Chapter 1 Introduction To Human Resource Management

Chapter
1 INTRODUCTION TO
HUMAN
RESOURCE
MANAGEMENT
PREVIEW
 The importance of human resource management.

 The growth of the human resource function from the mid-19th
century until today.
 The impact of current social, business and economic changes on
human resource management.
 The structure of the human resource function in organizations.
 The requirements for a career in human resource management.
 The functions within the scope of human resource management.
 The role and structure of the Ministry of Human Resources.
 The purpose of each of the most important labour laws.
HRM Principles and Practices Third Edition All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 3
WHAT IS HUMAN RESOURCE
MANAGEMENT?
Human Resource Management is the

development and implementation of systems in
an organization for attracting, developing
and retaining a high-performing workforce.

OTHER TITLES FOR HRM
SPECIALISTS
 Welfare Officer
 Personnel Manager
 Human Resource Manager
 Human Capital Manager

HISTORICAL FACTORS
IMPACTING HRM
The Industrial Revolution 1850s–1920s

 Specialization
 Exploitation of workers
 Worker alienation

HISTORICAL FACTORS
IMPACTING HRM (cont.)
Human Relations Approach 1930s–1950s
 Emphasis on supervisory training

 Recreation programmes
 Welfare programmes

HISTORICAL FACTORS
IMPACTING HRM (cont.)
Recent developments 1950s–2020
 Increased labour legislation

 Organizations getting bigger
 Increasing workforce diversity
 Rapid changes

HRM Activities
 Employment
 Human Resource Development
 Performance Management
 Compensation
 Industrial Relations
 Organizational Safety & Health

CHANGES AFFECTING HRM
 Technological changes
 Globalization and increased competition
 Employee education and expectations
 Workforce diversity

USEFUL MALAYSIAN
STATISTICS
Population: 32 million (2017)

Current labour force employed: 67.8% (15.3 million)
Unemployment rate: 3.4%
Number of foreign workers: 1.4 million
Number of employers registered with
the Employees Provident Fund: 510,000
Life expectancy (Males): 72.3 years
Life expectancy (Females): 77.2 years
Source: www.kwsp.com.my; www.mef.org.my; www.statistics.gov.my

DO ALL ORGANIZATIONS
HAVE AN HRM DEPARTMENT?
NO!
What are the criteria for an organization to have
a dedicated HRM department?
 Ownership of the company
 Philosophy of top management
 Size of the company
 Unionization of the workforce

HUMAN RESOURCE
MANAGEMENT IS A SHARED
FUNCTION
 In organizations with an HRM Department, the
function of HRM is shared between this
department and ALL managers and supervisors.
 Sharing leads to conflict.
 Agreement must be made so that tasks and
duties are clearly assigned.

PERSONAL QUALITIES AND
SKILLS REQUIRED OF HRM
SPECIALISTS
 Communication skills
 Ability to bring about change
 Information technology (IT) savvy
 Numerate and able to analyse data
 Ability to understand the business context
 High ethical standards

FUNCTIONS OF THE HR
DEPARTMENT
Employment
 Human resource planning
 Setting policies and administering disciplinary
action systems. Example: Attendance issues,
ethics, safety & health
 Recruitment

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
 Establishing career movement policies,

including transfers and promotion
 Terminating employees
 Liaison with Immigration and Labour
Department
 Records keeping

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Training and Development

 Holding induction programmes
 Providing skills training
 Organizing supervisory and management
development programmes
 Establishing and administering performance
management and appraisal systems

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Payment/Reward Systems
 Developing a wage structure

 Preparing information for payroll
 Establishing incentive schemes
 Advising on benefits

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Health and Safety

 Organizing safety programmes
 Establishing wellness programmes
 Accident investigation
 Provision of health services
 Establishing programmes to prevent sexual
harassment and violence.
762 accidents case at workplace
reported within 4 months in
Malaysia .

