3.topic 1 - Intro HRM

Topic
 Introduction
to Human
1 Resource
Management
LEARNING OUTCOMES
By the end of this topic, you should be able to do the following:
1. Define human resource management.
2. Explain the importance of human resource management.
3. Discuss the functions of human resource management.
4. Examine challenges faced by human resource management.
5. Evaluate issues related to human resource management.
 INTRODUCTION
MalaysiaÊs fourth and seventh Prime Minister Tun Dr Mahathir Mohamad
(1981ă2003; 2018ă2020), once said the following:
From the amazing economic experience two decades ago, among countries that
before had limited „natural resources‰, it is clear that the most important
resources to a country are talent, skills, creativity, and the effort of its people.
Brain power is a source that is much more valuable than natural resources.
People are our main resources. Without doubt, in the 1990s and beyond,
Malaysia must give its utmost attention towards the growth of this very crucial
resource.
(Mahathir, 1991)
Copyright © Open University Malaysia (OUM)

2  TOPIC 1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
At one time, many observers were of the opinion that machines would take over
the functions and roles of employees in an organisation. The same opinion persists
in the era of Industry Revolution 4.0. However, the opposite has happened. Like
what Tun Dr Mahathir said, human resources are becoming more important in
todayÊs organisations, especially in knowledge-based industries such as software
and information services.
The success or failure of an organisation most of the time relies on the knowledge,
skills, and ability of its employees. Many experts feel that an organisation is able
to achieve greater advantage if it has valuable human resources which are difficult
to acquire and imitate and are well-managed.
Human resource management is one of the most important management functions

in an organisation as it can obtain and develop dynamic and qualified employees.
1.1 DEFINITION OF HUMAN RESOURCE

MANAGEMENT
Human resource management consists of philosophies, policies, programmes,
practices, and decisions related to employee management in an organisation. Its
aim is to simplify and increase the usage of employees effectively in order to
achieve organisational and employee goals.
Human resource management focuses on managing the workforce in order to

take care of employee and employer relations, especially in using employees
productively to reach the organisationÊs strategic business objectives and fulfill
employee needs.
In the past, human resource management was also known as personnel

management. However, the term was changed to human resource management in
the 1970s, which is widely used today. This development is in line with changes at
the international level, which recognises human resources as a major source in an
organisation. Nevertheless, there are still groups that refer to human resource
management as personnel management.

TOPIC 1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT  3
1.1.1 Differences between Personnel Management

and Human Resource Management
There are some who are of the opinion that personnel management and human
resource management are the same. They view human resource management as a
modern version of personnel management due to technological changes in the
current work environment and a shift in social values.
There are also other groups who think that personnel management and human
resource management are different in terms of their roles, scope, and actions.
Human resource management portrays a much wider perspective, which includes:
 issues pertaining to employee safety and health;
 industrial relations;
 stress in the workplace; and
 employee satisfaction in increasing an organisationÊs effectiveness.
Human resource management recognises the importance of manpower and sees

employees as valuable assets to an organisation. Employees are complex resources
that can be driven and developed progressively for the benefit of the organisation
and the employees themselves. Human resource management looks at employee
needs in the perspective of the organisation and takes into account external
influences in the business environment. It also acts as a change agent for an
organisation.
Personnel management is said to be more operational in nature, and it stresses on

the micro level as opposed to human resource management. It focuses solely on
employee administration. It provides support services to maintain employees in
the present organisational structure by:
 determining the sufficient number of employees;
 assigning suitable tasks and responsibilities to employees;
 hiring employees;

 paying employees;
 managing matters concerning promotions; and
 monitoring employee discipline.
Personnel management does not contribute to the organisationÊs strategic

planning. It is more reactive in nature and ensures the everlasting status quo in
an organisation. Table 1.1 simplifies the differences between human resource
management and personnel management.
Table 1.1: Differences between Human Resource

Management and Personnel Management
Human Resource Management Personnel Management
Handles macro issues Handles micro issues
Planned and long term Ad hoc and short term
Proactive Reactive
Involves ongoing strategies to manage and More administrative in nature

develop an organisationÊs workforce
Reports to the Chief Executive Officer Reports to the line manager
Plays a role in decision making Plays no role in decision making
Acts as a change catalyst Maintains status quo
Facilitates an organisationÊs positive Does not take into account the effects of
culture culture
Adapted from Yong (1996)
EXERCISE 1.1
1. Give the definition of human resource management.
2. What are the differences between human resource management and

personnel management?

