VICTORIA INTERNATIONAL COLLEGE

INDIVIDUAL ASSIGNMENT

Prepared by : Gayathri a/p Vijaya

Kumar
Id No : 3008171304
Ic No : 940222-14-5206
Program : Diploma in Business
Administration
Subject : Human Resource
Management
Tittle : Proton Holdings Berhad
Lecturer : Mr Najmi
 Introduction of company

Proton Holdings Berhad, commonly known as Proton and stylised PROTON is a Malaysia-
based corporation active in automobile design, manufacturing, distribution and sales. Proton
was established in 1983 as the sole national badged car company until the advent of Perodua
in 1993. The company is headquartered in Shah Alam, Selangor, and operates additional
facilities at Proton City, Perak. Proton is a Malay acronym for Perusahaan Otomobil Nasional
(National Automobile Company).
Proton was originally a manufacturer of rebadged Mitsubishi Motors (MMC) products in the
1980s and 1990s. Since the 2000s, Proton has produced several locally engineered models,
and the company is presently Southeast Asia's sole automobile company with full R&D
capabilities. Proton cars are currently sold in at least 10 countries, the majority of which are
in Asia.
Proton was originally owned in majority by HICOM, with minority stakes being held by
Mitsubishi Group members. By 2005, Mitsubishi had divested their stake in Proton to
Khazanah Nasional, and in 2012, Proton was fully acquired by DRB-HICOM. Proton has
been the owner of Lotus Cars since 1996.
Proton, predominantly reliant on its domestic market, is presently undergoing a
transformation process as part of a long-term turnaround plan, with hopes of returning to
profitability and regaining an international presence.

Organization background
 Proton is the Malaysian national manufacturer and it was Malaysias only carmaker

until the establishment of its competitor. Its name is a Malay acronym for Perusahaan

Otomobil National (PROTON) also known as National Automobile Enterprise. This

automobile enterprise was incorporated in May 7, 1983 under the direction of Malaysias

Prime Minister, Dato Seri Mahathir Mohamed is the admirable hero who had originally

conceived the idea of Malaysia car. Proton functions mainly to manufacturer, assemble and

sell motor vehicles and related products including accessories, spare parts and other

components. It is a core member of Proton Holdings Berhad, the holding company which is

listed on Bursa Malaysia.

One of the main objectives for the creation of Proton was to propel Malaysia into the

21st century as an industrialized nation, where the acquisition of technological knowledge,

know-how and expertise, would help the country achieve both short-term and long-term

goals. Objective that includes the development of indigenous research and development

capabilities, world class manufacturing and production standards, design capabilities as well

as a presence in the global market. Their vision is to become a successful Malaysian

Automotive Manufacturer globally by being customer oriented and producing competitively

priced and innovative quality products. In Proton early inception back in 1983, the Proton

identity was created to symbolize strength and Malaysian heritage. As time changes, the new
proton identity have been their mark of pride, which embodies the positives qualities that

have come to be associated with Proton over the years. The diamond shape, derived from

their very first top mark, and the colour scheme are a symbol of continuity with our past

success.

The tiger head conveys clearly the Malaysian heritage being associated to the two tigers

displayed on national coat of arms. The tiger is thus a symbolic representation of their

origins and stands for the value Proton represent as a national project.

Proton produced Malaysians first car, the Proton Saga, commercially launched on

July 9, 1985. Its model line-up includes Proton Iswara (1992), Wira (1993), Staria GTi

(1994), Putra (1995), Tiara (1996), Perdana V6 (1998), Juara (2001), Waja ( 2001), Arena

(2002), Gen 2 (2004), Savvy (2005) and Person (2007). The range of 1.3, 1.5, 1.6, 1.8 and 2.0

litre engines satisfies a wide spectrum of customer both locally and abroad. Protons main

plant in Shah Alam, with an area of 923 900 sq metres was or originally designed for a

capacity of 80 000 units per year. In 1997, capacity increased to 230 000 units per year and

today the Shah Alam factory is capable of producing 240 000 vehicles per year. Besides being

shareholders, Mitsubishi Corporation and Mitsubishi Motors Corporation are also Potons

technical assistance parter and component supplier. Proton has a total of 11 subsidiaries and

11 associate companies, which involved in manufacturing, research and development, sales

and service activities.In 1993, a model called Proton Wira was introduced based on the

Mitsubishi Lancer/Colt. More than 220,000 units were sold between 1996 and 1998. Proton

Perdana based on the Mitsubishi Galant/ Eterna, was first produced in 1995, intender for

higher end market. The Proton Waja which launced early 2001, is the first car model designed

internally by Proton.
 Proton made a major steps in upgrading its engineering capabilities with the

acquisition of Lotus Group International Limited, a British automotive engineering company

and manufacturer of luxury sports car in October 1996. Together, Proton and Lotus offer

large scale manufacturing capabilities with world-class engineering expertise.This led to the

production of Proton Gen-2, which was code name Wira Replacement Modul (WRM) before

the launch.The Gen-2 is the first of cars to be manufactured and assembled at the new

manufacturing plant in Tanjung Malim, Perak which is part of Proton City development

project. The plant was opened in 2004. On June 2005, proton introduced at the second model

to be manufacturer in Tanjung Malim, the 1,200cc 5-door supermini, the Proton Savvy. Both

The Gen-2 and Savvy, were the model that MG Rover was looking to rebadged when then the

British firm entered into collaboration talks with Proton. However, these joint-venture talks

werw unsuccessful and MG Rover subsequently collapsed.

