Contemporary Issues in Human Resource Development
Chapter 12
Contemporary Issues in Human Resource Development
Zabeda Abdul Hamid & AAhad M. Osman-Gani
Introduction
In the current environment of rapid globalisation of economic activities, where most companies
have to operate within a turbulent environment with increasing dependence on changing
technologies and efficiently responding to changing customer demands, organisations are more
pressured to maintain their competitive edge (Singh & Soltani, 2010). Organisations themselves
have modified the way they work in a boundary-less environment, where strategic alliances and
new forms of networks are formed as ways of gaining competitive advantage (Osman-Gani &
Rockstuhl, 2010).
Organisations are increasingly recognising the significant impacts of investments in human
capital for continuous development of relevant competencies in maintaining their competitive
edge. Superior talent is being recognised as the prime source of sustainable competitive
advantage in high performance organisations. Organisations’ main priority is in human resources
development (HRD) to ensure high productivity and performance, as well as to warrant their
existence in the chaotic world (Evangalou & Karacapildis, 2007; Osman-Gani & Tan, 2004,
2009). Underlying this trend is the rapidly changing business environment and the growing need
for effective global managers and professionals with multi-functional fluency, technological
literacy, entrepreneurial skills, and the ability to operate in different cultures, structures and
markets (Chambers, Foulton, Handfield-Jones, Hankin & Michaels, 1998).
Within the new workplace, managers are demanding more from their employees and at the same
time are looking at efficient HRD initiatives as means to maintain an effective workforce.
Geographic boundaries are becoming less defined, and employees who are globally aware and
culturally sensitive to the needs of increasingly techno-savvy and globalised clientele are in hot
demand. Organisations are always on the look-out for ‘promotable’ employees who are not only
skilled and knowledgeable in their own areas of work, but are also flexible in adapting to the
needs of the external environment, especially with the increasing attention being paid to crosscultural awareness and interests in environmental protection (Osman-Gani, 2010; Osman-Gani &
Hashim, 2011).
To succeed in these endeavours, organisations are working hard to implement a variety of
programmes that would help in developing employees who are efficient and effective in the
changing workplace. These programmes are implemented with the objectives of attracting,
retaining and developing high quality talents involving extensive orientation and socialisation
programmes, training and succession planning where learning becomes the core of the HRD
function.
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This chapter discusses the contemporary HRD issues of: (a) Talent management focusing more
on development, utilisation, and retention issues; (b) Knowledge management initiatives of
acquisition, sharing and retention issues; (c) Sustainable development with emphasis on
environmental awareness education and corporate social responsibility; and (d) Globalisation and
cross-cultural HRD issues relevant to developing global managers and creating a culturally
sensitive workforce for effective performance in an increasingly globalised business
environment.
Talent Management & Development
There has been an increase in interest in the development, retention and utilisation of talent
within the workplace, particularly due to the fact that human capital is now the core factor of an
organisation’s success. The concept of Talent Management (TM) is identified as a collection of
typical human resource development and management practices, functions, and activities
specialist areas (Byham, 2001; Chowanec & Newstrom, 1991; Heinen & O'Neill, 2004; Hilton,
2000; Mercer, 2005; Olsen, 2000). However, it has to be realised that talent management is more
than just recruiting, retaining and rewarding employees (Barlow, 2006). Managing talent is about
trying to create a pool of employees who are highly capable, effective and promotable through
the utilisation of talent development and talent retention. Furthermore, TM ensures that the right
people with the right skills are in the right place and engage and focus on the right activities to
achieve targeted business results (Bersin, 2008).
It is estimated that there are nearly 200,000 graduates of public and private universities as well as
polytechnics and community colleges in Malaysia annually (Zabeda, 2009) and there is a need to
tap into this pool of promising young talent that can be developed further for performance
enhancements in the workforce. The Malaysian government has highlighted the issue of
preparing the Malaysian workforce to face the challenges of the dynamic global environment and
achieving the objective of 9th Malaysia plan. The 9th Malaysian Plan focused on HRD by
increasing the nation’s capacity for knowledge and innovation as well as nurture a ‘first-class
mentality’ among the workforce (Zabeda, 2009), whereas the 10th Malaysia Plan can be
considered to be focusing on overall growth and development through partnerships as well as
developing the workforce (Economic Planning Unit, 2010).
According to the 10th Malaysia Plan, a new economic model was necessary if Malaysia were to
join the league of high-income nations and progress. Therefore, a change in the national
economic strategy and public policy was required. The main themes presented in the 10th
Malaysian Plan in the form of 10 main ideas are:
1.
2.
3.
4.
5.
6.
7.
8.
Internally driven, externally aware
Leveraging on our diversity internationally
Transforming to high-income through specialisation
Unleashing productivity-led growth and innovation
Nurturing, attracting and retaining top talent
Ensuring equality of opportunities and safeguarding the vulnerable
Concentrated growth, inclusive development
Supporting effective and smart partnerships
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9. Valuing our environmental endowments
10. Government as a competitive corporation
From the 10th Malaysia plan, it can be seen that Talent Management would be covered under the
5th main idea which is in nurturing, attracting and retaining top talent. In the past, emphasis was
given to the attraction of talents, but development and retention issues are becoming increasingly
challenging issues for organisational management. Considering this, the chapter focuses on the
following major issues:
Talent Development
Talent Development relates to the ways in which organisations recognise that employees are
more than just workers and that their talents need to be enhanced in order to create competitive
advantage. However, some organisations tend to focus on only a small pool of employees whom
they might consider their talents. This practice would unwittingly segregate the majority of
employees who may be retained and given some development opportunities but would not be
given a thorough focus of personalised development provided to the elite group. According to
Stainton (2005), TM should adopt a broad approach by recognising that everyone has the
capability and potential to display talent through talent development. The talent development
strategy should include the continuous enhancement of skills and knowledge that can be utilised
within the organisation (O’Donoghue & Maguire, 2005). Strategic HRD policies and strategies
can play significant roles in the regard.
