BQES2104 PRINCIPLES OF MANAGEMENT

SEMESTER 1, 2014/2015
LECTURER : PUAN MAZNAH BINTI OTHMAN
GROUP NO : 3
TOPIC

: MANAGING HUMAN RESOURCES

GROUP MEMBERS:No
Name
1
LIM YONG SENG
2
CHEW MIN YI
3
CHIN XUE KEI
4
LOI MING SHYANG
5
MUHAMMAD HAZWAN BIN MISRAN
6
MUHAMMAD NAJMI BIN AMRI

Matrix Number
BEQ130017
BEQ130005
BEQ130006
BEQ130018
BEQ130026
BEQ130028

Submission on 16th December 2014

At Built Environment, University of Malaya, 50603 Kuala Lumpur

ACKNOWLEDGEMENT

First of all, we would like to take this opportunity to express our deepest gratitude to
all the persons who willing to lend a helping hand in completing this assignment
project.
We would like to express our sincere gratitude to our very dedicated coordinators for
our Principles Of Management, Pn. Maznah Binti Othman for the encouragement,
advice, recommendation and criticism. We really appreciate for her attention and
willing to spare her precious time to guide us also we proceed with our project.
Next, we would also wish to express our sincere appreciation to Miss Nur Izzah Binti
Izhar for spending her precious time to conduct an interview session with us. Her
helps, advices, and the information provided is the key to this project. During we
conduct this case study, we face a lot of problems. Without her continued support and
interest, this project would have not completed so smoothly.
Last but not least, a special thank for all the group members for fully commitment in
completing this project.

Listing Of Contribution Works of Each Member

1. Introduction and General Knowledge of Human Resources ManagingLIM YONG SENG and CHEW MIN YI
2. Determine which company to interview and contact the HR ManagerMUHAMMAD HAZWAN BIN MISRAN
3. Attend to interviewALL MEMBERS
4. Interview questions and interview reportLOI MING SHYANG and CHIN XUE KEI
5. Presentation power pointMUHAMMAD NAJMI BIN AMRI and CHEW MIN YI
6. PresentationALL MEMBERS
Introduction
Human Resource Management (HRM) is a relatively new approach to managing
people in any organisation. People are considered the key resource in this approach. It
is concerned with the people dimension in management of an organisation. Since an
organisation is a body of people, their acquisition, development of skills, motivation

for higher levels of attainments, as well as ensuring maintenance of their level of

commitment are all significant activities. These activities fall in the domain of HRM.
Human Resource Management is a process, which consists of four main activities,
namely, acquisition, development, motivation, as well as maintenance of human
resources. It is responsible for maintaining good human relations in the organisation.
It is also concerned with development of individuals and achieving integration of
goals of the organisation and those of the individuals.
Scott, Clothier and Spriegel have defined Human Resource Management as that
branch of management which is responsible on a staff basis for concentrating on those
aspects of operations which are primarily concerned with the relationship of
management to employees and employees to employees and with the development of
the individual and the group.
For this human resource management topic, we learn a lot to get the right people for
managerial success. First, we learn strategic human resource management which how
does effective managers viewed the role of people in their organizations success.
Second is the legal requirements of the human resource management which what
areas of the law does I need to be aware of to avoid exposure to legal liabilities. Third,
putting the right people into the right jobs which how can reduce mistakes in hiring
and find great people who might work to organization. Forth, orientation, training and
development which once people are hired, whats the best way to see that they do
what theyre supposed to do. Fifth, it is performance appraisal which how can assess
employees performance more accurately and give more effective feedback. Lastly it
is managing an effective workforce like compensation and benefits as well as
managing promotions, transfers, disciplining and dismissals.

How one organization find appropriate and good employees?

Appropriates human resources refers to the individuals within the organization who
makes a valuable contribution to management system goal attainment. This
contribution results from their productivity in the positions they hold. Productivity in
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all organizations is determined by how human resources interact and combine to use
all other management system resources. Such factors as background, age, job-related
experience and level of formal education all play a role in determining how
appropriate the individual is for the organization.
Step 1 : Recruitment
Recruitment is the initial attraction and screening of the supply of prospective human
resources available to fill a position. Its purpose is to narrow a large field of
prospective employees to a relatively small group of individuals from which someone
eventually will be hired. Recruiters must know some information like the job they are
trying to fill, where potential human resources can be located as well as how the law
influences recruiting efforts, therefore it will become more effective. In hiring good
new employees, management must be careful to emphasize not just hiring workers but
hiring the right, good workers which can make a valuable contribution to the
attainment of the companys organizational objectives.
Recruitment activities must begin with a thorough understanding of the position to be
filled so the broad range of potential employees can be narrowed down intelligently.
The technique commonly used to gain that understanding is known as job-analysis. It
is a technique used to gain an understanding of what a task entails and the type of
individual who should be hired to perform the task. It is aimed at determining a job
description and job specification. A job description is a list of specific activities that
must be performed to accomplish some task or job such as job title, location, job
summary, duties, machines and equipments, materials used, working conditions and
etc while a job specification is a list of the characteristics of the individual who should
be hired to perform a specific task or job such as education, experience, initiative,
skills, emotional characteristics and etc.
Human resources specialists in organization continually monitor the labour market so
they will know where to recruit good and suitable people and what kind of strategies
and tactics to use to attract job applicants in a competitive marketplace. There have
two sources to find good employees which sources inside the organization and
sources outside the organization.

