Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers.
Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.
In this assignment, we have provided 2 interviews and 1 Internet research to support our research. Throughout the assignment, we have discussed multiple ways to present the research.
The findings will consist of 2 Interviews and 1 Internet research. The 3 research discussed about the challenges of HRM.
We had also provided recommendation for the research.
In this assignment, our group has conducted two interviews with two different companies and Internet research.
We had interviewed an ALL IT HYPERMARKET Human Resource Officer and a HSBC Executive HR Officer. During the interview the source preferred to have no photos to be taken and no recording. However, we do manage to obtained business cards and e-mail interactions as evidence.
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To further enhance and support our claims, we had done researched on a website dedicated to Human Resource management. To further specify our general claims, from the website, we took the Top 5 Human Resource Challenges of 2010 and an article written by a prominent Managing Director for Lee Hecht Harrison Singapore.
Furthermore, we also took Microsoft's Human Resource management article as one for one of our research,
To understand the challenges of Human Resource Management in every organization.
To learn how to solve Human Resource Management issues in the near future.
To learn more about the real working environment of Human Resource.
To understand more about employees behavior towards the company.
To understand the importance and role of Human Resource.
Findings: Interviewing with ALL IT
Laura Chee have been working in ALL IT for 2 years as a Human Resource Officer. We took this opportunity to interview her regarding the challenges of Human Resource Management. This interview took about 45 minutes.
Sometimes, workers are late for work, absenteeism, and excessive emergency leave. If this kind of situation continues happen, the company can be unproductive. Therefore, Human Resource Department is the one who apprehend the problem.
There are many type of peoples in this world, not all of them will easily take advices to stop doing the mistake. Some of them are stubborn and Human Resource Department seems cease to exist in their mind. They may continue to do the mistakes like late for work, always absent for work, and excessive emergency leave.
Furthermore, they always think of a very good excuse for their mistakes. As a professional in Human Resource Department, I find it hard to determine whether its' true or false. If Human Resource Department took action against dishonest candidates, they will not repent. If Human Resource Department ignore this kind of problems, the top level management will blame the Human Resource Department for not handling the job in the right way.
Shortages due resignation and Expansion of New branches
There are several industries that had a high turnover rate for workers, especially IT Industries. In IT Industries, the business is too competitive. Workers actually put the salary figure as first priority. They aim for those companies which offer high salary. Resulting, the employee to be working in this company for this month and on the next month you will be seeing them working in another company.
High turnover rates will constantly make the company suffers lack of manpower. Human Resource Department will have to come with a solution quick to cope with this issue. Especially in IT Line, if there were never enough of sales person in the sales floor. The company will lose many customers.
Human Resource Department cannot simply employ people to solve the problem. If a Purchasing Manager is going to resign, Human Resource Department will not simply employ any people to replace the designated post. They will have to go through a lot of process to spot a candidate who has more sales or purchasing experience. However, it is not easy to get a right person to the right job.
Always on Time
Marked to Standard
If a company planned to open new branch, Human Resource Department will plan and think necessary positions that must have in the new branch. Moreover, for certain position. Human Resource Department had difficulty deciding whether they should offer promotion to the veteran staffs or employing an experience new candidate to handle the new store. For example, a new branch will be opening next month, Human Resource Department employ an outsider to be a Floor Manager in the branch. What will happen to the existing senior staffs that have done a lot of work? They will feel unfair and lost the motivation to continue work in this company again. And most of the new candidates require time to get familiar to get the job done.
Some of them cannot perform very well because of different environment. There is also no guarantee that a senior staff can handle the job well. If any mistake happened, Human Resource Department have to take responsibility for their poor decision making. It is our responsibility to fit the right people into the right job.
Human Resource Department had difficulty matching the right job for candidates. For example, a candidate possessing a Degree in Information Technology applied for cashier job. On the other hand, a candidate who have Degree in Engineering applying job as a Sales Executive.
By right, jobs should match with the candidates' qualification. Candidate with a Degree in Engineering qualification should be applying for jobs like technician, engineering or relevant job for that field. Not only does the Job Specification do not match, but the salary became one of the challenges for Human Resource Department. High qualification candidates always expect higher salary.
For an example, a company offer a Managerial position for RM3500, but candidates will write the expected salary around RM4000. It makes us very difficult to decide are they qualified for that figure. Human Resource Department will pay according to the experience and education level of the person. For example, a person with only SPM qualification salary goes to around RM1200, with Degree qualification RM3000 and so on. This kind of situation involve acceptance of both party and the terms and conditions.
Government Law / Rules
Employment Act or Labour Law is also one of the challenges for Human Resource Department. As a Human Resource professional, one must know their law. For example, termination of a fellow employee must be done in a mandatorily step by step rule. According to the Labour Law, Termination can only happen if there is a valid reason, if not, the law will not protect the company and it will face charges.