1.2 IMPORTANCE OF HUMAN RESOURCE

MANAGEMENT
Human resources are an important resource for an organisation as technological
resources are limited. Therefore, human resource management is essential so as
to manage and conduct employees effectively in order to help the organisation
achieve competitive advantage.
Human resource management also plays an important role in identifying human

resource problems in a firm and providing solutions to the firm. Apart from that,
it is able to influence and increase employeesÊ commitment and motivate them
at the same time. This will increase the organisationÊs performance through an
increase of employeesÊ productivity.
At one time, human resource management was not related to an organisationÊs

profit. Therefore, it did not play an important role in the organisationÊs strategic
planning. Now, human resource management is starting to gain more attention in
the development of strategic planning for most organisations, due to the effects
of human recognition in an organisation. Furthermore, the main human resource
management strategy is integrated in the organisational strategy.
1.2.1 Roles of Human Resource Management

Department
Human resource management strategy views organisational strategy for
employees, profit, and effectiveness as a whole. Effective human resource
management programmes and activities ensure an effective organisation; these
help an organisation to achieve competitive advantage.
Human resource management is also responsible for managing any changes that
happen in an organisation due to merging activities, business downsizing, and
various workforce cultures. Figure 1.1 shows a few of the main roles of the human
resource management department.
Figure 1.1: Roles of Human Resource Management Department

(a) Planner
Plans matters related to staffing, such as planning manpower needs,
recruitment, and employee selection.
(b) Facilitator
Prepares training opportunities and career development for employees and
conducts orientation sessions for new employees.
(c) Coordinator
Coordinates matters related to employee health and safety, amenities, and
benefits.
(d) Auditor
Oversees employee performance and controls compensation offers such as
rewards and benefits to employees and evaluates accident and injury reports.
(e) Mediator
The human resource management division acts as a middleman in matters
pertaining to employee disciplinary issues, consultation with workerÊs
unions, conflict handling, and employee dissatisfaction.
Human resource management is essential to ensure the organisationÊs

perpetuation and effectiveness. Some of human resource managementÊs
contributions in achieving an organisationÊs effectiveness are as follows:
 helping the organisation achieve its targets;
 fully utilising the skills and abilities of the workforce;
 providing the organisation with trained and motivated employees;
 increasing employeesÊ job satisfaction;
 developing and maintaining the quality of employee work environment;
 delivering human resource management policy to every employee;
 helping to maintain social responsibility and ethical conduct; and
 managing changes to benefit employees and the organisation.

ACTIVITY 1.1
Assuming that you are the head of the human resource department in
your organisation, what do you think are the important roles of your
department? Share your thoughts in the myINSPIRE forum.
1.2.2 Human Resource Management in Malaysia

Since the 1980s, management teams in Malaysian firms have shown an increase
in the usage of the term „human resource management‰ to replace „personnel
management‰, in line with the development of human resource management at
the international level. Malaysian authorities embraced this change by replacing
the Ministry of Labour with the Ministry of Human Resources in 1990.
In order to achieve Vision 2020 and ensure that Malaysia became a developed
country by 2020, various efforts were planned to develop human capital resources.
Among them are:
 rearranging the education system;
 allocating the Human Resource Development Fund under the Human

Resource Development Act 1992;
 encouraging the involvement of public and private sectors in contributing to

education and training; and
 encouraging continuous learning.
In Malaysia, human resource management is a field that is expanding swiftly,

especially in training and development. This is a result of the governmentÊs efforts
to encourage training and development, particularly in the manufacturing sector.
A Human Resource Development Fund was created under the Human Resource
Development Act 1992 by collecting levy from registered employers. These
employers then utilise the fund to train and retrain their employees.