In 2007, Proton launced its new sedan as replacement version for Wira Sedan but with

new name, Persona. It was announced On August, 2008 that Proton is developing a new, fuel-

efficient hyrid car to beat rising cost and address environmental concern. As on 3 August

2008, Proton produced 3 million car since 1985, where the 3 millionth cars is a second

generation saga.

Proton cars are making their mark internationally as competitive and innovative

automobiles. They are now being exported to 50 counteries including the highly competitive

United Kingdom and continental Europeans markets. Proton began its exports from Malaysia

to other right hand drive markets like New Zealand in the late 1980s. Proton also produces

model in left-hand drive, for export to continental Europe.

As a malaysias leading aotumotive manufacturer with 25 years in the automotive

sector, Proton has produced over a dozen car models to date that have sold more than 3
million units and has exported to several countries. The continuos process of improvement

and global competitiveness has produced one of the largest pools of trained and talented

engineers in malaysia, many of whom are specialised in diverseand highly-specialised areas

including automotive, material and design engineering. Using the resources, technology,

innovations, manpower and design capabilities either made available to or nurtured by

Proton. The national car project has made a significant impact in the automotive industry.
Organizational chart
Products
1980s

The original Proton Saga. More than 1.2 million units were sold between 1985 and 2008.

1990s

Proton Wira saloon. Over 952,216 units were sold in around 65 countries worldwide.
On 15 August 1992, the Proton Saga Iswara was launched. It shares the older Mitsubishi
platform used in the original Proton Saga, but its exterior and interior styling are unique to
Proton. The Saga Iswara was widely used as taxicabs in Malaysia during the 1990s and
2000s, and many continue in service. On 21 May 1993 the Proton Wira was introduced, a car
which was better equipped and larger than the Saga and Saga Iswara. The Wira is based on
the fourth-generation 1991 Mitsubishi Lancer and was sold in a four-door saloon guise at
launch. The Proton Wira Aeroback, a five-door hatchback variant featuring a Proton-designed
rear-end joined the range in 1994. The Wira saloon and hatchback shared six different
engines by 1996, all of which were sourced from Mitsubishi Motors.

Proton Saga Iswara saloon, widely used as Malaysian taxis in the 1990s and early 2000s.
Proton Perdana, the largest and most luxurious Proton saloon car.
In 1995, Proton launched the three-door Proton Satria hatchback and the two-door Proton
Putra coup, both of which are based on the Wira platform and powered by the same range of
Mitsubishi engines offered in the Wira, with the exception of the 2.0L diesel. The Proton
Wira saloon and hatchback, and the Proton Satria and Putra were aggressively exported and
marketed across the European Union and Middle East during the 1990s. The Proton Perdana,
a premium D-segment saloon, was launched in 1995. It is based on the seventh generation
1992 Mitsubishi Eterna and was fitted with Mitsubishi's 4G63 2.0-litre l4 engine. It was
offered with the superior 177bhp 6A12 DOHC 2.0L V6 engine after 1999. The Perdana
remains the only D-segment, V6-powered car to be commercially produced by Proton. A
Citron AX-based 1.1-litre five-door supermini called the Proton Tiara debuted in 1996. It
was the result of a joint venture between Proton and PSA Peugeot Citron, a collaboration
which was later abandoned after the death of Proton's then CEO, Tan Yahaya Ahmad in 1997.

2000s

Proton Waja, the first indigenously designed Proton car.

The Proton Waja, the company's first indigenously designed model, was launched in August
2000.It has the Mitsubishi 4G18 engine/Campro 1.6/Campro CPS 1.6 engines It set in stone
Proton's new direction in business and marked the end of Proton's extensive reliance on other
car manufacturers for vehicle platforms and parts. However, the Waja lagged behind its main
competitors and failed to gain the support of customers in the domestic market. The Waja also
marked the downfall of the Proton marque, and inadvertently lead to the rise of Perodua, the
second Malaysian vehicle manufacturer. In 2002, Proton introduced the Jumbuck, a ute based
on the Proton Wira platform and thus far the only Proton model to enjoy significantly more
popularity in its export markets (specifically Australia) than domestically. The Proton Gen-2
was launched in late 2004.

Proton Satria Neo, the company's sportiest offering.

