CHAPTER 1

INTRODUCTION OF THE ORGANIZATION

1.0

Introduction

This chapter provides the background of the organization, the objectives and organization
policy, mission and vision, organizational structure, the core business of the organization and
other relevant information pertaining to the organization that the practical student was placed
and complete their internship.
1.1

History of Royal Malaysian Customs Department

The Royal Malaysian Customs (RMC) or better known in Malay as Kastam Diraja Malaysia
(KDRM)) is one of the government agency and it was responsible for administrating the
national indirect tax policy, collecting national output in term of tax, providing facilities to
industrial and trade sector and ensuring law compliances. In other words, RMC administers
seven main and thirty-nine subsidiary laws. Apart from this, RMC implements eighteen laws for
other government agencies. Customs Department is now known as RMCD (Royal Malaysian
Custom Department) when Dato' Sri Hj. Ibrahim bin Jaapar takes over as Director General of
Customs in 2009. But then, RMCD is still maintained even when presents Director General,
Dato Khazali bin Haji Ahmad took placed (RMCD, 2012).
1.1.1

Early History of Tax Administration

Tax administration system was established very long before. It is actually existed before
any Western powers ever come to Tanah Melayu or set foot in this land. It
means that the tax administration system had actually existed since the heyday and
1

administration of the Melaka and Johor-Riau Sultanate. The tax system was being
established due to

Melaka and Tanah Melayu was being one of the world most

important ports during that

time.

In the era of the Melaka Sultanate, Canon Law and Maritime and Harbor Laws were the
two main laws that being used and refer to govern the state. Maritime and Harbor Laws
existed along with matters pertaining to the tax structure involving the foreign and local
merchants. During that period the tax collector and all tax-related matters were the
responsibility of the Chief of the Exchequer or the Shahbandar. The portfolio in charge
of tax collection was the Harbor Master. He was entrusted by the King or Sultan with
the power to enforce the rules and Harbor Laws.
On January 1907, a new post of Inspector of Trade and Customs was created. On the
same date also, a legislation called The Customs Regulation Enactment was
introduced with the approval of all four States Legislative Board. In 1908 the title of
Inspector of Trade and Customs had been change to Commissioner of Trade and
Customs. With the existence of this enactment, import and export tax schedule became
uniform in the Federated Malay States. A complete integration occurred in 1920 with
the Establishment of one uniform Customs enactment for the Federated Malays States.
However, in 1938 the title Commissioner of Trade and Customs was changed to
Comptroller of Customs.
Later on, the name was changed to Customs and Excise of Malayan union in 1946,
Federation of Malaya Customs and Excise Department in 1948. In 29 th October 1963,
Customs Department was given the Royal title by Yang Di-Pertuan Agong since the
Customs Department was played vital roles towards the collection of national income
and dealing with import, export and businesses in the country. Hence, Customs
2

Department again was changed their name to Royal Customs and Excise Department
in 1963. However, Customs Department had to increasing of its performance and
function. As the time changing, customs also had changed its administration system
from traditional to become modern administrative systems which are very effective and
parallel to the development of Malaysia at that time. Due to that, Royal Customs and
Excise Department had changed their name to Royal Customs of Malaysia in 1998 and
Royal Malaysian Customs Department (RMCD) in 2008 which remains until present
time. (RMCD, 2012)
1.2

Customs Organizational Chart

The following chart shows the top level management, organizational chart of Royal Malaysian
Customs Department and State Royal Malaysian Customs Department Of Wilayah
Persekutuan Kuala Lumpur (WPKL).

Figure 1.2.1: Royal Malaysian Customs Departments Organizational Chart

Sources: Adopted in RMCD (2012)

Timb. Pengarah Caw.

Peng. Perolehan

Pengarah Bahagian
Perundangan

Ketua Akauntan
Caw.Akaun

Timbalan Ketua Pengarah

Kastam (Pengurusan)

Timb. Pengarah Caw.

Khidmat Pengurusan
Timb. Pengarah Caw.
Perkhidmatan/Latihan

Timb. Pengarah Caw.

Teknologi Maklumat

Timb. Pengarah Caw.

Logistik

Timb.Pengarah Caw.
Prestasi & T/tertib

Timb. Pengarah Caw.

Peng. Kewangan

Pengarah Bah
.Perancangan Korporat

Timb. Pengarah Caw.

Perancangan Strategik

Timb. Pengarah Caw.

Hal Ehwal A/bangsa

Pengarah AKMAL

Timb. Pengarah Kastam

(AKMAL)

PKPK I Caw.
Perhubungan Awam

Pengarah Bah. KPSM

PK Wilayah Persekutuan
Labuan
PKN Melaka

PKN Pahang

PKN Terengganu

PKN Kedah

PK LTA Kuala Lumpur

PKN Negeri Sembilan

Pemungut Cukai Kastam

Persekutuan (PCKP) Singapura

Ketua
Pengarah
Kastam
Malaysia

PKN Wilayah Persekutuan

Kuala Lumpur

PKN Kelantan

PKN Perlis

PKN Selangor

PKN Sabah

PKN Pulau Pinang

PKN Perak

Timb. Pengarah Caw.

Penjenisan, Tarif & Gubalan

PKN Johor
Timb. Pengarah Caw.
Penilaian
Pengarah Bahagian
Perkhidmatan Teknik

Timbalan Ketua Pengarah

Kastam
(Perkastaman /CDN)

Timb. Pengarah Caw

Perakaunan Hasil

Pengarah Bahagian Cukai

Dalam Negeri

Pengarah Bahagian
Perkastaman

Pengarah Bahagian
Pengurusan (Pematuhan)

Timb .Pengarah Caw.

Dasar & Pelaksanaan CDN

Timb. Pengarah Caw.

Industri, Petroleum &Gas
Timb. Pengarah Caw.
CKKK

Timb. Pengarah
Caw Fasilitasi
Perdaganga &
Perindustrian

Timb.
Pengarah
Caw Imp/Eks
& Kawalan
Sempadan

Timb.
Pengarah CPI

Timb.
Pengarah
CAS

Pengarah Bah.
Pengurusan Pematuhan

Timbalan Ketua Pengarah

Kastam

PKPK I
Caw. CVI

Pen. Ketua Pengarah Kastam

(Penguatkuasaan)

Timb. Pengarah Caw

Pengurusan & Pemungutan

Timb. Pengarah Caw.

