Recruitment & Selection:

HUMB 313

Learning Outcomes:
1. Explain the differences between
employment relationships
2. Establish the need to govern
employment relationships
3. Identify/Suggest legal acts pertaining
employment
4. Appreciate governing bodies handling
of employment complaints
5. Assess disparate treatment and ethical
issues pertaining employment
6. Explain Turnover and establish its
causes
7. Explore and assess retention Initiatives

Recruitment & Selection:

HUMB 313

Overview

Laws & regulations have assumed an

importance in the process of staffing.
Therefore no organization will be able
to start recruiting until it has fully
understand the legal requirement of
making appointments (staffing)
In Malaysia, the ministry in charge of
upholding and litigation of staffing laws
is the Malaysian Ministry of Human
Resources headed by Dato Dr
Subramaniam.
All litigation will go to the parliament
through this ministry. For example, the
latest HR bill that was passed by the
Malaysian cabinet was the bill that
require a minimum salary for security
workers in this country.

Staffing Organizations Model

Organization
Mission
Goals and Objectives

Organization
Organization Strategy
Strategy

HR
HR and
and Staffing
Staffing Strategy
Strategy

Staffing Policies and Programs

Support Activities
Core Staffing Activities
Legal compliance

Recruitment:

Planning

Selection:

Job analysis

Employment:

External, internal

Measurement, external, internal

Decision making, final match

Staffing System and Retention Management

1-3

1-3

Recruitment & Selection:

HUMB 313

The Employment
Relationship (EmployeeEmployer)
This relationship involves several different types of
arrangements between the organization and those who
provide work for it. There are three types of
relationship:
1.

Employer-Employee Relationship This is the most

common relationship whereby this arrangement is
the result of the organizations usual staffing
activities
Employer and Employee negotiate and agree on terms
and conditions that will define and govern their
relationship
The formal agreement is represented by an
employment contract, whereby these will then be
translated into the promises and the expectations of
both parties (job requirements, rewards, KSAOs and
motivation)

Recruitment & Selection:

HUMB 313

The Employment
Relationship (EmployeeEmployer)

There are two types of common employment contract

which are verbal and written.
In the written contract entails all the details with regard
to the employment contract
Under a normal employment contract these are covered:

1.
2.
3.
4.
5.
6.

Employees are required to uphold their responsibilities

EPF & SOCSO
Taxes
Benefits
Wages
Holidays

Recruitment & Selection:

HUMB 313

The Employment
Relationship (EmployeeEmployer)

When and how the employment relationship may

end is a matter very important.
For the employer, it bears on the degree of
staffing flexibility possible to quickly terminate
employees without constraints.
For the employees, it is the issue of job security
that is important
Under the common law principle of employment
at will, either the employee or the employer may
terminate the employment relationship at any
time, for any reason without notifications.
However, nowadays, terms of terminations are
well discussed in the employment contracts.

Recruitment & Selection:

The
HUMB 313

Employment Relationship
(Independent Contractors)

The employer may also hire

independent contractors and they are
not legally considered as employees
The employer has no legal obligation of
tax paid, EPF, SOCSO etc
Disadvantage is that the employer will
loose control over the work processes
and also the output the contractor
produces for them.

Recruitment & Selection: The Employment Relationship

HUMB 313

(Independent Contractors)

1.
2.
3.
4.
5.
6.
7.
8.
9.

These are the criteria to be classified as

independent contractors:
Working in a distinct occupation or
business
Working without supervision from the
employer
Paying their own businesses and travel
expenses
Setting ones own hour of work
Possessing a high degree of skill
Using ones own tools, materials and office
Working on a project with a definite
completion date
Working on relatively short projects
Being paid by the project basis.

Recruitment & Selection:

HUMB 313

The Employment Relationship

(Temporary Employees)

1.
2.

Temporary employees do not have special

legal stature.
They are obtained just to satisfy certain
shortage of man power
There are two types of temporary workers:
Being paid by the employer
Being paid by other agencies (staffing
agencies)

Recruitment & Selection:

HUMB 313

The Employment Relationship

Temporary employees do not

have special legal stature.
They are obtained just to satisfy
certain shortage of man power
There are two types of
temporary workers:
1. Being paid by the employer
2. Being paid by other agencies
(staffing agencies)

Recruitment & Selection: Laws and Regulations

HUMB 313

Establishment and maintenance of the employment

relationship involves exercising discretion on the part of
both the employer and the employee. There are three
factors contributing to the need for laws and regulations:

1. Balance of Power:
Entering into a contract is all about negotiating issues of
power. Usually the employer will have the advantage.
Thats why employment laws exist to reduce or limit the
employers power in the employment relationship so that
justice prevails between the two parties that are in the
contract together.
2. Protection of Employees
The protections pertain to employment standards ,
individual workplace rights and consistency of treatment.
For example; minimum wage, nondiscrimination, overtime
pay, and safety and health standards
3. Protection of Employers
Some employees will take the next opportunity to seek
damages as their interpretation of the law. Therefore
employers are also protected whereby they are allowed to
some extend choose their most eligible applicant to
recruit as well as rewarding the most performing existing
staff.

