HUMAN RESOURCE MANAGEMENT module by PolisasLib3

human resource management

INTAN HAZLINA BINTI AYOB

Polytechnic of Sultan Haji Ahmad Shah 1

human resource management

Published by POLYTECHNIC of SULTAN HAJI AHMAD SHAH SEMAMBU 25350 KUANTAN PAHANG

Copyright © 2021, by Polytechnic of Sultan Haji Ahmad Shah Materials published in this book under the copyright of Polytechnic of Sultan Haji Ahmad Shah. All rights reserved. No part of this publication may be reproduced or distributed in any form or by means, electronic, mechanical, photocopying, recording, or otherwise or stored in a database or retrieval system without the prior written permission of the publishers.

Perpustakaan Negara Malaysia

Cataloguing-in-Publication Data

Intan Hazlina Ayob, 1976HUMAN RESOURCE MANAGEMENT MODULE / INTAN HAZLINA BINTI AYOB. ISBN 978-967-0778-49-5 1. Personnel management. 2. Government publications--Malaysia. I. Title. 658.3

Printed by: PERKASA UMMAH ENTERPRISE B60 Jalan Indera Mahkota 7/1 Bandar Indera Mahkota 25200 Kuantan Pahang

human resource management

DEPARTMENT of POLYTECHNIC and COMMUNITY COLLEGE EDUCATION, MINISTRY of HIGHER EDUCATION MALAYSIA DIPLOMA PROGRAMME

Upon completion of the programme, the students will be able to: 1. 2. 3. 4. 5. 6. 7. 8. 9.

apply fundamental principles of multi discipline and soft skill in related area in the real work place use correctly knowledge and skills of multi discipline in office practice communicate effectively with professionals, community environments and organization use appropriately knowledge and skills to recommend effective solution in the organization develop an effective social responsibility and humanistic value to meet the common goals engage in life-long learning and professional development to enrich knowledge and competencies include entrepreneurial skills in the related discipline that contributes towards national growth and be competitive in related industries display confidently of good personality and adhere to professional code of ethics to adapt in the real challenges in working environment demonstrate effective leadership and teamwork responsibility

HUMAN RESOURCE MANAGEMENT covers principles and approaches applicable to the human resource management in an organization. It also offers students an understanding about activities of human resource management department. Through this course, students also have the opportunity to have an overview of Malaysia industrial relations practices and procedures.

Upon completion of the course, students should be able to: CLO 1 interpret principles and approaches applicable to human resource management in an organization. ( C2 , PLO 1 ) CLO 2 illustrate the procedures, methods and processes in managing human resource. ( C4 , PLO 2 ) CLO 3 demonstrate the skills in solving human resource management issues in achieving organizational goals. ( A3 , PLO 6 ) 3

human resource management

MAPPING: CLO interpret principles and approaches applicable to human resource management in an organization

PLO / CLS / DT

TEACHING METHODS

ASSESSMENT METHODS Quiz

1/2/C2

Lecture / Group Discussion / Group Activity / Interactive Learning / Cooperative Learning

illustrate the procedures, methods and processes in managing human resource

2/2/C4

demonstrate the skills in solving human resource management issues in achieving organizational goals

6 / 3d / A 3

Lecture / Group Discussion / Group Activity / Interactive Learning / Cooperative Learning

Test Final Examination

Case Study Final Examination

Lecture / Presentation Practical Activity

TEACHING SCHEDULE: WEEK

Week 5 - 6 Week 7 - 8 Week 9 - 10 Week 11 - 12

TOPIC Registration and Orientation Week Topic 1 – INTRODUCTION TO HUMAN RESOURCE MANAGEMENT Topic 2 – JOB ANALYSIS AND HUMAN RESOURCE STRATEGIC PLANNING Topic 3 – RECRUITMENT AND SELECTION Topic 4 – TRAINING AND DEVELOPMENT Topic 5 – PERFORMANCE APPRAISAL Topic 6 – COMPENSATION MANAGEMENT

