HRM Strategies During Organizational Change: A Malaysian Bank Case

This report delves into professional Human Resource Management (HRM) practices within the context of organizational change, drawing upon a case study of Malaysian Bank A. It addresses the critical importance of HRM in today's evolving work environment, emphasizing its role in aligning people management with business strategies. The report further explores the transformative impact of technology and automation on the finance sector, highlighting the challenges these advancements pose for HRM. Based on observations from the CEO of Malaysian Bank A, the report offers recommendations for professional HRM practices, advocating for HRM to act as a strategic partner, employee advocate, and change champion within the organization. It emphasizes the need for HRM to be business-savvy, credible, and focused on promoting organizational values and goals to ensure overall success. Desklib provides similar solved assignments and past papers for students.

Running head: PROFESSIONAL HRM
Professional HRM
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Executive Summary:
The report is a discussion on professional HRM based on a case study on the perceptions of
the CEO on the HRM functions during organizational change. It tries to provide an insight
into four questions related to the professional HRM for the CEO of Malaysian Bank A. The
report discusses about the importance of HRM role in an organization in the context of
changing of the nature of the work. There is also discussion on how HRM efficiently aligns
the management of the people within the concerned organization along with the successful
implementation of the business strategies. The report also discusses about impact of
technology and automation on the financial sector and the challenges they impose on the
HRM. Based on the observation of the CEO of the Malaysian Bank A, there are
recommendations provided on how the HRM should practice professionally.

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Table of Contents
Introduction:...............................................................................................................................3
1. Importance of HRM in an Organization................................................................................3
2. Aligning Management of People with Business Strategies...................................................4
3. a. Impact of Technology and Automation on the Finance Sector.........................................5
b. Challenges of the Emerging Technology and Automation on HR........................................6
4. Should HRM Professionally Practice.....................................................................................7
Conclusion:................................................................................................................................8
References:.................................................................................................................................8

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Introduction:
The purpose of the report is to draw an insight into professional human resource
management (HRM) based on a case study titled “Senior managers’ perceptions of the HRM
function during times of strategic organizational change’. The context and background of the
report is to provide an idea on how professional HRM should practice. Therefore, the report
discusses about the importance of HRM in an organization with the changing nature of the
work. The report also tries to focus on how HRM ensures aligning the management of people
in an organization along with successful implementation of the business strategies. The
advice provided to the CEO by the HRM regarding the impact of the automation and
technology on the financial sector and how it poses as a challenge for the human resource
management also finds a mention in the report. The report tries to analyse the hypothesis as
to why the activities of HRM are important for an organization.
1. Importance of HRM in an Organization
Human resource management (HRM) refers to the utilization of efforts, capabilities
and knowledge at the managerial level that people consider as an authoritative and
coordinated human enterprise that is a part of the employment exchange and is responsible
for carrying out work related tasks in a manner that enables organizations to continue into
future(Sikora and Ferris 2014). The goals of HRM focus on supporting an organization in
achieving the objectives through implementation and development of HR strategy with the
business strategy. HRM also leads to the development of a culture of higher performance.
Human resource managers also make sure that the organization has skilled, engaged and
talented people as per their needs (Bal, Kooij and De Jong 2013). They also help in
maintaining a positive relationship between the employees and the management thereby
leading to prevalence of mutual trust. Thus, given the changing nature of the work, HRM is

