the channel system of public service department of malaysia

P U B L I C S E R V I C E D E P A R T M E N T | 1

SECTION ONE

INTRODUCTION

1.0 Introduction

The purpose of this paper is to identify the channel systems for the PSD (Public

Service Department) of Malaysia. We will find out how IT supports each of those

components and to suggest improvements in the existing channel system that can be

supported by Information Technology (IT) technologies and that are not in use by the

company today. Accordingly, Section One outlines a brief background of PSD. It also

will discuss the vision of missions, functions and objectives of PSD.

1.1 Background of Company

The establishment of the PSD (Public Service Department) began in Singapore in

1934, when it was known as the Malayan Establishment Office (MEO) and operated from

the City Hall. Year 1954 was the establishment of the Federal Establishment Office

through the merger of the Malaya Establishment Office, Service Branch of the Chief

Secretary's Office and the Establishment Division, Federal Treasury. When the

administration shifted to Malaya in 1954, the office was relocated to Kuala Lumpur at the

Federal House, Jalan Sultan Hishamuddin. The increase in functions and size required the

PSD to move to a new location at the UMBC Building, Jalan Sulaiman and then to

Sulaiman Building, Jalan Damansara and later on to Wisma Bernama, Jalan Tun Razak.

At the same time, several divisions providing counter services were placed at the Kuala

Lumpur city centre to enable easy access by the public such as the Consultancy and

Record Division at Wisma PKNS, Jalan Raja Laut; Pensions Division at KWSG

Building, Jalan Kampong Attap and the Training and Career Development Division at

PERKIM Building, Jalan Raja Laut.


In 1967, MEO changed of name to the Establishment Office of Malaysia. But in

1968, Establishment Office of Malaysia changed of name to the Department of Public

Service (Public Service Department). Only in 1993, were all of the divisions successfully

placed under one roof when the PSD moved to their own building at the PSD Complex,

Jalan Tun Ismail, Kuala Lumpur. To improve service delivery to customers in East

Malaysia, branches of the Pension Division were established in Kota Kinabalu, Sabah

and Kuching, Sarawak. In 2001, PSD moved to Complex C at the Federal Government

Administrative Centre in Putrajaya, following the Government's decision to centralize all

federal government offices in one location. The Competency Management Branch was

located at Sapura Building @ Mines, Seri Kembangan. Following the reorganization of

the PSD in 2009, three divisions were moved to the MKN-Embassy Techzone Building,

Cyberjaya. The divisions are the Information Management Division, the Psychological

Management Division and the Remuneration Division.

PSD pledge to provide professional services and advice on the formulation and

implementation of policies and regulations pertaining to human resource management

which includes:

1. To ensure that public agencies are equipped with suitable structures, establishment

and schemes of service in accordance with their current responsibilities so as to

function at an optimum level.

2. To ensure the best human capital management to enhance the efficiency and

effectiveness of public personnel through the development of systems and best

practices.

3. To increase the productivity and efficiency of public service human capital through

pre-service and in-service training with regards to the Public Service training policies.

4. To attract, develop and retain potential workforce towards excellent performance

through salary management, allowance and various benefits.


5. To ensure a harmonious employer-employee relations through the widespread

dissemination of information so as to improve understanding on issues of common

interest.

6. To enforce Public Service pension regulations and ensure that pension's benefits are

payable to qualified recipients.

7. To develop public personnel using the psychological and counseling approach and to

provide effective and efficient training in accordance with the principal, ethic and

standard practices of the Public Service.

8. To ensure responses to clients' enquiries and complaints are fast, accurate and

courteous and adhere to the stipulated period as follows:

Affirmation of acceptance of complaint within three days.

Initial response within 14 days.

Status report on clients' complaint within two months.

1.2 Vision and Mission

1.2.1 Vision –

The PSD envisions is to be a world-class organization in public service human

resource management.

1.2.2 Mission –

The PSD missions are:

To be the main advisor to the Government in public service human resource

management.

To enhance capability through restructuring and strengthening the

organization and development of human capital.


To develop quality, highly competent and innovative personnel.

To manage employer-employee relationship towards creating a harmonious

working environment.

To improve systems and work processes by leveraging on ICT.

1.3 Functions

The Public Service Personnel Management includes planning, management and

development aspect as follows:

1.3.1 Planning –

To determine the roles of the public sector.

To determine the organizational size and structure of the public agencies.

To determine the requirement and development of human resource.

To determine pension and retirement benefits.

To determine the implications of privatization/separation on the public sector

human resource.

To develop strategic alliances and networking.

1.3.2 Development –

To determine Organizational Development Policies.

To determine Career Development Policy.

To develop Career Path.

To develop Succession Planning.

To determine Training Policy.

1.3.3 Management –

To manage policies evaluation.

To formulate and clarify policies on the above mentioned matters to

implementer agencies.


To manage policies monitoring.

To manage the appointment, emplacement, remuneration, promotion,

retirement benefits, service conditions, employer-employee relations, training

and human resource database.

1.4 Objectives

1. To rationalize the size of the public service through a systematic and structured

human resource planning by conducting a comprehensive manpower projection.

2. To provide the public service with service schemes and organizational structure that

is relevant, flexible and able to respond to current needs.

3. To develop the best and competent human capital to meet the public service strategic

needs through dynamic training policies and sponsorship programmes.

4. To manage civil servants and develop human resource management policies through

strategic and effective service policies formulation and implementation.

5. To formulate policies and guidelines relating to psychology services according to

current needs to enhance human resource development in the public service.

