SlideShare a Scribd company logo
1 of 55
Download to read offline
11
Topic 1
Introduction to Human Resource Management
Human Resource Management is (HRM or HR) is the strategic approach to the effective
management of people in a company or organization in such that they help their business gain a
competitive advantage.
LEARNING OUTCOMES:
At the end of this topic, you must be able to:
1. Collect information on the beginning and development of human
resources management.
2. Reflect on the challenges that organizations may encounter in managing
human resources in the present.
LET’S BEGIN! 
To give you a thrill, let us start with the challenges of managing human resources today! The table
below shows some of the changes that are occurring in business nowadays. You reflect as to why
these changes become a challenge in managing HRM.
THE CHALLENGE OF MANAGING HUMAN RESOURCES TODAY
Changing Employee Expectations
One must recognize that today’s workforce comprise
of several generations:
Silent Generation – born before 1946
Baby Boomers – born between 1946 and 1964
Generation X – born between 1965 and 1980
Generation Y – born between 1981 and 1997
Generation Z – born between 1998 and 2010
Generation Alpha – born between 2011 and 2025
Each generation has different set of values, aspirations,
and each with unique perspective and attitude towards
work.
Rapidly Changing Technology
Companies must invest millions of money in training
and development to update their employee’s skills to
keep pace with changing technology. They must hire
more skilled workforce and redesign jobs to take
advantage of this new technology.
Emphasis on Increased Productivity
The need to increase productivity must be balanced by
the need to contain cost and improve quality.
Organizations will now focus more on competencies of
their employees. This include tangible skills and
knowledge and intangible aspects required of the job
such as attitude, values, and interactive abilities of the
job holder.
12
Most business organizations today, wherever possible,
prefer to adopt flexibility in the acquisition of human
resources. It is not easy under our laws to terminate
theservices of employees when nolonger needed. This
prompted some employers to resort to outsource their
New Modalities of Employment – temporary employers from labor service to
Outsourcing contractors.
Outsourcing has changed the human resource
dimension in many organizations. As a result, some
employees are laid off, some are contractual basis
while some are on a definite period of employment.
Flatter Organization
In a flatter organization, people are expected to
produce more using fewer resources. Multitasking is
required as they are asked toperforma varietyof ever-
changing roles, taking new responsibilities, and
significantly change the job contents of the
incumbents. The restructuring of organizations,
impacts on human resource management in many
ways.
Fall of the Command-and-Control
Barking orders to subordinates is no longer effective
way of getting things done by people. The workforce is
getting more educated, better informed, and aware of
their rights. Interpersonal relations must be strongly
developed to get the support and cooperation of the
subordinates.
Manager
It is concluded that managing human resources is indeed one of the greatest challenges
confronting businesses/organizations today. It has been growing focus in our highly competitive
world of business.
CHALLENGE YOURSELF!
Exercise No. 1
Face your own challenge this time. If you are one of the human resources in the company, do you
see yourself as a COST or an ASSET? Explain your choice on the box provided.
AM I A COST OR AN ASSET?
13
You are actually pondering into the concept of Human Resource Management right now. Read the
statement below and check whether you are getting on the right track. Does it makes a difference
when you are a cost or an asset? Save your answer to yourself. 
THE CONCEPT OF HUMAN RESOURCE MANAGEMENT
Human resources in the business sense are people who do the actual work in the
organization. They were once viewed as costs. Therefore, people were treated just the way they
treated other costs – by cutting or reducing. To explain further, when companies want to cut
their losses, they reduced their manpower or their human resources to save costs.
But in the early ‘90s, a new concept in treating human resources has evolved. People are
no longer treated as costs but assets. People are treated as investors, they bring into the
company their talent, knowledge, skills, competence, values, time and effort. Having invested
in this treasure trove of qualities and attributes vital to organization’s success, people demand
a fair return of their investments.
Thus, the concept of Human Capital was established. Books on human capital were
published in the late ‘90s. Notable of which are: “Human Capital” by Thomas O. Davenport and
“The Human Capital Edge” by Bruce N. Pfau and Ira T. Kay.
SHALL WE TRAVEL?
After knowing the concept of HRM, consider yourself as a time traveler. Are you ready?
THE ORIGIN AND DEVELOPMENT OF HUMAN RESOURCE MANAGEMENT
Today’s perspective has evolved in the 17th century before the start of the industrial
revolution. Working arrangements involved close relationships between mentors and
apprentices dedicated to a particular trade.
With the advent of Industrial Age, the notion of work moved from guilds and home shops
to steam-driven factories. The introduction of assembly lines brought a need for
low-skilled employees capable of performing repetitive tasks.
Assembly line production required large numbers of people come together for work.
Employer’s attentions focused on consumer demands, the speed at which new
machines produced goods and the processes that drove production – concerns that
were sometimes placed well ahead of the needs of employees.
This phenomenon led to several theories of managing people. AdamSmith wrote about the
economic advantages of the division labor. Known as the father of Capitalism, Smith’s
work led to many changes in manufacturing processes.
In the early 1800s, governments began to feel pressure from the working class masses
who started to ask questions and defy the power of the capitalists. The working class
began to form workplace organizations to provide collective voice for their rights.
Trade unionism started to gain a foothold not just as a means for protecting and improving
worker’s living standards, but also as a vehicle for changing the entire political and
economic order of society.
At the turn of the20th century, Frederick W. Taylor, considered to the father of Scientific
Management. He developed a concept of work design, work measurement, production
control and other functions that completely changed the nature of industry.
TheHawthornestudies ushered anew era of managing human resources. Thesestudies
conducted from 1927 to 1932 at the Western Electric Hawthorne plant by Elton Mayo,
14
ultimately brought to light the human element of managing human resources. Mayo’s
study highlighted the improved productivity gained by paying attention to workers
(referred to as the Hawthorn effect) and the significant role social relationships played
in the workplace.
Today’s focus on the human element is seen in enriched jobs, increased empowerment,
and participation in decision-making in the workplace.
Get a hold of yourself because there’s more! You have to observe the change from the past to the
present. The table below shows you the delineation between Personnel and HRM in matrix form.
THE TRANSITION FROM PERSONNEL TO HUMAN RESOURCE MANAGEMENT
Dimensions
Personnel and Industrial
Relations
Human Resource
Management
Beliefs and Assumptions
Contract
Careful delineation of written
contracts
Aim to go ‘beyond contract’
Rules
Importance of devising clear
rules/mutuality
‘Can do’ outlook; impatience
with ‘rules’
Guide to management action
Procedures/ consistency/
Control
‘business need’, flexibility
and commitment
Behaviour referent Norms/ customs and practice Values/ mission
Managerial task vis-à-vis
labour Monitoring Nurturing
Nature of relations Pluralist Unitarist
Conflict Institutionalized De-emphasized
Standardization High (e.g. ‘parity’ and issue)
Low (e.g. ‘parity not seen as
important)
Strategic Aspects
Key relation Labour-management Business-customer
Initiative Piecemeal Integrated
Corporate Plan Marginal to Central to
Speed of decision Slow Fast
Line Management
Management role Transactional Transformational leadership
Key Management Personnel/HR specialist
General/ business/ line
managers
Prized management skills Negotiation Facilitation
Key Levers
Foci of attention of
interventions Personnel procedures
Wide-ranging cultural
structure and personnel
strategies
15
Selection Separate marginal task Integrated, key task
Play
Job evaluation; multiple fixed
grades
Performance related: few, if
any, grades
Conditions Separately negotiated Harmonization
Labour-management
Collective bargaining
contracts
Towards individual contract
Trust of relations with shop
stewards
Regularized through facilities
and training
Marginalized (with exception
of some bargaining for
exchange model
Communication Restricted flow/ indirect Increase flow/ direct
Job design Division of labour Teamwork
Conflict handling Reached temporary truces Manage climate and culture
Training and development Control access to courses Learning companies
Source: Storey (1995)
Let us check the knowledge you gather so far on this topic. Answer the activities below.
ACTIVITY NO. 1
Instruction: After reading on the challenges of Human Resources, I want you to write all your
thoughts in the table below. Reflect on how these challenges affect human
resources today. Express it in your own words.
CHALLENGE REFLECTION
Changing Employee
Expectations
HUMAN RESOURCE MANAGEMENT
Rapidly Changing Technology
Emphasis on Increased
Productivity
New Modalities of
Employment – Outsourcing
Flatter Organization
16
HUMAN RESOURCE MANAGEMENT
17
Fall of the Command-and-
Control Manager
ACTIVITY NO. 2
Did you enjoy your time travel? Let’s see what you’ve got in that time machine.
Instruction: Arrange the following situational sentences. Use numbers 1-5 to identify the first
to last occurrence of events. Write your answer on the box provided.
1. KC applied in XYZ Company and successfully pass their requirements. She
is scientifically chosen and is taught the exact way to do the job. There is
now a clear division of work in XYZ Company.
2. XYZ is now focusing on the empowerment of human resources. Employees
are given the right to participate in the decision making during their
meetings to improve management in the company. It is aiming for
teamwork to achieve its role in the business world.
3. John is an XYZ employee, he is working in the assembly line production
where he will be performing repetitive tasks. In the assembly line
production, employees work together to achieve consumer demands.
4. XYZ Company introduced itself in the market. Upon its function, working
arrangements involved close relationships between employee and
employer. Employees of XYZ Company were often required to live in the
company or home of the employer. If the employee is sick, employer is
responsible for his/her health and welfare.
5. XYZ Company become a bigger company. Due to massive production,
division of labor takes place. This led to many changes in manufacturing
process of the company.
ACTIVITY NO. 3
Instruction: Write TRUE if the statement is correct and FALSE if otherwise. Write your
answer on the box provided.
Answer Statement
1. In the future, managing people may be referred to human
capital management.
HUMAN RESOURCE MANAGEMENT
18
2. To keep pace with rapidly changing technology, less
amount of money has to be spent in training and retraining
of employees.
3. Barking orders under the command and control concept will
be very effective but people empowerment in the
workplace will also do.
4. Adam Smith is known as the Father of Capitalism, while
Frederick W. Taylor is considered to be the Father of
Scientific Management.
5. HRM is defined as the productive use of people in achieving
the organization’s strategic business objectives and the
satisfaction of individual.
6. Human Capital refers to people in the organization with the
same values and aspirations in the business but different
cultural and family background, education, attitudes, and
temper.
7. HRM is defined as the strategic and coherent approach to
the management of an organization’s most valued assets –
the people.
8. Personnel management speed of decision is slow
compared to HRM. The statement is based from the matrix
form of Stredwick’s model of distinguishing Personnel
from HRM.
9. Elton Mayo’s study highlighted the improved productivity
gained by paying attention to workers (referred to as the
Hawthorn effect).
10. One impact of restructuring organizations on HRM is
developing and implementing policies to minimize the pain
in downsizing. The policies need to set standards from
communicating the termination to affected employees
only.
REFERENCES:
Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc.
Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.
HUMAN RESOURCE MANAGEMENT
19
Topic 2
The Constitutional and Legal Framework
Managing human resources is often times fraught with legal implications.
LEARNING OUTCOME:
At the end of this topic, you must be able to:
1. Identify the different classification of employees and its types of
employment.
2. Explain the Labor Code which protects the rights of employees at work.
LET’S BEGIN! 
To start, let us understand the laws governing the rights of labor.
THE CONSTITUTIONAL BASIS
The Philippine Constitution laid the basis for protecting the rights and welfare of
employees.
Declaration of Principles, Article XIII, Section 3 expands its labor policy by providing that:
The State shall afford full protection to labor, local and overseas, organized and
unorganized, and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike in
accordance with law. They shall be entitled to security of tenure, human conditions of
work, and a living wage. They shall also participate in policy and decision making
processes affecting their rights and benefits as may be provided by the law.
The State shall promote the principle of shared responsibility between workers and
employers and the preferential use of voluntary modes in settling disputes, including
conciliation, and shall enforce their mutual compliance therewith to foster industrial
peace.
The State shall regulate the relations between workers and employers, recognizing the
right of labor to its just share in the fruits of production and the right of enterprises to
reasonable returns to investments, and to expansion and growth.
THE LABOR CODE – serves as the omnibus enabling statute that gives flesh and
meaning to the Labor Policy enunciated in the Philippine Constitution.
6 Major Parts:
1. Pre-employment
2. Human Resources Development Program
3. Conditions of Employment
4. Health, Safety and Social Welfare Benefits
5. Labor Relations
6. Post-Employment
HUMAN RESOURCE MANAGEMENT
20
CHALLENGE YOURSELF!
Exercise No. 1
To exercise your brain, I want you to think over on this 2 situations.
Situation 1 Situation 2
Lexie is employed in ZERO Company. She is
given an equivalent salary for her job, bonus
and other benefits. The thing is, she always
works overtime but never been paid for it.
Since Lexie is dedicated to her job, she does not
mind if she is being paid for the overtime or
not. As long as she enjoy what she’s doing, she
is more than happy to work overtime.
Jane is working as a production worker at ONE
Company. She always reach her quota on time
but the line manager requests her to work
overtime to fill in the absences of others. She
usually goes home late at night. Despite the
long days and night of work, Jane is happy. She
never miss to harvest the fruits of her labor.
Compare both situations and choose which situation can lead to legal dispute whenever the
employee speaks of her labor rights. Explain your choice. Write your answer on the box.
LET’S EXPLORE!
The most important composition in business is human resources and that refers to EMPLOYEES.
Now, we identify the different Types of Employees.
TYPES OF EMPLOYEES
Employer - includes any person acting in theinterest of the employer directly or indirectly
Employee - includes any person in the employ of an employer.
HUMAN RESOURCE MANAGEMENT
21
Let’s get to know more about employees. This will help you understand how to identify whether
the person is an employee or an employer.
CLASSIFICATION OF EMPLOYEES
Managerial Employee – one who is vested with powers or prerogatives to lay down and
execute management policies and/or hire, transfer, suspend, layoff, recall, discharge,
assign, or discipline employees.
Supervisory Employee – one who, in the interest of employer, effectively recommends
such managerial actions if the exercise of such authority is not merely routinary or
clerical in nature but requires the use of independent judgment.
Rank and File Employee – one not falling under any of the preceding definitions of
managerial or supervisory employee
As an employee, you also have to know the Type of your Employment in order to protect yourself
from illegal processes. There are 5 types of employment. Article 280 of the Labor Code defines the
first 3 types of employment.
TYPES OF EMPLOYMENT
Regular – an employment shall be deemed to be regular where the employee has been
engaged to perform activities which are usually necessary or desirable in the usual
business or trade of the employer
Project – the employment has been fixed for a specific project or undertaking the
completion or termination of which has been determined at the time of the engagement
of the employee or where the work or services to be performed is seasonal in nature
and the employment is for the duration of the season
Casual – an employment shall be deemed casual if it is not covered by the preceding
paragraph: “Provided that, any employee who has rendered at least one year service,
whether such service is continuous or broken, shall be considered a regular employee
and his employment shall continue while such activity exists.
Probationary – employment shall not exceed six (6) months from date the employee
started working, services may be terminated for a just cause or when he fails to qualify
as a regular employee in accordance with reasonable standards. An employee who is
allowed to work after a probationary period shall be considered a regular employee.
Fixed Contract Employee as settled in jurisprudence – employment with a fixed term,
where there’s a day certain agreed upon by the parties for the commencement and
termination of their employment relationship
THIS IS IT!
The following are the different BENEFITS and RIGHTS of employees in the company which
should be addressed by the employer.
HUMAN RESOURCE MANAGEMENT
22
HEALTH, SAFETY AND SOCIAL WELFARE
Articles 156 to 161 of the Labor Code require employers to provide medical and dental
services.