Many organisations are increasingly realising the implications of talent development, utilisation
and retention, which are considered to be the most significant denominators behind the success
or failure of any organisation irrespective of their level of growth and development (Alam, 2007;
Osman-Gani, 2008). In the past, emphasis has been given on talent management (TM) mostly
focusing on attraction/recruitment factors, while talent development (TD) and talent retention
(TR) issues did not receive much attention. These are now becoming challenging factors for
organisational leaders, and are receiving increasing attention from scholars, practitioners and
researchers. Furthermore, the impending retirement of the baby boomer generation foresees
severe shortages of talents globally. In fact, many organisations are already facing this critical
issue of talent shortage. The Economist magazine mentioned that half of the top people at
America’s 500 leading companies will leave the organisations in the next five years (Petro &
Petty, 2007). As such, an increased focus should be given on TD, while stepping up efforts in
retaining the existing talent pool. An empirical study found (a) significant effects of knowledge
management on talent development, and (b) significant relationships existing among talent
development and talent retention (Osman-Gani, 2008).
Organisational environments generally consist of approximately six main departments namely;
distribution, finance, human resources, marketing, production and research and development
(Wilson, 2005). The difficulty is that there are no quick and easy solutions for human resource
development professionals. The key role of the human resource development specialist is not
only to re-design the workflow and structure of the organisation to cope with changes, but also to
advice on identifying the development needs of people and placing then in jobs where they can
be trained and developed as needed. Furthermore, the issue of developing local talents compared
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to bringing foreign talents is also becoming a sensitive issue that is receiving concerns among
some organisations.
With the initiatives taken in the 10th Malaysia plan, the Malaysian government has established
Talent Corporation in January of 2011. Talent Corporation Malaysia Berhad ('TalentCorp') was
established under the Prime Minister's Department to work closely and build partnerships with
leading companies and government agencies to initiate and facilitate initiatives that will help the
country meet its talent needs (TalentCorp, 2011). The key mission of Talent Corporation is to
help attract foreign talent to Malaysia as well as assist Malaysian professionals residing abroad to
return to Malaysia to contribute to the nation. With the Malaysian government implementing
policies that would attract foreign talents into the country, it would be prudent to review the
plans for developing local talents as well.
Talent Retention
Attracting talented employees is an important process that organisations have to consider.
However, retaining talented employees in the workplace is even more crucial in a turbulent
economic environment. According to Peterson (2005) it is incredibly frustrating to go through a
long hiring process, employee training and providing other necessities, and then have the
employee quit after two months. Retaining key organisational talent requires joined-up thinking,
a clear business-driver link, and a good deal of thought and energy (Glen, 2006). Furthermore,
retaining talented employees is beneficial to organisations as it allows employees to learn from
each other, it allows talented staff to contribute to the organisation and it develops a talent pool
in which a versatile organisation can utilise their skills and abilities.
There has been recent attention to the demands of the knowledge economy, the importance of
human capital and the need to manage employees’ careers as well as to the rising costs of
employee turnover. According to the Malaysian Employers Federation’s Executive Director,
there are 785,000 Malaysians working overseas. Unofficially, the figure is well over 1 million, or
even 1.5 million (Malaysia Today, 2011). Half of those residing overseas are in Singapore while
the rest can be found mostly in Organisation for Economic Co-Operation and Development
(OECD) countries such as the United States, Australia, Canada, New Zealand and the United
Kingdom with more than half of them having tertiary education (NEAC, 2010) which is a
considerable brain-drain. At the same time, the number of skilled expatriates working and
residing in Malaysia has also reduced in the last few years (NEAC, 2010). Although there are
about 2.5million unskilled foreign workers (both legal and illegal) in Malaysia, it is the skilled
workforce that can help develop the talent among the local staff. This is a serious cause for
concern as there is a need to retain talented locals from leaving to work in other countries and at
the same time, try to attract and retain the talented expatriates Malaysia.
To attract and retain employees in the organisation, management should recruit them regardless
of the professional’s race and gender. Rather, job characteristics and competencies should
become the most important factor for talent retention (Osman-Gani, 2006). Some organisations
make the mistake of offering a lucrative compensation package as the only way of retaining
talents. Talented employees were found to look beyond the monetary terms towards the intrinsic
values they obtain from their jobs and careers. Osman-Gani (2006) found in an empirical study
that opportunity for skill development and career prospects are the key factors that talents look
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for in their long-term plans of staying with an organisation. The study shows the importance of
some internal and external organisational factors influencing the talents’ retention decisions.
According to Estiénne (1997), organisations that promote a life-long learning culture create a
conducive environment for staff to develop their skills and this could be a pulling factor for
talented staff to remain within an organisation. Furthermore, it is also the opportunity for an
international exposure that influences many Malaysians to seek employment overseas (Jauhur,
Yusoff, & Khoo, 2009). Many organisations are also formally approaching career development
discussions with meetings being organised between employees and managers as a way to further
develop the talents of employees (Zabeda, 2008). This could create a sense of employee
involvement in their own career progression and could be a factor in the retention of staff.
Talent Utilisation
Talents bring the unique skills and abilities to organisations, and top management should take
necessary measures to utilise these skills and competencies. Talents require opportunities to be
displayed; and proper opportunities need to be provided for everyone to learn, grow and strive to
fulfil their potential. Many companies are now realising the advantages of having a diverse
workforce. An organisation with employees from various backgrounds and cultural diversity
would be able to understand the various niches of the market. An example is when China’s
electronic giant Haier was seeking Singaporean marketing experts as they could understand the
China markets as well as be attuned to the Western markets due to Singapore’s open economic
policies and fluency in the English language (Chan, 2007).
Talent Management Interventions
Some of the ways that are currently being employed to develop talents in the workplace is
through orientation or socialisation programmes (Zabeda, 2008). Through this programme, new
staff (both local and foreign) are given the opportunity to learn more about the organisation
through formal or informal activities such as company initiation activities or informal gatherings
with other staff. The orientation or socialisation programmes help develop an understanding of
business strategy, goals, issues, opportunities, challenges, values and culture within the
organisation which is also part of the talent development framework (Haskins & Shaffer, 2010).
This assists the staff to gain a clearer picture of the workplace as well as expectations on the staff
that can give the avenue in developing their talent.
In addition to orientation or socialisation programmes, training programmes that focus on skills
and competency development are also part of the TM initiatives (Acton & Golden, 2003).
