HUMAN

RESOURCES
MANAGEMENT
 Introduction
to
Human Resources
Management
WHAT IS HUMAN RESOURCES MANAGEMENT?

Human Resources Management (HRM) is the strategic approach

to managing an organization’s workforce. It involves the recruitment,
selection, training, development, and retention of employees to
achieve organisational goals.

BENEFITS OF STUDYING HUMAN RESOURCES MANAGEMENT

Studying Human Resource Management can provide in-depth

knowledge of HRM principles and practices, enhance
understanding of the importance of human capital, develop key
skills valued by employers and many more.
Human Resources Operational Functions
Procure Develop Compensate Integrate Maintain

Job Analysis Evaluation

Performance Labor Health & Safety
Recruitment Appraisal Relations
Wages & Salary
Risk
Selection Training Motivation Management
Bonus &
Placement Incentive
Career Planning Grievance Social Security
Onboarding
Payroll
Transfer Development Discipline Welfare

Promotion Transition Record

Planning Keeping
 Glamour

The Good Career Development

Reason for Interesting Career

a HR Challenging Career

Career ? A Career can’t be replaced

Just Seeking HR Knowledge

 HR
IS
ALL ABOUT
HIRING AND FIRING!
 HEAD OF DEPARTMENT (Line Managers)

Employee

Appraising
Recruitment Termination
performance

Policy, Guidelines, Doing it Right & Proper

HUMAN RESOURCES (HR)

 Policy Formulator

4 KEY ROLES Provider &

Delegator
OF HUMAN
RESOURCES
Monitor
DEPARTMEN
T
Innovator
 Human Resources
Climate in Malaysia
 HR LANDSCAPE IN MALAYSIA

AGENCIES, STATUTORY BODIES UNDER MOHR

1. JABATAN TENAGA KERJA SEMENANJUNG MALAYSIA (JTKSM)

2. JABATAN TENAGA KERJA SABAH

3. JABATAN TENAGA KERJA SARAWAK

4. JABATAN KESELAMATAN DAN KESIHATAN PEKERJA (JKKP)

EMPLOYERS
5. MAHKAMAH PERUSAHAAN MALAYSIA (MPM) &
THE ROLE OF EMPLOYEES
MINISTRY OF HUMAN RESOURCES 6. JABATAN TENAGA MANUSIA (JTM)
IN
(MOHR) 7. CENTRE FOR INSTRUCTOR AND ADVANCED SKILL TRAINING (CIAST) (PRIVATE SECTOR)
&
v sets policies 8. JABATAN HAL EHWAL KESATUAN SEKERJA (JHEKS)
(NOT FOR PROFIT ORGANISATION)
9. JABATAN PERHUBUNGAN PERUSAHAAN MALAYSIA (JPP)
vprepares draft employment legislation
10. PERTUBUHAN KESELAMATAN SOSIAL (PERKESO)

venforces the employment legislation, and 11. HUMAN RESOURCES DEVELOPMENT CORPORATION (HRDCorp)

12. PERBADANAN TABUNG PEMBANGUNAN KEMAHIRAN (PTPK)

vEstablishes codes of practices as
guidelines to employers and employees 13. JABATAN PEMBANGUNAN KEMAHIRAN (JPK)
 CHANGES • The growth of organisations
IN
HRM IN • A better educated workforce

MALAYSIA • A more diversified workforce

Over the last
50 years • More women in the

workforce
 HR CLIMATE IN
MALAYSIA

Ø Recruiting Talented Employees (Acquiring & Retention) Ø Compensation and Benefits 66%
Ø Fostering a culture of continuous learning Ø Working in a safe environment 65%
Ø Embracing & Managing technology for HR Ø Having meaningful work 52%
Ø Leadership Development (Succession Planning) Ø Career growth opportunities 51%
Ø Compliance with Laws and Regulation Ø Job flexibility 49%
Ø Mental health of employees

Nine in 10 Malaysian employees

surveyed want upskilling
opportunities from their
employers
 Generations in
Workplace
GENERATION Z BABY BOOMERS
(1997 - 2012) (1946 – 1964)

GENERATION Y GENERATION X
(1981 - 1996) (1965 – 1980)
 BABY BOOMERS GENERATION X MILLENNIALS GENERATION Z
(1946 - 1964) (1965 - 1980) (1981 - 1996) (1997 - 2012)

Independent, Tech-savvy, Digitally native,

Optimistic, mentor-
DEFINING TRAITS resourceful, strong collaborative, entreprenuerial,
focused, resilient
communication socially concious embrace diversity

Individual,

WHAT
Hardwork, loyalty, Autonomy, balance, Purpose, growth,
authenticity,
CORE VALUES finanical security, efficiency, teamwork,
recognition, mental
achievement pragmatism continious learning

GENERATIONS
health

Goal-oriented, Self-reliant, focused Collaborative, tech- Adapatble, tech-

WANTS AT
WORK STYLE prefer clear on results, value enabled, thrive on centric, thrive in
hierarchy flexibility feedback flexible settings

