and for the accomplishment of organizational objectives. Therefore, basically

the objectives of HRM are drawn from and to contribute to the accomplishment of the

organizational objectives. The other objectives of HRM are to meet the needs, aspirations, values

and dignity of individual employees and having due concern for the socio-economic problems of

the community and the country.

Based on the objectives, the human resources (HR) strategy was sets out Sapuras plans

to ensure the recruitment, development and retention of the best quality staff in all staff groups,

in order to fulfill the companys mission and thereby meet its strategic aims and objectives. In

the other words, the HR strategy is a summary of the action required to improve human

resources management at Sapura and thereby contribute to the success of the company. Overall,

here is the summary of Sapura Human Resources objectives and strategies that have been

categorize to four main objectives:


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Objectives Strategies

1. To ensure humanresources are

employed cost-

effectively

Pay rates should be competitive but not excessive

Achieve acceptable staff utilization

Minimize staff turnover Measure returns on investment in training

2. To make an effectiveuse of workforce

potential

Ensure jobs have suitable, achievable workloads

Avoid too many under-utilized or over-stretched staff

Make best use of employees skills Giving an equity and adequate wage, benefits and reward

to employee based on their performance through salary

increment as a way to increase staff motivation.

Providing advice and support to Heads of Departments onthe management of health, welfare, grievance or

disciplinary matters relating to an individual staff.

3. To match theworkforce to the

business needs

Workforce planning to ensure business has the rightnumber of staff in the right locations with the right skills

Effective recruitment to match workforce needs Training programs to cover skills gaps or respond to

changes in technology, processes & market. In addition is


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to boost up the employee motivation, skills, knowledge

and satisfaction.

Consider outsourcing activities that can be done betterand more cost-effectively by external suppliers

4. To establish andmaintain a good

relations between

employee and

employer

Timely and honest communication with employees andtheir representatives

Sensitive handling or potential problems with employees(e.g. dismissal, redundancy, major changes in the

business)

Comply with all relevant employment legislation Conduct a tea talk session with the employees who

have disciplinary problems in terms of attendance and

performance to discuss their personal problems out from

the working hours.


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4.0 THE RECRUITMENT PROCESS

Recruitment is considered to be a positive process as it motivates more of candidates to

apply for the job. It creates a pool of applicants. It is just sourcing of data. All companies in any

industry can benefit from contingency or retain professional recruiters or outsourcing the process

to recruitment agencies. It is important to choose the right person for the job, as a poor hiring

decision can have negative consequences for a company. Take the time to carefully plan the

process to ensure you recruit an employee with the right mix of skills and attributes for the job.

Sapura Industrial Berhad recruitment process in is dividing into executive and non-executive.

4.1 EXECUTIVE RECRUITMENT

1) INTERNAL RECRUITMENTInternal recruitment- is a recruitment which takes place within the concern or

organization. Internal sources of recruitment are readily available to an organization. Internal

recruitment may lead to increase in employees productivity as their motivation level increases.

It also saves time, money and efforts.

Internal sources:

1. Transfers - Recommend through people inside of company.

2. Promotions (through Internal Job Postings) - Advertise to all subsidiaries inside of company.

3. Re-employment of ex-employees - Re-employment of ex-employees is one of the internal

sources of recruitment in which employees can be invited and appointed to fill vacancies in the

concern. There are situations when ex-employees provide unsolicited applications also.
http://en.wikipedia.org/wiki/Recruiterhttp://en.wikipedia.org/wiki/Employment_agencyhttp://en.wikipedia.org/wiki/Employment_agencyhttp://en.wikipedia.org/wiki/Recruiter


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2) EXTERNAL RECRUITMENTExternal recruitment - External sources of recruitment have to be solicited from outside

the organization. External sources are external to a concern. But it involves lot of time and

money. The external sources of recruitment include - Employment at factory gate,

advertisements, employment exchanges, employment agencies, educational institutes, labor

contractors, recommendations etc. For Sapura the external recruitment involved is:-

1. Advertisement - It is an external source which has got an important place in recruitmentprocedure. The biggest advantage of advertisement is that it covers a wide area of market

and scattered applicants can get information from advertisements. Medium used is

Newspapers and Television. Sapura Industrial advertises in Job Street (1 month by cost

RM630). There also advertise in Newspaper (for position executive it advertise at The

Star).Sapura make the Job Fair it only for executive position. Example is Job Fair @UM,

and Job Fair @UPM.

