EXPLORE HRM withMAIMUNAH

THE ROLE OF HUMAN RESOURCE MANAGEMENT

In this Column, the key topics will be:

The key responsibilities of human resource management Efficient and effective human resource management Challenges facing human resource management Challenges facing human resource officers Setting up a human resource department

If you have responsibility for human resource management in a small or medium sized organisation, this series of Columns is for you. Topics to be covered include:

i. Recruitmentii. Selection

iii. Inductioniv. The Legal Environment of Employmentv. Wages and Benefits

vi. Trainingvii. Safety and Health

viii. Employment Relationsix. Industrial Relations

Maimunah Aminuddin is a well-known lecturer, writer and consultant on human resource management. Books she has written include:

Human Resource Management (2nd ed, 2011, Oxford University Press)

Malaysian Industrial Relations and Employment Law (7th ed, 2011, McGraw Hill)

Termination of Employment: Understanding the Process (2010, CLJ Publication)

x. Performance Management and Performance Appraisalxi. Disciplinary Systems

xii. Termination of Employment

You may have other tasks assigned to you, for instance, finance and administration, but these do not relate to human resource management so they will not be covered in these Columns. All the material in these Columns relate to Malaysia unless an example of a human resource management practice from another country is given.

THE KEY RESPONSIBILITIES OF HUMAN RESOURCE MANAGEMENT

The list above provides you with the key functional areas that fall within human resource management (HRM). Although each topic will be discussed separately to minimize confusion, anyone involved in HRM could be required to carry out tasks relevant to several of these functions all at one meeting!

Some people think that HRM is all about managing people. It is not. HRM is a process of establishing and maintaining systems that will allow an organisation to hire, train, and support its people in such a way that the organisation can achieve its objectives. Employees responsible for HRM must be able to draw up procedures and policies for all aspects of HRM and ensure that these are followed. Managers have departments to run. They are experts in their own areas of production, marketing, finance and so on. They need staff to help them accomplish the goals set for their department. They will manage these staff. Employees assigned to HR can help them in this task. HR staff provide a support service throughout the organisation so that managers can be sure that they have the right employees, in the right numbers, properly trained and committed to getting quality work done.

Reduce Disagreements over Who does What

It is helpful if organisations decide who is responsible for which aspects of HRM. You do not want to be arguing with your managers or the chief executive officer (CEO) as to your authority limits. In most cases people in non-finance positions would not give suggestions to the finance officer how to keep accounts; production staff would not advise marketing people how to sell the company’s products and there would be astonishment if the sales staff tell the production supervisors how to maintain the machines in the factory. Yet, all of these staff may tell employees responsible for human resource management what to do or not to do.

Let us take an example of how disagreements and conflict can make a mess of HRM.

Recruitment and selection of new staff, which will be discussed in later Columns, require preparatory work such as preparing job descriptions and person specifications, after which some effort has to be made to inform possible applicants that a vacancy is available. When a number of people have applied for the vacancy, information must be collected about each applicant so that they can be compared and the most suitable person for the job can be offered the position. Is this all HRM work? No. It is a joint venture between the head of department or manager to whom the job-holder will report, the CEO, possibly the finance officer who will give input on a possible compensation package for the job-holder and the person responsible for HR. It may also involve outside parties such as employment agency staff. Who is going to do what?

If there is no clear understanding as to who does what, certain key activities may not be done at all or one party may resist doing something on the grounds that it is not his job. It is impossible to have team work and efficiency in a messy situation where no one is sure what they are supposed to do.

For every function and action needed to carry out the function a list should be drawn up. It could be a flow-chart showing what is to be done and who is responsible for each action. To revert to our earlier example, recruitment and selection, who makes the final decision to offer a candidate the job? Certainly, not the HR person. Normally, the manager to whom the job-holder will report will make the final decision even though the work of informing the candidate and ensuring he or she is welcomed into the organisation is the responsibility of the HR officer.