COMMUNICATION
PREFERENCE
In-person
phone calls
Email,
direct
communication
Instant messaging, Digital-first, prefer
collaborative
platforms
texting & messaging
apps
WORKPLACE?
Career
PREFERED Retirement plans, Flexible schedules, Hybrid work, mental
development,
BENEFITS healthcare remote work health support
wellness program

Encourage
Offer feedback, Prioritise mental
mentorship, Provide autonomy,
HOW TO LEAD clear paths for health, offer flexible
recognise focus on outcomes
growth schedules
experience
4 GENERATIONS AT WORKPLACE
Relationships with Relationships with Attitude towards
organisations Authority change

Challenge authority,
Tend to be loyal to the
BABY BOOMERS and desire flat
team, adding value by Cautious about change
(1946 - 1964) organisations that are
going the extra mile
democratic
Unimpresed by
GENERATION X authority and expect See changes as
Loyal to their manager
(1965 - 1980) their competence and opportunity
skills to be respected
Respect authority
MILLENNIALS figures who Think of change as
Loyal to colleagues
(1981 - 1996) demonstrate improvement
competence

Respect the process

GENERATION Z Loyal to the experience Think of change as
and follow directions
(1997- 2012) at the workplace reality
but want to be engaged
 THE WORKING TREND

Traditional • The Silent

Working Generation
• Baby Boomers
Trend
Manager Employee
OFFICE BUILDING

Remote • Generation X
• Millennials / Gen
Working Y
• Generation Z
Trend • Generation Alpha

CO-WORKING SPACE WORK FROM HOME WORK FROM CAFÉ

 MALAYSIAN GENERATION X (1965 - 1980) - TOWARDS AGEING SOCIETY (2025 - 2040)
15 years

1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980
2040 24% of ageing population 60
2039 60
2038 60
2037 60
2036 60
2035 60
2034 60
2033 60
2032 60
2031 60
2030 14% of ageing population 60
2029 60
2028 60
2027 60
2026 60
2025 60
 OPTION TO WHAT KIND OF JOB
CONTINUE INTERESTED?
STUDIES 69% It was a “life changer” 34% Not intend to further studies, want to
become social media influencer
32% Not as beneficial as 26% Being a e-hailing / gig worker
before
22% Would start their own F&B
business
1,000
Respondent
s

WHY DID NOT WANT TO INTERESTED IN

CONTINUE STUDIES ? GOVERNMENT *TVET
UCSI Poll Research
PROGRAM?
41% YES
conducted a study 34% Need to work to pay their
on what are the education
students plan after 32% Don’t want to burden with a 59% NO
completing their student loan
SPM 32% Education fees were very high *TVET – Technical & Vocational Education &
Training
Malaysia Now, 22% Did not do well in school
29th March 2023

Data from the statistics department Some students said University classes were “old
showed in 2019, some 390,000 or school” and not in line with developments in the
72.1% of SPM graduates were not digital era and also cited that the cost of a
inclined to continue their studies University degree can run into tens of thousand of
ringgit
 1. Full –time employment
2. Part-time employment
3. Apprenticeship
4. Traineeship
5. Internship
Types of 6. Casual Employment

Employment 7.
8.
Contract Employment
Temporary
Employment
9. Contract Employment
10. Probation
11. Remote Workers
12. Digital Nomad
13. Gig Workers
Who is a gig worker?
An individual, employed Global
transactional on a time
or task-based manner,
having the flexibility to
choose their hours of Freelancer
work s

GIG
Passion

ECONOM
Remote Y

App-based
Ride-hailing drivers
Delivery Riders
Delivery drivers
Flexibility

Task-based platform
workers
Freelancers
 STRATEGIC
HUMAN
HUMAN
RESOURCES
STRATEGY RESOURCES
MANAGEMEN
MANAGEMEN
T
T
 H U M A N R E S O U R C E S F U N C T IO N S

• Human Resources Planning

• Recruitment & Selection
• Mobility (transfer)
• Performance Appraisal Line Department
Human Resources • Termination Support
Department
• Training & Development
• Career Development
• Compensation & Benefit
• Employment Law
• Safety and Health at Workplace
 STRATEGIC HRM IN
INTERNAL MALAYSIA CONTEXT
Organisation

1. Vision
2. Mission
3. Goals
4. Objective EXTERNAL
5. Business Strategy 1. Economy

Human
6. Business Results 2.
3.
Technology
New Workforce
Need
Resources
4.
Generation
Ageing society
for
Department
Workforce
5. Government regulations &
policies
Strategy
1. Current Strength
Workforce
HR GOALS
• Achieving
2. Skills level of
organisation goals Stay
current workforce
Competitive
• Hire & Retain the &
best talent
Relevant
• To have a dynamic In the
workforce Industry

• Attractive
compensation &
benefits
• In d u strial R ev o lu tio n – From Industrial Revolution 4.0 to Industrial Revolution 5.0
• F req u en c y – What used to be taking 100 years to come for a new Industrial Revolution, now is 10 years

• R ap id e m erg e n c e – AI (Artificial Intelligence) is taking most of the jobs from human

• In 5 ye a rs – human lives will change due to AI (Artificial Intelligence)

