Human Resource management

We have decided to tackle the issue raised by Datuk Seri Rafidah Aziz as reported in The Star dated 15th August, 2004. She acknowledged the need for a wide range of factors to be addressed from aptitude, attitude, business acumen, farsightedness and the pioneering spirit to be included in the coaching materials for would be entrepreneurs and the existing entrepreneurs in SMEs’. This means the responsible, foresight and smart moves to innovate and take potential business risks. The SMEs’ in Malaysia makes up 90% of the manufacturing sector. Thus, their development is integral in optimizing Malaysia’s objectives of being an industrialized nation by the year 2020. The emphasis an organization places on training its employees can have a direct impact on profitability. There is a direct correlation between increased training activities and higher profits (Based on a survey made by the American Management Association). Other benefits of on-going training programs include: “› Increased operational efficiency “› Improved quality of products and services “› Increased pool of potential labor “› A pool of candidates for internal advancement “› Increased retention and decreased hiring costs Most Malaysian employers faced a workforce that lacks the skills needed for a Company to remain competitive. High school and University graduates often lack the basic skills necessary to hold jobs, and even skilled workers need constant re-training and skill upgrades to keep pace with technology and competitors. In this technology-driven age, all workers increasingly require enhanced skills. Companies with on-going training programs are better able to compete in an increasingly competitive marketplace. One of the constraints that were identified during a dialogue between the American Chamber of Commerce with the Ministry of Finance in June regarding the upcoming Budget 2005 was the Skills Gap. The Skills Gap is defined in the study as “…

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