MGT340

HUMAN
RESOURCE
MANAGEMENT

CHAPTER 1:
INTRODUCTION TO
HUMAN RESOURCE
MANAGEMENT
 CHAPTER
OUTLINE

DEFINITION
THE IMPORTANCE OF HUMAN
RESOURCE MANAGEMENT
THE IMPACT OF CURRENT SOCIAL,
BUSINESS AND ECONOMIC CHANGE ON
HRM
THE STRUCTURE OF HR FUNCTION IN
ORGANIZATION
HRM FUNCTIONS
 WHAT IS HUMAN
RESOURCE MANAGEMENT?

◦ 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.
Avoid personnel mistake.
◦ Hiring the wrong person.
◦ Contribute to high turnover.
◦ Commit unfair labor practice.

Improve profits and performance.

◦ Good person (high credibility) = good result = profit & good
performance.
Accommodating Employees’ Needs
o Flexible hours, child-care centre and fringe benefits

Reduce Complexity of a Manager’s Job

• assistIing 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
 Technological changes
◦ Development of new and innovative products and
machines, increasing influence of computers,
employees’ skills and knowledge must be

CHANGES constantly updated.

◦ Provide appropriate training.

AFFECTING ◦ Using new method, new procedure.

HRM Globalization and increased competition

◦ Workforce more flexible.
◦ Marketing and advertising anywhere.
◦ Dealing the demands of company’s top
management and the local staf (MNCs).
 Employee education and expectations
◦ Generation Y , Generation Z (dot.com generation),
comfortable with IT and internet.
◦ High level of education.
◦ Mismatch between the skills of graduates and the
…CHANGES jobs available.

AFFECTING Workforce diversity

HRM ◦ Various race, age, gender and culture will increase

the crisis.
◦ Manager must understand the need of each
employees group.
◦ Look carefully at employees who in generation Y
& Z (generation.com)
 HUMAN RESOURCE DEPARTMENT STRUCTURE
1. Small Organization - 3. Large Organization - Have
Informal HR unit/department. their own HR unit/department
more specialize to HR functions.
◦ HR functions are usually
placed under the
administration manager or
other managers.

2. Medium Organization - Have

their own HR unit/department. HR
Administration
Department manager is responsible to handle and
oversee all the HR activities.
 1. Employment
Human resource planning
Settingpolicies and administering disciplinary action
FUNCTIONS systems

OF THE HR Recruitment

Establishing
and selection.
career movement policies, including
DEPARTMENT transfers and promotion
Terminating employees
Liaison with Immigration and Labour Department
Records keeping
FUNCTIONS OF THE HR
DEPARTMENT (cont.)
2. Training and Development
Holding induction programmes
Providing skills training
Organizing
supervisory and management development
programmes
Establishing and administering performance management
and appraisal systems
 3. Compensation/Payment/Reward
Systems

-Developing a wage structure

FUNCTIONS
OF THE HR
-Preparing information for payroll
DEPARTMENT
(cont.) -Establishing incentive schemes

-Advising on benefits
FUNCTIONS OF THE HR
DEPARTMENT (cont.)

4. Health and Safety

Organizing safety programmes
Establishing wellness programmes
Accident investigation
Provision of health services
Establishing programmes to prevent sexual harassment
and violence
FUNCTIONS OF THE HR DEPARTMENT (cont.)

5. Employee Services/Welfare/Safety & Health

Overseeing canteen facilities

Provision of transport

Provision of recreation facilities

Counselling

Managing employee assistance programmes

 6. Productivity Improvement Schemes
FUNCTIONS Establishing
and maintaining quality
OF THE HR improvement initiatives, including ISO
programmes - ISO courses
DEPARTMENT Introduction and implementation of
(cont.) suggestion schemes, team problem-solving
activities and other similar programmes-
eg: team buildings
FUNCTIONS OF THE HR DEPARTMENT (cont.)

7. Industrial Relations
Grievance (unfair treatment) handling
Relations with trade union representatives
Collective bargaining negotiations
Preparing for contingencies, including strike
action