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3.1 STAFFING 15 - 16









Pharmaniaga Berhad, a member of Boustead Group is an investment holding company

listed on the Main Board of Bursa Malaysia. Pharmaniaga Berhad was founded in 1994 and
nowadays it is one of the largest integrated local healthcare company and leading
pharmaceutical companies in Malaysia. Pharmaniaga was incorporated on August 1998 and
become a first local healthcare company listed on Bursa Malaysia Securities. Pharmaniaga
Berhad has blazed a trail within the healthcare industry as a provider of quality products and
services. Pharmaniaga also has a growing global presence.

Pharmaniaga Berhad is currently enlisting a capacity of 3384 strong employee and staff
force. They also employ internship in their company. As part of the company’s drive to become
a total integrated healthcare solutions provider, their core businesses span across a wide
spectrum of the industry. The company’s principal activities involves in generic
pharmaceuticals manufacturing, logistics and distribution of pharmaceutical and medical
products, supply of medical products and services, sales and marketing as well as hospital
equipping. Drawing upon the synergies of these activities, Pharmaniaga has expanded its reach
to Malaysians through the establishment of community pharmacy. The company’s headquarter
is located at Kawasan Perindustrian Bukit Raja Selatan, Shah Alam, Selangor Darul Ehsan.
Pharmaniaga operates through 4 main corporate structure segments in Pharmaniaga which is
distribution and logistics, manufacturing, commercial and other investments. The
organizational chart of Pharmaniaga Berhad is as below:

of the Director Director Director Director
Board Sulaiman Fahmi Bin Suffian Haji Izzat
Lodin Wok Abdullah Ismail Haron Othman

Regulatory Manufactur
CFO COO Sales Logistics Secretary
Affairs ing

With a vision to be the premier Malaysian pharmaceuticals company, Pharmaniaga is
guided by its philosophy of ‘doing business with a conscience’ and is empowered by its mission
of Passion for Patients which is providing quality products and superior services by
professional, committed and caring employees. Above all, they emphasize on delivering their
promises to their clients with the highest standards of excellence, as they seek to create a lasting
legacy of doing business with a conscience.

Pharmaniaga Berhad also provide job opportunities towards the community. The
company seek individuals with the same integrity and professionalism that share their passion
for excellence and providing high quality products and services to be part of Pharmaniaga
family. The applicants can browse the company website and deposit their resume on the
website. The applicants can choose their preferred level according to their education which is
manager, non-executive or all levels. Besides, applicants can also select their specialization
based on the manufacturing, purchasing or material management, retail sales, science and
technology or all specializations. The positions that the company are recruiting is displaying
on the website, the location, level and specialization also stated clearly on the website. If
applicants do not find any relevant opportunities, they are encouraged to submit a general

At the workplace, Pharmaniaga is prioritizing the relationships they build with their
employees. The company strives to enhance their adherence to the commitments of employee
relations, industrial relations, employee development, safety and security, employee welfare
and their respective objectives.

For employee relations, Pharmaniaga maintain employer-employee relationships that

contribute to satisfactory productivity, motivation and morale. Besides, the company enhance
value proposition of Pharmaniaga as the preferred employer and conduct activities or programs
to enhance working relationships among staff.

For industrial relations, the company establish a harmonious working environment for
employees. Moreover, the company prevent and resolve problems involving individuals which
arise out of or affect work situations. The company also periodically update staff on relevant
sections of the Employment Act, Industrial Act, Trade Union Act and their own Code of

For employee development, the company emphasize on investing in the continuous

learning and development of employees. Pharmaniaga also ensure talent pool is given exposure

in local and international seminars and conferences to keep abreast with the latest management
and investment best practices. Besides, the company initiate Training Needs Analysis to review
and recommend training requirements for employees so that course objectives are in line with
organizational goals.

For safety and security, Pharmaniaga ensure the security of personnel and property
within the office premise. Moreover, the company also manage the parking arrangements and
traffic flow of vehicles in office compound and reserve designated parking space to expecting
mothers and staff with health problems.

For employee welfare, the company establish a sports and recreational club to organize
outings, activities and events. Pharmaniaga also set up a Joint Consultative Council and a Surau
Committee to cater to different employee needs. Besides, the company also provide financial
assistance (alms/zakat) to eligible staff with the guidance of Lembaga Zakat Selangor.

