BBPB2103 Human Resources Management - Esept21
BBPB2103 Human Resources Management - Esept21
BBPB2103 Human Resources Management - Esept21
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INTRODUCTION
BBPB2103 Human Resource Management is one of the courses offered at Open
University Malaysia (OUM). This course is worth 3 credit hours and should be
covered over 8 to 15 weeks.
COURSE AUDIENCE
This is a core subject for learners in the Bachelor of Management and Bachelor of
Business Administration programmes. It is also a fundamental major course for
learners taking the Bachelor of Hospitality Management programme. For learners
taking the Bachelor of Human Resource Management programme, this course is
a core major subject.
As an open and distance learner, you should be able to learn independently and
optimise the learning modes and environment available to you. Before you begin
this course, please ensure that you have the correct course materials, understand
the course requirements, and know how the course is conducted.
STUDY SCHEDULE
It is a standard OUM practice that learners accumulate 40 study hours for every
credit hour. As such, for a 3 credit hour course, you are expected to spend
120 study hours. Figure 1 shows the student learning time (SLT).
2. Explain the roles of the human resource manager in designing the course of
an organisation.
COURSE SYNOPSIS
This course is divided into 10 topics. The synopsis for each topic is listed as
follows:
Topic 7 covers the performance evaluation process, the sources and methods
to evaluate employeesÊ performance, and the performance discussion process.
This topic also explains how managers or supervisors can make errors while
evaluating employees.
Topic 10 ends this course with discussion on work safety and health. In this
topic, learners are familiarised with laws that govern safety and health at the
workplace and the associated hazards. At the end of the topic, some ideas on
how to create a safe and healthy work environment are suggested.
Learning Outcomes: This section refers to what you should achieve after you
have completely covered a topic. As you go through each topic, you should
frequently refer to these learning outcomes. By doing this, you can continuously
gauge your understanding of the topic.
Summary: You will find this component at the end of each topic. It summarises
various important parts of each topic and helps you to recap the whole topic.
By going through the summary, you should be able to gauge your knowledge
retention level. Should you find points in the summary that you do not fully
understand, it would be a good idea for you to revisit the details in the module.
Key Terms: This component can be found at the end of each topic. You should
go through this component to remind yourself of important terms or jargon used
throughout the module. Should you find terms here that you are not able to
explain, you should look for the terms in the module.
PRIOR KNOWLEDGE
Learners are required to have completed BBPP1103 Principle of Management.
ASSESSMENT METHOD
Please refer to myINSPIRE.
REFERENCES
Byars, L. L., Rue, L. W., & Ibrahim, N. (2015). Human resource management
(11th ed.). McGraw-Hill.
Snell, S. A., Morris, S. S., & Bohlander, G. W. (2015). Managing human resource
(17th ed.). South-Western.
INTRODUCTION
MalaysiaÊs fourth and seventh Prime Minister Tun Dr Mahathir Mohamad
(1981ă2003; 2018ă2020), once said the following:
From the amazing economic experience two decades ago, among countries that
before had limited „natural resources‰, it is clear that the most important
resources to a country are talent, skills, creativity, and the effort of its people.
Brain power is a source that is much more valuable than natural resources.
People are our main resources. Without doubt, in the 1990s and beyond,
Malaysia must give its utmost attention towards the growth of this very crucial
resource.
(Mahathir, 1991)
At one time, many observers were of the opinion that machines would take over
the functions and roles of employees in an organisation. The same opinion persists
in the era of Industry Revolution 4.0. However, the opposite has happened. Like
what Tun Dr Mahathir said, human resources are becoming more important in
todayÊs organisations, especially in knowledge-based industries such as software
and information services.
The success or failure of an organisation most of the time relies on the knowledge,
skills, and ability of its employees. Many experts feel that an organisation is able
to achieve greater advantage if it has valuable human resources which are difficult
to acquire and imitate and are well-managed.
There are also other groups who think that personnel management and human
resource management are different in terms of their roles, scope, and actions.
Human resource management portrays a much wider perspective, which includes:
industrial relations;
hiring employees;
paying employees;
Proactive Reactive
Facilitates an organisationÊs positive Does not take into account the effects of
culture culture
EXERCISE 1.1
Human resource management is also responsible for managing any changes that
happen in an organisation due to merging activities, business downsizing, and
various workforce cultures. Figure 1.1 shows a few of the main roles of the human
resource management department.
(a) Planner
Plans matters related to staffing, such as planning manpower needs,
recruitment, and employee selection.
(b) Facilitator
Prepares training opportunities and career development for employees and
conducts orientation sessions for new employees.
(c) Coordinator
Coordinates matters related to employee health and safety, amenities, and
benefits.
(d) Auditor
Oversees employee performance and controls compensation offers such as
rewards and benefits to employees and evaluates accident and injury reports.
(e) Mediator
The human resource management division acts as a middleman in matters
pertaining to employee disciplinary issues, consultation with workerÊs
unions, conflict handling, and employee dissatisfaction.
ACTIVITY 1.1
Assuming that you are the head of the human resource department in
your organisation, what do you think are the important roles of your
department? Share your thoughts in the myINSPIRE forum.
In order to achieve Vision 2020 and ensure that Malaysia became a developed
country by 2020, various efforts were planned to develop human capital resources.
Among them are:
There are a few more Acts that influence human resource management practices
in Malaysia. Among these are Employment Act 1955, Industrial Relations Act 1967,
and Occupational Safety and Health Act 1994. All the Acts related to the human
resource management environment in Malaysia will be discussed further in
Topic 2.
Human resource management functions are not only about keeping records and
updating files. They involve a holistic and integrated approach that includes
various activities designed to contribute to the effectiveness of an organisation.
Figure 1.2 shows the main functions of human resource management in an
organisation.
(a) Staffing
Staffing involves human resource planning process, job analysis, recruitment
and selection of manpower.
Job Analysis
The human resource management department conducts job analysis
to develop specific requirements for a job in an organisation. It is a
process of gathering information on a particular job by identifying the
responsibilities and duties related to the post. Information from the
job analysis will be used to develop jobs, prepare job details, and job
specifications.
Recruitment
Recruitment is a process of identifying and encouraging interested and
potential job candidates to apply for available posts in an organisation.
Task details and job specifications provide information on candidatesÊ
eligibility and explanation on job requirements.
Selection
Selection is a process of identifying the most suitable candidate to fill a
vacant post whereby the candidate is chosen from a group of applicants
obtained from the recruitment process. Some of the procedures usually
practised in the selection process include checking the application form
and résumé (curriculum vitae), checking the candidateÊs background,
conducting interviews, and conducting selective tests such as physical
and personality tests.
EXERCISE 1.2
Ć globalisation
Ć challenges in technology
Ć managing change
Ć market reaction
Ć cost reduction
Ć economic climate
Ć legal system
(a) Globalisation
Mergers, takeovers, and competition among international industries and
businesses are increasing. To remain and compete in the market, more firms
are starting to explore the global market. Indirectly, this causes them to face
issues such as cultural, legal, and business practice differences.
ACTIVITY 1.2
Read the following journal article and discuss the impact of globalisation
on human resource management and employment relations. The journal
article can be found in OUMÊs TSDAS Digital Library.
Aside from that, the use of human resource information technology has
influenced a lot of todayÊs human resource management practices, such as:
knowledgeable
skilful
experienced
a re-engineering process.
Both approaches have direct implications for human resources. To ensure the
effectiveness of the programmes, the management team needs to make some
drastic changes to its human resource management programmes to focus on
issues such as:
employee motivation
employee education
downsizing
outsourcing
mergers
Most of the time, these actions cause employee surplus, which then forces
the management to reduce the number of employees through the process
of laying off staff. This issue needs to be handled wisely and fairly by
the human resource management team to avoid problems and employee
dissatisfaction that might affect the organisationÊs performance.
In the event of economic growth, demand for labour force will increase
due to increase in production. In these circumstances, organisations will
experience a situation whereby the labour market is limited.
ACTIVITY 1.3
employee rights
personal issues
In addition, many working women have toddlers and need the services
of a nursery. Employers, especially the human resource management
department, need to prepare suitable amenities to fulfil their needs and
arrange for:
ACTIVITY 1.4
If you are a human resource manager and most of your employees are
women, which issue would be important for you to consider? Why?
Discuss with your coursemates on myINSPIRE.
EXERCISE 1.3
Essay Questions
Mahathir Mohamad (1991, February 28). Vision 2020: The way forward
[Conference presentation]. Malaysian Business Council Meeting, Kuala
Lumpur, Malaysia.
INTRODUCTION
The Employment (Amendment) Act 2000 [Act A1085] was enforced on 1 October
2000 while the Employment (Amendment) Act 2012 [Act A1419] took effect on
9 February 2012. They are part of the Employment Act 1955, which comprises
laws and regulations concerning employment and work relations enacted by the
authorities and are regularly amended to fulfil current needs.
These laws and regulations influence the policies, activities, and human resource
management programmes formed by an organisation. The organisationÊs
management team, especially the human resource management unit, needs to
create policies and procedures which abide by the law, so that all actions taken will
be according to the law.
Each organisation has objectives to achieve and engages people to work on them.
Therefore, people are important assets to all types of businesses. Although new
technologies may change the employment landscape, people are still an integral
part of business success. Organisations may exploit their employees intentionally
or unintentionally to achieve their organisational objectives. The organisations also
may be harmed through unethical conduct by their employees or their negligence.
ACTIVITY 2.1
Before exploring the legal aspects of work relations, consider what could
have happened to work relations between an organisationÊs management
and its employees if there were no legal system enacted to protect the
rights of both parties. Discuss with your coursemates in myINSPIRE.
A few amendments were made to the Act since its enforcement and the latest
amendments were made in 2011. This Act is referred to as the Employment
(Amendment) Act 2012. Some of the amendments found in this Act include:
contractors, principals and contractors for labours (Part VII, Section 33A)
The Employment Act 1955 focuses on employees who are contractually bound to
the management and:
(b) not taking into account their monthly total earnings, are working as a:
manual labourer
domestic employee
In this topic, we will only discuss a few important elements of work relations
mentioned in the Employment Act 1955 as shown in Figure 2.1.
The Employment Act 1955 also allocates a few prohibitions towards the contract
of service such as:
Apart from that, the end of a contract of service notice needs to be stated in the
contract of service. If the notice period is not set in the contract of service, the
minimum period of notice that is allocated under the Employment Act 1955 is as
shown in Table 2.1.
ACTIVITY 2.2
It is the right of employers to stop making any payments to the employees if the
employees are not present at work due to imprisonment or attending court unless
their attendance in court is as witness for the employers.
ACTIVITY 2.3
If your payment period is from the 14th of this month until the 13th of
the next month, according to the Employment Act 1955, what is the last
day that your employer needs to pay your fee? Share and check your
answer with your coursemates in myINSPIRE.
Study the Employment Act 1955: Part VIII and find the protections that need to be
given by employers to female employees.
at any time in the four months immediately before their confinement; and
for a period of, or periods amounting in the aggregate to, at least 90 days
during the 9 months immediately before their confinement.
However, female employees who have five or more living children are not eligible
for maternity allowance. Apart from that, female employees have the right to take
30 days of maternity leave prior to or right after the delivery.
Previously, a female employee who was not within the scope of the Employment
Act 1955 was not entitled to maternity allowance unless the contract of service
stipulated otherwise. However, with the Employment (Amendment) Act 2012
under Section 44A, the scope of maternity allowance was extended to all female
employees who are employed under a contract of service irrespective of wages.
Figure 2.2: Normal Hours of Work According to the Employment Act 1955 (Section 60A)
Apart from that, employees should not be required under their contract of service
to work more than 8 hours a day (not including rest period). If an employeeÊs work
hours are from 9am to 6pm (9 hours), he needs a rest from 1pm to 2pm (1 hour).
The total working hours in 1 week should not be more than 48 hours. However,
employees are allowed to work overtime. The maximum number of overtime
allowed for an employee is 104 hours in a month, unless exempted by the Minister
under Section 2B.