There are a few more Acts that influence human resource management practices
in Malaysia. Among these are Employment Act 1955, Industrial Relations Act 1967,
and Occupational Safety and Health Act 1994. All the Acts related to the human
resource management environment in Malaysia will be discussed further in
Topic 2.
1.3 FUNCTIONS OF HUMAN RESOURCE

MANAGEMENT
Human resource management functions as a reference towards the
implementation of task and responsibility of providing and coordinating human
resources in an organisation. Usually, most human resource management
functions of a small organisation are carried out by the owner or the operations
manager, apart from other business activities.
A medium-sized organisation usually employs a human resource manager or

personnel to conduct all matters pertaining to human resource. Most of the time,
the human resource manager does not specialise in any human resource functions.
On the other hand, a larger organisation will have its own human resource
management department which is responsible for carrying out all the functions of
human resources. Each human resource function is managed by human resource
experts specialising in a field.
Human resource management functions are not only about keeping records and
updating files. They involve a holistic and integrated approach that includes
various activities designed to contribute to the effectiveness of an organisation.
Figure 1.2 shows the main functions of human resource management in an
organisation.

Figure 1.2: Functions of Human Resource Management
(a) Staffing
Staffing involves human resource planning process, job analysis, recruitment
and selection of manpower.
 Human Resource Planning

Human resource planning is a forecasting process or a requirement
needed by an organisation to achieve its objectives, aside from
developing and implementing activities to fulfil organisational needs.

It is used to ensure that the organisation has ample workforce and

suitable employees at the right time and place. Human resource planning
is important so that there will not be any surplus or insufficient
manpower. This is also to ensure that employees are able to carry out
their duties efficiently.
 Job Analysis
The human resource management department conducts job analysis
to develop specific requirements for a job in an organisation. It is a
process of gathering information on a particular job by identifying the
responsibilities and duties related to the post. Information from the
job analysis will be used to develop jobs, prepare job details, and job
specifications.
 Recruitment
Recruitment is a process of identifying and encouraging interested and
potential job candidates to apply for available posts in an organisation.
Task details and job specifications provide information on candidatesÊ
eligibility and explanation on job requirements.
 Selection
Selection is a process of identifying the most suitable candidate to fill a
vacant post whereby the candidate is chosen from a group of applicants
obtained from the recruitment process. Some of the procedures usually
practised in the selection process include checking the application form
and résumé (curriculum vitae), checking the candidateÊs background,
conducting interviews, and conducting selective tests such as physical
and personality tests.
(b) Human Resource Development

Human resource development is a process aimed at producing employees
who are well informed, skilful, and understand their goals as well as the
organisationÊs goals. In addition, human resource development is designed
to help employees contribute positively to the organisation through excellent
and satisfactory work performance.
Activities in human resource development include conducting orientations

for new employees, and identifying, designing, and carrying out training
programmes to increase employeesÊ skills and abilities. These are also aimed
at producing a culture that appreciates and rewards continuous learning
efforts.

Employee performance is evaluated after a training programme to monitor

the effectiveness of the training. Human resource development also stresses
on employeesÊ career development in the organisation by equipping them
with new skills and abilities which are needed in their job scope, as well as
helping them to develop their own career plans.
(c) Compensation and Benefits

Compensation and benefits are part of human resource management
functions which are related to rewards, whether they are financial rewards
or non-financial rewards. They are given to employees as part of work
relations. The human resource management department is responsible for
designing and implementing a compensation and benefits system for every
employee. Apart from that, it needs to ensure that the compensation and
benefits system is fair and consistent.
(d) Safety and Health

