CHAPTER 1: INTRODUCTION

TO HR MANAGEMENT
CHAPTER OUTLINES
Key terms and concepts
Introduction to human resources management
HRM functions
Competencies of the Human Resources Manager
Stakeholders in HRM
Environmental Factors and HRM
Competitive Challenges and HRM
HRM and Technology
HRM Practices in Malaysia
KEY TERMS AND CONCEPTS

Management: HRM: HRM activities:

Process of employing
people, training them,
HRP, Job Analysis,
compensating them,
Recruitment, Selection,
P,O,L,C developing policies
Training, Performance
relating to them, and
Appraisal, Reward
developing strategies to
retain them. 
 Performance
HRP Job Analysis Recruitment Selection Training Reward
Appraisal

Forecasting HR Monetary and

4 Process of
Requirement Job Description Internal Person Job-Fit The Appraiser Non-monetary
Training
(DD) Reward

Mandatory and
Forecasting HR Person 3 Methods of
Job Specification External Non Mandatory
Availabilities (SS) Organization-Fit Appraisal
Reward

Balancing DD & 9 Process of

6 Process of JA Alternatives
SS Selection
 INTRODUCTION TO HUMAN RESOURCES
MANAGEMENT
 Getting things done through people
 People: most valuable
 Understand behavior & knowledgeable: system, practices,
motivated people
 Respond to the external environment: Economy, Social,
Technology, Political
Competitive Challenges Human Resources Employee Concerns
• Globalization Activities • Background Diversity
• Technology • Planning • Age Distribution
• Managing change • Job Analysis • Gender Issues
• Human capital • Recruitment • Educational levels
• Responsive • Selection • Employee rights
• Cost Containment • Orientation • Work Attitudes
• Training & Development • Family Concerns
• Performance Appraisal
• Rewards
• Labor Relations
 COMPETENCIES OF THE HUMAN
RESOURCES MANAGER

Business Change Learning

HR Mastery
Mastery Mastery Proficiencies

Know issues related to

Establish personal
employees: staffing,
Understanding economy Manage change process: credibility: demonstrate
development, appraisal,
and financial capabilities creativity and innovation value, belief, culture, fair,
reward, team,
trust
communication

e.g. Robotics to reduce e.g.: influence/ convince e.g.: reduce/ eliminate

e.g.: Ability to conduct
cost of operation, conduct to reduce resistance to discrimination, role
training, selection etc.
on-the job training change model
STAKEHOLDERS IN HRM
Employer Employees Government

Set rules and regulations

Employ, train, develop
Hired based on KSA to ensure harmony and
employees
peaceful labor market

Introduce Employment
Increase talent and
Perform duties Act 1955, Trade Union
capabilities of employees
Act 1959 etc.

Rewarded based on
performance, experience,
seniority
 ENVIRONMENTAL FACTORS AND HRM

Internal External

• Factors that can • Factors that can

influence influence
HRM HRM
• Within the • Not within the
control of HR control of HR
Manager Manager
 ENVIRONMENTAL FACTORS AND HRM
Internal Factors
• Workers: workers fits with job and
working environment
• Work system: acceptable to everyone
• Style of management: top-down,
bottom-up
• Corporate culture: workers understand
organizational culture
• Organizational vision and mission:
communicate to workers
• Cost of production: achieve high
performance and productivity
• Leadership: role model
External Factors
• Economy: ups and down
• Technology: hoe to cope rapid changes
• Competition: impact of increasing numbers
of competitor
• Globalization: going global to sustain
• Government: impact of legal aspect
• Trade union: strength of collective
bargaining
• Labor market: issues od demand and
supply of workers
Going Global

COMPETITIVE CHALLENGES
AND HRM
Embracing technology
Managing change
Developing human capital
Responding to the market
Containing cost
Demographics changes
 Competitive Challenges and HRM
• Seeking business opportunity

Going Global • HRM manage diversity of workforce

• Challenges: Difficulty to manage people from different background/
culture

Embracing • Respond to the new technology, Connect using virtual communication,

robotics

technology
• Challenges: difficulty to match between people and machineries/ tools/
systems

Managing • In competitive environments, Lead to organizational changes

• Challenges: difficulty to minimize resistance to change, difficulty to
change encourage people
 COMPETITIVE CHALLENGES AND HRM
Developing human • Plan to develop and train employees
• To create knowledgeable, committed and loyal employees

capital
• Challenges: difficulty to determine the best training program, to ensure training effectiveness,
training cost

Responding to the • Meet customer expectation, TQM, reengineering

market
• Challenges: difficulty to focus various aspects

Containing cost • Cut cost, increase productivity, Implement downsizing, outsourcing, employees leasing
• Challenges: difficulty to enhance employees satisfaction & motivation

Demographics • Concern about the changes of the employees, Gender, level of education, age, cultural

changes
• Challenges: difficulty to find a right match between people & expectation
 HRM AND TECHNOLOGY

• Intranet-based employee portal: self

Benefits of
services HR transaction
technological • Call center: HR specialist
applications for • Increase efficiency HR operation
HR • Data warehouse
Role of the Ministry of Human Resources

The Ministry:
 Sets policies
 Prepares draft employment legislation, and
 Enforces the employment legislation
 HRM PRACTICES IN MALAYSIA
 Vision  
 "To be the leading agency in the development
and management of a World Class Workforce."  caring and responsive to the changing labor environment towards
Mission 
 To develop a workforce that is productive, informative, discipline,
increasing the economic growth and hence create more job
opportunities.
 To encourage and maintain conducive and harmonized industrial
relation between employers, employees and trade unions for the
nation's economic development and wellness of people.
 To uphold social justice and ensure harmonious industrial relations
through solving industrial dispute between employer and employee
and awarding collective agreement.
 To ensure trade unions practice democracy, orderly and is
responsible to assist achieving the objective of industrial harmony.
 To be the leader in development of nation's human resources.
 To ensure safety and health of workforce is assured.
 To develop skilled, knowledgeable and competitive workforce in a
harmonious industrial relations with social justice.
 Organization Chart
Ministry of Human Resources
Ministry of
Human
Resources

Department Department Department

Department
of Trade of Industrial of Occupational
of Labour
Union Affairs Relations Safety and Health

Department
of Manpower

Department
of Skills
Development
 Other Organizations of Relevance
to HRM

The Social Security Organization

Pembangunan Sumber Manusia Bhd.

National Institute of Occupational
Safety and Health

Skill Development (Loan) Fund Corporation

The Employees Provident Fund