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important in myriad areas of an organization. This ranges from strategic planning to the
maintaining the image of the company. HRM undertakes strategic management through
improving the bottom line of the company through the application of human capital that
affects organizational success. The HRM also performs the function of conducting extensive
salary and wage surveys in maintaining the compensation cost at par with the current
financial status of the company. The HR managers are important for an organization since
they possess the expertise and skills required for negotiating the benefit packages for the
employees by remaining consistent with the economic conditions but also the budget of the
organization. They can also reduce the cost of the organization in terms of employee hiring,
attrition and turnover (Tabiu and Nura 2013). HRM also helps in minimizing the liability and
exposure of the organization in relation to the allegations of the unfair practices of the
employment through identification and investigation. HRM helps the organization in
achieving higher performance along with ensuring higher satisfaction level amongst the
workforce by strengthening the employee-employer relationship.
2. Aligning Management of People with Business Strategies
HRM can align the management of the people within organizations with successful
implementation of business strategies through planning. The creation of viable human
resource strategy helps businesses in avoiding any kind of pitfall and ensures planning that
helps in improvement of business (Bamberger, Biron and Meshoulam 2014). The leadership
of an organization is responsible for setting the tone as to how employees would react to
newer systems. If the executives of a company embrace the newly implemented plan and put
forward their willingness in utilizing the newer HR strategy, the rest of the people will
follow. It is necessary for the HRM to ensure a gradual implementation of strategy so that
there is an alignment with managing the people of the organization (Cania 2014). This must

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be ensured through the addition of a single feature at a particular time for allowing the current
employees to get accustomed with the newer ideas. This is followed in realigning and
evaluating the compensation packages. Instead of introducing newer strategies like newer pay
scale, newer hiring process and newer job opportunities all at the same go, it would be more
prudent to introduce one at a time. For instance if there is an introduction of the new pay
scale in one week, the strategy involving the new process of hiring must be implemented a
week later. To ensure effectiveness of HRM strategy it should be measurable. Determination
of measurable and specific objectives is necessary for ensuring that the strategy is not only
beneficial but also working (Stone and Stone 2013).
3. a. Impact of Technology and Automation on the Finance Sector
The impact of technology and automation has changed the work process in the
finance sector. The HRM would therefore try to put forward to the CEO the changes
happening as a result of implementation of technology and automation. The emergence of
technology has led to the development of the banking software (Sharma, Khandelwal and
Rathod 2014). These software applications have not only eased the process of the finance
sector but have also made it more reliable. This software has also eased the process of data
entry and its retrieval. There has also been the development of core banking system that
enables various branches of the bank to get interconnected to a centralized database.
Technology and automation has also brought into play the development of Magnetic Ink
Character Recognition Code (MICR) cheque processing. This particular technology helps in
revolutionizing the process of cheque clearing into a systematic procedure that is not only
faster but also efficient. The development of the credit or the debit cards reduced the account
holder’s necessity of visiting to the branch for withdrawing money due to the presence of
magnetic recording of data. Internet banking solution has been another boon of technological

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emergence that has enabled carrying out transactions and inquiries in real time ruling out the
need for visiting a branch. The presence of cheque deposit machine, cash deposit machine,
automated inquiry machine and passbook printing machine have aided the users with the ease
of an automated banking service. The other development that has made the work process of
the finance sector easier includes development of online system for cheque truncation, loan
processing and mobile banking facilities (Jain 2013).
b. Challenges of the Emerging Technology and Automation on HR
The challenges that the emerging technology and automation imposes on the HRM
are immense. With the automation of various processes the scope of the HR managers in job
enrichment, job engagement and employee training and development are gradually getting
narrowed down (Völter et al. 2013). Nowadays, machines are replacing human capital
thereby narrowing the scopes of HRM even in performance appraisals. The increased
dependence on technology by corporate also undermines the core principles of HRM that
includes employee satisfaction, motivation, 360 degree feedback and psychometric test. The
implementation of artificial intelligence in business domain related to finance, IT, marketing
and education has further narrowed down the scope of HR. The emergence of technology has
even raised the demand for implementation of block chain technology in insurance, finance
and financial markets that helps in transforming the traditional practices of accounting and
finance domains. This technology ensures transparency in financial disclosures and provides
access to timely financial statements. Such automated technology has almost nullified the
need of HRM in the mentioned sectors.
4. Should HRM Professionally Practice
To achieve a clear strategic focus the HRM must consider them as strategic partners.
According to this role, the HRM must ensure the accomplishment and development of the