Contemporary
Issues
• W o rk fo rc e G e n era tio n – present Millennials, Generation Z and upcoming Generation Alpha
• M in d s et & C u ltu re - new workforce generation having a different approach of working
&
Upcoming
• N ew S kills – Employees need to acquire skills that are relevant with current revolution
• O rg a n isa tion C u ltu re – adopting to new work culture (remote working , nomad working)
Trends
• A g e in g so ciety – Malaysia will enter into large ageing society in 2030- 14% from total population
• N ew sk ills – Employees need to reskill or upskill for every 3 to 5 years to stay relevant & competitive
Traditional HRM vs Strategic HRM
Factors Traditional HRM Strategic HRM (SHRM)

Offering availabel and skilled Development of employees,

Objective
employees to organisations alignment with corporate strategies

Resposibility of Human Resources Directors /

Line Managers
management Managers

Adaptable, flexible management

Control HR policies, disciplines and rules
based on HR charateristics

Perspective Short-term view Short, medium and long-term view

Bureaucratic, administrative and Engaging, empowering and

Culture
obedient communicative

Investment in Human Resources,

Metrics Cost leadership
Value creation

Role of HR
Deal with existing problem Motivate and guide employees
department
Job Analysis
 JOB DESCRIPTION

A statement of the tasks

performed on a job and
the purpose of the job

• Job Title
• Department
JOB ANALYSIS • Reporting relationship
• Key areas of
The process of collecting responsibility
data & analysing the • Term of employment
duties, task &
responsibilities of a job

JOB SPECIFICATION

A listing of the skills,

knowledge, and abilities
needed for a job

• Education
• Experience
• Training
• Required skills,
knowledge &
characteristics
• Other abilities
 HUMAN PLANNING
RESOURCES

HUMAN RESOURCES
PLANNING
KEY OBJECTIVES OF HUMAN RESOURCE PLANNING

Attracting Developing Retaining

Human Resources Planning

Human resources planning is the process of

managing your company’s current human resources
needs and forecasting future workforce needs.

The aim? To ensure that the right people – with

the right skills – are available at the right time and
place.

Effective
HR Planning

Right Right Right Right

People Capabilities Time Place
 HR
PLANNING & FORECAST

Employment Planning

The process of deciding what positions the firm

will have to fill, how to fill them IMPORTAANCE OF
HR PLANNING

1. Acquiring the right employee (s)

2. Increase employee satisfaction

Succession Planning 3. Analyse future manpower needs

4. Control employee turnover
The process of deciding how to fill the
Company’s most important executive jobs 5. Fill-up shortage to qualified resources
6. Keep the talents in the organization
7. Ensure career development for employees

What to Forecast? 8. Uphold employee motivation

Ø Overall personnel needs

Ø The supply of internal candidates
Ø The supply of external candidates
 0 Objectives of
Human Resources To ensure the right number of employee for

1 Planning the right kind of job are selected.

0 Current Analysing current manpower supply in the

2
Manpower organization in terms of experience, skills
Inventory required for a particular job.

Human 0 Forecasting Match the demand for the manpower arising

Resources 3
Demand and in the future supply or available resources
Supply with the organisation

Planning 0 In case the demand is more than the supply

(HRP) Manpower Gaps
4
of human resources, that means there is a
deficit, and thus, new candidates are to be
Process hired
0 Employee Plan
In a case of a deficit the firm may go either for recruitment,

5
training, interdepartmental transfer. In the case of surplus

Explained the voluntary retirement schemes, redeployment, transfer,

layoff could be followed
0 Training and
The training is not only for the new
employees but also for the existing employees
6
Development
who are required to update their skills from
time to time
0 Appraisal of
Manpower
Human resource plan is compared with its

7
actual implementation to ensure the
Planning availability of a number of employee for
several jobs
 SINGLE THE B40
MOTHERS RETIREES DISABLED YOUTHS

INDIGENOU
FORMER SCHOOL
S
INMATES DROPOUTS
PEOPLE
 BASIC HUMAN RESOURCE
PLANNING
MODEL
FOR A NEW PRODUCTION LINE

Develop staffing for

Open new product new installation
Recruit skilled workers
line • Production Recruiting and training
workers programs feasible
1 2 Develop technical training 3
Open new factory • Supervisors
programs
Transfers infeasible
and distribution because of lack of
system Transfer managers from
• Technical staff managers with right skills
other facilities
• Other managers
4

Develop new Recruit managers 5 Too costly to hire from

objectives and plans from outside outside

6
 SELECTING
HUMAN
RESOURCES
 K S A
KNOWLEDGE SKILLS ABILITIES
The ability of the
Candidates having the Candidates having
knowledge that was candidate to
technical skills to
attained from education perform the job
perform the job and
institution under stress and
also other soft skills
(college/university) in minimum supervision
the form of qualification
The skills that will be
Able to demonstrate
e.g. Obtained an relevant and to be
accounting qualification; leadership qualities
applied in the job
ACCA to pursue a career they are performing
in accounting field Able to become a
team player
 The need for
acquiring
strong
Emotional
Intelligence
E M O T IO N S (EI / EQ)

