Human Capital Development

Strengthening human resource management by up skilling and upgrading the workforce is one of the
Strategic Reform Initiatives (SRI) to boost competitiveness in this sector. In order to fulfil the manpower
requirement for skilled food industry workforce for both the Government and private sectors, the National
Agriculture Training Centre (NATC) conducts the Malaysia Skills Certification (Sijil Kemahiran
Malaysia6 or SKM) programme for the agriculture sector covering various topics such as food crops,
plantation crops, livestock, fisheries and agro-food processing. Four programmes are available, varying in
duration from six months (Levels 1 and 2) to 12 months (Levels 3 and 47). These courses are conducted
at designated department/agency specialist training institutes under the Ministry of Agriculture and Agrobased Industry. The seven Agriculture Institutes (AI) have also produced 9, 6298 skilled Certificate-level
graduates for both the private and public sectors. The Agriculture Youth Entrepreneur Incubation
Programme (Inkubator Usahawan Belia Tani or IUBT) is also available to rural youths who have been
selected as Taman Kekal Pengeluaran Makanan (TKPM) participants. Short-term agro-processing courses
for rural youth are also conducted at various Pusat Bimbingan Usahawan.
Improved Farm Efficiency
The aim of improving farm efficiency is to ultimately reduce unit production cost. In the palm oil
industry, the key agro-management issues include improved planting materials, nutrition, soil/water
conservation, disease management, pollination and fertility issues, and harvesting and crop recovery
problems. Increasing worker productivity and hence labour efficiency, lies in solving problems related to
the strategic area of harvesting and crop recovery. The MPOB Farm Mechanisation Group on Harvesting
and Evacuation Technology are working on developing mechanical harvesters, field evacuation
machinery for FFB, and a machine for the collection of loose fruits. A number of programmes have been
initiated to develop second echelon farmers as agro entrepreneurs. Incentives are provided through DOA.
Entrepreneur Development Programmes.
There are growing opportunities for downstream processing to value-add agro-products into niche
products, e.g. the increasing demand for frozen durian by China. However, presently the agro processing
industry is constrained by poor supply chain management within the agriculture sector. To address this
constraint, concerted efforts must be made to further strengthen Value Chain Management by linking
upstream primary production and downstream processing. This would provide processors access to a
reliable and consistent supply of agricultural products, while creating markets for primary producers and
enhancing value to agriculture products.

The Rural Transformation Centres (RTC) in Gopeng, Perak and Kota Bharu, Kelantan have been
designated as food parks under EPP8, and function as centres for collection, distribution and marketing of
processed ready-to-eat and packaged food produced by SMEs. Selected anchor companies will be
responsible for product certification, branding, packaging and marketing of these processed foods, and
provide local SMEs with access to local markets, and a springboard into international markets. In 2012,
one participating company secured an agreement with a retail outlet in China for its durian based
products. Figure 4 below simplify the strategies by government to address the employment issue
including turn over in agricultural, food, livestock and poultry industries.

Figure 4: Strategies to Address Business Challenges for Agriculture Sector

Turnover Reduction
Despite of the above industrial effort, each poultry industry should play an important role themselves to
reduce the turnover and achieved better productivity. This will enhance the poultry industry to stay
competitive in the challenging industrial environment. Strategies on how to minimize employee turnover,
confronted with problems of employee turnover, management has several policy options viz. changing (or
improving existing) policies towards recruitment, selection, induction, training, job design and wage
payment. Policy choice, however, must be appropriate to the precise diagnosis of the problem. Employee
turnover attributable to poor selection procedures, for example, is unlikely to improve were the policy

