Human Resource Thesis

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RECRUITMENT/SELECTION AND TRAINING/DEVELOPMENT

PRACTICES: VALUE-ADDED CONTRIBUTION TOWARDS

ORGANIZATIONAL EFFECTIVENESS

ABANG EKHSAN ABANG OTHMAN*

Abstract : The purpose of this paper is to examine the applications of key human

resource management functions of recruitment/selection and training/development and

explore perceptions on their value-added contribution towards organizational

effectiveness in the context of two major Japanese owned multinational electronics

companies in Malaysia. A mixed-methodological approach via case studies and

questionnaire surveys was used for this study. Overall 29 questionnaires from the two

companies were analyzed. In addition, the views of the Executive Director, Head of HR,

line mangers and engineers were sought regarding their role, involvement, policies/

practices and their perceptions on the value-added contributions of HR towards

organizational effectiveness. Analysis of the questionnaire responses and interviews

shows that there are similarities between their practices and the tenets of traditional

Japanese management system (JMS) with some modifications and adaptations to meet

local context. The overall findings indicate that their recruitment/ selection and

training/development practices are influenced by their JMS which encourages specifichuman capital creation through a well elaborated and integrated HRM practices

linking towards organizational goals. Their systematic and effective management of HR

system lead to an especially important source of competitive advantage, hence,

contributing towards organizational effectiveness. Though by no mean to be conclusive,

the result of this study support the notion that higher strategic HRM effectiveness

correlates positively towards organizational effectiveness. This paper provides some

insights and practical implications to HR practitioners and line managers into

approaches to strategic HRM practices as a source of competitive advantage .

IntroductionIn todays increasingly competitive global environment, human resource

management (HRM) has been recognized as a critical dimension of strategic

The author is currently on study leave pursuing his Doctor of Philosophy degree in Human

Resource Management at Hosei University, Japan. This study is part of his doctoral thesis entitled

Strategic HRM practices: perspectives of Malaysian and Japanese parents companies and

subsidiary companies in Malaysia. The author would like to thank Professor Fujimura Hiroyuki

and Associate Professor Hong Kian Sam for their valuable comments and suggestions on earlier

drafts of this paper and the two anonymous companies for providing access and support.* Faculty of Cognitive Sciences and Human Development, Universiti Malaysia Sarawak,

Malaysia


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Abang Ekhsan Abang Othman, Recruitment Selection and Training Development Practices: Value-Added Contribution

towards Organizational Effectiveness / Annals of University of Bucharest, Economic and Administrative Series, Nr. 3(2009) 73-100

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management (Beer et al., 1984; Tichy, Fombrun and Devana, 1984). Similarly,

the field of HRM has sought to become integrated into the strategic

management process through the emerging discipline referred to as strategic

human resource management (SHRM) (Wright and McMahan, 1992). The

ongoing interest in SHRM reflects the growing awareness that human resources

are the key component that can help an organization become more effective and

achieve a competitive advantage (Becker and Gerhart, 1996). However, a large

question remains unanswered: Does organizations actually put SHRM into real

practice? If they do, what are the practices like and its value-added contribution

towards organizational effectiveness? Interestingly, Armstrong and Long (1994)

noted that there has indeed been plenty of rhetoric about SHRM. Despite theuncertainties, there was a number of interesting and thorough empirical studies

of HRM/SHRM had been carried out which provides some evidence of the way

it is applied within the organizations (Becker and Gerhart, 1996; Dyer and

Reeves, 1995; Huselid et al., 1995; Khatri, 2000; Pfeffer, 1994) and showing

the effectiveness of SHRM practices. However, there is still little understanding

of the mechanisms through which SHRM practices influence organizational

effectiveness.

Retrospectively, prior to the more recent emphasis on and pleas for

SHRM practices, organizational recruitment/selection and training/development

remained relatively unchanged, having evolved into a relatively standardized

approach frequently labeled as traditional (Storey, 2001). According to

Holbeche (2001) recruitment should not be simply a question of filling gaps butshould focus proactively on bringing into organization the skills and experience

which cannot be built from within. Undeniably, effective recruitment/selection

is critical to success of the organization. Similarly, HR teams are often criticized

for developing training/development strategies which do not match business

priorities. The question that needs to be addressed in the context of training/

development strategies is how to ensure that people are trained and developed to

their full potential and maximum effectiveness in line with organizational

strategies and objectives. Notably, organizational effectiveness is influence by

the existence of systematic HR policy and practices. By effectively managing

the key HRM practices of recruitment/selection and training/ development,

organizations should be able to attract and retain qualified employees who are

motivated to perform, hence, will contribute to organizational effectiveness.Against the above background and in examining the evidence of its reality

in practice, the purpose of this paper is to examine the applications of key

human resource management functions of recruitment/selection and training/

development and explore perceptions on their value-added contribution towards

organizational effectiveness in the context of two major Japanese owned

multinational electronics companies in Malaysia. This study adds to existing

knowledge and contributes to overcoming the dearth of empirical research on


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the importance of strategic HRM practices in Malaysia and hopefully, will

provides some insights and practical implications to HR practitioners and line

managers into approaches to strategic HRM practices as a source of competitive

advantage.

Review of Literature

Recruitment/selection and training/developmentRecruitment/selection and training/development represent two of the four key

functions of HRM necessary and critical to support organizational strategies.

From this perspective, strategic recruitment/selection and strategic training/development occurs when practice is aligned with and into the strategic

planning process of the organizations. Hsu and Leat (2000), noted that there

appears to be some general agreement among a number of leading American

and European researchers (e.g. Beer et al., 1984; Bratton, 1994; Brewster and

Bournois, 1991; Guest, 1989a) that, whatever models and perspective on HRM

are used, they believe that both recruitment/selection and training/development

policies and practices should be done strategically and be perceived as integral.

They emphasized that recruitment/selection and training/development not only

seek to attract, obtain, retain, and retain the human resources the organization

needs to achieve the strategic goals, but may have significant impact upon the

composition of the workforce, the ultimate fit with the organizations needs and

culture, and upon long-range employment stability and human development(cited in Hsu and Leat, (2000).

Todays organization cannot ignore the fact that a key element of an

organizations resource capability is its people and greater attention is being

given to the recruitment/selection process than ever before. Recruitment/

selection is just one of the key human resource (HR) practices that need to be

integrated into a coherent bundle by organizations in order to support the

delivery of business or corporate strategy. Newell and Rice (1999) noted that for

some, recruitment/selection lies at the very centre of human resource practices

in organizations where appointment decisions represent one of the most crucial

ever taken by employers. While the recruitment/selection is typically the

responsibility of the HR Director/Personnel, line managers in all the business

units of an organization also have an important role in the recruitment/selectionprocess.

Redding and Catalanello (1989) noted that the argument is convincing.

