Form 5 · Chapter 1

The Role of Human Resource Management in a Business

Human resource management is far more than hiring staff. It plays many roles that support the success of the whole business.

In a business, human resource management (HRM) carries out several important, interconnected roles. These roles make sure the organisation has enough workers who are skilled, motivated and compliant with the law.

Planning and providing the workforce

The first role is workforce planning — estimating how many workers are needed and what skills they must have. HRM then carries out recruitment and selection to fill vacancies with the most suitable candidates.

Developing and appraising employees

Once staff are hired, HRM provides training and development so their skills stay up to date. HRM also runs performance appraisals to measure each employee's contribution, identify weaknesses and give feedback.

Example

A logistics Sdn. Bhd. sends its drivers on a defensive-driving course. Afterwards accidents fall and lorry maintenance costs drop — a result of HRM's training role.

Motivating and protecting employees

HRM manages fair compensation (pay, allowances, bonuses) to keep staff motivated. It also looks after welfare and employee relations, settles disputes and keeps the workplace safe. On top of this, HRM ensures the company obeys labour laws and makes compulsory contributions such as EPF and SOCSO.

On top of this, HRM keeps employee records up to date, manages leave and attendance, and plans career paths so that staff can see a chance to progress. When a dispute arises between employer and employee, the human resource department acts as a go-between to find a fair solution and keep the peace. This well-organised set of roles matters because employees who feel valued and are treated fairly are more enthusiastic, are absent less often, and stay with the company longer.

Key idea

Every HRM role feeds one final purpose: to raise productivity and support the success of the business through an efficient, satisfied workforce.

Remember

The roles of HRM can be summed up as: plan, hire, train, appraise, reward, care for welfare and comply with the law.

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