HRM Full Notes PDF

Note Human Resource Management Chapter 1: An Overview of Human Resource Management By Dr. Siti Nor Adawiyah Azzahra Kamaruddin Learning Objectives After studying this chapter, you should be able to; 1) Explain the Importance of...

Note Human Resource Management Chapter 1: An Overview of Human Resource Management By Dr. Siti Nor Adawiyah Azzahra Kamaruddin Learning Objectives After studying this chapter, you should be able to; 1) Explain the Importance of Human Resource Management. 2) Describe the Growth of the Human Resource Function from the Mid-19 Century until today. 3) Understand the Impact of Technological, Globalization and Increased Competition, Employee Education and Expectation, and Workforce Diversity Changes on Human Resource Management. 4) Describe the Structure of the Human Resource Function in Organization. 5) Clarify the Requirements for a Career in Human Resource Management. 6) Identify the Functions within the Scope of Human Resource Management. 7) Explain the Role and Structure of the Ministry of Human Resources. 8) List the Purpose of each the Most Important Labour Law. Introduction In human resource management, there is no ‘one size fits all’. Emphasis that HR practices and policies must be tailored to the unique needs of each organization What is essential is that whatever system an organization implements, it must work effectively in the context of that organization. If a system is ineffective, it should be changed and modified to meet the organization requirement. The change is a fact of organizational life. Managers in this century must face the reality that the rapid range of development means that they must be constantly alert to the environment outside their organization if they want to survive and be ready to adapt their strategies and systems accordingly. For example, managers must recognize the reality of rapid developments in technology, markets, and society. For example, Healthcare Organization (Hospital): In a hospital, patient care is paramount, so the HR system might focus on ensuring a steady supply of skilled medical professionals, compliance with healthcare regulations, and managing shift work. The HR strategy could include rigorous onboarding processes, continuing education for medical staff, and strong support for mental health due to the high-stress environment. However, if they notice high turnover rates among nurses, they might adjust their HR system by offering better work-life balance solutions, such as flexible scheduling or additional support services, to reduce burnout. This change would make their system more responsive to the specific challenges of healthcare employees. For example, Retail Chain: In retail, the HR system may focus on hiring and retaining a large, often transient workforce, managing customer service training, and handling seasonal peaks in demand. For example, a large retail chain might implement HR practices like employee incentives for achieving sales targets, regular customer service training, and performance- based promotions. If the company finds that employee engagement is low and turnover is high, they might change their HR strategy by introducing career development programs, increasing wages, or offering more stable employment options rather than relying heavily on part-time workers. This adjustment would be based on the specific context of their industry— improving retention in a sector where high turnover is common. Definition of Human Resource Management Human Resource Management define as the development and implementation of system in an organization for attracting, developing and retaining a high-performing workforce. The Purpose of Human Resource Management To ensure that the people employed by the organization are being used as efficiently and effectively. Employer’s main objective in employing human resource specialists. - These specialists are expected to keep in mind the importance of satisfying the needs of employees. - Satisfy or ‘engaged’ workers will become more productive, thus making them a valuable asset to the employer. - Other names or titles of HRM specialist are Welfare Officer, Personnel Manager, Human Resources Manager and Human Capital Manager. - In 20th century, specialist who develop and maintained staffing system were known as personnel managers. - Their functions were to keep records of the employees and to assist in administering various benefits, including leave applications. - However, by the middle of the century, it was clear that efficient management of these tasks was insufficient. - Personnel manager needed to go beyond more administration and actively find ways to human resource management as functions of the officer concerned expended. The Importance of Human Resource Management Human Resource Management (HRM) is essential to the success and sustainability of any organization, as it focuses on managing the most valuable asset—its people. HRM plays a strategic role in improving organizational performance, fostering employee development, and aligning human resources with the broader goals of the organization. In the Malaysian context, HRM plays a key role in driving the efficiency, productivity, and competitiveness of both the private and public sectors. HRM also important to: 1. Talent Management and Retention Malaysia is experiencing a rapidly changing job market due to technological advancements, globalization, and shifting demographics. Effective HRM ensures that organizations can attract, develop, and retain the best talent. In a highly competitive job market, HR managers focus on creating a work environment that fosters employee engagement, satisfaction, and loyalty, helping reduce turnover rates and brain drain. 2. Workforce Diversity Malaysia is a multi-ethnic, multi-cultural, and multi-religious country. Effective HRM must accept and manage workforce diversity, ensuring inclusivity and fairness for all employees, regardless of background. HR practices such as diversity training, inclusive workplace policies, and equitable treatment are critical in preventing discrimination and fostering harmony in the workplace, which is essential in the Malaysian context. 3. Compliance with Employment Laws and Regulations  Malaysia has a strong set of labor laws, such as the Employment Act 1955, Industrial Relations Act 1967, and the Minimum Wages Order. These laws regulate issues like minimum wage, working hours, employee benefits, and workplace safety. HRM is crucial in ensuring organizations comply with these regulations to avoid legal repercussions and maintain a positive reputation. Effective HR management helps businesses stay compliant while balancing the needs of employees and the organization. 4. Skill Development and Training With Malaysia’s ambition to become a high-income economy, there is a strong emphasis on upskilling and reskilling the workforce. HRM is vital in identifying skill gaps and developing strategies for continuous employee training and development. Programs like technical training, leadership development, and upskilling in digital technologies help employees stay competitive and align with the nation’s broader goal of moving toward a knowledge-based economy. 5. Improving Productivity and Efficiency HRM focuses on improving workplace productivity through better work practices, efficient job design, and enhancing employee motivation. In Malaysia, industries are increasingly looking at lean management techniques, automation, and performance management systems to ensure higher productivity levels. HR professionals play a key role in implementing these systems and ensuring they align with organizational goals. 6. Strategic Role in Organizational Growth HRM in Malaysia is evolving from being merely administrative to becoming a strategic partner in achieving business objectives. HR managers are now more involved in long-term organizational planning, such as workforce planning, talent acquisition strategies, and aligning HR policies with business goals. This shift is critical for organizations in Malaysia that need to be agile and competitive in both local and global markets. 7. Employee Engagement and Well-Being Employee well-being, job satisfaction, and engagement are critical in creating a positive workplace culture. In Malaysia, where the cost of living is rising, HRM plays a role in ensuring that employees are provided with benefits and work-life balance. Initiatives such as flexible working arrangements, mental health programs, and employee recognition are key to maintaining a motivated workforce. 8. Managing Technological Changes As Malaysia accepts the digital economy (IR 4.0), businesses are undergoing rapid technological changes. HRM is crucial in managing this transition by ensuring that employees are ready to adopt new technologies, digital tools, and work practices. Effective change management, employee training on digital skills, and creating a tech- savvy workforce are areas where HRM significantly contributes. 9. Globalization and Cross-Border Talent  Many Malaysian companies operate regionally or globally, requiring HRM to manage cross-border talent. HR managers are responsible for ensuring that international and local teams work cohesively, managing expatriate employees, and ensuring that global standards in HR practices are met. This role is increasingly important as Malaysia participates more actively in the global economy. 10. Corporate Social Responsibility (CSR) and Sustainability Malaysian businesses are becoming more aware of the importance of corporate social responsibility and sustainability. HRM plays a role in ensuring that the organization’s values align with socially responsible practices, including fair labor practices, employee volunteer programs, and sustainability initiatives. By embedding CSR into HR strategies, companies can enhance their corporate reputation and build a socially responsible brand. The Growth of the Human Resource Function The historical factors impacting HRM are Industrial Revolution in Europe, The Human Approach to Management and post-1950 developments. 