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ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Human Resource Management Practices in Logistic Service Provider Industry: A Case Study Goh Hui Chyn Faculty of Management Multimedia University Malaysia Cyberjaya, Malaysia Dr. Maniam Kaliannan, PhD Faculty of Administrative Science & Policy Studies Universiti Teknologi MARA Shah Alam, Malaysia Abstract Due to the continuous changes in external environment, the function of human resource (HR) department in an organization has been evolving from personnel management to strategic human resource management (SHRM). According to the resource-based view of the firm (Barney, 1986, 1991, 1995), an organization can achieve sustainability competitive advantage by creating value that is rare and difficult to imitate by competitors. Literature reviews highlighted that the ‗change hand‘ effect of the logistic industry can be addressed by enhancing both the operation efficiency and organizational competencies. The core competencies of the logistic service provider can be created through strategic Human resources management system (HRMS) using the integrated framework proposed by M. Progoulaki and I. Theotokas. A firm exhibits strategic human resource management [SHRM] when the human resource function is vertically aligned with the mission and objectives of the organization and horizontally integrated with other organizational functions. A qualitative case study methodology utilized interviews, documentation and observation was adopted to study the HR practices in a selected logistic provider in Malaysia. The organization has 25 HR practices but still facing failure in aligning the organization structure, collaboration among workers, disciplinary issues, high turnover rate among the lorry drivers. A strategic human resource management plan with setting up Business Development Department ,Business Continuity Plan, Develop Team Synergy , HR ―fit‖ (Vertical & Horizontal) into business strategies and a Human Resource Management Information System (HR MIS as the initiatives was proposed to the management of). Keywords: Strategic Human Resource Management, Logistic Service Provider Industry. 1. Introduction The function of human resource (HR) department in an organization has been evolving from personnel management to human resource management (HRM). Over time, these focus shifted from managing people to creating strategic contributions. Hence, the Strategic Human Resource Management (SHRM) and International Strategic Human Resource Management (ISHRM) become major interest among practitioner and academic. The reasons for the HR function‘s transformation are due to the continuous COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 32 JANUARY 2011 VOL 2, NO 9 Listed in ULRICH’S
ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS changes in external environment such as globalization, competition, markets and technology. In order to achieve sustainable competitive advantage, the organization has to ensure its HR practices and management must be flexible and fit to environment changes. According to the resource-based view (Barney, 1986, 1991, 1995), an organization can achieve sustainability competitive advantage by creating value that is rare and difficult to imitate by competitors. HR was claimed by Itami (1987) as an ―invisible asset‖ of the firm. This asset creates value and it is so embedded in the operational systems of an organization that is enhances the firm‘s capabilities and imitability. This interpretation is also consistent with the emphasis on ―core competencies‖ by Prahalad and Hamel (1990). Hence, many firms are investing in developing their HR capabilities and plan strategically the HR practices or HR bundling (Dry & Reeves, 1995) to improve firm performance and achieving its strategic objectives. One of the major problems faced by logistic service providers is the problem of collaboration, communication and high turnover rate, especially among the drivers. The lack of strategic role in human resource of the firm could be the reasons that affect business performance. Hence, it is imperatives for the Management to evaluate and transform its human resource practices to strategic contributions. By doing so, it may further enhance the company core competencies and improve business performance. The aim of this study is to conduct a research regarding the human resource management practices of a selected organization which specialises in logistic service and propose a strategic human resource management plan for future development of HR strategic roles in the company that align to company strategic objectives. This research study carries three main objectives: • To identify and elaborate on the human resource management practices of the firm; • To evaluate the human resources practices in the context of its relevancy to current environmental challenges and requirements; • To propose a strategic plan on human resource management for the organization based on the outcome of the research. 2. Background to the Study The logistic service industry has been experiencing a continual growth since late 1980 (Yew Wong, C., and Karia, N.,2009) However, most of the contracts were limited to only transport and warehouse services and found to ―change hand‖ in every two years (Yew Wong, C., and Karia, N.,2009). Literature reviews highlighted that the ‗change hand‘ effect can be addressed by enhancing both the operation efficiency and organizational competencies [E] of the logistic service providers. This can be achieved by developing its core competencies through integration and restructuring of resources available [A]. The resources include both tangible and intangible assets of the firm (Ching-Chiao Yang, Peter B. Marlow and Chin-Shan Lu.,2009). Accordingly, these resources are physical, human, information, knowledge and relational resources (Yew Wong, C., and Karia, N.,2009). COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 33 JANUARY 2011 VOL 2, NO 9
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