First-aid medicines and equipment including training for first-aid treatment
Full-time registered nurse (50 – 200 employees)
Full-time registered nurse, part-time physician, dentist and emergency clinic (200 –
300 employees)
Full-time physician, dentist, full-time registered nurse as well as dental clinic, and an
infirmary or emergency hospital with one bed capacity for every 100 employees
(exceeds 300 employees)
EMPLOYEE COMPENSATION AND STATE INSURANCE FUND
The State Insurance Fund:
Created out of monthly contributions by the employer for the employee
Liable for compensation to the employee or his dependents, except when thedisability or
death was occasioned by the employees intoxication, willful intention to injure or kill
himself or another, or notorious negligence
In case the employee’s injury or death was due to failure of the employer to comply with
any law, the employer shall pay the State Insurance Fund a penalty of twenty-five percent
of the lump sum equivalent of the income benefit payable by the System to the employee.
LABOR RELATIONS
Definitions:
Defined as the aspect or quality that holds together the social partners, labor and capital
in the attainment of their mutual goal – just and equitable pay and treatment and fair
return of investments
Refer to the relationship between employers and employees in industry, and the political
decisions and laws that affect it
UNFAIR LABOR PRACTICES
Those that are covered under Articles 247-249 of the Labor Code.
Concepts of Unfair Labor Practice:
Violates constitutional right of workers to self-organization
Is inimical to the legitimate interests of both labor and management and labor’s right
to bargain collectively with freedom and mutual respect.
Disrupts industrial peace
Hinders promotion of healthy labor management relations
Violates civil rights of the parties
Is a criminal offense
HUMAN RESOURCE MANAGEMENT
23
STRIKES AND WORK STOPPAGES/LOCKOUTS
The right to strike is guaranteed by the Constitution and the Law. Employees can only
strike on two grounds:
Deadlock in Collective Bargaining Negotiations
Unfair Labor Practice
THE LAW OF TERMINATIONS
The law allows terminations of employees due to Just Causes or Authorized Causes:
Just Causes
o serious misconduct or will disobedience
o gross and habitual neglect of duties
o fraud or will breach of the trust
o commission of a crime or offense against another employee
Authorized Causes
o installation of labor saving devices or redundancy provided the terminated
employee is given one (1) month pay for every year of service
o retrenchment to prevent losses or closing or cessation of operation of the
establishment or undertaking unless the closing is for the purpose of
circumventing the law, provided, that the employee to be retrenched is given
one-half (1/2) month pay per year of service
OTHER LAWS:
The Wage Rationalization
Law (RA 6727)
This law rationalize wage fixing of minimum wages and to
promote productivity improvement and gain-sharing
measures.
Anti-Sexual Harassment Law
This law protects employees from sexual harassment
committed by co-employees. Sexual harassment is a criminal
offense punishable by law.
(RA 7877)
The New Labor Relations
This law further strengthens the Constitutional right to self-
organization to the disadvantage of companies who want to
maintain a no-union status.
Law (RA 9481)
UNLOCK THE ACTIVITY!
Let us check the knowledge you gather so far on this topic. Answer the activities below.
ACTIVITY NO. 1
Read and analyze the scenario to answer the following questions.
Jojo Santos, 24, is an accounting clerk at Sisayan’s Enterprise. Jojo has been with the
company for more than three years.
HUMAN RESOURCE MANAGEMENT
24
Arriving from his lunch break, he had bought a bottle of inexpensive rum for his friend’s
gathering later at his house. He showed the bottle to the security guard named Joel. Joel has been
working as a security guard for 2 years since he is renewing his contract every 3 months. Jojo
wants to leave the bottle at the door, but the Joel motioned him to bring it with him.
During his afternoon break, Jonald, who is a newly hired officemate, came along and saw
the bottle from under Joho’s desk, immediately opened it, and jokingly offered the bottle to Jojo.
Jojo gamely obliged and also jokingly acted like drinking from the bottle. Just then, Anthony, a
supervisor, appeared from nowhere and accused Jojo of drinking within the company premises
and during work hours. Jojo thought he would be reprimanded in the afternoon but it never came.
However, unkown to Jojo, Anthony approached Kevin. Kevin is an HR officer who has been
in the company for five months. Kevin did not bother to ask the side of Jojo as he considered the
account of Anthony as sufficient evidence.
The next day, Jojo was surprised to see his termination paper on the desk advising him to
get his last salary from the cashier. Jojo then sought the assistance of their labor union.
Instruction: Write all the names of employees mentioned above. Identify whether each
is an employee or an employer and determine their corresponding type of employment based on
their role in the scenario.
Employees Employee or Employer Type of Employment
1.
2.
3.
4.
5.
HUMAN RESOURCE MANAGEMENT
25
ACTIVITY NO. 2
Looking back on the scenario in Activity 1, answer the following questions below.
1. What are the Labor laws and rights involve in Jojo’s case? Justify your answer.
2. If you were Jojo’s supervisor, what do you think is the best way to handle the situation? Is
termination the best solution? Elaborate your answer.
HUMAN RESOURCE MANAGEMENT
26
3. If you were Jojo Santos, what are you going to do upon receiving your termination? Give
a detailed action plan.
ACTIVITY NO. 3
Can you identify whether the person is an employee or an employer?
1. Allen works as a manager for over year in MGC Company. He decides where to assign
the newly hired in the production area.
2. Jessie got hired as an announcer in KBC Production. She is still considered as a trainee
for 6 months.
3. Hannie works as an HR assistant for 7 months. She is always supporting in the hiring
process of the company.
4. From small business, John was able to manage his own business to become a well-
known corporation in the industry.
5. Karen is working as an Accountant. She plays an important role in Holland Company
while she is also working in her own Accounting Firm. Karen and Holland Company
came up their own agreement and arrangement in working as an Accountant.
HUMAN RESOURCE MANAGEMENT
27
Instruction: Identify whether the person is an employee or an employer and determine their
type of employment in the company. Write your answer on Activity No. 3 in the
box below and JUSTIFY your answer.
Answer Types of Employment Justification
1.
2.
3.
4.
5.
REFERENCES:
Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc.
Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.
HUMAN RESOURCE MANAGEMENT
28
Topic 3
The New Role and Skills of HR Management
The function of Human resource professional is to serve as the systematizing, policing arm of the
executive management.
LEARNING OUTCOME:
At the end of this topic, you must be able to:
1. Identify good and bad HR management practices including its different
functions and principles
2. Explain the new role of HR and the skills for an effective HR Management.
LET’S BEGIN! 
To start, let us know HR and its Functions.
Human Resources (HR)
The personnel of a business or organization that deals with the hiring, administration,
and training of employees.
set of people who make up the workforce of an organization, business sector, industry, or
economy
Functions of HR
Recruitment, selection and placement
Training and development
Performance evaluation and management
Promotions
Redundancy
Industrial and Employee Relations
Record keeping of all personal data
Compensation, retirement, incentive programs
Confidential advice to internal customers in relation to problems at work
Career development
The functions of HR have misperceptions and these becomes a challenge to HR practitioners.
Let us know what the misperceptions of HR Function are in order to correct them.
HUMAN RESOURCE MANAGEMENT
29
MISPERCEPTIONS REGARDING HR FUNCTION
A department whose employees spend 80% of their time on routine administrative
tasks.
Leaders are unable to describe their contribution to value-added.
The department frequently dispenses to others advice on how to eliminate work that
does not add value.
It is the HR professionals’ fault for allowing this perception to prevail. Thus, corrective action is
made.
MAKING A CORRECTIVE ACTION
HR Department
Its purpose is to serve the needs of the company, the managers, and the employees
– his constituency – and to balance these needs, to help them get the work done.
Not a profit center but it can make a company make things or sell things or
services by assisting other departments.
CHALLENGE YOURSELF!
Exercise No. 1
Analyze the given sentences and identify which is a BAD HR or GOOD HR. Write the word BAD or
GOOD in the box.
1. Janine is an HR professional. She works at JBC Corporation and has
been working for five years. She dictates the policy in the company
whether the other employees agree or not.
2. Nero works with Janine at JBC Corporation as an HR staff. He is
approachable and always listens to the feedback of other
department with regards to the Rules and Policies set by Janine in
the company.
3. Mary works as a supervisor at the same company. Mary reports
her subordinate to the HR department for personal issues. After
listening to Mary’s concern, HR manager then called out the
attention of the employee and listens on the issue.
4. JBC Corporation is hiring new production workers. Ken, HR
manager leads the hiring and selection process. He checks
whether the applicant is qualified or not before the interview
process.
HUMAN RESOURCE MANAGEMENT
30
5. Mary calls HR that she wants Sofia to be in Time Management
Training. Ken approved her request at once without questions.
Based on the Exercise 1.1, how were you able to determine if the HR is good or bad?
Now, let us get to know more about HR. This will help you answer the questions on Exercise 1.1
Take Note: The ACT of HR should be balance in order to become a GOOD HR.
Balancing Act of Human Resource Professional
Here are some examples of their balancing acts:
o Serving both management and employees – HR should not be biased
o As employee advocate and chief social worker – HR should encourage
employees to come to them when they have complaints. HR should be
approachable.
o “Owning” the people issues – HR should own the employees from the hiring
process to being a regular employee in the company.
o A rubber stamp of other managers rather than a partner – HR should ask
pertinent questions whenever managers recommend someone in business.
LET’S EXPLORE!
You are almost there. To fully understand the functions of HR, let us know its principle and the
specific practices that you should do to become a GOOD HR.
Developing a Public Statement of the HR Philosophy
The consultative function of human resources is that it provides overall guidance
and direction on workforce matters.
The table below shows you the Federal Express’ Basic Human Resource Principles.
Human Resource Principle Specific Practice
Build and implement an HRM
strategy
o Develop a shared philosophy for managing people
o Build systems and practices to implement the
philosophy
Hire the right people
o Know what you want
o Be selective
Keep employees
o Reward well
o Protect jobs
o Promote from within
o Share the wealth
Invest in employees
o Invest in learning
o Provide information and support
o Encourage autonomy and participation
Empower employees
o Redesign work
o Foster self-managing teams
HUMAN RESOURCE MANAGEMENT
31
o Promote egalitarianism
Promote diversity
o
o
Be explicit and consistent about the organization’s
diversity philosophy
Hold managers accountable
You now have gathered enough information on becoming a Good HR by knowing its various
functions in the company.
THIS IS IT!
Now, that we had discussed at length the image problem of HR, its functions, implementing HR
Philosophy in the organization, let us go to the main topic of the chapter.
THE NEW ROLE OF THE HUMAN RESOURCE PROFESSIONAL
A Strategic Partner – These strategic HR services that impact on the overall business
strategies are the design of work positions, hiring, rewards and recognition,
performance, development and appraisal systems, career and succession planning,
training and manpower development.
Employee Advocate – This advocacy includes expertise in how to create a work
environment in which people can be motivated, productive, and happy.
Change Champion – The role of the HR Professional must be parallel with the needs of his
changing organization. They contribute to the organization by constantly assessing the
effectiveness of the HR function.
Harness the Benefits of Technology – This enables HR staff more time for valuable
strategic activities such as ensuring the company has the necessary skills and
competencies to meet its future needs.
SKILLS FOR EFFECTIVE HUMAN RESOURCE MANAGEMENT
Human or Interpersonal Relations – HR professional must interface with his peers, with
the union in a unionized company, manage his subordinates and also manage his boss.
Multitasking – HR professionals will deal with different jobs a day. They must be able to
handle them on time all at once. Thus, priorities in business and time management will
be considered.
Organization – HR professionals must be well-organized. Organized files, strong time
management skills and personal efficiency are good indicators of a well-organized
human resource function.
Ability for a Dual Focus – HR professionals have to consider the need of both employees
and management. This involves a fair and impersonal judgment of what is right under
circumstances.
HUMAN RESOURCE MANAGEMENT
32
Trust and Confidence – HR professionals holds all information confidential. This
enhances their role as consultant, advisor, and coach of the organization and confidant
of the employees.
Dedication to Continuous Improvement – HR professionals need to train managers
how to coach and develop their employees.
Negotiating and Problem – Solving – HR professionals looks at the problem,
considers the personalities, examines the issues and presents himself as the mediator
and problem – solver.
Team-Oriented – HR professionals must be sociable, an extrovert and sensitive to the
needs, values, and feelings of others to win their cooperation and collaboration in order
to attain the overall goals of the organization.
Honesty and Integrity – HR professionals are the conscience of the company and the
keeper of its moral image.
UNLOCK THE ACTIVITY!
Let us check the knowledge you gather so far on this topic. Answer the activities below.
ACTIVITY NO. 1
Instruction: Create a sentence/sentences that best describe the Skills of an effective HR
professional given.
Example:
GIVEN SENTENCE / SENTENCES
1. Team-oriented
Ella participated in a project meeting of the company as a
representative from HR department. She is open-minded
with the suggestions of her co-workers and is willing to
discuss other details for the success of their project.
GIVEN SENTENCE / SENTENCES
1. Multitasking
HUMAN RESOURCE MANAGEMENT
2. Ability for a Dual
Focus
3. Negotiating and
Problem-solving
4. Dedication to
continuous
improvement
5. Organization
6. Trust and
Confidence
7. Human or
Interpersonal
Relations
33
HUMAN RESOURCE MANAGEMENT
34
8. Team-oriented
9. Honesty and
Integrity
10. Negotiating and
Problem-solving
ACTIVITY NO. 2
Instruction: Analyze and determine what human resource principle is describe in the HR
functions expressed below. Write your answer in the box.
1. Costco Company has a weird success formula set by
their HR deparment: pay employees more and
charge customers less than its biggest competitor.
They believe that if you pay the best wages, you get
the highest productivity.
2. HR managers can be very selective and prudent
when hiring new employees. They always make sure
to employ those who fit on the set standards for the
job.
3. Qualification requirements are always set when
looking for new employees. HR staff, shortlists
applicants who qualified for an interview.
HUMAN RESOURCE MANAGEMENT
35
4. HNJ Company is known for their progressive
succession planning. HR departments always
encourages all employees to grab opportunities set
within the company to promote themselves.
5. HR assistant always checks for new trainings and
seminars available every the month. These
trainings and seminars are budgeted for the
improvement of their employees.
ACTIVITY NO. 3
Instruction: Read and identify the statement below. Write your answer in the box.
1. Refers to a personnel of a business or organization that
deals with the hiring, administration, and training of
employees.
2. A principle to employ applicants who meet the
requirements and qualifications of the company.
3. It is the function of HR department that refers to the
hiring process.
4. Its purpose is to serve the needs of the company, the
managers, and the employees by assisting them and
helping through trainings.
5. It is a balancing act of HR professionals by controlling their
own responsibilities in the management of their
employees from the hiring process to regularization.
6. It refers to a new role of HR to support employees which
includes expertise in how to create a work environment
in which people can be motivated, productive, and happy.
7. A principle to reward, protect and promote employees.
8. The skill of an effective HR that pertains to interactive
skills. HR professional should be approachable and
sociable to his with his peers.
9. Refers to achieving a conflict resolution between two
employees or department.
HUMAN RESOURCE MANAGEMENT
36
10. It is a principle in Human Resource from Federal Express
that focuses on employee’s development on learning and
encourage them to participate with the organizations
activities.
REFERENCES:
Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc.
Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.
HUMAN RESOURCE MANAGEMENT
37
Module 2:
STAFFING: GETTING THE RIGHT
PEOPLE FOR THE RIGHT JOB
HUMAN RESOURCE MANAGEMENT
38
Topic 1
Human Resource Planning
Human Resource Planning is the critical initial step in getting the right people in the right place
at the right time.
LEARNING OUTCOMES:
At the end of this topic, you must be able to:
1. Identify and understand the different processes on Human Resource
Planning.
2. Create a simple diagram showing the process of Human Resource
Planning.
LET’S BEGIN! 
Let us define Human Resource Planning.
HUMAN RESOURCE PLANNING
Definitions:
It is the process by which management ensures that it has the right personnel who are
capable of completing those tasks that help the organization reach its objectives.
It is the development of strategies for matching the size and skills of the workforce to
organizational needs.
THE HUMAN RESOURCE PLANNING PROCESS
Analyzing
Forecasting
Determining the Future Demand
Internal Supply Considerations
Assessment of the Internal Labor Supply
The External Labor Supply
Employing Temporary Workers
Notes on Management Succession Planning
Implementation and Evaluation of the HR Plan
To explain these further, we will discuss each topic on the following pages.
HUMAN RESOURCE MANAGEMENT
39
CHALLENGE YOURSELF!
Let us check if you already have an idea on this topic.
Exercise No. 1
Instruction: Identify the following HR planning processes