Pendakwaan
Timb.Pengarah Caw.
Narkotik
Timb.Pengarah Caw.
Rampasan
Pengarah Caw. Risikan

Pengarah Caw. Siasatan

Figure 1.2.2: Organizational chart of RMCD

4

Bahagian Khidmat
Pengurusan Sumber
Manusia

Cawangan Pentadbiran
Am

Cawangan Teknologi
Maklumat

Unit Pengurusan
Aset

Cawangan Kewangan

Cawangan Latihan

Unit Kenderaan

Cawangan Perolehan

Cawangan Kualiti &

Inovasi

Unit Perhubungan
Awam & Korporat

Cawangan Sumber
Manusia

Cawangan Pusat
Pelesenan Bersetempat

Stor Negeri

Cawangan Pasca
Import

ABT / Unit Gesaan

Bahagian
Pematuhan

Pengarah
Kastam
JKDM
WPKL

Cawangan Auditan
Syarikat

Cawangan Perakaunan
Hasil

Cawangan Penilaian

Cawangan Perjenisan

Cawangan Verifikasi
& Profiling

Bahagian Perkhidmatan
Teknik

Cawangan Import /
Eksport

Cawangan
Penggudangan

Cawangan Zon Perindustrian

Bebas (UluKlang)

Cawangan ICD Seri

Setia

Cawangan Zon Perindustrian

Bebas (Sg. Way)

Cawangan
Perindustrian

Cawangan Penguatkuasaan
Pelesenan

Cawangan Kawalan
Pungutan

Unit ABT

Cawangan Kawalan
Kemudahan & Konsultansi

Cawangan Remisi &

Pelupusan

Unit Penguatkuasaan Cukai

Dalam Negeri (UPCD)

Bahagian
Perkastaman

Bahagian Cukai Dalam

Negeri

Cawangan Kriminal

Cawangan Siasatan

Cawangan Sivil

Unit Stor

Bahagian Penguatkuasaan

Pusat Panggilan
Kastam

Figure 1.2.3: State Royal Malaysian Customs Department Organizational Chart

Sources: RMCD (2012)
5

Practical trainee was first had to report themselves at Human Resource Department which is
Training Unit as to be specific. Training Unit was a unit that was authorized to handle practical
student that applied to for their industrial training in RMCD. They also had to manage and have
the power on where to place the practical student they had accepted. In this case, the practical
student was place to Compliance Management Department which is ABT Unit as to be specific
in order to complete the internship for about 5 weeks.

1.3

CUSTOMS DEPARTMENT LOGO

The following was Royal Malaysian Customs Departments Logo.

Figure 1.3: Logo of Royal Malaysian Customs Department

Sources: RMCD (2012)

1.3.1 The Meaning of RMCD Logo

6

Every agencies in the government sector have their own logo which is this logo will
bring their identity and totally show the respect of people to them. Same to RMCD, they
also have their own logo that brings many meaning.
Based on that logo, the yellow and blue that have been the main color of logo is the
symbolic and main color of RMCD Malaysia, the tiger that hold the circle is show that
RMCD more firmness, determination and courage, the Star and Crescent represents
the sovereignty of the country which is Malaysia, the Blue Screen circle represents the
continuous improvement of total quality culture as always can be seen in their
performances, yellow circle in the middle represents the main focus of RMCD is
collecting taxes in an effort to increase the country's revenue and practice the quality
management, the circled that have be divide into two represents that RMCD is going to
achieve their world class vision, two direction top and bottom of the triangle symbol
represents the strategic direction in order gathering, control and safeguard the interests
of accurate of country and lastly the triangle symbolizes the ability to manage changes
and preserve the integrity of the department.
1.4

RMCD Function and Objective

Royal Malaysian Customs Department (RMCD) was established to collect tax from all
businesses done in Malaysia. All company that has been register had to pay tax. Hence,
customs department was the department to collect tax and duty from all of the company that
runs their businesses. Besides that, custom also functioned to ensure that all local business is
able to growth since the import and export businesses also will be tax. Since the custom
department is very important in collecting the countrys revenue and income which is through
tax, the government was put custom department under the Ministries of Finance and become

one of the ministries Legal Bodies or agencies. Custom in the other words is established due
to collect tax and collect the income of the country (RMCD, 2012).
1.5

Mission and vision

The mission of customs is to spurring the economic growth, preserving national security and
well-being of the people through revenue collection services, facilitation of trade and
industrialization, and ensuring adherence to the laws through efficient and effective means.
The vision of customs is to make Malaysian customs services to be world class in 2015
(RMCD 2012)
1.6

Compliance Management Division

Function of customs department was to collect tax and all other duties and excise. Customs
was authorized with act and law in order to perform their roles. Due to that matter, customs
department had to fulfil their duty to collect tax from businesses in the country. However, there
is some company or individuals that runs business but did not want to pay taxes imposed to
them. Hence, Compliance Management Division was created in order to collect from those
who not pay the tax on time.
Besides that, Compliance Management Division also was being established to investigate and
audit the company to count then amount of that businesses had to pay for tax. Sometimes,
company lied to customs by declaring less profit in order to pay less tax. Hence, Compliance
division will audit and enforced the business company to pay at the right amount of tax
imposed to them after actual audit and amount of tax had been imposed (RMCD, 2012).

1.6.1

Function of Compliance management division

8

According to Royal Malaysian Customs Department (2012), the functions of the

Compliance management division are like the following:
1

To conduct systematic, efficient and effective audits on licensees or

importers

To ensure that taxes are collected properly and accurately to avoid loss
of revenue

To monitor and coordinate the audit activities in the states and evaluate
the effectiveness of the audit program

To review and evaluate the implementation of the audit procedures for

the purpose of improvement

To analyse the result of audit to determine the cause of non-compliance

of the laws and regulations

To ensure that licensees or importers understand and comply with

legislation and regulation related to customs

To conduct investigate audit on licensees or importers involving fraud

and to take legal actions appropriately

To perform special audit, raids on licensees or importers for cases from

complaints or information received

1.6.2

Compliance Management Division Client Charters

The division or department client charter are to take action within 24 hours on
information and complaints received and to return all document taken within 14 days
from the date of completion of the audit for cases not involving claims and legal actions.
This client charter will be the employees reference and bases in performing their duty.
Besides that, client charter was also made to ensure that all customs officer will
perform their duty in standard performance.

CHAPTER 2
10

SCHEDULE OF PRACTICAL TRAINING

2.0

Introduction

This chapter provides a summary of the daily training extracted from the Log book and the
description of job or task executed throughout training.
2.1

Task and activities

During practical training, practical student was given opportunity to do and learn on some of
customs activity and task. Some of the tasks are quite critical and important in the department
as it was the department main duty and task. The tasks are filing, counting tax, admin task,
company payment schedule and handle, attending and participating customs programs.
Table below shows the main task and duty of the practical student.
TASK
Filing
system

and

ACTIVITIES
storage Filing is required by customs towards its officers as they deals
with company to pay tax. Hence, all document, letters and
application or forms made by the company to Customs
Department should be keep and filed in one document. This
file will make ease to customs or the company if they want to
retrieve or refers back on payment progress or as prove if
court action was taken.
In order to filing, practical student have to learn about printing
letters, memo, photostat the copy of letters or forms, type of
file, tagging, filing system, storage and store update. In
11

customs, filing was done systematically to help customs

officers easy to retrieve and differentiate one document or file
with another without risking of losing even one piece of
document from the file.
Practical student also have learned on file tagging and was
have opportunity to tag some files. It used to help to
differentiate the files and classified the files according to its
type and use. After that, the documents, forms and
application now able to be compiled to one file. The tag or file
name could be print by using some special printers to help it
be done easily. When the file has been done, it needs to be
kept in correct place that are easy to put and take. Usually, all
files will be stored in file store. It is similar with a file banks
where all type of files and document will be save and kept
there

according

to

types,

specific

arrangement

and

accordance.
The systematic file store able to make the file and document
easy to be retrieved by any officers. Hence, in order to ensure
the document are not loss and easy to track where the file is ,
the computer might be a good help to record on who retrieve
or use and take the file from the file storage. However, log
book also may be used to record the retrieving activities. It
should record, on whom is the retriever, time, which
department did the staff will bring the file and date of retrieval.
12

