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CHAPTER 1 THE HUMAN RESOURCE MANAGEMENT FUNCTIONS

CHAPTER 1 THE HUMAN RESOURCE MANAGEMENT FUNCTIONS. WHAT IS HRM?. Activities and practices to plan for, attract, select, develop and retain human resources, to achieve the organization’s goals

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CHAPTER 1 THE HUMAN RESOURCE MANAGEMENT FUNCTIONS

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  1. CHAPTER 1THE HUMAN RESOURCE MANAGEMENT FUNCTIONS

  2. WHAT IS HRM? • Activities and practices to plan for, attract, select, develop and retain human resources, to achieve the organization’s goals • The objective is to determine the best use of the talent and skills available to accomplish the organizational goals

  3. AREAS IN HRM • HR Utilization • Recruitment • Selection • Placement • Appraisal • Compensation • Workplace planning

  4. AREAS IN HRM • HR Development • Education • Training • Development • HR Environment • Job enrichment • Job enlargement • Organization development

  5. GROWTH OF HR FUNCTION • Industrial Revolution • Human Relations Approach • Recent Development

  6. HRM FUNCTIONS • Human resource planning • Recruitment • Selection • Compensation & benefits • Performance appraisal • Training and development • Employee relations • Safety & health

  7. CHANGING TRENDS IN HRM • Technological changes • Globalization and increase competition • Employee education and expectation • Workforce diversity • Useful statistics

  8. HR DEPARTMENT • To support managers’ HR responsibilities • Help the organization to meet its objectives by designing HR programs • Managers and the HR Department need to work together

  9. FUNCTIONS OF HR DEPT. • Employment • Training and Development • Payment / Reward Systems • Health and Safety • Employee Services / Welfare • Productivity Improvement Schemes • Industrial Relations

  10. FACTORS INFLUENCE HR DEPT. • Size of organization • Unionization of the workplace • Ownership of the company • Philosophy of top management

  11. CHALLENGES IN HRM • Environmental challenges • Organizational challenges • Individual challenges

  12. ENVIRONMENTAL CHALLENGES • Rapid change • Work force diversity • Globalization • Legislation • Evolving Work and Family Roles • Skills shortages and the Rise of the Service Sector

  13. ORGANIZATIONAL CHALLENGES • Competitive position: cost, quality, distinctive capabilities • Decentralization • Downsizing • Organizational restructuring • Self-managed work teams • Small businesses • Organizational culture • Technology • Outsourcing

  14. INDIVIDUAL CHALLENGES • Matching people and organization • Ethical dilemmas and social responsibility • Productivity • Empowerment • Brain drain • Job insecurity

  15. LABOUR LAWS AND ENFORCEMENT • The Employment Act 1955 • The Sabah Labour Ordinance • The Sarawak Labour Ordinance • The Wages Councils Act 1947 • The Employees Provident Fund Act 1991 • The Workman’s Compensation Act 1952 • The Employees Social Security Act 1969

  16. LABOUR LAWS AND ENFORCEMENT • The Occupational Safety and Health Act 94 • The Factories and Machinery Act 1967 • The Children and Young Persons Act 1966 • The Employment (Restriction) Act 1968 • The Trade Unions Act 1959 • The Industrial Relations Act 1967 • Pembangunan Sumber Manusia Bhd. Act 01 • The Skills Development Fund Act 2004 • The National Skills Development Act 2006

  17. CHAPTER 2PLANNING THE ORGANIZATION’S HUMAN RESOURCES

  18. HR PLANNING PROCESS • Process of reviewing and identifying future human resource needs of an organization • HR planning helps managers reduce uncertainty about future • To ensure that the required number of qualified employees is available at the right time

  19. HR PLANNING PROCESS • Labour demand • Product demand • Labour productivity • Labour supply • Internal labour market • External labour market

  20. HR PLANNING PROCESS • Labour demand exceeds labour supply • Labour supply exceeds labour demand • Labour demand equals labour supply

  21. HR FORECASTING TECHNIQUES • Quantitative techniques • Trend analysis • Qualitative techniques • Management forecast

  22. HR INFORMATION SYSTEM • Systems used to collect, record, store, analyze and retrieve data concerning an organization’s human resources • Contains computer hardware and software applications that work together to help managers make HR decisions

  23. HR INFORMATION SYSTEM • Employees • Applicant tracking • Skills inventory • Payroll • Benefits administration

  24. HRIS SECURITY AND PRIVACY • Limit access to HRIS by controlling access to the computer and its data files • Use passwords and special codes • Grant permission to access employees information only on a need-to-know basis • Develop polices and guidelines • Allow employees to examine their personal records

