Introduction to Human Resource Management

Vocabulary flashcards covering the fundamentals, structures, functions, challenges, and diversity elements related to Human Resource Management.

Human Resource Management (HRM)

A strategic process of planning, organizing, directing, and controlling the procurement, development, compensation, integration, maintenance, and separation of employees to achieve individual, organizational, and social objectives.

Human Capital

The collective knowledge, skills, abilities, and attitudes of employees that contribute to organizational performance and competitive advantage.

Industrial Revolution (1890s–1920s)

The era that sparked the earliest formal personnel practices, laying groundwork for modern HRM.

Human Relation Approach (1930s–1950s)

A management focus emphasizing employee morale, motivation, and relationships as key productivity drivers.

Recruitment

The HRM activity of attracting suitable candidates to fill organizational job vacancies.

Training

Planned effort by HRM to provide employees with job-related knowledge and skills to improve performance.

Performance Appraisal

A systematic evaluation of an employee’s job performance for decisions on promotions, rewards, or development.

Compensation

All forms of financial and non-financial rewards provided to employees in exchange for their work.

HRM Structure – Small Company

HR responsibilities handled by Heads of Departments rather than a dedicated HR unit.

HRM Structure – Medium-Size Company

HR tasks often housed within an Administration Department.

HRM Structure – Large Company

A distinct Human Resource Department manages HR activities.

HRM Structure – Very Large Company

Separate HR, Training, and Industrial Relations departments oversee people management functions.

Importance of HRM

Ensures efficient systems, effective employee management, commitment, and competitive advantage for the organization.

Personnel Management (PM)

Traditional, administrative approach to managing workers, focusing on short-term, reactive, and job-centred issues.

HRM vs PM

HRM is proactive, change-oriented, strategic, and performance-based, whereas PM is reactive, status-quo-oriented, administrative, and job-based.

Human Resource Planning

Systematic process of matching internal and external labor supply with anticipated job openings over time.

Human Resource Development

HRM activities aimed at enhancing employee capabilities through training, education, and career development.

Malaysian Ministry of Human Resources

Government body that drafts, amends, and enforces employment legislation and provides guidelines for employers and employees.

Staffing Function

HRM area covering job analysis, HR planning, and recruitment & selection.

Job Analysis

Process of identifying and documenting a job’s duties, responsibilities, and required qualifications.

Selection

The HRM process of choosing the most suitable candidate from the pool of applicants.

Industrial Relations

HRM function managing employer–employee–union relationships and collective bargaining.

Safety and Health

HRM responsibility to ensure safe working conditions and promote employee well-being.

Role of Manager – Planner

Sets objectives and develops strategies to achieve organizational goals.

Role of Manager – Coordinator

Aligns people and resources to accomplish planned activities efficiently.

Role of Manager – Auditor

Monitors and evaluates processes, ensuring compliance with standards and policies.

Role of Manager – Facilitator

Supports teams, removes obstacles, and fosters effective collaboration.

Factor: Size of Organization

Larger employee numbers increase the need for a formal HR department.

Factor: Unionization

Presence of trade unions influences HR structure and practices.

Internal Environmental Factors

Mission, regulations, resources, physical assets, and culture affecting HRM decisions.

External Environmental Factors

Labor market, unions, economy, society, government, and technology that shape HRM.

Globalization (HR Challenge)

Worldwide integration requiring HR to manage diverse, geographically dispersed workforces.

Technological Change (HR Challenge)

Rapid tech advancements demanding reskilling and new HR systems.

Workforce Diversity

Presence of employees with varied cultures, races, genders, ages, abilities, and beliefs.

Element of Diversity – Culture, Race, Ethnicity

Distinct backgrounds and traditions employees bring to the workplace.

Element of Diversity – Disability

Inclusion of employees with physical or mental impairments.

Element of Diversity – Gender

Representation and equitable treatment of all gender identities.

Importance of Diversity

Acceptance of differences, full potential realization, mutual respect, enhanced reputation, and reduced conflict.