6. To emphasize on the welfare of retirees and pension recipients through improvement

of post-service policies.

7. To introduce a competitive and comprehensive remuneration package to the civil

servants and develop a harmonious employer-employee relationship.

8. To enhance the quality of service delivery through application of technology in

human resource management.


SECTION TWO

HUMAN RESOURCE MANAGEMENT INFORMATION SYSTEM

2.0 Introduction

Second section commences with a comprehensive overview of the Human

Resource Management Information System (HRMIS) of Public Service Department

(PSD). As the central agency responsible for public service human resource management

policies, the PSD was selected as the lead agency to spearhead the implementation of the

HRMIS. Officers from process owner divisions comprising the Remuneration Division,

Pension Division (now known as the Post-Service Division), Services Division,

Organization Development Division, Training Division (now known as the Human

Capital Development Division), Management Services Division, Planning, Research and

Corporate Division, and Psychological Services Division were directly involved in

verifying the human resource processes, which were developed for the HRMIS. They

were also involved in the testing stage of the application to ensure compliance with

prevailing policies. During the implementation stage, they verified the improvements on

human resource policies according to changes that occurred from time to time. The

Information Management Division was given the responsibility to manage the

implementation of HRMIS, and provide information on public service human resource.

2.1 Vision of Human Resource Management

The Human Resource Management Information System (HRMIS) was developed

in line with the human resource management vision, ‘To be the leader in the

Development and Management of Human Resource in Order to Achieve the

Government’s Vision.’ This vision was decided upon during the seminar, HR Function

Visioning Workshop for Senior Management, which was held on 21-22 June 1999. This

aim is in line with the Government’s vision to become a developed nation by 2020.


2.2 HRMIS Mission

As one of the government’s flagship applications, HRMIS has a clear mission so

that all public sector agencies implement it in line with the vision of public service

human resource and e-Government aims. Therefore, HRMIS must remain relevant in

public sector human resource management through its continuous application

improvement.

2.3 HRMIS Objectives

The objectives of HRMIS are designed to ensure that the developed application

will be able to improve the performance of public sector delivery system. These

objectives are designed to:

1. Enable planning of the workforce and determine the effective size of public service

through human resource management information.

2. Automate the operation processes of human resource management.

3. Develop integrated and updated human resource information for the purpose of

effective human resource planning.

4. Facilitate horizontal communication and integration, coordination of human resource

processes and access through a single window.

5. Contribute to the creation of a paperless environment.

6. Make available a human resource information system that is open, flexible and

updated to meet the management needs of the various levels of agencies.


SECTION THREE

COMPANY CHANNEL SYSTEMS

3.0 Introduction

This section discusses the PSD channel system, the HRMIS (Human Resource

Management Information System). The HRMIS project is a government initiative to

ensure that human resource management in the public service produces skilled, trained

and motivated workers. The HRMIS that has been developed is now being implemented

throughout the Malaysian public service. The HRMIS is not merely a human resource

application system, but more importantly, it represents a new approach for more

comprehensive and integrated human resource management in overcoming the many

challenges of public sector management.

3.1 Human Resource System

The development of HRMIS is based on ten key functions of competency-based

human resource management, as illustrated in Figure 1.

Figure 1. Public Sector Human Resource Management Model


Among the main features of the HRMIS are that it is process-driven, it provides

for self-service facilities and it is web-based. The application allows all members of the

public sector to update their personal records and to apply for the various available

service benefits such as leave, travel claims and training courses. In addition, the data of

HRMIS public sector human resource processes stored in a centralized database will

facilitate analysis and strategic planning of human resource, either at the department,

ministry, state or national levels.

The changes that are brought about by HRMIS are based on public service trends

and practices around the world covering all human resource matters, as shown in Figure

2.

Figure 2. Human Resource Process Mapping into HRMIS Components

The components and sub-components developed under HRMIS were regarded as

innovative outputs, which saw a change in philosophy from a conventional 27-function

human resource management system to a 10-function competency-based HR To-Be

Management.


3.2 Ten Key Functions of Competency-Based Human Resource Management

The Public Sector Human Resource Management To-Be model has been

formulated for use by all agencies. It has ten main functions of public sector human

resource management. The developed human resource processes in HRMIS components

are based on a fixed philosophy. This is to ensure that human resource management is

efficient, effective, constantly relevant and responsive to current challenges.

1. Competency Assessment – This model puts competency assessment as the basis for

all human resource processes, which is also the key to mobilizing human resource

management functions. This function promotes self-development and continuous

improvement through a user-friendly approach. Competency assessment will also

encourage individuals and line managers to assess competency levels using valid

assessment methodologies.

2. Development – The second function of this model is the development activities

relating to the ongoing process of formal and informal training. The purpose of this

function is to enhance a person’s abilities to ensure continued contribution to the

organization. At the same time, development opportunities are provided to promote

self-learning and just-in time learning. This is clearly demonstrated when

opportunities are given to employees and managers to plan, select and evaluate

development programmes for employees to acquire new competencies or for career

advancement.

3. Performance Management – The performance management function is able to align

individual goals with organizational goals, as well as monitor and evaluate individual

performance based on the KPIs, the team and organization. This function also

promotes personal monitoring to strive for continuous improvement and becomes part

of the daily routine of the management. Performance management also links

performance to career development, development requirements and rewards.


4. Remuneration, Benefit and Reward – The remuneration, benefit and reward

management function allows fast, accurate and timely automatic processing of

remuneration and benefits. It also provides a mechanism to administer remuneration,

benefits and rewards in the development and maintenance of public sector human

resource. A system that is fair and in line with the ambition of the organization to

develop intellectual capacity will also promote employee retention and enhance

performance.

