Human Resource Management Report on Minimum Wage in Malaysia

This report provides a detailed analysis of Human Resource Management (HRM) practices in Malaysia, with a specific focus on the Minimum Wages Order (Amendment) 2018. It explores how the new wage benefits employees, including economic stimulus, assistance to families, and employment incentives. The report also examines the consequences of the order on the Malaysian economy, such as its potential to reduce income inequality and increase GDP. Furthermore, it includes a discussion of job descriptions, job specifications, and job advertisements as key tools in HRM. The report concludes by highlighting the importance of strategic HRM in protecting employee rights, boosting productivity, and fostering economic growth. It emphasizes the role of the minimum wage in improving living standards and promoting a more competitive market in Malaysia.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) How the new wage will benefit employees............................................................................1
b) Consequences to the economy of Malaysia............................................................................3
TASK 2............................................................................................................................................4
a) Job Description.......................................................................................................................4
b) Job Specification.....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Human resource management is a quite vast approach and includes various organisational
practices such as recruitment, hiring and effective management of employees in a business
entity. It is a strategic practice that is considered by managers of business concern for dealing
with critical and complex situations (Schermerhorn, 2014). HR manager in every business entity
is assigned tasks that will further be helpful in improving performance level of employees and
thereby promoting their growth. This report considers various strategic practices that are
involved in HRM for which competitive market of Malaysia is considered. This report mainly
focusses on various labour and economic laws that affect overall growth and productivity of
Malaysia. Further, in this report, Minimum wages Order ( Amendment) 2018, have been
discussed. Report also considers impact of these laws on national economic situation. Job
description, person specification and job advertisements are other key tools studied in this report.
TASK 1
a) How the new wage will benefit employees
The Government had implemented Minimum Wages Order( Amendment) 2018 of
RM1,100 for both Peninsular Malaysia, and Sabah and Sarawak. According to this act
Malaysian government laid down some guidelines in relation to wages. As per according to this
employment act it is necessary for an employer to provide related information to employee
related to, wage period, last day wages to be paid and wage advancement (Chelladurai and
Kerwin, 2017). It is also necessary for an employer to mention wages deduction rate and foreign
worker levy to their workers. This act can provide benefit of employees in so many ways some
of that are mentioned below:
Economic Stimulus: Minimum wage rate helps employees to have permanent income
through their job. It will make them to expend more money which will automatically results in
increase in country economic condition (Alfes, 2013). With the help of minimum wage rate
worker are able to expense more through economy which simultaneously benefit nation to grow
in economic terms. With the implementation of minimum wage order Malaysian employee can
effectively maximise their standard of living which will aid in increasing economic sustainability
of country in remarkable way.
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Help certain families: Significant number of workers working as minimum wage earners
in Malaysia are parents. Earlier, when there was no minimum wage order in country these
workers are tend to do work for less money. But after the implementation of Minimum Wages
order( Amendment) 2018 this act will benefit workers to raise their family in healthy way and
enhance their standard of living subsequently.
Help in setting small business budgets: In past recent days, when there was no base of
setting minimum wage rate some small businesses in Malaysia finds it bit hard to budget and set
their amount of minimum wage. This results in unexpected pay hour and less employment
generation in small sector. But after the implementation of Minimum Wage Order by
government these small business firms have proper knowledge of about paying policy and exact
working hour. This will benefit them to pay their workers accordingly and generate new jobs in
their organisations (Schermerhorn, 2014).
Serves as an employment incentive: Minimum wage act helps individuals and unemployed
peoples in Malaysia to take job opportunity. As with the help of this act individuals can know the
minimum amount of pay. This will aid them to take advantages and perks of job which serves as
an employment incentive.
Decreased Turnover Rate: This act will benefit employees in Malaysia to feel more satisfied and
comfortable in their job. If workers are getting exact wages then it make them less likely to quit
their job which results in gaining more experienced and trained workers (Storey, 2014). This
will help organisation to have more positive and qualitative outcomes and strengthen economy of
country.
