‘Contemporary Human Resource Practices in Bangladesh’

Course ID: HRM410

Section: 01

Semester: Spring, 2022

Assignment Title: MALAYSIA’S HRM DEVELOPMENT

Submitted To:

Dr SHIBLY KHAN

Submitted By:

Rashad Mahmud- 1822044

Nayyar Ahmed- 1710939

Date of Submission: 15th April 2022

 Letter of Transmittal

15th April 2022

Dr. A N M Shibly Noman Khan
Associate Professor
Department of Human Resource Management
Independent University Bangladesh (IUB) Bashundhara R/A, Dhaka-1212.

Subject: MALAYSIA’S HRM DEVELOPMENT

Respected Sir,

It is indeed a great pleasure for me to be able to hand over the result of our hardship of the
HRM 410 report on “MALAYSIA’S HRM DEVELOPMENT”. This report is the result of
the knowledge which has been acquired from the respective course.

We have tried our level best in preparing this report. The information in this report is mainly
based on the website available on the internet regarding this Country. We gave our hundred
percent for making this report come together.

We fervently hope that you will find this plan worth reading & earnestly request you to call
upon us for any query or clarification that you would like us to explain. Hope you will
appreciate our hard work and excuse the minor errors. Thanking you for your cooperation
and best regards.

Sincerely yours,

Nayyar Ahmed

Rashad Mahmud
 Acknowledgement
First of all, we are grateful to almighty Allah for blessing us to complete the report, no noble
Achievement can be achieved by an individual without the help of others.

We wish to express our sincere gratitude to Dr. A N M Shibly Noman Khan for instructing us
to prepare a report on the “MALAYSIA’S HRM DEVELOPMENT”. It is our pleasure to
work on it and complete this report successfully. The report would not have been accurate
without the guidelines from Dr. A N M Shibly Noman Khan. Also, we would like to thank
everyone who directly and indirectly helped us in completing this report. We are also
thankful to them who made their contribution to our research methods, providing useful
information, data, and analysis. Working on this report has allowed us to unfold our potential,
think unique and enhanced our decision-making skills.

Finally, would like to say that We have tried heart and soul to prepare this report accurately.
However, there might be some errors and mistakes, so we seek your kind consideration as are
in the process of learning.
 Table of Contents

Sl No Name of Topic Page no.

1. Human Resource Development Introduction 01

2. Evolution of Human Resource Development in Malaysia 01

3. Background (Human Resource Development) 02

4. Country’s Structure 03

5. HR Policy and It’s Implication 04

6. Reflections On the Objectives and Strategy in HR Policy 06

7. Conclusion 07

8. Reference 07
 HUMAN RESOURCE DEVELOPMENT INTRODUCTION

Human Resource Management (HRM) is a business activity that aims to improve worker
performance to accomplish the organization’s key objectives and targets. More specifically,
HRM focuses on the board of persons within businesses, emphasizing methodologies and
frameworks. So, human resource management (HRM) is the process of recruiting, selecting
employees, providing legitimate guidance and acceptance, conferring proper training, and
developing skills. HRM additionally incorporates worker evaluation, for example,
performance evaluation, working with legitimate remuneration and benefits, consolation,
keeping up appropriate relations with work and with worker's guilds, and dealing with fair
representation, security, government assistance, and wellbeing by conforming to work laws
of the state or nation involved.

EVOLUTION OF HUMAN RESOURCE DEVELOPMENT IN MALAYSIA

During the 1960s, HRM was transformed by a component of Title VII of the Civil Rights Act
and another anti-separation enactment, simply as official leader arrangements that required
numerous organization’s to embrace governmental policy about minorities in society to cure
previous discriminatory practices. Equal business opportunity and government legislation
towards minorities in society have enormously complicated the HRM task but have also
increased its relevance in modern organizations. As discussed in greater detail in a
subsequent section, these responsibilities continue to include a large portion of the HRM job.
Finally, changes in labor socioeconomics, innovation, and globalization since the 1980s have
had a substantial impact on HRM work. These factors are also addressed in greater depth in a
subsequent section. Human Resource Management Development Achievements 1890-1910
Frederick Taylor expands on his ideas on logical administration. Taylor supports rational
laborer selection based on capabilities and motivator-based compensation structures to rouse
people.