EFFICIENT AND EFFECTIVE HUMAN RESOURCE MANAGEMENT

Good human resource (HR) people try to be:

Efficient and Effective

An efficient HR person gets as much done as possible with the least resources. This means you need to work smart and use technology to assist in your work and to make your systems run smoothly.

An effective HR person does the right things. They do not ignore any key aspects of HRM and they are constantly looking for ways to improve the HR systems in their organisations. You need to scan the Internet where a great deal of information relating to HR practices can be found. Contact other HR people who are usually willing to share ideas and practices.

Join an Employers’ Organisation

If possible, persuade your CEO to affiliate the organisation to any suitable organisation which can assist you in HR matters, especially the complex employment law related issues. The Malaysian Employers Federation and the Federation of Malaysian Manufacturers are examples of large organisations which have regional meetings where you can learn more about HR as well as talk to other HR practitioners and get expert help, if needed.

Learn the Right way to Conduct Human Resource Management

There is no right way to conduct human resource management and no wrong way either. But, some policies, procedures and actions are better than others. You have to be willing to experiment with new ideas. To get approval for new ideas, you will surely have to persuade your managers and your CEO that the ideas are good for the organisation. To do this, you need facts, and wherever possible, examples of how these ideas have helped other organisations improve their financial position. Most Malaysian CEOs and managers are very conservative when it comes to introducing new HR ideas. What can you do to overcome this problem?

1. Experiment on small groups or in one section of your organisation before introducing an idea across the whole organisation. Start small wherever practical.

2. Talk to your employees and get written feedback to show the CEO and other managers that the workers like an idea or practice.

3. Do not burden managers with frequent changes to procedures. If, before they have become comfortable with a new procedure, you make changes to it, they will become unwilling to cooperate with HR policies.

4. HR policies must be consistently upheld throughout the organisation. Discuss the policies thoroughly with all managers before they are implemented. Once they are agreed to, ensure they are unfailingly implemented by all managers.

5. As you scan the Internet or attend meetings with other organisations, keep a record of practices implemented by these parties that you would like to copy. Print out from the Internet, or the newspapers (use the on-line versions) examples of Malaysian and foreign companies which are doing things which you think would be helpful in your organisation. If you can find a Malaysian organisation doing something you want to imitate, you could request that their HR representative come and explain their practice to your management team. In this way, they can see that your “new” idea is workable.

CHALLENGES FACING HUMAN RESOURCE MANAGEMENT

Talent Management

All employers are competing for the same limited pool of workers. Malaysia has:

1. A shortage of workers2. A shortage of skilled workers3. A shortage of talented workers

These shortages are not about to go away any time soon. Further, your organisation is competing with other employers for the same limited pool of workers. You are competing with the big boys – the government-linked companies, the multi-national companies, even the government itself wants to employ the best people. You have to continuously look for creative ways to attract and retain good workers. You probably cannot compete by giving wages and benefits comparable to those offered by large employers. Still, there are actions you can take which will increase your ability to recruit and keep your prized assets – the workers you have invested in. You might like to think about these examples:

1. Encourage flexibility. With a small workforce you can provide flexible work hours. Or, you can permit workers to apply for a half-day off to settle any personal problems. Make sure the same work hours privileges apply to all employees, not just those who are favourites with a particular manager.

2. Share rewards. Promise workers (and make sure the promise is kept) a reward, which does not have to be financial, if they achieve a certain target or complete a particular project within time guide-lines.

3. Provide a cheerful working environment. Dirty, unwashed, work rooms are a turn-off. You may even find that if you provide the paint, brushes and other equipment, the workers will volunteer to do some painting in their spare time.

4. Organise some fun activities. If you can find some space for workers to play games, all the better. Sports competitions always help to achieve good spirits; so do other less active games, even computer game competitions. Simple birthday parties are great too. Let the workers do most of the organising. HR only needs to provide assistance. Involve family members of employees wherever possible.

5. Never say” goodbye, don’t come back” to good workers; keep the entrance door open. People leave their jobs for all sorts of reasons. If your organisation is a good company to work with, they may wish to come back after leaving and trying out another employer.

