Introduction to HRM

Definition HR Management
A formal systems in an organization to ensure effective and efficient use of human talent to accomplish organization goals.

HR Activities

1. strategic HR management
2. equal employment opportunity
3. staffing
4. HR development
5. compensation and benefits
6. health, safety, and security
7. employee and labor relationship

Management Of Human Capital In Organization

1. Human Capital - collective value of capabilities, knowledge, skill, life experience and motivation
2. Core Competency - a source of competitive advantage

HR Management Challenges

1. Globalization of business
2. Economic and technology change
3. Technological shift and the internet
4. Workforce availabilty and quality concern
5. Workforce demographics and diversity
6. Organizational cost pressures and restructuring

HRM Roles

1. Administrative roles - clerical and administrative
2. Operational and Employee Advocate Role - employee concerns
3. Strategic Roles - contribute at the table to the organizational result

1997 Financial Crisis ( Cause and Effects) on current Malaysia Economy

Causes of Crisis


Actually many signs can be found before crisis, and many economists have contributions on it. After collecting all the information, I have the following conclusion of the causes of Crisis:

1. Strong demand pressures

The pressure which is from increased investment and consumption have raised external current account deficits and put pressure on domestic prices. In Malaysia, the strain has been felt most sharply in the current account, where the deficit has risen quickly from 4% of GDP in 1992-93 to over 8% of GDP in the past years.

2. Economic Growth above Potential Output.

Since 1991, the economy has been consistently growing above what is treated as its potential growth path. When actual and potential GDP are equal Zero, the output gap is zero. The output gap increased during 1994-96, as actual GDP grew faster than potential GDP. This has generated price pressures. It is a greater cause of concern when a significant proportion of these inputs (both capital and labor) was imported.

3. Raising current account deficit.

The deficit in the current account corresponds to the saving-investment gap. Despite having one of the highest savings rate in the world, Malaysia ran into current account deficit problems because of its high investment rate.

The current account deficit was only partially financed by net long-term capital inflows for some of the years. At the same time, reserve investments have steadily increased from RM 4.0 billion in 1993 to RM 11.4 billion in 1996, and increase of 2.8 times. Malaysian investment overseas in 1997 was estimated at RM 9.9 billion.



Effects of Crisis

The economic crisis has affected the economy of Malaysia a lot. The following I will present the effects of the crisis:

1. Enhance Malaysia's competitiveness.

Because of ringgit depreciation, Malaysia's competitiveness has been enhanced after taking into account the combination of the currencies of Malaysia's trading partners and correcting for inflation among the countries.

Malaysia's real effective exchange rate has declined starting from July 1997. This means that Malaysian goods are relatively cheaper and more competitive than its trading partners. With cheaper ringgit, exports grow faster than imports, which help to reduce the size of the current account deficit.

2. Increase in domestic prices.

It is the result of rising costs of imported intermediate goods. Rising consumer prices will also cause real household income and real wages to fall.

3. Proportionate increase in the value of external debt exposure for foreign debts denominated in foreign currencies.

4. Deceleration in the growth of domestic private investments.

5. Economic growth rate will continue to worsen if the exchange rates worsen or continue to remain unstable.

Where Us Stepe A Water Sprung

Where us stept a water sprung,
to leaf and green and goose crept round,
and eyed us, with a soft grog, grog,
and a nodding,
each one big as a swollen dove,
with a hatching spot on the breast.

Us saw the speckled egg,
unhidden for the taking.

Then horses low and red,
came slow for us to ride,
neck outstretched for hands,
eye cast down and soft,
and nuzzled forth and bent for us to climb.

Fire at night closed us round,
with creatures us once tamed or killed,
and now would live among.

If Every Time

I'll never forget the way you looked,
When I saw you there that night;
The way that you just seemed to glow,
In the warm and gentle light.

If every time you crossed my mind,
A drop of rain should fall,
We could swim on forever,
In the greatest ocean of them all.

If every time I was proud of you,
A flower bloomed anew,
I could walk on eternally,
In a garden next to you.

If every time I craved your lips,
A star was placed in sight,
Darkness would never fall upon,
Our love of endless light.

If every time you touched my heart,
A bell would somewhere chime,
We could listen ‘till the end of days,
To the music that’s yours and mine.

My love and heart are yours…Every time.