ACTIVITY 2.4
Go online and find out three types of eligible unused sabbatical leave
during employment. Share your findings in myINSPIRE.
Does not exceed half of normal hours of 1 day wage at ordinary rate
work.
More than half but does not exceed the 2 days wages at ordinary rate
normal hours of work.
Does not exceed half the normal hours of work. Half day of ordinary rate
More than half but does not exceed the normal 1 day of ordinary rate
hours of work.
For work done exceeding normal hours of rest day in (i) or (ii), they shall
be paid no less than 2 times their hourly rate of pay.
Copyright © Open University Malaysia (OUM)
32 TOPIC 2 LEGAL ENVIRONMENT
For those employed on piece rates who work on rest day, they shall be
paid 2 times their ordinary rate per piece.
National Day
Labour Day
Malaysia Day
Employees who are absent from work without permission from employers
and without any appropriate reason, and whose absence exceeds 10% of
working days for 12 months continuously are not eligible for annual leave
for the duration concerned.
Employees also have the right to 60 days of medical leave if they are
hospitalised. However, this 60-day eligibility will be reduced to follow
the number of standard medical leave that has already been utilised. For
example, if an employee who is hospitalised has taken 10 days of medical
leave earlier, then his right to medical leave due to hospitalisation is only
50 days.
Find out online what actions can be taken against employees who often take sick
leave and emergency leave which exceed the limit.
EXERCISE 2.1
This Act is intended to prevent any differences or disputes that arise from this
relationship, as well as to deal with any trade disputes and related matters. The
purpose is to creat industrial harmony. Among the aspects covered in the Act
include protection for all parties, recognition, and trade union scope, and collective
bargaining and agreements. Figure 2.3 shows the items contained in the Industrial
Relations Act 1967.
give recognition;
upon recognition, the employer or trade union of employers should notify the
Director-General.
If a certain trade union representing an employee has been given recognition, then
other unions intending to represent the particular employee are not allowed to
make any recognition claims except if:
EXERCISE 2.2
2. What is the time period allocated, under the Industrial Relations Act
1967, for the management to reply to a request from workers to set
up a trade union in the company?
Bound under the category of Employment Relations, this Act governs the
registration of a trade union. Any newly formed trade union is required to
apply for registration within a month of its formation.
The Act covers membership criteria and the rights, powers, and
responsibilities of a trade union and its managerial prerogatives for any
collective bargaining.
Among the membership conditions which are allocated in this Act are as follows:
(b) Members under 18 years old are not eligible to vote in these matters:
organising strikes;
(c) Members under 21 years old are not allowed to hold any post in the union.
EXERCISE 2.3
4. The management has the right to stop its employees from joining
workersÊ union activities.
protect others who are present at the workplace from any accidents that might
be triggered by workersÊ activities;
This Act requires the management to establish a safety and health committee if it
has 40 or more employees in the workplace or if directed by the Director-General.
EXERCISE 2.4
(c) SOCSO only covers Malaysian workers and permanent residents. Foreign
workers are protected under the WorkmenÊs Compensation Act 1952.
a person whose wages exceed RM3,000 a month and has never been
covered before
government employees
self-employed persons
foreign workers
EXERCISE 2.5
1. The Social Security Act 1969 protects all employees who are
employed under one contract of service with a salary of not more
than RM___________.
Every employer registered with the Human Resource Development Council has
to pay a human resource development levy for every employee based on their
wages. Registered employers that have made the payment are entitled to apply for
financial aid or the services allocated in this Act for the purpose of encouraging
employee training. Table 2.6 shows the levy rate imposed according to the set
criteria in the Human Resource Development Act 2001.
Under this Act, the Human Resource Development Fund must be spent on:
bearing any administration costs for the Fund as well as the cost of
implementing the Act.
Apart from that, the Human Resource Development Act 2001 also allots aspects
on the functions of the Human Resource Development Council:
evaluates and determines the types or levels of training that are in line with the
industryÊs human resource needs;
EXERCISE 2.6
All employers must register their employees with the Employees Provident Fund
immediately upon employment.
The contribution rate allocated under this Act is based on the following:
A worker aged less than 60 years: Full contribution is 24% (13% employers,
11% employee) for employees paid RM 5,000 and below. It is 23%
(12% employees and 11%) for employees paid exceeding RM 5,000 a month.
A worker aged 60 and above up to 75 years: The contribution rate is 50% of the
statutory contribution of workers aged under 60 years in the amount of wages.
These accounts are created for different purposes and different types of
withdrawals are applicable for each account:
(a) Account 1
The savings here are for the purposes of retirement and cannot be fully
withdrawn before an employee reaches the age of 55 or passes away, or loses
capacity and intends to leave Malaysia permanently.
(b) Account 2
The savings in this account are meant to help employees to make early
preparations for a comfortable retirement. Withdrawals are allowed if they:
are owning a house or making the down payment for a first house;
settling the balance of their housing loan for their first house;
ACTIVITY 2.5
(a) How much can be withdrawn from Account 2 to pay for a house?
EXERCISE 2.7
In the early stages, this Act covered all manual workers in the private sector and
non-manual workers in the private sector with a salary of not more than RM500 a
month. In 1977, the scope of the Act was extended to include non-manual workers
in the public sector with a salary of not more than RM400 a month.
The next amendment was made in 1993 when it gave protection to all foreign
workers in the private sector, whereas all local workers in the private sector were
covered under the EmployeesÊ Social Security Act 1969. However, in 1996, this Act
was amended so that it only gives protection to non-manual workers in the public
sector with a salary of not more than RM400, while foreign workers are protected
under the Foreign Workers Compensation Scheme 1952.
EXERCISE 2.8
Essay Questions
2. State four public holidays that have been set and be made
compulsory in the calendar year.
3. What are the types of leave specified in the Employment Act 1955?
Ć Overall, it is clear that legal systems influence work relations formed between
employers and employees.
Ć The Industrial Relations Act 1967, which has been discussed in this topic,
should be able to give you a more comprehensive picture about the importance
of having a systematic and organised human resource management system.
INTRODUCTION
Organisations compete with one another based on the skills and abilities of their
manpower. Therefore, manpower or human resource planning becomes very
important so that present and future employees will be a competitive workforce.
Job analysis and job design are two important elements that form the foundation
of effective human resource planning. Job analysis determines the requirements of
a job. Job design helps employees achieve an organisationÊs objectives and at the
same time, gives satisfaction to employees in performing their jobs.
The main purpose for an organisation to conduct job analysis is to improve its
performance and productivity. It is necessary to identify the skills, knowledge,
experience, and other requirements necessary to do a job. Job analysis helps
organisations to fulfil the legal needs and regulations set by the government.
Usually, the human resource department is responsible for conducting job
analysis.
(a) Recruitment
Changes in employee environment and composition require a manager to be
more involved in human resource planning. The manager must plan a more
effective recruitment method in order to hire capable employees.
SELF-CHECK 3.1
Figure 3.2: Relationship between Human Resource Planning and Strategic Planning
Figure 3.3 shows the relationship between the human resource planning
process and strategic planning process.
Figure 3.3: Relationship between the Human Resource and Strategic Planning Processes
ACTIVITY 3.1
Contract Labourers
This refers to employees who are readily available and with limited
tasks, such as clerks and furniture restorers.
Affiliates
Affiliates have unique skills but are not related to the organisationÊs
basic strategies. An organisation tries to promote a good relationship
with their affiliates and invests in the exchange of information and
knowledge. Examples of affiliates are lawyers, consultants, and lab
researchers.
Human resource planning policies and practices must achieve two types of
adaptation, i.e., external adaptability and internal adaptability.
EXERCISE 3.1
Table 3.1: Predicting Human Resource Needs with the Trend Analysis Method
Human Resource
Business Factors Labour Productivity
Year Needs (Number of
(Sales in RM Â000) (Sales/Employees)
Employees)
In Table 3.1, the business factor that is taken into account in predicting
human resource needs is the total annual sales for each year. Labour
productivity is obtained by calculating the average number of sales of
an employee in the financial year. The total number of employees can
be predicted by dividing the value of business factor with labour
productivity.
Apart from total sales, other business factors that can be used to predict
human resource needs are interest rates, gross national income and
income expenditure.
ACTIVITY 3.2
Refer to Table 3.1. If the sales result in 2005 was RM4,546,000 and the
labour productivity was maintained as in 2004, what would be the
human resource needs in 2005?
ACTIVITY 3.3
There are various methods to detect and predict the total number of internal
employees. Among these methods are:
Staffing Schedule
A staffing schedule gives a graphic display on all jobs in an organisation,
including the existing number of employees involved in the jobs. It also
contains employeesÊ needs for the future.
Markov Analysis
This analysis detects the pattern of employee movement through various
types of jobs. It shows the percentage and actual figure of employees
who still remain in a particular job, and employees who are promoted,
demoted, transferred or removed from the organisation. Through
Markov Analysis, an employee movement matrix can be developed and
the supply of internal human resources can be predicted. For an example,
refer to Table 3.2.
Categories and
A1 A2 B1 B2 Out
Job Levels
Year A1 100 60 10 20 0 10
2002
A2 20 1 12 0 0 7
B1 200 10 0 120 10 60
B2 15 0 0 0 12 3
The percentage data in part a (transition probability matrix) for all categories
and job levels were obtained based on previous yearsÊ calculations. Refer to
the salesperson level (A1). The percentage is derived from the total number
of employees who are maintained in level A1 divided by the total number
of employees in that level from the previous year. Then, the total number of
promotions to A2 in the current year is divided by the total number of
employees in level A1 from the previous year. The same goes for the total
number of employees who moved to B1, were promoted to B2, and were
removed from the organisation. The total of all percentages must add up to
1 (or 100%). For example, at level A1 = 0.60 + 0.10 + 0.20 + 0.00 + 0.10 = 1.00.
ACTIVITY 3.4
Refer to Table 3.2. Say in 2002, the number of customer service agents
(B1) was 280. How many of them would be promoted to customer service
managers?
Skills Inventory
A skills inventory consists of employeesÊ personal files that contain
information on their education, experience, interests, skills, and others.
A skills inventory enables a manager to promptly match suitable
positions with employee backgrounds.
Replacement Chart
A replacement chart consists of a list of current position holders and
those who could fill in a position if it becomes vacant. This chart provides
information on the employeesÊ or managerÊs current performance and
the probability of a promotion.
Succession Planning
Succession planning identifies, develops, and detects important
individuals for executive positions.
There are a few external factors that influence the labour market. Among
them are demographic changes, economy, manpower level of education,
requirements for certain skills, population movement, and government
policies. The unemployment rate at the national and state levels often
becomes the benchmark to detect the labour force or employee supply.
SELF-CHECK 3.2
Based on the human resource planning definition in Subtopic 3.1 and
your experience at the workplace, what are the steps involved in human
resource planning?
EXERCISE 3.2
5. The unemployment rate at the national and state levels can become
the benchmark in identifying the external human resource supply.
EXERCISE 3.3
3. Total sales are the only business factor that should be used to
predict human resource needs.
Essay Question
Differentiate between the quantitative approach and qualitative
approach in the forecast of human resource needs.
The outcome of the analysis is used to develop job description and specification.
Before carrying out a job analysis, the requirements for a particular job must
be determined. Questions such as the following should be asked so that a more
accurate job requirement can be determined:
Figure 3.7 briefly explains how job analysis can be used to produce job description
and specification.
The outcomes of the job analysis will be job description and job specification.
career path.
Term Description
ACTIVITY 3.5
Search online listings for jobs with job descriptions. Pick three or four
from different organisations, compare these descriptions with your
coursemates, and make notes of similarities and differences between
them.
Interview
A job analyst will question employees, supervisors, and managers
individually regarding the work that is being analysed.
Survey
A job analyst will distribute to every employee a questionnaire on
the work that is being analysed. Each employee must fill up the
questionnaire. The data gathered is on employeesÊ duties and
responsibilities, work goals, suitability of workplace, requirements to
perform work (skills, education, experience, physical and mental needs),
equipment and materials needed, and requirements for employeesÊ
health and safety.