After that, time and date of file returned also should be

recorded. Hence, if there is problem regarding the file or
document, the management knows where to find the
responsible person.
Besides of file storage, inventory storage should be there in
department to help management system. Inventory store
usually filled with books, goodies bag, stationaries and other
things. All of these things usually will be used to help
departments management unit to handle event, task, and
other management duty. For example, the goodies bag will be
given to participant during event held and stationeries will be
used to help officers or staff to perform their duty such as
writing and drawing flow chart and else. As file storage,
inventory store also need to be kept systematically. This is
due to help the officers easy to take and use the inventories
and able to arrange all inventory according to type and
functions.
Both store need to be updated and keep in good manner or
systematically as it will help the officers in future and updated
storage enable to help the officers to get the latest file and
ensure that inventory are still able to be use.
COUNTING TAX

Taxation is the main business of customs. Hence, it could be

stated as customs core nature of businesses. Customs
Compliance Management Department main business is to
13

ensure that all company that have been noticed to pay the
tax. When the taxpayer or company has owe to customs, the
compliance management department will chase them and
ABT unit under them will give opportunity whether to settle
the tax directly or by instalment.
Practical student also have learnt on how instalment payment
of tax could be counted. Firstly, there are four tax statements
that should be prepared which are instalment statement,
payment statement, quarter year statement and yearly tax
statement. All of these statements play different roles and
functions. However, it has the same objectives which is to
record all payment made by the business company and count
the tax owed by business company in the whole states. The
tax accounting was helped by the computer and Microsoft
Excel software that help to ease the counting process.
Besides that, the software also help to minimize the error in
accounting and it help the accounting system or statement to
be in a formatted ways. Hence, the statement was in standard
form and easy to be understand.
All of these tax statements need to be updated whenever any
business company pay the tax. This is to ensure the
statement and company payment progress are really in track
and not miss to record any payment made. In the other
hands, the statement also should be counted very particularly
14

since it deals with money especially it was publics money

and income of the government.
To ensure all statement is balance, balancing should be made
every time there is updated made result from payment made
by the business company.

At the end of the month, all

statement or the account should be closed and counted the

total for that particular month. At the end of the year, the
whole year report on payment progress had to be made and
be presented in front of head of department and submitted to
headquarters.
ADMINISTRATIVES

Besides of accounting, practical student have also learnt and

TASK

get the opportunity to do administrative task. In Royal

Malaysian Customs Department, practical student or trainee
could learn on how they communicate with each other.
Commonly,

they

used

announcement

to

spread

the

information. However, regarding to formal task or orders,

usually they used memos or letter that are made by
administrative staff in the department to be sent to the other
department or staff. I had the opportunity to send those
memos to the staffs or to the other departments.
Besides that, administrative task in every department also
deals with the human resource matter that comes from main
administrative department. All new staffs whether contract or
permanent officer has to report to admin unit of the
15

department that they had been placed. Similar to Compliance

Management Department, the administrative unit will handle
those new staff and brought them to meet the head of
department. Head of department will place them according to
unit that require staffs. Besides that, this administrative unit
also is the one who report to head of department, training
department and human resource department regarding the
insufficient staff in their department.
Administrative unit also need to make a yearly report
regarding the progress and the achievement

of the

department. The report includes how many cases of tax

payment solved and all activities made by the department.
This report should be made in order to monitor the
productivity

of

the

officers

from

time

to

time.

The

administrative unit also deals with all other administrative task

in the department including managing the department
direction, strategic planning and updating the staffs regarding
the information spread by top management.
COMPANY PAYMENT

Company

payment

schedule

usually

applied

by

the

SCHEDULE

customers or the business company that required to pay tax

and they ask to pay in instalments. The maximum instalment
period was 5 years. However, the customs will analysed the
tax owed amount and decided on how long the period of the
instalments will be.

16

The company payment schedule also will be determined by

customs and notice the organization to pay the tax monthly
according to specific date given. Hence, the organization had
to pay it on time. The delayed payment will be sent a warning
letters and notice will be again sent to ensure them pay on
time. This was a good system made by the customs since
most of the organization paid as scheduled.
Besides that, the schedule will be appears on the customs
computer system. Eventhough the customer had to get
payment approval from ABT Unit, they could pay the tax at
payment counter. When the organization pay at the counter,
the system will update their payment and it including the date
of the payment. Therefore, customs officers are able to check
whether the organization pays on schedule and with the right
amount or not.
The computer system really helps the customs to performed
their duty as it made easy for officers to update and check
whether the customers follows all requirements or not and
decision to take action could be made according to the
system.
HANDLING,

Royal Malaysian Customs Department also have organized

ATTENDING

AND many event and functions. For example, they had organized

PARTICIPATING

Outreach Program which is to appreciate customers. Here,

CUSTOMS

practical student had the opportunity to help the customs

17

PROGRAMS

officers to handle the event and make the preparation of the

events. This outreach program was made to make the
customer

more

understand

the

function

of

Customs

Department to closer their relationship. This will help the

customer really understand on why they have to pay tax.
Besides that, customs also had special occasion known as
Perhimpunan Setia to give the appreciation to officers that
has good performance in their duty. This is also one of the
efforts of the Customs Department to motivate and encourage
the officers to perform well and put their effort to do better
from time to time.
Royal Malaysian Customs Department (RMCD) also had
created an event to ensure all customs officers performed
their duty with faith and in good manners. The program was
called as Program Nilai-Nilai Murni which is to respect and
understanding the meaning of Al-Quran and Yassin and
applied it to customs ways of performing duty. This program
also gives advice on how actually the best way of customs
could perform their duty.
Table 2.1: Main task and duty performed by practical trainee

18

CHAPTER 3
ANALYSIS

3.0

Introduction

This chapter emphasizes on two area of task that has been executed during the Practical
Training period. It shows on what have student experienced during their internship training by
emphasizing practical and theoretical aspect on how student relates all concepts learned in

19

classroom at the work place and how student gained knowledge at the workplace and viewed
it as one of the theory they have learned.
3.1

Human Resource Management

According to Mondy and Noe (2009), Human Resource Management (HRM) at it beginning is
a field that evolved a great deal about clerical operation concerned with payroll, employees
records, and arranging community visits. However, due to globalization HRM had becomes
more important since it had to deal with costs, planning and the implications of various HR
strategies for both organizations and their employees such as obtaining and developing
qualified employees for organizational purposes. It means that HRM is an important
department since it plays very crucial roles in organization and they are like the backbones of
the organization which always planning and monitoring the organizational progress in term of
organizational and employees development.
Human resource management (HRM) could be stated as a system, management, policy and
practices that can influence individuals that work in an organization. It was supported by Snell
and Bohlander (2010) which stated that HRM is a process of managing human talents to
achieve an organizations objectives. According to Normala (2006), HRM covers the aspects
like staffing, training and development, performance appraisal compensation management,
safety and health and industrial relations.

