DPB30103eBookMULTAZIMAH BINTI MAT DAUDINTRODUCTION TOHUMAN RESOURCEMANAGEMENTJP, POLIMAS
Tableof ContentsJob Analysis and HumanResource StrategicPlanningPAGE 2PAGE 5TOPIC 3PAGE 9Recruitment and SelectionOrientation, Training, andDevelopmentIInnttrroodduuccttiioonn ttoo HHuummaannRReessoouurrccee MMaannaaggeemmeennttIntroduction to HumanResource ManagementTOPIC 1TOPIC 2TOPIC 4Performance AppraisalCompensation ManagementTOPIC 5Industrial RelationTOPIC 6TOPIC 7
1.1 Explain the background of human resource management.Definition of human resource management.Objective of human resource management.Discuss the factors that determine the establishment of humanresource department in an organization.- The size of the organization- Unionization of the workers- Ownership of the company- The philosophy of top managementIntroduction to Human ResourceManagementTOPIC 1PAGE 2LEARNING LESSON:1.2 Explain the function of human resource management.a.Job analysis and human resource strategic planning.b.Recruitment and selection.c.Orientation, training and developmentd.Performance appraisale.Compensation managementf. Industrial relations1.3 Environmental factors affecting human resource management.a. Internal environmental factorsi. Policy ii. Union iii. Mission iv. Employees v. Corporate cultureb. External environmental factorsi. Economy ii. Legislation iii. Competitor iv. Technology v.Shareholder
PAGE 3TOPIC 1Human Resource Management (HRM) is the process of planning,organizing, directing, and controlling the human resources of anorganization to achieve organizational goals effectively andefficiently.Human Resource Management is the management of employeesto help an organization achieve success while ensuring employeewell-being.Human Resource Management is the planning, organizing,directing, and controlling of the procurement, development,compensation, integration, maintenance, and separation ofhuman resources. (Edwin B. Flippo).Key Points in HRM DefinitionHRM focuses on people at work in an organizationIt involves recruiting, selecting, training, and developingemployeesHRM ensures proper utilization of human talentIt aims to maintain good employer–employee relationshipsHRM works to achieve both organizational goals and employeesatisfaction1.1.1 DEFINITION OF HUMANRESOURCE MANAGEMENT.
TOPIC 11.1.2 OBJECTIVE OF HUMANRESOURCE MANAGEMENT.IntroductionThe main objective of Human Resource Management is to usehuman resources effectively and efficiently to achieveorganizational goals while also ensuring employee satisfactionand development.1. Achieving Organizational GoalsHRM helps the organization achieve its goals by:Providing the right people for the right jobEnsuring employees work efficientlyAligning employee performance with company objectives➡️ Without proper HRM, organizational goals cannot be achievedeffectively.2. Effective Utilization of Human ResourcesThis objective focuses on:Making best use of employee skills and talentsAvoiding overstaffing or understaffingProper job allocation according to abilities➡️ This reduces waste and increases productivity.
TOPIC 11.1.2 OBJECTIVE OF HUMANRESOURCE MANAGEMENT.3. Human Resource PlanningHRM ensures:Future manpower needs are predictedRight number of employees at the right timeProper planning for expansion or downsizing➡️ This helps the organization stay prepared for the future.4. Employee DevelopmentHRM aims to:Improve employee skills through training and developmentEncourage career growth and promotionPrepare employees for higher responsibilities➡️ Skilled employees improve overall organizational performance.5. Motivation and Job SatisfactionHRM works to keep employees motivated by:Providing fair wages and incentivesRecognizing employee achievementsCreating a positive work environment➡️ Motivated employees perform better and remain loyal.
PAGE 3TOPIC 11.1.2 OBJECTIVE OF HUMANRESOURCE MANAGEMENT.6. Maintaining Good Employer–Employee RelationsHRM promotes:Healthy communication between management and employeesFair treatment and respectPeaceful resolution of conflicts and grievances➡️ Good relations reduce strikes, conflicts, and misunderstandings.7. Employee Welfare and SafetyHRM ensures:Safe and healthy working conditionsWelfare facilities like medical care and leaveWork-life balance for employees➡️ This improves employee well-being and productivity.8. Compliance with Laws and EthicsHRM ensures:All labor laws and regulations are followedEthical treatment of employeesFair recruitment and employment practices➡️ This protects both employees and the organization.
PAGE 3TOPIC 11.1.2 OBJECTIVE OF HUMANRESOURCE MANAGEMENT.9. Organizational Growth and StabilityBy managing people effectively, HRM helps:Reduce employee turnoverMaintain a stable workforceSupport long-term growth of the organization➡️ Stable organizations perform better in the long run.