There are so many Law and Act for Human Resource Management, it is difficult to really master all of them, Income Tax (PCB deduction) changes almost every year. Human Resource Department need to be always updated. They have to change the payroll system setting with the latest PCB Deduction when they are do salary with payroll system. Same goes for the situation regarding EPF and Socso Contribution rate. Now EPF contribution rate are 8% or 11 % deduction from salary.
This also one of the important event that human resource department need to know. If not the employee will feel unfair that they will go to report to EPF Department, the company will go against with it.
Rules Regarding Foreign Workers
Some companies employ foreign workers especially from Myanmar and Vietnam to work in their company. Human Resource department must know which type of job fitting the foreign workers can work in. Not all foreign workers can be a cashier or a sales assistant, depending on which field they chose. Currently, all foreign workers are subject to only job agencies if they wanted to apply work. No walk-in interviews are allowed anymore.
This has cause the company a great amount of time to employ a foreign worker thru agency unless they are close with them.
Laura Chee (personal communication. 1 October, 2010)
Findings: Interview with Rinnie Hassan HSBC
An interview with Rinnie Hassan, Assistant Manager HR of HSBC Amanah Takaful (Malaysia) Sdn. Bhd.
Rinnie Hassan's Job description involved all aspect of HR. For example, recruitment, training, compensation, implementation and establishment of HR Policy and Staff Event Organizing. Due to lack of time, we only manage to conduct the interview for not more than twenty minutes.
Retention of good employees (Managing Talents)
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"Good employees are marketable and other employers are providing high expectation to attract them. " - Rinnie Hassan
In order for good and talented employees to remain in the company, they were given benefits, increments and increase in annual leave by the company. According to Rinnie, employees will keep seeking opportunities and better working environment as long as they are fit to work.
Headhunting is a common threat faced by Rinnie, if a company has a good capacity of funds and good environment compare to our company or it suits the employee. It will be hard for Rinnie to retain them and to negotiate.
"There are various ways; the more efficient way is where you run the candidate through an assessment."
It is always difficult for us to spot potential candidates. But the best way is through an assessment, this method will be able to give how knowledgeable or how the person handle the matter. Assessment will also be able to measure how well a person can communicate and their literacy level.
Employees Dishonesty and Misconduct
"Yes. Depends on case to case basis and based on the outcome of the investigation."
If we caught the employee red handed, it depends on the nature of the case. Investigation will determine whether the employee will have a chance to further continue working in the company. Depend on the nature of the cases, we will offer the employee to either resign or giving him/her a demotion.
Upcoming Culture Trends (Forecast issue)
"They general lack commitment and patience to advance the career path in one organization."
Generation Y people tends to need more motivation from superiors and seniors. In terms of capacity and initiative, they need more guidance compared to older Generation. Generally, most of them, Generation Y do not like to contribute more for the company like working overtime, working on weekends and lunchtime.
However, this is not always as accurate and it also varies from individuals.
"The advantange is that you are in the position to know the company's performance and employee performance at all times."
Dealing with first hand information allows you to manage the impact of the information. Conveying the message plays a big role, fail to convey the meaning will lead to unwanted effects. For example, if the company is not doing well, human resource will have to convey the message for the employees. Same goes for the employees, if they caused any trouble or they have any other issues regarding the company. We will handle them personally to solve their problems on behalf of the company.
Rinnie Hassan (personal communication. 30 September , 2010)
Findings: Internet Research
Challenges Associated with E-Recruitment
The challenges faced by organizations in implementing e-recruitment have included problems with the technology and difficulties in tailoring e-recruitment systems to meet the particular needs of their recruitment process such as problems with having to simultaneously operate both online and offline systems, and a lack of integration of e-recruitment systems and existing HR systems.
(Institute for employment studies, 2006)
There are some groups of people take the advantages of E-recruitment to do a scam. For example:
BP E-RECRUITMENT FRAUDS
BP has announced that there have been many reports about various individuals and organizations are contacting people offering false employment opportunities in BP. The frauds usually took place through online services such as bogus websites, or through unsolicited e-mails claiming to be from BP. Recruitment fraud is a sophisticated fraud offering fictitious job opportunities which makes it difficult for BP to detect the perpetrators. This issue makes people not to trust or belief in e-recruitment methods due to many cases of frauds and forgery taking place.
( British Petroleum ,1999)
TOP 5 HR Challenges for 2010
Cost control will be a corporate-wide priority in 2010, but there will be added pressure on HR to manage budgets through process and policy standardization. HR must consider cost-efficient solutions in areas such as compensation and benefits and training programmers.