The human resource management team needs to be sensitive towards
creating a work environment that can prevent any safety and health hazards.
Hazard refers to a potential circumstance which can cause injury to an
employee, therefore lessening his or her ability. Thus, the human resource
management department is responsible for designing and implementing
health and safety programmes to ensure the safety of employees.
(e) Work Relations

Work relations is also known as industrial relations or business relations.
It refers to the relationship between employer and employee or workersÊ
union that represents employees. A harmonious employer and employee
relationship ensures the stability and strength of an organisation. The human
resource management department needs to act as a medium between
the organisation and the workersÊ union. A workersÊ union represents
employees in matters regarding collective consultation, disciplinary conduct,
and employee complaints.
EXERCISE 1.2
List five main roles of the human resource management department.

Elaborate briefly on each role and relate it to your own working
environment.

1.4 CHALLENGES OF HUMAN RESOURCE

MANAGEMENT
We often read in the newspapers about sexual harassment, misconduct, and
misuse of power at the workplace. There are many challenges faced by human
resource management nowadays. These include:
Ć globalisation
Ć challenges in technology
Ć managing change
Ć human resource development
Ć market reaction
Ć cost reduction
Ć economic climate
Ć legal system
(a) Globalisation
Mergers, takeovers, and competition among international industries and
businesses are increasing. To remain and compete in the market, more firms
are starting to explore the global market. Indirectly, this causes them to face
issues such as cultural, legal, and business practice differences.
An organisation has to identify a human resource manager who is able to:
 perform his duties in a foreign country;
 design training programmes and development opportunities to increase

his understanding of foreign work practice and culture; and
 make changes to the compensation plan to ensure a fair and suitable

payment scheme cutting across different geographical areas and costs of
living.

ACTIVITY 1.2
Read the following journal article and discuss the impact of globalisation
on human resource management and employment relations. The journal
article can be found in OUMÊs TSDAS Digital Library.
Hunter, L. W., & Katz, H. C. (2012). The impact of globalization in

human resource management and employment relations in the US
automobile and banking industries. The International Journal of
Human Resource Management, 23(10), 1983ă1988.
(b) Challenges in Technology

Progress in technology has done a lot to influence human resource
management. From manual employees to knowledgeable employees,
innovation in technology has caused a sudden change in form, structure, and
employment needs. Knowledgeable employees need to be equipped with
skills to enable them to make plans and decisions, and identify problems and
solve them. In many cases, employees need to be retrained to enable them to
carry out responsibilities and new roles. Therefore, an organisation needs to
prepare training and development programmes to help employees increase
their skills in order to fulfil the demands of a knowledgeable employee.
Aside from that, the use of human resource information technology has
influenced a lot of todayÊs human resource management practices, such as:
 providing up-to-date information to aid the human resource

management department in forecasting, overseeing and making
decisions; and
 changing the method of information gathering on employment; speeding

up the processing of information and increasing internal and external
communication processes.
(c) Managing Change

Technology and globalisation are two main factors that force change to
happen in an organisation. An organisation that always maintains its status
quo will not be able to compete in a fast-developing and competitive market.
Ordinarily, an organisation has to adjust the way it operates to maintain
the effectiveness of its business. This can be done through total quality
programmes, downsizing, re-engineering, outsourcing, and mergers.

Changes can happen reactively or proactively:
 A reactive change is due to external influences.
 A proactive change is the managerÊs initiative to grab available

opportunities, especially in a fast-changing industry, such as the
technology industry.
However, changes do not happen spontaneously. This is because most of

us are resistant to changes. Therefore, the human resource management
department plays a role in helping the change process in the organisation.
(d) Human Resource Development

An organisation needs to manage its human resources well if it intends to
compete in the global market. Human resources that have economic value
by way of knowledge, skills, and ability have a huge impact on the
organisation. In order to form a valuable team, an organisation needs to
strategise to ensure its resources are:
 knowledgeable
 skilful
 experienced
Staffing programmes must identify, recruit, and select quality candidates.