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Employee Services/Welfare
 Overseeing canteen facilities

 Provision of transport
 Provision of recreation facilities
 Counselling
 Managing employee assistance programmes

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Productivity Improvement Schemes

 Establishing and maintaining quality
improvement initiatives, including (International
Organization for Standardization) ISO
programmes.
 Introduction and implementation of suggestion
schemes, team problem-solving activities,
Kaizen tools (continuous improvement, change
for the better) and other similar programmes.
FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Industrial Relations
 Grievance handling
 Relations with trade union representatives
 Collective bargaining negotiations
 Preparing for contingencies, including strike
action

ROLE OF THE MINISTRY OF
HUMAN RESOURCES
The Ministry:
 sets policies,
 prepares draft employment legislation, and
 enforces the employment legislation.

ORGANIZATION CHART
MINISTRY OF HUMAN RESOURCES
Ministry of
Human
Resources
Department Department Department

Department
of Trade of Industrial of Occupational
of Labour
Union Affairs Relations Safety and Health
Department
of Manpower
Department
of Skills
Development

OTHER ORGANIZATIONS OF
RELEVANCE TO HRM
The Employees Social Security Organization
Pembangunan Sumber Manusia Bhd.
National Institute of Occupational Safety and Health
Skill Development (Loan) Fund Corporation
The Employees Provident Fund

THE EMPLOYMENT LAWS
 The Employment Act 1955

 The Sabah Labour Ordinance, updated 2005
 The Sarawak Labour Ordinance, updated 2005
 The National Wages Consultative Council Act
2011
 The Employees Provident Fund (EPF) Act 1991

THE EMPLOYMENT LAWS
(cont.)
 The Employees Social Security Act (SOCSO)

1969
 The Occupational Safety and Health Act
(OSHA) 1994
 The Factories and Machinery Act 1967
 The Children and Young Persons (Employment)
Act 1966
 The Employment (Restriction) Act 1968

THE EMPLOYMENT LAWS
(cont.)
 The Trade Unions Act 1959

 The Industrial Relations Act 1967
 Pembangunan Sumber Manusia Bhd. Act 2001
 The Skills Development Fund Act 2004
 The National Skills Development Act 2006
 The Minimum Retirement Age Act 2012


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Chapter

 The importance of human resource management.

HRM Principles and Practices Third Edition All Rights Reserved

Human Resource Management is the

HRM Principles and Practices Third Edition All Rights Reserved

HRM Principles and Practices Third Edition All Rights Reserved

The Industrial Revolution 1850s–1920s

HRM Principles and Practices Third Edition All Rights Reserved

Human Relations Approach 1930s–1950s

 Emphasis on supervisory training

HRM Principles and Practices Third Edition All Rights Reserved

Recent developments 1950s–2020

 Increased labour legislation

HRM Principles and Practices Third Edition All Rights Reserved

HRM Principles and Practices Third Edition All Rights Reserved

HRM Principles and Practices Third Edition All Rights Reserved

Population: 32 million (2017)

Source: www.kwsp.com.my; www.mef.org.my; www.statistics.gov.my

HRM Principles and Practices Third Edition All Rights Reserved

HRM Principles and Practices Third Edition All Rights Reserved

HRM Principles and Practices Third Edition All Rights Reserved

HRM Principles and Practices Third Edition All Rights Reserved

HRM Principles and Practices Third Edition All Rights Reserved

 Establishing career movement policies,

HRM Principles and Practices Third Edition All Rights Reserved

Training and Development

HRM Principles and Practices Third Edition All Rights Reserved

 Developing a wage structure

HRM Principles and Practices Third Edition All Rights Reserved

Health and Safety

HRM Principles and Practices Third Edition All Rights Reserved

 Overseeing canteen facilities

HRM Principles and Practices Third Edition All Rights Reserved

Productivity Improvement Schemes

HRM Principles and Practices Third Edition All Rights Reserved

HRM Principles and Practices Third Edition All Rights Reserved

Department Department Department

HRM Principles and Practices Third Edition All Rights Reserved

The Employees Social Security Organization

Pembangunan Sumber Manusia Bhd.

National Institute of Occupational Safety and Health

Skill Development (Loan) Fund Corporation

The Employees Provident Fund

HRM Principles and Practices Third Edition All Rights Reserved

 The Employment Act 1955

HRM Principles and Practices Third Edition All Rights Reserved

 The Employees Social Security Act (SOCSO)

HRM Principles and Practices Third Edition All Rights Reserved

 The Trade Unions Act 1959

HRM Principles and Practices Third Edition All Rights Reserved

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