Observation
A job analyst can obtain information on jobs by observing employees of
particular positions while they are performing their tasks. Observation is
based on standard work activities. The result of the observation will be
recorded in an observation form.
Apart from the methods above, there are other methods or approaches in
data collecting that are quantitative in nature.
Each function has a difficulty level that has been relatively set. The total
value of the difficulty level will determine a jobÊs content and help to
prepare the job description and specification. Table 3.4 shows an
example of a FJA application.
The lower the score of the difficulty level, the higher the difficulty level
function. Jobs that have the same score are grouped together and paid
the same salary rate.
Ć Information Input
This refers to the way employees acquire information on a job.
Ć Mental Process
This refers to the process of reasoning, decision making, and
planning applied in performing a job.
Ć Work Result
This refers to the types of equipment and physical activities utilised
to perform a job.
Ć Work Contexts
This refers to the physical and social contexts where a job is
performed.
EXERCISE 3.4
Most job descriptions contain at least three parts, namely, position, work
introduction, and work duties and obligations. Table 3.5 presents the
important areas of a job description.
Job Description
Description
Term
ACTIVITY 3.6
Based on your experience at the workplace, what are the problems that
may be faced by the management and employees in the process of
preparing a job description report? Discuss with your couesemates in
myINSPIRE.
(a) Recruitment
The recruiter must have knowledge of the job specification before hiring an
employee to fill the post.
(b) Selection
The manager and supervisor will use the job description and job specification
to select and orientate employees.
EXERCISE 3.5
Job design involves the merging of five factors (Bohlander et al., 2009):
organisational objectives;
employee contribution.
Job enrichment is effective only for certain jobs. Some employees become
unhappy when their job description is changed while others see it as a
challenge and a stimulating change.
Task significance focuses on the impact and influence of a job. Jobs are
more satisfying if employees believe that they make a difference, and are
adding real value to colleagues, the organisation or the larger
community.
ACTIVITY 3.7
Through industrial engineering, the standard work duration for each work
element is merged and matched by taking into account an employeeÊs skills and
efforts while performing a particular job. The time duration on matters that
interrupt employees when working is also considered. Therefore, the total time
that has been changed is considered the standard time to perform a work cycle.
ACTIVITY 3.8
The overall system is suited to the characteristics that are present in humans.
Factors such as job types, work environment, machines, equipment, and processes
must be suitable for employees who are performing a particular job. Briefly, we
try to fit machine to man, and not fit the man to the machine.
ACTIVITY 3.9
In this developing era, females are able to perform tasks which were
formerly monopolised by men. However, there are parties who feel that
jobs such as labourer are only suitable for men. Give your views in
myINSPIRE. If you agree, do you think you are discriminating against
female employees?
EXERCISE 3.6
1. There are two methods in job design, namely, job enrichment and
job characteristics. Both methods combine employee behavioural
needs when they are performing their jobs.
Cross-functional Teams
A cross-functional team is a team that consists of multiple expertise and
is established to achieve a specific objective. Membership in a cross-
functional team is upon appointment and not voluntary.
Project Teams
A project team is a team that is established to design a new product or
service. Membership is upon appointment by the management based on
the ability of the employee to contribute to the achievement of a project.
The team will be disbanded when all tasks are completed.
Self-directed Teams
A self-directed team consists of those who are trained to perform tasks
related to the work unit. Group members opt for the majorityÊs
agreement in carrying out each of their obligations, such as problem
solving and liaising with customers from inside or outside the
organisation.
Process-improvement Teams
A process-improvement team comprises employees who are experienced
in various departments or functions. They are in charge of improving
quality, reducing wastage, and increasing productivity in the processes
that involve all related departments or functions. Team members are
usually appointed by the management.
Virtual Teams
A virtual team is a team where its members are far away from each
other and communicate through computers and other communication
technology.
Employee teams will change the way the management and employees
communicate with each other. The manager faces problems in acting as a
head whereby traditionally managers have always acted as supervisors. The
manager will feel threatened by the empowerment given to employee teams,
which indirectly lessens the managementÊs power.
Ć team leadership
Ć chairing a meeting
Ć conflict resolutions
Ć effective communication
SELF-CHECK 3.3
Among the usual work timetable options are compressed workweek, flexi time,
job sharing, and telecommuting.
(d) Telecommuting
Micro computers, networks, and other communication technologies such as
facsimile machines are used to perform tasks which were previously done at
the office or workplace.
EXERCISE 3.7
4. Flexi time allows employees to choose their own start and end of
work time as long as they work for a certain total number of hours
per day or per week.
2. Extension and expansion of job analysis that improve a job, and are
related to job structure to increase organisational efficiency and an
employeeÊs job satisfaction.
Essay Questions
Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work:
Test of a theory. Organizational Behavior & Human Performance, 16 (2),
250ă279.
INTRODUCTION
Human resources are dynamic. People can choose to stay in or leave an
organisation. Employees are more likely to leave when they have options to do
so, especially if it comes with better opportunities. Even when employees choose
to stay, they will leave an organisation when they come to the age of retirement.
As a result, an organisation will always be looking for replacements.
All businesses compete within the same labour market. Globalisation has opened
the door for businesses to look for potential employees beyond geographical
regions. However, the same factor allows people to have more employment
options. Therefore, organisations are compelled to find job candidates who are
able and willing to do the assigned jobs.
In the recruitment process, effort is put into informing applicants about the
qualification requirements in performing a job, as well as job opportunities that
are offered by an organisation to its workers. Recruitment that will be made
depends on the supply of existing personnel, the organisationÊs human resource
policy, and important matters involved in a particular job.
ACTIVITY 4.1
The existing data can also be used to forecast employeesÊ career path and
predict when and where the opportunity for promotion will be announced.
However, the data has to be updated and there has to be a systematic method
to update the data.
The performance records of employees who are offered a new job are
more reliable when compared to that of a new employee who is hired
from outside the organisation.
However, recruiting employees from within the organisation has its weaknesses
and limitations, as follows:
Organisations have to face the risk of employee cloning, i.e., employees who
maintain a repetitive work behaviour and attitude.
(a) Advertising
Advertising is the most popular source of attracting applicants. The
advertising mediums that are often used by organisations are newspapers,
radio and television commercials, posters, billboards, and business journals.
The types of advertisements used by the organisation depend on the type of
job vacancy that needs to be filled and the type of labour market. It also
depends on the cost that the organisation is willing to bear.
ACTIVITY 4.2
When you applied for your current job, which recruitment method did
you go through? Share your experience in myINSPIRE.
EXERCISE 4.1
Some of the steps that can be taken to increase the effectiveness of external
recruitment are:
Whereby:
External recruitment is done for the purpose of injecting new influence into an
organisation so that the existing work culture can be stimulated.
ACTIVITY 4.3
Research has found that employees hired through referrals and self-
applications stay on longer in an organisation and show better
performance than those hired through normal methods, such as
advertising. Based on your work experience, do you agree? Discuss.
Organisations must make sure that they have the resources to engage
immediately the channels that they create. It includes readiness to respond
immediately and availability to interact frequently.
Choose a social media that suits the intended recruitment. LinkedIn, for
example, serves as one of the best recruitment platforms to attract professional
applicants.
Social media pages should reflect the overall corporate image. In this situation,
an organisation must be willing to spend some resources to hire a designer or
programmer.
Although organisations engage in the suggested best practices when they want to
use social media recruitment, they also need to know important characteristics that
define recruitment attractiveness among potential applicants. According to Madia
(2011), the attributes include:
ACTIVITY 4.4
EXERCISE 4.2
Essay Question
Explain how an organisation can engage in social media recruitment
successfully.
Madia, S. A. (2011). Best practices for using social media as a recruitment strategy.
Strategic HR Review, 10 (6), 19ă24.
INTRODUCTION
We are often exposed to news on deviance, misuse of power, and sexual
harassment in the workplace. Therefore, the selection of suitable candidates is very
important to ensure the success of an organisation.
Selection is an ongoing process and involves a few steps, which are as follows:
team/supervisor interview;
recruitment result.
From the steps above, we can see that an organisation uses various ways to
obtain information about applicants. Among the methods used are application
form, interview, employment test, medical check-up, and background check on
applicants.
ACTIVITY 5.1
In your opinion, why are some applicants exempted from certain steps
in the selection process while other applicants have to go through the
whole selection process? Discuss in myINSPIRE.
Reliability means the level where an interview, test, and other selection
procedures show consistent data every time, even when using other
methods of measurement.
Reliability, thus, means how far a selection tool is able to give consistent data.
Tables 5.1 and 5.2 are examples of stable and consistent reliabilities.
A. High Reliability
Ahmad 90 93
Chin 65 62
Rama 110 105
Kuntum 80 78
B. Low Reliability
Ahmad 90 72
Chin 65 88
Rama 110 67
Kuntum 80 111
A. High Reliability
Ahmad 9 8 8
Chin 5 6 5
Rama 4 5 5
Kuntum 8 8 8
B. Low Reliability
Ahmad 9 5 6
Chin 5 9 4
Rama 4 2 7
Kuntum 8 4 2
criterion-related validity
content validity
construct validity
Concurrent Validity
Concurrent validity means how far a test score or other forecast
information matches the criteria data obtained from existing employees.
For example, a supervisor carries out a work evaluation on a few clerks
by giving them aptitude tests on clerical matters. Test scores are
compared to the supervisorÊs evaluation to see whether or not a
relationship exists between the test scores and the supervisorÊs
evaluation.
Predictive Validity
Predictive validity means how far the score of a test done by an applicant
before he or she was hired matches the data obtained from him or her
after he or she was hired, after a certain period.
ACTIVITY 5.2
Refer to Table 5.2. How does Table 5.2 relate the three validity concepts?
Post your answer to myINSPIRE.
test candidates for the purpose of identifying those who are most qualified for
a particular job;
There are a few methods which are trusted and valid in order to obtain information
about candidates. Figure 5.2 shows a few techniques of obtaining information in
the selection process and its effectiveness.
The following are some types of information sources which are usually used by an
organisation to obtain information about a job candidate:
(f) Graphology
Graphology refers to a system that analyses handwriting. Through a
candidateÊs handwriting, a graphologist makes an assumption of the nature
of his or her intelligence, energy level, organisational abilities, and emotions.
ACTIVITY 5.3
EXERCISE 5.1
2. The more related the contents of a selection tool with the actual
work sample, the higher the value of content validity.
Aptitude Test
An aptitude test measures an individualÊs capacity or ability to learn and
master new skills.
Achievement Test
An achievement test measures what an individual knows or is able to do in a
time frame.
There are five dimensions that reflect an individualÊs personality, which are:
ACTIVITY 5.4
ACTIVITY 5.5
Recruiters believe and are confident that it enables them to judge the
candidates.
types of interview;
Non-directive Interview
During a non-directive interview, an applicant has the freedom to give
his or her opinion. The interviewer tries not to influence any opinions
offered by the candidate. Usually, the interviewer will ask general
questions such as the candidateÊs experience in his or her previous
company.
Structured Interview
This type of interview contains a set of standard questions together
with pre-determined answers. The questions are based on a job analysis
that has been carried out beforehand. Information from a structured
interview can reduce unfairness from the legal perspective.
Situational Interview
Through this interview, the applicant is given a situation or an event to
which he or she needs to respond. The feedback given will be evaluated
based on standardised answers. This type of interview is a part of
structured interview.
Behavioural Interview
Through this interview, applicants will be asked their response in dealing
with specific circumstances. For example, from an applicantÊs previous
experience, what were the actions taken against employees who
practised truancy. This approach is based on the critical incident method
of job analysis.
Panel Interview
Through panel interview, a group of interviewers will question and
observe the candidate. The number of interviewers is between three and
five people. The interviewers will compare their observations and reach
a consensus concerning the candidate. This method has a high level of
validity.
