Chapter 1 An Overview of Human Resource Management

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The key takeaways are the importance of human resource management, its growth and functions, how it has been impacted by social and economic changes, and its role and structure in organizations.

The main functions of human resource management include attracting, developing and retaining a high-performing workforce through implementing appropriate systems.

The role of human resource management has evolved from a focus on worker exploitation and alienation during the industrial revolution, to emphasizing supervisory training and welfare during the human relations approach, to dealing with increased legislation, organizational growth, diversity and rapid change today.

Chapter

AN OVERVIEW
OF 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.
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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.

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OTHER TITLES FOR HRM


SPECIALISTS

Welfare Officer

Personnel Manager

Human Resource Manager

Human Capital Manager

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HISTORICAL FACTORS
IMPACTING HRM
The Industrial Revolution 1850s1920s

Specialization

Exploitation of workers

Worker alienation

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HISTORICAL FACTORS
IMPACTING HRM (cont.)
Human Relations Approach 1930s1950s

Emphasis on supervisory training

Recreation programmes

Welfare programmes

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HISTORICAL FACTORS
IMPACTING HRM (cont.)
Recent developments 1950s2020

Increased labour legislation

Organizations getting bigger

Increasing workforce diversity

Rapid changes

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CHANGES AFFECTING HRM

Technological changes

Globalization and increased competition

Employee education and expectations

Workforce diversity

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USEFUL MALAYSIAN
STATISTICS
Population:

30 million

Current labour force employed:

13 million

Unemployment rate:

3%

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: Ninth Malaysia Plan: www.kwsp.com.my; www.mef.org.my;


www.statistics.gov.my
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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
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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.

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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

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FUNCTIONS OF THE HR
DEPARTMENT
Employment

Human resource planning

Setting policies and administering disciplinary


action systems

Recruitment

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FUNCTIONS OF THE HR
DEPARTMENT (cont.)

Establishing career movement policies,


including transfers and promotion

Terminating employees

Liaison with Immigration and Labour


Department

Records keeping

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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

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FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Payment/Reward Systems

Developing a wage structure


Preparing information for payroll
Establishing incentive schemes
Advising on benefits

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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

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FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Employee Services/Welfare

Overseeing canteen facilities

Provision of transport
Provision of recreation facilities
Counselling
Managing employee assistance programmes
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FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Productivity Improvement Schemes

Establishing and maintaining quality


improvement initiatives, including ISO
programmes.
Introduction and implementation of suggestion
schemes, team problem-solving activities,
Kaizen tools and other similar programmes.

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FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Industrial Relations

Grievance handling

Relations with trade union representatives

Collective bargaining negotiations

Preparing for contingencies, including strike


action

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ROLE OF THE MINISTRY OF


HUMAN RESOURCES
The Ministry:

sets policies,

prepares draft employment legislation, and

enforces the employment legislation.

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ORGANIZATION CHART
MINISTRY OF HUMAN RESOURCES
Ministry of
Human
Resources

Department
of Labour

Department
of Trade
Union Affairs

Department
of Industrial
Relations

Department
of Occupational
Safety and Health

Department
of Manpower

Department
of Skills
Development
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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

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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

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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

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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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REVIEW

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


Oxford Fajar Sdn. Bhd. (008974-T), 2014

All Rights Reserved

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