She also mentioned that Human Resource

Management is refers to a distinctive approach to employment management which seeks to

obtain competitive advantage through the deployment of a highly committed and skilled
workforce, using a selection of techniques.
Conception of HRM is not the alternative to personnel management but as more precise form
of personnel management which stressed out on the strategic issues of employee
commitment, flexibility, quality and integration. In addition, according to Flippo (n.d.), human
20

resource management is the planning, organizing, directing and controlling of the procurement,
development, resources to the end that individual and societal objectives are accomplished.
This definition reveals that human resource (HR) management is that aspect of management,
which deals with the planning, organizing, directing and controlling the personnel functions of
the organizations.
3.1.1

Recruitment

Recruitment or placement is the starting point of an organizations overall employment

policy. It covers on hiring new talent and reassigning serving staff, including those on
inter-agency transfer, contract workers or loan.

According to Margaret (n.d.),

recruitment can be defined as the set of activities and processes used to legally obtain
a sufficient number of qualified people at the right place and time so that the people
and the organization can select each other in their own best short and long term
interests.
Recruitment also can be defined as a process of locating, identifying and attracting
applicants that are capable and interested in filling job vacancies. In addition to locating
potential jobholders, it serves to screen inappropriate candidates (Gordon, 1986).
According to Mondy & Noe (2009), they defined recruitment as the process of attracting
individuals on a timely basis, in sufficient numbers and with appropriate qualifications,
and encouraging them to apply for jobs with an organization.
Hence, it could be state that recruitment is the process of identifying the potential
employees, stimulating and encouraging them to apply for a particular job or jobs in
organization. According to Snell and Bohlander (2010), there are two types of
recruitment that could be used as the basis of recruitment process namely internal
recruitment and external recruitment.
21

3.1.1.1 Internal recruitment

Internal recruitment is locating and encouraging internal potential applicants to apply for
existing or future job openings (Mondy and Noe, 2009). It means that the internal
recruitment is a process whereby the qualified job candidates are being search
internally or within the organization itself. This condition also could also be stated as
one way of promotion made by the organization. Internal candidates who are suitable
can be detected through among other methods such as the human resource
information system and job posting and bidding (Snell and Bohlander, 2010). In simple
words, internal recruitment could be said as a condition whereby the particular post
offered is filled up by the existence staff in the organization.

3.1.1.2 Internal recruitment methods

According to Mondy and Noe (2009), there are few methods available to conduct the
internal recruitment such as job posting and job bidding, succession planning,
promotion, employees referral, transfer, and human resource information system
(HRIS). Job posting and job bidding means the job vacancies are posted and informed
by the organization to all of the employees in the organization through some
communication channel. The organization usually posted it by email, internal circular,
bulletin boards and special handouts. The job posting also will be provided together
with the job requirement and contact persons. Since then, the employees who believe
they meet the requirements can apply.

22

Succession planning is the process done by the top management to ensure sufficient
and suitable supplies of successor are available for current and future senior or key
jobs (Mondy and Noe, 2009). It means that the organization had already identified the
future candidates to replace the job position. For example is the vice president is the
candidates to be the next president of the organization. This process usually was used
by organizational from the top management position until the low bottom level.
Promotion is a recruitment which involves movement of employees from the lower level
of position to a higher level of position with changes in duties, responsibilities, status
and value. This kind of method of recruitment usually identifies the candidate talents
through performance appraisal. Besides promotion, employees referral was also being
used by organization for internal recruitment. Employees referral means the
recruitment are made based on recommendation made by the current employees
regarding the potential job applicants through words of mouth. It means the
organization are using the applicants members, family and else to ask for the
suggestion about the candidates.
Internal recruitment through transfer usually is done by relocating the employees with
the similar job duties and responsibilities. Meaning to that, transfer is a cross
movement of employees within the same grade from one job to another. Transfer leads
to the changes of duties and responsibilities within its new environment. However, it is
not necessarily changes in term of salary.
Human Resources Information System (HRIS) is up-to-date system of personnel
records where HR manager cold check and trace the employees file in order to identify
the potential and suitable candidates when there is a job vacancy.
3.1.1.3 External Recruitment
23

External recruitment is a process whereby the candidate to fill in the job vacancies
comes from outside the organization (Mondy and Noe, 2009). This type of recruitment
is the organizational effort to look beyond its own borders to find employees particularly
when expanding its workforce. In simple words, if the recruitment is from outside of the
organization, then it is referred as external recruitment. There are many method of
external recruitment used by the organization. Some of them are advertisement, job
fairs, internet recruiting, and internship programs.
Advertisement could be said as the most common method used by the organization to
inform about their job vacancies. According to Snell and Bohlander (2010), the
advertisement channel that often used by the organization is radio, television,
newspaper, industry publication and emails. Normally, the types of advertisement being
used are depending on the types of job vacancies need to be filled with.
Internet recruiting is a method that being conducted through online system. By using
this kind of method, the applicants had to submit their resume through a variety of
websites and potential employers can check for qualified applicants. In term of job fairs,
the organization had to open for interview booth or counter to attract large number of
candidates. In Malaysia, there is a large event of job fairs that usually made by many
organization at the same time and place.
Internship program or in the other words is practical training is a program that placing
practical training students in temporary jobs with no obligation either by the firms or the
organization to hire the students permanently or by the students to accept a permanent
position with the firm after graduation.
3.1.2 Recruitment Process

24

Recruitment process requires a systematic procedure from sourcing the possible

candidates to arranging and conducting the interviews and requires many resources
and time. According to Durai (2010), the recruitment is concerned with the procedure
for identification and the classification of the potential source of human resources
supply and effectively utilizing those sources.
The hiring process includes recruiting, processing, eliminating, and selecting. It means
that it involving the posting a job advertisement in an appropriate place, evaluating the
information provided on each job application, screening candidates to determine which
ones to interview, verifying references and information, conducting personal interviews,
and deciding who will be offered the job (Whitford et. al., n.d.).
The following figure summarizes the process that might involve in recruiting the new
employees.

Posting job
advertisement

Evaluating
information of the
candidates

Screening candidates
for interview

Verifying references
and information

Conduct personal
interview

25

Select the best

candidate for the job
vacancy

Figure 3.1: The Recruitment Process

Source: Adopted from Mondy and Noe (2009)
The key to have a successful recruitment is by ensuring that the criteria of suitability are
relevant to the job itself. Once these criteria are agreed and shared or meets, it is
possible to make more rational decisions about someone's suitable for a job. Effective
recruitment and selection should not be about the luck. Systematic planning and
preparation will increase the likelihood of taking on the right person. The key to effective
recruitment is preparation by knowing the job and what is required of someone to
perform it well. The costs of recruiting the wrong person can be significant. The cost of
employing someone may be at least twice their salary when factors such as training,
expenses and employer's contributions to their pension are added (Mondy and Noe,
2009).
In Royal Malaysian Custom Department (RMCD), the applicant must first apply the job
from Suruhanjaya Perkhidmatan Awam Malaysia (SPA) since SPA is the main
government sector Human Resources Department. If they accepted to be the job
candidates, then the applicant should follow the physical and general knowledge test,
and interview. After that, they should wait for the answer and called by the RMCD to
26

proceed with next recruitment process which is the RMCD training and recruitment. If
they succeed the training they will be called for report to customs department.
The training process had to be faced by the candidates was a three month training in
AKMAL which is short name for Akademi Kastam Malaysia. There, the candidates will
be train physically and they will also be provided with course and module about
customs. The physical training was made due to ensure that the candidate will be ready
for rough and hardness duty and task when they are accepted by RMCD. Besides that,
it was also been made for the purposed of discipline. The candidate will be trained to
be discipline by marching training and shooting lesson and army-based training. The
module and courses that being provided in AKMAL were made in order make clear on
the duty of customs officer and the function of RMCD. Once they had passed the
training they will be calling and report for duty to customs. They will also be faces with
one more exams at the RMCD they are reported in which will made them as confirm
employees or not.
3.1.2.1 Interview
The interview is an opportunity for organization and a prospective employee to learn
more about each other. It is due to it allows the organization to go over information
disclosed on the application and to ask questions and assess the applicants
personality, character, verbal skills, and ability to reason through tough questions. The
personal interview allows you to get a feel for the person, which is impossible by simply
reading an employment application (Whitford et. al., n.d.). Besides that, interview is the
most common and core method of both obtaining information from job-seekers, and
decision-making on their suitability or otherwise.