2. Recommendations - There are certain people who have experience in a particular area.They enjoy goodwill and a stand in the company. There are certain vacancies which are

filled by recommendations of such people. Sapura Industrial also using recommendation

from employee inside of Sapura to the people outside of company to the vacancies

position.

3. Educational Institutions - There are certain professional Institutions which serve as anexternal source for recruiting fresh graduates from these institutes. This kind of

recruitment done through such educational institutions is called as Campus Recruitment.

Students that have done practical in Sapura Industrial will absorb according to the

performance and have a competent.


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4.2 NON-EXECUTIVE

1. Labour ContractLabour contract is people local or foreign worker in the company atthe particular time period. For Sapura Industrial there is using the foreign worker when

the number of employee not support or enough to the company operation. Foreign

worker will work for particular time according to the permit. The foreign workers in

Sapura Industrial are come from Myanmar (46%), Nepal (16%), and Indonesia (4%). For

the local worker, they will give 6 month tried if the performance is good they will absorb

to the permanent staff.

2.

Interview- Interview method that Sapura Industrial uses is open interview and walk in

interview. Sapura Industrial makes the open interview (3 times in 1year). The open

interview will be making at subsidiary department. Open Interview will be conducted at

the Saturday only. Open interview usually for position such as technician tooling, clerk,

maintenance and so on. For the walk in interview it only making on Wednesday every

week. Walk in interview are only for position such as driver to Coo, account clerk,

secretary, internal audit and technician.

3. Advertisement- It is an external source which has got an important place in recruitmentprocedure. Before making the outstation recruitment Sapura Industrial should advertise

the outstation recruitment program at Metro newspaper at Sunday only. The benchmark

of Sapura Industrial is according Perodua and Proton.

4. Outside Recruitment-Sapura Industrial cooperated with ILP (Industry PracticalInstitution), JTK (Labour Work Department) and Giat Mara.


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5.0 THE SELECTION PROCESS

Employee Selection is the process of putting right men on right job. It is a procedure of

matching organizational requirements with the skills and qualifications of people. Effective

selection can be done only when there is effective matching. By selecting best candidate for the

required job, the organization will get quality performance of employees. Moreover, organization

will face less of absenteeism and employee turnover problems. By selecting right candidate for

the required job, organization will also save time and money. Proper screening of candidates

takes place during selection procedure. All the potential candidates who apply for the given job

are tested. But selection must be differentiated from recruitment, though these are two phases of

employment process. Selection is a negative process as the inappropriate candidates are rejected

here. Recruitment precedes selection in staffing process. Selection involves choosing the best

candidate with best abilities, skills and knowledge for the required job.

The Employee selection Process takes place in following order-

1. Preliminary Interviews- It is used to eliminate those candidates who do not meet theminimum eligibility criteria laid down by the organization. The skills, academic and

family background, competencies and interests of the candidate are examined during

preliminary interview. Preliminary interviews are less formalized and planned than the

final interviews. The candidates are given a brief up about the company and the job

profile; and it is also examined how much the candidate knows about the company.

Preliminary interviews are also called screening interviews.


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2. Application blanks- The candidates who clear the preliminary interview are required tofill application blank. It contains data record of the candidates such as details about age,

qualifications, reason for leaving previous job, experience, etc.

3. Written Tests- Various written tests conducted during selection procedure are aptitudetest, intelligence test, reasoning test, personality test, etc. These tests are used to

objectively assess the potential candidate. They should not be biased. In Sapura Industrial

it only for position engineer, and technician.

4. Employment Interviews- It is a one to one interaction between the interviewer and thepotential candidate. It is used to find whether the candidate is best suited for the required

job or not. In Sapura Industrial the interviewer is according to the position. For position

executive usually interviewer is General Manager HR Department, General Manager

Department, HR Executive, and Head of Department. Position non-executive interviewer

is Supervisor and HR Representative (according to department).

5. Medical examination- Medical tests are conducted to ensure physical fitness of thepotential employee. It will decrease chances of employee absenteeism.

