Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 1

 CHAPTER 10
HUMAN RESOURCE
MANAGEMENT

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 2
 Learning Outcomes

At the end of this chapter, students should be able to:

explain what human resource management is and how its
functions are interrelated
describe the important elements and process of each of these
functions
discuss how these HR functions help in achieving firms
strategic goal and objectives and why HRM is considered a firms
strategic partner
discuss the methods and techniques that should be used to
solved human resources related problems
explain the various employment laws in Malaysia and how it
relates to HRM practices

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 3
 HRM Functions

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 4
 HR Planning Process

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 5
 HR Planning Process (cont.)

Forecasting personnel needs

trend analysis
ratio analysis
computer forecasting
goal setting and strategies planning

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 6
 HR Planning Process (cont.)

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 7
 Job Analysis

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 8
 Job Analysis (cont.)

Methods and sources of job analysis

Uses of job analysis
Recruitment and selection
Training
Compensation
Performance appraisal

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 9
 Recruitment and Selection

Types and sources of recruitment

Methods of recruitment
Selection

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 10
 Recruitment and Selection (cont.)

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 11
 Training and Employee
Development
Employee orientation
Training process
Step 1 Needs assessment
Step 2 Employees readiness for training
Step 3 Plan training programme
Step 4 Ensuring transfer of training
Step 5 Selecting training methods and implementing the
programme
Step 6 Evaluating training programmes

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 12
 Training and Employee
Development (cont.)
Employee development
Formal education
Assessment
Job experience
Interpersonal relationships

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 13
 Compensation and Benefits

Strategic HR function
Used to achieve firms strategic goals
Helps attract the best candidates
Motivates employees to achieve productivity, improves
employee satisfaction, helps retain and maintain existing high
performers, and encourages employee loyalty

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 14
 Performance Management

Purpose of performance management

Performance appraisal
Who should conduct the appraisal?
Immediate supervisors
Peer appraisals
Employee self-appraisals
Committee appraisals
Multisource appraisals

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 15
 Performance Management (cont.)

Performance appraisal methods

Category rating methods
Comparative methods
Narrative methods
Behavioural/objective methods
Rater errors

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 16
 Performance Management (cont.)

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 17
 Industrial Relations and Employment
Laws

Trade unions
Trade disputes
Negotiation
Conciliation
Arbitration
Industrial actions
Picketing
Strike
Lockout

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 18
 Employment Laws

Laws on work hours

Rest days
Holidays
Annual leave
Sick leave
Maternity leave and allowance
Employment of foreign workers
Terminating the service of the employee

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 19
 Employment Laws (cont.)

Types of disciplinary actions

Approaches to discipline administration
Hot stove rule
Progressive discipline
Positive discipline
Counselling
Written documentation
Final warning
Discharge

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 20
 Occupational Safety and Health

Duties of employers and self-employed persons to their

employees
Safety policy and safety training
Duties of employees
Notification of accidents, dangerous occurrences,
occupational poisoning and occupational diseases

Fundamentals of Entrepreneurship All Rights Reserved

Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 21