HRM An Overview Chapter 01

HUMAN RESOURCE MANAGEMENT
PHR2143
CHAPTER 01
HUMAN RESOURCE MANAGEMENT AN
OVERVIEW
By
WAN HIZAM BIN WAN HASSAN
BUSINESS MANAGEMENT LECTURER
Learning Objectives
 Define HRM
 Explain the importance of HRM
 Identify and explain HRM Functions
 Understand the roles of HR Manager
Human Resource Management : A
Perspective
 Let us imagine, an organization without people?
Can this happen?
 Obviously, without people, an organization cannot
exist.
 There are just no organizations without people.
People are the lifeblood of every organization.
Human Resource Management : A
Perspective
 Successful organizations are good at bringing
together different kinds of people to achieve a
common purpose.
 This leads us to the essence of HRM. (Human
Resource Management)
What is Human Resource
Management?
 How effective employees contribute to
organization goals depends on the ability of the
HR managers.
 HR people have to develop an organization in
which the individual can grow and develop.
 You will be in this position one day, thus it is
important for you to know the meaning of
HRM.
Human Resource Management
 What is Human Resource Management?
◦ Human resource management is the utilization of
individuals or a firm’s human resources to achieve
organizational objectives. (Mondy)
◦ Utilization refers to how we make full us of the labour that

we have in relation to their skills, knowledge and abilities.
◦ Resources here refer to especially the human resources,

although we are also dealing with other resources such as
money, raw materials,, information and equipment.
Why HRM is important?
 Accommodating worker’s needs
◦ Flexible working hours, parental leave, child-
care, job sharing etc.
 Increase complexity of a manager’s job
◦ HR assist managers in matters concerning
recruitment, selection, performance appraisal,
training and etc.
 Increasing legal complexity
◦ Labour & employment laws
Why HRM is important?
 Human Resource Information Systems
◦ Computerized systems for making HR
decisions (specialized expertise)
 Cost of human resource
◦ HR activities become increasingly important
because of the high cost associated with
employee problems such as absenteeism,
turnover, tardiness, sabotage etc.
Human Resource Management
Function
 There are five (5) functions of HRM
Human Resource
Development
Compensation
Employee and & Benefits
Labor Relations
Staffing Safety & Health

Staffing
 Staffing is the process through which an
organization ensures that it always has the proper
number of employees with the appropriate skills in
the right job, at the right time, to achieve
organizational objectives.
 Staffing involves:
Job Analysis
Human Resource Planning
Recruitment
Selection
Staffing
 Job analysis
◦ Refers to the study of jobs within an organization. It is the
process where the management systematically studies the
task, duties and responsibilities of the jobs and the kinds of
people who should be hired for these jobs.
◦ Job analysis give answers to several questions:

? How much time is taken to complete important task?
? Where is the job to be accomplished?
? How does the worker do the job?
? Why is the job done?
? What qualifications are needed to do the job?
? How can a job be designed so that employee performance
can be improved?
Staffing
 Human Resource Planning
◦ Is a systematic process of matching the internal and
external supply of people (HR Supply) with job
openings (HR Demand) anticipated in the
organization over a specified period of time.
 Recruitment
◦ Is the process of attracting individuals on a timely
basis, in sufficient numbers with appropriate
qualifications to apply for jobs with an organization.
Staffing
 Selection
◦ Selection is the process of choosing from a
group applicant the individual best suited for a
particular position and the organization.
Human Resource Development
 Human resource development is a major function
of HRM consists of several activities such as:
◦ Training & Development
 Is a formal approach used by organization to ensure
that people with the proper qualifications and
experiences are available when needed.
◦ Career Planning
 Is an ongoing process whereby an individual sets
career goals and identify the way to achieve them.
Human Resource Development
 Organization Development
◦ Is a planned process of improving an organization by
developing it’s structures, systems and processes.
 Performance Appraisal
◦ Is a formal system of review and evaluation of
individual or team task performance
Compensation & Benefits
 Compensation and benefits includes the
total of all rewards provided employees in
return for their service.
◦ Types of compensation
 Financial compensation
 Direct financial – wages, salaries, commission and bonuses
 Indirect financial (benefits) – vacation, sick leave, holidays,
insurance and medical benefits
 Nonfinancial compensation
 Non monetary reward such as safe workplace, promotion,
enjoyment of work perform.
Safety and Health
 Safety involves protecting employees from injuries
caused by work-related accidents.
 Health on the other hand, refers to the employee’s
freedom from illness and general physical and
mental well-being.
 We all know for a fact that employee who work in
a safe environment and enjoy good health are
likely to be more productive.
Employee and Labor Relations
 HRM function that involve labor union
that represents a firm’s employees that
involve in handling collective bargaining
negotiation.
 Collective bargaining is a process
whereby employers and employees
negotiate over the terms and conditions
of employment.
How HRM practiced in the real
world?
 The roles are :
 1. Human Resource Professional – individual who
normally acts in an advisory or staff capacity, working
with other professionals to help them deal with human
resource matters.
 2. HR Outsourcing – is the process of hiring external
HR professionals to do the HR work that was
previously done internally. Eg: discreet services, Multi-
process services and total HR outsourcing
world?
 3. HR Shared Service Center –
◦ a) A center that takes routine, transaction-based activities into
one place.
◦ b) Fewer HR professionals are needed when shared service
centers are used, resulting in significant cost savings.
◦ c) Most common HR function:
 1. Pension Administration
 2. Payroll
 3. Relocation Assistance
 4. Recruitment Support
 5. Global Training and Development
 6. Sucession Planning
 7. Talent Retention
How HRM practiced in the real world?
 4. Professional Employer Organization (Employee Leasing)
 - A company that leases employee to other business
 - Company releases its employees who are then hired
by PEO
 - PEO pays the employees
 - PEO is the employees’ legal employer and has the
rights to hire, fire, discipline and reassign an
employee.
 - Charges a fee of from 1 to 4 percent of the
customer’s gross wages.
 - Services - HR consultation and advice, workers
compensation of certificate of insurance, employee
benefits such as multiple health plan options eg. dental
and payroll & tax services eg. processing
world?
 5. Line Managers
 Involved with the human resources by nature of

their jobs
 Line managers are now performing some duties

typically done by HR.
world?
Roles of HR Manager
 Advisory Role
◦ Consultant to advise line managers related to
HR functions
 Service Role
◦ To provide record keeping on HR matters
 Control Role
◦ To monitor rules and regulations activities
(company law & regulations)
Human Resource Designations
 3 characteristics of Human Resource
Designation :
 HR Executives – Performs one or more HR function, a
top-level manager and reports directly to CEO or heae
of major division
 HR Generalist – Often an executive, performs tasks in
various HR related area and involved in several, or all of
the five HRM functions.
 HR Specialist – Maybe an HR executive manager, or
non-manager, typically concerned with only one of the
five functional areas.
Exercises
 1. List five (5) functions of Human
Resource Management.
 2. Identify three (3) roles of HR Manager.
 3. Named four (4) activities involved

under staffing.
THANK YOU

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HUMAN RESOURCE MANAGEMENT

◦ Utilization refers to how we make full us of the labour that

◦ Resources here refer to especially the human resources,

Staffing Safety & Health

◦ Job analysis give answers to several questions:

 Involved with the human resources by nature of

 Line managers are now performing some duties

 2. Identify three (3) roles of HR Manager.

 3. Named four (4) activities involved

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