1) Industrial revolution in Europe in the 18th and 19th century (1820s – 1920s). A revolution took place in the economic system of the United Kingdom first, followed by West European nations and the United States of America. saw significant changes in economic systems, labor practices, and social structures. During this period this revolution impacted HRM by a. Specialization Increased Division of Labor: o The development of transport and machinery led to the growth of the factory where workers were grouped together in building built exclusively for the purpose of producing certain good. Mass Production:  o Industries such as textiles, steel, and later automobiles adopted mass production techniques, relying on specialized machinery and skilled workers to increase output and reduce costs. Technological Advancements: o Innovations like the assembly line, introduced by figures like Henry Ford, revolutionized manufacturing, allowing for faster production and further entrenching specialization in the workforce. b. Exploitation of Workers Poor Working Conditions: o Many workers faced harsh conditions, including long hours, low wages, and unsafe environments. o Factories often prioritized profit over worker welfare, leading to widespread health issues and accidents. Child Labour: o The demand for cheap labour led to the widespread use of child labour. Children worked in dangerous conditions for merger wages, sparking social reform movements. Lack of Rights: o Workers had limited rights and little recourse against exploitation. Labor unions began to emerge, advocating for better conditions, fair wages, and the right to organize. c. Worker Alienation Disconnection from Labor: o As work became highly specialized and repetitive, many workers felt a sense of disconnection from the products they were creating. o This alienation was exacerbated by the fact that they often had little control over their work processes. Loss of Craftsmanship: o The shift from artisanal production to factory work diminished the pride and satisfaction many workers had in their craftsmanship, leading to feelings of alienation and disenchantment. Social Isolation: o The industrial lifestyle often isolated workers from their communities and families. Long hours in factories left little time for social interaction, contributing to a sense of loneliness and detachment. 2) The Human Relations Approach to Management In 1930s, Industrial psychology had become a recognizes academic field. Emphasis on supervisory training: Social relation relationships between superior and subordinated, and between worker and worker played a major role in increasing productivity. Many social clubs and recreational program were organized in order to keep workers happy. Human resources specialists were employed to be responsible for general welfare of the workforce. 3) Post-1950 Developments-recent Changes in the last 70 years led to the human resource function becoming increasingly important to the management of organizations. Most significant of these changes are: 1) The introduction of legislation to protect workers and their rights, mostly introduced after World War II.  ▪ Employee Provident Fund (EPF) Act 1951 ▪ Employment Act 1955 ▪ Factories and Machinery Act 1967 ▪ Industrial Relations Act 1967 ▪ And other law were passed and amended when necessary. 2) The growth in the size of organization. ▪ The increasing number of employees in modern organization affecting the growth and important of the human resource function. ▪ Efficient human resources management system are the key to organizational success. 3) Changes in the economic and social environment ▪ Malaysian economic and social environment changes can be seen in recent year. ▪ These have result in workers being more vocal and aware of their rights. ▪ Worker expectation have increased. ▪ Low-paid or dangerous not attractive for local workers. 4) Organizations getting bigger ▪ Mergers and Acquisitions: Many companies pursued mergers and acquisitions to achieve economies of scale, increase market share, and enhance competitive advantages. This led to the formation of large multinational corporations. ▪ Globalization ✓ Market Expansion: Companies sought to enter new markets, leading to larger organizations with international operations. Global supply chains became commonplace, allowing firms to leverage resources and labor across borders. ✓ Access to Resources: Globalization enabled organizations to access a wider range of resources, including raw materials and talent, further driving their growth. ✓ Technological Advancement ✓ Changing Business Model ✓ Workforce Expansion The Changes on Human Resource Management Changes are taking place in society today have major impact on human resource management. Employers and employees need to be aware of these changes and to manage them successfully if they want to stay in business. The changes affecting human resource management includes: 1) Technological Changes ✓ With the development of new and innovative product and machines as well as the increasing influence of information and communication technology (ICT), employees’ skills and knowledge must be constantly updated. ✓ Although not all job changes at the same pace, in some industries new methods of works are being introduced all the time. ✓ So that organizations must provide appropriate training to their employees so that employees will be able to adapt with job requires higher and greater levels of knowledge and skills. ✓ Technological change already resulting transformation of the workplace. ✓ ICT make it possible to work from home or from anywhere there is an Internet connection.  ✓ Innovation and productivity of an employees should be increase which at the aggregate level is good for the country but there is also the potential negative impact. 2) Globalization and Increased Competition ✓ Many countries are signing free trade agreement with each other. ✓ For example, Malaysia is a signatory of the ASEAN Free Trade Agreement (AFTA) which has made it compulsory for members to eliminate import duties on goods traded throughout the region. ✓ In 2009, Malaysia and New Zealand signed a similar agreement. ✓ Market expansion through merger and acquisition. For example, telecommunication. ✓ Merger in some sectors have been mandate and encourage by government. For example, Golden Hope, Guthrie and Sime Darby merge to create Sime Darby Berhad. 3) Employees Education and Expectation ✓ Education among employees is rising. ✓ In most countries including Malaysia, people are staying longer at school and more students are pursuing their tertiary education. ✓ With higher education, workers are becoming more aware of their employment rights and therefore liable to make a complaint to the relevant authorities if they believe their rights are being abused. 4) Workforce Diversity ✓ The Malaysian workforce is extremely diverse. ✓ Most of the workplaces consists of people from different racial group, who practise different religion and speak different languages. ✓ Foreigners are being employed to work alongside Malaysians and women are entering the workforce. ✓ As a result of the diversity, many issues need to be dealt with by human resource specialists. ✓ For example, women speaking out against sexual harassment and the existence of a “glass ceiling” at the workplace. ✓ Foreign workers need to give induction programmes which help them to understand Malaysian values. ✓ Some countries have recognize the employees need to be protected from discriminatory treatment by employers. ✓ USA, black, white and minority American cultural and racial groups is the Civil rights and equal opportunity legislation passed from 1960’s onwards. ✓ This law includes, Civil rights Act 1964, Civil Right Act 1991, Equal Employment Opportunity Act 1972, Age Discrimination Act 1967 ✓ Pregnancy Discrimination Act 1978 ✓ American with Disabilities Act 1990 Managing Change HRM staff are required to act as change agents. They are the people in an organization who called upon to decide upon change. - Have direct impact upon employees; they will make choices as to how introduce and monitor the changes. Many employees, at all level, from manager down to the non-manager staff resit to change for various reasons. In order to ensure change is introduced smoothly and effective, the human resource department role are:  1) Preparing and disseminating information in advance of the change. o HR should proactively share information about the upcoming changes to ensure everyone is informed well in advance. 2) Explaining the need for the change and how it may impact individuals or group within the organisation. o Clearly communicate why the change is necessary and outline its potential impacts on individuals and groups within the organization. 3) Listening to the feedback relating to any proposed changes and considering carefully any negative points raised. o HR should actively ask and consider feedback on proposed changes, paying attention to any concerns or negative points raised by employees. 4) Training managers so that they can answer subordinates’ questions and concerns. o Equip managers with the knowledge and skills they need to address subordinates' questions and concerns effectively. 5) Holding formal discussions and consultation with trade unions and other employee leaders prior to the change. o Engage in consultations with trade unions and employee representatives to discuss the changes and gather input before implementation. 6) Monitor the effectiveness of the change and report to senior management. o After changes are implemented, HR should monitor their effectiveness and provide reports to senior management to ensure ongoing evaluation and adjustment as needed. Useful Malaysian Statistics for mid.2021 In order to understand and respond to the changes in Malaysia today, many of which have a direct impact on human resource management, a number of key statistics need to be monitored by anyone interested in this field. ✓ Population: 32.7 million ✓ Current labour force employed: 16 million ✓ Unemployment rate: 4.8% ✓ Number of employers registered with the Employees Provident Fund: 522,000 ✓ Life expectancy (Males): 72.8 years ✓ Life expectancy (Females): 78.2 years Purpose, Structure and Functions of the Human Resource Department in Organization The human resource department provides a key support function within an organization. Human resource management exist to ensure organization have the right people who will be able to achieve the organizational objectives. The human resource department functions are: 1) Recruit suitable workers 2) Ensure the workers receive appropriate training 3) Establish systems for compensation and rewarding employees 4) Help heads of departments keep their subordinates free from injury and sickness 5) Introduce and maintain system designed to engage workers and ensure their commitment to achieving organization’s goals 6) Design and implement appropriate disciplinary system, rules 7) Ensures the organization is complying with the employment laws 8) Maintains staff records Not all Organizations Have an HRM Department. ✓ The factors determining whether or not company will have such a department are: 1) The Size of the Organization  o The larger the organization in terms of number of employees, the more likely it is to have a separate human resource department. o Very small companies cannot afford to employ staff who do not bring in an income to the firm. o The absence of HR department does not mean that the HRM functions is not being carried out in small organisations. o As long as people are employed, the HR function will exist. o Thus, who is responsible for HRM in small organisations? HRM becomes a part of the manager’s normal duties along with his other task which making or selling a product or services. o Because small and medium-sized enterprises (SMEs) are the backbone of the nations economy constituting more than 98% of all businesses and they are small to be able hire experienced HR professional on a full-time basis, the National Human Resource Centre (NHRC) was established in 2011 to: a) Provides human resource related consultancy services both online and by telephone b) Conduct training needs analysis c) Organizes human resource certification training for staff SMEs o To use the service from NHRC, employers must contribute to the Human Development Fund. 2) Unionization of the Workforce o The number of employees are key criterion in deciding whether or not to have a human resource department. o If the employee belongs to trade union, the company would be wise to employ specialists in the field of industrial relations and human resource management staff who are knowledgeable about labour laws. o In unionized environments, management need specialized knowledge in the area of management of human resources. 