2. AN OVERVIEW OF PERSONNEL ADMINISTRATION/ HUMAN RESOURCE MANAGEMENT Chapter1

3. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 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. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 4 WHAT IS PERSONNELADMINISTRATION / HUMAN RESOURCE MANAGEMENT? Personnel administration/ human resource management is the development and implementation of systems in an organization for attracting, developing and retaining a high- performing workforce.

5. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 5 OTHER TITLES FOR HRM SPECIALISTS  Welfare Officer  Personnel Manager  Human Resource Manager  Human Capital Manager

6. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 6 HISTORICAL FACTORS IMPACTING HRM The Industrial Revolution 1850s–1920s  Specialization  Exploitation of workers  Worker alienation

7. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 7 HISTORICAL FACTORS IMPACTING HRM (cont.) Human Relations Approach 1930s–1950s  Emphasis on supervisory training  Recreation programmes  Welfare programmes

8. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 8 HISTORICAL FACTORS IMPACTING HRM (cont.) Recent developments 1950s–2020  Increased labour legislation  Organizations getting bigger  Increasing workforce diversity  Rapid changes

9. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 9 CHANGES AFFECTING HRM  Technological changes  Globalization and increased competition  Employee education and expectations  Workforce diversity

10. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 10 USEFUL MALAYSIAN STATISTICS Population: 30 million Current labour force employed: 13 million Unemployment rate:3% Number of foreign workers:1.4 million Number of employers registered with the Employees Provident Fund: 510,000 Life expectancy (Males):72.3 years Life expectancy (Females): 77.2 years Source: Ninth Malaysia Plan: www.kwsp.com.my; www.mef.org.my; www.statistics.gov.my

11. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 11 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

12. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 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. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 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. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 14 FUNCTIONS OF THE HR DEPARTMENT Employment  Human resource planning  Setting policies and administering disciplinary action systems  Recruitment

15. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 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. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 16 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. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 17 FUNCTIONS OF THE HR DEPARTMENT (cont.) Payment/Reward Systems  Developing a wage structure  Preparing information for payroll  Establishing incentive schemes  Advising on benefits

18. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 18 FUNCTIONS OF THE HR DEPARTMENT (cont.)  Organizing safety programmes  Establishing wellness programmes  Accident investigation  Provision of health services  Establishing programmes to prevent sexual harassment and violence Health and Safety

19. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 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. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 20 FUNCTIONS OF THE HR DEPARTMENT (cont.)  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. Productivity Improvement Schemes

21. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 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. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 22 ROLE OF THE MINISTRY OF HUMAN RESOURCES The Ministry:  sets policies,  prepares draft employment legislation, and  enforces the employment legislation.

23. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 23 ORGANIZATION CHART MINISTRY OF HUMAN RESOURCES Ministry of Human Resources Department of Labour Department of Trade Union Affairs Department of Industrial Relations Department of Occupational Safety and Health Department of Manpower Department of Skills Development

24. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 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. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 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. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 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. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 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. All Rights Reserved HRM Principles and Practices Third Edition © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 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.