Human resource development in Malaysia might have begun as early as the 1980s. The
historical growth and emergence of HRD in Malaysia lacked empirical data, and the
development of HRD during this era was not particularly clear and concentrated. HRD may
have begun in 1983 when the Commonwealth Nations Secretariat established the Human
Resources Development Group (HRDG) to help ASEAN countries improve their human
resources (Commonwealth Report, 1982:32; Commonwealth Secretariat, 1993). And in 1984,
the ASEAN nations, including Malaysia, which is a member of the ASEAN Pacific Rim,

Page-1
began making recommendations to assist in developing human resources, notably in
education, training, and skill development for new technologies (Hashim, 2000). It could be
argued that the emergence of HRD began in the mid-1970s when the government started
developing Bumiputras in businesses to improve economic disparities, or it could have
begun, as in the UK, during the economic recession in 1985, when the government started its
aggressive drive towards manufacturing and industrialization. However, the strong proof was
shown in 1991, when the Malaysian government began to integrate HRD initiatives into the
country's development plans and policies in the Second Outline Perspective Plan and the
Sixth Malaysia Plan. One of these initiatives' primary objectives is for the country to be fully
industrialized by 2020, with a skilled and knowledgeable workforce. HRD, on the other hand,
may have started even before Malaysia's independence, when Indian immigrants were
brought in to work in tin-ore mines and oil palm plantations.

BACKGROUND (HUMAN RESOURCE DEVELOPMENT)

Faculty organization, which became a distinct discipline in the 1920s, was primarily
concerned with the specialized aspects of recruiting, evaluating, preparing, and repaying
delegates and was a lot of "staff" labor in many associations. The field didn't usually focus on
the relationship between varied business approaches and, for the most part, authoritative
implementation or the systematic connections between them. In addition, there was a lack of
a unified viewpoint in the profession. HRM arose from the vast increase in competitive
pressures that business organizations began to experience by the late 1970s due to causes
such as globalization, freedom, and rapid creative development. These conflicts heightened
concerns about businesses participating in critical planning - a process of projected future
changes in climate circumstances (both the nature and the level of the market) and altering
various areas of the organization to enhance contact directly. Human resource management
(HRM), often known as staff management, refers to a company's efforts to ensure that
employees are effectively used to achieve individual, group, and organizational goals. The
HRM work of an association is centered on the individual's side of the board. It includes
procedures that help the organization manage its members at various stages of the work
cycle, such as pre-enlistment, staffing, and post-employment. Arranging rehearsals is part of
the pre-enlistment step. The organization should determine what job opportunities will be
available shortly and what skills are required to fill these roles. The association selects its
delegates during the recruit stage. Recruiting applicants, assessing their talents, and selecting

Page-2
the best prospects are all part of the selection process.

COUNTRY'S STRUCTURE

Malaysia is a multi-ethnic and religious Southeast Asian country that is one of the wealthiest
and most developed in the region, behind only Singapore and oil-rich Brunei in terms of
GDP. On August 31, 1957, the Federation of Malaya gained independence. Singapore, Sabah
(previously British North Borneo), and Sarawak joined the federation on September 16, 1963.
From that point forward, the term "Malaysia" was used. Singapore withdrew from the
federation on August 9, 1965. According to the International Monetary Fund, Malaysia's
economy is the fourth biggest in Southeast Asia and the 38th largest in the world. Due to a
high density of knowledge-based sectors and the use of cutting-edge technologies for
manufacturing and the digital economy, labor productivity in Malaysia is much greater than
in neighboring Thailand, Indonesia, the Philippines, or Vietnam. According to the Global
Competitiveness Report 2019, Malaysia's economy is the 27th most competitive in the world,
and it is one of the top ten nations in the world in terms of adopting a digital legal structure.
Malaysians have a wealthier lifestyle than practically all other ASEAN countries, with only
Singapore and Brunei being able to compete. This is due to a rapidly expanding export-
oriented economy, a relatively low national income tax, very inexpensive local food and
transportation fuel, and a fully-funded single-payer public healthcare system. Malaysia has a
freshly industrialized market economy that is mainly open and oriented toward the state.
Malaysia's economy is strong and diverse, with high-tech exports valued at US$92.1 billion
in 2020, second only to Singapore in ASEAN. Malaysia exports the second-highest volume
and value of palm oil products globally, after only Indonesia. Despite government policies
aimed at increasing per capita income to accelerate Malaysia's progress toward becoming a
high-income country by 2020, wage growth in Malaysia has been prolonged. It lags behind
the OECD average. Furthermore, from 2011, a social welfare benefit known as Cost-of-
Living Assistance has been in existence, with direct cash benefit distribution. The
government increased revenue-generating tactics by instituting a 6-percentage-point Sales
and Service Tax (SST). Its immediate priorities for 2018 were to cut deficits and pay
government debt commitments.

