Professional Documents
Culture Documents
BDPB2103
Introductory Human Resource Management
Topic 5 Selection 67
5.1 Selection: Match Individuals to Jobs 68
5.2 Selection Process 68
5.3 Screening Applicants 70
5.4 Preliminary Interview 70
5.5 Selection Tests 72
5.6 Types of Selection Tests 74
5.6.1 Cognitive Competency Test 74
5.6.2 Psychomotor Competency Test 74
5.6.3 Job Knowledge Test 74
5.6.4 Job Simulation (Work Sample Test) 75
5.6.5 Situational Test 75
INTRODUCTION
BDPB2103 Introductory Human Resource Management is one of the courses
offered by the OUM Business School at Open University Malaysia (OUM). This
course is worth 3 credit hours and should be covered over 15 weeks.
COURSE AUDIENCE
This is a core course for all learners undertaking Diploma in Management and
Diploma in Human Resources Management.
STUDY SCHEDULE
It is a standard OUM practice that learners accumulate 40 study hours for every
credit hour. As such, for a three-credit hour course, you are expected to spend
120 study hours. Table 1 gives an estimation of how the 120 study hours could be
accumulated.
Study
Study Activities
Hours
Briefly go through the course content and participate in initial discussion 3
Study the module 60
Attend 3 to 5 tutorial sessions 10
Online participation 12
Revision 15
Assignment(s), Test(s) and Examination(s) 20
TOTAL STUDY HOURS ACCUMULATED 120
COURSE OUTCOMES
By the end of this course, you should be able to:
COURSE SYNOPSIS
This course is divided into 10 topics. The synopsis for each topic can be listed as
follows:
Topic 2 explains job analysis and its significance to an organisation. We will then
identify the types of information required for job analyses and how these are
carried out. This topic also focuses discussions on the use of job analysis
information in the preparation of job descriptions and specifications.
Topic 3 will introduce human resource planning and discuss its importance
along with its processes. This will be followed by an explanation of the methods
that are used to forecast the demand and supply of human resources. At the end
of this topic, we will examine ways to achieve a balance between the demand and
supply of human resources.
Topic 5 describes how an organisation selects the most qualified individual for a
specific job. We will identify why the selection process is vital in the acquisition
of human resources, as well as the steps involved in the selection process.
Subsequently, we will discuss selection tests that can help in the selection
process, as well as the fundamental concepts of selection tests such as the concept
of validation and reliability. We will also examine methods of conducting
interviews and the types of interviews that can be employed, as well as problems
that relate to adopting interviews as a selection tool. The topic concludes with a
discussion on carrying out background and reference checks on applicants.
Topic 6 explains the training and development process. We will discover how to
identify the requirements of training and development programmes for
employees and ways in which a specific programme can be effectively
implemented. The design and evaluation of training and development
programmes are also discussed.
Topic 7 will focus on performance appraisal programmes, which are one of the
tools that can help maintain and increase an organisationÊs productivity, as well
as help achieve strategic objectives.
Learning Outcomes: This section refers to what you should achieve after you
have completely covered a topic. As you go through each topic, you should
frequently refer to these learning outcomes. By doing this, you can continuously
gauge your understanding of the topic.
Summary: You will find this component at the end of each topic. This component
helps you to recap the whole topic. By going through the summary, you should
be able to gauge your knowledge retention level. Should you find points in the
summary that you do not fully understand, it would be a good idea for you to
revisit the details in the module.
Key Terms: This component can be found at the end of each topic. You should go
through this component to remind yourself of important terms or jargon used
throughout the module. Should you find terms here that you are not able to
explain, you should look for the terms in the module.
PRIOR KNOWLEDGE
Learners of this course are required to pass the BDPP1103 Introductory
Management course.
ASSESSMENT METHOD
Please refer to myINSPIRE.
REFERENCES
Main Textbook:
Additional Reading:
Bohlander, G. W., Snell, S., & Sherman, A. (2009). Managing human resource
(15th ed.). Mason, OH: Thompson South-Western.
Dessler, G. (2007). Human resource management (11th ed.). Upper Saddle River,
NJ: Prentice Hall.
INTRODUCTION
Can you imagine an organisation without employees, supervisors, managers or
executives? Is it not weird? Without humans, an organisation cannot exist. In
order to form an organisation, a group of people must work together towards
achieving common objectives. An efficient and successful organisation is able to
combine the capabilities, knowledge and skills of individuals in the organisation.
Topic 1 explains the definition of human resource management and the functions
of the management of human resources. Subsequently, this topic also outlines the
relationship between the functions. You will also discover how the internal
environment influences the functions of human resource management.
SELF-CHECK 1.1
(b) Recruitment
Recruitment is the process of attracting individuals who are qualified and
encouraging individuals to apply for employment in an organisation. Prior
to beginning the search for qualified employees, the organisation must be
aware of the job specifications needed to fill the position. Job specification is
a statement that outlines the knowledge, skills and capabilities that must be
possessed by an individual in order to perform the job. Aside from job
specifications, managers and supervisors also require a job description to
select and match an employee to a job. A job description is an account that
outlines the duties and responsibilities of a job. Recruitment will be
discussed further in Topic 4.
(c) Selection
Selection is a process of choosing a suitable individual from a pool of
applicants to fill a vacancy. Effective selection objectives include matching
the characteristics of an individual ă capability, experience and academic
qualifications ă with the requirements of the job. The managementÊs failure
to find a suitable match can affect the future performance and job
satisfaction of the employee. The selection process can be considered most
difficult for a manager and this will be discussed in-depth in Topic 5.
ACTIVITY 1.1
(a) Orientation
Orientation is a formal process aimed at familiarising new employees with
their jobs, regulations, the organisationÊs objectives and introducing them to
their colleagues. New employees are required to attend the orientation
programme sponsored by the organisation. This is important in
familiarising the employee with the job in the organisation.
ACTIVITY 1.2
In your opinion, why must an employer train its employees? Search for
further information on employee training on the Internet.
(a) Wages
Money in the form of „Ringgit‰ and „Cents‰ received by an individual for
carrying out a task.
(b) Benefits
A monetary reward apart from the basic salary, such as annual leave, sick
leave and insurance.
(c) Incentives
A reward given to motivate employees. For example, sales incentives in the
form of commissions or holiday vouchers that are given for achieving sales
targets. Other types of incentives include performance bonuses, attendance
bonuses and rewards for excellent service.
ACTIVITY 1.3
Figure 1.3: The external environment that influences human resource management
(a) Economy
A countryÊs economic condition is an environmental factor that has a big
influence on human resource management. Generally, the economic climate
will determine the demand and supply of employees. During economic
depression, more candidates will apply for jobs and therefore organisations
have a larger labour market to choose from.
ACTIVITY 1.4
(b) Technology
Technology changes at such a rapid pace. One of the most challenging
aspects of human resource management is to train and develop employees
so that they can keep up with the steady advancement of technology. With
changes in technology, certain skills will become redundant and in fact,
employees will be required to acquire new abilities like an enhanced
knowledge of computer applications and an enhanced understanding of
technological information and the communication of the information.
(c) Consumers
Consumers represent those who use the products and services of an
organisation which are a part of the organisationÊs external environment.
Because sales are important for the existence of any organisation, the
management must ensure that the work practices of employees do not offend
consumers. Consumers will always demand goods and services of high
quality. Consumers who fail to acquire their expected services or goods will
cease dealing with the organisation. Therefore, the organisationÊs workforce
must be able to provide services and goods of high quality. These
circumstances directly correlate with the skills, qualifications and motivation
of employees in an organisation.
(d) Competition
A firm will face stiff competition in the production and labour markets. There
are always other firms that produce similar goods or services. Therefore, a
firm must have skilled employees if it desires to survive, grow and succeed.
