<KOD KURSUS>BACHELOR OF HUMAN RESOURCE MANAGEMENTS SEPTEMBER 2017 BBPB2103 HUMAN RESOURCE MANAGEMENT MATRICULATION NO : 931118055046001 IDENTITY CARD NO. : 931118055046 TELEPHONE NO. : 013-6167517 E-MAIL :
[email protected] LEARNING CENTRE : OPEN UNIVERSITY MALAYSIA (SEREMBAN) 0 HUMAN RESOURCE MANAGEMENT (BBPB2103) TABLE OF CONTENTS TITTLE PAGES 1.0 INTRODUCTION 1.1 BRIEF DATA ABOUT AMWAY 1.2 AMWAY ORGANIZATIONAL CHART 1-3 2.0 FOUR CHANGES IN THE MALAYSIAN ECONOMY THAT CAN AFFECTHUMAN RESOURCE MANAGEMENT IN THE AMWAY 1. MARKET REACTION (CUSTOMERS) 2. HUMAN RESOURCE DEVELOPMENT (COMPETITORS) 4-9 3. GLOBALISATION 4. COST REDUCTION 3.0 FOUR CHANGES IN THE MALAYSIAN TECHNOLOGY THAT CAN AFFECT HUMAN RESOURCE MANAGEMENT IN THE AMWAY 1. RESEARCH AND TECHNOLOGY DEVELOPMENT 2. PRESERVING SCARCE RESOURCES 10-14 3. 24 HOURS ONLINE SERVICE 4. E-LEARNING MANAGEMENT SYSTEM 4.0 SUGGESTIONS TO ADDRESS THE CHANGES IN ORDER TO IMPROVE THE AMWAY’S HUMAN RESOURCE MANAGEMENT 1. ADVANCED RESEARCH AND TECHNOLOGY 15-19 DEVELOPMENT 2. BUSINESS AWARENESS CAMPAIGN 3. WORKSHOP AND TRAINING EVENTS 4. REWARDS AND BENEFITS 5.0 CONCLUSION 20 6.0 REFERENCES 21-22 HUMAN RESOURCE MANAGEMENT (BBPB2103) 1.0 INTRODUCTION AMWAY (American Way) is an American multilevel marketing company that sell a variety of around 450 quality types of such as fitness, beauty and home care products. AMWAY was established by Rich Devos and Jay Van Andel in 1959. AMWAY is a part of the Alticor group of companies (parental company) with the head quarter in Ada, Michigan, USA. AMWAY Malaysia has extended to support the businesses of its AMWAY Business Owners (ABOs) with a widespread network of AMWAY Retail Shops throughout Malaysia and Brunei, and three local warehouse hubs. Furthermore, AMWAY Malaysia is one of the top 10 performing associates, supported by an impressive indicators such as sales turnover, profitability, and a tough AMWAY Business Owner strength within the AMWAY worldwide group. According to Bursa Malaysia Main Market, AMWAY Malaysia is a chief direct selling company in Malaysia with a central force of more than 239,000 AMWAY Business Owners and recorded a profits of RM1.02 billion for the fiscal year ended 31 December 2015. AMWAY Malaysia was awarded a 10-year direct selling license by the Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC) in 2010. The AMWAY Company offering a broad range of quality products under its 5 fundamental product lines such as Nutrition and Wellness (NUTRILITE vitamin, mineral and dietary supplements), Skin Care and Cosmetics (ARTISTRY skincare and colour cosmetics), Personal Care (GLISTER oral care, BODY SERIES (body care and SATINIQUE hair care), Home Care (L.O.C. household cleaning products, SA8 laundry care), and Home Tech (e-spring water treatment system, ATMOSPHERE air treatment system) over 40 years in Malaysia. In addition, the AMWAY Company’s Personal Shoppers Catalogue offers local consumer products. 1 HUMAN RESOURCE MANAGEMENT (BBPB2103) AMWAY always has been at the center of international market for the last 50 years therefore their motto is, “Think Global, Act Local.” Currently, more than 3.6 million durable AMWAY Business Owner distribute AMWAY products in over 80 countries in the USA by Forbes in 2012. Moreover, AMWAY launched E-Commerce sites that extends the AMWAY business prospect into cyberspace to support the distributors. AMWAY’s vision is 'To be the best business opportunity in the world' and AMWAY’s mission is 'Through the partnering of Distributors, Employees, and the Founding Families, and the support of quality products and service, we offer all people the opportunity to achieve their goals through the AMWAY Sales and Marketing Plan.' Currently, more than 19,000 employees worldwide backing millions of Amway Business Owners who sell AMWAY products. 1.1 BRIEF DATA ABOUT AMWAY AMWAY Industry: Multi-level marketing Type: Private Founded: November 9, 1959 Founder: Richard DeVos Jay Van Andel Chairman: Steve Van Andel President: Doug DeVos Chief Financial Officer: Mark Stevens Products: Amway Home, Glister, G&H, Nutrilite, Artistry, AmwayQueen, eSpring, Atmosphere, XS Energy Employees: 19,000 (2016) Sales: $8.8 Billion (2016) Fiscal Year End: Dec 31, 2016 Headquarters: Ada, Michigan, United States Website: www.amwayglobal.com 2 HUMAN RESOURCE MANAGEMENT (BBPB2103) 1.2 AMWAY ORGANIZATIONAL CHART 3 HUMAN RESOURCE MANAGEMENT (BBPB2103) 2.0 4 CHANGES IN THE MALAYSIAN ECONOMY With the existing ranks of the Malaysian economy, the indicators of recession have gravely distress the entire economy. It has been observed that, the economic business phase has move in to the recessionary period. This recessionary period hints to positive and negative effects on the business as well as the economy. (The Star Online, 2010) 1. MARKET REACTION (CUSTOMERS) Customers are major influence to the Human Resource Management of the