CHAPTER 1 THE HUMAN RESOURCE MANAGEMENT FUNCTIONS

1
CHAPTER 1THE HUMAN RESOURCE MANAGEMENT FUNCTIONS
2
WHAT IS HRM?

• Activities and practices to plan for, attract,
  select, develop and retain human resources, to
  achieve the organizations goals
• The objective is to determine the best use of the
  talent and skills available to accomplish the
  organizational goals

3
AREAS IN HRM

• HR Utilization
• Recruitment
• Selection
• Placement
• Appraisal
• Compensation
• Workplace planning

4
AREAS IN HRM

• HR Development
• Education
• Training
• Development
• HR Environment
• Job enrichment
• Job enlargement
• Organization development

5
GROWTH OF HR FUNCTION

• Industrial Revolution
• Human Relations Approach
• Recent Development

6
HRM FUNCTIONS

• Human resource planning
• Recruitment
• Selection
• Compensation benefits
• Performance appraisal
• Training and development
• Employee relations
• Safety health

7
CHANGING TRENDS IN HRM

• Technological changes
• Globalization and increase competition
• Employee education and expectation
• Workforce diversity
• Useful statistics

8
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

9
FUNCTIONS OF HR DEPT.

• Employment
• Training and Development
• Payment / Reward Systems
• Health and Safety
• Employee Services / Welfare
• Productivity Improvement Schemes
• Industrial Relations

10
FACTORS INFLUENCE HR DEPT.

• Size of organization
• Unionization of the workplace
• Ownership of the company
• Philosophy of top management

11
CHALLENGES IN HRM

• Environmental challenges
• Organizational challenges
• Individual challenges

12
ENVIRONMENTAL CHALLENGES

• Rapid change
• Work force diversity
• Globalization
• Legislation
• Evolving Work and Family Roles
• Skills shortages and the Rise of the Service
  Sector

13
ORGANIZATIONAL CHALLENGES

• Competitive position cost, quality, distinctive
  capabilities
• Decentralization
• Downsizing
• Organizational restructuring
• Self-managed work teams
• Small businesses
• Organizational culture
• Technology
• Outsourcing

14
INDIVIDUAL CHALLENGES

• Matching people and organization
• Ethical dilemmas and social responsibility
• Productivity
• Empowerment
• Brain drain
• Job insecurity

15
LABOUR LAWS AND ENFORCEMENT

• The Employment Act 1955
• The Sabah Labour Ordinance
• The Sarawak Labour Ordinance
• The Wages Councils Act 1947
• The Employees Provident Fund Act 1991
• The Workmans Compensation Act 1952
• The Employees Social Security Act 1969

16
LABOUR LAWS AND ENFORCEMENT

• The Occupational Safety and Health Act 94
• The Factories and Machinery Act 1967
• The Children and Young Persons Act 1966
• The Employment (Restriction) Act 1968
• The Trade Unions Act 1959
• The Industrial Relations Act 1967
• Pembangunan Sumber Manusia Bhd. Act 01
• The Skills Development Fund Act 2004
• The National Skills Development Act 2006

17
CHAPTER 2PLANNING THE ORGANIZATIONS HUMAN
RESOURCES
18
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

19
HR PLANNING PROCESS

• Labour demand
• Product demand
• Labour productivity
• Labour supply
• Internal labour market
• External labour market

20
HR PLANNING PROCESS

• Labour demand exceeds labour supply
• Labour supply exceeds labour demand
• Labour demand equals labour supply

21
HR FORECASTING TECHNIQUES

• Quantitative techniques
• Trend analysis
• Qualitative techniques
• Management forecast

22
HR INFORMATION SYSTEM

• Systems used to collect, record, store, analyze
  and retrieve data concerning an organizations
  human resources
• Contains computer hardware and software
  applications that work together to help managers
  make HR decisions

23
HR INFORMATION SYSTEM

• Employees
• Applicant tracking
• Skills inventory
• Payroll
• Benefits administration

24
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

25
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

26
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

27
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

28
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

29
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

30
TECHNIQUES FOR COLLECTING INFORMATION ON
APPLICANTS

• Applicants form and CV
• Reference check
• Selection tests
• Performance tests
• Aptitude tests
• Personality tests
• Intelligence tests
• Medical tests

31
TECHNIQUES FOR COLLECTING INFORMATION ON
APPLICANTS

• Selection interviews
• Planning the interview
• Conducting the interview
• After the interview
• Assessment Centre Activities
• Exercises
• Social events

32
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

33
ISSUES AND PROBLEMS RELATING TO RECRUITMENT AND
SELECTION

• Nepotism
• Employment of children
• Hiring older workers
• Discrimination in recruitment and selection
• Employment of foreigners

34
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

35
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