modification to focus exclusively on the induction process. Equally, employee turnover attributable to
wage rates which produce earnings that are not competitive with other firms in the local labour market is
unlikely to decrease were the policy adjustment merely to enhance the organizations provision of on-the
job training opportunities. Given that there is increase in direct and indirect costs of labour turnover,
therefore, management are frequently exhorted to identify the reasons why people leave organizations so
that appropriate action is taken by the management. Extensive research has shown that the following
categories of human capital management factors provides a core set of measures that senior management
can use to increase the effectiveness of their investment in people and improve overall corporate
performance of business: Employee engagement, the organizations capacity to engage, retain, and
optimize the value of its employees hinges on how well jobs are designed, how employees' time is used,
and the commitment and support that is shown to employees by the management would motivate
employees to stay in organizations. Knowledge accessibility, the extent of the organisations
collaborativeness and its capacity for making knowledge and ideas widely available to employees,
would make employees to stay in the organisation. Sharing of information should be made at all levels of
management. This accessibility of information would lead to strong performance from the employees and
creating strong corporate culture Meaghan et al. (2002). Therefore; information accessibility would make
employees feel that they are appreciated for their effort and chances of leaving the organisation are
minimal.
Workforce optimization, the organisations success in optimizing the performance of the employees by
establishing essential processes for getting work done, providing good working conditions, establishing
accountability and making good hiring choices would retain employees in their organisation. The
importance of gaining better understanding of the factors related to recruitment, motivation and retention
of employees is further underscored by rising personnel costs and high rates of employee turnover
(Badawy, 1988; Basta and Johnson, 1989; Garden, 1989; Parden, 1981; Sherman, 1986). With increased
competitiveness on globalizations, managers in many organizations are experiencing greater pressure
from top management to improve recruitment, selection, training, and retention of good employees and in
the long run would encourage employees to stay in organisations. Job involvement describes an
individuals ego involvement with work and indicates the extent to which an individual identifies
psychologically with his/her job (Kanungo, 1982). Involvement in terms of internalizing values about the
goodness or the importance of work made employees not to quit their jobs and these involvements are
related to task characteristics. Workers who have a greater variety of tasks tend stay in the job. Task
characteristics have been found to be potential determinants of turnover among employees (Couger, 1988;
Couger and Kawasaki, 1980; Garden, 1989; Goldstein and Rockart, 1984). These include the five core job

characteristics identified by Hackman and Oldham (1975, 1980): skill variety, which refers to the
opportunity to utilize a variety of valued skills and talents on the job; task identity, or the extent to which
a job requires completion of a whole and identifiable piece of work - that is, doing a job from beginning
to end, with visible results; task significance, which reflects the extent to which the job has a substantial
impact on the lives or work of other people, whether within or outside the organisation; job autonomy, or
the extent to which the job provides freedom, independence, and discretion in scheduling work and
determining procedures that the job provides; and job feedback, which refers to the extent to which the
job provides information about the effectiveness of ones performance (Tor et al., 1997). Involvement
would influence job satisfaction and increase organizational commitment of the employees. Employees
who are more involved in their jobs are more satisfied with their jobs and more committed to their
organization (Blau and Boal, 1989; Brooke and Price, 1989; Brooke et al., 1988; Kanungo, 1982). Job
involvement has also been found to be negatively related to turnover intentions (Blat and Boal, 1989). Job
satisfaction, career satisfaction, and organisational commitment reflect a positive attitude towards the
organization, thus having a direct influence on employee turnover intentions. Job satisfaction, job
involvement and organisational commitment are considered to be related but distinguishable attitudes
(Brooke and Price, 1989). Satisfaction represents an effective response to specific aspects of the job or
career and denotes the pleasurable or positive emotional state resulting from an appraisal of ones job or
career (Locke, 1976; Porter et al., 1974; Williams and Hazer, 1986).
Organisational commitment is an effective response to the whole organisation and the degree of
attachment or loyalty employees feel towards the organisation. Job involvement represents the extent to
which employees are absorbed in or preoccupied with their jobs and the extent to which an individual
identifies with his/her job (Brooke et al., 1988).The degree of commitment and loyalty can be achieved if
management they enrich the jobs, empower and compensate employees properly. Empowerment of
employees could help to enhance the continuity of employees in organisations. Empowered employees
where managers supervise more people than in a traditional hierarchy and delegate more decisions to their
subordinates (Malone, 1997). Managers act like coaches and help employees solve problems. Employees,
he concludes, have increased responsibility. Superiors empowering subordinates by delegating
responsibilities to them leads to subordinates who are more satisfied with their leaders and consider them
to be fair and in turn to perform up to the superiors expectations (Keller and Dansereau, 1995). All these
makes employees to be committed to the organization and chances of quitting are minimal.
Hiring good poultry industry workers is one thing and keeping them is an entirely different thing. Most
poultry processing company realize that their employees are not typically planning on a long-term career

in the food industry. At least, that is the trend according to research by many literature studies. It shows
that employee turnover in a sampling of food industry lingered just over an average of 78% in 1997.
Almost ten years later, another report showed that employee turnover had risen to a rate of 107% for
another sampling of restaurants. Although comparisons between these two findings are not direct, the
research suggests that employee turnover in the food industry is a growing concern for owners and
operators.

Reasons for Food Industry Employees Leave

There are numerous reasons for an employee to leave a job. However, the reasons can become amplified
by the high stress levels and relatively low pay rates in a typical restaurant. Some of the most influential
reasons employees leave their jobs are listed below.

