OUM BUSINESS SCHOOL

JANUARY / 2015

BMHR 5103 Human Resources Management

DR. SUMATHI SANGARAN

MATRICULATION NO: CGS00895201IDENTITY CARD NO.: 900308-08-5279TELEPHONE NO.: 011-26299615E-MAIL : hesanrajarani@gmail.comLEARNING CENTRE: Greenhill Learning Centre

ACKNOWLEDGEMENT

I would like to take this opportunity to express my heartfelt appreciation to my facilitator Dr.Sumathi Sangaran

Without his identification of the assignment strength, guidance and advice on the assignment development, it would be almost impossible to complete the task as schedule. Under his supervision and motivation, I am able to perform well in conducting this study.

In addition, we would also like to thank Air-Marine Group which provides me valuable information as the guidance of the assignment.

Lastly, I stress that I have fully committed and contributed immensely to achieve my project goals. I have overcome many difficulties during the development of the assignment and eventually the result is upon satisfactory level completing this study in such a great style. Thousand thanks again are given to those who have helped me making this assignment can be done successfully and meet the time frame.

Table of ContentsContentsPage

Acknowledgement 4

Chapter 1- The Introduction 1.0-Brief Background 1.1-Current State Activity 1.2-Organizational Chart 1.3 Human Resources Manager & Background 1.4 S.W.O.T Analysis578101112

Chapter 2 Problem Statement (Gender Pay Gap ) 2.0 Main Factors 2.1 Analyzing The Objectives Of The Problem Statement 2.2 Human Capital Statics ( Air-Marine ) 2.3 Study on the pay gap between gender > to education. 2.4 Study on the pay gap between gender > to age. 2.5 Study on the pay gap between gender >to marital status & Child 2.6 Study on the pay gap between gender>to type of employment contract.13131316

Chapter 3-Proposed Action 3.0 Main Action Plan 3.1 Implementation 192021

Chapter 4 Conclusion & Implications

Chapter 5Reference29

Chapter 6-Appendix

CHAPTER 1 THE INTRODUCTION1.0 Brief BackgroundThe history of the Air-Marine is a impressive and rich as the loads and projects handles. The modern Air-Marine is one of the leading in south east asia first class service provider for the power, oil & gas and petrochemical industry was established in the year of 1981 by its present Managing Director; Mr William Chiew and was originally setup as a freight forwarder and customs clearance agent., Further to this as Air-Marine acquired the 1st project ( Bakun ) in the year of 2005 were a turning point, These key acquisitions helped to boost the resources of transport and installation equipments and swelled the ranks of highly skilled and experienced personnel .

Picture 1: Air-Marine Logo Air-Marine has continually progressed and developed its group of companies, the speed at Air-Marine have grown and the number of business been become part of Air-Marine have created the need for one; South East Asia Brand Identity which clears represents Making the impossible possible. The new venture has combined the technical innovations and equipments inventory whilst adhering to the strictest safety standards, Air-Marine is a team of experienced heavy lift enthusiasts offering a complete package of specialized heavy lifting, crane rental, jacking, skidding ,heavy transport , weighing and total project solution.Air-Marine Group of Companies; with branch offices around the South East Asia region from East Malaysia to West Malaysia and Singapore. Air-Marine is now one of the largest specialist heavy lifting and transport companies in the South East Asia Region. Air-marine have grown considerably in scale and in the expertise offer, but Air-Marine still a business inspired by the same passion for engineering solutions that prompted the formation of Air-Marine Group Of Companies over the 30 years.. As its today, has grown and evolved over time. Basically it forms a culmination of worldwide experience and expertise from strong, successful and visionary family-orientated companies , with their roots in moving and lifting going back in time as far as 1981. Air-Marine Ensures that it have exceptional management team at every level and the treat every job as the highest level vital. Various of expertise have been hired from various part of region such as Nederland, Philippines, Thailand, China, India and many more . This Joint Team of expertise with the Air-Marine Group Of Companies had made it one of the most successful company.

1.1 Current State Activity

Over the years, Air-Marine has developed an extensive portfolio of transportation projects for the onshore and offshore oil and gas industry. Nevertheless, its commitment to Zero Lost Time Injury, technology and cost efficiency was the key reasons for Air-Marine to grab the opportunity. Prime mover transportation is widely utilised for distribution goods and heavy haulage transportation on the road ways. Weighing is widely utilise on measuring the dry weight of the ultra heavy topside to the lightest tonnes of manifold using the 3000 metric tan capacity equipment.

