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ADM 551

HUMAN RESOURCE

MANAGEMENT

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TOPIC 1

HUMAN RESOURCE MANAGEMENT PERSPECTIVE

By: Fadilah Bt Puteh

FSPPP, UiTM Shah Alam

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Learning Outcomes

After studying this chapter, you should be able to:

1. Identify how firms gain sustainable competitive advantage through people.

2. Explain how globalization is influencing human resources management.

3. Describe the impact of information technology on managing people.

4. Identify the importance of change management.

5. State HR‟s role in developing intellectual capital.

6. Differentiate how TQM and reengineering influence HR systems.

7. Discuss the impact of cost pressures on HR policies.

8. Discuss the primary demographic and employee concerns pertaining to HRM.

9. Provide examples of the roles and competencies of today‟s HR managers.

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Overview of HRM

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Definition of HRM

• The process of managing human talents to achieve an organization‟sobjectives (Snell & Bohlander).

• The policies and practices involved in carrying out the “people” or humanresource aspects of a management position including recruiting, screening,training, rewarding and appraising (Gary Dessler).

• The utilization of a firm‟s human resources to achieve organizationalobjectives (Mondy & Noe).

• Philosophies, policies, procedures and practices related to the managementof people within organization (French).

• The design of formal systems in an organization to ensure effective andefficient use of human talent to accomplish organizational goals (Mathis &Jackson).

• Strategic and coherent approach to the management of an organization‟smost valued assets – the people (Armstrong).

• HRM refers to the management of the organization‟s employees.

• The purpose of HRM is to foster organizational policies that enhance thecontribution of employees make to the effectiveness of the organization.”

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The importance of HRM

1. To gain / sustained competitive advantage through people by meeting thefollowing criteria:• The resources must be Value - it increase when employees find ways to

decrease costs, provide uniqueness of the product/service to the customers orwith the combination of both.

• The resources must be Rare – when their skills, knowledge, abilities, attitudes(KSA) are not the same with the competitors.

• The resources must be Difficult to Imitate - each employees have differentKSA‟s and cannot be copied by others.

• The resources must be Organized – when their KSA‟s can be combined andcan be rapidly used to improve the efficiency and effectiveness of thecompany.

2. To employ and develop employees for the benefit of organization since they are

an importance asset.

3. To promote management effectiveness and efficiency through consistent and fair

treatment of employees.

4. To control and recommend HR performance and policies in achieving the

organizational goals.

5. To act as strategic partner achieving the organizational goals and to deal with

HR issues and challenges.

7. HRM is viewed as equivalent importance to financial management, production

management and marketing management.

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The Functions of HRM

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Competencies of HR Manager

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Duties / Roles of HR Manager

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Duties / Roles of HR Manager

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The Structure of HR Department

Not every organization has a specialized human resource department due to:

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Examples of Job Titles in HRM

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Line Manager vs HR Manager

…..However, whenever relating employees, the duties and rolesbetween the two are always across the board.

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Similarities Between Line Manager vs HR Manager

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Differences Between

Line Manager vs HR Manager

No Samples of Activity Responsibility

1 Submit requisition for recruitment of staff HoD

2 Check the JD and JS are current HoD

3 Advertise vacancy internally and externally HR

4 Shortlist applicants HR

5 Call applicants for interview and tests HR

6 Interview applicants HR and HoD

7 Send out letter of offer to successful applicants HR

8 Orientation/induction for new employees HD and HoD

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Similarities Between Public and Private HRM

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Differences Between Public and Private HRM

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Factors Affecting HRM

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External Factors

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External Factors

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External Factors

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Internal Factors

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HRM Challenges

Today‟s HR problems are enormous and appear to be ever

expanding. The HR manager faces a multitude of challenges, ranging

from a constantly changing workforce to coping with government

regulations. Because of the critical nature of HR issues, they are

receiving increased attention from upper management.