For sources inside the organization it is taken from some individuals who already
work for the organization may be well qualified for the position. A human resources
inventory consists of information about the characteristics of organization members.
The information is focuses on members past performance as well as on how they
might be trained and best used in the future. So, from this inventory we can indicate
which individuals in the organization would be the good and appropriate employees to
fill that position.
For sources outside the organization, one often-tapped external source of human
resources is competing organizations. Next, employment agencies also help people
find jobs and help organizations find job applicants. Readership of certain
publications also one of the source to get good employees. The advertisement
describes the open position in details and announces that the organization is accepting
applications from qualified individuals. Besides, many recruiters go directly to
schools to interview students who close to graduation time. From such of that ways
they have chance to hire good employees.
However, managers need to be aware of the laws that govern recruitment efforts. The
Civil Rights Act passed in 1964 and amended in 1972 created the Equal Employment
Opportunity Commission (EEOC) to enforce federal laws prohibiting discrimination
on the basis of race, color, religion, sex and national origin in recruitment, hiring,
firing, layoffs and all other employment practices.
Step 2: Selection
Selection is the most important step to choose a good and suitable employee to the
organization. Selection can be defined as choosing an individual to hire from all those
who have been recruited. Selection is represented as a series of stages through which
job applicants must pass in order to be hired. It is the screening of job applicants to
hire the best candidate. Each stage reduces the total group of prospective employees
until finally the good individual is hired.
There have some tools often used in the selection process which are testing,
assessment centers, background information and interviewing.
Testing is examining human resources for qualities relevant to performing available
jobs. This is very important method to choose a good employee. Although many
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different kinds of tests are available for organizational use, they generally can be
divided into four categories which are aptitude tests, achievement tests, vocational
interest tests as well as personality tests. Aptitude tests measure the potential of an
individual to perform a task. It measure general intelligence, special abilities such as
mechanical, clerical or visual skills. Achievement tests measure the level of skill or
knowledge an individual possesses in a certain area. These may been acquired through
various training activities or through experience in the area. For example are typing
and keyboarding tests. Vocational interest tests to measure an individuals interest in
performing various kinds of jobs. The basic purpose is to select for an open position
the individual who finds most aspects of that position interesting. This is also
important direction in looking a good employee. Personality tests attempt to describe
an individuals personality dimensions in such areas as emotional maturity,
subjectivity, honesty and objectivity. These tests can be advantageously if the
personality characteristics needed to do well in a particular job are well defined as
well as if the individuals possessing those characteristics can be identified and
selected.
Managers must be careful however, not to expose themselves to legal prosecution by
basing employment decisions on personality tests that are invalid and unreliable.
Testing guidelines will discuss about these. Several guidelines should be observed
when tests are used as part of the selection process. First, care must be taken to ensure
that the test being used is both valid and reliable. A test consider valid if it measures
what it is designed to measure and reliable if it measures similarity time after time.
Second, test results should not be used as the sole determinant of a hiring decision.
People change over time and someone who doesnt score well on a particular test
might still develop into a productive employee. Third, care should be taken to ensure
that tests are non-discriminatory. Many tests contain language or cultural biases that
may discriminate against minorities and the EEOC has the authority to prosecute
organizations that use discriminatory testing practices.
Assessment center is another tool used in employee selection. It is a program ( not a
place) in which participants engage in a number of individual and group exercises
constructed to stimulate activities at the organizational levels to which they aspire.
These exercises can be include such activities as participating in leaderless
discussions, giving oral presentations and leading a group in solving some assigned
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problem. The individuals performing the activities are observed by managers or

trained observers who evaluate their ability and potential so that a good employee is
hired. In general, participants are assessed according criteria are leadership,
organizing and planning ability, decision making, oral and writing communication
skills, initiative, energy, analytical ability, resistance to stress, use of delegation,
behavior flexibility, human relations competence, originality, controlling, selfdirection as well as overall potential.
Background information can be taken from application forms and resumes. These
information about job applicants such as citizenship, education, work history and
certifications. However, this tool has a major problem which a lot of resume
information consists of mild puffery and even outrageous fairy tales. For example, the
applicants lied about their education. Many employers dont give honest assessments
of former employees. They fear that if they say anything negative they can be sued by
the former employee. They also fear if they say anything positive, and the job
candidate doesnt pan out, they can be sued by the new employer. Many employers
also like to check applicants credit references although there is no evidence that
people with weak credit scores are appoint to be unqualified or dishonest employees.
Interviewing is the most commonly used employee-selection technique, may take
place face-to-face, by video conferencing or via the Internet. It is able to help
organization to look for good employees. However, face-to-face interviews have been
found to be perceived as more fair and to lead to higher job acceptance intentions than
video conferencing and telephone interviews. To help eliminate bias, interviews can
be designed, conducted and evaluated by a committee of three or more people.
Interview method can be divides into two forms which unstructured interview and
structure interview. An unstructured interview involves asking probing questions to
find out the details and information of the applicant like an ordinary conversation.
There is no fixed set of questions and no systematic scoring procedure. Nowadays it is
susceptible to legal attack because some questions may infringe on non-job-related
matters such as privacy, diversity or disability. However, compared with the structured
interview method, the unstructured interview has been found to provide a more
accurate rate assessment of an applicants job-related personality traits. Second, for
structured interview it divided into two types. The structured interview involves
asking each applicant the same questions and comparing their responses to a
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standardized set of answers. Structured interview type 1 is like situation interview

