Human Resource Management Principles and Practices Textbook PDF

Chapter 1 AN OVERVIEW OF HUMAN RESOURCE MANAGEMENT  PREVIEW ❑ The importance of human resource management. ❑ The growth of the human resource function from the mid-19th century until today. ❑ The impact of current...

Chapter 1 AN OVERVIEW OF HUMAN RESOURCE MANAGEMENT  PREVIEW ❑ The importance of human resource management. ❑ The growth of the human resource function from the mid-19th century until today. ❑ The impact of current social, business and economic changes on human resource management. ❑ The structure of the human resource function in organizations. ❑ The requirements for a career in human resource management. ❑ The functions within the scope of human resource management. ❑ The role and structure of the Ministry of Human Resources. ❑ The purpose of each of the most important labour laws. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 3  WHAT IS HUMAN RESOURCE MANAGEMENT? Human resource management is the development and implementation of systems in an organization for attracting, developing and retaining a high-performing workforce. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 4  OTHER TITLES FOR HRM SPECIALISTS ❑ Welfare Officer ❑ Personnel Manager ❑ Human Resource Manager ❑ Human Capital Manager HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 5  HISTORICAL FACTORS IMPACTING HRM The Industrial Revolution 1850s–1920s ❑ Specialization ❑ Exploitation of workers ❑ Worker alienation HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 6  HISTORICAL FACTORS IMPACTING HRM (cont.) Human Relations Approach 1930s–1950s ❑ Emphasis on supervisory training ❑ Recreation programmes ❑ Welfare programmes HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 7  HISTORICAL FACTORS IMPACTING HRM (cont.) Recent developments 1950s–2020 ❑ Increased labour legislation ❑ Organizations getting bigger ❑ Increasing workforce diversity ❑ Rapid changes HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 8  Functions- Managerial Managerial Planning Organizing Staffing Directing Controlling HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 9  Functions- Operative HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 10  Importance of HRM ▪ To attract and retain talent ▪ To train people for challenging roles ▪ To develop skills and competencies ▪ To promote team spirit ▪ To develop loyalty and commitment ▪ To increase productivity and profits ▪ To improve job satisfaction ▪ To enhance standard of living HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 11  Challenges to HR Professionals Worker productivity Quality improvement The changing attitude of workforce The impact of the government Quality of work-life Technology and Training HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 12  HRM Objectives To help the organization reach its goals To ensure effective utilization and maximum development of human resources To ensure respect for human beings. To identify and satisfy the needs of individuals To ensure reconciliation of individual goals with those of the organization. To achieve and maintain high morale among employees. To provide the organization with well-trained and well- motivated employees. To increase to the fullest the employee’s job satisfaction and self- actualization HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 13  To develop and maintain a quality of work life To be ethically and socially responsive to the needs of society To develop overall personality of each employee in this multidimensional aspect To enhance employee’s capabilities to perform the present job To equip the employees with precision and clarity in transaction of business To inculcate the sense of team spirit, team work and inter-team collaboration HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 14  HRM ACTIVITIES Human resource or manpower planning Recruitment, selection and placement of personnel Training and development of employees Appraisal of performance of employees Taking corrective steps such as transfer from one job to another Remuneration of employees Social security and welfare of employees Setting general and specific management policy for organizational relationship Collective bargaining, contract negotiation and grievance handling Staffing the organization Aiding in HRD Developing and maintaining motivation for workers by providing incentives Reviewing and auditing manpower management in the organization HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 15  HRM SCOPE Personnel aspect It concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity and so on. Welfare aspect It deals with working conditions and amenities such as canteens, rest and lunch room, housing, transport, medical assistance, education, health and safety, recreation facilities and so on. Industrial relation aspect This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement and disputes and so on. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 16  ROLES AND RESPONSIBILITIES OF MoHR To update and implement labor policies and laws to create efficient, productive and discipline workforce with positive values and good work ethics. To update and implement occupational safety and health policies and laws to ensure a healthy and safe work environment. To efficiently manage and independently resolve industrial dispute between employer and employee in order to create a conducive work environment. To monitor and facilitate development and movement of trade unions to be orderly for the benefit of the nation. To manage international relations in Labor Management field, technical co- operation in labor related matters and human resources development. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 17  To encourage and coordinate tripartisme among employees, employers and Government to create harmonized relation toward Vision 2020. To plan and develop human resource through control and labor market analysis to formulate policies relating to employment, development of skilled workforce and productivity linked wage system. To create job opportunities and job placement. To update and implement National Vocational Training Policy and strategies that will fulfill the training needs in the private sector. To revise, update and develop the syllabus of skills training, Skills Certification System and skills standard for implementation. To update and effective implementation of social safety facility to ensure sufficient safety net for workers. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 18  MALAYSIAN LABOR LAW AND THEIR ENFORCEMENT HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 19  ❑ The Employment Act 1955, Sabah Labor Ordinance and Sarawak Labor Ordinance (Labor Department) ❑ The National Wages Consultative Council Act 2011 (Labor Department) ❑ The Employees Provident Fund (EPF) Act 1991 (EPF Board) HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 20  ❑ The Workman’s Compensation Act 1952 (Labor Department) ❑ The Employees Social Security Act (SOCSO) 1969 (The Social Security Organization) ❑ The Occupational Safety and Health 1994 and Factories and Machinery Act 1967 ( DOSH) ❑ The Children and Young Person (Employment) Act 1996 (Labor Department) ❑ The Employment (Restriction) Act 1968 (Labor Department) HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 21  ❑ The Trade Unions Act 11959 (The Trade Unions Department) ❑ The Industrial Relation Act 1967 (The Industrial Relations Department) ❑ Pembangunan Sumber Manusia Bhd Act 2001 (HRD Berhad) ❑ The Skills Development Fund Act 2004 and the National Skills Development Act 2006 (The Skills Development Department) HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 22  The Employment Act 1955, the Sabah Labor Ordinance and the Sarawak Labor Ordinance (Labor Department) The Employment Act 1955 covers those group of employees in the private sector in Peninsular Malaysia and the Federal Territory of Labuan who earn not more than RM2000 per month. The Sabah and Sarawak Labor Ordinance workers are those protected by Employment Act but in the state of Sabah and Sarawak with salary RM2000 per month. Main areas covered: o Contract of service o Payment of wages o Employment of women o Working hours and holidays o Registers, return, complaints and inquiries HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 23  The National Wages Consultative Council Act 2011 (Labor Department) Malaysia have no minimum wage effective throughout the country before, but it implement in 2013. Only for limited sectors such as shop assistant hotel and catering industry workers, the Port of Penang stevedores and cargo handler and cinema workers. Employers resisted the concept of minimum wage for all sectors and all workers including foreign workers, and small number of employers were given an extension of time before they were required to pay their minimum wages. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 24  The Employees Provident Fund (EPF) Act 1991 (EPF Board) Scheme to ensure workers have funds available after their retirement. Retirement age, 55 or 56, now Minimum Retirement Age Act 2012, employees cannot retired before the age of 60. 8% or 11% deducted from employees’ monthly wages 13% from employers 11% deducted from employees’ monthly wages 12% from employers For the purpose of EPF contributions, “wages” include fixed allowance, commissions and bonus payment. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 25  The Workman’s Compensation Act 1952 (Labor Department) Provide financial compensation to workers who have accidents at work or who contract employment- related diseases. Employers in the private sector who employ foreign workers must take out an insurance policy to cover liability under the Act and must inform the Labor Department of any accident involving a foreign workers within 10 days of its occurrence. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 26  The Employees Social Security Act (SOCSO) 1969 (The Social Security Organization) Provide protection to workers who may be involved in an accident at work or who contract some occupational disease. The scheme is designed to ensure workers receive financial compensation for injuries if they are unable to work. Dependents are also entitled the benefits in certain cases. The Social Security Organization set up by the Act administers the following benefits: - Free medical care - Constant attendance allowances - Disablement benefit - Supply or prosthetic appliances - Dependents’ benefit - Facilities for physical rehabilitation - Invalidity pension - Survivors’ pension - Funeral benefit HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 27  The Occupational Safety and Health 1994 and the Factories and Machinery Act 1967 (The Department of OSH) ❑ These two Act empower DOSH and MoHR to carry out safety inspections at workplaces, organize promotional activities to improve employers’ and workers’ understanding of good safety practices, assist other government departments with technical expertise, and to carry out any activities aimed at improving safety and health at the workplace. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 28  The Children and Young Person (Employment) Act 1996 (Labor Department) ❑ Aimed at preventing the exploitation of child labor. Children under 16 years of age can only engaged in light work in their family’s business. Young person aged 16 to 18 are restricted from working: - In light work which not involve the use of machinery - A maximum of 7 hours per day (may not work between 8.00pm to 6.00am) HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 29  The Employment (Restriction) Act 1968 (Labor Department) ❑ This act requires non- Malaysia citizens to obtain a valid work permit before they can employed locally. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 30  The Trade Unions Act 1959 (The Trade Unions Department) ❑ Workers are permitted to form and join trade unions provided these are registered organizations. The procedures for applying for registration, the use of trade unions funds, the rights and liabilities of unions, and other matters relating the constitution of unions are laid down in this Act. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 31  The Industrial Relation Act 1967 (The Industrial Relations Department) Purpose is to provide systems which will encourage industrial harmony. Relationship between employers and employees plays an important role in economic development of the country. Therefore, in the interests of good relations between the two parties, the IR act established an Industrial Court for arbitration of disputes and lays down procedures for union recognition and collective bargaining. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 32  Pembangunan Sumber Manusia Bhd Act 2001 (Human Resources Development Bhd.) To ensure employers conduct training for their workers so as to upgrade their skills and abilities. Employers are required to pay a monthly levy to Fund administrated by HRD Berhad. When they organize training programs or send their workers to approved training programs, they can apply for reimbursement for the cost incurred. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 33  The Skills Development Fund Act 2004 and the National Skills Development Act 2006 (The Skills Development Department) The purpose is to establish a fund for the purpose of granting loans to trainees who attend approved programs to develop and upgrade their skills. A council has also been formed to approve National Occupational Skills Standards (NOSS), which will be used to develop the national curriculum for skills training programs. Trainees who achieve the required competencies will be awarded a certificate. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 34  REVIEW ❑ The importance of human resource management. ❑ The growth of the human resource function from the mid-19th century until today. ❑ The impact of current social, business and economic changes on human resource management. ❑ The structure of the human resource function in organizations. ❑ The requirements for a career in human resource management. ❑ The functions within the scope of human resource management. ❑ The role and structure of the Ministry of Human Resources. ❑ The purpose of each of the most important labour laws. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 35  TUTORIAL QUESTIONS 1. Identify FIVE (5) importance of Human Resource Management (HRM). 2. List FIVE (5) objectives in Human Resource Management (HRM). 3. Write FIVE (5) activities under HRM. 4. State FIVE (5) personal aspect scope in HRM. 5. Identify FIVE (5) welfare aspect in HRM. 6. List FIVE (5) roles of Ministry of Human Resource (MoHR) 7. List FIVE (5) Malaysia Labor Law related to HRM. 8. Identify FIVE (5) areas covers in HRM. 9. Write FIVE (5) SOCSO benefits. HRM Principles and Practices Third Edition All Rights Reserved © Oxford Fajar Sdn. Bhd. (008974-T), 2014 1– 36