Operational Management (OPM 770)

BACKGROUND
1.1

Company Background

Universiti

Malaysia

Pahang

(UMP)

is

technical

university

established in 2002. UMP offers a variety of technical programs

based on Engineering and Technology. In research, the university
focused on applied research and industrial projects with local
industry to enrich teaching and learning as well as promoting the
activities of commercialization of research products. UMP operates
campuses located in Gambang, Kuantan. The campus is located
about 30 miles from the center of Kuantan town has a total area of
126 square acres that can accommodate 5,000 students. UMP
campus is located in a strategic location close to the East Coast
Highway,

the

industrial

zone

of

chemical,

petrochemical,

manufacturing, automotive and biotechnology for the state of

Pahang. UMP now has a permanent campus began operations in
Kuala Pahang, Pekan on July 27, 2009. At present, it houses three
faculties, namely the Faculty of Mechanical Engineering (FKM),
Faculty of Electrical and Electronic Engineering (UMP) and the
Faculty of Manufacturing Engineering (FKP) . The campus of 642
acres can accommodate up to 10,000 students and 2,000 staff.
Other than academic responsibilities, the UMP has several other
departments to ensure the smooth administration and management
of the available resources. Among the major department is the
Office of the Vice-Chancellor, the Registrar's Office and Treasurer's
Office.

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The focus of this assignment is on Human Resource Department

which is The Registrars Office. To meet the accountability in the
administration of the University, the Register Office has the
following roles:

Planning and management of office eg through the budget process;

advertising; recruitment; placement; and promotion

The design and operation of annual staff training program;
assessing the effectiveness; monitor competence; and implement

improvements
Management of staff training programs such as study leave;
scholarships Academic Training Scheme Bumiputra (SLAB) /

Academic Training Scheme IPTA (SLAI); UMP and scholarships

Strengthening staff competence through the implementation of
general and specific induction courses; examination services; and

the Competency Level Assessment (PTK)

Management services and welfare staff through performance
appraisals; records management services; confirmation of service;
salaries and allowances; management of mortgage loans; awards
and discipline; and retirement.

1.2

Problem Statement

In view of progress, UMP has brought in additional contract staff to

fulfill its manpower requirement. At least, ten contract staff is placed
in

each

department

available

in

UMP

for

example

Bursary

Department, ICT Center, Student Affair and Academic Department.

According to Administration Department, UMP currently has 200
contract staff.

What is Contract Staff?

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Operational Management (OPM 770)

Application for a permanent position must be made through the

Department of Public Service. This agency is responsible in the final
approval

of

the

quantity

of

staff

required

for

statutory/

governmental agency, taking into account various aspects, such as

government

budget

and

real-time

requirement.

This

process

however, is time-consuming. Therefore, UMP chooses to pay contract

staff as this process by-passes the Department of Public Service.
Contract Staff gets the same benefits as Permanent Staff, i.e.,
Medical, Dental and Annual Bonus (if any). The only differences are
for Contract Staff:

No annual increment even with excellent annual performance

review.

Do not qualify for Excellent Service Award.

Required to apply for Service Contract Renewal annually until

termination or incorporation to Permanent Position.

No guarantee of Service Contract Renewal or incorporation to

Permanent Position.

Year of Service is not recognized for the whole of contract period.

It only comes into force upon reporting for duty as a Permanent
Staff.

Not qualified for Acting Allowances.

Issues for Contract Staff

Not all Contract Staff has disciplinary issues. Some even perform
better than Permanent Staff. They also give full commitment towards
all programs conducted by UMP. Some of them are talented in sports
and represented UMP in Inter-Varsity Staff Games.
Reported problems pertaining to Contract Staff includes disciplinary
issues,

relationship

with

co-workers,

psychological

issues,

low

performance level and chronic health issues such as heart problem,

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diabetes

and

cancer.

However,

disciplinary

issues

and

low

performance level remain as the main topic.

Contract Staff would eventually show disinterest in work, leading to
attendance problems. They would turn up late at work (clock-in time
is 8.00 a.m), going for breakfast upon arrival, only returning to office
by 9.30 a.m. The problem gets serious when this is done by those
who

are

involved

with

customer

service

counters.