Computer Interview
Through this interview, candidates are required to answer multiple
choice questions (75 to 125 questions) that are related to the job. The
answers given will be compared to an answer profile developed from
previous candidatesÊ answers. A computer interview is usually used as
an additional interview for a common or conventional interview.
Be a Good Listener
Try to understand what the candidate means.
Standardise Questions
Ask the same questions to all candidates who are interviewed for the
same position. This can increase reliability and prevent discrimination.
ACTIVITY 5.6
EXERCISE 5.2
1. Even though it has good potential, a physical ability test can have a
negative effect on women and people with disabilities.
decision strategy
final decision
What is the starting fee for the individual who is offered a particular job?
Is selection based on the candidateÊs suitability for the job or does it take
into account the candidateÊs career opportunities in the organisation?
How far would those who are less qualified be given consideration?
Will an individual who is more than qualified for the post be considered
and offered the job?
Clinical Approach
Those involved in the selection process will go through all data on the
candidates again. A decision will be made based on the interviewersÊ
understanding of a particular job, and their observations of the
individuals who are successful in that particular job. The clinical approach
is subjective and often practised in most organisations.
Statistical Approach
This is a more objective approach and is better than the clinical approach.
The data obtained about the candidates will be considered in detail and
the forecaster will be identified statistically.
There are a few models in the statistical approach. These are as follows:
Compensatory Model
The high score that a candidate obtains in one part of a test can assist a
lower score obtained in another part.
ACTIVITY 5.7
EXERCISE 5.3
Essay Question
What is meant by the term „criterion‰ as it is used in selecting personnel?
List some examples of criteria used for jobs that you know of.
The selection process is supposed to give reliable and valid information about
an applicant. An interview is one of the methods used to obtain information
about an applicant.
A job test is more objective than an interview and is able to give a wider
behaviour sample.
Each type of test has a specific purpose, such as the work knowledge and work
sample tests which are designed to determine whether a person requires
training.
Mondy, R. W., Noe, R. M., & Premeaux, S. R. (1999). Human resource management
(7th ed.). Prentice Hall.
INTRODUCTION
All employees in an organisation need continuous training to remain qualified or
equip themselves with new work practices. We will begin this topic by discussing
the definition and scope of training and development and the importance of
training and development to an organisation. This topic also discusses how to
carry out staff training and development programmes. We will end the discussion
on staff training and development by outlining the training programmes that can
be carried out by an organisation.
Whilst training is defined as the process of teaching new and current employees
the basic skills they need to perform their jobs, development involves lessons
to advance an employeeÊs skills for present and future responsibilities. Training
and development is a continuous effort carried out by the management of
an organisation to improve employeesÊ skills and the performance of the
organisation. Examples of employee development programmes include camps or
retreats for team-building or morale-building activities.
SELF-CHECK 6.1
ACTIVITY 6.1
In your opinion, why is a training and development programme
important to you as a new employee? Discuss with your coursemates.
ACTIVITY 6.2
Draw a mind map that shows the advantages of training and
development. Share your mind map in the myINSPIRE forum.
EXERCISE 6.1
Training and development should not be conducted on the basis that they appear
to be a good thing or without considering whether the employees need them.
Essentially, it is not wise to secure a training and development programme for an
employee who does not need it as this can cause dissatisfaction in the employee.
A participant who is not happy might cause trouble during the training
programme. For example, the participant might refuse to cooperate, making other
participants lose focus. This will result in the overall ineffectiveness of the training
programme.
ACTIVITY 6.3
Most of the steps in the training needs analysis are ordinary steps. However,
it is one of the most effective problem-solving methods. It should be understood
that not all problems can be resolved through training and development
programmes. For example, an employee facing a personal problem should be
referred to the counselling division and not to the training and development team.
ACTIVITY 6.4
EXERCISE 6.2
Training programmes may be carried out during or outside working hours. The
methods used are as follows:
If it is well conducted, employees can perform their tasks well. The success
of the method depends on the trainers. Many organisations allocate these
duties to senior employees with experience. It is important to choose the
right trainer. He or she should be able and willing to train new employees.
Therefore, he or she should be an individual who is skilled in the field and
able to explain how to do the work. Most of us could be skilled in our work
but lack communication skills and the ability to foster interpersonal
relationships to teach others. A trainer should be a good teacher with
patience and able to help other people. To ensure the success of this
technique, a trainer should be given reasonable incentives and benefits for
his or her commitment. Trainers should undergo „training technique‰
programmes before training other people. Finally, a trainer should at least be
exposed to some training techniques as follows:
Determining the place of training is also important. Not all training activities
can be done on the job. Sometimes, training activities involve risks which
can be harmful to employees or require special high-technology bulky
equipment. Therefore, organisations must provide special training areas.
Similarly, it is wise to establish a training centre to house training equipment
when high-attendance training programmes are regularly conducted. An
example of an organisation that has an allocation for training centres are
banks and MAS.
SELF-CHECK 6.2
Advantages Disadvantages
However, training outside working hours may be costly. The cost incurred
for this training method is very high. The effectiveness of this training
depends on who is sent for the training and the efficiency of the organisation
in conducting these training programmes.
EXERCISE 6.3
(d) Trainees
The satisfaction of trainees who receive the training differs from one person
to another. It depends on the level of his or her previous training. The
number of trainees has to be considered. Some methods are suitable for
individual training and some for teamwork training.
There are also delayed benefits. Promotions are given to those who have
successfully gone through several levels of courses, but remember that
empty promises should be kept to a minimum. If a training is not
intended to lead to a promotion, employees should not be given the
impression that it will.
Feedback
Trainers should provide feedback to trainees as to whether they have
learned what they should know. The more feedback they receive, the
better they can improve their performance.
Last but not least, before a training programme is conducted, proper planning
should be done. The facilities should be booked, the trainer chosen, the training
schedule given, and the training materials printed for distribution later. Matters
that usually seem trivial, like room temperature and food, must be given due
attention because these could interrupt the running of the training. Therefore, a
checklist of items should be prepared.
ACTIVITY 6.5
In your opinion, what are the principles that should be taken into account
in conducting a learning programme for adults? Search for an online
article on adult learning principles for further knowledge on this issue.
Discuss your findings with your coursemates.
Determine an Objective
The trainer should inform the trainees about the training objective so
that they know the reason and expectations for attending the training
programme. It is also an important point of reference when measuring
the outcome of the training programme.
Welcome Everyone
Conducting a synchronous online session may be tiring. When the
number of trainees is large, the trainer must make sure that everyone
feels welcome. A trainer must not focus on a certain group of trainees
only. He or she must address other trainees, too, by calling random
names and acknowledging them during the session.
ACTIVITY 6.6
1. ____________________ 3. ____________________
2. ____________________ 4. ____________________
(a) What are the Reactions of Trainees Towards the Training Programme?
The trainer will ask for feedback from trainees about their feelings towards
the training module. Questionnaires are distributed to seek opinions about
the delivery of the trainer, the atmosphere of the venue, and the effectiveness
of the materials used. To obtain fair feedback, trainees are required to answer
questions that need open feedback but not required to give their names. Most
of the time, useful feedback and criticism will be received.
(c) What Behavioural Differences Can Be Seen in Trainees After the Training?
Department managers should know the types of training that trainees have
received. The manager must work closely with the trainer to make sure what
is learned is practised at work. It is important to note behavioural or skill
differences after the training programme.
EXERCISE 6.4
Essay Questions
INTRODUCTION
The previous topics focused more on how an organisation can attract and develop
productive, flexible, and motivated human resources. This topic will focus on the
aspects of maintaining human resource productivity in an organisation. Although,
initially, all supervisors or managers will observe their employeesÊ work
behaviour, and evaluate their performance at the end of the year, they must also
focus on the non-cost value increase to the organisation. The unconcerned attitude
of supervisors and managers is a challenge to the human resource department,
which needs to develop supervisors and managers who are able to motivate
employees to improve their performance. Supervisors and employeesÊ acceptance
of and commitment to performance improvement are critical in order to increase
productivity in the organisation. Thus, performance evaluation is a complicated
activity but it is important to an organisationÊs competitiveness in the market.
Bernardin and Russell (1998) more specifically stated that performance is „a record
of outcomes that result in the specification of functions or work activities over a
certain period of time‰. Meanwhile, Mondy et al. (1999) stated that performance
evaluation is a formal system that examines and evaluates employee performance
periodically, that it is also a process that measures employee performance whereby
employee performance is the degree to which an employee completes all the work
requirements given. Cardy and Dobbins (1994) defined performance evaluation
as a process of identifying, observing, measuring, and developing employee
performance in an organisation. Therefore, performance evaluation not only
functions as a tool to measure performance but also as a tool to develop employees.
Many terms can be used to refer to performance evaluation. Some of the more often
used are performance rating, performance study, and merit rating.
SELF-CHECK 7.1
(a) Development
Performance evaluation determines which employees need training. This
will enhance employee-supervisor relationship and encourage the supervisor
to contribute to the reinforcement process of employee behaviour.
(b) Motivation
Performance evaluation encourages attempts, develops responsibilities, and
propels efforts towards improving performance.
(d) Communication
Performance evaluation acts as a basis for discussion between the supervisor
and employees regarding work matters through daily interaction.
Apart from the general and specific purposes listed above, performance evaluation
can be used for administrative and employee development purposes (Bohlander
et al., 2009). From the administrative aspect, performance evaluation is an input
that can be used in human resource management activities while the development
aspect focuses on feedback of employeesÊ strengths and weaknesses, and stresses
on performance improvement. Among the uses of performance evaluation for
administrative and development purposes are as follows:
salary administration
promotion
performance feedback
ACTIVITY 7.1
The supervisor or manager does not have the skills to evaluate employee
performance.
Employees feel that the organisation does not allocate sufficient resources for
performance rewards.
These factors can influence the effectiveness of the performance evaluation process
and create a gap in the relationship between supervisor and staff. Performance
evaluation activities are often annual activities and focus more on employeesÊ
annual salary movement. The disagreement that exists and the misunderstanding
of performance evaluation have caused the performance evaluation process
to fail. Therefore, support from the top management is important in order for
performance evaluation to succeed so that the organisation will be able to compete
in the market.
SELF-CHECK 7.2
Can you recall the factors that lead to the failure of an employeeÊs
performance evaluation?
EXERCISE 7.1
Strategic Relevance
The standards that are developed must be related to the organisationÊs
strategic objectives. Indirectly, the organisationÊs strategic objectives
need to be translated into performance standards. For example, 95% of
customer complaints must be solved on the same day. With this in mind,
employees who are in contact with the customers must take into account
this strategic objective when developing their standards.
No Criteria Contamination
Criteria contamination happens when factors out of employeesÊ control
influence their performance. For example, a typist at an organisation
needs a computer to type and produce quality output. If the organisation
only has a typewriter, then the quality produced will not be as good as
the output quality of a computer. Therefore, the computer becomes a
factor that contaminates the typistÊs performance.
Reliability
Reliability refers to the consistency of the standards that are developed.
Consistency means how far an employee is able to maintain a level
of performance in a particular timeline. For example, the evaluation
comparison done by two managers on an employee, for a promotion, will
determine the reliability of the employeeÊs performance.
No criterion deficiency
The development of performance standards must take into account all
the responsibilities of the employee. If the standard that is developed
only takes one aspect of the job, then criterion deficiency occurs. For
example, a salespersonÊs performance evaluation is only measured
through his or her sales volume without taking into account another
important criterion, i.e., customer satisfaction.
ACTIVITY 7.2
EXERCISE 7.2
(b) Self-evaluation
If an employee understands the objectives that must be achieved and is
involved in the development of performance standards, then he or she is
qualified to evaluate himself or herself. This is because the employee knows
what has to be done and how to carry out the task effectively. Moreover, an
employeeÊs involvement in the performance evaluation process is critical so
that an increase in productivity is possible.
(c) Subordinates
The most suitable people to evaluate a manager are his or her subordinates.
