CHAPTER 5

Lecture by:

Miss Farhana binti Yaakub

5.1 Concept of public personnel administration
5.2 The significance of public personnel
administration
5.3 The purposes of public personnel administration
5.4 Public personnel agencies
5.4.1 Public Service Commission (PSC)
5.4.2 Public Service Department (PSD)
5.5 Public personnel processes
5.6 Budgeting in Public Administration
5.7 Aims and purposes of budgeting
5.8 Budgeting processes
5.9 Conclusion
After attended this lecture student should be able to:-
1. Define the concept of Public Personnel
Administration and Budgeting.
2. Explain the purposes of public personnel
administration.
3. Explain the public personnel agencies.
4. Explain the public personnel processes
5. Identify the aim and purposes of budgeting
6. Explain the budgeting processes in Malaysia
 INTRODUCTION OF
PUBLIC ADMINISTRATION
• The human aspect • The acts (art and The process of
of the organization. science) of planning, utilizing the people
• The most valuable organizing, directing aspect of an
asset of the and controlling. organization to assist
company. • The management and the organization to
utilization of people, achieve the goals.
machines, systems
and technologies to
achieve certain
objectives.

PERSONNEL
PERSONNEL ADMINISTRATION
ADMINISTRATION

4
 CONCEPT OF PERSONNEL ADMINISTRATION
Practices and policies needed to carry out people or personnel aspects of
the management job.

enhance the Within Malaysian

contribution of Public Service
the employees to context, it is
administered by
create effective
Public Service
organization. management of Department (PSD).
organization's
resources which is
the people /
employees.
 THE SIGNIFICANCE OF PUBLIC
PERSONNEL ADMINISTRATION
To ensure proper planning
of personnel or human To attract potential candidates
resource requirement and 1 2 to work in the organization.
affairs of the organization.

To control personnel
To conduct all personnel
performance and
aspects e.g. staff induction,
training and development
3 4 recommending personnel
policies.

To encourage personnel’s To retain performing

performance and
productivity.
5 6 employees in the
organization.

To ensure fair reward, benefit,

welfare system and career
development to improve
employees’ motivation.
To deal with personnel
7 8 issues e.g. health and
safety, grievances,
disciplinary etc.;
 THE PURPOSES OF PUBLIC
PERSONNEL ADMINISTRATION

• To ensure public • To ensure • To improve the • To maintain healthy • To achieve

organization has employees are productive working culture. harmonious
enough and treated well contribution of the relationship
competence staff according to the public servants. • This can be done between the
to perform the HRM principles. through the employees and
tasks of a • This can be done integration and employers by
particular • This can be done through policy maintenance of the integrating the
organization. through effective formulation, personnel and their personal goals of
disciplinary planning, policy inter-relationships the employees with
• This can be done measures, curbing implementation, in an organization organizational
through proper nepotism and social change and for the purpose of goals
planning, favoritism, modernization, contributing toward
recruitment, monetary and administrative the
placement, and non-monetary reforms and public accomplishment of
training. incentives & relations in an that organization’s
retirement organization. major goals and
benefits, handle the objectives.
nature of
personnel
relationships, &
well as assisting
top management in
negotiating with
labor unions.
 PUBLIC PERSONNEL AGENCIES
5.4.1 Public Service Commission
(PSC)
• Public Services Commission of Malaysia (PSC) was founded on
the 31st of August 1957 which happens to be the same day as the historic
Independence Day of Malay Peninsular during the reign of the British, the
administration of the Federated Malay States was handled by the British.

• The declaration of Independence on the 31st of August 1957 itself has initiated a
new supreme and independent order and leadership in the Federation of Malay
Peninsular.