To

avoid

interruptions, other staff would have to stand-in for them. Worse still,
some of them may go missing or go on emergency or sick leave.
They also tend to fail in finishing their tasks within set deadlines.
Their attitude towards work is disappointing. This attitude must not
be left unaddressed as it would bring bad perception of the UMPs
management and therefore would damage UMPs image.
We have been informed by colleagues that they have part-time
businesses as a back-up should they be terminated.
The question is, why would they behave so? After some analysis and
survey, it was found that the said staff had been under contract for so
long, some for as long as 5 years, which in a way put pressure on
them. Changing jobs is not as easy as we think. Some of them are
married and have commitments.
We believe that their position does not match up to their qualification
level. For those with degrees or diplomas, working at counters is not
exactly what they wanted. What would be the appropriate response
from the administration to restore the contract staff motivation and
their attitude? What motivational theories that is appropriate for
them to address this issue? All this will be discussed further in the
next topic.

1.3

SWOT Analysis

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SWOT analysis is a tool or process that helps generate information

that is helpful in matching an organization or groups goal, programs,
and capacities to the social environment in which it operates in order
to achieve its goal.
Setting goals alone is not enough if a company to achieve maximum
effectiveness and efficiency, there is also the need for a company to
study its external and internal factors.

We have identified SWOT analysis of Universiti Malaysia Pahang in

order to get solution.

UNIVERSITI MALAYSIA PAHANG

SWOT ANALYSIS
STRENGHTS
WEAKNESSES
Employment policy of UMP
Constraints
is

well

developed

and

permanent

for

recruitment

comprehensive.
HR staff is experienced

(budget

and understand the scope

advance by Public Service

of their duties.
Good perception

Department.
Negative perceptions of

community.
UMP as a career option for

among

must

approval)

be

contract
often

job seekers.

and

approved

staff

and

considered

experienced.
Selection is

based

in

are
not
on

certain criteria (eg, active

in sports).
Working
position

OPPORTUNITY
Promotion opportunities
faster if compared with the

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in
more

contract
than

years.
THREATS
High staff turnover due to
unsecured feeling

Operational Management (OPM 770)

federal government

Contract staff has to

(especially for academic

compete with candidates

staff).
Most of the schemes in the

from outside to grab a

permanent position.

public service offered in a

university (for example,
Scheme U for Medical,
scheme S for social).

LITERATURE REVIEW
Human resources represent the most valuable input to the
production process and deserve the special attention of all levels
of management because of their unique role in the total system.
Human performance is crucial to an organizations performance.
An organization does not function without people; it does not
function well without competent, motivated people. How the
operations manager formulates a human resource strategy
determines the talents available for operations. Human resources
are expensive. Dowlings study (1973) showed that in many
organizations, a third of total cost is in wages and salaries and
within the operations function, these costs range from 8% to 80%.
Because of the importance of personnel and their cost, early
consideration of human strategy options is necessary.
In most organizations, the human resources function is
responsible for resolving three basic problems related to human
resources.
a) Recruitment of a sufficient number of people with adequate
qualifications for the variety of job descriptions to be filled.
b) Effective utilization of existing personnel
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c) Holding and improving existing personnel through tangible

and intangible rewards
The proper planning of the internal working environment and the
utilization of human resources must satisfy workers in the same
way as the design of products and services must the needs of
potential customers.
In the past it was assumed that employee satisfaction was mainly
related to wages or salaries and other financial incentives. In
contemporary business. It is widely understood that to attract and
maintain an effective work force requires the satisfaction of a
wide range of human needs relating to working conditions, proper
motivation and opportunity for self advancement.

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RECOMMENDATION AND SOLUTION

3.1 Recommendation
A head of department is able to influence the political climate at
this organization. A head of department should promote a positive
culture that values integrity, respect and fairness. Based on
leaders qualifications and working experience of each department
that have a contract staff, he should experience enough not to be
influenced by certain groups of people in his organization and know
how to evaluate contract staff equally. This can demotivated
employees who were initially enthusiastic and potential in fulfilling
its

mission

and

vision

of

the

organization.