M a na g e r

T h e G o als KNOW LEDGE

of
R ec ru itm e
nt
In To d a y ’s
E n v iro n m e
nt S K IL L S
E m p lo ye
e

A B IL IT IE S
 How to prepare for

You need to be
Google
prepared Interview master of?
What do you need to be a

Emotionally Technically
ALGORITHM DATA
S STRUCTURE

Consult the right resources

“Cracking The Coding

Mentally
Interview”

The Da Vinci Method

Set two or three hours a
Get a white board
day
•
• Take each examples for cracking the int.
• Create an algorithm You need to practice solving
• Write pseudo-code the algorithmic problems at
• Implement the full solution least for one month
• Create at least one alternative
implementation
 Stage One Job Job
Define Description Specification
Requirements

Stage Two Other

Attract Potential
Job
Advertising
Recruitment
Approach
THE
Employees
RECRUITMENT
Stage Three Application Job Interview Ability
AND
Select Right
Employee
Form Filled Conducted Tests SELECTION
PROCESS
 S o u rce s o f R e c ru itm e n t

In tern al S o urce s E xte rn a l S o u rc es

Previous Applicants Advertisements

Campus Recruitment
Present Employees E-Recruitment
Employee Exchange
Employee Referrals Walk-ins and Write-ins
Contract
Former / Retired Employees Acquisition & Mergers
Professional Association
Job Carnival / Expo
 EMPLOYMENT INTERVIEW

Selection Interview Formal & Informal Interview Unstructured Interview

Appraisal Interview Sequential & Panel Interview § Unfold like a conversation

§ May have general topics to cover
§ No specific questions
§ No agreed order
Exit Interview Group Interview

Situational Interview Structured Interview

§ Set questions that have been set

Phone or Video Interview § Focus on core competencies
§ Interviewers knows what to look
§ Questions asked in same order
§ Behavioral & Situational questions
§ Can go off-script, but will return
 RECRUITMENT
SOURCES
IN
MALAYSIA
Where do they want to 1. Job Portal (Job Street Malaysia)
2. PERKESO Job Carnival
MALAYSIAN advertise the vacancy? 3. PERKESO (Kerjaya Madani)
EMPLOYERS 4. HRD Corp Placement Centre
SEEKING FOR What are the other (HPC)
5. Campus Recruitment
EMPLOYEES avenues to seek job 6. Recommendation / referral
candidates? 7. Social Media Recruitment
 The Ministry of Human There is a total of 11,846 job
Resources shared that opportunities in emerging
from 1 January 2020 to 18 sectors recorded from 1
February 2022, there are January 2022 to 24 February
3.88 millions of job 2022, and the jobs are
vacancies in offering salaries of between
MYFutureJobs, of which RM 5,000, and RM 10,000
431,989 are still available. and above (per month)
 Learning
&
Development
R es k illing , U p s killin g a n d C ro s s-S k illin g :
W h a t’s th e D iffere n ce ?

C ro ss -S k illin g
U p sk illin g
R e sk illin g
Building out an
Increasing the level of
Training employees to employee’s skills to span
competence for an
learn new skills to a variety of roles,
employee’s existing skills
perform in a different role functions, or job to
to perform better in the
increase knowledge and
present role
expertise
 Pr o fes si o nal s i n M al ays i a ar e f a c i ng

91% disruptions to their career and

employment. The changes in the labour
Intend to upskill market and job expectations may
and re-skill in encourage more people to be open to
the next 12 upskilling and re-skilling opportunities
or switch their careers entirely to ensure
months
their livelihoods during these trying times.

Key reasons for upskilling and re-

skilling

55% 21% 13%

Want to be prepared Want to join another Fear losing their job
for automations and career or change the due to redundancy
digitalisation in the industry they are in
future

8% 4%
Feel the current Job responsibilities
employer is not have changed
financially stable significantly
enough
 Learning vs Training

Performance Learning Training

Performance creates value Is a valuable and powerful
Learning is only one enabler of builder of capabilities Is an activity
performance Training is only one way to learn
 1
Training The gap between the present skills and desired skills may indicate problems
Needs that in turn can be translated into a training need.
Assessment

2
Define A training objective is the specific knowledge. skills, or attitudes that the
Training trainees are to gain as a result of the training activity.
Objective
5 STAGES
OF 3
Design
TRAINING Training
Creating a training program that will meet the
training objective.
PROCESS Program

4
Conduct
Carrying out the training program as planned to
Training
the participants.
Program

5
Evaluate
Evaluation is a must to be done after the training session to obtain the
&
feedback from participants.
Follow-up
1
O rg a n is a tio n a l L e v e l o f A n a ly s is
Skills and knowledge gaps and training needs
within the an organisation

2
O p e ra tio n a l L ev e l o f A n a ly s is
Determining skills, knowledge required to carry
out tasks for a particular job

3
In d iv id u a l L e v e l o f A n a lys is
Analysing individual skills,
knowledge and ability deficiencies
70 : 20 :10
Learning & Development Model

Experiential
Working with new &
challenging experiences

Social Learning
20% Build communities &
special interest groups
Mentoring & Coaching

10
% Training
Structured courses,
workshops & E-
learning
55 : 25 : 20 Model
Experiential 55 Scenario- BLENDED
Learning % based LEARNING

E- learning

Social 25 Discussion
Learning % forums

Formal 20 VILT
Learning % sessions
 WHAT IS
BLENDED
LEARNIN
G
?