27

In RMCD, the interview will be handled by SPA completely which enables the job
applicants to be the candidates of the jobs. However, the interview will be handled by
SPA and some involvement by the presence of customs officers. This is because the
officer authorized had better knowledge, experience and information on the job offered
and the function of the organization. Hence, the customs officers will join the interview
in order to choose the best applicants to be the candidates and ensuring that the
candidates are competence and capable to do the duty if they pass that interview and
the training that will be provided later. It means that, the interview purposed is to
choose the right person to the right job. Hence, the new employees able to do their
work well with high motivation.

3.1.2.2 Selection
Selection of suitable candidates is very important to ensure the success of an
organization. According to Snell and Bohlander (2010), selection is the process of
selecting the most eligible candidates from the pole of applicants during the recruitment
process. In the other words, selection is the process of choosing people by obtaining
and assessing information about the applicants (age, qualification, experience and
qualities) with a view of matching these with the job requirements and picking up the
most suitable candidates. The choices are made by elimination of the unsuitable at
successive stages of the selection process.
Mondy and Noe (2009) review selection as the process of choosing from a group of
applicants those individuals best suited for a particular position and organization.
28

According to Snell and Bohlander (2011), selection is the process of choosing

individuals who have relevant qualifications to fill existing or job vacancies.
Selection is very important in recruitment process since it is the stage where the
candidate will be chosen to be accepted or not. The first importance is to ensure the
only right person is selected to be hired to work with the organization. By having the
right person to the right job, it will make the employees have the courage and high
motivation to do their work and this indirectly will increase the production of the
organization (Snell and Bohlander, 2010). Some other importance of selection has
been mentioned is to avoid any legal implications due to negligence and to ensure the
competitive advantages in the organization.
In RMCD, they will choose the candidates that pass the internal training stage which
will always be held at their training academy known as AKMAL (Akademi Kastam
Malaysia) that placed in Melaka. Usually, AKMAL produces numbers of proactive and
productive candidates every year to fill the job vacancies in the RMCD.
3.1.2.3 Advertise the job vacancy
In order to attract the applicants to apply for the job vacancies, it needs to be
advertised. Advertisement also was important in order to inform the applicants on the
job requirement and the contact persons for further inquiries. Advertisement could be
made through several channels such as radio, newspaper, television, industry
publication and email.
If there is any vacancy exists in the RMCD, HR Department of each station will report
to headquarters and be advertising in the SPA websites. SPA is the best mediums
which it is the main public sectors human resources department. Besides that, the
29

Human Resource also used the medium of media such as newspapers for the clerks
and any other than officer and higher positions.

3.2

Organizational Behavior

According to McShane and Von Glinow (2010), Organizational Behavior (OB) is the study of
what people think, feel, and do in and around organizations. The purpose of studying the
Organizational Behavior in organization is to helps manager to look at the behavior of the
individuals within an organizations and interpersonal relations (Newstrom, 2011).
Besides that, according to McShane and Von Glinow, (2010) organizations means groups of
people who work interpedently toward some purpose. However, an organizational behavior
also was used to figure out on why organizational events happen and improves the ability to
work with people and influence organizational events. Meaning to that, it could also explain on
how should the employer and employees communicate and how to deal with their customers.
In organizational behavior there also have several types of behavior (McShane and Von
Glinow, 2010). Individuals behavior means how every individual control their behavior and
performing act in the organizations. When individuals behavior was interact to the
environment, it will create five work-related behaviors. This behavior has become a part of the
organizational behavior. Those type of work-related behavior was discussed often in
organizational behavior and they was task performance, organizational citizenship, counter
productive work behavior, joining or staying with the organization and maintaining work
attendance. In order to achieve the target of the organization, these behaviors that occur in the
organization had to be controlled by four elements of organizational management which are
planning, organizing, leadership, and controlling. However, the most importance of behavior
30

that the organizational had to deal and give more focus to is the task performance since the
employees were employed to perform duty and do their task.
3.2.1

Task Performance

Task performance means a goal directed activities that are under that individuals
control. Meaning to that, every individual has their responsibility to control the tasks that
support organizational objectives. Task performance is very important aspect in work
behavior. This is because from their performance we can know either they achieve the
target of the organizational or not. However, task performance also means transforming
raw materials into goods and services or support and maintain the technical activities
(McSHane and Von Glinow, 2010). It means that the organization may be able to learn
and monitor the behavior of the employees by their contribution in producing the output
or performing their task.
According to Rotundo& Sackett, (2002) they recognized that the task performance is
synonyms with the job performance. This shows on how the individual perform their
duty in order to achieve organizations objectives. By having this task performance or
job performance, director or manager of the organization can understand how their
employees behavior in performing the task either in positive way or negative way.
Different organization has different task performance. For example in RMCD, their task
performance is measured and viewed by Key Performance Indicator (KPI) which has to
be achieved by the customs officers. They have to achieve it by producing files or
report on targeted settled problems or cases regarding taxes or their duty.
Every customs officers will be given certain targets to be achieved. Their targets will be
difference according to their position. In RMCD at the Compliance Unit, the officers had
to enforce and compel the taxpayer to pay the tax according to time and schedule.
31

Hence, the compliance officers duty was to compel those taxpayers that not pay in
time. Hence, the officers had to settle the case by compelling the taxpayer. If the
targeted cases to be solve by one officer is 10 in a year, then the performance of the
officers will be review by the total number of cases solved by the officer. If the number
of cases solved achieved to 10 or exceeds, then the officers will be regards as having a
high performance.
Hence, it can say that everyone or every individual in the organization have their own
task performance to control and support the organizations objectives. In order to
identify the task performance of the individual, most organizations do the job evaluation
(McShane and Glinow, 2010). Moreover, performance evaluation also can identify the
motivation level of an individual in the organization to perform the job.