Inadequate Pay Rate

Lack of Recognition

Not Enough Hours

Conflict With Staff or Management

Too Few Opportunities for Advancement

Lack of Employment Benefits

Despite the numerous reasons food industry staff leave their jobs, there are ways we can work to retain
them. Finding and training new employees can be a time-consuming and costly enterprise, so taking the
extra step to keep the best workers around will improve both our business and our peace of mind.
Offer Pay Rises: Studies show that about one third of all employees who choose to leave the workplace
leave for a better paying position elsewhere. You should not only offer competitive wages, but when you
notice an employee with consistently high performance, take the opportunity to reward them with a raise.
Even a small increase is important to keep your best people onboard.
Offer Care and Benefits: Take the time to get to know your employees as people. Learn about their
families, pets, hobbies and passions. When you build a relationship of respect and care, your people will
feel better about coming to work and likely return the sentiment. Another part of taking care of them is
offering them insurance. Whenever possible, offer a benefits package.

Recognize and Reward: Hardworking, committed and ethical employees can be hard to come by. When
you find them, be sure they are appropriately recognized. For instance, praise their work in front of their
peers. This shows the rest of the team that you like what you see. You might reward an employees
achievement with a gift card or some free movie passes. Small gestures like these can let the employee
know his or her efforts are not going unnoticed.
Be as Fair as Possible: Employees are looking for someone who is fair to them, especially when it comes
to pay rates and scheduling. When determining pay rates, pay fairly according to the offer given during
the hiring process. If the employee shows extra effort or increased achievement, then consider discussing
a pay increase. Scheduling can be a difficult task, but attempt to assign shifts based on labor budget
requirements, positions needed and requested time off. Remind employees that you need to run a business
at all times, and that your scheduling choices are made for the good of the company.
Improve Communication: Staff members may say they feel a lack of connection between the rest of the
staff and the management team. As a manager, be sure to promote healthy communication whenever
possible. If you give direction, be sure to follow up afterward. Hold staff meetings frequently. Greet and
talk with each employee daily, or as often as possible. Let staffs members know what is happening in the
business and make them feel that they are a part of its successes.
Resolve Conflicts: Part of a managers responsibilities is to ensure that employees can work together as a
team, even when they do not especially like one another. Speak to the whole team about cooperation and
the importance of running the business. Take further action if needed, such as mediating a private
conversation with just the staff members involved. If the trouble is with your management style, you
might speak privately with the employee to see if you can resolve it. You may have to respectfully
acknowledge the difference in opinion but still make it clear that you are in charge of their paycheck
when all is said and done.
Properly Train All Employees: From day one, all staff members in the restaurant should have an adequate
training program. This should include an orientation to the position and the restaurant, as well as all
necessary information to perform up to standard, including safety training, equipment training and
customer service training, among others. Employees who feel knowledgeable and comfortable in their
surroundings will more often feel successful and content with their position.

Provide Opportunities for Advancement: Whenever possible, consider each staff member for potential
advancement within the business. For example, take note of employees performance and interests, and
offer training programs for hostesses who want to become servers, or dishwashers who would like to
move up to line cooks. These types of advancements boost morale as well as interest in the industry.
Turnover Reduction By 25% within 6 Months
Based on the data collection and literature review there are 6 factors identified to ensure the turnover is
reduce by 25% within next 6 month. These 6 factors are interrelated with each other as the figure 5 below:
Figure 5: Factor for Turnover Intention

Work
Work
Environment
Environment

Employeee
Employeee
Demand
Demand &
&
Desire
Desire

Communicati
Communicati
on
on

Employ
ee
Turnov
er
Hiring
Hiring
Management
Management

Empowereme
Empowereme
nt
nt

Job
Job Insecurity
Insecurity

Work Environment
Providing good working environment is essential because if the employees are uncomfortable they will
not want to stay. They will see that there are other and better options available if we do not provide them
with good working conditions and environment. This can be done by describing the job correctly and
explain the poultry working environment openly to staff at the point of hiring. We must make sure to

describe the job as accurately as possible so candidates will know what is expected. Misconceptions
regarding the job responsibilities and work environment are one of the major causes of employee
turnover. There is also a room of opportunity to provide an employee-friendly work environment. The
conducive work environment must ne accompany with flexible schedules makes for a productive and
satisfied workforce. The stress of balancing work and life diminishes when employees can work around
their outside obligations.
The poultry industry working environment often describe as a wet, dirty, smelly and stuffy working
condition but this was not aware by many workers outside the poultry environment. Below is a graph to
show the reason related to working condition from some poultry industries which cause the employee to
leave:
Graph 1: Staff Turnover Due To Work Environment

