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Introduction to
Human Resources
Management
Albim Y. Cabatingan, DBA, DPAc, PhD
Let me ask you this….
• Why is it that some organizations
(whether big or small/global or
local) are successful in its
operations while others fail
despite the use of the same
opportunities and resources
available?
Examples are…..
Other Examples are…..
• Findings show that the KEY to survival and
success lies NOT in the rational and
quantitative approaches, but rather in a
commitment to irrational, difficult to measure
things like people, quality, customer service,
efficiency and most importantly developing
the flexibility to meet changing conditions.
FINDINGS
• What are the resources in the
organization?
• There are a lot…..human and non-human.
• Which among the resources is the
considered to be important?
• Why?
• Milkovich and Boudreau in their book Human
Resource Management emphasized that
although plant, equipment and financial
assets are resources required by the
organizations, the PEOPLE—the Human
Resources– are particularly important.
FINDINGS
WHY OH WHY?
• HR provides the creative spark in any
organization.
• People design and produce goods and
services.
• People set overall strategies and
objectives for the organization.
• People have feelings.
• People are not part of cold statistics.
• People manages financial, material and
even informational resources.
Importance…
• Without PEOPLE, it is simply
impossible for an organization
to achieve its objectives.
• Thus, employee involvement
and commitment plays a vital
and key role in the success of
any business organization.
• This can be made possible by
ensuring that employees can
effectively contribute to the
organization’s goal. This is
where HR would come in.
Human Resources Management :
Introduction
• Role of Human Resources in
an Organization
• Success Through Human
Resources
• History of Human
Resources in the
Philippines
Role of Human Resources in an
Organization
• Importance of Human
Resources
• Definition of Human
Resources
• Scope of Human
Resource[s] Management
• Differentiating General,
Personnel Management
from Human Resources
Management
Success Through Human
Resources
• Success Stories of
some Notable Firms
through Human
Resources
Management (HRM)
• Cost Reduction and
Profit Increase
through HRM
History Background of Human
Resources in the Philippines
• Periods in History and
Human Resources
Management
• The environment and
Human Resources
Management
Role of Human Resources in an
Organization
• Importance of Human
Resources
• Definition of Human
Resources
• Scope of Human
Resource Management
• Differentiating General
Personnel Management
from Human Resources
Management
Importance of Human Resource
• People determine the success or
failure of organization;
• People decide about money,
machines, materials, methods
(systems) and markets;
• People acquire, utilize and develop
financial, material, technological and
market resources;
• Thus, organizations may start with
zero funding and end up financially
viable, and vice-versa thru the
employment of human resources.
• The importance of human resources
within an organization is becoming
increasingly understood in today's
rapidly changing and uncertain
business environment
(Davidson & Griffin 2000)
“…The place of organizational objectives
(profit) is largely attributed to successful
human resources management–
Tomas Andres
In whatever field and discipline, Humans are
Important & Critical Resource and Asset in
an Organizations’ Growth & Development
• "The motto of successful CEOs:
People first, strategy second." --
Ram Charan, Author of Boards at
Work
Individual & Organization Interact to
Promote Its Own Goals, Needs,
Perceptions and Culture
“The people that staff and operate an organization …
as contrasted with the financial and material resources
of an organization. The organizational function that
deals with the people ...” (William R. Tracey, The
Human Resources Glossary)
What is the definition of Human Resources
Management?
Other Definitions of Human Resources
Management?
• “…art and science of acquiring, motivating, maintaining,
and developing people in their jobs in light of their
personal, professional and technical knowledge, skills,
potentialities, needs and values and in synchronization
with the achievement of individual, organizational and
society’s goals.
• The process implies the five functions of management
which are planning, organizing, staffing, directing and
controlling.
• The human resources management deals only with
people so that they can manage the other resources
within their domain of responsibility efficiently and
effectively.” (Conception Rodil Martires, 1999.)
Human Resources Management
Human Resource Management
Cognitive: Management Theories &
Principles
Affective: Individual Process of
Eliciting Human Behavior Skills
Scope of Human Resources
Management (HRM)
• As Management endeavors to meet the
needs and goals of its people, what do you
think happens to the Scope of HRM?
Scope
Job Organization & Information
• Job Analysis
– Duties
– Responsibilities
– Educational Qualification
– Work Experience
• Job Design
– way tasks or an entire job
is organized
• Job Evaluation
– methods/practices of
ordering jobs or positions
with respect to their value
or worth to the organization
• In order to assist employees in
helping an organization to reach its
strategic (long-term) business goals,
effective human resource managers
often gather job related information in
a job analysis and job description,
which is vital to creating or re-
designing jobs which provide
employees with a high level of job
satisfaction. --(Stone 2002)
• "It is in fact difficult to imagine how
an organization could effectively and
efficiently hire, train, appraise,
compensate or use its human
resources without the kinds of
information derived from job
analysis." (Ivancevich 1995, as cited
by Stone 2002)
Acquisition
• Recruitment
• Screening
• Selection
• Placement
Bearing- turnover &
replacement cost; needs
& goals of organization
Retrenchment
Maintenance
• Motivation
• Compensation
• Rewards
• Performance Evaluation
• Benefits
• Services
• Discipline
• Work Conditions
• Necessary for retention
If you can actually count your money, then
you are not really a rich man.
(J. Paul Getty 1892-1976, American industrialist)
Development
• Training (upskilling/re-skilling)
• Education
– upgrade knowledge, attitudes and
skills
• Career Planning
– career pathing is an organization’s
or individual’s process for
identifying specific job
opportunities in an organization’s
structure and the sequential steps
in education, skills, and experience
building needed to attain specific
career goals.
• Counseling
– guidance through problems
Research
• Facts
• Theories
• Principles
Redound on improved HRM
Policies
Promulgate sound, effective and
appropriate human resource
practices
Promote & maintain high
standards of professionalism
in HR management &
development.
JOBS
•Knowledge
•Skills
•Attitudes
•Values
•Potentials
•Needs
Job Organization &
Information
Acquisition
Maintenance
Development
Research
PEOPLE
Differentiating: General, Personnel,
Human Resources Management
General Management
•Man
•Finances
•Methods
•Markets
•Materials
•Time
•Equipment
Human Resources Management
•Man
Personnel Management
•Man
Personnel Management is
Subsumed by HRM
• Scope of People
Involved
• Work Hours
• Place of Work
• Types of Service or
Function
• Department or Office
Head
• Employment
Qualification
• Level of Reporting
• Practical
Implementation
• Orientation &
Technology
• Strategy & Theoretical
Approach
• Management
Philosophy
• Semantic Re-labeling
Personnel vs. Human Resources
Management
Scope of People Involved
Personnel Management vs. Human Resources Management
• Rank & File
– 201 Personnel Files
– Evaluation
– Research Data
abound
• Historically “labour
management” Oliver
Sheldon
• Rank and File
• BOD, Consultants,
Top Management,
Middle Management
– Records?