3.2.1.1 Performance Evaluation

According to McShane (2010), performance evaluation can be defined as constructive
process to acknowledge the performance of a non-probationary career employee. This
evaluation must be sufficiently specific to inform and guide the performance according
with his or her duties. Performance evaluation or appraisal must be conducted in the
organization once a year. The performance evaluation had to be done once a year as
to gives the employee time and chances for them to prove their performance. Besides
that, one year also would be the best time space to make performance evaluation
because it will provide the employees to create good records and performance as they
could not be evaluated only based on one task and project handled. According to
Thomas S. Clausen, Keith T. Jones, and Jay S. Rich (2009), the process of

32

performance evaluation may take considerable time and required some information in
order to prepare the explanation of their performance.
Some of organization may take process very seriously but some organization takes it
as a burden. This is because they need to get the information and data to evaluate the
performance. So the relationship between supervisor and subordinate of the
organization must be strong in order to have a good communication and no
misunderstanding happen. Besides that, the other important of the performance
evaluation is a trust between two parties which are employees and the supervisors.
An effective system evaluating performance is should outline the employees
responsibilities and contribution to the organizations, motivate employees and provide
valid input of the personnel. That is why the most organization did an evaluation once a
year. This is to make sure they had enough input and achieve their target along the
year. The one aspect that important in performance evaluation is by providing
performance feedback (Thomas S. Clausen, Keith T. Jones, and Jay S. Rich, 2009).
The feedback of employees performance must be interrelated with the employer
expectations. Meaning that, employees complete the task within the period of the time.
They control the organization goals and meet the customers requirement. In order to
fulfill the customers requirement, they must perform their duty in effective way.
The quality of work must be considered in the performance evaluation. Without the
quality of work, the performance might be poor and cannot achieve the target of the
organization. Other than that, when it has quality of performance the long term
relationship with other organization can be maintain for example. A good feedback from
the customer also contributes to the performance evaluation. Thrust also can build by
having performance evaluation. This is because the organization thrust their employees
33

to manage and perform the task. So, the organization and employees have thrust to
each other.
3.2.1.2 Employees Evaluation
According to Snell and Bohlander (2010), employees evaluation refers to a process
where manager or supervisor evaluates the performance of their employees. After the
process of evaluation, employer will use the results to make the promotion, layoffs and
admission to special training programs toward their employees.
There are advantages and disadvantages of having employees evaluation in the
organization. McShane and Von Glinow (2010) indicate that administering the
employees evaluation helps relationship between employer and employees. This is
because the employer will communicate with their employees in order to evaluate their
performance. By having this type of evaluation, the employees have their responsibility
to improve their skills or performance. Thus, it enhances them to have promotion,
increase in salary or reward by their employer.
However, employees evaluation also has their disadvantages. It requires skill and
practice in order to write an employees evaluation. As a result, some supervisors are
not effective doing their evaluation. This is because they do not undergo training in
employees evaluation. So, their employees will not improve their skills and
performance. Other than that, employers do not have the facts about their employees
and they do not know about their employees behavior. This will lead to biased and
unfair towards other employees.
3.2.2

The Implementation of the Performance Appraisal

34

The purpose of implement this performance appraisal or performance evaluation in the

RMCD is to find the most suitable posting and career field according to the potential,
specialty and career development. So, by having this purpose, it encourages the officer
or staffs in the RMCD to be more motivated in doing their task. However, the officer will
develop their career according to their task that given by the organization. For example,
in the RMCD the best employees of every department will be honored by given the
certificate of appreciation and appreciated during the Perhimpunan Setia which all
employees who have good performance will be appreciated.
The best employees will be decided based on their motivation of work and performance
while performing their duty. The evaluators are usually is their supervisor. Hence, the
right person will be decided hence the supervisors which usually consist of two
superiors. Perhimpunan Setia will be held yearly. This will motivate the officers to do
better from day to day. It also shows that RMCD was practice the suggested effective
performance evaluation process by McShane and Von Glinow (2010) which stressed
out to make it once a year.
Moreover, there would be the main principle in conducting this implementation of the
performance appraisal. The RMCD had done some principle according to this
implementation of performance appraisal report. There are, to be fair and transparent
implementation of performance assessment. This is to show that RMCD are doing
fairness among their officers. Instead of fairness is one of the principles in the
implementation, the quality of work and behavior also play the main role in assessing
the officer. Behaviors of the officer are one of the important aspects. This is to show
how they treat and handle the customers problem. This is an effort on how to achieve
or gain the customers satisfactions.

35

In conclusion, RMCD are implemented these performance appraisal or evaluation

report is to make sure they achieve all the objectives and also their mission and vision.
It is also shows that RMCD has the best officer who is can perform their task in
effective and efficient. It also relates to the human resource matter which recruiting the
right employees will enable them to be motivated towards their duty and job. Hence,
they will perform their job well. Internship student have the opportunity to learn on these
area of practices during practical period and relates them to what have they learn on
their lectures at the universities.

CHAPTER 4
RECOMMENDATIONS

4.0 Introduction
This chapter discusses and focuses on the strength and weaknesses of the organization
during training. Following the illustration of weaknesses throughout the internship period, the
trainee discussion will provide some recommendations for improvement. In short, the
discussion of this chapter concern mainly on organizations strength and weaknesses
throughout the training period followed by some suggestion to overcome it.
4.1 Strength
36

Capital, knowledge, skill, or other advantage that a firm has or can acquire over its competitors
in meeting the needs of its customers (Business Dictionary, n.d). Strengths can be either
tangible or intangible qualities such as expertise, traits and qualities our employees possess as
an individually and also as a team. There are several of strengths that can be highlighted in
this chapter when handling the tasks assigned to the trainee during the internship at Royal
Malaysian Customs Department (RMCD). The strength is effectives recruitment, effective
performance evaluation and strong organizational motivation support.
4.1.1

Effective Recruitment

RMCD had implemented effective recruitment method. The organization had followed
the effective recruitment methodology suggested by Mondy and Noe (2009). Hence,
RMCD could select and hire the most excellent worker and it makes RMCD to be one
of the proactive agencies in Malaysia.
4.1.1.1 Internal and external recruitment
Recruitment could be stated as a process of locating potential individuals who wanted
and might join into an organization. Besides that, recruitment also will encourage those
individuals to apply for the existing vacancy or anticipated job opening. In the
recruitment process, the organization will put their effort to inform the applicants about
the qualification requirements in performing job, as well as job opportunities that are
offered by an organization to its workforce. According to Mondy and Noe (2009),
recruitment is a process of attracting individuals on timely basis, in sufficient numbers
and with appropriate qualifications, and encouraging them to apply for jobs with an
organization.

37

Royal Malaysian Customs Department (RMCD) has many employees. All of them had
entered and recruited by the agency through the recruitment processes required by
them and SPA. RMCD has the effectives recruitment process which is very systematic
and in sequent arranged. Even though it recruitment process involves with Suruhanjaya
Perkhidmatan Awam (SPA) process of recruitment, RMCD recruitment process had
been an effective recruitment since they has their own procedure and training institute
(AKMAL) that trained the candidate before recruited into RMCD. Therefore, the institute
will produce the best candidate for being RMCD employees. The RMCD then will
provide them with exam. Only employees that passed the exam will be hired as
permanent employees. Hence, the only qualified employees will be permanently hired
by the customs.
In term of this external recruitment, the highest position they can fill is as an
enforcement officers. Meaning to that, only certain position will be used the external
recruitment by RMCD. It means that, the top level position will be used other
recruitment method such as transfer and internal recruitment. This will make the
customs agency to have strong and calibre leaders as the higher position were filled by
experienced and qualified employees.
Internal recruitment is one of the RMCD efforts on to avoid turnover and to save cost of
training. This is due to the RMCD were used transfer and promotion method of internal
recruitment as to motivate the employees. The agency also used this method to ensure
the career development of their employees can be made. Hence, it will make the
employees feel very motivated to perform their job as they felt that they are being
appreciated by the organization. This was also made the organization enable to reduce
the rate employee turnover.
4.1.1.2 Recruitment channels
38