Recruitment & Selection:

HUMB 313

Sources of Laws and

Regulations

Workmen's Compensation Act1952

Wages Councils Act 1947
Weekly Holidays Act1950
Children and Young Persons
(Employment) Act 1966
Private Employment Agencies 1981
Employment Information Act 1953
Employment Act 1955

Recruitment &
Selection: HUMB 313

Handling of Workmen's complaining by

the Ministry
Complaint can be divided into:

Local worker
Foreign worker
The issues which always being reported are
involving:

Violation of labor law

Repudiate the Government policy
Doing unfair labor practice
Discrimination and employment abuse

Recruitment &
Selection: HUMB 313

Handling of Workmen's complaining by the

Ministry
Complaints are received from:

Employee
Employer
Minister
Wakil-wakil rakyat
Political Party Complaints Bureau
Trade Union
NGO
Foreign Ambassador
Public Complaint Bureau
Mass Media

Recruitment &
Selection: HUMB 313

Handling of Workmen's complaining by the

Ministry
Complaints can also be made through:

Teleworking
Call Centre
E-Mail
Walk in to Labor Department
Complaints can be categorized into 2 categories as
follows :-

Complaints made by employee towards his employer

for not complying with the labor law which could
cause the employee loss of monetary benefits or nonmonetary benefits.
Complaints made by employee or other parties
towards employer who is not complying with the
Government policy or custom and local practice as
well as unfair labor practice.

Recruitment & Selection: Discussion Questions

HUMB 313

Do you agree that the employer usually

has the upper hand when it comes to
establishing the employment relationship?
When might the employee have maximum
power over the employer?

Recruitment & Selection: Disparate Treatment

HUMB 313

Involves allegations of intentional

discrimination where employer knowingly
discriminated on basis of specific
characteristics

Evidence
May be direct
May consist of a mixed motive
May be inferred from situational factors
Person belongs to a protected class
Person applied for, and was qualified
for, a job employer was trying to fill
Person was rejected despite being
qualified
Position remained open and
employer continued to seek
applicants as qualified as person
rejected

Recruitment & Selection: Ethical Issues

HUMB 313

Assume that youre the staffing

manager in a company that informally,
but strongly, discourages you and
managers from hiring people with
disabilities. The companys rationale is
that people with disabilities are unlike to
be high performers or long term
employees, and are costly to train,
insure, and integrate into the work unit.
What is your ethical assessment of the
companys stance; do you have an
ethical obligation to try to change the
stance, and if so, how might you go
about that?

Recruitment & Selection: Turnover

HUMB 313

Turnover happens when an employee exits

from an organization, either willingly or
unwillingly.
Types of Employee Turnover

Voluntary
Avoidable - Could be prevented
Try to prevent for high value employees
Do not try to prevent for low value
employees
Unavoidable - Could not be prevented
Involuntary
Discharge
Downsizing

Exhibit 14.1: Types of Employee Turnover Voluntary -- Employee Initiated

14-20

Exhibit 14.1: Types of Employee Turnover Involuntary -- Organization Initiated

14-21

Exhibit 14.2: Causes of Voluntary

Turnover

14-22

Causes of Turnover:
Discharge and Downsizing
Discharge turnover
Mismatch between job requirements and
KSAOs
Employee fails to follow rules and procedures
Unacceptable job performance

Downsizing turnover
Mismatch in staffing levels which leads to an
overstaffing situation
Factors related to overstaffing
Lack of forecasting and planning
Inaccuracies in forecasting and planning
Unanticipated changes in labor demand and/or
supply
14-23

Measurement of Turnover:
Reasons for Leaving
Important to ascertain, record, and track
reasons
why employees leave
Tools
Exit interviews

Formal, planned interviews with departing employees

Postexit surveys

Surveys sent to employees soon after their last day

Employee satisfaction surveys

Surveys of current employees to discover sources of

dissatisfaction which may become reasons for leaving
Results can provide information to pre-empt turnover
Require substantial resources
14-24

Most and Least Effective Retention

Initiatives

14-25

Guidelines for Increasing Job

Satisfaction and Retention
Extrinsic rewards

Rewards must be
meaningful and
unique
Rewards must match
individual preferences
Link rewards to
retention behaviors
Link rewards to
performance

Intrinsic rewards

Assign employees to
jobs that meet their
needs
Provide clear
communication
Design fair reward
allocation systems
Ensure supervisors
provide a positive
environment
Provide programs to
enhance work-life
balance
14-26

Conclusion

Staffing involves the

formation of the employment
relationship.
It is very important for HR
executives to understand the
legal side of establishing
employment relationship

Turnover is the opposite of

staffing.
Understanding turnover could
help practitioners curb the
avoidable ones and increased
the productivity of the
organization as well as
putting importance on
employees wellbeing.

Recruitment & Selection:

HUMB 313

THE END

Recruitment & Selection:

HUMB 313

TUTORIAL 1

You are required to find an article on

discrimination cases in employment and
write a summary based on that article.
Choose one of the legal acts listed in the
notes and provide unique declarations of
these acts that can be use to protect
employees rights.