1.0 Introduction

The company, Emporium Hock Kee Seng Sdn Bhd is one of the largest

hypermarkets in Kuala Terengganu. It was founded by the Chua family as a simple grocery

store in Kuala Terengganu in 1981. It’s headquarter is located in Jalan Sultan Ismail Outlet,

Kuala Terengganu. The key people to the success of Emporium Hock Kee Seng are the

Chua Family themselves, and CEO Chua Kok Leong (Figure 1).

Emporium Hock Kee Seng is operating under the retail industry. Its main competitor

are Mydin, Giant, Tunas Manja, and Sabasun. Its mission was to offer a wide range of food

and daily living products at prices so low that as many people as possible will be able to

afford them. As its reputation grew, so did its business. It retained this core principle even as

it expanding its business and invest another three outlets around Kuala Terengganu area.

Our group was interviewed with the Human Resource manager, Miss Siti Zubaidah

Alias in Emporium Hock Kee Seng, Gong Badak Outlet at 21th November 2014 (Figure 2).

Emporium Hock Kee Seng currently has around 130 employee in Gong Badak Outlet itself,

and 400 employees in total four outlets.

Emporium Hock Kee Seng was organized its organization chart into two main

department, which are Sales department and Account department. There are total six

executives within the Sales department: Security, Store, Advertising, Softline, Hardline, and

Supermarket respectively. While within the Account department have a total of four

executive: Treasury, Accounting, EDP, and Human Resource respectively. Every executives

are supported by their own supervisor and assistance supervisor respectively.

Some of the employee benefits that Emporium Hock Kee Seng employee receives

for working in Hock Kee Seng are employee insurance and discount when purchasing

company products. It also provides employee accommodation facilities for foreign employee

which near to the outlet.

Emporium Hock Kee Seng adopted three shift working schedule for Supermarket

employees, morning shift is from 9.30am to 7.00pm, night shift is from 1.00pm to 10.00pm,

and whole day shift is from 9.30am to 10.00pm. Every Supermarket employee has one off

day on every week, either is on Sunday, Monday, Tuesday or Wednesday.

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Figure 1: Organization Chart

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CEOMr. Chua Kok Leong

DirectorMr. Chua Kok Yong

Senior ManagerMr. Sim Chum Mooi Fa

Sales Department

Account Department

Assistance Sales ManagerMr. Lee Keng Sin

Security Executive

Store Executive

Advertising Executive

SoftlineExecutive

Hardline Executive

Supermarket Executive

Supervisor

Assistance Supervisor

Supervisor

Assistance Supervisor

Clerk

Driver + Storeboy

Artist Supervisor

Assistance Supervisor

Section Leader

Sales Assistance

Supervisor Supervisor

Assistance Supervisor

Assistance Supervisor

Section Leader

Section Leader

Sales Assistance

Sales Assistance

Human Resource Executive

EDP Executive

Accounting Executive

Treasury Executive

Supervisor Supervisor SupervisorSupervisor

Assistance Supervisor

Assistance Supervisor

Assistance Supervisor

Assistance Supervisor

Section Leader

Section Leader

Section Leader

Section Leader

Cashier ClerkClerk Clerk

2.0 Changes in the Human Resource function in Emporium Hock Kee Seng

The human resources practices in organisation differ from company to company.

However, there are several important human resources practise that should be practised in

order to support the organisations’ strategies. Those practises include analysing work and

designing jobs, human resources planning, recruitment of employees, training development,

employees’ compensation, and performance management and employee relations. The

human resources that Emporium Hock Kee Seng practises involving those components

stated above.

2.1 Analysing work and designing job

Due to the swift changes in the external factors such as the technology, and labour-

market conditions the characteristic and requirements of jobs in the organisations often

undergo changes (Durai, 2010). However, currently the company have one supervisor and

one section leader in each department, so the component for this involve the discussion of

these two managerial employees. These two employees discuss the detailed information of

the jobs, the way that the work will be performed and its related task. After the discussion,

they came out with one conclusion regarding the discussion topics. Then, they refer their

conclusion to their chief executive official. The CEO then finalised the content of job analysis

and job design for the particular position. This practise had been practised for a long time,

human resources manager that we interviewed also not sure how does it works before this

practise. But, I think that, all the jobs analysis and job design for each job was discussed by

the CEO and the managerial employees.