A firm must ensure that it is able to acquire and retain a sufficient workforce
in various fields in order to compete effectively. Employees have high
mobilityand may choose to move on to other firms, especially during an
inflated economic climate. To encourage qualified employees to stay on at an
organisation, the management must adopt a suitable human resource policy,
a remuneration scheme that is competitive or better than that of its
competitorsÊ, a safe and healthy work environment and continuing on with
staff development efforts to provide employees with newer skills.
(e) Shareholders
Shareholders are the owners of a corporation. They are people who invest
in a firm or corporation. As such, they will often challenge the decisions
made by the management. Management may be required to explain the
effectiveness of a programme and its impact on the organisationÊs expenses,
revenues and profits. Shareholders also have the right to inquire into how
budgeting decisions such as these can increase revenue or reduce costs.
Therefore, the management must be prepared to explain the efficacy of a
programme from the perspective of its benefits and economic costs.
Figure 1.4: The internal factors that influence human resource management
It also includes occupational safety and health and industrial relations, which
refers to the interaction of employees (either individually or represented by
trade unions) with the management.
Industrial relations also include disciplinary actions and carrying out these
procedures against an employee who has defied the rules of the organisation.
All functions of human resource management are interlinked.
1. Read each statement carefully. Then, match each statement with the
terminology given below. Write the letters that represent the correct
terminology in the given space.
Answers Statement
The process of attracting, training and organising a talented
and effective workforce.
The process of attracting qualified individuals and
encouraging them to apply for jobs in the organisation.
The formal process to familiarise new employees with their
responsibilities, rules, the objectives of an organisation and
to introduce them to co-workers.
Wages, benefits and incentives received by employees as
they agree to be employed by the organisation.
Activities that give the opportunity to acquire and improve
job skills.
A statement that outlines the responsibilities of a job.
(a) Remuneration
(c) Orientation
(f) Recruitment
2. Fill in the blanks for each statement by selecting a suitable answer from
those given in the box.
INTRODUCTION
This topic focuses on job analysis, a detailed description of the tasks involved in a
job and the quality of human resource such as the level of skill and knowledge
required to do the job. Human Resource Executives are responsible for
supervising and documenting changes in individual work content. We will
discuss why job analysis is an important tool for managers and why it is the basis
of existence for other human resource programmes.
SELF-CHECK 2.1
(a) What is the physical and mental work that needs to be carried out by an
employee?
(c) What knowledge, skills and abilities should a jobholder have in order to
carry out the job?
(d) What are the environment and job conditions needed for the job to be
carried out?
(e) What are the necessary expectations needed to carry out the job?
Figure 2.1: The process of job analysis and the relationship between job analysis and
human resource management
(a) Recruitment
Employee recruitment in an organisation must be done systematically. The
process will become chaotic if the recruitment officer is ignorant to the job
qualifications required to perform a job in a given vacancy. As a job
analysis contains information such as types of skills, knowledge and the
abilities required to accomplish a job, hence job descriptions and
specifications may be used to determine the type of individual that should
be recruited for employment.
(b) Selection
An organisation wanting to select employees for open positions, needs
good planning. A comprehensive job analysis may help a Human Resource
Manager match an individual to the most suitable job, by means of skills,
knowledge and ability of the individual.
(e) Remuneration
Job analysis information may be used to compare relative contribution
values of a job against the overall performance of the organisation. In terms
of remuneration payouts, the relative value of a job must be informed
before the job is evaluated in financial terms. Generally, the more important
the tasks and responsibilities of a job, the more valuable the job is. A job
that requires additional knowledge, skill and abilities should be more
valuable to an organisation.
ACTIVITY 2.1
How will job analyses help the human resources management functions
of your organisation? Discuss your thoughts in the myINSPIRE forum.
There is also a job analysis system that identifies the standard of work to be
achieved. Sometimes work measures are performed to decide the time frame to
accomplish a job. The job analyst also studies the details of the job such as work
schedules, financial and non-financial incentives and the physical work
environment. As a job is normally performed together with other jobs, therefore
social and organisational context must be taken into consideration. Education,
training and working experience related to a job must also be identified.
A large organisation might have more than one job analyst but in a small
organisation this will be the responsibility of the supervisor. There are also
organisations that use external consultants to conduct a job analysis. Regardless
of the methods employed, the job analyst must know the work in-depth before
conducting the job analysis. The job analyst must study the organisational charts
or interview the individuals who are knowledgeable in the job to be analysed.
(a) Interview
Job analysis data may be obtained from three types of interviews, which are
individual interviews with each employee, group interviews with a group
of employees doing the same type of work or interviews with one or more
supervisors who are familiar with the job that is being analysed.
In an interview, the job analyst may question the employees and managers
about the job being studied. Normally, the job analyst will interview the
employees and help them describe their work. Then, he or she will
communicate with the employeesÊ supervisor to obtain further information
or to check the accuracy of the information received from the employees or
to seek clarification.
(b) Questionnaire
A job analyst could also get information about a job by distributing
questionnaires to be answered by the jobholders and their manager or
supervisors. The form is used to get information about their duties and
responsibilities, the purpose of performing the job, physical conditions and
other needs to perform the job (such as educational skills, physical and
mental requirements), tools and materials to be used and specific issues
related to safety and health when performing the job.
Although it is a fast and cost effective method, there are times when the
written skills of an employee interviewed is poor and this affects the
effectiveness of the method.
There may also be employees who have the tendency to exaggerate the
importance of their duties by stating additional responsibilities than the
actual job requirements.
(c) Observation
A job analyst can also learn about a job by observing and recording the
daily activities of employees performing the job. This method is used to
obtain information on manual workers, such as machine operators. It helps
the job analyst to identify the relationship between the physical and mental
duties required for the job. However, the observation method alone is not
enough to conduct a job analysis, especially if mental skills is a major part
of the job. For example, we may observe an accountant and obtain little
information about the needs or requirements of his or her job.
(iv) Work context ă social and physical context while performing a job.
For example, a job analyst who studies the work of a librarian may ask him
or her to describe his or her job based on the daily work activities, the tools
or equipment used. The librarian may describe his or her work as follows:
„I help the clients to solve their problems in finding books, magazines and
other resources in the library. I also give information to help them to find
materials in the library. To perform my duties, sometimes I have to search
for the materials or refer the clients to someone who can help them. There
are also individuals who need training on the use of library materials or
special facilities in the library. To perform my task, I also use computers
and various reference books.‰
After collecting the job data, a job analyst will write a separate statement of
duties representing important work activities. For the librarian, a work
statement of duties might read like this, „Listening and solving problems
related to finding library materials.‰ Very often, a job analyst will note down
five or ten important job statements for each job that is being studied. This
results in a clear job statement, which is complete and easily understood by
individuals who know nothing about the job. The critical incident approach
is an important method in job analysis because it trains the job analyst to
focus on employee behaviours that are important to the success of a job.
ACTIVITY 2.2
A job description should be relevant and accurate. It should contain a brief and
complete statement on the job to be performed, how to perform the job and the
working atmosphere. There is no standard format for a job description, hence,
there are differences among organisations in terms of format and content.
However, many job descriptions contain three parts: job position, introduction to
the job and job duties. Figure 2.3 shows a sample of a job description for the post
of Human Resource Officer.
The content of a job description depends on its intended use. Let us now examine
the components that can be found in a job description.
A job title must also show the position of the jobholder in an organisational
structure. For example, from the description „senior engineer,‰ we know
that the rank is higher than that of „engineer.‰
This section will provide guidelines to the types of training that will be
made available to the employee. It is also the basis for performance
appraisal. Jobs constantly undergo changes. The scope of work widens and
the duties become more complicated. Therefore, the final duties that are
shown in a job description normally look like this:
This phrase is used to avoid problems with employees who refuse to carry
out other duties that are not stated in the job list in their job descriptions. It
should be noted that the duties and responsibilities that are listed must be
clear and precise. Otherwise, the job description cannot be used for training
and performance appraisals.