5. Career Management – The philosophy behind the fifth function of career

management aims to provide a systematic approach in promoting human resource

development in line with career pathways and organizational needs. It also promotes

sharing and ownership between individuals and line managers in identifying career

pathways and strategies to achieve goals as well as continuous monitoring of their

progress. In addition, this function provides a sustainable, equitable, flexible and

customer-oriented framework for individuals to plan and identify strategies for career

advancement. At the same time, it provides opportunities to the individuals who

constantly strive to improve their competency and performance to progress in the

organization.

6. Strategy Formulation and Review – Human resource model need to change in line

with the rapid change of the environment. This is to ensure that human resource

strategies and policies remain relevant to the needs of the organization. This

philosophy is carried forth in the sixth function, which is formulation and evaluation

of human resource strategy, to ensure that the mechanism for aligning human

resource management strategies with the goals and objectives of the organization can

happen quickly and effectively. Its main activities include the description of values

created by the human resource function through its vision, thinking style, etc. This

feature can also develop the human resource function through the determination of

deliverable outcomes.


7. Resourcing – The philosophy of the human resource recruitment function is to

provide a mechanism to integrate in a comprehensive manner the various human

resource management functions such as manpower planning, recruitment, transfer,

development and training to ensure that the manpower requirements of the

organization are met. This feature also serves to identify the short-term needs of

human resource based on the activities of the organization. This process begins by

identifying the roles, positions and competencies to carry out an activity and ends

with the acquisition of resources.

8. Separation – The function of separation has the underlying philosophy of facilitating

the exit of civil servants from government service. It will also facilitate attrition

trends as well as provide a retention strategy to maintain skilled public sector

manpower. Through this function, all logistical issues such as assets and security

passwords can be resolved, and relevant human resource function operations such as

human resource recruitment, retirement, benefit and reward management, and

development will be triggered.

9. Personal Record Management – The personal record management function is

focused on a mechanism to put in order all public sector human resource personnel

records. This feature puts the responsibility of updating personal records on each

individual. This process involves activities such as updating personal details,

information on family, health, education, language skills, declaration of assets and

awards.

10. Employee Communication and Behavioral – The final function is the employee

communication and discipline management. Its philosophy is to create a conducive-

working environment between the management and employees. At the same time,

this function can improve cooperation as well as promote harmonious employer-

employee relations through the provision of reporting, monitoring and resolution of

human resource issues.


SECTION FOUR

IT SUPPORTS EACH OF THOSE COMPONENTS

4.0 Introduction

The Human Resource Management Information System (HRMIS) has been

developed through extensive research on the best practices of human resource

management by world renowned organizations as well as human resource management

trends of the 21st century. This section will emphasize on the IT supports to each of those

components or functions in HRMIS.

Figure 3. HRMIS Main Menu Interface

4.1 IT Support

Some activities supported by IT are the following:


4.1.1 Personal Record Management

1. Personal Record

2. Asset Declaration

3. Service Profile

This component stores basic information of officers such as personal

particulars, family particulars, language proficiency, academic qualifications,

driving license, bank account number, work experience prior to joining the public

service and awards received. In addition, this component stores information on

service profile and asset declaration.

4.1.2 Competency Assessment

1. Competency Assessment

2. Service Examination

3. Efficiency Level Assessment

This component records and analyses the competency levels of individuals

or teams. Officers or the management will be able to identify the competency gap

between requirements of the position and the competency of the officer. Action

can then be taken to address the gap through the Development Component.

Information on competency can also be used in the Human Resourcing

Component for purposes of recruitment, placement and promotion. This

component also allows officers to carry out activities related to examination such

as processing of applications, scheduling of examinations, recording of

assessment results and updating of examination results.


4.1.3 Career Management

1. Career Path

2. Career Path Assessment

3. Succession Plan

4. Career Plan

This component facilitates the management’s succession planning for

strategic positions. In addition, officers can plan their career development either

on their own or with the advice of career consultants at the agency level.

4.1.4 Performance Management

1. Performance Management

2. Confirmation in Service

This component enables officers to set their annual work targets in line

with organizational goals, as well as to generate annual performance evaluation

reports. Through this process, supervisors or the management will be able to link

performance with career development, development requirements and selection of

award recipients for excellent service within the organization.

4.1.5 Resources

1. Develop Resourcing Action Plan

2. Acquisition of Competency Owner

3. Reassignment of Competency Owner

4. Preparation of Competency Owner for Assignment

5. Secondment

6. Promotion


This component identifies short-term human resource requirements,

applications for positions and filling of vacancies through the process of

recruitment, transfer and secondment. It also aims to ensure that every officer

placed in a certain location is ready to perform the prescribed duties.

4.1.6 Strategy Formulation and Review

1. Develop Tactical Activity

2. Formulate HR Strategy

3. Formulate Policies and Procedures

4. Evaluation of Strategy Effectiveness

5. Long Term Manpower Planning

6. Assess Utilization of Manpower

7. Job Evaluation

8. Organizational Development

9. Develop Position Norms

This component helps human resource managers in formulating and

evaluating the effectiveness of the organization’s human resource policies,

procedures and strategies for continuous improvement. It is also useful for long-

term manpower planning, organizational development, tactical planning, and

storage of information on employment norms, task assessment processes and

assessment of manpower use.