For corporate governance and policies, at Pharmaniaga, they ensure the highest
standards of integrity, accountability and professionalism in all that they do. Thus they are
guided by a governance and accountability framework that establishes a clear structure of
responsibility, authority and governance. This is consistent with their core values of respect,
integrity, teamwork and excellence. Their policies are listed as whistleblowing, anti-bribery,
gifting, anti-money laundering, anti-bribery management system policy and objectives, and
vendor code of ethics.

For customer, Pharmaniaga manage product complaints and provide assistance in any
investigation relating to those complaints. All calls and inquiries for their customers are
channelled to their Customer Care Call Centre. As the custodian of the Concession Agreement
to the Ministry of Health, Pharmaniaga is in constant contact with more than 1,000 public sector
customers. As an improvement initiative to enhance communication with their broad based
customers, they have expanded this service to cater for private sector customers as well as
adding Sunday as a service day.

Pharmaniaga Berhad has a 10-year concession agreement with the Health Ministry
(MoH) to supply medication to government hospitals and will end in November this year will
continue its contract following a review of all concessions under the new Pakatan Harapan
government after the 14th General Election. Pharmaniaga’s contract began on Dec 1, 2009, to
purchase, store, supply, as well as distribute approved drugs and medical products to
government hospitals and clinics. Pharmaniaga supplies the government with one-third of

medication to public hospitals and has been complying with its contract requirements and
technical specifications.

Pharmaniaga Berhad already operating in 38 sites across 3 countries (Malaysia,

Indonesia & Vietnam) the Pharmaniaga Group is positioned to be a regional player in the
international pharmaceuticals area. Pharmaniaga become a member of United Engineers (M)
Bhd (UEM Group) and gained the status of Government Linked Company (GLC). The
company also builds a strong international presence in Brunei, Hong Kong, Singapore,
Zimbabwe, Iraq etc. The market share of Pharmaniaga Berhad is reporting to RM2.42 with an
increasing of 1.26%.

In the business area, Pharmaniaga has built an excellent distribution network that
spreads throughout Malaysia with the four main distribution centers in Juru, Shah Alam,
Kinabalu and Kuching. Over in Indonesia, their distribution network comprises 29 branches
and the main warehouses was located in Jakarta, Surabaya and Bandung. Pharmaniaga also
have excellent project management skill to make sure their customers meet with their
timeliness and objective. Their projects are requiring thoroughness, coordination and flexibility
and provide the integrated, comprehensive and systematic hospital equipment management
services. Furthermore, Pharmaniaga also achieves the quality standard in their laboratory and
product. In marketing, Pharmaniaga was driven a deep understand of human behaviour and try
to provide their agents, partners, customers or consumers an excellent services.


Pharmaniaga Berhad as the largest integrated pharmaceutical group in Malaysia had make good
use of technology to manufacture, operate and manage their business. The company had
provide and improve different technologies to achieve their goals and objectives in the aspects
of manufacturing sites, operating procedures and also human resource managing.


In 2018, the key developments in the company involved the technology improvement
such as the completion of SAP S/4 HANA (High Performance Analytic Appliance) software
implementation that used at all local manufacturing sites in Malaysia. SAP S/4 HANA is one
of the popular enterprise-wide system (ERP), it can also called relational database management
system that support the whole business functional requirements. SAP S/4 HANA is the digital
core that integrates technologies such as the Internet of Things (IoT), Big Data, real-time
analytics, mobile, business networks, third-party systems and so on which enables enterprises
to work with large amounts of granular data to better understand customer demands, behaviours
and preferences. By using SAP S/4 HANA enterprise resource planning system, the company
can simplified information technology process in which one platform to deploy for all sites. It
can be seen that this database server had eliminate the need for duplicating data entry to prevent
the data redundancy. Therefore, it can facilitate the effective use of all resources, machines and
also capacities of the company by using only one database.

In addition, the aim of Pharmaniaga using the best in class SAP S/4 HANA system is
to enhance the efficiency and productivity of the company by streamlining the methods of
managing for production orders, quality management, delivery and product costing. It shows
that this software is a integration across the enterprise resource planning processes which
included sales, production, accounting and finance, to allow the flow of information become
more efficient. Moreover, the utilization of this software is more to the manufacturing and
operating departments but it will also related and linked to the other departments for further
research and development by using the functions of the software.