Training programmes can either provide a variety of new skills for the staff or can be used to
upgrade existing skills for better talent development. These training programmes can be
implemented in-house or externally for the betterment of the staff. Current technological
advances can also assist the training programme in a variety of ways by creating simulations as
well as online programmes for the staff to train at their leisure. By utilising these training
programmes, supervisors and heads of departments can develop suitable programmes catered
specifically towards certain areas of expertise that needs further development, hence creating a
pool of talented staff within the organisation. Furthermore, some employees view training as an
element of their career progression and are more inclined to remain in the company when they
know that the company would provide time-off or subsidise the training programme (Zabeda,
2008, Osman-Gani, 2008; 2009).
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The employees themselves need to take some initiatives to determine the kind of training they
would require in order to further develop their own talents. According to Mallough and Kleiner
(2001), it is the responsibility of the individual to determine how they develop themselves further
as skilled and knowledgeable staff. The government of Malaysia has proposed policies to
encourage its students to study in Malaysia as there are a large number of students studying
abroad and to lure back those who decided to settle abroad (Ziguras & Law, 2006). One of the
initiatives implemented was the Brain Gain Malaysia (BGM), a programme initiated and
managed by the Ministry of Science, Technology and Innovation Malaysia (MOSTI) since
December, 2006. The purpose of BGM was to leverage the talent pool of Malaysian diaspora
and/or foreign researchers, scientist, engineers and technopreneurs in order to fast-track
Malaysia’s transition to an innovation-led economy (MOSTI, 2006). It is hoped that through
these interventions, a knowledgeable workforce will be retained in Malaysia for the future
development of the nation.
Knowledge Management
Knowledge Management (KM) is a term that is commonly discussed along with the concept of
developing Human Capital. According to Jacques (2000), the focus of analysis on effect of
capital on production is being replaced by the effect of knowledge on capital in the workplace.
Furthermore, managing the knowledge of employees is also related to managing the talent of
staff in the workplace. Having employees who are not only skilled but also knowledgeable in
their areas of specialisation is an advantage to any organisation. KM assists the organisation in
efficiently utilising knowledge that are already available (Herschel & Jones, 2005) and to coordinate information and the workflow of the employees (Darroch, 2005). The need to manage
the knowledge within the organisation stems from the recent changes in the economic sector. A
global economic revolution from the industrial to the information age has forced organisations to
re-evaluate their corporate strategies and customs (Nordenflycht, 2010).
Knowledge comprises of data and information (Darroch & McNaughton, 2001) and can be
considered as the sum of information that an individual has which he/she utilises and applies in
carrying out their work in order to create value and it is knowledge that makes each individual
unique and valuable to organisations and society as a whole (Syed-Ikhsan & Rowland, 2004).
There are two kinds of knowledge as proposed by Nonaka & Takeuchi (1995) i.e. tacit and
explicit knowledge. Tacit knowledge is complex and difficult to attain whereas explicit
knowledge is knowledge that is easy to identify, measure and document (Nonaka & Takeuchi,
1995). However, Kim, Yu & Lee (2003) go one step further by suggesting a third classification
of knowledge called “Implicit Knowledge” which suggests that there is a type of knowledge that
exists internally but could be converted into explicit knowledge through organisational efforts or
individual motivation. This can be seen in the revised classification by Kim et al. (2003) below:
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Perspectives
Types
Tacit Knowledge
Implicit Knowledge
Revised
Epistemology
Explicit Knowledge
Definition
Knowledge that cannot be
expressed externally
Knowledge that can be
expressed externally when
needed, but currently
exists internally
Knowledge that is already
expressed externally
Source: Kim, Yu & Lee (2003)
KM then is the way managers or organisations would manage the collective knowledge of the
workforce – tacit, explicit and implicit – in order to make the company more efficient and
effective in creating new products and services to cater to the demanding market (Zabeda, 2008).
It needs to be mentioned that KM is not synonymous to Information Technology (IT). Many of
the work on KM in recent years has focused towards technical infrastructures and building KM
databases while other researches still tend to provide a strong affiliation between KM and IT
(Zabeda, 2009). It has to be remembered that KM is much more than IT (Truch, 2001) and this
can be seen from the different schools of thoughts as explained below:
Information School
Roots in computing, artificial intelligence
and systems management
Looks at knowledge based systems as
answer to effective KM
Behavioural School
Roots
in
sociology,
anthropology,
psychology and organisational behaviour.
Looks at understanding human behaviour
and the mental processes of the employees
as the answer to effective KM.
Adapted from Hope & Hope (1997).
Today KM is a combination of both human and technological factors that will assist in the
successful management of knowledge within organisations (Zabeda, 2009). Knowledge in both
tacit and explicit form can be applied within the organisation in various forms, with or without
the use of IT. However, some organisations seem to be lagging behind in the deployment of KM
(Yao, Kam & Chan, 2007). This is because, even though some organisations have KM, it is only
implemented at a minimal level and not implemented as best practices within the organisation
(Syed-Ikhsan & Rowland, 2004).
In Malaysia, there has been some development in the interest in KM but it has been rather slow
compared with the Western world. The first website on KM in Malaysia was KM Talk and it was
established in 2003. At the same time, the Knowledge Management Association of Malaysia
(KMAM) was established around 2004 and is a non-profit organisation under the purview of the
Multimedia Development Corporation Sdn. Bhd. and registered under the Registrar of Society.
KMAM was set up to provide a platform for professional learning, networking and cooperation
among academics, business practitioners, KM practitioners, KM enthusiasts and consultants in
Malaysia and also to develop a balanced view of KM in the context of a learning organization
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and towards achieving the K-economy in Malaysia (KMAM, 2004). However, the activities of
both the KM Talk website and the KMAM seem to be stagnant and there have not been any
progress in terms of events from both parties.
International KM practitioners have visited Malaysia many times to conduct workshops and
forums and those were well attended by local KM practitioners as well as by company personnel
who are involved in some manner of KM in the workplace. Many organisations do not consider
themselves as having a KM initiative, but upon closely looking at their organisational practices,
they were found to incorporate the existing procedures as a part of the KM strategy. For
example, Sunway City (a Malaysian property developer) implements a very comprehensive
website that can cater to the demands of staff, customers and alliances as a way to acquire, share
and store knowledge (Razali, Manaf & Yassin, 2010). On an advanced level, companies like
PETRONAS have begun a more formalised KM initiative with the establishment of the
Knowledge Management Unit, which looks at the overall practices of the organisation that can
be utilised for their KM programmes.
