Mpu3222 Lu8 C5 HRM

1
Human Resources
Management 5
Synopsis
This chapter introduces students to the basics of

human resources management, including human
resources planning, job analysis, recruitment and
selection, human resources development,
performance management, compensation and
benefits, safety and health, industrial relations and
employment laws.
Introduction to Entrepreneurship All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 3
Objectives
The objectives of this chapter are:

To provide students with a basic understanding
of human resources management.
 To show students how human resources
management helps firms to achieve strategic
goals.

Learning Outcomes
At the end of this chapter, students should be able

to:
Describe the functions of important elements and
processes of human resources management to
achieve a firm’s strategic goal.
Discuss and appreciate the importance of human
resources management to business organizations.

List of Topics
 Human Resources Planning

 Job Analysis
 Recruitment and Selection
 Training and Development
 Performance Management
 Compensation and Benefits
 Occupational Safety and Health
 Employment Laws

Introduction
 An entrepreneur will want good, skilful and

competent employees with strong personal
characteristics such as being disciplined, hard-
working, responsible, trustworthy and reliable.
 This chapter will briefly explain the various functions
needed to manage employees and how a company
can recruit, retain, train, motivate and reward the
best employee for a given position.

The Main Functions of Human
Resources Management

Human Resources Planning
 When an entrepreneur launches a new business, his

budget is limited most of the time.
 Therefore, he will only recruit and employ enough
employees as long as it is adequate for operations to
run effectively.
 The entrepreneur may face difficulties in recruiting good
candidates as they will have many job options to choose
from.
 Sometimes, an entrepreneur may persuade friends and
family members to help at the beginning of the business.

Human Resources Planning
(cont.)
 When sales grow and the business becomes stable,
then the entrepreneur can plan manpower
requirement, based on the actual needs of the
business.
 The quantity of sales becomes a guide to estimate
the amount of work, services or products that need
to be produced.
– The amount of tasks or jobs in terms of man-hours can
be calculated, followed by the number of workers
required.

Job Analysis
 Job analysis is the process of gathering

information about a particular job.
 The information includes the:
– job activities, – work environment,
– duties, – behaviours
– scope, – characteristics of a
– responsibilities, person that can
– work environment, effectively perform
the job.

Job Analysis (cont.)
 This information will be used to write:

i. job descriptions (i.e. a list of what the job covers);
and
ii. job specifications (i.e. what kind of people to hire
for the job).
 This information is needed for an entrepreneur to
advertise the job and draw the right candidates to
apply and then choose the best candidate for the
vacancy.

Recruitment and Selection
 Companies recruit and select new staff either for

– for new start-up,
– business expansion, or
– simply to replace resigned or retired staff.
 The challenge is how to attract the right candidates
with the right skills and behaviours that fit the job
requirements.
– This involves suitable qualifications, appropriate wage
amount, where and when to advertise, and how to
advertise.
Recruitment and Selection
(cont.)
 The next process is selection which involves the

process of choosing the best candidate for the job.
 The information provided by the candidates in their
application forms must be scrutinized and only
suitable candidates are shortlisted for interviews.
 The interviewer must be experienced enough to
interview and determine the suitability of the
candidate for the job as outlined in the job
specification.

Training and Development
 An entrepreneur will have to identify the type of

training needed for his employees:
– to improve their job performance; or
– perhaps to prepare them with a new skill set for
new business opportunities.
 New employees may need to attend orientation
or induction programmes to prepare them for
their job in the company.

Performance Management
 In order to help firms achieve their goals an organisation

needs A Performance Management System (PMS)
 PMS involves a continuous process of:
– communicating,
– coaching,
– motivating,
– training,
– feedback,
– evaluating and
– reviewing employees’ performance by supervisors
Performance Management
(cont.)
 An effective performance management process:
– defines what performance to measure,
– measures employees’ performance accurately, and
– provides feedback to employees about their
performance.
 Currently, employees’ rights is an important issue,
and employers must make sure that an
employee’s performance evaluation record is
properly kept, as it may be needed if there is a
court case between employer and employee.
Compensation and Benefits
 Compensation and benefits are ways used by

firms to achieve strategic goals.
 Such methods of attracting the best candidate to
work for the firm include:
– motivating employees to achieve productivity,
– improving employees satisfaction,
– helping retain and maintain existing high
performers, and
– ensuring employees loyalty.
Occupational Safety and Health
 The importance of occupational, safety and health

issues (OSH) has been a major concern of the
government through the enactment of the
Occupational, Safety and Health Act 1994 (OSHA).
 The aim is to promote safety and health
awareness, and establish effective safety
organization and performance through self-
regulation schemes designed to suit the particular
industry or organization.

Occupational Safety and
Health (cont.)
 Entrepreneurs need to understand and comply

with the provision of OSHA.
 Furthermore, implementing OSH helps to:
– avoid accidents at workplace,
– avoid costly medical related expenses,
– minimize employees and their families’
physiology and psychological distress, and
– helps to avoid severe legal implications.

Employment Laws
 As business owners, entrepreneurs need to manage

the relationship between employees and the
organization.
 The entrepreneur is advised to follow statutory
requirement to avoid being charged, found guilty and
subsequently required to pay compensation to the
employee or fined by the Human Resources
Department.

Employment Laws
 There are specific Employment Laws stipulations

outlined regarding:
– rest days, – termination of employee’s
– holidays, services, types of
– annual leave, disciplinary action and
recommended approaches
– sick leave,
to disciplinary action.
– permissible work hours,
– maternity leave and allowances,
– employment of foreign workers,

Summary
 As the business grows, an entrepreneur needs to

understand and apply the functions of human
resources management (HRM) inter alia, human
resources planning, conduct job analysis,
recruitment and selection, training and
development, performance management,
compensation and benefits, safety and health, and
employment laws.
 All these are important elements for the prosperity
and survival of the business.


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1

This chapter introduces students to the basics of

Introduction to Entrepreneurship All Rights Reserved

The objectives of this chapter are:

Introduction to Entrepreneurship All Rights Reserved

At the end of this chapter, students should be able

Introduction to Entrepreneurship All Rights Reserved

 Human Resources Planning

Introduction to Entrepreneurship All Rights Reserved

 An entrepreneur will want good, skilful and

Introduction to Entrepreneurship All Rights Reserved

Introduction to Entrepreneurship All Rights Reserved

 When an entrepreneur launches a new business, his

Introduction to Entrepreneurship All Rights Reserved

Introduction to Entrepreneurship All Rights Reserved

 Job analysis is the process of gathering

Introduction to Entrepreneurship All Rights Reserved

 This information will be used to write:

Introduction to Entrepreneurship All Rights Reserved

 Companies recruit and select new staff either for

 The next process is selection which involves the

Introduction to Entrepreneurship All Rights Reserved

 An entrepreneur will have to identify the type of

Introduction to Entrepreneurship All Rights Reserved

 In order to help firms achieve their goals an organisation

 Compensation and benefits are ways used by

 The importance of occupational, safety and health

Introduction to Entrepreneurship All Rights Reserved

 Entrepreneurs need to understand and comply

Introduction to Entrepreneurship All Rights Reserved

 As business owners, entrepreneurs need to manage

Introduction to Entrepreneurship All Rights Reserved

 There are specific Employment Laws stipulations

Introduction to Entrepreneurship All Rights Reserved

 As the business grows, an entrepreneur needs to

Introduction to Entrepreneurship All Rights Reserved

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