– Evaluations?
– Scanty Data for
Research
Work Hours
Personnel Management vs. Human Resources Management
• All Full-time work
• Within company
premises
• Time spent at work is
directly proportional to
salary & work output
or productivity
• Some Full-time work
• Most Part-time and
Flex-time
• Not within premises
• Time spent in
premises not ∞ to
salary nor productivity
– BOD
– Researchers
Talent hits a target no one else can hit;
Genius hits a target no one else can see.
(Arthur Schopenhauer 1788-1860, German philosopher)
Place of Work
Personnel Management vs. Human Resources Management
• Formal work setting
– Factory
– Plant
– Office
• Rigid expectation
• Formal work setting
• Tolerate informal
setting
– Emotionally satisfying
– Productivity
• Golf and Pubs
• Less rigid
expectations
You can have brilliant ideas, but if you can
not get them across, your ideas will not get
you anywhere.
(Lee Iacocca, Chrysler Corporation)
Service and Functions
Personnel Management vs. Human Resources Management
• Limited and repetitive
– Personnel records
– Recruitment & screening
– Industrial relations
• Management-Labor
– Socials
• Company anniversary
• Christmas party
• Varied and complex
– Job organization
• Analysis, design,
evaluation
– Acquisition
• Planning, screening,
selection, placement
– Maintenance
• Orient, motivate, assess,
remuneration, promotion,
participation & service
programs
– Development
• Training, education,
planning, testing,
counseling, mentoring
– Research
Now we understand that the most important
thing we do is market the product. We’ve come
around to saying that Nike is a marketing-
oriented company, and the product is our most
important marketing tool.
(Phil Knight, CEO Nike)
Department or Office Head
Personnel Management vs. Human Resources Management
• Generalist
– Admin Officer
– CEO
– General Management
function
• Office designation
• Non-baccalaureate
degree
– Paymaster
– Records keeper
• Specialist
– Human Resource
Specialist
– Behavioral Sciences
• Departmental
designation
• Baccalaureate Degree
– Staff are referred to
as “human engineers”
Words are just words and without heart they
have no meaning.
(Chinese proverb)
Employment Qualifications
Personnel Management vs. Human Resources Management
• Non-people Oriented
– Lawyers
– Clerks
• records
• People Oriented
– Behavioral Scientist
– Social Sciences
Researcher
• Supplants previous
jobs
Level of Reporting
Personnel Management vs. Human Resources Management
• Personnel
Management Staff
reports to and are
supervised by Line
Managers
– Admin Officer
– Finance Head
– Production Manager
• Part of Operational
level
• HRM Staff report to
GM or CEO
– At times, Board
Appointee in cases
wherein Senior
Managers join the
Board
• Part of Strategic
Corporate Planning
The principles of office hierarchy and of levels of
graded authority mean a firmly ordered system of
super- and subordination in which there is a
supervision of the lower levels by the higher ones.
(Max Weber 1864-1920, brilliant German analytical sociologist studying
bureaucratic organizations)
Practical Implementation
Personnel Management vs. Human Resources Management
• Emphasize
organization goals
only in practice
– People
– Money
– Equipment
– Markets are means to
an end
• Emphasize both
organization &
individual goals
– Its congruency is ∞ to
management & labor
harmony
Failure is the foundation of success... success
the lurking place of failure.
(Lao Tzu c.604BC-531BC, Chinese philosopher, founder of Taoism)
Orientation and Technology
Personnel Management vs. Human Resources Management
• Organization-
oriented
– Structural
– Mechanistic
• Content-oriented
– Technical, rigid
• Schedule, forms,
interpreting behavior
• Reactive
– Waits for things to
happen
• Control-oriented
– Audits personnel
• Socio-technical orientation
– Company and individual goals
accounted for
• Developmental, flexible,
participatory
– Flexible schedules & forms to
promote growth, interpret behavior
• Proactive
– Provides opportunities and
mechanisms before things happen
• Creative & innovative
– Dynamic relations between
employees and groups through
involvement and participation yields
organization productivity
Strategy and Theoretical Approach
Personnel Management vs. Human Resources Management
• Subjective decisions
– Based on Management
Needs
• Hiring, Evaluation,
Promotion
– Unqualified political
affiliates for favors
– No transparency
• Vague records
• Compartmentalized
Approach
– Segmented reactions to
situations without heed to
its relationship to the whole
• Objective decision-making
– Based on Individual &
Organizational Culture
• Human resources Accounting
– Assess value of human capital in
addition to enterprise's tangible
assets
– Actual individual data,
qualifications, performance
• Open records
• Complete Systems Approach
– Link various incidents holistically
A “radically different philosophy and approach
to the management of people at work”, in this
view, HRM provides a completely new form of
managing personnel and can therefore be
regarded as a “departure from [the] orthodoxy”
(Storey, 1989) of traditional personnel
management.
Philosophy
Personnel Management vs. Human Resources Management
• Traditional people-base
– Welfare of Proprietors
and Managers
• Pay cuts for rank & file
• Employee
– Dispensable
– Expense item
– Factor of production
– No budget for training,
counseling,
development
– Fast turn-over
• Progressive people-base
– Welfare of Society and
Individual
• Preclude layoffs by lowering
dividends, pared down
salary of managers
• Employee
– Investment, asset,
resource
– Budget earmarked for
selection, maintenance,
retention
In a philosophical dispute, he gains most who
is defeated, since he learns most.
(Epicurus, 4th century B.C. )
Semantic Re-labeling
Personnel Management vs. Human Resources Management
• Personnel
– Connotes unfavorable
welfare image
• Human Resource[s]
– Direct attention to
regarding people as key
resources
• Lends management of
personnel increased
importance (Armstrong,
1987)
When the flexible concept of HRM emerged in the
1980s, …, it “could not help but look more
desirable than personnel management.” The
attractiveness of the theory of managing
personnel led to a proliferation of HRM language.