The planned elimination of jobs ("head count").
Contracting outside the organization to have work done that formerly was done by internal employees.
The business practice of sending jobs to other countries.
Challenges of Downsizing
Downsizing of Ssangyong Motor factory
Ssangyong Motor factory in Pyeongtaek, Gyeonggi Province has layed of laid off 36 percent of its work force, or 2,646 employees in a bid to survive the global economic turmoil which lead to a riot of thousands of people which caused one of the factory to be burned ,due to the riot the organization has lost 183.2 million dollars in production .Should the deadlock continue, Knowledge Economy Minister Lee Youn-ho said Ssangyong will have no choice but to file for bankruptcy. "Ssangyong executives and associates believe that if assembly lines fail to resume operating this month, the automaker's bankruptcy will be inevitable," Lee said. "
(The Korean Times)
Case happened above, show that after HRM have done the laid off process in the company but the workers that have been laid off have felt unsatisfied then they make demonstration and cause the factory burned which make the company lost 183.2 million dollar. It show that how difficulty that HRM do lay off and it may bring the bad consequence of the action.
Out sourcing is also a great method for containing the company cost. For example outsourcing is someone who works in a company has a part time employee , The person who is outsourced by the company will only received his contract basis salary with no other privileges like bonuses ,allowance, or medical benefits, this method is proven to be very effective to save a lot of the organizations money.
(Key Media Pty Ltd, 2010)
Challenges of Outsourcing
Dell outsourced its computer support operations to India and had set up major call center operations in cities like Bangalore and Chennai. But the company has received many complaints in terms of bad customer services along with rude comments and bad accents. This has lead the Dell outsourcing unit to rethink its strategies regarding utility outsourcing call center Dell outsourcing is a live example of how things can go wrong in an outsourcing contract if things are not planned out properly.
Case above show that challenge or issue have been face by DELL ,after DELL have outsourcing their major call center in India, which the outsourcer companies are not performing very good in the customer service such as received a lot of complaints. This brings bad image to the Dell organization. This make HRM Of Dell have to rethink the suitable partner to be outsourcing and they also have to create a new company policies to prevent this incident happen again.
Challenges of Off shoring
Staffing and training faced by Walt Disney Company
Before Euro Disneyland opened the Walt Disney Company built offices in Marne-la-VallÅ½e in order to recruit their Cast Members. There has been many challenges faced by the human resource department in training and staffing their employees such as their European employees, for an example the language barrier, the largest challenge Euro Disneyland encountered was implanting a "have a nice day" mentality and teaching 12,000 European employees to smile the "Disney smile" all day. The French employees especially had difficulty following the company's policy such as the dress code known to Cast Members as the "Disney Look". The French employees also had difficult adapting or learning the American culture or life style.
(T.R. Shaw ,1996)
One of the main problems in work place diversity is discrimination within employees and company. Different age group has different way of thinking and solving problems which may cause problems and misunderstanding between employees with different age groups which may affect the efficiency of the company in their productivity rate.
(Key Media Pty Ltd, 2010)
Challenges of Globalization
According to the news "GE lawyer sues company for gender discrimination" Ms Schaefer, 43, charged GE, the world's second-largest company by market capitalization, with gender discrimination. Her suit also names 13 GE officers and directors, including chairman and chief executive Jeff Immelt. Ms Schaefer's suit, which is seeking class-action status, seeks $US500million ($A608million) in damages (salary rate and promote priority based on gender)for a class of about 1500 to 1700 GE female executives and lawyers, according to her lawyer, David Sanford.
Some organization offer attendance allowance to encourage the staff not late for work. Example, my previous company have offered the staff attendance allowance to the staff. Let RM100 as the attendance allowance. Rule is who the staff late more than three times for work, the attendance allowance will be forfeit. This issue will be reduced to the minimum because for those worker will keep the RM100 as a big amount for allowance. They can easily get the allowance for just only not late for work.
Some organization offers to the staffs an incentive for those staff have not take MC Leave or excessive emergency leave within a year. Let RM500 as the incentive. This issue will be reduced to the minimum because for those worker will keep the RM500 as a big amount for allowance. They can easily get the allowance for just only not absent for work.
For those are poor in attendance or always excessive in Emergency should have a counselling by Human Resource Department. Human Resource Officer should find out what is the real reason for the staff doing this kind of mistakes. Then, the officer can solve the problem easily. If they still make the same mistake again, then officer should start legal action with the Warning Letter.
2) Managing Changes
Shortages due Resignation or Expansion of the new branches
In my opinion, the officer should give the chance to senior staffs to be promoted to higher position. Example, an organization open a new branch, senior staff should be selected to handle the high position in the new branch. Compared a new person to handle the position, for sure senior staff have a lot of experience to solve the issue will be happen when the branch start for business. If senior staff not capability to handle the job position in the new branch, Human Resource officer should give them training to make sure they are in the right way to achieve the company goal.