whereas structured interview type 2 is based the behavioral-description interview. For
the situational interview, the interviewer focuses on hypothetical situations. For
example question: What would you do if you saw two of your people arguing loudly
in the work area? The idea here is to find out if the applicant can handle difficult
situations that may arise on the job. For the behavioral-description interview, the
interviewer explores what applicants have actually done in the past. For example
question: What was the best idea you ever sold to a supervisor, teacher, peer or
subordinate? This question is designed to assess the applicants ability to influence
others.
How to improve productivity of employees?
A good employee mean can give higher productivity to company. Once a new
employee is hired, we cannot just consider he or she is a good employee because of
the information get during selection. Therefore after a new employee is hired we need
to take some action to improve the productivity of employee then after day give more
advantages to organization. If this can happen mean the manager manage to get a
good worker.
First method we need to do orientation to help the newcomers fit smoothly into the
job as well as the organization. The first 6 months on a job can be critical to how one
performs over the long haul because that is when the psychological patterns are
established. Thus, employers have discovered that it is far better to give newcomers a
helping hand than to let them learn possibly inappropriate behavior that will be hard
to undo later. In a large organization, orientation may be a formal established process.
In a small organization, it may be so informal that employees find themselves having
to make most of the effort themselves. Employee should emerge with information
about some matters which the employees have acquired during the job-application
process. First is the job routine which is basic. The new employee needs to have
learned what is required in the job, how the work will be evaluated and who the
immediate co-workers and managers. Second is the organizations mission and
operations. Third is the organization work rule and employee benefit. A public
utilitys HR department may have a brochure explaining formalized work rules, overtime requirements, grievance procedures and elaborate employee benefits. There are
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matters of law such as those pertaining to sexual harassment affecting work

operations that every employee should be made aware.
Second method we need to consider is training and development which helping
people to perform better. A good manager will produce a good employee. So manager
also needs training to improve the management skill. Development process is to
upgrade skills of professional and managers. Development refers to educating
professionals and managers in the skills they need to do their jobs in the future.
However, training is to upgrade skills of employees. It is the process of developing
qualities in human resources that will enable them to be more productive and thus to
contribute more to organizational goal attainment. The purpose of training is to
increase the productivity of employees by influencing their behavior. The training is
follow four-step processes which determining training needs, designing the training
program, administering the training program and evaluating the training program.
First step: Determining Training Needs
Training needs are the information or skill areas of an individual or group that require
further development to increase the productivity of that individual or group. There are
several methods of determining which skills to focus on with established human
resources. One method calls for evaluating the production process within the
organization. Another method for determining training needs calls for getting direct
feedback from employees on what they believe are the organizations training needs.
A third way of determining training needs involves looking into the future.
Second step: Designing The Training Program
Designing a program entails assembling various types of facts and activities that will
meet the established training needs. Obviously, as training needs vary, so will the facts
and activities designed to meet those needs.

Third step: Administering The Training Program

It is training the individuals selected to participate in the program. There have two
techniques for transmitting information in training programs which are lectures and
programmed learning. The most widely used technique in the training programs is the
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lecture. The lecture is primarily a one-way communication situation in which an

instructor orally presents information to a group of listeners. The instructor typically
does most of the talking and trainees participate primarily through listening and note
taking. An advantage of the lecture is that it allows the instructor to expose trainees to
a maximum amount of information within a given time period. The disadvantage is
little or no opportunity exists to clarify meanings, to check on whether trainees really
understand the lecture material, no opportunity for practice. Programmed learning is a
technique for instructing without the presence or intervention of a human instructor.
Small parts of information that require related responses are presented to individual
trainees. It can determine from checking their responses against provided answers
whether their understanding of the information is accurate. The advantage is it can be
computerized and students can learn at their own place, know immediately if they are
right or wrong and participate actively in the learning process. The disadvantage is
that no one is present to answer a confused learners question.
Techniques for developing skills in training programs can be divided into two broad
categories which are on-the-job training and classroom. On-the-job training is a
training technique that blends job-related knowledge with experience in using that
knowledge on the job. There are includes coaching, position rotation and special
project committees. Coaching is direct critiquing of how well an individual is
performing a job. Position rotation involves moving an individual from job to job to
enable the person to gain an under-standing of the organization as a whole. Special
project committees are vehicles for assigning a particular task to an individual to
furnish him or her with experience in a designated area. Classroom techniques for
developing skills also reflect a blend of job-related knowledge and experience.
Specific classroom techniques aimed at developing skills include various types of
management games and role-playing activities. The most common format for
management games requires small groups of trainees to make and then evaluate
various management decisions. The role-playing format typically involves acting out
and then reflecting on some people-oriented problem that must be solved in the
organization. In contrast to the typical one-way communication of the lecturer, the
skills instructor in the classroom encourages high levels of discussion and interaction
among trainees, develops a climate in which trainees learn new behavior from