organization functions. So, the employees in the organization must contribute towards attaining the quality of goods. It is the obligation of every employee to ensure that their work is of the highest standard. Due to recession, customers will tighten up their purses and spend the money frugally. There will be an adversarial effect over the luxury items such as decrease in sales of goods and services due to a reduction in the overall number of sales. For example, consumer may be more likely to buy AMWAY products such as Home Tech during an expansion period, rather than during a recession. The relative significance of objects in the Consumer Price Index (CPI) is based on studies of consumers’ purchasing behaviour tells us how consumer purchases have changed over time. If the levels of sales cannot be controlled, this will cause a decline in the profit margins. Thus, the entire sales will decrease and the Human Resource Management in the organization has to draft another methods to attract the customers. Furthermore, global financial crisis has not helped uphold consumer confidence, neither in the global economy nor in the local economy since 2008. Amway (M) Holdings Bhd, Executive director Yee Kee Bing said that “AMWAY’s RM1 billion sales target by 2015 is no more valid” as the consumer products merchant struggles with Malaysia's Goods and Services Tax (GST) and a weaker ringgit contrasted with the US dollar. Besides, Malaysian consumers start to feel the pain after what has been a challenging year for Malaysians, specifically with the introduction of the Goods and Services Tax 4 HUMAN RESOURCE MANAGEMENT (BBPB2103) (GST)." The GST is expected to affect Malaysian consumer sentiment while a weaker ringgit makes AMWAY's import products from the United States more expensive. About 80% to 85% of AMWAY products come from AMWAY headquarters in United States and is transacted in dollars. Thus, AMWAY's profit has weakened. In FY14, the group recorded RM99.95 million net profit compared to RM109.08 million a year earlier. (The Edge Markets Online, 2015) 2. HUMAN RESOURCE DEVELOPMENT (COMPETITORS) Competition plays a very important part in the Human Resource Management of the organization. The heights of competition within the existing markets also would get aggressive in terms of the margin received because recession will cause great levels of uncertainty within the business enterprise. A recession will irrefutably lessen the demand pull of inflation pressures and reassures the price clashes on the street as companies seek to uphold the consumers. This phase will affect the fragile competitors to close their industry. (Samuelson & Marks, 2003) The topmost competitors of AMWAY Company are 3 which are Avon Products Inc., Mary Kay Inc. and The Procter and Gamble Company. The competition among this 3 rival sellers is great due to many other companies sell same products such as health, beauty, and home products. According to AMWAY (M) HOLDINGS BHD’s Annual Report 2016, AMWAY’s products are somewhat expensive compared to other brands since it trade in all the products from AMWAY Incorporation in the United States of America. Besides, the intimidation of new competitors is great due to low entry barriers for direct selling business. Conferring to Direct Selling Association of Malaysia, there are 75 direct selling companies including AMWAY have been registered in its record. As a result, AMWAY’s management only hires capable workers and allocate multi- skilled people so that AMWAY can maintain their tittle of great quality product and services. This can help Human Resource Management to withstand company’s mission and recompense employee in term of performance to compete with other organization. 5 HUMAN RESOURCE MANAGEMENT (BBPB2103) Moreover, the risk of substitute products is great due to less differentiation between AMWAY’s products such as GLISTER toothpaste and SANTIQUE hair care, and other products available in the market from other MLM companies such as Mary Kay, Avon, Cosway and Herbalife. Besides, Consumers also are more convenient to purchase products of goods and services from non-MLM companies with economical price. Thus, AMWAY need to compete with other brands through quality excellence of products to attract more customers. Then, the risk from suppliers bargaining power for AMWAY is quite low because AMWAY has its own organic farm and industrial unit to produce its own high quality products. AMWAY’s products use raw materials from its own farm and the supplier for all its products is the parental company itself which is Amway Corporation in the United States of America. In addition, AMWAY is the member of World Federation Direct Selling Association in which the consumers have the right to return products and gain refund if they are discontented. Therefore, it will upsurge the company worth in the eyes of consumer and society. 