Week 13 - 14

Topic 7 – INDUSTRIAL RELATION

Week 1 - 2 Week 3 - 4

Week 15

ASSESSMENT Quiz Case Study 1 Test Quiz 2 Case Study 2 Presentation

Revision Week Final Semester Examination

ASSESSMENT: CLO

ASSESSMENT

QUANTITY

CRITERIA

PERCENTAGE

Quiz

Topic 1 & Topic 5

10%

Test

Topic 3 & Topic 4

10%

Presentation

Topic 7

10%

Case Study

Topic 2 & Topic 7

20%

Total

50% 4

human resource management

The Module is written for students who are required to undertake a basic Human Resource Management course as part of Diploma programme. Although most of the readers will not specialize in Human Resource Management, perhaps some will become sufficiently interested to major in this subject. This is a key subject not just for business students but for everyone because most of us become employees at some part of our lives. Familiarity with the key principles and practices of Human Resource Management enables the reader to understand basic rights as an employee which carry out by organizations. This Module entirely based on the Polytechnic MOHE syllabus for the Human Resource Management subject. The contents in brief consist of

seven

chapters

cover

Introduction

Human

Resource

Management, Job Analysis and Human Resource Strategic Planning, Recruitment and Selection, Training and Development, Performance Appraisal, Compensation Management and Industrial Relation. This Module provides a summary of the important topics covered in Human Resource Management for the purpose of examination review. Furthermore, it is useful to understand that are many different ways to manage human resources so that we can adapt practices in the current workplace.

Intan Hazlina binti Ayob 5

human resource management

human resource management DEVELOPMENT OF THE HUMAN RESOURCE FUNCTION FROM THE 19th CENTURY TILL CURRENT

The Industrial Revolution (1850s – 1920s) The human resource management function developed as a result of the industrial revolution which began in the United Kingdom & quickly spread to Europe & the United States of America. Some of the key characteristics of the Industrial Revolution which had an impact on human resource management are:   

Specialization of task Exploitation of workers Worker alienation

Human Relations Approach (1930s – 1950s) By the 1930s, employers recognized that workers play a major role in the success of any business / enterprise. With the growth of industrial psychology, especially in the United States of America, employers started to emphasize:   

Supervisory training Recreation programmes Welfare programmes

Recent Developments (1950s – current) Because of the growing influence of multi-national organizations & a number of United Nations agencies, including the International Labour Organization, employers have been forced to face many challenges such as:     

Increased labour legislation Organizations getting bigger The world getting smaller Perceived shortage of talented workers Increasing workforce diversity

human resource management

THE OBJECTIVES OF HUMAN RESOURCE MANAGEMENT The purpose of human resource management, amongst others is to:

human resource management

Not all companies have staff dedicated to managing human resources. Whether / not a human resource management department is established in an organization depends on:

human resource management

The Size of Organization The larger the organization in terms of number of employees, the more likely it is to have a separate human resource department. Very small companies cannot afford to employ staff who do not bring in an income to the firm. The absence of a human resource department, however, does not mean that the human resource management function is not being carried out in such organizations. As long as people are employed, the human resource function will exist. If this is so, who is then responsible for human resource management in such organizations? The answer is that every head of department / ‘line’ manager is in charge of ensuring that he / she has the workers he / she needs; workers with the right skills & who are willing to work. In this case, human resource management becomes a part of the manager’s normal duties along with his / her other tasks which may include making / selling a product / service. Medium-sized companies may establish an administration department which will provide a support service to line departments including assistance such as correspondence handling, liaison with government departments, legal matters, office administration & human resource management. Once an organization grows beyond a certain size, the technical requirements of the recruitment, training & record keeping may become too heavy for an administration department to handle. Hence, a separate & specialist human resource department is established. Unionization of the Workforce While the number of employees is a key criterion in deciding whether / not to have a human resource department, an overriding factor may be the status of the employees. If they belong to a trade union, the company would be wise to employ specialists in the field of industrial relations & human resource management staff who are knowledgeable about labour laws. In a unionized environment, management needs specialized knowledge in the area of management of human resources.

human resource management

Ownership of the Company Multinational companies & joint ventures with foreign partners can be expected to need a human resource department to provide input & knowledge in the areas of industrial relations & labour laws which, unlike production, marketing & finance, need local expertise. The Philosophy of Top Management Whether / not a company hires human resource specialists & employs them in a special department will depend on the philosophy of the top management concerning the importance of human resources. If the management truly believes that the organization’s successes & profits are dependent on the cooperation & effort of the workers, they are more likely to perceive a need for a human resource department. Unfortunately, there are managers who will happily agree with maxim but will not spend any money on establishing a human resource department.