Strategy-linked training may be essential to the success of contemporary firms

challenged by increasing global competition, accelerating technological change,

and shifting workforce demographics. In fact, according to Redding and

Catalanello (1989) several leading organizations, including Motorolla, General

Electric, and Hewlett-Packard, credit their business success to training.


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Similarly, Mestre and Stainer (1997) noted that in Japan, all new employees are

perceived as interchangeable and, as such, are almost considered as non-entities

since there is no difference between one individual and another. It is believed

that this approach is such an intrinsic asset in Japanese companies that most are

far more concerned with recruiting people who have the right attitude to

learning than to selecting those with the best existing skills for the job.

Case studies by Dedoussis (1995) on Japanese manufacturing firms

established in Australia found that recruitment practices by Japanese companies

focuses on candidates in the 35-40 age groups who are hired directly according

to demands of each firm. Additionally work experience is highly valued and

little importance is attached to educational qualifications. However, formaleducational qualifications are important in the case for managerial positions in

bigger firms. His findings on recruitment in two larger firms, NEC and Toyota,

differ from this pattern. In these two firms mid-career recruitment is used only

when vacancies cannot be filled internally, while limited scale periodic

recruitment of young graduates had in the past been introduced in anticipation

of further business expansion. Recruitment at NEC focuses on the 25-30 age

group as candidates in this age are considered less likely to leave than younger

employees and yet be adaptable enough to pursue a career with a dynamic

organization.

Another study by Gregory and Jain (1991), on HRM practices of Japanese

and Malaysian Companies found that their Japanese subsidiary companies

followed the recruitment policy of their parent companies. However, thispractice is not as elaborate as that in the parent companies where direct contact

is made with the educational institutions, and the interview may be conducted

on campuses. In the case of Malaysian firms, there is some dissimilarity in their

recruitment practices as compared to Japanese firms practices. Based on

authors observation and experience, HRM practices in Malaysia have shown

that the full time local employees were recruited mainly through newspaper

advertisement and by walk in interview. In some cases recruitment/selection are

based on family and close friend recommendation. On another case study by

Abdullah and Keenoy (1995) on the Japanese managerial practices in the

Malaysian electronics industry noted that available vacancies are first offered to

currently serving employees. Qualified applicants are assessed based on

performance and seniority. With applicants of equal merit, seniority is used asthe decisive criteria. Failing this method, employees are circularized in the hope

that someone among their friends or relatives may be suitable. Only after this

would the post is advertised outside the company. Interestingly, the company

believes this practice helps to enhance the family spirit a view endorsed by

union representatives.

Another important features related to HR development is total employee

participation. To improve continuously the process of quality control, Japanese


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firms have developed various forms of organizational learning mechanisms

such as the suggestion system. According to Zhao (1991) in about 40 years, for

instance, Toyota has received some 20 million ideas for improvement through

the employee suggestion programs. New ideas and suggestions not only provide

inputs and benefits for producing good quality products, but also motivate

workers and keep them highly committed (Yang, 1994). Similarly, the emphasis

on coordination and co-operation across departments makes it imperative for

firms to encourage multifunctional skills so that workers will be able to learn

cross-functional skills and share with one another to accomplish organizational

goals. The continuous practice of job rotation contributes to strong and effective

work teams, which are the key for better product quality and organizationaleffectiveness.

Strategic HRM contributions towards organizational effectivenessThe potential for HRM function to play a significant role in increasing value-

added and achieving competitive advantage may be considerable. A number of

studies have shown positive relationship between HR practices and

organizational effectiveness. For instance, Mac Duffie (1995) found that

bundles of HR practices were related to productivity and quality in his sample

of worldwide auto assembly plants. Delery and Doty (1996) found significant

relationships between HR practices and accounting profits among a sample of

banks. Lepak and Snell (1996), found that among their sample of manufacturing

firms, certain combinations of HR practices were related to operationalperformance indicators. Another study by Guthrie (2001) on corporations in

New Zealand had found that their HR practices were related to turnover and

profitability. Similarly, Huselid (1995) in his comprehensive study of the

relationship between HR practices and firm performance demonstrate that the

confluence or set of HR practices used by firm clearly relates to firm outcomes

of turnover, productivity, and financial performance. In a more cautious view,

Ulrich (1997) noted that although there may be many intervening variables,

however, this type of empirical assessment demonstrates that HR practices do

relate to firm results.

Despite the positive relationship between better HRM/SHRM practices,

the issue of how to measure the contributions of Strategic HRM process has

achieved a great deal of attention in the literature. Often, there are just vaguelyreferred to as improvements in organizational effectiveness (Cook and Ferris,

1986; Devanna et al., 1984), yet as Evans (1986) points out as cited in Truss

and Gratton (1994) the issue of the criteria by which HRM policies should be

evaluated is fundamental since any concept of strategy implies goals and

outcomes. Generally, the existing research seems to suggest a positive

relationship between HR and organizational effectiveness. However, contrary to

Becker and Huselid (1998) claim, this body of research tends to lack sufficient


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methodological rigor to demonstrate that the relationship is actually causal in

the sense that SHRM practices when instituted will lead to organizational

effectiveness. They further noted that little, if any, research has utilize rigorous

designs to test the hypothesis that by employing SHRM practices actually

results in organizational effectiveness in a causal sense.

However, recent theoretical work in business strategy has given a boost to

the prominence of HR in generating sustained competitive advantage.

According to the resource-based view (RBV) of the firm (Barney, 1991; Wright

and McMahan, 1992) believed that firms can develop sustained competitive

advantage only by creating value in way that is rare and difficult for competitors

to imitate. In fact, numerous researchers have noted that HR may be theultimate source of sustainable competitive advantage. Although traditional

sources of competitive advantage such as natural resources, technology,

economies of scale, and so forth, create value, the resource-based argument is

that these sources are increasingly easy to imitate, especially in comparison to a

complex social structure such as employment system. If that is so, HR strategies

may be an especially important source of sustainable competitive advantage

(Pfeffer 1994; Wright and McMahan, 1992). Additionally, Russso and Fouts

(1997) noted that it is the firms ability to employ its organizational capabilities,

its ability to assemble, integrate and manage human resources that matters

because human resources are not inherently productive.

Objectives of the StudyGiven the above review, the general emphasis of this study is to examine the

applications and processes two key HRM functions of recruitment/selection

and training/development and explore the perception on its value-added

contribution towards organizational effectiveness.

The research aims to address the following related questions:1. (i) What are the organizations strategic approaches in recruitment/selection

and training/development practices? And how does it support the

business/corporate strategy?

2. (ii) What are the perceptions on the value-added contribution ofrecruitment/selection and training/development practices towards

organizational effectiveness?

The next sections of the paper provide the methodologies and findings.Finally, some of the key findings and implications for researchers and

practitioners are provided, followed by the discussion and conclusion.