3. GLOBALISATION Due to globalisation, the Human Resource Management are required to play challenging roles in creating a favourable work climate to initiate and implement changes quickly. According to Josh (2012), Human Resource Departments will face biggest challenge to manage a workforce diverse in culture and language skills in various countries in order to develop a global mindset among their employees. This may consist of issues involving age, education, ethnicity, gender, income, marital status, physical limitations, and religion or any other things. Human Resources Management also must play their part in leading the organization in unexplored problems of globalization by understanding the issues and working together to provide better support in training the employees. Since the world began to globalize, many companies especially the direct selling companies that specialized in promoting nutrition products such as AMWAY Corporation attempted to bring the companies to the multinational level and most of them have now accomplished their achievements. AMWAY Company has been prominent in the field of 6 HUMAN RESOURCE MANAGEMENT (BBPB2103) domestic enterprise ever since 50 years ago with familiar health, beauty and home care products. The AMWAY Company has successfully used its collaborations to create the strong network marketing across its many associates and business units across the global. At present, AMWAY has become the world’s largest direct sales business with 3 million AMWAY Business Owner who promotes more than 450 personal care, household, nutrition and cleaning products. Furthermore, AMWAY Company has expanded its product line internationally in the Chinese market as other direct selling business in commercial market 20 years ago. The company had experienced success nevertheless at the same time it faced challenges as China was becoming a democratic country. Then in 1998, China officials placed prohibition on the direct marketing business, as the Chinese government assumed direct marketing business was the base of illegal activities. However, they lifted the prohibition after heavy petitioning from American businessmen and AMWAY got its market back after 3 months. In addition, AMWAY Company has repositioned its production factories in China in order to export products in the Asian countries. Surprisingly, today China is the leading market of AMWAY’s sales. Furthermore, AMWAY Company swiftly expanded to Australia, Europe, Japan, Latin America, China, Africa, India and Scandinavia, Russia and Vietnam (Weblo, 1994-2010). In 1999, AMWAY Company also established a reinstated company named Alticor and launched 3 new companies namely Quixtar, Access Business Group and Pyxis Innovations. Then, Pyxis Innovations subsequently replaced by Fulton Innovation to pursue research and development and Access Business Group to handle fabrication and logistics for AMWAY, Quixtar and third-party clients. (Company History, 2010) 4. COST REDUCTION Human Resource Management’s budget is one of the largest disbursement components in an organization, exclusively in administrations that specify in knowledge and services. The economic background will affect the financial standing of an organization, and the organization must change its business approach to remain or compete in the market place. Usually, organizations will have to reorganize their Human Resource Management to 7 HUMAN RESOURCE MANAGEMENT (BBPB2103) reduce labour expenses through actions such as Downsizing, Outsourcing, and Mergers. In the episode of economic progress, demand for labour power will rise due to an escalation in manufacture. In these positions, organizations will experience a circumstances whereby the labour market is inadequate. However, when an economic depression ensues, the administration’s business is affected and the number of workers needs to be reduced through some methods such as obligatory or voluntarily termination and early retirement. The AMWAY’s management will start to "layoff" and "downsizing" the employees for absence of work as the operation no longer needs them to redeployment or reformation of the institution. Besides, the AMWAY’s management also might depends on "outsourcing" or "off-shoring" to handover the workload to another organization either locally or abroad in times of economic down-turn because overall demand drops. For instances, experts are employed by AMWAY’s management on a temporary basis on a monthly payment to fill a void or deliver a certain level of proficiency. When the specific project is completed, so are the associated expenditures. Even with an annual turnover estimated to be in excess of 40 percent, AMWAY succeeds to keep emergent. Moreover, the attainment behind AMWAY’s development is the localization of the workforces, business model, manufacture and raw material. For illustration, when AMWAY (M) HOLDINGS BHD use local