Disposition of Human Resource Development Structure in Manufacturing Firms in Malaysia

Abstract

Problem statement: Human Resource Development (HRD) is rapidly gaining importance in manufacturing firms in Malaysia, as there are strong driving forces such as legal, financial and infrastructural support from the Government. This is because the Government believes that investment in human capital is key to the success of the country’s economy. However, this strategy may not be effective without the availability of a properly implemented HRD structure. Approach: The aim of this paper is to examine and report on the disposition of HRD structure in manufacturing firms in Malaysia. Its specific focus is the desirability and existence of separate HRD departments within organisations, as well as the size of these departments, the terms used to label them and the location of HRD within the organisational structure. This study employed a mixed-method concurrent research design, combining a questionnaire survey with personal interviews with HR managers from manufacturing firms in Malaysia. Results: The findings revealed that HRD in large firms is structurally strategically aligned, whereas small to medium firms are active in training and development and tend to focus on output rather than structure and strategy. Conclusion: Nevertheless, the findings of this study will enable employers to understand the importance of structure for the effective implementation of strategic HRD practice.