Instructor-led learning Digital learning

(in classroom or virtually) (self-guided or assigned)
 Teaching, Training, Coaching, and Mentoring
GENERAL SPECIFIC
TEACHING TRAINING
IMPACT: Informs IMPACT: Enables
DIRECT

PURPOSE: Transfer Information PURPOSE: Transfer Processes

STYLE: Show and Tell STYLE: Interactive
FOCUS: Education and Knowledge FOCUS: Skills and Abilities
GOAL: Conceptual Understanding GOAL: Skills Mastery

MENTORING COACHING
IMPACT: Empowers IMPACT: Enhances
INDIRECT

PURPOSE: Build Character PURPOSE: Improve Performance

STYLE: Challenge and Model STYLE: Question and Advise
FOCUS: Wisdom and Values FOCUS: Performance and Expertise
GOAL: Leadership Skills GOAL: Peak Performance
 EMPLOYEE TRAINING METHODS
Coaching / Social Video
Instructor-led E-learning Hands-on Mentoring Learning Training Lectures

Shadowing Simulation Role Job Group Case Blended

Playing Rotation Discussion Studies Learning
 PARTNERS IN TRAINING
Malaysian Employers

Training Head of
Training
Department Department
Provider

The
Government
The The
Ministry of Human Resources Employer Employee Educational
1. HRDCorp Institutions
2. PERKESO
Providing knowledge
and skills in the niche
area
 TYPES OF ENTITY Initiated and encouraged by
HRDCorp in line with the
ENTITIES IN MALAYSIA 1. Multinational / Corporate policy of Ministry of Human
2. Start ups
REQUIRING TRAINING 3. Micro, Small & Medium
Resources
FOR THEIR EMPLOYEE’S Enterprise
4. Not-for Profit Organisations The objective is to have skilled
5. Cooperatives workforce from all entities

All entities who have more than 50

employees required to contribute
Training Levy (monthly) to
HRDCorp.

This Training Levy can be used by

entities to conduct training for their
workforce.
 TRAINING ENTITY IN MALAYSIA
q Previously known as Human Resources Development Fund (HRDF)

q Was branded to Human Resources Development Corporation (HRDCorp) in November

2021

q A national training entity under the Ministry of Human Resources

q Responsible in ensuring all Malaysian workforce to be skilled in their relevant industries

q Employers are required to contribute levy (training fund) accumulation every month.

Employers who send their workforce for

Independent Training Providers wishes to
a training program which states
provide training for employers through
“Claimable”, can claim training fee and
HRDCorp registered and approved program,
other itinerary under the contributed
required to be “Approved Training Provider”
levy (training fund)
 TRAINING LEVY HUMAN RESOURCES DEVELOPMENT
ACT 2001
HOW HRDCORP LEVY IS CALCULATED? THE ACT SAYS
HRDCORP LEVY = BASIC SALARY + FIXED
ALLOWANCE o Companies with 10 or more employees must
contribute 1% of the total salary of local
employees for the TRAINING fund.
Example on how to calculate the HRDCORP levy
if the contribution is at 1% and if an employee o Beginning of March 2021, HRDF have
obtains a basic salary of RM 3,000.00 and accessed across all industries. Employers who
addition with an has 10 or more local employees is mandatory
fixed allowance of RM 250.00. to be registered. While employers who have 5
to 9 local employees has the choice to be
The following calculation of levy for this registered.
employee as follows:
(RM 3,000.00 + RM 250.00) x 1% = RM
32.50
MANAGING
CAREERS
T H E B A S IC O F C A R E E R M A N A G E M E N T

1 2 3
CAREER
CAREER
CAREER MANAGEMEN
DEVELOPMEN
T
T
The occupational
positions a person The process for
enabling The lifelong series
has had over
employees to of activities that
many years
better understand contribute to a
and develop their person’s career
career skills and exploration,
interest establishment,
success and
fulfillment
 A C o n cep tu al M o d e l o f C aree r D eve lop m en t

Career
Development Career Job
Planning Satisfaction
• Development
refers to learning
experience that
help employees
grow and prepare
for future
Career
• Development Development
often involves
voluntary learning
not tied directly to
the current job

• Training is related
to the current job Career Career
and typically
required Management Commitment
 A model for career planning process
Feedback

Individual needs Assessment Individual

and and development
aspirations Counselling efforts

Setting on the
Harmonization Harmonization
career path

Personnel planning Training and

Organisational needs
and career development
and opportunities
information programme

