STUDY GUIDE BMHR5103 Human Resource Management

STUDY GUIDE
BMHR5103
Human Resource Management
CENTRE FOR GRADUATE STUDIES
STUDY GUIDE
BMHR5103
Human Resource
Management
Writer:
Dr Siti Rohaida Mohamed Zainal

Universiti Sains Malaysia
Developed by:
Centre for Instructional Design and Technology

Open University Malaysia
First Edition, August 2012

Copyright Open University Malaysia (OUM)
All rights reserved. No part of this work may be reproduced in any form or by any means
without the written permission of the President, Open University Malaysia.
STUDY GUIDE
BMHR5103
STUDY GUIDE
BMHR5103
INTRODUCTION TO STUDY GUIDE

This Study Guide is intended for Open University Malaysias BMHR5103
Human Resource Management course. It comes in TWO parts, as
described below:
Part One comprises the Course Introduction, which gives you an overview
of the course. More specifically, it provides you with the course synopsis,
objectives, learning outcomes and study load. There is a brief description of
the main textbook(s), which you must read to fulfil the course requirements.
There is also a list of additional reading references. You are encouraged
to go into myVLE to check out the assessment, assignment and final
examination formats.
Part Two comprises the Learning Guide. This starts with an Overview, a
recommended weekly study schedule to guide your learning process, and a
brief description of the various elements in the Learning Guide. There is also
a list of topics to be covered. For each topic, you are given the specific
learning outcomes, a topic overview and a listing of the focus areas, together
with assigned readings and the pages where information on the focus areas
is found. To consolidate your learning and test your understanding, a
summary of the main content covered and study questions are provided at
the end of each topic.
Finally, there are two appendices, Learning Support and Study Tips, to
help you walk through the course successfully.
Please read through this Study Guide before you commence your course.
We wish you a pleasant study experience.
STUDY GUIDE
BMHR5103
Contents
Part One: Course Introduction ....................................................................5
Synopsis .............................................................................................5
Objectives ...........................................................................................5
Learning Outcomes ............................................................................5
Study Load ..........................................................................................6
Main Textbook(s) ...............................................................................6
Assigned Readings .............................................................................6
Additional Recommended Readings ..................................................7
Assessment ........................................................................................7
Part Two: Learning Guide ...........................................................................9
An Overview .......................................................................................9
Topic 1 .............................................................................................11
Topic 2 ..............................................................................................16
Topic 3 .............................................................................................19
Topic 4 .............................................................................................24
Topic 5 .............................................................................................26
Topic 6 .............................................................................................31
Topic 7 .............................................................................................33
Topic 8 .............................................................................................39
Topic 9 .............................................................................................44
Topic 10 ...........................................................................................48
Appendices .................................................................................................51
Appendix A: Learning Support ..........................................................51
Appendix B: Study Tips ....................................................................52
STUDY GUIDE
BMHR5103
PART ONE: COURSE INTRODUCTION

Synopsis
This course emphasises the practices of HRM. This course also highlights
the synergistic relationship between HRM and organisation performance. It
will also highlight the importance of HR practices in managing a firm in order
to leverage the organisational success and achieve employee well-being.
This course explores the role of HR managers and provides a comprehensive
foundation to managing HRs for non-HR managers.
Objectives
The general aims of this course are to:
1.
Present HRM practices, concepts and the application;
2.
Explain the roles of HR manager in determining the performance of

organisations regardless of the size and industry;
3.
Describe HR managers activities;
4.
Explain the development of HR through HR development, career

development and performance appraisal;
5.
Discuss employee reward systems such as incentives, pensions and

benefits; and
6.
Identify the components of organisational employment relations and

workplace safety and health.
Learning Outcomes
By the completion of this course, you should be able to:
1.
Explain what is meant by HRM, its theories, concepts and the

challenges facing the HR manager;
2.
Assess the effectiveness of the role of a HR manager in relation to

organisational goals;
3.
Assess why job analysis, job design and HR planning are basic
HRM tools in determining the numbers and kinds of employees the
organisation will need at future dates in order to realise its goals;
4.
Respond to how training and development programmes, career

development programmes and performance appraisal improve
employees performance in an organisation;
STUDY GUIDE
BMHR5103
5.
Outline key issues such as remunerations, incentive, pension and

benefits that will determine the success of managing human resources;
and
6.
Analyse approaches taken by organisations to take care of employment

relations and safety and health.
Study Load
It is a standard OUM practice that learners accumulate 40 study hours for
every credit hour. As such, for a three-credit hour course, you are expected to
spend at least 120 hours of learning. Table 1 gives an estimation of how the
120 hours can be accumulated.
Table 1: Allocation of Study Hours
Activities
No. of Hours
Reading course materials and completing exercises
60
Attending 5 seminar sessions (3 hours for each session)
15
Engaging in online discussions
15
Completing assignment(s)
20
Revision
10
Total
120
Main Textbook(s)
Dessler, G. (2012). Human resource management. United Kingdom: Pearson.
Assigned Readings
Barnadin, H. J. (2007). Human resource management: An experiential
approach (4th ed.). Asia: McGraw-Hill.
Dessler, G. (2005). Human resource management (10th ed.). Upper Saddle
River, New Jersey: Pearson Education, Inc.
Gomez-Meja, L. R., Balkin, D. B., & Cardy, R. L. (2007). Managing human
resources (5th ed.). Upper Saddle River, New Jersey: Pearson
Education, Inc.
Ivancevich, J. M. (2007). Human resource management (10th ed.).
New York: McGraw-Hill.
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BMHR5103
Mondy, R. W. (2008). Human resource management (10th ed.). Upper

Saddle River, New Jersey: Pearson Education, Inc.
Noe, R. A. (2006). Human resource management: Gaining a competitive
advantage (5th ed.). New York: McGraw/Hill Irwin.
Snell, S. (2007). Human resource management. Thomson.
Additional Recommended Readings

None.
Assessment
Please refer to myVLE for information on the assessment format and
requirements.
STUDY GUIDE
BMHR5103
STUDY GUIDE
BMHR5103
PART TWO: LEARNING GUIDES

An Overview
This Learning Guide is arranged by topic. It covers essential content in the
main textbook and is organised to stretch over TEN study weeks, before the
examination period begins. Use this Learning Guide to plan your engagement
with the course content. You may follow the recommended weekly study
schedule in Table 2 to help you progress in a linear fashion, starting with
Week 1.
Table 2: Recommended Weekly Study Schedule
Topic
Topic 1:
Week
Understanding the foundation of HRM and Strategic

