CHAPTER 1 - OVERVIEW OF HUMAN RESOURCE MANAGEMENT

1. CHAPTER 1 - OVERVIEW OF HUMAN RESOURCE MANAGEMENT

2. KEY CONCEPTS AND SKILLS • Functions of human resource management • Changes that have taken place in HR management • Role and structure of the Ministry of Human Resources in Malaysia • Key roles of human resource department • Functions of human resource departments in different organisations • Importance of managing workforce diversity and implications • Challenges facing human resource management in Malaysia

3. CHAPTER OUTLINE • What is human resource management? • Changes in human resource management: from personnel management to HR management • Role and structure of the Ministry of Human Resources • Objectives of human resource management • Key roles for human resource departments • Human resource function in different organisations • Activities carried out under a well-organised human resource department • Managing workforce diversity • Challenges facing human resource management

4. WHAT IS HUMAN RESOURCE MANAGEMENT? • The utilisation of human resources to achieve organisational objectives • Involves development and implementation of systems that make the best use of human resources • The concern of all managers at all levels • Success of line managers depends on their skills in managing and motivating those who report to them • Human resource manager’s primary responsibility is to co-ordinate the management of human resources to help organisation achieve its objectives • Should be a catalyst in proposing human resource management policies that should be implemented by the line managers

5. CHANGES IN HUMAN RESOURCE MANAGEMENT IN MALAYSIA • In 1963, the Malaysian economy was mainly based on primary commodities • During 1970’s industrialisation began with opening of industrial zones in Shah Alam in Selangor and Bayan Lepas in Penang • Many foreign multi-national companies attracted by the low cost of labour and the availability of an educated workforce

6. CHANGES IN HUMAN RESOURCE MANAGEMENT IN MALAYSIA • During early years, emphasis was for legal compliance and maintaining discipline • Little emphasis on proper management of human resources • Human resources managed by personnel manager, someone low in the hierarchy • Job of personnel manager confined to wages, welfare, hiring when asked to do so, and record keeping • That was the past

7. Changes in HRM in Malaysia • Some of the changes in Malaysia over the last fifty years include the following: • The growth of organisations • A better educated workforce • A more diversified workforce • More women in the workforce

8. Implications for Human Resource Manager • Must be more professional approach to management of human resources • Trend in business world today is increasing respect and responsibility given to human resource managers • Professional HR manager expected to provide direction and guidance necessary to meet the challenges and problems of human resources in future • Expected to monitor environment of business and study trends so organisation can take positive actions to respond

9. Implications for Human Resource Manager • With emphasis on improving productivity, HR manager today has a positive and key role in improving productivity • Modern HR manager is a business partner helping to contribute to bottom-line

10. ROLE AND STRUCTURE OF MINISTRY OF HUMAN RESOURCES MALAYSIA • Tasked with being the leader in developing and managing a world-class workforce in Malaysia • Sets policies, prepares draft legislations and amendments to current legislations, enforces employment legislation, and establishes codes of practices as guidelines for employers and employees • Mission statement = “to develop a competitive workforce in an environment of industrial harmony and social justice.”

11. Departments, Statutory Bodies and Companies under Ministry of Human Resources 1. Labour Department 2. Industrial Relations Department 3. Industrial Court of Malaysia 4. Trade Union Affairs Department 5. Occupational Safety and Health Department 6. Manpower Department 7. Department of Skills Development 8. National Institute of Human Resources 9. Social Security Organisation 10. Skill Development Fund Corporation 11. Human Resource Development Berhad 12. National Institute of Occupational Safety and Health

12. OBJECTIVES OF HUMAN RESOURCE MANAGEMENT Main objectives of HR management are: 1. To attract potentially qualified people to apply to the organisation 2. To retain productive employees 3. To motivate employees

13. KEY ROLES FOR HUMAN RESOURCE DEPARTMENTS If human resource department performs its roles effectively, will have a major effect on: • Improving organisational productivity • Enhancing the quality of work life • Complying with all the necessary laws and regulations related to effective human resource use

14. Four Key Roles for H R Departments

15. HUMAN RESOURCE FUNCTION IN DIFFERENT ORGANISATIONS • Function depends on size of organisation • Small organisation probably no HR department and functions of HR placed under administration or finance manager • As organisation grows, a separate unit or department headed by an officer or a manager may be formed with a clerk to assist • As organisation grows further, separate sections like employment, training, compensation, employee relations, and safety may be created • In very large organisations, human resource function may become a division headed by a director with specialist human resource section managers

16. ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT Head of Department • Establishing human resource policies • Productivity improvement programmes • Advising top management

17. ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT Employment • Human resource planning • Recruitment • Selection • Career development • Succession planning • Termination • Exit interviews

18. ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT Training and Development • Orientation training • Supervisory and management training and development • Educational assistance programmes • Skills or operations training • Performance appraisal

19. ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT Compensation and Benefits • Wage and salary structures • Benefits programme • Payroll and deductions • Incentive schemes

20. ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT Employee Services • Canteen • Hostel • Transport • Uniforms • Sports and recreational activities

21. ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT Industrial Relations • Maintaining relationships with the employees’ union • Grievance handling • Counselling and disciplining • Collective bargaining • Handling industrial actions • Dismissals, conciliation, and arbitration

22. ACTIVITIES CARRIED OUT UNDER A WELL-ORGANISED H R DEPARTMENT Safety and Health • Safety programmes • Health programmes • Wellness programmes • Accident investigation • Personal protective equipment • Sexual harassment • Prevention of violence in the workplace

23. MANAGING WORKFORCE DIVERSITY What is Workforce Diversity? • Refers to the way in which people in the workforce are different from one another • Differences encompass ethnic and religious differences to age, gender, education level, language skills, physical abilities, and even physical appearance

24. MANAGING WORKFORCE DIVERSITY Why Managing Workforce Diversity is Important? • Managing workforce diversity = the introduction and implementation of policies and practices that seek to include people within a workforce who are considered to be, in some way, different from those of the majority • Advantages to having a diversified workforce: • Ideas • Social Responsibility • Source of Human Resources • Adequate Manpower for Public Holidays • Marketing Strategy • Business Communications

25. The Malaysian Workforce • The workforce in Malaysia is very diverse, with people of different ethnic and religious backgrounds working together in organisations • Also an estimated two million foreign workers • Another aspect is the proportion of women • One other major factor is age where number of young and better educated people, referred to as Generation Y, entering the workforce is increasing • One often forgotten group is the disabled

26. MANAGING WORKFORCE DIVERSITY Implications for the HR manager • Objective should be to make diversity an asset and to create a work environment where employees can work together with their colleagues regardless of backgrounds at the same time promoting teamwork and enhancing working relationships • HR manager may consider recommending that top management approve a non-discrimination policy • Managing diversity effectively done through training, and recruitment and selection

27. CHALLENGES FACING HUMAN RESOURCE MANAGEMENT • Reducing employee feelings of not being part of the organisations • Increasing human creativity and productivity • Expanded roles for the human resource manager in helping the organisation to meet its ever-increasing social responsibility • Expanded human resource manager roles in designing organisations