CHAPTER 1

CHAPTER 1 : INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 

1.1 BACKGROUND OF HRM DEFINITONS
The process of hiring and developing employees so that they become more valuable to the organization

DIFFERENCES BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE MANAGEMENT
Personnel Management
- Human Resource Management
- Salary Employment
Human Resource Management
- Hiring
- Employment
- Training
- Safety
- Motivating

1.2 FUNCTION OF HRM

a.Human Resource Planning
Process of identifying human resource needs of current and future for an organization to achieve its goals.

b.Recruitment
Process of finding and hiring the best qualified candidate.

c.Selection 
Process of evaluating candidates for specific job and selecting individuals for employment based on certain criteria.

d.Training and Development
It is an effort to enhance the skills, attitudes and knowledge of employee.

e.Performance Appraisal
Process of evaluating the effectiveness of the work performed by the employee.

f.Compensation Management
The remuneration received by the employee regarding his contributions to the organization (financial or non-financial benefits)

g.Industrial Relations
It is an effort to create good relationship between employers and trade union.

1.3- THE ENVIRONMENTAL FACTORS INFLUENCING HRM

INTERNAL FACTORS
Size of organization -Function of HRM is larger than small company.

Ownership of the company -Multinational trade or joint venture company will had greater function of HRM.

Philosophy of top management -Large companies will have HRM department, training department and industrial relations department.

Unionization of workforce -Strong trade union will have strong influence of HRM.

EXTERNAL FACTORS
Technological changes -Changes in technology, the role of employees are also affected (train employees to adapt new tech).

Globalization and increased competition-Globalization and business mergers create a big challenge in HRM. All the human resource function must be global and can compete with other company. Employee education and expectation -Highly educated workers more demanding than those who are not educated.

Workforce Diversity -Three generation of workforce which is generation x, generation y and baby boomers have big differences of skill, attitude and knowledge to do the job. It will be a big challenge to HR manager to manage them.

Labor Law -All human resource function must be legally applied. There is some acts are related The Employment Act 1955, The Wages Councils 1947, The Workmen’s Compensation.