worker and local business model that suit with Malaysian customs and import raw material from local country itself. Thus, this will minimalize the cost of Human Resources Department. Furthermore, the AMWAY’s management might starts to reduce back from three shifts to two or one or discharge some employees even when only functioning one shift. However, economy constrained layoffs are not permanent, and workers will be "called back" when things get better. If demand for goods and services is stable, the workers are needed to supply for the economy. The AMWAY’s management also may reduce employees intentionally so that more work will have to be done by less people. Output per employee may increase, but positivity may suffer as hours become lengthier, work becomes harder, wage increases are stopped. Moreover, downsizing 8 HUMAN RESOURCE MANAGEMENT (BBPB2103) AMWAY’s organization is deteriorating revenue due either to a poor economy or increased foreign competition. For example, the AMWAY Company stated plans to close its former Quixtar distribution center, 5101 Spaulding Ave, in Ada Township and reduce 100 local manufacture jobs in 2010. According to Michael G. Pratt’s academic report (September 2000), “As sales revenues and profits decrease, the AMWAY management will confine on hiring new employees, or freeze hiring wholly. Unemployment will increase due to a reduction in the workplace to minimize expense (Samuelson & Marks, 2003). In a determination to cut expenses, the AMWAY’s management also will stop buying new equipment, confine research and development and stop new product manufactures. Moreover, the costs for marketing and advertising also will be reduced by Human Resources Department.” These saving efforts will influence other productions, both big and small, which offer the goods and services used by the big company. Furthermore, AMWAY Company has invested $1.5 million to focus on research and development model in China because the labour cost in China is cheaper compared to the United States, so 2000 Chinese were appointed as workers in this company. This matter needs to be handled sensibly and justly by the Human Resource Management team to evade the complications and employee disappointment that might affect the administration’s performance. 9 HUMAN RESOURCE MANAGEMENT (BBPB2103) 3.0 4 CHANGES IN THE MALAYSIAN TECHNOLOGY Human Resource Management influence by the progress in technology in many ways such as unexpected change in form, structure and employment requirements of organization. Technology process created a global platform that allowed more people collaborate and compete and share knowledge on a scale never seen before. Knowledgeable employees need to be equipped with skills to carry out responsibilities and new roles. Therefore, Human Resource Management needs to prepare training and development programs to help employees increase their skills in order to fulfill the demands of a knowledgeable employee. 1. RESEARCH AND TECHNOLOGY DEVELOPMENT Technology factors such as research and development activity, and rate of technological revolution can decrease obstacle of the Human Resource Management to enter and influence outsourcing decisions globally. AMWAY’s management did countless researches on how to cope a teamwork in the company in order to realize its objective. Therefore, AMWAY’s management launched AMWAY Information Technology Service in 2004 as the Global Data Centre and Information Technology mutual Service Hub under Malaysia Multimedia Super Corridor Program to support the development of AMWAY’s sales and distributor force around the world by providing them a new incorporated and expanded facility enterprise of IT services in Cyberjaya. For example, investors and stockholders have to meet AMWAY Business Owners, employees or board of directors to get further information of the company. AMWAY’s management today has developed a website for its investors and stockholders' accessibility purposes. The AMWAY Company’s website such as m.amway.com can lessen the obstacle of access for convenience of its investors and stockholders. AMWAY's technology changes in a way of its system. Other than that, AMWAY’s management also takes its environmental responsibilities deliberately. So, AMWAY’s research department continuously 10 HUMAN RESOURCE MANAGEMENT (BBPB2103) make research and develop their marketing products using current technological development. For example, multi-purpose cleaner Liquid Organic Cleaner (L.O.C™) is a biodegradable concentrate product. Besides, AMWAY currently is persistently improving its products with the aim to accomplish its ecological responsibility. For instance, AMWAY’s product such as SA8™ laundry detergent is entirely transported in boxes that made from 100% recycled paper. In addition, AMWAY NUTRILITE FARMS produce its own food supplements with standards of licensed organic farming in specific location. The AMWAY Company also depend on renewable energies and natural ingredients in manufacturing progression to prevent harmful substances. Hence, AMWAY Company has acknowledged and received countless international awards for its devotion to the environment. 