CHAPTER 1:

An Overview of
Contents

• Introduction
• Growth of the human resource function from the 19th century until
today
• Current social, business and economic changes: Impact on human
resource management
• Purpose human resource management department
• Requirements for a career in human resource management
• Functions of human resource department
• Role and structure of the Ministry of Human Resources
INTRODUCTION

• Definition of HRM:
Human resource management is the development and
implementation of systems in an organization designed to attract,
develop and retain a high-performing workforce.

Purpose: to ensure that the people employed by the organization

are being utilized as efficiently and effectively as possible and that
they are able to contribute towards achieving the organizational
goals.

• This role is carried by “human resource specialist”. Other titles

include:
Welfare manager; Personnel manager; Human resource manager,
and Human capital manager
GROWTH OF THE HUMAN RESOURCE FUNCTION FROM
THE 19TH CENTURY UNTIL TODAY

- People are moving from cottage industry to mass manufacturing

era
- Factories employed a group of people (managers) to manage
workers
- These managers later became specialized in its own fields i.e.
Marketing, finance, production, personnel management
- Unfortunately, unique craftsmanship is gradually disappearing;
focus on mass production efficiency
- Boredom, high absenteeism, minimal pay, long working hours
resulted in formation of worker aggression through UNION
GROWTH OF THE HUMAN RESOURCE FUNCTION FROM
THE 19TH CENTURY UNTIL TODAY

- By the 1930s, employers starts to recognized that

workers play a major role in the success of any
business or enterprise
- “Human Resource Specialist” is needed to
address the well-being of workers
TRIVIA: HOSPITALITY INDUSTRY IN MALAYSIA
• 1935; the first modern hotel, Majestic Hotel KL
• 1957; Federal Hotel which was opened to serve dignitaries during
Merdeka commemoration
• Since then the industry has flourished; became significant to national &
local economies; 2nd largest employment after manufacturing & construction
• The growth of tourism in Malaysia has led to an exceptional demand
for hospitality services and generated tremendous career opportunities.
CURRENT SOCIAL, BUSINESS AND ECONOMIC
CHANGES: IMPACT ON HRM

Following social, business and economic changes, human resource

management has to deal the following impacts:

• Technological changes such as:

New machinery; New products; Computers at the workplace, and The
Internet

• Globalization and increased competition; this has led to a demand by

employers for flexibility. They prefer:
i. To hire workers on temporary contracts;
ii. To dismiss workers without paying severance benefits when financial
crises warrant downsizing the workforce;
iii. To outsource non-essential functions to other organizations;
iv. To employ workers who are willing and able to carry out a variety of
functions, and
v. To introduce flexi-payment schemes for workers
• Rising levels of employee education and expectations
Employees today have:
i. Higher levels of education than before;
ii. Access to the Internet which allows them to gain information relating to
their rights as employees;
iii. Expectations that they will find a job, as unemployment is low, and
iv. Expectations of work-life balance.

Employers are faced with:

v. Employees who are willing and able to fight for their rights;
vi. High turnover rates, and
vii. The need to recruit foreign workers to overcome the shortage of local
workers.

• Workforce diversity
In most organizations, employees come from a diverse range of
backgrounds. Workers may be identified as having differing needs and
perceptions depending on their racial grouping, religion, languages spoken,
gender and so on.
PURPOSE OF HRM DEPARTMENT

• The main purpose of HRM department is to provide key support

within an organization.

• To do this, HR specialist must:

i. Ensure the workers receive appropriate training
ii. Establish systems for compensation and rewarding employees
iii. Help heads of departments keep their subordinates free from injury and
sickness
iv. Design and implement appropriate disciplinary systems so workers who defy
organizational rules, and thus jeopardize its success, can be dealt with
v. Develop a working relationship with the employees’ trade union
representatives, where the workers are unionized
vi. Ensure the organization is complying with the country’s employment laws
vii. Maintain staff records.
• However, not all companies have staff or department dedicated to
managing human resources. Whether or not a human resource
management department is established in an organization depends on:

i. The size of the organization;

ii. Whether the workforce belongs to a trade union;
iii. Whether the company is foreign or locally owned, and
iv. The philosophy of the top management (how they value employees)
HRM AS A SHARED FUNCTION
Human resource management is a shared function. Some tasks relating
to HRM are implemented by HR specialists and some are undertaken by
managers, especially heads of departments. Sharing may lead to
misunderstanding and conflict between HR specialists and heads of
departments.
FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

At the same time, HRM specialists must be familiar not only with the
latest knowledge relating HRM, but they must also be comfortable
talking the language of business. Hence, they need to understand:

i. Their employer’s mission and vision;

ii. Their employer’s products and services;
iii. The corporate culture where they work;
iv. The technology used in the business;
v. The impact the business has on society;
vi. The profile of the employer’s customers;
vii. How the business is affected by changes in the economic environment,
and
viii. The nation’s affirmative action programmes and how these affect the
business decisions.
A wide variety of functions are within the scope of HRM includes the
following:

Employment
• Human resource planning; Recruitment; Establishing career movement
policies, including transfers and promotions; Setting policies and
administering disciplinary action systems; Terminating employees; Liaison
with Immigration and Labour Department; Record keeping.

Training and Development

• Holding induction programmes; Providing skills training; Organizing
supervisory and management development programmes, and Establishing
and administering performance management and appraisal systems.

Payment/Reward Systems
• Developing a wage structure; Establishing incentive schemes; Preparing
information for payroll preparation, and Advising on benefits
Health and Safety
• Organizing safety programmes; Establishing wellness programmes; Accident
investigation; Provision of health services, and Establishing programmes to
prevent sexual harassment and violence.

Employee Services/Welfare
• Overseeing canteen facilities; Provision of transport for employees;
Provision of recreation facilities, and Counselling

Productivity Improvement Schemes

• Establishing and maintaining quality improvement initiatives including the
introduction and nimplementation of ISO programmes, suggestion schemes,
team problem solving activities, Kaizen tools and other similar programmes

Industrial Relations
• Grievance handling; Relations with trade unions representatives; Collective
bargaining negotiations, and Preparing contingency plans for strike actions.
REQUIREMENTS FOR A CAREER IN HRM

To become a human resource specialist, any of the following routes are

possible.
i. Joining an organization as a human resource clerk and, over time, being
promoted to an executive and later managerial position;
ii. Complete a human resource management related diploma or degree at a
university, and
iii. Undertake a professional certificate or diploma in human resource
management such as the certificate offered by the Malaysian Institute of
Human Resource Management (MIHRM).

Human resource positions may be general or specific. General

positions require the job-holder to multi-task and be able to carry out a
variety of human resource related functions

Specialized jobs may allow the job-holder to focus on one human

resource function at a time.
The personal qualities and skills required of HR specialists include:
i. Communication skills;
ii. Ability to bring about change;
iii. Information technology (IT) savvy;
iv. Numeracy and the ability to analyze data;
v. Ability to understand the business context, and
vi. High ethical standards.
Increasingly, HRM functions are using technology, particularly
computers to improve productivity levels and to provide better
service to customers. The use of computerized software includes:

i. Database systems for personnel records which allow for easy updating
of information;
ii. Payroll systems;
iii. Intranet systems which allow the employer to communicate with
employees as well as permitting employees to contact other employees;
iv. Attendance tracking systems;
v. E-learning programmes, whereby employees are provided with training
at their computer via the Internet or through other methods, are
increasing in popularity;
vi. Knowledge management systems;
vii. Tracking of performance output, and
viii. Monitoring of computer usage.

http://www.orangehrm.com/
Role and structure of the Ministry of Human
Resources

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