HUMAN RESOURCE MANAGEMENT

THE HRM FUNCTIONS

Prepared by: Ms. Faiza binti Omar

Copyright© 2016 MAHSA UNIVERSITY 1

 INTRODUCTION

DEFINITION:

Human Resource Management is a process in managing people in the organization to

ensure in achieving the organization goals and mission.

It’s superior role in managing people; make sure people understand and know the roles
and function in the organization.

HRM also create the policies, practices, and systems that influence employees’:
 behavior
 attitudes
 performance
 DIFFERENTIATION BETWEEN
HUMAN RESOURCE MANAGEMENT
AND HUMAN RESOURCE
HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE

DEPARTMENT
The functions Managing people in an organization
DEPARTMENT
Unit / department – centralized
the HRM functions OF EVERY
department in the organization
Person in- Superior involvement Human Resource Personnel
charge representative
The roles Implementation of the policies, mediator of work Creating policies, standard work
standard practices practice
The activities Handle the employees issues Finalized the HRM issues in the
organization
The Practice harmonized environment Creating harmonization
practicing environment
 HUMAN RESOURCE
FUNCTIONS
1. ANALYSIS AND DESIGN OF WORK
2. HR PLANNING
3. RECRUITMENT AND SELECTION COMPANY
GOALS AND
4. TRAINING AND DEVELOPMENT MISSION
5. PERFORMANCE MANAGEMENT
6. COMPENSATION
7. EMPLOYEE RELATIONS
 ANALYSIS AND DESIGN WORK

Process of getting
detailed
information about
jobs.
 IMPORTANCE OF JOB
ANALYSIS
Job analysis is so important to • Work redesign
HR managers that it has been
called the building block of all • HR planning
HRM functions. • Selection
Almost every HRM program • Training
requires some type of information • Performance appraisal
determined by job analysis. • Career planning
• Job evaluation
HUMAN RESOURCE PLANNING

HUMAN RESOURCE PLANNING

Definition– the organization future planning of the employees to

ensure the operation of business is efficient
Forecasting is prediction of employees that need to be in the
organization
Organization goals
Forecasting labor supply & mission
Forecasting labor demand
Forecasting labor surplus ALIGN WITH
Forecasting labor shortage
Quality of employees
Quantity of employees

Copyright© 2016 MAHSA UNIVERSITY

HR PLANNING ‘TERMS’

Copyright© 2016 MAHSA UNIVERSITY

ORGANIZATIONAL GOALS &
MISSION
 Purpose of setting specific numerical goals is to focus
attention on the problem and provide a basis for
measuring the organization’s success in addressing labor
shortages and surpluses.
 Goals should come directly from analysis of supply and
demand.
 For each goal, organization must choose one or more HR
strategies.
 Organizations should retain and attract employees who
provide a core competency (what makes it better than
competitors)

Copyright© 2016 MAHSA UNIVERSITY

THE STRATEGIES

 In achieving organization goals – organization have to

have strategies especially involves with people
 The organization have to able to analyze the duties of
the job and the responsibility of individual to be match
 IN HIRING PROCESS – organization have to ensure, they
are hired the right people, for the right job at the right
time to achieve organization mission

10

Copyright© 2016 MAHSA UNIVERSITY

RECRUITMENT AND
SELECTION
 Recruiting: any activity carried on by the organization with the
primary purpose of identifying and attracting potential employees.
 Screening of potential candidates to be hired as an
employees in the organization to carried out duty and
responsibility to achieve organizational goals

 Selection: choose the best candidate to become an

employee
 Select the best employee suit with organization needs and
demands, have to being align with job description and job
specification, potential employees should has
KNOWLEDGE, SKILLS, ABILITIES AND OTHER
CHARACTERISTIC (KSAO’S) needed.
Type of recruitment
STEPS IN SELECTION
SELECTION PROCESS
LEGAL STANDARD IN
SELECTION
 All selection methods must conform to existing laws and
legal precedents.
 In Malaysia selection of employee based on;
 Professional bodies
 Skilled level (certification)

Candidates’ Privacy Rights

• Information gathered during selection process may include
information that employees consider confidential.
• This is a particular concern when job applicants provide
information online.
• Employers should collect data only at secure Web sites.
COMMUNICATING THE
DECISION (JOB OFFER)
 When a candidate has been selected, the
organization should communicate the the offer to
the candidate. The offer should include:
 Job responsibilities
 Work schedule
 Rate of pay
 Starting date
 Other relevant details
 Employment contract – agreement between employer
and employee
 Acceptable / rejection of the job offer
TRAINING

Training - an organization’s planned efforts to help employees acquire JOB-

RELATED knowledge, skills, abilities, and behaviors, with the goal of
applying these on the job.
Training can benefit the organization when it is linked to organizational needs
and motivates employees.
To ensure employees able to achieve the target set to them (the KPI’s)

Training Linked to Organizational Needs

Nature of today’s business environment makes training important.
Rapid change requires that employees continually learn new skills.
Growing reliance on teamwork creates a demand for the ability to solve
problems in teams, an ability that often requires formal training.
PREPARING FOR TRAINING

ORGANIZATION CONSIDERATION BEFORE DECIDED TO SEND

AN EMPLOYEE FOR TRAINING

Needs assessment: process of evaluating the organization,

individual employees, and employees’ tasks to determine
what kinds of training, if any, are necessary.
 Needs assessment answers three questions:
1. Organization – What is the context in which training will occur? What
is the needs of organization?
2. Person – Who needs training?
3. Task – What area should training cover?
ELEMENTS IN TRAINING
PROCESS
EMPLOYEES DEVELOPMENT