2. PRESERVING SCARCE RESOURCES Furthermore, AMWAY’s management also focused on the reduction of the consumption of scarce resources such as paper usage and plastic, in the form of DVDs in 2016. Thus, AMWAY’s management reduced the number of printed catalogues and CD/DVDs and made it available online for download on AMWAY’s website and mobile applications. In 2016, AMWAY’s management reduced the quantity of CDs and DVDs that its company produced by 29,163 pieces. In addition to the environmental benefit, by going paperless, Human Resource Management reduced the administrative work, thus leading to better workplace efficiencies. Exclusive of the commemoration 40th anniversary edition AMAGRAM magazine produced in March and June 2016, AMWAY’s management reduced the quantities of printed monthly AMAGRAM magazine copies and made it digitally available as e- AMAGRAM. AMWAY’s management also provide the training materials available for AMWAY Business Owners to download online, which also allowed AMWAY’s management to reduce the number of printed copies for the business kit materials. Moving forward, AMWAY’s management introduced an e-Business Kit in the second quarter of 2017. Moreover, AMWAY’s management also supports its business owners through a fair compensation plan and a strong family of high quality 11 HUMAN RESOURCE MANAGEMENT (BBPB2103) product lines. Then, AMWAY business also offers the opportunity for an individual to build their own independent business based on their individual ambitions using training and development activities include the determination and analysis of educational programs online. For example, The AMWAY Academy offers e-learning courses, web presentations and personal training courses. In 2010, Amway Academy distributed more than 3,000 certificates across Europe for online learners. 3. 24 HOURS ONLINE SERVICE Despite the fact, E-Commerce sites nowadays are talking about offering same-day delivery, Amway Malaysia has been doing this for inner-city sites such as AMWAY Central Malaysia app or from AMWAY Malaysia’s website from 26 years ago, and for its online orders as well, on condition that the order comes in by 8:30 am. Malaysia is actually one of the few countries in the world where AMWAY offers such a service. The impact of technology factors influences the outsourcing decision because outsourcing can bring the benefits of economies of scale. For instance, the AMWAY Business Owners can directly order the item with HQ using online website and deliver it directly to the customer using courier service such as Pos Laju. Hence, this can reduce the time of the good been transported and improve the speed of service for the convenience of AMWAY Business Owners. As a result, AMWAY distributors can enjoy online access to data for 24 hours. Furthermore, AMWAY also has embraced the mobile and digital phase that we currently live in, by adopting technology as a major factor to support AMWAY Business Owners to access data “On-The-Go” for 24hours online. AMWAY central is a one-stop destination for the latest AMWAY digital applications and publications such as new and enhanced version of accessibility to various AMWAY digital tools, anytime and anywhere, all in one app. AMWAY also developed and launched AMWAY Malaysia’s mobile revolution with the “e-ABO Welcome Pack” for new AMWAY Business Owners leaders to stay up-to-date on events and trips they may be attending. AMWAY’s management progressed from print to digital 12 HUMAN RESOURCE MANAGEMENT (BBPB2103) world to provide more comprehensive information on all trips and events for AMWAY Business Owners, which they can easily retrieve on their smart devices. In March 2016, AMWAY Malaysia launched Instagram and have a tremendous response with more than 9,000 followers. AMWAY’s Instagram posts differ from Facebook posts because it has more casual and fun responding from public. Besides, AMWAY Malaysia also launched WeChat in December 2016. One month after WeChat launch, AMWAY’s management have more than 13,000 followers onboard. WeChat platform is proving to be a great way for AMWAY’s management to share information on products and services for followers. With an increasing number of Malaysian smartphone users using this mobile social communication application, AMWAY’s management wanted to leverage on the platform to enhance communication skills with AMWAY Business Owners and the public. 