This method is effective because the subordinates are the best source to
observe the effectiveness of the manager. Moreover, the subordinates are
always in contact with the manager. This type of evaluation is more for the
managerÊs self-development so that he or she is able to rectify his/her
weaknesses. The negative aspect of this evaluation is that the subordinate
may give a good evaluation of his or her manager if they have a good
working relationship and evaluate the manager poorly if they are at odds
with each other.
(d) Peers
Peers can be an effective evaluation approach as peers often interact and are
able to identify their colleaguesÊ strengths and weaknesses. Peer evaluation
can also give an accurate and valid input.
SELF-CHECK 7.3
EXERCISE 7.3
Visit:
http://performance-
appraisals.org/Bacalsappraisalarticles/articles/stupman.htm for information on
the 10 mistakes managers make in evaluating employees.
(b) Essay
This is the easiest method because supervisors only have to write statements
depicting employeesÊ performance. Supervisors will talk about the strengths
and weaknesses of employeesÊ behaviour and give recommendations to
improve on the weaknesses. Even though this method is easy, it takes a long
time, and is too subjective as the supervisor needs to illustrate employeesÊ
overall yearly performance.
ACTIVITY 7.3
During the evaluation period, the supervisor will use the records together
with other information to evaluate employeesÊ performance. The advantage
of this method is that it illustrates the employeesÊ overall real performance
whereas the disadvantage is that the supervisor has to observe the critical
work behaviour of all of his or her employees. If there are many employees
in the supervisorÊs department, the observation will require a long time.
Examples of the critical incident method which are positive and negative in
nature are as follows:
Supervisors can also weigh each work behaviour demonstrated. Then, each
mark is totalled. An example of the weighted checklist is shown in Figure 7.5.
Figure 7.8 shows the performance evaluation cycle based on the MBO
method. After the setting of objectives is agreed upon by the supervisor and
employee, duties are carried out and the supervisor needs to observe the
employeeÊs work behaviour. An interim study has to be carried out, usually
in the middle of the year, to make sure the objectives formed are suitable and
achievable.
If the objectives are not clear and difficult to achieve, the supervisor and
employee will formulate other objectives which are more realistic and
achievable. At the end of the year, performance will be evaluated based on
the set objectives. After that, the organisationÊs performance will be reviewed
based on the overall employee performance. If the performance shows no
improvement, then the organisationÊs goals need to be studied and changed
in order to be more realistic.
EXERCISE 7.4
In order to ensure that managers or supervisors do not make these mistakes, they
have to be given training on how to evaluate employees effectively and fairly,
and to focus only on employeesÊ work performance. This training is aimed at
increasing the appraiserÊs skills in observing and giving feedback to employees.
Employees also need to provide support by giving information which is needed
by the appraiser in order to ensure that the evaluation is done justly.
SELF-CHECK 7.4
ACTIVITY 7.4
EXERCISE 7.5
An effective interview has to be planned and structured well in order for the
supervisor and employees to view the interview as a problem-solving session and
not as a fault-finding session (Mondy et al., 1999). A supervisor has to ensure that
these three elements are considered when planning a performance interview, i.e.,
the discussion must:
help employees set work objectives and career development plan; and
give suggestions and help to achieve objectives which have been set as well as
gain support from top management.
Apart from that, Stone (1998) stated that an effective performance interview needs
to consider three factors. A supervisor needs to:
The supervisor must realise that there are differences among individuals. The
supervisor must know how to criticise an employeeÊs weakness and praise when
necessary so that there is no dissatisfaction between the supervisor and employee.
This way, a fair and transparent performance evaluation can be presented to the
employee who is being evaluated. Performance improvement can then occur after
the interview session.
The performance evaluation process does not end after the performance interview
session. In fact, a supervisor needs to ensure that all the alternatives which were
proposed are carried out effectively and monitor employeesÊ performance from
time to time by giving feedback.
EXERCISE 7.6
2. An appraiser will give an average rating for all dimensions that are
being evaluated so that all employees will not be dissatisfied. By
this, the appraiser has committed the mistake of ________________.
A. attribution
B. leniency error
C. recency error
D. central tendency
Essay Questions
This will strengthen the position of and ease human resource management,
and help to achieve organisational objectives and goals.
Mondy, R. W., Noe, R. M., & Premeaux, S. R. (1999). Human resource management
(7th ed.). Prentice Hall.
Stone, R. J. (1998). Human resource management (3rd ed.). John Wiley & Sons.
INTRODUCTION
Employee compensation is one of the most important functions in human resource
management. Employees offer their labour and competencies in exchange for
appropriate compensation. However, administering compensation is challenging.
Organisations must make sure that the compensation offered is appropriate
for the job and at the same time, can fulfil the psychological and actual needs
of the employees. Although many people think of money when referring to
compensation, it has three important components, which are compensation,
incentives, and benefits. We shall discuss each component in this topic.
Direct monetary rewards are in the form of cash, such as wages, salary,
commission, and bonus, whereas indirect monetary rewards are in the form of
benefits and others.
Non-monetary rewards from the work aspects are interesting jobs, challenging
job responsibilities, acknowledgement, and career development. Non-monetary
rewards from the work environment aspects are good policies and practices,
competent supervisors, congenial colleagues, and a safe and healthy work
environment.
strengthen the work values and culture desired by the organisation; and
(a) Organisation
(b) Employee
corporate mission
business strategies
ACTIVITY 8.1
State your views on whether you agree or disagree with the following
statements and give a valid reason for your answers.
EXERCISE 8.1
For example, the Minimum Wages Order 2020 was gazetted on 10 January
2020 and took effect on 1 February 2020. Within the 16 city councils and
40 municipal councils in Malaysia as stated in the Schedule of 2020 Order,
the minimum monthly wage is set at RM1,200. In other areas outside the
aforementioned councils, the minimum monthly wage is set at RM1,100.
differences between local wage rate and city and suburban wage rate;
different wage rates for work from the same work groups;
ACTIVITY 8.2
How do legal factors influence the wage rate in our country? Discuss.
ACTIVITY 8.3
EXERCISE 8.2
ACTIVITY 8.4
8.6 INCENTIVE
An incentive programme is also known as a variable pay plan. Incentive payment
to employees is often seen as an additional dimension to the salary structure or
compensation. Let us look at the current situation whereby a salary increase in a
salary scheme often cannot compete with increase in living costs. Without an
interesting incentive plan, what will happen to employees and their overall
organisational performance? We will now explore the incentive plans offered by
organisations.
Incentives are variable costs that can be related to result achievement, which
encourages increase in output.
EXERCISE 8.3
Employees can clearly notice the relationship between the incentive payment
they receive with their work performance;
It emphasises that incentives are received through employeesÊ efforts and not
due to rewards which all employees are eligible to enjoy;
Differential Piece-rate
Employees are given a higher incentive payment rate for their
overall work if their production surpasses the standard production
level which has been set by the management compared to the rate
paid to them when they do not surpass the standard level.
(iii) Bonus
Bonus is one of the payment incentives given to employees as an
addition to their basic salary. A bonus can be awarded based on cost
saving, increase in performance quality or criteria identified by the
organisation. In addition, organisations can utilise „spot bonus‰, which
is bonus given on the spot to acknowledge employeesÊ efforts or
contributions which are indirectly related to the standard performance
set. For example, an employee is given a spot bonus for working extra
hours to entertain a lot of customers.
Set the maximum level of total incentive that can be given. For
example, the total incentive cannot exceed 10% of the basic salary.
Scanlon Plan
This plan combines employee and management efforts to further
reduce production cost. The philosophy behind this plan is that
employees need to give opinions and suggestions to increase
productivity, and incentives will be given to the employees as a
reward for their efforts. Monetary incentives offered under this
plan are based on a formula, which is derived from the increase of
employee productivity and reduced labour cost.
Rucker Plan
The Rucker plan is usually utilised for employees in the operations
section. Incentives are paid based on the relationship between the
total wages per hour obtained by employees with the production
value they produce. For example, an employee will receive a
1% bonus from his or her salary for each 1% increase in the
production value that he or she achieves.
Improshare
Improshare is the short form for „improved productivity through
sharing‰, which refers to increase in productivity through sharing.
Bonus is paid based on overall productivity achieved by work
teams, which is the number of products produced by work teams
within a certain period.
Earning-at-risk
Earning-at-risk is an incentive plan that places risk on part of an
employeeÊs basic salary. Nevertheless, employees are given the
opportunity to obtain a higher pay if they are able to achieve the
goals set by management. The purpose of this programme is to
make employees realise that they are facing a risk due to their poor
performance, while at the same time expecting a generous reward.
SELF-CHECK 8.1
ACTIVITY 8.5
EXERCISE 8.4
8.7 BENEFITS
In general, most organisations provide various benefits to their employees as an
addition to their salary or as wages paid to the employees. An employee benefit
programme is a form of indirect reward with the purpose of improving work
quality and employeesÊ personal lifestyle. By providing benefits, the management
hopes that employees will be more productive and loyal to the organisation.
print distribution
employee handbook
The human resource management can use this opportunity to answer any
uncertainty about benefit programmes, which arises during the orientation
programme, training programme, and others.
ACTIVITY 8.6
EXERCISE 8.5
Public Holiday
According to Section 60D(1) of the Employment Act 1955,
employees are eligible for 10 days of public holiday in a year and
will still be paid the basic salary rate. The 10 days allocated need to
include the following 4 days:
Independence Day
Labour Day
Annual Leave
Under Section 60E of the Employment Act 1955, an employee is
eligible for a minimum of annual leave according to his or her
service period as shown in Table 8.1.
Sick Leave
Under Section 60F of the Employment Act 1955, an employee is
eligible for a minimum of medical leave according to his or her
service period as shown in Table 8.2.
Contribution based on
EmployeeÊs Salary
Employer Worker
(ii) Healthcare
This benefit package has gained serious attention from employers
since healthcare cost is becoming very high. In addition, employees
nowadays emphasise more on healthcare compared to employees
before. The benefit package usually consists of medical expenses,
surgery, and oral expenses.
SELF-CHECK 8.2
EXERCISE 8.6
ACTIVITY 8.7
EXERCISE 8.7
Essay Questions
This will then increase employee performance and loyalty so that they will
remain in the company for a long time.
The rewards offered have to ensure that both organisations and employees
benefit from them.
A human resource manager especially needs to ensure that both incentives and
benefits are designed and implemented well in order to achieve both rewardsÊ
original goals.
Mondy, R. W., Noe, R. M., & Premeaux, S. R. (1999). Human resource management
(7th ed.). Prentice Hall.
Stone, R. J. (1998). Human resource management (3rd ed.). John Wiley & Sons.
INTRODUCTION
Maintaining employee productivity at work requires organisations to manage
their relationship with employees. Managing employee relations is more critical
these days because of external pressures such as the introduction of advanced
technologies, new management thinking, pandemic outbreak, and economic
crises. Some organisations have started to reduce the number of head counts
through downsizing, restructuring, merger and acquisition, retrenchment, and
lay-offs. Although organisations may offer a termination compensation, there are
employees who have been terminated without valid reasons and are not receiving
any compensation.
In this topic, we will discuss three main issues in employee relations. The issues
are employee rights, discipline, and participation in a trade union. All these issues
relate to each other in increasing the quality of relationship between an employer
and an employee.
From the aspect of the management or employer, they have the right to handle a
business and maintain the profits gained. Shareholders and the company owner
usually control their company by giving out power to the company managers.
recruiting employees
promotion
placement of employees
discipline
terminating employees
The rights that are directly related to the employees are usually aligned with the
employersÊ rights. The employerÊs rights are usually influenced by the rights of the
important teams with stakes in decision making at the workplace. For example, an
employer has the right to decide on the employeesÊ salary scale, but with the
presence of the trade union, the employer must pay according to what have been
agreed in the contract between the employer and the trade union.
SELF-CHECK 9.1
Effective discipline management will not only increase job performance by the
employees but also reduce the number of disciplinary problems in the future.
