Basic Framework of HRM

5 Functions Area:-1. Staffing/Recruitment• Obtain people with appropriate skills, abilities, knowledge

and experience.• Human resources planning, job analysis, recruitment and

selection.2. Rewards• Design and administration of the total reward system – pay,

recognition, equity and benefits.• Job evaluation, job analysis, performance evaluation.

3. Employee Development

• Analyzing training requirements and needs to ensure the possession of knowledge and skills for career progression and development.• Identification of key skills and “competencies” through performance evaluation.4. Employee Service/Maintenance• Administration and monitoring of workplace safety, health and welfare and other services; i.e. cafeteria, transportation, sports & recreation.5. Employee Relations/Welfare/Industrial Relations• Employee involvement and workplace “harmony”.

The Nature and Scope of HRM

Torrington and Hall’s Comparison of Personnel Managementand HRM:-1. Personnel Managemento People will only be effective if their job-related personal

need are met.o Interventions are required by personnel to ensure that

job-related needs are attended to.o Because of line managers do not see themselves as people

specialist they may neglect personnel work – necessitatingthe specialist personnel input.

Human Resource Management

oManagement of HR is like any other form of resource management.oHRM should be shared by people across the organization rather than being spilt up artificially into work for specialist.oEfficient management with a focus on human needs is required across the organization.oHR managers are needed to support other managers in their HR work and to make sure that the organization is directed at a strategic level to HRM.oAt the same time, HRM are concerned with making sure that there are enough people working in the right places, at the right time.

HRM

HRM is the part of management concerned with:@Decision @Factors @Functions@Practices @Activities @Strategies@Principles @Methods @Operations

Related to the “Management of People as Employee” in any typeof organization (including small and micro enterprises andvirtual organizations);

“Management of People as Employees”

People are regarded as the source of the organization’s competitive advantage – and every manager is expected to take responsibility for managing them. HRM is a strategic activity – and it should involve all level of managers in the organization, not just the Human Resource Manager. HRM must be integrated with all aspects of the management of the organization – and it should be built into all management decision and practices.

Core roles in HRM

The core roles of HRM are grouped below into 4 categories.the title of the clusters are tentative, and are open for comment.1. Planning and Organizing for work, people and HRM Strategic perspective Organization design Change management Corporate Wellness management2. People Acquisition and Development Staffing the organization Training & development Career management Performance Management Industrial relations

3. Administration of Policies, Programmes & Practices

Compensation managementInformation managementAdministrative managementFinancial management

Supportive generic skillsThis is not intended to be final outline of human resource skillsbut the following have emerged during the process as importantskills for human resource practitioner to possess.

These are:

Project managementConsulting skillsEntrepreneurshipSelf managementCommunication skillsFacilitation skillsPresentation skillsSkills for transforming groups into self-directed mutually controlled high performing work teams.Trans-cultural skillsMediation & arbitration skillsFinancial skillsProblem-solving - Diagnostic skills

Major Factors Affecting HRM

Technological AdvancementDemographics and DiversityGlobalization

What Workers Need?1. Changing in Technological AdvancementWorkers are overwhelmed with advanced technologies in design /production/administration and communications.2. Changing demographics and diversity – life stylesWorker needs vary by age, gender, race, religion, physical abilities, sexual orientation, and marital and family status.

3. Employee and Globalization

Communication ~ different language and limited face-to-face interaction; more on e-mail, fax, tele-conferencing, video- conferencing, etc.

4. Employee needs representation (“voice”)Workers want to be involved in work-related issues and expect the organization to listen to their concerns.

5. Employee needs for work/life balanceWorkers are less committed to organizations today but also suffer from burnout and lower performance.

6. Employee concerns about safety in the workplace

Workers want a safe, hazard-free working environment.

In addressing “WHAT WORKERS NEED….?”Total REWARDS should reflect his or her relative contribution to the organization.Employees’ GOALS and OBJECTIVES should derived from the department’s, which will support the mission and goals of the organization.

Job Description & Essential Function Strategic Plan & Annual Goals

Standard of Performance

Observation & Feedback

Performance Evaluation

Performance Development

Standard of Performance

• Provides a benchmark against which to evaluate work performance.• Defines how well each function or task must be performed in order to meet or exceed expectations.• Standards of performance are usually: I. –developed in collaboration with the employees who do the tasks or functionsII – explained to new employees within the first month on the job.• Should be written in clear language, describing the specific behaviors and actions required for work performance to meet, exceed or fail to meet expectations.