PAGE 3TOPIC 11.1.3 FACTORS THAT DETERMINETHE ESTABLISHMENT OF HUMANRESOURCE DEPARTMENT IN ANORGANIZATION.1. Size of the OrganizationThe size of the organization is one of the most important factors indetermining whether a separate HR department is required.Small organizations usually have a limited number of employees.HR activities such as recruitment, payroll, and leavemanagement are handled by the owner, manager, oraccounts department.A full HR department is often not economical.Medium and large organizations employ a large workforce.Managing recruitment, training, performance appraisal,employee welfare, and legal compliance becomes complex.A separate and well-structured HR department becomesnecessary.Example (Malaysia):Small business:A small café or retail shop in Kuala Lumpur with 10–15employees usually does not have an HR department. The ownerhandles hiring and salary matters.Large organization:Petronas, Malaysia’s national oil company, employs thousands ofworkers. It has a fully developed HR department handling talentmanagement, leadership development, compensation, andemployee relations.
PAGE 3TOPIC 11.1.3 FACTORS THAT DETERMINETHE ESTABLISHMENT OF HUMANRESOURCE DEPARTMENT IN ANORGANIZATION.2. Unionization of the WorkersUnionization refers to the presence of labor unions representingemployees.In organizations where trade unions exist, HR departmentsare essential to:Negotiate collective bargaining agreements.Handle grievances and disputes.Ensure compliance with labor laws and unionagreements.Where there is no union, HR activities are usually simplerand less formal.Example (Malaysia)Unionized organization:Malaysia Airlines (MAS) has strong employee unionsrepresenting pilots, cabin crew, and ground staff. The HRdepartment plays a critical role in:Salary negotiationsWorking conditionsDispute resolutionNon-unionized organization:Many technology startups in Cyberjaya have non-unionizedemployees. HR departments in these companies focus moreon talent acquisition and employee engagement rather thanunion negotiations.
PAGE 3TOPIC 11.1.3 FACTORS THAT DETERMINETHE ESTABLISHMENT OF HUMANRESOURCE DEPARTMENT IN ANORGANIZATION.3. Ownership of the CompanyThe ownership structure of the company influences HR policies and theneed for a formal HR department.Government-owned (Public Sector) organizationsMust strictly follow government rules, employment acts, andservice regulations.Require a formal HR department to manage recruitment,promotions, pensions, and discipline.Private-owned companiesHR structure depends on management decisions and businessstrategy.Large private companies still require strong HR departments.Multinational companies (MNCs)Have complex HR systems to manage diverse employees andglobal standards.Require highly professional HR departments.Example (Malaysia)Government-owned:Tenaga Nasional Berhad (TNB) has a structured HR departmentbecause it must comply with public service policies and labor laws.Private-owned:Top Glove Corporation, a private company, has a strong HRdepartment due to its large workforce.Multinational:Intel Malaysia has an advanced HR department to manage localemployees while following global HR practices.
PAGE 3TOPIC 11.1.3 FACTORS THAT DETERMINETHE ESTABLISHMENT OF HUMANRESOURCE DEPARTMENT IN ANORGANIZATION.4. Philosophy of Top ManagementThe attitude and philosophy of top management greatly influence theestablishment and importance of the HR department.If top management believes that employees are valuable assets,they will:Invest in HR departments.Focus on training, development, motivation, and employeewelfare.If management views labor as merely a cost, HR activities may belimited and handled informally.Example (Malaysia)Employee-oriented management:Maybank strongly believes in employee development andleadership training. Its HR department runs:Talent development programsLeadership academiesEmployee wellness initiativesCost-focused management:Some small manufacturing firms may avoid establishing a full HRdepartment and only manage basic administrative tasks to reducecosts.
TOPIC 11.2 FUNCTION OF HUMANRESOURCE MANAGEMENT.a. Job Analysis and Human Resource Strategic PlanningJob AnalysisJob analysis is the process of systematically studying a job to identify:Job duties and responsibilitiesSkills, knowledge, and qualifications requiredWorking conditions and tools usedOutputs of Job Analysis:Job Description – explains what the job involves.Job Specification – explains the qualities required in a job holder.Importance:Helps in recruitment and selectionProvides a basis for training, appraisal, and compensationHuman Resource Management involves a set of activities that helpan organization acquire, develop, motivate, and maintain itsworkforce to achieve organizational goals effectively.