• Officially, the Public Services Commission was formed according to Article

144(1) of the Federal Constitution that stated:

"Subject to the provisions of any existing law and to the provisions of this
Constitution, it shall be the duty of a Commission to which this Part applies to
appoint, confirm, emplace on the permanent or pensionable establishment,
promote, transfer and exercise disciplinary control over members of the
service to which its jurisdiction extends."
 ROLES PUBLIC SERVICE COMMISSION (PSC)

Appointment 1
• The Commission manages the appointment of personnel in the Public
Service on permanent, temporary, contractual, temporary transfer and loan
status.
• It also has the authority to terminate the services of personnel in the Public
Service according to the appointment’s directive.
• In addition, the Commission has empowered Ministries and Federal
Departments as well as relevant State’s Administrative Government for
posts in the Support Group (Group C and D JKK).
2 Confirmation of Service
• The Commission has the authority to confirm personnel in the Public Service of
their services, to extend trial period, to return a personnel to an original post or
to terminate the services due to failure at being confirmed of their services.
• It has empowered the Ministries and Federal Departments as well as relevant
State’s Administrative Government to confirm the services for posts in the
Support Group (Group C and D JKK).
 ROLES PUBLIC SERVICE COMMISSION (PSC)

Conferment into Pension 3

• The Commission manages the conferment into pension status of personnel
in the Public Service who are confirmed in service and has served in
services deemed pension status for not less than 3 years. This does not
relate to the Support Group (Group D JKK).

4 Transfer of Service
• The Commission has the authority to transfer permanent personnel in Public
Service from one scheme of service to another scheme, and from one service
to another scheme of service of equal grade.
• It also has the authority to transfer permanent officers appointed on temporary
transfer or loan.
 ROLES PUBLIC SERVICE COMMISSION (PSC)

Promotion 5
• The Commission functions as a Board of Promotion for promotion to posts
for members from the Public Service Boards of Promotion as well as
promotion to a higher grade under the Integrated Service Scheme.
• Additionally, it also functions as a Board of Appeal for the Public Service
Promotion as provided under the relevant Orders of the Public Service’s
Board of Promotion.

6 Disciplinary Control
• The Commission is a relevant Disciplinary Authority for disciplinary actions with
the purpose of dismissal or demotion of officers in the Highest Management
Group and the Professional Management Group.
• It also acts as the Public Service Disciplinary Board of Appeal as provided by
the relevant Orders of the Public Service Disciplinary Board.
5.4.2 Public Service Department (PSD)
• The PSD was during its early days,
placed under the State Treasury.
• However, in 1954 with the increase in its job scope and
responsibilities, a new agency was formed. It was known as the
Federal Employment Office. However after the independence of
Malaya, it was placed under the Prime Minister’s Department.
• It was not until the 1970s that the PSD was given more power,
authority, trust and responsibility, as a government body, to
formulate public policy, with regard to public servants, scheme
of grades, positions, - to conducting interviews, selection,
recruitment, training, promotion, and even dismissal of public
servants and staff.
• The PSD has eight divisions where all eight are deemed
necessary and important for the smooth running, careful
division labor, and ensuring optimal efficiency and effective
operation of the department.
OBJECTIVES OF PUBLIC SERVICE DEPARTMENT (PSD)
To provide prospect public
positions in the civil services, to
successful candidates, together
with the State Treasury,
To store and update
employment records of public
servants or Human Resource
Information System.
To provide training opportunity
and assistances
(e.g. scholarships and grants)
to public servants with the
cooperation of INTAN
To formulate and implement
policies with regard to the
appointment of public servants,
01 promotion, and
disciplinary action.
02 To formulate and provide
remuneration scheme,
allowances, and
03 pension, for public
servants at all levels.
04
To settle public servants’
disputes and grievances (with
05 regard to their salary,
allowances, pensions
and anomaly).
06
 PROCESSES OF PUBLIC PERSONNEL

