NATIONAL DEFENCE UNIVERSITY OF MALAYSIA

SUNGAI BESI CAMP

INDIVIDUAL ASSIGNMENT

Course : DMR3393 Performance Management and Reward System

Lecturer : Prof. Dato’ Dr. Mohamed Fadzil bin Che Din
Class : 3ZP45A
Topic : Proton Berhad

Student Names Matrix Number

Pkdt Mohamad Azreel Haidee bin Samsuddin 2190538
1. Kaji sistem performance management

The birth of Proton was conceived by the former Prime Minister of Malaysia Dato
Seri Dr Mahathir Mohamad, and he proceeded to launch the Perusahaan Otomobil
National (Proton) in 1983 manufacture, assemble and sell motor vehicles and related
products, including accessories, spare parts and other components. By 1985, proton
achieved its aim of building a national car by launching the Proton Saga (MPI). It was
Malaysia's first domestically produced car, and is still available for sale in both
Malaysia and other parts of the world today (Proton, 2011).

Since the launch of Saga, Proton cars have been exported to over 50
countries, with key markets including the UK, Australia, Singapore and the Far East.
Proton's main and first plan, with 99,400 sq m, is located at Shah Alam a close
proximity with Kuala Lumpur. The location is also the house for an engine and
transmission factory, a casting plant, R&D center and a semi-high speed test track
(Proton 2010).

Proton currently employ over 6, 000 personnel, and took a major step towards
upgrading its engineering capability by acquiring 100% of Lotus share in 2003. Since
the acquisition, personnel from Lotus have been in close collaboration with Proton's
new model development, under the Lotus team that is permanently based at the
design and development center in Malaysia (Proton 2010). Its model line-up includes
the Waja, Satria GTi, Wira, Iswara, Arena, Perdana V6 and Juara.

The company's mission is to strive towards excellence in all aspects of

proton's operations. In achieving its goal, Proton believes that it is necessary to
promote and protect the health and safety of proton employees and ensure that the
environment is unharmed (Proton 2011).

To be able to compete in a liberalised market, it is key to get things right in

terms of customer satisfaction and quality. This involves a positive experience with
the dealer during the sale and service of the vehicle, satisfaction with the initial
quality of the vehicle and satisfaction with the dependability of the vehicle after
extended use.
Proton adopts the three-stage line inspection for quality assurance – static
evaluation on fitting and appearance exterior and interior on cars that are just
produced from the production line, dynamic evaluation on function and drivability and
final inspection before being approved fit for delivery to customers. From May 2003,
all inspections have been transferred to the production line to further empower the
employees. Vendor quality was addressed at source using Advance Product Quality
Planning (APQP) teams.

As a result of these initiatives, there was further reduction in the number of

quality problems. Built-up quality was improved from 8.8 defects per car in 2002 to
7.2 defects in 2003 and 6.9 defects in 2004. This reduction was in large part due to
Quality Control Circle activities, which achieved significant waste elimination savings.
Other efforts like standardising our processes through our Quality Operating System
and engaging our employees through Kaizen activities are making a difference in
quality. As a result, various internal and external indicators of quality performance
show that we are making significant progress. However, outgoing quality
deteriorated to 12 demerit points from 8.5 demerits the year before as the production
line adjusted to the new quality inspection procedures.

2. Analisis sistem

Besides quality management system, advancement in research and development

and high financial capitals, organizations need a corporate culture that constantly
reminds its employees of the company's main objectives. According to Proton
(2012), each employee practices the company's shared values of guiding their
behavior with other employees and customers. These shared values can be further
discussed below as adapted from Proton (2012).

i. Quality - Proton ensures continuous quality improvements for its customers

through delivering of products that positively conceptualized and
manufactures.
ii. Customer focus – the company maintains that customers' remains their
priority and they deliver all promises made towards customers' satisfaction.
iii. Innovation – Proton continues to challenge automobile conventions by
seeking new and better ways to undertake their day-to-day activities through
viewing change as an opportunity.
 iv. Teamwork – the workforces trust, share and respect knowledge as a means
of fostering productivity through teamwork.
v. Speed – Proton claims to operate on a "can-do" attitude and will never rest
until they find solutions to each challenge.
vi. Caring – in their quest to always be a responsible corporate citizen, Proton
invest in safety and health of its workforce and the environment.
vii. Honesty – Proton allows transparency in their organizational system and
takes responsibilities for their own actions.

Their corporate culture which is highlighted in their value above is an essential

police for internationalizing as customers need quality products and customer
oriented services in order to make purchases, while Proton needs to innovation,
teamwork and speed as a way of maintaining and gaining competitive advantage,
and finally caring and honesty is essential to gain the full trust of the stakeholders in
international markets. Thus, it can be argued that such organizational policy made
internationalization easy for Proton Holdings Bhd.

3. Dia buat ini utk apa apa bagai

i. Strategically Congruent

At Proton, there are two types of workers: non-executive and executives. Foremen in
the production line, executive officers from production and non-production line are
classified as executives, while other personnel below this category are classified as
non-executives. This is a minimum job classification many big Japanese companies
(Milkman 1991; Abo, 1992), including auto makers such as Nissan Motor
Manufacturing where all manual tasks are done by only two titles, manufacturing
staff and technician.

This form of job classification is applied in Proton (Bratton, 1992). By classifying job
positions into just two categories, it ensure easier recruitment of staffs, proper and
effective training programs are employees are either in the production and
manufacturing unit or in the technical department which requires different skills for
different department but similar amongst the undertakings of each departments.

ii. Identifies effective and ineffective performance

They are two points of entry in Proton, one for operatives and another one for
executives. Both positions target new school or college level graduates. This is an
imitation of Japanese automotive manufacturing companies, which specifically
recruit young workforces, fresh school graduates who are ready to be uncalculated
in the company's strong work ethic that stresses dedicated performance of tasks,
discipline, productivity and total commitment to quality of product features (Dore and
Sako, 1989).

By recruiting young and enthusiastic staffs, Proton is able to reduce the huge salary
associated with the more experienced personnel, while also increase their
productivity level through an integrated workforce system that promotes dedicated
and selfless services towards maintaining quality and standards of their brand.

iii. Identifies effective and ineffective performance

Training and development is considered as a prime responsibility by Japanese

companies (Inohara, 1990). The training is a face-to-face interpersonal training
acquire through a hands-on-desk approach. The development process for Proton's
staffs are not only initiated in the human resource department but also in other
departments of concern such as unions, club, the welfare committee, the prayer
room committee, and housing apartments association. This is because working is
also considered as part of someone's religion within the Malaysian society.

Through the third human resource approach, Proton is able to induct a spirit of
dedication in their workforce, as the mostly religious Malaysian see the act of
working for them as being of a spiritual commitment to their religion. Thus, this in
return ensured continued productivity and low employment turnover with most
employees willing to work for the company for the rest of their lives.

4. Adakah sistem ini penuhi sistem yg ada dalam slide

Yes. This system fills the existing system in the slide because these 3 systems are
contained in the 15 existing systems in the slide. This system is important to ensure
the smooth work of human resource officers to employees working in the company.