carrying out various activities, clarifies related information and facilitates learning by
eliciting trainees job related knowledge and experience in applying that knowledge.
Forth step: Evaluating The Training Program
After the training program has been completed, management should evaluate its
effectiveness. Because training programs represent an investment which costs include
materials, trainer time and production loss while employees are being trained rather
than doing their jobs. A reasonable return is essential which through this training can
get best employees which can improve productivity of the organization.
How to consider he/she is a good employee?
Performance appraisal is the method to consider he/she is a good employee. It is the
process of reviewing past productive activity to evaluate the contribution individuals
have made toward attaining management system objectives. Feedback about how
employee doing at work is part of performing appraisal which consists of assessing an
employees performance and providing feedback. Performance appraisals consist of
two general types which are objective appraisal and subjective appraisal. Performance
appraisals need to be fair and accurate not just because it is right but also because it is
essential to effective performance management. Objective appraisals also called
results appraisal are based on facts and are often numerical. For example, in these
kinds of appraisals, you would keep track of such matters as the numbers of products
the employee sold in a month, customer complaints filed against an employee and etc.
Subjective appraisals based on a managers perceptions of an employees traits or
behaviors. Trait appraisals are ratings of such subjective attributes as attitude,
initiative and leadership. Trait evaluations may be easy to create and use but their
validity is questionable because the evaluators personal bias can affect the ratings.
Behavioral appraisals measure specific, observable aspects of performance which
being on time for work.
There have some appraisal methods which are rating scale, employee comparisons,
free-form essay and critical-form essay. For rating scale, individuals appraising
performance use a form containing several employee qualities and characteristics to
be evaluated such as dependability, initiative and leadership. Each evaluated factor is
rated on a continuum or scale ranging. For employee comparisons, the appraisers rank
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employees according to such factors as job performance and value to organization.

Only one employee can occupy a particular ranking. For free-form essay, the
appraisers simply write down their impressions of employees in paragraph form. For
critical-form essay, the appraisers write down particularly good or bad events
involving employees as these events occur. Records of all documented events for any
one employee are used to evaluate the person performance. There is a technique
called 360-degree assessment. It is in which employees are appraised not only by their
managerial superiors but also by peers, subordinates and sometimes clients, thus
providing several perspectives. Self-appraisals also help employees become involved
in the whole evaluation process and may make them more receptive to feedback about
areas needing improvement.
To help increase employee performance, a manager can use two kinds of appraisal
which are formal and informal. Formal appraisals are conducted at specific times
throughout the year and based on performance measures that have been established in
advance. As part of the appraisal, the manager should give the employee feedback,
describing how he/she is performing well and not so well and giving examples.
Informal appraisals are conducted on an unscheduled basis and consist of less
rigorous indications of employee performance. It is the equivalent of occasional
unscheduled pop quizzes and short papers or drop-in visits to the professors office to
talk about work.
Managers may not feel comfortable about critiquing employees performance
especially when have to convey criticism rather than praise. Nevertheless, giving
performance feedback is one of the most important parts of the managers job. If the
performance appraisals are not handled well, their benefits to the organization will be
minimal. The first guideline is stresses both performances in the position the
individual hold and the success with which the individual is attaining organizational
objectives. The second guideline is emphasize how well the individual is doing the
job, not the evaluators impression of the individuals work habits. The third guideline
is that the appraisal should be acceptable to both the evaluator and the subject that
both should agree that it has benefit to the organization and the worker.
How to retain a good employee?

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The basic method to retain a good employee is through monetary compensation.

Although money isnt everything, it is a key motivator in regard to employment.
Businesses need to keep in mind what other employers are paying for similar
positions. If employees are properly compensated for their work they will feel as
though they are a valued member of the team. Compensation has three parts which are
wages or salaries, incentives and benefits. If noticed that the employees have high
productivity to organization, salary can be increase to make sure the employees retain
in the organization. On top of that, to induce employees to be more productive or to
attract and retain top performers, organization can offer incentives such as
commissions (pay for performance), bonuses, profit-sharing plans, gain sharing, pay
for knowledge and stock option. For incentive plans to work, some criteria are
advisable which rewards must be linked to performance and be measurable, rewards
must satisfy individual needs, rewards must be agreed on by manager and employees
and rewards must be believable and achievable by employees. Pay for performance
also known as merit pay is base pay on ones results. Bonuses are cash awards given
to employees who achieve specific performance objectives. Profit sharing is the
distribution to employees of a percentage of the companys profits. Gain sharing is the
distribution of savings or gains to groups of employees who reduced cost and
increased measurable productivity. With stock options, certain employees are given
the right to buy stock at a future date for a discounted price. Pay for knowledge also
known as skill-based pay ties employee pay to the number of job-relevant skills or
academic degrees they earn. These all incentives are important to retain a good
employee. Offering a competitive benefits package that fits your employees needs is
essential in retaining employees. Employee benefits are elements of remuneration
given in addition to the various forms of cash pay. They also include items that are not
strictly remuneration, such as annual holidays. Benefits can be divided into pension
schemes, personal security such as illness, health, accident or life insurance, financial
assistance like loans, house purchase schemes, relocation assistance and discounts on
company goods or services, holidays and other forms of leave. Besides that,
allowances such as company cars and petrol s allowances, location allowances,
overtime payments, shift payments, stand-by and call-out allowances are advised to
give to the employees. These all benefits are important to keep a good employee in
the organization.

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Another method to keep a good employee is through promoting. A good employee