Staff Turnover : Work Environemnt

60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

Feedback On Resign Letter

The graph 1 above clearly indicates that the work environment in the poultry industry is one of the major
reasons for employees to leave the employment. The poultry processing companies operating in a cold
environment with temperature ranging at 12C - 14C. This environment was not supported with any
protective clothing such as cold jackets besides the normal uniform. The employee that could not with
stand the environment in long term will leave. The poultry industries primary processing consist of
slaughtering, evisceration and cleaning of raw bird often described as smelly and stuffy. This is due to the
environment and nature needed for the processing of the raw chicken. In some poultry processing

company, there is no proper ventilation to ensure the smell and moist is taken away. Therefore it is
important for poultry processing to ensure the following in order to reduce the turnover related to work
environment
i) Explain at the staffing period on the poultry processing environment
ii) Provide protective clothing against cold environment
iii) Provide proper ventilation for conducive working environment
iv) Review the environment condition on specific intervals for continuous improvement
v) Provide adequate cleaning to ensure the working environment is maintain in good condition
Organization Communication
Effective communication is on of the key to ensure the employees are well informed on the changes in
industry. As we can see the poultry industry environment above and this must be communicated
effectively to all staff. There are some assumptions that need to consider on the effective communication:
i) Some people do not behave in rational ways, they generally have no access to all of the information
needed to make rational decisions they could articulate, and therefore will make rational decisions, unless
there is some breakdown in the communication process which is common. Irrational people rationalize
how they will rationalize their communication measures whether or not it is rational.
ii) Formal logic and empirically verifiable data ought to be the foundation upon which any theory should
rest. All we really need to understand communication in organizations is (a) observable and replicable
behaviors that can be transformed into variables by some form of measurement, and (b) formally
replicable syllogisms that can extend theory from observed data to other groups and settings.
iii) Communication is primarily a mechanical process, in which a message is constructed and encoded by
a sender, transmitted through some channel, then received and decoded by a receiver. Distortion,
represented as any differences between the original and the received messages, can and ought to be
identified and reduced or eliminated.
iv) Organizations are mechanical things, in which the parts (including employees functioning in defined
roles) are interchangeable. What works in one organization will work in another similar organization.
Individual differences can be minimized or even eliminated with careful management techniques.
v) Organizations function as a container within which communication takes place. Any differences in
form or function of communication between that occurring in an organization and in another setting can
be identified and studied as factors affecting the communicative activity.
Therefore considering the above assumption it is important the poultry processing company maintain a
good communication to create excellent communication network. Networks are another aspect of

direction and flow of communication. Communication networks may affect the group's completion of the
assigned task on time, the position of the de factor leader in the group, or they may affect the group
members' satisfaction from occupying certain positions in the network. Although these findings are based
on laboratory experiments, they have important implications for the dynamics of communication in
formal organizations.
Another fact of communication in the organization is the process of one-to-one or interpersonal
communication, between individuals. Such communication may take several forms. Messages may be
verbal (that is, expressed in words), or they may not involve words at all but consist of gestures, facial
expressions, and certain postures ("body language"). Managers do not need answers to operate a
successful business; they need questions. Answers can come from anyone, anytime, anywhere in the
world thanks to the benefits of all the electronic communication tools at our disposal. This has turned the
real job of management into determining what it is the business needs to know, along with the
who/what/where/when and how of learning it. To effectively solve problems, seize opportunities, and
achieve objectives, questions need to be asked by managers and these are the people responsible for the
operation of the enterprise as a whole. Ideally, the meanings sent are the meanings received. This is most
often the case when the messages concern something that can be verified objectively. For example, "This
piece of pipe fits the threads on the coupling." In this case, the receiver of the message can check the
sender's words by actual trial, if necessary. However, when the sender's words describe a feeling or an
opinion about something that cannot be checked objectively, meanings can be very unclear. "This work is
too hard" or "Watergate was politically justified" are examples of opinions or feelings that cannot be
verified. Thus they are subject to interpretation and hence to distorted meanings. The receiver's
background of experience and learning may differ enough from that of the sender to cause significantly
different perceptions and evaluations of the topic under discussion. As we shall see later, such differences
form a basic barrier to communication.
Nonverbal content always accompanies the verbal content of messages. This is reasonably clear in the
case of face-to-face communication. In messages that are conveyed by the telephone, a messenger, or a
letter, the situation or context in which the message is sent becomes part of its non-verbal content. For
example, if the company has been losing money, and in a letter to the production division, the front office
orders a reorganization of the shipping and receiving departments, this could be construed to mean that
some people were going to lose their jobs unless it were made explicitly clear that this would not
occur. A number of variables influence the effectiveness of communication. Some are found in the
environment in which communication takes place, some in the personalities of the sender and the
receiver, and some in the relationship that exists between sender and receiver. These different variables