Page-3
 HR POLICY AND ITS IMPLICATIONS

Human resources (HR) are the spine of an organization (Gerhart & Milkovich 1990, Pfeffer
1998). Moreover, the persevering with prosperity of an organization is probably to be
improved through personnel who keep attitudes, price and expectations which might be
carefully aligned with the company vision (Borman & Motwidlo 1993, Spector 1997, Cable
& Parsons 2001, Feldman 2003). Clearly, hiring successful human beings is an appealing
factor of departure with inside the process, however constructing and maintaining a dedicated
body of workers is much more likely to be facilitated through the employment of state-of-the-
art human aid management (HRM) infrastructures (Schuler & Jackson 1987, Beechler, Bird
& Raghuram 1993). Arguably, HRM regulations and practices may be strategically designed
and mounted to sell ideal employee outcomes, which consist of the enhancement of the in
position and further position behaviors of personnel. Yet, no matter such steeply-priced
investments, businesses are usually attempting to find strategies to enhance and cement the
linkage among personnel and their organizations.

The government's plans to develop the economy based on a skilled workforce are clearly set
out in the National Vision Policy (NVP). Of the seven key drivers of NVP, two are
particularly relevant to human resource development.

1) Knowledge-based economic development strategic steps to add value to all economies

sector and country intelligence optimization.

2) Strengthening human resources development competent, productive and knowledgeable

labor force.

Moreover, except the thrusts beneath Neath the NVP, the Ministry of Human Resources has
its very own coverage to guide the thrusts. The human assets improvement coverage beneath
Neath the Ministry of Human Resources specializes in assisting companies to reap
development in employee productivity, efficiency, value-brought operations and
competitiveness each regionally and globally. The Government beneath Neath Ministry of
Human Resources have carried out the Human Resources Act in 1992 to guide the
Government`s plans and regulations for human assets improvement. This Act is empowered
to impose and gather human assets levy from employers to sell personnel schooling and
improvement. The Act is carried out to pool all levy amassed from employers to set up a
Human Resources Development Fund (HRD Fund). In addition, the status quo of the
Page-4
Pembangunan Sumber Manusia Berhad (PSMB) (Human Resources Development Council)
to manage the HRD Fund is one of the precedence and motive of the Act.

The role and function of HRD is becoming increasingly important at both the organizational
and national levels and in the global context. HRD research and research in Malaysia is
challenged by the lack of empirical research in the field of HRD. Therefore, scholars and
researchers who understand Malaysia's national strategy for HRD will be assisted by
literature and further research to address the lack of empirical literature in Malaysia and the
Asia-Pacific region.

