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