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CHAPTER
1
AN OVERVIEW OF HUMAN
RESOURCE MANAGEMENT

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PREVIEW

 The importance of human resource management.

 The growth of the human resource function from the mid-19th
century until today.
 The impact of current social, business and economic changes on
human resource management.
 The structure of the human resource function in organizations.
 The requirements for a career in human resource management.
 The functions within the scope of human resource management.
 The role and structure of the Ministry of Human Resources.
 The purpose of each of the most important labour laws.

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WHAT IS HUMAN RESOURCE
MANAGEMENT?

Human resource management is the

development and implementation of
systems in an organization for
attracting, developing and retaining
a high-performing workforce.

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OTHER TITLES FOR
HRM SPECIALISTS

 Welfare Officer
 Personnel Manager
 Human Resource Manager
 Human Capital Management

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HISTORICAL FACTORS
IMPACTING HRM

The Industrial Revolution 1850s–1920s

 Specialization
 Exploitation of workers
 Worker alienation

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HISTORICAL FACTORS
IMPACTING HRM (cont.)

Human Relations Approach 1930s–1950s

 Emphasis on supervisory training

 Recreation programmes
 Welfare programmes

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HISTORICAL FACTORS
IMPACTING HRM (cont.)

Recent developments 1950s–2020

 Increased labour legislation

 Organizations getting bigger
 Increasing workforce diversity
 Rapid changes

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CHANGES AFFECTING HRM

 Technological changes

 Globalization and increased competition

 Employee education and expectations

 Workforce diversity

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USEFUL MALAYSIAN
STATISTICS
Population: 28 million
Current labour force employed: 12 million
Unemployment rate: 3.9%
Number of foreign workers: 1.8 million
Number of employers registered with
the Employees Provident Fund: 395,000
Life expectancy (Males): 71.8 years
Life expectancy (Females): 76.3 years

Source: Ninth Malaysia Plan: www.kwsp.com.my; www.mef.org.my; www.statistics.gov.my

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DO ALL ORGANIZATIONS HAVE
AN HRM DEPARTMENT?

NO!
What are the criteria for an organization to
have a dedicated HRM department?
 Ownership of the company
 Philosophy of top management
 Size of the company
 Unionization of the workforce

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HUMAN RESOURCE
MANAGEMENT IS A SHARED
FUNCTION
 In organizations with an HRM Department,
the function of HRM is shared between this
department and ALL managers and
supervisors.
 Sharing leads to conflict.
 Agreement must be made so that tasks and
duties are clearly assigned.

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PERSONAL QUALITIES AND
SKILLS REQUIRED OF HRM
SPECIALISTS
 Communication skills
 Ability to bring about change
 Information technology (IT) savvy
 Numerate and able to analyse data
 Ability to understand the business context
 High ethical standards
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FUNCTIONS OF THE
HR DEPARTMENT

Employment
 Human resource planning
 Setting policies and administering
disciplinary action systems
 Recruitment

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FUNCTIONS OF THE
HR DEPARTMENT (cont.)

 Establishing career movement policies,

including transfers and promotion
 Terminating employees
 Liaison with Immigration and Labour
Department
 Records keeping

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FUNCTIONS OF THE
HR DEPARTMENT (cont.)

Training and Development

 Holding induction programmes
 Providing skills training
 Organizing supervisory and management
development programmes
 Establishing and administering performance
management and appraisal systems

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FUNCTIONS OF THE
HR DEPARTMENT (cont.)
Payment/Reward Systems

 Developing a wage structure

 Preparing information for payroll
 Establishing incentive schemes
 Advising on benefits

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FUNCTIONS OF THE
HR DEPARTMENT (cont.)
Health and Safety
 Organizing safety programmes
 Establishing wellness programmes
 Accident investigation
 Provision of health services
 Establishing programmes to prevent sexual
harassment and violence
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FUNCTIONS OF THE
HR DEPARTMENT (cont.)

Employee Services/Welfare

 Overseeing canteen facilities

 Provision of transport
 Provision of recreation facilities
 Counselling
 Managing employee assistance programmes

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FUNCTIONS OF THE
HR DEPARTMENT (cont.)
Productivity Improvement Schemes
 Establishing and maintaining quality
improvement initiatives, including ISO
programmes.
 Introduction and implementation of
suggestion schemes, team problem-solving
activities, Kaizen tools and other similar
programmes.
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FUNCTIONS OF THE
HR DEPARTMENT (cont.)

Industrial Relations
 Grievance handling
 Relations with trade union representatives
 Collective bargaining negotiations
 Preparing for contingencies, including strike
action

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ROLE OF THE MINISTRY OF
HUMAN RESOURCES

The Ministry:
 sets policies,
 prepares draft employment legislation, and
 enforces the employment legislation.

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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

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OTHER ORGANIZATIONS OF
RELEVANCE TO HRM

The Employees Social Security Organization

Pembangunan Sumber Manusia Bhd

National Institute of Occupational

Safety and Health

Skill Development (Loan) Fund Corporation

The Employees Provident Fund

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THE EMPLOYMENT LAWS

 The Employment Act 1955

 The Sabah Labour Ordinance, updated 2005
 The Sarawak Labour Ordinance, updated
2005
 The Wages Councils Act 1947
 The Employees Provident Fund (EPF) Act
1991

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THE EMPLOYMENT LAWS (cont.)

 The Employees Social Security Act

(SOCSO) 1969
 The Occupational Safety and Health Act
(OSHA) 1994
 The Factories and Machinery Act 1967
 The Children and Young Persons
(Employment) Act 1966
 The Employment (Restriction) Act 1968
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THE EMPLOYMENT LAWS
(cont.)
 The Trade Unions Act 1959
 The Industrial Relations Act 1967
 Pembangunan Sumber Manusia Bhd Act
2001
 The Skills Development Fund Act 2004
 The National Skills Development Act 2006

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REVIEW

 The importance of human resource management.

 The growth of the human resource function from the mid-19th
century until today.
 The impact of current social, business and economic changes on
human resource management.
 The structure of the human resource function in organizations.
 The requirements for a career in human resource management.
 The functions within the scope of human resource management.
 The role and structure of the Ministry of Human Resources.
 The purpose of each of the most important labour laws.

HRM Principles & Practices (Second Edition) All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2011 Chapter 1 – 28