The Future HR Development in Manufacturing Sector of Penang

1. The Future Possibilities of
HRD in Electronic Sector
Laurence Yap M.A.
[Senior Manager]
Human Resource Development

2. Our Only Competative Edge is to
Learn Faster than Our Competitors

3. WIIFM?
• Training and HR Profession – Broaden
your understanding of in training, OD and
Career Development
• Functional Managers – Propose your HR
Department to experiment these activities
• Senior Managers – Recruit HR/Training
personnel who can carry out these
activities

4. Meaning
• To materialize 2020 as Industrial nations,
HRD is the key factor
• For Malaysia to compete with the world,
HRD can contribute in OD, Training, and
Career Development
• To become a high performance company,
HRD has the capabilities to develop
workforce and organization

5. Agenda
1. Manufacturing and Semiconductor in
Malaysia
2. Current Status of HRD in Manufacturing
3. Training Trends in US and Malaysia
4. Future Possibilities of HRD
Training, OD and Career Development
5. After Thought: PSMB and HRD
Network

6. I. Manufacturing in Malaysia
Background

7. Background
• The electronics industry is the leading sector in
Malaysia's manufacturing sector, contributing
significantly o the country's manufacturing
sector
• Output
29.3% or RM 167.2 Billion
• Exports
55.9% or RM 233.8 Billion
• Employment
28.8% or 296,870
29.3%

8. Malaysia's electronics industry:
a. Electronic Components
58.7% FDI 2008
38.4 % TOTAL electronics export 2008
Semiconductor
b. Consumer Electronics
c. Electrical

9. Semiconductor Sector
• Semiconductor devices, passive components,
printed circuits and other electronic components
such as media, substrates and connectors.
• The main export items were:
Digital monolithic integrated circuits (47.3%)
Hybrid integrated circuits (15.2%)
Non-digital monolithic integrated circuits
(11.8%)

10. Semiconductor History
• The semiconductor industry started in
1970's when the government then
embarked on a strategy to attract export-
oriented industries into Malaysia .
• From mere assembly and testing
operations such as metal-cam packages,
p-dip packages, and dip packages, the
industry has now moved into higher value-
added activities including wafer
fabrication and IC design.

11. R&D
Some semiconductor companies, especially MNCs
have undertaken R&D activities in Malaysia , either
in-house, jointly with local universities (UKM, USM,
UTAM and UM) or by outsourcing to local R&D
companies. Among the R&D activities undertaken
are in the areas of:
• Process and materials technologies;
• Advanced flip chip packaging development;
• RF module;
• Advanced test technologies development;
• Total packaging;
• Board design; and
• Simulation capabilities.
(Carsem Technology Center 2007)Source: www.miti.gov.my

12. IC testing and packaging companies
• Currently, the IC testing and packaging companies in
Malaysia are undertaking more complex packages, to
cater for demand which requires faster, smaller and
high computing power and multi functional chips.
Among the packages are:
• Organic land grid array packages;
• (OLGA packages);
• ASICs;
• Flip chips
• Ball grid array (BGA)
• Wafer level for IC integration;
• System on Chip (SoC);
• System in package (SiP); and
• Multiplayer packages (MLP) Source: www.miti.gov.my

13. In Operations
• To date, there are 63 companies in operation, producing
semiconductor services or undertaking semiconductor
related activities. Among these companies are:
• Wafer fabrication – 3 companies
(MIMOS, 1 st Silicon and Silterra)
• IC design – 20 companies
(mostly with MSC status)
• IC testing & packaging companies – 26 companies
(8 Malaysian – owned)
• Other semiconductor devices – 14 companies
Source: www.miti.gov.my

14. II. Current Status of HRD
Manufacturing Sector

15. Research Results
• DESIRABILITY AND EXISTENCE OF
HRD STRUCTURE IN MALAYSIAN
MANUFACTURING FIRMS
• Haslinda ABDULLAH, UPM

16. Methods
• The questionnaire was sent to all 2,135
manufacturing firms listed under
the Federal Malaysian Manufacturers (FMM),
with a response rate of 16.5%.
• A sample of 50 HR managers was selected
to participate in the interviews. The interviews
were used to solicit perceptions
and evaluations of the various dimensions of
this study.