  25. RECRUITMENT PROCESS • Recruitment is the process of attracting suitable people to apply for job vacancies • Attracting applicants • Internal • Employee audit or inventory • Job posting and bidding

  26. RECRUITMENT PROCESS • Attracting applicants • External • Employment agencies and consultants • Campus recruitment exercise • Employee referrals • Unsolicited applicant files • Advertising in the mass media • Recruitment through the internet

  27. INTERNAL RECRUITMENT • Advantages: • Employment record of applicant available • No induction needed • Little or no cost involved • Employees’ morale and motivation increased • Disadvantages: • Filling a vacancy may lead to a more gap • No suitable candidates • Supervisors may be reluctant to release key employees

  28. EXTERNAL RECRUITMENT • Advantages: • Avoid inbreeding • Possible to widen choice of applicants by having a pool of candidates • Disadvantages: • High costs of recruitment process • Frustration amongst existing employees

  29. SELECTION PROCESS • The process of choosing the most suitable applicant from a group of applicants, for an available vacancy • Collect information of applicants • Each applicant will be assessed

  30. TECHNIQUES FOR COLLECTING INFORMATION ON APPLICANTS • Applicants form and CV • Reference check • Selection tests • Performance tests • Aptitude tests • Personality tests • Intelligence tests • Medical tests

  31. TECHNIQUES FOR COLLECTING INFORMATION ON APPLICANTS • Selection interviews • Planning the interview • Conducting the interview • After the interview • Assessment Centre Activities • Exercises • Social events

  32. RECRUITMENT AND SELECTION PROCESS • Make decision to recruit new employee • Conduct job analysis • Source for applicants • Collect information on applicants • Select most suitable applicant • Offer employment to successful applicant • Hold induction once employee reports for duty

  33. ISSUES AND PROBLEMS RELATING TO RECRUITMENT AND SELECTION • Nepotism • Employment of children • Hiring older workers • Discrimination in recruitment and selection • Employment of foreigners

  34. MAKING A JOB OFFER • Contract of employment • Implied terms of a contract of employment • Express terms in a contract of employment • Changing the terms in a contract of employment • Types of employment contract

  35. INDUCTION • Purpose of induction • Contents of a formal induction programme • Organizing the induction programme • Scheduling of induction • Duration of an induction programme • Ensuring the effectiveness of an induction programme • Potential problems relating to induction programme

  36. CHAPTER 3JOB ANALYSIS

  37. JOB ANALYSIS • Technique of studying a job to identify the skills, knowledge, experience and other requirements necessary to perform the job • Identifies the tasks, duties and responsibilities of a particular job • Should be re-analyzed on a regular basis

  38. CONDUCTING JOB ANALYSIS • Determine the desired applications of the job analysis • Select the jobs to be analyzed • Gather the job information • Verify the accuracy of the job information • Document the job analysis by writing a job description

  39. TYPES OF JOB ANALYSIS • Interview • Observation • Diaries • Questionnaires

  40. JOB ANALYSIS METHOD • Task Inventory Analysis • Critical Incident Technique • Position Analysis Questionnaire • Functional Job Analysis

  41. JOB DESCRIPTION • A written profile of a job • The process of preparing job descriptions helps to identify unnecessary tasks, overlapping responsibilities and even the existence of functions for which no one has responsibility

  42. JOB DESCRIPTION • Job title, location and grading • Relationships • Brief statement on the purpose of the job • List of duties and responsibilities • Terms and conditions of employment to be given to the job-holder • Negative aspects of the job

  43. JOB SPECIFICATION • Also known as person specification or worker characteristics • Describe the profile of a person who should be able to succeed in the job and will guide the recruitment officer to the best candidate

  44. JOB SPECIFICATION • Knowledge, skills and abilities required to do the job • Educational qualifications and work experience required • Physical requirements of the job • Personality requirements • Career path

  45. CHAPTER 4COMPENSATION AND BENEFITS

  46. WHAT IS COMPENSATION? • Total compensation has three components: • Base compensation • Pay incentives • Indirect compensation benefits

  47. DESIGNING A COMPENSATION SYSTEM • Internal vs External Equity • Fixed vs Variable Pay • Performance vs Membership • Job vs Individual Pay • Egalitarianism vs Elitism • Below-market vs Above-market Compensation • Monetary vs Nonmonetary Awards • Open vs Secret Pay • Centralization vs Decentralization of Pay Decision

  48. COMPENSATION TOOLS • Job-based compensation plans • Skill-based compensation plans

  49. WAGE SYSTEMS • Time-related systems • Piece-rated systems

  50. FACTORS AFFECTING LEVELS OF PAY • Legislation and government policy • Unions • Selection policy • Employment conditions • Company profitability

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