According to CIPD (2006) the key recruitment channels used to attract applicants was
includes advertisements in local newspapers, recruitment agencies or search firms,
corporate websites, specialist journals, encouraging speculative applications, employee
referral schemes, and national newspaper advertisements.
In RMCD, every branch of the agency will report to their human resource department
and to be reported to headquarters about the insufficient staff or job vacancy. Then, the
headquarters will ask for the Malaysian public service biggest Human Resource
Department which is SPA to publish it. This method and process were successful due
to the Customs Department have many applied candidate for every job vacancies they
published. By having this effective recruitment channel, RMCD also had large
opportunity and chances to hire and select the best and very qualified candidates to fill
the job vacancies.
4.1.2

Effective performance appraisal

Performance appraisal is the process of assessing on the performance of the

employees in doing their job. Meaning to that, it is a process of evaluating on how well
employees in performing their jobs. Performance appraisal plays many important roles
in the organizational matter such as employees career planning and making promotion
decisions. According to Snell and Bohlander (2010), the main purposes of performance
appraisal are for administrative and employee developmental purposes.
As for RMCD developmental purposes, they use performance appraisal for identifying
individual strengths and weaknesses, identifying the training needs and motivational
purposes. By knowing the individuals strength and weaknesses, the organization might
be able to know what kind of training supposed to be made for the employees in order
to retain their employees motivation and competencies. Besides that, the effectiveness
39

of performance appraisal system in customs had made the evaluation could be made
fairly and justice. This will make the employees willing to accept the evaluation made.
Hence, the appreciation and rewards could be given to the right and only qualified
employees. Besides that, the employee with low rate also will enable to know their
weaknesses and could increase their effort to achieve the standard performance.
As for administrative purposes, the performance appraisal could be used for determine
promotion, personnel planning, rewards and benefits and also initiating fair disciplinary
proceedings. It means that, the performance records of the employees will be refers as
to promote if they were good and disciplinary action such as warning and advice will be
given if they were bad.
This performance appraisal in RMCD was being effective as they fulfil the criteria of
evaluation which is quantity and quality of work, knowledge of the job, commitment,
involvement personal qualities and else. Hence, the evaluation will be really views of
the individuals performance whether they deserve good or bad rating. Besides that, in
RMCD, they practices one type of performance appraisals which is manager or
supervisor appraisal. Since the supervisors work directly with their subordinates,
therefore, they are logical choice to appraise the performance of the employees.
Performance of an employee is evaluated by their superior and often by supervisor one
level higher. It is because the supervisors, can used the employees work records and
the direct observation of employees to complete the appraisal review. Usually, in RMCD
the supervisors that evaluated every subordinate will be two persons. Hence, this could
avoid the appraisal from being discriminate and bias or unfair.
4.1.3

Strong Organizational Motivation Support

40

The motivation is very crucial in any organization. No matter whether it is small or large
scale organization, the term motivation has to be applied. Motivation can be simply
define as a step or measure taken by any organization to develop a desire of the
employees to push their performance to the optimum level.
In RMCD, both type of motivation is there. The motivation comes in many way and the
personnel love it. Through my observation, RMCD had implement employee of the year
motivational method. Employee of the year will usually being done at the end of the
year. All the staff and officer will gather at RMCD ballroom for the Perhimpunan Setia
event which is organized to give the appreciation certificates and some rewards to the
officers. Each of the department will have their own employee of the year. Performance
evaluation is the methodology use to identify the best staff or officer of every
department that usually will be conducted once a year. The one with the highest rate of
evaluation will be choose as the employee of the year.
As been mention above, motivation is very crucial, the mechanisms used by the RMCD
are able to enhance the ability of their own staff and officer. The strong commitment
had been shown by all the personnel to ensure the organization is at their best track. It
is due to the employees with high rate of evaluation will felt that their effort in
performing their duty was being appreciate and acknowledged. For the employees with
low rate of performance, they will be motivated by putting more effort in order to
compete with other to be the employees of the year. Hence, the organization could
retain their competitive advantage as their employees have high motivation to perform
their duties.

4.2 Weaknesses
41

Weaknesses are the factors which do not meet the standards we feel we should meet.
Weaknesses are the qualities that prevent us from accomplishing our mission and achieving
our full potential and weaknesses deteriorate influences on our success and growth. There are
several of weaknesses that can be highlighted in this chapter the trainee are doing they
practical and observation during the internship at Royal Malaysia Customs Department.
4.2.1

Weak Career Development

Career is a general course that a person chooses to pursue throughout his or her
working life (Mondy and Noe, 2009). Meanwhile, Mathis and Jackson (2004) claimed
that career is the series of work related positions a person occupies through-out life.
Therefore, it could be said that, career is a series of work related positions; paid or
unpaid that help a person grow in job skills, success and fulfilment.
However, in RMCD, they have lack to fill the career development objectives which is
developing the available talents. It is not the RMCD provide no development. But, the
opportunity of the development is lacking. It is due to the RMCD does provide only few
good career path. Meaning to that, the employees chances to get promoted is less due
to the position above their current position is less and only a few and the candidates is
too many. Hence, their opportunity and chances of being promoted is few. For example
is the position of State Director of Customs is only few and the candidates that have
potentials to be promoted to that position is too many.
4.2.2

Long recruitment process

The recruitment process in public sectors nowadays will be handled by SPA. It makes
the recruitment process of the public agency will turn to be long. For examples,
customs had training process which required three month before the selection process
will be conducted. Other than that, SPA also had required the applicants to follow the
42

physical test even though Customs Department had required the candidate with armybased training. It makes it redundancy in term of recruitment process and it makes the
process to be long and wasted of cost and time.

4.3

Recommendations

Despite strength that organization possessed, there are few weaknesses which are believed
can serve as obstacle of organization to become good employers and achieving good
performance. Due to it reason, some ways to overcome it is very important. Hence, there are
few recommendations can be made in overcome this problem in order to continue the
improvement of the organizations performance as the employers and its administration.
4.3.1

Improving career development

As the career development could fulfil the needs of achievement of the employees it is
very important for the organization to deals with. Hence, RMCD should provide more
career development towards their employees. To deals with it, the top management
had to works together with Human Resource department to design and implement a
career development system that helps employees excel in their career. Besides that,
the organization also might create programs that explain the career path of the
employees. So that the employees will understand their chances and able to plan and
know what chances they have got.
RMCDs Human Resource Department might draw career development system which
will continuously develop their employees. For example, RMCD could promote the
internal employees without transferring other employees from other branches. It is

43

because RMCD usually will promote employees from other branches if there are job
vacancies in the local branch.
In the other hand, RMCD also could twist the career development into something that
still meaningful to the employees. For examples is the agency could raise the salary of
the employees after a certain period their career path are not moving even though their
position is still at the same level. This might help the employees feels like their career
is still having an improvement.

