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Chapter 1-Introduction To HRM

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flower boom
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© © 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

Azira Rahim
UiTM Kedah
Faculty Business Management
Learning Objective
1– 2

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
CHAPTER 1
DEFINITION OF
HUMAN RESOURCE MANAGEMENT
1– 4

Human resource management is the development and


implementation of systems in an organization for attract,
develop and retain a high-performing workforce.
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
1– 6
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.
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.
Example Of HR Structure of a Large Organization

C h ie f E x e c u t i v e O f f i c e r

P A to C E O

G e n e ra l M a n a g e r

P A to G M H R

M anager M anager M anager M anager M anager M anager


M a n p o w e r P la n n in g C&B T&D P a y r o ll IR A d m i n is t r a t io n

E x e c u t iv e E x e c u tiv e E x e c u tiv e E x e c u t iv e E x e c u t iv e E x e c u tiv e

H R C le r k H R A s s is ta n t H R A s s is ta n t P a y r o ll A s s is ta n t IR A s s is t a n t A d m in A s is ta n t

O f f ic e B o y
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

Industrial Training and


relation Development

Productivity
Payment and
improvement
reward system
scheme

Employee Health and


service/ welfare safety
Employment
1–
13
• 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
Training and Development
1–
14

 Implementing induction activities


 Organizing skills training
 Organizing supervisory and management development
programmes
 Developing and managing performance management and
appraisal systems
Payment/Reward Systems
1–
15

Establishing a wage structure

Developing information for payroll

Establishing incentive schemes

Advising on benefits

HRM Principles & Practices


© Oxford University Press Malaysia, 2008
Safety and Health
1–
16
Organizing safety activities
Developing wellness activities
Investigate accident
Provision of health services
Developing sexual harassment and violence
programme
Employee Services/Welfare
1–
17

 Supervise canteen facilities


 Provision of transport
 Provision of recreation facilities
 Counselling
Productivity Improvement Schemes
1–
18

Developing quality programme such as ISO


programmes.
Developing suggestion schemes, team problem
solving activities and Kaizen tools
Industrial Relations
1–
19

 Grievance handling
 Relations with trade union representatives
 Collective bargaining negotiations
 Preparing for possibilities such as strike
action
SUMMARY
3–
20

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– 21

Maimunah Aminuddin (2008).Human Resource Management:


Principles and Practices. 3rd edition. Oxford University : Press
Malaysia.

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