CHAPTER 1 - OVERVIEW OF HUMAN RESOURCE

MANAGEMENT

KEY CONCEPTS AND SKILLS

➲ Functions of human resource management➲ Changes that have taken place in HR

management ➲ Role and structure of the Ministry of Human

Resources in Malaysia ➲ Key roles of human resource department ➲ Functions of human resource departments in

different oganisations➲ Importance of managing workforce diversity ➲ Challenges facing human resource

management in Malaysia

CHAPTER OUTLINE

➲ What is human resource management?➲ Changes in human resource management: from

personnel management to HR management➲ Role and structure of the Ministry of Human

Resources➲ Objectives of human resource management ➲ Key roles for human resource departments➲ Human resource function in different organisations➲ Activities carried out under a well-organised human

resource department ➲ Managing workforce diversity➲ Challenges facing human resource management

WHAT IS HUMAN RESOURCE MANAGEMENT?

➲ The utilisation of human resources to achieve organisational objectives

➲ Involves development and implementation of systems that make the best use of human resources

➲ The concern of all managers at all levels ➲ Success of line managers depends on their

skills in managing and motivating those who report to them

➲ Human resource manager’s primary responsibility is to co-ordinate the management of human resources to help organisation achieve its objectives

CHANGES IN HUMAN RESOURCE MANAGEMENT IN MALAYSIA

➲ In 1963, the Malaysian economy was mainly based on primary commodities

➲ During 1970’s industrialisation began with opening of industrial zones in Shah Alam in Selangor and Bayan Lepas in Penang

➲ Many foreign multi-national companies attracted by the low cost of labour and the availability of an educated workforce

CHANGES IN HUMAN RESOURCE MANAGEMENT IN MALAYSIA➲ During early years, emphasis was for

legal compliance and maintaining discipline

➲ Little emphasis on proper management of human resources

➲ Human resources managed by personnel manager, someone low in the hierarchy

➲ Job of personnel manager confined to wages, welfare, hiring when asked to do so, and record keeping

➲ That was the past

Changes in HRM in Malaysia

➲ Some of the changes in Malaysia over the last fifty years include the following:

➲ The growth of organisations➲ A better educated workforce ➲ A more diversified workforce ➲ More women in the workforce

Implications for Human Resource Manager

➲ Must be more professional approach to management of human resources

➲ Trend in business world today is increasing respect and responsibility given to human resource managers

➲ Professional HR manager expected to provide direction and guidance necessary to meet the challenges and problems of human resources in future

➲ Expected to monitor environment of business and study trends so organisation can take positive actions to respond

Implications for Human Resource Manager

➲ With emphasis on improving productivity, HR manager today has a positive and key role in improving productivity

➲ Modern HR manager is a business partner helping to contribute to bottom-line

ROLE AND STRUCTURE OF MINISTRY OF HUMAN RESOURCES MALAYSIA

➲ Tasked with being the leader in developing and managing a world-class workforce in Malaysia

➲ Sets policies, prepares draft legislations and amendments to current legislations, enforces employment legislation, and establishes codes of practices as guidelines for employers and employees

➲ Mission statement = “to develop a competitive workforce in an environment of industrial harmony and social justice.”

Departments, Statutory Bodies and Companies under Ministry of Human Resources

1. Labour Department 2. Industrial Relations Department 3. Industrial Court of Malaysia 4. Trade Union Affairs Department 5. Occupational Safety and Health Department 6. Manpower Department 7. Department of Skills Development 8. National Institute of Human Resources 9. Social Security Organisation 10. Skill Development Fund Corporation 11. Human Resource Development Berhad 12. National Institute of Occupational Safety and

Health

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

Main objectives of HR management are:

1. To attract potentially qualified people to apply to the organisation

2. To retain productive employees 3. To motivate employees

KEY ROLES FOR HUMAN RESOURCE DEPARTMENTS

If human resource department performs its roles effectively, will have a major effect on:

➲ Improving organisational productivity➲ Enhancing the quality of work life➲ Complying with all the necessary

laws and regulations related to effective human resource use

Four Key Roles for H R Departments

Policy Provider and Formulator Delegator

HR DEPARTMENT Monitor Innovator

HUMAN RESOURCE FUNCTION IN DIFFERENT ORGANISATIONS ➲ Function depends on size of organisation➲ Small organisation probably no HR department

and functions of HR placed under administration or finance manager

➲ As organisation grows, a separate unit or department headed by an officer or a manager may be formed with a clerk to assist

➲ As organisation grows further, separate sections like employment, training, compensation, employee relations, and safety may be created

➲ In very large organisations, human resource function may become a division headed by a director with specialist human resource section managers

ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT

Head of Department➲ Establishing human resource

policies➲ Productivity improvement

programmes➲ Advising top management

ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT

Employment➲ Human resource planning➲ Recruitment➲ Selection➲ Career development➲ Succession planning➲ Termination➲ Exit interviews

ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT

Training and Development➲ Orientation training➲ Supervisory and management

training and development➲ Educational assistance programmes➲ Skills or operations training➲ Performance appraisal

ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT

Compensation and Benefits➲ Wage and salary structures➲ Benefits programme➲ Payroll and deductions➲ Incentive schemes

ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT

Employee Services➲ Canteen➲ Hostel➲ Transport➲ Uniforms➲ Sports and recreational activities

ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT

Industrial Relations➲ Maintaining relationships with the

employees’ union➲ Grievance handling➲ Counselling and disciplining➲ Collective bargaining➲ Handling industrial actions➲ Dismissals, conciliation, and

arbitration

ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT

Safety and Health➲ Safety programmes➲ Health programmes➲ Wellness programmes➲ Accident investigation➲ Personal protective equipment➲ Sexual harassment➲ Prevention of violence in the

workplace

MANAGING WORKFORCE DIVERSITY

What is Workforce Diversity?➲ Refers to the way in which people in

the workforce are different from one another

➲ Differences encompass ethnic and religious differences to age, gender, education level, language skills, physical abilities, and even physical appearance

MANAGING WORKFORCE DIVERSITY Implications for the HR manager➲ Objective should be to make diversity an asset

and to create a work environment where employees can work together with their colleagues regardless of backgrounds at the same time promoting teamwork and enhancing working relationships

➲ HR manager may consider recommending that top management approve a non-discrimination policy

➲ Managing diversity effectively done through training, and recruitment and selection

CHALLENGES FACING HUMAN RESOURCE MANAGEMENT

➲ Reducing employee feelings of not being part of the organisations

➲ Increasing human creativity and productivity

➲ Expanded roles for the human resource manager in helping the organisation to meet its ever-increasing social responsibility

➲ Expanded human resource manager roles in designing organisations