(Hope-Hailey et al, 1997.)
Personnel Management is
Subsumed by HRM
• Scope of People
Involved
• Working Hours
• Place of Work
• Types of Service or
Function
• Department or Office
Head
• Employment
Qualification
• Level of Reporting
• Practical
Implementation
• Orientation &
Technology
• Strategy & Theoretical
Approach
• Management
Philosophy
• Semantic Re-labeling
Success Through Human
Resources
• Success Stories of
Firms through Human
Resources
Management (HRM)
• Cost Reduction and
Profit Increase
through HRM
Success Stories in HRM
• Jollibee Foods
• San Miguel Corporation
• Ayala Corporation
• SM Prime Holdings
• Smart Communications, Inc.
• Bank of the Philippine Islands
• Mercury Drug
• GMA Networks
• Manila Electric Company
• Petron Corporation
• Caltex (Philippines), Inc.
• Nestle Philippines, Inc.
• Toshiba Information Equipment
Phils.
• Pilipinas Shell Petroleum Corp.
• Wistron Infocomm Phils. Corp.
• Philippine Long Distance
Telephone
NestlĂŠ Philippines
•Family
NestlĂŠ work culture to nurture and encourage teamwork and cooperation.
NestlĂŠ looks after employee and welfare of his family.
•Trust and Open Communication
Networking and communication are horizontal or vertical, top-to-bottom or
bottom-to-top.
•Value-Added Performance
Marginal performance is not acceptable. Performance feedback is
regularly given. Everyone is a reliable colleague, a delight to work with.
•Career dynamism
NestlĂŠ fundamentally believes people are key to long-term success. After
all, people run the business. Training and development of people is an
integral and indispensable part of NestlĂŠ. Investment in people is as
importance as investment in research and development. Both are
considered imperative for the future of the Company. Learning and
growing at NestlĂŠ is from the time the employee joins the Company and
all throughout his career, which is often a career for life.
The Henri
NestlĂŠ Hall,
a large
conference
area used
for meetings
and training.
A Family
Room for
company-
sponsored
family-
oriented
programs,
furnished
with sofas,
tables, TV &
VCR set,
and storage
cabinets;
A cafeteria
for
employees.
“Let’s Talk
Wellness with
Nestlé”
Cabuyao Factory reach
out to schools,
government agencies
and social groups in the
community to benefit
the people of Cabuyao.
Jollibee Foods
Tony Tan Caktiong is the Chairman, President and CEO.
Ranked #16 among ASIA’S BEST EMPLOYERS, the only Philippine company in the
list
#1 EMPLOYER IN THE PHILIPPINES, as cited by the Far Eastern Economic Review,
The Asian Wall Street Journal, and Hewitt Associates
Ranked 3rd among ASIA’S MOST ADMIRED COMPANIES in 2000
Cited as No. 1 in “OVERALL LEADERSHIP” among the top 10 Philippine companies
doing business in Asia
Recognized by the World Economic Forum as the “GLOBAL GROWTH COMPANY”
Recipe for success
It is powered by teams of well-trained individuals embracing the culture of integrity
and humility, working in a family-like environment of fun and togetherness.
As a corporate citizen, Jollibee is also committed to serve its host communities. The
company not only nourishes bodies but also people's spirits through countless socio-
civic projects.
Values
-Always
customer first
-Excellence
through
teamwork
-Spirit of
family and fun
-Frugality,
Honesty and
Integrity
-Humility to
listen and learn
San Miguel Corporation:
Core Values
Teamwork
With trust and respect for each other and with unity in Purpose, we will look
toward our shared aspirations, transcending boundaries along functional and
organizational lines.
Respect for our people
We recognize our employees as individuals and are committed to nurturing their
individual capabilities. We will uplift the dignity of labor by encouraging our
people to be the best in their fields. We are committed to creating a work
environment that encourages open communication, camaraderie and
professional growth.
Integrity
In the conduct of our business, we will be guided by what is ethical, fair, and
right. We believe in profit with honor and are committed to good governance
and the highest moral standards.
Social Responsibility
We believe social responsibility and corporate citizenship are integral parts of
our business. We are committed to improving lives of people in the
communities in which we live and work.
Eduardo M. Cojuangco, Jr. has been San Miguel's Chairman and Chief Executive
Officer since July 1998.
San Miguel Corporation's success is built on our
brands and people. We employ over 26,000 people
throughout the Asia Pacific. Each of them is committed
to our core purpose of "Making Everyday Life a
Celebration" and a valued member of a dynamic team
that has built some of the Philippines' best loved
brands.
Bank of the Philippine Islands
Asia's Best Firms in 2005.
2nd in Best Commitment to Strong Dividend Payment
8th in Best Investor Relations among companies that operate in the
Philippines.
6th in two categories: Best Managed Company and Best Corporate
Governance.
BPI Attains more Awards
¡ Best Retail Bank; Best in Automobile Lending by The Asian Banker
¡ Best Cash Management, Trade and Custody by The Asset
¡ Deals of the Year by The Banker
¡ Best Commercial Bank for the Philippine Region by Asiamoney
¡ Best Bank in the Philippines by Global Finance
¡ Best Bank in the Philippines for the 7th year by Euromoney
¡ Most Outstanding Bank (National Awards) by Philippine Marketing
Excellence
Number of Employees 10,425 10,478
Banking Services 9,708 9,750
Insurance Services 717 728
2004 2003
The then PRES. AURELIO MONTINOLA III was recognized as one of Asia's top
banking leaders at the recently concluded the Asian Banker Achievement Awards
2005, held in Bangkok, Thailand.
Montinola shed a positive light on his key to success: "focus on the
customers, focus on the people, the business results will follow."
SM Prime Holdings
• As a corporate citizen, SM Prime commits
itself to contributing to national
development.
• It will keep on providing employment
opportunities to thousands of Filipinos
• Furthermore, it will continue to contribute
to the development of professional
management in the country.
Social Responsibility & Employee Continuing
Education Programs
Analysis of Success: People
• Corporate Culture and Values
• Innovative Corporate Policies
• Involvement in Planning
• Empowered decision-making
related to accountability
• Personnel Research ex. TNA
• Staffing i.e. right people
• Fairness in Management
Dealings ex. Selection
• Open Communication
• Work Environs
• Company Promotion
• Recognize Employee
Achievements
• Belongingness
• Monitoring and Discipline
• Fair Grievance and Counseling
System
• Commensurate Compensation
• Meritorious Salary Structure
• Productivity Bonuses
• Fringe Benefits i.e. non- &
monetary
• Training & Development
• Educational Programs
• Vacation Incentive Leaves
• Housing, Car, Retirement Plans
• Medical, Dental, Vision
Insurance
• Product Rebates of Corp.