1. A process that involves projecting labor needs and the
effects they’ll have on a business.
2. It refers to scrutinizing the factors that impact on your
firms’ labor demand. The process to understand the
external business environment and the trends that occur
within it.
3. It is a detailed analysis of how many people are currently
in various job categories or have specific skills within the
organization.
4. It is the key component of human resource planning which
refers to identifying potential successors within the
organization, focusing on specific individual managers.
5. It serves as diagnosis of where the process failed and how
to prevent it in the future to successfully execute the HR
plan.
6. This process revolves around identifying job categories
and/or types of skills currently existing and needed in the
future.
7. The process by which internal manpower supply is
considered and turnover rate is a very important factor.
8. A common practice of outsourcing that affords firm the
flexibility needed to operate efficiently in the face of the
swings in the demand for goods and services.
9. The process of reviewing into the unemployment and
underemployment statistics in the world business in order
to ensure the right supply of people at the time they are
needed.
10. It is the process by which management ensures that it has
the right personnel who are capable of completing those
tasks that help the organization reach its objectives.
LET’S EXPLORE!
You need to expand your ideas to answer the questions on Exercise No. 1.
HUMAN RESOURCE MANAGEMENT
40
ANALYZING
The first step in the planning process is to analyze the environmental factors that
influence on your firm’s labor demand.
Example:
When a company is growing, it needs more people. A company maintains its
relative position in the market may not be in need of more people. Conversely, a company
employing a retrenchment strategy will make a plan to reduce its manpower.
In the context of these demand and supply constraints on human resources, analysis is the key
initial step in the planning process.
FORECASTING
Forecastingis ascience and less than an art. It is aprocess that involves projecting labor
needs and the effects they will have on a business.
Example:
Some managers are prone to be “empire builders.” They tend to overstaff their
departments under the mistaken belief that quantity assures productivity. In this case, the so-
called Delphi technique could be applied. Experts, internal and external, take part in a round
robin-type decision-making sessions until they arrive at a consensus for the human resource
needs. This consensus serves as the forecast of the manpower needs of the organization.
DETERMINING THE FUTURE DEMAND
This process revolves around identifying job categories and/or types of skills currently
existing and needed in the future. Once, identified data will be gathered based on the
overall organization plan to predict whether those types of job categories or needed
skills will remain constant, or will increase or decrease.
Example:
A manufacturing company engaged in the manufacture of semiconductor
integrated microchips has a strategic plan for its department handling High Performance
Microprocessor Chips for Server Solutions. The plan includes the introduction of new automatic
assembly equipment for the production department and new process which impacts the
productivity of the engineering and production departments. It would involve the reduction of
the number of staff from the Production Department and the closure of a major production line.
INTERNAL SUPPLY CONSIDERATIONS
This process involves internal manpower supply. People who are expected to leave the
company must be considered. It comprises an important factor which is turnover:
resignation and dismissal.
HUMAN RESOURCE MANAGEMENT
41
Example:
If the company employed 500 at the start of 2009 and of these, 440 remain in the
company at the end of the year, then the stability index would be 88 percent. This gives a
positive spin than quoting a 12 percent of wastage index.
THE EXTERNAL LABOR SUPPLY
The process of reviewing into the unemployment and underemployment statistics in the
world business in order to ensure the right supply of people at the time they are needed.
Example:
Unemployment in the Philippines is high even under normal economic situation.
There is therefore an abundance of manpower in the labor marker. However, as intimated
earlier, while many are eager to be employed, only a handful are chosen for lack of the
necessary skills and competencies required for the job.
EMPLOYING TEMPORARY WORKERS
It is the flexibility to keep staffing levels optimal as your business needs change.
Temporary workers help reduce overall staffing costs, because their presence can keep
regular employees fully productive, but not overworked.
Example:
A company with less regular workers suddenly receives high demand for their
supply. The HR management decided hire temporary workers. Aside from saving on cost
benefits, there is the ease of terminating their services when they are no longer needed by the
company.
NOTES ON MANAGEMENT SUCCESSION PLANNING
Management succession planning, sometimes called executive succession. It is the key
component of human resource planning which refers to identifying potential successors
within the organization, focusing on specific individual managers.
Example:
Joe Silva, who is the Supervisor in Marketing department will retire. Rene Cosco,
Jesus Lim and Rey Capco are the candidates identified to replace Mr. Silva. The candidates are
rated according to their performance and potential for promotion. Early identification enables
the firm to plan for a cross-functional assignment and training to better prepare them.
HUMAN RESOURCE MANAGEMENT
42
IMPLEMENTATION AND EVALUATION OF THE HR PLAN
The final step in the HR planning process is the implementation and evaluation of
results.
It serves as diagnosis of where the process failed and how to prevent it in the future to
successfully execute the HR plan.
Example:
The company forecasted a low demand of their products and services.They have
calculated to downsize its labor force and offered a severance incentives to employees. It turned
out that the forecast of product and service demands was underestimated. The result was
disastrous. The smaller workforce could not keep up with the subsequent demand.
THIS IS IT!
Now that we have discussed the HR Planning processes, let me give you the summary of the
topic. Read and understand the summary below.
SUMMARY
Human resource planning is a valuable tool to guarantee that there will be no shortage
of talented individuals with the right skill sets. Like any management tool, forecasting is not an
exact science. It can be prone to mistakes. Mistakes can result in undersupply or oversupply of
manpower. But you can learn lessons from those mistakes and avoid them in the future.
In the process of developing a human resource plan, operating managers must always
be consulted since they will be the ones implementing the program. Their departments will
also be the ones affected should there be an overestimation or underestimation of manpower
requirements. Above all, the human resource plan should be with the imprimatur of the CEO.
The vital role of the human resource department is to orchestrate, coordinate in the
development and finalization of the plan, oversee its implementation, and monitor the results.
Management succession planning, though a segment of the entire resource plan, must be kept
separate and limited in its distribution to protect its confidentiality.
Despite the infirmities in human resource planning, only by forecasting future needs
can a firm take action today to meet tomorrow’s needs.
UNLOCK THE ACTIVITY!
Let us check the knowledge you gather so far on this topic. Answer the activities below.
ACTIVITY NO. 1
Instruction: Write TRUE if the statement is correct and FALSE if otherwise. Write your
answer on the box provided.
HUMAN RESOURCE MANAGEMENT
Answer Statement
11. In human resource planning, questions like “How many
people will be needed for the organization t meet its
objectives?” and “What new skills will be required of the
current work force?” must be considered.
12. The first step in the planning process is to analyze the
environmental factors. Thus, planners must minimize
some errors by using scientific methods.
13. Turnover rate is a very important factor to be considered
in your internal manpower supply. Turnover takes place
when HR department hires new recruits in the company for
temporary appointments.
14. Turnover happens due to resignation or dismissal. These
occurs because the employee might be accepting a job
elsewhere or misconduct in the company.
15. Looking for the “best fit person for the job” is a continuing
challenge for human resource professionals.
16. Outsourcing of employees is a common practice. In availing
for temporary workers, it should be more than the regular
employees in order for the company to be more productive
and reach its goal.
17. The final step in the HR planning process is the
implementation and evaluation of results. Success is gauged
on whether the plan was able to avoid a labor shortage
or surplus.
18. Promoting from within is indeed a good policy. It builds
company loyalty and provides incentive for ambitious high
flyers to build a career rather than looking for “greener
pastures” outside. This process describes “the external
labor supply”.
19. After having determined the human resources demand,
you would now look at the supply side. If in the forecast of
your demand, you foresee an excess of your present
manpower, then, you will have to plan how to downsize
your staff.
20. In the management succession planning, only one
candidate must be identified for replacement. The
candidate must be trained to better prepare for the higher
position. It will include the formal management training.
43
HUMAN RESOURCE MANAGEMENT
44
ACTIVITY NO. 2
Instruction: Create your own simple diagram showing the Process of Human Resource
Planning.
REFERENCES:
Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc.
Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.
HUMAN RESOURCE MANAGEMENT
45
Topic 2
The Human Resource Recruitment
Recruitment remains one of the most critical functions of the human resource department.
LEARNING OUTCOME:
At the end of this topic, you must be able to:
1. Classify and understand internal recruitment’s advantages and
disadvantages from external recruitment’s advantages and disadvantages
in the organization.
2. Identify and arrange the Stages of Recruitment
LET’S BEGIN! 
Let us define Human Resource Recruitment.
HUMAN RESOURCE RECRUITMENT
Definitions:
It is a strategic process of finding and hiring the best-qualified candidate from within or
outside of an organization for a job opening in a timely and cost-effective manner
It is a strategic process that connects candidates who need what you have to offer and
who possess the skills and aptitude to accomplish your goals and objectives.
It is important to adopt a Recruitment Policy that encompasses your firm’s code of
conduct in attracting the best qualified candidates, the rules to be followed and the standards to
be reached. The policy should be directed to the following objectives:
Hire the right person;
Conduct a wide and extensive search of the potential position candidates;
Recruit staff who are compatible with the style of management and the culture of your
company;
Handle applications with due diligence, speed, and courtesy;
Hire from within and develop existing employees to qualify them for consideration for
promotion;
Make sure that no false or exaggerated claims are made in recruitment announcements
or help wanted advertisements; and
Place individuals in positions with responsibilities and train them to enhance their career
and personal development.
Take Note: Recruitment should be planned, implemented and evaluated to ensure that the best
qualified candidate is hired and provided the best opportunity for training and development to
enhance his personal career in the company.
HUMAN RESOURCE MANAGEMENT
46
CHALLENGE YOURSELF!
Take this dare and check your comprehension. This is a truth and a dare.
Exercise No. 1
Instruction: Identify the advantages and disadvantages of internal recruitment
and external recruitment. Write the word Advantage or Disadvantage for your answers.
1. It is usually cheaper in terms of starting pay and
faster to fill up internal vacancies.
2. Brings in an opportunity to acquire new skills and
competencies not found in the organization.
3. Usually more costly to hire somebody from outside.
4. Savings can be made since individuals with inside
knowledge of how business operates will need
shorter periods of training and time for “fitting in”.
5. The management will have to replace the person
who has been promoted, creating a ripple effect –
more job openings occur as employees are moved
about.
6. Promoting from within may upset some inside the
company thereby lowering the morale of those not
selected for the position.
7. The outsider does not fit into the organization’s
culture.
8. Draws upon a wider rangeof talent, and provides the
opportunity to bring new experience and ideas into
the organization, enhancing creativity and
innovation.
9. It improves employee’s morale; it acts as an
incentive to all staff to work harder within the
organization.
10. Deprives the company from getting fresh views and
new ways of doing things.
11. Enables the organization to hire people with
knowledge of competitors’ secrets – an easy though
arguably dubious way of conducting competitive
intelligence gathering.
12. From the company’s point of view, the strengths and
weaknesses of an insider will have been assessed. It
has potential then for a better success rate since the
track record of the employee is known.
13. Creates negative internal competition for the
position.
HUMAN RESOURCE MANAGEMENT
47
14. Some risks in failure, i.e., an employee could be less
effective in actual job than what appears on paper
application and interview.
15. Internal employees are already attuned to the
culture of the organization.
16. An insider may be less likely to make essential
criticisms to get the company working more
effectively.
17. The organization is unlikely to be disrupted by
someone used to working with others in the
company.
18. Keeps propriety and industry knowledge inside the
organization.
19. Takes a longer time to get acclimated to the job and
to the organization’s culture.
20. May demoralize employees who did not get the
promotion and adversely affect their commitment
levels.
You are actually looking into the Policy of Attracting Internal Versus External Applicants.This will
help you answer Exercise No. 1.
NOTES ON THE POLICY OF ATTRACTING INTERNAL VERSUS EXTERNAL APPLICANTS
Each organization should be flexible in adopting recruiting options to make sure the
position is filled when needed.
Internal Recruitment means that only employees within the organization can apply
on the vacant position. It is limited, thus the organization may already have the potential
candidates for the position. This does not give opportunities to other applicants from outside
the organization.
External Recruitment means that it has a wider range of hiring employees. Applicants
from outside the organization have the opportunities to apply. Thus, this brings also an
opportunity for the company to acquire new skills and competencies in the management.
It is up to the organization to weigh the advantages and disadvantages of each option.
LET’S EXPLORE!
Recruitment process does not stop on the policy or how it is sourced. Let us discover and learn
more on this topic.
STAGES OF RECRUITMENT
HUMAN RESOURCE MANAGEMENT
48
Determine whether a vacancy exists
A vacancy may occur in two ways:
1. When an employee resigns, retires, dies, or is discharged from the service
2. When a new position is created as a result of expansion, restructuring, or
reorganization
Prepare Job Description and Person Specification
Job Description is principally used for recruitment as a guide on how a particular
employee will fit into the organization. It will therefore need to set out the title of the job to
whom the employee is responsible, for whom the employee is responsible, and a simple job
description of the role and duties of the employee in the organization.
Person Specification goes beyond a mere job description. In addition, it highlights the
mental and physical attributes required of the job holder.
Media Announcement
Media announcement would vary. The most common means are through:
Bulletin boards
Word of mouth
Professional journals such as PMAP’s People Magazine, etc.
Employment agencies, headhunters
Campus recruitment
Website job market
Job fairs
Newspaper advertisements
Summer cadre training
Managing the Response
Manage the response of your announcement of recruitment by considering the
medium you are using to advertise the vacancy. To discourage those obviously not qualified
to apply, you should spell out not only the job description but also the person specifications of
the job.
Short-listing
Discarding those who are not qualified from those who are qualified for the posted
vacancy
The advantage is, you may still be able to pare down the list to the barest minimum by
weeding out those who have negative results in the reference and/or background
check.
HUMAN RESOURCE MANAGEMENT
49
Arrange Interviews
The following steps must be observed:
1. Arrange and confirm dates and times with candidates.
2. Develop the interview schedule and confirm with all individuals who will be involved
in the interview process.
3. Provide interviewers with a job description and person specification of the job.
4. Ensure that all interviewers are trained in the techniques of the interview.
5. Develop an evaluation tool for all interviewers to use upon completion of the
interview.
Reference/Background Checks
Reference and background checks should be made only for those candidates who have
advanced to the finalist stage and who are in serious condition for the job.
It is usually done by calling the character references provided by the applicant. These
can be his previous employer, friends or relatives.
Offer to Hire
Once the candidate is chosen, the job will be offered to him. Important issues that should be
addressed in the job offer are:
1. Starting pay, salary progression;
2. Starting date;
3. Tenure of the contract, whether temporary, casual, for fixed term or period,
probationary or regular;
4. Benefits; and
5. Any other points of negotiation.
The candidate should be given time to either accept or reject the offer. Once the candidate of
choice accepted the position, the written appointment shall be made confirming the offer and
for the candidate to sign his conformity on the space provided in the letter.
We are done with the Stages of Recruitment. Finding the best people who can fit within your
culture and contribute within your organization is a challenge and an opportunity that should not
be left without any planning.
The key is to build a pool of talents before you need it. You must have your own Recruitment
Policy that will guide everyone in your company in how to attract talented people.
UNLOCK THE ACTIVITY!
Let us check the knowledge you gather so far on this topic. Answer the activities below.
ACTIVITY NO. 1
Check your answers on Exercise No. 1 to answer this activity.
HUMAN RESOURCE MANAGEMENT
50
Instruction: Using the same statements of advantages and disadvantages in Exercise No. 1,