4. E-LEARNING MANAGEMENT SYSTEM A learning management system (LMS) is a software that enables the administration distribution and extent of an organization’s corporate in e-Learning programs to establish success on the platform. Most of the learning management systems are cloud-based software solutions that companies use as their fundamental tool for managing their Human Resource Management training programs. Over the past few years, e-Learning has also evolved into a Human Resource Department for the extended enterprise. New advancements in learning technology also have helped Human Resource Department to support evolving learner needs and revolutionize the e-Learning space by allowing for more knowledgeable data to be collected and enabling mobile learning capabilities as a revenue for future generation. Therefore, AMWAY’s management has successfully launched new software such as e-Learning system using Sum Total Learning Management System (LMS) and Web-based Trainings (WBTs) to reach and effectively train their sales force, mainly 13 HUMAN RESOURCE MANAGEMENT (BBPB2103) their AMWAY Business Owners in US, Canada, North America, China and Malaysia. Furthermore, Sum Total Learning Management System is also deployed in three separate on-premise installations to manage learning activities around the globe. AMWAY Global Education also plays the parts in emerging many plans in Web-Based Training for AMWAY’s management to publish Design Document detail about the Instructional Strategy and Design Overview. This Design Document serves as the guideline for AMWAY Corporate management in other markets to localize the Web-Based Training. The most important aspect of localization is to use local languages to convey the knowledge using Web-Based Training. The adoption of local languages will help AMWAY Business Owners to easily gain and absorb the knowledge that need to market the products such as the branding and positioning of the NUTRILITE products, the target customer subdivisions and marketing talents. Moreover, AMWAY Malaysia has decided 3 languages for the localized version of courseware which is Malay, Chinese and English language. Hence, the aspect of localization learning cultures is different in US and Asian countries particularly Malaysia. AMWAY’s management also designed Web-Based Training based on text-driven concept, meaning all necessary content will be contained in text elements, audio is considered secondary. This also means learners can have self-reading mode at their own pace, based on their comfortable learning speed. However, AMWAY’s management also provide alternative method of learning because some Asian country such as Malaysia learners prefers story-telling kind of learning with audio as primary. 14 HUMAN RESOURCE MANAGEMENT (BBPB2103) 4.0 SUGGESTIONS 1. ADVANCED RESEARCH AND TECHNOLOGY DEVELOPMENT AMWAY’s Human Resource Management must do advanced research and technology development in order to maintain with great quality standard of products to meet consumer needs and expectations within the worldwide market. Within its product improvement program, AMWAY's practical teams must use the company's consumer base to observe and experiment new product ideas. AMWAY management have 75 special laboratories and approximately 1,000 scientists accountable for research and technology development and testing of the products projects in progress at any one time. AMWAY’s management must put more efforts to preserve resources, ease waste, control cutting edge technology and increase the use of green products throughout the lavatories. Then, AMWAY’s research team must carry on to develop the new innovative and ecological products. Simultaneously, AMWAY’s research team also need to continuously improve the existing products so that every product they launched will be more ecological. Other than that, AMWAY’s research team must carry on to research extensively to minimize the amount of packaging to ensure safe transport and storage of AMWAY products. For example, AMWAY’s research team can create packaging that made of significant quantities of recycled and biodegradable resources such as wheat based loose fill beads to protect the products in conveyance cartons that can be recycled. Furthermore, AMWAY’s research and technology development team also have to do extra research in order to improve and produce more biodegradable products as a basis of reduction and less waste to protect environment. For example, AMWAY can use biodegradable surfactants in detergent products because nowadays many consumers are demanding for biodegradable products such as plastic bags. According to Federal Trade Commission regulation, biodegradable defined as a substantial that is degradable when exposed to air, moisture, bacteria or other 15 HUMAN RESOURCE MANAGEMENT (BBPB2103) organisms within a reasonable time after customary disposal. (Greener Choices, 2003-2010). 