Jacking And Skidding is mostly been sub-out the task to our long-term skidding contractor which having professional expertise in the conducting the skidding operation . As a the engineering department is the backbone for the first class service , all the operation been carried out with a well planning and preparation is the key of success .

Picture 2: Heavy Lift & Transporter Services.Heavy lifting with over 100 of cranes Air Marine Fleet is the largest Malaysian owned crane company and has been providing crane supply services to the region . Cranes with the maximum capacities over 150 tonners are now handled by the Heavy Contracting Division. This includes the companies flagship a Demag CC2000, 400 tonnes crawler crane with super lift attachment.

Using a range of hydraulic submersible ballast and de-ballast pumps, Air-Marine is capable of performing very high capacity barge ballasting operations .In Fact Air-Marine frequently supply ballast and de-ballast systems capable of in excess of 60,000 Cu.m/h. The system is fully computer monitored and can be used in conjunction with the innovative skidding equipment to perform sophisticated load-out operations. Control of the Air-Marine barge ballasting system can be offered at two levels: locally, via the panel on each hydraulic power pack, or remotely, using in-house designed software. Air-Marine hold a variety of common barge configurations on database so as to minimize set-up time on new operations.Logistics Ccapabilities range from the support of single import/export jobs to complete end-to-end projects involving the transportation of complex freight items across some of the worlds harshest environments. Air-Marine plan bespoke, multi-modal packages incorporating all the necessary services from our huge range to execute every delivery as expeditiously and cost-effectively as possible. All Air-Marines departments and offices across the South East Asia work seamlessly to achieve this.

Picture 3 : Shifting & Load Out CPP Topside ( 3500MT ) at Sapura Kencana Yard , Lumut Perak .Load In-Load Out and Engineering is an authority on load-out systems for platforms and jackets. This service allows modules to be transported hundreds of meters to the load-out quay so that several modules can be built at the fabrication facility without impeding access to the quay, and multiple load-outs can be executed from a single load-out point. The result is minimum site disruption and maximum efficiency. Alternatively, this will be using our Goldhofer and Scheluer SPMT it capable of loading in up 25,000 metric tons.

CHAPTER 1.1 BUSINESS OPERATING ENVIROMENT S.W.O.T Analysis On Air-Marine Projecting Engineering S.W.O.T Table 1

Strength Strong brand portfolio Brand reputation valued at RM3 billion Niche MarketOpportunities Increasing fuel prices Strategic Partnership. Changing customer need

Weakness Poor environmental record

Poor Management Skill & Training Threat Fluctuating fuel prices Intense competition

A) Strength Strong brand portfolioAir-Marine currently a major sub-contractor wholly owned by Malaysian which services major in Energy, oil and gas industry like petronas, Sapura Kencana Petroleum , Tabung Haji Heavy Engineering , Malaysia Marine Heavy Engineering as well MLNG Projects . This does not only increases the brand awareness but also do satisfy every client group needs, Brand reputation valued at RM3 billionAir-Marine one of the Top 30 listed heavy lift brand internationally. Air-Marine is known for its heavy cargo challenging service. Niche MarketIn southeast Asia , Air-Marine is one of the leading company who strike the most number of axle line own and number of competitor is as less than 10 nos . For example, ALE Heavy lift , Sarens International , Foggily and Tat Hong .etc

B) Weakness

Poor environmental record

Air-Marine had an amount of chemical residual been discharge to the public drainage system without having a chemical disposal management system. This Would be improve by implementing a proper Chemical disposal system.

Poor Management Skill & Training Air-Marine had less management trained personnel that should be improve to enhance a better understanding in a management system . New Employee been hired been allowed to operate the equipment without a proper theoretical training system. This been retaining more old skill personnels.

C) Opportunities Increasing fuel pricesIncreasing in fuel price that is an advantage for more exploration its been done for the world demand and supply . This has increase more logistics and heavy lift jobs in the oil and gas industry. Strategic partnershipsAir-Marine have its strategic joint venture business with Royal Cargo Pvt Ltd , Tat Hong Sdn Bhd , Sarens JWS Sdn Bhd as well the UES Sdn bhd . Changing client needsAir-Marine had upgrade its equipment in having new technology of SPMT ( Self Propelled Modular Trailer ) as well heavy lift cranes and having the highest capacity of crawler cranes as it has minimize the break down period as well provide the best technology to current industry that meets the expectation of the client. D) Threat Fluctuating fuel pricesThe current moment the crude oil price is having a downward price. This would affect the projects which are held out of SouthEast Region. Intense competitionIn this niche industry, intense competition from the local players such as Megalift Sdn Bhd and GS Express Sdn Bhd and Lima Bintang Sdn Bhd having a strong growing competition as the fabrication demand increases.