determine whether it is an Internal Recruitment or External Recruitment. Write
the statements on the box provided below.
INTERNAL RECRUITMENT
Advantages Disadvantages
HUMAN RESOURCE MANAGEMENT
EXTERNAL RECRUITMENT
Advantages Disadvantages
51
HUMAN RESOURCE MANAGEMENT
52
ACTIVITY NO. 2
Instruction: Identify the following Stages of Recruitment based on the statement below.
1. Jackie is an HR staff assigned in the hiring process of the
company. She advertises their vacancy on the
newspaper and also on their website to attract more
applicants.
2. Laury is a new HR staff, she was told by Jackie to gather
all the resume’ of the applicants and check whether they
are qualified for the job. After checking the information,
she is asked to give her the list of those who qualify.
3. Mrs. Reyes, will retire soon. She notifies the HR
department regarding her retirement. The HR
department then plan and prepares for the opening of
the position that will be left by Mrs. Reyes.
4. HR Department asks Mrs. Reyes the responsibilities of
her position. She is also asked what might be the mental
and physical attributes required to deserve the position
she has.
5. Lency follows their protocol by calling some of the
people included in the personal data sheet of the
applicants. She identify herself and state the reason of
her call. She ensures that the information provided
about the candidate will remain confidential.
6. Lency submitted her report on the background
checking of the applicants. The HR department chooses
Ms. Sophia Joson for the job. Ms. Sophia was so happy
and accepted the job offer without hesitation.
7. Jackie made sure to include not only the job description
but also the job specification in order to lessen her
burden from receiving lots of application that may not
be qualified for the job.
8. Jackie and Laury contact all the applicants who qualify
for the job. While Lency, gives the interviewers a heads-
up with the time and date of the interview to clear up
their schedules.
ACTIVITY NO. 3
Instruction: After identifying the stages of recruitment on Activity No. 2, you can now create a
scenario. Using the same sentences on Activity No. 2, arrange the following to
create a scenario in the Human Resource Recruitment Process. Write it in a
paragraph form.
HUMAN RESOURCE MANAGEMENT
53
REFERENCES:
Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc.
Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.
HUMAN RESOURCE MANAGEMENT
54
Topic 3
The Human Resource Selection and Orientation
Human Resource selection and orientation are two processes included in getting the right people
for the right job. It is one of the core strategic activities of Human Resources Service which is very
critical and important to consider before hiring the applicant.
LEARNING OUTCOME:
At the end of this topic, you must be able to:
1. Determine the Selection and Orientation processes in HRM
2. Explain the stages of selection and formal orientation
3. Conclude the effects of having good orientation program
LET’S BEGIN! 
Let us discuss Human Resource Selection first.
HUMAN RESOURCE SELECTION
Definitions:
Selection is a critical process that involves choosing from among the best.
The responsibility of effective selection rests on the partnership between the human
resource professionals and the line managers.
THE SELECTION PROCESS
The selection process covers the following:
Screening applications and resumes
Conducting test of the applicants
Interviewing
Performing reference checking/ background investigations
Deciding whether to hire or not
Let us now dig deeper into each processes.
APPLICATIONS AND RESUMES
The application letter is the common starting point in the selection process. Enclosed
with the application is the bio-data of the applicant. The bio-data includes, but is not limited to,
HUMAN RESOURCE MANAGEMENT
55
his education, career interest or goals. Unless an applicant is a fresh college graduate, the
resume includes work experience.
CONDUCTING TEST OF APPLICANTS
Caution should be taken on employee tests. There are four categories of employee testing:
4 Categories of Employee Tests
Ability Tests
These tests are assessment instruments used to measure an individual’s ability,
mental or physical skills level. They measure variety of areas ranging from verbal, numerical
ability, problem-solving, motor or spatial agility, mechanical ability, or finger dexterity such
as in typing, or assembling.
There are many ability tests available in the market. HR department or the
management may also create their own ability tests.
Aptitude Tests
Aptitude test is a standardized test designed to measure the ability of a person to
develop skills or acquire knowledge. It is a test to determine whether somebody is likely
able to develop the skills required for a specific kind of work.
There are also some career aptitude test that would try to determine one’s interests
in something, or style of working and how one interacts with other people. This is especially
important when an organization’s culture is focused on teamwork or an applicant is being
considered for a supervisory or managerial position.
Performance Tests
Performance testing covers a broad range of engineering for functional evaluations
where a material, product, system, or person is not specified by detailed material or
component specifications: rather emphasis is on the final measurable performance
characteristics.
Performance testing can refer to the assessment of the performance of a human
examinee.
HUMAN RESOURCE MANAGEMENT
56
Personality Tests
Personality tests aim to describe aspects of a person’s character that remains stable
throughout that person’s lifetime, the individual’s character pattern of behavior, thoughts,
and feelings. Essentially, a personality test tries to find answers to the following questions
of an applicant:
How does he compare to the average person?
His personality – how was it developed?
What is his relationship style?
What type of person suits him best?
The importance of personality test is to ensure that a company is not hiring
somebody who has some personality disorder. Personality tests have their own usefulness
provided that the test measure is a job-related issue; the tests should not only be the sole
selection device and above all, they must be validated by interview.
THE INTERVIEW
The interview is the cornerstone of the selection process. There are several stages in
purposeful and results-oriented interview:
Stages of the Interview
Preparing for the Interview
Preparation is the key to successful interviews. The place to conduct the interview
must be carefully selected to afford privacy and to avoid interruptions. The interviewer
should go over the resume and application of the candidate and acquaints himself with the
job description and person specifications. The skills and competencies required for the job
should be fresh in the mind of the interviewer before the interview begins.
Making a Friend
Why make a friend? The answer is simple: “to make the applicant open, relax be
straightforward in revealing himself”.
Offer seat to the applicant. Start with a small talk like about the weather, traffic or
something of interest to him. After a few minutes of relaxing talk, then, give him the
parameters of the interview: how long will it be, important bits of information that you
would like to know about him and others. The idea is to give you a holistic picture of the
person who you are considering for a job offer.
HUMAN RESOURCE MANAGEMENT
57
Eliciting Information
The basic rule is to avoid asking categorical questions, questions answerable by yes
or no. It would be different if you used open-ended questions. Answers to open-ended
questions must be followed up by probing questions.
Here are some examples of probing and open-ended questions:
What were some of the problems you faced? What caused this to occur?
Why did you take up Accounting as you basic course?
Which of you school years was most difficult? Why?
Here are some samples of questions about his fitness to work in your company:
Why do you want to work here?
Where else were you applying?
Do you prefer working with others or alone?
In the solicitation of information from the applicant, most of the talking must be
done by him. The interviewer who does most of the talking is not interviewing but is being
interviewed.
Observing Behavior
There are two skills that you want to find out in the interview:
Hard skills – these skills are subjected to performance test such as computer
literacy, typing speed and many more.
Soft skills – these are the competencies that are mostly behavioral. They can only be
observed and discerned through skillful interview.
Concluding the Interview
This is the final stage of the actual interview. Before you close the interview, it is a
good practice to allow the applicant the opportunity to ask questions. This portion of the
interview is the time for you to project the good image of the company. If the applicant asks
about your impressions of him and his chance of getting employed, decline any comment
and tell him instead that you are still in the process of considering other applicants and will
inform him of the decision in due time.
In closing the interview, summarize what had been covered, thank the applicant for
his time in the interview and his interest in joining the company.
Evaluating Results of the Interview
Rule No. 1 – Do it immediately after the interview
Rule No. 2 – The results of the interview must be evaluated against certain criteria
Criteria are the variable factors set by the company against whom the applicant is
measured.
Here are the suggested list of criteria:
Intelligence Decisiveness Energy
HUMAN RESOURCE MANAGEMENT
58
CHALLENGE YOURSELF!
You are now getting into an ideal situation in business nowadays.
Exercise No. 1
Instruction: Read the case study and answer the following questions.
Vangie Villela, the personnel officer of Caffmaco Feeds, quickly realized that
dilemma she faced as she received the application file of Angela Joy. Angela Joy had applied for a
position at the sales and marketing department because several openings in that department still
remained. She took the tests for the applicants but was not able to get to the next stage which is
the interview because her test scores were way too low for the job. Vangie was unsure whether
Angela Joy would be able to learn the job and do it well.
Angela Joy’s application indicated that she was a recent commerce graduate who
never had a full-time job. Her best recommendation was a letter from Mr. Max Ditangan, the
general manager of the company. Max described Angela Joy as an excellent worker and “the kind
person our company ought to employ.” Angela Joy had been a babysitter for the Ditangan family
and lived on the same street.
Although Angela Joy’s application and letter of recommendation were very
positive, Vangie doubted that she would succeed at the department because of the result of her
tests.
Angela Joy would be a very pleasant and cooperative employee and hiring her
would please Mr. Ditangan. But could she do the job?
1. If you were Vangie, would you hire Angela Joy and disregard her test scores? Explain
your decision.
2. What is your recommendation to help Vangie solve this problem?
HUMAN RESOURCE MANAGEMENT
59
3. Were the selection process followed in the case study? Justify your answer.
Remember: Make decision to hire only after careful consideration of the information gathered
and soft skills observed. Sometimes, you can be carried by your own biases and wrong
impressions. You must strive to resist these temptations and make your decision based on the
hard, cold facts and objective observations gathered and synthesized.
Take a deep breath because there’s more! The role of an HR does not stop in selecting the desirable
applicant. The newly hired employee should be oriented to the new environment that he will be
working.
HUMAN RESOURCE MANAGEMENT
60
LET’S EXPLORE!
ORIENTATION: THE ACCULTURATION PROCESS
Definition:
Orientation is the acculturation process to assist new employees in adjusting to their
jobs and work environment and instill a positive work attitude and motivation.
Orientation is the socializing process, the welcome and the initial introduction to the
organization, and the work of the employee.
Major Objectives of Orientation are to:
Gain employee commitment
Reduce one’s anxiety
Help the employee understand organization’s expectations
Convey what he can expect from the job and the organization
ELEMENTS OF A GOOD ORIENTATION PROGRAM
A Formal Orientation Process should include the following components:
Welcome to the Company
The welcome of the company should start off with a welcome by the human resource
department head and a pep talk by the CEO. Other parts of the welcome portion are:
Giving the overview of the company
Explaining the Vision, Mission, Values and Culture of the company
Tour of the Facilities
It is important for new employees to be toured around the facilities of the company. It
help them feel “at home” in their surroundings. The tour should include the plant or office
facilities, the office of the Human Resource Department, and offices of other executives. The
tour should also include the medical clinic, cafeteria, locker rooms and rest rooms.
Introduction to Top Management and Co-Workers
To be introduced and welcomed on board by top executives gives a sense of
importance to new employees. It is also absolutely important to be introduced to co-workers
and immediate superior with whom they will be interacting with regularly. The co-workers
will always be the source of strength and support in the first few weeks of months after the
formal orientation.
HUMAN RESOURCE MANAGEMENT
61
Completion of Paperwork
Vital paperwork should be completed at the time of the orientation. These documents
should be accomplished to complete their individual personnel folder, enrollment with the SSS,
BIR, medical plan, and compliance with payroll requirements.
A checklist of what documents to accomplish would help in avoiding unpleasant events
such as delayed salary payments that would cause early dissatisfaction to new employees.
Review of Employee Handbook
The Employee Handbook provides the new employees thorough information about the
company’s history, policies, rules and regulations with corresponding penalties and
disciplinary procedures, and benefits.
Review of Job Responsibilities
The job description is the best document to review the new employee’s duties and
responsibilities. In the review of the job description, standards should be set against which his
performance will be measured later on. It is best that his immediate superior should establish
the standards with the assistance of the human resource department. The performance
evaluation system must be explained to the new employee.
TAKE NOTE: AVOID INFORMATION OVERLOAD!
EFFECTS OF GOOD ORIENTATION
1. Reduces Start-Costs – proper orientation can help the employee “get up to speed”
much more quickly, thereby reducing the costs associated with learning the job
2. Reduces Employee Turn-over – good orientation shows that the organization values
the employee, and helps provide the tools necessary for succeeding in the job
3. Saves time for Supervisor and Co-workers – the better the initial induction, the less
likely supervisors and co-workers will have to spend time teaching the employees
4. Develops Positive Job Expectations, Positive Attitudes and Job Satisfaction – new
hires learn as soon as possible what is expected of them, and what to expect from
others. Furthermore, they learn about the values and culture of the organization.
Orientation eases the sometimes painful transition to a new firm. A successful orientation creates
a “good feel” in the employee and acts as a good retention tool and motivator.
HUMAN RESOURCE MANAGEMENT
62
UNLOCK THE ACTIVITY!
Let us check the knowledge you gather so far on this topic. Answer the activities below.
ACTIVITY NO. 1
Instruction: Determine whether it is a Selection or Orientation. Justify your answer.
Answer Justification
1. Johnny reviews the
applications and bio data
passed by all the
applicants who passed
the interview.
2. Fe assisted in handling
the employee handbook
to the new employees.
She also explains the
important parts in the
employee handbook.
3. Helen processed all the
paperwork like the
individual personnel
folder and enrollments to
different government
agencies. All documents
are ready for signature.
HUMAN RESOURCE MANAGEMENT
4. Jenny is the one who
accompany the new
recruits to have a tour in
the company facility. All
departments were
introduced including the
production area of the
company.
5. Bryan is an HR Manager,
he finalizes everything
that happens during the
interview. He reviewed
and evaluated
6. After reviewing all the
applications who are
qualified for the job, Jane
prepares all the
questionnaires that will
be answered.
7. Harry is a newly hired
employee. Debra
introduces him to the
management and his co-
workers for him to have
the sense of
belongingness in the
company.
63
HUMAN RESOURCE MANAGEMENT
64
8. Brenda who has been
working as an HR
Assistant for 3 years is
already an expert in
selecting the place where
to conduct the interview.
She always made sure
that there will be no
interruptions that will
occur during the process.
9. Mary is known to be strict
in the company. She is
very keen in choosing
who among the applicant
fits the job descriptions.
Thus, she always do an
immediate evaluation
every after interview
process.
10. JC is already introduced
by Karen to his
supervisor. His
supervisor give him a
review of what are his job
responsibilities. He was
also given a heads up that
there will be a
performance evaluation
every 6 months in the
company.
ACTIVITY NO. 2
Instruction: Write TRUE if the statement is correct, FALSE if otherwise.
1. An orientation is boring if you overwhelm the new hires with
facts, figures, names and faces packed into one whole day.
HUMAN RESOURCE MANAGEMENT
65
2. Top Management must be the one to orient the new hired
employees in the company.
3. Good orientation program is interactive. It provides
opportunity for employees to ask questions and helps them
feel comfortable with the firm and with their choice of
employer.
4. The basic rule in eliciting information is to avoid asking
categorical questions. Questions like: “Did you go to college?” –
is answerable by yes or no.
5. Preparing for an interview does not include the place where to
conduct the interview. It is the availability of the interviewer
that will be considered on where she wants to conduct the
interview.
6. It is important to make the decision to hire only after careful
consideration of the information gathered and soft skills
observed during the interview.
7. You have to tell the applicant after the interview if he has the
chance to get hired in the company or not to avoid giving false
hope.
8. You may not include in the welcoming portion of the employee
the overview of the company, its vision and mission. You only
have to introduce him to the top management and co-workers.
9. Orientation helps to reduce anxiety in entering into an
unknown situation and it encourages new employee to create
a sense of family belongingness among management only
where it is introduced.
10. A formal orientation process should include the following
components: making a friend, eliciting information, observing
behavior, concluding the interview, and evaluating results.
REFERENCES:
Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc.
Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.

