Chapter 1 - Introduction To Human Resource Management

HRM433
PRINCIPLES
OF HUMAN
RESOURCE
MANAGEMENT
CHAPTER 1:
INTRODUCTION TO
HUMAN RESOURCE
MANAGEMENT
CHAPTER
OUTLINE
❑DEFINITION
❑THE IMPORTANCE OF HUMAN
RESOURCE MANAGEMENT
❑THE IMPACT/HRM CHALLENGES
❑THE STRUCTURE OF HR FUNCTION IN
ORGANIZATION
❑HRM FUNCTIONS
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.
◦ The design of formal systems in an

organization to ensure effective and
efficient use of human talent to
accomplish organizational goals.
What is Human Resource Management?
Why should you study HRM?

Managers play a Help you understand Great personnel
key role in your responsibilities help build a
selecting, training, and rights as an business.
motivating, employee.
appraising, and
promoting
employees.
❑ To avoid from hire the wrong person for the job
❑ To avoid high turnover in company
❑ To find the qualified employees to doing job well
❑ To ensure employer treats employees fair for compensation and
benefits
❑ To ensure company able to provide suitable training for their
employees
❑ To ensure employer care about safety and health for all employees in
their company.
❑ To ensure employees can fight their right when they unsatisfied with
term and condition of employment.
❑ To ensure effective and efficient use of human talent to accomplish
organizational goals
1. Technological changes
◦ Development of new and innovative products
and machines, increasing influence of computers,
employees’ skills and knowledge must be
constantly updated.
CHANGES ◦ Employees need to upgrade and develop their
skills and knowledge.
AFFECTING ◦ It is the job of HR department to provide training
to employees.
HRM
2. 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.
3. 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.
…CHANGES
AFFECTING 4. Workforce diversity
◦ Employees at workplace consists of different
HRM 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.
HUMAN RESOURCE DEPARTMENT STRUCTURE
1. Small Organization - 3. Large Organization - Have
Informal HR unit/department. their own HR unit/department
more specialize to HR
◦ HR functions are usually functions.
placed under the
administration manager or
other managers.
2. Medium Organization - Have

their own HR unit/department.
Administration
Department HR manager is responsible to
handle and oversee all the HR
activities.
THE HUMAN RESOURCE MANAGEMENT
FUNCTIONS
Human
Resource
Manageme
1
nt
Safety and
Health
9
STAFFING
Process through which an organization ensures that it always has
proper number of employees with appropriate skills in right jobs at
right time to achieve organization’s objectives
❑Job Analysis
❑Human Resource Planning
(HRP)
❑Recruitment
❑Selection
10
Human Resource Development (T&D)
Training
❖ Attempt by an organization to change employees through the learning process
so that they are able to perform their jobs as efficiently as possible.
Development
❖ Learning activities designed to help worker improve their ability and capabilities
to handle a variety of assignments in their job.
11
COMPENSATION AND BENEFITS
✓Compensation – All rewards that
individuals receive a result of their
employment.
✓Benefits - Additional financial
rewards, other than base pay such as
sick leave, vacations, holidays and
medical insurance
12
SAFETY AND HEALTH
Safety - Involves protecting
employees from injuries
caused by work-related
accidents
Health - Refers to the
employees' freedom from
illness and their general
physical and mental well being
13
EMPLOYEE AND LABOR RELATIONS
Industrial relations is the

relationship between an
employer and the trade union
which represents his workers.
14
EFFORT TO MAINTAIN HEALTH
AND SAFETY AT WORKPLACE
❑Organizing safety programmes
❑Establishing wellness programmes
❑Accident investigation
❑Provision of health services
❑Establishing programmes to prevent
sexual harassment and violence
No!
Do All What are the criteria for an organization
Organizations to have a dedicated HRM department?
Have an HRM ❑Ownership of the company
Department? ❑Size of the company
❑Unionization of the workforce
Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.

❑In organizations with an HRM
Human Department, the function of HRM
Resource is shared between this department
Management and ALL managers and supervisors.
is a Shared ❑Sharing leads to conflict.
❑Agreement must be made so that
Function tasks and duties are clearly
assigned.

❑Communication skills
Personal ❑Ability to bring about change
❑Creative to bring the creative idea in
Qualities & implementing new activities,
strategies or approach to lead the
Skills company.
❑Able to solve problems
Required of ❑Financially competent like understand
an HR budgeting, creating cost analyses,
determining returns on investments
Manager and running risk assessments
❑High ethical standards

The Ministry:
Role of the ❑Sets policies,
Ministry of ❑Prepares draft employment
Human legislation, and
Resources ❑Enforces the employment
legislation.

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HRM433

◦ Human resource management is the

◦ The design of formal systems in an

Why should you study HRM?

2. Medium Organization - Have

Industrial relations is the

Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.

Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.

Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.

Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.

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