3. 3
HRM FUNCTIONS
• Human resource planning
• Recruitment
• Selection
• Compensation & benefits
• Performance appraisal
• Training and development
• Employee relations
• Safety & health
4. 4
CHANGING TRENDS IN HRM
• Technological changes
• Globalization and increase competition
• Employee education and expectation
• Workforce diversity
• Useful statistics
5. 5
HR DEPARTMENT
• To support managers’ HR responsibilities
• Help the organization to meet its
objectives by designing HR programs
• Managers and the HR Department need to
work together
6. 6
FUNCTIONS OF HR DEPT.
• Employment
• Training and Development
• Payment / Reward Systems
• Health and Safety
• Employee Services / Welfare
• Productivity Improvement Schemes
• Industrial Relations
7. 7
FACTORS INFLUENCE HR DEPT.
• Size of organization
• Unionization of the workplace
• Ownership of the company
• Philosophy of top management
9. 9
ENVIRONMENTAL CHALLENGES
• Rapid change
• Work force diversity
• Globalization
• Legislation
• Evolving Work and Family Roles
• Skills shortages and the Rise of the
Service Sector
13. 13
HR PLANNING PROCESS
• Process of reviewing and identifying future
human resource needs of an organization
• HR planning helps managers reduce
uncertainty about future
• To ensure that the required number of
qualified employees is available at the
right time
14. 14
HR PLANNING PROCESS
• Labour demand
– Product demand
– Labour productivity
• Labour supply
– Internal labour market
– External labour market
15. 15
HR PLANNING PROCESS
• Labour demand exceeds labour supply
• Labour supply exceeds labour demand
• Labour demand equals labour supply
17. 17
HR INFORMATION SYSTEM
• Systems used to collect, record, store,
analyze and retrieve data concerning an
organization’s human resources
• Contains computer hardware and software
applications that work together to help
managers make HR decisions
18. 18
HR INFORMATION SYSTEM
• Employees
• Applicant tracking
• Skills inventory
• Payroll
• Benefits administration
19. 19
HRIS SECURITY AND PRIVACY
• Limit access to HRIS by controlling access
to the computer and its data files
• Use passwords and special codes
• Grant permission to access employees
information only on a need-to-know basis
• Develop polices and guidelines
• Allow employees to examine their
personal records
20. 20
RECRUITMENT PROCESS
• Recruitment is the process of attracting
suitable people to apply for job vacancies
• Attracting applicants
– Internal
• Employee audit or inventory
• Job posting and bidding
21. 21
RECRUITMENT PROCESS
• Attracting applicants
– External
• Employment agencies and consultants
• Campus recruitment exercise
• Employee referrals
• Unsolicited applicant files
• Advertising in the mass media
• Recruitment through the internet
22. 22
INTERNAL RECRUITMENT
• Advantages:
– Employment record of applicant available
– No induction needed
– Little or no cost involved
– Employees’ morale and motivation increased
• Disadvantages:
– Filling a vacancy may lead to a more gap
– No suitable candidates
– Supervisors may be reluctant to release key
employees
23. 23
EXTERNAL RECRUITMENT
• Advantages:
– Avoid inbreeding
– Possible to widen choice of applicants by
having a pool of candidates
• Disadvantages:
– High costs of recruitment process
– Frustration amongst existing employees
24. 24
SELECTION PROCESS
• The process of choosing the most suitable
applicant from a group of applicants, for an
available vacancy
• Collect information of applicants
• Each applicant will be assessed
25. 25
TECHNIQUES FOR COLLECTING
INFORMATION ON APPLICANTS
• Applicants form and CV
• Reference check
• Selection tests
– Performance tests
– Aptitude tests
– Personality tests
– Intelligence tests
– Medical tests
26. 26
TECHNIQUES FOR COLLECTING
INFORMATION ON APPLICANTS
• Selection interviews
– Planning the interview
– Conducting the interview
– After the interview
• Assessment Centre Activities
– Exercises
– Social events
27. 27
RECRUITMENT AND SELECTION
PROCESS
• Make decision to recruit new employee
• Conduct job analysis
• Source for applicants
• Collect information on applicants
• Select most suitable applicant
• Offer employment to successful applicant
• Hold induction once employee reports for
duty
28. 28
ISSUES AND PROBLEMS RELATING
TO RECRUITMENT AND SELECTION
• Nepotism
• Employment of children
• Hiring older workers
• Discrimination in recruitment and selection
• Employment of foreigners
29. 29
MAKING A JOB OFFER
• Contract of employment
– Implied terms of a contract of employment
– Express terms in a contract of employment
– Changing the terms in a contract of
employment
– Types of employment contract
30. 30
INDUCTION
• Purpose of induction
• Contents of a formal induction programme
• Organizing the induction programme
• Scheduling of induction
• Duration of an induction programme
• Ensuring the effectiveness of an induction
programme
• Potential problems relating to induction
programme
32. 32
JOB ANALYSIS
• Technique of studying a job to identify the
skills, knowledge, experience and other
requirements necessary to perform the job
• Identifies the tasks, duties and
responsibilities of a particular job
• Should be re-analyzed on a regular basis
33. 33
CONDUCTING JOB ANALYSIS
• Determine the desired applications of the
job analysis
• Select the jobs to be analyzed
• Gather the job information
• Verify the accuracy of the job information
• Document the job analysis by writing a job
description
36. 36
JOB DESCRIPTION
• A written profile of a job
• The process of preparing job descriptions
helps to identify unnecessary tasks,
overlapping responsibilities and even the
existence of functions for which no one
has responsibility
37. 37
JOB DESCRIPTION
• Job title, location and grading
• Relationships
• Brief statement on the purpose of the job
• List of duties and responsibilities
• Terms and conditions of employment to be
given to the job-holder
• Negative aspects of the job
38. 38
JOB SPECIFICATION
• Also known as person specification or
worker characteristics
• Describe the profile of a person who
should be able to succeed in the job and
will guide the recruitment officer to the
best candidate
39. 39
JOB SPECIFICATION
• Knowledge, skills and abilities required to
do the job
• Educational qualifications and work
experience required
• Physical requirements of the job
• Personality requirements
• Career path
41. 41
WHAT IS COMPENSATION?