HRM
x Introduction to HRM
x HRM Strategy and Analysis
Topic 2:
Job Analysis and Talent Management

x Job Analysis and the Talent Management Process
Topic 3:
Planning, Recruiting and Interviewing

x Personnel Planning and Recruiting
x Interview Candidates
Topic 4:
Interviewing Candidates
x Interviewing Candidates
Topic 5:
Training and Performance Appraisal

x Training and Developing Employees
x Performance Management Appraisal
Topic 6:
Managing Employees
x Employee Retention, Engagement and Careers
Topic 7:
Pay, Incentives and Benefits

x Establishing Strategic Pay Plans
x Pay for Performance and Financial Incentives
x Benefits and Services
Handling Work Related Issues

x Ethics and Employee Rights, and Discipline
x Labour Relations and Collective Bargaining
Safety and Global Issues

x Employee Safety and Health
x Managing Global Human Resources
Topic 8:
Topic 9:
Topic 10: HR in Small- and Medium-Sized Enterprises (SME)

x Managing HR in Small and Entrepreneurial Firms
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BMHR5103
Each topic in the Learning Guide comprises the following sections (refer to
Figure 1):
x
Learning Outcomes: outline the specific tasks to be accomplished;
Topic Overview: briefly explains what the topic touches on so as to

provide a general interpretative framework for understanding the topic
content;
Focus Areas: identify the main and sub areas to be covered;
Assigned Readings: help you to navigate the main textbook and reading
materials;
Content Summary: provides an

understanding the core content; and
Study Questions: help you to focus on key subject areas.
interpretative
Figure 1: Organisation of the Learning Guide
10
framework
for
STUDY GUIDE
Topic 1:
BMHR5103
Understanding the Foundation of HRM and

Strategic HRM
Learning Outcomes
By the end of this topic, you should be able to:
1.
Explain what HRM is and how it relates to the management process;
2.
Define and provide an example of evidence-based HRM;
3.
Explain the importance of strategic planning to all managers; and
4.
Describe the tools of strategic HRM.
Topic Overview
This topic provides an overview of HRM. It also highlights the importance of
HRM practices in managing employees. The second item in this section
addresses strategic HRM process, strategic HRM, HR metrics and analysis,
and building high-performance work systems. This topic also highlights the
tools used in planning and designing strategic HRM.
Focus Areas and Assigned Readings

Focus Areas
Assigned Readings
Dessler, G. (2012). Human resource
management. United Kingdom:
Pearson.
1.1
1.2
1.3
1.4
1.5
1.6
What is HRM and Why is it

Important?
The Trends Shaping HRM
The New HR Managers
The Strategic Management
Process
Strategic Human Resource
Management
What are High-Performance Work
Systems
Chapter 1, pp 3035.
Chapter 1, pp 3643.
Chapter 1, pp 4348.
Chapter 3, pp 9899.
Chapter 3, pp 99102.
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Content Summary
1.1
What is HRM and why it is important The management process

involves the following functions: planning, organising, staffing, leading,
and controlling. The activities of HRM includes conducting job
analyses; planning labour needs and recruiting job candidates;
selecting job candidates; orienting and training new employees;
managing wages and salaries; providing incentives and benefits;
appraising performance; communicating; training and developing
managers; building employee commitment; being knowledgeable
about equal opportunity, affirmative action, and employee health and
safety; and handling grievances and labour relations.
1.2
HR managers also have line, coordinative and staff functions.

However, they exert line authority only within the HR department.
They have implied authority with line managers due to the fact that
they have the ear of top management on many important issues
contributing to organisational health.
1.3
There are six categories of trends shaping HRM, namely,

globalisation and competition trends, indebtedness (leverage) and
deregulation, technological trends, trends in the nature of work,
workforce and demographic trends, and economic challenges and
trends.
1.4
Knowledge workers and human capital This refers to the

knowledge, education, training, skills and expertise of a firms
workers. The HR function must employ more sophisticated and
creative means to identify, attract, select, train and motivate the
required workforce.
1.5
Goal-setting and the planning process Strategic planning is

important because, in a well-run organisation, the goals from the top
of the organisation downward should form an unbroken chain, or
hierarchy, of goals. These goals, in turn, should guide everyone in the
organisation in what they do.
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1.6
BMHR5103
Figure 1.1 below shows the seven stages of strategic management.
Figure 1.1: Seven stages of strategic management
1.7
Managers develop three types of strategies, which are explained

below.
Figure 1.2: Three types of strategies
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1.8
1.9
BMHR5103
Defining strategic HRM Strategic HRM means formulating and

executing HR policies and practices that produce the employee
competencies and behaviours the company needs to achieve its
strategic aims. The following steps demonstrate linking company-wide
and HR strategies:
x
Evaluate companys competitive environment
Formulate business strategy
Identify workforce requirements
Formulate HR strategic policies and activities
Develop detailed HR scorecard measures
Strategic HRM tools There are three important tools, namely,

strategy map, HR Scorecard and digital dashboard.
Figure 1.3: Strategic HRM tools
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Study Questions
1.
Assume that you are a HR manager for Company A. Your company is

focusing on manufacturing computer chips. Your competitor, Company
B, is about to close down. The top management of your company
decided to buy company B in order to expand their business. As the HR
manager, you are required to strategise the acquisition process. Explain
your answer.
2.
Summarise the linkage between HR activities and organisational

performance.
3.
Compare and contrast three tools for strategic HRM.
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Topic 2:
BMHR5103
Job Analysis and Talent Management
Learning Outcomes
1.
Explain the importance of talent management;
2.
Describe the nature of job analysis and understand the method of

conducting job analysis; and
3.
Write job descriptions and compare these with job specifications.
Topic Overview
This topic highlights the process of analysing jobs and designing two
important documents related to job analysis, namely, job description and job
specification. It also highlights the uses of job analysis as part of talent
management.

Focus Areas
Assigned Readings
Pearson.
2.1
2.2
2.3
2.4
2.5
The Talent Management Process

The Basics of Job Analysis
Methods of Collecting Job
Analysis Information
Writing Job Descriptions
Writing Job Specifications
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Content Summary
2.1
Talent management is the goal-oriented and integrated process

of planning, recruiting, developing, managing and compensating
employees.
2.2
Job analysis The procedure for determining the duties and skill
requirements of a job and the kind of person who should be hired
for the job, by collecting the following types of information: Work
activities; human behaviours; machines, tools, equipment and work
aids; performance standards; job context; and human requirements.
2.3
Job description A list of a jobs duties, responsibilities, reporting

relationships, working conditions, and supervisory responsibilities
one product of a job analysis.
2.4
Job specification A list of a jobs human requirements: The

requisite education, skills, knowledge, and so on another product of
a job analysis.
2.5
Uses of job analysis information
Figure 2.1: Uses of job analysis information
2.6
There are six steps in conducting a job analysis:

Step 1 Decide how the information will be used because that will
determine what data will be collected and how they will be
collected.
Step 2 Review relevant background information, such as
organisational charts, process charts, and job descriptions.
Step 3 Select representative positions to analyse because there
may be many similar jobs, and it may not be necessary to
analyse all of them.
Step 4 Analyse the job by collecting data on job activities, required
employee behaviours, working conditions, and human traits
and abilities needed to perform the job.
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BMHR5103
Step 5 Verify the job analysis information with job incumbents and
supervisors to confirm that it is factually correct and
complete.
Step 6 Develop a job description and job specification from the
information.
2.7
Methods for collecting job analysis information include interview,

questionnaire, observation, participants diary/logs, quantitative job
analysis techniques, and Internet-based job analysis.
Study Questions
1.
Discuss the differences among job analysis, job description and job
specification.
2.
Explain the uses of job analysis information.
3.
Aminah is a new executive trainee in Company A. The management

decides to locate her in two departments: finance and marketing. Create
a job description for Aminah for both departments.
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STUDY GUIDE
Topic 3:
BMHR5103
Planning, Recruiting and Interviewing
Learning Outcomes
1.
List the steps in the recruitment and selection process;
2.
Explain, with examples, the need for effective recruiting;
3.
List and discuss the main outside sources of candidates;
4.
Explain what is meant by reliability and validity; and
5.
List eight tests you could use for employee selection and how you could
use them.
Topic Overview
In this topic, we will learn how to improve your effectiveness in recruiting
candidates, including personnel planning and forecasting, recruiting job
candidates, and developing and using application forms. We also will know
how to use various tools to select the best candidates for the job including the
selection process, basic testing techniques, background and reference
checks, ethical and legal questions in testing, types of tests, and work
samples and simulations.