Job descriptions are important to employees. It helps them to learn about their
job and remind them of the results that are expected of them.
(a) A poorly written job description that uses ambiguous terminologies cannot
be used as a guideline by an employee.
(b) A job description is not updated when there are changes in job duties and
specifications.
(c) Sometimes, a job description contravenes with the law because it contains
specifications that are not related to the work. For example, in a job
description for the post of a secretary, there is a statement that says „The
position should be held by a young beautiful lady‰.
(d) The job description limits the activities that could be done by a jobholder.
This will reduce the flexibility of the organisation.
A manager may find the writing of a job description a difficult task and this may
interfere with their other managerial responsibilities and duties. There are
computer software packages to simplify this. There are many types of software
packages that may be obtained from Human Resource Management journals
such as HR Magazine, Personnel and Workforce.
Items that are usually found in a job specification are educational requirements,
experiences, personal characteristics and physical abilities. In terms of work
practices, job specification is one of the main components in a job description.
Information contained in a job specification is important in the recruitment and
selection process. It provides the recruitment officer with a guideline to evaluate
the suitability of a candidate for the post.
After a job has been analysed and a job description has been written, it will be
scrutinised by the employees with their supervisors to ensure that it is accurate,
clear and understandable. One of the advantages of doing this is that employees
will then readily accept the job description.
SELF-CHECK 2.2
Based on your understanding, what are the skills required for the post
of a human resource officer?
1. What is meant by the statement „A job analysis is the most basic human
resource management tool‰?
(g) In a job description, the departmentÊs location, to whom the job holder
should report and the date of the analysis conducted are found in the
______________.
(h) An analyst will usually use the ______________ method when many
employees do the same work.
INTRODUCTION
An organisation must determine the goals and objectives it hopes to achieve. For
example, does an organisation want to expand its operations to capture a bigger
market or does it want to manufacture goods to give the highest returns on its
investments?
After an organisation has decided on the action to be taken and charts its course,
it becomes the responsibility of the top management to equip the organisation
with the necessary resources in order to succeed. Recruiting suitable individuals,
determining the number of employees needed and when they are needed are
important processes. Only detailed planning can guarantee an organisationÊs
success in achieving its goals.
We will begin this topic by discussing the reasons for carrying out human
resource planning. Subsequently, we will describe the process of human resource
planning and the methods of forecasting the demand and supply of human
resources. Finally, we will observe methods to reach a balance between the
demand and supply of human resources.
ACTIVITY 3.1
Human resource planning not only fulfils the need for human resources but also
determines how to effectively resolve future demands and supplies in the
provision of human resources. Therefore, the planning for human resources
depends on the size of an organisation, the business that is conducted, the
operational systems, the organisational culture and the extent of planning by the
organisation.
Today, the labour force in Malaysia does not only consist of the local population
but also of workers from Pakistan, Indonesia, Bangladesh, Australia, Europe and
the US. These big changes in the composition of the labour force causes managers
to be more involved in human resource planning because the changes that occur
do not only involve the recruitment of employees but also the methods of
employee selection, training, remuneration and motivation.
Apart from these, good human resource planning may avoid the shortage or
surplus of labour force. For example, a department that is terminating its
employee should discuss with other department in the organisation if they need
these employees.
Without proper planning for human resources, it would be also quite difficult for
an employee to chart his or her career plans or individual development. This may
result in capable and ambitious employees moving to other firms.
SELF-CHECK 3.1
Forecasting the demand for human resources involves deciding on the quantity
and types of employees required, according to the level of skills and areas
that require them. This forecast will reflect various factors like production
programmes and productivity changes. Frequent environmental changes also
influence demand.
When an organisation has forecasted the need for human resources, it has to
determine whether there is an adequate number and the category of employees
to fill the expected vacancies. Hence, the manager of human resources must look
at both internal and external resources. When the need and demand for human
resources have been identified, an organisation may then determine whether
there is a surplus or lack of employees. If an organisation has a surplus of
employees, a solution must be found to reduce and limit the number of
employees. Among the methods that may be taken by an organisation in doing
this includes reducing working hours, early retirement, retrenchment and the
downsizing of the organisation. If a scarcity of employees is expected, an
organisation must get the exact number of quantity and quality workers in such
circumstances. Recruitments and selections should be done from outside the
organisation.
In the following section, we will observe the methods used to forecast the
demand for human resources.
(ii) A historical trend about the relationship of the index and the number
of employees required must be obtained;
(iii) The productivity of a worker for five years should be calculated. This
is measured by dividing the amount of sales with the number of
workers; and
* Forecast
ACTIVITY 3.2
Using your own words, explain the meaning of forecasting the demand
for human resources. Provide examples of the methods used by
companies in forecasting this demand. Discuss and check your answers
with your tutor and coursemates in the myINSPIRE forum.
SELF-CHECK 3.2
Compare the differences of the three methods of forecasting the
demands for human resources:
(a) The employees in the organisation do not possess the skills and knowledge
required by the organisation;
There are many useful statistics such as the demographic area of the population,
the profile of the industry and the job profile that can be obtained from the
annual report of the Statistics Department, The Ministry of Human Resources.
Organisations in Malaysia that need information such as the forecasted levels of
demand and supply of human resources across industries in different countries,
states and districts may refer to the Federal Manufacturers of Malaysia (FMM).
Sources for the supply of employees from outside an organisation will be further
discussed in the next topic.
Figure 3.3: Steps to achieve balance between the demand and supply of human resources
Human resource planning is a systematic process that studies the need for
human resources to ensure that the number of employees with the required
skills are readily available when needed.
Supply of labour means workers with the required skills are readily available
to fill the labour demand of an organisation.
Demand for labour refers to the number of workers needed in the future by
an organisation.
Internal environmental factors that may influence the forecast of demand and
supply of human resources include the demand for productivity and service,
organisational financial resources, an organisationÊs growth and
organisational philosophy.
Fill in the blanks for each of the following statement with an appropriate answer.
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Define recruitment and sources of recruitment;
2. Discuss the choices available to an organisation other than
employee recruitment;
3. Describe the recruitment process;
4. Explain internal recruitment methods; and
5. Identify the advantages and disadvantages of internal and external
recruitment methods.
INTRODUCTION
In Topic 3, we saw how human resource planning is done. In this topic, we will
discuss employee recruitment. When an organisation has to conduct a
recruitment process, it should know where to find qualified candidates and how
to attract them to apply for jobs in the organisation.
Recruitment is also an important process because any error in the process may
result in an increase in employee turnover and training costs and time wastage in
training new employees who may eventually quit. It is also difficult to terminate
an employee whose work performance is unsatisfactory. Thus, finding qualified
candidates to apply for vacancies in an organisation is very crucial when the
organisation needs employees.
Before an organisation carries out the recruitment process, job descriptions and
job specifications must be prepared (refer to Topic 2 for explanations of these).
Do you remember what is meant by a job description and a job specification? A
job description contains information on the duties, functions and responsibilities
of a job and job specification contains information on the qualifications, skills and
the level of education required to perform the job. Job descriptions and job
specifications may provide results only after a job analysis is performed. Job
descriptions help a human resource manager to know the duties of particular
jobs while job specifications tell us the types of candidates that are most suitable
for jobs. After identifying the job and the qualifications required for it, the task of
finding a qualified individual capable of performing the job becomes very
structured and simple.
A new organisation that has just started operations or acquired a huge business
contract needs to acquire quickly and simultaneously a large number of
employees at all levels. Therefore, it has to carry out external recruitment
processes. Alternatively, it might transfer employees from other departments or
promote qualified employees to fill the vacancies.
