COMPANY BACKGROUND
Motosikal Dan Enjin Nasional Sdn. Bhd. (MODENAS) was incorporated in
August 1995 with the authorized capital of RM 200 million and the paid-up capital of
RM130 million. The total investment was RM400 million with the maximum plant
production capacity of 200 000 unit of bikes (3 shifts) per year. MODENAS was
established in tandem with Malaysia’s efforts to achieve industrialized nation’s status, in
line with Malaysia’s vision 2020.
Motosikal Dan Enjin Nasional Sdn. Bhd. - MODENAS - was established in
tandem with Malaysia's efforts to achieve industrialized nation status, now ubiquitously
known as Vision 2020. MODENAS spearheads the technology transfer and development
of motorcycle manufacturing, to eventually enable the country to proudly produce
indigenous motorcycles. Although the vision will not be realized within a short time
span, it is a strongly-held conviction that Malaysia will one day become one of the
formidable manufacturers of motorcycles for worldwide distribution.
Kawasaki Heavy Industries (KHI) is the technology partner of MODENAS.
Equity is shared by four parties - DRB-HICOM BERHAD (55%), KAWASAKI HEAVY
INDUSTRIES (19%), KHAZANAH NASIONAL BERHAD (15%) and SOJITZ
CORPORATION (Formerly Nissho Iwai Corporation, Japan) (11%).
With an investment of RM100 million, the MODENAS project was one of the
fastest completed projects in the DRB-HICOM stable of companies. Building
construction and infrastructure were completed in May 1996, within 9 months of the
ground-breaking ceremony in August 1995. In June 1996, the first pilot unit rolled off the
assembly facility.
The first 100 units of MODENAS motorcycles were then paraded in the 1996
Merdeka Day celebrations and the sales of MODENAS Kriss, the 4-stroke, 110 cc moped
began in November 1996. Hardly one year after sales commenced in the domestic
market, had MODENAS launched its product in the international market on October 17,
1997
MODENAS' achievements, from the first day the idea was mooted until the day
the first model was introduced to the local market and then to the international market,
were achieved through the sheer dedication and hard work of the management team and
all the staff of MODENAS.
MODENAS motorcycles are distributed by its wholly-owned subsidiary,
EDARAN MODENAS SDN. BHD. (EMOS)
VISION
To Be a Competitive World Class Motorcycle and Engine Manufacturer in The Asean
Region.
MISSION STATEMENTS
Be a customer focused organization
Offer high quality products
Continuous skills and technology upgrading
Care for the employees
Continuous growth in profitability
Establish MODENAS as a recognizable brand
VALUES
INTEGRITY - practice ethical standards
INNOVATION - creativity in challenging the norm
TEAMWORK - together we achieve more
EXCELLENCE - be the best
CARE FOR THE ENVIRONMENT - for future generations
QUALITY POLICY
MODENAS is committed to provide products and services that consistently meet
customer’s satisfaction.
MILESTONE
1995- 7th February
Signing of MOU with technical partner.
1995- 12th August
Join venture Agreement and Ground Breaking ceremony by Dato’ Seri Dr.
Mahathir Mohamad, prime Minister.
1996- 4th June
First national motorcycle produced.
1996- 3rd October
Plant Launching by Dato’ Seri Dr. Mahathir Mohamad, prime Minister.
1997- 28th August
100 000th unit production celebration graced by DYMM Sultan Kedah.
1999- 19th July
Launching of MODENAS JAGUH officiated by Dato’ Seri Dr. Mahathir
Mohamad, prime Minister.
2001- 3rd November
500 000th unit production celebration graced by Dato’ Seri Abdullah Hj. Ahmad
Badawi, Deputy Prime Minister.
2002- 3rd March
Launching of MODENAS KRISS SG officiated by Dato’ Seri Syed Razak Syed
Zain, Kedah Menteri Besar.
2002- 26th August
ISO 9002 Certificate Award & signing off Technical Agreement of scooter
project with Motive Power Industry Co. Ltd (MPI) by Dato’ Seri Rafidah Aziz.
2003- 16th January
Launching of MODENAS KARISMA and the introduction of new MODENAS
logo by Tan Sri Dato’ Haji Muhyiddin bin Haji Mohd Yassin.
