The Future Possibilities of HRD in Electronic Sector Laurence Yap M.A. [Senior Manager] Human Resource Development
The Future Possibilities of HRD in Electronic Sector
Laurence Yap M.A.[Senior Manager]
Human Resource Development
Our Only Competative Edge is to Learn Faster than Our Competitors
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
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
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
I. Manufacturing in Malaysia
Background
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%
Malaysia's electronics industry:
a. Electronic Components
58.7% FDI 2008
38.4 % TOTAL electronics export 2008
Semiconductor
b. Consumer Electronics
c. Electrical
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%)
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.
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
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
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
II. Current Status of HRD
Manufacturing Sector
Research Results
• DESIRABILITY AND EXISTENCE OF HRD STRUCTURE IN MALAYSIANMANUFACTURING FIRMS
• Haslinda ABDULLAH, UPM
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.
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
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
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).
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.
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
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
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).
Comments
1. Formulate Corporate Learning Strategies
2. Initiate organization development works
Nine Strategies
Focus on Performance Solution
Align to Corporate Objectives
BroadeningLearning Activities
Building Employee Branding
Invest in Strategic Learning
Leverage on our intellectual capital
Partnership with Different Business UnitCultivate Values and
Positive Culture
Speed up knowledge transfer
OD Driven
26
OD Driven Business Sustainable Growth Model
Process Development
Organisation Development
TalentDevelopment
ProductivityProfitTalent
Culture
Strategy ManagementTeam DevelopmentEffective Org StructureEngagement CultureOD Interventions
Talent Management Leadership DevelopmentBench StrengthTraining & Dev
ProductivityInnovation
HRDDepartment Structure
HRDTraining
Administration( Chew )
Human Capital Development
( Malar )
Frontline Employee(Ros)
Lean( KS Chew )
Technical Skills
Development(Chew )
OD( KW Cheah )
HR + HRD Values :1. Respect for People
Empathy and understanding
2. IntegritySay what you do, do what you say
3. Customer-focusedShows enthusiasm and knowledge of products and services
4. Continuous improvementBe proactive, keeps up-to-date & promotes continuous learning
5. Open CommunicationListens & responds constructively
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.
Org 1
Org 2
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
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
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
III Training Trends in US
The Impact of Economy Downturn
Impact: Global Financial Crisis
Bersin Associates
2008 Research July-August
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.
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
Training Hours
• The average number of formal training hours dropped from 25 hours per learner in 2007 to 17.2 hours in 2008
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.
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.
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.
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)
| Our Challenges: The World Is Changing |
IV Future Possibilities of HRDTraining & Learning Organization DevelopmentCareer Development
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
Mobile Learning
Nano Training
• Short Learning ( 1 hour)• Lunch, Department Meeting, Coffee Break
Learning Management Sys
Align with Dept Needs
• Talk to Department heads about their needs – YB
• Eg. HR, Production Control and Customer services
• TNA• Performance Consulting
Benchmarking
• Visit Kobe about SDWT
• Visit Maxis, Digi, Motorola, Pfizer and Sime Darby
Maxis: Academy Center
Kobe: Benchmarking SDWT
Knowledge NetworkHRD Best Practice Sharing
23rd May 2009 Wisma PSMB
Sharing by Participants
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
Lean Manufacturing
C. Career Development
• Competency Development• Talent Management• Succession Planning• Coaching and Mentoring
AMA Management Competency Model
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)
Growth of HRDShared Learning TeamUpgrade Training function to HRD
Role of PSMB Consulting, Resource Center & HRD Functions
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 Development5. After Thought: HRD/Training, PSMB