However, some organisations use methods other than recruitment to meet their
needs. We will study these options in the following subtopic.
ACTIVITY 4.1
An organisation will avoid carrying out recruitment for the need of human
resources unless it arises only during a specific period. For example, a
supermarket may need additional employees during a sale and festive seasons.
When a supermarket recruits employees for that period, the employees will be
terminated after the period is over. The costs involved are the recruitment costs
and lay-off remuneration payments. This also gives the company a bad image.
Hence, how can this problem be solved?
ACTIVITY 4.2
The next step involves the human resource officer determining from the
recruitment sources whether a qualified employee is available.
(b) Whether the Skills and Knowledge Required could Be Attained from
Within an Organisation
If a future employee with skills may be attained from within an
organisation, the recruitment process may be done from within. If not, an
external recruitment has to be done by the organisation.
ACTIVITY 4.3
(a) To fill a vacancy left by an individual who moves or has been promoted;
(b) To acquire skills that are not possessed by the companyÊs employees;
(c) To acquire new ideas and employ employees from various backgrounds;
and
(f) Customers
A customer who knows an organisation well, including its services and
products may be an innovative source of recruitment. These customers who
are satisfied and happy with the service or products of the organisation
may bring enthusiasm to the workplace compared to individuals who have
lesser knowledge of the organisation. Customers are also people who use
the companyÊs products or services. As such, they can provide valuable
information as to how the organisation may improve further.
In this section, we will examine the recruitment methods suitable for internal and
external recruitment sources.
(i) To avoid employees from saying that they are not aware of the job
vacancy until the post has been filled;
However, this method has some disadvantages. The computer based job-
announcement system and job bidding is costly and time consuming. When
an applicant fails to get the job, he or she must be given an explanation as to
why he or she has been rejected. If due attention is not given to ensure that
the most qualified employee is chosen for the position, other employees
may begin to distrust the organisation.
The private sector normally opts for newspapers. One of the advantages of
doing this is that it gives a wider coverage because of the circulation and
the cost is low. However, the advertising method has some disadvantages.
Among them is that non-qualified candidates may apply for a vacancy. This
complicates the selection process and could result in unsuitable candidates
being chosen.
Organisations can also use radio, journals and billboards to advertise their
job vacancies. For example, if an organisation is looking for a manager of
human resource, they may place an advertisement in the MIHRM journal
(Malaysian Institute of Human Resource Management). Some organisations
advertise their job vacancies through radio.
(d) Unsolicited
An organisation with a reputation of being a good place to work will
receive applications from individuals searching for jobs. If there is no
vacancy at that time, their applications will be filed and reviewed when
there is a suitable vacancy in the future.
The recruitment method used depends on the labour market and the
position of the job vacancy in an organisation. In a tight labour market, an
organisation may have to use a combination of methods to attract qualified
candidates. For example, an organisation may have to advertise, use job
recommenders and get the service of employment agencies to fill the need
of the labour force. However, during an economic downturn, with a high
level of unemployment, many individuals will be looking for jobs. During
this time, an organisation might not have to use creative recruitment
methods to fill the needs of its workforce.
Management inventory;
2. Fill in the blank for each statement by selecting an appropriate answer from
those given in the box:
(d) ______________ are places where you can get qualified individuals.
INTRODUCTION
So far, we have discussed how a company may estimate the number of
employees it requires through human resource planning and the methods of
attracting candidates to apply for vacancies in an organisation. In this topic, we
will discuss how an organisation selects the best individual for a job.
We will begin this topic by discussing what selection is and why selecting a
candidate is important. Then, we will examine each step in the selection process.
We will also discuss the types of selection tests. Finally, we will discuss the types
and methods of interviews that may be used and the reasons why background
and reference checks are carried out.
Indirectly, the image and good name of a company will be compromised and
tarnished when a new employee is terminated due to his or her unsuitability in
performing the job required. The selection process is also important because
recruiting employees who are not qualified will cause a high turnover of staff
and this will hamper the operations of an organisation. Besides these, if an
organisation has a large number of employees who are mediocre or
underachievers, the organisation will not succeed even though there is in place a
good organisational plan, a perfect structure and tight organisational control.
SELF-CHECK 5.1
The number of steps and its sequence in the selection process is not only different
among organisations but also among the types and job levels to be filled. For
example to fill the position of a manager, a candidate may be required to sit for a
selection interview and attend several levels of interviews to evaluate his or her
suitability. Apart from these, a detailed background check will be done to
confirm his or her experience and capability. For the post of a clerk, a candidate
might be required to undergo only a short interview and a typing skill test. For a
production worker, the selection process is very brief and is done in an open
interview.
In the sections that follow, we will discuss in detail the levels of the selection
process.
Even if candidates have submitted their curriculum vitae, they still have to fill in
an application form during the preliminary interview. Most companies require
candidates to fill in the application form because it is a fast and systematic way of
getting information from candidates. An application form usually contains the
post applied for, date of application, personal biodata, academic qualifications,
working experience and other information such as whether the applicant has
been convicted of a crime or ever sent to prison and references.
(b) To test the ability of a candidate to spell, write clearly and answer questions
correctly. Handwriting is said to reflect the character of an individual and
also proves essential in the selection process;
(a) Standardisation
Standardisation refers to the uniformity in conditions and procedures while
administrating a test. A performance comparison test done on candidates
must be fair throughout and all candidates must take the test in same or
almost similar conditions. For example, instructions and time allocated
must be consistent and under the same physical environment. When a
candidate takes the test in a noisy room and other candidates do it in a
quiet atmosphere, different results will be obtained. This difference may
influence their performance.
(b) Objectivity
Objectivity in a test may be attained if all interviewers give the same scores
or marks for the same test. Multiple choice and true-false questionnaires are
said to be objective because they only provide one correct answer for each
question. An individual who sits for an objective test chooses either a right
or wrong answer.
(c) Norm
Norm is a reference to compare the performance of each individual. It
reflects the distribution of marks obtained by other individuals who were
tested.
(d) Reliability
Another important characteristic of a selection test is reliability. Reliability
refers to how far the selection gives the same or fixed results when
repeated. In other words, if an individual takes a test in January and once
again in March, the results obtained must be the same. Even when there is a
disparity, it should be caused by different conditions and candidates who
sat for the test and not because the test is faulty.
A test given to the same individual within a gap of a few days which shows
various results is considered to be unreliable. A selection test may only be
used when the result is reliable.
(e) Validity
A validation test answers the question „Does this test measure what it is
supposed to measure?‰ In staff selection, validity refers to how far a test
forecasts the future work performances of a candidate. In job testing, there
are three methods to validate a selection test; criterion based validation,
content validation and conduct validation.
(ii) A test is said to have content validation if it contains duties and skills
required for a particular job. It is a method of validation where a
candidate is asked to perform a particular duty in a job. For example,
a typing test for candidates who apply for the post of a clerk is a test
that has content validation.
(a) Intelligence test (IQ test) is a test that measures general intellectual
competency. It does not only measure oneÊs intelligence competency but
also skills like memory and skills with numbers and vocabulary. This test is
an excellent performance predictor for a large number of occupations.
(b) Intelligence tendency test or specific cognitive test measures specific mental
abilities such as inductive and deductive reasoning, oral comprehension,
memory and skill with numbers. A specific cognitive test is also known as
an intelligence tendency test because it measures oneÊs intelligence
tendency towards a job. For example, a candidate who applies for a job as a
teacher in the public sector is required to take an intelligence tendency test
to determine whether he or she possesses the intelligence tendency to
become a teacher.
A situational test is the most difficult test to evaluate and use. It is expensive to
design and only qualified testers can evaluate the test. An expert must analyse
the reaction of a candidate and summarise his or her conduct. The use of this test
in the selection process depends on the assumption that there is a relationship
between the conduct that may be measured with the success of performing a job.
