Human Resource

Management
ELEVENTH EDITION
1
GARY DESSLER

Part 1 | Introduction

Chapter 1

Introduction to Human Resource Management

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook

All rights reserved. The University of West Alabama
 The Management Process

Planning

Controlling Organizing

Leading Staffing

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Human Resource Management at Work
• What Is Human Resource Management
(HRM)?
 The policies and practices involved in carrying out
the “people” or human resource aspects of a
management position, including recruiting,
screening, training, rewarding, and appraising.

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Basic HR Concepts
• The bottom line of managing:
Getting results
• HR creates value by engaging
in activities that produce the
employee behaviors that the
company needs to achieve
its strategic goals.

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Line and Staff Aspects of HRM
• Line manager/function
 A manager who is authorized to direct the work of
subordinates and is responsible for accomplishing
the organization’s tasks.
 directly related to main activities - production,
marketing departments.
• Staff manager/function
 A manager who assists and advises line managers.
 not directly related to main activities - finance, HR
departments.

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Line Managers’ HRM Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working
relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition

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 Human Resource Managers’ Duties

Line Function Coordinative

Line Authority Function
Implied Authority Functional Authority

Functions of
HR Managers

Staff Functions
Staff Authority
Innovator
Employee Advocacy

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FIGURE 1–1
HR Organization Chart
for a Large Organization

Source: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007.

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FIGURE 1–2 HR Organizational Chart (Small Company)

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FIGURE 1–3 Employment and Recruiting—Who Handles It?
(Percentage of All Employers)

Note: Length of bars represents prevalence of activity among all surveyed employers.

Source: HR MAGAZINE, BNA/Society for Human Resource Management, 2002.

Reproduced with permission via Copyright Clearance Center.
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 Human Resource Management at Work

Acquisition

Fairness Training

Human
Resource
Management
Health and
(HRM) Appraisal
Safety

Labor Relations Compensating

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Personnel Aspects of a Manager’s Job
• Conducting job analyses
• Planning labor needs and recruiting job candidates
• Selecting job candidates
• Orienting and training new employees
• Managing wages and salaries
• Providing incentives and benefits
• Appraising performance
• Communicating
• Training and developing managers
• Building employee commitment

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Personnel Mistakes
• Hire the wrong person for the job
• Experience high turnover
• Have your people not doing their best
• Waste time with useless interviews
• Have your company in court because of discriminatory actions
• Have your company cited by OSHA for unsafe practices
• Have some employees think their salaries are unfair and
inequitable relative to others in the organization
• Allow a lack of training to undermine your department’s
effectiveness
• Commit any unfair labor practices

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 Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Theories of HRM

PowerPoint Presentation by Charlie Cook

© 2008 Prentice Hall, Inc. All rights reserved. The University of West Alabama 1–14
Theory X and Y
• Theory X and Theory Y were proposed by
Douglas McGregor who was an American social
psychologist. He presented his theory in his 1960
book, “The Human Side of Enterprise”.
• The two theories has been used by
management to formulate and develop
motivation and positive management styles,
strategies and techniques.

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Theory X
Theory X assumes that people dislike work and
will avoid it if they can. Because of this dislike of
work, people must be directed and threatened
with punishment to get them to achieve
organizational objectives.
• Theory X assumes autocratic management.
• Managers under this theory assume that most people
are naturally lazy and need to be controlled and
supervised.
• They think that people need to be motivated all the
time
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What are the characteristics of Theory X
Managers
• Results-driven, concerned with the completion of a given task by
issue deadlines.
• Intolerant in nature.
• Distances themselves from workers.
• Issue threats and warnings to make people follow their
instructions. Do not participate in the process of team building.
• Unconcerned about the welfare or morale of the employees.
One-way communicators and poor listeners.
• Withhold rewards and suppress pay and remuneration levels.
• Poor at delegating responsibilities and think giving orders is
delegating responsibility.
• Hold on to responsibility but shift accountability to subordinates.
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Theory Y
Theory Y assumes that people will work as naturally as
play or rest. They will exercise self-direction and are
committed to their work. Under proper conditions, people
accept responsibility
• Theory Y assumes democratic management.
• Managers under the Theory Y paradigm assume that
most people like to work, have self-control, smart and
able to motivate themselves and want to do a good job.
• Even Theory Y managers are results-oriented, after all,
but they are also concerned with not just the completion
of work, but they assist their subordinates in doing
things.
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What are the characteristics of Theory Y
Managers
• Tolerant in nature.
• Do not distance out from their employees. Think oneself as part of
a team and provides motivation and encouragement to the team.
• Do not threat employees for non-compliance. Instead, they
explain them about the norms and compliance issues and make
them realize that instructions are for the betterment of work.
• Actively participate in the team building process.
• Very much concerned about the welfare and morale of employees.
• Good communicators and listeners, take suggestions and
constructive criticism seriously.
• Rewards and compensations. Good at
delegating responsibilities.
• Hold on to responsibility and also accountability.
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Maslow’s Hierarchy of Needs