Human resource officer should concern about reason for resignation of the staffs. Sometime, the problem is come from company itself or the staff problem. Example, a capability staff is resign because other company are offer higher salary to the staff. Human Resource officer should discuss with top management to retain the capability staff.
3) Recruitment Issue
Human Resource Department should keep update about salary rate in current market. Example, Current Salary For Engineering is around RM4000. Human Resource Department should offer this amount of salary to the people who apply this position. It can be prevent any disagreement of them, then human resource need to do recruitment again. It waste the time. Human Resource Department should learn how to be talent in job fitting when employ a new staff with the qualification that they have. It is very important that it will affect the company performance.
4) Government Law.
Human Resource department officer should update themselves by getting know the latest employment Act. Or labour law. They can go to human resource training course. They also can get from newspaper. Or they can refer to lawyer or even labour department itself. It can prevent any unhappy event happen between the employee and the organization itself.
To avoid e-recruitment frauds BP and other major organization should educate the people how to detect false e-recruitment for an example the perpetrators will often ask recipients to complete bogus recruitment documentation, such as application forms, terms and conditions of employment or visa forms. The BP name and logo is often featured on the documentation without authority. BP and other companies should standardize its e- recruitment through its official web site only
6) Managing Talent
Many companies should learn how to maintain their company staff after a retrenchment because retrenchment provides a demoralizing effect towards the organizations staff which may lead to the drop of the companies productivity rate. Organizations who does not care about this matter may result in big losses in the near future . There are many ways to over come this problem such as provide motivation and rewarding methods.
7) Containing Cost
Companies like Ssanyong motors and other companies has well must do a proper research or provide a good strategy before downsizing or lay off their workers so that it will avoid from doing demonstrations or starting a riot. Provide a good compensation such like vss or mss to their workers so that both parties will not be affected so much and also explain the reason to the staff why are they being lay of so that they have a better understanding of the situation and possible help them or recommend them a new job in different companies.
Companies like dell and other major corporations must do a proper research on the person who they are out sourcing so that they are capable or qualified for doing that job or else their out sourcing strategy may not work or back fire.
Companies like Walt Disney corporations and other major corporations must do a proper research on the person who they are about to offshore , so that the person who they are about to off shore is easy to train and easy to adapt to the company policies . if the organization does not carry out a proper research the whole off shoring strategy may back fire or may be ineffective
Every organization must learn to solve its problem in work place diversity such as discrimination within employees and the organization must not take sides or ignore this problem or else the organization may loose its efficiency in its productivity due to staffs not working together or the misunderstanding issues among staffs. To solve work place diversity in gender issue problems in organizations, there is many methods to solve it such as Encourage mentoring opportunities. Train older employees to guide the younger employees and many other team building or motivation activities should be carried out so it can eliminate the generation gap issue in an organization.
9) Generation Forecast Issue
HSBC have shown us they do study about the current generation. Not only the upcoming generation is technology driven, they are also quite less passionate compared to the previous generation. We would like to recommend HSBC to study more about the upcoming generation as they only changes from technological environments and influential from other generation.
In conclusion, every organization's Human Resource Management faces different challenges. Each of them have different priorities to solve and to focus on. It depends on what are the companies' policies or stratagems to solve upcoming challenges.
ALL IT & HSBC Human resource challenges are original take from interview transform to the word form.
Laura Chee (personal communication. 1 October, 2010)
Rennie Hassan (personal communication. 30 September , 2010)
Benefit and challenge of E-Recruitment are cited from below link:
(Institute for employment studies, 2006)
Recited from http://www.employment-studies.co.uk/pubs/summary.php?id=pas0806
Cost Contaning are summaries cited from below link:
(Key Media Pty Ltd, 2010)
Recited from http://www.hrmasia.com/resources/strategic-hr/top-5-hr-challenges-for-2010/39421
Globalization (Workplace Diversity) challenges information is recited from below link:
(Key Media Pty Ltd, 2010)
Recited from http://www.hrmasia.com/resources/diversity/working-with-all-ages/48714
Human Resource Management meaning are partially recited from below link:
Recited from http://en.wikipedia.org/wiki/Human_resource_management
BP E-recruitment Fraud is recited from:
( British Petroleum ,1999)
Downsizing on Ssangyong Motor factory are recited from below link:
(The Korean Times, 2009)
Outsourcing Dell call center in India that has many complaints is recited from below link:
Off shoring challenges faced by Walt Disney Company is recited from below link:
Globalization challenge faced by general electric company is recited from below link:
(Canberra Times, 2007)