As per according to the above discussions, minimum wage rate 2018 is an amendment in
which it is required for an employer to provide compensations to their workers under law. This
will benefit in increase in family and employment income level. This act protect right of
employees in order to get hourly rate payment and helps economy to boost.
In addition to this,it also helps in creating numerous job and have adequate earning which
lead towards eradication of nation poverty (Sheehan, 2014). This act will benefit employees in
Malaysian employees to ensure their pay and increase their minimum living wage. It is important
for an employer to promote equal remuneration in their workplace as to protect rights of
employees and abide governmental laws ethically. Minimum wage stimulate employees
spending level and increase their working productivity in effective manner. This act will aid
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them in performing their work with extra enthusiasm and increase their working productivity
simultaneously.
b) Consequences to the economy of Malaysia
Minimum Wages Order (Amendment) 2018 of RM1,100 will benefit economy to raise
individuals living standards and reduce gender and race – based inequality on income basis. This
act protect right of labour as to get hourly payment. It also aid in reducing the gap of wages
between low skilled and professional workers. Poverty margin in Malaysia is not as much high
but there there is a huge level of income disparity in between urban and rural sector in country.
As per according to a survey, the current wage rate in Malaysia increased living wage of an
individual by RM2700. By the implementation of this act, job creation can be steadily increase
and reduce income disparity (Marchington, 2016). An observation showed that more than 25%
of earning of Malaysians peoples are below tertiary education which depicts a situation of lesser
job opportunities. Minimum wage act will help those individuals who are settling for less paying
jobs. This will benefit a country to increase it's Gross Domestic production and net capita per
person. Government of Malaysia can increase their tax earnings and strengthen economic
stability of country. On the hand it can be said that, minimum wage rate can put more
responsibilities on small companies as they have already less budget to invest. Apart of this level
of payroll taxes earned by government can be increased in effective with the help of this act. This
act will also aid in reducing poverty level and increase people standard of living.
Minimum Wages Act can improve employee welfare and remarkably facilitate economic
transformation in in productive way. This act can plays and important role in maximising social
welfare of low paid employees and eliminate labour market distortions. Malaysian government
can increase their productivity in manufacturing sector and expand their labour production level
on the same time. With the implementation of this act country can stimulate their labour
participation and effectively increase their labour utilization in economy. Malaysian government
with the implementation of this act can increase their domestic demand and maximise high
marginal propensity. Government can magnificently turn economy of Malaysia into a high
income and high productive economy around the world and provide suitable incentives to small
and large sector firms which includes, encouragement of investments and implementations of
advanced technologies (Budhwar and Debrah, 2013). Therefore, this act can play a vital role in
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strengthening economic conditions, enhance productivity of employees and encourage more
healthy competitiveness in market.
TASK 2
a) Job Description
Job Description:
It is a systematic document that specifies duties and responsibilities related to a specific
post or position. Job description provide information related to position, skills, qualification,
salary range and working hours. It is a written statement that specify job details and analysis of a
particular position.
Job Description
Job Details
Post: Human Resource Executive
Company: XYZ Company
Job Purpose
To train, educate, monitor, solve and ensure that all policies and measures are effectively
followed in company. HR Executive are responsible for directing, administrating and
overseeing programmes and secessions in company. Executive are responsible to handle
employee relation and provide necessary benefits and training to employees. Also have
authority to make plans and coordinate other functions in organisation.
Roles & Responsibilities
 Handle monthly forms related to payroll and yearly investments.
 Conduct recruitment and reviewing job description regularly.
 Provide data related to adherence and compliance of laws and regulations in company to
government agencies .
 Record obligations and make conformation on statutory PF, ESIC, bonus, taxes and
gratuity.
 Handle employee grievances and enquires.
 Handle dispute settlements in relation to factory rules, labour laws and compliance
guidelines.
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 Prepare and record HR documents, certificates, HR letters.
 Effectively conduct background verification of all employees and submit report to
company management.
 Provide resources in relation to conduct technical interview and coordinate with
concerned person.
 Understand manpower requirement in every department of company.
 Explain policies, procedures and communication system followed in company to
employees.