In terms of KM, companies need to consider a holistic approach that combines various practices
that are already being utilised on a daily basis (e.g. documentation, meetings) as a way of
managing the knowledge within their respective organisations. By considering the following
diagram developed by McInerney and LeFevre (2000), it can be seen that KM can be linked to
other elements in relevant fields:
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Collection
Business
Value
Repositories




Best Practices
Reports
Documents
Presentation Slides
Navigation
Active Knowledge
Transfer
Organisational
Learning
Decision Making Tools
Codification
 Expert Knowledge
Base
 Contact Links
 Expert Assistance as
Needed
 Communities of
Practice Index
Communication
 Profiles for customisation
 Pushed reports and news
 Collaboration tools
Figure-1: The Knowledge Management Process (Source: McInerney & LeFevre, 2000).
Although the application of knowledge is one of the elements of KM, this chapter focuses more
on the practical implementations of KM which are; knowledge acquisition, knowledge sharing
and knowledge retention.
Knowledge Acquisition
In this section, practices of how employees can acquire knowledge or how the organisation can
encourage staff to become more knowledgeable are discussed. Organisations have to provide
employees with the facilities and procedures to develop their knowledge capabilities. Employees
themselves can take their own initiative to equip themselves with the latest information and
knowledge regarding their areas of expertise. One of the things that organisations need to do
before they can acquire knowledge is to understand what knowledge they need within an
organisation. A knowledge audit is a necessity because very few people realise what knowledge,
skills and abilities they may have that could be useful for the organisation (Zabeda, 2009).
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According to Civelli (1998), people might be able to do many things but they might not be aware
of their full potential. Different types of knowledge is needed in different units of an organisation
and it is important that the company is aware of the kind of knowledge their employees are
capable of producing (Fu, Chui & Helandar, 2006). Therefore a knowledge audit would help
determine the knowledge base within an organisation for further development.
An organisation’s KM strategy could help to ensure that the right kind of knowledge was being
acquired for the right employees as effectively and efficiently as possible. Research showed that
some organisations encourage their employees to socialise with staff from other departments to
gain more organisation related knowledge that could be useful in various projects and services
(Zabeda, 2008; 2009).
Knowledge Sharing
In order for organisations to develop a solid knowledge base within the organisation, it is vital
that knowledgeable staff share information and knowledge with each other. Knowledge sharing
processes can be conceived as the processes through which employees mutually exchange
knowledge and jointly create new knowledge (van den Hooff & van Weenen, 2004). Thus,
managers are responsible to create and maintain appropriate achievements that enable the
organisations to build a customised approach to knowledge sharing and encourage employees to
contribute to and benefit from organisation knowledge assets (Raub & Wittich, 2004).
Although organisations have a pool of knowledgeable staff, sometimes the staff are not given the
opportunity to learn from each other. At the same time, knowledge from external sources such as
clients, suppliers and distributors would also be extremely useful in creating products and
services that would be appreciated by the general public. Organisations could use various HRD
practices that would help in equipping staff with the opportunity to share knowledge with other
members of the organisation. Danskin, Englis, Solomon, Goldsmith & Davey (2005) maintained
that knowledge must be shared and serve as the foundation for collaboration.
Knowledge that is being utilised within the organisation can be shared so that others may learn
from those experiences (Zabeda, 2009). The situation of a brain drain occurs when talented and
knowledgeable staff leave the organisation and the knowledge they have was not passed on to
others during their tenure at the organisation. If knowledge sharing had taken place among the
workforce, then even though a portion of knowledge is lost, at least a substantive amount of
knowledge is still retained within the organisation among other staff (Zabeda, 2009). According
to Lynn, Skov & Abel (1999), organisational success is positively related to team learning which
is an HRD process, and could be used as a method of knowledge sharing among team-members.
In a study by Zabeda (2008), it was found that some organisations expect their employees to
train other staff upon completion of the organisation sponsored training programmes.
Besides learning from one another, knowledge sharing can also help staff avoid making mistakes
or at least preventing the duplication of errors (McAdam & Reid, 2000; Schulte & Sample,
2006). Hoopes and Postrel (1999) believed that knowledge coupled with co-ordination will be
beneficial to companies in reducing the number of costly mistakes that could have been avoided
if the employees were provided with knowledge that were known by other staff. Therefore,
organisations could encourage higher levels of autonomy for better knowledge sharing among
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employees (Politis, 2003), determine which factors promote or impede the sharing of knowledge
within individuals, groups and respective organisation (van den Hoof & de Ridder, 2004). Fathi,
Eze and Goh (2010) did a study on employees of an electronics manufacturing firm, and found
that collectivism, social network, social trust, shared goals, incentive systems and self-efficacy
are the key determinants of knowledge sharing among employees in Malaysia.
Despite the proponents of knowledge sharing, the lack of in-depth relationship between the
source and recipient of knowledge (Cross & Baird, 2000), lack of time, and non-existence of
knowledge sharing culture in the learning environment (Syed-Ikhsan & Rowland, 2004) and lack
of motivation or rewards to share are likely to impede knowledge sharing (Smith & McKeen,
2003). This was confirmed in a study done by Tehraninasr and Raman (2009), who found that
barriers to KM among organisations in Malaysia include: organisational culture, lack of
knowledge sharing spirit among employees, employee turnover, financial constraints and the fear
of downsizing. In addition, according to Ruppel and Harrington (2001) organisational culture has
been found to influence the successful achievement of knowledge sharing and it could be an
asset or a liability (Lai & Lee, 2007). Organisational culture is favourable when it reinforces
organisational mission, purpose and strategy in sharing knowledge. Everybody in the
organisation needs to understand the importance of how things are done to implement knowledge
efficiency.
Knowledge Retention
When skilled and knowledgeable employees leave the organisation, their skills and knowledge
also leave with them. This ‘brain-drain’ is something organisations would like to avoid or at
least, lessen the impact. There are many ways in which organisations can retain the knowledge of
employees within the company – one of the ways is obviously, retaining the staff (as was
discussed in talent retention), but other ways that can be implemented among others, are to have
the employee retain their knowledge by recording in appropriate manuals, and through Standard
Operating Procedures (SOPs). Some organisations require their staff to prepare manuals, publish
articles as well as give presentations to other staff as a way of sharing knowledge, and also
retaining the knowledge within the company (Zabeda, 2008). Preparing manuals, reports and
publishing articles are useful for explicit knowledge i.e. knowledge that can be easily codified or
compiled. However, in the case of tacit knowledge, the use of discussions, meetings, social
interactions (Hogel, Parboteeah & Munson, 2003), mentor-mentee programmes, apprenticeships,
presentations as well as hands-on involvement in projects are the more appropriate methods of
retaining knowledge.
