Chapter 1 human resource

8/13/2019 Chapter 1 human resource

1/21

HUMAN RESOURCES MANAGEMENT

INTRODUCTION TO HRM


2/21

Pn. Intan Liana Suhaime


3/21


Definition of HRM

The process of acquiring, training, appraising,and compensating employees, and of attending

to their labor relations, health and safety, and

fairness concerns

HRM is the design of formal system in an

organization to ensure effectiveand efficient

use of human talent to accomplish organizationalgoals (Mathis, 2003).


4/21


Why is HRM important to allmanagers?

Hire the wrong person for the jobExperience high turnover

Find employees not doing their best

Waste time with useless interviews

Having the company taken to court because of

unfair labour practices

Having employees think that their salaries are

unfair and equitableAllows lack of training to undermine department

effectiveness


5/21


Factors that contribute to theimportance of HRM

Accommodating

workers needs

Increase complexity of

managers job

Increase legal

complexity

Cost of HR

HRIS


6/21


HRM Challenges: The ChangingEnvironment of HRM

1. The Environment

Managing rapid changes

1. Technology

Technology-caused occupational shift

A major change is the shift of jobs from manufacturing and

agriculture to service industries and telecommunications. The

increase in technology jobs due to the rapid growth of IT such as

databases, system design and analysis and desktop publishing

2. Globalization

Pressures from global competitors have forced many firms to

close facilities, adapt their management practices, increase

productivity and decrease labour cost.


7/21


8/21

2. The Organization

Competitive Position

DecentralizationDownsizing

Organizational Restructuring

Organizational CultureOutsourcing


9/21

3. The Individual

Ethics and Social Responsibility

Productivity

Empowerment

Brain Drain

Job Insecurity


10/21

1

10

USEFUL MALAYSIAN STATISTICS

Population: 26.6 million

Current labour force employed: 10.4 million

Unemployment rate: 3.2%

Number of foreign workers: 2.1 million

Number of employers registered withthe Employees Provident Fund: 395,000

Life expectancy (Males): 71.8 years

Life expectancy (Females): 76.3 years

Source: Ninth Malaysia Plan: www.kwsp.com.my; www.mef.org.my,

www.statistics.gov.my


11/21


HR Department

Small Companies GM/CEO/OWNER

MARKETING FINANCE PRODUCTION

GM/CEO/OWNER

MARKETING FINANCE PRODUCTIONPRODUCTION

Large Companies


12/21

1

12

DO ALL ORGANIZATIONS HAVEAN HRM DEPARTMENT?

NO!What are the criteria for an organization

to have a dedicated HRM department?

Size of the company

Unionization of the workforce

Ownership of the company

Philosophy of top management


13/21

Structure of HRDept

Factors that determine the need of a HRDept :

Size of the org anizat ion

Small companies cannot afford to employ staff who do not

bring in income.

Medium size companies may establish an administration

department which will provide support service to line

department.

Large companies require specialist to handle recruitment,

training and record keeping.

Unionizat ion o f the work force

If employees belong to a TU, the company needs to

employ specialists in the field of IR and human resource

staff who are knowledgeable in labour laws.


14/21

Ownership of the company

The responsibility of human resource functions:

Small companyHead of departments / all managers

Medium sized companyAdministration Department

Large companyHuman Resource Department

Philosophy of top management

If top management believes that the organizations success and

profits are dependent on the cooperation and effort of the workers,

they are more likely to perceive a need for HRDept.


15/21

Separate HR Department

advantages

Expert in dealing with HRM issues

Releasing burden of line manager

Uniform HR policies and practice

Efficient specializationdisadvantages

High cost

Needs rooms for new department

Incur more cost

Hire more worker

More utilities cost

Conflict of interest, duties and responsibilities



16/21

1

16

HUMAN RESOURCE MANAGEMENT IS ASHARED FUNCTION

In organizations with an HRM Department,the function of HRM is shared between this

department and ALL managers and

supervisors.Sharing leads to conflict.

Agreement must be made so that tasks and

duties are clearly assigned.


17/21


Functions/ Activities of HRM

HR Planningplan based

on objective of organization

Recruitmentsearching for

candidates to fulfill jobs in

the organization

Selectionselect suitable

candidates for theorganization

Performance appraisal

evaluation of worker

performance

IRunions

Orientation & T&Dnew

worker

Safety & Health

C&B


18/21

Roles of HR Manager

Administrative role for HR

Focuses extensively on clerical administration

Employee advocate role for HR

Serves as morale officers. Employee advocacy helps

ensure far treatment for employees regardless of

personal background or circumstances

Operational role for HR

Manages most HR activities, identify and implement

needed programs and policies with operating

managers

Strategic role for HR

As business contributors and focuses on long term

implications of HR issues.


19/21

ADMINISTRATIVE OPERATIONAL/

ADVOCACY

STRATEGIC

Focus Administrative processing

and record keeping

Operational support

Represent employees

Organization-wide

Global

Timing Short Term (


20/21



21/21

Chapter 1 human resource

Documents