3) Ownership of the Company o Multinational companies and joint ventures with foreign partners can be expected to need human resource department to provide input and knowledge in the areas of industrial relations and labour law which, unlike production, marketing and finance, need local expertise. 4) The Philosophy of Top Management o Whether or not a company hires human resource specialist and employs them in special department will depend on the philosophy of the top management concerning the importance of human resource. o If they are believe that the organization successes and profits are dependent on the cooperation and effort of workers, the more likely to perceived a need for a human resource department. Human Resource Management is a Shared Function In organizations with an HRM Department, the function of HRM is shared between this department and ALL including managers and supervisors. The concept of sharing at least two parties must involve. Sharing functions leads to conflict. Agreement must be made so that tasks and duties are clearly assigned.  Clearly written procedure manual can be very useful. For example, for recruitment a guideline which lays out the steps to be taken when a manager believe new employees needs to be recruited until the new employee report for duty could be prepared. Careers in Human Resource Management Career in HRM are diverse and can offer various pathways depending on your interests and skills. Entry into a Career in Human Resource Management Human Resource Management is increasingly becoming a career of choice. There are number of different entry points into this occupation. Start as a clerk in a human resource management department and be promoted to an executive position and eventually into management. Young diploma and degree holder may apply for executive positions upon completion of their studies. They may not hold qualifications directly relevant to human resource management, but if they have proven that they can learn fast and they have good skills, they may still be offered a position in human resource management. Skills and Qualities Required of Human Resources Specialists Because the human resource department staff are employed in advisory capacity, they need certain skills and qualities. The skills and personal qualities are required are: 1) Communication skills 2) Ability to bring about change 3) Information technology (IT) savvy 4) Numerate and able to analyse data 5) Ability to understand the business context 6) High ethical standards  A well-organized proactive human resource department is expected to carry out a wide range of functions. The functions of human resource departments as follows: Function Description Employment Human resource planning Setting policies and administering disciplinary action systems Recruiting and selecting staff in a timely manner Establishing career movement policies, including transfers and promotion Terminating employees Liaison with Immigration and Labour Department Records keeping Training and Holding induction programmes Development Providing skills training Organizing supervisory and management development programmes Establishing and administering performance management and appraisal systems Payment/Reward Developing a wage structure Systems Preparing information for payroll Establishing incentive schemes Advising on benefits Health and Safety Organizing safety programmes Establishing wellness programmes Accident investigation Provision of health services Establishing programmes to prevent sexual harassment and violence Employee Overseeing canteen facilities Services & Provision of transport Welfare Provision of recreation facilities Counselling Managing employee assistance programmes Productivity Establishing and maintaining quality improvement initiatives, Improvement including ISO programmes. Schemes Introduction and implementation of suggestion schemes, team problem-solving activities, Kaizen tools and other similar programmes. Industrial Grievance handling Relations Relations with trade union representatives Collective bargaining negotiations Preparing for contingencies, including strike action Communication Drafting and disseminating policies on employee-related Employees matters as well as othe documents such as handbooks, letter of appointment and termination letter Management of Recruitment, induction and management of housing provided to foreign Workers foreign workers Compliance With Ensuring that the organization complies in every way with Employment relevant employemnt-related legislation Laws The Role and Structure of the Ministry of Human Resources The Ministry of Human Resources (MoHR) is responsible for establishing a work environment in the country that encourages workers to be productive and for setting minimum labour standards. The role of the Ministry of Human Resource includes: 1) Sets Policies. o For example, developing a national employment policy that promotes fair wages and job creation initiatives, such as incentives for businesses that hire from underrepresented groups. 2) Prepares draft legislation or draft amendments to existing legislation. o For example, drafting amendments to the Employment Act to include provisions for remote work and flexible working hours in response to changing workforce dynamics. 3) Enforce the employment legislation. o For example, conducting inspections and audits to ensure compliance with labour laws, such as minimum wage regulations, and taking action against employers who violate these laws. 4) Establishes code of practices as guidelines to employers and employees. o For example, initiating a code of conduct for workplace harassment that figures acceptable behaviour, reporting procedures, and consequences for violations to promote a safe work environment. Structure of the Ministry of Human Resources 1) Department of Labour: Social Security Organization (SOCSO) 2) Department of Industrial Relations: HR Corp (previously HRDF) 3) Department of Occupational Safety and Health: National Institute of occupational Safety and Health (NIOSH) 4) Department of Trade Union Affairs 5) Department of Manpower 6) Department of Skills Development The Employment Laws in Malaysia are: 1) The Employment Act 1955 o The most extensive legislation in the area of HRM is the employment Act of 1955, which has been amended many times (1989, 1995, 1998 and most recently, 2022). o To provide basic benefits to employees as well as protection form exploitation. o The ceiling earns RM2,000 or those who, irrespective of their wages (work as manual labour, supervise manual labour & operate or maintain a mechanically propelled vehicle). 2) The Sabah Labour Ordinance, updated 2005 o To provide basic benefits to employees as well as protection form exploitation. o The ceiling wage limit in these states is RM2,500/month. o Covered by Employment Act and Ordinances are; contract of services, payment of wages, employment of women, working hour and holidays, register, return, complaints and inquiries. 3) The Sarawak Labour Ordinance, updated 2005 o To provide basic benefits to employees as well as protection form exploitation. o The ceiling wage limit in these states is RM2,500/month.  o Covered by Employment Act and Ordinances are; contract of services, payment of wages, employment of women, working hour and holidays, register, return, complaints and inquiries. 4) The National Wages Consultative Council Act 2011 o Prior passing of this Act, which started to be implemented in 2013, Malaysia had no premium wage effective throughout the country. o Under the Wages Council Act, which has since been repealed, minimum wages were established in only in a few limited sectors (shop assistant, hotel, catering industry, the Port of Penang stevedores and cargo handlers, and cinema workers). 5) The Employees Provident Fund (EPF) Act 1991 o Is a scheme to ensure workers have fund available after their retirement. o In the past, retirement was typically enforced at the age of 55 or 56. o Now, with the Minimum Retirement Age Act 2012, employees cannot be required to retire before the age of 60. o Amount contribution employees (12% and 11%) respectively of their monthly wages. 6) The Employees’ Social Security Act (SOCSO) 1969 o The purpose of Employee’s Social Security Act is to provide protection to workers who may be involved in an accident at work or contract some occupational disease. (free medical care, disablement benefit, funeral benefits, facilities for physical rehabilitation etc.). 7) The Occupational Safety and Health Act (OSHA) 1994 o Empowers the Department of Occupational Safety and Health (DOSH) of the Ministry of Human Resources to carry out safety inspections at workplaces, organize promotional activities, improve employer’s and employee’s understanding of good practices, assist other government departments with technical expertise, and carry out any activities aimed at improving safety and health at the workplace. 8) The Children and Young Persons (Employment) Act 1966 o Aimed at preventing the exploitation of child labour. o Children under 16 years age can only engaged in light work in their family’s business. o Young person aged 16-18 aged restricted to working (handles complex machine and a maximum working hour 7hrs/day). 