Knowledge Management Interventions
In order to acquire, share and retain knowledge, organisations need to understand that knowledge
could be acquired, shared and retained in a variety of ways (Geng, Lin & Whinston, 2009), and
accordingly need to employ a wide range of systems and policies to facilitate this process
(Landaeta, 2008). Among the methods suggested by authors as a means for sharing knowledge is
social interaction or networking (Foley, 2001; Puddy, Price & Smith 2001). According to
Mariotti and Delbridge (2001), social interaction facilitates learning by making it possible to
exchange and combine not only codified knowledge, but also tacit knowledge. Through social
networks, it has been proposed that employees could identify, share and work with corporate
knowledge. This method is supported by McKinlay (2002) who says that the prime source of
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knowledge is the immediate team members of the employees and the key dissemination
mechanism is face-to-face exchange. Therefore, organisations should encourage their employees
to share best practices with each other through formal discussions thereby making better use of
the knowledge that exists within a firm (Van Beveren, 2003).
By allowing the employees to interact as well as communicate with one another, they are
exchanging work experiences as well as customer information that are related to their job
spectrum for more efficient public sector (Mavin & Bryans, 2000; van den Hoof & de Ridder,
2004) and for a better work environment (Malone & Yohe, 2002). The knowledge gained is then
used to create new knowledge and convert ideas into valuable products and services through
knowledge innovation by the employees. Furthermore, Xu and Walton (2005) suggest that
organisations gain feedback from customers and utilise that information to improve the services
offered. Through exchanging ideas and knowledge, the employees could identify experts,
provide referrals for those seeking answers and create networking among groups (Bertels &
Savage, 1999; Lesser & Prusak, 2001; Newell, Scarbrough & Swan, 2003; Yao, Kam & Chan,
2007).
By creating experts, the organisation would not only gain knowledgeable staff, but also retain a
large percentage of this knowledge (Geng, Lin & Whinston, 2009). Some of the methods of
retaining knowledge include asking the expert staff to write manuals, keep files on bestpractices, train other employees as well as set up formal and informal networks with colleagues.
While some organisations may see these networks as promoting idle chit-chat, Gonsalves &
Zaino (2001) report that Texaco recognise social networking as a source of knowledge that
employees gather through on-the-job experiences and thus store in their heads. Furthermore,
knowledge transfer need not involve complex computer systems; often times, a simple
conversation will suffice (Cappabianca, 2002; McAdam & Reid, 2000). In addition, strong
alliances and networking with organisation’s partners in terms of collaboration can help acquire
market specific knowledge and firm-specific knowledge necessary for organisational success
(Fu, Chang, Chao & Chiou, 2006; Laycock, 2005; Ratten & Suseno, 2006) as well as help reduce
the overall cost of managing the organisation.
The guidance and supervision of the KM process is important because the development of
leadership and management capabilities to support sustainability are particularly crucial within a
competitive industry (Gloet, 2006). Top management must not only acknowledge the knowledge,
skills and abilities that reside in the organisational members (Komache, 1997) but also manage
the knowledge base effectively and efficiently (He & Wang, 2009). According to Santosus and
Surmacz (2001), an effective KM programme should help a company do one or more of the
following:





Foster innovation by encouraging the free flow of ideas.
Improve customer service by streamlining response time.
Boost revenues by getting products and services to market faster.
Enhance employee retention rates by recognising the value of employees’ knowledge and
rewarding them for it.
Streamline operations and reduce costs by eliminating redundant or unnecessary
processes.
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Therefore, organisations must have knowledge champions to strategise and guide the KM
process (Jones, Herschel & Moesel, 2003) and employees should gain support from top level
management for effective KM implementation (Laycock, 2005). Top management should also
encourage their staff to become more knowledgeable so that the employees would become
experts and they would be able to influence and encourage others to be knowledgeable too
(Politis, 2003). Therefore, sharing knowledge would be easier with the approval and
encouragement of management (He & Wang, 2009) as the lack of leadership by upper levels of
management to encourage the sharing and retention of knowledge are factors that have prevented
efficient KM (Yao, Kam & Chan, 2007).
To assist in the attitudinal and behavioural dimension of KM within an organisation, human
resource management and development plays a large role in achieving an efficient KM process.
HRM and HRD decisions are part and parcel of the organisation’s strategic decision-making
process (Hendry & Pettigrew, 1990; Osman-Gani, 2008) as they have to make sure that the
employees are suitable for the job and have common values with the organisation. Potential
employees need to be carefully screened before the selection process, and decisions on whom to
hire also need to be made. Although the organisation can use KM to build personal expertise
(Wiig, 2002), it is HRD that will need to identify necessary training procedures for better
efficiency and effectiveness within the organisation. It has to be considered that different types
of training are needed for different levels of staff. This includes training new staff on
organisational policies, values and relationships with other units of the company as well as
training higher levels of staff on how to set and guide strategy and direction for the organisation
(Butler, 1996). Highly trained and skilled employees will help the organisation improve its
collection of expertise and enhance its ability to continue providing high quality services
(Komache, 1997; Fu, Chang, Chao & Chiou, 2006).
HRM and HRD would also assist in identifying the organisation’s core business, services and
resources as well as help to supervise the skills necessary to achieve these goals (Komache,
1997). Furthermore, these skills need to be constantly updated and monitored so that the
knowledge obtained from the work experiences can be shared and retained in the organisation
(Landaeta, 2008; Osman-Gani, 2008).
Sustainable Development and Environmental Education
The rapid developments in environmental consciousness on a global scale, has received
increased attention among scholars and professionals on the issues of environmental awareness
and corporate social responsibility (CSR). Companies are now strongly regulated in the way they
manage their organisations in terms of contributions to the societies they operate in. Product
safety, adequate customer service support, and environmentally friendly outputs of the
organisations are carefully monitored by various governments and consumer affairs authorities.
This has increased pressure on organisations to maintain high standards for their production
activities as well as the quality of products and services offered to the public.