Specific Objectives To identify how the real business enterprises adapt the tactics to human resource planning. To identify the nature of the organization Study the human resource planning process of Bashundhara group. Identifying the underlying problems and constraints faced by business enterprises while doing HRP. To understand the relation of HRP and other HR functions. To compare the theoretical and practical aspects of HRP.

Chapter 2 GOAL & STRATEGIES ON HRPRSForms of Recruitment The organizations differ in terms of their size, business, processes and practices. A few decisions by the recruitment professionals can affect the productivity and efficiency of the organization. Air-Marine Group adopts different forms of recruitment practices according to the specific needs of the organization. There are two forms of recruitment; centralized and decentralized forms of recruitment: a) Centralized forms of recruitment: The recruitment practices of an organization are centralized when the HR / recruitment department at the head office performs all functions of recruitment. Benefits of the centralized form of recruitment are: Reduces administration costs Better utilization of specialists Uniformity in recruitment Interchangeability of staff b) Decentralized forms of recruitment: Decentralized recruitment practices are most commonly seen in the case of multinationals operating in different and diverse business areas. As Air-Marine Group has its own HR department it uses Centralized forms of recruitment in their recruitment process

3.1 An eye on the future of Air-Marine Group (Planning Process)

Successful human resource planning is designed to identify an organizations human resource needs . Air-Marine staff is their most important asset . in human resources , their culture is about empowering us , both to contribute to their business objectives and to achieve our own personal and career goals. Air-Marine also keep an eye on future , with their leadership behaviors initiative aiming to identify the next generations of leaders. Its overall function is to devise and implement strategies and policies to ensure that they have the right people with the right skills.

Within that, there are numerous options for us. For example, it could be covering culture change, leadership development, strategic talent management, coaching and skill development or alignment of reward with performance.

The strong requirements for human resources in Air-Marine Group .

Strong interpersonal and leadership skills.

The ability to see the bigpicture while delivering on day-to-day goals.

A real interest in howpeople drive business.

The strength and integrity to take tough decisions.

An interest in coaching and developing people

Culture/Strategic Awareness

Recruitments Process Recruitment is the process of discovering potential candidates for actual or anticipated organizational vacancies. It is a process of discovering the candidates for vacant posts which involves recruitment planning, job analysis and matching between supply and demand of human resources.

Air-Marine Group recruitment process is elaborated briefly below:-

Human Resource Planning Initial Step of recruitment process Air-Marine Group. Annually, Air-Marine Group determines the number of candidates to be recruited and the qualifications requirements to be meet to avoid neither human capital surplus nor deficiency. Specific request to the managers Once HR planning had been carried out, the department sends out a requisition to the concerning manager for its upcoming Human capital needs.

Job openings indentified.The HR department identify the job openings from the historical data and budget and planning analysis for upcoming projects . Job analysis HR department defines the duties, responsibilities and accountabilities of the jobs it has identified.Recruitment In the fifth process the department selects the sources of recruitment, It divides into internal or external recruitment. Satisfactory pool of recruitersAmong the applicants applied for the vacant position eligible candidates are selected.Human Capital Statistics

Total Employees

Male 63

Female 42

Total 105

The above table shows the number of people employed in Air-Marine Group. It shows that out of 105 employee, 63 (60 %) employees are male and the rest 42 (40 %) are female employees.

Factors Affecting Recruitment Process The recruitment function of the organizations is affected and governed by a mix of various internal and external forces. The internal forces or factors are the factors that can be controlled by the organization. And the external factors are those factors which cannot be controlled by the organization. The internal and external forces affecting recruitment function of Air-Marine Group are per stated: External Factors: Image/ Goodwill: Image of the employer can work as a potential constraint for recruitment. An organization with positive image and goodwill as an employer finds it easier to attract and retain employees than an organization with negative image. Air-Marine Group has built an image which has made their recruitment process much easier to handle. PoliticalLegalSocial Environment: Various government regulations prohibiting discrimination in hiring and employment have direct impact on recruitment practices. Sometime government rules & regulations and labor union restrict management freedom to select those individuals who it believes would be the best performers. Competitors: The recruitment policies of the competitors sometime have an effect on the recruitment function of Air-Marine Group. To stay ahead of the competition, many times BG had to change their recruitment policies according to the policies being followed by the competitors.