More Related Content

What's hot

Context of hrm and challenges
Context of hrm and challengesContext of hrm and challenges
Context of hrm and challengesPrakash Dhakal
 
Evolution of management theory
Evolution of management theoryEvolution of management theory
Evolution of management theoryshrinivas kulkarni
 
Purposes and objectives of human resource mangement
Purposes and objectives of human resource mangementPurposes and objectives of human resource mangement
Purposes and objectives of human resource mangementNeena Khala
 
Dessler 01
Dessler 01Dessler 01
Dessler 01saad48
 
The evolution of management theory
The evolution of management theoryThe evolution of management theory
The evolution of management theoryroyanup
 
Chapter 1 introduction to compensation and benefits.pptx
Chapter 1 introduction to compensation and benefits.pptxChapter 1 introduction to compensation and benefits.pptx
Chapter 1 introduction to compensation and benefits.pptxmilamilamila00
 
Human resource-management
Human resource-management Human resource-management
Human resource-management Preeti Bhaskar
 
Approaches of management
Approaches of managementApproaches of management
Approaches of managementpallavmanglik
 
1 history & evolution of management thought
1 history & evolution of management thought1 history & evolution of management thought
1 history & evolution of management thoughtPir Qasim Shah
 
Strategic Human Resource Management.
Strategic Human Resource Management.Strategic Human Resource Management.
Strategic Human Resource Management.Sufi Nouman Riaz
 
Roles, responsibilities and functions of a manager
Roles, responsibilities and functions of a managerRoles, responsibilities and functions of a manager
Roles, responsibilities and functions of a managerIsha Joshi
 
Human resource management theories
Human resource management theoriesHuman resource management theories
Human resource management theoriesSara Aljanabi
 
An overview of Management and Organization
An overview of Management and OrganizationAn overview of Management and Organization
An overview of Management and OrganizationLeah May Cabugao
 
TRENDS AND ISSUES in HUMAN RESOURCE MANAGEMENT
TRENDS AND ISSUES in HUMAN RESOURCE MANAGEMENTTRENDS AND ISSUES in HUMAN RESOURCE MANAGEMENT
TRENDS AND ISSUES in HUMAN RESOURCE MANAGEMENTJasmin Comoda
 
Retention and seperation module v
Retention and seperation  module vRetention and seperation  module v
Retention and seperation module vSwarup Dutta
 
Hrm ppt compensation administration
Hrm ppt compensation administrationHrm ppt compensation administration
Hrm ppt compensation administrationShashank Gupta
 
Employee Separation and Retention
Employee Separation and RetentionEmployee Separation and Retention
Employee Separation and RetentionDaniel Edward Ricio
 
Principles of Management (MG 6851) Unit i
Principles of Management (MG 6851)  Unit i Principles of Management (MG 6851)  Unit i
Principles of Management (MG 6851) Unit i AntBMaro
 
Strategic Implications of a Dynamic HRM Environment
Strategic Implications of a Dynamic HRM EnvironmentStrategic Implications of a Dynamic HRM Environment
Strategic Implications of a Dynamic HRM EnvironmentHaris Bin Zahid
 

What's hot (20)

Context of hrm and challenges
Context of hrm and challengesContext of hrm and challenges
Context of hrm and challenges
 
Evolution of management theory
Evolution of management theoryEvolution of management theory
Evolution of management theory
 
Purposes and objectives of human resource mangement
Purposes and objectives of human resource mangementPurposes and objectives of human resource mangement
Purposes and objectives of human resource mangement
 
Dessler 01
Dessler 01Dessler 01
Dessler 01
 
The evolution of management theory
The evolution of management theoryThe evolution of management theory
The evolution of management theory
 
Chapter 1 introduction to compensation and benefits.pptx
Chapter 1 introduction to compensation and benefits.pptxChapter 1 introduction to compensation and benefits.pptx
Chapter 1 introduction to compensation and benefits.pptx
 
Human resource-management
Human resource-management Human resource-management
Human resource-management
 
Approaches of management
Approaches of managementApproaches of management
Approaches of management
 
1 history & evolution of management thought
1 history & evolution of management thought1 history & evolution of management thought
1 history & evolution of management thought
 
Strategic Human Resource Management.
Strategic Human Resource Management.Strategic Human Resource Management.
Strategic Human Resource Management.
 
Roles, responsibilities and functions of a manager
Roles, responsibilities and functions of a managerRoles, responsibilities and functions of a manager
Roles, responsibilities and functions of a manager
 
Compensation & benefits
Compensation & benefitsCompensation & benefits
Compensation & benefits
 
Human resource management theories
Human resource management theoriesHuman resource management theories
Human resource management theories
 
An overview of Management and Organization
An overview of Management and OrganizationAn overview of Management and Organization
An overview of Management and Organization
 
TRENDS AND ISSUES in HUMAN RESOURCE MANAGEMENT
TRENDS AND ISSUES in HUMAN RESOURCE MANAGEMENTTRENDS AND ISSUES in HUMAN RESOURCE MANAGEMENT
TRENDS AND ISSUES in HUMAN RESOURCE MANAGEMENT
 
Retention and seperation module v
Retention and seperation  module vRetention and seperation  module v
Retention and seperation module v
 
Hrm ppt compensation administration
Hrm ppt compensation administrationHrm ppt compensation administration
Hrm ppt compensation administration
 
Employee Separation and Retention
Employee Separation and RetentionEmployee Separation and Retention
Employee Separation and Retention
 
Principles of Management (MG 6851) Unit i
Principles of Management (MG 6851)  Unit i Principles of Management (MG 6851)  Unit i
Principles of Management (MG 6851) Unit i
 
Strategic Implications of a Dynamic HRM Environment
Strategic Implications of a Dynamic HRM EnvironmentStrategic Implications of a Dynamic HRM Environment
Strategic Implications of a Dynamic HRM Environment
 

Similar to HRM_midterm module.docx.pdf

Similar to HRM_midterm module.docx.pdf (20)

Hrm notes 1
Hrm notes 1Hrm notes 1
Hrm notes 1
 
hrm
hrmhrm
hrm
 
Advanced human resource_management
Advanced human resource_managementAdvanced human resource_management
Advanced human resource_management
 
Hrm 1 vtu_sem_2
Hrm 1 vtu_sem_2Hrm 1 vtu_sem_2
Hrm 1 vtu_sem_2
 
Chapter 1: Introduction to HRM
Chapter 1: Introduction to HRMChapter 1: Introduction to HRM
Chapter 1: Introduction to HRM
 
hhrrmm.pdf
hhrrmm.pdfhhrrmm.pdf
hhrrmm.pdf
 
Introduction to Human Rresource M Lecture 1.ppt
Introduction to Human Rresource M Lecture 1.pptIntroduction to Human Rresource M Lecture 1.ppt
Introduction to Human Rresource M Lecture 1.ppt
 
Hrm ignou
Hrm ignouHrm ignou
Hrm ignou
 
Tescos assignment
Tescos assignmentTescos assignment
Tescos assignment
 
1-HRM-and-Development.pptx
1-HRM-and-Development.pptx1-HRM-and-Development.pptx
1-HRM-and-Development.pptx
 
INTEGRATED PEOPLE IN ORGANISATIONS
INTEGRATED PEOPLE IN ORGANISATIONS
INTEGRATED PEOPLE IN ORGANISATIONS
INTEGRATED PEOPLE IN ORGANISATIONS
 
1 introduction to hrm
1 introduction to hrm1 introduction to hrm
1 introduction to hrm
 
Evolution of hr[2]
Evolution of hr[2]Evolution of hr[2]
Evolution of hr[2]
 
Hrm Reflective Essay
Hrm Reflective EssayHrm Reflective Essay
Hrm Reflective Essay
 
Importance of Human Resource Management in 21st Century
Importance of Human Resource Management in 21st  CenturyImportance of Human Resource Management in 21st  Century
Importance of Human Resource Management in 21st Century
 
Introduction to hrm
Introduction to hrmIntroduction to hrm
Introduction to hrm
 
history of hr
history of hrhistory of hr
history of hr
 
Hrm presentation.pptx
Hrm presentation.pptxHrm presentation.pptx
Hrm presentation.pptx
 
management .pptx
management .pptxmanagement .pptx
management .pptx
 
Introduction to human resource management (3)
Introduction to human resource management (3)Introduction to human resource management (3)
Introduction to human resource management (3)
 

Recently uploaded

LPC Warehouse Management System For Clients In The Business Sector
LPC Warehouse Management System For Clients In The Business SectorLPC Warehouse Management System For Clients In The Business Sector
LPC Warehouse Management System For Clients In The Business Sectorthomas851723
 
Measuring True Process Yield using Robust Yield Metrics
Measuring True Process Yield using Robust Yield MetricsMeasuring True Process Yield using Robust Yield Metrics
Measuring True Process Yield using Robust Yield MetricsCIToolkit
 
LPC Operations Review PowerPoint | Operations Review
LPC Operations Review PowerPoint | Operations ReviewLPC Operations Review PowerPoint | Operations Review
LPC Operations Review PowerPoint | Operations Reviewthomas851723
 
Reflecting, turning experience into insight
Reflecting, turning experience into insightReflecting, turning experience into insight
Reflecting, turning experience into insightWayne Abrahams
 
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Room
VIP Kolkata Call Girl Rajarhat 👉 8250192130  Available With RoomVIP Kolkata Call Girl Rajarhat 👉 8250192130  Available With Room
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Roomdivyansh0kumar0
 
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...Pooja Nehwal
 
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why DiagramBeyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why DiagramCIToolkit
 
ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...
ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...
ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...AgileNetwork
 
Fifteenth Finance Commission Presentation
Fifteenth Finance Commission PresentationFifteenth Finance Commission Presentation
Fifteenth Finance Commission Presentationmintusiprd
 
Simplifying Complexity: How the Four-Field Matrix Reshapes Thinking
Simplifying Complexity: How the Four-Field Matrix Reshapes ThinkingSimplifying Complexity: How the Four-Field Matrix Reshapes Thinking
Simplifying Complexity: How the Four-Field Matrix Reshapes ThinkingCIToolkit
 
Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)
Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)
Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)jennyeacort
 
Farmer Representative Organization in Lucknow | Rashtriya Kisan Manch
Farmer Representative Organization in Lucknow | Rashtriya Kisan ManchFarmer Representative Organization in Lucknow | Rashtriya Kisan Manch
Farmer Representative Organization in Lucknow | Rashtriya Kisan ManchRashtriya Kisan Manch
 
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证jdkhjh
 
Board Diversity Initiaive Launch Presentation
Board Diversity Initiaive Launch PresentationBoard Diversity Initiaive Launch Presentation
Board Diversity Initiaive Launch Presentationcraig524401
 
Unlocking Productivity and Personal Growth through the Importance-Urgency Matrix
Unlocking Productivity and Personal Growth through the Importance-Urgency MatrixUnlocking Productivity and Personal Growth through the Importance-Urgency Matrix
Unlocking Productivity and Personal Growth through the Importance-Urgency MatrixCIToolkit
 
Introduction to LPC - Facility Design And Re-Engineering
Introduction to LPC - Facility Design And Re-EngineeringIntroduction to LPC - Facility Design And Re-Engineering
Introduction to LPC - Facility Design And Re-Engineeringthomas851723
 

Recently uploaded (17)

LPC Warehouse Management System For Clients In The Business Sector
LPC Warehouse Management System For Clients In The Business SectorLPC Warehouse Management System For Clients In The Business Sector
LPC Warehouse Management System For Clients In The Business Sector
 
Measuring True Process Yield using Robust Yield Metrics
Measuring True Process Yield using Robust Yield MetricsMeasuring True Process Yield using Robust Yield Metrics
Measuring True Process Yield using Robust Yield Metrics
 
sauth delhi call girls in Defence Colony🔝 9953056974 🔝 escort Service
sauth delhi call girls in Defence Colony🔝 9953056974 🔝 escort Servicesauth delhi call girls in Defence Colony🔝 9953056974 🔝 escort Service
sauth delhi call girls in Defence Colony🔝 9953056974 🔝 escort Service
 
LPC Operations Review PowerPoint | Operations Review
LPC Operations Review PowerPoint | Operations ReviewLPC Operations Review PowerPoint | Operations Review
LPC Operations Review PowerPoint | Operations Review
 
Reflecting, turning experience into insight
Reflecting, turning experience into insightReflecting, turning experience into insight
Reflecting, turning experience into insight
 
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Room
VIP Kolkata Call Girl Rajarhat 👉 8250192130  Available With RoomVIP Kolkata Call Girl Rajarhat 👉 8250192130  Available With Room
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Room
 
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
 
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why DiagramBeyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
 
ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...
ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...
ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...
 