Nonetheless, any disciplinary action cannot be simply carried out. For employees
who are undergoing training or learning how to do the work required, it is not
reasonable to suggest them for disciplinary action. Disciplinary action also cannot
be carried out on problems which are out of employeesÊ control like punishing
them for not doing their work because of lack of raw materials or shortage of
electricity. In brief, disciplinary action can only be taken if a manager can prove
that a problem has been caused by an employee.
An employee who has personal problems which affect the productivity and
focus of his work, e.g., family problem, alcohol abuse, and drug addiction.
An employee who keeps breaking the rules and regulations of the company
and disobeying the managerÊs instructions.
The above classification makes it easier for the employer to take suitable actions or
list appropriate training programmes that can help the employees to improve their
work performance.
Due to unknown causes with problematic employees, many take the easy route of
sacking those deemed problematic.
In reality, many factors can cause misconduct among employees, such as the
attitude of the employee or the interaction between the two parties. Miner (in
Ivancevich, 2006) devised a method to analyse the deficient behaviours of
employees by way of producing a checklist of suspected causes of the problems.
The causes include:
emotional problems;
motivational problems;
physical problems;
family problems;
This Act is the base in maintaining the efficiency of the disciplinary system and is
used to control the actions of employees in accordance with company regulations.
Failure of the employer to penalise employees will result in frequent misconduct
in the future. It would paint an image of employeesÊ misdemeanours as being
tolerable. Among the causes identified as reasons for supervisors not punishing
employeesÊ misconduct are:
supervisors believing that their actions will not have the support of the upper
management;
the regulations are implemented and the employees are reminded of them; and
ACTIVITY 9.1
EXERCISE 9.1
1. If employees are found to have not been doing their work due to
insufficient funds, disciplinary action can be taken against them.
Instant
Immediate disciplinary action is taken as soon as an investigation is
concluded. As a result, the employees will immediately understand the
correlation between the effects of their offences through the penalties
meted out upon them.
Consistent
Each employee is punished if they commit an offence, and the same
type of punishment is applied to the same type of offences for all the
employees. Implementing a consistent disciplinary action is not easy
because it involves personal issues. It cannot be denied that supervisors
can fail to notice offences made by favoured employees.
Non-Personal Manner
Disciplinary actions should not be taken in a personal manner but more
in the form of correcting certain inappropriate behaviour of employees.
This can be done through corrective discipline. Under this approach,
supervisors will address employee misconduct in a mature manner by
providing a conducive environment for employees to change their ways.
The emphasis should be on corrective discipline and not termination.
Verbal Warning
For first-time offenders, verbal warnings are given by their supervisors.
The supervisor will warn them of a more severe punishment if the
offence is repeated.
Formal Warning
Employees who repeat an offence will receive formal warning through a
letter of warning. The offence will be documented in their file and they
will once more be told that stricter punishment will be meted out if they
repeat the offence.
Termination
This is the last resort if the employees still do not follow the instructions
given.
According to Gomez-Mejia et al. (2013) and Mathis and Jackson (2000), there
are four steps in this approach.
Counselling
Counselling can be used as part of the disciplinary process. It allows
the manager or supervisor to identify employeesÊ problems and also
solutions to the problems. The objective of counselling is to enable
employees to understand the rules and regulations of the company or
organisation. In the first meeting, both parties are expected to discuss the
problems at hand and to find the appropriate solution.
Written Documentation
If the employees fail to improve their performance or repeat the same
offence, both parties are expected to meet once more and discuss the
reasons why the solution did not materialise. Another solution is
expected to be found at this stage and a contract is made whereby the
causes and solutions are documented with the concurrence of both
parties.
Final Warning
If employees still fail to adhere to the written agreement as previously
agreed upon, they will be called and given a final warning. The manager
or supervisor will stress the importance of improving the quality of work
or addressing the mistakes made. The implication of failure to comply
with the warning is also stressed upon. Certain organisations offer a day
off with pay to give the employee time to ponder whether to continue
working in the organisation or otherwise.
Termination
Failure to improve oneÊs work performance or a repetition of the same
offence will result in the termination of the employee.
First, employees might bring that label upon themselves to the point of it
becoming a self-fulfilling prophecy. They will become demotivated due to
the supervisorÊs lack of efficacy. Second, the label is tagged to the employee
and not to the attitude when in reality, it is the attitude that needs to be
changed.
ACTIVITY 9.2
EXERCISE 9.2
SELF-CHECK 9.2
Why do employees join a trade union? The common reason is because they realise
that if they fight for their right to better work conditions individually, they might
fail. In contrast, if they joined a trade union and acted as a group, the employer
might consider their demands. Moreover, a trade union will usually take steps to
protect its members. According to Bohlander et al. (2001), among the reasons why
employees are interested in joining a trade union are the following:
to increase status;
to socialise;
ACTIVITY 9.3
From the list of reasons for joining a trade union, choose three which
would be the most important for you if you were to become a trade union
member. Discuss with your coursemates.
Employees in the public sector can become a member only of a trade union that
is formed by employees within the same occupation, department or ministry.
Management-level staff in public service who are interested in joining trade unions
must obtain permission from the Government Chief Secretary. Police, army and
prison officers are not allowed to join any trade union.
SELF-CHECK 9.3
Why are police, army and prison officers not allowed to become
members of a trade union?
allowance for members and their family due to death, ailment, accident, and
unemployment;
Some trade unions have members who are limited to one district only.
For example, employees in Sabah and Sarawak are not allowed to join
unions in Peninsular Malaysia. In addition, there are trade unions that
only enrol members from certain areas such as the Perak Textile and
Garment Industry Trade Union, which limits the intake of members to
employees from the Perak state only (Maimunah, 2000).
There were 253 trade unions in the public sector in September 2017 and this
figure includes several of MalaysiaÊs biggest unions such as the Malayan
Union for Teaching Professionals, Malayan Nursing Union, and Malayan
Technical Service Union as well as smaller unions such as the Dentistry
Technician Union and the Pulau Pinang Port Senior Commissioner Officers
Union. Despite having better employment relationship nowadays, the
Department of Trade Union Affairs Malaysia reported an increase in the
number of union members from 889,718 in 2012 to 930,790 in August 2019.
ACTIVITY 9.4
EXERCISE 9.3
1. One of the reasons why employees join trade unions is that they
want to increase their status.
5. Trade union funds can be used for reports and news printing,
compensation to members during trade disputes, and office-
related expenses.
ACTIVITY 9.5
In your opinion, who determines the wages and benefits for each
employee or work group in an organisation? Share and discuss your
response with your coursemates in myINSPIRE.
For employees, collective bargaining can be seen as a good method for them to
increase their wages and benefits as well as to reduce their total working hours.
Even though the main objective of collective bargaining is to agree upon the
accepted work contract by both employees and employers, trade unions have
two other objectives. The first objective is to protect employeesÊ rights through
allocation development, which will monitor the use of power or any actions that
are unfair towards employees. The second objective is to enable employees to be
involved in decision making on matters that involve them.
The bargaining process can only be practised in the private sector because wages
and all conditions in the public sector are decided upon by the employer. Besides
that, it is important to remember that the bargaining process cannot be carried out
if the employer does not recognise the trade union formed.
Only when recognition is received can the employees use the union to voice out
dissatisfaction or solve disputes. In other words, this can be seen as a policy
for trade unions to improve any employee service terms with employers. For
employees who are not members of a trade union, they will not be discriminated
against because the trade union not only negotiates for its members but also for all
employees in the company.
In many cases, the bargaining process is carried out between employers and trade
unions. However, for employers who have their own associations, such as banks,
the bargaining process is carried out between the employersÊ association and the
trade union. It is to ensure that all benefits are standardised for all employees in
the industry and also to reduce the number of employees who like to job hop from
one company to another. All bargaining processes carried out are controlled by the
Industrial Relations Act 1967.
The bargaining process begins when one of the parties, whether the employer or
the trade union, recommends a set of proposals for mutual agreement and requests
for negotiations to begin. The response on whether the invitation to negotiate is
accepted or not has to be sent within 14 days. If the employer refuses to begin the
process, a trade dispute will occur. However, it is important to remember that
employers who have recognised the establishment of the trade union have to be
involved in this process.
The number of meetings that need to be held depends on the relationship between
them and the number of disagreements. Normally, in their first meeting, both
parties will discuss issues pertaining to the disagreements. If there are any matters
left out and not discussed, they will be tabled in the next meeting. If an agreement
is still not achieved, the matter will be reported to the Industrial Relations
Department and if necessary, they will be trialled by the Industrial Court.
If an agreement is reached between the employer and trade union, the next process
is to bind the mutual agreement in a valid contract. It needs to be done in writing
and signed by both parties involved.
The validity date of the agreement must also be stated and normally it does not
exceed 3 years. After the period ends, a new bargaining process has to be carried
out. Meanwhile, all agreements reached have to be sent to the Industrial Court
within a month from the date they are signed. The court will then examine the
agreement made to ensure that it follows the legal requirements before accepting
it as a valid contract.
ACTIVITY 9.6
(a) Picket/Protest
According to Maimunah (2000), employees who are members of trade unions
and have trade disputes with their employers can hold a picket in or near
their workplace in the condition that:
Employees protest for the purpose of giving publicity about the dispute to
employees who are not directly involved and to the public. By protesting
peacefully, they hope to convince their employers to approve their claims.
Picketing is a great tactic if employers are conscious of the organisationÊs
public image.
(b) Strikes
In Malaysia, strikes are only allowed for employees from registered trade
unions if trade disputes remain unsolved. Political strikes and sympathy
strikes are prohibited. Before employees go on a strike, those involved in the
dispute must first have a secret ballot to determine the percentage of those
who agree and disagree to the strike.
A strike is only allowed if the voting result shows that two-thirds of the
employees agree to it. The voting results must be sent to the Director-General
of Trade Unions (DGTU) who has the power to order the trade union not to
have a strike if it is found that certain necessary procedures are not followed.
A strike is only valid to be held after 7 days, which is after the calm period.
During the calm period, validity confirmation can be done to enable the
parties involved to change their minds and give an opportunity for the
government to intervene.
Apart from that, it must be reminded that the result of the ballot is only valid
for 90 days. Therefore, a strike must be organised within the 90-day period
from the voting date and if not, voting must be done again.
the trade dispute has been referred to the Industrial Court for arbitration.
The Ministry of Human Resources has the power to prevent a strike and
enforce the use of other procedures in solving disputes.
(c) Lockout
Lockout is a way for employers to force employees to accept their demands.
Through this method, employers will not allow employees to work until the
dispute between them is solved. It includes taking actions such as closing
the workplace, stopping work, and refusing to give wages to any employee
until they agree to the work conditions imposed. Similar to a strike, the
requirements for a lockout are also subject to the law.
ACTIVITY 9.7
(b) Conciliation
If the process of solving the argument through direct negotiation fails, the
employer and trade union can report the matter to the DGTU. He will
suggest that they hold a meeting of peace to solve the argument. The
Industrial Relations Department will help them to solve the argument
(Maimunah, 2000).
(c) Mediation
This method is similar to arbitration but the mediator appointed is not from
the government or Industrial Relations Department. The mediator is an
outsider who is appointed and agreed upon by both sides.
(d) Arbitration
Arbitration is used after the previous three methods fail. Similar to the
mediation method, the arbitration method uses a third party, which is the
Industrial Court. Under the Industrial Relations Act 1967, the Industrial
Court is empowered to solve trade disputes.
EXERCISE 9.4
Essay Questions
All employees must know their rights so that they are aware of what their
organisation and its management should not do.
Arbitration Mediation
Collective bargaining Negotiation
Conciliation Picket
Direct negotiation Positive disciplinary approach
Hot stove approach Progressive disciplinary approach
Industrial action Strike
Incorrect disciplinary approach Trade union
Lock-out
Carrell, M. R., Elbert, N. F., & Hatfield, R. D. (1995). Human resource management:
Global strategies for managing a diverse workforce. Prentice Hall.
Mathis, R. L., & Jackson, J. H. (2000). Human resource management (9th ed.).