Research Methodology

Research designThe research used a mixed-methodology approach via semi-structured randominterviews and questionnaire surveys supplemented by secondary data on


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companies documents and reports. The main source of data for the case studiesis based on empirical data gathered through on-site interviews. Each plant waspersonally visited on two separate occasions in March and July 2006. A total of31 respondents were interviewed. The samples of respondents interviewed wereGeneral Manager Corporate HR, Executive Director, senior line managers,engineers, executives and operators. Among the questions asked were on thestrategic recruitment/selection and training/development practices and policies,the integration of these key HR functions with the overall strategy. Through theinterview, additional questions and probes arises enable respondents to be askedon a much broader scale on emerging issues pertaining to recruitment/selectionand training/development.

The interviews were conducted in a semi-structured approach. The aim ofthese semi-structured interviews with different parties from the HR and non-HRwas to get a cross-section of view and to give the breadth and depth ofmanagerial opinion. Interviewees were given a set of interview scheduleframework prior to the actual interview. All interviews were tape recorded withthe permission of the interviewees, and the text was transcribed. The transcribedtext then becomes the data that was analyzed in relations to the objectives of thestudy as per research questions.

The result of the study shown in the following tables provides descriptivestatistical information (e.g., frequency counts and percentages, and mean score)for all items with five-point likert scale. The data obtained from the interviewfindings were summarized, discussed and where possible are presented in

verbatim. A total of 50 questionnaires, 25 questionnaires for each companywere sent to the Head of HR/Director of HR and Head/Director ofManufacturing/Line Mangers of both Company A and Company B. Overall 29questionnaires were received and analyzed for a response rate of 58 percent. Ofthe 29 questionnaires received, (n = 15) were returned by Company A and (n =14) were returned by Company B.

InstrumentThe questionnaire was divided into two parts. Part A contained items relating to

personal and organizational profile. Part B (Section 1) contained (i) 10 items

relating to the strategic approaches in recruitment/selection practices and (ii) 7

items pertaining to selection criteria. Part B (Section 2) contained (i) 9 items on

the organizations strategic approaches in training/development practices, and(ii) 12 items on training/development methods. Finally, Part B (Section 3)

contained 8 items on the extent of SHRM practices (recruitment/selection and

training/development) as practiced contribute to organizational effectiveness.

The responses on the items in Part B (Sections 1, 2, and 3) were in the form of a

five-point likert Scale, requiring respondents to choose from 5 given responses

i.e., 1 = Little or No Extent; 2 = Some Extent; 3 = Moderate Extent; 4 = Great

Extent; and 5 = Very Great Extent.


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Questionnaire constructs and measures

The questionnaire and interview questions were designed to test various

propositions derived from the HRM/Strategic HRM literature. The

questionnaire and interview items were identified and adopted from earlier work

of past researchers (Armstrong and Long, 1994; Budhwar and Khatri, 2002;

Dyer and Reeves, 1995; Gregory and Jain 1991; Guest, 1991; Schuler, 1992;

Schuler and Jackson, 1999; Sheehan, 2005; Ulrich, 1997) to suit the needs of

this study. The main reasons for adopting these items was that they came from

established authors who specialized in the field of HRM/SHRM and whose

work which incorporates HRM/SHRM issues has been widely cited.Details of

questionnaire constructs and measures in used to access answers to the researchquestions are presented as follows:

Part A: Personal and organizational profile

This refers to the respondents position in the organization, academic field and

qualifications, participating companys years in operation and whether the

company had a Personnel/HR Department.

Part B (Section 1): Recruitment/selection

This refers to application of key HRM practices in the recruitment/selection

practices. The practices should be aligned with and integrated into the strategic

planning processes of the organization.

Recruitment/selection was measured using the following items:

(i) 10 items relating to the strategic approaches in recruitment/selection

practices: whether recruitment/selection is closely linked with the business/

corporate strategy; whether recruitment/selection needs are based on solid

preparatory work through job analysis; whether recruitment and selection

strategies include developmental and succession plans; whether recruitment and

selection strategies are in place and deliver in line with the goals of the

organization; whether applicants specifications reflect current as well as future

organizational needs; whether appropriate skills are in place to support the

recruitment/selection strategies; whether induction, training/development and

mentoring programs are available to support the recruitment program; whetherHR and line managers are jointly involved in the recruitment/selection process;

and whether job description is used a basis for the interview and

(ii) 7 items on the use of following selection criteria: experience in a related

job; ability to perform the specific job requirement; ability to work in teams;

match/fit with companys values; academic qualifications as required;

competencies as required; and belief that the candidate has the right attributes.


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Part B (Section 2): Training/developmentThis refers to the application of key HRM practices in the training/developmentpractices. The practices should be aligned with and integrated into the strategicplanning process of the organization.

Training/development was measured using the following items:(i) 9 items relating to strategic approaches in training/development practices:whether training/development is closely linked with the business/corporatestrategy; whether training and development is an integral part of HR strategy;increasing focus on team building; performance feedback through evaluation;

training/development forms an integral part of performance evaluation;development of all employees to close skill gaps; training to meet future needs;training to meet current needs; and promoting continuous learning and(ii) 12 items on training/development methods for managerial staff: orientationprogram; job rotation; on the job training; off the job training; multi-skilling;external training; special projects; competency based training; specialized skilltraining; cross function training; coaching/mentoring; and soft skills training.

Part C (Section 3): Value-added contributions towards organizationaleffectivenessThis refers to the value-added contribution of the of the two key SHRMpractices of recruitment/selection and training/development towardsorganizational effectiveness.

Value-added contribution of SHRM practices was measured using the followingitems:(i) Organizational effectiveness adopts two types of measurement: operationaloutcomes and financial outcomes as proposed by Dyer and Reeves (1995) basedon eight items. Operational performance will be measured in terms of employeeturnover; absenteeism rate; skill development; employee productivity andproduct quality; and financial performance will be measured in terms oforganizational growth, return of investment and profitability. Despite thisqualitative and descriptive measurement on organizational effectiveness,nevertheless, the strength of the data collected through in-depth interviews andcross-section of views with key informants and key stakeholders. Additionally,the semi-structured interviews with probes will be used to deepen the responseto a question, therefore, increasing the richness and depth of responses. In thesubsequent sections the empirical results are presented and key findings andimplications, discussions and conclusions will be presented.

Profile of case study organizationCompany A was established in Malaysia in 1973 is a subsidiary of a leadingJapanese manufacturer of bipolar integrated circuits, MOS-integrated circuit


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and discrete equipment for the application of telecommunications, audio,television, facsimiles, printers, DVD and other applications. Company B wasprincipally engaged in the manufacturing of room air-conditioners. It wasestablished in Malaysia in 1972 to specialize in the manufacture, sales andservice of air-conditioners.