who gives higher productivity to the organization must give a chance to move upward
so that to retain the employee in company. Promotion is moving an employee to a
higher-level position. It is the most obvious way to recognize that persons superior
performance. However, there have some concerns need to notice which are fairness,
non-discrimination and others resentments. First, it is important that promotion be
fair. The step upward must be deserved and it should not be for reasons of nepotism,
cronyism or other kind of favoritism. Second, the promotion cannot discriminate on
the basis of race, ethnicity, gender, age or physical ability. Third, if someone is
promoted, someone else may be resentful about being passed over. So the manager
need to counsel the people left behind about their performance and their opportunities
in the future.
In addition to that, the organization can retain good employees by providing welfare
service. Welfare services may be provided for matters concerning employees which
are not immediately connected with their jobs although they may be connected
generally with their place of work. These matters will include individual services
relating to employees welfare such as private help with counselling on personal
problems, assistance with problems of health or sickness and special services for
retired employees. Group services may include the provision of social and sporting
activities and restaurants. Sport activities enable to foster relationship between the
employees and have fun for employees. Employees will stay happy to work in the
company if the relationship among the colleagues is good. Keep in mind that an
atmosphere with happy employees will set a positive tone for the entire company. You
want your company to be a place people want to come to work, and facilitating a
positive work environment is one way to retain exceptional employees. Besides that,
child care or nursery facilities have obvious value as a means of attracting and
retaining parents who would not otherwise be able to work on a full or part-time basis.
The provision of employee welfare services can increase the loyalty of employees has
long been exploded. If such services are used at all, they are taken for granted.
Welfare may not directly increase productivity, but it may increase commitment and
help in the retention of key employees.
Effective communication can help ensure that employees to want to stay with your
company. People leave managers and supervisors more often than they leave
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companies or jobs. It is not enough that the supervisor is well-liked or a nice person,
starting with clear expectations of the employee, the supervisor has a critical role to
play in retention. Anything the supervisor does to make an employee feel unvalued
will contribute to turnover. Manager must make clarify about expectations and give
feedback about performance of employees. Keep communication simple, provide
adequate information and provide examples for clarity. Show your trust in your
people and make them feel included by sharing with them financial and other
company inside information. Top management needs to learn the art of involving
employees in the decision-making process. Though, management will most likely
make the final and ultimate decisions, seeking advice from staff members can infuse a
sense of employee ownership in the process. Management can make much better
decisions by getting input from front-line employees. If your people know that their
voices are heard and they feel like they are part of the decision making process, they
will be much happier and loyal to the company.

Objective of Interview
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We are interviewed Miss Nur Izzah Binti Izhar, human resource manager, who
worked at Hamshi Capital Sdn Bhd. We are interviewed her at Faculty Built
Environment, University Malaya.
The objectives of this interview are as follows:
1.
2.
3.
4.
5.
6.
7.
8.

To understand the function of human resource department.

To investigate the responsibilities and roles of a human resource manager.
To find out effective ways in getting and keeping good employees.
To find out ineffective ways in getting and keeping good employees.
To learn the ways to improve productivity of employees.
To identify the ways to retain a good employee.
To tackle the problems encountered when managing human resource.
To find out long-range plans for human resource management.

Interview Questions
1. How many employees in the company?
2. What is the function of human resource department?
3. What are the responsibilities and roles of a human resource manager?
4. How do you find and selected an appropriate and good employees?
5. What are the principles of strategic recruiting?
6. What types of interview you will use?
7. How to consider he/she is a good employee?
8. How to improve productivity of employees?
9. What method used to appraise an employee?
10. How do you determine whether to raise the salary of an employee?
11. How do you determine to promote an employee?
12. How to retain a good employee?
13. What incentives and benefits provided to employee in your company?
14. What are the problems encountered when carrying the job duties?
15. What are the long-range plans for human resource management?
Overview Of The Interview
In order to more understand about human resource management, we have conducted
an interview with a person who works in human resource department. The purpose of
our interview is to find out how human resource executive found to be effective in
getting and keeping good employees and what has not been effective.
We carried out the interview session on 7th December 2014. The person who we
interviewed is Miss Nur Izzah Binti Izhar. We are interviewed her at Faculty Built
Environment, University Malaya. We have carried out an informal interview as what
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Miss Nur Izzah Binti Izhar requested. She talked with us in the field informally,
without use of a structured interview guide of any kind. She told us that informal
interview can foster 'low pressure' interactions and allow us to ask more freely and
openly. Besides that, informal interview can be helpful in building rapport with us and
in gaining our trust as well as our understanding of the topic which is human resource
management. She is very friendly and provided a lot of information to us.
Miss Nur Izzah Binti Izhar graduated at University Tenaga Nasional with Bachelor
Degree of BBA human resource. Now, she is working as human resource executive in
the Hamshi Capital Sdn Bhd. Hamshi Capital Sdn Bhd is a new company which
established at 2012. Hamshi Capital Sdn Bhd has many branch of industry which are
Hamshi Media Sdn.Bhd., Hamshi Property Sdn.Bhd., Hamshi Plantation Sdn.Bhd.,
Hamshi Style Sdn.Bhd., Hamshi Kitchen Sdn.Bhd. and Hamshi Resources Sdn.Bhd.
Human resource department is under Hamshi Capital Sdn Bhd. As it is a new
company, there are only six employees in the human resource department. Total
employees in the company are about 65 persons.

What is the function of human resource department?

Miss Nur Izzah Binti Izhar told us that human resource department is the heart of the
company. A company cannot run smoothly and efficiently without the human
resource department. Employee is difficult to monitor and manage without human
resource department. Employee is the most important asset in the company. In order
to retain and sustain high levels of engagement, company needs an explicit strategy to
manage human resource. For Hamshi Capital Sdn Bhd, as it is a new established