Feedback
 Comparison of Traditional Career and Protean
Career
Dimension Traditional Career Protean Career
Goal Promotions / Salary increase Psychological success
Psychological Security for commitment Employability for flexibility
Contract
Mobility Vertical Lateral
Responsibility for Company Employee
Management
Pattern Linear and expert Spiral and transitory
Expertise Know how Learn how
Development Heavy reliance on formal training Greater reliance on
relationships and job
experiences
 APPROACHES
TO
DEVELOPMENT
 MOOC
OVEVIEW
M A S S IV E OPEN O N L IN E COURSE
There may be Anyone, Coursework MOOCs are
100,000+ anywhere is delivered very similar
students in a can register entirely over to most online
MOOC for these the Internet college course
courses
 BEST FREE
AND
AFFRODABLE
PLATFORMS
FOR ONLINE
COURSE
PERFORM ANCE
MANAGEMENT
&
A P P R A IS A L
 Performance Performance
Management Appraisal

Encompasses all A regular sit-down

interactions between between an employee
an employee and their and their supervisor
supervisor that can where the employee is
improve performance formally assessed
The appraisal process (Cole 2007)
Job
Improvement
Plan

Appraisal form Appraisal interview Action Promotion OR

completed conducted agreed Transfer

Salary review
 Ø Organisation’s Goals and Objectives
Job Performance is Ø Department’s Goals and Objectives
Behavior Input
evaluated based on
Ø
Ø Input from Traits
Ø Key Performance Indicator (KPI)
stated in Job Description (JD)
Ø External Stakeholder

ORGANISATION
EMPLOYEE
Ø Continuous Business
Ø Salary Increment
Improvement
Ø Promotion
Ø Business Expansion
Ø Empowering
Ø Able to retain best talents
Ø Career Dev.
Ø Constant productivity
 ROLES IN PERFORMANCE APPRAISAL

HEAD OF DEPARTMENT ROLE HUMAN RESOURCES DEPARTMENT ROLE

ü Will perform the actual appraising with the ü Serves as a policy-making and advisory roles
employee
ü Provides advice regarding appraisal tools to use
ü Must be familiar with the basic appraisal
techniques ü Prepare standard appraisal form to be used by
all department
ü Must know how to conduct appraisals fairly
ü Responsible for training HOD’s to improve their
ü Must be open in commenting the downside of appraisal skills
performance
ü Responsible in monitoring the appraisal being
ü Allow employee to speak and comment carried out fairly
PERFORMANCE
APPRAISAL
PROCESS
 Management by 360-Degree
Objective (MBO) Feedback
A multidimensional
Managers and employees
performance appraisal
together identify, plan,
method that evaluated an
organize, and communicate
employee using feedback
objectives to focus on during a
collected from the employee’s
specific appraisal period.
circle of influence namely
managers, peers, customers,
This performance appraisal
and direct reports
method is used to match the
overarching organizational
This method will eliminate
goals with objectives
bias in performance reviews

Behaviorally
Assessment Centre Human Resources Psychological
Anchored Rating
Method Accounting Method Appraisals
Scale (BARS)
The employees are assessed Focuses on analysing an
BARS compares an employee’s
based on their performance Evaluating an employee’s employee’s future
performance with specific
like social-stimulating performance as per the performance rather than
behavioral examples that are
exercises like monetary benefits they yield their past work
assigned a numerical rating
Role-playing, decision-making, from the organization
informal discussions. To determine the hidden
BARS set typical workplace
Employee performance is potential of employees
behaviors as per the job role
Allows employees to get a compared against the salary
and evaluates an employee’s
clear picture of their own & other cost the company Scenarios are taken into
performance in comparison to
performance and how others pays for the employee account while performing
these set standards
observe them psychological appraisal
 M a n a g e m e n t b y O b je c tiv e s (M B O ) – P e te r D ru c k e r
P e rfo rm a n c e A p p ra is al M e th o d

MODERN
PERFORMANCE M a n ag er Feedbac
k
loop

APPRAISAL
METHOD and
J o in tly p lan
• Set objectives
In d iv id u al a ct
• Perform task
Jo intly co n tro l
• Review results
• Discuss
(employee)
IN • Set standards
• Choose actions
• Provide support
(manager)
implementations
• Review MBO
cycle

ACTION
E m p lo ye e
 Top
Management

360 Customers Immediate

Superior

Degree 3 60
D egre e
A p praisa l

Appraisal Self Peers

Subordinates
 A s se s s m e n t C e n tre M eth o d s
ASSESSMENT CENTER
• In Basket Exercise
The major competencies that are judged in
• Competency Based Interview
assessment centers are interpersonal skills,
intellectual capability, planning and
organizing capabilities, motivation, career • Case Study
orientation.
• Role Play
Assessment centers are also an effective
way to determine the training and • Group Discussion
development needs of the targeted
employees.
• Presentation
 Historical Cost Model Future Earnings Value Model
The cost of recruiting, hiring, The value of employees is based
training and developing the on their future earnings
worker

METHODS
Replacement Cost Model COST OF VA L U E - Reward Valuation Model
If an employee leaves the BASED HUMAN BASED An improvement over the future
company, the cost of hiring a new M ODELS M O D E LS earnings model. Workers can
one to replace the person is RESOURCE change roles over the years
considered A C C O U N T IN G

Opportunity Cost Model Valuation As A Group Model

The value of the employee is The value of a person when they
calculated as the opportunity to are in a group Companies calculate
use the same person for another the economic value of an individual
job from the group’s performance
 Please rate the employee’s Customer Service using the following scale

E xce e d s 7 Could be expected to explain the items on the menu and offer recommendations
based on customers stated tastes.
A cce p ta b le
L e ve l o f
P e rfo rm an ce 6 Could be expected to say customers “how is your day”? and wish them a happy
day when they leave the store.