Figure 1 :Abraham Maslow’s Hierarchy of Needs

Hierarchy of Needs was proposed by Abraham Maslow in his 1943
paper “A Theory of Human Motivation
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Hierarchy description
1. Physiological needs: These are the need for basic amenities of
life: air, water, food, clothing and shelter.
2. Safety needs: Safety needs include physical, environmental
and emotional safety and protection. For instance,job &
financial security, protection from threats,etc.
3. Social needs: Social needs include the need for love, affection,
care, belongingness, and friendship.
4. Esteem needs: There are two types: internal esteem needs
(self-respect, confidence and freedom) and external esteem
needs (recognition, status, attention).
5. Self-actualization need: The urge to become what you are
capable of becoming, the need for growth and self-contentment.
It also includes desire for gaining more knowledge, social service,
creativity and being aesthetic.

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Maslow’s Hierarchy of Needs
• Maslow assumes the existence of a hierarchy
of five needs within each individual. Low-level
needs such as physiological requirements and
safety must be satisfied before higher-level
needs such as self-fulfillment are pursued. In
his hierarchical model, when a need is mostly
satisfied, it no longer motivates and the next
higher need takes its place.

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Applying Hierarchy of Needs in HRM
1. Physiological needs: the managers should give employees
appropriate salaries to purchase the basic necessities of life.
Breaks and eating opportunities should be given to employees.
2. Safety needs: the managers should provide the employees job
security, safe and hygienic work environment, and retirement
benefits so as to retain them.
3. Social needs: the management should encourage teamwork
and organize social events.
4. Esteem needs: the managers can appreciate and reward
employees on accomplishing and exceeding their targets. The
management can give the deserved employee higher job rank /
position in the organization.
5. Self-actualization needs: the managers can give the employees
challenging jobs in which the employees’ skills and competencies
are fully utilized. Moreover, growth opportunities can be given to
them so that they can reach the peak.
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Limitations of Maslows´ Hierarchy of Needs
• It is essential to note that not all employees are
governed by same set of needs. Different individuals
may be driven by different needs at same point of time.
• It is always the most powerful unsatisfied need that
motivates an individual.
• The theory is not empirically supported.
• The theory is not applicable in case of starving artist as
even if the artist’s basic needs are not satisfied, he will
still strive for recognition and achievement.

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ERG Theory
• There are three categories of human needs that
influence a worker’s behavior: existence, relatedness
and growth
• A model that appeared in 1969 in a Psychological
Review article entitled "An Empirical Test of a New
Theory of Human Need", by Clayton P. Alderfer.
• The ERG Theory categories human needs are:
 Existence Needs: physiological and safety needs (such as
hunger, thirst and sex). The 1st two levels of Maslow.
 Relatedness Needs: social and external esteem (involvement
with family, friends, co-workers and employers). The 3rd and 4th
levels of Maslow.
 Growth Needs: internal esteem and self actualization (the desire
to be creative, productive and to complete meaningful tasks).
Maslow’s 4th and 5th levels.
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Alderfer’s ERG Theory

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ERG Theory Vs. Maslow’s Theory
• Contrarily to the idea by Maslow that access to the
higher levels of his pyramid required satisfaction in the
lower level needs, the ERG areas of Alderfer are
simultaneous needs.
• ERG Theory recognizes that the importance of the
three categories may vary for each individual.
• According to the ERG theory, if you focus exclusively
on one need at a time, this will not effectively motivate.
• Managers must recognize that an employee has
multiple needs, which must be satisfied simultaneously.