human resource management

FUNCTIONS WITHIN THE SCOPE OF HUMAN RESOURCE MANAGEMENT

A wide variety of functions are within the scope of human resource management including the following: Human Resource Planning     

Establishing career movement policies, including transfers & promotions Setting policies & administering disciplinary action systems Terminating employees Liaison with Immigration & Labour Departments Record keeping

Recruitment & Selection  

Attracting suitable people to apply for job vacancies Choosing the most suitable candidate from amongst a group of applicants

Training & Development    

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

human resource management

Performance Appraisal     

Encourages quality performance by rewarding workers who do well Helps to improve current performance by providing workers with feedback Helps to identify workers who need training Assists in identifying workers who may need to be transferred / even dismissed for poor performance Provides a channel of communication between managers & their subordinates

Compensation Management    

Developing a wage structure Establishing incentives schemes Preparing information for payroll preparation Advising on benefits

Industrial Relation    

Grievance handling Relations with trade union representatives Collective bargaining negotiations Preparing contingency plans to deal with strike action

human resource management

The process of human resource management must take into consideration both internal & external factors of the organization. INTERNAL factors refer to the requirement for current skills & vacant positions that are expected to exist in the organization by taking into consideration the available financial resources & the number of existing employees in the organization. EXTERNAL factors refer to factors outside the organization’s control such as the economic condition, labour market condition & the number of graduates graduating from higher educational institutes in a certain period.

human resource management

Tutorial topic 1 Drive

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: https://bit.ly/HRMtutorial

topic 1 : https://youtu.be/j6usS2EDPkc 18

human resource management

Information derived from job analysis is valuable in:

human resource management

SOURCES OF INFORMATION FOR JOB ANALYSIS Information about jobs can be sourced from:  Workers in the organization doing the job  Supervisors & heads of departments  The internet from which ready-made job descriptions can be found  Job advertisements in newspapers  Consultants who have wide experience in a variety of industries & positions

METHODS USED TO COLLECT DATA IN CONDUCTING JOB ANALYSIS

human resource management

Typically, when a job analysis exercise is conducted, the questions asked of workers currently doing the job include:  What are your main duties / tasks?  How much time per day / week / month do you spend on each?  What machines / computers / tools / other equipment do you use?  If you are required to use a computer, what software do you use?  What decisions are you required to make?  Does your work require you to coordinate with staff from any other department?  If you work with other departments, name them & your contacts.  Are you required to work / interact with any persons who are not employees?  If you are required to work / interact with non-employees, describe these parties. THE DOCUMENTATION OF INFORMATION DERIVED FROM JOB ANALYSIS

human resource management

topic 2 : https://youtu.be/3iE5YUFTYXU 25

human resource management

For each human resource plan period which is usually quite shortterm, spanning anywhere between a six-month period to two years, the planners must examine their need for manpower. Typically, a human resource plan will identify one of the following situations: if it is estimated that the organization has insufficient staff, recruitment efforts will be planned if it is estimated that the organization has too many employees for the amount of work to be done, a planned retrenchment exercise may be necessary if the number of employees’ available match the number needed, no action may be necessary other than to continuously monitor the situation

human resource management

Human resource planning is not only about deciding on whether a recruitment exercise will be necessary / not; it also involves costing & deciding on other human resource related decisions such as training. Employers need to control & if possible keep labour costs to a minimum. Therefore, before any employee is hired, a careful analysis must be made as to whether additional staff is needed / whether the organization can survive without hiring more employees. As part of the human resource planning process, the employer should examine alternative options to recruitment. Some of these are listed below: outsourcing the work to a company specializing in the type of work that needs to be done /, to an individual who may work as an independent contractor reorganizing the work & distributing the various tasks to be done to existing staff automating / mechanizing the work to be done Tutorial topic 2 Drive

