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An Overview of
Human Resource
Management
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

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–3
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.

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–4
Other Titles for HRM
Specialists

 Welfare Officer
 Personnel Manager
 Human Resource Manager
 Human Capital Manager

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–5
Historical Factors Impacting
HRM

The Industrial Revolution 1850s–1920s


 Specialization
 Exploitation of workers
 Worker alienation

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Historical Factors Impacting
HRM (cont.)

Human Relations Approach 1930s–1950s

 Emphasis on supervisory training


 Recreation programmes
 Welfare programmes

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Historical Factors Impacting
HRM (cont.)

Recent developments 1950s–2020

 Increased labour legislation


 Organizations getting bigger
 Increasing workforce diversity
 Rapid changes

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–8
Changes Affecting HRM

 Technological changes
 Globalization and increased competition
 Employee education and expectations
 Workforce diversity

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–9
Useful Malaysian Statistics
(2017)

Population: 32 million
Current labour force employed: 15 million
Unemployment rate: 3.4%
Number of foreign workers: 1.9 million
Number of employers registered with
the Employees Provident Fund: 541,000
Life expectancy (Males): 72.7 years
Life expectancy (Females): 77.4 years

Source: www.kwsp.com.my; www.mef.org.my; www.statistics.gov.my

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–10
Do All Organizations Have a
HR Department?

NO!
What are the criteria for an organization to have
a dedicated HR department?
 Ownership of the company
 Philosophy of top management
 Size of the company
 Unionization of the workforce

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–11
Human Resource Management
is a Shared Function

 In organizations with a HR Department, the


function of HRM is shared between this
department and all managers and supervisors.
 Sharing leads to conflict.
 Agreements must be made so that tasks and
duties are clearly assigned.

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–12
Personal Qualities and Skills
Required of HRM Specialists

 Communication skills
 Ability to bring about change
 Information technology (IT) savvy
 Numerate and able to analyse data
 Ability to understand the business context
 High ethical standards

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–13
Functions of the HR
Department

Employment
 Human resource planning
 Setting policies and administering disciplinary
action systems
 Recruitment

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
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Functions of the HR
Department (cont.)

 Establishing career movement policies,


including transfers and promotion
 Terminating employees
 Liaison with Immigration and Labour
Department
 Records keeping

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–15
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

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–16
Functions of the HR
Department (cont.)

Payment/Reward Systems

 Developing a wage structure


 Preparing information for payroll
 Establishing incentive schemes
 Advising on benefits

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–17
Functions of the HR
Department (cont.)

Health and Safety


 Organizing safety programmes
 Establishing wellness programmes
 Accident investigation
 Provision of health services
 Establishing programmes to prevent sexual
harassment and violence
Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–18
Functions of the HR
Department (cont.)

Employee Services/Welfare

 Overseeing canteen facilities


 Provision of transport
 Provision of recreation facilities
 Counselling
 Managing employee assistance programmes

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–19
Functions of the HR
Department (cont.)

Productivity Improvement Schemes


 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.

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–20
Functions of the HR
Department (cont.)

Industrial Relations

 Grievance handling
 Relations with trade union representatives
 Collective bargaining negotiations
 Preparing for contingencies, including strike
action

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–21
Role of the Ministry of
Human Resources

The Ministry:
 Sets policies
 Prepares draft employment legislation, and
 Enforces the employment legislation

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–22
Organization Chart
Ministry of Human Resources
Ministry of
Human
Resources

Department Department Department


Department
of Trade of Industrial of Occupational
of Labour
Union Affairs Relations Safety and Health

Department
of Manpower

Department
of Skills
Development

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–23
Other Organizations of
Relevance to HRM

The Social Security Organization

Pembangunan Sumber Manusia Bhd.


National Institute of Occupational
Safety and Health

Skill Development (Loan) Fund Corporation

The Employees Provident Fund

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–24
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

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–25
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

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–26
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

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–27
The Employment Laws (cont.)

 The National Wages Consultative Council Act


2011
 The Minimum Retirement Age Act 2012
 The Employment Insurance System Act 2017

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–28
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

Human Resource Management Principles and Practices (Fourth Edition) All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–29

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