Proton Persona, the successor to the Proton Wira saloon.

2010s

Proton Exora, Malaysia's first 7-seat MPV.

In December 2008, Proton resumed product collaboration with Mitsubishi Motors.[28] Under
the agreement, Proton gained the rights to rebadge the 2007 Mitsubishi Lancer to be sold
exclusively in the Malaysian market. The result of the collaboration was the Proton Inspira,
which launched on 10 November 2010. It also marked a return to closer ties between Proton
and Mitsubishi, the Japanese company which was instrumental in Proton's foundation in the
1980s.[29] Proton showcased the EMAS concept hybrid city cars at the 2010 Geneva Motor
Show.[30] They were designed by Italdesign Giugiaro and related to the Lotus Ethos, a
similar concept car from Proton's British subsidiary.

Proton Prev, Malaysia's first 5-Star ANCAP safety rated car.

On 17 August 2013, Proton launched the Suprima S, the hatchback complement to the Prev
saloon.[38] It became the second 5-star ANCAP rated Proton and the first to offer extensive
standard safety features in its domestic market. On 11 December 2013, the second generation
Proton Perdana was finally unveiled after a three-year gap in the nameplate's production.[39]
The new Perdana is a badge engineered eighth generation Honda Accord and is for exclusive
sale to Malaysian civil servants and government officials.[39]
The Proton Iriz was unveiled on 25 September 2014 as the company's first B-segment 5-door
hatchback.[40] The Iriz will compete with the Perodua Myvi in its domestic market, and not
with the similar but smaller A-segment Perodua Axia, which was launched 10 days prior to
the Iriz.

Proton Iriz

Proton Suprima s

Human Resource Management Practices

Having a life formed through partnership with a Japanese automaker, Proton's human
resource management has been influenced in many ways by the Japanese human resource
management style and this will be further discussed below.
Job classification

At Proton, there are two types of workers: non-executive and executives. Foremen in the
production line, executive officers from production and non-production line are classified as
executives, while other personnel below this category are classified as non-executives. This is
a minimum job classification many big Japanese companies (Milkman 1991; Abo, 1992),
including auto makers such as Nissan Motor Manufacturing where all manual tasks are done
by only two titles, manufacturing staff and technician.

This form of job classification is applied in Proton (Bratton, 1992). By classifying job
positions into just two categories, it ensure easier recruitment of staffs, proper and effective
training programs are employees are either in the production and manufacturing unit or in the
technical department which requires different skills for different department but similar
amongst the undertakings of each departments.

Job entries and recruitment process

They are two points of entry in Proton, one for operatives and another one for executives.
Both positions target new school or college level graduates. This is an imitation of Japanese
automotive manufacturing companies, which specifically recruit young workforces, fresh
school graduates who are ready to be uncalculated in the company's strong work ethic that
stresses dedicated performance of tasks, discipline, productivity and total commitment to
quality of product features (Dore and Sako, 1989).

By recruiting young and enthusiastic staffs, Proton is able to reduce the huge salary
associated with the more experienced personnel, while also increase their productivity level
through an integrated workforce system that promotes dedicated and selfless services towards
maintaining quality and standards of their brand.

Human resource education and training

Training and development is considered as a prime responsibility by Japanese companies

(Inohara, 1990). The training is a face-to-face interpersonal training acquire through a hands-
on-desk approach. The development process for Proton's staffs are not only initiated in the
human resource department but also in other departments of concern such as unions, club, the
welfare committee, the prayer room committee, and housing apartments association. This is
because working is also considered as part of someone's religion within the Malaysian
society.

Through the third human resource approach, Proton is able to induct a spirit of dedication in
their workforce, as the mostly religious Malaysian see the act of working for them as being of
a spiritual commitment to their religion. Thus, this in return ensured continued productivity
and low employment turnover with most employees willing to work for the company for the
rest of their lives.
 Conclusion

Proton as the first Malaysian car manufacturer has established a very strong identification
in the Malaysia automotive market. However, the consumers perceived that it has not
delivered what is promised and expected. As a result, Proton is unable to create positive
response in the head and heart of its consumers. Proton still has tremendous potential and
capacity to perform better in offering its customers products and services of premier quality.
Based on its recent performance, Proton has indeed working very hard to live up its working
philosophy of producing the right car at the right time, for the right market, at the right price.

As a conclusion, we learn how hard is it when to open an organization or company. We

also learn on how to manage the company and the subordinates. In addition, we know the
functions of a manager and how to be a good manager. In the discussion group, we have
learned about the basic of management that is planning, organizing, leading and controlling.
We also study about motivation. In planning we learn on how to create a goals when opening
an organization or company, how to setting goals and ways to achieve those goals. In
organizing, we learn about how to make and organizational structure. In leading, we learn
about how to make employees feel enjoy to work in our company and how to a good and
responsible leader. We also learn about how to make a manage the quality product.