Introduction to Entrepreneurship - Human Resources Management - PDF

 1 Human Resources Management 5  Synopsis This chapter introduces students to the basics of human resources management, including human resources planning, job analysis, recruitment and selection, human resources development, performance management, com...

 1 Human Resources Management 5  Synopsis This chapter introduces students to the basics of human resources management, including human resources planning, job analysis, recruitment and selection, human resources development, performance management, compensation and benefits, safety and health, industrial relations and employment laws. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 3  Objectives The objectives of this chapter are:  To provide students with a basic understanding of human resources management.  To show students how human resources management helps firms to achieve strategic goals. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 4  Learning Outcomes At the end of this chapter, students should be able to:  Describe the functions of important elements and processes of human resources management to achieve a firm’s strategic goal.  Discuss and appreciate the importance of human resources management to business organizations. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 5  List of Topics  Human Resources Planning  Job Analysis  Recruitment and Selection  Training and Development  Performance Management  Compensation and Benefits  Occupational Safety and Health  Employment Laws Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 6  Introduction  An entrepreneur will want good, skilful and competent employees with strong personal characteristics such as being disciplined, hard- working, responsible, trustworthy and reliable.  This chapter will briefly explain the various functions needed to manage employees and how a company can recruit, retain, train, motivate and reward the best employee for a given position. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 7  The Main Functions of Human Resources Management Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 8  Human Resources Planning  When an entrepreneur launches a new business, his budget is limited most of the time.  Therefore, he will only recruit and employ enough employees as long as it is adequate for operations to run effectively.  The entrepreneur may face difficulties in recruiting good candidates as they will have many job options to choose from.  Sometimes, an entrepreneur may persuade friends and family members to help at the beginning of the business. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 9  Human Resources Planning (cont.)  When sales grow and the business becomes stable, then the entrepreneur can plan manpower requirement, based on the actual needs of the business.  The quantity of sales becomes a guide to estimate the amount of work, services or products that need to be produced. – The amount of tasks or jobs in terms of man-hours can be calculated, followed by the number of workers required. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 10  Job Analysis  Job analysis is the process of gathering information about a particular job.  The information includes the: – job activities, – work environment, – duties, – behaviours – scope, – characteristics of a – responsibilities, person that can – work environment, effectively perform the job. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 11  Job Analysis (cont.)  This information will be used to write: i. job descriptions (i.e. a list of what the job covers); and ii. job specifications (i.e. what kind of people to hire for the job).  This information is needed for an entrepreneur to advertise the job and draw the right candidates to apply and then choose the best candidate for the vacancy. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 12  Recruitment and Selection  Companies recruit and select new staff either for – for new start-up, – business expansion, or – simply to replace resigned or retired staff.  The challenge is how to attract the right candidates with the right skills and behaviours that fit the job requirements. – This involves suitable qualifications, appropriate wage amount, where and when to advertise, and how to advertise. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 13  Recruitment and Selection (cont.)  The next process is selection which involves the process of choosing the best candidate for the job.  The information provided by the candidates in their application forms must be scrutinized and only suitable candidates are shortlisted for interviews.  The interviewer must be experienced enough to interview and determine the suitability of the candidate for the job as outlined in the job specification. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 14  Training and Development  An entrepreneur will have to identify the type of training needed for his employees: – to improve their job performance; or – perhaps to prepare them with a new skill set for new business opportunities.  New employees may need to attend orientation or induction programmes to prepare them for their job in the company. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 15  Performance Management  In order to help firms achieve their goals an organisation needs A Performance Management System (PMS)  PMS involves a continuous process of: – communicating, – coaching, – motivating, – training, – feedback, – evaluating and – reviewing employees’ performance by supervisors Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 16  Performance Management (cont.)  An effective performance management process: – defines what performance to measure, – measures employees’ performance accurately, and – provides feedback to employees about their performance.  Currently, employees’ rights is an important issue, and employers must make sure that an employee’s performance evaluation record is properly kept, as it may be needed if there is a court case between employer and employee. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 17  Compensation and Benefits  Compensation and benefits are ways used by firms to achieve strategic goals.  Such methods of attracting the best candidate to work for the firm include: – motivating employees to achieve productivity, – improving employees satisfaction, – helping retain and maintain existing high performers, and – ensuring employees loyalty. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 18  Occupational Safety and Health  The importance of occupational, safety and health issues (OSH) has been a major concern of the government through the enactment of the Occupational, Safety and Health Act 1994 (OSHA).  The aim is to promote safety and health awareness, and establish effective safety organization and performance through self- regulation schemes designed to suit the particular industry or organization. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 19  Occupational Safety and Health (cont.)  Entrepreneurs need to understand and comply with the provision of OSHA.  Furthermore, implementing OSH helps to: – avoid accidents at workplace, – avoid costly medical related expenses, – minimize employees and their families’ physiology and psychological distress, and – helps to avoid severe legal implications. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 20  Employment Laws  As business owners, entrepreneurs need to manage the relationship between employees and the organization.  The entrepreneur is advised to follow statutory requirement to avoid being charged, found guilty and subsequently required to pay compensation to the employee or fined by the Human Resources Department. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 21  Employment Laws  There are specific Employment Laws stipulations outlined regarding: – rest days, – termination of employee’s – holidays, services, types of – annual leave, disciplinary action and recommended – sick leave, approaches to disciplinary – permissible work hours, action. – maternity leave and allowances, – employment of foreign workers, Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 22  Summary  As the business grows, an entrepreneur needs to understand and apply the functions of human resources management (HRM) inter alia, human resources planning, conduct job analysis, recruitment and selection, training and development, performance management, compensation and benefits, safety and health, and employment laws.  All these are important elements for the prosperity and survival of the business. Introduction to Entrepreneurship All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2017 5– 23