OUM BUSINESS SCHOOL

JANUARY / 2015

BMHR 5103 Human Resources Management

DR. SUMATHI SANGARAN

MATRICULATION NO:

CGS00895201

IDENTITY CARD NO.

900308-08-5279

TELEPHONE NO.

011-26299615

E-MAIL

hesanrajarani@gmail.com

LEARNING CENTRE

Greenhill Learning Centre

ACKNOWLEDGEMENT

I would like to take this opportunity to express my heartfelt appreciation to my facilitator

Dr.Sumathi Sangaran

Without his identification of the assignment strength, guidance and advice on the
assignment development, it would be almost impossible to complete the task as schedule.
Under his supervision and motivation, I am able to perform well in conducting this study.

In addition, we would also like to thank Air-Marine Group which provides me

valuable information as the guidance of the assignment.

Lastly, I stress that I have fully committed and contributed immensely to achieve my
project goals. I have overcome many difficulties during the development of the assignment
and eventually the result is upon satisfactory level completing this study in such a great style.
Thousand thanks again are given to those who have helped me making this assignment can be
done successfully and meet the time frame.

Table of Contents
Contents
Acknowledgement
Chapter 1- The Introduction

Page
4
5

1.0-Brief Background
1.1-Current State Activity
1.2-Organizational Chart
1.3 Human Resources Manager & Background
1.4 S.W.O.T Analysis
Chapter 2 Problem Statement (Gender Pay Gap )

2.0 Main Factors

2.1 Analyzing The Objectives Of The Problem Statement
2.2 Human Capital Statics ( Air-Marine )
2.3 Study on the pay gap between gender > to education.
2.4 Study on the pay gap between gender > to age.
2.5 Study on the pay gap between gender >to marital status & Child
2.6 Study on the pay gap between gender>to type of employment

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8
10
11
12
13
13
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contract.
Chapter 3-Proposed Action

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3.0 Main Action Plan

3.1 Implementation

20
21

Chapter 4 Conclusion & Implications

Chapter 5Reference
Chapter 6-Appendix

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CHAPTER 1 THE INTRODUCTION

1.0 Brief Background
The history of the Air-Marine is a impressive and rich as the loads and projects
handles. The modern Air-Marine is one of the leading in south east asia first class service
provider for the power, oil & gas and petrochemical industry was established in the year of
1981 by its present Managing Director; Mr William Chiew and was originally setup as a
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freight forwarder and customs clearance agent., Further to this as Air-Marine acquired the 1st
project ( Bakun ) in the year of 2005 were a turning point, These key acquisitions helped to
boost the resources of transport and installation equipments and swelled the ranks of highly
skilled and experienced personnel .

Picture 1: Air-Marine Logo

Air-Marine has continually progressed and developed its group of companies, the speed at
Air-Marine have grown and the number of business been become part of Air-Marine have
created the need for one; South East Asia Brand Identity which clears represents Making the
impossible possible. The new venture has combined the technical innovations and
equipments inventory whilst adhering to the strictest safety standards, Air-Marine is a team of
experienced heavy lift enthusiasts offering a complete package of specialized heavy lifting,
crane rental, jacking, skidding ,heavy transport , weighing and total project solution.
Air-Marine Group of Companies; with branch offices around the South East Asia region from
East Malaysia to West Malaysia and Singapore. Air-Marine is now one of the largest
specialist heavy lifting and transport companies in the South East Asia Region. Air-marine
have grown considerably in scale and in the expertise offer, but Air-Marine still a business
inspired by the same passion for engineering solutions that prompted the formation of Air-

Marine Group Of Companies over the 30 years.. As its today, has grown and evolved over
time. Basically it forms a culmination of worldwide experience and expertise from strong,
successful and visionary family-orientated companies , with their roots in moving and lifting
going back in time as far as 1981.
Air-Marine Ensures that it have exceptional management team at every level and the treat
every job as the highest level vital. Various of expertise have been hired from various part of
region such as Nederland, Philippines, Thailand, China, India and many more . This Joint
Team of expertise with the Air-Marine Group Of Companies had made it one of the most
successful company.

1.1 Current State Activity

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Over the years, Air-Marine has developed an extensive portfolio of transportation

projects for the onshore and offshore oil and gas industry. Nevertheless, its commitment to
Zero Lost Time Injury, technology and cost efficiency was the key reasons for Air-Marine
to grab the opportunity. Prime mover transportation is widely utilised for distribution goods

and heavy haulage transportation on the road ways. Weighing is widely utilise on measuring
the dry weight of the ultra heavy topside to the lightest tonnes of manifold using the 3000
metric tan capacity equipment.

Jacking And Skidding is mostly been sub-out the task to our long-term skidding
contractor which having professional expertise in the conducting the skidding operation . As a
the engineering department is the backbone for the first class service , all the operation been
carried out with a well planning and preparation is the key of success .