Empirical FindingsThe findings from the questionnaire survey and case studies are detailed andillustrated below with tables supplemented by some excerpts of interviews fromthe interview records of the researcher, to give clearer views of intervieweescomments.

Profile of respondentsThe majority of the respondents participating in the questionnaire survey fromCompany A and Company B were HR Director, Executive Director, linemanagers from production, engineering and managers and assistant managersfrom HR departments. Similarly, the majority of the respondents from bothcompanies had graduated with bachelors degrees in various academic fieldsincluding engineering, business studies, social sciences, economics and humanresource management. Thus the respondents were highly educated andqualified. This could possibly reinforce the accuracy and relevancy of thestudys findings. The two companies reported having a HR department. Bothcompanies had been established in Malaysia for more than 20 years.

Recruitment/selection practicesThe findings on the overall mean score on key features of strategic recruitment/selection practices for Company A and Company B as shown in Table 1 was(3.51) and (3.66) respectively, indicating a slight difference of overall meanscore. Both companies have used the key features of recruitment/selectionpractices to varying degrees for attracting potential applicants into theirorganization. The top three highest mean score for items on key features ofstrategic recruitment/selection practices for Company A include: (i) recruitment/selection are linked with business or corporate strategy (4.07), (ii) recruitment/selection process are integral part of HR strategy (4.00), and (iii) HR and linemanagement jointly involved in the recruitment/selection process (3.67).

For Company B, the top three highest mean score was: (i)recruitment/selection are linked with business/corporate strategy (4.00, (ii)recruitment/selection process are integral part of HR strategy (4.00), and (iii)appropriate skills are in place to support the strategies (3.86). Comparatively,the first two items with the highest mean score for the two companies wassimilar. Both companies indicating their recruitment/selections were tailoredto the demands of the overall business/corporate strategy. The results indicatethat both companies employed a strategic recruitment/selection practices.


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Table 1.

Strategic approaches in recruitment/selection

Company A

(N = 15)

Company B

(N =14)Item

Mean SD Mean SD

a.Recruitment/selection are linked with

business/corporate strategy4.07 0.70 4.00 0.68

b.Recruitment/selection based on job

analysis3.27 0.59 3.63 0.50

c.Recruitment/selection process are

integral part of HR strategy

4.00 0.53 4.00 0.56

d.Recruitment/selection include

developmental and succession plans3.20 0.77 3.64 0.74

e.Recruitment/selection deliver against the

goals of the organization3.40 0.51 3.57 0.76

f.Applications specifications reflect current

as well as future needs3.27 0.59 3.57 0.51

g.Appropriate skills are in place to support

the strategies3.40 0.74 3.86 0.53

h.Induction, training/development and

mentoring programs available3.47 0.74 3.43 0.85

i.HR and LM jointly involved in

recruitment/selection process3.67 0.82 3.79 0.43

j. Job description is used as the basis forinterview

3.40 0.83 3.14 0.95

Average Mean Score 3.51 3.66

Notes: 1 = Little or No Extent; 2 = Some Extent; 3 = Moderate Extent; 4 = GreatExtent; 5 = Very Great Extent

Table 2.

Selection criteria

Company A(N = 15)

Company B(N = 14)Item

Mean SD Mean SD

a. Experience on the related job 3.27 1.03 3.79 0.89

b.Ability to perform the specific job

requirement

4.07 0.80 3.86 0.66

c. Ability to work in teams 4.07 0.80 3.79 0.80d. Right match/fit with companys values 4.00 0.65 3.71 0.61e. Right academic qualifications are required 4.20 0.68 3.64 0.84f. Right competencies are required 4.00 0.53 4.00 0.55

g.Belief that the candidates has the rightattitude

4.07 0.70 3.93 0.83


Notes: 1 = Little or No Extent; 2 = Some Extent; 3 = Moderate Extent; 4 = GreatExtent; 5 = Very Great Extent


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Similarly, the results on selection criteria as shown in Table 2 show there

is elements of strategic practices in their selection criteria process. The overall

mean score on selection criteria for Company A and Company B were

moderately high with (3.64) and (3.62) respectively. Generally, both companies

used wide selection criteria i.e., experience on the related job, ability to perform

the specific job requirement, ability to work in teams, right match/fit with

companys values, right academic qualifications and right competencies are

required and the belief that the candidates has the right attitude were all

important criteria for selection. Gregory and Jain (1991), asserted that while it

has been noted widely in the literature that the Japanese companies practice

hiring of fresh high school, college and university graduates, however, there aresome modifications concerning recruitment/selection practices by their

subsidiaries companies in the host country, perhaps to suit the requirement of

the local requirement.

Interview findings: Company AOn the recruitment/selection practices, every department will do their own

manpower requirement. However, HR is responsible for the overall planning of

manpower with inputs from the respective departments. After finalizing their

manpower requirement, the respective departments will submit their requisition

to HR for GMs and MDs approval. For instance, in 2008, the company is

planning to produce new product in Malaysia which will be transferred from

Japan. Hence, as part of their manpower planning and development programstheir Manufacturing Department will have to send two of their existing

engineers to Japan for one year training. The manpower planning is a

continuous process and for this purpose it was done much earlier, about a year

prior to deployment to Japan for training. When the two of them leave, the

departments will get replacement either through internal promotion or

recruitment from outside. Administratively, the Manufacturing Department will

discuss with HR but for identifying and selecting of staff to be trained to Japan

or to be promoted will be have to be done by the Manufacturing Department

through what can be called as a delegated responsibility an understanding

between HR and the line management because they felt that the respective

department is more appropriate and know better who to send and to be trained.

The advertisement and announcement of vacancies and the short listing ofcandidates will be done by HR Administrative Services Department. However,the interviewing process will be with the involvement of the respectivedepartments on a collective responsibility depending on the positions. Oncompanys policy on selections criteria, the company emphasized on thesuitability of candidate. They give priorities to candidates with positiveattributes and characteristics e.g., responsible, disciplined, versatile and teamplayer and expect them to assimilate to the organizational objectives. Undertheir Global Recruitment Program, the Companys HR is working with


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universities through the Deans and lecturers for their recommendations onsourcing of potential graduates. On the external recruitment, the companysrecruit either fresh graduates or in some case they recruit those with experienceparticularly on higher and critical positions. Additionally, they also recruitpotential Malaysian graduates to be who are studying in their final year inuniversities in Japan. These potential applicants are directly recruited by theirHR team in Malaysia with cooperation from their parents company.

In answering to the questions related to strategic recruitment/selection

practices, the following explanations were made by the executives:

Normally, we have the 3 year mid-term planning. However, it changes depending

on the market in the next 3 years and also the planning by our Headquarters. Forexample, on the transfer of product that is currently produced in Japan to

Malaysia, HQs will notify us at least one year prior to the transfer of production.

