1. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1

2. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 2 CHAPTER 10 HUMAN RESOURCE MANAGEMENT

3. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 3 Objectives The objectives of this chapter are to:  provide students with a comprehensive review and understanding of essential human resources management concepts and techniques  expose students to how the human resource management (HRM) functions are interrelated  show students how the HRM functions help firms achieve their strategic goals  assist students understand the role and responsibilities of HR managers in the firms

4. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 4 Learning Outcomes At the end of this chapter, students should be able to:  explain what human resource management is and how its functions are interrelated  describe the important elements and process of each of these functions  discuss how these HR functions help in achieving firm’s strategic goal and objectives and why HRM is considered a firm’s strategic partner  discuss the methods and techniques that should be used to solved human resources related problems  explain the various employment laws in Malaysia and how it relates to HRM practices

5. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 5 HRM Functions

6. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 6 HR Planning Process

7. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 7 Forecasting personnel needs  trend analysis  ratio analysis  computer forecasting  goal setting and strategies planning HR Planning Process (cont.)

8. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 8 HR Planning Process (cont.)

9. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 9 Job Analysis

10. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 10 Methods and sources of job analysis  Uses of job analysis  Recruitment and selection  Training  Compensation  Performance appraisal Job Analysis (cont.)

11. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 11 Recruitment and Selection  Types and sources of recruitment  Methods of recruitment  Selection

12. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 12 Recruitment and Selection (cont.)

13. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 13 Training and Employee Development  Employee orientation  Training process –Step 1 Needs assessment –Step 2 Employees’ readiness for training –Step 3 Plan training programme –Step 4 Ensuring transfer of training –Step 5 Selecting training methods and implementing the programme –Step 6 Evaluating training programmes

14. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 14 Employee development  Formal education  Assessment  Job experience  Interpersonal relationships Training and Employee Development (cont.)

15. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 15 Compensation and Benefits  Strategic HR function  Used to achieve firms strategic goals  Helps attract the best candidates  Motivates employees to achieve productivity, improves employee satisfaction, helps retain and maintain existing high performers, and encourages employee loyalty

16. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 16 Performance Management  Purpose of performance management  Performance appraisal  Who should conduct the appraisal? –Immediate supervisors –Peer appraisals –Employee self-appraisals –Committee appraisals –Multisource appraisals

17. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 17  Performance appraisal methods –Category rating methods –Comparative methods –Narrative methods –Behavioural/objective methods –Rater errors Performance Management (cont.)

18. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 18 Performance Management (cont.)

19. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 19 Performance Management (cont.)

20. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 20 Industrial Relations and Employment Laws  Trade unions  Trade disputes –Negotiation –Conciliation –Arbitration  Representations on dismissals  Industrial actions –Picketing –Strike –Lockout

21. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 21 Employment Laws  Laws on work hours  Rest days  Holidays  Annual leave  Sick leave  Maternity leave and allowance  Employment of foreign workers  Terminating the service of the employee

22. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 22  Types of disciplinary actions  Approaches to discipline administration –Hot stove rule –Progressive discipline –Positive discipline Counselling Written documentation Final warning Discharge Employment Laws (cont.)

23. All Rights Reserved Fundamentals of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 23 Occupational Safety and Health  Duties of employers and self-employed persons to their employees  Safety policy and safety training  Duties of employees  Notification of accidents, dangerous occurrences, occupational poisoning and occupational diseases