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 The objective is to determine the best use of the talent and skills available to accomplish the organizational goals

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

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

GROWTH OF HR FUNCTION Industrial Revolution Human Relations Approach Recent Development

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

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

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

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

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

CHALLENGES IN HRM Environmental challenges Organizational challenges Individual challenges

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

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

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

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

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

CHAPTER 2 PLANNING THE ORGANIZATION’S HUMAN RESOURCES

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

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

HR PLANNING PROCESS Labour demand exceeds labour supply Labour supply exceeds labour demand Labour demand equals labour supply

HR FORECASTING TECHNIQUES Quantitative techniques Trend analysis Qualitative techniques Management forecast

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

HR INFORMATION SYSTEM Employees Applicant tracking Skills inventory Payroll Benefits administration

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

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

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

INTERNAL RECRUITMENT Advantages: Disadvantages: 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

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

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

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

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

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

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

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

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

CHAPTER 3 JOB ANALYSIS

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

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

TYPES OF JOB ANALYSIS Interview Observation Diaries Questionnaires

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

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

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

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

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

CHAPTER 4 COMPENSATION AND BENEFITS

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

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

COMPENSATION TOOLS Job-based compensation plans Skill-based compensation plans

WAGE SYSTEMS Time-related systems Piece-rated systems

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

FACTORS AFFECTING INDIVIDUAL LEVELS OF PAY Seniority Increase in the cost of living Performance Degree of skill

CONDITIONS OF EMPLOYMENT Working hours Rest days Public holidays

WORKING HOURS SYSTEM Normal working hours Overtime working Shift work systems Alternative working hours scheduling Teleworking and homeworking

EMPLOYEE BENEFITS Group membership rewards that provide security for employees and their family members Sometimes called indirect compensation Protect employees from risks that could jeopardize their health and financial security

WHY PROVIDE BENEFITS? Statutory required Attract staff to join the organization Retain existing employees Increase morale of employees

CLASSIFICATION OF BENEFITS Protection programmes Paid time-off Accommodation and enhancement benefits

DESIGNING A BENEFIT SCHEME Eligibility and waiting periods Kinds of benefits Level of benefits Financing of the benefits Fixed package or employee choice Communication

STATUTORY BENEFITS Maternity protection Time-off payments EPF Act A weekly rest day Public holidays Annual leave EPF Act Employees Social Security Act

NON-STATUTORY BENEFITS Time-off payments Health care Insurance Financial services Subsidies and service Retirement benefits Allowances Educational fee assistance

TRENDS IN BENEFIT PACKAGES Awareness and desirability of benefits Align benefits to strategic objectives Cafeteria benefit schemes Issues related to benefits

REWARD SYSTEMS Non-financial rewards Financial rewards Performance awards Letters of appreciation Sponsorship to seminars, conferences and overseas tours Rewards for long service Financial rewards Salary increases Bonus and profit sharing Rewards for salespeople (commissions)

CHAPTER 5 PERFORMANCE APPRAISAL

DEFINITION Performance appraisal involves: Identification Measurement Determining what areas of work the manager should be examining when measuring performance Measurement Making managerial judgements of how ‘good’ or ‘bad’ employee performance Management The overriding goal of any appraisal system.

USES OF PERFORMANCE APPRAISAL Administrative process Developmental process

FACTORS INFLUENCE EMPLOYEE’S PERFORMANCE Knowledge and skills Motivation Work environment

SOURCES OF INFORMATION IN APPRAISAL The employee Employee’s manager Employee’s co-workers Employee’s subordinates Customers / Clients

EMPLOYEE PERFORMANCE MANAGEMENT SYSTEM Objective setting Implementation of work and monitoring Appraisal of the individual workers Follow-up action

PERFORMANCE APPRAISAL PROCESS Interview Opening Begin discussion Counselling Non-directive counselling Advice giving Information giving Teaching and coaching

