Week 1 - Ch01

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
Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 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
Why Is Human Resource Management
Important to All Managers?
• No manager wants to:

o Hire the wrong person for the job
o Experience high turnover
o Have your people not doing their best
• You May Spend Some Time as an HR
Manager
Changes Affecting HRM
 Technological changes
 Globalization and increased competition
 Employee education and expectations
 Workforce diversity
 Economic downturn
Do All Organizations Have a HR
Department?
NO!
What are the criteria for an organization to have
a dedicated HR 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 a HR Department, the

function of HRM is shared between this
department and all managers and supervisors.
 Sharing leads to conflict.
 Agreements 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
 Recruitment
(cont.)
 Establishing career movement policies,

including transfers and promotion
 Terminating employees
 Liaison with Immigration and Labour
Department
 Records keeping
(cont.)
Training and Development

 Holding induction programmes
 Providing skills training
 Organizing supervisory and management
development programmes
 Establishing and administering performance
management and appraisal systems
(cont.)
Payment/Reward Systems
 Developing a wage structure

 Preparing information for payroll
 Establishing incentive schemes
 Advising on benefits
(cont.)
Health and Safety

 Organizing safety programmes
 Establishing wellness programmes
 Accident investigation
 Provision of health services
 Establishing programmes to prevent sexual
harassment and violence
(cont.)
Employee Services/Welfare
 Overseeing canteen facilities

 Provision of transport
 Provision of recreation facilities
 Counselling
 Managing employee assistance programmes
(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.
(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
TheSocial
SocialSecurity
SecurityOrganization
Organization
Pembangunan
PembangunanSumber
SumberManusia
ManusiaBhd.
Bhd.
National
NationalInstitute
Instituteof
of Occupational
Occupational
Safety
Safetyand
andHealth
Health
Skill
SkillDevelopment
Development (Loan)
(Loan)Fund
FundCorporation
Corporation
The
TheEmployees
EmployeesProvident
Provident Fund
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 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 National Wages Consultative Council Act

2011
 The Minimum Retirement Age Act 2012
 The Employment Insurance System Act 2017
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

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1

 The importance of human resource management

Human resource management is the development

• No manager wants to:

 In organizations with a HR Department, the

 Establishing career movement policies,

Training and Development

 Developing a wage structure

Health and Safety

 Overseeing canteen facilities

Productivity Improvement Schemes

Department Department Department

 The Employment Act 1955

 The Employees’ Social Security Act (SOCSO)

 The Trade Unions Act 1959

 The National Wages Consultative Council Act

 The importance of human resource management

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