Successful sustainability in management is a demanding task from managers. Today’s dynamic
organisations are becoming more adaptable to environmental changes, and are resilient, quick to
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Contemporary Issues in Human Resource Development
change directions, and more customer-centred. Within this environment, HRD professionals
must learn how to manage effectively through planning, organising, leading and controlling the
human resources and be knowledgeable of emerging trends in training and employee skills
development. Improving and protecting the company's reputation as a sustainable leader is an
advantage for relations with employees, customers, investors and other corporate stakeholders.
Chan (2007) emphasised on the changing role of the human resource development professionals
and mentioned HRD must parallel the needs of the changing organisation.
The latest NEM (NEAC, 2010), aims at the continued economic social and cultural progress of
Malaysia, and an enhancement of the quality of the lives of its people, through environmentally
sound sustainable development. The policy seeks to integrate environmental considerations into
developmental activities and in all related decision-making processes, to foster long-term
economic growth and human resource development, and to protect and enhance the environment.
One of the key areas of the Green Strategies outlined in the policy is ‘Education and Awareness’
(Department of Environment Malaysia, 2008). This section will focus on these two important
aspects: Environmental awareness and Corporate Social Responsibility.
Environmental Awareness
Employees who are environmentally aware would be more careful in decisions made in regards
to the overall quality of products and services. This could help organisations prevent litigations
and protests from various authorities that could cost time, money, the reputation of a company.
Being sensitive to the available natural resources, as well as environmentally friendly ways of
managing the resources is becoming a constant demand by people, particularly from relevant
watchdog groups. Therefore, the organisation can assist in developing employees who are not
only environmentally aware but also capable of making the right decision in terms of managing
the natural resources. Appropriate HRD policies and programs should be implemented to
effectively develop such awareness in the organisation.
The ability to manage natural resources as raw material of products for appropriate economic
development, and the ability to control environmental pollution as a major constraint on
productivity and human health, will be critical to successful future development in Malaysia.
Gurchiek (2008) mentioned that the main way organisations can be environmentally responsible
are by encouraging employees to be more environmentally friendly at work. The emphasis
should be on improving, strengthening and reviewing the existing practices and methods, and
also, on learning from previous experiences. For example, lowering blinds in the summer to
conserve energy, using energy-efficient bulbs, powering down computers that are inactive after a
few minutes, making double-sided photocopies etc. are some of the ways to become more
environment friendly. The element of awareness is not sufficient without knowledge,
understanding, the change of attitude and physical participation. For instance, by looking at the
context of environmental issues, there are many individuals that gain knowledge and awareness
regarding the environment, but still remain irresponsible towards their surroundings. They fail to
interpret the environmental awareness as a mutual commitment (Starke, 1991). Effective HRD
interventions can help in developing the required awareness by signifying the importance of, and
developing the motivations of relevant practices in this regard.
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Corporate Social Responsibility(CSR)
In recent years, the general public and authorities are increasingly holding organisations more
accountable for the products and services they produce. The demands of both customers and
government parties alike have forced companies to take strong actions within their organisations
to ensure good corporate governance as well as maintain strong CSR. Employees who
understand the ethical implications for the decisions made and are conscientious of the impact of
the decisions would be careful to ensure good CSR. Organisations should therefore equip
employees with the skills and abilities of being environmentally aware, as well as build a sense
of responsibility through the implementation of appropriate HRD programmes.
Organisations are often faced with the responsibility of developing a corporate environment that
not only accepts cultural diversity but also embraces it within the daily practices. Skilled
employees who are culturally sensitive, socially responsive, flexible and open to experience, are
increasingly becoming more in demand by organisations. In addition, multinational companies
are developing employees who are suitable for international postings as part of the employee’s
career development.
CSR is increasingly becoming the tool to build the image of the corporation. CSR is a
commitment by organisations to behave ethically and take responsibility for the impact of their
business on the environment and society (Nieto, 2009). It is based on the belief that a company
cannot divorce itself from the community in which it operates, and that the company and the
community are interdependent. In essence, CSR becomes a core component in corporate strategy
and the way the company conduct their everyday business. CSR strengthens the very fibre that
builds both internal and external trust and for this to work, everyone in the organisation has to be
engaged and the values must be incorporated into every aspect of the company’s operations
Government policies and regulations can play an important role in this regard. Malaysia has also
proposed that the scope of community projects eligible for tax deduction be extended to include
those that will enhance the income of the poor, as well as conservation and preservation of the
environment to boost the CSR culture (The Star, 2008). In his keynote speech during the
Corporate Social Responsibility Conference held in Kuala Lumpur in 2004, the Prime Minister
mentioned that while the Government does play an important role in encouraging the
development of CSR in the corporate sector, such practices and changes in corporate behaviour
cannot be legislated into being by Acts of Parliament alone (Abdul Razak, 2004). Hence, the
participation of multiple stakeholders is essential to bringing about an environment where
CSR can thrive.
For example, the need to nurture such practices among Malaysian Public Listed Companies is
indisputable. As business leaders, it is incumbent upon them to drive the adoption of good
CSR engagement. According to Bursa Malaysia’s CEO, locally listed corporations are far behind
international standards when it comes to implementing CSR practices, with nearly two-thirds of
those surveyed ranking between poor and average categories. The CEO said that a 2007 survey
undertaken by the exchange revealed that listed companies showed poor understanding and lack
of awareness in incorporating CSR policies and disclosures in their daily business operations,
when the construction sector exhibited little or no engagement in CSR at all (Bernama News,
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Contemporary Issues in Human Resource Development
2008). With appropriate HRD process and relevant HRD interventions, Malaysian organisations
can develop the necessary awareness of CSR and implement various CSR activities that would
be appropriate for the consumers and the society.
Globalisation and Cross-Cultural HRD
With the onset of globalisation as well as the implementation of boundaryless organisations,
employees are being exposed to various cross-cultural experiences in the workplace.
Furthermore, companies are increasingly competing in the global market, and are no longer
restricted to the geographical areas of their domestic markets. The convenience of available
technology has also allowed customers to look beyond their own neighbourhood for products
and services. At the same time, knowledgeable experts are increasingly seeking employment in
other countries as a step towards career development. Besides advancements in science and
technology as well as globalisation, other challenges faced by organisations include social and
economical changes as well as increased innovation by other nations (Osman-Gani, 2011;
Zabeda, 2009). The importance of international and cross-cultural HRD have been increasingly
realised by the multinational companies due to rapid globalisation of business activity. Many
researchers proposed the importance of cross-cultural training that facilitate the successful
communication among the managers, employees, suppliers and customer from various culture
and ethnic group (Osman-Gani, 2000; Osman-Gani & Hashim, 2011; Osman-Gani & Rockstuhl,
2009). This section highlights the significance of globalisation in contemporary organisations,
and emphasises on the role of HRD in developing the required skills and competencies for
effective performance in overseas assignments as well as in multicultural settings.