Although the forecast validity for a situational test is low, a better forecast on
oneÊs job performance may be obtained if it is used together with a cognitive
competency test.
there are any important characteristics that will enable him or her to perform the
job successfully. The interview may be conducted by a member of a workgroup
or another person, depending on the type of job offered. Although the
effectiveness of an interview is not certain, it is still a popular method employed
as a selection tool because:
(b) It is believed that the personality and ability of a person can be evaluated
by meeting and talking to him or her; and
ACTIVITY 5.1
(i) Situational questions, these are the questions that try to get the
candidateÊs reaction towards a specific work situation. Example: „You
are loading the car and are ready to go for a holiday with your family
when you realise you have an appointment with a client that
morning, what would you do?‰
(ii) Job knowledge questions which evaluate whether a candidate has the
basic knowledge required to perform a job.
ACTIVITY 5.2
ACTIVITY 5.3
Provide types of jobs and suitable times for carrying out computer
based interviews. Check your answer with your tutor in the class or on
the myINSPIRE forum.
For the purpose of reference and background checks, candidates are required to
give a reference that may give further information about them.
If background checks are done thoroughly, it can reduce high turnover rates,
white-collar crimes and theft by employees. Thus, by doing a background check,
an organisation can get valuable information on the conduct and habit of a
candidate.
A company can also verify the accuracy of the information by giving a candidate
a polygraph test with the aim of confirming or rejecting the information given.
Polygraph tests or a lie detector measures changes in repository, blood pressure
and pulse of the individual being questioned. An examiner will pose some
questions and a candidate should either answer yes or no. Questions asked cover
various topics such as whether he or she is a drug addict, has he or she ever
stolen anything from employers or whether he or she has ever committed a
serious crime without being detected. However, the polygraph test is not widely
used as a selection tool in organisations in Malaysia.
ACTIVITY 5.4
Once the results of the job offer have been determined, the next step in the
selection process requires a candidate to go through a medical examination. A job
offer usually depends on the results of the medical examination. This is the last
step in the selection process because it incurs high cost.
There are few reasons why a medical examination is done. It is not only used to
determine whether a candidate passes the physical requirements of the position
but also to detect any medical limitations that should be taken into consideration
in the placement of the candidate. It is also a record and basis of a candidateÊs
health for insurance purposes or insurance remuneration claims. Apart from that,
it may also be used to identify health problems, to reduce absenteeism and to
detect illnesses unknown to the candidate. A candidate is required to undergo
medical examination at the companyÊs panel clinic.
ACTIVITY 5.5
Selection is the process of choosing the most suitable individual from a group
of candidates applying for a job in an organisation.
1. Read each statement carefully. Then, match them to the terminology given.
Write the letters that represent the correct answer in the given space.
Answer Statement
A frequently used method by job seekers to show their
qualifications.
A process to choose the most suitable candidate from a
pool of candidates for a vacancy in an organisation.
A selection test criteria that refers to the uniformity in
condition and procedure of the selection.
An important selection test attribute that refers to how far
the selection test gives the same or consistent results when
repeated.
An important selection test attribute that refers to how
good the test accurately forecasts the future work
performance of a candidate.
A test that measures an individualÊs skills to learn and
carry out a job.
A selection test designed to measure a candidateÊs skill in
understanding a job.
A selection test that measures the strength, movement-
adaptation and agility of a candidate.
(b) Validity
(c) Trustworthiness
(f) Standardisation
(g) Selection
Interview
(f) One of the factors that may reduce the effectiveness of an interview
is the _________________ where an interviewer allows the
characteristics of an individual to influence his or her overall
perception of a candidate.
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Describe employee training and development;
2. Determine the advantages of training and who needs training;
3. Discuss the methodological approach in organising employee
training and development programmes;
4. Identify the steps in the training needs analysis; and
5. Illustrate the types of training programmes.
INTRODUCTION
Each employee in an organisation needs continuous training to remain qualified
or to prepare themselves with new work practices. We will begin this topic by
discussing the definition and scope of training and development and the
importance of training and development to an organisation. This topic also
discusses how to carry out staff training and development programmes. We will
end the discussion on staff training and development by outlining the training
programmes that can be carried out by an organisation.
SELF-CHECK 6.1
(b) Development.
ACTIVITY 6.1
ACTIVITY 6.2
Training and development should not be conducted on the basis that „it appears
to be a good thing‰ or without considering whether the employee needs it.
Essentially, it is not wise to secure a training and development programme for an
employee who does not need it as it will result in the dissatisfaction of the
employee. A participant who is not happy might cause trouble during the
training programme. For example, his or her refusal to cooperate will make other
participants lose focus and will result in the overall ineffectiveness of the training
programme.
ACTIVITY 6.3
Most of the steps in the training needs analysis are ordinary steps. However,
it is one of the most effective problem-solving methods. It should be understood
that not all problems can be resolved through training and development
programmes. For example, an employee facing a personal problem should be
referred to the counselling division and not to the training and development
team.
ACTIVITY 6.4
Draw a flow chart that shows the steps in a training needs analysis.
After answering these two questions, the rest of the issues will subsequently fall
into place.
SELF-CHECK 6.2
List two advantages and two disadvantages of conducting a training
during working hours.
Advantages Disadvantages
(d) Trainees
The satisfaction of trainees that receive the training differs from one person
to another. It depends on the level of his or her previous training. The
number of trainees has to be considered. Some methods are suitable for
individual training and some for teamwork training.
There are also delayed benefits. Promotions are given to those who
have successfully gone through several levels of courses, but
remember that empty promises should be kept to a minimum. If a
training is not intended to lead to a promotion, employees should not
be given the impression that it will.
(iii) Feedback
Trainers should provide feedback to trainees as to whether they have
learnt what they should know. The more feedback they receive, the
better they can improve their performance.
ACTIVITY 6.5
In your opinion, what are the principles that should be taken into
account when conducting a learning programme for adults? Search e-
books on adult learning principles for further knowledge on this then
discuss with your coursemates.
ACTIVITY 6.6
One of the factors that may result in a successful training programme is
the attitude of the facilitator. List down and explain four important
features required from a trainer.
1. ____________________ 3. ____________________
2. ____________________ 4. ____________________
(a) What are the Reactions of Trainees towards the Training Programme
The trainer will ask for feedback from trainees about their feelings towards
the training module. Questionnaires are distributed to seek opinions about
the delivery of the trainer, the atmosphere of the venue and the
effectiveness of the material. To obtain a fair feedback, trainees are not
required to write their names and answer questions that require open
feedback. Most of the time, useful feedback and criticism will be received.
(c) What Behavioural Differences Can be Seen in Trainees After the Training?
Department Managers should know the types of training that trainees have
received. The manager must work closely with the trainer to make sure
what is learned is practised at work. It is important to note the behavioural
or skill differences after the training programme.
Trainers may use various methods when conducting the programme, taking
into consideration financial allocations, trainerÊs skills, objectives of the
programme, trainees and learning principles.
Terminal behaviour
Training needs analysis
1. Assume that you are a supervisor of a group of workers and their duties are
to assemble radios. You discover that the quality of the assembling is low
and many of the radios that were assembled have been returned. Your
manager told you, „You must train your workers better‰.
(a) What are the „staff‰ factors that have contributed to this problem?
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Explain performance appraisal, its process and application;
2. Describe the approaches and methods involved in performance
appraisals; and
3. Discuss the problems related to performance appraisals.
INTRODUCTION
In the previous topics, we discussed several effective methods in hiring and
developing excellent employees. However, having talented employees is not
enough. A successful organisation must also drive its employees to achieve
beneficial goals, not only for the organisation but also for themselves. In this
topic, we will discuss performance appraisal, which is one of the methods that
may be used to maintain and raise productivity by helping an organisation to
achieve its goals.
