Chapter 1-Introduction to Human Resource Management

human resource management

1. HUMAN RESOURCE MANAGEMENT ( MGT340) CHAPTER 1: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT CHAPTER 1

2. 1 – 2 LEARNING OBJECTIVE After completing this chapter, students should be able to: Define Human Resource Management Identify t he importance/challenges of human resource management Identify and explain t he impact of current social, business and economic changes on human resource management Describe t he structure of the human resource function in organizations Explain t he functions within the scope of human resource management

3. 3 WHAT IS HRM??? WHAT IS HRM??? WHAT IS HRM??? WHAT IS HRM???

4. 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 . DEFINITION OF HUMAN RESOURCE MANAGEMENT

5. Azira Rahim (Faculty Business & Management) 5 Human resource management in a simple words stand for managing the employees of an organizations Human resource management (HRM) is the practice of recruiting, hiring, deploying and managing an organization's employees.

6. Azira Rahim (Faculty Business & Management) 6 WHY HRM IS IMPORTANCE?   To manage the people within a workplace to achieve the organization's mission and reinforce the culture

7. IMPORTANCE OF HRM Accommodating Employees’ Needs - Flexible hours, child-care centre and fringe benefits Increase Complexity of a Manager’s Job - HR assist in Recruiting, Selection, Performance Appraisal, Training Increasing Legal Complexity - Employment Act, EPF,SOCSO, OSHA Human Resource Information System - Computerized systems in HR decisions Cost of Human Resource - High cost of turnover, absenteeism, sabotage 7

8. 1 – 8 Technological changes Employees need to upgrade and develop their skills and knowledge. It is the job of HR department to provide training to employees. Globalization and increased competition Products and services may be produced in any country considered by the company concerned, labor is not so mobile. Open businesses in other countries and wish to employ their own nationals in the key positions to look after their interest. CHALLENGES/CHANGES OF HRM

9. Cont. Employee education and expectations People are staying longer at school and more students are pursuing tertiary education. Higher level of education, workers are becoming more aware about their employment rights. Workforce diversity Employees at workplace consists of different age groups that will going to have different expectation. Therefore, company has to meet these different generations’ needs. Ex: Generation X, Y and baby boomers. Azira Rahim (Faculty Business & Management) 9

10. The Structure of HRM Big/ Large Organization - In large organizations, the human resource function becomes complex for a HR manager to handle. Therefore, separate sections are created and there would be one manager who is in charge of all the human resource functions separately. 10

11. 11 Example Of HR Structure of a Large Organization

12. The Structure of HRM Small Organization - Small businesses seldom have a formal human resource unit and human resource management specialists. In small firms, the human resource functions are carried out by other managers in the company such as sales, finance and administrative managers and their activities are focused on hiring and retaining capable employees. In small firms, if a manager made a staffing mistake, such as hiring incompetent employees, customers may get turn off and this would cause the firm to fail. 12

13. 13 EXAMPLE OF HR STRUCTURE OF A SMALL BUSINESS Manager/ Owner Sales Operations Finance

14. FUNCTIONS OF HRM 14

15. 1 – 15 Employment Human resource planning Setting policies and administering disciplinary action systems Recruitment Developing career movement policies such as transfers and promotion Terminating employees Liaison with Immigration and Labour Department Records keeping

16. 1 – 16 Implementing induction activities Organizing skills training Organizing supervisory and management development programmes Developing and managing performance management and appraisal systems Training and Development

17. 1 – 17 Establishing a wage structure Developing information for payroll Establishing incentive schemes Advising on benefits Payment/Reward Systems HRM Principles & Practices © Oxford University Press Malaysia, 2008

18. 1 – 18 Organizing safety activities Developing wellness activities Investigate accident Provision of health services Developing sexual harassment and violence programme Safety and Health

19. 1 – 19 Supervise canteen facilities Provision of transport Provision of recreation facilities Counselling Employee Services/Welfare

20. 1 – 20 Developing quality programme such as ISO programmes. Developing suggestion schemes, team problem solving activities and Kaizen tools Productivity Improvement Schemes

21. 1 – 21 Grievance handling Relations with trade union representatives Collective bargaining negotiations Preparing for possibilities such as strike action Industrial Relations

22. SUMMARY Human resource management is very important in the organization. Without employees, the organization will not increase performance and productivity. Thus, it is very important to develop and retain a high-performing employees in the organization. 3 – 22

23. REFERENCE Maimunah Aminuddin (2008). Human Resource Management: Principles and Practices. 3 rd edition. Oxford University : Press Malaysia. 2 – 23

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