Generally,

an

organization becomes stronger and success if they have employees

who are competitive and have a positive attitude. Certain action of
top management can give a major impact on an organizations
culture. Their words and behavior indicate to employees what
action will earn and rewards such as races and confirmations upon
contract. The head of department needs to provide strong
leadership and promote those individuals who believe in the
organizations culture, teamwork, and productivity. He should not
have been pending the position for a long time. Other constraint is
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the permanent position also depends on the Public Service

Department. However, the head of department should work hard to
fight for permanent position of contract staff. We have identified
some solution for this problem by using motivation theory.
Might employ rewards for desirable behavior by staff to help steers
employees towards intended performance goal. Offer employees as
permanent position is the best positive reinforcement. Besides, the
organization gave the award to them for their appreciation.
Moreover, even the monetary reward such as allowances should be
considered.
Whatever reward system installed at UMP, the progress should be
monitored to track the effectiveness of the system. What may work
to motivate some employees also may not work to motivate all
employees. The reward; especially if monetary; needs to be
contingent upon adhering to the employee standards. Either the
employee obeys the new standards fully and gets the reward or the
employees does not obey them fully in return gets no reward.
In order to address the issues of the employees not showing up to
work on time, UMP administration has a couple option;

Implementation of clock-in/clock-out system. Each time the

employee arrives to the office, they clock in, each time they
leave for a break, or at the end of day, they clock-out. Once
their behavior is more reliable, and they are arriving on time
and working productively, this system can be removed.

Attendance is compulsory for departments activity. Any

absence must submit a show cause letter. Attendance for
academic programs / soft skill eg monthly tazkirah will be
included in the annual assessment scoring.

Clearly state the mistake that employee has been done and
improvements that should management take to overcome
the problem.

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"Non-awards." It recognizes the employees who performed

the worst. The employee is awarded a trophy that must be
displayed. The employee has five days after getting the
award to fix the problem and then the trophy will be taken
away. If not, they have to display it for all to see until the
next month. However, if employees are performing to
standards then no one is awarded this embarrassing trophy.

Specific positive and negative punishments UMP can use;

If the employees are late too many times, the more severe
measures can be used, such as pay cuts, an unpaid day off, or

even discontinuing employment

Warning letter to the employee.
Signing unpleasant task. For example, frequent outstation.
Refusing to allow them for taking vacation time.

3.2 Summary and Conclusion

The application of the reinforcement theory of motivation is known
as organizational behavior modification. Organization Mod is based
on the work of B.F. Skinner who theorized that an individual's
behavior will give insight into their needs. This theory has been
used in the workplace to help interpret an individuals needs based
on their behavior. Skinner stated that if an employee performed
poorly at work, either the employee did not find the work
personally gratifying or the individual was not being appropriately
rewarded for their work (Duff, 2013). Organizations have many
ways to reinforce behavior such as bonuses, time off, disciplinary
actions, and even threat of suspension or termination.

Under

Organization Behavior Mod an organization will team reinforcement

with constant feedback. Reinforcement can be positive or negative
however, positive reinforcement promotes a positive behavior
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change better than the other methods of negative reinforcement,

punishment, and extinction.

The most important aspect to

remember with OB Mod is that the positive reinforcement is paired

with constant feedback.
UMP could still use the example of rewarding staff for not being
tardy as discussed under positive reinforcement. The difference
here would be that he would have to pair that reward with
feedback. UMP could offer a "lottery drawing" for those with no
tardiest where an individual would be pulled for a bonus, a nice
watch, or maybe a special parking space. Along with this reward
UMP would continually encourage people for coming in on time so
that the associates understand that he recognizes their change in
behavior.

3.3 References
Schermerhorn,

Osborn,

Uhl-Bien

Hunt

(2012).

Organizational

Behavior, International Students Version. 12th edition. Wiley

Official website of Universiti Malaysia Pahang
Other document that related to UMP

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