Therefore, we still have enough time to plan for our manpower. In the case of

short-term requirement e.g., we have two terms in a year. So in this short-term

there will certainly be ups and down.

Internally, we will have transfer of manpower depending on where it is much

needed. Unless, if the total volume is significantly increasing, than we will need

to recruit our manpower. Basically, it depends whether we will recruit or deploy.

For our direct manpower staff (operators), the recruitment will depend on the

volume. The increased in production will also lead to the increase in our

manpower. Our basis of calculating our manpower requirement will be based on

key performance per manpower. We will benchmark and use it as ourproductivity record (Senior HR Manager, Administrative Services Department).

In the case of engineers, their jobs are different. E.g., in one line we only have

one process engineer, whether the line produce 10 or 20 million pieces we still

need one process engineer even when the production is going down. Normally,

even with the increased in the production, we will not be increasing the number

of engineers, except when theres transfer of production from our parent

company in Japan to Malaysia. In this case, we need to start recruiting new

engineers to prepare them for the new production that was transferred here.

However, our increase of engineers is not normally parallel with our production

quantity (Senior Section Manager, IC Department).

On the requisition of manpower by the respective departments, HR will calculate

the labor cost and come up with the structure. We will present it to themanagement. The purpose is to see whether an increase in production line,

production amount and quantity are in line with the increase of manpower and

labor cost.During the low production time, there are times that certain times the

lines are producing at low capacity (HR Manager, Administrative Services

Department).

When asked on how do they deploy their staff during the low capacity period?

The HR Manager, Administrative Services Department explains:


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Considering at this moment, we do have around 20 percent of temporary

operators. We seldom terminate their contract even though production was

down. We normally look at the next six months whether the trend are still good or

is it a temporary production down. If it is just temporary production down, we

will send them for training on our management innovation project to improve our

productivity.

Our factory operators have various skills and they are multi skilled. Our workers

not only specialize on processing but these workers have been trained to do all

other process or products. For instance, when the demand for one particular

product is low, then these workers can be mobilized elsewhere according to their

skills.

The following is some of the replies by Department Manager, Manufacturing

Department which illustrates on the line involvement in the recruitment/

selection practices.

We will do our own manpower planning. My line managers will do the planningin accordance with our production requirement either on a long-term or short-term. In order to determine our manpower need, we will calculate our manpowerrequirement based on the number of machine and also by looking at ourefficiency rate of our current and past manpower. Another consideration is bylooking at the demand and supply. We recruit and select based on our jobdescription requirements.

We are involved directly on the recruitment/selection of operators, technicians,and engineers. In fact, we will determine the candidates that we want to employbecause HR cannot really understand our manpower needs, its too technicalsometimes. However, we work closely with HR. As for our selection criteria, a

part from their academic result, we also look at their attitude through ourprobing. Normally, through the interviewing process, we will be able to seewhether they can fit in or not. Another important criteria is their ability to worktogether as a team.

Interview findings: Company BThe respective departments will do their own manpower planning and they will

send their manpower need to Corporate HR for overall manpower planning. The

request for the new manpower need will be made by requisition to Corporate

HR for consideration. HR will then evaluate their request by assessing on themanpower needs, and to ensure whether it had been accounted earlier in their

business plan. Additionally, the respective departments have to justify on their

manpower requirement e.g., request of manpower due to meeting additional

business requirement or due to resignation. As part of their strategic

recruitment/selection practices, the Assistant Manager Recruitment and

Selection stressed that HR is not order takers when it comes to requisition of

manpower. Importantly, HR will have to assess and match it with the

organizational requirement prior making decision on the manpower request.


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The Assistant Manager, Recruitment and Selection further describe their

strategic recruitment/selection practices as follows:

HR will also discuss with the line managers on their manpower needs.Sometimes, if it is not a highly skill requirement, HR will propose for internaltransfer. HR has to play a strategic role in order to be a business partner withtheir line managers. Finally, we have to justify to our Managing Director beforewe can actually recruit. Our MD will decide whether theres a need to recruit ornot. Generally, he knows because he joined the meeting together with theFactory, HR, Finance and Sales.

We advertised for vacant positions either internally, in the Job Street, through

our website and also in newspapers. Our panel of interviewer involved HR andthe respective manager from the departments that request the manpower.Generally, we have either one or two stages of interview depending on the

position. For much higher position, our GM and MD will also be involved. Forjunior engineers, we normally take fresh candidates and some with one or twoyears experience. We also need an experienced staff for a quick fix request.

For our direct staffing, we usually have 3 months manpower forecast. When theyhave confirmed the numbers, we will start the recruitment/ selection process. The

factory representative will also be involved in the interviewing process. Theselection process is not that critical because they are just unskilled workers andwill be trained later in the factory. We will try to get the one with the goodcharacter and will also give them mathematical test. The factory representativewill do the competence checking whether the candidates are fit to do the job or

not. Once accepted they will report and will have to attend the 3 days orientationprior being deployed to the factory.

Another explanation on the strategic recruitment/selection practices was made

by Manager, Manufacturing Engineering, he says:

Under our production strategy we will plan our manpower based on our processflowchart. Once this was done, we will discuss with the line supervisors on thenumber of manpower we required. Once the number has been determined, wewill send our requisition to Corporate HR for advertisement and announcement.Our usual practice is we normally shortlist candidates with Cumulative GradePoint Average (CGPA) of 3 above with strong mathematics and science forengineering position.

Sometimes we do conduct behavioral kind of interviewing system for our indirectstaff though not fully implemented. For example, we asked question like, today

you have a very important function, and however you are required to stayovertime, what is your respond? Generally, from the way they respond we wouldbe able to gauge their character. We also have some standard questions andbased on the answer we know the type of character ones is having. (Manager,

Manufacturing Engineering)

Generally, both companies are adapting flexible employment as their HR

strategy. Their recruitment/selection of engineers focus on core talent with


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skills required to match with the companys needs. They also embarked on

contingent employment management through fixed term and contract staff

depending on companys production requirements. Their manpower planning

processes typically addresses future needs as well as current needs. Engineers

and other executives positions are filled either internally or externally identified

in advance. As noted they place great emphasis on the personality trait and

characteristics of potential applicants that have the right match with the

organizational need. Strategically, both companies emphasize that the potential

candidates must have the ability to learn new skills and adapting to the cross

functional activities, hence, in their selection they look for applicants who can

be developed to meet their production and organizational need.

Training/development practicesThe result on strategic approaches in training/development practices in Table 3indicate the overall average mean score for Company A and B was (3.31) and(3.80) respectively, indicating that the overall response was above the mid-point score of between Moderate Extent and Great Extent. The mean scoreresults also indicate both companies show higher means score on training anddevelopment linked with business/corporate strategy, training/development arean integral part of HR strategy, and training to meet future needs and currentneeds. These indicate that both Company A and Company B employedelements of strategic training/development process. Generally, interview

evidence demonstrates companys emphasis given to the continuousimprovement of individual talents through job related training, internal andexternal training, assignments under different manager, special projects. Theseare to ensure that the required skills are available to meet the changing businessrequirements and companys competitive advantage.