Picture 2: Heavy Lift & Transporter Services.

Heavy lifting with over 100 of cranes Air Marine Fleet is the largest Malaysian owned
crane company and has been providing crane supply services to the region . Cranes with the
maximum capacities over 150 tonners are now handled by the Heavy Contracting Division.
This includes the companies flagship a Demag CC2000, 400 tonnes crawler crane with super
lift attachment.

Using a range of hydraulic submersible ballast and de-ballast pumps, Air-Marine is

capable of performing very high capacity barge ballasting operations .In Fact Air-Marine
frequently supply ballast and de-ballast systems capable of in excess of 60,000 Cu.m/h. The
system is fully computer monitored and can be used in conjunction with the innovative
skidding equipment to perform sophisticated load-out operations. Control of the Air-Marine
barge ballasting system can be offered at two levels: locally, via the panel on each hydraulic
power pack, or remotely, using in-house designed software. Air-Marine hold a variety of
common barge configurations on database so as to minimize set-up time on new operations.
Logistics Ccapabilities range from the support of single import/export jobs to
complete end-to-end projects involving the transportation of complex freight items across
some of the worlds harshest environments. Air-Marine plan bespoke, multi-modal packages
incorporating all the necessary services from our huge range to execute every delivery as
expeditiously and cost-effectively as possible. All Air-Marines departments and offices across
the South East Asia work seamlessly to achieve this.

Picture 3 : Shifting & Load Out CPP Topside ( 3500MT ) at Sapura Kencana Yard , Lumut
Perak .
Load In-Load Out and Engineering is an authority on load-out systems for platforms
and jackets. This service allows modules to be transported hundreds of meters to the load-out
quay so that several modules can be built at the fabrication facility without impeding access
to the quay, and multiple load-outs can be executed from a single load-out point. The result is
minimum site disruption and maximum efficiency. Alternatively, this will be using our
Goldhofer and Scheluer SPMT it capable of loading in up 25,000 metric tons.

CHAPTER 1.1 BUSINESS OPERATING ENVIROMENT

S.W.O.T Analysis On Air-Marine Projecting Engineering

S.W.O.T Table 1
Strength
Opportunities
Strong brand portfolio
Increasing fuel prices
Brand reputation valued at RM3
Strategic Partnership.
Changing customer need
billion
Niche Market

Weakness
Poor environmental record

Threat
Fluctuating fuel prices
Intense competition

Poor Management Skill & Training

A) Strength

Strong brand portfolio

Air-Marine currently a major sub-contractor wholly owned by Malaysian which services
major in Energy, oil and gas industry like petronas, Sapura Kencana Petroleum , Tabung Haji
Heavy Engineering , Malaysia Marine Heavy Engineering as well MLNG Projects . This
does not only increases the brand awareness but also do satisfy every client group needs,

Brand reputation valued at RM3 billion

Air-Marine one of the Top 30 listed heavy lift brand internationally. Air-Marine is known
for its heavy cargo challenging service.

Niche Market
In southeast Asia , Air-Marine is one of the leading company who strike the most number
of axle line own and number of competitor is as less than 10 nos . For example, ALE
Heavy lift , Sarens International , Foggily and Tat Hong .etc

B) Weakness
Poor environmental record
Air-Marine had an amount of chemical residual been discharge to the public drainage
system without having a chemical disposal management system. This Would be improve by
implementing a proper Chemical disposal system.

Poor Management Skill & Training

Air-Marine had less management trained personnel that should be improve to enhance a
better understanding in a management system . New Employee been hired been allowed to
operate the equipment without a proper theoretical training system. This been retaining more
old skill personnels.

C) Opportunities
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Increasing fuel prices

Increasing in fuel price that is an advantage for more exploration its been done for the
world demand and supply . This has increase more logistics and heavy lift jobs in the oil and
gas industry.

Strategic partnerships
Air-Marine have its strategic joint venture business with Royal Cargo Pvt Ltd , Tat Hong
Sdn Bhd , Sarens JWS Sdn Bhd as well the UES Sdn bhd .

Changing client needs

Air-Marine had upgrade its equipment in having new technology of SPMT ( Self
Propelled Modular Trailer ) as well heavy lift cranes and having the highest capacity of
crawler cranes as it has minimize the break down period as well provide the best technology
to current industry that meets the expectation of the client.

D) Threat

Fluctuating fuel prices

The current moment the crude oil price is having a downward price. This would affect the
projects which are held out of SouthEast Region.

Intense competition
In this niche industry, intense competition from the local players such as Megalift Sdn
Bhd and GS Express Sdn Bhd and Lima Bintang Sdn Bhd having a strong growing
competition as the fabrication demand increases.