17. HRD in Manufacturing Firms
• Human resource development (HRD) in
manufacturing firms in Malaysia is rapidly
gaining importance
• the Human Resources Development
Act, 1992 has been implemented
• 1% levy for manufacturing companies

18. 1. Separate HRD Section
(100% LSI vs 28,9% SMI)
• Only 44 (28.9 percent) of the 365
participating firms had a separate section for
HRD and they were all LSIs (100%)
The absence of a separate function for HRD in
the SMIs. Thus, this absence may impede the
fulfilment of organisational goals and objectives.
SMI combines the function with HR, Admin &
Finance or QA functions

19. LSI POV
“Our employees’ training and development is
really important to our top management, our
business and productivity. We believe that in
order to achieve business success, we must
have well trained employees, which would be
difficult without a separate HRD function…….”
(HR & Corporate Relations Director; Food, Beverage
& Edible Oils; LSI).

20. 2. HRD Section: 8 years average
• Most of the HRD sections were first established around
the mid 1990s (HRDF policy)
• In this study, the majority of the remaining firms (65.9
percent) indicated that their HRD sections had been
established for between 5 and 14 years. In addition, 29.6
percent of the firms had HRD sections that had been
established for less than 5 years.
• The minimum number of years for which these sections
had been in operation was two years and the maximum
was 20, with an average of 8 years.

21. Lack of HRD Skills
It can be deduced that HRD practice in the
manufacturing firms in Malaysia is still not very
advanced in its development.
HRD practitioners may require specialized
education and training in HRD in order to
carry out structured and systematic HRD, rather
than merely providing
training to employees

22. 3. Labeling: Training Dept
• Only 18.2 percent of these departments are labeled as
“HRD” departments or units.
• More than half are called “Training” departments (55%)
• Surprisingly, a few of these organizations label their
• HRD units “Learning and Development” (15.9 percent)
• A few others are called “Employee Development and
Placement and Talent Development Unit” (6.8 percent).
The

23. The Role of HRD and labeling
merely about the provision of training rather
than HRD.
“I have been in this field for more than 10 years. I have
seen many changes in the terms, from ‘training’ to ‘HRD’
and now some fancy names……’Capital
Development?’…However, the basic concept is merely
training. Therefore, whatever term is being used, it will
mean the same…’training!’
(HR & Administration Manager; Concrete & Cement;
LSI).

24. Comments
1. Formulate Corporate Learning Strategies
2. Initiate organization development works

25. Nine Strategies
Focus on Performance
Solution
Align to Corporate
Objectives
Broadening
Learning Activities
Building Employee
Branding
Invest in Strategic
Learning
Leverage on our
intellectual capital
Partnership with Different
Business Unit
Cultivate Values and
Positive Culture
Speed up
knowledge transfer

26. OD Driven
26
OD Driven Business Sustainable Growth
Model
Process
Development
Organisation Development
Talent
Development
Productivity
Profit
Talent
Culture
Strategy Management
Team Development
Effective Org Structure
Engagement Culture
OD Interventions
Talent Management
Leadership
Development
Bench Strength
Training & Dev
Productivity
Innovation

27. HRD
Department
Structure
HRD
Training
Administration
( Chew )
Human Capital
Development
( Malar )
Frontline Employee
(Ros)
Lean
( KS Chew )
Technical
Skills
Development
(Chew )
OD
( KW Cheah )

31. HR + HRD Values :
1. Respect for People
Empathy and understanding
2. Integrity
Say what you do, do what you say
3. Customer-focused
Shows enthusiasm and knowledge of products and services
4. Continuous improvement
Be proactive, keeps up-to-date & promotes continuous
learning
5. Open Communication
Listens & responds constructively

32. 4. Weaker HRD Reporting Structure
• Almost half of the respondents (45.4%)
indicated that they report to the Human
Resource Director.
• Reporting to the Chief Executive Officer (CEO)
and the General Manager (GM) is also a
common phenomenon, which represents about
41.0 % of the total respondents.
• The remaining 13.6 % of the respondents
indicated that they report to the Board of
Directors and the Human Resources Manager.

