Project Completion Report SECTION A: Project profile Project number & title: Project time period: Committee / WG / Fora: Project Overseer Name / Organization / Economy: HRD 01 2013 – Establishing Best Practices on Human Capital Development to Enhance Productivity, Quality, Competitiveness and innovation among SMEs: Research and Workshop May 2013 – December 2014 Date submitted: March 2013 Human Resource Development Working Group / Capacity Building Network Ms. Lee Saw Hoon and Ms. Noeline Chanan Singh / Malaysia Productivity Corporation / Malaysia SECTION B: Project report and reflection 1. Project description: In 3-4 sentences, please describe the project and its main objectives. The project comprised a research and a workshop which was held in Malaysia from the 8-9 December 2014. The main purpose of this project was to identify Human Resource Development best practices and innovation capabilities of SMEs to enhance efficiency. At the same time, developing and promoting the use of appropriate systems and standards to boost productivity of SMEs was also part of the project’s objectives. 2. Meeting objectives: Describe how the project met each of its proposed objectives. Please outline any challenges you may have encountered in delivering the activity. The project identified human capital development frameworks as specified in the objectives in the four economies studied; Chinese Taipei, Korea, Philippines and Malaysia. These include A National Integrated Human Capital and Talent Development framework which emphasises on life-long learning from early childhood, preschool, basic education, tertiary education to professional working life and retiree/second career; a framework on Human Capital Development Pillars: core values and pillars. Core values drive the success of organisations and set them apart from competitors; a model Linking High Performance Work System (HPWS) with Firm’s Performance; Components of Talent Management Framework to help meet the business plan; talent acquisition for key positions both internally and externally; and retention strategies; The Human Resource Index (HRI) which measures and monitors the competency of the workforce and leadership capabilities and Work-Life Balance Framework which is about reconciling work and family life. All challenges faced during this project were overcome by ensuring constant monitoring and coordination among the contractors for the project. For the workshop which was organized by MPC staff, delegation of work and cooperation ensured its success. Evaluation: Describe the process undertaken to evaluate the project upon completion. (e.g. evaluation through participant surveys, peer reviews of outputs, assessments against indicators, statistics demonstrating use of outputs etc.). Provide analysis of results of evaluations conducted and where possible include information on impacts on gender. Evaluation data needs to be included as an appendix. The evaluation and effectiveness of the project was captured via a survey and the evaluation report is attached in Appendix A. 3. Output indicators: Describe the main project outputs below. This may include workshops, tools, research papers, reports, recommendations, best practices, action plans. . Indicators # planned # actual Details or notes 1 (Edit or Insert rows as needed) 2 day workshop 2 day workshop 8 11 # speakers engaged 6 11 # other organizations engaged 4 7 # publications distributed 11 11 - - 4 4 8 8 # workshops / events Workshop and industry visit was organised # participants (M/F) # economies attending # recommendations agreed on Research Papers Best Practices Japan, Korea, Philippines, Indonesia, Chinese Taipei, Peru, Papua New Guinea, Singapore, Viet Nam, Russia, Malaysia. Speakers comprised 5 international and 6 Malaysians who are experts in HR Inputs as resource persons Distributed in soft copies and made available online at MPC’s website As per research report submitted to APEC 4 individual research papers by the contractors and one combined and summary report by the secretary. Best practices in economies namely, Chinese Taipei, Korea, Philippines and Malaysia were documented as part of the research output. Comments: The outputs from this program can be used as inputs for policy and decision makers. The best practices can be adopted and adapted to each economy’s needs, while serving as inputs for action plans in HR at the national or industry level. 