Chapter 1: An Overview of Human Resources Management


Bismilahhirahmanirrahim ~ In The Name Of Allah The Most Gracious and The Most Merciful

An Overview of Human Resources Management

What is organization?

  • A group of people who work together to achieve common goal.
  • Organizations cannot be separated from human. It does not exist without human.


Human resource management is the development and implementation of systems in an organization for attracting, developing and retaining a high-performing workforce. 

Purpose of HRM?

Ensure people employed by organization (1) are being used effectively and efficiently (2) able to contribute towards achieving the organizational goals.

Changes Affecting HRM

(1) Technological changes

(2) Globalization and increased competition

(3) Employee education and expectations

(4) Workforce diversity

Personal Qualities and Skills Required of HRM Specialists

(1) Communication skills

(2) Ability to bring about changes

(3) Information technology (IT) savvy

(4) Numerate and able to analyse data

(5) Ability to understand the business context

(6) High ethical standards

Functions of the HR Department

(1) Employment

  • Human resource planning
  • Setting policies and administering disciplinary action systems
  • Recruitment
  • Establishing career movement policies, including transfers and promotion
  • Terminating employees
  • Liaison with immigration and Labour Department
  • Records keeping

(2) Training and development

  • Holding induction programmes
  • Providing skills training
  • Organizing supervisory and management development programmes
  • Establishing and administering performance management and appraisal systems

(3) Payment & reward system

  • Developing a wage structure
  • Preparing information for payroll
  • Establishing incentive schemes
  • Advising on benefits

(4) Health and safety

  • Organizing safety programmes
  • Establishing wellness programmes
  • Accident investigation
  • Provision of health services
  • Establishing programmes to prevent sexual harassment and violence

(5) Employee services/welfare

  • Overseeing canteen facilities
  • Provision of transport
  • Provision of recreation facilities
  • Counselling
  • Managing employee assistance programmes 

(6) Productivity improvement schemes

  • Establishing and maintaining quality improvement initiatives, including ISO programmes
  • Introduction and implementation of suggestion schemes, team problem-solving activities, Kaizen (“good change”) tools and other similar programmes

(7) Industrial relations

  • Also known as labour relations or employee relations
  • Refers to the relationship between an employer and employees – especially when employees are members of trade unions
  • Grievance handling
  • Relations with trade union representatives
  • Collective bargaining negotiations
  • Preparing for contingencies, including strike action

Role of the Ministry of Human Resources

  • Set policies
  • Prepare draft employment legislation
  • Enforces the employment legislation

Other Organizations of Relevance to HRM

  • The Employees Social Security Organization
  • Pembangunan Sumber Manusia Bhd
  • National Institute Occupational Safety and Health
  • Skill Development (Loan) Fund Corporation
  • The Employees Provident Fund

The Employment Laws

  • The Employment Act 1955
  • The Sabah Labour Ordinance
  • The Sarawak Labour Ordinance
  • The Wages Councils Act 1947
  • The Employees Provident Fund (EPF) Act 1991
  • The Employees Social Security Act (SOCSO) 1969
  • The Occupational Safety and Health Act (OSHA) 1994
  • The Factories and Machinery Act 1967
  • The Children and Young Persons (Employment) Act 1966
  • The Employment (Restriction) Act 1968
  • The Trade Unions Act 1959
  • The Industrial Relations Act 1967
  • Pembangunan Sumber Manusia Bhd Act 2001
  • The Skills Development Fund Act 2004
  • The National Skills Development Act 2006

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