9) The Employment (Restriction) Act 1968 o This Act requires non-Malaysian citizens to obtain a valid work permit before can be employed locally. 10) The Trade Unions Act 1959 o Workers are permitted to form and joint trade union provided these are registered organizations. o The procedures for applying for registration, the use of unions fund, the right and liabilities of unions, and other matters relating to the constitutions of unions are laid down in this Act. 11) The Industrial Relations Act 1967 o To provide system which will encourage industrial harmony. o The relationship between employers and employees plays an important role in the economic development of the country.  o Interest of good relations between two parties, the Industrial Relations Act establishes an Industrial Court for arbitration of disputed and lays down procedures for union recognition and collective bargaining. 12) Pembangunan Sumber Manusia Bhd. Act 2001 (HRD Corp) o To ensure employers conduct training for their employees so as to upgrade their skills and abilities. 13) The Skills Development Fund Act 2004 o To establish a fund for the purpose of granting loans to trainees who attend approved programmes to develop and upgrade their skills. 14) The National Skills Development Act 2006 o To establish a fund for the purpose of granting loans to trainees who attend approved programmes to develop and upgrade their skills. 15) The Minimum Retirement Age Act 2012 o Now, with the Minimum Retirement Age Act 2012, employees cannot be required to retire before the age of 60. 16) The Employment Insurance System Act 2017 o To provide partial payment of wages for up to six months to employees who have been retrenched or who have lost their employment in certain limited circumstances while they search for new employment. o For example, if a company reduces its workforce, affected employees may receive benefits while they look for new jobs. (COVID-19).  Note Human Resource Management Chapter 2: Recruitment, Selection and Induction By Dr. Siti Nor Adawiyah Azzahra Kamaruddin Learning Objectives After studying this chapter, you will able to; 1) Explain the importance of job analysis in the recruitment and selection process. 2) Describe the steps in the recruitment process. 3) Describe how to select new recruits. 4) Discuss the issues and problems relating to recruitment and selection. 5) Clarify the importance of a contract employment. 6) Recommend the terms to be included in a contract of employment. 7) Explain the reasons for holding an induction programme. 8) Recommend methods and techniques which can ensure an induction programme is effective organized. Introduction No other function contributes more to the success of an organization than the recruitment and selection process. Organization cannot achieve their goals without suitable staff. Organization refers to a group of people who work together to achieve common goals. The organization need the people who are commit themselves in helping the organization succeed. Thus, the organization must recruit staff with the necessary skills, knowledge and motivation to perform the best. Definition of Recruitment and Selection Recruitment refers to the process of attracting suitable people to apply for job vacancies. Selection involves choosing the most suitable candidates from amongst a group of applicants. The outcome of these two processes is the employment of a worker. Results in Failure to Hire the Right People Failure to hire the right people may result in; 1) High level of turnover. o When employees are not a good fit, they are more likely to leave, leading to constant recruitment and training cycles. 2) Large number of workers being dismissed. o Poor hiring choices can result in a greater number of terminations, which can affect team morale and overall workplace culture. 3) Increase training cost. o Organizations may face increased expenses for onboarding and training new hires who may not stay long-term, impacting overall productivity. 4) Others problem. 1) Decreased Productivity: Misaligned skills and poor cultural fit can lead to lower individual and team performance. 2) Reputation Damage: High turnover and a tumultuous work environment can harm an organization’s reputation, making it harder to attract top talent.  3) Reduced Employee Engagement: A lack of the right people can lead to disengaged employees, impacting motivation and overall job satisfaction. Recruitment mistake cannot be easily corrected. Cost When an Unsuitable Employee Is Hired/Bad Recruitment Decision Figure 2.1 shows some of the cost which may occurs when an unsuitable employee is hired/bad recruitment decision. The Recruitment and Selection Process Recruitment and selection are all about predicting future performance. There is no magic formula available to help employers determine whether a person applying for a job will perform well. However, systematic recruitment and selection procedures based on up-to-date research will improve prospect of an employer hiring suitable staff. There are seven (7) steps involved in the recruitment and selection process. 1) Make Decision to Recruit New Employees o Assess the need for new hires based on organizational goals, employee turnover, or new projects. o For example, organizational goals to expand its market presence or launch a new product line, it may need to hire additional sales or marketing staff to support these goals. o For example, if a department experiences high turnover rates due to dissatisfaction or burnout, the organization may need to hire new employees to replace those who left and potentially hire more to reduce the workload on remaining staff. o For example, when a company takes on a significant project, such as a software development initiative, it might require hiring specialized talent like software developers or project managers to ensure the project is completed successfully. 2) Conduct Job Analysis o Define the job role, responsibilities, and required skills to create an accurate job description.  o For example, marketing manager. The roles and responsibilities to develop marketing strategies, conduct market research, manage campaign, collaborate with cross- functional teams, budget management, and lead and mentor the marketing team. o For example, marketing manager skills required are; education, experience, technical skills, problem solving skills, communication skills, leadership skills, and creativity. 3) Source of Applicants o There are two source of applicants which is internal and external. o Identify and utilize various sourcing channels such as job boards, social media, recruitment agencies, or internal referrals. 4) Collect Information of Applicants o Gather resumes, cover letters, and other relevant documents to evaluate candidates' qualifications. o For example, candidates submit their resumes via the company’s careers page, email, or a recruitment platform. Resumes should include education, work experience, skills, and certifications relevant to the job role. o For example, request that candidates include a cover letter that outlines their interest in the position and how their experience aligns with the job requirements. The cover letter can provide insights into the candidate’s personality and communication skills. 5) Select Most Suitable Applicant o Use methods like interviews, assessments, and reference checks to determine the best fit for the position. 1) Interviews Initial Screening: Conduct phone or video interviews to assess candidates’ qualifications, experience, and cultural fit. This is often a brief conversation (15-30 minutes) focused on their resume and motivation for applying. Behavioral Interviews: Use structured behavioral interview questions to gauge how candidates have handled situations in the past. For example, ask, “Can you describe a time when you had to deal with a difficult client? How did you handle it?” Panel Interviews: Organize interviews with multiple team members to gain diverse perspectives on the candidate. This could involve role-specific questions as well as questions about teamwork and collaboration. 2) Assessments: Skills Assessments: Design tests that evaluate relevant skills. For instance, a marketing candidate might complete a case study on developing a marketing strategy, while a software developer could take a coding test. Personality Tests: Consider using personality assessments to evaluate candidates' soft skills and compatibility with your team dynamics. Tools like the Myers-Briggs Type Indicator (MBTI) or DISC assessment can be helpful. Work Samples: Request candidates to submit work samples or complete a project related to the job. For example, a graphic designer might be asked to create a marketing flyer based on a given brief. 3) Reference Checks: After narrowing down candidates, contact their professional references to gain insights into their work ethic, reliability, and overall performance. Prepare specific questions to ask references, such as:  ▪ “Can you describe the candidate’s role and contributions to the team?” ▪ “How did they handle challenges or conflicts in the workplace?” ▪ “Would you rehire this candidate if given the opportunity?” 6) Offer Employment to Successful Applicant Extend a formal job offer that includes details about salary, benefits, and other terms of employment. 7) Hold Induction to Successful Applicants Conduct orientation sessions to integrate new hires into the company culture and provide necessary training. For example, welcoming and introduction, company overview, team introduction, job role and responsibilities, policies and procedures, training session (such as use software applications, communication tools and internal databased). Recruitment of new employees should be carried out systematically based on proper planning. Human resource planning is a continuous process process of linking requirements of manpower with the financial and operational plans of the organization in a particular time period. Normally, organization develop 5 years plans for their business, now reduce to 1 or 2 years due to rapid change in some sectors. HR planning is not a one-off event, carried out once a year, or once in 2 years. It must be an ongoing process whereby the future needs of the business are compared with future supply of workers. Before any recruitment process begin, the HR department will reify whether there are really need for new staff. A vacancy cause by an employee resigns or perhaps being dismissed does not necessarily have to be filled. There are some alternatives to hiring new employees.  