Integrating Diverse Groups of Workers

An HR officer is expected to find ways to integrate and encourage team work amongst the various groups of employees working in your organisation. You may have people from different generations – this problem is discussed later in this Column. You probably have both men and women and you do not want improper sexual behaviour causing conflict and even complaints from co-workers or outsiders. You may have foreign workers from a number of countries who may have arguments amongst themselves as well as arguments with the local workers.

Foreign workers cause a number of problems for HR officers. Because of cultural and language issues, you will normally need special induction and training programmes for them. Safety training must be carefully designed so that foreign workers can understand.Find a translator and do not lose him or her! Organise Bahasa Malaysia classes for your foreign workers. Bahasa is not a difficult language to learn. Within 3 months, most of your foreign workers should understand enough for simple, direct messages.

Prepare contingency plans in case physical fighting should occur between your foreign workers and other persons, whether at work or elsewhere. If there is an argument at the Pasar Malam between your workers and others, the Police will call you to take charge of your workers.

Prepare contingency plans in case your foreign workers decide to strike. Many of them come from countries where strike action by workers is common and they understand the power of the strike. They know that if as a group they stay firm they can wield a lot of power over an employer. It may not be practical to terminate the services of all foreign workers just because they have participated in a strike (which is probably illegal). It is important to have regular sessions with them to discuss any problems they are facing before they get upset enough to strike.

Changing Legal Environment

One of the more important responsibilities of an HR officer is to ensure the organisation complies with the employment laws. These do not change frequently but they do change. In 2012 amendments to the Employment Act will be enforced. There may be more amendments to this law coming up. The Employees Provident Fund Act regulations have been amended so that as of 2012 there is an increase in the employer’s contribution for employees earning RM5,000 per month and less.

A new law on retirement age is expected soon. Minimum wages may be announced soon too.

Managing Different Generation’s Expectations

Generation Y

Do not like to hear stories

about the “old days” when

nasi lemak was 20c a packet.

Do not want to be ordered

around. They want orders

explained to them.

Do not want to have to wear

formal clothes at work.

Do not want to stay at work

after 5.30pm. They have a

life to live. But they will

continue their work at home

or at Starbucks, if necessary.

Generation X and YAre your managers and the company CEO a different generation to the majority of the workforce? It is very common for managers to be Generation X and workers in Generation Y. You may even have employees who belong to Generation Z.

Generation X were born between 1965 and 1979

Generation Y were born after 1980 Generation Z were born after 1990

A generation gap between older workers and junior entrants to the workforce is not a new issue but there is more research now available showing the very large differences between the generations. These affect the ability of the organisation to gain maximum commitment to organisational goals from the younger employees.

Let us take some examples here:

Technology and Generation X and YGeneration X has learned to use the technology needed for their jobs but they may not be entirely comfortable with it.

Generation Y cannot live without electronic and mobile technology. They expect the appropriate hardware (mobile telephone with Internet capacity or I-pads and so on) to be provided by their employer for their use. They are embarrassed by employers who only provide equipment used in “the dinosaur age”.

Employment Mobility of Generation X and YBoth generations are mobile and willing to quit jobs and employers who do not satisfy their needs. But, Generation Y employees are exceptionally willing to move out at any time they are unhappy with their work environment. Partly, they move on because they have not made up their minds what career or industry is most attractive to them but, more

Generation Y

Do not like to hear stories

about the “old days” when

nasi lemak was 20c a packet.

Do not want to be ordered

around. They want orders

explained to them.

Do not want to have to wear

formal clothes at work.

Do not want to stay at work

after 5.30pm. They have a

life to live. But they will

continue their work at home

or at Starbucks, if necessary.

importantly, they move because they can. They move because they have choice. Malaysia has faced a labour shortage for decades now and this situation is likely to continue. The more experience the employee has, the easier it will be for him to move to another employer.

What does this mean for HRM? You will need to:

1. Find out why employees are leaving. Do not assume it is for more money; it is equally probable that an employee who leaves is running away from an unbearable supervisor or manager.