4.1.7 Development

1. Study

2. Competency Development Program


This component prepares competency development programmes for

officers in line with organizational goals, and enables officers and supervisors to

apply to attend the relevant competency development programmes. Additionally,

officers will be able to apply for short- and long-term in-service training

(diploma, master’s, PhD), either with or without scholarships.

4.1.8 Employee Communications and Behavioral Management

1. Disciplinary

2. Counseling

3. Management Employee Relations

This component enhances cooperation and harmonious relations between

the management and employees through the process of reporting, monitoring and

resolution of issues. Moreover, this component makes it possible to manage

counseling and employee disciplinary activities.

4.1.9 Remuneration, Benefit and Rewards

1. Bonus

2. Claim

3. Leave

4. Loan

5. Medical

6. Payroll

7. Remuneration

This component helps administer remuneration records of officers for

preparing salaries following placements, leave (half pay, no pay), promotion,

competency level evaluation and change of service scheme. In addition, it


administers the records of benefits enjoyed by the officers such as loans, medical

benefit, claims and personal advances, scholarships and annual allowances.

4.1.10 Separation

1. Security

2. Workflow

This component provides a comprehensive process to manage the exit of

officers from government service through compulsory retirement, early

retirement, resignation, death, dismissal, and so on. It also enables officers to

prepare task handover notes and exit interviews before leaving the service.

4.2 HRMIS Application Features

The HRMIS application features can be described as follows:

4.2.1 Process-driven

Public sector human resource management is driven by the built-in

applications of HRMIS. This means that the updating of data in the HRMIS

database is done directly through ongoing transaction processes.

4.2.2 Inter-Relationship of Three Data Components

The use of data in HRMIS is based on three components comprising

personal data, establishment data and transaction data. Each of the human

resource management processes utilizes both the establishment data and personal

data as the basis for carrying out a transaction. The updating of the database is

based on these transactions.


4.2.3 Self-Service Facilities

Through the self-service facilities available, officers will be able to do the

following:

1. Update personal records

2. Apply for and check annual leave

3. Submit claims

4. Monitor work performance

5. Apply for appropriate courses

6. Conduct competency assessment

7. Apply for transfer

8. Apply for counseling

4.2.4 Web-Based

The HRMIS is a web-based application and can be accessed via the

internet. However, government security policy requires all applications under the

Electronic Government Project to use the EG*Net network.

4.2.5 Integration of Human Resource Functions

The human resource management functions have been integrated to take

advantage of the concept of ‘single entry, multiple users’ so that data and

information from a component can be used by other components.

4.2.6 Knowledge-Sharing

The human resource management policies enforced through circulars and

regulations are stored in the Web Publishing and Knowledge Base sub-


components and can be shared by users to increase their knowledge and skills

regarding the policies as well as to keep abreast of current developments.

4.2.7 In-Built Human Resource Business Policies and Regulations

The human resource management business policies and regulations are

incorporated in the HRMIS application. Its advantages are as follows:

1. Verification process is performed at point of entry

2. Automatic checking of qualification of officers

3. Reduced recurring reviews by human resource managers and administrators

4.2.8 Security and Workflow

The HRMIS application design and technical architecture assure the

integrity of information and security access, where upon any additions,

amendments or repeals of data cannot be done without the permission of the

authorizing party. In addition, human resource management processes are

simplified by the setting up of workflow according to the roles and

responsibilities of the officers.


SECTION FIVE

IMPROVEMENTS IN THE EXISTING CHANNEL SYSTEM

5.0 Introduction

The products developed in HRMIS application are based on the Public Sector

Human Resource Management To-Be Model formulated for use by all agencies. There

are ten key functions of public sector human resource management. Each function is

implemented based on the set philosophy which will ensure that human resource

management is more efficient, relevant and responsive to current challenges. This section

provides recommendations to improve the situation of HR systems in the PSD.

5.1 Recommendations

5.1.1 HR Organizational Strategy and Planning

In order to improve the area of HR Organizational Strategy and Planning, it is

recommended that:

1. The HR Managers should conduct a follow-up assessment to establish how

organizational design practices in departments have improved since the

introduction of the HRMIS.

2. Executive Authority must ensure that their departments implement the

Directive’s on HR Planning issued by the Malaysia Administrative

Modernization and Management Planning Unit (MAMPU) and submit the

necessary six-monthly reports in this regard.

3. Departments should update PERSAL (Personal and Salary System)

information to ensure proper information systems and proper record


management. Head of Departments and HR Managers should sign a formal

declaration once a year certifying that their department’s information is valid

and reliable.

4. Meeting disability and gender targets must be cascaded down to each

component in departments and must receive special focus during the

evaluation processes of all Senior Management Service members on an annual

basis.

5.1.2 HR Practices

In order to improve the area of HR Practices, it is recommended that:

1. Departments should develop detailed and clear recruitment and selection

policies and ensure that those policies are approved in order to avoid

haphazard recruitment practices. To this end departments should utilize the

PSD’s Recruitment and Selection Toolkit which provides clear guidelines on

how to develop such policies.

2. Departments should have clearly spelt out delegations to approve the

advertising of posts as well as the appointment of persons to posts; these

should be made available to all managers. Human resource components

should monitor adherence to these delegations at all times.

3. Departments should priorities and properly manage record keeping of all

recruitment and selection processes. These should include job evaluation

results, job descriptions, proof of HR delegations, copies of submissions

approving appointments and copies of the appointment letters.

4. Job hopping should be restricted by utilizing regulatory measures where

employees have to work a certain number of years in one level, before they


can apply for promotion to a different position within or in a different

department.