2003-23rd August
Launching of MODENAS ELIT, CERIA, and DINAMIK by Dato’ Seri Dr.
Mahathir Mohamad, prime Minister.
2004-29th February
Launching of MODENAS ELEGAN by Tan Sri Salleh Sulong, Chairman DRB-
HICOM BERHAD.
2004-7th August
Launching of MODENAS KRISS 100 by Dato’ Abdul Ghani Othman, Johor
Menteri Besar.
2004-9th October
Launching of MODENAS KRISTAR by Datuk Ahmad Husni Mohamad
Hanadzlah, Deputy Minister of International Trade and Industry.
2005-27th August
Launching of MODENAS ELIT SPORT by Datuk Ahmad Husni Mohamad
Hanadzlah, Deputy Minister of International Trade and Industry.
2005-22nd December
Launching of MODENAS PASSION by Dato’ Haji Mahdzir Khalid, Acting
Menteri Besar Kedah Darul Aman.
2 a) HUMAN RESOURCE DEPARTMENT
i. History and progress of the department
In the middle of the year 1995, the first department of MODENAS was
established atGlenmarie, Shah Alam. This very first department was founded by
the MODENAS apprentice at that moment. They are five persons altogether and
they were assigned to choose and pick the best people from this industry to be in
the MODENAS management team by the DRB-HICOM. So, after about one and
a half year, they have come with a list to be in the MODENAS management team.
At first, the Human Resource Department only has two major sections which are
salary and administrative sections. After two and a half year, the Human Resource
Department has expanded their function by the training and the development and
admin and corporate affair which now are the most important parts of this
department. Under the admin and corporate affair, there are six sub-sections. They
are security, safety and health, corporate affair, landscape and escaping and lastly,
general admin.
ii. The importance of the Human Resource Development
The human resource department is very important and it plays a big role in this
company. It is because, without the HRD, all the internal businesses won’t be that
smooth on the fact that the entire employee’s information and all laws and
regulation in MODENAS will go through this department before it reaches other
department. In order to manage this department, the person in charge must be
expert or at least he or she knew about the HR educations. It is because; other
department wouldn’t be an expert if they didn’t get any expose on all the HR
educations.
The first important function of the HRD is recruiting new employees. This
department has to go through all the forms and the interviews with the employees’
candidates by choosing the best person for one particular job based on
MODENAS requirements.
Next, the HRD also has the responsibility to provide the right channel for the
employees if they are having any problem or if their family members are on need,
such as emergency funds for the employees. Besides, this department will choose
the panel clinics for MODENAS. In case if the employees want are having
medical problems, they can get their treatment from the chosen clinics without
paying a single cent.
If the staffs are having any problems, got any suggestion and they want to voice
them out, the HRD will listen to them through the provided channels by the
department. Besides the entire above, if they are having discipline problems and if
they break any of the company’s laws, they will be judge in the internal court to
prove whether they are guilty or not. If the employees perform well in their job,
they will also get benefits from the company suggested by their superiors and the
HRD itself.
For the safety and health regulations in the company, the HRD are responsible to
provide all the staffs and paths needed in case if any emergency cases occur. This
department also provides all the safety rules in the company especially in the
production lines because the percentage of any accident will happen there are
higher. All the landscapes in the factory’s compound are also designed by the
HRD.
Last but not least, the HRD also conducts the training program for the workers.
Every year, each employee from each department should get their training for 16
hours. This training is compulsory for every member of MODENAS. This
training is for the workers to sharpen their skills beside they are exposed with new
equipment or any new requirements in their job. Every worker will get their own
schedule and the trainer will mark in the schedule after they have completed their
training.
2 b) HR MANAGER VIEWS ON:
i. HR perspectives
In a view of manager in Modenas, he says that department of human resources is
very important. They talk from their experience, because for two year before they
don’t have human resource department. It is very difficult for them to make a
work. Until today they don’t have manager to handle human resource department
because it is very difficult to seek somebody who can give a good performance.