Alternatives to hiring New Employees Before hiring new employees, an employer should as the following questions; 1) Can the work be outsourced? o Assessing if the task can be handled by an external vendor can save costs and allow the organization to focus on core competencies. o For example, marketing: Organizations might hire external marketing agencies to handle advertising, social media management, and public relations, which allows them to leverage specialized skills without the need for a full-time in- house team. 2) Can the work be reorganized and carried out by existing employees? o Evaluating if current employees can take on additional responsibilities might help avoid the need for a new hire and can enhance team development. o For example, a senior developer could mentor junior staff, reducing the need for hiring additional developers. 3) Can the work be automated? o Investigating automation options can increase efficiency and reduce labour costs in the long run, making it a worthwhile consideration. o For example, payroll Processing: Automating payroll through specialized software can streamline calculations, tax deductions, and direct deposits, ensuring timely payments and compliance with labour laws while reducing the administrative burden on HR staff. 4) Can the work be carried out by existing employees working overtime? o While this can provide a temporary solution, it's crucial to consider the impact on employee well-being and work-life balance. 5) If an employee is needed, should he or she be hired on a part-time or full-time basis? o Deciding between part-time and full-time depends on the workload, budget, and the level of commitment required for the role. Job Analysis Job analysis is a technique of studying a job to identify the skills, knowledge, experience and other requirements necessary to perform the job. There is no need to wait until a vacancy occurs to carry out job analysis. A proactive HR department will ensure all jobs in the organization have been analysed and documented and are re-analysed on a regular basis. For example, HR can create detailed job descriptions for every position in the organization, outlining responsibilities, required skills, and performance expectations. Regular reviews (e.g., annually) can ensure that these descriptions remain current with evolving job requirements and organizational goals. The information gathered during job analysis is not only used in the recruitment and selection process, it also useful as an evaluation tool in ensuring that the employees are given appropriate training and as the basis for setting objectives for the employee so that his performance can be properly assessed and managed. Conducting Job Analysis How is job analysis carried out? The are several potential sources of information which may be used in job analysis.  Carried out job that already exists in the organization, the two most important source information are: i) The workers currently doing the job, known as incumbents. ii) The supervisor or head department in which the job is carried out. Job analysis can be conducting through a combination of techniques such as interviews, questionnaires and observations. i) Interviews o For example, conduct Interviews with Current Employees. Conducting structured interviews with employees currently in the role can provide insights into daily tasks, challenges, and required competencies. For example, a marketing manager might share their need for creative skills, analytics, and project management abilities. ii) Observation o HR can observe employees as they perform their jobs to gain a firsthand understanding of the tasks and skills involved. For instance, watching a customer service representative handle calls can help identify communication skills and problem-solving abilities that are essential for the role. iii) Surveys and Questionnaires o Distributing surveys to employees and managers can gather information about job duties and necessary skills. For example, a survey for software developers might ask about technical skills, programming languages, and project management experiences needed to succeed. Job Description Job descriptions are fundamental documents valuable in a variety of HR functions. Job description can be used in various HR functions to; 1) Recruitment and selection process o Attracting Candidates: A clear job description outlines the responsibilities and requirements of the role, helping attract suitable candidates who possess the necessary skills and experience. o Screening Applicants: It provides criteria against which resumes can be evaluated, ensuring that only candidates who meet the minimum qualifications are shortlisted for interviews. o Interview Preparation: Interviewers can use the job description to formulate questions that assess candidates’ fit for the specific tasks and competencies required for the role.  2) Training o Identifying Training Needs: Job descriptions highlight the skills and knowledge required for each role, enabling HR to determine specific training programs needed for new hires or current employees. o Onboarding: New employees can refer to their job description during the onboarding process to understand their roles and responsibilities clearly, helping them acclimate faster. o Continuous Development: Job descriptions can be revisited to ensure that ongoing training aligns with evolving job requirements and organizational goals. 3) Setting performance standards and appraisal o Performance Expectations: Job descriptions define clear expectations regarding responsibilities and performance metrics, providing a basis for evaluating employee performance. o Appraisal Criteria: They serve as a reference point during performance appraisals, allowing managers to assess how well employees are meeting their job responsibilities. o Goal Setting: Employees and managers can use job descriptions to set relevant performance goals that align with the organization’s objectives and individual career development plans. A job description is a written profile for a job. Typical heading includes; 1) Job title, location, grading o Job Title: Job title has some important as the title has a role play in attracting good workers. Their social status is related to the type of job they hold. The right job titles can provide status and help improve pride in one’s job. For example ‘rubbish colletor’ who is known as a ‘sanitation engineer’. Clearly states the position (e.g., Marketing Manager). o Location: Specifies where the job will be based (e.g., New York City). o Grading: Indicates the level or classification within the organization (e.g., Level 5, Senior Position) 2) Relationship o To whom the job-holder will report, if managerial job is being described, who his subordinates will be, a clear picture of the job’s position in the organizational hierarchy will be established. 3) Brief statement on the purpose of the job o A brief statement on the purpose of the job provides a clear and concise overview of the role's primary objectives and its contribution to the organization. o For example, marketing Manager. The Marketing Manager is responsible for developing and executing comprehensive marketing strategies to enhance brand visibility, drive customer engagement, and increase sales revenue across multiple channels." 4) List of duties and responsibilities o Key part of the job description is the list of duties and responsibilities. o List acts as a guideline to the types of training which should provide. o Serve as a basis for performance appraisal 5) Terms and conditions of employment to be given to the job holder  o A brief statement on the main terms and conditions of service provided to the job holder is helpful in the recruitment process as it gives the recruitment officer a clear idea of the wages and other perks that go with the job. 6) Negative aspects of the job o Negative aspect of the job maybe including high stress levels, long hour, frequent travel, customers complain, etc. The Person Specification Once the job description has been put in writing, it is possible to develop a picture of the sort of person who could best fill the position. This document, known as the ‘person specification’ that describes the type of person who fits the job and will guide the recruitment officer to the best candidate. Person specification also known as job specification. Typically, person specifications list details of the ideal recruit by using heading such as; 1) Knowledge, skills and abilities required to do the job 2) Educational qualifications and work experience required 3) Physical requirements of the job, if any 4) Personality requirements, where relevant 5) Career path Factors Affecting Recruitment Efforts to Attracting Applicants The factors that affecting organization recruitment effort to attracting applicants includes; 1) The location of the organization. o If the organization is located in a remote area or has limited public transport options, it may deter potential candidates. o In regions with a high cost of living, organizations may need to offer more competitive salaries to attract talent. o The local availability of skilled workers can influence recruitment. Areas with a strong educational presence or specific industries may provide a richer talent pool. 2) The public image of the organization. o A positive public image can enhance recruitment efforts, as candidates are more likely to apply to organizations known for their ethical practices, innovation, and employee satisfaction. o Organizations involved in community service or sustainability initiatives often attract candidates who value corporate social responsibility. 3) The physical working conditions in the organization. o A clean, safe, and comfortable workplace can attract candidates. Poor physical conditions, such as outdated equipment or inadequate facilities, can deter potential hires. o Organizations that offer flexible working conditions, including remote work, can attract a broader range of candidates, especially those seeking better work-life balance. 4) The relationships between people in the organization or the psycho-social environment. o A positive organizational culture that promotes collaboration, inclusivity, and support can be attractive to potential candidates. Conversely, a toxic work environment can lead to difficulties in recruitment. o Candidates often seek organizations with approachable and supportive leadership. o A hierarchical or authoritarian style may discourage talent. 5) The remuneration package being offered to new recruits. o Offering salaries that align with or exceed industry standards can attract top talent. o Organizations that do not offer competitive pay may struggle to recruit skilled candidates. o A comprehensive benefits package including health insurance, retirement plans, and paid time off can enhance the attractiveness of the role. o Additional perks like flexible working hours, remote work options, and wellness programs can further entice potential recruits. o Performance-related bonuses, profit sharing, or commission structures can be motivating factors for candidates, especially in sales or performance-driven roles. o Organizations that offer clear pathways for salary increases and promotions can attract ambitious candidates looking for long-term career growth. 