Globalisation is multi-dimensional, with complex processes impacting the intellectual,
emotional, social, political, economic and cultural dimensions of people’s lives throughout the
entire world (Sofo, 2000). Globalisation makes radical changes in the operating environment and
technology, alter the nature of jobs within organisations. Drucker (1993) stressed much earlier
that globalisation might cause imbalance between demand for labour and skill levels particularly
for internationally relevant workforce skills, and for skills in a non-trade economy. Experiencing
the nature, globalisation seems to be often expensive to implement since people need to learn
new knowledge and skills and adopt new ways to achieve their goals. According to Sofo (2000),
a key function of human resource development is to stimulate capability and continuous learning
to increase mobility of workers to be sensitised to corporate culture within a globalised society.
The priority assigned to training and development turns out to be just as true in the international
arena as it is on the domestic level.
The strategic importance of retaining knowledge and expertise at cross border business level is
reflected in the repatriation process concerning international assignments. Poor repatriation of
expatriates represents a potentially large barrier to successful globalisation and in this sense is a
very costly outcome which often results in the loss of employees with international experience
and unique knowledge and expertise about foreign countries, cultures and markets (Allen &
Alvarez, 1998; Osman-Gani & Hyder, 2008). One of the initiatives of Talent Corp in Malaysia is
the process of attracting foreign professionals as a means of not only adding talents into the
Malaysian workforce, but could also to develop local talents at an international level.
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Global Managers
One of the key developments in HRD currently is the development of global managers
(international and expatriate managers) – managers who are culturally sensitive as well as aware
of the global development of products, services and demands of the clientele. These managers
are being groomed to take global positions in multinational companies, with the ability to work
with people from various cultures and backgrounds. International postings are considered as
promotions in various organisations and this is part of the personalised career management
programme that could be applied in many global companies.
International manager’s repatriation readjustment is also crucial challenges for the HRD in
global operation. Researchers found that career development, physical relocation and networking
opportunities are the vital component for developing repatriation policy for international
managers. The process of repatriation preparation training should be arranged before sending
them to the global assignments (Osman-Gani & Hyder, 2008).
Cultural Diversity Management
According to Bohlander and Snell (2007, p. 648), “human resource departments must be
particularly responsive to the cultural, political, and legal environments both domestically and
abroad when recruiting internationally”. Functions such as operations, sales, and marketing have
generally made great progress in adapting to the global reality. Organisations should realise that
their global human resource function can help them utilise their existing human talent from
across multiple geographic and cultural boundaries. International organisations need to assist and
incorporate their human resource function to meet the challenges they face if they want to create
a truly global workforce. However, the human resource function has typically lagged behind in
developing policies and structures that support globalisation.
Those managing international operations need a unique skill set and the courage to adapt
appropriate techniques to be successful. Organisations need global managers who, different from
traditional expatriate assignments, have the ability to coordinate functional domains on a global
scale (Bartlett & Ghoshal, 1992). They often work in centres of excellence that represent an
organisation’s world source and coordination centre for a given product or expertise (Galbraith,
2000). That is why global managers need to understand the worldwide business environment
from a global perspective, finding a balance between the simultaneous demands of global
integration and national responsiveness (Bartlett & Ghoshal, 1992; Pucik & Saba, 1998). In order
to respond to this challenge, the HRM function must be able to create a set of development
activities and programmes through which global leaders are developed (Morrison, 2000).
Cross-Cultural Awareness Development
In Malaysia, there are many companies with one dominant ethnic group and this could shape or
mould the corporate culture towards the traditions and values of the respective ethnic group
while missing the opportunities of tapping on the experiences & competencies of other groups.
In creating a culturally sensitive work environment, organisations might need to change the
general mindset and attitude about employees from various socio-cultural backgrounds.
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Providing employees with culturally diverse exposures as well as providing sufficient cultural
sensitivity training could help develop a culturally sensitive diverse workforce. This would
create a pool of employees who are sensitive to the needs, values and demands of a culturally
diverse clientele.
“Cultural awareness plays a pivotal role in the gathering and assessment of the human
intelligence that organisations needed” (Wojdakowski, 2007, p.1). Any effort to develop cultural
awareness must address regional history, religious and political factions, geography,
infrastructure, customs, and the local economy, but it also has to go well beyond those to include
somewhat more esoteric realities such as the hierarchy of loyalties to family, clan, and tribe.
Indeed, the ability to manage cultural differences is seen as an example of a firm’s sustainable
competitive advantage (Oliver, 1997), and international HRD professionals can play significant
roles in this regard.
Cultural differences are identified as one of the main roots for the complexity. Thus,
misunderstandings often happen between partners due to a lack of cultural awareness resulting in
conflicts of the relationships. Byram and Morgan (1994) focused on three factors: knowledge,
empathy, and behaviour in their assessment scheme rather than awareness per se in using
awareness as a general objective. Behaviour refers to the actual verbal and non-verbal
application of knowledge and skills as well as empathy. Competence in these factors
demonstrated through verbal and non-verbal communications were identified as critical, as
evidenced through many interview and survey findings (Osman-Gani, 2000). Empathy is the
degree to which the individual can explain knowledge from the perspective of the target culture.
Knowledge refers to the amount of historical and social subject matter that a person has acquired.
An intercultural society that can integrate different national, cultural and religious communities,
not just side by side but in continuous interaction based on mutual knowledge and recognition
(Byram, 1997).
Osman-Gani and Tan (2002) asserted that dynamics of cultural diversity are very complex in
cross-cultural negotiation. They identified that cultural differences influence on the negotiation
style of the organisation. They found the significant importance of proper understanding the
multicultural and multiethnic values within a national entity, and examined the cross-cultural
effects on four different types of negotiation styles (Intuitive, Normative, Analytical and Factual)
of the managers.