So, now operating manager who takes a reasonability to control human resource
department. It makes a task of operating manager much difficult because he must
handle two works in a same time. Furthermore, human recourses is important for
all company because all information about employees, activities of planning,
recruitment, and selection, compensation and benefits and others was done by that
department. When have a problem in that department all process and activities
was disturb and not smoothly. This problem also gives impact for other
department. Beside that, all human perspectives must alert with any changes in
normal environments like a supply and demand any employees, changing in
technology, culture, changing in workforce and so on. Organization
ii. HR future
Parallel with country ' development today, interest on this area increasingly
widespread. if first his interest for this human resource management only to
recruitment, wage determination and others but on this day, his interest more
apparent base problems rose in employment world today increasingly complicated
as internal problem discipline, staff welfare, rules, law, benefits and others. These
require to an efficient form of management to manage it.
Therefore, Modenas manager pointed out that human resources department should
upgrade their system as those they make now. Human resource department must
known and sensitive to new technology production. To further improve human
resources department efficiency this, design should master technology efficiently
because all wages and leave make through online system.
He also said that each human resources department in every company should
review strategy, present human resource management policy and practice on this
day to meet need and challenge in the new millennium. Manager of human
resource should give a more training or seminar for employees to train them when
something new change in environment. Manager cannot expect his employee will
self-taught when happen any department in the change stated.
iii. HR Critical Areas
In Modenas, HR managers’ views on human resource future & perspective
thinking of the high living cost in the country such as employees that working in
KL, Penang have low salaries that influences of high expense production.
On the company, actually employees ask to increase their salaries, meanwhile
firm’s condition can not increasing their salaries, because high living cost that
influence of high expense production and manufacturing costs.
If there is high living cost, company can not produce more goods and services.
Meanwhile, in the country’s condition that governed by government is the stable
hence production cost also stable, and the company can produce more goods and
services. And also company can increasing of salaries employees, but if do not
stable the company can not producing of the products and services more than is
usual or expected.
Hence, the company must minimum cost, so that the company can producing its
products and services and then the company can pay salaries employees. Modenas
has undergone many structural changes that present challenges for HR managers
and they continue to face such changes. Some of the structural changes are caused
by downsizing, meanings of the downsizing is Laying off large numbers of
managerial and other employees. So that HR managers can pay salaries for
employees.
iv. Current issues in HR and it relationship and the impact.
HR managers views on current issues in HR and it relationship and the impact in
Modenas that is the employees ask to increasing their salaries, they make the
protest about their salary to be increased, in the protest that they have been too
long to work but their salaries does not increase. Meanwhile in Modenas has
made a collective agreement to know agreement’s workers such as Modenas has a
clinic for employees and their families, safety and accident prevention received
far more attention than did employee health. Statistics show that occupational
disease may cost industry as much or more than occupational accidents. In
addition, there are many disease and health-related problems that are not
necessary job related but that may affect job performance. Many organizations
now not only attempt to remove health hazards from the workplace but also have
investigated programs to improve health. Meanwhile in clinic’s Modenas has
insurance for employees there is a medical, allowance, and award. Modenas give
for employees allowance and award so that employees more active to work.
Meanwhile, Modenas also make survey for employees about salary, workplace.
This is to be helping the employees to know their condition during work in
Modenas. Modenas have a union to have a leader from the top to bottom to
arrange and manage a team. Sometimes many employees feel stress was caused
by thinking why their salaries not increasing, stress is the mental and physical
condition that results from a perceived threat of danger and the pressure to
remove it. Now, HR managers on Modenas still think over about their salaries
employees because HR managers also still think over their company only have a
few customers that want to buy of the their products. An employee does not know
about it, they just to know about importance’s individual. Furthermore, Modenas
still give of the compensation for employees; compensation refers to all the
extrinsic rewards employees receive in exchange for their work, so that
employees more active with their work. Then, employees also given pay, pay
refers only to the actual cost employees receive in exchange for their work.
Usually compensation is composed of the base wage or salary, any incentives or
bonuses, and any benefits. The base wage or salary is the hourly, weekly, or
monthly, pay employees receive for their work. Meanings of incentives are
rewards offered in addition to the base wage or salary and are usually directly
related to performance. And then Modenas also give benefits for employees
which have good performance on the job, meanings of benefits are rewards
employees receive as a result of their employment and position with the
organization. Paid vacation, health insurance, and retirement plans are examples
of benefits.