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company, the company is focus on recruitment of new talent people and train for the
employees.
What are the responsibilities and roles of a human resource manager?
Miss Nur Izzah Binti Izhar explained to us that human resource manager has two
basic functions which are overseeing department functions and managing employees.
A human resources manager must be well-versed in each of the human resources
disciplines such as compensation and benefits, training and development, employee
relations, and recruitment and selection.
Compensation and Benefits
Human resource manager needs to provide guidance and direction to compensation
and benefits specialists. Within this discipline, human resources manager develops
strategic compensation plans, align performance management systems with
compensation structure and monitor negotiations for group health care benefits.
Examples of human resource manager responsibilities include monitoring Family and
Medical Leave Act compliance and adherence to confidentiality provisions for
employee medical files.
Training and Development
Employee training and development includes new hire orientation, leadership training
and professional development seminars and workshops. Human resource manager
should oversee needs assessments to determine when training is necessary and the
type of training necessary to improve performance and productivity. Human resource
manager also examines employee performance records to identify areas where
employees could improve through job skills training or employee development, such
as seminars or workshops on leadership techniques.
Employee Relations
The human resource manager has responsibility for preserving the employeremployee relationship through designing an effective employee relations strategy.
He/she need to ensure that employees have a safe working environment, free from
discrimination and harassment. Human resource manager also need to resolve
employee complaints.

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Recruitment and Selection

Human resource managers need to develop strategic solutions to meet workforce
demands and labor force trends. Human resource manager needs to maintain
organization staffs by establishing a recruiting, testing, and interviewing program.
How Hamshi Capital Sdn Bhd find appropriate and good employees?
For the recruitment, we are informed that all the employees are chosen by human
resource department but not the head of department itself. After choose the
candidates, an interview will be carried out. Before recruitment of new employee
carried out, human resource department must understand of the position to be filled so
the broad range of potential employees can be narrowed down intelligently. The
technique commonly used to gain that understanding is known as job-analysis.
Recruiters must know some information like the job they are trying to fill, where
potential human resources can be located as well as how the law influences recruiting
efforts, therefore it will become more effective. After that, they will plan to recruit
how many people for particular position. Once human resource department have
established the vacancy and defined the position, recruitment can be begun. Human
resource department of Hamshi group will attract potential employees to the company
by doing advertisement via online and newspaper. The reason of using newspaper
advertisement is a large audience with specialized skills in a specific geographic area
can be reached while the internet recruiting is cost effective and internet job postings
are available to potential candidates 24 hours a day. Besides, they also used employee
referrals method. This is because their company is the new company and knowledge
about their organization provided by current employees can generate strong
candidates because a good referral reflects on the recommender. Then, human
resource department will develop the criteria that will be used to screen resumes and
select the best person for the job. These should come from the job description for the
position and must be measurable within the selection process. Having clear and
measurable selection criteria will help to avoid bias so that interviewers are able to
objectively evaluate a candidates suitability for the job. How she will select good
employees? As we know from general knowledge, there have 4 tools used in selection
process which testing, assessment center, background information and interviewing.
Technique used for Hamshi group to select the potential employees through
interviewing and background information. Background information is based on the
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resume which candidate sent to the company. Miss Nur Izzah Binti Izhar informed us
that they will consider the qualification, experience and reference of the
candidates. They will call the references provided in the resume in order to get the
feedback. Only few candidates which fulfill the criterias are called for job interview.
It takes place face to face. Interviewing can be divided into unstructured interview
and structured interview. In this company, they carry out unstructured interview
involves asking probing questions to find out the details and information of the
applicant like an ordinary conversation. There is no fixed set of questions and no
systematic scoring procedure. In her vision, the importance of the interview is to see
the confident level of the candidates. Miss Nur Izzah Binti Izhar told us that they
want to see how candidates overcome their nervous during the interview session. This
is the basic second stage to determine that the candidate is good employee after
viewing the qualification and background from the resume. She also told us that when
choosing employees she also equally the number of employees based on race,
religion, sex and national origin. Even she is a Malay but she may not discriminate
others race or employees from other country. As we know, her company have different
races, sex as well as other country employees.
How Hamshi Capital Sdn Bhd improves productivity of employees?
We are informed that there are people good in interview session. However, they
cannot perform well in their job duties. In order to overcome this problem, the
company will provide training to help the employees to perform better. The purpose
of training is to increase the productivity of employees by influencing their behavior.
The technique used in the training programs for Hamshi group is the lecture. The
lecture is primarily a one-way communication situation in which an instructor orally
presents information to a group of listeners. The instructor typically does most of the
talking and trainees participate primarily through listening and note taking. An
advantage of the lecture is that it allows the instructor to expose trainees to a
maximum amount of information within a given time period. Besides that, there is
also employee who is very talented but lazy to do work. Miss Nur Izzah Binti Izhar
said that the human resource department will take action by giving holiday leave to
the employee for him/her to rest well. If the employee continues to behave lazy, the
company will give motivation to them. After giving the motivation the employees
still dont want to change the behaviour, reward such as salary increment will be
19

given to them. If the employee still behaves lazy after giving the motivations and
rewards, the company force to fire him/her even though he/she is very talented. The
company will give warning letter to the employee. After received total of three
warning letter, the employee will be fired and terminated his/her job.

How to appraise an employee?