• Employee development: combination of formal

education, job experiences, relationships, and
assessment of personality and abilities to help
employees prepare for the future of their careers.
• Development is about preparing for change in the form
of new jobs, new responsibilities, or new requirements.
 Protean career: a career that frequently changes based
on changes in the person’s interests, abilities, and
values and in the work environment.
 To remain marketable, employees must continually
develop new skills.
Approaches to Employee Development

Assessment
•These may include:
– Workshops •Collecting information
– Short courses and providing feedback
– Lectures to employees about heir
– Simulations behavior, communication
– Business games style, or skills.
– Experiential programs •Information for
•Many
assessment may come
companies operate from the employees,
training and development their peers, managers,
centers. and customers.
PERFORMANCE MANAGEMENT

 Performance management: process through which

managers ensure that employees’ activities and outputs
contribute to the organization’s goals.
 This process requires:
 Knowing what activities and outputs are desired
 Observing whether they occur
 Providing feedback to help employees meet expectations

 Continuous employee evaluation to improve employees

performance in consistently
 Frequent evaluation – every three month, twice a year.
DEFINING PERFORMANCE

Performance is evaluating employees

BEHAVIOUR
X
WHAT EMPLOYEES DO

PERFORMANCE IS NOT
Results or outcomes
What employees produce
PERFORMANCE INFORMATION

 360-Degree Performance Appraisal:

performance measurement that combines
information from the employees’:
 Managers
 Peers
 Subordinates
 Self
 Customers
PERFORMANCE FEEDBACK

 Performance interview

Scheduling Performance Feedback

 Performance feedback should be a regular, expected management
activity.
 Annual feedback is not enough.
 Employees should receive feedback so often that they know what
the manager will say during their annual performance review.
Preparing for a Feedback Session
 Managers should be prepared for each formal feedback session.

When giving performance feedback, do it in an appropriate meeting

place.
Meet in a setting that is neutral and free of distractions.
COMPENSATION

 BENEFITS REQUIRED BY MALAYSIAN LABOUR LAW 1955

1. Payment of wages
2. Maternity leave
3. Sick leave
4. Annual leave
5. Rest days
 EMPLOYERS’ RESPONSIBILITIES
UNDER THE SOCIAL SECURITY
LAWS
 The Workmen’s Compensation Act
 employ foreign workers you must purchase an insurance policy to cover
compensation to any worker in this category who has a work-related accident or who
contracts a work-related disease
 Employee’s Provident Fund
 1. Employer’s contribution for employees earning RM5,000 and below: 13% of wages
 2. Employer’s contribution for employees earning above RM5,000: 12% of wages
 3. Employee’s contribution: 11%
 Employee’s Social Security
 SOCSO the required contributions which amount to approximately: 1.75% of the
employee’s monthly wages (the employer’s contribution) and 2. 0.5% of the
employee’s monthly wages deducted from his wages (the employee’s contribution)
 Employment Insurance System (EIS)
 The contribution rate for EIS is ~0.2% of the employee's salary (employer share) and ~0.2%
of the employee's salary (employee share)
 OTHER BENEFITS OPTION

 Leave
1. Paternity leave (for male employees whose
wives have given birth)
2. Unpaid leave to attend to personal crises
3. Study leave
 Medical Benefits
 A Relaxed Workplace
 Flexible Working Hours
 Insurance Packages
 Childcare and Eldercare
 Increased Provident Fund Contributions
Employer – employee relation

 It’s a relationship between employer and employee to ensure the harmonization in the
organization; the diversity challenges, people behaviour and leadership.
 The connection and communication between peers, leader and management.
 Clear understanding the functions of duty and the objectives.
 In achieving organization’s objective and mission.
 The mutual understanding between employees and employer

EMPLOYEES UNDER LABOUR LAW CONCEPT

1. Contract of employment aka contract of service

 an employee for the organization
 employment contract
2. Contract for service
 the person providing the services to the organization
 outsources
Employment contract

 The agreement between employer and employee in fulfilling both

parties needs and demand.
 Implied terms = obvious terms that courts assume exist in every
employment contract, including:

Employee’s obligation to work:

 with due care
 obediently
 faithfully

Employer’s obligation to:

 Provide safe work
 Maintain a relationship of mutual respect
Separation and retaining
employees
- TURNOVER

INVOLUNTARY TURNOVER VOLUNTARY

•Turnover initiated by an TURNOVER
employer. •Turnover initiated by
• employee being dismissed employees.
or terminated by employee •Employee resignation
due to discipline issues •Often when the
•Often with employees who organization would
would prefer to stay. prefer to keep them –
{counter offer}
DISMISSAL

 Is an action taken by employer terminating

employee’s services
 Dismissal due to employee misconduct or fails to carry
Major
out workMisconduct
with reasonable standard.Minor Misconduct
Drunk or drug at work Lateness
Fighting Using rude language
Refusing to work Inappropriate clothes
Theft Telling inappropriate jokes
Fraud or cheating with sexual innuendos
 PROGRESSIVE DISCIPLINE
PROCEDURES
Offence Penalty Management involvement
Minor misconduct Oral Warning Supervisor
Repeated minor Written warning Departmental Manager
misconduct or serious Final written warning Department Manager or HR
misconduct Manager
Gross misconduct Demotion/ Senior Manager or HR
Suspension/Dismissal Manager

Taking disciplinary action;

•Employees should know the rules of the organization
•Private action taken – oral warning
•Action should be consistent
•Should be immediately
•Should be progressive – the decision is to correct the employee’s
behavior rather than punishment basis
FUTURE OF HR PROFESSIONAL AND HRM ISSUES