Training programmes complement the staffing process to increase
employeesÊ skills. In addition, employees need their own career development
opportunities. Therefore, the human resource management department
needs to arrange suitable programmes to develop its human resources, as
well as to ensure that employeesÊ duties and needs are flexible, thus allowing
for a continuous learning process and employee development to happen.
(e) Market Reaction

Fulfilling customersÊ expectations and needs is important for an organisation
to be able to compete in local and foreign markets. Some of the approaches
often used to respond to the markets are:
 implementing a total quality management programme; and
 a re-engineering process.

Both approaches have direct implications for human resources. To ensure the
effectiveness of the programmes, the management team needs to make some
drastic changes to its human resource management programmes to focus on
issues such as:
 employee motivation
 changes to organisational culture
 employee education
(f) Cost Reduction

Some important elements to enable an organisation to have a competitive
advantage and to maximise its effectiveness are cost reduction and increase
in productivity. Human resource cost is one of the biggest expenditure
components in an organisation, especially organisations that specialise in
knowledge and services.
Ordinarily, organisations will have to rearrange their firms to reduce labour

costs through activities such as:
 downsizing
 outsourcing
 mergers
Most of the time, these actions cause employee surplus, which then forces
the management to reduce the number of employees through the process
of laying off staff. This issue needs to be handled wisely and fairly by
the human resource management team to avoid problems and employee
dissatisfaction that might affect the organisationÊs performance.
(g) Economic Climate

The economic environment will influence the financial standing of an
organisation, and the organisation must change its business strategy to
remain or compete in the market. Consequently, an organisationÊs human
resource strategy must also change to be in line with the business strategy,
especially human resource planning.
In the event of economic growth, demand for labour force will increase
due to increase in production. In these circumstances, organisations will
experience a situation whereby the labour market is limited.

On the other hand, when an economic depression occurs, the organisationÊs

business is affected and the number of employees needs to be reduced
through approaches such as voluntary or forced termination and early
retirement.
(h) Legal System

Organisations must be sensitive to the legal system of the place where they
operate. Any changes and job implementation must be given attention in
order to avoid legal action. In Malaysia, there are a few Acts related to the
work environment such as Employment Act 1955, Occupational Safety and
Health Act 1994, and Industrial Relations Act 1967.
ACTIVITY 1.3
Choose one of the eight human resource management challenges. Obtain

information from the human resource manager in your workplace about
the challenge you have chosen. Share your research in myINSPIRE.
1.5 HUMAN RESOURCE MANAGEMENT

ISSUES
Apart from facing challenges in managing human resources as discussed in the
previous subtopic, organisations must also be aware of issues related to human
resource management such as:
 diversity in the workforce
 employee age distribution
 women and dual-income families
 increase in education level
 employee rights

 personal issues
 attitude change towards work
 balance between career and family
(a) Diversity in the Workforce

This strategy can have a distinct effect on an organisation. An organisation
which practises this particular strategy is usually seen as one that performs
its social responsibility and thus acquires satisfying returns on the products
and services it offers to its customers. However, workforce diversity does
not affect human resource management in terms of strategic planning,
recruitment, training, and health. There is no ideal method or formula for
managing diversity in the workforce.
(b) Employee Age Distribution

Fluctuation of birth rates causes a change in the employee age distribution
pattern in the labour market. For example, in the United States, the number
of employees aged 55 and above who are supposed to retire is increasing and
is believed to have reached 23.9% in 2018. In the same year, the number of
younger workers aged 16 to 24 was expected to slip to 12.7%. This would
have caused a gap in the labour force for that particular year. An unbalanced
employee age distribution in the labour market complicates human resource
management processes, especially human resource planning, recruitment,
training, and career development.
(c) Women and Dual-income Families

WomenÊs involvement in the working world has shown a sharp increase.
Statistics have shown that two-thirds of married couples come from dual-
income groups. This phenomenon has a big implication for working couples
and employers in the aspects of recruitment and placement. One spouseÊs
career change will affect the other spouseÊs career. For example, if a husband
is transferred to another place due to a promotion, his wife has to decide
whether to follow him or remain at her workplace, thus resulting in them
living apart.