Employees
Cost Reduction & Increased Profits
through HRM
“HRM contributes to corporate profits by reducing, containing and avoiding
costs.” (Gow 1986)
Corporate Cost Structure
• Raw Materials
– Inexperienced person
accepting unusable
materials in the plant
• Direct Labor
– Unskilled worker operating
a machine
– Undisciplined workers
misappropriate company
time and resources
• Overhead
– Rent
– Utilities
– Supplies
– Miscellaneous expenses
Expense Component HRM Contribution
A. Product cost •Goods, materials
•Utilities
•Wise use of trained/ knowledgeable manpower
•Commensurate pay for full day’s work
1. Factory Inventory
Cost (FIC)
•Depreciation
•People-related
•Uninterrupted work through work incentives
•Maintained equipment reduces accidents
•Low turnover due to job satisfaction
•Orientation for wise time and material use
2. Plant Burden •Plant utility
•Overhead
•Recruit right people, reduce cost of fixing equip
•Trained salesmen & managers are productive
•High morale from positive work climate
•Manufacture exact number and quality
3. Factory Cost
Adjustment (FCA)
•Scrap
•Cost variance
•Material losses
•Products off-spec
•Engr./ Purchase expenses
•Trial Production Cost
•Work knowledge leads to productivity/efficiency
•Dedication to quality work due to set standards
•Eliminate waste/loss through proper usage
•Increase output from close monitoring
•Loyal people save Co. money, no connivance
•Eliminate attitudes that propagate mistakes
B. Operating cost •Distribution
•Ads and Promotions
•Selling costs
•Product Service
•R & D
•Admin and General Services
•Competent warehouse person is efficient
•High morale, compensation, creativity ensues
•High sales volume, few motivated salesmen
•Quality Assurance, low service/repair cost
•Skilled persons hired, new/enhanced products
•Right jobs, right people ex. Janitor as Super
History of Human Resources in the
Philippines
• Periods in History and
Human Resources
Management
• The environment and
Human Resources
Management
Pre-Spanish Occupation
• Barter System
• Not necessitate
organization of
management or labor
groups
• “majordomo” system with
foreigners that took on
master-servant
relationship
• No written codes or
guidelines
By the 9th century, a highly developed
society had already established several
castes with set professions, as well as
trading links with China, India, Arabia and
Japan.
Spanish Occupation
• Commerce and Trade
– Manila and Mexico
• Civil Code of 1889
– Master and domestic servant
– Regulated laborer
• Code of Commerce
– Limited regulation between
employer and worker
– Education was minimal
– “Rights” were unheard of
– Reformists (Rizal & del Pilar)
due to unpaid labor force
Early flag of the Filipino
revolutionaries
American Occupation
• No women and children
labor laws
• Not as harsh albeit
farmhands & industrial
workers were oppressed
• Union was introduced due to
Trade and Industry
• No management effort to
develop & maintain workers
• Education was introduced
• Workers enlightened with
desire to organize
Filipina preparing for a Siesta
The insurgent leaders in the Philippines
Japanese Occupation
• WWII suspend education
• War decimated trade,
business, industry
• Annihilated previous
management-labor
relations
• Temporarily smothered
union movement, labor
and personnel
management
Post War
• Development and growth is a post-
war phenomenon (Sison 1981)
– Increase business complexity
– Government regulations and labor
laws
– Growth in labor unions
– New management concepts
• Rehabilitation employed skilled
• After rehab, specialize and
professional areas of management
arose
• Government created Dept of Labor,
GSIS, SSS, NYMC. agencies that
assisted management and labor
sectors in employing, training,
benefits, services
• Personnel Management Association
of the Philippines (PMAP) in 1956
• In September 29, 1956 a group of more than 30
men and women engaged in the practice of
personnel management and headed by the then
Personnel Manager of Insular Life, Perfecto “Pec”
Sison gathered together at the Selecta Restaurant
in Manila to organize what has today become one of
the largest professional organizations in the country.
Martial Law
• Dictatorial rule
• Lesser local unions
• Ban strikes on vital industries
• Layoffs, retrenchments, freeze
hiring, organizations closed
• Exported Philippine labor
– Foreign exchange source
• Schools taught “people” courses
• “HRM” concept seeped into work
area
• Practice of HRM fell short due to
grim political and economic state
thus, not conducive to
operationalized knowledge
Post Martial Law to 1985
• Insurgencies form Left
• Constitutional abrogates from
Right
• National Debt
• Land Reform Program
• Graft And Corruption
• Foreign Military Base
• Funds to develop working class
and masses were diverted
• Right to self organize in private
and government sectors
1990 to Present
• Reinstitute democracy
• Exercise of Freedom
• 1987 Accord on
Industrial Harmony
• PMAP gives training,
awards to best manager,
HR Program, employer
GMA
FVR JEE
HRM History
• HRM-type themes, including 'human capital theory'
and 'human asset accounting', can be found in the
literature from the 1970s. However, the modern view
of human resource management first gained
prominence in 1981 with its introduction on the
prestigious MBA course at Harvard Business
School. Simultaneously, other interpretations were
being developed in Michigan and New York.
• (Sparrow and Hiltrop 1994)
History of HRM in Philippines
high
low
development
Pre-
history
Spanish
Occupation
1521-1898
American
Occupation
1898-1941
Japanese
Occupation
1941-1946
Post War
1946-1971
Martial Law
1971-1985
Post Martial
Law 1985-
1995
1995-Present
Environment and HRM
• HRM is a product of
its environs
• Employment
conditions and
management-labor
relations are
influenced by forces
that stimulate or
impede its growth and
progress
• Economic
• Political
• Educational
Economic Environment
• When trade, business
and industry are booming
then employment is high
• Associated with it is
employment regulation to
sustain motivation and
interest among
management and
workers
• Example is reparation in
Post War Period
Political Environment
• Diminished growth
opportunities and
expression of ideas
• Political instability
• Citizens seek Humane
and Participatory
Reforms
• Example during Spanish
Occupation and Period
during Martial Law
Educational Environment
• Enlightened citizenry
through schooling and
free press
• Workers are
conscious of rights
• Workers defend to
uphold them
• Examples: Post War,
Martial Law and Post
Martial Law Periods
Environmental Forces
• All 3 are esoterically
related
• Confounding task to
identify which factor
significantly placed an
effect on the worker
and his work
environment
economic
political educational
Recap
• Human beings are the
most critical resource of
any organization
• Yet, least understood
• Worse, least managed
Recap
• HRM goes beyond
the practices and
policies of Personnel
Management
• HRM is both an art
and science of
dealing with people
for the achievement
of individual,
organization and
society goals
Recap
• History has influenced the
development of personnel
and HRM in the
Philippines
• Economic, political and
educational factors
stimulate or impede
unions, management-
labor relations, personnel
or HRM departments and
employee welfare.