PERSONNEL
RETIREMENT 06
01 PLANNING
& JOB ANALYSIS
CAREER
DEVELOPMENT & 05 PUBLIC

PROMOTION
PERSONNEL
02 RECRUITMENT

TRAINING & 04 03
DEVELOPMENT SELECTION
 01 PERSONNEL PLANNING & JOB
ANALYSIS
PERSONNEL PLANNING
Identifying personnel (human resource) requirements to ensure that
the required number of employees with the required skills are
available when needed.
A process of systematically reviewing human resource requirements to
ensure that the required number of employees with the required skills are
available when needed. (MONDY & NOE)
A process of assessing the organization’s human resource needs in the light
of organizational goals and making plans to ensure that a competent, stable
work force is employed. (FRENCH)

JOB ANALYSIS
A procedure of determining the duties of the positions (job
description) and the characteristics of people (human specifications)
should be hired for them.
 Personnel Planning Process

Identify Human
Resource Needs /
Requirement
(HR Demand Forecast)
Monitor Results or Identify Human
Effectiveness of 01 Resource Needs /
Strategies / Requirements (HR
Programs 06 02 Supply Analysis)

PERSONNEL
PLANNING
05 PROCESS
Implement 03 Compare Demand
with Supply
Solution Program 04 (Evaluate Gap : Surplus or
/ Strategies Shortage)

Draw Solutions /
Strategies
(Ensure Demand = Supply)
 02 RECRUITMENT
• Attracting individuals on a timely basis, in sufficient
numbers, with appropriate qualifications, and encouraging
them to apply for jobs with an organization.
• It is important to identify the right methods and sources of
the candidates.

SELECTION
03 • The process of choosing from a group of applicants the
individual with relevant qualifications (knowledge, skills and
abilities) and best suited for a particular position.
• Selection procedures need to be conducted, relevant to the
positions.
Criteria of Suitable Candidates

Qualification Age Skill / Dexterity

Working
Capability Attitude
Experience

Roles of PSC in the Recruitment & Selection of Public Personnel

• The Public Service Commission, an independent body, is responsible for
recruitment of personnel in the Civil Service. Under Article 144(1) of the Federal
Constitution.
• The main functions of the Commission are to appoint, confirm, emplace on the
permanent or pensionable establishment, promote transfer and exercise
disciplinary action over members of the service or services to which its
jurisdiction extends.
• Candidates can apply job for public agencies through Public Service Commission
website: www.spa.gov.my or through newspapers advertisement made.
 04 TRAINING & DEVELOPMENT

Objective of Training & Development

1. Produce skillful workers.
2. Prepare for change.
3. Motivation.

Roles of INTAN in Training & Development of Public

Personnel
• The National Institute of Public Administration (INTAN) was established as the
training arm of the Public Service Department to provide training for the
public service.
• INTAN's training programmes emphasized the demands of planning and
implementing successful development programmes, training of
administrators and staff as agents of change, financial and economic
management skills, computer literacy as well as public policy and
international relations.
 Types of Training

A PRE ENTRY
TRAINING
• Is given to staff before they
enter public sector service
• Knowledge gain from school,
college, university
• Exist in form of specialized
courses: education at
vocational school,
polytechnique, agricultural
institute or courses like
mechanical engineering, public
administration, accounting,
secretary.
B ORIENTATION
TRAINING
• Introduce the staff with the
basic concept of their work,
new working environment,
organization and
organization`s mission.
• They will be explained on
the practices in work, rules,
facilities and organization
policies: so work can be
smoothly done.
C IN SERVICE
TRAINING
• Staff will be asked to
perform their duty as
soon as they report to the
department.
• The task considered as
in-service training as the
staff may not have any
experience in the similar
area of work before.

D POST ENTRY
TRAINING E PRE RETIREMENT
TRAINING
• Given after the staff after they • Given to the staff who are going to
have started their duty in
organization. retire with the necessary skills
• Objective: increase the based on their interests so that
performance of work as well as to they can have the second career
prepare the staff for promotion. or new activities upon retirement.
• Refresher courses will be
conducted from time to time
• Government give support:
scholarship, study leave and
recognition.
05 CAREER DEVELOPMENT & PROMOTION