On methods of training/development as shown in Table 4 shows theaverage mean score for Company A and B was (2.96) and (3.65) respectively.The top three highest mean score for items on methods of training/developmentpractices of Company A include: (i) orientation program (3.40), (ii) on the jobtraining (3.79), and (iii) specialized skill training (3.67). For Company B, thetop three highest mean score was: (i) orientation program (4.07), (ii) on the jobtraining (4.00), and (iii) specialized projects (3.79). Both companies shows

higher mean score on orientation program and on the job training. The resultsindicate a wide and varying degree of training/development methods was usedby both companies. The varying degrees could possibly be due to the nature ofproduction whereby Company B is very much labor intensive as compared toCompany A which is a semi-conductor company. Although productionautomation and mechanization are considerably important, however, overallproduction still depends on the quality and productivity of their humanresources. Hence, the need for a continuous training as emphasized by bothcompanies.


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Table 3.

Strategic approaches in training/development

Company A(N = 15)

Company B(N =14)Item

Mean SD Mean SD

a.Training/development are linked withbusiness/corporate strategy

3.530.74

3.93 0.47

b.Training/development are an integralpart of HR strategy

3.930.59

3.86 0.53

c. Increasing focus on team building 3.13 0.83 3.17 0.61

d.Performance feedback through

evaluation

3.200.86

3.64 0.84

e.Training/development an integral part ofperformance evaluation

2.870.92

3.86 0.53

f.Development of all employees to closeskill gap

3.070.70

4.00 0.56

g. Training to meet future needs 3.20 0.77 3.86 0.36h. Training to meet current needs 3.73 0.59 3.93 0.73i. Promotes continuous learning 3.13 0.83 3.93 0.89


Notes: 1 = Little or No Extent; 2 = Some Extent; 3 = Moderate Extent; 4 = Great

Extent; 5 = Very Great Extent

Table 4.Methods of training/development

Company A(N = 15)


Mean SD Mean SD

a. Orientation program 3.40 1.12 4.07 0.92b. Job rotation 2.80 1.08 3.43 0.64c. On the job training 3.79 0.97 4.00 0.55d. Off the job training 2.79 1.18 3.50 0.76e. Multi-skilling 2.13 0.83 3.57 0.65f. External training 2.73 1.16 3.57 0.65g. Special projects 3.13 1.13 3.79 0.80

h. Competency-based training 2.93 0.83 3.64 0.84i. Specialized skill training 3.20 0.77 3.50 0.76j. Cross function training 2.93 0.88 3.50 0.76k. Coaching/mentoring 2.87 0.92 3.57 0.76l. Soft skills training 2.79 1.05 3.64 0.63





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Interview findings: Company AAfter the companys restructuring in 1999, all training/development functions

of their executives and non-executives was fully devolved to the Strategic

Innovation Department (SMI). They are responsible to provide training/

development for executives, operators and technicians. They work very closely

with other line managers. As required, the respective departments will submit

the list of staff that needs to be trained and SMI will arrange training schedule

and program. This is to ensure that their staffs are multi-skilled. After the

staffs training, SMI also conducts theoretical assessment test and hands-on test

to assess the staff.

The following comments were made by HR Manager, AdministrativeServices Department and the Senior Manager Training and Development

Strategic Innovation Department, describing their training/development process:

Our training programs were based on our organizational strategy. It is top down

because whatever we want to strategize for the next 6 months has to be based on

our overall organizational strategy. We will come up with our training/

development strategy map which has to be integrated with the overall

organizational strategy. For our new automotive production, our Engineering

Department will have to identify what kind of engineer and knowledge they

require. Since automotive production is of high quality, the department will

identify those experienced engineer to be send to Japan for training. A part from

utilizing our current staff, we will have to recruit new engineers to replace the

engineers that were end to Japan.

We will also get the support from our parent company in Japan for their

engineers to come here and assist us with the setting up and training. For new

operators and technicians, they have 5 days of training which is equivalent to 40

hours of training prior sending them to the production lines. Additionally, the

line mangers will have to endorse before they goes to the production line. We

have our yearly training schedule which is compulsory to all the staff of which

everyone will have to fulfill. A part from that, the departments can also request

their staff to be trained. We also keep the data of their training records to ensure

that they comply with the training requirement.

We do our own TNA and work closely with SMI. We have discussion with SMI

and provide training inputs to them. Sometimes we will request training to Japan

e.g., when we have new production lines where we require specific skills whichare not available here. We have to continue training our staff to be multi-skilled,

productive and efficient. We cannot keep on recruiting because we need to

control our labor cost in order to be competitive.

In answering to the questions on the methods of training for executives and

non-executives, The Manager Strategic Management Innovation Department

said:


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We have Off Job and OJT training which is a combination of theory and

practical training. We are now embarking on multi-media and e-training. We

also have individual competency based training. If their performances are low,

we will find out the problems and we will coach and monitor their performance.

Our aim is to create the high potential. Those high potential will be recognized

by promoting them or training them overseas.

I have attended quite a number of training/development programs ever since with

the company. The staffs have better opportunities to be trained either locally or

overseas. Some of our operators and technicians have been trained in Japan. We

attended Off Job and on the job training. As part of our annual training program

we are also required to attend computer training, statistical tools training and

also the motivational and leadership training. When I first joined the company, Ihave to attend our induction program and training programs for operators prior

going to the line. In early years our training program was not systematic.

However, with the establishment of SMI our training/development becomes more

organized and there are more training opportunities for the staff.

Interview findings: Company BIn contrast to Company A having fully devolved their training/development

functions for executives and non-executives to a separate department, Company

B Corporate HR Department handles the training/development for their

executives staff. However, the training/development for non-executives staff

was fully devolved to the HR Manufacturing Department. For the executives

training/development programs, Corporate HR will do the overall trainingneeds analysis (TNA) which is base on the companys mission plan and staff

development plan. From there, Corporate HR will generate the courses for the

year and also through the recommendations from the line managers.

The following comments on the training/development process for the executives

and non-executives were made by Assistant Manager, Training and

Development Corporate HR and Manager, Training and Development

Manufacturing Department respectively. Their comments were as follows:

Apart from the common courses they also design the target base courses e.g.,

mission plan base i.e., the management staffs have to do benchmarking. Now, the

trend is you have to benchmark with others to know where you are. So we have toconduct the course on strategic benchmarking. Let say in their mission plan they

specify that they need to reduce the cost since it is one of the main issue of the

company. So we will have to come up with courses that link to the organizational

goals. Everyone has the chance to be trained. Our plan is to cater for everyone,

depending on what kind of training that is useful to them. Some of the training is

just specific for certain management staffs, e.g., like value engineering, which the

purpose is to make the product cheaper and efficient. In this case it involves

certain group like the research and development (R&D).