4. Outcomes: Describe any specific medium-term changes to policy, processes or behaviour that can be attributed to result from this activity. Please include details on: What indicators were used to measure medium-term impact? (Example indicators: type/number of policies/ regulations/processes changed, % of businesses conforming to new standards, change in sector’s commercial activity, # individual action plans developed, # agencies using resource or tools etc.) Monitoring plans in place and proposed indicators to measure impacts, including any impacts on gender. Please summarise relevant information. The outcomes of the research can be used as benchmarks for economies to adopt and adapt. The frameworks discussed during the workshop such as High Performance Work System (HPWS); Talent Management Framework; talent acquisition and retention strategies; The Human Resource Index (HRI) and Work-Life Balance Framework will serve as tools for individual action plans. The workshop survey also revealed that the participants (74%) had become more knowledgeable after attending the workshop. Networking had been established with other economies and best practices of different economies had been presented at the workshop. These practices can be used as baseline information to formulate policies and identify performance gaps for improvement as well as propose areas for improving their systems. One of the outcomes is the firm based Human Resource Index (HRI) comprising the HR system index and workforce competency index. The HR system index comprises recruitment excellence index (REI); human resource development index (HRDI); performance and compensation index (PCI) and human resource competence index (HRCI). Whereas, the workforce competence index (WCI) consist of human capital index (HCI); and leadership and corporate culture index (LCI). It was found that there was a wide gap in HRI between SMEs and the larger firms. These gaps will enable SMEs to identify their inefficiencies and propose areas for improvement to improve their systems. Such systems have successfully been adopted in Korea, Chinese Taipei and Singapore. All workshop materials have also been distributed via Malaysia Productivity Corporation’s website and there are channels for all participants to communicate with us via our website (www.mpc.gov.my). 5. Participants (compulsory for events): Must be gender-aggregated. May be included as appendix. 2 Economy (Insert rows as needed) # male # female Details Japan 1 - Speaker Korea Chinese Taipei 1 - Contractor 1 - Contractor Singapore Philippines - 1 Speaker - 3 Contractor and participants Indonesia - 2 Participants Peru - 1 Participant Papua New Guinea 1 - Participant Russia 1 - Participant Viet Nam 1 - Participant 65 62 Malaysia Contractor and Participants (see also appendix F for mare details on participants profile Other: Comments: What was the approach undertaken for participant nomination/selection and targeting? Please provide details. What follow-up actions are expected? How will participants/beneficiaries continue to be engaged and supported to progress this work? The selection of participants included a stringent selection process through personalised invitations that were targeted at HR and productivity specialists from both the public and private sectors. Through existing mailing lists and personal contacts the participants were targeted. Since these participants are constantly in touch with MPC through the various programs, and company visits organized, they have been included in the mailing lists for future publications on Competitiveness and HR elements. Such publications include the competitiveness e-bulletin and the info-line. MPC being the partner institute of the Institute of Management Development (IMD) and the World Economic Forum (WEF) will provide relevant HR indicators and topline reports on HR to enable them to be kept updated. All these will be made available on our website as well. A workshop to specifically design models based on the Human Capital Index (HCI) for each economy as well as address weaknesses and close the gaps is proposed. 6. Key findings: Describe 1-3 examples of key findings, challenges or success stories arising from the project (e.g. research or case studies results, policy recommendations, roadblocks to progress on an issue, impacts on gender). Some of the key findings of this research cum workshop is the need for collaborative skills to work for mutual benefit of all economies. Talent mobility is another area of importance in view of the impact of globalization across the regions while excellent human capital is critical to ensure customer satisfaction. Human-centric productivity is also crucial as employees are important elements to achieve an organisation’s outcome. Talent management framework provides a guide for SMEs to emulate. This framework includes defining the company’s vision, mission and core values before developing the business plan. The business plan is supported by a workforce plan comprising both talent acquisition and talent placement. Emulating some of the best human resource practices adopted by award winning companies are some of the initiatives which can be carried out by SMEs. This includes a holistic approach incorporating the eight pillars of human resource development encompassing care for people, career growth, fair and reasonable practices, competitive remuneration packages, flexible working environment, two-way communication and emphasis on growing people. A high performance work culture characterised by four sub-systems such as HR flow; reward systems; employee influence; and work structure which will have a positive impact towards firm performance. All the information shared during the workshop serve as take-aways for the participants as they will be able to adopt these best practices in their own economies and even make recommendations for 3 HR policy making. As far as Malaysia is concerned there are no negative gender related issues and this is evidenced in the participation of both male and female participation at the workshop. MPC is also being updated regularly of current HR indicators by the Institute of Management Development and the World Economic Forum. These indicators will provide benchmarks for the APEC economies and serve as inputs for further discussion among stakeholders and policy makers. 