Focus Areas
Assigned Readings
Pearson.
3.1
3.2
3.3
3.4
3.5
Workforce Planning and

Forecasting
Internal Sources of Candidates
Outside Sources of Candidates
Why Careful Selection is Important
Types of Tests
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Content Summary
3.1
The recruitment and selection process involves five main steps;
Figure 3.1: Five main steps in the recruitment and selection process
3.2
Strategy and workforce planning Planning should be directly related

to the companys strategic goals.
3.3
Forecasting personnel needs (labour demand) Forecast revenues,

and then estimate the size of the staff required to achieve this sales
volume.
3.4
Trend analysis requires studying a firms employment levels over a

period of years to predict future needs.
3.5
Ratio analysis involves making forecasts based on the ratio between

(1) some causal factor, such as sales volume, and (2) the number of
employees required, like the number of salespeople.
3.6
The scatter plot shows graphically how two variables (such as a

measure of business activity and a firms staffing levels) are related.
3.7
Markov analysis involves creating a matrix on employees in the chain

of feeder positions for a key job.
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BMHR5103
3.8
Manual systems and replacement charts Simple manual devices

can be used to keep inventories and development records to compile
qualifications information on each employee. Personnel replacement
charts show the present performance and promotability for each
positions potential replacement. Position replacement cards can also
be created for each position to show possible replacements as well as
their present performance, promotion potential and training.
Computerised skills inventories are used to track the qualifications of
hundreds or thousands of employees.
3.9
Forecasting the supply of outside candidates This may involve

considering general economic conditions and the expected rate of
unemployment.
3.10
Finding internal candidates To be effective, promotion from within

requires using job posting, personnel records and skill banks.
3.11
Succession planning Succession planning ensures a suitable supply

of successors for senior or key jobs. It can include the following
activities: determining the projected need for managers and
professionals by company level, function and skill; auditing current
executive talent to project the likely future supply for internal sources;
planning individual career paths based on objective estimates of
future needs and assessments of potential; offering career counselling
based on the needs of the individual and the firm; accelerated
promotions, with development targets against the future needs of the
business; providing performance-related training and development;
planning strategic recruitment to fill short-term needs and meet future
needs; and actually filling the positions.
3.12
Outside sources of candidates:

x
Advertising
Employment agencies
Temp agencies and alternative staffing
Offshoring/outsourcing jobs Hiring workers abroad is becoming

more and more common. There are several specific issues that
the HR manager should keep in mind when considering this
option.
Executive recruiters, also called headhunters, are special

employment agencies retained by employers to seek out topmanagement talent for their clients.
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STUDY GUIDE
3.13
BMHR5103
On-demand recruiting services (ODRS) This service provides

short-term specialised recruiting to support specific projects
without the expense of retaining traditional search firms. Basically,
recruiters get paid by the hour or project, instead of a percentage
fee. Two trends technology and specialisation are changing
the executive search business. Executive recruiters are becoming
more specialised, and large ones are creating new businesses
aimed specifically at specialised functions or industries.
College recruiting involves sending employers representatives to

college campuses to prescreen applicants and create an applicant
pool of management trainees, promotable candidates, and
professional and technical employees.
Referrals and walk-ins are alternatives for identifying potential

candidates. Referrals tend to generate high-quality candidates.
Walk-in candidates may be attracted by posting a Help Wanted
sign.
Recruiting a more diverse workforce.

x
Single parents Formulating an intelligent programme for

attracting single parents should begin with understanding the
considerable problems they often encounter in balancing work and
family life.
Older workers With the entire population ageing, many

employers are encouraging retirement-age employees not to
leave, or are actively recruiting employees who are at or beyond
retirement age by making their companies an attractive place in
which older workers can work. An image of older workerfriendliness and flexibility in scheduling are vital.
Recruiting minorities Requires employers to tailor their way of

thinking and to design HR practices that make their firms attractive
to minority workers.
Welfare-to-Work The Federal Personal Responsibility and

Welfare Reconciliation Act of 1996 prompted many employers to
implement programmes to attract and assimilate former welfare
recipients.
The Disabled Employers can do several things to tap into this

huge potential workforce. The Department of Labours Office of
Disability Employment Policy offers several programmes, and all
states have local agencies that provide placement services and
other recruitment and training tools.
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Study Questions
1.
Explain the pros and cons of external hiring.
2.
You are the HR manager for 3rd M Company. Your company decides to
expand the business to China due to its growing market. In order to
venture into Chinas market, the top management decides to hire a
senior marketing executive to oversee the market. Explain in detail all
four levels of the recruitment process.
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Topic 4:
BMHR5103
Interviewing Candidates
Learning Outcomes
1.
List the main types of selection interviews;
2.
List and explain the main errors that can undermine an interviews
usefulness; and
3.
Give several examples of situational questions, behavioural questions,

and background questions that provide structure.
Topic Overview
This topic will cover types of interviews, things that undermine its usefulness,
and designing and conducting effective selection interviews.

Focus Areas
Assigned Readings
Pearson.
4.1
4.2
4.3
Basic Types of Interviews

Three Ways to Make the Interview
Useful
The Errors that undermine an
interviews usefulness
Chapter 7, p 247.
Content Summary
4.1
There are two basic types of interviews: structured and unstructured

Unstructured or non-directive interviews generally have no set format.
Structured or directive interviews generally identify questions and all
applicants are asked the same questions.
4.2
Interview content: Types of questions Interviews can be classified

according to the nature or content of their questions, such as
situational interviews, job-related interviews, behavioural interviews,
and stress interviews. Puzzle questions are also popular today, and
they are used to see how candidates think under pressure.
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4.3
BMHR5103
How should we administer the interview?
Figure 4.1: The parties who can administer an interview
4.4
There are six situations which could lead to an interviews usefulness

being undermined: (1) first impressions; (2) not clarifying what the job
requires, (3) candidate-order (contrast) error and pressure to hire;
(4) non-verbal behaviour and impression management; (5) effects
of personal characteristics attractiveness, gender, race of the
interviewers and (6) interviewers behaviour telegraphing, which
refers to the interviewer inadvertently evoking the expected answers.
4.5
Designing the structured situational interview procedure is as follows:

Step 1 Job analysis; Step 2 Rate the jobs duty; Step 3 Create
interview questions; Step 4 Create benchmark answers; and Step 5
Appoint the interview panel and conduct interviews. Web-based
applications are available to help interviewers design and organise
behaviour-based selection interviews.
Study Questions
1.
You are the HR officer for Selasih Company. You receive a request
from the Finance Department to hire a secretary for their department.
They also request you to assist them in designing interview questions in
order to avoid negligent hiring. Which type of interview would you
recommend? Why? Design four interview questions which are related to
the position.
2.
In your opinion, how can personal interviewer behaviour undermine

the usefulness of an interview? Justify your answer by using research
findings.
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STUDY GUIDE
Topic 5:
BMHR5103
Training and Performance Appraisal
Learning Outcomes
1.
Summarise the purpose and process the employee orientation;
2.
List and briefly explain each of the five steps in the training process;
3.
Describe and illustrate how you would identify training requirements;
4.
List and briefly discuss four management development programmes;
5.
Define performance management and discuss how it differs from

performance appraisal; and
6.
Develop, evaluate and administer at least four performance appraisal

tools.
Topic Overview
This topic deals with increasing your effectiveness in training employees,
including orienting employees, the training process, analysing training needs,
and implementing training and development programmes. Also, we will learn
about the performance appraisal process, appraisal methods, performance
appraisal problems and solutions, performance management, and the
appraisal interview.

Focus Areas
Assigned Readings
Pearson.
5.1
5.2
5.3
5.4
5.5
5.6
Orienting and Onboarding New

Employees
The Purposes of Employee
Orientation/Onboarding
Overview of the Training Process
Implementing Training Programme
Managing Organisational Change
Programmes
Evaluating the Training Effort
Chapter 8, p 270.
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STUDY GUIDE
5.7
5.8
5.9
BMHR5103
Basic Concepts in Performance

Management and Appraisal
Techniques for Appraising
Performance
Dealing with appraisal and
interviews Problems
Content Summary
5.1
Training and Developing Employees

x
The purpose of employee orientation/onboarding Employees

should receive print or Internet-based employee handbooks
outlining benefits, policies and safety measures.
The orientation process:

(a)
Conducting the training needs analysis
(b)
Strategic training needs analysis
(c)
Current training needs analysis
(d)
Task analysis: Analysing new employees training needs
(e)
Performance
training
analysis:
Assessing
current
employees
Designing the training programme Designing means planning

the overall training programme including objectives, delivery
methods and programme evaluation. This involves seven steps.
On-the-job training (OJT) Having a person learn a job by

actually doing the job. It involves preparing the learner, presenting
the operation, doing a tryout and conducting follow-up.
Apprenticeship training A structured process by which people

become skilled workers through a combination of classroom
instruction and on-the-job training.
Informal learning Learning through day-to-day unplanned

interactions between the new worker and his/her colleagues.
Job instruction training Teaching a new employee the logical

sequence of steps in a job.
Lectures Quick and simple ways to provide knowledge to large

groups.
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Programmed learning A step-by-step self-learning method that

involves three parts: 1) Presenting questions, facts or problems to
the learner; 2) Allowing the person to respond; and 3) Providing
feedback on the accuracy of the answers.
Methods of Training:
(a)
Audiovisual-based training
(b)
Vestibule training
(c)
Electronic performance support systems (EPSS)
(d)
Videoconferencing
(e)
Computer-based training (CBT)
(f)
Simulated learning
(g)
Interactive learning
(h)
Internet-based training
(i)
Improving productivity through HRIS: Learning management
(j)
Mobile learning
(k)
Virtual classroom
(l)
Lifelong and literacy training techniques
(m) Team training

x
Strategy and development Management development is any

attempt to improve managerial performance by imparting
knowledge, changing attitudes and increasing skills. The general
management development process consists of (1) assessing the
companys strategic needs, (2) appraising the managers current
performance, and (3) developing the manager. Succession
planning is part of this process and is the process through which a
company plans for and fills senior-level openings.
Managerial on-the-job training methods include job rotation,

coaching/ understudy approach and action learning.
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5.2
BMHR5103
Off-the-job management training and development techniques

include case studies, outside seminars, management games, role
playing, behaviour modifications, corporate universities and
executive coaches.
What to change When organisations are faced with the need to

manage change, there are five different aspects that can be
targeted, including strategy, culture, structure, technologies and
attitudes/skills.
Lewins change process The most difficult part of implementing

organisational change is overcoming employees resistance to it.
Psychologist Kurt Lewin formulated a classic explanation of how
to implement change in the face of resistance. His change
process consists of three steps: 1) Unfreezing; 2) Moving; and
3) Refreezing.
Training effects to measure Four basic categories of training

outcomes can be measured: 1) Reaction; 2) Learning;
3) Behaviour, and 4) Results.
Performance Management and Appraisals

x
The performance appraisal process Stripped to its essentials,

performance appraisal always involves the three-step
performance appraisal process: 1) Setting work standards;
2) Assessing the employees actual performance relative to
those standards, which usually involves some form of rating; and
3) Providing feedback to the employee with the aim of helping him
or her to eliminate performance deficiencies or to continue to
perform above par.
Why appraise performance? For several reasons: 1) Many

employers still base pay, etc. on employee appraisals;
2) Appraisals play an integral role in the employers performance
management process; 3) The appraisal lets the boss and
subordinate develop a plan for correcting any deficiencies, and
reinforce those things the employee does correctly; 4) They serve
a useful career planning purpose; and 5) Appraisals play a role in
identifying training and development needs.
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Who should do the appraising?

(a)
The immediate supervisor
(b)
Peer appraisals
(c)
Rating committees
(d)
Self-ratings
(e)
Appraisal by subordinates
(f)
360-degree feedback Ratings are collected from the

employees supervisors, subordinates, peers, and internal or
external customers.
There are 12 techniques for appraising performance.
There are also seven technical problems that can affect the
fairness of the process.
Guidelines for effective appraisals Appraisal problems can be

more effective by following these five tips: a) Know the problem; b)
Use the right appraisal tool; c) Keep a diary; d) Get agreement on
a plan; and e) Be fair.
How to handle a defensive subordinate Recognise that

defensive behaviour is normal; never attack a persons defences;
postpone action; and recognise your own limitations.
Study Questions
1.
In your opinion, for which position would you apply 360-degree

evaluation? Why?
2.
Due to globalisation issue, the top management of Selasih Company

decided to improvise their work related guidebook. The most significant
change is to implement the concept of 5S. This is to cultivate safety
behaviour among the employees. Based on your observation, this idea
will not be easily accepted by the employees. By applying Kurt Lewin
management change process, explain the process that you will use to
implement the idea smoothly.
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Topic 6:
BMHR5103
Managing Employees
Learning Outcomes
1.
Describe a comprehensive approach to retaining employees;
2.
Explain why employee engagement is important and how to foster such

engagement;
3.
List and discuss the four steps in effectively coaching an employee; and
4.
List the main decisions employers should address in reaching

promotion decisions.
Topic Overview
In this topic, we will learn how to effectively improve employee retention,
employee engagement, career development, coaching employees and
promotions. This topic also highlights issues in career management.