Fifteenth Finance Commission Presentation
Fifteenth Finance Commission PresentationFifteenth Finance Commission Presentation
Fifteenth Finance Commission Presentation
 
Simplifying Complexity: How the Four-Field Matrix Reshapes Thinking
Simplifying Complexity: How the Four-Field Matrix Reshapes ThinkingSimplifying Complexity: How the Four-Field Matrix Reshapes Thinking
Simplifying Complexity: How the Four-Field Matrix Reshapes Thinking
 
Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)
Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)
Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)
 
Farmer Representative Organization in Lucknow | Rashtriya Kisan Manch
Farmer Representative Organization in Lucknow | Rashtriya Kisan ManchFarmer Representative Organization in Lucknow | Rashtriya Kisan Manch
Farmer Representative Organization in Lucknow | Rashtriya Kisan Manch
 
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
 
Board Diversity Initiaive Launch Presentation
Board Diversity Initiaive Launch PresentationBoard Diversity Initiaive Launch Presentation
Board Diversity Initiaive Launch Presentation
 
Unlocking Productivity and Personal Growth through the Importance-Urgency Matrix
Unlocking Productivity and Personal Growth through the Importance-Urgency MatrixUnlocking Productivity and Personal Growth through the Importance-Urgency Matrix
Unlocking Productivity and Personal Growth through the Importance-Urgency Matrix
 
Introduction to LPC - Facility Design And Re-Engineering
Introduction to LPC - Facility Design And Re-EngineeringIntroduction to LPC - Facility Design And Re-Engineering
Introduction to LPC - Facility Design And Re-Engineering
 