I – Describe performance expectations in terms of timeliness (deadlines, dates); cost (budget constraints, limits), quality (subjective and objective measures of satisfaction), quantity (how many), customer satisfaction.• Specify the acceptable margin for error. It is very rare for perfection to be an appropriate standard, even for outstanding performance.REMEMBER!!!!oStandards are written for a Position rather than a person; the standard should be reasonable and appropriate no matter who is performing the job.oQuantifiable measures may not apply to all functions.

Observation & Feedback

Should be a routine part of managing employee. Feedback is most effective in reinforcing or improving work performance when the employee has confidence in the basis of that feedback. And we, as the supervisor/manager, will be more confident when giving feedback based on information that we can support. When we can’t be present to observe employee performance, be sure that we have processes in place through which you can learn about how they are doing.

These processes should be open, fair, and understood by everyone. Options for obtaining input about performance in your absence may include, but are not limited to, the following:i. –Have routine one-on-one meetings and include discussions

of performance.ii. -Periodically review and discussion on the standards of

performance and expectations – periodic reportsiii. - Obtain feedback from customers – in writing when possible.

What is a Performance Evaluation?

Yardstick for supervisor to access employee’s performance /commitment.A platform for discussing ACHIEVEMENTS and/or SHORTCOMINGS.To improve employee’s performance through setting of OBJECTIVES and IDENTIFYING training needs.

Performance Appraisal is the SYSTEMATIC DEVELOPMENTof INDIVIDUAL in terms of: REWARDS, TRAINING,CAREER PATH

Obj. of Performance Evaluation

To regularly and systematically assess an employee’s performance so as to EVALUATE and subsequently develop his/her EFFECTIVENESS and COMMITMENT to work.It is a means of documenting an employee’s performance history and also provides a basis for salary review and disciplinary action. -Performance Evaluation is concerned with both UTILIZATION (future use and training) and MOTIVATION (feedback and pay).Provide a basis for AID in the employee’s CAREER DEVELOPMENT for the future in terms of PROMOTION.

The Purpose of Performance Evaluation

Define and communicate performance expectations to employee on an annual basis.Assign relative worth to employees’ contribution to the company in order to distribute rewards.Assess contribution compared to established criteria and employees in similar jobs.Provide performance feedback to employees regarding strengths and areas of development.Explain how employees’ contributions affect business objectives.

General GUIDELINES for writing PE

Evaluation should only be done by those who are in the position to know the work and personality of the one being evaluated.Do not wait until PE itself to let your subordinates know what you expect.The following information should be informed early:-

Job requirements

Specific Goals, Standard & Deadline

How to EVALUATE and REWARDthe performance

General GUIDELINES…

When writing an evaluation, the supervisor/superior SHOULD NOT

1. Be bias2. Practise discrimination3. Exercise abuse of power

The supervisor/superior should evaluate the performance of the employee within the stated period only.All ACCOMPLISHMENTS and WEAKNESSES/ IMPROVEMENTS during the PE Period should be RECORDED down so that it will be easy to evaluate the employee.

General GUIDELINES on

How to DELIVER a PE• The RESULTS of the PE SHOULD BE SHARED with the EMPLOYEE. - Arrange a TIME for a ONE-ON-ONE Session. - Start off with the ACCOMPLISHMENT/S and slowly proceed with the rest. - Be FAIR but DON’T be afraid to give honest criticism when necessary.

How to deliver a PE…

• Maintain SELF-CONFIDENCE and SELF-ESTEEM of the employee. -Focus on the PROBLEM/S, ISSUE/S or BEHAVIOUR and NOT the PERSON. - Ask FACT-FINDING questions to get employees to recall instances in which they performed WELL or POORLY. - Be specific and constructive in your criticism. - See if they have a realistic estimation of their ability.

How to deliver a PE…

• Do provide SUGGESTION/IMPROVEMENT to better explain the expectations. -Explain how the employees’ performance in meeting “GOALS” contribute to department or company objectives.• Should adopt the TWO-WAY and OPEN evaluation because this will allow/encourage employees to talk/discuss freely about the successes and failures over the period concerned. -LISTEN to employees BECAUSE numerous surveys of employee attitudes reveal that employee feel that supervisors/superior “DOESN’T CARE WHAT THEY THINK”.

