Chapter 1 - An Overview of HRM

HUMAN RESOURCES MANAGEMENT
Chapter 1: Overview Of Human Resources
PREPARED BY : MDM SYAROZA MOHAMED

LEARNING OBJECTIVES:-
AFTER YOU HAVE STUDIED THIS CHAPTER, YOU SHOULD BE ABLE TO:
✓ DEFINE THE HUMAN RESOURCES MANAGEMENT
✓ EXPLAIN THE IMPORTANCE OF HRM
✓ GROWTH AND CHANGE OF HRM
✓ LIST THE FUNCTION WITHIN THE SCOPE OF HRM
✓ EXPLAIN THE ROLE AND STRUCTURE OF MINISTRY OF
HUMAN RESOURCES.
✓CAREER IN HRM
1.0 DEFINITION OF HUMAN RESOURCES MANAGEMENT
➢HUMAN RESOURCE MANAGEMENT IS THE DEVELOPMENT AND IMPLEMENTATION OF

SYSTEMS IN AN ORGANIZATION DESIGN TO ATTRACT DEVELOP AND RETAIN A HIGH-
PERFORMING WORKFORCE.
1.1 THE PURPOSE OF HUMAN RESOURCES MANAGEMENT
➢TO ENSURE THAT PEOPLE EMPLOYED BY THE ORGANIZATION ARE BEING USED
AS EFFICIENTLY AND EFFECTIVELY AS POSSIBLE AND
➢TO ENSURE THAT THEY ARE ABLE TO CONTRIBUTE TOWARDS ACHIEVING THE
ORGANIZATIONAL GOALS.
Other Titles for HRM Specialists
❑ Welfare Officer
❑ Personnel Manager
❑ Human Resource Manager
❑ Human Capital Manager
Historical Factors Impacting HRM
The Industrial Revolution 1850s–1920s

❑ Specialization
❑ Exploitation of workers
❑ Worker alienation
Historical Factors Impacting HRM (cont.)
Human Relations Approach 1930s–1950s
❑ Emphasis on supervisory training

❑ Recreation programmes
❑ Welfare programmes
Historical Factors Impacting HRM (cont.)
Recent developments 1950s–2020
❑ Increased labour legislation

❑ Organizations getting bigger
❑ Increasing workforce diversity
❑ Rapid changes
Do All Organizations Have a HR Department?
NO!
What are the criteria for an organization to have
a dedicated HR department?
❑ Ownership of the company
❑ Philosophy of top management
❑ Size of the company
❑ Unionization of the workforce
Human Resource Management
is a Shared Function
❑ In organizations with a HR Department, the

function of HRM is shared between this
department and all managers and supervisors.
❑ Sharing leads to conflict.
❑ Agreements must be made so that tasks and
duties are clearly assigned.
Personal Qualities and Skills Required of
HRM Specialists
❑ Communication skills
❑ Ability to bring about change
❑ Information technology (IT) savvy
❑ Numerate and able to analyse data
❑ Ability to understand the business context
❑ High ethical standards
1.6 CHANGES AND HUMAN RESOURCE MANAGEMENT
➢ THE CHANGES NOWADAYS HAVE MAJOR IMPACT ON HUMAN

RESOURCE MANAGEMENT.
➢ THERE ARE SEVERAL CHANGES AFFECTING HUMAN
RESOURCE MANAGEMENT AS BELOW: -
1. TECHNOLOGICAL CHANGES
2. GLOBALIZATION AND INCREASED COMPETITION
3. EMPLOYEE EDUCATION AND EXPECTATIONS
4. INCREASED IN WORKFORCE DIVERSITY
1.6.1 TECHNOLOGICAL CHANGES
➢ORGANIZATIONS MUST PROVIDE APPROPRIATE TRAINING

TO THEIR EMPLOYEES SO THAT THEY WILL BE ABLE TO COPE
WITH JOBS THAT REQUIRE HIGHER AND GREATER LEVELS OF
KNOWLEDGE AND SKILL.
➢DEVELOPMENTS IN INFORMATION TECHNOLOGY HAVE
MADE IT MUCH EASIER FOR HUMAN RESOURCES TO KEEP
TRACK OF EMPLOYEE DATA.
1.6.2 GLOBALIZATION AND INCREASED COMPETITION
➢BUSINESS MERGERS CREATE MAJOR PROBLEMS FOR