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Three Needs Theory
• Proposed by David McClelland
• An individual’s specific needs are acquired over time
and are shaped by one’s life experiences. Most of
these needs can be classed as either achievement,
affiliation, or power. A person’s motivation and
effectiveness in certain job functions are influenced by
these three needs
• Also known as earned needs theory.
• Consists:
 Need for Achievement
 Need for Affiliation
 Need for Power

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Need for Achievement (nAch):
• People with a high nAch seek to excel and thus tend to
avoid both low-risk and high-risk situations.
• Achievers avoid low-risk situations because easily
attained success is not a genuine achievement.
• High nAch individuals prefer work that has a moderate
probability of success, ideally 50% chance.
• Achievers need regular feedback in order to monitor the
progress of their achievements. They prefer either to
work alone or with other high achievers.

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Need for Affiliation (nAff)
• People with a high nAff need harmonious
relationships with other people and need to feel
accepted by other people.
• High nAff individuals prefer work that provides
significant personal interaction.
• They tend to conform to the norms of their work
group.
• They perform well in customer service and
client interaction situations.

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Need for Power (nPow):
• A person’s nPow can be one of two types - personal
and institutional. Those who need personal power want
to direct others, and this need often is perceived as
undesirable.
• Persons who need institutional power (also known as
social power) want to organize the efforts of others to
further the goals of the organization.
• Managers with a high need for institutional power tend
to be more effective than those with a high need for
personal power.

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 Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Importance of HRM

PowerPoint Presentation by Charlie Cook

© 2008 Prentice Hall, Inc. All rights reserved. The University of West Alabama 1–32
Why HRM is important?
• To achieve organizational objectives through human
workforce.
• To empower workers towards achieving optimal
individual performance and potential
• To increase individual commitments and sense of
belonging towards organization
• To integrate human resource policy with business
strategies towards strengthening organizational
cultures

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HRM and Human Resource Development
• HRM exists to ensure organizations have the right people who will
be able to achieve the organizational objectives. Among the
functions of a human resource specialist are:

 Recruit suitable workers

 Ensure the workers receive appropriate training
 Establish systems for compensation and rewarding employees
 Help heads of departments keep their subordinates free from injury
and sickness
 Design and implement appropriate disciplinary systems so workers
who defy organizational rules and thus jeopardize its success can be
dealt with
 Develop a working relationship with the employees’ trade union
representatives, where the workers are unionized
 Ensure the organization is complying with the country’s employment
laws Maintain staff records

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Ministry of Human Resources
• The Ministry of Human Resources plays a major role in
HRM by developing policies and laws which affect
employers and employees[1]. There are several key
departments of the ministry:
 Labor
 Industrial Relations Manpower
 Trade Union Affairs Occupational Safety and Health Skills
Development
• There are also a few statutory bodies/companies under
the ministry:
 Employees Social Security Organization
 Human Resources Development Berhad
 National Institute of Occupational Safety and Health
 Skill Development (Loan) Fund Corporation
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Departments, statutory bodies and companies
under the ministry of Human Resources
1. The Labour Department (Jabatan Buruh).
The Employment Act 1955, The Sabah Labour Ordinance, The Sarawak
Labour Ordinance
 Covers area such as contracts of service, payment of wages,
employment of women, working hours and holidays, registers,
returns, complaints and inquiries.
 Example: setting minimum labour standards for workers and seek to
protect them from exploitation, employers are required to keep a
register of employees containing specific personal particulars, inquire
into and decide on the disputes between employers and employee
etc
The Wages Council Act 1947
 Orders on minimum wages are made under this legislation for
industries in which the employees are not organized into unions
The Workman’s Compensation Act 1952
 To provide compensation to workers who have accidents at work or
who contract employment-related diseases.
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Departments, statutory bodies and companies
under the ministry of Human Resources
1. The Labour Department (Jabatan Buruh).
The Children and Young Persons (Employment) Act 1966
 Preventing the exploitation of child labour.
 Children under 14 years of age can only be engaged in light work in
their family’s business.
 Young persons aged 14-16 are restricted to working in light work which
does not involve the use of machinery, maximum 7 hours per day and
may not work between 8.00pm and 6.00am.
The Employment (Restriction) Act 1968
 This act requires non-Malaysian citizens to obtain a valid work permit
before they can be employed locally.