2. Work on tactics to keep the best employees in the organisation. Excessive levels of employee turnover affect productivity and profitability.

3. Think about how to front-end load your wages and benefits package. Generation Y employees do not think long-term. Their idea of long-term is 3-5 years. They want high wages now; they are not attracted by benefits to which they will become eligible after 5-10 years’ service.

4. Work with your managers to respect the opinions of their Generation Y subordinates and to invite ideas from them. Formalize a scheme to do this and measure the performance of the managers on how well they are able to excite their Generation Y subordinates.

Managing Older Workers

Fifty-five years of age has been the normal retirement age for employees in the private sector since the 1950s. A clear trend has emerged whereby this retirement age is considered unacceptable. Law may be introduced soon to prohibit employers from retiring workers younger than 58 or perhaps 60. In years to come, this number will probably be raised further, at least to 65 years of age, in line with the practice in developed countries.

This means that HR officers will need to learn how to manage the career and work of older workers. Health issues may become more important. Decisions will have to be made as to how best older workers can contribute to the organisation. In some jobs, older workers who are more mature and more experienced can perform better than younger workers. But there are also jobs which require a high level of physical ability. Some older workers are healthy and able to continue to work to the expected standard, while others who have not looked after their health may have difficulties.

Dealing with New Issues

New issues are frequently arising which challenge human resource management officers. Examples of these issues are:

1. Reducing sexual harassment at the workplace2. Managing employees who are People Living with HIV/Aids (PLHIV) and their co-

workers3. Improving the health of employees4. Ensuring employees do not abuse technology5. Ensuring employees do not abuse social net-working sites

A few years ago, no one would mention sexual behaviour in formal work settings. It was considered a personal matter and of no concern to employers. Now employers are required to introduce written policies to prevent and eliminate all forms of sexual harassment at work. They are required to train employees on what is and what is not sexual harassment, and it is essential to investigate and take appropriate disciplinary action whenever an employee complains that he or she has been sexually harassed.

Ignorance leads many employers to dismiss employees who are found to have HIV/Aids. This discriminatory treatment is unnecessary and could lead to a legal suit against the employer. Providing proper systems are in place, employees with HIV/Aids can continue to contribute to achieving the organisation’s objectives. HR officers need to provide sufficient knowledge to all employees and management so that discrimination does not take place.

Safety has always been an important function which is often assigned to HR officers in companies which have no full-time safety officer. With life-styles changing, and costs of medical care increasing, employers are now taking steps to improve the health of their employees. Activities known as wellness programmes are long-term efforts to reduce medical costs of lessening medical bills. Healthy employees visit the doctor less often and take less medical leave. The productivity and profitability of an organisation is directly affected by the health of its employees.

More and more jobs require access to electronic technology. Computers and mobile telephones are necessities in increasing number of jobs. Do your staff have clear, written policies on the use of these devices at work and even outside working hours? If you do not have these policies, it will be more difficult to take disciplinary action against any employee who abuses the equipment.

Social networking has escalated at a tremendous rate. The number of people visiting these Internet sites cannot be calculated. Have you checked what your employees might be saying about management in your organisation? Are they happily giving away confidential information thinking that you won’t notice? Are you using the social network sites to screen job applicants. Photographs of job applicants in silly poses may not be an issue but overly sexy photographs may be.

CHALLENGES FACING HUMAN RESOURCE OFFICERS

The Belief that HR is an Easy Job

People who have never been employed in a human resource management position often say, “Anyone can do HR work. It is easy”. It is only when they find themselves responsible for human resource management that they find it is not so easy. Dealing with people is never easy. Dealing with stressed out managers is never easy. Dealing with ambitious chief executive officers is not easy either. As explained earlier, HR officers commonly do not have complete authority to make decisions on their own because their decisions will affect other parties in the organisation directly. This means that a number of personal qualities are the key to success in human resource management.