Miss Nur Izzah Binti Izhar explained that employee performance appraisal is a review
and critique of an employee's performance during a specified period of time (often a
year). It is normally used to determine raises and promotions, and to
develop performance improvement plans for those who do not score well. As we
know from her, there are many methods used to appraise an employee in the company.
They will appraise the employees based on the quantity and quality of their worked
performed. Besides that, they may also appraised by determining how fast work is
performed. Peer-appraise can also consider as one of the methods to appraise
employees. Employees in similar positions appraise an employees performance. This
method is based on the assumption that co-workers are most familiar with an
employees performance. Not only that, the employees can have self-appraisal. The
employee appraises own performance, in many cases comparing the self-appraisal to
management's review. Often, self-appraisals can highlight discrepancies between what
the employee and management think are important performance factors and provide
mutual feedback for meaningful adjustment of expectations. Finally, there is a most
common used method to appraise the employees which is 360-Degree or FullCircle Appraisal. The employees performance is appraised by everyone with whom
he/she interacts, including managers, peers, customers and members of other
departments. This is the most comprehensive and expensive way to measure
performance and it is generally reserved for key employees. The various assessment
methods can be used in combinations. The objective of performance appraisals is to
determining the salary, promotion, termination of the employees. When the employees
perform well, Hamshi Capital Sdn Bhd will give reward to the employees by
promoting them. If the company cannot afford to promote a top performer into a
higher position, there are other ways to compensate him or her, says Miss Nur Izzah
Binti Izhar, such as by increasing the salary or incentives (bonus). Normally, the

20

company will increase 15% of the salary every year if the employees perform their
jobs well.
How Hamshi Capital Sdn Bhd retains a good employee?
Miss Nur Izzah Binti Izhar told us that effective communication is very importance
to retain good employee. Hamshi group has hired foreign workers. She told us that
some of the foreign workers may face homesickness problem. They want to leave the
company and back to their original country. She will take action by communicate with
them and give some advice to them in order to retain them. She knows that the
purpose of foreign workers who come to Malaysia to work is to earn money.
Therefore, she will counsel to help them overcome the homesickness problem. For
other case such as employee want to leave the company to work with other company,
Hamshi group will try to retain the employee by providing same benefits which the
other company offered. Besides that, Hamshi group will give the quarter bonus
payouts to the employees. Not only that, Hamshi group will try to create a good
working environment to the employees. There will have a family day once a month
and organize sport activities. Family day enables to foster relationship between the
employees and have fun for employees. Employees will stay happy to work in the
company if the relationship among the colleagues is good. Creating bonding with
each other in one company is the crucial point for all employee work under relax
environment.
Hamshi group will provide all the basic welfare service to the employees such as
pension schemes, personal security such as illness, health, accident or life insurance,
holidays and other forms of leave. Hamshi group provides total annual leave of 24
days for the employees who work more than two years whereas 18 days for the
employees who get the confirmation letter. If the employees cannot clear all the
annual leaves, the remaining leave can bring forward to the next year. For those
employees who still in probation period, there is one day leave once month. Besides
that, the company will provide bonuses, accident or life insurance to the employees.
Not only that, the company also provides free accommodation, transport and passport
to the foreign workers. The company will help the foreign workers to pay the foreign
worker levy first and then cut from their salaries every month. Welfare service
provided by the Hamshi group is to attract and retain good employees.
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What are the problems encountered when carrying the job duties?
Miss Nur Izzah Binti Izhar had told us that this job is a very difficult and tired job.
There are a lot of problems and challenge need to face and settle. First is
communication problem among workers. HR manager has to adapt to a rapidly
changing worker profile and make sure that there is effective communication between
workers and also between workers and managers.Since this company is still new, they
plan to utilise human resource to expand the business. Thus we can expect that
hundreds of workers will pour in the workforce in the coming years, and temporary
and part-time workers a significant and seemingly permanent fixture, companies need
to adapt further to a new breed of employee. Where there is an increase in the human
resource, it is of utmost importance that HR managers play their roles to make sure
there is no miscommunication and dispute among the workers. Second is talent
management. A HR manager needs to know what kind of people is suitable for what
kind of jobs. They need to make sure that the company will become a place for their
workers to showcase their talent and unleash their potential to the fullest. Thus, as a
HR manager, she needs to know where to locate their workers in correct position and
department so that this company can become a stepping stone for their workers to
achieve success in the career life. Motivation of employees is also important part that
HR need to considered. Some workers, after working for a few months, start to show
some negative working ethics like procrastination, low efficiency, coming to work late
and low productivity. A HR manager needs to overcome these problems by
understanding their workers well and think of ways to motivate them to keep them
passionate about work. A HR manager needs to plan and implement ways to inspire
and encourage their workers to keep their enthusiasm of work so that they can keep
performing at work. Next is workload problem. As a HR manager, there are a lot of
work to be done. From recruitment to selection to training to career path planning, a
HR manager needs to do all that. Thus, they feel immense stress and its a challenge
to handle all these problems for so many workers in their company. Leadership
development needs to be a critical strategic initiative. HR professionals are faced
with being expected to provide the essential structures, processes, tools, and points of
view to make the best selection and develop the future leaders of the organization. It
requires HR manager to come up with a strategic initiative in ensuring that the right
employees are retained, that the culture of the organization supports performance
22

from within to gain market position, and that managers are equipped to take on
leadership roles of the future so that the organization is viable in the long term. A HR
manager also needs to consider cost and budget in handling human resource. Since
their company is a new one, its a challenge for them to allocate budget for the
expenses that involve the people part of any business like health-care benefits,
training costs, hiring process costs and many more.
What are the long-range plans for human resource management?
Miss Nur Izzah Binti Izhar had told us that her company has long-range plans for
human resource management as the company is still new. Long term goal is to use
human resource that drives companys success. Human resources goals and objectives
focus on recognition of human capital as the resource that drives organizational
success.
Consistent employee engagement and contribution is what they strive for in its
long term goals for the workforce. Creating a work environment where employees are
enthusiastic about their jobs all the time, not just when annual bonuses are due is a top
priority. Such planning improves the likelihood of creating the right match between
employee skills and job assignments, as well as coordinating promotional
opportunities and workforce capabilities.
Another long term goal is to keep their workers motivated, commited and most
important of all, happy. Attracting qualified applicants, motivating the existing
workforce and inspiring long-term commitment are realistic factors for attaining goals
regarding turnover and retention.
They also aim to become Employer of Choice. Human resources has everything the
company needs to improve its image; therefore, creating an employer of choice is a
goal thats well within the capabilities of a focused human resources department. An
employer of choice is the company employees are happy to be a part of and the
company for which others want to work. Strengthening employer-employee
relationships, offering innovating compensation and benefits packages and investing
in employees are ways human resources can achieve this goal.
In conclusion, we have learned a lot from Miss Nur Izzah Binti Izhar. Now, we are
more understood about human resource management in a company. We know how to
23