6. Appointment Letter- A reference check is made about the candidate selected and thenfinally he is appointed by giving a formal appointment letter.


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5.1 DIFFERENCE BETWEEN RECRUITMENT AND SELECTION

Basis Recruitment Selection

Meaning It is an activity of establishing contact

between employers and applicants.

It is a process of picking up more

competent and suitable employees.

Objective It encourages large number of Candidates

for a job.

It attempts at rejecting unsuitable

candidates.

Process It is a simple process. It is a complicated process.

Hurdles The candidates have not to cross over

many hurdles

Many hurdles have to be crossed.

Approach It is a positive approach. It is a negative approach.

Sequence It proceeds selection. It follows recruitment.

Economy It is an economical method. It is an expensive method.

Time

Consuming

Less time is required. More time is required.


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6.0 TRAINING AND DEVELOPMENT

Probably the most significant investment an employer can make is training. According to

Nadler (1984), training is the organizational activity which aims to improve an employees

current performance. Training is also define as education that consist of activities designed to

prepare employees for future jobs and development is those learning activities designed to help

the individual employee grow but which are not confined to a particular job. The advantages of

effective training are it can increases workers productivity, increases workers job satisfaction,

keeps workers skills and knowledge up-to-date and helps to motivate workers. Training is also

helps to increase worker productivity by improving their ability to do their current job.

6.1 TRAINING PROCESS

a) Identify Training Needs

Before training action is taken to organize a training programme, a training needs

analysis should be carried out. When conducting training need analysis, a key question must be

answered; which worker or workers need training? In fact, when training is given to employees

who are not in need of it, there is a very real danger of increasing frustration on the part of the

worker. A course participant with negative feelings towards the programme may become

disruptive, uncooperative and generally demotivate the others attending the same course.

In Sapura, the needs of training is depends on their Head of Department. In addition, the

Head of Department will analyze and give suggestion which workers should be join the training.

Basically, the training should be given to their new staff. However, the existence staffs are also

being given if they show a low work performance and need extra knowledge to enhance their

capabilities and skills.


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b) Set Training Objectives

For each programme offered, clear and specific objectives must be laid down. Wherever

possible, these objectives should be quantified as measurable objectives are an important aid in

evaluation. It is very useful to state clearly the standards that are to be achieved by the trainee.

As like Sapura, basically the training objective for the employees is stated by the Head of

Department. It is because, the request of training needs for their employees should be inform to

HR Department that includes the purpose and the reason why the training should be organize.

c) Design the Training Programme

In order to organize an effective training programme, a great deal of time and thought has

to go into designing and planning the programme. The various factors such as facilitators, venue,

and a number of participants, training methods and budget must be taken into consideration. As

like Sapura, the number of participants is depends on the selection by Head of Department. The

training method uses is different for each position in Sapura. For instance, the training method of

their new staff for executive and non-executive position should be conducted in different number

of day and the input of the programme is also different. In order to make sure the training is run

smoothly and achieve the standard needs by HOD request., the training need analysis is also be

used. Training Needs Analysis (TNA)) is the formal process of identifying the training gap and

its related training need. Training analysis is a process often covers a review of current training,

task analysis, identification of training gap, statement of training requirement, and assessment of

training options.


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d) Implement the Training Programme

The implementation of the training programme is depends on the employees criteria. In

Sapura, the method or implementation used for their employees is different which divided to

executive and non-executive position for both new and old staff. Training for executive position

should be conducted on a half day, and the other position should be conducted for two days.

Then for executive staff, On-Job-Training is also conducted as for continuous training which

gives the employees a briefing about 2 or 3 hours that related to their job scope and flow of the

job in the department. The induction programme for both position are include introduction of

company history, the rules and regulations, ethics, basic environmental health training, quality

management system, basic learning of 5s, and workflow of the company.

Besides that, an outside training is also will be given to existence staff based on the

advertisement that allow some employees to get their training which conducted by outside

programme. The Head of Department will select the employees that are suitable to join these

training. For executive and non- executive staff training, HOD will get the approval from the

General Manager, but for General Manager training, approval from CEO should be get before

they were join the training.

e) Evaluate the Training Programme

The training programme should be evaluated to ensure the objective of the programme is

achive. The evaluation process includes trainees responses, trainee learning, application of new

skills and knowledge and work performance.