HUMAN RESOURCE MANAGERS.
➢MERGERS ARE EXPECTED TO INCREASE PROFITS BUT THEY

OFTEN FAIL BECAUSE OF THE MANAGEMENT TO SOLVE THE
MANY CONFLICTS AND HUMAN RESOURCE PROBLEM THAT
ARISE.
1.6.2 CONT’D
➢EMPLOYERS NEED A FLEXIBLE WORKFORCE TO

SURVIVE:-
▪ WORKERS WHO CAN PERFORM MULTIPLE TASKS
▪ WORKERS WHO CAN BE REDEPLOYED EASILY
▪ WORKERS WHO CAN RELOCATED EASILY
▪ WORKERS WHOSE SERVICE CAN BE TERMINATED EASILY
▪ WORKERS WHOSE TERMS AND CONDITIONS OF SERVICE CAN BE CHANGED
READILY.
1.6.3 EMPLOYEE EDUCATIONS & EXPECTATIONS
➢THE LEVEL OF EDUCATION AMONG EMPLOYEES IS RISING.

THIS MEANS THAT MOST EMPLOYEES NO DIFFICULTY IN
FINDING JOBS AND CHANGING JOBS.
➢MANY EMPLOYERS ARE NOW INTRODUCING SPECIFIC

PROGRAMMES TO MANAGE THE RECRUITMENT,
DEVELOPMENT AND RETENTION OF TALENTED WORKERS.
1.6.4 INCREASED WORKFORCE DIVERSITY
➢ DIFFERENT EMPLOYEES RESPOND TO DIFFERENT HR PRACTICES.
➢WORKFORCE DIVERSITY MUST BE CONSIDERED WHEN
DESIGNING HR PRACTICES.
➢THE MALAYSIAN WORKFORCE IS EXTREMELY DIVERSE. MOST
WORKPLACES CONSISTS OF PEOPLE FROM DIFFERENT RACIAL
GROUPS, WHO PRACTICE DIFFERENT RELIGIONS AND SPEAK
DIFFERENT LANGUAGES.
➢FOREIGNERS ARE BEING EMPLOYED TO WORK ALONGSIDE
MALAYSIANS.
2.0 HRM FUNCTIONS
Staffing
Performance HR
Management development
HRM functions
Employee and
Labour Compensation
Relations
Safety and
health
2.1 HRM FUNCTIONS
Staffing
Process through which an

organisation ensures that it always
has the proper number of the
employees with the appropriate
skills in the right jobs at the right
time to achieve organisational
objectives
2.2 HRM FUNCTIONS
HR
development
Major functions consisting (HRD)
training , development,
individual career planning
and development and
performance management
and appraisal.
2.3 HRM FUNCTIONS
Goal oriented process

directed toward ensuring
that organisational
processes are place to
maximise the productivity
of employees, teams and
ultimately the
Performance
organisations. Management
2.4 HRM FUNCTIONS
Direct Financial
Indirect Financial Compensation
Compensation
All financial rewards that are not
Pay that a person receives
included in direct financial
in the form of wages,
compensation.
salary, commissions and
bonuses.
Nonfinancial compensation
Satisfaction that a person receives from

the job itself or from the psychological
and/or physical environment in which
Compensation
the person works.
2.5 HRM FUNCTIONS
Safety
Protection of employees
from injuries caused by
work related accidents
Safety and
health
Health
Employee’s freedom from

physical or emotional
illness
2.6 HRM FUNCTIONS
• Businesses that required by law to

recognise a union and bargain with it in
good faith if the firm’s employees want the
union to represent them.
• promotions, demotion, termination and
resignation
Employee and
Labour Relations
2.7 SUMMARY OF RESPONSIBILITY FOR HR FUNCTION
Size of the company Responsibility for HR
Small Company Heads of Department / All managers
Medium-size company Administration Department
Large-size company Human Resources Department
Very-large company HR Dept, Training Dept, & Industrial