5.1.3 HR Utilization and Development

In order to improve the area of HR Utilization and Development, it is

recommended that:

1. Training courses provided to employees should address training needs of

employees and these should be relevant to the skills requirements of the

departments.

2. Departments should give special focus to People Management and

Empowerment. There should be clear objectives and measures in the

performance contracts of all managers with employees reporting to them. This

should be stringently monitored during the mid-term and annual reviews.

5.3 Summary

The HRMIS project is a government initiative to ensure that human resource

management in the public sector is able to produce skilled, trained and motivated

workers. HRMIS is not only a human resource application system, but also a new,

comprehensive and integrated approach in the management of public sector human

resource. It has been successfully developed and is currently implemented throughout the

Malaysian public service. The development of HRMIS project is in line with the efforts

and goals of human resource management, which is to become a leader in the

management of human resource to achieve the government’s vision.

The expansion of HRMIS implementation faces several constraints including

network, human resources, skills, user attitude and equipment. The strategy that has been

put in place has, to a certain extent, alleviated some of these constraints. Further efforts


have also been made to address and resolve these constraints. The implementation of

other components will be continued in stages depending on the state of readiness and

planning of the agencies concerned. The aspect of internal expertise at the agency level is

given priority to ensure the success of HRMIS implementation. In any event, the

cooperation and commitment of all parties are crucial to ensure the success of the project.

As such, all heads of departments need to put greater emphasis on the aspects of

information and the change of the users’ mindset.


SECTION SIX

HRMIS ARCHITECTURE

6.0 The Establishment of HRMIS

The Multimedia Super Corridor (MSC) is an initiative by the government to shift

the nation into a knowledge- and information-based economy to ensure that the nation

remains competitive and resilient. In this context, the development of Electronic

government for national development was initiated in the 7th

Malaysia Plan (7MP) and

continued in the subsequent Malaysia Plans. This decision is seen as a wise move as in

1996, the world underwent an economic crisis, the effects of which were also felt by our

country.

To realize the implementation of the MSC, the government established the

International Advisory Panel consisting of 25 personalities among business leaders,

policy-makers and academics in the ICT world. The main function of this panel is to

provide ideas and recommendations to the government on the development and

implementation of the MSC.

Accordingly, the government launched the Concept Request for Proposal (CRFP)

for 15 pilot projects in the MSC flagship applications on 26 July 1997. Among the pilot

projects identified was the Human Resource Management Information System (HRMIS).

This is an integrated system, facilitated by technology that combines the best practices

of global human resource management.

MRCB Multimedia Consortium Sdn. Bhd. (MMCSB) was selected by the

government to develop and implement the HRMIS project. On 1 April 1999, a signing

ceremony was held between the government and MMCSB with the Chief Secretary to the

Government, Tan Sri Abdul Halim bin Ali, representing the Malaysian Government and

Dato’ Khalid bin Haji Ahmad representing MMCSB. The ceremony was witnessed by

the Minister of Energy, Communications and Multimedia, Datuk Leo Moggie. At the

ceremony, Tan Sri Abdul Halim said that for the first time ever, the HRMIS would link

all government agencies electronically, so that human resource information at the


grassroots could be easily channeled to the higher levels such as the agency

headquarters, Ministries, State Secretary Offices and the PSD.

MMCSB, as the project implementer, is a consortium of 18 local companies led

by Malaysian Resources Corporation Berhad. The other companies are as follows:

1. Accurate Network and Systems Integration Berhad

2. BSN Information Technology and Services Sdn. Bhd.

3. CS Technologies Sdn. Bhd.

4. Digiera Sdn. Bhd.

5. Edaran Computer Sdn. Bhd.

6. Hijau Inovasi Teknologi Sdn. Bhd.

7. Irshad Consulting Sdn. Bhd.

8. Leapfrog Technologies Sdn. Bhd.

9. Mark System Sdn. Bhd.

10. Mobile Computing System Sdn. Bhd.

11. New Technology Innovation Sdn. Bhd.

12. Orienasli Holding Sdn. Bhd.

13. Origin Technology Sdn. Bhd.

14. Quantum Parallel (M) Sdn. Bhd.

15. Sepakat Computer Consultant Sdn. Bhd.

16. Berita Information Systems Sdn. Bhd.

17. Sistem Televisyen Malaysia Berhad

The responsibilities of the companies in the development of HRMIS include

project management, process improvement, change management, system development,

installation management, training and education, as well as operations and support

services. According to the original HRMIS agreement, the first phase of the project began

on 12 April 1999 and was scheduled to complete in the 24th month or 11 April 2001. The

second phase was scheduled to start immediately after that and completed on the 42nd

month or 11 October 2002. However, the period was extended owing to three changes.


The first change was caused by the necessity of extending the period for the

business improvement process (BIP), which resulted in the first phase being extended till

the 38th month or 11 June 2002, and the date of completion for the second phase extended

to the 59th month or 11 March 2004. The second change involved the milestone

deliverables from management and operation into 4 packages. The third change entailed

the closure of the first phase in 2004.

As stipulated in the contract between the government and the consultant,

RM99.89 million was allocated for the development of HRMIS. Of this amount, 58.4 per

cent was allocated for hardware and software, and the rest for services and the

development of applications. On 17 September 1999, the Government announced to

public sector agencies the implementation of HRMIS application. All agencies were

advised not to continue with any effort to develop other Human Resource Management

System to avoid redundancy and duplication of systems.