suggest some of the difficulties of communicating with understanding between two people. The sender
wants to formulate an idea and communicate it to the receiver. This desire to communicate may arise from
his thoughts or feelings or it may have been triggered by something in the environment. The
communication may also be influenced by the relationship between the sender and the receiver, such as
status differences, a staff-line relationship, or a learner-teacher relationship. Whatever its origin,
information travels through a series of filters, both in the sender and in the receiver, and is affected by
different channels, before the idea can be transmitted and re-created in the receiver's mind. Physical
capacities to see, hear, smell, taste, and touch varies between people, so that the image of reality may be
distorted even before the mind goes to work. In addition to physical or sense filters, cognitive filters, or
the way in which an individual's mind interprets the world around him, will influence his assumptions and
feelings. These filters will determine what the sender of a message says, how he says it, and with what
purpose. Filters are present also in the receiver, creating a double complexity that once led Robert Louis
Stevenson to say that human communication is "doubly relative". It takes one person to say something
and another to decide what he said.
Physical and cognitive, including semantic filters (which decide the meaning of words) combine to form a
part of our memory system that helps us respond to reality. Behavior results from an interaction between a
person's internal state and environmental stimuli. What we have learned through past experience becomes
an inventory, or data bank, consisting of values or goals, sets of expectations and preconceptions about
the consequences of acting one way or another, and a variety of possible ways of responding to the
situation. This memory system determines what things we will notice and respond to in the environment.
At the same time, stimuli in the environment help to determine what parts of the memory system will be
activated. Hence, the memory and the environment form an interactive system that causes our behavior.
As this interactive system responds to new experiences, new learnings occur which feed back into
memory and gradually change its content. This process is how people adapt to a changing world.
Informal and formal communication is often used in an organization. Informal communication, generally
associated with interpersonal, horizontal communication, was primarily seen as a potential hindrance to
effective organizational performance. This is no longer the case. Informal communication has become
more important to ensuring the effective conduct of work in modern organizations. Top-down approach:
This is also known as downward communication. This approach is used by the Top Level Management to
communicate to the lower levels. This is used to implement policies, guidelines, etc. In this type of
organizational communication, distortion of the actual information occurs. This could be made effective
by feedbacks. Additionally, four constitutive flows of communication, formal and informal, which
become interrelated in order to constitute organizing and an organization are as follows:

organizational self-structuring

membership negotiation

activity coordination

institutional positioning

Therefore looking at the above description on communication, even though a competitive package was
provided and the right employee candidates for the job are chosen but they are still not sticking around.
This could have to do with a lack of communication on the job. The HR department should ensure
constant praise and correction of problems as the new employee grows. To reduce employee turnover,
find out why they are leaving and, most importantly, what would have changed their mind. It also pays to
have a recognition program in place. You may want to discuss experiences in one-on-one sessions with
employees on a regular basis. To reduce employee turnover, invest in improving the structure of your HR
department. Ensure everyone is working towards this goal from the initial hiring of the job candidate to
the creation and maintenance of a competitive compensation package, and through excellent
communication. All of this adds up to a reduced employee turnover. The type of communication that a
poultry processing company should focus in order to reduce the turnover are as follows:
i) Transparency on the company direction and culture towards better operation management
ii) Staff benefits remuneration that available through personal connection (i.e. offer letter, notice board,
etc.)
iii) New changes in organization, sales output, revenue and productivity issue
iv) Interpersonal communication to identify staff problem and conduct necessary counseling
v) Provide an opportunity for staff to raise their concern through any communication channel such as
suggestion box, proximities and group discussion
Empowerment
As organizations are increasingly asked to operate effectively, they tend to focused on outcome
centered management approaches. This implies the capacity to move from centralized bureaucratic
structures to interrelated but self-governing program / projects teams. A consequence of this shift of
managerial focus is that managers need to foster an organizational process so that the employees assume
responsibility of well-defined tasks of which she/he knows the purpose and the connection with the tasks
of colleagues. Employee empowerment in an is creating an environment where others are equipped and
encouraged to make personal decisions and to feel that they are in in charge of the outcomes of the tasks
for which they have assumed responsibility. Employee empowerment can be achieved where the
organizational culture aims at generating a strong and healthy communication climate and where

