CHAPTER 1 THE HUMAN RESOURCE MANAGEMENT FUNCTIONS

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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 AppraisalCompensation Workplace planning

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

5 GROWTH OF HR FUNCTION Industrial Revolution Human Relations ApproachRecent Development

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

7 CHANGING TRENDS IN HRM Technological changesGlobalization and increase competition Employee education and expectation Workforce diversity Useful statistics

8 HR DEPARTMENT To support managers’ HR responsibilitiesHelp 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 DevelopmentPayment / 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 challengesIndividual challenges

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

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

14 INDIVIDUAL CHALLENGESMatching people and organization Ethical dilemmas and social responsibility Productivity Empowerment Brain drain Job insecurity

15 LABOUR LAWS AND ENFORCEMENTThe 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 ENFORCEMENTThe 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 demandLabour productivity Labour supply Internal labour market External labour market

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

21 HR FORECASTING TECHNIQUESQuantitative 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 inventoryPayroll Benefits administration

24 HRIS SECURITY AND PRIVACYLimit 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 ExternalEmployment 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 inbreedingPossible 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 APPLICANTSApplicants form and CV Reference check Selection tests Performance tests Aptitude tests Personality tests Intelligence tests Medical tests

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

32 RECRUITMENT AND SELECTION PROCESSMake 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 SELECTIONNepotism Employment of children Hiring older workers Discrimination in recruitment and selection Employment of foreigners

34 MAKING A JOB OFFER Contract of employmentImplied 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 inductionContents 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 ANALYSISDetermine 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 AnalysisCritical Incident Technique Position Analysis Questionnaire Functional Job Analysis

41 JOB DESCRIPTION A written profile of a jobThe 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 RelationshipsBrief 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 SYSTEMInternal 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 plansSkill-based compensation plans

49 WAGE SYSTEMS Time-related systems Piece-rated systems

50 FACTORS AFFECTING LEVELS OF PAYLegislation and government policy Unions Selection policy Employment conditions Company profitability

51 FACTORS AFFECTING INDIVIDUAL LEVELS OF PAYSeniority Increase in the cost of living Performance Degree of skill

52 CONDITIONS OF EMPLOYMENTWorking hours Rest days Public holidays

53 WORKING HOURS SYSTEM Normal working hours Overtime workingShift 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 requiredAttract staff to join the organization Retain existing employees Increase morale of employees

56 CLASSIFICATION OF BENEFITSProtection programmes Paid time-off Accommodation and enhancement benefits

57 DESIGNING A BENEFIT SCHEMEEligibility 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 ActA weekly rest day Public holidays Annual leave EPF Act Employees Social Security Act

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

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

61 REWARD SYSTEMS Non-financial rewards Financial rewardsPerformance 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 MeasurementDetermining 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 APPRAISALAdministrative process Developmental process

65 FACTORS INFLUENCE EMPLOYEE’S PERFORMANCEKnowledge and skills Motivation Work environment

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

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

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

69 BENEFITS OF PERFORMANCE APPRAISALEmployer 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 APPRAISALEmployee 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 APPRAISALRater errors and bias Influence of liking Organizational politics Individual or group focus Legal issues

72 PROBLEMS IN PERFORMANCE APPRAISALRecent effect Halo effect Central tendency Prejudice and stereotype Fatigue

73 EFFECTIVE PERFORMANCE APPRAISALConduct 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 TRAININGOrganizational 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 productivityIncrease 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 objectivesDesign training programme Implement training programme Evaluate training programme

79 TRAINING NEEDS AND TRAINING PLANSIndividual 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 PLANSIdentify 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 OBJECTIVESPurpose 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 PROGRAMMEFacilitators Venue Duration and scheduling of programme Number of participants Training methods Logistics Budget

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

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

85 CHAPTER 7 EMPLOYEE RELATIONS

86 UNDERSTANDING EMPLOYEE RELATIONSGood 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 RELATIONSEffective 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 unionApplication 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 unionsEmployer’s associations

91 ROLE OF TRADE UNIONS Protect their members’ rightWill 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 BARGAININGThe 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 BARGAININGOne 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 BARGAININGMay 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 AGREEMENTSWritten 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 DISPUTESConciliation Arbitration

98 EMPLOYMENT LAWS Employment Act Industrial Relations Act

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

100 EMPLOYEE PROBLEMS Transfer Promotion of employees Grievance handlingAbsenteeism of workers

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

102 TERMINATION OF EMPLOYEE’S CONTRACT OF EMPLOYMENTDismissal 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 moraleNegative publicity

105 TYPES OF ACCIDENTS Near miss Non-fatal Fatal

106 CAUSES OF ACCIDENTS Technical causes Human causes Environmental causes

107 ENSURING A SAFE WORKPLACESafety 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 WORKPLACESafety 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 ACTEnsure 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’ HEALTHWellness programmes Stress management Reducing drug and alcohol related problems

112 EMPLOYEE ASSISTANCE PROGRAMSPrograms 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 OperationsStage 3: Subsidiaries or Joint Ventures Stage 4: Multinational Operations Stage 5: Transnational Operations

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

116 INTERNATIONAL HRM ISSUESCareer 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 DIVERSITYCommitment of top management Diversity training programs Support groups Accommodation of family needs Day care Alternative work patterns

118 IMPROVING THE DIVERSITYSenior mentoring programs Apprenticeships Communication standards Organized activities