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: https://bit.ly/HRMtutorial

topic 2 : https://youtu.be/1KfmU1jH-7I 30

human resource management

To ensure that the right employees are hired, organizations must be systematic in their recruitment & selection procedures, which the steps involved in the recruitment process are shown below.

human resource management

Methods will be used depend largely on: ↔ the state of the labour market – in a tight market there will be more jobs available than job-seekers ↔ the level of the job – it is more difficult to find senior managers as compared to junior / inexperienced staff ↔ the number of vacancies available at one time Suitable applicants for job vacancies can be sourced both internally & externally. INTERNAL applicants 

conduct an employee audit / check through personnel files



Inform all employees about the vacancy & invite applicants

EXTERNAL applicants  employment agencies & consultants Employment agencies, both private & public sector, bring together jobseekers & employers with vacancies they wish to fill. Agencies develop contacts in specific industries which allow them to find suitable jobseekers relatively easily. Also they are experienced in choosing appropriate methods to attract applicants as well as in short-listing the most suitable candidates. Many young job-seekers today prefer to look for jobs through online agencies which are becoming very popular.  campus recruitment exercises companies may develop contacts amongst lecturers, student counsellors / job placement officers at local colleges & universities. These institutions regularly organize job fairs.  employee referrals Current employees may be encouraged to recommend friends & relatives if they find them suitable to fill vacancies. Some employers provide a monetary incentive to encourage their employees to look out for suitable job-seekers.

human resource management

 unsolicited applicants Organizations which are perceived as ‘good’ employers / ‘employers of choice’ will receive applications from job-seekers, even when there are no vacancies available. People may write-in, e-mail the human resource department / use other methods to contact the organization & ask for a job.  advertising Organizations place advertisements in a variety of palces to attract job applicants. These include”  newspapers  magazines & professional journals  public notice boards provided by retail stores  radio & television  on external walls / gates of the organization The world today is full of advertiements for products & services. To be effective, a job advertisement must be:     

eye-catching honest not too long detailed enough to ensure only qualified candidates apply informative on how to apply

 internet Increasingly, organizations have their own websites on which they place information about their products / services. Commonly, one section of the site will focus on human resource needs of the firm. Alternatively, job-seekers can contact on-line employment agencies.

human resource management

INTERNAL RECRUITMENT

EXTERNAL RECRUITMENT

AdvantageS

√ employment record of applicant available thus accurate assessment possible

√ avoids inbreeding

√ no induction needed √ little / no cost involved

√ possible to widen choice of applicants by having a pool of candidates

√ employees’ morale & motivation increased DisanvantageS

DisanvantageS

√ filling a vacancy in one department may lead to a more serious gap in another

√ high cost of recruitment process

√ no suitable candidates may be available √ frustration amongst existing employees

√ supervisors may be reluctant to release key employees

human resource management

To ensure that the right employees are hired, organizations must be systematic in their recruitment & selection procedures, which the steps involved in the selection process are shown below.

human resource management

SELECTION TESTS Tests are conducted as part of the selection process to increase its objectivity. Other techniques, especially the interview & reference checks are notoriously subjective. In order to be useful, selection tests must be both valid & reliable.  A valid selection test is one which measures what it is designed to measure, example whether the person can perform on the job. Validity relates to the accuracy of the test.  A reliable test is one which gets consistent results if repeated / when different testers conduct the test. The most popular tests include:

human resource management

Cognitive Aptitude Test Aptitude tests examine the potential of an employee to learn a particular skill even though they have no existing related knowledge / experience. Physical Abilities Test Abilities tests typically test applicants on some physical requirement such as lifting strength, rope climbing / obstacle course completion. Work Sample Test Performance test s attempt to simulate / imitate actual work conditions. Example include:  driving tests  keyboarding tests  language tests  computer usage tests  machine usage tests Job applicants often boast that they have certain skills & abilities. Performance tests allow them to prove that they do indeed possess these attributes. Personality Test Personality tests are the most expensive of the various selection tests. They may be computerized, pencil & paper / practical tests, but usually their purpose is to develop a profile of the applicant to see whether his / her character is suitable for the job & the social climate of the workplace. Most personality testing is conducted by qualified consultants who have either spent a number of years developing a test / who have bought the franchise to an established test. Prior to offering employment, many organizations require applicants to undergo a medical test to ensure they are physically fit for the job. Companies will usually reject any candidates who have medical conditions which may lead to the organization incurring substantial costs at some time in the future.