4.3.2

Alternatives to long process of recruitment

As the alternative to long process of recruitment, RMCD could asked for SPA from
excluding the physical test to whom applied for RMCD job vacancies. It will ensure the
process of selection could be made quickly. Besides that, customs also could make the
training at AKMAL to required lessen time which from three month to one or two month
and replaced the period to be the training of customs officer from time to time even they
are working for RMCD.
Besides that, Customs also could hire practical trainee which having high rate of
performance evaluation while performing their practical. It is due to the practical student
has the experiences and some knowledge about RMCD function and scope of duty. So,
they could be hired as it they are also qualified and RMCD could reduce the period of
training since they was once for the organization.
As a conclusion, those strengths and weaknesses of the trainee highlighted in this
chapter are very important. Therefore, the recommendations suggested to overcome
44

weaknesses of the organization should be taken by RMCD in order to improve their

performance as well as maintaining employees good perception and motivation and
recruiting the best employees in short period of time.

CHAPTER 5
CONCLUSION

5.0

Conclusion

This chapter summarizes the discussion of each chapter in the report by highlighting
the main points. It shall provide the summary of training experience especially in
Chapter One and Two, the analysis on specific task in Chapter Three and evaluation of
trainee strength and weaknesses throughout the training in Chapter Four.
In Chapter One, there was a highlighted background information and history of
establishment of Royal Malaysian Custom Department (RMCD). Besides that, vision,
mission, objective and the organization chart of the organization was also being
identified in that chapter. In addition, chapter one also defines the nature of business
45

that has been performed by RMCD. RMCD was contributed towards Malaysian
economic growth, maintaining local security and maintaining public prosperity. Due to
that, RMCD has played their roles well. Firstly, RMCD is collecting national income.
RMCD collect national income in term of taxation and custom duty which consist of
import duty, export duty, excise duty, sales tax, services tax and transportation levy.
On the other hands, RMCD also help to facilitating the trade and industrial sector.
RMCD had play their role in facilitating the sector in term of incentive and facilities
towards the sectors for the purpose of stimulating national economy as par to the
change of government policies which given priority to industrial sector.
RMCD also functioned to ensure the law compliances. RMCD was given mandate to
enforce the law under the Custom Act 1967, Sales Tax Act 1972, Services Tax Act
1975, Excise Act 1976, Free Zone Act 1990 and also subsidiaries law that are related
with those acts. It is the responsibilities of RMCD in ensuring that the law they are
enforcing be complied by the customers and parties that deals with RMCD such as
their external customer like importers, exporters, tourist, publics and else. The internal
customers of RMCD are their officers and the officers family.
Based on the observation, as an organization who deals with unexpected risk as they
deals with public money, the organization ensures that their employees always follows
the organizational policy set up by RMCD in order to be a more effective and efficient
in their performance and avoiding from being accused of misuse of power and bribery.
RMCD always ensure that their employees to conduct and perform their duty parallel
to Customs Service Ethics which is Amanah, Berkhidmat, Ikhlas and Dedikasi (ABID).
46

Moreover, the staff are also adheres to the core values of the organization while
performing their task. The organization makes certain that all five values which is the
TRUST concept have been fulfilled to enhance their performance. The TRUST value
concept is the combination of Togetherness, Respect, Understanding, Spiritual and
Totality. By practicing this core value, Customs was being such a great organization
and as the government agency, they had perform their duty well and fulfill the demand
of their customers.
Chapter Two had summarized all daily tasks done by the practical student throughout
the five weeks training period. The trainee had been exposed to many kinds of task
such as data entry, files management, tax counting, payment system, meeting ethics,
event handling, spiritual events and tax collecting. Each of tasks gives a new
experience to the practical students as it is the first time the students experienced the
working life.
In processing the data regarding the tax counting and tax logbook updated, the trainee
has to make detailed check for all the data to ensure that the data entry is correct and
precise. It is because one small mistake could cause a major problem since it involving
public money. Even though there was a helped by computer system and software, but,
the trainee had to really check it and refers to many tax statement in order to avoid
mistake. This was taught the staff and practical student to be more careful when
dealing with duty. Practical student also learned to get a balance account of the tax,
deals with customer comes to pay tax and tax payment process. This task has assist
trainee to increase on communication skills and improves the understanding on the
sources of public finance.
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The trainee had also learned to how handle event since the headquarters had held
Outreach Program that made to appreciate their customer. These tasks add up the
trainee existing knowledge in class and can be applied in future. Besides that, by
giving the trainee the opportunity to join in handling event, it help the trainee to improve
the communication skill and knowledge in handling event .In term of meeting, the
trainee had given opportunity to observe and join the meeting and briefing made. So
that the trainee able to know how actually public servants conduct meeting and their
meeting ethics and
Chapter Three discussed the analysis of two task executing during practical training
period. The trainee had relates the concepts learned in classroom to the real
workplace environment. The trainee has chosen one of the activities in Human
Resource Management which is recruitment to apply in the recruitment process in
Royal Malaysian Customs Department (RMCD). The trainee has related the
recruitment process in HR Department with other recruitment process proposed by
Whitford et.al (n.d). The recruitment process includes advertising of job vacancy,
interview, selection and placement of the new employees. Most of the processes have
been practically followed by the HR Department in recruiting the new employees to the
job vacancy. Human Resource Officer needs to understand all the procedures and
processes take place in recruiting the new employees in order to ensure the
recruitment process can be done smoothly.
The other concept is related to organizational behavior. Trainee has chosen the
performance appraisal concept. During practical period, trainee able to observe the
meeting organized on the employees Key Performance Indicator (KPI) which is
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discussed about the progress performance of every employee in the department. This
meeting was good to ensure and make remember for the employees about their roles
and duty. This also could be a motivational effort by management towards their
employees since the employee know their current performance level and may boost up
their effort to achieve standard performance. Practical student also had the opportunity
to join and observe on how custom made Perhimpunan Setia which the best
employees from every department and unit will be appreciated and rewarded.
The strength and weaknesses of the trainee during practical training as well as the
recommendation to overcome the weaknesses has been discussed in Chapter Four.
Among other strength identifies are effective recruitment process and effectives
performance appraisal system. Consequently, all the good strengths that trainee
process produce good relationship among trainee and employees regardless their
position, establish good perception and enabling trainee to complete task within time
framework by having high motivational forces. The strength value that RMCD has was
really help the organization to have high sense of motivation to perform duty and the
best employees will fulfill the position in custom. RMCD had very organized
administrative structure. So that they have strong management structure and effective
service delivery might be done.
Despite, weaknesses identified the recruitment process is too long. The entire
weaknesses of the process make the applicants that good sometimes had no
opportunity to get the job. The process also might be redundancy since the first phase
the applicant needs to face is the SPA and not JKDM. Hence, both agencies might

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provide with the same process and the applicant had to trough it twice. It will cost the
government and cost the agencies to get new recruitment in term of time.
All the strength identified which trainee believes those values is helpful to the
organization in delivering their service. However, a few weaknesses are identified
which believe an obstacle to the organization in performing job at the best path. At the
last part of discussion, those recommendations are provided to overcome the
weaknesses that organizational has faces. Among the recommendation such an
alternative towards the career development seem as a good solution for the
organization to be better employers.
In Chapter Five, it summarizes the discussion of each chapter in the report by
highlighting the main points. It shall provide the summary of training experience
especially in Chapter One and Two, the analysis on specific task in Chapter Three and
evaluation of trainee strength and weaknesses throughout the training in Chapter Four.
In short, the discussion at this chapter summarizing and conclude the key ideas and
discussion for each chapter.

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