BENEFITS OF PERFORMANCE APPRAISAL Employer perspective Individual differences in performance can make a difference to company performance May be needed for legal defense Provides a rational basis for constructing bonus Can help to implement strategic goals Providing individual feedback Can include teamwork and teams

BENEFITS OF PERFORMANCE APPRAISAL Employee perspective Performance feedback is needed and desired Improvement in performance requires assessment Differences in performance levels across workers be measured and have an effect on outcomes Can motivate workers to improve performance

PROBLEMS IN PERFORMANCE APPRAISAL Rater errors and bias Influence of liking Organizational politics Individual or group focus Legal issues

PROBLEMS IN PERFORMANCE APPRAISAL Recent effect Halo effect Central tendency Prejudice and stereotype Fatigue

EFFECTIVE PERFORMANCE APPRAISAL Conduct appraisal in private Allow enough time for employee to discuss issue Refer to performance not individual Provide specific not general behaviour Give feedback in a good manner Avoid loaded terms which produce emotional reactions

CHAPTER 6 TRAINING AND DEVELOPMENT

DEFINITION OF TRAINING Organizational activity which aims to improve an employee’s current performance The attempt by an organization to change employees through the learning process Training programmes are designed to change attitudes, develop skills or impart knowledge

WHAT WILL HAPPEN IF NO FORMAL TRAINING? Learning on the job will take longer Costs of wasted materials, sales and customers lost Management time cost taken Lowered morale, demotivated Accident-related costs High turnover

BENEFITS OF TRAINING Increase worker’s productivity Increase worker’s job satisfaction Keeps worker’s skills and knowledge up-to-date Helps to motivate workers

SYSTEMATIC TRAINING Identify training needs Set training objectives Design training programme Implement training programme Evaluate training programme

TRAINING NEEDS AND TRAINING PLANS Individual workers face difficulties in performing job satisfactorily New workers are recruited New technology and procedures are introduced Individuals are transferred or promoted Major change in the organization

DESIGNING TRAINING PLANS Identify a performance problem Decide whether the problem is serious enough Identify the cause of the problem Generate alternative solutions to the problem Choose the best solution and implement

SET TRAINING OBJECTIVES Purpose of training is to improve employee’s abilities and performance on the job Consists of three parts: Terminal behaviour Standards to be achieved Conditions of performance

DESIGN TRAINING PROGRAMME Facilitators Venue Duration and scheduling of programme Number of participants Training methods Logistics Budget

EVALUATING TRAINING AND DEVELOPMENT Trainees’ responses Trainee learning Application of new skill and knowledge Assessing the results

LEARNING PRINCIPLES The learner must want to learn Active or passive learning Feedback or knowledge of results Learning is faster in teams

CHAPTER 7 EMPLOYEE RELATIONS

UNDERSTANDING EMPLOYEE RELATIONS Good employee relations involve providing fair and consistent treatment to all employees To foster good employee relations, managers must listen to and understand what employees are saying and experiencing

UNDERSTANDING EMPLOYEE RELATIONS Effective employee relations require cooperation between managers and employee relations representatives ERR will try to ensure that company policies and procedures are followed and advise both supervisors and employees on specific employee relations problems

TRADE UNIONS A group of seven or more workers can form a trade union Application for registration with DG of Trade Unions The application form must be signed by all members Send together with the union’s constitution The important criterion for a union to be registered is its intended member

TRADE UNIONS All workers above 16 years have the right to join an appropriate union Workers between 16 and 21 have lesser rights to participate in union activities Specified groups of workers are restricted from joining trade unions

TYPES OF UNIONS National and regional unions In-house unions Employer’s associations

ROLE OF TRADE UNIONS Protect their members’ right Will take action to stop such unfair practices Advise members on their right Encouraging government to pass legislation Introduce policies Three-pronged approach: Individual employers National issues Individual members

COLLECTIVE BARGAINING The process whereby employers and employees negotiate over the terms and conditions on employment Union is required by law to gain formal recognition from the employer before any negotiation can be made