CONCLUSION
3 a) OPINION ON THE HR DEPARTMENT
i. Function
I think all company have the HR department, and almost function of HR
department are similar. The function have a six major that is planning, recruitment
and selection, development, compensation and benefit, safety and health,
employee and labor relation and human resource research.
The activity planning, recruitment and selection of HR department is conducting
a job analysis to establish the specific recruitments of individual jobs within the
organization. Besides that, the activity is selecting and hiring human resource to
fill specific jobs within the organization.
The activity human resource development is orienting and training employees and
designing and implementing management and organizational development
program. Function compensation and benefit activity is designing and
implementing compensation and benefit systems for all employees. Furthermore
the activity is ensuring that compensation and benefits are fair and consistent.
Safety and healthy function also responsibility to designing and implementing
programs to ensure employee health and safety, that also providing assistance to
employees with personal problem that influence their work performance. Another
one function this department is employee and labor relation. The activity is
become an intermediary between employer and union. Have a problem and
defiance from workers, so this department responsibility to overcome and solve
the problem.
Another function is human resource research. The activity is providing a human
resource information base and implementing employee communication system.
ii. Strength
For overview opinion on the human resource deparment, the strength of
MODENAS Company is, this department very appreciates to their workers, and
takes a right approach to develop his company. As an example this department
passes their employees to overseas to get more education and experience. This
way is good because his employee can get skills and diverse expertise to make
their company better. Employee will contribute the new skill to develop this
company. But to avoid their employee to left company after company pass they to
overseas, HR department already make a contract. After the workers back from
training at overseas, they need to work one year after that. This way to avoid
company lost.
Besides that, HR department also make a cooperation with others automobile
company to get more information. With the cooperation also, MODENAS can
compare his product with others company. This can be strength because not all
company does like this. I think one another strength to HR department of
MODENAS is all employing must to training calendar at learning centre. To
ensure line not empty, the training will do follow it turn.
Furthermore, I think the strength HR department is making a team building.
Greatly, most the program not does in production but company do it outdoor. To
employee feel more enjoy and get experience. As example MODENAS Company
already make this program at Pulau Jerejak and Pedu several past years. In thus
program, the activity is learning how to make a better presentation and how to get
soft skills, beside sport activity. The reason because company wants their
employee will feel love to company and never to left to get another job.
iii. Weaknesses
The department has problems which they forced to facing with the regulatory
changes which government regulation and laws has put the burden on the human
resource manager that is reflect with environment and quality of work life.
The other problem is political changes which the government in a country was
increased cost of living. This will impact the company which human resource
manager forced to redesign the employee’s wages, and bonuses so that they can
feel comfortable with their life and the employees’ need will be satisfy. Company
does not have control in this problem and this makes company become
uncertainty.
In the other hand, there have human resource issues that are bought to court
because of the lawsuits involving employment practices. And the employee that
involved hardly does not want to settle the problem in the inside court. This is
indirectly hurt the company’s image
iv. Suggestion
Establish the good job analysis that provides the information that virtually every
human resources activity requires. It assists with the essential HR programs such
as recruitment, training, selection, appraisal, and rewards systems. It may also
help the company defend themselves in lawsuits involving employment practices.
For example, clearly specifying what a job requires if someone claims unfair
dismissal.
The other suggestion in settle the bureaucratic system is the HR department also
can establish or upgrade the system such as allowed the employees to on line in
term salaries payment, or create the human resource information base as reference
or facility to employees so that the company operation will become easier.
Besides that, the authority to control tasks may delegate to manager at all level in
the company.
Besides that, the company also cans learning what are the successful company in
the same industry such as HICOM, HONDA and NAZA are forecasting and how
they are arriving at their forecasts. Then, the company also can compare their
forecasts and methods with the successful company. The company also can ask
consultants and professional organizations such as associations or employ them.
Here, HR professionals can look at the other ways of doing things.