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Competitive Challenges and HRM

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1. Globalization

Borderless economy, free movement of means of production (foreign workers),international actors (NAFTA, EU, APEC, WTO) that regulates how businessoperates worldwide become the challenges in managing HR.

HRM challenges includes:

Identifying capable expatriate managers.

Designing training & development program.

Adjusting fair and equitable compensation plans.

2. Embracing New Technology

To shift from “touch labor” to “knowledge workers”, employees need to be trainedand re-trained to adapt with rapid changes in technology.

It is crucial to have trained employees and this human capital must be trainedfrom time to time to ensure the competencies is standard with the currenttechnologies used.

HRM must alert and knowing the current technologies and manage the trainingschedule for the staff.

3. Managing Change

Changes in business environment forcing organization to change in terms ofresponsibilities, job assignments, work processes etc.

Organization should manage change effectively by focusing on proactive changeand not reactive change – envision the future, communicate the vision, set clearexpectations for performance and develop the capability.

The challenge is, most organizational members are trapped in comfort zone(complacent) whereby they are afraid to change for better (resist to change).

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4. Developing Human Capital

To gain competitive advantage from human capital, organization must focus indeveloping employee KSA because all staffs have unique skills and potential.Plus, continuous training will enhance their performance.

However, the challenge is employees own their KSA. When they leave acompany, they take their KSA with them and any investment the company hasmade is lost.

5. Responding to the Market

Customers demand becoming complex and sophisticated to please. Withthousands of choices that customer can choose from, makes the standard israised higher. Aspects such as quality, innovation and responsiveness will put atstake.

HRM facing problem on how to cope with the market demand. This situationchallenged HRM on how to produce staff that have innovative and „X‟ factor toadapt this situation.

6. Containing Cost

Organization need to achieve cost effectiveness by reducing costs and improveproductivity to maximize efficiency.

Some of the efforts includes downsizing, outsourcing and leasing in order tokeep up with productivity and quality.

However, such efforts have greater impact towards HRM such as losing themost valuable employees, lost of confidence and job security among employeesetc.

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7. Demographic and Employee Concerns

Demographic changes:

The diversity challenge.

Age distribution.

Gender distribution.

Rising levels of education.

Cultural changes and differences:

Changing attitudes toward work.

Balancing work and family.

Differences amongst races in the organization.

8. Government Laws and Policies

Various issues on laws, policies, rules & regulations imposed by the government

affecting HRM.

They have to follow certain restrictions such as embargo on foreign workers, high

levy imposed on foreign workers etc.

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THE DEVELOPMENT OF

HUMAN CAPITAL IN MALAYSIA

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Functions / Roles of Ministry of Human Resources

To restructure and promote the balanced distribution of manpower in accordancewith the New Economic Policy.

To preserve, develop and improve the welfare and wellbeing of workers.

To preserve the safety and health of workers with emphasis on pollution control infactories and places where machinery is used.

Set policies.

Prepares draft legislation.

Enforces the legislation.

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Departments under Ministry of Human Resources

Manpower Department

Labour Department (Peninsular Malaysia)

Labour Department (Sabah)

Labour Department (Sarawak)

Industrial Court

Industrial Relations Department

Trade Union Affairs Department

Occupational Safety and Helath Department

National Vocational Department

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END OF PRESENTATION

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Tutorial Questions

1. What are the challenges faced by HRM?.

2. Identify how globalization is influencing HRM.

3. Describe the impact of IT on HRM.

4. Discuss the role of HR Manager.

5. Describe the criteria necessary for firms to achieve sustained competitiveadvantage through people.

6. Justify the statement “All managers are involved in HRM”.

7. What HRM functions that must be performed regardless of the size oforganization?.

8. How can human resource management contribute to a company‟ssuccess?.

9. What skills are important for success in human resource management?Which of these skills are already strengths of yours? Which would you liketo develop?.

10. Will technology eliminate the need for human resources managers?.