B E H AV IO R A L LY
ANCHORED 5 Could be expected to ask customers if they want napkins with their meals.

M e e ts
R ATIN G S C A L E A cce p ta b le
L e ve l o f 4 Could be expected to make eye contact with customers during transactions.

(B A R S ) P e rfo rm a n ce

3 Could be expected to say “here your order” when handing them to customers.

F a ils to M e e t
A cce p ta b le
2 Could be expected to talk on the phone while taking customers orders.

L e ve l o f
P e rfo rm an ce 1 Could be expected to yell obscenities at customers.
 HR Scorecard
HR Competencies
• Admin. Expertise
• Employee Advocacy
• Strategy Execution
• Change Agency

HR Practices
• Communication STRATEGIC FOCUS HR Deliverables
• Work Design
• Operational Excellence • Workforce Mindset
• Selection
• Product Leadership • Technical Knowledge
• Development
• Customer Intimacy • Workforce Behavior
• Measurement
• Rewards

HR Systems
• Alignment
• Integration
• Differentiation
Example Human Capital Scorecard
C O M P E N S AT IN G
EM PLOYEE
 COMPENSATION STRATEGY
HUMAN CAPITAL INVESTMENT

IN A GIVEN EMPLOYER

• Growth
• Development
• Sustainability

COMPENSATION = RETURN

ON THE INVESTED HUMAN CAPITAL

COMPENSATION THE EMPLOYER NEEDS A

HUMAN CAPITAL AS THE • Base Salary
STRATEGY TO
TIME, EFFORT, • Variable Pay
• Recognition ü ATTRACT
KNOWLEDGE,
• Significant Work ü DEVELOP
ACHIEVEMENT CAPACITY • Quality of ü MOTIVATE
OF PEOPLE…..APPLIED TO Leadership
THE BUSINESS OF A
• Career ü COMMIT
• Wellness …THE HUMAN CAPITAL
GIVEN EMPLOYER • Benefits NEEDED TO COMPETE
 The 1. Salary Applicable for
private and
Remuneration 2. Benefits
public sector
Package 3. Incentives employees

1. To recruit & retain qualified employees

2. To increase or maintain morale

Objectives of 3. Promote loyalty

Compensation in 4. To determine basic wage & salary

Human Resources 5. To rewards for job performance

6. Adhere to Legal Compliance & Nation
Policy
 E m plo yee B en efits in the Tota l C om p en sation S ch em e in
M a la ysia
Total Compensation

Core Legally required Discretionary EB:

Adjustment to Core
Compensation: Compensation:
EB: • Health insurance
• Wages or • Cost of living • SOCSO • Disability Insurance
Salary • Seniority • Workers’ • Life Insurance
• Merit Compensation • Paid Time off
• Incentive • Retirement • Accommodation and
• Person-focused Plans enhancement
 Employee Benefits and Perks
Creating a Positive and Supportive Work Environment

Google prioritizes Google invests in the

Google offers Google values work- life
mental health and financial well-being of Google offers various
comprehensive medical, balance and provides
offers employee its employees through personal development
dental, and vision benefits such as paid
assistance programs. competitive opportunities to its
insurance for time off and parental
This includes access to compensation, employees, including
employees and their leave to support
onsite wellness centers, generous retirement access to personal
dependents, ensuring employees in managing
and resources for plans, and annual pay development programs
access to essential their personal and
physical or mental equity analysis and to support their growth
health services professional lives
health concerns adjustments

Healthcare Work-Life Mental Health Financial Employee

Benefits Balance Support Well-Being Development
 Performance Performance Compensation
Management Appraisal Management

Encompasses all A regular sit-down Performance

interactions between between an employee compensation
an employee and their and their supervisor encourages employees
supervisor that can where the employee is to do their best work
improve performance formally assessed and rewards them for
achievement
 WAGE vs SALARY

A wage refers to an amount of money Example TIME RATE

that employer’s pay their staff by the A retail employee who works 30 hours
hour or day. during a working week might earn
$18/hour.
A wage is a fixed rate, so individuals
typically receive their pay to reflect After their 30 hours week they will
the hours of days they worked receive a paycheck showing gross
throughout the week
PIECE RATE
wage of $540 (30 x $18)
WAGE

A salary is the amount of pay for an

entire year of work. It’s usually agreed
in a job interview between a company
A salary is a fixed rate and won’t vary Advantage of Salary
and employee and paid in increments
from month to month. 1. Consistency
throughout the year
Salaries covered an entire year, they 2. Additional Perks
Employers usually pay salaries on
also include holidays. 3. More Compensation
monthly basis
SALARY
 C o m p e n s atio n S y stem