Personal Qualities for Success in HR

In order to be successful in human resource management, a person needs:

1. Patience 2. Persuasive skills3. Communication skills

You need patience in large quantities because you will be expected to listen to employees’ problems. HR officers are expected to act as middle-man between workers, especially at the lower levels, and management. Whatever worries, concerns and issues they have may be brought to you. The issues raised by workers may be work-related and they may also be personal. Many workers do not have a relationship with their managers whereby they feel comfortable talking about personal problems. HR thus provides a counselling service to workers. Worried workers are not productive workers so this assistance should be part of your job duties. Counselling will require a combination of patience, listening and asking the right questions as well as knowledge of where help can be obtained for workers with major problems.

You need persuasive skills because, as described above, you need to get buy-in from managers and your CEO whenever you want to introduce some new or modified practice which will benefit the organisation. You may also, from time to time, have to persuade the organisation’s workers that a new policy or procedure will bring benefits. While you and your management can order them to comply, undoubtedly there will still be a need to persuade them why they should do things differently. There are always argumentative individuals who will complain about every change in procedure and policy. As employees, they have to follow orders, but it is good to explain why and how a change has come about.

You need communication skills in very, very large quantities. You will be required to make formal presentations, you will have to explain policies or plans in meetings and you will have to write reports. Some of these presentations will be to the top management of your

organisation or your reports may be read by the most senior officers. They need to be clear and understandable.

SETTING UP A HUMAN RESOURCE DEPARTMENT

Employ the Services of a Professional

Have you been assigned to establish a human resource (HR) department in your organisation? This is an important task for which, if you have no experience in a set-up situation, you might want to get help from a consultant. Of course, using the services of a consultant can be expensive but at least you can be assured that HR will be off to a good start if it is established by a professional. Check with the professional association for human resource consultants (Malaysian Association of Human Resource Consultants) and see if the consultant you wish to hire is endorsed by them.

Another alternative would be to employ a very experienced human resource manager on a short-term contract to do the job for you. A contract for a 6-month period should be more than adequate. A human resource manager who has recently retired may also be interested to take on the task on a contract for services basis. This means that he will not be a company employee while doing the job but will come into your office as and when necessary to have discussions and carry out the responsibilities you agree with him.

Do the Task Yourself

If your company does not have funds to pay a professional to help you, then here are some suggestions which may help:

Prepare a Plan and Get Agreement from the CEO

1. Decide what policies you will need2. Decide what procedures will be needed3. Decide on company rules, including safety rules4. Prepare suitable standard Forms and Letters5. Consider purchasing suitable software for payroll, personnel records, training

records and administration of leave, attendance and so on; ensure any system purchased can accommodate an increasing number of employees

6. Migrate any paper personnel records into the computer system; Scan original employee documents into the system

7. Audit who is currently doing what human resource management work8. Identify which jobs should be prioritized9. Prepare job descriptions for the HR people who will staff the HR department

Policies

Examples of written policies that you will need include:

1. Safety (required by law if you have more than 5 employees)2. Sexual harassment3. Leave4. Use of computers, Internet, emails, telephones, company property5. Dress code6. Security

Procedures

Examples of written procedures that will be needed are:

1. Recruitment and selection2. Training3. Disciplinary action4. Resignation5. Confirmation of new employees6. Evaluation of employees’ performance7. Grievance handling8. Requests for leave or time-off9. Safety

Rules

At the least, you will need to introduce rules to cover:

1. Safety2. Discipline3. Use of illegal substances

Forms and Letters

A range of standard letters and forms should be prepared to make administrative work easier. Examples of letters and forms which are useful include:

1. Job requisition forms to be filled in by managers who want to recruit2. Job application forms to be filled in by people looking to be employed by your

organisation3. Selection interviewers’ evaluation forms4. Letter of appointment5. Personnel record forms6. Performance evaluation forms7. Leave application forms

8. Warning letters for minor misconduct and record of counselling sessions9. Accident/injury reports10. Exit interview forms for employees leaving the organisation

WATCH OUT FOR FUTURE

COLUMNS:Recruitment

Selection

Induction

Training