7. Next steps: Describe any planned follow-up steps or projects, such as workshops, postactivity evaluations, or research to assess the impact of this activity. How will the indicators from Question 5 be tracked? How will this activity inform any future APEC activities? MPC will provide the participants the latest updates on HR, productivity and competitiveness issues through its quarterly bulletins namely competitiveness e-bulletin and the info line which is available on- line and informed individually through e-mails. MPC is also partner institute to the IMD and WEF and subscribes to international bulletins on Human Capital these information are always made available on-line through regular updates which can be assessed by our participants. A workshop to address the gaps in HR and design specific HR models to suit each economy is proposed. 8. Feedback for the Secretariat: Do you have suggestions for more effective support by APEC fora or the Secretariat? Any assessment of consultants, experts or other stakeholders to share? The Secretariat examines feedback trends to identify ways to improve our systems. As far as the conduct of the contractors and speakers are concerned the POs have had no had no problem with them. They have been very cooperative and accommodating with regards to adhering to the requirements of this project. We have also received full cooperation and support from the secretariat in all matters relating to the project. To ensure more effective support for the contractors and participants we would like to suggest that a more efficient reimbursement claims system be in place for future programmes. This is to ensure that disbursements are made promptly as many are still waiting for their claims to be processed. On another note the process of claims are also tedious as too much paper work is involved. SECTION C: Budget Attach a detailed breakdown of the APEC- provided project budget, including: Planned costs: (using most recently approved budget figures) Actual expenditures Variance notes: An explanation of any budget line under- or over-spent by 20% or more. All Figures in USD # of Units Unit Rate APEC Funding Utilised Variance Direct Labour Speaker’s honorarium (government officials ineligible) (6 speakers) 1,500 9,000 9,000 5 Malaysian speakers from the public and private sectors spoke at the workshop and they were funded by MPC (250 hours x4 consultants) 80 80,000 80,000 Fully Utilised (130 hours x1 40 5,200 5,200 1 Malaysian speaker from the private sector Contractor (including Contractor’s Secretarial and Researchers’) fees 4 All Figures in USD # of Units Unit Rate APEC Funding USD239 x 3.75 x 6 5,377.50 Utilised Variance secretary Travel (Speaker, Experts, Researchers) Per diem (incl. accommodation and “75% additional payment”) (6 experts for two days workshop (3.75 days) Airfare (6 experts) Rep. of Korea Chinese Taipei Philippines Malaysia Japan Singapore 8,050 5,377.50 Fully Utilised 8,050 Fully Utilised 2,000 1,700 850 400 2,500 600 Travel for Participants (from travel-eligible economies only. Active participants only) Per diem (incl. accommodations and “75% additional payment”) Airfare (restricted economy class) (10 persons from 10 eligible economies for 2 days workshop) (# of persons and trips) 10 person from 10 travel eligible economies: Thailand Indonesia Philippines Viet Nam Papua New Guinea Mexico Chillie Peru Russia China Total USD239 x 3.75 x10 8,962.50 5,377.50 (USD239 x 3.75 x 6) 33,410.00 19,760 Attended by participants from Peru, Russia, Papua New Guiney, The Philippines, Viet Nam, and Indonesia Utilised for Viet Nam, Papua New Guiney, The Philippines, Peru and Russia, Indonesia – Self funded 650 800 850 790 7,000 4,200 6,000 5,500 5,620 2,000 150,000 132,765 12% 5 SECTION D: Appendices Please attach the following documentation to the report as required. Note that the participant contact list is a mandatory requirement for all Project completion reports. Appendices Participant contact list: contact info, gender, job titles (mandatory) Notes Appendix A & B Experts / consultants list: contact info, job titles, roles, gender Appendix C Event Agenda Appendix D Reports, websites or resources created: links or soft copies Links provided Post activity survey or other evaluation data (raw and/or aggregated) Appendix E Other information or resources FOR APEC SECRETARIAT USE ONLY APEC comments: Were APEC project guidelines followed? Could the project have been managed more effectively or easily by the PO? 6