find appropriate and good employees, ways to improve productivity of the employees,
and ways to retain good employees. We really very appreciate the help and
coorperation given by Miss Nur Izzah Binti Izhar.
Conclusion
In a nutshell, employee is the most important asset in the company. In order to retain
and sustain high levels of engagement, company needs an explicit strategy to manage
human resource. Human resource management is a strategic and comprehensive
approach to managing people and the workplace culture and environment. Effective
human resource management enables employees to contribute effectively and
productively to the overall company direction and the accomplishment of the
organization's goals and objectives.
Human Resource Management has four basic functions which are staffing, training
and development, motivation and maintenance. Staffing is the recruitment and
selection of potential employees, done through interviewing, applications,
networking, etc. Training and development is the next step in a continuous process of
training and developing competent and adapted employees. Motivation is a key to
keep employees highly productive. This function can include employee benefits,
performance appraisals and rewards. The last function of maintenance involves
keeping the employees' commitment and loyalty to the organization.
After interview Miss Nur Izzah Binti Izhar, human resource manager, who worked at
Hamshi Capital Sdn Bhd, we are more understood about human resource
management. Miss Nur Izzah Binti Izhar explained the function of human resource
department and the responsibilities and roles of a human resource manager. Besides
that, we are informed the effective and ineffective ways in getting and keeping good
employees. We also have learned the ways to improve productivity of employees and
to retain a good employee. She also shared her experience in tackling the problems
encountered when managing human resource and told us the long-range plans for
human resource management for her company.
In short, strategic human resource management is very important to the company. If
the company loss the employee asset, it can leave a great negative impact to the
company. Therefore, it is crucial to manage human resource strategically in order for
24

the company to run smoothly and efficiently. To that end, human resource
management is very crucial for the whole function of an organization because it
assists the organization to create loyal employees, who are ready to offer their best.
References
1. ANGELO KINICKI, BRIAN K. WILLIAMS (2011), Management A Practical
Introduction: McGraw-Hill, Fifth Edition.
2. Chattopadhyay, S., & Pareek, U. (1982). Managing Organizational Change.
New Delhi: Oxford & IBH Publishing Company.
3. DESLLER, G. (2005), Human Resource Management. New Jersey: Pearson
Prentice Hall.
4. Griffin, & Ricky W. (1999). Management: Houghton Mifflin Company.
5. GOMEZ-MEJIA, L., D. BALKIN & R. CARDY (2007), Managing Human
Resources. New Delhi: PHI Learning.
6. LEOPOLD, J., L. HARRIS & T. WATSON (2005), The Strategic Managing of
Human Resources. Harlow: FT Prentice Hall.
7. NOE, R., J. HOLLENBECK, B. GERHART & P. WRIGHT (2007), Human
Resource Management. Boston: Mc GrawHill.
8. STEPHEN P. ROBBINS, DAVID A.DECENZO, MARY COULTER (Global
Edition 2013), Fundamentals Of Management Essential Concepts And
Applications: Pearson, Eighth Edition.

Appendix- Details
1. Company Name
2. Company Address

: Hamshi Capital Sdn Bhd.

: Suite 3-53A, 4812 CBD Perdana 2, Jln

Perdana,
3. Company Phone Number
4. Interviewee Name
5. Education

Cyber 12, Cyberjaya, 63000 Sepang, Selangor.

: 03-86882161/ 0193492147
: Miss Nur Izzah Binti Izhar
: Degree at Uniten BBA Human Resources

25

Appendix- Letter
Hamshi Capital Sdn Bhd.
Suite 3-53A, 4812, CBD Perdana 2,
Jalan Perdana, Cyber 12, Cyberjaya,
63000, Sepang, Selangor.

Dear Miss Nur Izzah Binti Izhar,

26

Request For Conducting Interview

Referring to matter above, we kindly request for conduct an interview about Human
Resource Managing of your company. The purpose of our interview is to find out how
HR manager found to be effective in getting and keeping good employees and what
has not been effective.
2. We are second year student of Quantity Surveying in University of Malaya.
Currently I am taking Principle Management subject as our core course we are
assigned to complete an assignment about Human Resources Management of a
company.
3. Our group members are:
LIM YONG SENG
CHEW MIN YI
CHIN XUE KEI
LOI MING SHYANG
MUHAMMAD HAZWAN BIN MISRAN
MUHAMMAD NAJMI BIN AMRI

BEQ130017
BEQ130005
BEQ130006
BEQ130018
BEQ130026
BEQ130028

4. In regards, we are asking for your permission to conduct the interview with you.
Rest assured that all information collect is for academic purposes only. We are looking
forward for your favourable response to our request. Your cooperation is highly
appreciated.
Thank You.
Sincerely,
Student of Faculty of Built Environment,
University of Malaya.

27