 Make necessary and required amendments in existing procedures and policies of
organisation.
Reporting To:
Department Head( Principle)
Working Hours:
9.00am to 6:00pm
Salary:
7000 per pound
Job Advertisement:
Advertisement is a form of marketing communication used by companies to promote a
product, process, service or idea. Advertisement can be done by way of print media like business
magazines, journals and newspapers and digital media like social media platforms, emails,
website, text message, television, radio etc.
ADVERTISEMENT
Human Resource Executive Required
Candidate must have strong management knowledge and posses good managerial skill to
motivate company employees.
Human Resource Executive
 Candidates having following skills and applicants are eligible to apply-
 Bachelor degree or equivalent from recognized university in Human Resource.
 Minimum 3 year working experience in the field of Human Resource.
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 Capability to influence candidates as to control labour turnover.
 Guiding and motivating employees to work in more productive manner.
 Provide information related to laws and regulations to employees that are followed by
company.
 Create standards in the relation of providing benefits and bonuses to workers.
Applications to be sent at e-mail id [e-mail]. In case of any kind of information and
query applicants can make contact at 01123737388.
Invitations are invited form 24-27 January, 2019
Short listing of applicants 4-6 February, 2019
Call for HR round 10-13 February, 2019
Interview date 14- 17 February, 2019
b) Job Specification
Job Specification:
A job specification is a description of the required skills, potential, knowledge and
capabilities within an individual to perform the assigned tasks within due course of time. It
comprises of elements such as educational background, work experience and knowledge which
assists personnel in achieving the short term and long term goals related to job role. Job
specification is used by companies for recruitment and selection process, evaluation of
performance of individuals along with their appraisals. Job specification along with job
description helps in providing a brief overview of job role in terms of title, position, education
etc.
JOB SPECIFICATION
Organisation: XYZ Company
Job Title: Human Resource Executive
Qualification: Graduation or MBA.
Essential Criteria:
 Able to coordinate with other department heads.
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 Maintain monthly targets
 Able to deal in critical situations in organisation.
 Suitable knowledge of management and company laws and policies.
Desirable criteria:
 3 year of working experience
 Efficient communicator
 Smart personality
CONCLUSION
As per the above mentioned report, it has been concluded that strategic human resource
management is an important tool that helps in studying behavioural aspects of humans. Also this
report throws throws on Minimum wages order which protects the right of employees in order to
get minimum hour payments. This act will benefit employees in increasing their living standards.
Minimum Wages act will benefit Malaysian government to maximise their overall economy and
strengthen it's GDP and per capita income. Various tools that can be used for staffing employees
such as job description person specification and job advertisement have also been constructed.
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REFERENCES
Books and Journals
Alfes and et. al., 2013. The link between perceived human resource management practices,
engagement and employee behaviour: a moderated mediation model. The international
journal of human resource management. 24(2). pp.330-351.
Budhwar, P. S. and Debrah, Y. A. eds., 2013. Human resource management in developing
countries. Routledge.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
Huselid, M. A. and Becker, B. E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
López-Nicolás, C. and Meroño-Cerdán, Á. L., 2011. Strategic knowledge management,
innovation and performance. International journal of information management. 31(6).
pp.502-509.
Marchington and et. al., 2016. Human resource management at work. Kogan Page Publishers.
Messersmith, J. G. and et. al., 2011. Unlocking the black box: exploring the link between high-
performance work systems and performance. Journal of Applied Psychology. 96(6).
pp.1105.
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Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1).
pp.1-14.
Rubery, J. and Urwin, P., 2011. Bringing the employer back in: why social care needs a standard
employment relationship. Human Resource Management Journal. 21(2). pp.122-137.
Schermerhorn and et. al., 2014. Management: Foundations and Applications (2nd Asia-Pacific
Edition). John Wiley & Sons.
Sheehan, M., 2014. Human resource management and performance: Evidence from small and
medium-sized firms. International Small Business Journal. 32(5). pp.545-570.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Welch, C. and et. al., 2011. Theorising from case studies: Towards a pluralist future for
international business research. Journal of International Business Studies. 42(5).
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