2. BUSINESS AWARENESS CAMPAIGN AMWAY’s Human Resource Management team must create business awareness campaign to create brand buzz in the market. Besides, business awareness campaign is the first step in building advertising objectives to create a favorable impression or motivate customers to buy and become aware of certain brand and its meaning. AMWAY’s Human Resource Management must use marketing messages delivered through various media to create awareness about AMWAY products and its uses. With business awareness campaign, AMWAY’s management can make people aware of their new products and create a traffic buzz to a business in the market. For example, AMWAY has an organized a global campaign such as "One BY One" to support children in 2010. This campaign illustrates the idea of making a better changes in children's lives and it is also a part of an ‘umbrella’ cause to improve the welfare of children (The Time 100, 2010). Also, indirectly this campaign creates brand awareness globally. Furthermore, AMWAY must work together with the United Nations Children's Fund (UNICEF) to support the global champion for children's right. AMWAY also can promote business awareness campaign such as “NUTRILITE™ Power” and “Get The Right Protein Campaign”. The “NUTRILITE™ Power” of 5 campaign and “Get The Right Protein Campaign” can raise alertness of childhood malnutrition as they work with AMWAY Business Owners, employees and the public towards a global solution. Conferring to the World Health Organization (WHO), 7 million children under the age of 5 die each year from inevitable reasons such as Malnutrition. NUTRILITE™ Little Bits is a micronutrient supplement that provides 15 crucial vitamins and nutrients to children age 6 months to 5 years old that need for the body system. Besides, this is a can be huge advantage in the market 16 HUMAN RESOURCE MANAGEMENT (BBPB2103) especially when customers (parents) wants to buy some product and AMWAY products are the first brand that comes to mind. The utmost level of business awareness is mind awareness. AMWAY also can achieve top of mind awareness through repeated exposure and consistent delivery of a good product or service over time using latest online technology such as Facebook, WeChat, Instagram and few more applications. Latest online technology has been proven effective in getting customers to recognize and remember brand. Business awareness is essential not only because it brings customers to business for the first time, but it also encourages them to keep coming back. Besides, consumer like to buy products from brands that they can remember and identify first with company’s logo and tagline. In short, AMWAY can achieve success and compete with others by strengthen their bond with customers and expand their products’ brands with the help of business awareness campaign. 3. WORKSHOP AND TRAINING EVENTS AMWAY’s Human Resource Management team must recognize the importance of investing in the employees who make up their work team. This is because the continued education and training of the team through professional development programs display the company's support of seeing the employees grow professionally and become an even more valued member of the team. AMWAY’s management team need to organize events, workshops and trainings in providing support and recognition for their AMWAY Business Owners. Workshop is very important to improve the competencies as well as skills of their AMWAY Business Owners (ABO) to help them grow better. AMWAY must conduct training programs such as Employee Development Program, Amway Leadership Program and National Leadership Convention to improve their AMWAY Business Owners knowledge and abilities. This training and development programs can improve leadership development and customer service. 17 HUMAN RESOURCE MANAGEMENT (BBPB2103) Furthermore, AMWAY’s Human management team must announce a place called Product Workshop a place for AMWAY Business Owners to recharge their positive energy as well as to find comfort in the products which have brought benefits to them. AMWAY can offers AMWAY Business Owners a holistic experience with greater access to the complete range of products and services through this Product Workshop. AMWAY’s management team also should provide workshop for new AMWAY Business Owners such as ‘NEW ABO EXPERIENCE WORKSHOP’ and ‘MY ARTISTRY BUSINESS WORKSHOP’ to increase the product knowledge of AMWAY Business Owners after joining the Amway opportunity. The AMWAY workshop can provide AMWAY Business Owners with a dedicated space to meet, connect, learn and purchase product while sharing the exciting AMWAY business opportunity with prospects. The AMWAY workshop also can provides flexible spaces for product demonstrations, sampling, product recommenders and assessment tools such as Artistry, Nutrilite and XS products to showcase products and to keep in touch with top selling leaders so that they can share their knowledge to enhance their marketing support. The workshop also can provide proper guidance and solutions to AMWAY Business Owners through special workshops containing how to do AMWAY business, overcome of the objections, how to use the product and product trainings. This can motivate the AMWAY Business Owners and develop the business positively. The workshop also provide special training towards business development which will help them to develop their AMWAY business so they can feel more secured and worthy in associating with AMWAY. When AMWAY Business Owners participate regularly in professional training, they are being prepared for professional advancement within the company should opportunities arise for changes within the staff. 