HUMAN RESOURCE MANAGEMENT

PHR2143

CHAPTER 01
HUMAN RESOURCE MANAGEMENT
AN OVERVIEW

ROSIHA BINTI OTHMAN

018-3204611
ROOM NO: 3023
rosiha@gapps.kptm.edu.my
CHAPTER 01 OVERVIEW
What is HRM
Staffing
Human Resource Development
Compensation and Benefits
Safety and Health
Employee and Labour Relations
HRM practice in real world
Human Resource Manager
 Human Resource Management
What is Human Resource Management (HRM)?

It is to bring together different kinds of people to achieve

the common purpose of the organization.

The definition - Human resource management is the

utilization of individuals or a firm’s human resources
to achieve organizational objectives. (Mondy, 2016)

Utilization refers to how we make full use of the labour we have

in relation to their skills, knowledge and abilities.
WHY HRM IS IMPORTANT?

1. Accommodating worker’s needs

2. Increase complexity of a manager’s job
3. Increasing legal complexity
4. Human Resource Information Systems
5. Cost of human resource
Human Resource Management
Function
Functions of HRM
Employee & Labour Relations

Compensation Safety & Health

5 Functional
areas

Staffing Human Resource

Development
Staffing
Staffing is the process through which an
organization ensures that it always has the proper
number of employees with the appropriate skills
in the right job, at the right time, to achieve
organizational objectives.
4 main activities are:

Human
Job Resource
Recruitment Selection
Analysis Planning
(HRP)
 Staffing
 Job analysis
◦ Refers to the study of jobs within an organization. It is the
process where the management systematically studies the
task, duties and responsibilities of the jobs and the kinds of
people who should be hired for these jobs.

◦ Job analysis give answers to several questions:

? How much time is taken to complete important task?
? Where is the job to be accomplished?
? How does the worker do the job?
? Why is the job done?
? What qualifications are needed to do the job?
? How can a job be designed so that employee performance
can be improved?
Staffing
 Human Resource Planning
◦ Is a systematic process of matching the internal and
external supply of people with job openings
anticipated in the organization over a specified period
of time.
 Recruitment

◦ Is the process of attracting individuals on a timely

basis, in sufficient numbers with appropriate
qualifications to apply for jobs with an organization.
Staffing
Selection
◦ Selection is the process of choosing from a
group applicant the individual best suited for a
particular position and the organization.
Human Resource Development
Human resource development is a major function
of HRM consisting several activities such as:
◦ Training – is designed to provide learners with needed
knowledge & skills for their present jobs
◦ Development – involves learning that goes beyond
today’s job and long-term focus.
◦ Organization Development - is a planned and systematic
attempt to change the organization (corporate culture) to
a more behavioral environment.
Human Resource Development
◦ Career Planning - is an ongoing process whereby an
individual sets career goals and identify the way to
achieve them.
◦ Career development – is a formal approach used by
organization to ensure people with preper
qualification and experiences are available when
needed.
◦ Performance Management (PM) – is a goal-oriented
process where the maximum productivity of
employees, terms and organization are ensured.
◦ Performance Appraisal - is a formal system of review
and evaluation of individual or team task performance
Compensation & Benefits
 Compensation and benefits means the total rewards
provided to employees in return for their services.
◦ Types of compensation
 Direct financial compensation – pay that a person receives in form of
wages, salaries, commissions and bonuses.

 Indirect financial compensation (employee benefits) – rewards that

are not included in direct compensation such as vacation, sick leave,
holidays, insurance and medical benefits

 Nonfinancial compensation – Satisfaction a person receive from the

job itself of from the psychological or physical environment in which
the person works such as safe workplace, promotion, enjoyment of
work perform.
 Safety and Health
Employees works in safe environment and healthy are more
productive and long term benefits to the organization

Safety - protecting employees from injuries caused by

work-related accidents.
Health - refers to the employee’s freedom from physical
and emotional illness.
Internal Employee Relations
 The relationship between manager and employees must
be handled effectively to prosper.

 HR function that involve labour union that represents a

firm’s employees that involve in handling collective
bargaining negotiation.

 Collective
bargaining is a process whereby employers
and employees negotiate over the terms and conditions
of employment.
How HRM practiced in the real
world?
 The roles are :
 1. Human Resource Professional – individual who
normally acts in an advisory or staff capacity, working
with other professionals to help them deal with human
resource matters.
 2. HR Outsourcing – is the process of hiring external
HR professionals to do the HR work that was previously
done internally. Eg: discreet services, Multi-process
services and total HR outsourcing
How HRM practiced in the real
world?
 3. HR Shared Service Center –
◦ a) A center that takes routine, transaction-based activities into
one place.
◦ b) Fewer HR professionals are needed when shared service
centers are used, resulting in significant cost savings.
◦ c) Most common HR function:
 1. Pension Administration
 2. Payroll
 3. Relocation Assistance
 4. Recruitment Support
 5. Global Training and Development
 6. Sucession Planning
 7. Talent Retention
How HRM practiced in the real world?
 4. Professional Employer Organization (Employee
Leasing)
- A company that leases employee to other business
- Company releases its employees who are then hired
by PEO
- PEO pays the employees
- PEO is the employees’ legal employer and has the
rights to hire, fire, discipline and reassign an employee.
- Charges a fee of from 1 to 4 percent of the
customer’s gross wages.
- Services - HR consultation and advice, workers
compensation of certificate of insurance, employee benefits
such as multiple health plan options eg. dental and
payroll & tax services eg. processing
How HRM practiced in the real
world?
 5. Line Managers

 Involved with the human resources by nature of

their jobs

 Line managers are now performing some duties

typically done by HR.
HUMAN RESOURCE MANAGER
Roles of HR Manager
Advisory Role
◦ Consultant to advise line managers related to HR
functions such as hiring, transferring, promoting
and terminating.
Service Role
◦ Preparing or updating employment record
Control Role
◦ Explaining human resources policies, procedures,
laws and the standards to new and existing
employees.
Human Resource Designations
3 characteristics of Human Resource
Designation :
 HR Executives – Performs one or more HR function, a
top-level manager and reports directly to CEO or heae
of major division
 HR Generalist – Often an executive, performs tasks in
various HR related area and involved in several, or all of
the five HRM functions.
 HR Specialist – Maybe an HR executive manager, or
non-manager, typically concerned with only one of the
five functional areas.