2.2 Employee recruitment

The second responsibilities of human resources was the recruitment. The recruiting

process before was only publication of job vacation in newspaper, handbill and banner. The

recruitment information will printed on the bottom section of the handbill that advertising the

promotion. For the banner recruiting method, this job vacancy information will be printed on

the banner during Ramadhan month. In this era of technology, this company also adopted

the use of online recruiting. This type of recruiting method increases the number of

applications and also significantly reduces the cost in recruiting.

2.3 Employee selection process

After the recruitment process is the selection process. The selection of this company

include the step of screening application forms, checking references and background and

finally only make the decision on whether to select the employee or not. The first step in the

selection process, screening applications. Although the company did post the job vacancy

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on certain website, the application of the jobs still need to fill in the hardcopy of application

forms and send it to human resources manager for selection. The second step for selection

was the checking the references. The application form required the applicant to provide

previous working experience, so the HR manager will contact the previous employer to ask

the performance and the working attitudes of the applicant. If the informations provided was

unsatisfactory, the applicant will be screened out. In contrast, if the requirement was fulfilled,

the applicant will be called for the interview session. The third step was the interview section.

The HR manager will interview the applicant solely to decide its suitability to the job. For the

case of selecting supervisor and other managerial employees, the CEO will interview the

applicant itself. The final step was the selection of the qualified employees. This selection

process was practised once the HR manager start working at this organisation.

2.4 Employee training programme

Following the selection was the training process. The training process only offer to

the cashier and before the employee start to work. Pre-employment training which is also

known as orientation should take into account not only skills to be provided but also training

and development required at the level of personality (Deb, 2006). The HR manager will carry

out training for the new worker regarding the cashier and throughout the managing process,

the manager will evaluate whether the new worker suit the job or not. If the worker was

determined to be not suitable to become cashier, the HR manager will position the new

worker to other department such as frozen department. The training programme also didn’t

updated annually and was using the developed training programme. The reason for this

might due to that the required ability for cashier was still the same as previous year.

2.5 Employee compensations and benefits

For the employee compensations and benefits, the company had the employee

annual leave that compliance to Employment Act 1955 (myGovernemnt, 2014) that is for

employee that working for 2 years and below will deserved the 8 days of annual leave with

paid, employees working between 2-5 years, they will have 12 days of annual leave with

paid, while for employees that worked for more than 5 years will have 16 days of annual

leave with paid. The company also currently providing the medical card that allow the sick

employees to have claims of RM 25 per claims (Figure 3 & 4). In addition, the company also

provide Kumpulan Wang Simpanan Pekerja (KWSP) and SOCSO to all the employees. In

addition, the company also provide the monthly and annual incentives with certain amount

depending its positions to all the worker. This incentives provide rewards to employees that

are performing well. In contrast, incentive also act as the performance management in which

the amount of incentive will reduce a certain amount when the employee did not follow the

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policy of the company. For example, a reduction of 20% from the amount of incentive when

employee that did not obey the company’s policy once. The compensation policy indeed

improve the employees performances compared to previous years.

2.6 Employee relationship

In managing the relationship between the employees relation, the company will policy

that concern about the safety of employees, signing contract with employees and policy to

solve employee conflicts. The company have policy regarding safety of employees in that

the employees cannot carry merchandise that was too heavy in order to avoid the

employees get hurt. The company have policy to sign contract with new worker in promising

the worker will working with the company 6 months without leaving the company. When

there was conflict, the HR manager will getting information about the conflicting issue from

the supervisor first then the HR manager will interview with the two disputing parties to

further understand the conflicts. This type of method of managing employee disputes is

known as open-door policy. The HR manager will then give warning letter to the fault party.

2.7 Compliance with law

The company HR management was strictly compliance with Employment Act 1955.

For example, basic paid for all worker was RM 900. The HR management support the

organisation’s strategies in which when there is a worker shortage, the HR manager will start

hiring new workers. However, the number of workers were constant from year to year since

the branch company at Gong Badak has no further development in this years.

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3.0 Issues and challenges that face by Emporium Hock Kee Seng

3.1 Lack of Local Worker

In Emporium Hock Kee Seng Sdn Bhd, there are several issues that is unavoidable and

must be face by them. First issues is lack of local worker. This problem was caused by the

variety of competitor’s company, for example, Giant, Mydin, New Mydin mall, Tunas manja,

that operate near to Emporium Hock Kee Seng that cause less local worker to work for

them. With all the competitors, local worker are drawn by them to work in different company.

Besides, the choice of local worker to work will also be influence by the geographical and

ease of transportation (Johnason, 2009). Human tends to find a place that near their housing

area to work, so that their living cost and transportation cost will be reduce.

