1. CHAPTER 1 THE 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 HR Environment Education Training
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 2 PLANNING 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 Labour supply 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: 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

28. 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

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 3 JOB 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 4 COMPENSATION 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

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

52. CONDITIONS OF EMPLOYMENT
Working hours
Rest days
Public holidays

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

54. 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

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

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

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

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

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

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

61. 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)

62. CHAPTER 5 PERFORMANCE APPRAISAL

63. 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.

64. USES OF PERFORMANCE APPRAISAL
Administrative process
Developmental process

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

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

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

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

69. 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

70. 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

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

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

73. 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

74. CHAPTER 6 TRAINING AND DEVELOPMENT

75. 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

76. 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

77. 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

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

79. 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

80. 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

81. 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

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

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

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

85. CHAPTER 7 EMPLOYEE RELATIONS

86. 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

87. 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

88. 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

89. 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

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

91. 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

92. 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

93. 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

94. 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

95. 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

96. INDUSTRIAL ACTION
Picket
Strike
Lockout

97. SETTLEMENT OF INDUSTRIAL DISPUTES
Conciliation
Arbitration

98. EMPLOYMENT LAWS
Employment Act
Industrial Relations Act

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

100. EMPLOYEE PROBLEMS Transfer Promotion of employees Grievance handling
Absenteeism of workers

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

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

103. CHAPTER 8 SAFETY AND HEALTH

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

105. TYPES OF ACCIDENTS
Near miss
Non-fatal
Fatal

106. CAUSES OF ACCIDENTS
Technical causes
Human causes
Environmental causes

107. 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

108. 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

109. 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

110. 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

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

112. 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

113. CHAPTER 9 INTERNATIONAL HUMAN RESOURCE MANAGEMENT

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

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

116. 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

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

118. IMPROVING THE DIVERSITY
Senior mentoring programs
Apprenticeships
Communication standards
Organized activities