Internal Factors: Recruitment Policy: The recruitment policy of an organization specifies the objectives of recruitment and provides a framework for implementation of recruitment program. It may involve organizational system to be developed for implementing recruitment programs and procedures by filling up vacancies with best qualified people. Though Air-Marine Group has its recruitment policy it does not follow as it should follow. Human Resource Planning: Effective human capital planning helps in determining the gaps present in the existing manpower of the organization. Every year Air-Marine determines the number of employees to be recruited and what qualification they must possess.Size of the organization: The size of the firm is an important factor in recruitment process. If the organization is planning to increase its operations and expand its business, it will think of hiring more personnel, which will handle its operations.Cost:Minimization of Cost is what every organization look for and recruitment incur cost to the employer, therefore, Air-Marine Group try to employ that source of recruitment which will bear a lower cost of recruitment to the organization for each candidate.Growth and Expansion: Organization will employ or think of employing more personnel if it is expanding its operations

Constraints Faced by BG Every organization faces some barriers during the recruitment process. HR professionals of BG are not apart from that. The biggest challenge such professionals face is to source or recruit the best people or potential candidate for the organization. While asking them several questions about barriers about recruitment they have pointed out some factors which are stated below. Lack of motivation: Recruitment is considered to be a thankless job. Even if the organization is achieving results, HR department or professionals are not thanked for recruiting the right employees and performers. Adaptability to globalization: The HR professionals of Bashundhara group are expected and required to keep in tune with the changing times, i.e. the changes taking place across the globe. So sometime it becomes little bit difficult for the HR department to align themselves with the frequent change taking place around the world. Process analysis: The immediacy and speed of the recruitment process are the main concerns of the HR in recruitment. The process should be flexible, adaptive and responsive to the immediate requirements. The recruitment process should also be cost effective. Strategic prioritization: The emerging new systems are both an opportunity as well as a challenge for the HR professionals. Therefore, they have to review the staffing needs and prioritizing the tasks to meet the changes in the market which has become a challenge for the recruitment professionals of Bashundhara Group.

Conclusion The globalization of business is forcing managers to struggle with complex issues as they seek to gain or sustain a competitive advantage. Air-Marine Group is one of the largest Group of Companies in Malaysia. They enjoy outstanding recruitment and selection practices in each successful employee hired. So, their hires are better fits in their work groups .Air-Marine share values, traits and behaviors that are highly regarded for success in the organization. They reach the qualified applicants through the use of innovative recruiting channels. Traditionally, employers have focused on assessment methods that are highly correlated to the content of the job, hence most able to predict ability to perform the required duties and tasks. However, organizations have come to realize that success of the candidate hinges on more than just the ability to carry out tasks and duties well. The foundation of superior performance lies in the synergy created by a close fit with the work group and with the organizations culture. No process is complete without an evaluation of its success. So to crown all, it can be said that successful human resource planning system assisted Air-Marine group to achieve one of the leading places in the business field of Oil & Gas significantly.

RECOMMENDATION Effective recruitment and selection process can give an organization a competitive edge over its competitors by saving both time and cost. Air-Marine Group recruits major part of its employee form external source, especially form Newspaper Ads which cost them much. However, we have recommended some ideas that might help them to improve their recruitment and selection process: Outsourcing firm: The Company may draw required personnel from outsourcing firms. The outsourcing firms help the organization by the initial screening of the candidates according to the needs of the organization and creating a suitable pool of talent for the final selection by the organization as per their needs. Poaching/Raiding: Buying talent (rather than developing it) is the latest method being followed by the organizations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organization might be a competitor in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current benefit and compensation packages. Using HRIS: HRIS or human resource inventory system, is a online portal or data bank that helps one organization to find the right people for right positions in the right time. BG can maintain a well equipped HRIS. Some other recommendations for Air-Marine Group are given below. In case of recruitment and selection process Air-Marine extensively use daily newspapers advertisement. But it should go for online and arrange program in educational institution to attract qualified people their entry and reentry period. The application form of Air-Marine is time consuming and isnt easy to complete, so it should be easy to complete. Air-Marine should consider different factors like cost of living, taxation, family requirements etc. in recruiting people. Several days orientation program should be undertaken to provide a clear picture about the organization, its culture, rules & regulation, employees and management body. They should exercise their recruitment policy and should focus on recruiting the best potential people. It should ensure that every applicant and employee is treated equally with dignity and respect. It should also focus to aid and encourage employees in realizing their full potential. Selection should be made based on transparency, task oriented and merits. Optimization of manpower at the time of selection process. Defining the competent authority to approve each selection. Recruitment and selection policy should abide by public policy and legislation on hiring and employment relationship.

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