Saturday, February 14, 2009

Example of Management Failure by DEPUTY MINISTER OF HUMAN RESOURCES MALAYSIA

SPEECH BY YB DATUK ABDUL RAHMAN BAKAR
DEPUTY MINISTER OF HUMAN RESOURCES MALAYSIA
AT THE CATTLEYA 1, PARK ROYAL KUALA LUMPUR

30TH OCTOBER 2007 (9.00 A.M)

Assalamualaikum and good morning to all of you. Thank God for giving us this opportunity to be present here and to assure this conference will educate and benefit to us successfully.

Ladies and Gentlemen,

Management usually consists of people who are experienced and expert in their field, and who have worked their way up the company. In simple sense, every company has their own human resources. Human Resources management means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements.

Personnel management is a responsibility of all those who manage people as well as being a description of the work of those who are employed as specialists. It is that part of management which is concerned with the people at work and with their relationships within an enterprise. It applies not only to industry and commerce but to all fields of employment. Personnel management is a responsibility of all line managers in an organization, such as general manager, production manager, marketing manager, finance manager, etc., and it is a staff function, i.e., it is the function of personnel manager who is appointed as a specialist.

All managers in the organization are aim to achieve organizational goals through other people’s efforts. Human resource management is a part of management. This part is concerned with the people and their relationship within an organization. A manager must be obeyed. A manager may only have obtained his position of authority through time and loyalty given to the company, not as a result of his leadership qualities. A manager knows how each layer of the system works and may also possess a good technical knowledge. The main aim of a manager is to maximize the output of the organization through administrative implementation.

There are a number of factors which differentiate between success and failure. There are some factor that make management failures:

The most is from an employee who is difficult to manage can make your organization absolutely miserable. They can be every bit as disruptive to the forward progress of your company as an employee who lacks the skills or initiative to do the job well. Often there is some issue that is causing the negative behavior he or she is exhibiting. Many times employees will be very reluctant to discuss these issues, whether they are professional or personal in nature. A casual, relaxed setting may put them at ease. They may open up and tell you what’s really bugging them. They may have the perception that they are not appreciated. They may feel they have not been complimented adequately for work well done. They may feel they deserve more attention. Remember, you should always be liberal with compliments. Key employees especially need attention from you. But this is advice that is easier to give than heed.

On the other hand, sometimes a difficult-to-manage employee’s behavior is the result of personal problems—an ailing parent, a runaway child, a divorce, or financial difficulties. In this case, you want to show that you understand the predicament. If at all possible, offer the employee time off or an adjustment in work hours so that he or she can focus on resolving the personal dilemma. However, if the problem is of an ongoing nature and is having a serious negative impact on your workplace, you need to let the person know that some sort of resolution is imperative such as have a formal, closed-door meeting with the employee and address the most obvious examples of his or her inappropriate behavior in a forthright manner. If an employee remains difficult despite all attempts at building rapport or providing help, you need to make a careful assessment. If the employee is truly exhibiting behavior problems that seriously disrupt the workplace; you need to take further action. Consider issuing a written warning that details the specific problems as clearly as possible. If, after issuing such a warning, the employee’s bad behavior persists, you may feel that the only solution is termination. Consult with an attorney before dismissing the employee. You need to know whether or not you have a strong enough case to withstand a potential lawsuit for wrongful firing. An employee who has been fired for issues relating to difficult behavior is much more likely to sue you than an employee fired due to poor work performance.

To ensure the success of a performance management system, managers have to devote a significant amount of their time to the process. Often the success or failure of a performance management system has less to do with the chosen metrics and templates used for managing the system, and more to do with the honesty and rigor used in the process.

All too often, performance management systems fail because they are either measurement systems, where little is done to interpret the results and take corrective action, or the system is simply delegated to the bottom drawer because it is cumbersome and managers have not bought into the process.

A well-designed and implemented performance management system will ensure that there is open and honest communication between all layers of the organization. It will ensure that managers have the authority to manage, while there is an assurance to their bosses that agreed levels of performance will be met. A good performance management system should focus not only on the achievement of a metric but also on the reasons behind the achievement or non-achievement of the metric in relation to a target. Performance Management implementation either succeeds or fails, based on whether the management buys into the process. If a robust change management process does not run alongside the process of implementing performance management, it is bound to fail. Complete management buy-in at all levels is crucial to ensuring the success of the system.

Ladies and Gentlemen,

For example, reducing Research and Development costs may bolster short-term performance but could have disastrous consequences for the business in the long term. When identifying the priority value drivers, it is important to take the following into account:* Will focusing on the driver have a material impact on business performance* Does management have control over the factors which influence the driver, or do the external environment and asset constraints prevent them from having a meaningful impact?* Does the driver have any unintended consequences, such as managing inventory levels to the detriment of customer service?* Is the driver sustainable, or is it a one time cost reduction or synergy? Once these factors have been considered, the important value drivers can be ranked in order of priority, appropriate value metrics can be assigned to the drivers and they can be cascaded throughout the organization.

Opportunities for employee development should be identified and implemented during the review process. The final consideration when designing and implementing an effective performance management system is to ensure that the top performers are adequately rewarded and recognized. Well-designed incentive schemes should differentiate between top performers and the rest of the organization

Ladies and Gentlemen,

Many people in both the public and private sectors are not aware about the importance of quality. Quality is the perception of superiority or a sense of appreciation by customers to satisfy their needs. It is perceived by different people differently. Organizations can apply several tools and techniques to improve quality. The popular among them are benchmarking, outsourcing, speed, ISO 9000 and statistical quality control techniques. Benchmarking is the process of searching the best practice among competitors that leads to superior performance. It is an evaluation and comparison of one's products and processes with the very best competitors. It is a very specific form of environmental scanning. Benchmarking involves looking at similar firms to understand how they have achieved the best performance levels. It helps to examine the process behind excellent performance. This helps organizations to develop the best practices to improve the performance level. Application of benchmarking involves: understanding in detail the existing business practices, analyzing the business process, comparing one's business performance with that of others and taking the steps necessary to close the performance gap. Outsourcing is the process of subcontracting some of the jobs to another organization to bring quality and get the benefit of specialization. It is an important means of reducing cost and improving quality.

Ladies and Gentlemen,

An organization performing each and every activity by itself may not be able to perform its activities efficiently and effectively. Increasing speed will give organizations a strategic advantage and help them to complete the task more effectively. Achieving a more productive workforce means three things:

I. improving labour utilization, so that more of us are working;

II. Improving workforce skills, so that we work smarter; and

III. Increasing the level of capital investment per worker, so that we get the best leverage from those skills.

Ladies and Gentlemen,

I am very glad that today, participants from various organization, levels and countries have gathered together to address this issue. I would like to urge all of you to use all chances that we have today to ask, seek advice and guidance, listen and learn to gain a better understanding on this related matter of human resource. I am confident that this conference will achieve its objectives and help you to improve people performance at your own organization. With that, In the name of God, most gracious and most merciful, I hereby declare the Performance Management Conference, open.
Thank you.

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Pejabat Timbalan Menteri Sumber Manusia, “Laman Web Rasmi Kementerian Sumber Manusia, Malaysia”, 30.10.2007, Malaysia>(12 February 2009)

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