STAGE 1990s – Human Resource Management (Industrial Relation)

STAGE 1990s – HUMAN RESOURCE MANAGEMENT

          After independence during 1960’s, Malaysia seems to have a lot of improvement in the aspect of political structure and economics. Malaysia’s economy was achieved an impressive growth rate and has to build stabilize industrial relation systems. During 1990’s Malaysia’s industrial relations system become more challenging and have to meet the level of globalization period that occur in the whole world. The good industrial relations system was influenced by the relationship of the employers and employees in one organization. Thus, to make the industrial relations system can give a positive impact towards Malaysia’s economy, employers try to develop a more systematic management of the source that exist to build a good system and to works out the influence of state intervening in Malaysia’s industrial relations system. Employers try to develop the good and effective system of Human Resource Management (HRM) to enable them to compete in the global market nowadays.

          Human Resource Management (HRM) is the best method developed during 1990’s to help people provide a better environment of management. The decision of developed the HRM can help to change the concept of personnel management which is only to focus on employer’s welfare. However, the existence of HRM will help to change the way of management so that it can focused on both party (employers and employees) and become a good strategy to achieve organization’s goal. HRM is help on how to manage the human resource to achieve the good strategic management in their organization. In HRM system, it is more focus to plan a strategic planning and not to solve the problem immediately by only the decision of the employers. Hence, through the planning process, the employer and employees will cooperate to solve the issue and build a good relationship between them. Besides, between the employee and employee relationship, the will have the spirit of teamwork and respect each other.

          Besides, HRM also build up by another external component apart from structure and strategy. HRM also influenced by the trade unions, the labor market situation and the legal system. In 1990’s industrial relations system was anyhow related to department that responsible to the right of employers and employees such as Malaysian Trade Union Congress (MTUC) and Congress of Unions of Employees in the Public and Civil Services (CUEPACS) and these departments will help to enforce law and regulation for Malaysia’s industrial relations system. HRM is good to be developing in every business and structure so that they can manage well on how their organization will work effectively.

          HRM also related on how to achieve an organization goal. The goal can be success if both employer and employees well cooperated to make it success. The most important component to achieve organization’s goal is the employee because they have the responsibility to produce the products under the employer’s supervision. In this situation, HRM help to provide good skill training. Besides, HRM also help employers in their process of recruitment of the employees. This way of management will help the organization to build a strong “culture” in their business. The strong “culture” will help organization to compete outside without lack of confident.

          HRM has three basic goals in order for it to be success. The first goal is dividing by two which are integrating HRM into an organization's corporate strategy and ensuring an HRM view in the decisions and actions of line managers. This point of view is related on how the upper management tends to manage well their organization such as when the process of recruiting, training, appraisal and compensation occurred. HRM will help the management to make a business that has higher production with the lower cost. Next goal of HRM is securing commitment through building strong cultures. Strong culture in one organization exists when there is strong relationship between people in the organization. Through this good relation, the organization will achieve the equal satisfaction on their quality, service and innovation. Apart from that, the HRM goal is also to achieve flexibility and adaptability to manage change and innovation in response to rapid changes consequent upon globalization. Through the HRM policies, the organization must able to meet the level of changes in world economics every day. The organization must make innovation to meet that level and their HRM system should be successful and have to measure the performance and achieve the goals.

          In 1990’s, there is the increasing interest in HRM in Asia include Malaysia. Malaysia’s industrial relations system is totally influenced by the developing of HRM. HRM has contributed many benefits toward industrial relations system in this modern era nowadays.  HRM help to manage employer and employees relationship, and change the unfair management of traditional personnel management. Employer and employees must have equal goals to have the equal satisfaction later.  Industrial relations in the past was focused more the outside issues compared to solve the internal issues within the organization. The trade union also exists to help the employees protect their right by the right way through the HRM policies. The declining of unionism opened the way for management to focus more on the individuals rather than collective issues. HRM is also very important to measure the organization behavior and management strategy.

          For the conclusion, HRM and industrial relations seems good and accommodate each other.  At present industrial relations seems to view HRM as its nemesis. Through HRM industrial relations system needs to open its doors to other social disciplines such as organizational behavior and psychology, industrial sociology with consequent attention to team work and new forms of work organization and this will help organization successfully achieve their goal.