6) The internal policies of the organization, including fair disciplinary practices and whether training opportunities are made available to employees. o Transparent and fair disciplinary procedures can build trust and demonstrate a commitment to employee rights. o Candidates may be more likely to join an organization known for its fair treatment of employees. Attracting Internal Applicants and External Applicants In large organizations, it makes good sense to allow existing employees to apply for any vacant positions (internal applicants). Encouraging employees to move from one job to another in the organization means that the recruitment still has to take place in order to fill the job vacated by the person who was transferred or promoted. External applicants are individuals seeking employment from outside an organization. There are number of different methods of attracting people to apply for vacancies in an organization including; 1) Employment Agencies and Consultants o These agencies specialize in matching candidates with job openings. They can provide valuable services like screening and shortlisting candidates. For example, Job Malaysia. 2) Campus Recruitment Exercise o Organizations visit universities and colleges to recruit fresh graduates for internships or entry-level positions. o For example, A PETRONAS sponsors scholarships for students in relevant fields and uses this initiative to identify top talent. Recipients are then encouraged to apply for internships, creating a pipeline of qualified candidates. 3) Employee Referrals o Current employees recommend candidates for open positions, often incentivized by referral bonuses. 4) Unsolicited Applicants Files o Maintaining a database of unsolicited applications and resumes submitted by individuals interested in future job openings. 5) Advertisements in the Mass Media o Placing job advertisements in newspapers, magazines, or other traditional media outlets. o Benefits to reached broad audience, particularly those who are active online. 6) The Internet (Social Media)  o Utilizing job boards, company websites, and social media platforms (like LinkedIn, Facebook) to advertise vacancies. 7) The Participation in Job Fairs o Attending job fairs allows organizations to interact directly with potential candidates and promote job openings. Internal and External Recruitment Methods Advantages & Disadvantages Internal Recruitment External Recruitment Advantages Employment record of applicant Avoid inbreeding. available. Thus, accurate assessment possible. No induction needed. Possible to widen choice of applicants by having a pool of candidates. Little or no cost involved. Employees’ morale and motivation may be increased. Disadvantages Filling a vacancy in one department High cost of may lead to a more serious gap in recruitment process. another. No suitable candidates may be Frustration among available. existing employees. Supervisors may be reluctant to release key employees. The Selection Process Selection is the process of choosing the most suitable candidate from group of applicants, for an available vacancy. To choose the most suitable candidate, information must be collected, and each applicant carefully assessed and compared. Become crucial step in the recruitment and selection process. If unsuitable worker is recruited, not only will be necessary to go through the stressful procedure of dismissing the newly recruited worker, but also costly for recruitment and selection process. Techniques for Collecting Information on Applicants The sources of information which can be used to compare applicants and see whether they match the position specification are; 1) Application forms and curriculum vitae (CV)/ biodata/resumé o Many companies request job applicants to e-mail a curriculum vitae (CV) or resume to the recruiting officer. o These documents will vary in style and content, which make the process of reading through them to find qualified candidates time consuming and difficult. o Technology assist recruitment officers and reduce the amount of time needed to read through what may be hundreds of CVs. 2) Reference checks and checks using social media o A better practice is to require applicant to provide names of referees. o The only way to check on the truthfulness of candidates’ statements about themselves and to discover other people opinion of them is to contact referees directly. (face to face or over the telephone).  3) Tests o To be usable test must be valid and reliable. o Valid test: Test the ability of an applicants to perform a particular job. A high score mean that the applicant will be able to do good work. o Reliable test; is one which gets consistent results if repeated or if different testers are used. o Interviews frequently fails to achieve validity and reliability. People who perform well during an interview often fail to reach employer’s expectations on the job. o The most popular test are; a. Performance test; driving test, keyboarding test, language test, computer usage test, machine test b. Aptitude test; to discover a person’s potential abilities and talents. For example, numerical aptitude and spatial abilities. c. Personality test; characteristics person, for example, sociable, cooperative, assertive. d. Intelligent test; intelligence is a useful attribute in most job today. e. Medical test; to determine whether they are physically fit for the job being offered or whether they have any disease that could be a problem once they are employed. 4) Interviews o Most widely used method of gathering information about job applicants. o Factors which influence the effectiveness of a selection interview: 1) Timing: Deciding how long periods before candidates are interviewed and setting up a timetable accordingly. 2) Venue: Place chosen for the interview must be quiet and location where the interviewer will not be disturbed. 3) Planning: Set many little traps to upset, discomfort and increase the stress level of the applicant. 4) Skills of the interviewer(s): Establish rapport in which the job applicants can relax and answer questions put to him to the best his ability. 5) Questioning techniques used: Ask the right questions together as much as information as possible about the interviewee. 5) Assessment centre activities o They consist of a battery of tests, exercises or other activities, including social events both formal and informal. Issues and Problems Relating to Recruitment and Selection Many issues and problems described below are not seen as being important in the Malaysian context, with perhaps the exception of child labour. Several of this practises are considered ‘normal’ in the business world and do not lead to condemnations as they do in certain countries, such as United States. The issues and problems relating to recruitments and selection includes; 1) Nepotism o Nepotism is a controversial issue. o Nepotism occurs when managers responsible for recruitment whether human resource managers or senior departmental head, insist on hiring their family members or close friends.  o In small family business, this practice is the norm. o Many people believe that in publicly owned organization, recruiting officers should be strictly neutral and fair when filling job vacancy. o Conflict and lack of teamwork may be evident in workplaces where there are many employees who have used their family’s influence to get employment. 2) Employment of Children o Child labour is abhorrent practice, not to be recommended in any circumstances. o Under Children and Young Person (Employment) Act, it is legal to employ children and young person under the age of 18 in Malaysia, although this practice is severely restricted. o Employers can only offer certain types of jobs to children and young persons, and the hours of their employment are limited. 3) Hiring Older Workers o A trend can now be observed in many countries, whereby employers are hiring older workers. o This is largely because in most developed nations the entire population is aging. o Fewer children are being born and people are living longer, essentially as a result of developments in medical science and improvements in the standards of living of the general population. o As a result there is a higher proportion of elderly people compared to numbers of young and middle-age. 4) Discrimination in Recruitment and Selection o There is no legislation outlawing discrimination in the recruitment and selection process or in any other HR function in Malaysia. o Employers have freedom to choose the candidates that they believe is most suitable to the position available. o The only restriction on the right the employer whomsoever he pleases are Children and Young Person (Employment) Act. 5) Employment of Foreigners o Malaysian employers are permitted to hire foreigners only in specified industry and only from countries approved by the authorities. o Prior to hiring any foreigner, whether manual labourer, professional or manager, permission must be obtained from the relevant authorities. Making Job Offer When a choice has been made, the selected candidate must be contacted and offered the job. Preparing a letter of offer should not be delayed to forestall the best candidates from being offered a job elsewhere. Sending a formal letter of offer to the successful candidate is of course necessary, but what of the rejected applicants? Most organisations will not want to send out letters of rejection to them straight away in case the chosen candidate turns down the job offer in which situation the second list will have to be contacted. Offering Contract of Employment Once an employee accepts an offer of employment from an employer, a contract of employment, also known as “contract of service”, comes into existence. A contract of employment is an agreement between an employer and employee that can be enforce in court of law. Details of the terms of the contract of employment may be stated in the employee’s letter appointment. A clear, well- written contract helps to minimize dispute and ensures employees know what is expected from them, as well as benefits to which they entitled. Terms and Conditions of Employment The terms and conditions of employment offered to an employee must: 1) comply with the employment laws, where relevant, 2) be clear and easy to understand, and 3) be attractive. Implied Terms of a Contract Employment Terms implied into every employment contract by common law include: 1) An employee’s obligation to serve the employer with care, faithfulness and obedience. 