Focus Areas
Assigned Readings
Pearson.
6.1
6.2
6.3
Managing Employee Turnover and

Retention
Employee Engagement
Career Management

Content Summary
6.1
Costs of turnover There are tangible and intangible costs associated

with turnover. Reducing turnover requires identifying and managing
the reasons for both voluntary and involuntary turnover.
6.2
Managing voluntary turnover Voluntary turnover occurs for many

reasons including job dissatisfaction, poor pay, lack of promotion
opportunities, work-life balance issues and inadequate health care
benefits.
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6.3
Retention strategies for reducing voluntary turnover Any strategy

begins with identifying the causes of turnover.
6.4
Job withdrawal is any action which places physical or psychological

distance between the employee and the organisation.
6.5
Careers terminology Occupational positions a person has had over

many years.
6.6
Psychological contract What the employer and employee expect of

each other is part of what psychologists call a psychological contract.
The psychological contract identifies each partys mutual
expectations.
6.7
Sources of bias in promotion decisions Women and people of colour

still experience relatively less career progress in organisations, and
bias and more subtle barriers are often the cause.
6.8
Promotions and the law Employer promotions must comply with all
anti-discrimination laws.
6.9
Managing transfers Transfers are moves from one job to another,

usually with no change in salary or grade. The frequent relocation of
employees has been assumed to have a damaging effect on
transferees family life. Transfers are also financially costly.
6.10
Managing retirements Some employers are instituting formal preretirement counselling aimed at easing the passage of their
employees into retirement. A large majority of employees have said
they expect to continue to work beyond the normal retirement age.
Part-time employment is an alternative to outright retirement.
Employers can benefit from retirement planning by becoming able to
anticipate labour shortages.
Study Questions
1.
How do you educate your employees about glass ceiling?
2.
As the HR manager for Selasih Company, you notice that the

performance of your senior executive is decreasing. You decide to
overcome this problem. List and discuss four suggestions to increase
his performance.
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Topic 7:
BMHR5103
Pay, Incentives and Benefits
Learning Outcomes
1.
List the basic factors determining pay rates;
2.
Define and give an example of how to conduct a job evaluation;
3.
Discuss the main incentives for individual employees;
4.
Describe the main incentives for managers and executives;
5.
Name and define each of the main pay for time not worked benefits;
and
6.
Discuss the main insurance benefits, retirement benefits, and main

employees services benefits.
Topic Overview
In this topic, we will learn how to establish pay plan, job evaluation
techniques for finding the relative worth of a job and how to conduct online
and offline salary surveys. Also, we learn how managers use performancebased incentives to motivate employees. These include employee benefits
such as insurance, retirement and services benefits.

Focus Areas
Assigned Readings
Pearson.
7.1
7.2
7.3
7.4
7.5
7.6
Basic Factors in Determining Pay

Rates
Job Evaluation Methods
How to Create a MarketCompetitive Pay Plan
Contemporary Topics in
Compensation
Employee Incentives and
Recognition Programme
Incentives for Salespeople

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7.7
Incentives for Managers and

Executives
7.8
Team and Organisation-wide
Incentive Plans
7.9
Types of Benefits
7.10 Pay for Time Not Worked
7.11 Insurance Benefits
7.12 Retirement Benefits
7.13 Personal Services and FamilyFriendly Benefits
7.14 Flexible Benefits Programme

Content Summary
7.1
Employee compensation refers to all forms of pay or rewards going to

employees, which include direct financial payments and indirect
payments. Direct financial payments include wages, salaries,
incentives, commissions and bonuses. Indirect payments include
financial benefits like employer-paid insurance and vacations.
7.2
Employers use two basic approaches for setting pay rates: marketbased approaches and job evaluation approaches.
7.3
Compensable factors Factors that jobs have in common can be

used to establish how the jobs compare to one another.
7.4
Job evaluation methods include:

x
Ranking The simplest job evaluation method ranks each job

relative to all other jobs, usually based on some overall factor like
job difficulty. There are several steps in the job ranking method;
obtain job information; select and group jobs; select compensable
factors; rank jobs; and combine ratings.
Job classification This is a simple, widely used method in which

jobs are categorised into groups; all the jobs in each group are of
roughly the same value for pay purposes. The groups are called
classes if they contain similar jobs or grades, or if they contain
jobs that are similar in difficulty but otherwise different.
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7.5
BMHR5103
Point method It involves identifying several compensable factors

for the jobs, as well as the degree to which each factor is present
in each job. Assume there are five degrees of the compensable
factor responsibility a job could contain. Further, assume you
assign a different number of points to each degree of each
compensable factor. Once the evaluation committee determines
the degree to which each compensable factor (like responsibility
and effort) is present in the job, the committee can calculate a
total point value for the job by adding up the corresponding points
for each factor. The result is a quantitative point rating for each
job.
Computerised job evaluations Using quantitative job evaluation

methods such as the point method can be time-consuming.
Computer-aided job evaluation streamlines this process. Most
computerised systems have two main components: structured
questionnaires and statistical models. These elements allow the
computer program to price jobs more or less automatically by
assigning points.
The process to create a competitive pay plan involves the following

steps:
Step 1 Choose benchmark jobs;
Step 2 Select compensable factors The choice of compensable
factors depends on tradition;
Step 3 Assign weights to compensable factors;
Step 4 Determines the relative amount of each compensable factor
the job contains;
Step 5 Convert percentages;
Step 6 Define factor degrees;
Step 7 Determine for each job, its factors degrees and assign
points.
7.6
What is a competitive pay system? It is a pay system that aligns the

organisations pay with the relevant labour markets.
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7.7
BMHR5103
Individual employee incentive and recognition programmes:

x
Piecework plans Piecework involves paying the worker a sum

(piece rate) for each unit produced. Straight piecework entails
strict proportionality between results and rewards regardless of
output. With a standard hour plan, the worker gets a premium
equal to the percent by which his/her performance exceeds the
standard.
Merit Pay as an incentive Merit pay or a merit raise is any salary

increase the firm awards to an employee based on his/her
individual performance. It is different from a bonus in that it usually
becomes part of the employees base salary, whereas a bonus is
a one-time payment.
Incentives for professional employees Professional employees

are those whose work involves the application of learned
knowledge to the solution of the employers problems, such as
lawyers, doctors, economists, and engineers. Making incentive
pay decisions for professional employees can be challenging
because such employees are usually paid well anyway.
Non-financial and recognition-based awards Recognition

programmes usually refer to formal programmes such as
employee-of-the-month
programmes.
Social
recognition
programmes are more informal manager-employee exchanges,
including praise and approval. Performance feedback is similar
but provides quantitative or qualitative information on performance
in order to change the performance or maintain it. Most employers
combine both financial and non-financial incentives to motivate
employees.
Online and IT-supported awards There are many reasons to use

Internet sites to manage awards programmes. The sites can offer
a much broader range of products than most employers could
catalogue and offer by themselves. And perhaps most importantly,
the whole process is expedited, so its much easier to bestow and
deliver the awards.
Job designs Research has shown that job design is a primary

driver of employee engagement.
7.8
There are three approaches to design team incentives:
7.9
Profit-sharing plans involve employees receiving a share of the

companys annual profits. There are several types of profit-sharing
plans: cash plans, Lincoln Incentive System and deferred profitsharing plans.
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7.10
Scanlon Plan This is an incentive plan developed in 1937 by Joseph