In addition, many working women have toddlers and need the services
of a nursery. Employers, especially the human resource management
department, need to prepare suitable amenities to fulfil their needs and
arrange for:
 flexible working hours;
 handling of sexual harassment issues; and
 equal pay without gender discrimination.
(d) Increase in Education Level

The education level of the labour force has shown a sharp increase with
the presence of an improved education system. Highly educated employees
often have high hopes for their employment and seek challenging and
interesting careers. Therefore, the management team has to carry out
continuous evaluation to ensure that employeesÊ talents and abilities are
fully utilised, the jobs offered are challenging, and employees are given the
opportunity to develop their careers.
(e) Employee Rights

Authorities must give serious attention to employee rights. A number of
rules and laws have been enacted to ensure that the rights of employees are
looked after, such as:
 Employment Act 1955
 Employee Social Security Act 1969
 Occupational Safety and Health Act 1994
As a result, the human resource management team needs to be familiar with

these rules and laws, and keep abreast of their development to protect the
organisation from any legal action.

(f) Personal Issues

Personal issues are starting to get attention from employees and employers.
It is the responsibility of the human resource management department
manager and staff to manage all employee information well so that
employeesÊ personal information is not circulated and misused by
irresponsible people.
(g) Attitude Change Towards Work

Employees nowadays value lifestyle satisfaction which can be achieved by
balancing challenges with rewards rather than the relationship between
work and lifestyle. Employees are also more attracted to interesting jobs, and
opportunities to develop themselves through the tasks offered to them. This
change has prompted human resource management to come up with ways
to manage and motivate employees. Consequently, the roles of human
resource management are becoming more complex as opposed to previous
situations whereby employees were only concerned about the economic
value of their jobs to support their families.
(h) Balance between Career and Family

Finding a balance between career and family is an issue faced by employees
nowadays. Some are no longer willing to work overtime even though they
are offered higher pay because they would rather spend time with their
family. As a result, family-friendly concepts have been introduced by many
organisations.
Among the family-friendly programmes introduced are part-time jobs, work

sharing, maternity leave, flexible working hours, child nursing leave, and
telecommunication services. However, these programmes have not been
well received by single employees as they do not get to enjoy any of the perks
and benefits of the programmes.
ACTIVITY 1.4
If you are a human resource manager and most of your employees are
women, which issue would be important for you to consider? Why?
Discuss with your coursemates on myINSPIRE.

EXERCISE 1.3
Multiple Choice Questions
1. In order to enable an organisation to compete in the

21st century, human resource management needs to focus on
_____________.
A. developing production planning
B. rationalising scientific management principles
C. using the Howthorne test
D. developing a skilful and flexible workforce
2. Below are the main activities of the human resource management

department EXCEPT _____________.
A. directing the operations manager
B. providing services, advice, and counselling
C. developing and implementing organisational policies
D. administering recruitment and training programmes
3. The key to quality products and services for an organisation

depends on how it manages _____________.
A. budgets
B. projects
C. labour unions
D. employees
4. The human resources of an organisation can be used to compete if

the resources are _____________.
A. paid special attention
B. well looked after
C. well managed
D. given attractive rewards
5. Which of the following is NOT one of the main technological effects

on human resource management?
A. Technology has changed the methods used to gather
information on employee transfer.
B. Technology has sped up employee intake data processing.
C. Technology has eliminated supervising roles in employee
management.
D. Technology has improved internal and external
communication processes.