COLLECTIVE BARGAINING One of the main functions of trade unions The best method of regulating the terms and conditions of employment Once an agreement is reached between the two parties, there will be no discrimination between them

COLLECTIVE BARGAINING May be carried out between an individual employer and a trade union of employees Or between the union of employees and the union of employers This process is regulated by the Industrial Relation Act

COLLECTIVE AGREEMENTS Written agreement between an employer and a trade union relating to terms and conditions of employment Agreement must specify their duration, not less than three years Must be deposited with Industrial Court Most agreements include clauses on wages, working hours and other benefits to be given to the workers

INDUSTRIAL ACTION Picket Strike Lockout

SETTLEMENT OF INDUSTRIAL DISPUTES Conciliation Arbitration

EMPLOYMENT LAWS Employment Act Industrial Relations Act

DISCIPLINE Penalties in a disciplinary system Oral warning First written warning Final written warning Suspension without pay Suspension of increment Demotion or downgrading Dismissal

EMPLOYEE PROBLEMS Transfer Promotion of employees Grievance handling Absenteeism of workers

TERMINATION OF EMPLOYEE’S CONTRACT OF EMPLOYMENT Role of Industrial Court Resignation Expiry of fixed-term contract Retirement Redundancy and retrenchment

TERMINATION OF EMPLOYEE’S CONTRACT OF EMPLOYMENT Dismissal of misconduct Dismissal for poor performance Frustration of contract Termination of probationers Constructive dismissal

CHAPTER 8 SAFETY AND HEALTH

ACCIDENTS AT WORK Financial costs Losses of output Lowered morale Negative publicity

TYPES OF ACCIDENTS Near miss Non-fatal Fatal

CAUSES OF ACCIDENTS Technical causes Human causes Environmental causes

ENSURING A SAFE WORKPLACE Safety policies A statement of organization’s commitment An explanation of who’s responsible A description of procedures Safety programmes Commitment from all employees Officer in-charge of safety

ENSURING A SAFE WORKPLACE Safety programmes Record keeping Safety training Safety and healthy living campaigns Incentive and reward schemes Provision of personal protective equipment Disciplinary system

OCCUPATIONAL SAFETY AND HEALTH ACT Ensure the safety of all employees and any other person at the workplace Draft and disseminate a safety policy Appoint a safety committee Appoint a dedicated, qualified safety and health officer Provide appropriate training, supervision and information Report serious accidents to DOSH

SEXUAL HARASSMENT An unwanted conduct of a sexual nature having the effect of verbal, non-verbal, visual, psychological or physical harassment Not acceptable behaviour and any employee found guilty of such conduct will be punished

IMPROVING EMPLOYEES’ HEALTH Wellness programmes Stress management Reducing drug and alcohol related problems

EMPLOYEE ASSISTANCE PROGRAMS Programs designed to help employees whose job performance is suffering because of physical, mental or emotional problems Four steps involve: Identify troubled employee EAP counseling Solve the problem Depend on the outcome of the treatment

CHAPTER 9 INTERNATIONAL HUMAN RESOURCE MANAGEMENT

GLOBALIZATION Stage 1: Domestic Operations Stage 2: Export Operations Stage 3: Subsidiaries or Joint Ventures Stage 4: Multinational Operations Stage 5: Transnational Operations

DIVERSITY OF WORK FORCE Demographic trends Diversity as an asset Greater creativity Better problem solving Greater system flexibility

INTERNATIONAL HRM ISSUES Career blockage Culture shock Lack of pre-departure cross-cultural training Overemphasis on technical qualification Getting rid of a troublesome employee Family problems

IMPROVING THE DIVERSITY Commitment of top management Diversity training programs Support groups Accommodation of family needs Day care Alternative work patterns

IMPROVING THE DIVERSITY Senior mentoring programs Apprenticeships Communication standards Organized activities