How to deliver a PE…

- This is the chance to get valuable feedback from your own subordinates about their jobs, environment or company policy.- If PERSONAL PROBLEMS are affecting the employees, DON’T play the role of a “therapist” – Be supportive BUT be careful in getting involved. Refer to the HUMAN RESOURCE PERSONNEL (Employee Relations Executive) for help if necessary.• Focus steadily on each individual’s performance - Show that you care about his/her CAREER. - Don’t let the employee feel that the Review and their Performance REALLY DOESN’T MATTER

Employee Relation / Welfare / Industrial Relations

1. Termination of Contract of Employment Malaysia EmploymentAct 1955

With notice ~ Section 12 Without notice ~ Section 13 Termination of Contract for Special Reasons ~ Section 14

(Dismissal for Misconduct after Due Inquiry) When contract is deemed to be broken by Employer and

Employee ~ Section 15

With Notice ~ Section 12

At any time EITHER party can terminate the service by submitting a written notice of intending to terminate.Notice period must be as specified in the Employment Contract.In the absent of the Employment Contract, The Employment Act 1955 section 12(2).

Without Notice ~ Section 13At any time EITHER party can terminate the service by PAYING the equivalent amount of Salary In-Lieu of notice period.

Contract of Service

Contract of Service can also be terminated on the followinggrounds:1. Breach of Contract of Service2. Misconduct after Due Inquiry

When Contract is deemed to be broken by Employer and Employee~ Section 15 By Employer ~ fails to pay wages within 7 days from end of

wage period. By Employee ~ being absent from work for more than 2

consecutive working days without prior leave or reasonable excuse.

Termination of Contract for Special Reasons ~ Section 14

(Dismissal for Misconduct after Due Inquiry)3 major MISCONDUCT that normally occurs in an employment:-Relating to DutyRelating to DisciplineRelating to Morality

For matters that are deemed to be very serious or grave in nature,a DI shall be convened.

The Process:-

Employee approaches the immediate supervisor or department manager lodge a report of incident

The matter is brought to the attention of HR Department and as written statement is taken from the employee

Continue…

Investigation will be carried out within THREE working days after the report was lodged and the findings will be submitted

to the HR Manager

Offender Not GuiltyThe case will be closed

Offender Guilty

Offender Guilty

The offender will be Suspended from work pending a Show Cause Letter. Domestic Inquiry Punishment based on the decision of the panel of inquiry.

1. The Offender will be Suspended from work pending a ShowCause Letter

a. The employee will be issued with a Suspension Letter stating the The reason of suspension Informing him/her of the 14 days suspension with half pay Requesting for a Show Cause Letter (Letter of Explanation)

from the employee by a stipulated date.

b. Employee’s Reply Letter

If reply is unsatisfactory, unacceptable or no reply, proceed for Charges of DI (Notice of DI).If reply is unconditional admission, clear and ambiguous; no further elaboration is necessary; hold an Oral DI and decide the punishment.Notice of DI Give the details of the misconduct; ie. Time, Place of Incident, Substance of Lost, Description of Incident, etc… Place, Date and Time of the DI Inform that he/she will be given all opportunities to defend Advise him/her to bring witness(es) or relevant documents. Warning of consequences if fails to attend the DI-EXPARTE-

Domestic Inquiry

1. Appoint Panel Members and gives terms of references, ie tohear evidence and to give recommendation.

2. Usually, 1 Chairman, 2 members & 1 Prosecuting Officer3. The Panel Members should be of peers or of higher rank and

must not be connected in any of the case (should not involvedin any of the investigation)

4. Should act impartially, independently and unbiased manner.5. Once the case is decided, the panel of inquiry must submit a

Report of DI, which consists of the proceedings of the case,the findings and the recommendation (should be based onfacts discovered during hearing).

Punishment based on the decision of the panel of inquiry

Dismiss without noticeDowngradeImpose any other lesser punishment1. Written warning 2. Transfer3. Withhold annual increment4. Withhold annual bonusPurpose of DITo give opportunity to defendant to defend him/herselfTo see and hear all witnesses giving evidence against him.To be able to rebut evidence against himTo determine whether there is sufficient evidence to prove the charges against the employee concerned.

The most basic fundamental practice of HR Practioner ..

Provide value added services to customers and treat customers with respect and professionalism – customers here are the “people” working for the organization.Deliver commitments with integrity and speed and adhere to the model company’s philosophies, policies and procedures.Explore opportunities for continuous learning and improvement and display good and positive attitude, demonstrating team work and work towards creating a harmonies environment.Continue to strive for excellent…“GOOD IS NO GOOD IF EXCELLENCE IS EXPECTED”