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‟s

objectives (Snell & Bohlander).
• 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 (Gary Dessler).
• The utilization of a firm‟s human resources to achieve organizational
objectives (Mondy & Noe).
• Philosophies, policies, procedures and practices related to the management
of people within organization (French).
• The design of formal systems in an organization to ensure effective and
efficient use of human talent to accomplish organizational goals (Mathis &
Jackson).
• Strategic and coherent approach to the management of an organization‟s
most 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 the
contribution 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 the

following criteria:
• The resources must be Value - it increase when employees find ways to
decrease costs, provide uniqueness of the product/service to the customers or
with 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 different
KSA‟s and cannot be copied by others.
• The resources must be Organized – when their KSA‟s can be combined and
can be rapidly used to improve the efficiency and effectiveness of the
company.
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 roles

between 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 business
operates 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 trained
and re-trained to adapt with rapid changes in technology.
It is crucial to have trained employees and this human capital must be trained
from time to time to ensure the competencies is standard with the current
technologies used.
HRM must alert and knowing the current technologies and manage the training
schedule for the staff.

3. Managing Change
Changes in business environment forcing organization to change in terms of
responsibilities, job assignments, work processes etc.
Organization should manage change effectively by focusing on proactive change
and not reactive change – envision the future, communicate the vision, set clear
expectations 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 in
developing 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 a
company, they take their KSA with them and any investment the company has
made is lost.

5. Responding to the Market

Customers demand becoming complex and sophisticated to please. With
thousands of choices that customer can choose from, makes the standard is
raised higher. Aspects such as quality, innovation and responsiveness will put at
stake.
HRM facing problem on how to cope with the market demand. This situation
challenged HRM on how to produce staff that have innovative and „X‟ factor to
adapt this situation.

6. Containing Cost
Organization need to achieve cost effectiveness by reducing costs and improve
productivity to maximize efficiency.
Some of the efforts includes downsizing, outsourcing and leasing in order to
keep up with productivity and quality.
However, such efforts have greater impact towards HRM such as losing the
most valuable employees, lost of confidence and job security among employees
etc.

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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 accordance

with 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 in
factories 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 competitive
advantage through people.
6. Justify the statement “All managers are involved in HRM”.
7. What HRM functions that must be performed regardless of the size of
organization?.
8. How can human resource management contribute to a company‟s
success?.
9. What skills are important for success in human resource management?
Which of these skills are already strengths of yours? Which would you like
to develop?.
10. Will technology eliminate the need for human resources managers?.

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