Furthermore, Pharmaniaga has also performed well in their business operations with
the aid of technology to manage it although they have confront some teething troubles which
impacting the order processing rate. The technology system of the company used is Robotics

Process Automation (RPA) technology that focusing more on the order processing and
invoicing, interfacing to the Government’s e-procurement system (ePerolehan).

RPA is a digital workforce of software robots which can execute the Pharmaniaga’s
business process in ordering and delivering. The company has use this system that combined
with Artificial Intelligence and also machine learning capabilities to overcome the issues about
order processing rate by sped up the processes that can run for 24 hours a day, 7 days a week.
It had also facilitate Pharmaniaga’s product planning by using this Business Intelligence. The
figure below shows how the RPA influence to the product order processing.

Other than that, the company had also conscious about the need to embrace with the
Industry 4.0. Therefore, Pharmaniaga exploring and adopted the new information technology
processes to further enhance operational efficiencies which not only included Robotic Process
Automation and Artificial Intelligence-driven solutions but they also using the mobile sales
systems, and also e-Human Resource and e-commerce platforms.


In order to improve the capacity and network efficiencies of Pharmaniaga, it has also
enabled the company to boost delivery lead time by using the warehouse footprint or it can be
called footprint warehouse management systems. Warehouse footprint is the ultimate supply
chain management system which developed to automate the entire operations and tasks within
the warehouse. Warehouse footprint is using wireless computing and barcode technology to
capture all of the information that about the operations in the warehouse in real-time which this
system can transform Pharmaniaga’s operation information such as into a paperless

environment. By using the latest updated Microsoft tools allows the company to make the
application navigate and even create a much friendlier user interface in their handled version
to ensure that the users convenient to use. In addition, the information of operation within
warehouse for Pharmaniaga can also be shared and analysed by the company in real-time which
will improving the productivity, efficiencies and satisfy the customers by using this warehouse
footprint with the standard features such as in receiving, putaway, picking, inventory
management, packing, and shipping.


Moreover, Pharmaniaga has created also a web portal or HR portal which enable the
employers and employees to use it for managing and signing up their personal information and
also manage the data relevant to the company anytime and anywhere by using the device such
as smartphone, laptop or even tablets. The interface and subsystem of web portal for
Pharmaniaga is involving the home page, profile, products, services, e-tender, customer care,
pharmaniaga code of conduct, and also e-office. The information of web portal had involved
with manufacturing sites and also management of human resources.

In the aspects of products and services which considered as the operating and
manufacturing sites, there had involved with the description of different items that allow the
employees, investors and customers to refer and access such as pharmaceuticals, medical
equipment, consumer healthcare, approved product purchase list, manufacturing, logistics and

distribution, customer care, medical equipping and also community pharmacy by using the
company’s web portal.

However, in the aspects of profile and e-office which are more tend to the human
resource management. Pharmaniaga’s e-office enables the whole company and also consumers
to be connected anywhere in the world by just access through the internet. Employees and
managers can also use this web portal to check their emails by using the subsystem which is
webmail or even applying for a leave in emergency by using e-form. In e-office, it contains
also intranet which used by both employees and employers to manage their business that can
save more time and labour. E-procurement and OneHR that connected between employees and
administrator are also including in this application.

It can be seen that the employees can access their personal and company information
by using this web portal. The profile in the web portal had listed down the business overview,
board of directors, corporate structure, milestones and achievements, and corporate governance
which allow the employees and customers to be more understanding about Pharmaniaga by
using one platform. In term of corporate governance, employees can also publish the messages
through their company’s whistleblowing channel which embedded in the web portal of

From the subsystems about ‘career’ in this web portal, the company had also provide a
subsystem that related about staffing which is recruitment. It shows the job opportunity on the
web portal for their future employees to be part of Pharmaniaga family.

The subsystems of this web portal which about ‘contact us’ is a platform for the
employees or customers to give their feedback about the company’s website, and report a
complaint and asking a question about the company operations and management. All of these
technology and systems are helping the company to improve their employee morale,
consistency, productivity and also compliance.