• Total compensation has three
components:
– Base compensation
– Pay incentives
– Indirect compensation benefits
42. 42
DESIGNING A COMPENSATION SYSTEM
• Internal vs External Equity
• Fixed vs Variable Pay
• Performance vs Membership
• Job vs Individual Pay
• Egalitarianism vs Elitism
• Below-market vs Above-market Compensation
• Monetary vs Nonmonetary Awards
• Open vs Secret Pay
• Centralization vs Decentralization of Pay
Decision
48. 48
WORKING HOURS SYSTEM
• Normal working hours
• Overtime working
• Shift work systems
• Alternative working hours scheduling
• Teleworking and homeworking
49. 49
EMPLOYEE BENEFITS
• Group membership rewards that provide
security for employees and their family
members
• Sometimes called indirect compensation
• Protect employees from risks that could
jeopardize their health and financial
security
50. 50
WHY PROVIDE BENEFITS?
• Statutory required
• Attract staff to join the organization
• Retain existing employees
• Increase morale of employees
52. 52
DESIGNING A BENEFIT SCHEME
• Eligibility and waiting periods
• Kinds of benefits
• Level of benefits
• Financing of the benefits
• Fixed package or employee choice
• Communication
53. 53
STATUTORY BENEFITS
• Maternity protection
• Time-off payments
– A weekly rest day
– Public holidays
– Annual leave
• EPF Act
• Employees Social Security Act
54. 54
NON-STATUTORY BENEFITS
• Time-off payments
• Health care
• Insurance
• Financial services
• Subsidies and service
• Retirement benefits
• Allowances
• Educational fee assistance
55. 55
TRENDS IN BENEFIT PACKAGES
• Awareness and desirability of benefits
• Align benefits to strategic objectives
• Cafeteria benefit schemes
• Issues related to benefits
56. 56
REWARD SYSTEMS
• Non-financial rewards
– Performance awards
– Letters of appreciation
– Sponsorship to seminars, conferences and
overseas tours
– Rewards for long service
• Financial rewards
– Salary increases
– Bonus and profit sharing
– Rewards for salespeople (commissions)
58. 58
DEFINITION
• Performance appraisal involves:
– Identification
• Determining what areas of work the manager should
be examining when measuring performance
– Measurement
• Making managerial judgements of how ‘good’ or ‘bad’
employee performance
– Management
• The overriding goal of any appraisal system.
64. 64
BENEFITS OF
PERFORMANCE APPRAISAL
• Employer perspective
– Individual differences in performance can
make a difference to company performance
– May be needed for legal defense
– Provides a rational basis for constructing
bonus
– Can help to implement strategic goals
– Providing individual feedback
– Can include teamwork and teams
65. 65
BENEFITS OF
PERFORMANCE APPRAISAL
• Employee perspective
– Performance feedback is needed and desired
– Improvement in performance requires
assessment
– Differences in performance levels across
workers be measured and have an effect on
outcomes
– Can motivate workers to improve
performance
67. 67
• Recent effect
• Halo effect
• Central tendency
• Prejudice and stereotype
• Fatigue
PROBLEMS IN
PERFORMANCE APPRAISAL
68. 68
EFFECTIVE
PERFORMANCE APPRAISAL
• Conduct appraisal in private
• Allow enough time for employee to discuss
issue
• Refer to performance not individual
• Provide specific not general behaviour
• Give feedback in a good manner
• Avoid loaded terms which produce
emotional reactions
70. 70
DEFINITION OF TRAINING
• Organizational activity which aims to
improve an employee’s current
performance
• The attempt by an organization to change
employees through the learning process
• Training programmes are designed to
change attitudes, develop skills or impart
knowledge
71. 71
WHAT WILL HAPPEN IF NO
FORMAL TRAINING?