TOPIC 11.2 FUNCTION OF HUMANRESOURCE MANAGEMENT.a. Job Analysis and Human Resource Strategic PlanningHuman Resource Strategic PlanningHR planning ensures that the organization has the right number ofemployees, with the right skills, at the right time.Activities include:Forecasting future manpower needsAnalyzing current workforcePlanning recruitment, training, or downsizingExample:A manufacturing company plans to hire skilled technicians beforeexpanding its factory.
TOPIC 11.2 FUNCTION OF HUMANRESOURCE MANAGEMENT.b. Recruitment and SelectionRecruitmentRecruitment is the process of attracting potential candidates to apply forjob vacancies.Sources of recruitment:Internal (promotion, transfer)External (job portals, advertisements, campus recruitment)SelectionSelection involves choosing the most suitable candidate from theapplicants.Steps in selection:Application screeningTests and interviewsBackground checksFinal appointmentImportance:Ensures the right person is hiredReduces employee turnoverExample:A bank recruits graduates through campus interviews and selectscandidates through aptitude tests and interviews.
TOPIC 11.2 FUNCTION OF HUMANRESOURCE MANAGEMENT.c. Orientation, Training, and DevelopmentOrientationOrientation introduces new employees to:The organizationTheir job rolesRules, policies, and work culturePurpose:Reduces anxietyHelps employees adjust quicklyTrainingTraining focuses on improving job-related skills and knowledge.Types of training:On-the-job trainingOff-the-job trainingDevelopmentDevelopment focuses on long-term growth of employees, especiallymanagers.Importance:Improves performancePrepares employees for future rolesExample:A company conducts leadership training programs for supervisors andmanagers.
TOPIC 11.2 FUNCTION OF HUMANRESOURCE MANAGEMENT.d. Performance AppraisalPerformance appraisal is the systematic evaluation of employeeperformance against predefined standards.Objectives:Identify strengths and weaknessesProvide feedback to employeesDecide promotions, salary increments, and training needsMethods:Rating scalesAppraisal interviewsKey Performance Indicators (KPIs)Importance:Improves productivityMotivates employeesExample:Employees are evaluated annually based on targets achieved and workbehavior.
TOPIC 11.2 FUNCTION OF HUMANRESOURCE MANAGEMENT.e. Compensation ManagementCompensation management involves designing and administering fairwages and benefits to employees.Components of compensation:Basic salaryAllowancesBonuses and incentivesBenefits (medical, insurance, retirement)Objectives:Attract and retain employeesMotivate employeesEnsure fairness and legal complianceExample:A company offers performance-based bonuses and medical benefits tomotivate employees.
TOPIC 11.2 FUNCTION OF HUMANRESOURCE MANAGEMENT.f. Industrial RelationsIndustrial relations refer to the relationship between management,employees, and trade unions.Functions include:Handling grievancesNegotiating with trade unionsPreventing and resolving conflictsEnsuring compliance with labor lawsImportance:Maintains industrial peaceImproves cooperation and productivityExample:HR managers negotiate working hours and wages with employee unionsto avoid strikes.
TOPIC 11.2 FUNCTION OF HUMANRESOURCE MANAGEMENT.1. Job Analysis & HR PlanningJob analysis → duties, skills,responsibilitiesJob description & job specificationRight people, right skills, right time2. Recruitment & SelectionRecruitment → attracting candidatesSelection → choosing best candidateEnsures right person for right job3. Orientation, Training & DevelopmentOrientation → introduction to job& companyTraining → improves skillsDevelopment → long-term growth4. Performance AppraisalEvaluation of employee performanceBasis for promotion & salary incrementIdentifies strengths & weaknesses5. Compensation ManagementWages, salary, bonus, incentivesFair & competitive payMotivates & retains employees6. Industrial RelationsRelationship between employer& employeesTrade unions & grievance handlingMaintains industrial peaceObjectives of HRM (One-Line Points)Achieve organizational goalsEmployee satisfaction & motivationProper utilization of manpowerSocial & legal responsibilityFactors Affecting HR DepartmentSize of organizationUnionizationOwnershipManagement philosophyFunctions of HRM (Keywords Only)
TOPIC 11.3 ENVIRONMENTAL FACTORSAFFECTING HUMAN RESOURCEMANAGEMENTA. Internal Environmental FactorsInternal environmental factors exist within the organization and are undermanagement control.i. PolicyExplanation:Company policies are formal rules and guidelines that direct employeebehavior and HR decisions.Impact on HRM:Determines recruitment rules, promotion policies, leave rules, anddisciplinary procedures.Ensures uniformity and fairness in HR practices.Example:A Malaysian company like Maybank has clear HR policies on promotion,training, and performance appraisal, which guide all HR decisions.Human Resource Management does not operate in isolation. HRpolicies and practices are influenced by internal and externalenvironmental factors. These factors shape how employees arerecruited, trained, motivated, and managed.