We will begin this topic by defining the meaning of performance appraisal and
its functions. Then, we will discuss the performance appraisal process, its
effective features and who should conduct a performance appraisal. We will end
the topic with a discussion on the methods in conducting a performance
appraisal and the related problems.
ACTIVITY 7.1
A manager is responsible not only for maintaining and improving his or her
performance level but also the performance of others. A manager must be aware
that a performance appraisal provides an overall view of the work undertaken. It
is a continuous process and not just a process that happens annually.
ACTIVITY 7.2
ACTIVITY 7.3
(c) Standardisation
Standardisation means that an employee and supervisor in a job category
must be appraised using the same instruments. The appraisal should be
done frequently and the evaluation period should be the same period for all
employees. When a performance appraisal is carried out, it must be
formally documented and employees must sign their appraisals. If an
employee refuses to do so, action can be taken by the manager.
SELF-CHECK 7.1
If the appraisal is done by a supervisor, his or her superior will revise the
appraisal that has been done. This is to reduce unfairness in the appraisal.
Usually, the comments by a supervisorÊs superior are more objective and
give a wider scope to the employeeÊs performance as compared to the
appraisal by the supervisor.
(iii) Employees with a low rating may want to take revenge on their
colleagues; and
(c) Self-appraisal
Sometimes an employee is asked to appraise himself or herself. Self-
appraisal is usually done by an employee being appraised by filling in an
appraisal form before the performance interview. It is a useful method if a
supervisor wants the employee to participate in the performance appraisal
process. It also allows the employee to think about his or her strengths and
This method is also suitable when managers and employees work together
to determine performance goals or employeesÊ development programmes.
One of its weaknesses is that individuals who appraise themselves tend to
be more lenient than a manager and will have the tendency to give
themselves a higher appraisal. Therefore, self-appraisal is more suitable for
staff development rather than to make managerial decisions.
ACTIVITY 7.4
(a) Salesperson
(b) Photocopier Technician
(c) Manager of Human Resource
(d) Lecturer
In this method, various levels of performance are shown in one scale and
are described in terms of an employeeÊs work behaviour. A sample of a
Behavioural Anchored Rating Scale is given in Table 7.1. In this table, you
will see a scale to evaluate performance, from „very good‰ to „very poor‰
(for value 1 to 5). Each value in the scale corresponds to a critical incident
and this helps to describe what is meant by „very good‰ or „very poor‰
performance.
Copyright © Open University Malaysia (OUM)
TOPIC 7 PERFORMANCE APPRAISAL 115
One of the most important skills to be a human resource officer is the ability to
understand and define company policies. This skill is related to the ability of a human
resource officer to use his or her knowledge in advising other managers on company
policies, assisting in the recruitment process and updating the companyÊs policies.
In schools, forced distribution means that not all students will achieve an
„A‰ and the performance is evaluated in relation to other studentsÊ
performances.
ACTIVITY 7.5
There are appraisers who are too strict when conducting a performance
appraisal. As a result, the employeeÊs performance is pictured as lower than
his or her actual performance.
Problems of the process include: lack of objectivity, the halo effect, personal
bias, leniency or strictness, central tendency and recent behaviour bias.
1. Alia, one of your employees, has been working for one year in the
company. Time has come for you as a manager to evaluate her
performance. Alia is a good employee, her work is efficient. Her work was
good until this morning when she scolded a major customer of your
company. Then, she left without giving any explanation. You observed the
incident but did not say a word. The next day, Alia returned but did not say
anything about yesterdayÊs incident. You now come to the „behaviour‰
section of the performance appraisal form. How will you fill it in?
2. Fill in the blank for each statement by selecting an appropriate answer from
those given in the box:
(d) In this method ______________ a supervisor will keep a log that lists
down incidents or employeeÊs good or bad behaviour that are related
to his or her work.
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Explain the types of remunerations and remuneration equity
concepts;
2. Relate the features of effective remuneration;
3. Describe the principles of job evaluation;
4. Differentiate between remuneration, benefit and incentive; and
5. Explain the types of benefits and incentives in organisations.
INTRODUCTION
Pay, benefits and incentives are important to any employee. It may be true that
an individual will not work unless there is remuneration for doing the job. The
Human Resource Department plays an important role in formulating and
ensuring that the distribution of wages is fair, labour cost is controlled and
employeesÊ salaries are comparable with their competitorsÊ salaries for the same
job. However, some organisations face many choices in terms of the polices and
salary practises that can be used. Therefore, the biggest challenge for top
management is to choose the most suitable practices and policies for the
company. We will begin this topic by defining what is meant by remuneration
and workersÊ equity. Then we will observe the features of an effective
remuneration. This will be followed by the principles in determining pay. We
will also discuss the types of benefits and statutory benefits. Finally, we will
discuss the types of benefits used by an organisation in giving incentives to
employees.
(a) Pay
Pay is basic remuneration received by an employee in an organisation after
a certain period of service, comprising monthly pay or wages (normally
paid per hour). Usually, payment is made fortnightly or at the end of a
month.
(b) Incentive
Incentive is a reward given to qualified and excellent workers. For example,
an annual bonus, expenses for trips abroad, sales commission and
Excellence Service Award.
(c) Benefit
Benefit is all types of rewards, monetary and non-monetary, given to
employees. Examples of benefits include employeesÊ insurance, leave,
employersÊ contributions to the Employees Provident Fund (EPF), health
protection and other benefits as per the Employment Act 1955.
SELF-CHECK 8.1
ACTIVITY 8.1
External equity exists when an organisation pays the same wages as other
organisations for the same type of job. A remuneration policy is said to achieve
an internal equity when the employees in an organisation believe that the pay
rate they receive for the work done is almost similar to the value of the work in
the organisation. Individual equity is how far the pay rate distributed to certain
individuals in an organisation reflects the merits of the individual.
One of the weaknesses of the system is that it only shows the relative
importance of a job and not the differences that exist among jobs. As the
system is very easy to use, it is suitable for small organisations.
Although this method is easy to use, it is less accurate than the point system
method and factor comparison system which have more thorough job
evaluation systems.
The main advantage of this method is that it is a finer basis for comparison
than the job rating system and the job classification system. Therefore, its
result is valid and difficult to manipulate.
Job evaluation is a technique that determines the relative value of a job. You
have to remember that job evaluation is done internally and does not take
into consideration the wage scale in the market or what is done by other
organisations. Job evaluation only focuses on the value of duties that covers
a job and not the individuals who perform the job. To achieve external
equity, companies will conduct pay or wage surveys.
ACTIVITY 8.2
Employers use a wage survey in three ways. First, survey data is used to give
pricing to a benchmark job. Benchmark jobs are well known jobs in an
organisation and in the industry. They represent the whole job structure. It is also
a job that has the largest concentration of labour usage. Secondly, most
employers pay remunerations that are normally paid by other companies for the
same types of jobs, based on official and non-official surveys. Finally, the survey
also gathers employeesÊ benefits information like insurance, medical leave and
other types of leave to be the basis for decisions on employeeÊs benefits.
Performance based pay can be practised for individual employees, work groups
and the entire organisation. The performance for these three levels and group of
employees is normally stated in the performance appraisal. The performance
appraisal data will provide information for approaches like merit pay, variable
pay, skill based pay and competency based pay. Among the performance based
pay is merit pay, which is a pay raise given to employees based on their
performance level as shown in their performance appraisal. Variable pay is a
performance based remuneration. The type of variable pay normally given is
bonus, which is a payment made once a year. Another performance based pay is
skill based pay, a method of payment for employees based on their skills and
knowledge. Competency based pay is a kind of remuneration given to employees
with a high level of skill.