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We do our own TNA here and determine the kind of training required for our

staff in particular the non-executives staff i.e., operators and technicians. We

have classroom training, OJT and Off Job training. The staff will also be on

rotation to make them become multi-skilled. After the orientation program

conducted by Corporate HR, the new recruits will be deployed to the factory. At

the factory, they will be trained for two weeks before working on the production

line. They will also be placed on a buddy system. The training is planned

according to schedule. We also have the license system to determine whether a

person is eligible to do such process or not. Depending on what they have been

trained and what skill they posses, that will determine the kind of job they are

going to perform. Only those who are qualified can perform the job

The Executive Director, Manufacturing Department was also asked on the

training/development process of their manpower, he emphasized on the

importance of training/development which indicates his commitment on the

importance of training:

I really emphasized on the importance of developing our manpower. The No.1 is

how to basically skill up our people. Like it or not, we have to continuously to be

competitive. Therefore, we have to reduce defects, loss time due to machine

breakdown, cycle time improvement, improvement on productivity and quality.

We have to constantly improve, so we allocate a lot of training to develop the

skills level of our staff. We also collaborate with our local university to train our

supervisors on a six months course and also we have overseas training program

to Japan.

Company B develops their employees both through internal and external

training. They have OJT, Off JT, job rotation, as well as classroom training to

name a few. They believe these developmental practices as the key to their

better product quality and labor productivity, hence contributing to the overall

organizational effectiveness. As part of their training/development programs,

every year the company send 20 over staffs to Japan for the off the job training.

They include operators, supervisors and leaders specially selected for the 2

months off the job training.

Perceptions on value-added contribution of SHRM towards organizational

effectivenessIn order to measure the perceptions on the value-added contribution,

respondents were asked to indicate to what extend does the combinations of

strategic HRM practices (recruitment/selections and training/development)

contribute to the overall organizational effectiveness. The results on the overall

assessment of perceived organizational effectiveness as shown in Table 5

indicates the average mean score for Company A and Company B was (3.63)

and (4.02) respectively.


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Table 5.Value-added contribution of SHRM towards organizational effectiveness

Company A(N = 15)


Mean SD Mean SD

a. Improvement of the turnover rate 3.20 0.94 3.86 0.53b. Improvement in the absenteeism rate 3.67 0.90 4.00 0.39c. Improvement in skill development 3.53 0.83 4.07 0.62d. Improvement in employee productivity 3.37 0.70 4.21 0.42e. Improvement in product quality 3.93 0.80 4.00 0.39f. Improvement in organizational growth 4.07 0.70 4.07 0.47

g. Increase in return on investment 3.67 0.90 3.93 0.27h. Improvement in profit 3.60 1.06 4.00 0.56




The top three items with the highest means score for Company A were:

improvement in organizational growth (4.07); improvement in product quality

(3.93); and improvement in absenteeism rate. In contrast, the top three items for

Company B were: improvement in employee productivity (4.21); Improvement

in skill development (4.07); and improvement in organizational growth (4.07).

Generally, the results for both companies could broadly indicate that theirSHRM practices lead to value-added contribution towards organizational

effectiveness.

Interview findings: Company A and Company BAs to strengthen the questionnaire findings and in order to get cross-section

views on the perceived value-added contribution of HR, several executives from

HR and line management from both companies were asked for their comments

on HR contribution towards organizational effectiveness. Their comments were

as follows:

We can measure the value added contribution of our training/development. The

staff will have to apply what they have learned from their training. Everydepartment will come up with their project and from the project they will have to

proof their contribution from their earlier training. At the end of every month we

will be able to see the desired result against what they have achieved. We have

presentation and reflection every six months. We will fine tune and try to achieve

what we have set earlier (Senior HR Manager, Administrative Services

Department).

Personally, I felt our training/development lead to better organizational

effectiveness. You can measure from their competency and the assessment after


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training. Certainly with training/development intervention, productivity and

quality improved, less rejection, lead time becomes better and therefore will

contribute to the bottom line that is profitability of the company (Manager,

Engineering Department).

Undeniably, HR contributes to organizational effectiveness. By having the right

manpower it will lead to productive and efficient workforce which contributes to

the bottom line. Continuous training will help to upgrade the skills of our

manpower. Another important role played by HR is to ensure that the staffs are

motivated, better working environment and reward the staff fairly. Because when

the staffs are not motivated to work it will certainly affect our bottom line.

Resulting in higher absenteeism rate, higher wastage rate hence, will affect our

profitability (Senior Executive, Corporate HR Department).

The interview findings with the Senior Manager, Training and Development of

Company A on the perceived value-added contribution of HR towards

organizational effectiveness assert that before the introduction of Six Sigma

methodologies, they are not able to measure HR value-added contribution.

However, now he believes that HR can quantify their contributions through

their key performance index (KPI) on their HR activities. In addition through

the strategy map they have to come up with projects and activities that will

contribute to the organizations bottom line. E.g., of projects were: staff

attendance, health management, waste management, and training of staff, cost

of poor quality (COPQ) in terms of soft and hard saving due to potential loss.

From these projects they are able to quantify the value-added contribution

though may not be as tangible as the production.

Another notable interview finding on the importance of HR contributions

towards organizational effectiveness were stressed by the Executive Director,

Manufacturing of Company B. He noted that apart from other contributing

factors, all human resource functions contribute. Similarly, he believes strongly

that the recruitment/selection and training/development functions are very

crucial to the organizational effectiveness. He further stressed that they cannot

rely on machine to turnaround the company. In his opinion, if the line managers

say that HR is not important, than he would like to say that he is not fit to be a

line manager. Giving his practical analogy, he asserts even in sports we require

good HR, likewise even in gangsters activities. He strongly believes thateffective recruitment/selection and training/development play a big role in their

companys productivity and skill development. Generally, this study has shown

that strategic recruitment/selection and training/development as practiced by

both companies contribute to overall organizational effectiveness. Their

practices can be characterized by the effective manpower recruitment/selection,

well trained manpower and integration of HR functions with the business/

corporate strategy.


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Summary of Key Findings and ImplicationsSome of the key findings and implications that may provide some insights and

practical implications to HR managers and line managers include:

HRM is practiced as integral to firms strategic processes and viewed asa source contributing to organization profitability as opposed to cost of

production.

HR policies are an important aspect of organizational effectiveness,however numerous other factors must also be taken into consideration.

Recruitment/selection and training/development are integral part of HRstrategy and are linked with the overall business/corporate strategy.

Basis of calculating manpower requirement will depend on keyperformance per manpower.

Strategic HRM practices embedded in the organizations HR systemhave a significant influence on production quality, development of

organizational capabilities and effectiveness.