REFLECTIONS ON THE OBJECTIVES AND STRATEGY IN HR POLICY

The purpose of this study is to explore the relationship between business strategy, HRM
practices and employee outcomes. HR regulations also are described as that frame of ideas
and policies of behavior which govern the business enterprise in its courting with personnel.
Such a coverage declaration offers suggestions for an extensive style of employ-ment
relationships with inside the enterprise. The motive and importance of the HR regulations
infrequently want any elaboration. Every enterprise wishes regulations to make sure
consistency in motion and fairness in its relation with personnel. Policies serve the motive of
attaining organizational desires in a powerful manner. HR regulations represent the premise
for sound HRM practices. Moreover, regulations are the yardstick through which
accomplishment of programmers may be measured. Human Resources regulations are
generalized suggestions on worker management, followed through consensus in an
organization to alter the behavior of personnel and their managers or supervisors. As for the
dichotomy among HR coverage and a procedure, they may be in comparison to a person and
the shadow. Both are inseparable and as shadows set the outlines of a person, so do strategies
set the outlines of HR coverage.

HR policies facilitate in achieving the organizational objectives, and also ensure a consistent
treatment of employees, thereby minimizing the scope of favoritism and discrimination. This
ensures efficient utilization of human resources within an enterprise. The National Industrial
Conference Board, USA, has defined HR policies as a `written statement of an organizational
goal and intent concern-ing matters that affect people in the organization`. According to this
view, policies are stated in broad and long-range terms that express or stem from the
philosophy or belief of the organizations top authority.

Page-5
(1) HR regulations should be an expression of notion or purpose and replicate the philosophy
of the pinnacle man-agement. It must be said in a clean and comprehensible way leaving no
scope for any ambiguity. The coverage assertion must make sure an alignment of HR goals
with the company goals.

(2) It should have long-variety implications, and additionally meet the necessities of
nowadays and tomorrow.

(3) It must be evolved with a lively participation of the pinnacle management.

(4) The improvement of regulations must be suggested via way of means of a committee of
senior executives headed via way of means of the leader government.

(5) The number one feature of the HR government is to serve in a `staff` capacity, feeding in
thoughts and pushing the undertaking along. Due care must accept to its (regulations)
formulation.

(6) The HR regulations should be authorized via way of means of the very best authority
with inside the organization, i.e., the Board of Directors.

(7) The coverage assertion must cowl all of the purposeful regions of HRM.

(8) It should be in writing; in any other case it isn't always probable to be taken seriously.
Writing guarantees uniformity of application, presents something concrete to base on, and
must enchantment if there's any disagree-ment as to what the regulations are. It additionally
serves as a precious manner of educating new personnel and supervisors. The written
coverage assertion must incorporate 3 primary parts, namely, objective, procedure, and
precise assignments of precise obligation to individuals.

In addition to the above example, there may be many other personnel policies. Top
management of personnel policy design is primarily personnel or personal manager because it
is a person who mainly deals with human resource function and human resource programs
and guidelines.

Page-6
 CONCLUSION
Government priorities for planning more places and more goals in mind access to quality
education and training strengthening human capital to support economic development.
Conversion business requires technical skills and expertise workers blessed with tacit
knowledge and a high level of thinking ability. Therefore, many the government has worked
to ensure this is what the education and training system can do the quality of intellectual
capital has also improved expand human capital. Malaysia's HRD system has different
categories of education and training. First official academic training obtained at universities,
colleges and other similar institutions. The second is formal education and training by
specialized institutions obtained from colleges of technology nationwide. Finally, there is
informal training and education for professionals available through the various programs
offered in the workplace. In addition, various training programs and human resources
development funds, skill development funds are available only in all manufacturing and some
service industries of all sizes and industries, this financial support allows companies to
provide workers with knowledge and skills. There is no excuse for not providing it to the
required industry.

Reference
1)https://www.jstor.org/stable/25773595?fbclid=IwAR2QzfrkGeLaLalaIs8Ob_3jyziU15eQr-
9f1Ks_MRBMYf__ZcaMs1U1xtg
2) https://www.emerald.com/insight/content/doi/10.1108/978-1-80043-806-
420211013/full/html?fbclid=IwAR2FE1fI4sLsc_AiTiegr5b64ufQWQBbpe-
2QfAEAxlTARI5el4ZKJ-ar3U
3)https://www.researchgate.net/publication/288632521_Human_Resource_Management_Pra
ctices_And_Organizational_Innovation_An_Empirical_Study_In_Malaysia
4) https://hrmasia.com/category/markets/malaysia/

Page-7