The human resources department of any company or organization is responsible for
recruiting and retaining employees, managing benefits and salary, training and compliance,
working to resolve issues between management and employees, and contributing to a
successful culture at work. Some companies have only 1 person managing all human resources
functions and others have an entire team. The human resource department has a direct impact
on the success of the company and its employees. Manage a human resources department by
assigning specific functions to the members of team and promoting a professional and
supportive environment.

Human Resources Technology has been used to manage the human resources
management. By describing the function of Human Management, there is so important to apply
the technology to managing the HR. Managing the human is not easy and need the big space
to keep all the data and information of employees, managers, investors, future employees,
customers and all every departments of the company. HRIS comes helping us to settle the
problem. Pharmaniaga is a well-known company which provides a lot of medicines, medical
equipment and so on. When we look up Pharmaniaga Berhad, how a huge company keep
contacting and how the manage their manpower and how HR department interacting and keep
track their business.

As we know, Electronic HR (e-HR) is a technology that enables HR professionals to

integrate HR strategies and processes in order to improve overall HR service and delivery.
Pharmaniaga applied the concept and the electronic system for managing their Human
Resources. Pharmaniaga has a platform called “e-office”.

E-office is a Pharmaniaga's e-office that enables us to be always connected from just

about anywhere in the world through the Internet. May it be checking emails or applying for
leave to go for a well holiday. All can get it done online. Under that e-office system there are
subsystems and applications such as webmail, e-Form, Intranet, eProcurement and OneHR.

Webmail allows the users to access their emails as long as they have access to an
Internet connection and a web browser. This also means that the user cannot read an old email
or draft a new email offline.

Webmail is a collaboration expert e-office helps organizations to work smarter and to

be more flexible by smoothing their operations and communication systems through digital
workspaces, consultancies and training. A focus on driving usage of Microsoft 365 with its
Premium Adoption approach enables e-office to help drive business forward with the best
Modern Workplace capabilities. They know that when it comes to meeting challenges across
verticals, one size really doesn’t fit all. That's why e-office has developed exclusive industry-
specific offerings for a variety of markets.

Furthermore, e-Form is stand for electronic form which is the computer version of a
paper form. It’s designed to eliminating the cost of printing, storing and distributing printing
form, and the waste of obsolete form, e-form can be filled out faster because the programming
associated with them can automatically format, calculate, look up and validate information for
the user.

Pharmaniaga also used the electronic system to keep connecting the user and with their
company. Webmail are web-based email accounts. These are usually free email accounts that
are operated from a website. Examples include Hotmail, G-Mail and Yahoo Mail.

E-Procurement also known as supplier exchange which is the business to business or
business to customer or business to government purchase and sale of supplies, work, and
services through the Internet as well as other information and networking system, such as
electronic data interchange and enterprise resource planning.

E-Tender is one of the subsystem provides by the company. E-Tendering refers

specifically to tendering that is based, at least in part, on the use of Internet technology. The
site is a complete internet based e-tendering solution. This means that no software resides on
either the procurer’s or the supplier’s own computers and that all exchanges of documentation
are done electronically on-line.

One HR is a platform for managing the work force within the company. At OneHR the
aim is in maximising the potential of their business and staff by providing independent,
pragmatic HR solutions and support.

Let we see how PharmaNiaga Berhad are managing their Human Resources Management
through electronic system or (e-HR). In fact, Pharmaniaga can improve their system.

3.1 Staffing
Sometimes, there is not enough for company to have their own website or portal to
manage their employees. So, Pharmaniaga Berhad might to improve the way their hiring the
future employee. Make the HR portal more interesting and informative for all the users. It may
suggest to have their own electronic recruiting.

 e-Recruiting :

The recruitment website should be interactive, aesthetically pleasing and user-friendly.

Individuals are used to highly sophisticated, socially oriented consumer websites and will
judges a potential employer’s website in light of these experiences.
The requirement website should allow applicants to customize how they view information.
Thus can lead to reductions in poor-fit applicants and improve the ability of applicants to assess
their fit with the organization.
The recruitment website should include a rich mix information about the company’s
culture, HR brand and work environment. Nevertheless, e-recruiting should not be a firm’s
only method of recruiting because this may lead to advise impact and a decline in diversity.

 e-Selection :

E-selection uses technology to help organization more efficiently manage the process of
identifying the best job candidates. Before implementing e-selection, ensure any performance
differences on the online test are not related to the delivery method or lack of comfort of
experience with technology, but are reflective of underlying knowledge, skills, abilities.
Link the data from selection to other function, such as the performance management
system, to better assess and improve your selection techniques.