Essay Questions
1. List six challenges often faced by a human resource management

department in achieving competitive advantage.
2. List four programmes that can be introduced by an organisation

to help its employees reduce conflict between career and family
responsibilities.
3. Employees nowadays have shown an attitude change towards

employment. Briefly discuss this issue.
4. Human resource management activities are important to ensure

the effectiveness of an organisation. List five human resource
management contributions in helping to achieve an organisationÊs
effectiveness.
 Uncertain economic circumstances and shift from an industrial community to

an informative community have made the importance of human resources in
an organisation more distinct.
 Organisations need to update their human resource management strategy to

ensure their business effectiveness.
 An organisation with an effective human resource management could merge

its diverse and different human resources to achieve its general target, and
at the same time, tackle the challenges and issues of human resource
management efficiently and effectively.
Compensation and benefits Safety and health

Human resource management Staffing
Personnel management Work relations

Mahathir Mohamad (1991, February 28). Vision 2020: The way forward
[Conference presentation]. Malaysian Business Council Meeting, Kuala
Lumpur, Malaysia.
Yong, A. K. B. (1996). Malaysian human resource management. Malaysian Institute

of Management.

3.topic 1 - Intro HRM

Uploaded by

Copyright:

Available Formats

3.topic 1 - Intro HRM

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

3.topic 1 - Intro HRM

Uploaded by

Copyright:

Available Formats

Topic

Copyright © Open University Malaysia (OUM)

Human resource management is one of the most important management functions

1.1 DEFINITION OF HUMAN RESOURCE

Human resource management focuses on managing the workforce in order to

In the past, human resource management was also known as personnel

Copyright © Open University Malaysia (OUM)

1.1.1 Differences between Personnel Management

 issues pertaining to employee safety and health;

 stress in the workplace; and

 employee satisfaction in increasing an organisationÊs effectiveness.

Human resource management recognises the importance of manpower and sees

Personnel management is said to be more operational in nature, and it stresses on

 determining the sufficient number of employees;

 assigning suitable tasks and responsibilities to employees;

Copyright © Open University Malaysia (OUM)

 managing matters concerning promotions; and

 monitoring employee discipline.

Personnel management does not contribute to the organisationÊs strategic

Table 1.1: Differences between Human Resource

Human Resource Management Personnel Management

Handles macro issues Handles micro issues

Planned and long term Ad hoc and short term

Involves ongoing strategies to manage and More administrative in nature

Reports to the Chief Executive Officer Reports to the line manager

Plays a role in decision making Plays no role in decision making

Acts as a change catalyst Maintains status quo

Adapted from Yong (1996)

1. Give the definition of human resource management.

2. What are the differences between human resource management and

Copyright © Open University Malaysia (OUM)

1.2 IMPORTANCE OF HUMAN RESOURCE

Human resource management also plays an important role in identifying human

At one time, human resource management was not related to an organisationÊs

1.2.1 Roles of Human Resource Management

Figure 1.1: Roles of Human Resource Management Department

Copyright © Open University Malaysia (OUM)

Human resource management is essential to ensure the organisationÊs

 helping the organisation achieve its targets;

 fully utilising the skills and abilities of the workforce;

 providing the organisation with trained and motivated employees;

 increasing employeesÊ job satisfaction;

 developing and maintaining the quality of employee work environment;

 delivering human resource management policy to every employee;

 helping to maintain social responsibility and ethical conduct; and

 managing changes to benefit employees and the organisation.

Copyright © Open University Malaysia (OUM)

1.2.2 Human Resource Management in Malaysia

 rearranging the education system;

 allocating the Human Resource Development Fund under the Human

 encouraging the involvement of public and private sectors in contributing to

 encouraging continuous learning.

In Malaysia, human resource management is a field that is expanding swiftly,

Copyright © Open University Malaysia (OUM)

1.3 FUNCTIONS OF HUMAN RESOURCE

A medium-sized organisation usually employs a human resource manager or

Copyright © Open University Malaysia (OUM)

Figure 1.2: Functions of Human Resource Management

 Human Resource Planning