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3 Human Capital Development

Human capital management is a process of directing, investing in, and developing an

organization's workforce. An organization must take the time to manage human capital so
that it aligns with their goals. It is also an approach to employee staffing that perceives people
as assets whose current value can be measured and whose future value can be enhanced
through investment. Although the conceptual definition of human capital is clear, its
measurement is difficult because it is practically impossible to observe individual skill, and
even harder to design a metric that is comparable across individuals.

For Jabatan Kesihatan Negeri Johor is now invest in their human capital and work on
strategies to reinforce this asset. In Jabatan Kesihatan Negeri Johor, there is a meeting by
Human Resource Development Panel about Annual salary movements, salary shift, training,
health and exercise programs and also family support through healthcare and counseling
services. Many also allow mobile access to HR data and applications, especially the self-
service features. For JKNJ, they use e-profile system and need human capital to access and
always update about the information of the civil servant.

Besides, analytics is usually the critical element in strategic human capital

management, which seeks to more closely align Human Capital Management with the
financial success of the company. Human Resources Unit aimed at investigating the
efficiency of Human Capital and its impact on the financial performance of Jabatan
Kesihatan Negeri Johor. Using data from Jabatan Kesihatan Negeri Johor since 2003 which
is JKNJ Management Division was restructured in line with the wishes of the Ministry of
Health to strengthen the administration of all State Health Health Departments that the
monetary value created by their employees was measured. The initial findings revealed that
there is positive relationship between Human Capital Efficiency and corporate performance
measures including profitability and productivity.

To explore the factors that affect the efficiency of human capital, Madam NurHidayah
approached both high performance and low performance of JKNJ. The result of the
qualitative research showed that several policies are applied by high performance including
effective recruitment policy, organizing training programs by training unit, developing key
performance indicators and performance based reward system. The mentioned policies are
believed to be the main causes of higher human capital efficiency and consequently better
financial performance in JKNJ.

In summary, human capital, as the name suggests represents the productive capacity
of the people and it is important for the JKNJ. A direct relationship with the financial
performance of the JKNJ, particularly the company within the case, exists. Employees and
their knowledge are the key ingredient for the company's development and subsequent
financial performance.
3.5 Occupational Health and Safety

Nowadays, health and safety is a major function of any organized human resources
department. Health and Safety Programmes are concerned with protecting employees and
other people affected by what the organization produces and does. Occupational Health
Programmes deals with the prevention of illhealth arising from working conditions. They
consist of two elements, occupational medicine which is a specialized branch of preventive
medicine concerned with diagnosis and prevention of health hazards at work and dealing with
any ill health or stress that has occurred in spite of the preventive actions.

Successful occupational health and safety practice requires the collaboration and
participation of both employers and workers in health and safety programmes, and involves
the consideration of issues relating to occupational medicine, industrial hygiene, education,
psychology and so on. Work plays a central role in people's lives, since most workers spend
from sunrise until sunset in a day in the workplace, whether it is in an office or factory.
Therefore, work environments should be safe and healthy.

For permanent civil servants, they have several advantages that enable them to get
medical benefits including family members as well. The medical benefits that can get at
government hospitals by showing or giving the number of civil servants’s identification cards
so eligible for comprehensive medical treatment without payment.

Next, in JKNJ, there is a Employees And Environmental Health Unit (Upk) which is
to promote and maintain the physical, mental and social health of workers to be always at
optimum level. For Occupational Health and Environment (KPAS) is a unit that regulates and
coordinates all activities involving occupational health among JKNJ staff members and
environmental health in the neighborhood of Johor residents. This unit is divided into two
parts namely the Occupational Health Program and the Environmental Health Program.
Futhermore, Unique Disease Unit (Ncd) was created to promote and maintain the physical,
mental and social health of workers to be always at optimum level. There are some NCD
activities throughout 2012 such as POA NCD 2012, implementation of NCDP 1 Project in
the entire area of Johor, The implementation of the NCDP 1 project in government
departments of Johor (WISMA) and Fitness exercise among health personnel Johor State
Health Department. That is so good for workers that have heart disease, musculoskeletal
disorders such as permanent back injuries or muscle disorders and reproductive problems.
Besides, unit Psychology & Counseling can help the workers that have stress-related
disorders. The counselor uses complex communication skills to assist clients in understand or
know them, understand their current situation and see possible future situations. They also
offered including self counseling, family counseling, marriage counseling, career counseling,
retirement counseling, leadership counseling, traumatic counseling and counseling

In summary, in order to develop a successful health and safety programme, it is

essential that there be strong management commitment and strong worker participation in the
effort to create and maintain a safe and healthy workplace. It is also important for employees
to take serious in training that have been taught. The JKNK organizational health
performance is what an enterprise delivers to stake holders in financial and operational terms.
It is evaluated through such measures as net operating profit, return on capital employed, total
returns to shareholders, net operating costs, and stock returns. After all, for health and safety
doesn’t need to use a lot of money as well as it doesn’t affect financial performance of JKNJ.
JKNJ more to puts a high priority on the health and safety of employees is likely to have
healthy workforce with a much better job performance record.

Son, H. H. (october 2010). Human Capital Development. ADB Economics Working

Paper Series, 1-36. Retrieved from

Etheridge, A. B., & Bassett, W. (1999). Introduction to occupational health and

safety. Clays Handbook of Environmental Health. doi:10.4324/9780203016312.ch24