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company including the objectives and the business plans (Christopher and Hasanah 2010). In
order to become business partners, the HRM should possess thoughts that are similar to the
business people, know accounting and finance and remain responsible and accountable for
the reduction of the cost and measurement of all HR processes and programs. Moreover, the
HRM must prove them to be business savvy.
In the 21st century the HRM should play a role beyond the process of recruitment and
must therefore act as employee advocate. Hence the HRM should play a vital role in the
success of the organization through his knowledge and advocacy about the people. This
advocacy implies creation of the work environment where people choose to contribute, be
happy and motivated (Ehnert, Harry and Zink 2013). The HRM can ensure this by providing
overall strategies for talent management, opportunities for employee development, programs
for employee assistance, strategies for profit sharing and gain sharing, interventions for
organizational development, implementing approaches for problem solving and employee
complaint and opportunities for scheduled communication on a regular basis.
The HRM should exhibit credibility by frequently championing change. The ability of
successful execution along with proper knowledge makes the HRM professionals extremely
valued (Alfes et al., 2013). Knowing the ways of linking the changes to strategic
requirements of an organization helps in minimizing the resistance towards change and
employee dissatisfaction. The HRM can contribute through constant access of the
effectiveness of HR function. However, for promotion of the overall organizational success,
the HRM must champion and identify the organizational values, vision, mission, action plans
and goals. The HRM is also responsible for determining the measures that will help them to
know how well the company is progressing.

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Conclusion:
Thus, to conclude it can be said that HRM should practice professionally provided it
implement necessary changes as per the changing times. The report establishes the
importance of the HR in the changing times and the challenges faced. The findings of the
report create a meaningful insight to the readers to the activity of professional HRM in a
changing world.

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References:
Alfes, K., Truss, C., Soane, E.C., Rees, C. and Gatenby, M., 2013. The relationship between
line manager behavior, perceived HRM practices, and individual performance: Examining the
mediating role of engagement. Human resource management, 52(6), pp.839-859.
Bal, P.M., Kooij, D.T. and De Jong, S.B., 2013. How do developmental and accommodative
HRM enhance employee engagement and commitment? The role of psychological contract
and SOC strategies. Journal of Management Studies, 50(4), pp.545-572.
Bamberger, P.A., Biron, M. and Meshoulam, I., 2014. Human resource strategy:
Formulation, implementation, and impact. Routledge.
Cania, L., 2014. The impact of strategic human resource management on organizational
performance. Economia. Seria Management, 17(2), pp.373-383.
Christopher J. Rees and Hasanah Johari, 2010 "Senior managers' perceptions of the HRM
function during times of strategic organizational change: Case study evidence from a public
sector banking institution in Malaysia", Journal of Organizational Change Management, Vol.
23 Issue: 5, pp.517-536
Ehnert, I., Harry, W. and Zink, K.J. eds., 2013. Sustainability and human resource
management: Developing sustainable business organizations. Springer Science & Business
Media.
Jain, Y., 2013. Mobile Banking: A Study on Adoption&challenges in Southern Rajasthan,
India. International Journal of Innovative Research and Development, 2(4), pp.902-914.
Nankervis, A.R., Baird, M., Coffey, J. and Shields, J., 2013. Human resource management:
strategy and practice.

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Sharma, K.B., Khandelwal, G.R. and Rathod, M.G., 2014. Information Technology,
Economy and Banking Sector. IBMRD's Journal of Management & Research, 3(1), pp.116-
124.
Sikora, D.M. and Ferris, G.R., 2014. Strategic human resource practice implementation: The
critical role of line management. Human Resource Management Review, 24(3), pp.271-281.
Stone, R.J. and Stone, R.J., 2013. Managing human resources. John Wiley and Sons.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge
Tabiu, A. and Nura, A.A., 2013. Assessing the effects of human resource management
(HRM) practices on employee job performance: A study of usmanu danfodiyo university
sokoto. Journal of Business Studies Quarterly, 5(2), p.247.
Völter, M., Stahl, T., Bettin, J., Haase, A. and Helsen, S., 2013. Model-driven software
development: technology, engineering, management. John Wiley & Sons.