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In Sapura, after three month of training, the performance of employees will be evaluated

as for training effectiveness base on Head of Department evaluation. The employees that give

low performance after the training will be sent to other training again or should be continuous

supervise by their HOD.

6.2 STAFF DEVELOPMENT

In Sapura, staff development was divided for two parts; (1) development that related to

the strategy and knowledge, (2) career development. For the first part, the development

programme for the staff was include staff engagement, health development programme,

motivation programme, HR communication and so on. Likewise, for the second part of the

development process, the employer will organize the career development programme which

gives the employees a fund to further their study in local universities with the course that relate

with their job. Basically, Sapura was cooperating with University Malaysia Pahang to send their

employees to further their study at this university. After their employees finished their study,

Sapura will give them a contract to work back at Sapura to ensure their employees will not go

away to find a job to another company. The reason is, Sapura will maintain their total number of

employees and use their employees knowledge to increase a performance at workforce.


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7.0 PERFORMANCE APPRAISAL

A performance appraisal is a review and discussion of an employees performance of

assigned duties and responsibilities. Yong (1996) defines performance appraisal as an evaluation

and grading exercise undertaken by an organization on all its employees either periodically or

annually, on the outcomes of performance based on the job content, job requirement and

personal behavior in the position. This means that appraisal is not only about the employees

personal characteristics, but it is all about the results obtained of his/her job. This appraisal also

helps the employee to be more motivated and thoughtful of the works she/he had done.

Performance appraisal is a vital component of a broader set of human resource practices;

it is the mechanism for evaluating the extent to which each employees day-to-day performance

is linked to the goals established by the organization (Coutts and Schneider, 2004). It is

important to set the employees goal to be aligned with the companys goal. This is to ensure that

theirperformance is towards accomplishing the companys goal.


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As in Sapura, performance appraisal has been categorized into two categories; non-

executive and executive.

a) Non-executiveNon-executive is divided into two; confirmation and contract. For contract, which those

are from manufacturing line, they have six (6) months of trial. They will be evaluated by Head of

Department. For confirmation, they have three (3) months of trial, and if they perform well, they

will get the permanent position.

After being promoted to the permanent position, the employee will get the Anniversary

Appraisal. An employee who has completed one year of service comes up for appraisal without

having to wait for the organizations annual evaluation to end. Every employee will receive the

Anniversary Appraisal and there is an adjustment in compensation on the one year anniversary of

the starting in a job. All employees get reviewed and receive the adjustment of compensation at

the same interval.

Last but not least, the performance appraisal which be held annually, every January. For

the non-executive, the evaluation process is from January until December. They will be

evaluated by the leader of the units, departments, or supervisor.

b) ExecutiveExecutive position requires for new employee to get confirmation after six (6) months of

starting job. After being confirmed, the employee will receive the anniversary appraisal, one year

after beginning from the date of confirmation. However, in order to get this appraisal, the

employee will be evaluated based on the attendance including medical certificates (MC) and

emergency leave (EL), teamwork, and team commitment.


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Performance appraisal for the executive level differs from the non-executive. This

appraisal is held every July annually. Same as the non-executive, employee in executive level

will be evaluated by the leader of units, departments, manager, or even the general manager.


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8.0 CONCLUSION

Different organizations use different human resource strategies or plans to ensure that the

objectives of the department as well as the company aligned. Human Resource professionals

need to choose the approach that best fits their companys organizational needs and goals.

Business planning, organizational culture, hiring practices and need to compare employee

performance must be taken into consideration when deciding which review process is best.

Besides deciding which performance appraisal should be chosen, it is important to remember that

performance feedback should be continuous. One thing not to be forgotten, in order for the

employee to be conducted or evaluated for the appraisal, it is important for the evaluator to

possess the skills or motivation that is being rated to the employees performance.


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REFERENCES

Yong, Alex K.B. 1996. Malaysian human resource management. Kuala Lumpur: Malaysian

Institute of Management.

Coutts, L.M. & Schneider, F.W. 2004. Policeofficer performance appraisal systems: how good

are they? Policing: An International Journal of Police Strategies & Management 27 (1): 67-81

Nadler, Leonard (ed.) (1984).Human Resource Development, New York: John Wiley.

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