Effects of cross-cultural training
Lier (1995) provided a broad definition of the attitude toward language. He suggests that
language awareness is the understanding of an individual’s language competence and its role in
cognition, learning, and social life; concomitantly, as far as such parallelism is theoretically
possible, it represents the awareness of power and control provided by language, and the
awareness of the complex relation between language and culture. Thus, language may represents
one of the most prominent components of ethnicity, which is why experts commonly relate the
alteration of patterns of language use to the level of identification with the referential
ethnic/language community. For example, a case given by Ardichvili (2006, p.99) which might
also occur in the Malaysian culture:
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Contemporary Issues in Human Resource Development
“In Asian cultures, such values as modesty and the desire to save face would constitute a
significant barrier to active participation in online knowledge sharing communities. Posting
questions online could be threatening to people, concerned with saving their own face: in an
open forum like this, there is always a threat of ridicule. At the same time, responding to
questions and making suggestions online could also pose threat to other people’s ‘‘face’’: what if
the posted question was rather trivial, and the ease with which an answer was found hints at the
inquirer’s incompetence? Finally, in cultures that put a significant weight on modesty,
community members are likely to avoid being too active in online and other open-forum
discussions, out of fear of appearing too immodest and boastful”.
It was found that cross-cultural training has great impact on expatriate performance in host
countries. Cross-cultural training influences the expatriate adjustment and job performance
highly. Osman-Gani and Rockstuhl (2009) found that effective cross-cultural training increase
the level of self-efficacy, which raises the level of expatriate competencies to adjust with their
job environment. They further added that HRD managers should plan, design and implement
relevant training for the employees for helping them to increase their self-efficacy considering
their various overseas assignment roles.
Conclusions
In this day and age of intense global competition along with the advancements in technology and
innovation of new tools and techniques, it has become a priority for organisations and nations to
develop a workforce that is talented, knowledgeable and globally relevant. Maintaining the
talents and continuously upgrading their skills, knowledge and capabilities is an issue that has
become the major focus for many organisations as well as for national policy makers. The
problem of brain-drain, not only is a concern among companies but also among nations. This
chapter highlighted issues that are relevant to HRD policies, strategies, processes and
programmes concerning with contemporary organisational issues of talent management and
development, knowledge management, sustainable development with environmental awareness,
and implications of globalisation of operations in increasing multicultural environments of many
organisations, particularly in the fast changing Malaysian context.
Current issues of talent development and retention were discussed by signifying the role of HRD
professionals in this regard. HRD practitioners should recognise that all employees’ hidden
talents need to be identified and relevant strategies should be developed for their continuous
developments for maintaining organisational competitiveness. Organisations should not only
focus on developing an elite group of talents, but also be concerned with retaining those talented
staff in order to ensure continuous growth and development. The section on knowledge
management touched upon the ways to acquire relevant knowledge for developing a more
comprehensive knowledge base; and then share the knowledge within the organisation so that
many employees can benefit and learn from one another. Organisations need to develop
appropriate measures to retain the critical knowledge that are likely to be lost through brain-drain
process for employees leaving the organisation.
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Contemporary Issues in Human Resource Development
The section on sustainable development and environmental education focused on issues relating
to environmental awareness and corporate social responsibility. Environmental awareness
focused on making employees more aware of the natural environment by being more conscious
of their decisions that could make an environmental impact within the workplace and the
community. Furthermore, the section on corporate social responsibility touched upon
maintaining an organisation that takes the responsibility for its actions, and is concerned about
the impacts of all its activities on the society. Finally, the section on Globalisation and Crosscultural HRD emphasises on developing a pool of employees that are sensitive to the global
needs of the corporation, as well as develop cross-cultural awareness of employees’ and
customers’ diverse backgrounds with whom they have to interact continuously. These global
managers and professional will become the key resource of the organisation that will have to
continuously to develop in the dynamic global marketplace. Being culturally aware of the
changes in the world stage and developing people accordingly is a major concern for tomorrow’s
HRD professionals.
Finally, this chapter focused on the major contemporary issues of HRD that could be helpful to
practitioners and academicians alike in understanding the future development of HRD policies,
processes, and interventions for better organisational and national developments in Malaysia.
Keywords: Talent Management, Talent Development, Talent Retention, Knowledge
Management, Knowledge Acquisition, Knowledge Sharing, Knowledge Retention, Sustainable
Development, Environmental Education, Environmental Awareness, Corporate Social
Responsibility, Globalisation, International & Cross-Cultural HRD, Cross-Cultural Awareness,
Cross-Cultural skills Development.
Zabeda Abdul Hamid & AAhad Osman Gani
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Contemporary Issues in Human Resource Development
Authors’ Biographies:
Zabeda Abdul Hamid, BHSc, MSc, PhD, is an Assistant Professor at the Department of
Business Administration, International Islamic University Malaysia (IIUM). She had obtained a
degree in Psychology as well as a Masters and a Ph.D. in Human Resource Management where
she focused on Knowledge Management as her specialisation topic for her doctoral thesis.
Besides teaching undergraduate and postgraduate students in the areas of Knowledge
Management, Organisational Behaviour and Management, Dr. Zabeda is also currently the Head
of the Masters of Business Administration programme under the Graduate School of
Management, IIUM. Her research and publications focuses mainly on Knowledge Management
issues and Dr. Zabeda has also been an invited speaker at international events on Knowledge
Management which included being a guest speaker at a United Nations workshop.
AAhad M. Osman-Gani, MBA, MA, PhD (Ohio State, USA) is a Professor of Business
Administration at the IIUM University in Kuala Lumpur, Malaysia. He is the Editor (Asia) of
International Journal of Training and Development (Wiley-Blackwell), Managing Board
Member of the Human Resource Development International (Routledge), and Editorial Board
Member of several international journals published from USA & UK. He was recognised as the
“Outstanding HRD Scholar 2009” by Academy of HRD for his distinguished records of
contributions to the field of HRD. He had also received several Best Paper Awards from reputed
journals and conferences and other recognitions from professional societies and academic
institutions. He has written extensively in the areas of cross-cultural management and
international HRD, and published more than 150 journal articles, conference papers, book
chapters, case studies, and research monographs. As a prominent international scholar, he has
been the keynote speaker, and conference chair of many scholarly and professional conferences
held across several countries of Asia, America, and Europe. Professor Osman-Gani’s research
interests span the areas of International Human Resource Development, Cross-Cultural
Management, Spirituality in Management, and Leadership & Talent Development.
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