human resource management

 Structured Interview  This is also known as a formal interview (like a job interview). The questions are asked in a set / standardized order & the interviewer will not deviate from the interview schedule / probe beyond the answers received (so they are not flexible). These are based on structured, closed-ended questions.  StrengthS  1. structured interviews are easy to replicate as a fixed set of closed questions are used which are easy to quantify – this means it is easy to test for reliability. 2. structured interviews are fairly quick to conduct which means that many interviews can take place within a short amount of time. This means a large sample can be obtained resulting in the findings being representative & having the ability to be generalized to a large population.

human resource management

 LimitationS  structure interviews are not flexible. This means new questions cannot be asked impromptu (example during the interview) as an interview schedule must be followed. the answers from structured interviews lack detail as only closed questions are asked which generates quantitative data. This means a research will won't know why a person behaves in a certain way.

 Unstructured Interview  These are sometimes referred to as ‘discovery interviews’ & are more like a ‘guided conservation’ than a strict structured interview. They are sometimes called informal interviews. An interview schedule might not be used & even if one is used, they will contain open-ended questions that can be asked in any order. Some questions might be added / missed as the interview progresses.  StrengthS  1. unstructured interviews are more flexible as questions can be adapted & changed depending on the respondents’ answers. The interview can deviate from the interview schedule. 2. unstructured interviews generate qualitative data through the use of open questions. This allows the respondent to talk in some depth, choosing their own words. This helps the researcher develop a real sense of a person’s understanding of a situation. 3. they also have increased validity because it gives the interviewer the opportunity to probe for a deeper understanding, ask for clarification & allow the interviewee to steer the direction of the interview etc. 1.

 LimitationS  it can be time consuming to conduct an unstructured interview and analyze the qualitative data (using methods such as thematic analysis). employing & training interviewers is expensive & not as cheap as collecting data via questionnaires. For example, certain skills may be needed by the interviewer. These include the ability to establish rapport & knowing when to probe.

human resource management

JOB INTERVIEW PROCESS Good interviewing requires concentration on three phases of the process – planning prior to the interview, the interview itself & followup action after the interview. Planning the Interview Before a recruitment officer begins to interview candidates, he / she must plan the timing, the venue & the topics to be discussed. Conducting the Interview The task of the interviewer is to ask questions & listen to the answers. From the information gathered, the interviewer should be able to assess the candidates. This is only possible if the interviewer avoids stress techniques, asks the right questions & listens carefully to the answers. After the Interview The recruitment officer will need to compare the applicants based on the information collected, make his / her final choice of candidate. Most applicants will be rejected outright at this stage. The selected 46

human resource management

few, which may consist of four / five people, will be ranked accordingly to their suitability for the job. The candidate at the top of the list will be offered the job & the remainder will be kept aside in case the preferred applicant declines the job offer. An interview checklist will be useful in ensuring the above principles are followed. Tutorial topic 3 Drive

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: https://bit.ly/HRMtutorial

chapter 3 : https://youtu.be/r-VcHu-wZxE 47

human resource management



human resource management

A Training Needs Analysis (TNA) is the process of answering two questions, which are:  which workers need training?  what skills / knowledge is the worker lacking / do his / her attitudes need changing? The question of who needs training can be answered by:  conducting a survey of managers  asking the workers themselves  examining performance appraisal forms  examining organizational records which may suggest that an employee performance problem exists In some situations, it will be obvious that training is necessary. For example:

human resource management

A TNA will identify individuals & groups of workers who need training. The numbers of employees needing a particular type of training is important, as it will affect the type of training that is to be organized. A TNA is not complete until the content areas needed for each individual / group of workers has been determined. All training programmes are designed to address a lack of needed skills / knowledge faced by a worker / a need to change his attitudes, especially when these are perceived to be negative.

human resource management

Tutorial topic 4 Drive

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: https://bit.ly/HRMtutorial

topic 4 : https://youtu.be/psg5U6iXxL8 59

human resource management

Strategic Purpose Effective performance management helps the organization achieve its business objectives. Administrative Purpose Ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits & recognition programs. Developmental Purpose Serves as a basis for developing employees’ knowledge & skills.