ACTIVITY 8.3
8.5 BENEFITS
We will now look at the benefits given to employees by employers. Benefit is an
important part of an employeeÊs pay and can be defined as all types of financial
and non-financial benefits received by an employee who works in an
organisation. Benefits given to an employee include gazetted leave, insurance,
education and health benefits. Benefit is different from incentive. Benefit is not
related to employeesÊ productivity. Therefore, it does not function as a
motivational factor to improve performance. Most benefits are given on the
discretion of the employer but there are also compulsory benefits given by
employers according to the law. Compulsory benefits under the law is known as
statutory benefits. This includes the Employment Act, EPF Act and the Social
Safety Act.
There are a few ways to classify benefits. Benefits can be divided into two ă
statutory benefits and non-statutory benefits.
(b) SOCSO
The government compensates employees who have been involved in
accidents while working, who contract long illnesses or are paralysed. This
benefit is provided through the Workers Social Safety Act 1969. Under this
Act, all employers are required to register with SOCSO. Employers are also
responsible to pay contributions and benefits to the party who makes a
claim. As with the EPF payment, employees and employers make SOCSO
contributions although the employer is responsible to deliver the money to
the association.
(i) Medical benefits for those who are injured while working;
(iii) Benefits for the dependants of the employee who died due to injuries
while working;
Section 60D of the Workers Act states that all workers protected under this
Act are entitled to gazetted paid leave in a year. These includes the:
Employers and employees can agree upon four other public holidays. In
terms of health benefits, employees are entitled to weekly rest days and
annual leave. Section 60E of the Employment Act states that the entitlement
of paid annual leave is as follows:
(i) For service less than two years ă eight days a year;
(ii) For service between two to five years ă 12 days a year; and
(c) Insurance
Employers can take life insurance and group insurance policies on behalf of
employees. Some organisations extend the protection to cover employeesÊ
families. Usually, an organisation that offers this scheme will pay half the
yearly premium for insurance that is taken by the employees for their
family members.
(d) Allowances
Employees may be given allowances such as travel allowance or for
transportation, food allowance, housing allowance, relocation allowance
and festival allowance.
ACTIVITY 8.4
Read from your textbook on Companywide Plans. It gives the definition of the
Scanlon Plan and its differences with a profit sharing plan.
Remuneration for workers refers to all forms of pay and rewards paid by an
employer to its employees. This includes monetary and non-monetary
rewards including: pay, benefits and incentive.
Equity is an important factor in determining pay rate and there are types:
internal equity, external equity and individual equity.
A wage survey determines the range of pay for each grade in three ways: to
give pricing to a benchmark job, employers pay remunerations that are
normally paid by other companies to gather employeesÊ benefits information.
Statutory benefits ensure that employees are able to support themselves after
retirement or in case of an accident and include contribution to EPF and
SOCSO, maternity leave and gazetted leave. Non-statutory benefits include
gazetted paid leave, health care, insurance, allowances and education
facilities and repayment.
1. Fill in the blank for each statement by selecting an appropriate answer from
those given in the box:
(c) The ______________ method rates a job according to its relative value
in an organisation.
2. Read each statement carefully. Then, match each statement with the
terminology given. Write the letters that represent the correct answer in the
given space in the table.
(c) Class
(f) Incentives
INTRODUCTION
Generally, the cost of accidents is high. It can affect productivity and give an
organisation a bad name, it involves rehabilitation costs, the cost incurred by
employees and the legal action taken under current acts.
Accidents also cause suffering and financial burden to employeesÊ families. The
misfortune of accidents not only befall an individual and organisation but the
country that suffers from a substantial loss can obstruct the economic
development of the country. If organisations can reduce accident rates and
improve the quality of workplace conditions, this will indirectly:
(d) Reduce the payment for compensation and other claims; and
ACTIVITY 9.1
This Act provides a legal framework to develop, stimulate and encourage a high
level of workersÊ health and safety at the workplace. This Act improves the
present health and safety legislation especially those covered by the Factories and
Machinery Act, 1967.
The main aim of this Act is to increase awareness and foster a culture of health
and safety among workers in Malaysia. The main principle of this Act is to
determine the health and safety of the workplace and to place responsibility on
parties who create workplace risks, as well as those who are at risk while
working. It also concedes that the biggest problem in improving the level of
health and safety at a workplace is the negative attitude and indifference on the
part of employers and employees. This Act ensures that all the parties involved,
especially employers and employees are responsible in preparing and
maintaining a safe and healthy workplace. Five regulations were established
under this Act:
OSHA covers all sectors and industries except the Armed Forces and workers in
the shipping industry who have their own rules and acts. Its application covers
issues on workplace, machines and equipment, materials, power generation,
processing, safety apparel, starting up instruments and equipment management.
ACTIVITY 9.2
In your opinion, what are the reasons that encouraged the development
of the Occupational Safety and Health Act, 1994. Discuss with your
coursemates.
(a) Provide and operate a factory and a safe working system without any risk
to health;
(b) Arrange the measures to be taken to ensure safety and health in using,
operating, storing and transporting materials to the factory;
(d) Facilitate a safe workplace without risk to health including the entry and
exit to the workplace; and
(e) Provide and facilitate a safe and risk-free work environment, with adequate
facilities for the employeesÊ welfare.
Under OSHA, certain organisations are required to appoint health and safety
officers who are qualified and recognised by the government. This includes
shipping, gas, chemical, timber and cement industries that have more than 100
workers, the manufacturing sector that has more than 500 workers and the
building and engineering sectors that have more than 20 million workers.
Employers who have more than 40 workers are required to form a Workers
Safety and Health Committee in their organisations. The function of the
committee is to help in formulating systems and health safety at the workplace,
to study the effectiveness of programmes that are carried out, to make
suggestions on any changes to improve conditions and to carry out inspections
every three months.
(a) To give appropriate attention while working to guarantee the safety and
health of himself or herself and others;
(b) To cooperate with employers or others in fulfilling obligations under the
Act or regulation;
(c) To wear or use any safety and health equipment or personal protective
clothing provided by the employer; and
(d) To abide by any instructions or workersÊ safety and health steps required
by the employer, the Act or the regulation.
(a) Ensure that the factory and materials are safe and without risk to health
when used appropriately;
(b) Carry out and conduct required tests and checks in the factory;
(c) Prepare information on the use of the factory or materials so that they are
safe and without risk to health when used;
(d) Carry out and arrange the research needed to eradicate or reduce any risks
to safety or health that may arise; and
(e) Ensure that the construction and assembly of the factory is safe and without
risk to health when used.
The provisions in OSHA are based on a self-rule approach, i.e. the main
responsibility of ensuring safety and health at the workplace is the responsibility
of those who create the risks and those who work with those risks.
Causes Example
Job Machinery malfunction ă failure to work properly;
Old equipment ă failure to function well; and
Dangerous jobs such as working in an underground tunnel and
working with dangerous chemicals.
Workers Do not concentrate fully on the work;
Half-hearted attitude;
Drink liquor or take drugs;
Misjudge the speed of a moving object;
Lack of experience;
Over-confidence due to experience;
Poor eyesight and hearing;
Incompetent in using equipment ă no training;
Break safety rules such as not wearing a helmet and glasses;
Age: too young (hasty) or too old (careless or incompetent); and
Have personal problems ă cannot concentrate fully on the work.
Environment Exposed to very high temperatures, electrical equipment and
chemicals;
Very noisy;
Exposed to smoke and dust; and
Infection.
Accidents in the workplace in this country are as shown in Table 9.2. Roughly,
the figures are high especially when compared with accidents in developed
countries. Among the industrial sectors that record accidents at the workplace
are production and manufacturing, agricultural, forestry, fisheries and
construction sectors.