Scanlon. The basic features of the plan include philosophy of
cooperation, identity, competence, involvement system, and sharing
of benefits formula.
7.11
Implementing a plan The basic eight steps are; 1) Establish general

plan objectives; 2) Define specific performance measures; 3) Decide
on a funding formula; 4) Decide on a method for dividing and
distributing the employees share of the gains; 5) Choose the form of
payment; 6) Decide how often bonuses are to be paid; 7) Develop the
involvement system; and 8) Implement the plan.
7.12
Benefits are indirect financial and non-financial payments.
7.13
There are seven categories of pay for time not worked:
Figure 7.1: Seven categories of pay for time not worked
7.14
Workers compensation refers to the sure, prompt income and

medical benefits provided in work-related accidents to the victims or
their dependents, regardless of fault. Every state has its own workers
compensation law and administrative commission, and some run their
own insurance programmes. Most states require employers to carry
workers compensation insurance. Neither the state nor the federal
government contributes any funds for workers compensation.
7.15
Retirement benefits includes social security and pension plans.
7.16
Personal services are being provided by many companies. Options

may include credit unions, legal services, and counselling.
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7.17
The cafeteria approach A cafeteria benefits plan, which is generally

synonymous with a flexible benefits plan, is where each employee is
given a benefits fund budget to spend on whichever benefits he/she
wants once the employer limits the total cost for each benefits
package and includes certain non-optional items. Flexible spending
accounts let employees pay for certain benefits expenses with pretax
dollars. Core plus option plans establish a core set of benefits, which
are usually mandatory for all employees; then the employees can
choose from various benefits options.
7.18
Benefits and Employee Leasing Many businesses do not have the

resources or employee base to support the cost of employee benefits.
Employee leasing firms assume all or most of the employees HR
functions.
7.19
Flexible work
workweeks.
7.20
Other flexible work arrangements Job sharing can be useful for

retirement-aged employees, allowing the company to retain the
employee, who experiences reduced hours. Work sharing is when a
whole group reduces its hours to prevent layoffs. Telecommuters work
at home and use phones and the Internet to conduct business.
schedules
include
flexitime
and
compressed
Study Questions
1.
Design a competitive salary scheme for HR executives. You are

required to apply the steps listed for the process to create a competitive
pay plan.
2.
Compare and contrast the concept of flexitime and compressed

workweeks.
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Topic 8:
BMHR5103
Handling Work Related Issues
Learning Outcomes
1.
Explain what is meant by ethical behaviour at work;
2.
Discuss important factors that shape ethical behaviour at work;
3.
Give a brief history of the US labour movement; and
4.
Discuss the main features of at least three major pieces of labour

legislation.
Topic Overview
This topic will explain ethics, employee rights and fair treatment in HRM
matters essential for positive employee relations. It will also discuss dealing
effectively with unions and grievances.

Focus Areas
Assigned Readings
Pearson.
8.1
Ethics and Fair Treatment at

Work
8.2
What Shapes Ethical Behaviour
at Work?
8.3
Using HRM Methods to Promote
Ethics and Fair Treatment
8.4
Managing Employee Discipline
and Privacy
8.5
Managing Dismissals
8.6
Why do Workers Organise?
8.7
What do Unions Want?
8.8
The Union Drive and Election
8.9
The Collective Bargaining
Process
8.10 Dealing with Disputes and
Grievances

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Content Summary
8.1
Ethics and Fair Treatment at Work

x
Ethics refers to the principles of conduct governing an individual

or a group. Ethical decisions also involve morals, which are
societys accepted standards of behaviour. It would simplify things
if it was always clear which decisions were ethical and which were
not. Unfortunately, it is not.
Ethics and the law The law is not the best guide about what is
ethical because something may be legal but not right, and
something may be right but not legal. Dont lie, dont cheat, and
dont steal. We were all raised with essentially the same values.
Ethics means making decisions that represent what you stand for
not just what is legal.
Ethics, justice and fair treatment Experts generally define

organisational justice in terms of its three components: distributive
justice, procedural justice, and interpersonal or interactive justice.
Distributive justice refers to the fairness and justice of the
decisions result. Procedural justice refers to the fairness of the
process. Interactional or interpersonal justice refers to the
manner in which managers conduct their interpersonal dealings
with employees, and in particular to the degree to which they
treat employees with dignity as opposed to abuse or disrespect.
Ethics, public policy, and employee rights Few employers rely

solely on managers ethics or sense of fairness to ensure that they
do what is right by their employees. An employee may have the
right to sue the employer under a number of different
circumstances.
Using HRM methods to promote ethics and fair treatment

(a)
Selection Screening out undesirables can actually start

before the applicant even applies, if the HR department
creates recruitment materials containing explicit references
to the companys emphasis on integrity and ethics. The
selection process also sends signals about the companys
values and culture in terms of ethical and fair treatment.
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(b)
Ethics training Ethics training typically plays a big role in

helping employers nurture a culture of ethics and fair play.
Such training usually includes showing employees how to
recognise ethical dilemmas, how to use ethical frameworks
to resolve problems, and how to use HR functions in ethical
ways.
(c)
Performance appraisal The firms performance appraisal

processes provide another opportunity to emphasise a
commitment to ethics and fairness. The appraisal can
measure employees adherence to high ethical standards.
(d)
Reward and disciplinary systems Managers and

organisations need to reward ethical behaviour and penalise
unethical behaviour.
Fairness in disciplining The purpose of discipline is to encourage

employees to behave sensibly at work. In an organisation, rules
and regulations serve about the same purpose that laws do in
society; discipline is called for when one of these rules or
regulations is violated. A fair and just discipline process is based
on three pillars: Clear rules and regulations; a system of
progressive penalties; and an appeals process.
Bullying and victimisation This is becoming a serious problem in

the workplace and usually involves an imbalance of power,
suggests an intent to cause harm, and occurs frequently. It can
also take many forms. These forms are discussed.
Employee privacy The four main types of employee privacy

violations upheld by courts are intrusion, publication of private
matters, disclosure of medical records, and appropriation of an
employees name or likeness for commercial purposes.
Background checks, monitoring off-duty conduct and lifestyle,
drug testing, workplace searches, and monitoring of workplace
activities trigger most privacy violations.
Termination at will and wrongful discharge Termination at will

means that without a contract, either the employer or the
employee could terminate at will the employment relationship.
Wrongful discharge refers to a dismissal that violates the law or
that fails to comply with contractual arrangements stated or
implied by the employer, for instance, in employee manuals.
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8.2
BMHR5103
Grounds for dismissal There are four bases for dismissal. In

dismissing an employee, the employer should take care to ensure
that all keys and company property are returned, Internet
passwords disabled and employee accounts inactivated.
Labour Relations and Collective Bargaining

x
Union security The five types of union security are closed shop,
union shop, agency shop, preferential shop and maintenance of
membership arrangement.
The union drive and election involves five steps.
Figure 8.1: Five steps in the union drive and election
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How to lose an NLRB election The four sure ways to lose

an election are: 1) Being asleep at the switch; 2) Appointing
a committee; 3) Concentrating on money and benefits; and
4) Delegating too much to division or branches.
The supervisors role Supervisors are the first line of defence

when it comes to the unionising effort. Supervisors need some
special training because they can discover the early signs of
union activity or they can inadvertently take actions that hurt their
employers union-related efforts. Supervisors must be
knowledgeable about what they can and cannot do to legally
hamper organising activities.
In collective bargaining, good faith means that both parties

communicate and negotiate, that proposals are matched with
counterproposals, and that both parties make every reasonable
effort to arrive at an agreement.
Bargaining items Labour law sets out categories of items that

are subject to bargaining; mandatory, voluntary and illegal items.
Mandatory items are items that a party must bargain over if they
are introduced by the other party. Voluntary (permissible) items
are neither mandatory nor illegal; they become a part of the
negotiations only through the joint agreement of both
management and union. Illegal items are forbidden by law.
Third party involvement Three types of third-party interventions

are used to overcome an impasse: mediation, fact-finding and
arbitration.
Sources of grievances Employees may use just about any factor

involving wages, hours or conditions of employment as the basis
of a grievance.
Study Questions
1.
Justify the reason employees join unions.
2.
One of your employees decides to contest for a position in a union.