3.2 Compensation
What Pharmaniaga can do for their company is integrated the e-compensation system
with their e-performance management system? Employees can gain a lot of benefits through
the e-Benefit. A benefit approach uses the web to communicate information on benefits to
employees and allow them to elect and manage their benefits online. Our suggestion on
Pharmaniaga Berhad, they can integrate the e-compensation system with your e-performance
system with your e-performance management system. Ensure the vendors provide accurate and
timely information to employees regarding benefits such as health care coverage and retirement
planning. They can organize the benefits portion of the website around key life events to
simplify employee navigation.
By using the e-benefit, they can reduce the costs for delivering benefits, improving
employee access to benefits information. Streaming benefits administration and empowering
employees to manage thru own benefits.

3.3 Training and development

Training is the one of crucial part to enhance the employee’s knowledge, skills and
abilities. Pharmaniaga Berhad emphasize on investing in the continuous learning and
development of employees. They also ensure talent pool is given exposure in local and
international seminars and conferences to keep abreast with the latest management and
investment best practices. Not just that, they provide and conduct Initiate Training Needs
Analysis to review and recommend training requirements for employees so that course
objectives are in line with organizational goals.
That was a great responsibility towards their employee development. To make it more
effective because Pharmaniaga can reduce training cost by implementing e-learning. For

example, IBM reported that it was able to save more than 4millions annually through e-
learning. Moreover, it can increasing employee flexibility and control over learning.

 E-learning

Pharmaniaga can design courses to promote contact and interaction with other employees.
This can promote the development of learning communities and knowledge network,
improving overall organizational learning.
Consider blended learning, blended learning can help employees overcome some inherent
feelings of isolation by bringing learners together for portions of learning. Course design and
sound learning principles should underlie the design of any online course. E-learning does not
mean simply putting existing materials online.
For example, streaming desktop learning is a very good applications for this company to
training their employees. It can used to facilitate the distance learning and training by
transferring information to employees in quickly, easily and even inexpensively. By using
stream desktop learning, the company can stream presentations, application tutorials and others
for employees’ training and learning become more effectively.

 E-Performance Management

Pharmaniaga Berhad can improve their HRIS by design the system so that data can be
captured and reviewed at multiple level of detail, and so that employees can see relationship
among measured behaviors, performance expectations and rewards. Work with employees to
determine the types of data the system will capture. Capture data that help them be more
effective in their jobs and update the data collected to support continued performance
The focus of a performance monitoring system should be on providing feedback to
employees to enhance performance, not simply gathering information on them. Pharmaniaga
has a feedback platform of their website. To whom had used the application on e-office they
freely can give their feedback. So here the focus of a performance monitoring system should
be on providing feedback to employees to enhance performance, not simply gathering
information on them.
In addition, this technology improving access to performance. With the availability of real-
time data, manager can provide more timely feedback and employees can see a closer link
between their behavior and their performance appraisals (PA). This electronic system also

linking performance information to other HR data such as individual development plans,
compensation and bonuses, job assignments, and training opportunities.

3.4 Safety and Health

As a big company like Pharmaniaga Berhad, OSHA is the vital element in managing human
resources. Pharmaniaga is a pharmaceutical company which ensure the security of personnel
and property within the office premise. They manage the parking arrangements and traffic flow
of vehicles in office compound. Furthermore, they reserve designated parking space to
expecting mothers and staff with health problems. They are concern about their employees.
But how about the workers safety at the workplace. We are sure that Pharmaniaga care about
this enough. To be easier for employees themselves to get the full information, Pharmaniaga
should have the OSHA's Safety and Health Topics pages provide regulatory and enforcement
information, hazard identification and controls as well as best practices and other resources to
assist employers, workers and safety and health professionals ensure safer workplaces. In other
words, e-safety is used to broadcast the information about company itself such as the rules of
laboratory, how to use the machine and how-to proper handling the equipment.