Thank you!!

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HRM Intro Topic 1 (1).ppt

  • 1. Introduction to Human Resources Management Albim Y. Cabatingan, DBA, DPAc, PhD
  • 2. Let me ask you this…. • Why is it that some organizations (whether big or small/global or local) are successful in its operations while others fail despite the use of the same opportunities and resources available?
  • 5. • Findings show that the KEY to survival and success lies NOT in the rational and quantitative approaches, but rather in a commitment to irrational, difficult to measure things like people, quality, customer service, efficiency and most importantly developing the flexibility to meet changing conditions. FINDINGS
  • 6. • What are the resources in the organization? • There are a lot…..human and non-human. • Which among the resources is the considered to be important? • Why?
  • 7. • Milkovich and Boudreau in their book Human Resource Management emphasized that although plant, equipment and financial assets are resources required by the organizations, the PEOPLE—the Human Resources– are particularly important. FINDINGS
  • 8. WHY OH WHY? • HR provides the creative spark in any organization. • People design and produce goods and services. • People set overall strategies and objectives for the organization. • People have feelings. • People are not part of cold statistics. • People manages financial, material and even informational resources.
  • 9. Importance… • Without PEOPLE, it is simply impossible for an organization to achieve its objectives. • Thus, employee involvement and commitment plays a vital and key role in the success of any business organization. • This can be made possible by ensuring that employees can effectively contribute to the organization’s goal. This is where HR would come in.
  • 10. Human Resources Management : Introduction • Role of Human Resources in an Organization • Success Through Human Resources • History of Human Resources in the Philippines
  • 11. Role of Human Resources in an Organization • Importance of Human Resources • Definition of Human Resources • Scope of Human Resource[s] Management • Differentiating General, Personnel Management from Human Resources Management
  • 12. Success Through Human Resources • Success Stories of some Notable Firms through Human Resources Management (HRM) • Cost Reduction and Profit Increase through HRM
  • 13. History Background of Human Resources in the Philippines • Periods in History and Human Resources Management • The environment and Human Resources Management
  • 14.
  • 15. Role of Human Resources in an Organization • Importance of Human Resources • Definition of Human Resources • Scope of Human Resource Management • Differentiating General Personnel Management from Human Resources Management
  • 16. Importance of Human Resource • People determine the success or failure of organization; • People decide about money, machines, materials, methods (systems) and markets; • People acquire, utilize and develop financial, material, technological and market resources; • Thus, organizations may start with zero funding and end up financially viable, and vice-versa thru the employment of human resources.
  • 17. • The importance of human resources within an organization is becoming increasingly understood in today's rapidly changing and uncertain business environment (Davidson & Griffin 2000) “…The place of organizational objectives (profit) is largely attributed to successful human resources management– Tomas Andres
  • 18. In whatever field and discipline, Humans are Important & Critical Resource and Asset in an Organizations’ Growth & Development
  • 19. • "The motto of successful CEOs: People first, strategy second." -- Ram Charan, Author of Boards at Work
  • 20. Individual & Organization Interact to Promote Its Own Goals, Needs, Perceptions and Culture
  • 21. “The people that staff and operate an organization … as contrasted with the financial and material resources of an organization. The organizational function that deals with the people ...” (William R. Tracey, The Human Resources Glossary) What is the definition of Human Resources Management?
  • 22. Other Definitions of Human Resources Management? • “…art and science of acquiring, motivating, maintaining, and developing people in their jobs in light of their personal, professional and technical knowledge, skills, potentialities, needs and values and in synchronization with the achievement of individual, organizational and society’s goals. • The process implies the five functions of management which are planning, organizing, staffing, directing and controlling. • The human resources management deals only with people so that they can manage the other resources within their domain of responsibility efficiently and effectively.” (Conception Rodil Martires, 1999.)
  • 24. Human Resource Management Cognitive: Management Theories & Principles Affective: Individual Process of Eliciting Human Behavior Skills
  • 25. Scope of Human Resources Management (HRM) • As Management endeavors to meet the needs and goals of its people, what do you think happens to the Scope of HRM? Scope
  • 26. Job Organization & Information • Job Analysis – Duties – Responsibilities – Educational Qualification – Work Experience • Job Design – way tasks or an entire job is organized • Job Evaluation – methods/practices of ordering jobs or positions with respect to their value or worth to the organization
  • 27. • In order to assist employees in helping an organization to reach its strategic (long-term) business goals, effective human resource managers often gather job related information in a job analysis and job description, which is vital to creating or re- designing jobs which provide employees with a high level of job satisfaction. --(Stone 2002)
  • 28. • "It is in fact difficult to imagine how an organization could effectively and efficiently hire, train, appraise, compensate or use its human resources without the kinds of information derived from job analysis." (Ivancevich 1995, as cited by Stone 2002)
  • 29. Acquisition • Recruitment • Screening • Selection • Placement Bearing- turnover & replacement cost; needs & goals of organization Retrenchment
  • 30. Maintenance • Motivation • Compensation • Rewards • Performance Evaluation • Benefits • Services • Discipline • Work Conditions • Necessary for retention
  • 31. If you can actually count your money, then you are not really a rich man. (J. Paul Getty 1892-1976, American industrialist)
  • 32. Development • Training (upskilling/re-skilling) • Education – upgrade knowledge, attitudes and skills • Career Planning – career pathing is an organization’s or individual’s process for identifying specific job opportunities in an organization’s structure and the sequential steps in education, skills, and experience building needed to attain specific career goals. • Counseling – guidance through problems
  • 33. Research • Facts • Theories • Principles Redound on improved HRM Policies Promulgate sound, effective and appropriate human resource practices Promote & maintain high standards of professionalism in HR management & development.
