What is the role of HR department in Malaysia?

Brio HR
3 min readNov 9, 2023

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What is the role of HR department in Malaysia?

The HR department is crucial for any organization’s success, including Malaysia. It covers talent acquisition, training, performance management, employee relations, compensation, and more. In this article, we will explore the role of the HR department in Malaysia, its evolution, legal framework, and challenges.

Historical Perspective

HR practices in Malaysia have evolved from being administrative units to strategic partners in organizations due to the country’s rapid economic growth. The establishment of labor laws and regulations has shaped the HR landscape, emphasizing the importance of fair treatment of employees.

Legal Framework

HR departments in Malaysia operate within a legal framework that encompasses various labor laws and regulations. These include employment contracts, minimum wage laws, occupational health and safety, and the Employment Act. The HR department’s role is to ensure that the organization complies with these regulations, protecting the rights of both employers and employees.

Talent Acquisition

One of the primary functions of HR in Malaysia is talent acquisition. HR professionals are responsible for recruiting and onboarding employees who are not only qualified but also culturally aligned with the organization. With a highly competitive job market, HR departments must employ innovative strategies to attract and retain top talent.

Training and Development

HR plays a pivotal role in fostering the growth and development of employees. In Malaysia’s dynamic job market, training and skills enhancement are crucial. HR professionals work to identify training needs, implement development programs, and ensure that employees have the tools to thrive in their roles.

Performance Management

Performance management is another critical aspect of HR in Malaysia. HR departments conduct regular appraisals and evaluations, which have a direct impact on employee motivation and engagement. By aligning individual and organizational goals, HR helps improve overall productivity and job satisfaction.

Employee Relations

Maintaining harmonious relationships between employees and management is a central responsibility of the HR department in Malaysia. HR professionals facilitate conflict resolution and promote a healthy workplace culture that fosters collaboration and inclusivity in Malaysia’s multicultural society.

Compensation and Benefits

Managing employee compensation and benefits packages is an essential function of HR. In a competitive job market, HR professionals must design and administer packages that are not only attractive but also align with the organization’s budget and goals.

Diversity and Inclusion

Diversity and inclusion are highly emphasized in Malaysia due to its multicultural society. HR plays a crucial role in promoting diversity and ensuring that all employees feel included and valued. This fosters a more creative and productive work environment.

HR Technology

HR in Malaysia has also embraced technology to streamline its processes. HR software and automation have become integral to managing HR tasks efficiently and accurately. This technology aids in recruitment, payroll, and analytics, allowing HR professionals to make data-driven decisions.

Conclusion

HR in Malaysia is essential to any organization. HR professionals are responsible for talent acquisition, training, performance management and diversity in the workplace. They are crucial to the success of businesses in the country. As the business landscape evolves, HR departments will drive growth and ensure a harmonious work environment.

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Brio HR
Brio HR

Written by Brio HR

The most comprehensive, user friendly all in 1 HR software BrioHR automates repetitive tasks and engages employees for maximum productivity.