Human Resource Management (HRM) Overview

• Human Resource Management (HRM) involves employing, training, and compensating people
• It includes developing workplace policies and strategies to retain employees
• Effective HR systems attract, develop, and retain a high-performing workforce

Human Resource Management

• It is important to continue recruiting and selecting the best human resources
• You should put the right person to the right position matching with skills and knowledge
• Training and developing human resources allows them to acquire new skills
• It is important to compensate and provide a safe and healthy workplace
• Consistent and good appraisal systems helps improve human performance
• Support union and collective bargaining to develop good industrial relations
• Motivation and increased job performance is important
• Increase job satisfaction and loyalty to the organization

Historical Factors Impacting HRM

• The Industrial Revolution (1850s-1920s) brought specialization and tight supervision
• Exploitation of workers occurred, with day and night work required
• Worker alienation and poor working conditions were prevalent, with no protective legislation
• The Human Relations Approach (1930s-1950s) saw advancements in manufacturing technology
• There was an emphasis on supervisory training and introduction of recreation and welfare programs
• Recent developments (1950s–2020) have included better labor legislation and larger organizations
• There has been an increasing workforce diversity and rapid changes

Changes Affecting HRM

• Technological changes
• Globalization and increased competition
• Employee education and expectations
• Workforce diversity

Human Resource Management as a Shared Function

• The HRM function is shared between the HRM Department and all managers and supervisors
• HRM needs advice from department managers when recruiting
• Sharing can lead to conflict
• Agreements must be in place to ensure tasks and duties are clearly assigned

Personal Qualities and Skills Required of HRM Specialists

• Communication skills
• Ability to bring about change
• Information technology (IT) savvy
• Numerate and able to analyze data
• Ability to understand the business context
• High ethical standards

Functions of the HR Department

• Human resource planning
• Setting policies and administering disciplinary action systems
• Recruitment of the right people for the right position
• Establishing career movement policies, including transfers and promotions
• Terminating employees
• Liaison with Immigration and Labour Department
• Records keeping
• Holding induction programmes
• Providing skills training
• Organizing supervisory and management development programmes
• Establishing and administering performance management and appraisal systems
• Developing a wage structure
• Preparing information for payroll (salary)
• Establishing incentive schemes
• Advising on benefits
• Organizing safety programs and establishing wellness programs
• Accident investigation and provision of health services
• Establishing programs to prevent sexual harassment and violence
• Overseeing canteen facilities
• Provision of transport and recreation facilities
• Counseling
• Managing employee assistance programs
• Establishing and maintaining quality improvement initiatives, including ISO programs
• Introduction and implementation of suggestion schemes and team problem-solving
• Activities such as Kaizen tools and other similar programmes
• Handling grievances.
• Maintaining relations with trade union representatives
• Collective bargaining negotiations
• Preparing for contingencies, including strike action

Role of the Ministry of Human Resources

• The Ministry sets policies
• It prepares draft employment legislation
• It enforces employment legislation

Organization Chart (Ministry of Human Resources)

• Ministry of Human Resources oversees the Department of Labour
• The Department of Trade Union Affairs
• The Department of Industrial Relations
• The Department of Occupational Safety and Health
• The Department of Manpower
• The Department of Skills Development
• Workers can complain to the Department of Labour for any employment issues

The Employment Laws

• The Employment Act 1955
• The Sabah Labour Ordinance 1949 (updated 2005)
• The Sarawak Labour Ordinance 1952 (updated 2005)
• The National Wages Consultative Council Act 2011
• The Employees Provident Fund (EPF) Act 1991
• The Minimum Wages Act, updated 2018
• 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
• 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

International HRM

• It is the process of procuring, allocating, and effectively utilising HR in international business
• IHRM is due to increasing globalization, firms and employees moving all over the world
• Major problems can occur in international operations because of human resource management blunders
• Human resource management needs to be understood in a global perspective

Why IHRM

• Managing a Multicultural Workforce is a trend
• Globalization has forced hrm to have international orientation such as recruiting international workers
• More countries are opening their economies, which is increasing hr demand
• There is a shortage of domestic workers
• There is a shortage of new skills and knowledges

Expatriate

• It is an employee who is working and temporarily residing in a foreign country
• Some firms prefer to use the term “international assignees"
• There is a global flow of HR leading to complexity in activities
• There is more involvement in employees' lives

Characteristics of IHRM

• There are more hr activities compared to domestic hr
• There is a need for broader perspective because managing international hr involves communication and culture differences
• There is more involvement in employee personal lives such as family matters
• Risk exposure is higher such as diseases
• There is more external influence compared to domestic hr

Types of Employees

• Host Country National (HCN) belongs to the Country where the subsidiary is located
• Home Country National (PCN) belongs to the Country where the firm has its headquarters
• Third Country National (TCN) belongs to any other country and is employed by the firm
• Example: Google USA subsidiary operates in Malaysia; Malaysia has host country national workers
• Home country national workers are at headquarters in USA
• Third country National worker from Singapore, Indonesia etc.

Differences Between Domestic HRM & IHRM

• There are more HR activities: taxation, culture orientation, administrative services
• There is a need for a broader perspective to cater to multiple needs
• There is more involvement in employees' personal lives: adjustment, spouses, children
• Changes in emphasis as the workforce mix of expatriates and locals varies: fairness
• Risk exposure: expatriate failure, diseases, terrorism
• Broader external influences: government regulations, ways of conduct
• Complexity involved in operating in different countries, varied nationalities of employees
• The different Cultural Environment
• The industry or industries which the MNC is involved
• Attitudes of Senior Management
• Extent of reliance of MNC on home country domestic market