Generally, accidents in the workplace are divided into three main factors:
(i) The use of equipment and machinery which are not supervised and
do not conform to the rules;
(iii) Incomplete and unsuitable rules for the use of the equipment;
(i) The nature of the job (especially work in construction, mining and
manufacturing sectors) which are normally exposed to dangers that
could result in accidents;
ACTIVITY 9.3
There are two main laws that control the aspects of health and safety of
workers in this country, namely the Factories and Machinery Act, 1967 and
the Occupational Safety and Health Act (OSHA), 1994.
The Factories and Machinery Act, 1967 gives power to the Department of
Factories and Machinery, Ministry of Human Resource to conduct workplace
safety checks.
The Occupational Safety and Health Act (OSHA), 1994 provides a legal
framework to develop, stimulate and encourage a high level of workersÊ
health and safety at the workplace.
Accidents in the workplace are divided into three main factors: unsafe working
environment, work-related factors and workerÊs behaviour and reaction.
Employee safety and health acts Occupational Safety And Health Act
(OSHA), 1994
Factories and Machinery Act, 1967
Self-rule approach
What are the main aim and principles of the Occupational Safety and Health Act
(OSHA), 1994?
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Identify the three main parties in an industrial relations system in
Malaysia;
2. Explain the role and activities that are carried out by the three
parties; and
3. Review the influence and strength of each party on the decision-
making process in an organisation and the provisions of law
related to their activities.
INTRODUCTION
Workers and trade unions as well as employers and EmployerÊs Associations are
two main parties that play an important role in any industrial relations system.
Apart from these, a third party i.e. government and its agencies is also an
important component of the system. The governmentÊs role in industrial relations
system may be seen at various levels. The government is an entity that provides
laws and regulations and enforces them. As a third party in an industrial
relations system, the government and its agencies are there to ensure a good
relationship between employees and trade unions and between employers and
EmployerÊs Associations. This topic discusses trade unions, EmployerÊs
Associations, the government and its agencies in the context of industrial
relations in Malaysia.
ACTIVITY 10.1
Think about the trade unions that you know and their roles. Discuss
your thoughts with your coursemates.
system of a country. The history of industrial relations has long existed formally
and informally since the existence of the traditional concept of the servant-master
relationship. In principle, industrial relations is not born out of disputes between
employers and the needs of employees. Disputes in working conditions gave rise
to factors such as a natural tendency towards aggression, a wide difference
between the needs of employers and employees, competition from limited
sources and the cultural aspects of an organisation and community.
For example, employers will always try to get as much profit as possible while
employees expect a higher pay rate and good working conditions. The wants of
both parties are always different. This creates a continuous dispute. In
maximising profits, employers may minimise workersÊ pay and oppose an
employee who expects better rewards for services rendered. Due to the existence
of such disputes and negativity, there exists a problem between the two parties.
The main objective of any industrial relations system is to find the best solutions
to these disputes.
Besides these, the Director General of Trade Union has the power to cancel
or revoke the registration of an association because it contravenes the law of
the country. All employees in Malaysia who are 16 years and above may be
a member of a trade union. However, it is only permitted to workers in an
association, business, jobs and industries under which the trade union is
registered.
ACTIVITY 10.2
In your opinion, what excuses can be used by a Director General of a
trade union to reject your application to the trade union association.
Visit the website of the Department of Trade Union Affairs, Malaysia
for further knowledge on your rights as an employee.
1993 1998
Sectors
Total Percentage (%) Total Percentage (%)
Private 276 56 314 59
Public 132 26 133 25
Statutory Body and 88 18 86 16
Local Govt.
Total 496 100 533 100
The Industrial Relations Act, 1967 provides that every worker has the right
to join a trade union. However, the number of workers joining a trade
union in Malaysia is very low compared to other countries. This may be
seen in Table 10.3.
Based on Table 10.3, the public sector has the highest percentage of workers
joining a trade union in Malaysia. However, the percentage does not reflect
the actual strength and effectiveness of the trade union. This is because the
workers in this sector are not involved directly in negotiations and
industrial issues at the central level. This includes issues such as pay, rules
of service, welfare and the workplace environment.
(i) The National and District Level Trade Unions have a membership
made up of employees from various organisations, the same
organisations or from employees of the same trade or job. Majority of
the similar industries have a national trade union. For example, the
NUPW, NUTP, NUTE, TWU and NUBE. The employees in the public
sector are represented by CUEPACS.
There are trade unions where the members are of a certain industry
but the membership is restricted to certain districts in the country. For
example, the Trade Union of Textile and Clothing Industry of Perak.
Workers from Sabah and Sarawak are also not allowed to join trade
unions in Peninsular Malaysia.
ACTIVITY 10.3
In your opinion, why are workers from Sabah and Sarawak not allowed
to join Trade Unions in Peninsular Malaysia? Discuss this with your
coursemates in the myINSPIRE forum.
(ii) The Union in a Company is one where the workers have set up a
trade union from a particular company or organisation which has a
limited number of employees. Statutory bodies and local authorities
are restricted in setting up such trade unions. In the private sector, a
few internal trade unions have existed for more than 20 years. For
example, the Cold Storage Workers Trade Union and the Rothmans
Workers Trade Union.
Since the 1980s, in-house unions have become very popular in certain
organisations. This is due to the encouragement given by the
government based on the positive relationship between employers
and employees. Employers in Malaysia are also keen with the
establishment of trade unions by their employees. In 1985, there were
52 in-house trade unions but in 1997, 218 in-house unions had been
set up with a membership of 144, 875 members.
ACTIVITY 10.4
Apart from what has been stated, list other factors that may encourage
the setting up of a trade union.
(i) The employees feel that their employer is not taking advantage of
them;
(iv) There is justice in the meting out of discipline and actions, employees
will respect firm discipline and fairness;
Reports from a study in Europe has found that organisations may sustain
the absence of a union provided they have an attractive pay scale and
benefits, establish working groups, have an open communication system, a
safe work environment and an employer who avoids staff dismissal.
In many countries, Employers Associations may trace their existence to the end
of the 19th and early 20th century. The development of this association is closely
associated to the development of trade unions. For example in Britain, New
Trade Unions influence the Federation of Modern Employers. The Association of
Employers relates to the reaction of economic pressure. It was established
especially among employers who carried out competitive edge activities. The
organisations include:
Apart from that, MEF provides numerous training facilities to update the
knowledge of members about related laws and jobs, about OSHA and other
related areas.
Labour Movement Laws were enacted in 1940 and were implemented only
in 1946 after the Second World War when the British came to power once
again. The registration office of the trade union was established in July 1946
to enforce the trade union Enactment of 1940. Under this Enactment, an
association that is established is required by law to apply for registration
with the Registrar of Trade Unions.
The registration of trade unions started in 1947 and by year-end, 298 trade
unions were registered with a total membership of 195,113. Following
negotiations that were held with the government, employers and the trade
union, the Trade Union Ordinance of 1959 was enforced on 1 June 1959 to
replace the Trade Union Enactment 1940. This Ordinance was given a wider
scope to Sabah and Sarawak in 1965 when Malaysia was established. The
Ordinance, after being examined by the Malaysian Law Reform
Commission 1981, was renamed the Trade Union Act 1959.
(ii) Administrators;
(iv) Employers.
Jobs;
Wages;
Industrial relations.
The National Labour Advisory Council and The National Council also
promote the governmentÊs role as a third party for Occupational
Safety and Health.
The industrial relations in the public sector differs from the system
used in the private sector. The mechanism established in the
industrial relations of the public sector is rather unique and of a
different level compared to the private sector. The mechanisms
consist of:
Discussions were focused on the role and activities that were carried out and
the influence of each party on the process of decision making in an
organisation, along with the provisions of legislation amongst them.
List the main roles of the government in the industrial relations system in
Malaysia.
OR
Thank you.