Objectives of Promotion & Career Development

1. To reward performing employees.
2. To retain good employees.

Criteria of Promotion & Career Development

1. Merit.
2. Seniority.

06 RETIREMENT
Objectives of Retirement
1. Create vacancy.
2. Opportunity for colleagues.
3. Approved procedures.
 BUDGETING IN PUBLIC
ADMINISTRATION
“A government budget is an annual financial
statement showing item wise estimates of expected
revenue and anticipated expenditure during a fiscal
year.”
Forecast by a government of its expenditures and
revenues for a specific period of time.
In national finance, the period covered by a budget is
usually a year, known as a financial or fiscal year,
which may or may not correspond with the calendar
year.
The word budget is derived from the Old French
bougette (“little bag”).
 Process of Financial Administration
• To determine the financial plan of achieving the strategic goals and objectives.
• To describe in detail the program, activities and resources that are needed to
achieve these goals, as well as the timeframes involved

1 PLANNING
An assessment on To show the intended
the achievement of revenues and
an expenditures of the
organization/agency 5 REVIEWING government so that
in terms of the the financial
financial resources can be
performance that
has been achieved
2 BUDGETING appropriately
allocated to various
throughout the year. agencies.
4 AUDITING
3 ACCOUNTING
An independent assessment of the Art of recording, classifying, and
fairness by which a company's financial summarizing in a significant manner and
statements are presented by its in terms of money, transactions and
management. events which are, in part at least, of
financial character, and interpreting the
results thereof
 AIMS & PURPOSES OF BUDGETING

To ensure the proper revenue and

FINANCIAL ADMINISTRATION

OF FINANCIAL BUDGET
SPECIFIC ROLES / FUNCTIONS
GENERAL PURPOSES OF

expenses are carried out correctly Policy statement.

To ensure the purchasing/ Financial planning.

procurement is done appropriately,
correctly and legally Management method.
To ensure the government has
enough money for financing the Controlling and reporting.
program and activities and to
achieve the state’s desired goal. Performance measurement.

To ensure the public fund is Government transaction statement.

managed in a proper manner by
following the law, rules and
procedures; Component to revenue estimation.

To avoid any misused of the fund and

achieve efficiency in spending the
public money.
 BUDGETING PROCESSES

Performed in the Reflecting on

executive branch by BUDGET the past, set BUDGET Final BUDGET
the finance director, CALL goals for the CALL approval by EXECUTION
clerk's office, budget future and the
director, manager, reconcile the legislative
or a team. difference. body.

Issued to Can include

outline the Amending the
departments, budget as the
presentation sections, the
REVENUE form, BUDGET fiscal year
REVENUE executive, and progresses.
ESTIMATION recommend HEARINGS the public to ADOPTION
certain goals. discuss
changes in the
budget.
 PARLIAMENT SEPT - DEC
EXPENDITURE BUDGET Parliament Debates

FORMULATION PROCESS & Aprrove New Year

Budget
(BUDGET MANAGEMENT DIVISION)

MAY AUG END

JAN MAC APR SEPT
JULY SEPT DEC
FEDERAL TREASURY

Received
Budget
submission & Budget documentted
BRO makes
hearing and sbmitted
individuals
to parliament
study

Approval of
new year Minister of
Call circular
Prelimenary estimates by finance issue
for yearly
hearing the ministry of warants for
estimates
finance & expenditure
cabinet
AGENCIES

Agencies Prepare &

Budget Execution
Submit New Year
by Agencies
Estimates
 CONCLUSION
Public Personnel Administration or Human Resource
Management for government deals with issues related to
compensation, performance management, organizational
development, safety, wellness, benefits, employee
motivation, training and others. It plays a strategic role
in managing the human resources and the workplace
culture and environment.
Budgeting allows the organization to create a spending plan
for money usage. It ensures that the government will
always have enough money to cater the nation’s needs & to
ensure state’s development planning a in line with its
current surrounding. Following a budget or spending plan
will also keep the state out of debt and let people’s money
to be managed efficiently.
TUTORIAL EXERCISE
& ATTENDANCE
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END OF CHAPTER 5