Because of the sale’s company is not stable, company sometimes facing with the
pay salaries or wages to their employees, company can create the strategic which
the company can pay the employees with the advance salaries. And if the
company gets profit from sales, the company will assume the advance salaries
that already paid as bonuses to their employees. So, for the employees’ salaries
future is still same that is not deducting.
In the other hand, the company also can identify the employee that have potential
or talent for advancement and send the employee for sharpen their talent so that
company can create the professional future. The company can send their
employee to Japan to learn about the Japan’s car which we know that Japan car is
one of the successful companies in markets.
Company also must focusing on how a job is done usually uncovers any unsafe
procedures, obey the payment, and treatment of employees, workers’ health and
other social and economic issues to avoid punishment from the government that
will taking legal action against it.
One of the best ways to encourage the good relationship between manager and
organizational staff is based on a close working relationship between them.
Human resource manager as a consultant in the company has a responsibility to
ensure the line managers have responsibility to respond to the business
implication of human resource objective and strategic. Human resource manager
also can take to link human resource planning to the organization’s strategic
plans.
3 b) OTHER RELATED ISSUES OR OPINION
i. Journals
Chew, Y. T. (2005). Achieving Organisational Prosperity through Employee
Motivation and Retention: A Comparative Study of Strategic HRM Practices in
Malaysian Institutions, Research and Practice in Human Resource Management,
13(2), 87-104.
“A growing concern among companies operating in the Malaysian labor
market with high job mobility is how to maintain a workforce capable of
fulfilling corporate exigencies.”
Nelson, L. (2005). Managing the Human Resources in Organisational Change: A
Case Study, Research and Practice in Human Resource Management, 13(1), 55-
70.
“A continuing issue in managing change is minimizing resistance and
engaging with employees at all levels.”
Iles, P., Yolles, M. & Altman, Y. (2001). HRM and Knowledge Management:
Responding to the Challenge, Research and Practice in Human Resource
Management, 9(1), 3-33.
“Knowledge is increasingly claimed to be a key critical resource and
source of competitive advantage in the modern global economy,
especially with the rise of the service economy, the growth in the
number of ‘knowledge workers’, the increasingly rapid flow of global
information, and the growing recognition of the importance of
intellectual capital and intellectual property rights.”
Tzafrir, S. S. & Gur, A. B. A. (2007). HRM Practices and Perceived Service
Quality: The Role of Trust as a Mediator, Research and Practice in Human
Resource Management, 15(2), 1-20.
“The value of linkage research is in its ability to recognise the
organisational practices that are the most important drivers of
customer satisfaction in a specific organisation. Human Resources
Management (HRM) plays a central role in the exchange relationships
between the organisation’s management and its employees.”
ii. Articles
MODENAS TURUT SERTA DALAM KEMPEN KESELAMATAN
JALANRAYA
31/1/2008
MODENAS telah turut serta di dalam Kempen Keselamatan Jalanraya Bersama
Masyarakat Setempat anjuran Majlis Keselamatan Jalanraya (MKJR) dan
LAFARGE Cement Malaysia, bertempat di Dataran Pasar Awam, Padang Lalang,
Langkawi. Majlis ini telah dirasmikan oleh Datuk Suret Singh iaitu Ketua
Pengarah Jabatan Keselamatan Jalanraya Malaysia, Kementerian Pengangkutan
Malaysia.
MODENAS KRISS 120 SPORTS LAUNCHED
17/12/2007
MOTOSIKAL dan Enjin Nasional Sdn Bhd (Modenas), a 55 per cent subsidiary
of DRB-HICOM Bhd, has launched two new motorcycles to boost earnings and
counter competition from Japanese and Chinese rivals. The two models are the
Modenas Kriss 120 Sports (electronic starter) and the Kriss 100 (kickstarter)
priced at RM4, 450 and RM3,150 respectively. Modenas chief executive officer
Abdul Harith Abdullah targets to sell 7,000 units a month of the models and
improve its overall national market share to 13 per cent from 10 per cent last
month. "Together with our six other Modenas models already in the market, we
target an overall sales of 70,000 units for financial year ending March 2008, of
which 10,000 are for the export market," Abdul Harith said at the launch of the
motorcycle at DRB-HICOM's headquarters in Selangor yesterday.
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