3.5 Employee and Labor Relations

We are suggesting that Pharmaniaga need to have e-consultancy which is provides the
best way to guide the employees thru their promotion, demotions, terminations, and
resignations. They could monitor of the rules and regulations.
As we know that employee and labor relation documented internal policies, standards
and procedures are in place to ensure compliance with internal controls and relevant laws and
regulations. Key policies and procedures, and advice and support provided include
performance management, annual performance review, disciplinary matters, recruitment and
selection, learning and development, leave and grievance matters.
With the new electronic system, Pharmaniaga can establish a harmonious working
environment for employees and prevent and resolve problems involving individuals which
arise out of or affect work situations. They periodically update staff on relevant sections of the
Employment Act, Industrial Act, Trade Union Act and our own Code of Conduct.

3.6 HR Dashboard
Lastly, Pharmaniaga should have their own HR dashboard. The Human Resource
dashboard and HR report are an important part of managing Human Resources. Both tools are
part of HR reporting and for the basics of informed decision making.
This is because it is hard to make informed decisions when HR business partners and
other stakeholders lack insight into their own organization. The dashboard can be created by
static or automated rather than manually. In case, a lot of organizations still work with ad-hoc
data reports. For example, when a manager or director wants to know something about the
organization’s workforce, they ask HR to send them a report. After this request, the HR data
department will work overtime to produce this report. This is an example of ineffective
reporting. Human Resources of Pharmaniaga Berhad reports should be deployed actively and
should, therefore, be automated. Those all things can make regular reporting enables HR to
keep a finger on the pulse of the organizations by tracking key workforce metrics. Therefore,
An HR report can inform managers about relevant developments in their teams and department.
The electronic system is integrating the people within the organization and make it more
efficiently access. The employees facilitate employee self-service (ESS) which the basic
transactional HR activities shifted to employees. Equally beneficial to manager which can
directly access to information on employees who report to them and manager can create reports
without having to rely on HR. The system called manager self-service (MSS).

In conclusion, it can be seen that Pharmaniaga have an integrated and efficiency
technology and electronic system for both manufacturing sites and managing of human
resources. The enterprise-wide system for all local manufacturing sites in Pharmaniaga which
is SAP S/4 HANA as a real-time enterprise resource management suite for digital business that
built on SAP’s advanced in-memory platform.
In addition, the company found that they need to embrace Industry 4.0, so they are
exploring Robotics Process Automation (RPA) to improve the ordering and delivering process
which can reduce the cost and also saving the time. Warehouse footprint, Artificial
Intelligence-driven solutions, mobile sales systems, and e-Human Resource and e-commerce
platforms had also explored by the company to streamline all the manufacturing processes and
human resource managing processes which can boost their competitive advantage in global.
Furthermore, web portal that created by Pharmaniaga is also one of the successful and
effective technological application for this company. It is because the information from web
portal consists of the fully process of the company in manufacturing and human resource
managing. Therefore, employees, employers, investors, and also customers can go through this
only platform to sufficiently well to know how Pharmaniaga manage their business in different
Nevertheless, Pharmaniaga still need to improve and enhance their technology or
information system that used in human resource management to facilitate the quality and
efficiency in the process of staffing, acquiring, training, appraising and compensating
employees, attending to their labor relations, health and safety and also fairness concerns. From
the human resource information system (HRIS), Pharmaniaga can use this integrated HR
systems to automate and simplify all the tasks, reduce administration cost and provide various
levels of management with HR-related information without any redundancy data.
To conclude, Pharmaniaga is always aware on the importance and needs of digital
technology in their business operation and organization management to enhance the works
productivity and efficiency. They had also trying to develop and acquire more technology and
systems that can used to support and manage the business in this few years. Therefore,
Pharmaniaga is constantly evolving, advance and steadily growing their global presence
through their expansion initiatives with the improvement of digital technology.


1. Internet Resources

a. Pharmaniaga. 2016. Business Overview. Retrived from :

b. SAP News. November 8, 2017. Pharmaniaga Sets Foundation for Future

Growth by Implementing SAP S/4HANA for its Manufacturing Plants. Retrieved from :

c. The Official Board. April 17, 2019. Pharmaniaga. Retrieved from :

d. Shaheera Aznam Shah. August 6, 2018. Health Ministry maintains

Pharmaniaga’s supply contract. Retrieved from :

e. New Straits Times. November 20, 2017. Pharmaniaga Adopts SAP HANA.
Retrieved from :