3.2 Employment of Foreign Workers

Second issues is that, since there are low local worker, they are forced to hired foreign

worker. With the increasing number of foreign worker in company, there is an unavoidable

problem that definitely will occur inside the worker group, that is, the foreign worker will

discriminate by the local worker. Local worker will look down them or humiliate them in

verbal or action (Jeffrey and Donald, 1990). After a period of time, fighting or quarrel among

worker might happen and even riot in serious case that already happen few years ago in our

country. If riot happen, the company not only facing lose in terms of money, their reputation

will also be affected.

3.3 Worker’s Discipline

After that, discipline of worker are also an important issues that must tackle. It is a

common phenomenon that, some of worker tend to late to work, or absenteeism without any

proper reason. These undisciplined worker not only affect the productivity of company, they

also cause lost in profit and reputation. With lower productivity, the company still have to pay

their salary, this cause the expenses of a company higher and lesser profitability. It is

therefore important to keep accurate records of any disciplinary issue, to ensure that the

issue is dealt with properly. This includes minutes of meetings, letters between employer,

employee and trade union representatives, and any follow-up activities that need to be

undertaken. These records also provide a point of reference to ensure that all parties are

meeting their agreed obligations in the event of further disputes.

3.4 Retention of Talented Worker

Furthermore, since the more competitor operate at nearby location, Hock Kee Seng also

have to try all methods to retain their talented worker. Many people think that the main task

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of human resource is to source and employ new talent, however, the truth is that most HR

activities revolve around retaining existing talent. Employees are the lifeblood of every

company, providing the skills and experience required to keep productivity levels up. HR

responsibility is to protect this valuable asset. The HR department needs to provide each

employee with the right combination of all three to satisfy the employee without

compromising company interests in the process (Chris, 1986). They also need to keep

accurate records of these combinations to ensure that the agreed packages are being

delivered to employees.

3.5 Payroll to Employee

Next issues face by Hock Kee Seng Sdn Bhd is payroll. Responsibility for payroll falls

between the remits of the accounts and HR departments, often leading to problems with

accurate payments to staff. HR maintains records about salary, benefits, bonuses and

attachments of earnings, whilst accounts are tasked with actually making the payments. This

creates a potential disconnect that can lead to the payroll being run late or employees

receiving the wrong sums in their wage packet. To maintain morale and prevent future pay

problems, your business should investigate the potential of using a dedicated payroll solution

that interfaces directly with your HR software and account system. By uniting both

departments electronically, most of the manual headaches associated with pay can be

resolved automatically.

3.6 Employee queries

Last issues is employee queries. The HR department provides the interface between

“the company” and the staff. This means that when it comes to employment issues, disputes

or queries relating to work, the HP department is the point of first enquiry.

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4.0 Company Solution to Solve Issues or Challenges

4.1 Salary

Salary is an important fact for the employee. It psychologically motives the

employees of the organization. When the company employee complaint about the salary

payment and related issues, the HR manager will ask the accountant department to check

the employee’s salary through working punch card and recount the amount of salary based

on working days and other benefits. If the employee’s salary was no problem, accountant

department will photocopy the punch card and make it more detail by showing the

calculation of the salary to employee in order to let the employee understand there is no

problem about the amount of salary.

4.2 Shortage of Local Employee

When the company facing the shortage of local employee, company will recruit

worker through publication of job vacation in handbill, newspaper, banner and online

recruiting. The company also recruit foreign worker in order to solve the problem of shortage

of local employee to operate the company. The foreign worker will train before start working

in order to let them adapted to the workplace environment.

4.3 Employee’s Discipline

There are another issues regarding human resource is employee attitude. When the

employee late to work and back earlier without permission, HR manager will write a warning

letter to employee and deduct his/her salary. So, employee must come 15 minutes before

start working and after the supermarket is closed to avoid deduction of salary. When an

employee is absent from work for one day without permission, the incentive pay will be

deduct by 20%. So, the employee will no longer get the incentive pay if an employee is

absent from work five days and above in one month without any sick leave or permission by

HR manager.

The company will motivate and counselling the employee who lazy or mental

stresses when working the same position to reduce their mental stresses. The company’s

HR department have the necessary abilities as well as the resources for effective training

and development program (Buhler, 2002). However, the company do not provide a job

rotation system to their employee to change the environment of the working place.

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4.4 Hiring wrong person

The company faces challenges in respect of hiring the wrong person for the job. They also

face challenges when they requite person for a specific position. Hiring wrong person may

result in accidents or disaster that cost people their lives (Jackson et al., 2012). Emporium

Hock Kee Seng Sdn Bhd always tries to hire the right person for the post offer by company.

