2. Chapter 1
AN OVERVIEW
OF HUMAN
RESOURCE MANAGEMENT

3. 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.

4. 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.

5. OTHER TITLES FOR HRM SPECIALISTS
Welfare Officer
Personnel Manager
Human Resource Manager
Human Capital Manager

6. HISTORICAL FACTORS IMPACTING HRM
The Industrial Revolution 1850s–1920s
Specialization
Exploitation of workers
Worker alienation

7. HISTORICAL FACTORS IMPACTING HRM (cont.)
Human Relations Approach 1930s–1950s
Emphasis on supervisory training
Recreation programmes
Welfare programmes

8. HISTORICAL FACTORS IMPACTING HRM (cont.)
Recent developments 1950s–2020
Increased labour legislation
Organizations getting bigger
Increasing workforce diversity
Rapid changes

9. CHANGES AFFECTING HRM Technological changes
Globalization and increased competition
Employee education and expectations
Workforce diversity

10. USEFUL MALAYSIAN STATISTICS
Population: million
Current labour force employed: million
Unemployment rate: 3%
Number of foreign workers: million
Number of employers registered with
the Employees Provident Fund: ,000
Life expectancy (Males): years
Life expectancy (Females): years
Source: Ninth Malaysia Plan:

11. NO! DO ALL ORGANIZATIONS HAVE AN HRM DEPARTMENT?
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

12. 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.

13. 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

14. FUNCTIONS OF THE HR DEPARTMENT
Employment
Human resource planning
Setting policies and administering disciplinary action systems
Recruitment

15. FUNCTIONS OF THE HR DEPARTMENT (cont.)
Establishing career movement policies, including transfers and promotion
Terminating employees
Liaison with Immigration and Labour Department
Records keeping

16. Training and Development
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

17. Payment/Reward Systems
FUNCTIONS OF THE HR DEPARTMENT (cont.)
Payment/Reward Systems
Developing a wage structure
Preparing information for payroll
Establishing incentive schemes
Advising on benefits

18. 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

19. FUNCTIONS OF THE HR DEPARTMENT (cont.)
Employee Services/Welfare
Overseeing canteen facilities
Provision of transport
Provision of recreation facilities
Counselling
Managing employee assistance programmes

20. 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.

21. FUNCTIONS OF THE HR DEPARTMENT (cont.)
Industrial Relations
Grievance handling
Relations with trade union representatives
Collective bargaining negotiations
Preparing for contingencies, including strike action

22. ROLE OF THE MINISTRY OF HUMAN RESOURCES
sets policies,
prepares draft employment legislation, and
enforces the employment legislation.

23. ORGANIZATION CHART MINISTRY OF HUMAN RESOURCES Ministry of Human
Department
of Labour
of Trade
Union Affairs
of Industrial
Relations
of Occupational
Safety and Health
of Manpower
of Skills
Development

24. 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

25. THE EMPLOYMENT LAWS The Employment Act 1955
The Sabah Labour Ordinance, updated 2005
The Sarawak Labour Ordinance, updated 2005
The National Wages Consultative Council Act 2011
The Employees Provident Fund (EPF) Act 1991

26. 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

27. 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
The Minimum Retirement Age Act 2012

28. 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.