South-Western Thomson Learning.
Salamon, M. (1998). Industrial relations: Theory and practice (3rd ed.). Prentice
Hall.
INTRODUCTION
According to the International Labour Organisation (ILO), it is estimated that more
than 1.2 million workers do not enjoy their right to work in a secure and safe
environment because of accidents and diseases which are related to their jobs.
Based on ILO statistics presented at the 16th Asia-Pacific Occupational Safety and
Health Organization (APOSHO) Convention in Mauritius in April 2000, it was
found that:
Employers from all over the world suffered because of more than 250 million
accidents every year.
More than 1.2 million deaths happened every year because of accidents and
diseases related to jobs and the total is higher than the total caused by road
accidents every year from all over the world.
Safety
An issue that has to do with protecting workers from injuries or accidents
while they are working. Injuries related to job include wound, fracture,
sprain and amputation caused by work accidents or caused by exposure that
involves an incident in the workplace.
Health
A condition that gives protection to workers from emotional disturbance and
any types of physical illness caused by their job. Disease caused by work,
such as exposure to occupational surrounding factors, can bring all types of
unusual circumstances or disturbance. This condition includes chronic acute
illnesses such as stress, burnout, heart problem and death which may be
caused by breathing and absorbing or being exposed directly to toxics or
harmful means.
(Bernardin & Russel, 1998)
ACTIVITY 10.1
We always hear the words „safety and health‰ but what do they mean if
applied in our workplace? Go on the myINSPIRE forum to discuss with
your coursemates.
ACTIVITY 10.2
Why are laws related to safety and health of workers important? What
would happen to workers if there were no laws like this in our country?
Share your thoughts in myINSPIRE.
Safety tools such as fire extinguisher and first aid box are provided.
Even though this Act had been used for a long time in Malaysia, it received a lot
of criticism regarding the effectiveness of its provisions and implementation.
only protected workers who worked in factories and this only accounted to
about 25 to 30% of the entire workforce in Malaysia;
ACTIVITY 10.3
In 1998, the construction sector was the sector that reported the highest
number of accidents, 38,718 (43.8%), compared to other sectors such as
commerce (14.7%), services (10.4%), and shipping (4.6%).
In your opinion, why did the construction sector contribute to the high
number of accidents in 1998? Have there been improvements since then?
Do some online research and present your findings in myINSPIRE.
The main aim of this Act is to increase awareness and promote a safety and health
culture among all workers in Malaysia. The objectives of this Act are to:
protect other individuals, apart from workers, in the workplace who are
exposed to risks from work activities;
ensure that the organisation maintains or fixes the standards of safety and
health by implementing rules and industry practices that have been approved
and in accordance with the provisions of the Act.
Some of the provisions in this Act include the need to form the National Council
for Occupational Safety and Health and provisions that set the duties of the
employer and the self-employed, designer, manufacturer, supplier, and workers.
In sum, council members need to meet from time to time to discuss and make
suggestions on issues related to:
changes that are relevant to the Occupational Safety and Health Act;
maintaining workplace areas so that they are safe without risking health
by providing sufficient facilities for employeesÊ welfare.
Any employer who fails to follow these instructions will be fined not more
than RM50,000 or jailed for not more than 2 years or both.
Apart from that, employers are also responsible for formulating policies on
occupational safety and health in written form and informing all workers
about them. These policies are looked into frequently to ensure that they are
suitable for current conditions. However, there are a few weaknesses in the
Occupational Safety and Health Act 1994. It does not set out what is
important in the occupational safety and health policy or state in which
manner the policy needs to be conveyed to workers. This may cause the
organisation to be unable to carry out these responsibilities properly.
ACTIVITY 10.4
In your opinion, why do many accidents still occur at the workplace even
though various precautions have been taken such as the enactment of
Acts and laws related to workersÊ safety and health? Share your thoughts
on the matter.
ensure that the plant or materials are safe without any risks to health
when being used;
arrange for or carry out appropriate tests and examinations on the plant
or materials;
ensure that the plant which has been built is safe for use.
Failure to obey these rules can cause the designer, manufacturer, or supplier
to be fined not more than RM20,000 or jailed not more than 2 years or both.
cooperate with employers or other persons who are given roles under the
Act and its regulations;
obey any order on occupational safety and health measure listed in the
Act or its regulations.
Employees who fail to obey these rules will be fined not more than RM1,000
or jailed not more than 3 months or both.
EXERCISE 10.1
3. One criticism received about the Factories and Machinery Act 1967
was that it only protected those who work in farms.
ACTIVITY 10.5
List a few types and causes of accidents at your workplace. Share and
compare your list with your coursemates.
Have you ever had a headache as a result of staring at the computer screen for too
long? Or have you ever seen a friend injured because he was crushed by a heavy
thing? These are examples of accidents that can happen while we work, according
to Aini Hayati (in Faizuniah et al., 2002)
Safety towards danger is an occupational aspect that has the potential to cause
injuries (such as sudden loss of sight, loss of fingers or hands, fall from a building)
or death to workers at a fast rate. Usually, safety towards danger is related to tools
or machines that are not safe to be used, unsafe work environments, and exposure
to dangerous chemicals.
Health towards danger refers to occupational aspects that can have negative
effects on employeesÊ health gradually. Continuous stress caused by workloads,
becoming deaf because of exposure to a noisy work environment, and having chest
pain and blurry eyes because of exposure to chemicals are some examples of
emotional and physical illnesses caused by work.
Next, we will look at a few safety and health categories regarding danger at the
workplace such as accidents, the danger of chemicals, air quality in buildings,
video screen terminals, and repetitive injuries.
ACTIVITY 10.6
Cause Example
These problems can be overcome if every person plays his or her role. The objective
of ensuring zero accidents cannot be achieved if workers do not use the safety
gadgets provided by employers or employers do not take action if employees
lodge complaints about damage to the safety gadgets provided.
Table 10.2 shows a few examples of roles that can be played by employers,
employees, trade unions, and the occupational safety and health committee in
minimising accidents at the workplace.
Table 10.2: Role of the Responsible Agent in Reducing Accidents at the Workplace
Responsible
Role
Agent
Trade Union Voice out the rights of employees to the management. If all this
while the effort is more on increasing incentives, then the focus
now should be on the safety and health of the employees.
Be involved as a workersÊ representative in the health and safety
committee.
Health and Section 30(a) of the Occupational Safety and Health Act 1994 states
Safety that it is compulsory for a company with 40 or more employees to
Committee form a health and safety work committee. This committee is to
study all the steps to ensure the safety of workers at the workplace.
The negative effects of the chemicals will not be immediately visible. The effects
will be visible when it becomes a chronic disease. See Table 10.3 to understand
how serious the effects can be for some people.
Other than that, the Occupational Safety and Health Act 1994 also contains the
rules to classify, package, and label chemical substances and determine the use and
exposure of dangerous chemical substances.
ACTIVITY 10.7
Is the air in your work area good? If not, what are the factors that
contribute to the air quality in your workplace? Discuss.
In order to save energy, the construction techniques for commercial buildings were
changed to increase the effects of heating power, air, and air-conditioning systems.
These included reducing the outflow of air by closing entire windows and any
holes in the building. As a result, many workers experience the sick building
syndrome or lack of fresh air. This syndrome causes itchiness on the eyes, ears,
throat, and skin (Bohlander et al., 2009).
Workers in closed buildings are also easily exposed to air pollution due to a bad
airflow system. According to a research by the National Institute of Occupational
Safety and Health in the United States, air pollution in buildings is due to cigarette
smoke and emission from office equipment such as ozone, hydrocarbon from
computers, photocopy machines, laser printers, and fax machines. Dust from
carpets, paper, and wood are among the contributors, too (OÂConnell & Motavalli,
1995; Bohlander et al., 2009).
To overcome the lack of fresh air in buildings, the American Lung Association
made four recommendations: remove cigarette smoke with good airflow, prevent
workers from smoking in air-conditioned rooms, supervise the airflow system
frequently, and remove sources of pollution from the buildings (Bohlander et al.,
2009).
ACTIVITY 10.8
vision problems such as weakening of vision, eye strain, and itchy eyes;
work stress due to pressure, bad posture, noise, lack of practice, workload, and
routine.
Dr James Sheddy, as quoted in Bohlander et al. (2009), gave the following advice
to minimise the negative effects of using computers:
Place the monitor in line with the eye vision level and at about 10 to 20cm away
from the eyes.
Sit on an adjustable chair, adjust the height according to preference, and use a
copyholder attached to the computer or desk.
Use screen shades to reduce light from the window to the screen.
One of the injuries is carpal tunnel syndrome. The carpal tunnel involves the hand
bones known as the carpal. These bones form a tunnel full of flexible tendons
(Ivancevich, 2006). According to research by NIOSH, the carpal tunnel syndrome
is related to industrial sectors involved in cutting, forming, sewing, and cleaning.
One way to avoid these injuries is by providing a good work environment in line
with the physical needs of the workers, which is known as ergonomics. This term
originated from the Greek words ergon which means work and omics which
means management of something (Mathis & Jackson, 2000). An ergonomist studies
aspects of work physiology, psychology, and engineering such as fatigue, lighting,
equipment, and control.
The employer can use the results of the study to provide a more conducive
work environment such as by providing chairs, shoes, desks, and any other
suitable equipment for the employees according to their size and height.
The employer can adjust the room temperature, lighting, and level of noise so
that these do not affect the employeesÊ performance.
The employer can focus on providing personal space. Small or packed spaces
lead to stress and cause health problems to workers.
EXERCISE 10.2
Security guards or those involved in money exchange and valuable assets such as
bank tellers and cashiers are exposed to violence. Those who work until late at
night or in isolated places are also exposed to this type of risk.
Besides visible threats, workers also face hidden threats such as bullying by other
workmates which may progress to a more serious stage such as murder.
Some steps can be taken to overcome violence at the workplace such as by vetting
workersÊ applications, and forming a basic procedure for safety at the workplace.
This procedure includes prohibiting workers from bringing in any weapons and
banning any practice that can pose a threat to the work environment.
Neustress is neutral pressure which does not bring any benefit or harm.
Distress happens when there is too much or too little stimulation such as
overworrying, and becoming sad and angry easily.
Although stress has been proven to increase the productivity and creativity of
workers, negative stress or distress is one of the examples of occupational illness
that can lead to physical injuries, heart disease, bone aches, asthma, and gastric
problems. It is the main source of workersÊ disability (French, 1998).
unsettled conflicts;
unrealistic goals.
A few steps can be taken to reduce the negative effects of pressure. These are as
follows:
SELF-CHECK 10.1
Have you ever felt stressed? What factors led to your stress?
Whatever action you take, the important question is: Do you understand what
HIV/AIDS is and its implications on workers, the job, and the surroundings?
Most people living with HIV/AIDS isolate themselves from society out of
embarrassment and fear of discrimination by family members and society. They
fear losing their jobs because awareness of this disease among employers is still
low.
would not have a great impact on business, productivity, expenses, health care,
and absence at the workplace;
Although there is no specific provision in the Occupational Health and Safety Act
1994 with regard to AIDS, Section 15(1) stated, „It can be assured that the employer
is responsible to take care of workersÊ welfare from any HIV infection, and at the
same time, responsible to take care of them no matter what health condition they
are in.‰
Under this programme, employees who face problems such as alcohol or drug
addiction, stress, human relationship problems (usually between workers and
supervisors), family and marital problems, and financial problems are provided
with counselling.
The EAP also provides services like career counselling, education on AIDS and
health, and counselling on mental stress, as well as counselling for employees who
are going to retire or be terminated (Mathis & Jackson, 2000).
In promoting a safe work culture, an employer can do many things, such as:
Enforce safety rules and take action against employees who break or do not
follow safety rules.
ACTIVITY 10.9
Create an estimation of your own for the industry you are in. Share and
compare your work with your coursemates in myINSPIRE.
ACTIVITY 10.10
Include family members and those who had retired in the health programme.