33. Org 1

34. Org 2

35. 5. Fewer Training Centers
• Of the 365 participating firms, 122 reported that they
had training centres: 45.4 percent of these firms
were LSIs, while 24.9 percent were SMIs.
• in the USA, where specialised HRD departments
have been institutionalised into training centres
and HRD activities are often housed within corporate
universities or have university affiliation

36. Responses
• Separate of HRD functions
Pay more attention to SMI
• HRD Department (Only 8 years average)
Improve skills of Training Profession
PSMB sponsors learning events
• Labeling of Training
Expand the role from Training to HRD
OD work and Career Development

37. Responses
• Reporting Structure
Report to HR Director, COO or CEO
• Training Centers (45.4%)
Encourage training structure and
facilitates from grants,
HRDF or tax exemptions

38. III Training Trends in US
The Impact of Economy
Downturn

39. Impact: Global Financial Crisis

40. Bersin
Associates
2008
Research
July-August

41. Training Budge
• U.S. Training Groups Cut Budgets
Fell 11 percent over the past year – from
$1,202 per learner in 2007 to $1,075 in 2008.
• U.S. Training Groups Cut Staffing
The training staff ratios
SMI: from 7.0 to 4.9 staff for every 1,000
learners.
LSI: from 5.1 to 3.4 staff-per-thousand.

43. Comments
• Many electronics tied up with US market
• Expected cut budget and staff
(Penang vs KL)
• Unwise to cut HRDF levy 1% to 0.5%
Government should subsidized 0.5%
• Competitive market needs upgrading of
skills

44. Training Hours
• The average number of formal training
hours dropped from 25 hours per learner
in 2007 to 17.2 hours in 2008

45. Type of Programs (1)
Funding moved away from IT and
leadership development and toward
programs that are mandatory, on meeting
compliance requirements and on
improving skills that are highly specific to a
learner’s job.

46. Type of Programs (2)
Coaching programs have become especially popular
and are now incorporated into 30 percent of all training
programs.
Group and peer-to-peer collaboration are being
facilitated through social networking tools , such as
communities of practice , wikis and blogs . In fact, the
use of communities of practice doubled from 2007 to
2008, making this the fastest-growing segment of the
learning tools market today.

47. Types of Program (3)
• Combined with self-study and e-learning, the
total amount of online training dropped from
30 % of training hours in 2007 to
24 %in 2008.
• This is somewhat ironic, since many companies
originally turned to online learning to save
money on their classroom programs. But the
investments in learning technology, content and
internal staffing do add up.

49. Comments
• Less Soft skills and IT skills training
• Maintain Mandatory like Technical skills programs
• E-Learning are not received well yet (How do we
compete?)
• Formal coaching programs are not common on
Malaysia yet.
• Collaborative tools such as wikis and blogs are not
common yet (Developed nations)

50. | Our Challenges: The World Is
Changing |

51. IV Future Possibilities of HRD
Training & Learning
Organization Development
Career Development

52. A. Training and Learning
• Creative delivery of Training
Nano Training, Mobile Learning
• Management System
E-Learning
• Alignment to Department Needs
YB approaches, Vendor support
• Learning Culture
Benchmarking, Shared Learning (Book, Best
Practice), Internet research, Books and
Magazines

53. Mobile Learning

54. Nano Training
• Short Learning ( 1 hour)
• Lunch, Department Meeting, Coffee Break

55. Learning Management Sys

57. Align with Dept Needs
• Talk to Department heads about their
needs – YB
• Eg. HR, Production Control and Customer
services
• TNA
• Performance Consulting

58. Benchmarking
• Visit Kobe
about SDWT
• Visit Maxis,
Digi,
Motorola,
Pfizer and
Sime Darby

59. Maxis: Academy Center

60. Kobe: Benchmarking SDWT

61. Knowledge Network
HRD Best Practice Sharing
23rd
May 2009 Wisma PSMB

62. Sharing by Participants

63. B. Organization Development
• Organization Effectiveness
Strategy Planning, Organization Design,
Team Collaboration, Facilitation Change
• Cultural Development
Values, Leadership Development, Positive
Mindset
• Work Process Interventions
Lean Manufacturing, TQM’s Small Group
Activities

64. Lean Manufacturing

65. C. Career Development
• Competency Development
• Talent Management
• Succession Planning
• Coaching and Mentoring

66. AMA Management Competency Model

67. Future Managerial Skills
• What are the skills and competencies
of future Managers in Manufacturing?
Positive Mindset
People Skills
Facilitation Process
Learning and innovative (Informal
Learning)
Business Acumen (MBA)

68. Growth of HRD
Shared Learning Team
Upgrade Training function to
HRD

69. Role of PSMB
Consulting, Resource
Center & HRD
Functions

70. Summary
1. Manufacturing and Semiconductor in
Malaysia
2. Current Status of HRD in Manufacturing
3. Training Trends in US and Malaysia
4. Future Possibilities of HRD
Training, OD and Career Development
5. After Thought:
HRD/Training, PSMB