CHAPTER 8

HUMAN RECOURCES MANAGEMENT

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8.1 INTRODUCTION

Human resources are defined as a group of staff and employees who serve in an organization.
It is not possible for an organization to exist without human resources that help or operate it.
Even other businesses need cooperation from outside human resources or other business
partners to exist.

The purpose of established human resource management is to ensure that the people
employed by the organization are used efficiently and effectively and they are able to
contribute to the achievement of organizational goals. In the past, human resources were
known as ‘costs’ to organizations because they had to be paid salaries, given various forms of
benefits and leave, bonuses and health benefits.

Today, they are known as 'assets' to the organization. In fact, human beings are the main
pulse in an organization so that it can move smoothly. It is this paradigm shift that triggers
how important it is for an organization to value the quality work results shown by their staff
and employees. The top management of the organization also ensures that the workforce that
leads their organization is able to manifest the corporate mission, objectives and
recommendations, in other words ‘making things happen'.

Therefore, human resource management is necessary to determine the achievement of

organizational objectives and goals. Human resource management is a part of management
that has a close relationship between individuals. In addition, it focuses on achievements and
wants and needs of the customer, where it can help the organization satisfy the external
needs of the customer. Human resource management is an important aspect of human
resource development strategy that is the key to organizational success. Employees are an
important and valuable asset compared to other resources in the organization.

8.2 DEFINITION OF HUMAN RESOURCE MANAGEMENT

According to Bohlander et al (2001), human resource management involves the combination

of all diverse workforces to achieve common goals. While Ivencevich (2001) defines human
resource management as a function implemented in the organization to help facilitate the
effective use of human resources to achieve organizational and individual goals.

In addition, there are various perspectives on the focus of human resource management
namely:

• Human resource management is considered human management that manages

employees as a direct and interpersonal activity.
• Human resource management as personnel management that emphasizes technical
skills for assessment, selection, training and so on.
• Human resource management as strategic management that emphasizes employees
as assets in an organization.

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Human resource management refers to the practices, policies and systems that influence
employee behaviour, attitudes and performance. Among the human resource management
practices include determining human resource needs (human resource planning), attracting
qualified employees (recruitment), selecting employees (selection), teaching employees how
to perform work and preparing them for the future (training and expansion), rewarding
employees (compensation), evaluating employee performance (performance appraisal), and
creating a positive and harmonious work environment (employee relations), Noe et al. (2000).

Effective human resource management practices need to be established and used to help
achieve business and organizational goals and objectives. According to Tsui and Gomez Meija
(1998), Danaley and Huselid (1996) effective human resource management practices need to
be linked to organizational performance where it can influence employee and customer
satisfaction, innovation, productivity and even good reputation development among other
organizations.

Table 8.1: Functions and activities carried out by the Human Resources Department
Function Activity

Planning and Interviews, recruitment, exams.

Recruitment

Training and Orientation, skills, training, education, productivity enhancement,

Development development and career path.

Achievement Manage performance, form performance standards, corrective actions,

evaluation methods, performance interviews.

Convenience Insurance, leave management, retirement plans, profit sharing.

Employee Services Program help employee, transfer work, services.

Personal records Information systems, records about employees.

Employees and Attitude study, employee relations, compliance with rules and policies,
Relationships discipline, labour laws.
Community/ Society
Safety and Health Policy formulation, policy implementation monitoring, enforcement, safety
surveillance, safety training, health testing, provision of personal protective
equipment.

Strategic planning International human resource management, planning, merger and

procurement forecasting.

Based on the above activities, the principles of human resource management can be
summarized as follows:

• To supply employees to the organization, i.e., in sufficient numbers, with the right skills
and at the right time. This process includes planning, recruitment, selection, orientation
and ongoing planning.

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• To help improve the qualifications and skills of employees by providing training and
development programs, educational assistance, exchanges and career management.

• To motivate employees to increase effectiveness through incentive programs,

performance appraisal, quality of work and organizational development programs.

• To ensure capable employees remain loyal and loyal to the organization through programs
such as compensation and benefits, rewards, promotions, employer employee relations,
and employee assistance programs.

• To terminate employment in an atmosphere consistent with the goals of the organization,

while not demeaning the employee in the eyes of the employee another.

8.3 HUMAN RESOURCE MANAGEMENT FUNCTIONS

The human resource management function refers to the tasks and work performed by
organizations small or large in an effort to provide and coordinate human resources. These
functions cover a wide range of activities that give significance to all parts of the organization.
Byres and Rue (1998) have identified six functions of human resource management, namely:

i. Human Resource Planning

ii. Human resource development
iii. Compensation and Facilities
iv. Safety and Health
v. Industrial Relations
vi. Human Resource Research

The six activities can be detailed as in Table 8.2 as follows:

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8.4 HUMAN RESOURCE CHALLENGES

The changes taking place today in terms of globalization, technology etc. cause human
resource management to have to be an agent of change. Human resource managers have to
do a lot of things, introduce new policies, shape healthy work culture, making the organization
more sensitive to the environment., flexible and stay competitive while constantly monitoring
the organizational environment.

Figure 8.1: Challenges of HRM

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a) Technological Change
Today's state -of -the -art technology allows human resource managers to be more
effective as well as speed up the journey of various human resource functions. In addition,
technological change requires more knowledgeable employees who can help management
to detect and solve problems as well as make decisions about their areas of work.

b) Changing Employment Trends

More women entering the job market nowadays require changes to some functional
aspects of human resources. This is to maintain the workforce among women in the
employment sector, in addition to helping women who face problems while working.
Among the aspects that have been changed is the 60-day maternity leave given to women,
the existence of organizations that provide flexible working hours to address childcare
problems while mothers are working. This is part of the changes facing women workers
today.

c) Foreign workers
There are many foreign workers especially those who come to work in Malaysia such as
workers from Indonesia, the Philippines, Bangladesh and Myanmar. Workers from this
category are required to comply with Malaysian labour rules and laws in addition to the
rules issued specifically for these migrant workers. For example, they need to obtain a
Malaysian work permit before working in any company in Malaysia. In addition, they need
to undergo and pass a health test first.

8.5 CONCLUSION

Human resource management is an aspect that needs to be given attention by all

organizational managers. This is because employees are an important and valuable element
in achieving organizational effectiveness. Human resource functions such as compensation,
human resource planning and recruitment, selection and socialization, training and industry
relations are aspects that help achieve the effectiveness of human resource management in
an organization.