  • 35. Differentiating: General, Personnel, Human Resources Management General Management •Man •Finances •Methods •Markets •Materials •Time •Equipment Human Resources Management •Man Personnel Management •Man
  • 36. Personnel Management is Subsumed by HRM • Scope of People Involved • Work Hours • Place of Work • Types of Service or Function • Department or Office Head • Employment Qualification • Level of Reporting • Practical Implementation • Orientation & Technology • Strategy & Theoretical Approach • Management Philosophy • Semantic Re-labeling
  • 37. Personnel vs. Human Resources Management
  • 38. Scope of People Involved Personnel Management vs. Human Resources Management • Rank & File – 201 Personnel Files – Evaluation – Research Data abound • Historically “labour management” Oliver Sheldon • Rank and File • BOD, Consultants, Top Management, Middle Management – Records? – Evaluations? – Scanty Data for Research
  • 39.
  • 40. Work Hours Personnel Management vs. Human Resources Management • All Full-time work • Within company premises • Time spent at work is directly proportional to salary & work output or productivity • Some Full-time work • Most Part-time and Flex-time • Not within premises • Time spent in premises not ∞ to salary nor productivity – BOD – Researchers
  • 41. Talent hits a target no one else can hit; Genius hits a target no one else can see. (Arthur Schopenhauer 1788-1860, German philosopher)
  • 42. Place of Work Personnel Management vs. Human Resources Management • Formal work setting – Factory – Plant – Office • Rigid expectation • Formal work setting • Tolerate informal setting – Emotionally satisfying – Productivity • Golf and Pubs • Less rigid expectations
  • 43. You can have brilliant ideas, but if you can not get them across, your ideas will not get you anywhere. (Lee Iacocca, Chrysler Corporation)
  • 44. Service and Functions Personnel Management vs. Human Resources Management • Limited and repetitive – Personnel records – Recruitment & screening – Industrial relations • Management-Labor – Socials • Company anniversary • Christmas party • Varied and complex – Job organization • Analysis, design, evaluation – Acquisition • Planning, screening, selection, placement – Maintenance • Orient, motivate, assess, remuneration, promotion, participation & service programs – Development • Training, education, planning, testing, counseling, mentoring – Research
  • 45. Now we understand that the most important thing we do is market the product. We’ve come around to saying that Nike is a marketing- oriented company, and the product is our most important marketing tool. (Phil Knight, CEO Nike)
  • 46. Department or Office Head Personnel Management vs. Human Resources Management • Generalist – Admin Officer – CEO – General Management function • Office designation • Non-baccalaureate degree – Paymaster – Records keeper • Specialist – Human Resource Specialist – Behavioral Sciences • Departmental designation • Baccalaureate Degree – Staff are referred to as “human engineers”
  • 47. Words are just words and without heart they have no meaning. (Chinese proverb)
  • 48. Employment Qualifications Personnel Management vs. Human Resources Management • Non-people Oriented – Lawyers – Clerks • records • People Oriented – Behavioral Scientist – Social Sciences Researcher • Supplants previous jobs
  • 49.
  • 50. Level of Reporting Personnel Management vs. Human Resources Management • Personnel Management Staff reports to and are supervised by Line Managers – Admin Officer – Finance Head – Production Manager • Part of Operational level • HRM Staff report to GM or CEO – At times, Board Appointee in cases wherein Senior Managers join the Board • Part of Strategic Corporate Planning
  • 51. The principles of office hierarchy and of levels of graded authority mean a firmly ordered system of super- and subordination in which there is a supervision of the lower levels by the higher ones. (Max Weber 1864-1920, brilliant German analytical sociologist studying bureaucratic organizations)
  • 52. Practical Implementation Personnel Management vs. Human Resources Management • Emphasize organization goals only in practice – People – Money – Equipment – Markets are means to an end • Emphasize both organization & individual goals – Its congruency is ∞ to management & labor harmony
  • 53. Failure is the foundation of success... success the lurking place of failure. (Lao Tzu c.604BC-531BC, Chinese philosopher, founder of Taoism)
  • 54. Orientation and Technology Personnel Management vs. Human Resources Management • Organization- oriented – Structural – Mechanistic • Content-oriented – Technical, rigid • Schedule, forms, interpreting behavior • Reactive – Waits for things to happen • Control-oriented – Audits personnel • Socio-technical orientation – Company and individual goals accounted for • Developmental, flexible, participatory – Flexible schedules & forms to promote growth, interpret behavior • Proactive – Provides opportunities and mechanisms before things happen • Creative & innovative – Dynamic relations between employees and groups through involvement and participation yields organization productivity
  • 55.
  • 56. Strategy and Theoretical Approach Personnel Management vs. Human Resources Management • Subjective decisions – Based on Management Needs • Hiring, Evaluation, Promotion – Unqualified political affiliates for favors – No transparency • Vague records • Compartmentalized Approach – Segmented reactions to situations without heed to its relationship to the whole • Objective decision-making – Based on Individual & Organizational Culture • Human resources Accounting – Assess value of human capital in addition to enterprise's tangible assets – Actual individual data, qualifications, performance • Open records • Complete Systems Approach – Link various incidents holistically
  • 57. A “radically different philosophy and approach to the management of people at work”, in this view, HRM provides a completely new form of managing personnel and can therefore be regarded as a “departure from [the] orthodoxy” (Storey, 1989) of traditional personnel management.
  • 58. Philosophy Personnel Management vs. Human Resources Management • Traditional people-base – Welfare of Proprietors and Managers • Pay cuts for rank & file • Employee – Dispensable – Expense item – Factor of production – No budget for training, counseling, development – Fast turn-over • Progressive people-base – Welfare of Society and Individual • Preclude layoffs by lowering dividends, pared down salary of managers • Employee – Investment, asset, resource – Budget earmarked for selection, maintenance, retention
  • 59. In a philosophical dispute, he gains most who is defeated, since he learns most. (Epicurus, 4th century B.C. )
  • 60. Semantic Re-labeling Personnel Management vs. Human Resources Management • Personnel – Connotes unfavorable welfare image • Human Resource[s] – Direct attention to regarding people as key resources • Lends management of personnel increased importance (Armstrong, 1987)
  • 61. When the flexible concept of HRM emerged in the 1980s, …, it “could not help but look more desirable than personnel management.” The attractiveness of the theory of managing personnel led to a proliferation of HRM language. (Hope-Hailey et al, 1997.)