6.1 Why HRMIS is Needed

Before the government arrived at the decision to develop the HRMIS, many

studies had been conducted to identify the best practices and use of ICT as an enabler to

improve public sector human resource management. As such, the implementation of the

HRMIS takes into account the following factors:

6.1.1 Optimal Use of Technology

Through the development of HRMIS, the government can optimize

existing ICT infrastructure by automating human resource management in a

standardized and comprehensive manner, without being confined to any particular

function. The HRMIS has incorporated the entire process of human resource

management from strategic planning, recruitment, placement, promotion and

separation.


6.1.2 Continuous Monitoring of Human Resource Management Policies

The use of a standard system in all public sector agencies will facilitate the

monitoring of human resource management policy implementation on a

continuous basis. Current and policy-making processes. Consequently, the

improvement process of human resource policies can be carried out effectively

and continuously.

6.1.3 Intra- and Inter-Agency Information Sharing

The Malaysian public sector human resource management has various

levels in its organizational structure, with a large number of agencies and varying

jurisdictions among the agencies. In this context, the human resource process

usually involves a chain of authority at the various levels and agencies. An

example is the exchange of officers between agencies, which entails both

placement and management of salaries. Information sharing via the system will

help avoid repeating the process of recording and this makes for a more efficient

and effective management of human resources. The HRMIS allows online sharing

of human resource management information among federal agencies and other

agencies. Its use also facilitates the process of analyzing information and ensuring

that work distribution among civil servants in terms of planning, strategy and

operations is consistent.

6.1.4 Performance of Civil Servants

With HRMIS, the performance of civil servants can be measured against

the goals and targets set by the key performance indicators (KPIs) agreed upon by

the head of department or agency, and individual performance can be monitored

and assessed in line with the agency’s objectives and goals.


6.2 Benefits of HRMIS Application

The benefits of the HRMIS application can be viewed from the perspective of the

organization, human resource management and employees. The benefits to the

organization are summarized as follows:

1. Human resource activities will be carried out more easily and simply with a real time

and online human resource information system.

2. Uniform human resource policies and procedures as well as the consolidation of

human resource information in the centralized data bank will facilitate the use of this

system by all agencies.

3. Productivity will be enhanced through faster processing, better work environment,

reduction of errors and work overlap, simple operating system and automation of

certain activities.

4. An integrated human resource information system allows the sharing of information

in a quick and accurate manner, and better communication among the agencies

involved.

5. Less productive human resource activities can be reduced and more attention can be

given to more productive work such as analyzing and planning work which will

subsequently improve decision-making, implementation and monitoring.

The benefits to human resource management include:

1. Integration of the overall human resource functions provides for integrated, accurate,

fast and reliable human resource information.

2. Human resource management is simplified through the use of technology.

3. Increased productivity through greater automation of certain human resource

processes.

4. Utilization of uniform human resource policies and procedures.


5. The human resource management functions of the HRMIS application take into

account process improvement elements and workflow to enable human resource

managers to play a more strategic role.

6. Processing time, particularly of operational functions, becomes faster and more

efficient through the use of the latest ICT.

7. Basic information on human resource management such as service schemes, policies,

circulars and guidelines that are consistent will ensure uniform human resource

management implementation.

8. Centralized collection of information will facilitate analysis and generation of

statistical reports relating to human resource management.

The benefits to the employees include:

1. Facilitation of communication between employers and employees.

2. Entry of basic information and service profiles of personnel need not be repeated.

3. Reduced manual and overlapping activities.

4. Users will be able to check the status of each transaction made through the HRMIS

application.

5. Increased satisfaction, motivation and productivity.

6. User-friendly and flexible system.

6.3 Project Organization

The HRMIS project was launched on 12 April 1999. The PSD, as the lead agency,

set up a HRMIS Project Management Office, which not only formed a team responsible

for the seven major components of the project, but also acted as a mirror organization to

the team of consultants. Its main objective was to ensure the effective transfer of

technology from the suppliers to the Government. The main components of the project

were Process Improvement, Change Management, Training and Education Management,

System Development, Installation Management and Project Management Office. The


organizational structure of the consultants is shown in Figure 4, while the Government

team is shown in Figure 5.

Figure 4. HRMIS Project Organizational Structure, 1999

Figure 5. Government HRMIS Project Team Organizational Structure,

2001-2007


6.4 HRMIS Project Work Scope

The development of HRMIS application determines the direction and design of

the application system that to be developed. The HRMIS framework is described in

Figure 6.

Figure 6. HRMIS Framework

Technical architecture is the technical guidelines for the development and

installation of the HRMIS. It includes the application system and data centre

development to support the implementation of HRMIS. The HRMIS Technical

Architecture Concept includes:

1. Microsoft Distributed Internet Architecture

2. N-tier Architecture

3. Online Transaction Processing Information Flow

4. Online Analytical Processing Information Flow Enterprise Database Architecture

5. Infrastructure Architecture


The government approved the concept on 27 October 2000. Following the

approval of the Systems Development - Architecture Report on 19 July 2001, the fully

completed technical architecture report was adopted. The main features of the technical

architecture design are shown in Figure 7.

Figure 7. HRMIS Technical Architecture

The main features of the proposed technical design underwent a series of

discussions with the Government HRMIS Project Team before they were accepted. This

is to ensure that the technical infrastructure of HRMIS would be able to support a world-

class system as described in the HR To-Be Detailed Design Report. The rationale to this

is that HRMIS would be the only public sector human resource management system to be

used throughout the country with users numbering over one million in 720 agencies. This

gives an idea of the high access volume at any one time when human resource processes

are fully operated online.


