Importance of HRM in a Public Sector Banking Institution in Malaysia

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Case Study
Name of the Student
Name of the University
Author Note

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Introduction
The organizational development and change is considered a key aspect for business in
the management literature (Zayas-Ortiz et al., 2015). The association between people
management and the management of change is elaborated through the activities such as human
resource management, organizational development, human resource development and many
others. In this paper the case study of a public sector banking institution in Malaysia will be
analysed having recognized the importance of HR functions. The paper will also propose the HR
professionals to become more effective in their demonstration and communication to the HR
executives and professionals.
Importance of HRM in the case study organization
It is evident that the case study country is Malaysia that epitomizes the complexities
which are connected with the strategic organizational change initiatives in the entire Asia.
Recently, the country has formulated a significant range of plans and policies for guiding the
management of the national development. The progressive accomplishments of the country
consist of powerful leadership and political will, a string private sector, a well-trained civil
service, a strong private sector focusing on a well-balanced economic growth and the social
development.
The banking and finance sector of Malaysia has been extremely stable and regulated too.
In the recent years, this sector has been facing various changes leaving huge impact on the
operations of banking especially on the role of the HRM departments. As far as the cases of
Malaysian bank A is concerned, the HRM practices in this organization have been transformed
from the public sector personnel management to the private sector human resource management.

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The case shows that previously the PD or the personal department was not held in a higher
esteem. This department has been later renamed as the Human Resource department involving
many endeavours such as attracting, developing and retaining the new talents in the new
era(Kianto, Sáenz and Aramburu 2017).
Keeping in view, the changing aspect of work, it can be said that there is a need of HRM
in the organization. The human resource department functions in recruitment, management and
direction of people working there. The HRM further deals with those issues which are related to
performance, compensation, management, the organizational development, wellness, safety,
benefits, training, employee motivation and others. It also plays a significant role in the
management of workplace culture, environment and people in the organization. It can also
support in the entire company direction along with the accomplishment of the objectives and
goals (Bhat and Darzi 2016).. The organization needs the HRM for maintaining some of the HR
strategic intervention. These are broad banding for enhancing career opportunities, the adoption
of a special approach to manage performance, the launching of a set of HR practices as
recruitment, appraisal, scholarship, training, succession policies, promotion for people
management. It is also required for the institutionalization of the knowledge management
practices and concepts, the entor9ing programs to nurture future leaders (García-Meca, García-
Sánchez and Martínez-Ferrero 2015).The HRM will help the organization to have career
development plans, the performance management system and long-term development of the
staffs. It will also support the business with employee assistance program ensuring the fulfilment
of expected targets and deliver effective management of change and implementation of
strategies.