Obtain discount prices from health clubs to encourage employees to join and
enjoy the facilities.
EXERCISE 10.3
Essay Questions
Ć The varied aspects of safety and health are the reasons for the Occupational
Safety and Health Act 1994 to exists. The Act specifies the responsibilities
of employers, the self-employed, workers, designers, manufacturers, and
suppliers in ensuring a safe and healthy workplace.
Byars, L. L. & Rue, L. W. (2000). Human resource management (6th ed.). McGraw-
Hill.
OÊConnell, L. M., & Motavalli, J. (1995). Sick building syndrome. E. Magazine: The
Environmental Magazine, 6(1), 20.
Faizuniah Pangil, Aini Hayati Mohamed, Daratul Ambia Che Mit, Khulida Kirana
Yahya, Norazuwa Mat, & Norsiah Mat. (2002). Pengurusan sumber manusia.
McGraw-Hill.
Goetsch, D. L. (1996). Occupational safety and health: In the age of high technology
for technologists, engineers and managers (2nd ed.). Prentice Hall.
Mathis, R. L., & Jackson, J. H. (2000). Human resource management (9th ed.).
South-Western Thomson Learning.
Minetos, P. (1998). Corporate America vs AIDS. Safety & Health, 158(6), 38.
Schafer, W. (2000). Stress management for wellness (4th ed.). Harcourt College
Publishers.
Answers
TOPIC 1: INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT
Exercise 1.1
1. Human resource management consists of philosophies, policies, programmes,
practices, and decisions related to employee management in an organisation.
2.
Proactive Reactive
Facilitates an organisationÊs positive Does not take into account the effects
culture of culture
Exercise 1.2
The five main roles of the human resource management department are planner,
facilitator, coordinator, auditor, and mediator.
Exercise 1.3
Multiple Choice Questions
1. D
2. A
3. D
4. C
5. C
Essay Questions
2. Part-time job, work sharing, maternity leave, flexible working hours, child
nursing leave, and telecommunication services.
Exercise 2.1
1. The payment fee cannot be later than the seventh day after the last day of the
payment period.
2. 6 weeks
3. 60 days
4. No. The Employment Act 1955 prohibits employers from setting conditions
on how employees spend their earnings.
Exercise 2.2
1. After receiving the application, the management must take these actions
within 21 days:
give recognition; or
2. 14 days
Exercise 2.3
1. True
2. True
3. False
4. False
Exercise 2.4
1. Among the objectives of this Act are to:
protect others who are present at the workplace from any accidents that
might be triggered by workersÊ activities;
Exercise 2.5
1. 2,000
Exercise 2.6
1. Under this Act, the Human Resource Development Fund must be spent on:
bearing any administration costs for the Fund and the cost of
implementing the Act.
evaluating and determining the types or levels of training that are in line
with the industryÊs human resource needs;
Exercise 2.7
Effective from 1 January 2007, the contributorÊs account is divided into two,
Account 1 and Account 2. All contributions are divided into the two accounts
according to fixed percentages, namely, 70% into Account 1 and 30% into Account 2.
These accounts are created for different purposes and different types of
withdrawals are applicable for each account, as follows:
(a) Account 1
The savings here are for retirement and cannot be fully withdrawn before an
employee reaches the age of 55, passes away, loses capacity, or intends to
leave Malaysia permanently.
(b) Account 2
The savings in this account are meant to help employees prepare for a
comfortable retirement. Withdrawals are allowed in these cases:
Exercise 2.8
Fill in the Blanks
1. 12
2. 48
1. C
2. B
3. C
4. A
5. C
6. D
Essay Questions
Exercise 3.1
1. True
2. False
3. True
4. True
5. False
Exercise 3.2
1. True
2. False
3. True
4. True
5. False
Exercise 3.3
1. True
2. True
3. True
4. False
Exercise 3.4
True (T) or False (F) Statement
1. True
2. False
3. True
4. True
5. True
1. E
2. D
3. F
4. B
5. A
6. C
1. A
2. B
3. A
4. D
5. D
6. B
Essay Questions
1. Job requirements that are formally written help managers in almost every
aspect of employee management. By understanding job requirements,
managers can select, orientate, and train employees to further succeed in
their tasks. An accurate job requirement has to follow rules and regulations
and be related to the job. Thus, managers have a valid reason in making
decisions while evaluating employees in the performance evaluation process.
Exercise 3.5
1. True
2. True
3. True
4. True
5. True
Exercise 3.6
1. True
2. True
3. False
4. True
5. True
Exercise 3.7
True (T) or False (F) Statements
1. True
2. True
3. False
4. True
5. True
1. D
2. B
3. A
4. C
1. A
2. D
3. D
4. D
Essay Questions
Exercise 4.1
True (T) or False (F) Statements
1. True
2. False
3. True
4. True
5. False
Exercise 4.2
True (T) or False (F) Statements
1. False
2. True
3. False
4. True
5. True
1. D
2. B
3. A
4. C
1. A
2. D
3. D
4. D
Essay Questions
It must make sure that it has the resources to immediately engage the channels
created. This includes readiness to respond immediately and availability to
interact frequently.
The organisation must choose a social media that suits the intended
recruitment. LinkedIn, for example, is one of the best recruitment platforms to
attract professional applicants.
The organisationÊs social media pages should reflect its overall corporate
image. The organisation must be willing to spend some resources to hire a
designer or programmer.
TOPIC 5: SELECTION
Exercise 5.1
1. False
2. True
3. True
4. True
5. False
Exercise 5.2
1. True
2. False
3. True
4. False
Exercise 5.3
Fill in the Blanks
1. A
2. B
3. C
4. D
1. B
2. D
3. C
4. A
Essay Question
„Criterion‰ refers to the level at which selection tools are chosen and able to
forecast or correlate with the main elements of work behaviour. As examples, a
criterion for a sales job is sales figure and criteria for a production job are quality
and quantity of output.
Exercise 6.1
Organisations should provide training and development for their employees to:
Motivate Employees
Training and development allow hardworking employees to upskill and reskill
their existing competencies, thus motivating them to perform better at work.
Exercise 6.2
1. True
2. False
3. False
4. True
Exercise 6.3
1. Low in cost.
Exercise 6.4
True (T) or False (F) Statement
1. True
2. False
3. True
4. False
5. False
1. C
2. A
3. B
4. D
5. A
Essay Questions
determining an objective;
welcoming everyone;
Exercise 7.1
1. Performance evaluation is the process of identifying, observing, measuring,
and developing employeesÊ performance in an organisation or any
definitions such as those provided in Subtopic 6.1.
salary administration
promotion
The supervisor or manager does not have sufficient information about the
employeesÊ real work performance.
The supervisor or manager does not have the skills to evaluate employee
performance.
The employees feel that the organisation does not allocate sufficient
resources for performance rewards.
Exercise 7.2
1. The main elements of an effective performance standard are:
Exercise 7.3
The sources involved in evaluating employee performance are:
(c) Subordinates: The most suitable people to evaluate managers are their
subordinates. This method is effective because the subordinates are the
best source to observe the effectiveness of their managers. Moreover, the
subordinates are always in contact with the managers. This type of
evaluation is more for the managersÊ self-development so that they can work
on their weaknesses.
(d) Peers: Peers can be an effective evaluation approach as peers often interact
with each other and are able to identify their colleaguesÊ strengths and
weaknesses. Peer evaluation can give accurate and valid input. However,
peer evaluation can create problems if used to give favours or seek revenge.
Exercise 7.4
These are three main methods to evaluate employee performance:
(a) Trait Methods: These measure how far an employee is able to acquire certain
characteristics such as creativity, innovation, leadership, and dependency,
which are seen as important in carrying out oneÊs work. Some of the methods
that fall under this category are the graphic rating scale, essay method, and
forced choice scale.
(c) Results Methods: These methods enable supervisors to evaluate the results
achieved by employees. Therefore, these are more quantitative, objective,
and enable empowerment. This in turn will lessen bias. These methods stress
that employees are responsible for all the results achieved. There are two
techniques in this category, which are productivity measures and
management by objectives.
Exercise 7.5
Appraisers often make these mistkaes in evaluating employees:
(a) Halo Effect: An appraiser conducts a total evaluation based on only one
aspect of performance. The appraiser sees the employee as being efficient in
all his or her work aspects when he or she is able to meet the quantity
required by the organisation.
(b) Central Tendency: An appraiser awards the same evaluation to all evaluated
employees. The appraiser gives an average evaluation to all employees to
maintain a good working relationship with everyone so that friction does not
occur.
(c) Recency Error: An appraiser focuses on work performance that is close to the
evaluation period as it is difficult to remember work performance at the
beginning of the year.
Exercise 7.6
Multiple Choice Questions
1. C
2. D
3. B
4. D
5. B
Essay Questions
2. Meaning of terms:
The supervisor needs to inform employees about the interview date so that
the employees have an opportunity to re-examine their job description,
analyse any problems they faced, and compare their real performance with
the set standards.
Exercise 8.1
An organisation can offer these two types of rewards to its employees:
Exercise 8.2
Compensation fairness is when employees perceive that they have received fair
payment from their employers. There are three types of compensation fairness,
which are:
Exercise 8.3
A management carries out incentive plans for these reasons:
Incentives are variable costs that can be related to results achievement, which
encourage increase in output.
Exercise 8.4
1. Maturity curve or career curve.
2. Through the standard hour plan, the rate of incentive is based on the
standard time set by the organisation to complete a particular task without
taking into account the actual time taken by the employee to complete the
task. If the employee is able to complete the task in less than the standard
time, the employee is still paid an incentive based on the standard time. This
plan is suitable for jobs or operations that need a lot of time to be completed.
Exercise 8.5
The five characteristics of an effective benefit programme are as follows:
Exercise 8.6
A mandated benefits programme is a benefit set by the labour system. It is the most
minimum allotment on employee rights and has to be provided by employers.
Examples of mandated benefits are payment for time off and maternity leave
protection.
Exercise 8.7
Multiple Choice Questions
1. B
2. D
3. C
4. C
5. A
Essay Questions
(a) Influence of equity on wage rate: External factors take into account the
similarities between an established wage rate and other organisationsÊ
wage rate to attract and retain capable employees. Internal factors stress
on fair wages where an employee compares his or her wage with the
wage rate of a colleague in the organisation.
insurance scheme
healthcare
food service
transportation service
education amenities
loan amenities
Exercise 9.1
True (T) or False (F) Statements
1. False
2. True
3. True
4. False
5. False
Exercise 9.2
True (T) or False (F) Statements
1. False
2. True
3. True
4. False
5. True
Exercise 9.3
TRUE (T) or FALSE (F) Statements
1. True
2. False
3. False
4. False
5. True
Exercise 9.4
TRUE (T) or FALSE (F) Statements
1. False
2. True
3. True
4. False
5. False
1. C
2. C
3. B
4. B
Essay Questions
1. The hot stove method utilises the warning system and is immediate,
consistent, and not private. Workers are usually informed about the types of
punishment they will receive if they make mistakes before a problem arises.
If they are found guilty, punishment is immediately carried out so that they
can see the cause and effect of the mistakes made. The implementation of
punishment is consistent whereby workers who make the same mistake
receive the same punishment. This method is not personal, which means the
discipline action taken is not aimed at the workers but more at finding
solutions to unpleasant behavioural problems.
Distributing to all workers and not assuming that they know them;
Get the workersÊ signatures to make sure they have read and understood
the rules set.
It cannot provide many benefits to its members due to its limited number
of members.
the trade disputes have been referred to the Industrial Court for
arbitration.
Exercise 10.1
1. False
2. True
3. False
4. True
5. True
Exercise 10.2
1. True
2. False
3. True
4. False
5. True
Exercise 10.3
True (T) or False (F) Statements
1. False
2. True
3. False
4. True
5. True
1. B
2. A
3. D
4. C
5. B
Essay Questions
2. Employers can use the following ways to reduce accidents at the workplace:
give ample holiday and rest to workers who need more rest compared to
others;
OR
Thank you.