2) An employer’s obligation to provide a safe workplace and to pay the agreed wages. Express Terms of a Contract Employment The terms stated in a contract should cover all the important conditions of service. Express terms are those terms agreed to by the parties, whether by way of oral agreement or in writing. Written terms are usually included in: 1) the employee’s letter of appointment, 2) a collective agreement, where the workers are represented by a trade union, or 3) a company handbook. Example of a Appointment Letter Example of Items Found in Company Handbook Changing the Terms of an Employment Contract Terms and conditions must comply with the relevant employment laws. Terms and conditions can only be changed by mutual consent between employer and employee. Any employer breach a major term of employment contract, an employee may claim constructive dismissal. For examples; 1) Unilateral Changes to Salary: If an employer reduces an employee's salary or changes commission structures without consent, this may be considered a breach. 2) Changing Job Responsibilities: If an employee is suddenly assigned significantly different responsibilities that are not aligned with their original role, it could constitute constructive dismissal. 3) Hostile Work Environment: If an employer allows or creates a toxic work environment (e.g., harassment or bullying) that the employee cannot reasonably tolerate, it may lead to a claim. 4) Failure to Provide a Safe Working Environment: If an employer neglects their duty to provide a safe workplace, and this puts the employee at risk, it could be a basis for constructive dismissal. 5) Breach of Employment Policies: If an employer violates their own policies (e.g., not following disciplinary procedures) that are part of the employment contract, the employee may claim constructive dismissal. Must keep in mind that the employment relationship may be long lasting and that for both parties to achieve their respective goals, “give and take” is necessary. Types of Employment Contract Employment contracts may be described by their duration: Employment contracts may be described by the number of hours worked: Induction New recruits face ‘reality shock’. New recruits are anxious and stressed out. The purpose;  o An effective induction programme helps new recruits to adjust to their working environment and helps them become productive team members in a short period of time. Contents of Induction Program Potential Problems Relating to Induction Programmes There are number of potential problems which may affect the success of an induction programme. The potential problems or issues includes; 1) Information Overload - New employees are often overwhelmed by the amount of learning they are expected to cope with in the first few days. - They have to familiarize themselves with place of work, the people in the workplace, their job and what they are expected to do, the rules at the workplace and so much more. - An induction try to cover too much information in a short space of time may be counterproductive. 2) Diversity in the Induction Group - Most employers would prefer to organize induction for a group of employees. - Having a group to undergo an induction programme together reduces costs and time, especially for high ranking officer who may be needed to be present at the programme so that they can speak to the new worker. 3) Unreasonable Expectations - New employees may come in with inflated ideas about their roles, responsibilities, or the company's culture. If the induction does not align with these expectations, it can lead to disappointment and disengagement. - Unclear Objectives. If the goals of the induction program are not clearly communicated, new hires might have unrealistic expectations about what they should achieve during the process.  Note Human Resource Management Chapter 3: Training By Dr. Siti Nor Adawiyah Azzahra Kamaruddin Learning Objectives After you study this chapter, you will able to; 1) Identify the partners in training. 2) Define the concept of training. 3) Identify the impact if not conducting training. 4) Discuss the benefits of training. 5) Outline a systematic approach to training. 6) Provide examples of learning principles. 7) Examine the role of computers in training. Introduction Employee training is probably the most significant investment an employer can make. Unfortunately, a lot of money is wasted on ineffective training. Therefore, it is essential that a systematic approach be used when organizing training program. Like many other human resource management functions, training is a shared responsibility. Where the organization has a human resource department, clearly this department will be in charge of training, but there must be constant discussion and liaison with the line manager who know the needs of their department and can identify the types of programmes beneficial to their workers. - For example, consider a manufacturing company where the human resource department is responsible for training. The HR team might conduct a general needs assessment to identify skills gaps across the organization. However, the line managers in specific departments, like production or quality control, have direct insights into the daily challenges their teams face. For example, o Tailored Skill Development: A line manager may notice that team members struggle with using new machinery. They can work with HR to develop a specialized training program focused on operating that equipment safely and efficiently. o Soft Skills Training: If a line manager identifies that their team has difficulty communicating effectively, they can collaborate with HR to implement workshops on teamwork and communication skills, enhancing overall productivity and collaboration. o Health and Safety Programs: In environments where safety is critical, a line manager can alert HR to the need for updated health and safety training, ensuring compliance with regulations and reducing workplace incidents. o Leadership Development: If a department is experiencing high turnover in leadership roles, a line manager might suggest targeted leadership training programs to prepare promising employees for advancement. o Cross-Training Opportunities: To promote flexibility and efficiency, a line manager might work with HR to establish cross-training initiatives, allowing employees to learn different roles within the department.  If the firm has no human resource specialist, every manager is responsible for training his subordinates. In very large organisations, such as the bigger banks, Nestle, Petronas and TM Bhd., special training departments are established with a full complement of staff and frequently with their own buildings. If employees are to be successful trained on continuing basis, the partners in training must cooperate with each other. Partners in Training Training is a partnership between employers, employees, training providers and the government. Figure below shows the parties who have interest in the training of employees. Each of parties has an important role to play includes; 1) Head of department o Senior managers in an organisation will decide on policies relating to training. o For example, establishing training budgets. Senior managers determine the overall budget for training and development programs, ensuring that adequate resources are allocated to enhance employee skills. o For example, setting training priorities. Based on business needs, senior managers can prioritize certain training initiatives, such as leadership development programs for high-potential employees or technical training for new technologies. o For example, developing policies for compliance: Senior managers often establish policies that ensure training programs comply with legal and regulatory requirements, such as safety training or diversity and inclusion training. o For example, evaluating training effectiveness: They may decide on metrics for assessing the effectiveness of training programs and ensure there are mechanisms in place for gathering feedback from participants. 2) The Training department o The training department or the human resources department in companies that do not have specialist departments to organize training, will conduct a formal training needs analysis to determine who needs training and in what areas.  o The heads of departments in the organization will gives input into the training analysis. o To do this they need to monitor the performance of their subordinates and decides whose performance would improve if they received appropriate training. o Then, the training department will then be in the position to decide who should conduct the training, which sometimes means choosing an external training vendor who can provide the appropriate training. o Formal classroom style training programme are offered by range of providers including consultant, freelance trainers, event managers as well as government- funded and private colleges. o After formal training sessions has been conducted, the training department and head department whose workers attended the training together evaluate the training whether it has achieved its objectives. 3) Employers o Managers themselves are often the best choice of trainer as they are able to demonstrate the skills that they required to teach. o It is recommended that managers themselves spend time coaching their subordinates to improve their overall employees performance. 4) Employees o Every employee in the organization is responsible to attend training sessions organized by their organization for their benefit and learn as much as possible. 5) The Government o The government of Malaysia encourages employers to train and retain employees, and provides assistance for this purpose o The government is responsible for providing education to the nation’s children which will not only ensure they are competent in the 3R, but also have the necessary vocational and commercial skills to enable them to adapt quickly to the needs of employers. Defining Training Most expert distinguish between training, education and development. Nedler (1984) defines; Training is the organizational activity which aims to improve an employee's current performance. Education consists of activities designed to prepare employees for future job. Development is those activities designed to help the individual employee grow but which are not confined to a particular job. Training defined as the attempt by the organization to change employee through the learning process so that they are able to perform their jobs efficiently as possible. This definition implies that employees will change as a result of the training process. For change to happen training offered must be effective. It is uncertainly not unheard of for workers to undergo training, but come out of a programme totally unchanged. What sort of change training bring about? - All training programmes are designed (Ask Model); 1) Change Attitudes (A) 2) Develops Skills (S)  3) Impart Knowledge (K) Ask Model The Impact If Company Does Not Training Employee Margaret Anne Reid (2004) and her co-authors in Human Resource Development point out that the following costs will be incurred if an employer does not train his employees. The cost will be occurred includes: 1) Payment to employees when learning on the job, which may take longer if it is not properly planned for. 2) Costs of wasted materials, sales and customers lost because of mistakes made by untrained employees. 