6.5 Database Development

Enterprise Database Architecture, which consists of three main components, was

adopted to support information gathering and the public sector human resource business

transaction.

1. Online Transaction Processing (OLTP) – Consists of a data enterprise collection

centre supports the human resource business operations.

2. Online Analytical Processing (OLAP) – Consists of data marts and data

warehouses, supports business intelligence.

3. Operational Data Store (ODS) – Consists of infinite universal data repository that

supports data management, data quality assurance and data production, either

transmitted to other systems or received from other sources.

The relationship between the three components is shown in Figure 8.

Figure 8. Enterprise Database Architecture


Since the HRMIS implementation, its database engine has undergone changes in

line with technological changes from SQL Server 7.0 to Microsoft SQL Server 2000,

then followed by Microsoft SQL 2003, as in line with changes in the operating software

from Windows NT to Windows 2000, then Windows 2003. The technology change is

shown in Figure 9, with a comparison of operating software shown in Figure 10.

Figure 9. Operating Systems and Database Engines Technological Changes

Figure 10. Technology Changes of Operating Software


6.6 Data Conversion

Data Conversion Tools (DC tools) is part of the HRMIS system development

activities. It was developed to facilitate and expedite the updating of data in the HRMIS

database through the conversion of existing digital data in any legacy system into the

HRMIS application. DC tools contain a collection of computer programmes for digital

data reading from a specified format or legacy database system of an agency, which

converts data automatically from the database of a legacy system into the HRMIS

database. Data conversion activities using DC tools were implemented in 2001 through

the preparation activity of HRMIS base data on ten pilot agencies. The development of

DC tools started in 2000, with the latest version being DC Tools V3.3. Improvement of

the DC tools is consistent with Data Conversion strategies. The Data Conversion strategy

is illustrated in Figure 11.

Figure 11. Data Conversion Strategy


The principal activities of Data Conversion using DC tools are:

1. HRMIS base data entry (BU-BA-AP), which consists of organizational activity (BA),

organizational unit (BU), actual position (AP) and competency owners. This activity

allows an officer to login into HRMIS using the identity card number as

identification.

2. Conversion of Department Personnel Management System (SISPEN) and Personnel

Information System (SISMAP) into the HRMIS database.

3. Conversion of remuneration information from the Accountant General’s Department

(AG), which contains payroll information of competency owners such as salary

grade, salary points, salary number, basic salary, allowances and salary deductions for

the implementation of Salary and Remuneration Management Module in the HRMIS

database.

4. Conversion of Annual Performance Evaluation Report scores.

5. Conversion of personal information, service profile and service history from the

common system in the PSD.

6. Entry of 13 items of basic information of officers from the National Registration

Department (NRD) into the HRMIS database.

The HRMIS Data Conversion procedure encompasses the following:

1. Developing a conversion programme in the DC Tools based on the legacy system to

be converted.

2. Copying data from legacy systems such as SISMAP, Personnel System (SISJAW),

SISPEN, etc.

3. Performing data cleaning on the legacy system, if required.

4. Implementing the conversion of data into a staging database using DC Tools.

5. Performing reviews and verification of data in the staging database using DC Tools to

ensure the integrity of the converted data.


6. Executing and processing data in the staging database into the HRMIS database using

DC Tools.

7. Generating reports before and after conversion to ensure that data has been

successfully converted.

8. Checking the validity of data that has been converted into the HRMIS database.

6.7 HRMIS Integration With Legacy System

The development of integration tools is one of the scopes identified in the

development of the HRMIS project. Activities that need to be carried out include:

1. Conducting a study on the legacy system

2. Identifying the flow of information

3. Identifying the requirements of information integration

4. Recommending the method of integration

5. Preparing Data Conversion scripts for integration purpose

6. Conducting integration tests

7. Carrying out parallel execution

8. Implementing a full integration

According to the HRMIS Agreement Contract, the systems identified for

integration with the HRMIS application include the following:

1. Payroll System & Planning and Budget Control System (eSPKB)

2. Training System (SILA)

3. Pension System (POWER)

4. Personnel System (SISPEN)

5. Employment System (SISJAW)

6. Attendance System (WBB )

7. Recognition System (SISRAF)


8. Housing Loan System

9. National Registration System

10. Royal Malaysian Police (PDRM) Personnel System

11. Malaysian Arm Force (ATM) Personnel System

12. Labor Market Information System (LMIS)

13. Legacy system relating to the Malaysian Public Service Commission

14. Legacy system relating to the Employees Provident Fund (KWSP)

15. Legacy system relating to Social Security Organization (PERKESO)

16. Legacy system relating to the Inland Revenue Board (LHDN)

17. Legacy system relating to INTAN

18. Legacy system relating to public institutes of higher learning (IPTA)

The project was extended to include the development of integrated applications in

the agencies identified. Of the 38 legacy systems identified, 17 were dropped, and five

other legacy systems were included to make a total of 26 interface integrated applications

to be developed to establish an information sharing mechanism between HRMIS and

legacy systems. This allows the human resource processes and transactions involving

both applications to be continued and completed. The list of legacy systems that require

integration with HRMIS is shown in Figure 12.


Figure 12. HRMIS Integration with Legacy System Infrastructure

The HRMIS Integration Development with legacy systems is based on the Cross

Flagship Integration (CFI) framework developed by the Multimedia Development

Corporation (MDC). It fulfils the standards and specifications for data integration such as

the guidelines set forth in the Malaysian Government Interoperability Framework

(MyGIF) documents issued by MAMPU. The HRMIS integration infrastructure with

legacy systems that was developed is shown in Figure 13.