human resource management

360-DEGREE FEEDBACK EVALUATION METHOD

human resource management

PROS & CONS of 360-DEGREE FEEDBACK PROS

CONS

focuses on employee weaknesses provides feedback to employees & shortcomings instead of from a variety of sources strengths provides feedback from develops & strengthens teamwork inexperienced raters & groups can & accountability ‘game’ the process reveals specific development areas

requires large degree of data collection & processing in some cases

career

human resource management

BIAS IN PERFORMANCE APPRAISAL In order to make personnel decisions using information from a performance appraisal exercise, the output must be as free from bias as possible. Unfortunately, performance appraisals are very prone to bias such as:

human resource management

RECENCY EFFECT Whereby the appraiser bases the appraisal of an employee on recent behaviour & performance & ignores earlier work. HALO & HORNS EFFECT The appraiser is over influenced by one aspect of the employee being appraised & ignores others. CENTRAL / LENIENCY / STRICTNESS TENDENCIES The appraiser gives appraisal ratings near to the centre / top end / lower end of a rating scale. STEREOTYPING, PREJUDICE & DISCRIMINATION Some appraisers hold negative perceptions about whole groups of people & are unable to objectively appraise any individual member of such a group. SIMILAR-TO-ME ERROR When the rater's tendency is biased in performance evaluation toward those employees seen as similar to the raters themselves. We can all relate to people who are like us but cannot let our ability to relate to someone influence our rating of their employee performance. Tutorial topic 5 Drive

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: https://bit.ly/HRMtutorial

topic 5 : https://youtu.be/jOqRU6O7tgQ 71

human resource management

In order to attract workers & to retain the best performers, employers need to have a compensation system that will achieve these objectives. Furthermore, employers need to comply with the relevant laws which relate to payment systems & hours of work. Payment systems & quantum of payment play a significant role not only for individual employers, but also at the level of society.

human resource management

To ensure workers have sufficient funds in their old age, after they retire from work, the Employees Provident Fund was established in 1951 (revised 1991). Both employees & employers must make monthly contributions to the fund. The employer must make a minimum contribution of 12% of the employee’s wages. Contributions are compulsory for Malaysians but optional for foreign workers. The amount an employee is required to contribute varies from time to time. For the 2009 – 2010 period, the contribution has been set at 8% after which the contribution may revert to 11%. The contributions are kept by the fund until the employee reaches the age of 55, at which time he / she can withdraw all the money & use it as he / she pleases. Prior to the age of 55, some money can be taken out for specified purposes such as: √ √ √ √

buying / building house tertiary education fees for the worker / his / her children medical expenses for serious illnesses / operations for the worker, his / her children & his / her parents investment in an approved unit trust

human resource management

If a worker is involved in a work-related accident, including one when he / she is travelling to / from work / if he / she contracts a work-related disease, he / she will receive medical treatment & compensation from the Employees Social Security Organisation (SOCSO). The Employees Social Security Organisation (SOCSO) was established in 1969. Similar to the Employees Provident Fund (EPF), employers & employees have to make monthly contributions to SOCSO. The amount however is much less than that required for the EPF because the money is not savings for the worker. He / she only gets money from SOCSO if he / she has an accident / contracts a work-related disease. SOCSO provides a range of benefits to workers including: √ √ √ √ √ √ √ √ √

medical benefit for those who suffer from an employment injury disablement benefit for those who suffer from an employment injury dependants’ benefit for the family of an employee who dies of an employment injury invalidity pension constant attendance allowance survivors’ pension funeral benefit supply of prosthetic appliances facilities for rehabilitation

human resource management

Accident Insurance for Foreign Workers The SOCSO scheme only applies to Malaysian citizens. Foreign workers are not permitted to join the SOCSO scheme. Employers who recruit foreign workers must buy accident insurance from an insurance company to cover their liabilities should the workers be involved in any industrial accident.