In general, the company does not facing any problem regarding this. The company have

some policy to solve the problem. For example, the company always tries to appraise

individual performance thus wrong person can be a better person in near future.

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5.0 Suggested Solution to Solve Issues or Challenges

5.1 Salary

HR department can fully disclosure how to calculate the salary to the employee

before start working to let the employee more understand about their salary. HR department

also can follow the restriction to avoid these unnecessary disturbances (Durai, 2010). For

example, the newcomers must fulfill a bond before start working and need to be more

advised such as consulted. Besides, the company must have an expectation from newcomer

should be lower and appraisal of the work should be higher.

5.2 Shortage of Local Employee

The company can also hire a temporary worker during peak season to solve the

shortage of local employee. Reason for hire temporary employees is for extra manpower in

case of sickness or temporary increases in work (Blanpain and Graham, 2004). Besides, the

company can ask the employees work overtime. The company can meet demands for

production without hiring more people and the employee also can get a temporary increase

in income (Pieters, 2007).

5.3 Employee’s Discipline

HR manager can call the employee to a private informal meeting if the employee still

continue late without permission and ask the reason of the lateness. Besides, company also

can manage employee relations by conducting a periodic attitude survey of current

employees to determine their feelings, issues and concerns related to their jobs and to seek

their idea for improvement. The results from the survey can benefit the company in

correcting the identified gaps on a proactive basis before problem get out of hand

(Vallabhaneni, 2009).

5.4 Hiring Wrong Person

The company can provide training facilities for the wrong personnel to come into a

track. To avoid hiring wrong person, HR department can follow the five steps process before

hiring worker which are defining the job requirements, recruiting promising candidates,

interviewing, evaluating candidates and making decision and an offer. Follow these steps

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can help company to refine the company’s candidate search (Harvard Business Press,

2008).

6.0 Conclusion

Emporium Hock Kee Seng Sdn Bhd was once started as a small grocery shop but

has developed into a larger hypermarket that could compete with other larger hypermarket

such as Giant and Mydin. One of the key to success of the company that has been achieved

to have the competitive edge over its competitor is the Human Resources department itself.

However there is still room for the company to improve in their HR management to be more

successful or to prolong their life cycle in the business. As discussed earlier, there are some

problems faced by the company that might be an obstacle for further success such as lack of

workers.

For a starting point, one should first examine and analyze its current HR

management in order to know what is lacking and what are needed for the good of the

company. For this purpose, the SWOT personnel analysis, statistical and demographical

analysis of the employee and the analysis of the cost of labour were used (Prusak & et al,

2007).

After the determining the SWOT of the company, analysis and evaluation of the work

that are done by all employee are one of the most important activities in order to achieve a

better HR management. Doing these tasks of analysis and evaluation required a proper in-

depth understanding of the contents and each of the particular work. Such tasks can be a

basis for finding any difference or similarities in each of the job. The evaluation should

comprised of the work complexity (vocational education, professional experience, innovation,

creativity, skills, and collaboration), accountability (the course and effects of work, decisions,

safety of others), effort (physical, mental, intellectual, monotony), and work conditions

(nuisance of working environment, hazardous agents). To deepen the knowledge of each job

/ tasks, first line manager and staff can be interviewed. After the evaluation, the company

should combine work posts that are similar to each other in order to smoothen the working

process done by employee.

Besides the basis of understanding the company SWOT and work posts, the

Emporium Hock Kee Seng lacks the manpower of local Malaysian staff. It is a fact that the

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foreigners working in Malaysia have contributed a lot to economy growth of this country in

particular by filling in the labor shortages in selected sectors of the economy but they still

bring several disadvantages to the country such as in terms of employment opportunity for

local workers (Haji Mohamed, 2012). The need of local staff in comparison to foreign worker

is that the local citizen is more understanding towards their own country belief and norms

which may not be present in the general population of the foreign workers. Therefore, a

better ways of finding and recruiting local workers is needed. One of the ways to improve the

recruitment of local workers is to tap into the network of the potential employee such as in

the internet or other social media sites. They can also take advantage of their industry

contacts, association memberships and trade groups for recruiting candidates. Once in a

while a master lists of industry leaders and other potential employees from customers,

colleagues, coworkers and friends are created for used as reference for the HR department

to look for potential candidates.

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Appendix

Figure 2: Interviewing with Miss Siti Zubaidah Alias, Human Resource Manager of Emporium

Hock Kee Seng (Gong Badak)

Figure 3: Employee Discount & Insurance Card

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Figure 4: Employee Medical Card

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