In d ire c t c o m p e ns a tio n D ire c t c o m p e n sa tio n

B a se p a y M e rit p a y

S a la ry W age
P rotec tion P ay fo r T im e S ervice s an d In c en tive D efe rre d
P ro gra m W orke d P e rq u is ites P ay Pay

• M e d ical ins u ra nc e • V a ca tion s • R e cre atio na l fa cilities • B on us • S av ing s p lan

• Life in su ra nce • H olida ys • Car • C om m issio n • S tock pu rc ha se
• D is ab ility inco m e • S ick le av e • F ina ncial P lan nin g • P iece ra te • A nn uity
• P e nsio n • J ury du ty • Lo w -c ost or free • S to ck op tio n
• S o cial sec urity m e a ls • P rofit sh aring
• S hift d iffe re ntia l
 BUSINESS DEVELOPMENT PROFESSIONAL Salary
Protection
Program

Pay for time Incentive Pay

Worked • Bonus
• Commission

Service &
Prerequisites
 What I put into my job
Time, effort, ability, loyalty
What I get from my job
Pay, bonus, perks, benefits JOHN STACY ADAMS
Inputs Outputs
EQUITY THEORY
“Adams Equity Theory”

Equity
Theory
Equity theory is based on the
Inequitable Dissatisfaction, Reduced output,
idea that people compare
rewards Departure from organisation
their own inputs and
outcomes to those of others.
When people perceive that
their inputs and outcomes Balance or
Equitable Continuation at the same level of
are equal to those of others, imbalance of
rewards output, stay put in organisation
they feel a sense of equity rewards

Definepedia
More than
Will continue work harder even
equitable
more
rewards
 W h at is E m p lo ye e R e ten tion
Employee retention refers to the various
p olic ie s a n d p ra c tice s which let the employees
stick to an organization for a lo n g e r p erio d of time

M a th em atical D efin itio n

EM PLOYEE Retention is the rate at which current employees
R E T E N T IO N Of your organization are staying in their jobs.
Retention is the opposite of “turnover”.
Therefore, if tu rn o ve r is lo w ,
th e n re te ntio n is h ig h .
W H Y E M P L O Y E E S L E AV E
O R G A N IS AT IO N ?

A Z IM P R E M JI
F ou nd er W IP R O , In d ia
“m o st e m plo ye e s lea ve is du e to th e re ason
o f th e ir su pe rio rs trea tm e n t”
 Lack of Career Advancement

REASONS FOR Inadequate Compensation

HIGH
EMPLOYEE Poor Work-Life Balance

TURNOVER IN Toxic Work Environment

MALAYSIAN Insufficient Training &
ORGANISATION Development

Job Mismatch

Lack of Recognition
 Types of Employee
Turnover and Retention

Leave Voluntarily
No Intention to
Functional Dysfunctional
Retention Retention

Desirable Undesirable
Employee Remains Employee Remains
Employee with Organisation with Organisation

Choice Leave Voluntarily

Dysfunctional Functional
Intention to

Turnover Turnover

Desirable Undesirable
Employee Employee
Quits Quits

High Performance Low Performance

Employee
Contribution
W h at is the e m p loy e e re te n tio n ra te ?
Employee retention rate is a measure of an organization ability to retain a stable workforce. It shows the number of employees
who stay in a company for a certain period of time compared to the total number of employees in that period

EMPLOYEE RETENTION FORMULA

Total # of employees – Total# of employees who left

Employee Retention rate = x 100
Total # of employees

Example 1
A digital marketing company has 300 employees. During the last year, 15 employees left.
E m p lo yee re te ntion ra te = (3 00 -1 5 ) / 3 0 0 ) x 1 0 0 = 9 5 % e m p lo ye e re te n tio n

Example 2
At the start of Covid-19 pandemic, a live events company had to retrench over 2,000 employees. At the time, their headcount was
5,000.
E m p lo yee re te ntion ra te = (5 00 0 -2 0 00 ) / 5 0 0 0 ) x 1 0 0 = 6 0 % e m plo ye e re te n tio n
T he e m p lo y e e-re te n tio n an d jo b s atisfac tion
m odel

Ø Compensation

Ø Reward & Recognition

Ø Promotions & Opportunity for

EMPLOYEE Job
R E T E N T IO N S a tis fa c tio n
Growth

Ø Participation in Decision Making

Ø Work-Life Balance
Reduced
Ø Good Work Environment
E m p lo y e e
Tu rn o v e r
Ø Training & Development

Ø Right & Proper Leadership

Ø Job Security & Satisfaction

• Leave Policy
• Working Hours Policy Administrative
• Dress Code Policies
• Disciplinary Policy

Cash and non-cash benefits

•
Compensation &
Bonuses
•
Benefits
• Recognition

• Employee Feedback
Performance
Employee
Retention
• Communication
Management
• Target Setting

• Forecasting Hiring Needs

• Searching process Recruitment &
• Screening and short listing Selection
• Interviewing

• Talent Management
• Succession Planning Career Development
• Leadership Development