Chapter 1 Introduction of HR

AN OVERVIEW
OF HUMAN
RESOURCE
MANAGEMENT
Chapter
1

All Rights ReservedHRM Principles and Practices Third Edition
© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 3
PREVIEW
 The importance of human resource management.
 The growth of the human resource function from the mid-19th
century until today.
 The impact of current social, business and economic changes on
human resource management.
 The structure of the human resource function in organizations.
 The requirements for a career in human resource management.
 The functions within the scope of human resource management.
 The role and structure of the Ministry of Human Resources.
 The purpose of each of the most important labour laws.

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.

IMPORTANCE OF HRM
 Avoid personnel mistake.
- Hiring the wrong person.
- High turnover.
- Commit unfair labor practice.
 Improve profits and performance.
- Good person = good result = profit & good
performance.
 The manager may spend time as an HR manager.
- Some organization with no HR department. HRM would help manager.
 Human resource for entrepreneurs.
- New entrepreneurs no need to employ a HR manager. Thus, HRM is
most helpful to run their business.

CHANGES AFFECTING HRM
 Technological changes
- Provide appropriate training.
- Using new method, new procedure.
 Globalization and increased competition
- Workforce more flexible.
- Marketing and advertising anywhere.
- Dealing the demands of company’s top management
and the local staf (MNCs).

 Employee education and expectations
- Generation Y , Generation Z (dot.com generation),
comfortable with IT and internet.
- High level of education.
- Mismatch between the skills of graduates and the jobs
available.
 Workforce diversity
- Various race, age, gender and culture.
…...CHANGES AFFECTING HRM

Human Resource Department
Structure
 Small Organization - Informal HR
unit/department.
GM/CEO/OWNER
Marketing Department Finance Department Production Department

Structure
 Medium Organization - Have their own HR
unit/department.
GM/CEO/OWNER
Marketing Department Finance Department Production Department HRM Department

 Large Organization - Have their own HR
unit/department more specialize to HR
functions.
Structure
GM/CEO/OWNER
Marketing Department Finance Department Production Department HRM Department
Training &
Development
Compensation
Safety & health
Industrial
Relation

USEFUL MALAYSIAN
STATISTICS
Population: 30 million
Current labour force employed: 13 million
Unemployment rate: 3%
Number of foreign workers: 1.4 million
Number of employers registered with
the Employees Provident Fund: 510,000
Life expectancy (Males): 72.3 years
Life expectancy (Females): 77.2 years
Source: Ninth Malaysia Plan: www.kwsp.com.my; www.mef.org.my;
www.statistics.gov.my

FUNCTIONS OF THE HR
DEPARTMENT
Employment
 Human resource planning
 Setting policies and administering disciplinary
action systems
 Recruitment

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
 Establishing career movement policies,
including transfers and promotion
 Terminating employees
 Liaison with Immigration and Labour
Department
 Records keeping

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Training and Development
 Holding induction programmes
 Providing skills training
 Organizing supervisory and management
development programmes
 Establishing and administering performance
management and appraisal systems

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Payment/Reward Systems
 Developing a wage structure
 Preparing information for payroll
 Establishing incentive schemes
 Advising on benefits

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
 Organizing safety programmes
 Establishing wellness programmes
 Accident investigation
 Provision of health services
 Establishing programmes to prevent sexual
harassment and violence
Health and Safety

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Employee Services/Welfare
 Overseeing canteen facilities
 Provision of transport
 Provision of recreation facilities
 Counselling
 Managing employee assistance programmes

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
 Establishing and maintaining quality
improvement initiatives, including ISO
programmes.
 Introduction and implementation of suggestion
schemes, team problem-solving activities,
Kaizen tools and other similar programmes.
Productivity Improvement Schemes

FUNCTIONS OF THE HR
DEPARTMENT (cont.)
Industrial Relations
 Grievance handling
 Relations with trade union representatives
 Collective bargaining negotiations
 Preparing for contingencies, including strike
action

ROLE OF THE MINISTRY OF
HUMAN RESOURCES
The Ministry:
 sets policies,
 prepares draft employment legislation, and
 enforces the employment legislation.

ORGANIZATION CHART
MINISTRY OF HUMAN RESOURCES
Ministry of
Human
Resources
Department
of Labour
Department
of Trade
Union Affairs
Department
of Industrial
Relations
Department
of Occupational
Safety and Health
Department
of Manpower
Department
of Skills
Development

OTHER ORGANIZATIONS OF
RELEVANCE TO HRM
The Employees Social Security Organization
Pembangunan Sumber Manusia Bhd.
National Institute of Occupational Safety and Health
Skill Development (Loan) Fund Corporation
The Employees Provident Fund

THE EMPLOYMENT LAWS
 The Employment Act 1955
 The Sabah Labour Ordinance, updated 2005
 The Sarawak Labour Ordinance, updated 2005
 The National Wages Consultative Council Act
2011
 The Employees Provident Fund (EPF) Act 1991

THE EMPLOYMENT LAWS
(cont.)
 The Employees Social Security Act (SOCSO)
1969
 The Occupational Safety and Health Act
(OSHA) 1994
 The Factories and Machinery Act 1967
 The Children and Young Persons (Employment)
Act 1966
 The Employment (Restriction) Act 1968

THE EMPLOYMENT LAWS
(cont.)
 The Trade Unions Act 1959
 The Industrial Relations Act 1967
 Pembangunan Sumber Manusia Bhd. Act 2001
 The Skills Development Fund Act 2004
 The National Skills Development Act 2006
 The Minimum Retirement Age Act 2012

REVIEW
 The importance of human resource management.
 The growth of the human resource function from the mid-19th
century until today.
 The impact of current social, business and economic changes on
human resource management.
 The structure of the human resource function in organizations.
 The requirements for a career in human resource management.
 The functions within the scope of human resource management.
 The role and structure of the Ministry of Human Resources.
 The purpose of each of the most important labour laws.

Chapter 1 Introduction of HR

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