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Specific Objectives
To identify how the real business enterprises adapt the tactics to human
resource planning.
To identify the nature of the organization
Study the human resource planning process of Bashundhara group.
Identifying the underlying problems and constraints faced by business
enterprises while doing HRP.
To understand the relation of HRP and other HR functions.
To compare the theoretical and practical aspects of HRP.

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Chapter 2 GOAL & STRATEGIES ON HRPRS

Forms of Recruitment
The organizations differ in terms of their size, business, processes and practices.
A few decisions by the recruitment professionals can affect the productivity and
efficiency of the organization. Air-Marine Group adopts different forms of
recruitment practices according to the specific needs of the organization. There
are two forms of recruitment; centralized and decentralized forms of recruitment:
a) Centralized forms of recruitment: The recruitment practices of an organization
are centralized when the HR / recruitment department at the head office
performs all functions of recruitment. Benefits of the centralized form of
recruitment are:
Reduces administration costs
Better utilization of specialists
Uniformity in recruitment
Interchangeability of staff
b) Decentralized forms of recruitment: Decentralized recruitment practices are
most commonly seen in the case of multinationals operating in different and
diverse business areas. As Bashundhara Group has its own HR department it
uses Centralized forms of recruitment in their recruitment process

3.1 An eye on the future of Air-Marine Group ( Planning Process)

Successful human resource planning is designed to identify an organizations human
resource needs . Air-Marine staff is their most important asset . in human resources , their
culture is about empowering us , both to contribute to their business objectives and to achieve
our own personal and career goals. Air-Marine also keep an eye on future , with their
leadership behaviors initiative aiming to identify the next generations of leaders. Its overall
function is to devise and implement strategies and policies to ensure that they have the right
people with the right skills.
Within that, there are numerous options for us. For example, it could be covering culture
change, leadership development, strategic talent management, coaching and skill
development or alignment of reward with performance.
The strong requirements for human resources in Air-Marine Group .
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 Strong interpersonal and leadership skills.

The ability to see the big picture while delivering on day-to-day goals.
A real interest in how people drive business.
The strength and integrity to take tough decisions.
An interest in coaching and developing people
Culture/Strategic Awareness

Recruitments Process
Recruitment is the process of discovering potential candidates for actual or anticipated
organizational vacancies. It is a process of discovering the candidates for vacant posts which
involves recruitment planning, job analysis and matching between supply and demand of
human resources.

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Air-Marine Group recruitment process is elaborated briefly below:-

Human Resource Planning

Initial Step of recruitment process Air-Marine Group . Annually , Air-Marine Group
determines the number of candidates to be recruited and the qualifications requirements to be
meet to avoid human capital surplus nor deficiency.
Specific request to the managers
Once HR planning had been carried out, the department sends out a requisition to the
concerning manager for its upcoming Human capital needs.

Job openings indentified.

The HR department identify the job openings from the historical data and budget and
planning analysis for upcoming projects .
Job analysis
HR department defines the duties, responsibilities and accountabilities of the jobs it has
identified.

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Recruitment
In the fifth process the department selects the sources of recruitment, It divides into internal
or external recruitment.
Satisfactory pool of recruiters
Among the applicants applied for the vacant position eligible candidates are selected.
Human Capital Statistics

Total Employee In Air-Marine Project Engineering Sdn Bhd

Male = 63
Female = 42

Male
Female
Total

Total Employees
63
42
105

The above table shows the number of people employed in Air-Marine Group. It shows that
out of 105 employee, 63 (60 %) employees are male and the rest 42 (40 %) are female
employees.

Factors Affecting Recruitment Process

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The recruitment function of the organizations is affected and governed by a mix of

various internal and external forces. The internal forces or factors are the factors that can be
controlled by the organization. And the external factors are those factors which cannot be
controlled by the organization. The internal and external forces affecting recruitment function
of Air-Marine Group are per stated :
External Factors:
Image/ Goodwill:
Image of the employer can work as a potential constraint for recruitment. An
organization with positive image and goodwill as an employer finds it easier to attract and
retain employees than an organization with negative image. Air-Marine Group has built an
image which has made their recruitment process much easier to handle.
PoliticalLegalSocial Environment:
Various government regulations prohibiting discrimination in hiring and employment
have direct impact on recruitment practices. Sometime government rules & regulations and
labor union restrict management freedom to select those individuals who it believes would be
the best performers.
Competitors:
The recruitment policies of the competitors sometime have an effect on the
recruitment function of Air-Marine Group. To stay ahead of the competition, many times BG
had to change their recruitment policies according to the policies being followed by the
competitors.