motivation and employment processes are aimed at fostering organizational development and learning. In
organizations where senior managers do not empower junior managers decisions are continuously passed
up the hierarchy for resolution. Valuable time is lost and creativity is stifled. Empowerment can be
achieved only if both the "giver of power" (i.e. the higher hierarchical level and the "receiver of power"
(i.e. the lower hierarchical level) agree upon this process and both assume upon themselves the
consequential responsibilities. An empowering management needs to be a "Participative Management",
i.e. a management system whereby managers include employees in the main decision making processes.
Employees tend to be empowered by being part of the management process. Employees become more
vested and committed to the decisions made. In this approach to management is the time required for
consultation is an organizational investment. What the leader should do in order to empower is what the
follower should do in order to be empowered. Just as a philosophy of empowerment has implications for
the people who make up an organization, it also has implications for organizational structures.
Specifically, it calls for organizations to be more decentralized, to share more information, to have in
place a system of contingent rewards, to be team-based, and to align itself with its goals and values. Such
an organization will become an environment adequate for the development of an empowered workforce.
How the organization should be structured in order to empower its employees. Employee empowerment
is a key element of organizational development, and so, even is meant to be a positive change, it is still a
change and therefore its management has to carefully considering the typical dynamics of organizational
and individual change.
Next, provide a training program for all employees. Keep your employees informed. Also if they know
what they are doing they will for more comfortable therefore will most likely stay longer.
Provide a clear path for advance. Another primary reason that employees leave is because they feel that
they have no room to grow or aren't going anywhere with your franchise. If employees know they can
grow and advance they will not feel the need to find a new job. The first step to be taken is having the
ability to 'coach' as part of your interpersonal leadership skill-set. You will need to do this because the
workforce of today has many different 'needs' and priorities and staying in the 'one style fits all' mode i.e.
'command and control', will just not work anymore. This does not mean you should stay in the 'coaching'
style all the time, just that you have it as a skill to be used when needed. The second step is being a
'continual learner.' You may be in charge, at the same time you do not know all the answers. There is a
vast amount of experience and knowledge in your organization and by you being a bit more humble, the
whole company can benefit. 'Learning' and being open to new and different ways of doing things enables
creativity and ultimately competitiveness within the open market. 'Holding' and protecting the 'old ways'

will do nothing for your profitability. The third step is being a 'builder.' This is important because you are
the 'role model' for the company as a whole. You need to "be the change you want to see in the world" to
quote Mahatma Gandhi. Being credible and 'walking your talk' are a couple of ways that you can build
trust. The most important thing to avoid is expecting that your actions and behavior will have no direct
effect on your employees and their decision to stay or move on. It is not all just about the pay.
Incompetent supervisors are often one of the first issues linked to employee turnover. No one wants to
work for a manager who cannot adequately complete the tasks of his or her job, who is not passionate
about the work being done and who fails to provide regular feedback. Providing better employee
supervision as well as enhanced communication helps decrease employee turnover. Therefore the poultry
processing company should come out of the paradigm of local company or small company to move
forwards to empower their staff that will make them stay within the organization. Some of the method
that they should work on is such as:
i) Creating a table discussion involving top and bottom staff, preferably a senior manager to a shop floor
discussion on any important issue
ii) Stop blame game and instead open for open discussion and proactive measure in day to day operation
issue
iii) Creating a buddy system between senior staff and junior staff to increase the ties between them and
generate coaching ability
iv) The top management and senior staff lead by example and walk the talk

Job Insecurity
Job insecurity also influences various organisational attitudes and behaviours, which has consequences
for the organisation too. The perception of job insecurity is frequently associated with deterioration in
organisational commitment, distrust of company management, resistance against organisational change, a
performance decrease and a reduction in organisational citizenship behaviours. Likewise, job insecurity
seems to strengthen employees intention to leave the company. These attitudinal and behavioural
consequences of job insecurity threaten the survival of the organisation. Dissatisfied and less committed
employees are less dedicated to the company and its goals, and tend to ruin its social atmosphere.
Additionally, research shows that especially the best qualified members of the workforce try to leave the
company as soon as possible, because they have better chances of finding a job elsewhere. Their
departure however further weakens the organisations strength and creates new costs, because (expensive
and time-intensive) new recruiting efforts have to be made once again. The conclusion that job insecurity
affects organisational attitudes and behaviours can also be explained in various ways. These reactions

could indicate a form of resentment on the part of the employee, because he or she experiences a violation
of the psychological contract with the employer. As mentioned before, job security is one of the
components of the traditional psychological contract between employer and employee. When less security
is offered, the employee may attempt to restore the resulting imbalance by showing less involvement, less
motivation, and by lowering his or her performance. Reduced company involvement could also be
interpreted as a (passive) coping strategy. By psychologically withdrawing from the organisation, the
aggravating nature of an eventual job loss is reduced beforehand.
Many employees feel dissatisfied with their jobs at one point or another. Some employees leave their jobs
for better opportunities, while others choose to stay. Employees with low job satisfaction can negatively
affect a company because they typically lack motivation, perform poorly and possess negative attitudes.
These symptoms can directly affect a companys bottom line. Managers should understand the reasons
employees are unhappy at work. Understanding the causes can help managers find the right solutions and
the main cause for insecurity is listed below:
Underpaid
One of the primary reasons for job dissatisfaction results from companies underpaying workers. Peter
Cohan of Daily Finance said in an article that the Economic Policy institute reported that workers income
is lagging behind inflation as of 2011. This means that employees must stretch their dollar further to buy
higher-priced goods and services. Not only must employees deal with stagnant wages but also high costs
for health insurance. The stress of paying bills with limited income causes many workers to feel
dissatisfied with their jobs.
Limited Career Growth and Advancement
A lack of career growth and advancement is another reason why workers are dissatisfied at their jobs.
Employees who feel stuck in their job position are less motivated to maintain high productivity than those
who do not. Workers feel valued when employers include them in their long-term plans and show their
appreciation through promotions. Employees who move up in an organization and receive just
compensation to reflect their title and responsibility changes usually commit themselves to the company
for the long term.
Lack of Interest
A lack of interest in the work is another reason why employees are unhappy. Most employees want to
perform job duties that are engaging and challenging. Monotonous work causes an employee to

