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ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS � HR Development � Public Relations � Uniforms & Safety Shoes � Communication � Housekeeping � Headcount Report � Occupational Safety & Health � Security Services � Employee ID Badge � Sports & Recreation � Foreign Workers Based on the interviews conducted, one of the major problems faced by this organization is the high turnover rate among the lorry drivers. For example, for the first three months of 2010, a total of fifteen lorry drivers had resigned from this organization. This relatively high turnover rate could be an indication of weaknesses in HR management on the lorry drivers. It also reflected inconsistency in HR practices on the permanent staff and the contract-based lorry drivers. Besides that, another possible reason could be caused by the earnings of the lorry drivers. The earning of drivers consists of base pay and trip allowance. The inconsistency in terms of their monthly income has reduced the motivation among these drivers and therefore they seek out for organizations which promise higher base salary. In addition, different route payments for the drivers also have added to this problem whereby drivers are looking for highly paid routes and therefore the other routes will suffer from this. In short, figure 3 indicates the differences between the HR practices among the permanent and lorry drives in this organization. COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 38 JANUARY 2011 VOL 2, NO 9
ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Figure 3: Comparison of the Current HR practices on Permanent Staff and Lorry Drivers COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 39 JANUARY 2011 VOL 2, NO 9 Evaluations of Current HR Practices Highlight • Well structure on HR functional role , policy, practices, rules and regulation. (Technical Effectiveness, Huselid,1997) • Right Strategy on HR Bundles for Permanent Staff (high retention) HR Bundle (Permanent Staff) Basic Salary (Market rate) / Bonus Insurance ( Personal Accident, Life, Hospitalization & Surgical) Annual Leave/ MC/HL/CL/ML/MTL EPF/Socso Training & Development (0.5% of Total Salary) • The involvement of HR Manager in The Quarterly Management Meeting become more substantial (currently, as a secretary of the meeting) Lowlight • The urgent demand for daily service delivery simply not enough time for HR Manager to integrate and perform both functional and strategic role. • Strategy on HR Bundles for Drivers is ineffective (high turn over rate) HR Bundle for Drivers (Contract Staff) Low Basic Trip Allowance EPF / Socso Truck Insurance (include Lorry Driver & Co-driver) • Disciplinary issue among drivers • HR heavily involve in handling disciplinary issues, recruitment, payroll (4 paydays/month), calculating trip allowance manually, fleet card tracking etc) Generally, the HR functional role was well structured with its practices, policy, rules and regulations. The HR department is excellence in delivery its technical role (Huselid,
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