Internal Factors:
Recruitment Policy:
The recruitment policy of an organization specifies the objectives of recruitment and
provides a framework for implementation of recruitment program. It may involve
organizational system to be developed for implementing recruitment programs and
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procedures by filling up vacancies with best qualified people. Though Air-Marine Group has
its recruitment policy it does not follow as it should follow.
Human Resource Planning:
Effective human capital planning helps in determining the gaps present in the existing
manpower of the organization. Every year Air-Marine determines the number of employees
to be recruited and what qualification they must possess.
Size of the organization:
The size of the firm is an important factor in recruitment process. If the organization
is planning to increase its operations and expand its business, it will think of hiring more
personnel, which will handle its operations.
Cost:
Minimization of Cost is what every organization look for and recruitment incur cost
to the employer, therefore, Air-Marine Group try to employ that source of recruitment which
will bear a lower cost of recruitment to the organization for each candidate.
Growth and Expansion:
Organization will employ or think of employing more personnel if it is expanding its
operations

Constraints Faced by BG
Every organization faces some barriers during the recruitment process. HR professionals of
BG are not apart from that. The biggest challenge such professionals face is to source or
recruit the best people or potential candidate for the organization. While asking them several
questions about barriers about recruitment they have pointed out some factors which are
stated below.
Lack of motivation: Recruitment is considered to be a thankless job. Even if the
organization is achieving results, HR department or professionals are not thanked for
recruiting the right employees and performers.
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 Adaptability to globalization: The HR professionals of Bashundhara group are expected

and required to keep in tune with the changing times, i.e. the changes taking place across the
globe. So sometime it becomes little bit difficult for the HR department to align themselves
with the frequent change taking place around the world.
Process analysis: The immediacy and speed of the recruitment process are the main
concerns of the HR in recruitment. The process should be flexible, adaptive and responsive to
the immediate requirements. The recruitment process should also be cost effective.
Strategic prioritization: The emerging new systems are both an opportunity as well as a
challenge for the HR professionals. Therefore, they have to review the staffing needs and
prioritizing the tasks to meet the changes in the market which has become a challenge for the
recruitment professionals of Bashundhara Group.

Conclusion
The globalization of business is forcing managers to struggle with complex issues as they
seek to gain or sustain a competitive advantage. Air-Marine Group is one of the largest Group
of Companies in Malaysia. They enjoy outstanding recruitment and selection practices in
each successful employee hired. So, their hires are better fits in their work groups .AirMarine share values, traits and behaviors that are highly regarded for success in the
organization. They reach the qualified applicants through the use of innovative recruiting
channels.
Traditionally, employers have focused on assessment methods that are highly correlated to
the content of the job, hence most able to predict ability to perform the required duties and
tasks. However, organizations have come to realize that success of the candidate hinges on
more than just the ability to carry out tasks and duties well. The foundation of superior
performance lies in the synergy created by a close fit with the work group and with the
organizations culture. No process is complete without an evaluation of its success. So to
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crown all, it can be said that successful human resource planning system assisted Air-Marine
group to achieve one of the leading places in the business field of Oil & Gas significantly.

RECOMMENDATION
Effective recruitment and selection process can give an organization a competitive edge over
its competitors by saving both time and cost. Air-Marine Group recruits major part of its
employee form external source, especially form Newspaper Ads which cost them much.
However, we have recommended some ideas that might help them to improve their
recruitment and selection process:
Outsourcing firm: The Company may draw required personnel from outsourcing firms. The
outsourcing firms help the organization by the initial screening of the candidates according to
the needs of the organization and creating a suitable pool of talent for the final selection by
the organization as per their needs.
Poaching/Raiding: Buying talent (rather than developing it) is the latest method being
followed by the organizations today. Poaching means employing a competent and
experienced person already working with another reputed company in the same or different
industry; the organization might be a competitor in the industry. A company can attract talent
from another firm by offering attractive pay packages and other terms and conditions, better
than the current benefit and compensation packages.
Using HRIS: HRIS or human resource inventory system, is a online portal or data bank that
helps one organization to find the right people for right positions in the right time. BG can
maintain a well equipped HRIS.
Some other recommendations for Air-Marine Group are given below.
In case of recruitment and selection process Air-Marine extensively use daily newspapers
advertisement. But it should go for online and arrange program in educational institution to
attract qualified people their entry and reentry period.
The application form of BG is time consuming and isnt easy to complete, so it should be
easy to complete.
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 BG should consider different factors like cost of living, taxation, family requirements etc. in
recruiting people.
Several days orientation program should be undertaken to provide a clear picture about the
organization, its culture, rules & regulation, employees and management body.
They should exercise their recruitment policy and should focus on recruiting the best
potential people.
It should ensure that every applicant and employee is treated equally with dignity and
respect.
It should also focus to aid and encourage employees in realizing their full potential.
Selection should be made based on transparency, task oriented and merits.
Optimization of manpower at the time of selection process.
Defining the competent authority to approve each selection.
Recruitment and selection policy should abide by public policy and legislation on hiring
and employment relationship.

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