HRM_midterm module.docx.pdf

  • 1. 11 Topic 1 Introduction to Human Resource Management Human Resource Management is (HRM or HR) is the strategic approach to the effective management of people in a company or organization in such that they help their business gain a competitive advantage. LEARNING OUTCOMES: At the end of this topic, you must be able to: 1. Collect information on the beginning and development of human resources management. 2. Reflect on the challenges that organizations may encounter in managing human resources in the present. LET’S BEGIN!  To give you a thrill, let us start with the challenges of managing human resources today! The table below shows some of the changes that are occurring in business nowadays. You reflect as to why these changes become a challenge in managing HRM. THE CHALLENGE OF MANAGING HUMAN RESOURCES TODAY Changing Employee Expectations One must recognize that today’s workforce comprise of several generations: Silent Generation – born before 1946 Baby Boomers – born between 1946 and 1964 Generation X – born between 1965 and 1980 Generation Y – born between 1981 and 1997 Generation Z – born between 1998 and 2010 Generation Alpha – born between 2011 and 2025 Each generation has different set of values, aspirations, and each with unique perspective and attitude towards work. Rapidly Changing Technology Companies must invest millions of money in training and development to update their employee’s skills to keep pace with changing technology. They must hire more skilled workforce and redesign jobs to take advantage of this new technology. Emphasis on Increased Productivity The need to increase productivity must be balanced by the need to contain cost and improve quality. Organizations will now focus more on competencies of their employees. This include tangible skills and knowledge and intangible aspects required of the job such as attitude, values, and interactive abilities of the job holder.
  • 2. 12 Most business organizations today, wherever possible, prefer to adopt flexibility in the acquisition of human resources. It is not easy under our laws to terminate theservices of employees when nolonger needed. This prompted some employers to resort to outsource their New Modalities of Employment – temporary employers from labor service to Outsourcing contractors. Outsourcing has changed the human resource dimension in many organizations. As a result, some employees are laid off, some are contractual basis while some are on a definite period of employment. Flatter Organization In a flatter organization, people are expected to produce more using fewer resources. Multitasking is required as they are asked toperforma varietyof ever- changing roles, taking new responsibilities, and significantly change the job contents of the incumbents. The restructuring of organizations, impacts on human resource management in many ways. Fall of the Command-and-Control Barking orders to subordinates is no longer effective way of getting things done by people. The workforce is getting more educated, better informed, and aware of their rights. Interpersonal relations must be strongly developed to get the support and cooperation of the subordinates. Manager It is concluded that managing human resources is indeed one of the greatest challenges confronting businesses/organizations today. It has been growing focus in our highly competitive world of business. CHALLENGE YOURSELF! Exercise No. 1 Face your own challenge this time. If you are one of the human resources in the company, do you see yourself as a COST or an ASSET? Explain your choice on the box provided. AM I A COST OR AN ASSET?
  • 3. 13 You are actually pondering into the concept of Human Resource Management right now. Read the statement below and check whether you are getting on the right track. Does it makes a difference when you are a cost or an asset? Save your answer to yourself.  THE CONCEPT OF HUMAN RESOURCE MANAGEMENT Human resources in the business sense are people who do the actual work in the organization. They were once viewed as costs. Therefore, people were treated just the way they treated other costs – by cutting or reducing. To explain further, when companies want to cut their losses, they reduced their manpower or their human resources to save costs. But in the early ‘90s, a new concept in treating human resources has evolved. People are no longer treated as costs but assets. People are treated as investors, they bring into the company their talent, knowledge, skills, competence, values, time and effort. Having invested in this treasure trove of qualities and attributes vital to organization’s success, people demand a fair return of their investments. Thus, the concept of Human Capital was established. Books on human capital were published in the late ‘90s. Notable of which are: “Human Capital” by Thomas O. Davenport and “The Human Capital Edge” by Bruce N. Pfau and Ira T. Kay. SHALL WE TRAVEL? After knowing the concept of HRM, consider yourself as a time traveler. Are you ready? THE ORIGIN AND DEVELOPMENT OF HUMAN RESOURCE MANAGEMENT Today’s perspective has evolved in the 17th century before the start of the industrial revolution. Working arrangements involved close relationships between mentors and apprentices dedicated to a particular trade. With the advent of Industrial Age, the notion of work moved from guilds and home shops to steam-driven factories. The introduction of assembly lines brought a need for low-skilled employees capable of performing repetitive tasks. Assembly line production required large numbers of people come together for work. Employer’s attentions focused on consumer demands, the speed at which new machines produced goods and the processes that drove production – concerns that were sometimes placed well ahead of the needs of employees. This phenomenon led to several theories of managing people. AdamSmith wrote about the economic advantages of the division labor. Known as the father of Capitalism, Smith’s work led to many changes in manufacturing processes. In the early 1800s, governments began to feel pressure from the working class masses who started to ask questions and defy the power of the capitalists. The working class began to form workplace organizations to provide collective voice for their rights. Trade unionism started to gain a foothold not just as a means for protecting and improving worker’s living standards, but also as a vehicle for changing the entire political and economic order of society. At the turn of the20th century, Frederick W. Taylor, considered to the father of Scientific Management. He developed a concept of work design, work measurement, production control and other functions that completely changed the nature of industry. TheHawthornestudies ushered anew era of managing human resources. Thesestudies conducted from 1927 to 1932 at the Western Electric Hawthorne plant by Elton Mayo,
  • 4. 14 ultimately brought to light the human element of managing human resources. Mayo’s study highlighted the improved productivity gained by paying attention to workers (referred to as the Hawthorn effect) and the significant role social relationships played in the workplace. Today’s focus on the human element is seen in enriched jobs, increased empowerment, and participation in decision-making in the workplace. Get a hold of yourself because there’s more! You have to observe the change from the past to the present. The table below shows you the delineation between Personnel and HRM in matrix form. THE TRANSITION FROM PERSONNEL TO HUMAN RESOURCE MANAGEMENT Dimensions Personnel and Industrial Relations Human Resource Management Beliefs and Assumptions Contract Careful delineation of written contracts Aim to go ‘beyond contract’ Rules Importance of devising clear rules/mutuality ‘Can do’ outlook; impatience with ‘rules’ Guide to management action Procedures/ consistency/ Control ‘business need’, flexibility and commitment Behaviour referent Norms/ customs and practice Values/ mission Managerial task vis-à-vis labour Monitoring Nurturing Nature of relations Pluralist Unitarist Conflict Institutionalized De-emphasized Standardization High (e.g. ‘parity’ and issue) Low (e.g. ‘parity not seen as important) Strategic Aspects Key relation Labour-management Business-customer Initiative Piecemeal Integrated Corporate Plan Marginal to Central to Speed of decision Slow Fast Line Management Management role Transactional Transformational leadership Key Management Personnel/HR specialist General/ business/ line managers Prized management skills Negotiation Facilitation Key Levers Foci of attention of interventions Personnel procedures Wide-ranging cultural structure and personnel strategies
  • 5. 15 Selection Separate marginal task Integrated, key task Play Job evaluation; multiple fixed grades Performance related: few, if any, grades Conditions Separately negotiated Harmonization Labour-management Collective bargaining contracts Towards individual contract Trust of relations with shop stewards Regularized through facilities and training Marginalized (with exception of some bargaining for exchange model Communication Restricted flow/ indirect Increase flow/ direct Job design Division of labour Teamwork Conflict handling Reached temporary truces Manage climate and culture Training and development Control access to courses Learning companies Source: Storey (1995) Let us check the knowledge you gather so far on this topic. Answer the activities below. ACTIVITY NO. 1 Instruction: After reading on the challenges of Human Resources, I want you to write all your thoughts in the table below. Reflect on how these challenges affect human resources today. Express it in your own words. CHALLENGE REFLECTION Changing Employee Expectations
  • 6. HUMAN RESOURCE MANAGEMENT Rapidly Changing Technology Emphasis on Increased Productivity New Modalities of Employment – Outsourcing Flatter Organization 16
  • 7. HUMAN RESOURCE MANAGEMENT 17 Fall of the Command-and- Control Manager ACTIVITY NO. 2 Did you enjoy your time travel? Let’s see what you’ve got in that time machine. Instruction: Arrange the following situational sentences. Use numbers 1-5 to identify the first to last occurrence of events. Write your answer on the box provided. 1. KC applied in XYZ Company and successfully pass their requirements. She is scientifically chosen and is taught the exact way to do the job. There is now a clear division of work in XYZ Company. 2. XYZ is now focusing on the empowerment of human resources. Employees are given the right to participate in the decision making during their meetings to improve management in the company. It is aiming for teamwork to achieve its role in the business world. 3. John is an XYZ employee, he is working in the assembly line production where he will be performing repetitive tasks. In the assembly line production, employees work together to achieve consumer demands. 4. XYZ Company introduced itself in the market. Upon its function, working arrangements involved close relationships between employee and employer. Employees of XYZ Company were often required to live in the company or home of the employer. If the employee is sick, employer is responsible for his/her health and welfare. 5. XYZ Company become a bigger company. Due to massive production, division of labor takes place. This led to many changes in manufacturing process of the company. ACTIVITY NO. 3 Instruction: Write TRUE if the statement is correct and FALSE if otherwise. Write your answer on the box provided. Answer Statement 1. In the future, managing people may be referred to human capital management.
  • 8. HUMAN RESOURCE MANAGEMENT 18 2. To keep pace with rapidly changing technology, less amount of money has to be spent in training and retraining of employees. 3. Barking orders under the command and control concept will be very effective but people empowerment in the workplace will also do. 4. Adam Smith is known as the Father of Capitalism, while Frederick W. Taylor is considered to be the Father of Scientific Management. 5. HRM is defined as the productive use of people in achieving the organization’s strategic business objectives and the satisfaction of individual. 6. Human Capital refers to people in the organization with the same values and aspirations in the business but different cultural and family background, education, attitudes, and temper. 7. HRM is defined as the strategic and coherent approach to the management of an organization’s most valued assets – the people. 8. Personnel management speed of decision is slow compared to HRM. The statement is based from the matrix form of Stredwick’s model of distinguishing Personnel from HRM. 9. Elton Mayo’s study highlighted the improved productivity gained by paying attention to workers (referred to as the Hawthorn effect). 10. One impact of restructuring organizations on HRM is developing and implementing policies to minimize the pain in downsizing. The policies need to set standards from communicating the termination to affected employees only. REFERENCES: Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc. Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.
  • 9. HUMAN RESOURCE MANAGEMENT 19 Topic 2 The Constitutional and Legal Framework Managing human resources is often times fraught with legal implications. LEARNING OUTCOME: At the end of this topic, you must be able to: 1. Identify the different classification of employees and its types of employment. 2. Explain the Labor Code which protects the rights of employees at work. LET’S BEGIN!  To start, let us understand the laws governing the rights of labor. THE CONSTITUTIONAL BASIS The Philippine Constitution laid the basis for protecting the rights and welfare of employees. Declaration of Principles, Article XIII, Section 3 expands its labor policy by providing that: The State shall afford full protection to labor, local and overseas, organized and unorganized, and equality of employment opportunities for all. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, human conditions of work, and a living wage. They shall also participate in policy and decision making processes affecting their rights and benefits as may be provided by the law. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth. THE LABOR CODE – serves as the omnibus enabling statute that gives flesh and meaning to the Labor Policy enunciated in the Philippine Constitution. 6 Major Parts: 1. Pre-employment 2. Human Resources Development Program 3. Conditions of Employment 4. Health, Safety and Social Welfare Benefits 5. Labor Relations 6. Post-Employment
  • 10. HUMAN RESOURCE MANAGEMENT 20 CHALLENGE YOURSELF! Exercise No. 1 To exercise your brain, I want you to think over on this 2 situations. Situation 1 Situation 2 Lexie is employed in ZERO Company. She is given an equivalent salary for her job, bonus and other benefits. The thing is, she always works overtime but never been paid for it. Since Lexie is dedicated to her job, she does not mind if she is being paid for the overtime or not. As long as she enjoy what she’s doing, she is more than happy to work overtime. Jane is working as a production worker at ONE Company. She always reach her quota on time but the line manager requests her to work overtime to fill in the absences of others. She usually goes home late at night. Despite the long days and night of work, Jane is happy. She never miss to harvest the fruits of her labor. Compare both situations and choose which situation can lead to legal dispute whenever the employee speaks of her labor rights. Explain your choice. Write your answer on the box. LET’S EXPLORE! The most important composition in business is human resources and that refers to EMPLOYEES. Now, we identify the different Types of Employees. TYPES OF EMPLOYEES Employer - includes any person acting in theinterest of the employer directly or indirectly Employee - includes any person in the employ of an employer.
  • 11. HUMAN RESOURCE MANAGEMENT 21 Let’s get to know more about employees. This will help you understand how to identify whether the person is an employee or an employer. CLASSIFICATION OF EMPLOYEES Managerial Employee – one who is vested with powers or prerogatives to lay down and execute management policies and/or hire, transfer, suspend, layoff, recall, discharge, assign, or discipline employees. Supervisory Employee – one who, in the interest of employer, effectively recommends such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. Rank and File Employee – one not falling under any of the preceding definitions of managerial or supervisory employee As an employee, you also have to know the Type of your Employment in order to protect yourself from illegal processes. There are 5 types of employment. Article 280 of the Labor Code defines the first 3 types of employment. TYPES OF EMPLOYMENT Regular – an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer Project – the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or services to be performed is seasonal in nature and the employment is for the duration of the season Casual – an employment shall be deemed casual if it is not covered by the preceding paragraph: “Provided that, any employee who has rendered at least one year service, whether such service is continuous or broken, shall be considered a regular employee and his employment shall continue while such activity exists. Probationary – employment shall not exceed six (6) months from date the employee started working, services may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards. An employee who is allowed to work after a probationary period shall be considered a regular employee. Fixed Contract Employee as settled in jurisprudence – employment with a fixed term, where there’s a day certain agreed upon by the parties for the commencement and termination of their employment relationship THIS IS IT! The following are the different BENEFITS and RIGHTS of employees in the company which should be addressed by the employer.
  • 12. HUMAN RESOURCE MANAGEMENT 22 HEALTH, SAFETY AND SOCIAL WELFARE Articles 156 to 161 of the Labor Code require employers to provide medical and dental services.     First-aid medicines and equipment including training for first-aid treatment Full-time registered nurse (50 – 200 employees) Full-time registered nurse, part-time physician, dentist and emergency clinic (200 – 300 employees) Full-time physician, dentist, full-time registered nurse as well as dental clinic, and an infirmary or emergency hospital with one bed capacity for every 100 employees (exceeds 300 employees) EMPLOYEE COMPENSATION AND STATE INSURANCE FUND The State Insurance Fund: Created out of monthly contributions by the employer for the employee Liable for compensation to the employee or his dependents, except when thedisability or death was occasioned by the employees intoxication, willful intention to injure or kill himself or another, or notorious negligence In case the employee’s injury or death was due to failure of the employer to comply with any law, the employer shall pay the State Insurance Fund a penalty of twenty-five percent of the lump sum equivalent of the income benefit payable by the System to the employee. LABOR RELATIONS Definitions: Defined as the aspect or quality that holds together the social partners, labor and capital in the attainment of their mutual goal – just and equitable pay and treatment and fair return of investments Refer to the relationship between employers and employees in industry, and the political decisions and laws that affect it UNFAIR LABOR PRACTICES Those that are covered under Articles 247-249 of the Labor Code. Concepts of Unfair Labor Practice: Violates constitutional right of workers to self-organization Is inimical to the legitimate interests of both labor and management and labor’s right to bargain collectively with freedom and mutual respect. Disrupts industrial peace Hinders promotion of healthy labor management relations Violates civil rights of the parties Is a criminal offense
  • 13. HUMAN RESOURCE MANAGEMENT 23 STRIKES AND WORK STOPPAGES/LOCKOUTS The right to strike is guaranteed by the Constitution and the Law. Employees can only strike on two grounds: Deadlock in Collective Bargaining Negotiations Unfair Labor Practice THE LAW OF TERMINATIONS The law allows terminations of employees due to Just Causes or Authorized Causes: Just Causes o serious misconduct or will disobedience o gross and habitual neglect of duties o fraud or will breach of the trust o commission of a crime or offense against another employee Authorized Causes o installation of labor saving devices or redundancy provided the terminated employee is given one (1) month pay for every year of service o retrenchment to prevent losses or closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing the law, provided, that the employee to be retrenched is given one-half (1/2) month pay per year of service OTHER LAWS: The Wage Rationalization Law (RA 6727) This law rationalize wage fixing of minimum wages and to promote productivity improvement and gain-sharing measures. Anti-Sexual Harassment Law This law protects employees from sexual harassment committed by co-employees. Sexual harassment is a criminal offense punishable by law. (RA 7877) The New Labor Relations This law further strengthens the Constitutional right to self- organization to the disadvantage of companies who want to maintain a no-union status. Law (RA 9481) UNLOCK THE ACTIVITY! Let us check the knowledge you gather so far on this topic. Answer the activities below. ACTIVITY NO. 1 Read and analyze the scenario to answer the following questions. Jojo Santos, 24, is an accounting clerk at Sisayan’s Enterprise. Jojo has been with the company for more than three years.
  • 14. HUMAN RESOURCE MANAGEMENT 24 Arriving from his lunch break, he had bought a bottle of inexpensive rum for his friend’s gathering later at his house. He showed the bottle to the security guard named Joel. Joel has been working as a security guard for 2 years since he is renewing his contract every 3 months. Jojo wants to leave the bottle at the door, but the Joel motioned him to bring it with him. During his afternoon break, Jonald, who is a newly hired officemate, came along and saw the bottle from under Joho’s desk, immediately opened it, and jokingly offered the bottle to Jojo. Jojo gamely obliged and also jokingly acted like drinking from the bottle. Just then, Anthony, a supervisor, appeared from nowhere and accused Jojo of drinking within the company premises and during work hours. Jojo thought he would be reprimanded in the afternoon but it never came. However, unkown to Jojo, Anthony approached Kevin. Kevin is an HR officer who has been in the company for five months. Kevin did not bother to ask the side of Jojo as he considered the account of Anthony as sufficient evidence. The next day, Jojo was surprised to see his termination paper on the desk advising him to get his last salary from the cashier. Jojo then sought the assistance of their labor union. Instruction: Write all the names of employees mentioned above. Identify whether each is an employee or an employer and determine their corresponding type of employment based on their role in the scenario. Employees Employee or Employer Type of Employment 1. 2. 3. 4. 5.
  • 15. HUMAN RESOURCE MANAGEMENT 25 ACTIVITY NO. 2 Looking back on the scenario in Activity 1, answer the following questions below. 1. What are the Labor laws and rights involve in Jojo’s case? Justify your answer. 2. If you were Jojo’s supervisor, what do you think is the best way to handle the situation? Is termination the best solution? Elaborate your answer.
  • 16. HUMAN RESOURCE MANAGEMENT 26 3. If you were Jojo Santos, what are you going to do upon receiving your termination? Give a detailed action plan. ACTIVITY NO. 3 Can you identify whether the person is an employee or an employer? 1. Allen works as a manager for over year in MGC Company. He decides where to assign the newly hired in the production area. 2. Jessie got hired as an announcer in KBC Production. She is still considered as a trainee for 6 months. 3. Hannie works as an HR assistant for 7 months. She is always supporting in the hiring process of the company. 4. From small business, John was able to manage his own business to become a well- known corporation in the industry. 5. Karen is working as an Accountant. She plays an important role in Holland Company while she is also working in her own Accounting Firm. Karen and Holland Company came up their own agreement and arrangement in working as an Accountant.
  • 17. HUMAN RESOURCE MANAGEMENT 27 Instruction: Identify whether the person is an employee or an employer and determine their type of employment in the company. Write your answer on Activity No. 3 in the box below and JUSTIFY your answer. Answer Types of Employment Justification 1. 2. 3. 4. 5. REFERENCES: Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc. Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.
  • 18. HUMAN RESOURCE MANAGEMENT 28 Topic 3 The New Role and Skills of HR Management The function of Human resource professional is to serve as the systematizing, policing arm of the executive management. LEARNING OUTCOME: At the end of this topic, you must be able to: 1. Identify good and bad HR management practices including its different functions and principles 2. Explain the new role of HR and the skills for an effective HR Management. LET’S BEGIN!  To start, let us know HR and its Functions. Human Resources (HR) The personnel of a business or organization that deals with the hiring, administration, and training of employees. set of people who make up the workforce of an organization, business sector, industry, or economy Functions of HR Recruitment, selection and placement Training and development Performance evaluation and management Promotions Redundancy Industrial and Employee Relations Record keeping of all personal data Compensation, retirement, incentive programs Confidential advice to internal customers in relation to problems at work Career development The functions of HR have misperceptions and these becomes a challenge to HR practitioners. Let us know what the misperceptions of HR Function are in order to correct them.
  • 19. HUMAN RESOURCE MANAGEMENT 29 MISPERCEPTIONS REGARDING HR FUNCTION A department whose employees spend 80% of their time on routine administrative tasks. Leaders are unable to describe their contribution to value-added. The department frequently dispenses to others advice on how to eliminate work that does not add value. It is the HR professionals’ fault for allowing this perception to prevail. Thus, corrective action is made. MAKING A CORRECTIVE ACTION HR Department Its purpose is to serve the needs of the company, the managers, and the employees – his constituency – and to balance these needs, to help them get the work done. Not a profit center but it can make a company make things or sell things or services by assisting other departments. CHALLENGE YOURSELF! Exercise No. 1 Analyze the given sentences and identify which is a BAD HR or GOOD HR. Write the word BAD or GOOD in the box. 1. Janine is an HR professional. She works at JBC Corporation and has been working for five years. She dictates the policy in the company whether the other employees agree or not. 2. Nero works with Janine at JBC Corporation as an HR staff. He is approachable and always listens to the feedback of other department with regards to the Rules and Policies set by Janine in the company. 3. Mary works as a supervisor at the same company. Mary reports her subordinate to the HR department for personal issues. After listening to Mary’s concern, HR manager then called out the attention of the employee and listens on the issue. 4. JBC Corporation is hiring new production workers. Ken, HR manager leads the hiring and selection process. He checks whether the applicant is qualified or not before the interview process.