experience boredom. Bored and unchallenged employees experience little incentive to concern
themselves with workplace productivity. According to Lise M. Saari and Timothy Judge from the
University of Tennessee, Martin, the nature of employees' work accounts for the most situational
influence in workplace satisfaction.
Poor Management
The management team plays an important role within an organization. Managers are responsible for
motivating employees, planning, organizing and controlling within the organization. A key reason
employees perform poorly in the workplace is poor management. Managers with poor leadership skills
tend to offer little feedback on employees performances. Micromanaging and dictating to employees
instead of motivating them can cause a decrease in employee productivity. Some organizations possess
highly political cultures that tend to discourage workers from believing the roles they fill are important to
the organization.
Graph 2: Staff Perception on Job Insecurity

Perception on Job Insecurity

40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

Feedback On Job Insecurity

Based on the graph 2 above it is clear that the fear of underpaid and less chances of career advancement
as cause the staff to feel the insecurity in poultry industries and decided to leave the organisation.
However the underpaid or lower paid in the poultry industries is common among the entire player in the
world. It was surveyed that food processing is the lowest paid sector among the agriculture and
livestocks industry. The opportunity for growth often limited due to the poultry company size that falls

within medium and small industries categories. Despite of the challenges noted in the poultry industry
environment the following measure can be taken by poultry processing companies to ensure job
insecurity in not a threat:
i) Recognizing employee success
It is important to let your employees know that their work does not go unnoticed. Employees are more
willing to stay with a company if they feel a sense of pride and success in their work. When employees
meet or succeed your expectations, show your appreciation for a job well done.
ii) Career Advancement Opportunities
Whenever possible, provide opportunities within the company for cross-training and career progression.
Employees are seeking to develop themselves, and offering that opportunity to them may provide the
satisfaction and stability they are seeking.
iii) Exit Interviews
The bottom line is that it's extremely important to understand the impact of turnover in your business and
determine the reasons why employees are leaving. The most effective way to do so is by conducting exit
interviews with departing employees. This strategy alone will help you make adjustments that will reduce
future turnover.
iv) Matching benefits to industry
The organization should analyses the market demand for pay and benefits offered by the industry in
common. Normally the employees especially the young generation often looking for companies that
comparably better that the current company. In that way, they can demand or grab the opportunity for
better benefits offered. For example the career advancement, pay, benefit, bonus and gratitude are always
higher in multinational companies compared to Malaysian owned poultry processing company. This are
the area the Malaysian owned poultry processing company should match or closely match.

Hiring Management
Recruitment refers to the overall process of attracting, selecting and appointing suitable candidates to a
one or more jobs within an organization, either permanent or temporary. The term may sometimes be
defined as incorporating activities which take place ahead of attracting people, such as defining the job
requirements and person specification, as well as after the individual has joined the organization, such as

induction and onboarding. Recruitment can also refer to processes involved in choosing individuals for
unpaid positions, such as voluntary roles or training programs. Depending on the size and practices of the
organization, recruitment may be undertaken in-house by managers, human resource generalists and/or
recruitment specialists. Alternatively, parts of the process may be undertaken by public-sector
employment agencies, commercial recruitment agencies, or specialist search consultancies. The use of
internet-based services and computer technologies to support all aspects of recruitment activity and
processes has become widespread and has revolutionized recruitment activities ranging from recruitment
agencies sourcing candidates through online job boards and social media, or human resource
professionals using assessment or job simulation programs as part of the selection process.
The first step is to put time into improving the hiring process. Selecting the best job candidates is critical.
It will ensure they have the skills, desire, and ability to do the job at hand. Though they may look good on
paper, the HR department should conduct throughout investigation into these individuals to ensure the job
applicant has the ability to maintain working in the environment. Factors such as culture, attitude, and
drive are important. If you are hiring the right people but you are not keeping them long enough, it may
be time to consider your compensation package. You should offer a competitive compensation package
that is as good as the competition. This may mean offering a flexible work schedule, clear health care, a
positive work environment, and a bonus structure. When an organization doing this will help to ensure
your business has the means to hold onto top talent when it is found. The company must clearly address
the compensation and benefits from the beginning of the hiring process. This is the main reasons an
employee will leave. They need to know what they are making and what they receive by working at your
franchise. One main way to avoid employee turnover is to hire the right people from the start. Know what
you want and what you don't want for your organization. Take the time to interview each applicant and
get a good feel for them. As a previous trainer for a large company, I could tell within a few minutes if
someone was going to work out, and I also knew exactly which managers were conducting interviews.