What is your role as a supervisor in this matter?
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Topic 9:
BMHR5103
Safety and Global Issues
Learning Outcomes
1.
Explain the supervisors role in safety;
2.
Explain the basic facts about safety laws and Occupational Safety and
Health Administration (OSHA);
3.
List and explain five ways to prevent accidents;
4.
List the HR challenges of international business; and
5.
Illustrate with examples how intercountry HRM differs.
Topic Overview
This topic provides the basic knowledge to deal with workplace safety and
health issues. This topic will also show you how to improve effectiveness by
applying your HR knowledge and skills when global issues are involved.

Focus Areas
Assigned Readings
Pearson.
9.1
9.2
9.3
9.4
9.5
9.6
9.7
9.8
Safety and the Manager

What Causes Accidents?
How to Prevent Accidents
Workplace Health Hazards:
Problems and Remedies
Occupational Security and Safety
Adapting HR Activities to
Intercountry Differences
Staffing the Global Organisation
Training and Maintaining
Employees Abroad

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Content Summary
9.1
Employee Safety and Health

x
Why is safety important? Safety and accident prevention concern

managers for several reasons, one of which is the staggering
number of workplace accidents.
Managements role in safety Reducing accidents often boils

down to reducing accident-causing conditions and accidentcausing acts. Most safety experts would agree that safety should
start at the top.
What top management can do The employer should

institutionalise top managements commitment with a safety policy
and promote it.
The supervisors role in safety Safety inspections should always

be part of the supervisors daily routine.
Inspections and citations are how OSHA enforces its standards.

The agency has limited funds so it tries to encourage cooperative
safety programmes as well.
Inspection priorities Inspections in order of priority are:

1) Imminent danger situations; 2) Catastrophes, fatalities and
accidents that have already occurred (employers must report
within 48 hours); 3) Valid employee complaints of alleged violation
of standards; 4) Periodic special-emphasis inspections aimed
at high-hazard industries, occupations or substances; and
5) Random inspections and re-inspections. OSHA conducts an
inspection within 24 hours for immediate danger complaints, and
within three working days when a serious hazard exists. OSHA
responds within 20 working days for a non-serious complaint filed
in writing by a worker or union.
Managers inspection guidelines fall into three categories: initial

contact, opening conference and walk-around inspection.
Safety issues at work place include basic industrial hygiene, and

exposure at work There are four major sources of occupational
respiratory diseases: asbestos, silica, lead, and carbon dioxide. Of
these, asbestos has become a major concern. Other hazards
include infectious diseases, air quality, alcoholism and substance
abuse, stress, burnout and depression.
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9.2
BMHR5103
Burnout is the total depletion of physical and mental resources

caused by excessive striving to reach an unrealistic work-related
goal. Some suggestions for alleviating burnout include breaking
your patterns; getting away from it all periodically; reassessing
your goals in terms of their intrinsic worth; and thinking about your
work.
Violence at work Violence against employees, including

homicide and robbery, has become an enormous problem at work.
Managing Global Human Resources

x
The managers global challenges include deployment, knowledge

and innovation dissemination, as well as identifying and
developing talent on a global basis. Complicating these decisions
are the cultural, political, legal and economic differences among
countries and their peoples.
Cultural factors Countries differ widely in their cultures, which are

the basic values to which their citizens adhere. Cultural differences
from country to country necessitate corresponding differences in
management practices among a companys subsidiaries because
local cultural norms can undermine an employers attempts to
have uniform codes of conduct.
Economic systems Differences in economic systems translate

into differences in HR practices. Differences in labour costs are
substantial.
Offshoring Having employees abroad perform jobs that the firms

domestic employees previously did in-house is growing by leaps
and bounds.
Management values and international staffing policy

Ethnocentric-run firms staff foreign subsidiaries with parentcountry nationals because they believe that home country
attitudes, management styles and knowledge are superior to the
host country. Polycentric-run firms staff foreign subsidiaries with
host-country nationals because they are the only ones that can
really understand the culture and the behaviour of the host
countrys market. Geocentric-run firms staff foreign subsidiaries
with the best people for key jobs regardless of nationality because
they believe that the best manager for any specific position
anywhere in the world may be in any of the countries in which the
firm operates.
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Repatriation: problems and solutions Some common repatriation

problems are fearing that out of sight is out of mind; returning to
mediocre or makeshift jobs; returnees are taken aback when the
trappings of the overseas job are lost upon return; being
overlooked for promotions; and experiencing culture shock. Some
possible solutions are written repatriation agreements, sponsors,
career counsellors, open communications and reorientation
programmes.
Study Questions
1.
As a HR managing director, you realise that 40% of your international

assignment among your staff fail. Your top management requests you
to justify and provide a solution to this issue. Prepare a report to justify
the reasons and list and discuss four suggestions to solve this issue.
2.
Due to a recent accident which has caused the death of one employee,
your company will be inspected by OSHA. Discuss your role in handling
this visit.
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Topic 10: Managing HR in Small and Entrepreneurial

Firms
Learning Outcomes
1.
Explain why HRM is important to small businesses and how small

business HRM is different from that in large businesses;
2.
Give four examples of how entrepreneurs can rely on the Internet and
the government to support HR efforts;
3.
List five ways entrepreneurs can use their small size to improve their
HR processes; and
4.
Discuss how you would choose and deal with a professional employee
organisation.
Topic Overview
This topic will help you apply what you know about HRM to running a small
business includes the small business challenge; using the Internet and
government tools to support the HR effort; leveraging small size with
familiarity, flexibility, fairness, and informality; using professional employer
organisations; and managing HR systems, procedures, and paperwork.

