Name: Chen Shun Yu (1020063-BBM)

UOG ID: s1113727

In SHRM, external environment play an important role. According to Scott and George (2010) changes in the external environment have a direct impact on the way organizations are run and people are managed. This means any changes in environment will influence the way how manager plan their work like hiring, training, and motivating. For example, when economic going down trend, companys income become lower, and company can no longer give monetary reward to workers, so it need to have alternative way to motivate its workers. A recent article (Anon, 2010) reported that a negotiation between Malaysia government and Indonesia government on Indonesia domestic workers policy had brings a strong impact on Malaysian family. In the negotiation, both parties have agreed that Indonesian domestic workers should have a weekly day of rest, only allow need to done 4 task, and a minimum wage of RM700 per month. These policies have brought a great impact on most Malaysian families, because most family in Malaysia are hiring domestic worker to help them in doing house work. Implementation of the policies cause more Malaysian (especially female) need to spend more time in doing their house work; and nobody caring their old and young family members while they are working. In fact, this will cause them spend more time and energy to do house work; and feel worries about their family members while working. Finally, this issue may cause employees who have family commitment tend to be late to work, reduce the employees satisfaction, and increase in absenteeism. Based on anthropologist and sociologist explanation, social behavior has a collectivizing effect (John B. and Jeff G., 2007, pg147), so the unhealthy behavior appear in organization may spread to others. To reduce the affect of this problem, HR manager may propose a child or elder care center in or near office to take care on employees family member, so worries on family member can reduce. In the other hand, organization can help their employees to get part time maid to help them in doing house work as an alternative solution on shortage of domestic worker from Indonesia (Loong, 2009). On above situation, this can be a threat to most SME and company which implement cost leadership strategy, because this may incur a high cost. However, it may be a great opportunity for companies which implement differentiation strategy. One of the ways to differentiate an organization is from their people, implement above policies can differentiate the organization from other in point of view of employees, and this may help organization attract top employees in the industry, because of its special welfare provide which mention above, than the organization can differentiate itself from its competitors with top human resources it has. In conclusion, change of policy on Indonesian domestic workers has bring a great impact on most Malaysian families, and it indirectly affect SHRM in Malaysia in the form of affecting employees private life. So a HR manager should respond on this fast in order to reduce its negative impact, or even transform it into a source of core competency.

John B. and Jeff G. (2007, pg587) define SHRM as a process of linking the human resources function with the strategic objective of the organization. In the definition, we can see that the important of strategy in SHRM, and a success strategy are form base on 3 important elements, which are management value, resources, and environment (John B. and Jeff G. 2007, pg41), any changes on above element will influence SHRM of the organization. So HR manager should pay attention on

changes on environment, because it will affect every planning, organizing leading and controlling decision of him. According to Maslow value chain theory, HR is a supportive activity which supporting company primary activities, so any change in external environment will definitely affecting the HR department in daily operation. For example, when economy recover, customer purchasing power will also increase accordingly, in order to gain more profit, company should hire more sales person to capture the market. If the HR manager fails to capture and analyze latest economy trend, the company will unable to capture the opportunity, and compete better. Others than economy, recent customer preference also important for HR manager, while customer preference change, HR manager will need to train employees to be creative and come out a new product to meet the changes of preference. For example, in clothing industry, trend are changing rapidly, so their employees, especially designer should train to be more creative. Besides that, HR manager should conduct training for employees while technology environment change, while new technology comes out, and it is able to increase the effectiveness of company, manager should adopt it and conduct training for employees should be needed. Lastly, legal environment also important for HR manager, especially law relate to labor, every compensation or reward to employee are related. Recently, government announces that employer should pay an extra 1% EPF for employees who have income lower than RM5000 per month. If HR manager is not notice the new law, the company may be charge on it. In conclusion, SHRM shall fit to organizations strategy, and environment play an important role in affecting organization strategy, so HR manager should very concern in both general environment and competitive environment.

Bibliography: Scott, S. and George, B, (2010) Principle of Human Resource Management 15th ed. US: Snell Bohlander. Anon (2010) Indonesia/Malaysia: End Wage Exploitation of Domestic Workers, Available from: http://www.hrw.org/news/2010/05/10/indonesiamalaysia-end-wage-exploitation-domestic-workers [accessed 6 April2011.] John B. and Jeff G. (2007) Human Resource Management: Theory and Practice 4th edition New York: Palgrave Macmillan Loong, M.Y. No ready-maid solution: What about having more part-time foreign maids? Available from: <http://thestar.com.my/news/story.asp?file=/2009/6/28/focus/4196475&sec=focus> [Accessed 6 April 2012]