chapter 1 an overview of human resource management
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All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 3
PREVIEW
The importance of human resource management. The growth of the human resource function from the mid-19th
century until today. The impact of current social, business and economic changes on
human resource management. The structure of the human resource function in organizations. The requirements for a career in human resource management. The functions within the scope of human resource management. The role and structure of the Ministry of Human Resources. The purpose of each of the most important labour laws.
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 4
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.
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 5
OTHER TITLES FOR HRM SPECIALISTS
Welfare Officer Personnel Manager Human Resource Manager Human Capital Manager
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 6
HISTORICAL FACTORS IMPACTING HRM
The Industrial Revolution 1850s–1920s Specialization Exploitation of workers Worker alienation
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 7
HISTORICAL FACTORS IMPACTING HRM (cont.)
Human Relations Approach 1930s–1950s
Emphasis on supervisory training Recreation programmes Welfare programmes
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 8
HISTORICAL FACTORS IMPACTING HRM (cont.)
Recent developments 1950s–2020
Increased labour legislation Organizations getting bigger Increasing workforce diversity Rapid changes
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 9
CHANGES AFFECTING HRM
Technological changes
Globalization and increased competition
Employee education and expectations
Workforce diversity
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 10
USEFUL MALAYSIAN STATISTICS
Population: 30 millionCurrent labour force employed: 13 millionUnemployment rate: 3%Number of foreign workers: 1.4 millionNumber of employers registered with the Employees Provident Fund: 510,000Life expectancy (Males): 72.3 yearsLife expectancy (Females): 77.2 years
Source: Ninth Malaysia Plan: www.kwsp.com.my; www.mef.org.my; www.statistics.gov.my
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 11
DO ALL ORGANIZATIONS HAVE AN HRM DEPARTMENT?
NO!What are the criteria for an organization to have a dedicated HRM department? Ownership of the company Philosophy of top management Size of the company Unionization of the workforce
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 12
HUMAN RESOURCE MANAGEMENT IS A SHARED FUNCTION
In organizations with an HRM Department, the function of HRM is shared between this department and ALL managers and supervisors.
Sharing leads to conflict. Agreement must be made so that tasks and
duties are clearly assigned.
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 13
PERSONAL QUALITIES AND SKILLS REQUIRED OF HRM SPECIALISTS
Communication skills Ability to bring about change Information technology (IT) savvy Numerate and able to analyse data Ability to understand the business context High ethical standards
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 14
FUNCTIONS OF THE HR DEPARTMENT
Employment Human resource planning
Setting policies and administering disciplinary action systems
Recruitment
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 15
FUNCTIONS OF THE HR DEPARTMENT (cont.)
Establishing career movement policies, including transfers and promotion
Terminating employees
Liaison with Immigration and Labour Department
Records keeping
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 16
FUNCTIONS OF THE HR DEPARTMENT (cont.)
Training and Development Holding induction programmes
Providing skills training
Organizing supervisory and management development programmes
Establishing and administering performance management and appraisal systems
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 17
FUNCTIONS OF THE HR DEPARTMENT (cont.)
Payment/Reward Systems
Developing a wage structure Preparing information for payroll Establishing incentive schemes Advising on benefits
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 18
FUNCTIONS OF THE HR DEPARTMENT (cont.)
Organizing safety programmes
Establishing wellness programmes
Accident investigation
Provision of health services
Establishing programmes to prevent sexual harassment and violence
Health and Safety
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 19
FUNCTIONS OF THE HR DEPARTMENT (cont.)
Employee Services/Welfare
Overseeing canteen facilities Provision of transport Provision of recreation facilities Counselling Managing employee assistance programmes
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 20
FUNCTIONS OF THE HR DEPARTMENT (cont.)
Establishing and maintaining quality improvement initiatives, including ISO programmes.
Introduction and implementation of suggestion schemes, team problem-solving activities, Kaizen tools and other similar programmes.
Productivity Improvement Schemes
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 21
FUNCTIONS OF THE HR DEPARTMENT (cont.)
Industrial Relations
Grievance handling Relations with trade union representatives Collective bargaining negotiations Preparing for contingencies, including strike
action
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 22
ROLE OF THE MINISTRY OFHUMAN RESOURCES
The Ministry: sets policies,
prepares draft employment legislation, and
enforces the employment legislation.
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 23
ORGANIZATION CHART MINISTRY OF HUMAN RESOURCES
Ministry of Human
Resources
Department of Labour
Department of Trade
Union Affairs
Department of Industrial
Relations
Department of Occupational
Safety and Health
Department of Manpower
Department of Skills
Development
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 24
OTHER ORGANIZATIONS OF RELEVANCE TO HRM
The Employees Social Security Organization
Pembangunan Sumber Manusia Bhd.
National Institute of Occupational Safety and Health
Skill Development (Loan) Fund Corporation
The Employees Provident Fund
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 25
THE EMPLOYMENT LAWS
The Employment Act 1955 The Sabah Labour Ordinance, updated 2005 The Sarawak Labour Ordinance, updated 2005 The National Wages Consultative Council Act
2011 The Employees Provident Fund (EPF) Act 1991
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 26
THE EMPLOYMENT LAWS (cont.)
The Employees Social Security Act (SOCSO) 1969
The Occupational Safety and Health Act (OSHA) 1994
The Factories and Machinery Act 1967 The Children and Young Persons (Employment)
Act 1966 The Employment (Restriction) Act 1968
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 27
THE EMPLOYMENT LAWS (cont.)
The Trade Unions Act 1959
The Industrial Relations Act 1967
Pembangunan Sumber Manusia Bhd. Act 2001
The Skills Development Fund Act 2004
The National Skills Development Act 2006
The Minimum Retirement Age Act 2012
All Rights ReservedHRM Principles and Practices Third Edition© Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 28
REVIEW
The importance of human resource management.
The growth of the human resource function from the mid-19th century until today.
The impact of current social, business and economic changes on human resource management.
The structure of the human resource function in organizations.
The requirements for a career in human resource management.
The functions within the scope of human resource management.
The role and structure of the Ministry of Human Resources.
The purpose of each of the most important labour laws.
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