  • 62. Personnel Management is Subsumed by HRM • Scope of People Involved • Working Hours • Place of Work • Types of Service or Function • Department or Office Head • Employment Qualification • Level of Reporting • Practical Implementation • Orientation & Technology • Strategy & Theoretical Approach • Management Philosophy • Semantic Re-labeling
  • 63. Success Through Human Resources • Success Stories of Firms through Human Resources Management (HRM) • Cost Reduction and Profit Increase through HRM
  • 64. Success Stories in HRM • Jollibee Foods • San Miguel Corporation • Ayala Corporation • SM Prime Holdings • Smart Communications, Inc. • Bank of the Philippine Islands • Mercury Drug • GMA Networks • Manila Electric Company • Petron Corporation • Caltex (Philippines), Inc. • Nestle Philippines, Inc. • Toshiba Information Equipment Phils. • Pilipinas Shell Petroleum Corp. • Wistron Infocomm Phils. Corp. • Philippine Long Distance Telephone
  • 65. NestlĂŠ Philippines •Family NestlĂŠ work culture to nurture and encourage teamwork and cooperation. NestlĂŠ looks after employee and welfare of his family. •Trust and Open Communication Networking and communication are horizontal or vertical, top-to-bottom or bottom-to-top. •Value-Added Performance Marginal performance is not acceptable. Performance feedback is regularly given. Everyone is a reliable colleague, a delight to work with. •Career dynamism NestlĂŠ fundamentally believes people are key to long-term success. After all, people run the business. Training and development of people is an integral and indispensable part of NestlĂŠ. Investment in people is as importance as investment in research and development. Both are considered imperative for the future of the Company. Learning and growing at NestlĂŠ is from the time the employee joins the Company and all throughout his career, which is often a career for life.
  • 66. The Henri NestlĂŠ Hall, a large conference area used for meetings and training. A Family Room for company- sponsored family- oriented programs, furnished with sofas, tables, TV & VCR set, and storage cabinets; A cafeteria for employees. “Let’s Talk Wellness with Nestlé” Cabuyao Factory reach out to schools, government agencies and social groups in the community to benefit the people of Cabuyao.
  • 67. Jollibee Foods Tony Tan Caktiong is the Chairman, President and CEO. Ranked #16 among ASIA’S BEST EMPLOYERS, the only Philippine company in the list #1 EMPLOYER IN THE PHILIPPINES, as cited by the Far Eastern Economic Review, The Asian Wall Street Journal, and Hewitt Associates Ranked 3rd among ASIA’S MOST ADMIRED COMPANIES in 2000 Cited as No. 1 in “OVERALL LEADERSHIP” among the top 10 Philippine companies doing business in Asia Recognized by the World Economic Forum as the “GLOBAL GROWTH COMPANY” Recipe for success It is powered by teams of well-trained individuals embracing the culture of integrity and humility, working in a family-like environment of fun and togetherness. As a corporate citizen, Jollibee is also committed to serve its host communities. The company not only nourishes bodies but also people's spirits through countless socio- civic projects.
  • 68. Values -Always customer first -Excellence through teamwork -Spirit of family and fun -Frugality, Honesty and Integrity -Humility to listen and learn
  • 69. San Miguel Corporation: Core Values Teamwork With trust and respect for each other and with unity in Purpose, we will look toward our shared aspirations, transcending boundaries along functional and organizational lines. Respect for our people We recognize our employees as individuals and are committed to nurturing their individual capabilities. We will uplift the dignity of labor by encouraging our people to be the best in their fields. We are committed to creating a work environment that encourages open communication, camaraderie and professional growth. Integrity In the conduct of our business, we will be guided by what is ethical, fair, and right. We believe in profit with honor and are committed to good governance and the highest moral standards. Social Responsibility We believe social responsibility and corporate citizenship are integral parts of our business. We are committed to improving lives of people in the communities in which we live and work.
  • 70. Eduardo M. Cojuangco, Jr. has been San Miguel's Chairman and Chief Executive Officer since July 1998. San Miguel Corporation's success is built on our brands and people. We employ over 26,000 people throughout the Asia Pacific. Each of them is committed to our core purpose of "Making Everyday Life a Celebration" and a valued member of a dynamic team that has built some of the Philippines' best loved brands.
  • 71. Bank of the Philippine Islands Asia's Best Firms in 2005. 2nd in Best Commitment to Strong Dividend Payment 8th in Best Investor Relations among companies that operate in the Philippines. 6th in two categories: Best Managed Company and Best Corporate Governance. BPI Attains more Awards ¡ Best Retail Bank; Best in Automobile Lending by The Asian Banker ¡ Best Cash Management, Trade and Custody by The Asset ¡ Deals of the Year by The Banker ¡ Best Commercial Bank for the Philippine Region by Asiamoney ¡ Best Bank in the Philippines by Global Finance ¡ Best Bank in the Philippines for the 7th year by Euromoney ¡ Most Outstanding Bank (National Awards) by Philippine Marketing Excellence
  • 72. Number of Employees 10,425 10,478 Banking Services 9,708 9,750 Insurance Services 717 728 2004 2003 The then PRES. AURELIO MONTINOLA III was recognized as one of Asia's top banking leaders at the recently concluded the Asian Banker Achievement Awards 2005, held in Bangkok, Thailand. Montinola shed a positive light on his key to success: "focus on the customers, focus on the people, the business results will follow."
  • 73. SM Prime Holdings • As a corporate citizen, SM Prime commits itself to contributing to national development. • It will keep on providing employment opportunities to thousands of Filipinos • Furthermore, it will continue to contribute to the development of professional management in the country.