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Departments, statutory bodies and companies
under the ministry of Human Resources
2. Industrial Relations Department.
 Responsible to coordinates relations between employees and their
respective trade unions.
 To maintains tripartite relations and co-operations between the
government, employers and employees in the area industrial
relations

3. Industrial Court Malaysia.

The Industrial Relations Act 1967
 The purpose of this law is to provide systems which will encourage
industrial harmony.
 This act establishes an Industrial Court for arbitration of disputes and
lays down procedures for union recognition and collective bargaining.
 The act also includes machinery whereby an employee can claim
reinstatement if the employee has been unfairly dismissed.

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Departments, statutory bodies and companies
under the ministry of Human Resources
4. Trade Unions Affairs Department.
 The Trade Unions Act 1959
 Workers are permitted to form and join trade unions provided these
are registered organizations

5. Occupational Safety and Health Departments.

The Occupational Safety and Health Act 1994
 This act empowers the department to perform safety inspections at
workplaces, organize promotional activities to improve employers’
and workers’ understanding of good safety practices, etc
 The factories and machinery Act 1997
 The petroleum Act 1984 (Safety Measures)

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Departments, statutory bodies and companies
under the ministry of Human Resources
6.Manpower Department.
 Responsible for preparing and carrying out pre-employment skill
training programmes to fulfil the industrial sector needs in Malaysia
 Trains Malaysians for the nations workforces from certificate level up
to advanced diploma level through Industrial Training College
nationwide

7. Departments of Skills Development.

 Responsible developing skilled manpower resources of high quality
through the development of National Occupational Skills Standards.

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Departments, statutory bodies and companies
under the ministry of Human Resources
8. National Institute of Human Resources.
 Responsible for conducting research related to human resource issues

9. Social Security Organization.

The Employees Social Security Act (SOCSO) 1969
 Responsible developing skilled manpower resources of high quality through
the development of National Occupational Skills Standards.
 Provide protection to workers who may be involved in an accident at work or
who contract some occupational disease, ensuring workers receive financial
compensation.
 The act covers workers’ benefit such as free medical care, disablement
benefit, dependents' benefit, funeral benefit, etc.
 Those eligible are employees in the private sector who earn less than
RM3000 per month.
 “Once in, always in” principle: if an employee’s wage subsequently raised
beyond the limit, he and his employer are still liable to continue contributing
on a monthly basis to the Organization.

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Departments, statutory bodies and companies
under the ministry of Human Resources
10. Skill Development Fund Corporation.
The Skills Development Fund Act 2004, The National Skills Development
Act 2006
 The purpose of these two laws is to establish a fund for the purpose
of granting loans to trainees who attend approved programmes to
develop and upgrade their skills.
 A council has also been formed to approve National Occupational
Skills Standards (NOSS), which will be used to develop national
curriculum for skills training programmes.
 Trainees who achieve the required competencies will be awarded a
certificate

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Departments, statutory bodies and companies
under the ministry of Human Resources
11. Human Resource Development (HRD) Bhd.
Pembangunan Sumber Manusia Bhd Act 2001
 The purpose of this Act is to ensure employers conduct taining for their
workers so as to upgrade their skills and abilities
 Employers are required to pay a monthly levy into a Fund administered by
HRD Bhd. When they organize training programmes or send their workers
to approved training programmes, they can apply for reimbursement for the
cost incurred.

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Departments, statutory bodies and companies
under the ministry of Human Resources
12. National Institute of Occupational Safety and Health
(NIOSH).
 Launched in1992 to improve the safety and health of workers at
workplaces in Malaysia.
 Serve the critical catalyst in the promotion of occupational safety
and helath
 As a backbone for creation of self-regulating occupational safety
and health culture in Malaysia
.

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Departments, statutory bodies and companies

Employees Provident Fund Board.

The Employees Provident Fund (EPF) Act 1991
 This act ensure workers have funds available on their retirement.
 All employers must register with the Fund and they are responsible
for contributing to the Fund for their employees and to forward to
the Fund the employee’s contribution.
 Currently, the amount to be sent are 12% and 11% respectively for
the employees’ monthly wages (inclusive of fixed allowances,
commissions and bonus payments)
.

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 The End
Thank you

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