4. REWARDS AND BENEFITS AMWAY’s Human Resource Management team should value employee contribution and select rewards accordingly. AMWAY Business Owners who see the rewards as worth the effort will be more motivated to work hard to obtain them. 18 HUMAN RESOURCE MANAGEMENT (BBPB2103) AMWAY’s Human Resource Management team should clearly delineate how AMWAY Business Owners can earn rewards. When AMWAY Business Owners have a comprehensive understanding of what is expected of them, they will be more capable of achieving performance standards. This will increase AMWAY Business Owners motivation to achieve the desired performance results. When AMWAY Business Owners view the reward system as fair, they will be more engaged in trying to obtain the reward. Rewards should be distributed consistently according to predetermined policies to AMWAY Business Owners. Never engage in favoritism or cut corners as this will have a detrimental impact on AMWAY Business Owners performance. In order for rewards to have the most impact on influencing AMWAY Business Owners performance, they must be directly linked to the desired behavior. As the AMWAY Company grew, distributors’ status and income in organization increased and were marked by achievement levels identified as “pin levels.” In addition, AMWAY’s management team also can pay cash bonuses in a lump sum to motivate AMWAY Business Owners. When AMWAY Business Owners are excited about rewards, they will work harder to achieve them. AMWAY Business Owners should be rewarded when they meet large goals as well as smaller milestones. For example, an assortment of partner provisions ranging from telecommunication, gyms, jewelry, home appliances and more with exclusive offers are given to AMWAY Business Owners as a small appreciation. This promotion will give the AMWAY Business Owners to push the products out to the market to gain the benefits from it. Indirectly, these give the company an advantage in the spread of advertising and marketing cost over the volume, this result in a lower unit cost and more competitive prices. 19 HUMAN RESOURCE MANAGEMENT (BBPB2103) 5.0 CONCLUSION AMWAY (American Way) is an American multilevel marketing company that sell a variety of products such as fitness, beauty and home care products. Changes in Malaysian economy such as market reaction (customers), human resource development (competitors), globalisation and cost reduction can affect AMWAY. Consumer expenditure is undoubtedly the foundation of various economies. Customers will tighten up their purses and spend the money frugally. Besides, the heights of competition within the existing markets such as Avon Products Inc., Mary Kay Inc. and The Procter and Gamble Company also would get aggressive in terms of the margin received because recession will cause great levels of uncertainty within the business enterprise. A recession will irrefutably lessen the demand pull of inflation pressures and reassures the price clashes on the street as companies seek to uphold the consumers. AMWAY also will face biggest challenge to manage a workforce diverse in culture and language skills in various countries such as China, Africa, India and Scandinavia in order to develop a global mindset among their employees. Moreover, the economic background will affect the financial standing of an organization. Technology process created a global platform that allowed more people collaborate and compete and share knowledge on a scale never seen before. Technology factors such as research and development activity, and rate of technological such as learning management system (LMS) revolution can help company to succeed globally. Besides that, they strive to practice on environment aspect and improved the existing products. Economic changes can lead to extreme levels of negative as well as positive effects over the business association (Ayers & Collinge, 2003). AMWAY can establish their company by doing some advance research to improve and create biodegradable products. AMWAY also can launch business awareness campaign around the world to create brand awareness.in addition, AMWAY also can provide business owners a training workshop and rewards as a motivator factor to increase sales. 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