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MGT340 – HUMAN RESOURCE

MANAGEMENT
CHAPTER 1 – INTRODUCTION TO
HUMAN RESOURCE
MANAGEMENT(HRM)

Prepared by: Mdm. Sarah Mardhiah Selamat


Learning Objectives
At the end of this chapter, students should be able to:
• Define human resource management (HRM)
• Describe functions and roles of HRM
• Discuss challenges faced by HR managers
DEFINITION OF HRM
• “The policies and practices involved in carrying out the
“people” or human resource aspects of a management
position, including recruiting, screening, training,
rewarding, and appraising” (Dessler)

• “The design of formal systems in an organization to


ensure effective and efficient use of human talent to
accomplish organizational goals” (Mathis)

• “The development and implementation of systems in an


organization designed to attract, develop and retain a
high-performing workforce” (Maimunah)
CHANGE AND HRM
CHALLENGES
• Changes that have taken place in society today have a
major impact on HRM.

• Employers and employees need to be aware of these


changes and to manage them successfully if they want
to stay in business.
Technological
changes

Globalization and
Employee education
increased
and expectations
competition

Workforce diversity
Technological Changes
• With the increasing influence of computers and machines,
employees’ skills and knowledge must be constantly update
in order to produce innovative products.

• In some industries, new methods of work are being


introduced all the time and employees have little choice to
learn. If employees are to remain employable, they must
willing to undergo for lifelong learning.

• 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 skills.
Globalization and Increased
Competition
• This phenomenon is partly a result of the technological
changes and due to the growth of Internet e.g. AFTA has
made compulsory for the members to eliminate import
duties on goods traded throughout the region.

• Managers must find ways of increasing productivity or


face having the company close down because of its
inability to compete with others in the same business.

• To strengthen their position in the marketplace, many


companies are merging with their rivals or acquiring new
business e.g. Banking industry, telecommunication
companies.
Cont’d…
• Employers need a flexible workforce to survive, as the
employers want:
1) To be able to hire workers on short-term contracts
because of the uncertainties they face in their
businesses.
2) To be able to dismiss workers as and when required
without paying them any retrenchment benefits.
3) To be able to outsource work to other companies e.g.
cost effective – hiring general workers.
4) Workers who are willing and capable of performing
multitasks.
5) To compensate workers based on the financial
stability of the company.
Employee Education and
Expectations
• Level of education among employees is rising as
more students are pursuing tertiary education.

• As workers become more educated, they are aware


of their employment rights and more liable to lodge a
complaint for any protection abusement.

• More people are seeking for the job which is based


on their education level.

• Hiring foreign workers is a temporary solution to


overcome the difficulty in recruiting and retaining local
workers.
Cont’d…
• Many employers are now introducing specific
programmes to manage the recruitment,
development and retention of talented workers:
a) Hiring systems, Performance Management
Schemes and special compensation packages
are being designed to attract and retain the
best employees.
b) Employers demand reasonable levels of
performance from all their employees,failing
which the employees will be dismissed.
c) Offer various training schemes to fresh graduates
to prepare them to adapt quickly with the
working environment.
Workforce Diversity
• Different age groups have different expectations – Studies
show that generation Y demand a work-life balance:
a) They are interested in organizations that offer flexibility,
telecommuting and temporary, but challenging
assignments.
b) They expect immediate satisfaction from their work, as
well as every aspect of their lives.
c) Independent, intellectually and functionally, largely
because they are the children of dual-career parents.
d) Less of loyalty – Move from one organization to another
in search of jobs which give them personal satisfaction.
e) Comfortable with technology.
f) Likely to ignore policies and procedures they find
restrictive.
SIZE OF THE
ORGANIZATION
• The larger the organization in terms of
number of employees, the more likely it is
to have a separate HR department.
• The absence of a HR department,
however, does not mean that the HRM
function is not being carried out.
Size of the Company Responsibility for HR
Small Head of Departments/All managers
Medium-sized Administration Department
Large-sized HR Department
HR Department, Training Department, and
Very large
Industrial Relations Department
FACTORS THAT DETERMINE THE
NEED OF A HR DEPARTMENT
• Size of the Organization
– The larger the organization in terms of number of
employees, the more likely it is to have a
separate HR department
• Unionization of the Workforce
– In a unionized environment, the company would
be wise to employ specialists in the field of
industrial relations and labour laws
– Pressures of global competition causing firms to
adapt by lowering costs and increasing
productivity
Cont’d…
• Ownership of the Company
– Multinational companies and joint ventures with
foreign partners can be expected to need a HR
department to provide input and knowledge in the
areas if industrial relations and labour laws

• Philosophy of Top Management


– If the management truly believes that the
organization’s successes and profits are dependent
on the cooperation and effort of the workers, they are
more likely to perceive a need for a HR department
FUNCTIONS OF THE HR
DEPARTMENT
• A well-organized, proactive HR
department is expected to carry out a
Function Description
wide range of functions
Employment Recruiting sufficient staff

Ensuring that all employees are provided with training, so that they
Training and development
are productive, and preparing them for future changes in their jobs

Establishing rates of pay, implementing payroll systems and setting


Payment/reward systems
up rewards for high-level performers

Ensuring that the organization complies with the laws relating to


Health and safety
safety & health at work
Providing a range of services and benefits which will assist in
Employee services/welfare
attracting and retaining employees

Introducing and maintaining programmes which are expected to


Productivity improvement schemes
improve the productivity of the workforce

Establishing and maintaining a harmonious relationship with trade


Industrial relations
unions
~ THE END ~