Organizational effectiveness is influenced by the existence of their HRpolicy which encourages effective selection and continuous internal

development.

Evidently, organizations which better combine their HR practices tocreate and develop strategic human resources have contributed to

overall organizational effectiveness.

The underlying assumption of SHRM is that organizationaleffectiveness is influenced by a set of systematic HR practices.

Strategic HRM effectiveness correlates positively to organizationalperformance.

Discussion and ConclusionsThe questionnaire and interview findings indicated that both Company A and

Company B facilitate the recruitment/selection practices by placing a greater

emphasis on the applicants and organizational fit as crucial criteria in their

selection practices. They consider the importance of personality, versatility, and

characteristics of the candidates that may assimilate with their organizational

policy and culture. The screening of potential applicants will ensure that thesuccessful candidates will be able to adapt in well with the team work values

and culture as practiced by both companies. Evidently, apart from other factors,

the interview findings with managers from both companies believe that product

quality and organizational effectiveness cannot be achieved without the right

manpower, well trained and teamwork among members of the organization

Additionally, they indicate that the potential applicants must have the

ability to learn as generalists in view of the broad job structure, cross-functional

activities and the job rotation assignments at the shop floor which require


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multifunctional sills. Mid-career recruitment among the two companies is used

only when vacancies cannot be filled internally and when they have to source

externally for applicants with working experience especially for higher

managerial and critical positions. To ensure effectiveness of their recruitment/

selection activities, their HR managers work closely with line managers in

selection decisions taking into consideration applicants trainability, required

skills and competency. They believe that recruitment/selections add value and

play a crucial role in ensuring organizational effectiveness because applicants

differ in their characteristics and capabilities in their contribution to the

organization.

On the importance of training/development, both the companies recognizethat by providing formal and informal training/development had contributed to

their overall organizational effectiveness. The interview findings have shown

that managers and line managers viewed training/development as crucial to

organizational competitive advantage, hence, their commitment to investments

in their training/development activities. The companys commitment and

emphasis on continuous training/development is an indication of how the

company values its human resources and ensuring that the organization has

adequate manpower supply that matches with organizational need. Notably,

both companies invest heavily in training/development either for succession

planning or for new product transfer requirement. They conducted HR planning

system, performance appraisal and training need analysis (TNA) on all the staff

to ensure their organization has accurate manpower forecasts and adequatesupply of the required talent to meet current and future organizational needs.

Their employees were trained with the skills required to perform their

work competently and tries to develop employees technical and managerial

capabilities through a variety of on the job training programs or through their

external training programs with their parent company in Japan. For instance, the

training/development attachment in Japan either for replacement or retraining

may take around one month to six months. Other than as part of exposure and

continuous training/development programs, additionally, the training in Japan

will partly depend on product transfer in view of relocation or expansion,

changes or improvements on production methods and also the acquiring of new

technology. The importance and commitment of HR and line managers on

devolution of HR functions to the line lead to effective coordination andimplementation of their training/development programs. They emphasize closer

cooperation across departments to encourage intensive and continuous job

rotation and cross-functional skills. Evidently, this was done systematically and

effectively which enable their staff to learn a wide range of skills and this has

significantly contributed to their overall organizational effectiveness.

Generally, their systematic and comprehensive recruitment/selection and

training/development are an important aspect leading to overall organizational


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effectiveness, however, not discounting other factors that must also be taken

into consideration. Predictably, other distinctive features of Japanese

management system (JMS) i.e., flexibility of organizational structure, employee

empowerment, a broadly defined job, strong employee commitment, strong

team-work, management process, work systems and approaches participative

decision making and the integration of HR strategy with the overall corporate

strategy has contributed significantly to the overall effectiveness of their

organization. One of the key contributions of organizational effectiveness for

these two companies practices leading to better organizational effectiveness is

the strategic integration of their HR practices into strategic decision making at

the corporate level supported by their systematic and comprehensive HRsystems embedded in their overall organizational practices.

Overall, this study benefitted from the mixed-methodology design of

qualitative and quantitative approaches, it is nevertheless vulnerable to some

potential weaknesses. Among the limitations of this study were on the issue of

subjectivity, the relatively short period of time to objectively analyze

organizational effectiveness and the focus of this paper which only examined

two key HRM functions, whereas there are other important factors that were not

addressed in this paper. Hence, the findings on the overall organizational

effectiveness should be treated with caution in view of the other contributing

factors which also contribute to the overall effectiveness. Nevertheless, the

findings have shown that their strategic recruitment/selection and

training/development approaches embedded with its management process andwork system undeniably contributed to the overall effectiveness of the

organization. Though not meant to be conclusive, these findings similarly add to

previous research that has contributed to enhancing the importance of strategic

HRM practices towards organizational effectiveness. In addition, the use of

multiple respondents helped to minimize the self report biased hence enhanced

objectivity of the findings. Significantly, this study can be used as a base for a

more comprehensive study in Malaysia and for further international studies. It is

nevertheless hoped that a more in-depth research in this area particularly

looking at objectivity and quantifiable measure on the cause and effect of

strategic HR practices should be carried out as to contribute to the accumulation

of knowledge in this critical and yet unresolved issues impacting on effective

implementation of SHRM.The overall results of this study have shown similarities with past findings

and support the notion that strategic recruitment/selection and training/

development approaches correlates positively with organizational effectiveness.

Consistent with the past studies and theoretical propositions, this study also

shows that organizations which have systematic management practices of its

HRM practices to create and deliver strategic human resources have shown

value-added contribution towards their organizational effectiveness. Evidently,


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the findings of this study have shown similarities with past findings. This study

provided support for the argument that HR complimentary practices are

important determinants of general perceived organizational effectiveness.

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Further reading

Armstrong, M. (1991), A handbook of personnel management practice, (4th Edition), London,

Kogan Page.

Chew, I.K.H. and Chong, P. (1999), Effects of strategic human resource management on

strategic vision,Journal of Human Resource Management, Vol. 10 No. 6, pp. 1031-45.

Foong, Y. P. and Richardson, S. (2008), The perceptions of Malaysians in a Japanese

Company, Cross Cultural Management: An International Journal, Vol. 15 No. 3, pp.

221-243.

Hashimoto, M. (1990), The Japanese labour market in a competitive perspective with the United

States, Kalamazoo, MI: Upjohn.

Koike, K. (1984), Skill formation systems in the US and Japan: a comparative study in Aoki,

M. (Eds.), The Economic Analysis of the Japanese Firms, Elsevier Science Publishers

BV (North-Holland) New York, NY.

Marsh, R. and Mannari, H. (1976),Modernization and the Japanese factory, Princeton University

Press, Princeton, NJ.

Nakamura, K. and Nitta, M. (1995), Developments in industrials relations and huma

Documents

Human Resource Thesis