TOPIC 11.3 ENVIRONMENTAL FACTORSAFFECTING HUMAN RESOURCEMANAGEMENTii. UnionExplanation:Trade unions represent employees and protect their interests regardingwages, working conditions, and job security.Impact on HRM:HR must negotiate wages, working hours, and benefits with unions.Influences grievance handling and dispute resolution.Example:In Malaysia Airlines, HR managers regularly negotiate with employeeunions on salary revisions and working conditions.
TOPIC 11.3 ENVIRONMENTAL FACTORSAFFECTING HUMAN RESOURCEMANAGEMENTiii. MissionExplanation:The mission statement defines the purpose and long-term goals of theorganization.Impact on HRM:HR practices are aligned with organizational mission.Affects recruitment, training, and performance management.Example:Petronas focuses on leadership and technical excellence; therefore, HRemphasizes talent development and continuous learning.iv. EmployeesExplanation:Employees’ skills, attitudes, experience, and expectations influence HRdecisions.Impact on HRM:Determines training needs and development programs.Affects motivation strategies and compensation systems.Example:A technology firm in Cyberjaya employs young IT professionals, so HRfocuses on flexible work hours and skill-based training.
TOPIC 11.3 ENVIRONMENTAL FACTORSAFFECTING HUMAN RESOURCEMANAGEMENTv. Corporate CultureExplanation:Corporate culture refers to shared values, beliefs, and practices within theorganization.Impact on HRM:Influences leadership style, communication, and teamwork.Shapes recruitment and reward systems.Example:AirAsia promotes a fun, open, and innovative culture, so HR encouragesteamwork and informal communication.
TOPIC 11.3 ENVIRONMENTAL FACTORSAFFECTING HUMAN RESOURCEMANAGEMENTB. External Environmental FactorsExternal factors exist outside the organization and are beyond directcontrol.i. EconomyExplanation:Economic conditions such as inflation, unemployment, and economicgrowth affect HR decisions.Impact on HRM:During economic growth → more hiring and higher salaries.During recession → layoffs, wage freeze, or cost-cutting.Example:During economic slowdown in Malaysia, many companies reduced hiringand focused on contract employment.ii. LegislationExplanation:HRM must comply with labor laws and government regulations.Impact on HRM:Influences wages, working hours, safety, and employee benefits.Non-compliance can lead to legal penalties.Example:Malaysian HR departments follow the Employment Act 1955, IndustrialRelations Act 1967, and Minimum Wages Order.
TOPIC 11.3 ENVIRONMENTAL FACTORSAFFECTING HUMAN RESOURCEMANAGEMENTiii. CompetitorExplanation:Competitors influence HR practices, especially in attracting and retainingtalent.Impact on HRM:HR may offer better salaries and benefits to retain employees.Encourages training and development to stay competitive.Example:Banks in Malaysia compete for skilled finance professionals by offeringhigher pay and career growth opportunities.iv. TechnologyExplanation:Technological changes affect how work is performed and managed.Impact on HRM:Requires employee training and reskilling.Encourages automation and digital HR systems.Example:Many Malaysian companies use HRIS systems for payroll, recruitment,and performance appraisal.
TOPIC 11.3 ENVIRONMENTAL FACTORSAFFECTING HUMAN RESOURCEMANAGEMENTv. ShareholdersExplanation:Shareholders are owners of the company who expect profits and goodperformance.Impact on HRM:Pressure to control labor costs.Focus on productivity and performance-based rewards.Example:In public-listed companies like Tenaga Nasional Berhad (TNB), HRfocuses on performance management to satisfy shareholderexpectations.ConclusionHuman Resource Management is influenced by both internal andexternal environmental factors. Effective HR managers understand thesefactors and adjust HR policies accordingly to achieve organizationalsuccess and employee satisfaction.
ANY QUESTION
S.ii 22/23Question 1a) List SIX (6) function of human resources management.b) Describe FIVE (5) steps involved in recruitment process.S.i 23/24Question 1a) List SIX (6) function of human resources management.b) Describe FIVE (5) steps involved in recruitment process.S.ii 24/25Question 1a) List down SIX (6) external environment factors that affecthuman resc management functions and activities.b) Describe FIVE (5) advantages of internal recruitment.PAST YEAR QUESTIONTOPIC 1