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Chapter 1-Introduction To HRM

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16 views

Chapter 1-Introduction To HRM

Uploaded by

mfnadim22
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MGT 340

CHAPTER Introduction to HRM

HAIRIANI ABDUL HAMID


UITM JOHOR
Faculty Business Management
Learning Objective

After completing this chapter, students should be able to:

❑ Define Human Resource Management


❑ Identify the importance/challenges of human resource management
❑ Identify and explain the impact of current social, business and economic
changes on human resource management
❑ Describe the structure of the human resource function in organizations
❑ Explain the functions within the scope of human resource management

1– 2
DEFINITION OF
HUMAN RESOURCE MANAGEMENT

Human resource management is the development and


implementation of systems in an organization for attract,
develop and retain a high-performing workforce.

1– 3
IMPORTANCE OF HRM

• Accommodating Employees’ Needs


- Flexible hours, child-care centre and fringe benefits
• Increase Complexity of a Manager’s Job
- HR assist in Recruiting, Selection, Performance
Appraisal, Training
• Increasing Legal Complexity
- Employment Act, EPF,SOCSO, OSHA
• Human Resource Information System
- Computerized systems in HR decisions
• Cost of Human Resource
- High cost of turnover, absenteeism, sabotage
CHALLENGES/CHANGES OF HRM
⚫ Technological changes
- Employees need to upgrade and develop their skills and knowledge.
- It is the job of HR department to provide training to employees.

⚫ Globalization and increased competition


- Products and services may be produced in any country considered by
the company concerned, labor is not so mobile.
- Open businesses in other countries and wish to employ their own
nationals in the key positions to look after their interest.

1– 5
Cont.
⚫ Employee education and expectations
- People are staying longer at school and more students are pursuing
tertiary education.
- Higher level of education, workers are becoming more aware about
their employment rights.

⚫ Workforce diversity
- Employees at workplace consists of different age groups that will going
to have different expectation.
- Therefore, company has to meet these different generations’ needs.
- Ex: Generation X, Y and baby boomers.
The Structure of HRM

⚫ Big/ Large Organization

- In large organizations, the human resource function


becomes complex for a HR manager to handle.
Therefore, separate sections are created and there
would be one manager who is in charge of all the
human resource functions separately.
The Structure & functions of HRM

Factor to determine the specialized of human resource


department in an organization:
1) The size of the organization
2) Unionization of the workforce
3) Ownership of the company
4) The philosophy of the top management
Example Of HR Structure of a Large Organization

9
The Structure of HRM

⚫ Small Organization

- Small businesses seldom have a formal human resource


unit and human resource management specialists.
- In small firms, the human resource functions are carried
out by other managers in the company such as sales,
finance and administrative managers and their activities
are focused on hiring and retaining capable employees.
- In small firms, if a manager made a staffing mistake,
such as hiring incompetent employees, customers may
get turn off and this would cause the firm to fail.
EXAMPLE OF HR STRUCTURE OF A SMALL
BUSINESS

Manager/
Owner

Sales Operations Finance

11
FUNCTIONS OF HRM

Employment

Training and
Industrial Development
relation

Productivity
Payment and
improvement
reward system
scheme

Employee
Health and
service/
safety
welfare
Employment

• Human resource planning


• Setting policies and administering disciplinary action systems
• Recruitment

• Developing career movement policies such as transfers and


promotion
• Terminating employees
• Liaison with Immigration and Labour Department
• Records keeping

1– 13
Training and Development

⚫ Implementing induction activities


⚫ Organizing skills training
⚫ Organizing supervisory and management development
programmes
⚫ Developing and managing performance management and
appraisal systems

1– 14
Payment/Reward Systems

⚫Establishing a wage structure

⚫Developing information for payroll

⚫Establishing incentive schemes

⚫Advising on benefits

HRM Principles & Practices


1– 15 © Oxford University Press Malaysia, 2008
Safety and Health

⚫ Organizing safety activities


⚫ Developing wellness activities
⚫ Investigate accident
⚫ Provision of health services
⚫ Developing sexual harassment and violence
programme

1– 16
Employee Services/Welfare

❖ Supervise canteen facilities


❖ Provision of transport
❖ Provision of recreation facilities
❖ Counselling

1– 17
Productivity Improvement Schemes

⚫ Developing quality programme such as ISO


programmes.
⚫ Developing suggestion schemes, team problem
solving activities and Kaizen tools

1– 18
Industrial Relations

❖ Grievance handling
❖ Relations with trade union representatives
❖ Collective bargaining negotiations
❖ Preparing for possibilities such as strike
action

1– 19
Roles of The Ministry of Human Resources

1) Sets policies
2) Prepares draft legislation of draft amendments to
existing legislation
3) Enforces the employment legislation
4) Establishes codes of practices as guidelines to
employers and employees

For further information visit www.mohr.gov.my


Structure of the Ministry of Human Resources

Departments Statutory Bodies / Companies


Labour Social Security Organization (SOCSO)
Industrial Relations Human Resources Development Bhd.
(PSMB)
Manpower National Institute of Occupational
Safety and Health (NIOSH)
Trade union Affairs Skill Development (Loan) Fund
Corporation
Occupational Safety & Health
Skills Development
SUMMARY
3–
22

⚫ Human resource management is very important in


the organization. Without employees, the
organization will not increase performance and
productivity. Thus, it is very important to develop
and retain a high-performing employees in the
organization.
REFERENCE
2–
24

Maimunah Aminuddin (2018).Human Resource Management:


Principles and Practices. 4rd edition. Oxford University : Press
Malaysia.
Manager /
owner

Sales Administration Finance


President

General Manager General Manager General Manager


Sales Human Resource Operations

Manager
HR Planning

Manager
Recruitment &
Selection

Manager
Compensation &
Benefits

Manager
Safety & Health

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