Figure 13. HRMIS Integration with Legacy System Infrastructure


6.8 HRMIS Reporting Facility

The HRMIS provides four types of reporting facilities to help the user manage

human resource information such as operational reports, statistical reports, SQL reporting

and Executive Information System (EIS) and Decision Support System (DSS).

Operational report is available in each module to monitor the status of the transaction

process of human resource management. Statistical report consists of 52 types of reports

which are commonly used by human resource managers and senior management for

decision-making activities on human resource management policies. The format for both

types of reports is fixed during the user requirement study.

The EIS and DSS are the most powerful modules or business intelligence which

provides facilities for the extraction of human resource information stored in the HRMIS

database. The EIS allows the dynamic extraction of information according to the

perspective of the user, fast and at any time. Information can be released from the macro

level statistical report, and then further refined to micro level statistics, right to the

specific record specifically through the drill down facilities provided. The HRMIS DSS,

on the other hand, provides facilities to make ‘what if analysis’ to assist the decision-

making process. It also allows the user to monitor the status of human resource

management perspective, whether it is in the green (control), yellow (standby) or red

(requires immediate action) through the ‘dashboard’ display provided.

To meet the information needs on public sector human resource, a total of 1412

measurements with 302 dimensions or information perspectives have been developed

involving 71 cubes, technically referred as the multi-dimensional database. With this

facility, the management of agencies will no longer faces problems in obtaining human

resource information whenever it is required. It does not only help human resource

managers in effective decision-making, but also enables action to be taken immediately.

To expand the use of the EIS/DSS sub-module at the agency level, the HRMIS

warehousing data model as shown in Figure 14 was adopted.


Figure 14. HRMIS Data Warehousing Model

6.9 Roles and Responsibilities

Public Service Department (PSD) –

In expanding HRMIS, the PSD as the public sector human resource manager is

responsible at the federal level for the following matters:

1. Formulation of policies on the HRMIS implementation.

2. Planning, monitoring and coordinating the HRMIS implementation/

3. Coordination of the minimum requirements of hardware, software and connectivity to

begin HRMIS implementation at the Ministry and State Secretary Administrations

based on the report on requirements identified by the agency.

4. Ensuring smooth operation of the HRMIS application.

5. Providing technical advisory services such as preparation of base data, data

conversion and integration with legacy systems (if necessary).

6. Providing Level 1 HRMIS Helpdesk services to address HRMIS application issues.

7. Organizing training in the use of HRMIS application.

8. Ensuring technology transfer activities in the HRMIS implementation were carried

out effectively to enable the Ministry and State Secretary Administrations to continue

with HRMIS implementation at their respective agencies.

9. Coordinating human resource management new requirement that involves process

improvement and HRMIS applications.


6.10 Conclusion

To enhance human resource management, the PSD has utilized the potential of

information technology in ensuring the successful development of an Electronic

Government flagship application. Accordingly, in line with its slogan, ‘Public Service

Leader’, the PSD was entrusted as the lead agency to spearhead the implementation of

the HRMIS. The HRMIS, which encompasses the whole of the human resource

management process from appointment to retirement, has enhanced the quality of the

public sector. The system is not merely a human resource application; more importantly,

it is a new approach in human resource management that is more comprehensive and

integrated to overcome the many challenges of public sector management.

In line with current trends and the demands of the new millennium, the HRMIS

has become a platform for sharing information faster and improving communication

among agencies. At the same time, this automated process allows more attention to be

given to more productive tasks, such as analyzing and planning work, which ultimately

helps to improve decision-making, implementation and monitoring processes. In addition

to automating human resource processes and creating a paperless environment, this

application has also linked all Government agencies electronically so that personnel

information from the lower ranks can easily be retrieved by higher level agencies, such as

the Ministries, State Secretary Administrations and the PSD.

Through the facilitation of communication and horizontal integration, the project

has made available the Public Sector Human Resource Management National Database.

The HRMIS is not merely an application, but also HR To-Be. It is therefore important to

ensure that any new ideas to be brought forward should be in line with the framework of

HR To-Be to avoid conflict of approaches that would cause confusion to the agencies and

adversely affect the fundamental goals of human resource management.

The aspect of internal expertise at the agency level was also given priority for the

successful implementation of the HRMIS. It is an important fact that the cooperation and

commitment of all parties are crucial in ensuring the success of HRMIS implementation.

Without the strategic alliance between the government and consultants, or the change of


mindset and way of working among the civil servants, the implementation of this

application would not have made any headway. Despite the many challenges and

constraints, the HRMIS application has successfully been expanded to all the government

agencies. The planned strategy has been successful in addressing issues that arose from

time to time and continuing efforts are still underway to ensure that all issues are

addressed and resolved as soon as possible.

After ten years of its development, the HRMIS has triggered a change in mindset

and transformation of the public sector human resource management. This transformation

is essential in realizing the goal of human resource management to become the leader in

realizing the government’s vision, and ultimately achieve the target of the national

mission in creating comprehensive, efficient and effective human resource information

management. Thus, the HRMIS is the catalyst for more structured mobilization of the

administrative machinery of the Government as well as the starting point in the

modernization of public sector human resource management of the 21st century.


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Turban, E. & Volonino, L. (2010). Information Technology for Management. 8th Edition.

International Student version: Wiley. Online at www.wiley.com/go/global/turban

http://en.wikipedia.org/wiki/Human_resource_management_system

http://www.jpa.gov.my/

http://www.wiley.com/go/global/turban