3) Management time cost taken to undo the mistakes made by the untrained employees. 4) Lowered morale, leading to higher turnover, among team members who are demotivated by working with an untrained employee. 5) Accident-related costs; it is well-documented that untrained workers tend to have more accidents. 6) Higher turnover leading to recruitment costs because employees feel they have no prospects of further development. Benefits of Training The benefits or advantages of training includes: 1) Training opportunities attract and help to retain talented workers. o Providing training opportunities signals to potential employees that the organization values professional development. This can attract top talent and improve retention rates, as employees are more likely to stay with a company that invests in their growth. 2) Training increases worker productivity. o Training equips employees with the skills and knowledge necessary to perform their jobs more efficiently. This leads to higher productivity levels, as workers are better prepared to tackle their tasks and responsibilities. 3) Training increases workers’ job satisfaction.  o Employees who receive training often feel more competent and confident in their roles. This can lead to greater job satisfaction, as they are more engaged and find their work more fulfilling. 4) Training keeps workers up-to-date. o In rapidly changing industries, ongoing training ensures that employees stay current with the latest technologies, practices, and regulations. This adaptability can enhance the organization’s competitiveness. 5) Training helps to motivate workers. o Training programs can motivate employees by providing them with clear pathways for advancement and skill enhancement. When employees see opportunities for personal and professional growth, they are more likely to be motivated and committed to their work. A systematic Approach to Organizing Training Process Training is a major financial investment for the employer. Therefore, like any other investment reasonable returns are expected. A systematic approach is the best way to ensure effective training. There are five steps in organizing a training programme including; Step 1: Identify the Training Needs o Before any action is taken to organise a training programme, a training need analysis should be carried out. o Ho Ha Yin (2003) defines a training as “the gap between an actual situation and desired situation”. o ‘Situation’ may refer to job performance, knowledge, skills, behaviour or attitudes”. o A training need is a problem which prevents work being done satisfactorily and which can be overcome by TRAINING. o When conducting a training need analysis (TNA), two key questions must be answer: a. Which worker or workers need training? ▪ To answer this question, the officers responsible for training will have liase closely with head of department. ▪ Through the performance appraisal system, workers who performance levels are not satisfactory will be identified. ▪ Training is needed when situation; i. Individual workers are facing difficulties in performing their job satisfactorily. ii. New workers are recruited. iii. New technology and procedures are introduced. iv. Individuals are transferred or promoted. v. A major change such as a merger takes place. ▪ Some of the training may need to be provided on a continuous basis because the law so requires. For example, safety training. ▪ There are three Levels of Analysis i. Organizational Level Organizational culture Quality and productivity schemes ii. Operations Level  Job analysis iii. Individual Level Evaluating individual performance against standards ▪ There are five sources of Information to identify training needs are; i. Job descriptions ii. Heads of departments iii. Employees iv. Organizational records v. Performance review documents b. What, specifically, is the worker lacking that he needs training? ▪ To carry out an analysis of the employee's needs, certain steps should be taken includes; i. Identify a performance problems. ii. Decide whether the problem is serious enough to justify action. iii. Identify the cause of the problem. iv. Generate alternative solutions to the problem. v. Choose the best solution and implement. ▪ We can say that: “The knowledge, skills and attitudes necessary for good performance on a job Minus The knowledge, skills and attitudes the workers possesses Equals to The knowledge, skills and attitudes, which need to be offered through training” o Training need analysis must be carried out continuously. Those involved in identifying training needs may wish to: i. Requires supervisor to prepare report on the training needs of each and every worker reporting to them, especially new workers undergoing probationary period. ii. Requires all workers to periodically evaluate their own knowledge and skills, and to attend training in areas in which they are weak. iii. Requires workers to evaluate their strengths and weaknesses of their supervisors, so that appropriate training can be organised for any supervisors who are unable to effectively manage their section or department well. Step 2: Set Learning Objectives o General purpose of training is to improve employees abilities and performance on the job. o The objective also act as a guideline to the trainee as to what is expected of him. o As Mager (1984) say “If you know where you are going, you have better chance of getting there”. o A well-written training objective includes a statement of; i. Terminal Behaviour ▪ The trainer must be able to clearly specify what the trainee should be able to do on completion of the programme. ▪ The terminal behaviour usually stated in the following words: At the end of the course, the trainee must be able to “know” and “understand” are best avoided. ii. Standard to Achieved ▪ It is very useful to state clearly the standards that are to be achieved by the trainee.  ▪ Without this standards, proper evaluation of the training process is not possible. iii. Conditions of Performance ▪ Training objective on the conditions of performance. ▪ These include the types of equipment which may be used or environmental constraints affect the behaviour to be demonstrated. Step 3: Design the Training Programme o In order to organize an effective training programme, a great deal of time and though has to go into designing and planning the programme. o There are seven factors to consider when designing and planning a training programme, includes; 1) Facilitator/Trainer ▪ The expertise and style of the trainer can significantly impact trainee engagement and learning outcomes. ▪ Consider their experience, communication skills, and ability to adapt to the trainee's needs. ▪ The successful of the training lies in the hands of the trainers. ▪ Trainer must be a good teacher with sufficient patience and tolerance to helps others ▪ There are six steps in Job instructional training. 2) Venue ▪ The location should be conducive to learning, with adequate space, facilities, and equipment.  ▪ Accessibility and comfort can enhance the overall experience for participants. 3) Duration and Scheduling of programme ▪ The length of the training should align with the content and the participants' availability. ▪ Consider breaks and the best times to maximize attention and retention. 4) Number of participants ▪ The ideal group size can vary based on training methods. ▪ Smaller groups may allow for more interaction and personalized attention, while larger groups might be more cost-effective. 5) Training methods ▪ The two methods of job training are; 1) On the job-training o On the job-training refers to the training conducted at the employee’s workstation, usually provided on an individual basis by colleague, supervisor or other person assigned to teach the employee how to do his job. o Table below shows the examples that illustrate the meaning of workstation. Job Workstation Machice Operator At the mechine Clerk At his desk At the wheel of the Bus driver bus Teacher In the classroom Nurse In the ward Chep In the kitchen Lecture In class 2) Off the job-training. o Off-the-job-training refers to training which is conducted in the classroom or other place which is not the employee’s workstation. o The trainees are away from the work environment, that eliminates stress, frustration and bustle of day-to-day job. o For example, case study, workshop, seminar, conference, online course, retreat, coaching, training centre and simulation exercise.  6) Logistics ▪ This includes all the behind-the-scenes details such as materials, technology, seating arrangements, and catering. ▪ Ensuring these elements are organized can minimize disruptions. 7) Budget ▪ Establishing a clear budget helps prioritize resources and make decisions about venues, materials, and facilitator fees. Consider both direct and indirect costs. Step 4: Implement the training Programme o Before the programme is implemented, employers need to do some careful planning. o Resources and facilities may have to be booked, trainees need to be informed of the programme’s schedule, and course materials need to be prepared. o Prior to the commencing any course, check through the following training checklist and tick off (/). o All complete then implement the training programme. Step 5: Evaluate the Training Programme o Every training programme or session must be evaluated. o Evaluation is a difficult process to do well, but it must be attempted in order to improve the standard and effectiveness of the programmes being offered. o Paul Bernthal (n.d) suggest the following reasons for evaluations: 1) To justify the financial investment in the training 2) To get feedback for ongoing improvement 3) To compare the effectiveness of two or more programmes 4) To meet requirements set by legislation. o Donald Kirtpatrick (1959) identified four questions or level of evaluation that need to