Employee Demand Ability

As the economic climate is changing rapidly and markets are becoming more and more dynamic,
companies are seeking sustainable competitive advantages through the use of human capital. Over the last
few decades there have been considerable changes in the workplace, along with noticeable development
of new technologies, causing radical changes in the job market. According to Kristof (1996), most
researchers define fit as the compatibility between the person and the environment. A possible evolution

of a job due to a variety of reasons, such as technology, market forces or even the customers can have a
direct effect on a well-planned fit causing its change. This is the reason why nowadays employers make
hiring decisions based on candidates fit with the organization. This can be done by denveloping
competitive compensation and benefit packages. Understand and research market pay ranges in your area
and consider the value of benefits and employee perks; offering such extras to your workforce may be the
key to your retention efforts. However there is something more than what the pay and benefits can do for
employees which are the challenges that employee desire. Employees want to be challenged in the job
they are performing to feel like they are growing both personally and professionally when challenged
with attainable assignments. Employees always want an ability to demand and fulfill the desires. The
main 5 important aspect that employees wants and an ability to demand which poultry processing
companies should explore are:

i) Respect is the fundamental right of every employee in every workplace. If people feel as if they are
treated with respect, they usually respond with respect and dignified actions. Part of respect is praise and
feedback so people know how they are doing at work. Employees want to feel valued and respected.
They want to earn their leaders respect but equally desire their leaders not to judge them (for whatever
reason). No unconscious bias allowed. Employees want to be fairly compensated and never taken
advantage of by their boss. They want a transparent relationship with their leader one that allows them
to share their opinions and points of view without running the risk of looking disloyal or untrustworthy.

ii) Employees want to feel as if they are members of the in-crowd. This means that they know and have
access to information as quickly as anyone else in your workplace. High-potential employees want a
leader that allows them to learn from their mistakes and guides them to overcome the burdens associated
with failure. If a leader limits their employees ability to unleash their passionate pursuits of excellence,
they will never discover their full potential. Employees want leaders to trust them, not micromanage
them. They want leaders to encourage risk taking and exploration that allows them to learn and cultivate
capabilities on the job. If not, how else will they earn trust?

iii) Employees want to learn new skills, develop their capabilities, and grow their knowledge and careers.
Making developmental opportunities available to each employee demonstrates your commitment to

helping them develop their careers. They appreciate this. Employees know when their leaders are ready to
invest their time and company resources to assure their professional growth and development remains on
track. Employees dont want their leaders to throw them a bone of recognition; they desire a long-term
investment in their growth from their leaders to assure their skill sets stay ahead of the curve. A genuine
investment that reflects a long term commitment in an employees future with the organization is a great
way to retain top talent.

iv) Employees want to have an impact on decisions that are made about their jobs. Employee involvement
and employee empowerment help to create engaged employees willing to put forth their discretionary
energy for the business. Employees with lofty career aspirations want a leader that will give them a seat at
the table. They want a leader who has enough self-trust and confidence to let their subordinates in the
room with their own boss. High-potential employees want their capabilities to be showcased by those in
roles of influence. The high-potential employee knows that their talent is constantly being evaluated
within an organization and in such a high-pressure environment; its not always easy for their potential to
be discovered by people of influence. The best leaders are the ones that inherently know their leadership
is being evaluated when they showcase the talent of their high-potentials. If they dont see it that way,
then there exists a problem that puts the high-potentials futures at risk.

v) Employees do want leadership. They want a sense of being on the right track, going somewhere that
has been defined and is important. They like being part of something bigger than themselves. Employees
like to know that someone, who is trustworthy, is in charge. Employees want a leader that has their back
and is willing to open new doors of opportunity. Sounds like a nice gesture but this is asking a leader to
do a lot when they already have their hands full. Sponsoring an employees advancement signifies the
ultimate commitment. Sponsorship automatically puts a leader at risk and thus employees must go about
their relationships with a mindset of delivering their A-game at all times. Employees that seek the
opportunity for advancement desire to be challenged by their leaders. As a leader, are you capable of
this? Employees want confident leaders that are not threatened by their potential. It becomes increasingly
difficult for employees to advance when they have a boss that is only looking out for them. It is a leaders
responsibility to discover and groom their successor. Instead of being threatened, they should spend their
time becoming a better leader who can more effectively serve others without fearing their job is at risk.