human resource management

EMPLOYMENT ACT 1955

Notice of Termination

- < 2 years - 2-5 years - > 5 years

- 4 weeks - 6 weeks - 8 weeks

Annual Leave

- 1-2 years - 2-5 years - > 5 years

- 8 days - 12 days - 16 days

Sick Leave

- < 2 years - 2-5 years - > 5 years

- 14 days - 18 days - 22 days

- < 2 years - 2-5 years - > 5 years

- 10 days - 15 days - 20 days

Termination, Lay Off & Retrenchment Retirement Benefits Overtime Work Working on Rest Days Maximum Hours of Work

Maternity Leave

Public Holiday

Subject to a maximum of 5 years services Subject to a maximum of 104 hours services -Payable at twice the normal daily basic wage or payment -Payable at twice the normal hourly rate -5 consecutive hours with rest of at least 30 minutes -Not more than 8 hours in 1 day -Maternity leave of 60 days (42-60) commencing any time within 30 days from confinement, with the exception that she has been duly advised by the doctor that her leave is required to begin within 14 days prior to her confinement -After 60 days, she may apply to a total of 90 days confinement (additional 30 days) without pay (non-pay leave) on condition till to the 5th child -Earnings do not exceed RM1500 per month and all manual workers irrespective of their earnings -An employee shall be paid 2 days wages on any one of the 10 gazette public holidays -Any overtime work on any one of the chosen public holidays will be paid at 3 times normal ordinary rate of pay

human resource management

Tutorial topic 6 Drive

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: https://bit.ly/HRMtutorial

topic 6 : https://youtu.be/pqtYQb9nbRk 81

human resource management

Industrial Relations is also known as

↔ ↔

Labour Relations Employment Relations

human resource management

the IMPORTANCE of INDUSTRIAL RELATIONS Although unions & employers are the key parties in an industrial relatios system, the government plays a major role in shaping the system & maintaining industrial harmony. Thus, the three main actors in the industrial relations system are:  Employees & their trade unions  Employers & their associations  The Government particularly the Ministry of Human Resources The three parties meet & discuss policies in a number of forums such as:  The National Labour Advisory Council  The Employees Provident Fund  The annual meetings of the International Labour Organization Employees & their unions are represented by an umbrella body – the Malaysian Trades Union Congress (MTUC) which speaks on behalf of trade unions & workers in general. Most of the members of the MTUC are unions which represent private sector workers, although some public sector unions are also affiliated. The Congress of Unions in the Public & Civil Service (CUEPACS) is a federation of unions in the public sector. Employers on the other hand may affiliate to the Malaysian Employers Federation (MEF). Both the MTUC & the MEF conduct research & training for their members & interested parties. They both present their respective view points on matters of concern to their members. Some issues of recent concern to the MTUC are:  minimum wages for workers  the increase in the cost of living  issues related to the employment of large numbers of foreign workers  privatization of water supply The MEF is interested in many of the same issues, although they may take diametrically opposite positions. While all parties involved in industrial relations have different view points concerning what measures should be introduced to advance industry harmony, they all agree that industrial harmony is essential to the continued progress of the nation. 84

human resource management

PARTIES IN INDUSTRIAL RELATIONSHIP

DEVELOPING GOOD EMPLOYER – EMPLOYEE RELATIONSHIP

human resource management

Employment Act 1955    

to provide minimum benefits for those workers covered by the Act to establish certain rights for employers to establish certain rights for employees to protect workers from exploitation

Trade Union Act 1959   

to provide the rules & the right employees to form, join & participate in any lawful trade to trade union activities – to establish certain rights for employers to provide the rules on the right employers to form, join & participate in any lawful to employer’s association activities – to protect workers from exploitation to establish & promote legislation affecting the interest of the trade union members

Industrial Relations Act 1967   

to provide & encourage harmonious industrial relation between employers & employees to provide guideline on negotiation, discussion & bargaining between employers & employees to establish certain procedures for settlement of trade disputes

human resource management

means that there exists a peaceful relationship between trade unions representing workers & the workers’ employers

human resource management

TYPES OF UNION Trade Unions can be classified in a number of ways. Malaysian unions are generally described as follows:  Employees’ Unions @ National  National Unions are those unions whose members work in many different companies in either Peninsular Malaysia, Sabah / Sarawak, but all members are working in the same trade, occupation / industry. National Unions tends to be the largest unions, although some have only a few dozen members, especially where they are newly established.  Employees’ Unions @ In-House  In-House Unions open only to workers in the same company.  Employers’ Unions  Although most discussions relating to trade unions refer to employees unions, employers can also join a union with other employers. Generally, employers join an employers’ union / employers’ association as they are called, when faced with a strong employees’ union.