Focus Areas
Assigned Readings
Pearson.
10.1 The Small Business Challenge

10.2 Leveraging Small Size
10.3 Managing HR Systems,
Procedures and Paperwork

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Content Summary
10.1
Managing HR in small firms is different for four main reasons: size,

priorities, informality and the nature of the entrepreneur.
10.2
Implications The differences listed above result in potential

implications: 1) Small business owners run the risk that their relatively
rudimentary HR practices will put them at a competitive disadvantage;
2) There is a lack of specialised HR expertise compared to larger firms
that have a full range of HR functions; 3) The smaller firm is probably
not adequately addressing potential workplace litigation. Most small
business owners are well aware of the threat of employment-related
litigation; 4) The small business owner may not be fully complying with
compensation regulations and laws; and 5) Duplication and paperwork
leads to inefficiencies and data entry errors. For small businesses,
employee data often appears on multiple HR management forms.
10.3
Employment planning and recruiting Internet resources can make

small business owners almost as effective as their large competitors at
writing job descriptions and building applicant pools. Small business
owners can use online recruiting tools to post positions on popular
Internet job boards.
10.4
Employment selection For a small business, one or two hiring

mistakes could wreak havoc.
10.5
Employment training Although small companies cannot compete

with the training resources of larger organisations, Internet training can
provide, at a relatively low cost, the kinds of professional employee
training that was formerly beyond most small employers reach.
10.6
Employment appraisal and compensation Even small employers

now have easy access to computerised and online appraisal and
compensation services. Lack of easy access to salary surveys once
made it difficult and time consuming for smaller businesses to finetune their pay scales.
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10.7
Employment safety and health Without HR managers or safety

departments, small businesses often do not know where to turn for
advice on promoting employee safety. OSHA provides free on-site
safety and health services for small businesses. The OSHA Sharp
programme is a certification process through which OSHA certifies
that small employers have achieved commendable levels of safety
awareness.
10.8
Flexibility in training Small companies typically take a more

informal approach to training and development. Smaller firms also
tend to focus any management development training on learning
specific firm-related competencies.
10.9
Four-step training process The process involves writing a job

description, developing a task-analysis record form, developing a job
instruction sheet and preparing a training programme.
Study Questions
1.
You own a salon and you have five employees. In order to increase
their performance and skills, you decide to design a training module for
your employees. List four modules that you think will enhance their skills
and subsequently will lead to better performance. Explain the reason for
selecting each module and how it will increase your business.
2.
Explain the role of selection in determining small business performance.
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Appendices
Appendix A: Learning Support
Seminars
There are 15 hours of face-to-face facilitation, in the form of FIVE seminars of
three hours each. You will be notified of the date, time and location of these
seminars, together with the name and e-mail address of your facilitator, as
soon as you are allocated a group.
Discussion and Participation

Besides the face-to-face seminars, you have the support of online
discussions in myVLE with your facilitator and coursemates. Your
contributions to online discussions will greatly enhance your understanding of
the course content, and help you do the assignment(s) and prepare for the
examination.
Feedback and Input from Facilitator

As you work on the activities and the assigned text(s), your facilitator will
provide assistance to you throughout the duration of the course. Should you
need assistance at any time, do not hesitate to contact your facilitator and
discuss your problems with him/her.
Bear in mind that communication is important for you to be able to get the
most out of this course. Therefore, you should, at all times, be in touch with
your facilitator, e-facilitator and coursemates, and be aware of all the
requirements for successful completion of the course.
Tan Sri Dr Abdullah Sanusi (TSDAS) Digital Library

For the purpose of referencing materials and doing library-based research,
OUM has a comprehensive digital library. For this course, you may use the
following databases: InfoTrac, ProQuest and EBSCO. From time to time,
materials from these databases will be assigned for additional reading and
activities.
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STUDY GUIDE
BMHR5103
Appendix B: Study Tips

Time Commitments for Study
You should plan to spend about 12 hours of study time on each topic, which
includes doing all assigned readings and activities. You must also set aside
time to discuss work online. It is often more effective to distribute the study
hours over a number of days rather than spend a whole day studying one
topic.
Study Strategy
The following is a proposed strategy for working through the course. If you
have difficulty following this strategy, discuss your problems with your
facilitator either through the online forum or during the seminars.
(i)
The most important step is to read the contents of this Study Guide
thoroughly.
(ii)
Organise a study schedule (as recommended in Table 2). Take note of

the amount of time you spend on each topic as well as the dates for
submission of assignment(s), seminars and examination.
(iii)
Once you have created a study schedule, make every effort to stick to
it. One reason learners are unable to cope with postgraduate courses is
that they procrastinate and delay completing their course work.
(iv)
You are encouraged to do the following:

x
Read the Study Guide carefully and look through the list of topics
covered. Try to examine each topic in relation to other topics.
Complete all assigned readings and go through as many

supplementary texts as possible to get a broader understanding of
the course content.
Go through all the activities and study questions to better

understand the various concepts and facts presented in a topic.
Draw ideas from a large number of readings as you work on the

assignments. Work regularly on the assignments as the semester
progresses so that you are able to systematically produce a
commendable paper.
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STUDY GUIDE
BMHR5103
(v)
When you have completed a topic, review the Learning Outcomes for
the topic to confirm that you have achieved them and are able to do
what is required.
(vi)
After completing all topics, review the Learning Outcomes of the course
to see if you have achieved them.
53

STUDY GUIDE BMHR5103 Human Resource Management

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STUDY GUIDE

Human Resource Management

CENTRE FOR GRADUATE STUDIES

Dr Siti Rohaida Mohamed Zainal

Centre for Instructional Design and Technology

First Edition, August 2012

Human Resource Management

Human Resource Management

INTRODUCTION TO STUDY GUIDE

Human Resource Management

Human Resource Management

PART ONE: COURSE INTRODUCTION

Present HRM practices, concepts and the application;

Explain the roles of HR manager in determining the performance of

Describe HR managers activities;

Explain the development of HR through HR development, career

Discuss employee reward systems such as incentives, pensions and

Identify the components of organisational employment relations and

Explain what is meant by HRM, its theories, concepts and the

Assess the effectiveness of the role of a HR manager in relation to

Respond to how training and development programmes, career

Human Resource Management

Outline key issues such as remunerations, incentive, pension and

Analyse approaches taken by organisations to take care of employment

Reading course materials and completing exercises

Attending 5 seminar sessions (3 hours for each session)

Engaging in online discussions

Human Resource Management

Mondy, R. W. (2008). Human resource management (10th ed.). Upper

Additional Recommended Readings

Human Resource Management

Human Resource Management

PART TWO: LEARNING GUIDES

Understanding the foundation of HRM and Strategic

Job Analysis and Talent Management

Planning, Recruiting and Interviewing

Training and Performance Appraisal

Pay, Incentives and Benefits

Handling Work Related Issues

Safety and Global Issues

Topic 10: HR in Small- and Medium-Sized Enterprises (SME)

Human Resource Management

Learning Outcomes: outline the specific tasks to be accomplished;

Topic Overview: briefly explains what the topic touches on so as to

Focus Areas: identify the main and sub areas to be covered;

Content Summary: provides an

Study Questions: help you to focus on key subject areas.

Figure 1: Organisation of the Learning Guide

Human Resource Management

Understanding the Foundation of HRM and

Explain what HRM is and how it relates to the management process;

Define and provide an example of evidence-based HRM;

Explain the importance of strategic planning to all managers; and

Describe the tools of strategic HRM.

Focus Areas and Assigned Readings

What is HRM and Why is it

Human Resource Management

What is HRM and why it is important The management process

HR managers also have line, coordinative and staff functions.

There are six categories of trends shaping HRM, namely,

Knowledge workers and human capital This refers to the

Goal-setting and the planning process Strategic planning is

Human Resource Management

Figure 1.1 below shows the seven stages of strategic management.