Chapter 1 Notes – Introduction to Human Resource Management

Vision & Context

• Oxford University Press (Asia Education) positions SJ Learning as a platform for “leading innovation in education,” emphasising empowerment and transformative impact.
• Chapter focus: “Introduction to Human Resource Management (HRM)”—sets the intellectual foundation for subsequent HR‐related modules in hospitality and general business programmes.
• HRM is treated not merely as an administrative task but as a strategic, integrative, and change-catalysing discipline.

1.0 Introduction (Strategic View of HRM)

• HRM frames people as the organisation’s most critical assets—"human capital" and "intellectual assets."
• Encompasses ideas, expertise, and resources that staff contribute toward organisational goals.
• Implies a holistic perspective: knowledge + skills + attitudes + resources → sustainable competitive advantage.
• Reflects strategic management: aligning HR practices with long-term vision, mission, and business objectives.

1.1 Definition of HRM

• Multi-layered definition (synthesised):
  • “The process of managing human capital and intellectual assets to achieve organisational objectives through an integrated set of philosophy, policies, programmes, practices, and decisions.”
  • Covers planning, organising, directing, and controlling the phases of procurement, development, compensation, integration, maintenance, and separation.
  • Ultimately, it is the design and execution of systems to attract, develop, and retain a high-performing workforce.
• Significance:
  • Connects micro-level (individual employee experience) to macro-level (organisational competitiveness).
  • Recognises HRM as both operational (day-to-day) and strategic (long-term positioning).
  • Provides a formalised lens for ethical stewardship of people‐related decisions (e.g., fairness, compliance, well-being).

1.2 Background / Historical Evolution

• 1890\text{s}–1920\text{s}: Industrial Revolution
  • Emphasis on mechanisation, mass production, and administrative control of labour (time & motion studies, wage rules).
• 1930\text{s}–1950\text{s}: Human Relations Approach
  • Triggered by Hawthorne studies; motivation, morale, and informal groups recognised as productivity drivers.
• 1950\text{s}–2020: Recent Developments
  • Rise of strategic HRM, information technology, globalisation, knowledge work, diversity & inclusion.
• Take-away: HRM evolved from transactional record-keeping to a strategic partner shaping organisational culture and advantage.

1.3 Purpose of HRM

• Recruit suitable employees—ensuring person–job & person–organisation fit.
• Provide appropriate training—bridging skill gaps, facilitating continuous learning.
• Design & maintain appraisal schemes—setting measurable KPIs, fostering feedback culture.
• Establish compensation & reward systems—motivation, internal equity, external competitiveness.
• Safeguard employee health & safety—compliance + moral duty.
• Manage employer–trade-union relations—collective bargaining, dispute resolution.
• Ensure compliance with employment laws—mitigating legal risk.
• Maintain employee records—data-driven decision-making, legal documentation.

1.4 Structure of HRM Function (Contingent on Firm Size)

• Insight: Scalability—as complexity of workforce increases, functional specialisation deepens.

1.5 Importance of HRM

1. Establish efficient HR systems via technology (HRIS, analytics).
2. Effective employee management—performance, engagement, culture.
3. Influence & increase commitment—psychological contract fulfilment.
4. Facilitate competitive advantage—through unique human capital difficult for competitors to imitate.

1.6 HRM vs. Personnel Management (PM)

• Note: PM is a subset/historical precursor; HRM adds strategic, developmental, and culture-shaping layers.

1.7 Inter-relationship: HRM, HR Planning, HR Development

• Human Resource Planning (HRP) = \text{Workforce Planning}
  • “Systematic process of matching the internal & external supply of people to job openings over a specific period.”
  • Steps: demand forecasting → supply analysis → gap analysis → action plans (recruit, train, outsource).
• Human Resource Development (HRD)
  • Training, career development, organisational development interventions.
• HRM encompasses both HRP and HRD, providing strategic umbrella.

1.8 Role of Malaysian Ministry of Human Resources (MoHR)

• Policy-making: set national labour policies in line with socioeconomic goals.
• Drafting & amending legislation: Employment Act, Industrial Relations Act, etc.
• Enforcement: labour inspections, prosecution of non-compliance.
• Codes of Practice: guidelines on sexual harassment, OSH, flexible work.
• Stakeholder facilitation: tripartite dialogues (government, employers, unions).