Relations Dept.
3.0 HR MANAGER’S TITLES….
Main function:
❑ Welfare managers - Keep records of
employees
- Assist in administering
❑ Personnel managers various benefits, e.g.
leave applications
❑ Human resource managers
❑ Human capital managers

3.1 DIFFERENCES BETWEEN PERSONNEL MANAGEMENT
AND HUMAN RESOURCE MANAGEMENT
Factor Personnel Management HRM

Time and planning Short term, reactive, ad Long term, proactive,
perspective hoc , marginal strategic, integrated
Psychological Compliance Commitment
contract
Employee relations Pluralist, collective, low Unitarist, individual, high
perspective trust trust
Preferred Bureaucratic/ Organic, devolved,
structure/system mechanistic, centralized, flexible roles
formal/defined roles
Roles Specialized/professional Largely integrated into
line management
Evaluation Cost minimization Maximum utilization
(human asset accounting)
3.2 WHAT DOES THE HR DEPT DO?
1. RECRUIT SUITABLE WORKERS
2. TRAIN WORKERS
3. DEVELOP COMPENSATION & BENEFIT SYSTEMS
4. HELP WORKERS TO KEEP THEMSELVES FREE FROM

ILLNESSES AND SICKNESS
5. HELP WORKERS TO ENGAGE THEMSELVES AND BE

COMMITTED
6. DESIGN DISCIPLINARY SYSTEMS
7. ENSURE LEGALITY
8. MAINTAIN STAFF RECORDS

3.3 AREARS IN HRM
WHAT ARE THE CAREERS IN HR?

DISSCUSSION!
3.4 WHAT WOULD YOU NEED TO BECOME
SUCCESSFUL IN A HR CAREER?
Good Communication skills
High ethical standards Able to bring change to people
IT savvy
Able to understand the business context
Numerate and able to analyze data

3.5 SUMMARY
• Human resource management is steadily becoming recognised
as essential for organisational success.
• Human resource management is the development and
implementation of systems in an organisation design to attract,
develop and retain a high performing workforce.
• The human resource management function has developed since
the early days of the industrial revolution through the 20th century
until today.
THANK YOU
ANY QUESTIONS????

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HUMAN RESOURCES MANAGEMENT

Chapter 1: Overview Of Human Resources

PREPARED BY : MDM SYAROZA MOHAMED

➢HUMAN RESOURCE MANAGEMENT IS THE DEVELOPMENT AND IMPLEMENTATION OF

The Industrial Revolution 1850s–1920s

Human Relations Approach 1930s–1950s

❑ Emphasis on supervisory training

Recent developments 1950s–2020

❑ Increased labour legislation

❑ In organizations with a HR Department, the

➢ THE CHANGES NOWADAYS HAVE MAJOR IMPACT ON HUMAN

➢ORGANIZATIONS MUST PROVIDE APPROPRIATE TRAINING

➢BUSINESS MERGERS CREATE MAJOR PROBLEMS FOR

➢MERGERS ARE EXPECTED TO INCREASE PROFITS BUT THEY

➢EMPLOYERS NEED A FLEXIBLE WORKFORCE TO

➢THE LEVEL OF EDUCATION AMONG EMPLOYEES IS RISING.

➢MANY EMPLOYERS ARE NOW INTRODUCING SPECIFIC

Process through which an

Goal oriented process

Satisfaction that a person receives from

Employee’s freedom from

• Businesses that required by law to

Size of the company Responsibility for HR

Small Company Heads of Department / All managers

Medium-size company Administration Department

Large-size company Human Resources Department

Very-large company HR Dept, Training Dept, & Industrial

❑ Human resource managers

❑ Human capital managers

Factor Personnel Management HRM

3. DEVELOP COMPENSATION & BENEFIT SYSTEMS

4. HELP WORKERS TO KEEP THEMSELVES FREE FROM

5. HELP WORKERS TO ENGAGE THEMSELVES AND BE

6. DESIGN DISCIPLINARY SYSTEMS

8. MAINTAIN STAFF RECORDS

WHAT ARE THE CAREERS IN HR?

Good Communication skills

High ethical standards Able to bring change to people

Numerate and able to analyze data

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