• Learning on the job will take longer
• Costs of wasted materials, sales and
customers lost
• Management time cost taken
• Lowered morale, demotivated
• Accident-related costs
• High turnover
72. 72
BENEFITS OF TRAINING
• Increase worker’s productivity
• Increase worker’s job satisfaction
• Keeps worker’s skills and knowledge up-
to-date
• Helps to motivate workers
73. 73
SYSTEMATIC TRAINING
• Identify training needs
• Set training objectives
• Design training programme
• Implement training programme
• Evaluate training programme
74. 74
TRAINING NEEDS AND
TRAINING PLANS
• Individual workers face difficulties in
performing job satisfactorily
• New workers are recruited
• New technology and procedures are
introduced
• Individuals are transferred or promoted
• Major change in the organization
75. 75
DESIGNING TRAINING PLANS
• Identify a performance problem
• Decide whether the problem is serious
enough
• Identify the cause of the problem
• Generate alternative solutions to the
problem
• Choose the best solution and implement
76. 76
SET TRAINING OBJECTIVES
• Purpose of training is to improve
employee’s abilities and performance on
the job
• Consists of three parts:
– Terminal behaviour
– Standards to be achieved
– Conditions of performance
77. 77
DESIGN TRAINING PROGRAMME
• Facilitators
• Venue
• Duration and scheduling of programme
• Number of participants
• Training methods
• Logistics
• Budget
79. 79
LEARNING PRINCIPLES
• The learner must want to learn
• Active or passive learning
• Feedback or knowledge of results
• Learning is faster in teams
81. 81
UNDERSTANDING
EMPLOYEE RELATIONS
• Good employee relations involve providing
fair and consistent treatment to all
employees
• To foster good employee relations,
managers must listen to and understand
what employees are saying and
experiencing
82. 82
UNDERSTANDING
EMPLOYEE RELATIONS
• Effective employee relations require
cooperation between managers and
employee relations representatives
• ERR will try to ensure that company
policies and procedures are followed and
advise both supervisors and employees on
specific employee relations problems
83. 83
TRADE UNIONS
• A group of seven or more workers can
form a trade union
• Application for registration with Registrar
of Trade Unions
• The application form must be signed by all
members
• Send together with the union’s constitution
• The important criterion for a union to be
registered is its intended member
84. 84
TRADE UNIONS
• All workers above 16 years have the right
to join an appropriate union
• Workers between 16 and 21 have lesser
rights to participate in union activities
• Specified groups of workers are restricted
from joining trade unions
85. 85
TYPES OF UNIONS
• National and regional unions
• In-house unions
• Employer’s associations
86. 86
ROLE OF TRADE UNIONS
• Protect their members’ right
• Will take action to stop such unfair practices
• Advise members on their right
• Encouraging government to pass legislation
• Introduce policies
• Three-pronged approach:
– Individual employees
– National issues
– Individual members
87. 87
COLLECTIVE BARGAINING
• The process whereby employers and
employees negotiate over the terms and
conditions on employment
• Union is required by law to gain formal
recognition from the employer before any
negotiation can be made
88. 88
COLLECTIVE BARGAINING
• One of the main functions of trade unions
• The best method of regulating the terms
and conditions of employment
• Once an agreement is reached between
the two parties, there will be no
discrimination between them
89. 89
COLLECTIVE BARGAINING
• May be carried out between an individual
employer and a trade union of employees
• Or between the union of employees and
the union of employers
• This process is regulated by the Industrial
Relation Act
90. 90
COLLECTIVE AGREEMENTS
• Written agreement between an employer
and a trade union relating to terms and
conditions of employment
• Agreement must specify their duration, not
less than three years
• Must be deposited with Industrial Court
• Most agreements include clauses on
wages, working hours and other benefits
to be given to the workers
94. 94
DISCIPLINE
• Penalties in a disciplinary system
– Oral warning
– First written warning
– Final written warning
– Suspension without pay
– Suspension of increment
– Demotion or downgrading
– Dismissal
96. 96
TERMINATION OF EMPLOYEE’S
CONTRACT OF EMPLOYMENT
• Role of Industrial Court
• Resignation
• Expiry of fixed-term contract
• Retirement
• Redundancy and retrenchment
97. 97
TERMINATION OF EMPLOYEE’S
CONTRACT OF EMPLOYMENT
• Dismissal of misconduct
• Dismissal for poor performance
• Frustration of contract
• Termination of probationers
• Constructive dismissal
102. 102
ENSURING A SAFE WORKPLACE
• Safety policies
– A statement of organization’s commitment
– An explanation of who’s responsible
– A description of procedures
• Safety programmes
– Commitment from all employees
– Officer in-charge of safety
103. 103
ENSURING A SAFE WORKPLACE
• Safety programmes
– Record keeping
– Safety training
– Safety and healthy living campaigns
– Incentive and reward schemes
– Provision of personal protective equipment
– Disciplinary system
104. 104
OCCUPATIONAL
SAFETY AND HEALTH ACT
• Ensure the safety of all employees and
any other person at the workplace
• Draft and disseminate a safety policy
• Appoint a safety committee
• Appoint a dedicated, qualified safety and
health officer
• Provide appropriate training, supervision
and information