1.9 Core HRM Functions

1. Staffing
   • Job Analysis → HR Planning → Recruitment & Selection.
2. Training & Development
   • Orientation, upskilling, leadership programmes.
3. Performance Appraisal
   • Continuous feedback, formal reviews.
4. Compensation Management
   • Base pay, incentives, benefits, equity reviews.
5. Industrial Relations
   • Collective bargaining, grievance handling.
6. Safety & Health
   • Risk assessments, wellness initiatives, statutory compliance.

1.10 Role of Manager (Line/Functional)

• Planner: Workforce forecasts, succession mapping.
• Coordinator: Align departmental goals with HR policies.
• Auditor: Monitor adherence to standards, KPIs.
• Medium (Communicator): Liaison between employees and top management/HR.
• Facilitator: Nurture team learning, resolve conflicts, mentor.

1.11 Factors Determining Need for a Formal HR Department

1. Size of organisation—larger headcount needs formal HR.
2. Unionisation level—collective bargaining complexity.
3. Ownership structure—MNCs vs. family business (compliance breadth).
4. Top management philosophy—people-centric vs. cost-centric leadership.

1.12 Environmental Factors Influencing HRM

• Internal:
  1. Mission
  2. Regulation (internal policies)
  3. Resources
  4. Physical facilities
  5. Culture
  6. Technology
• External:
  1. Labour workforce demographics
  2. Worker unions
  3. Economy
  4. Society (values, expectations)
  5. Government & law

1.13 Key Challenges in Contemporary HRM

1. Globalisation—cross-border teams, cultural integration.
2. Technological change—automation, AI, remote work.
3. Managing change—agility, change management frameworks (Kotter).
4. HR development—lifelong learning culture.
5. Market reaction—talent wars, employer branding.
6. Cost reduction—outsourcing, lean staffing.
7. Economic climate—recession vs. growth cycles.
8. Legal system—increasing regulation (gig worker rights, data privacy).

1.14 Emerging Issues in HRM

1. Workforce diversity—inclusive policies.
2. Age distribution—multi-generation teams (Gen Z to Baby Boomers).
3. Employee rights—whistle-blower protections, data privacy.
4. Work–life balance—flexitime, remote options.
5. Personal issues—mental health, substance abuse.
6. Higher education levels—expectations of autonomy, meaningful work.
7. Women & dual-income families—childcare, parental leave policies.
8. Attitude change toward work—gig mindset, purpose orientation.

1.15 Elements of Diversity in the Hospitality Workplace

• Culture, Race, Ethnicity—multicultural guest & employee base.
• Disability—accessible workplaces, reasonable accommodations.
• Religious/Spiritual Beliefs—prayer rooms, dietary considerations.
• Gender—equity in leadership roles.
• Intersex—inclusive health benefits.
• Generational—training adjusted to learning styles (e.g., micro-learning for Gen Z).

1.16 Importance / Benefits of Diversity in Hospitality

1. Acceptance of individual differences—enhances service authenticity.
2. Unlocks full employee potential—higher engagement → better guest satisfaction → stronger brand reputation.
3. Mutual respect—reduces workplace conflicts, fosters teamwork.
4. Conflict reduction & resolution—inclusive culture acts as preventive mechanism; diverse teams show higher creativity in problem solving.

• Broader implication: Diversity is not just moral but a business imperative—aligns with global clientele expectations and drives competitive differentiation.

Integrative Take-Aways & Ethical/Practical Implications

• Strategic alignment: HRM must be woven into corporate strategy; people decisions affect innovation, customer experience, and financial results.
• Ethics & compliance: Beyond lawfulness, HR should champion fairness, dignity, and psychological safety.
• Technology & analytics: Data-driven HR can predict turnover, tailor learning paths, and enhance equity monitoring.
• Sustainability: People sustainability (well-being, employability) is a critical pillar of ESG (Environmental, Social, Governance) reporting.
• Continuous adaptation: Global crises (e.g., pandemics) underscore need for agile HR policies (remote work, health protocols).
• Managerial partnership: Line managers are frontline executors of HR strategy—necessitating HR literacy across leadership tiers.
• Hospitality context: High guest interaction makes employee attitude and cultural competence direct determinants of service quality; hence HRM practices must emphasise emotional labour support and diversity management.