  • 74. Social Responsibility & Employee Continuing Education Programs
  • 75. Analysis of Success: People • Corporate Culture and Values • Innovative Corporate Policies • Involvement in Planning • Empowered decision-making related to accountability • Personnel Research ex. TNA • Staffing i.e. right people • Fairness in Management Dealings ex. Selection • Open Communication • Work Environs • Company Promotion • Recognize Employee Achievements • Belongingness • Monitoring and Discipline • Fair Grievance and Counseling System • Commensurate Compensation • Meritorious Salary Structure • Productivity Bonuses • Fringe Benefits i.e. non- & monetary • Training & Development • Educational Programs • Vacation Incentive Leaves • Housing, Car, Retirement Plans • Medical, Dental, Vision Insurance • Product Rebates of Corp. Employees
  • 76. Cost Reduction & Increased Profits through HRM “HRM contributes to corporate profits by reducing, containing and avoiding costs.” (Gow 1986)
  • 77. Corporate Cost Structure • Raw Materials – Inexperienced person accepting unusable materials in the plant • Direct Labor – Unskilled worker operating a machine – Undisciplined workers misappropriate company time and resources • Overhead – Rent – Utilities – Supplies – Miscellaneous expenses
  • 78. Expense Component HRM Contribution A. Product cost •Goods, materials •Utilities •Wise use of trained/ knowledgeable manpower •Commensurate pay for full day’s work 1. Factory Inventory Cost (FIC) •Depreciation •People-related •Uninterrupted work through work incentives •Maintained equipment reduces accidents •Low turnover due to job satisfaction •Orientation for wise time and material use 2. Plant Burden •Plant utility •Overhead •Recruit right people, reduce cost of fixing equip •Trained salesmen & managers are productive •High morale from positive work climate •Manufacture exact number and quality 3. Factory Cost Adjustment (FCA) •Scrap •Cost variance •Material losses •Products off-spec •Engr./ Purchase expenses •Trial Production Cost •Work knowledge leads to productivity/efficiency •Dedication to quality work due to set standards •Eliminate waste/loss through proper usage •Increase output from close monitoring •Loyal people save Co. money, no connivance •Eliminate attitudes that propagate mistakes B. Operating cost •Distribution •Ads and Promotions •Selling costs •Product Service •R & D •Admin and General Services •Competent warehouse person is efficient •High morale, compensation, creativity ensues •High sales volume, few motivated salesmen •Quality Assurance, low service/repair cost •Skilled persons hired, new/enhanced products •Right jobs, right people ex. Janitor as Super
  • 79. History of Human Resources in the Philippines • Periods in History and Human Resources Management • The environment and Human Resources Management
  • 80. Pre-Spanish Occupation • Barter System • Not necessitate organization of management or labor groups • “majordomo” system with foreigners that took on master-servant relationship • No written codes or guidelines By the 9th century, a highly developed society had already established several castes with set professions, as well as trading links with China, India, Arabia and Japan.
  • 81. Spanish Occupation • Commerce and Trade – Manila and Mexico • Civil Code of 1889 – Master and domestic servant – Regulated laborer • Code of Commerce – Limited regulation between employer and worker – Education was minimal – “Rights” were unheard of – Reformists (Rizal & del Pilar) due to unpaid labor force Early flag of the Filipino revolutionaries
  • 82. American Occupation • No women and children labor laws • Not as harsh albeit farmhands & industrial workers were oppressed • Union was introduced due to Trade and Industry • No management effort to develop & maintain workers • Education was introduced • Workers enlightened with desire to organize Filipina preparing for a Siesta The insurgent leaders in the Philippines
  • 83. Japanese Occupation • WWII suspend education • War decimated trade, business, industry • Annihilated previous management-labor relations • Temporarily smothered union movement, labor and personnel management
  • 84. Post War • Development and growth is a post- war phenomenon (Sison 1981) – Increase business complexity – Government regulations and labor laws – Growth in labor unions – New management concepts • Rehabilitation employed skilled • After rehab, specialize and professional areas of management arose • Government created Dept of Labor, GSIS, SSS, NYMC. agencies that assisted management and labor sectors in employing, training, benefits, services • Personnel Management Association of the Philippines (PMAP) in 1956
  • 85. • In September 29, 1956 a group of more than 30 men and women engaged in the practice of personnel management and headed by the then Personnel Manager of Insular Life, Perfecto “Pec” Sison gathered together at the Selecta Restaurant in Manila to organize what has today become one of the largest professional organizations in the country.
  • 86. Martial Law • Dictatorial rule • Lesser local unions • Ban strikes on vital industries • Layoffs, retrenchments, freeze hiring, organizations closed • Exported Philippine labor – Foreign exchange source • Schools taught “people” courses • “HRM” concept seeped into work area • Practice of HRM fell short due to grim political and economic state thus, not conducive to operationalized knowledge
  • 87. Post Martial Law to 1985 • Insurgencies form Left • Constitutional abrogates from Right • National Debt • Land Reform Program • Graft And Corruption • Foreign Military Base • Funds to develop working class and masses were diverted • Right to self organize in private and government sectors
  • 88. 1990 to Present • Reinstitute democracy • Exercise of Freedom • 1987 Accord on Industrial Harmony • PMAP gives training, awards to best manager, HR Program, employer GMA FVR JEE
  • 89. HRM History • HRM-type themes, including 'human capital theory' and 'human asset accounting', can be found in the literature from the 1970s. However, the modern view of human resource management first gained prominence in 1981 with its introduction on the prestigious MBA course at Harvard Business School. Simultaneously, other interpretations were being developed in Michigan and New York. • (Sparrow and Hiltrop 1994)
  • 90. History of HRM in Philippines high low development Pre- history Spanish Occupation 1521-1898 American Occupation 1898-1941 Japanese Occupation 1941-1946 Post War 1946-1971 Martial Law 1971-1985 Post Martial Law 1985- 1995 1995-Present
  • 91. Environment and HRM • HRM is a product of its environs • Employment conditions and management-labor relations are influenced by forces that stimulate or impede its growth and progress • Economic • Political • Educational
  • 92. Economic Environment • When trade, business and industry are booming then employment is high • Associated with it is employment regulation to sustain motivation and interest among management and workers • Example is reparation in Post War Period
  • 93. Political Environment • Diminished growth opportunities and expression of ideas • Political instability • Citizens seek Humane and Participatory Reforms • Example during Spanish Occupation and Period during Martial Law
  • 94. Educational Environment • Enlightened citizenry through schooling and free press • Workers are conscious of rights • Workers defend to uphold them • Examples: Post War, Martial Law and Post Martial Law Periods
  • 95. Environmental Forces • All 3 are esoterically related • Confounding task to identify which factor significantly placed an effect on the worker and his work environment economic political educational
  • 96. Recap • Human beings are the most critical resource of any organization • Yet, least understood • Worse, least managed
  • 97. Recap • HRM goes beyond the practices and policies of Personnel Management • HRM is both an art and science of dealing with people for the achievement of individual, organization and society goals
  • 98. Recap • History has influenced the development of personnel and HRM in the Philippines • Economic, political and educational factors stimulate or impede unions, management- labor relations, personnel or HRM departments and employee welfare.