People Management and Development
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ABSTRACT
An analysis of the strengths and weaknesses of HRD in Boon Koon Group Berhad and how compensations and benefits offered can lead to the performance, creativity and loyalty of the employees which will eventually help the company to achieve its goal and objective.
COMPANY INTRODUCTION AND MANAGEMENT STRUCTURE
Boon Koon Group Berhad is Malaysias well known ISO 9001 certified rebuilt commercial vehicles, bodyworks and accessories manufacturer and distributor (Boon Koon Group Berhad, n.d.). Boon Koon Group Berhad was founded in 2001 by Dato’ Goh Boon Koon and consists of three subsidiaries:
Boon Koon Vehicles Industries Sdn Bhd
First Peninsula Credit Sdn Bhd
Boon Koon Marketing (East Malaysia) Sdn Bhd
The major business activities are rebuilding commercial vehicles such as trucks, van, trailer, etc; and selling equipment such as trunk cabs, hook lift, crane, refrigeration system and etc.
ANALYSIS
Here Below will be discussed the various compensations and benefits provided by Boon Koon Group Berhad to its employees (Appendix A – Boon Koon Group Berhad employment’s policy).
COMPENSATION AND BENEFIT POLICIES
The company strongly believes that their valuable employees play an important role in the success of the company (Boon Koon Group Berhad, n.d.). Thus, a HR department was formed to deal with the employee more effectively especially in the field of compensation and benefit. Appendix B shows the management structure of Company.
Boon Koon Group Berhad, as most of the listed company (BKOON) in Malaysia, practices relatively similar compensations and benefits policy enforced by the Malaysia government.
COMPENSATIONS:
Monthly Salary: The salary scale is based on qualification, working experience, position and year of service in the company with no discrimination against creed, race or religion and within the confinements of existing labour legislations.
Annual Bonus: The bonuses are based on individual performance that is evaluated by the head of department respectively.
Petrol Allowance: This allowance is only for those who stay more than 50KM away from the company. Those who are using company’s transport are not entitled for this allowance.
Attendance Allowance: The operation employees who obtain �Full Attendance’ in a particular month will be awarded with RM40. The managerial and sales employees are not entitled for this allowance.
Car Allowance: Only managerial employees without providing company’s car are entitled for this allowance.
Manager: RM400 per month
Assistant Manager: RM300 per month
Hand Phone Allowance: Hand phone allowance from the range of RM50.00 to RM200.00 will be provided to those whose work related to Sales & Marketing and Logistic only.
Monthly Fixed Allowance: Employee who is working in Painting/Spraying Section (Bodyworks) will be paying this allowance as some sort of appreciate/ encouragement to work under an unpleasant environment.
Sales Incentives: Incentives paid are based on the performance of Sales Representatives and the achievement of sales targets.
Overtime (OT): For employee’s earning more than RM1,500 per month, OT claim is fixed at RM10.00 per hour whereas for those who earn less than RM1,500, OT will be paid based on the table shown in Appendix C. Managerial staff are not eligible to overtime claim.
BENEFITS:
Employment Provident Fund: Both the employer & employee will make monthly contribution to EPF. The amount of contribution will be based on requirement stated in the Employee Provident Fund Act 1991.
Social Security Organisation, (SOCSO): Both the employer & employee are obliged to contribute to SOCSO as stated in SOCSO Act 1965.
Group Personal Accident Insurance: All employees are entitled for this 24 hours accident coverage.
Annual Leave: Only confirmed employees are entitled for this benefit (Appendix D). Unconsumed Annual Leave shall be forfeited in the year-end