THE RIGHT TO JOIN A TRADE UNION  all workers over the age of 16 years working in the private sector may apply to join the union which represents workers in their company, trade, occupation / industry  workers under 21 years of age have restricted rights. They may join a union, but they cannot stand for election nor can they participate in any vote relating to the decision to go on strike  members of the Royal Malaysian Police, the Prison Service & the Armed Forces have no right to join a trade union  workers in the public sector who are classified as managerial level may only join a trade union with permission from the Chief Secretary to the Government  workers in Peninsular Malaysia cannot join unions whose members are working in Sabah & Sarawak. Similarly, workers in these two states are restricted to joining a union all of whose members are working in the same state 91

human resource management

UNION ACTIVITIES What do trade unions do? They:  use the collective strength of workers to negotiate for higher wages & benefits  represent individual members who have grievances / are facing disciplinary action  watch out for cases of victimization & discrimination at the workplace & assist workers to lodge a complaint to the relevant authorities  speak on behalf of workers on issues at the workplace which affect workers’ livelihood  speak on behalf of workers in national & regional forums  conduct research into issues of importance to their members  organize social events to strengthen the relationship between their members  provide benefits to members to encourage retention of their membership In most situations, individual workers do not have the power to negotiate terms & conditions of employment with their employers. Employers offer a compensation package to a potential recruit, the job applicant accepts the offer / rejects it. Little / no negotiation takes place unless the job applicant has many choices of jobs & the employer is desperate to employ the person in question because of his / her experience & special skills. The powerlessness of individual workers is one of the reasons they join a trade union. Power & strength come from joining collectively with other workers & speaking as one.

human resource management

The Industrial Relations Act makes it mandatory for a trade union of employees to be officially recognized by the employer before collective bargaining may begin. This process can be a major barrier for the union.

human resource management

INDUSTRIAL ACTION When people picture trade unions in their minds, they think of strike action. Indeed, many of the controls imposed on the union movement are designed to prevent strike action which is very disruptive to business & to the public. Yet, strikes are the traditional weapons of trade unions. Conflict between trade unions & employers is to be expected, given their different objectives:  employers want to maximize their profits  employees want to maximize their income As conflict over wages & other benefits as well as issues such as retrenchment are common, unions need ways of forcing employers to give in to their demands. Thus, a need to have available methods for settling these disputes so as to restore industrial harmony as quickly as possible. When a trade union has a dispute with an employer over terms & conditions of service, it may take industrial action of one sort / another to get the desired response from the employer The law of Malaysia recognizes the right of trade union members to take industrial action in the form of:  pickets  strikes  lock-out

human resource management

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human resource management

REFERENCE Dessler, Gary (2012). Human Resource Management. 13th Edition. Pearson Singapore: Prentice Hall. (ISBN 13: 978-0-13-266821-7) Maimunah Aminuddin (2014). Human Resource Management; Principles and Practices. 3rd Edition. Selangor: Oxford Fajar Sdn. Bhd. (ISBN 978 983 47 1192 4) Maimunah Aminuddin (2009). Human Resource Management. Selangor: Oxford Fajar Sdn. Bhd. (ISBN 978 983 45 0506 6) Laws of Malaysia (2012). Employment Act 1955. Online Version of Updated Text Laws of Malaysia (2015). Industrial Relations Act 1967. Online Version of Updated Text Laws of Malaysia (2014). Trade Unions Act 1959. Online Version of Updated Text Ministry of Human Resources (2017). MoHR Portal

human resource management

Upon completion of this course, students should be able to:

interpret principles and approaches applicable to human resource management in an organization

( C 2 , PLO 1 )

illustrate the procedures, methods and processes in managing human resource

( C 4 , PLO 2 )

demonstrate the skills in solving human resource management issues in achieving organizational goals

( A 3 , PLO 6 )

for utilizing HRM eBook

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