  • 20. HUMAN RESOURCE MANAGEMENT 30 5. Mary calls HR that she wants Sofia to be in Time Management Training. Ken approved her request at once without questions. Based on the Exercise 1.1, how were you able to determine if the HR is good or bad? Now, let us get to know more about HR. This will help you answer the questions on Exercise 1.1 Take Note: The ACT of HR should be balance in order to become a GOOD HR. Balancing Act of Human Resource Professional Here are some examples of their balancing acts: o Serving both management and employees – HR should not be biased o As employee advocate and chief social worker – HR should encourage employees to come to them when they have complaints. HR should be approachable. o “Owning” the people issues – HR should own the employees from the hiring process to being a regular employee in the company. o A rubber stamp of other managers rather than a partner – HR should ask pertinent questions whenever managers recommend someone in business. LET’S EXPLORE! You are almost there. To fully understand the functions of HR, let us know its principle and the specific practices that you should do to become a GOOD HR. Developing a Public Statement of the HR Philosophy The consultative function of human resources is that it provides overall guidance and direction on workforce matters. The table below shows you the Federal Express’ Basic Human Resource Principles. Human Resource Principle Specific Practice Build and implement an HRM strategy o Develop a shared philosophy for managing people o Build systems and practices to implement the philosophy Hire the right people o Know what you want o Be selective Keep employees o Reward well o Protect jobs o Promote from within o Share the wealth Invest in employees o Invest in learning o Provide information and support o Encourage autonomy and participation Empower employees o Redesign work o Foster self-managing teams
  • 21. HUMAN RESOURCE MANAGEMENT 31 o Promote egalitarianism Promote diversity o o Be explicit and consistent about the organization’s diversity philosophy Hold managers accountable You now have gathered enough information on becoming a Good HR by knowing its various functions in the company. THIS IS IT! Now, that we had discussed at length the image problem of HR, its functions, implementing HR Philosophy in the organization, let us go to the main topic of the chapter. THE NEW ROLE OF THE HUMAN RESOURCE PROFESSIONAL A Strategic Partner – These strategic HR services that impact on the overall business strategies are the design of work positions, hiring, rewards and recognition, performance, development and appraisal systems, career and succession planning, training and manpower development. Employee Advocate – This advocacy includes expertise in how to create a work environment in which people can be motivated, productive, and happy. Change Champion – The role of the HR Professional must be parallel with the needs of his changing organization. They contribute to the organization by constantly assessing the effectiveness of the HR function. Harness the Benefits of Technology – This enables HR staff more time for valuable strategic activities such as ensuring the company has the necessary skills and competencies to meet its future needs. SKILLS FOR EFFECTIVE HUMAN RESOURCE MANAGEMENT Human or Interpersonal Relations – HR professional must interface with his peers, with the union in a unionized company, manage his subordinates and also manage his boss. Multitasking – HR professionals will deal with different jobs a day. They must be able to handle them on time all at once. Thus, priorities in business and time management will be considered. Organization – HR professionals must be well-organized. Organized files, strong time management skills and personal efficiency are good indicators of a well-organized human resource function. Ability for a Dual Focus – HR professionals have to consider the need of both employees and management. This involves a fair and impersonal judgment of what is right under circumstances.
  • 22. HUMAN RESOURCE MANAGEMENT 32 Trust and Confidence – HR professionals holds all information confidential. This enhances their role as consultant, advisor, and coach of the organization and confidant of the employees. Dedication to Continuous Improvement – HR professionals need to train managers how to coach and develop their employees. Negotiating and Problem – Solving – HR professionals looks at the problem, considers the personalities, examines the issues and presents himself as the mediator and problem – solver. Team-Oriented – HR professionals must be sociable, an extrovert and sensitive to the needs, values, and feelings of others to win their cooperation and collaboration in order to attain the overall goals of the organization. Honesty and Integrity – HR professionals are the conscience of the company and the keeper of its moral image. UNLOCK THE ACTIVITY! Let us check the knowledge you gather so far on this topic. Answer the activities below. ACTIVITY NO. 1 Instruction: Create a sentence/sentences that best describe the Skills of an effective HR professional given. Example: GIVEN SENTENCE / SENTENCES 1. Team-oriented Ella participated in a project meeting of the company as a representative from HR department. She is open-minded with the suggestions of her co-workers and is willing to discuss other details for the success of their project. GIVEN SENTENCE / SENTENCES 1. Multitasking
  • 23. HUMAN RESOURCE MANAGEMENT 2. Ability for a Dual Focus 3. Negotiating and Problem-solving 4. Dedication to continuous improvement 5. Organization 6. Trust and Confidence 7. Human or Interpersonal Relations 33
  • 24. HUMAN RESOURCE MANAGEMENT 34 8. Team-oriented 9. Honesty and Integrity 10. Negotiating and Problem-solving ACTIVITY NO. 2 Instruction: Analyze and determine what human resource principle is describe in the HR functions expressed below. Write your answer in the box. 1. Costco Company has a weird success formula set by their HR deparment: pay employees more and charge customers less than its biggest competitor. They believe that if you pay the best wages, you get the highest productivity. 2. HR managers can be very selective and prudent when hiring new employees. They always make sure to employ those who fit on the set standards for the job. 3. Qualification requirements are always set when looking for new employees. HR staff, shortlists applicants who qualified for an interview.
  • 25. HUMAN RESOURCE MANAGEMENT 35 4. HNJ Company is known for their progressive succession planning. HR departments always encourages all employees to grab opportunities set within the company to promote themselves. 5. HR assistant always checks for new trainings and seminars available every the month. These trainings and seminars are budgeted for the improvement of their employees. ACTIVITY NO. 3 Instruction: Read and identify the statement below. Write your answer in the box. 1. Refers to a personnel of a business or organization that deals with the hiring, administration, and training of employees. 2. A principle to employ applicants who meet the requirements and qualifications of the company. 3. It is the function of HR department that refers to the hiring process. 4. Its purpose is to serve the needs of the company, the managers, and the employees by assisting them and helping through trainings. 5. It is a balancing act of HR professionals by controlling their own responsibilities in the management of their employees from the hiring process to regularization. 6. It refers to a new role of HR to support employees which includes expertise in how to create a work environment in which people can be motivated, productive, and happy. 7. A principle to reward, protect and promote employees. 8. The skill of an effective HR that pertains to interactive skills. HR professional should be approachable and sociable to his with his peers. 9. Refers to achieving a conflict resolution between two employees or department.
  • 26. HUMAN RESOURCE MANAGEMENT 36 10. It is a principle in Human Resource from Federal Express that focuses on employee’s development on learning and encourage them to participate with the organizations activities. REFERENCES: Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc. Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.
  • 27. HUMAN RESOURCE MANAGEMENT 37 Module 2: STAFFING: GETTING THE RIGHT PEOPLE FOR THE RIGHT JOB
  • 28. HUMAN RESOURCE MANAGEMENT 38 Topic 1 Human Resource Planning Human Resource Planning is the critical initial step in getting the right people in the right place at the right time. LEARNING OUTCOMES: At the end of this topic, you must be able to: 1. Identify and understand the different processes on Human Resource Planning. 2. Create a simple diagram showing the process of Human Resource Planning. LET’S BEGIN!  Let us define Human Resource Planning. HUMAN RESOURCE PLANNING Definitions: It is the process by which management ensures that it has the right personnel who are capable of completing those tasks that help the organization reach its objectives. It is the development of strategies for matching the size and skills of the workforce to organizational needs. THE HUMAN RESOURCE PLANNING PROCESS Analyzing Forecasting Determining the Future Demand Internal Supply Considerations Assessment of the Internal Labor Supply The External Labor Supply Employing Temporary Workers Notes on Management Succession Planning Implementation and Evaluation of the HR Plan To explain these further, we will discuss each topic on the following pages.
  • 29. HUMAN RESOURCE MANAGEMENT 39 CHALLENGE YOURSELF! Let us check if you already have an idea on this topic. Exercise No. 1 Instruction: Identify the following HR planning processes 1. A process that involves projecting labor needs and the effects they’ll have on a business. 2. It refers to scrutinizing the factors that impact on your firms’ labor demand. The process to understand the external business environment and the trends that occur within it. 3. It is a detailed analysis of how many people are currently in various job categories or have specific skills within the organization. 4. It is the key component of human resource planning which refers to identifying potential successors within the organization, focusing on specific individual managers. 5. It serves as diagnosis of where the process failed and how to prevent it in the future to successfully execute the HR plan. 6. This process revolves around identifying job categories and/or types of skills currently existing and needed in the future. 7. The process by which internal manpower supply is considered and turnover rate is a very important factor. 8. A common practice of outsourcing that affords firm the flexibility needed to operate efficiently in the face of the swings in the demand for goods and services. 9. The process of reviewing into the unemployment and underemployment statistics in the world business in order to ensure the right supply of people at the time they are needed. 10. It is the process by which management ensures that it has the right personnel who are capable of completing those tasks that help the organization reach its objectives. LET’S EXPLORE! You need to expand your ideas to answer the questions on Exercise No. 1.
  • 30. HUMAN RESOURCE MANAGEMENT 40 ANALYZING The first step in the planning process is to analyze the environmental factors that influence on your firm’s labor demand. Example: When a company is growing, it needs more people. A company maintains its relative position in the market may not be in need of more people. Conversely, a company employing a retrenchment strategy will make a plan to reduce its manpower. In the context of these demand and supply constraints on human resources, analysis is the key initial step in the planning process. FORECASTING Forecastingis ascience and less than an art. It is aprocess that involves projecting labor needs and the effects they will have on a business. Example: Some managers are prone to be “empire builders.” They tend to overstaff their departments under the mistaken belief that quantity assures productivity. In this case, the so- called Delphi technique could be applied. Experts, internal and external, take part in a round robin-type decision-making sessions until they arrive at a consensus for the human resource needs. This consensus serves as the forecast of the manpower needs of the organization. DETERMINING THE FUTURE DEMAND This process revolves around identifying job categories and/or types of skills currently existing and needed in the future. Once, identified data will be gathered based on the overall organization plan to predict whether those types of job categories or needed skills will remain constant, or will increase or decrease. Example: A manufacturing company engaged in the manufacture of semiconductor integrated microchips has a strategic plan for its department handling High Performance Microprocessor Chips for Server Solutions. The plan includes the introduction of new automatic assembly equipment for the production department and new process which impacts the productivity of the engineering and production departments. It would involve the reduction of the number of staff from the Production Department and the closure of a major production line. INTERNAL SUPPLY CONSIDERATIONS This process involves internal manpower supply. People who are expected to leave the company must be considered. It comprises an important factor which is turnover: resignation and dismissal.
  • 31. HUMAN RESOURCE MANAGEMENT 41 Example: If the company employed 500 at the start of 2009 and of these, 440 remain in the company at the end of the year, then the stability index would be 88 percent. This gives a positive spin than quoting a 12 percent of wastage index. THE EXTERNAL LABOR SUPPLY The process of reviewing into the unemployment and underemployment statistics in the world business in order to ensure the right supply of people at the time they are needed. Example: Unemployment in the Philippines is high even under normal economic situation. There is therefore an abundance of manpower in the labor marker. However, as intimated earlier, while many are eager to be employed, only a handful are chosen for lack of the necessary skills and competencies required for the job. EMPLOYING TEMPORARY WORKERS It is the flexibility to keep staffing levels optimal as your business needs change. Temporary workers help reduce overall staffing costs, because their presence can keep regular employees fully productive, but not overworked. Example: A company with less regular workers suddenly receives high demand for their supply. The HR management decided hire temporary workers. Aside from saving on cost benefits, there is the ease of terminating their services when they are no longer needed by the company. NOTES ON MANAGEMENT SUCCESSION PLANNING Management succession planning, sometimes called executive succession. It is the key component of human resource planning which refers to identifying potential successors within the organization, focusing on specific individual managers. Example: Joe Silva, who is the Supervisor in Marketing department will retire. Rene Cosco, Jesus Lim and Rey Capco are the candidates identified to replace Mr. Silva. The candidates are rated according to their performance and potential for promotion. Early identification enables the firm to plan for a cross-functional assignment and training to better prepare them.
  • 32. HUMAN RESOURCE MANAGEMENT 42 IMPLEMENTATION AND EVALUATION OF THE HR PLAN The final step in the HR planning process is the implementation and evaluation of results. It serves as diagnosis of where the process failed and how to prevent it in the future to successfully execute the HR plan. Example: The company forecasted a low demand of their products and services.They have calculated to downsize its labor force and offered a severance incentives to employees. It turned out that the forecast of product and service demands was underestimated. The result was disastrous. The smaller workforce could not keep up with the subsequent demand. THIS IS IT! Now that we have discussed the HR Planning processes, let me give you the summary of the topic. Read and understand the summary below. SUMMARY Human resource planning is a valuable tool to guarantee that there will be no shortage of talented individuals with the right skill sets. Like any management tool, forecasting is not an exact science. It can be prone to mistakes. Mistakes can result in undersupply or oversupply of manpower. But you can learn lessons from those mistakes and avoid them in the future. In the process of developing a human resource plan, operating managers must always be consulted since they will be the ones implementing the program. Their departments will also be the ones affected should there be an overestimation or underestimation of manpower requirements. Above all, the human resource plan should be with the imprimatur of the CEO. The vital role of the human resource department is to orchestrate, coordinate in the development and finalization of the plan, oversee its implementation, and monitor the results. Management succession planning, though a segment of the entire resource plan, must be kept separate and limited in its distribution to protect its confidentiality. Despite the infirmities in human resource planning, only by forecasting future needs can a firm take action today to meet tomorrow’s needs. UNLOCK THE ACTIVITY! Let us check the knowledge you gather so far on this topic. Answer the activities below. ACTIVITY NO. 1 Instruction: Write TRUE if the statement is correct and FALSE if otherwise. Write your answer on the box provided.
  • 33. HUMAN RESOURCE MANAGEMENT Answer Statement 11. In human resource planning, questions like “How many people will be needed for the organization t meet its objectives?” and “What new skills will be required of the current work force?” must be considered. 12. The first step in the planning process is to analyze the environmental factors. Thus, planners must minimize some errors by using scientific methods. 13. Turnover rate is a very important factor to be considered in your internal manpower supply. Turnover takes place when HR department hires new recruits in the company for temporary appointments. 14. Turnover happens due to resignation or dismissal. These occurs because the employee might be accepting a job elsewhere or misconduct in the company. 15. Looking for the “best fit person for the job” is a continuing challenge for human resource professionals. 16. Outsourcing of employees is a common practice. In availing for temporary workers, it should be more than the regular employees in order for the company to be more productive and reach its goal. 17. The final step in the HR planning process is the implementation and evaluation of results. Success is gauged on whether the plan was able to avoid a labor shortage or surplus. 18. Promoting from within is indeed a good policy. It builds company loyalty and provides incentive for ambitious high flyers to build a career rather than looking for “greener pastures” outside. This process describes “the external labor supply”. 19. After having determined the human resources demand, you would now look at the supply side. If in the forecast of your demand, you foresee an excess of your present manpower, then, you will have to plan how to downsize your staff. 20. In the management succession planning, only one candidate must be identified for replacement. The candidate must be trained to better prepare for the higher position. It will include the formal management training. 43
  • 34. HUMAN RESOURCE MANAGEMENT 44 ACTIVITY NO. 2 Instruction: Create your own simple diagram showing the Process of Human Resource Planning. REFERENCES: Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc. Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.
  • 35. HUMAN RESOURCE MANAGEMENT 45 Topic 2 The Human Resource Recruitment Recruitment remains one of the most critical functions of the human resource department. LEARNING OUTCOME: At the end of this topic, you must be able to: 1. Classify and understand internal recruitment’s advantages and disadvantages from external recruitment’s advantages and disadvantages in the organization. 2. Identify and arrange the Stages of Recruitment LET’S BEGIN!  Let us define Human Resource Recruitment. HUMAN RESOURCE RECRUITMENT Definitions: It is a strategic process of finding and hiring the best-qualified candidate from within or outside of an organization for a job opening in a timely and cost-effective manner It is a strategic process that connects candidates who need what you have to offer and who possess the skills and aptitude to accomplish your goals and objectives. It is important to adopt a Recruitment Policy that encompasses your firm’s code of conduct in attracting the best qualified candidates, the rules to be followed and the standards to be reached. The policy should be directed to the following objectives: Hire the right person; Conduct a wide and extensive search of the potential position candidates; Recruit staff who are compatible with the style of management and the culture of your company; Handle applications with due diligence, speed, and courtesy; Hire from within and develop existing employees to qualify them for consideration for promotion; Make sure that no false or exaggerated claims are made in recruitment announcements or help wanted advertisements; and Place individuals in positions with responsibilities and train them to enhance their career and personal development. Take Note: Recruitment should be planned, implemented and evaluated to ensure that the best qualified candidate is hired and provided the best opportunity for training and development to enhance his personal career in the company.
  • 36. HUMAN RESOURCE MANAGEMENT 46 CHALLENGE YOURSELF! Take this dare and check your comprehension. This is a truth and a dare. Exercise No. 1 Instruction: Identify the advantages and disadvantages of internal recruitment and external recruitment. Write the word Advantage or Disadvantage for your answers. 1. It is usually cheaper in terms of starting pay and faster to fill up internal vacancies. 2. Brings in an opportunity to acquire new skills and competencies not found in the organization. 3. Usually more costly to hire somebody from outside. 4. Savings can be made since individuals with inside knowledge of how business operates will need shorter periods of training and time for “fitting in”. 5. The management will have to replace the person who has been promoted, creating a ripple effect – more job openings occur as employees are moved about. 6. Promoting from within may upset some inside the company thereby lowering the morale of those not selected for the position. 7. The outsider does not fit into the organization’s culture. 8. Draws upon a wider rangeof talent, and provides the opportunity to bring new experience and ideas into the organization, enhancing creativity and innovation. 9. It improves employee’s morale; it acts as an incentive to all staff to work harder within the organization. 10. Deprives the company from getting fresh views and new ways of doing things. 11. Enables the organization to hire people with knowledge of competitors’ secrets – an easy though arguably dubious way of conducting competitive intelligence gathering. 12. From the company’s point of view, the strengths and weaknesses of an insider will have been assessed. It has potential then for a better success rate since the track record of the employee is known. 13. Creates negative internal competition for the position.
  • 37. HUMAN RESOURCE MANAGEMENT 47 14. Some risks in failure, i.e., an employee could be less effective in actual job than what appears on paper application and interview. 15. Internal employees are already attuned to the culture of the organization. 16. An insider may be less likely to make essential criticisms to get the company working more effectively. 17. The organization is unlikely to be disrupted by someone used to working with others in the company. 18. Keeps propriety and industry knowledge inside the organization. 19. Takes a longer time to get acclimated to the job and to the organization’s culture. 20. May demoralize employees who did not get the promotion and adversely affect their commitment levels. You are actually looking into the Policy of Attracting Internal Versus External Applicants.This will help you answer Exercise No. 1. NOTES ON THE POLICY OF ATTRACTING INTERNAL VERSUS EXTERNAL APPLICANTS Each organization should be flexible in adopting recruiting options to make sure the position is filled when needed. Internal Recruitment means that only employees within the organization can apply on the vacant position. It is limited, thus the organization may already have the potential candidates for the position. This does not give opportunities to other applicants from outside the organization. External Recruitment means that it has a wider range of hiring employees. Applicants from outside the organization have the opportunities to apply. Thus, this brings also an opportunity for the company to acquire new skills and competencies in the management. It is up to the organization to weigh the advantages and disadvantages of each option. LET’S EXPLORE! Recruitment process does not stop on the policy or how it is sourced. Let us discover and learn more on this topic. STAGES OF RECRUITMENT
  • 38. HUMAN RESOURCE MANAGEMENT 48 Determine whether a vacancy exists A vacancy may occur in two ways: 1. When an employee resigns, retires, dies, or is discharged from the service 2. When a new position is created as a result of expansion, restructuring, or reorganization Prepare Job Description and Person Specification Job Description is principally used for recruitment as a guide on how a particular employee will fit into the organization. It will therefore need to set out the title of the job to whom the employee is responsible, for whom the employee is responsible, and a simple job description of the role and duties of the employee in the organization. Person Specification goes beyond a mere job description. In addition, it highlights the mental and physical attributes required of the job holder. Media Announcement Media announcement would vary. The most common means are through: Bulletin boards Word of mouth Professional journals such as PMAP’s People Magazine, etc. Employment agencies, headhunters Campus recruitment Website job market Job fairs Newspaper advertisements Summer cadre training Managing the Response Manage the response of your announcement of recruitment by considering the medium you are using to advertise the vacancy. To discourage those obviously not qualified to apply, you should spell out not only the job description but also the person specifications of the job. Short-listing Discarding those who are not qualified from those who are qualified for the posted vacancy The advantage is, you may still be able to pare down the list to the barest minimum by weeding out those who have negative results in the reference and/or background check.
  • 39. HUMAN RESOURCE MANAGEMENT 49 Arrange Interviews The following steps must be observed: 1. Arrange and confirm dates and times with candidates. 2. Develop the interview schedule and confirm with all individuals who will be involved in the interview process. 3. Provide interviewers with a job description and person specification of the job. 4. Ensure that all interviewers are trained in the techniques of the interview. 5. Develop an evaluation tool for all interviewers to use upon completion of the interview. Reference/Background Checks Reference and background checks should be made only for those candidates who have advanced to the finalist stage and who are in serious condition for the job. It is usually done by calling the character references provided by the applicant. These can be his previous employer, friends or relatives. Offer to Hire Once the candidate is chosen, the job will be offered to him. Important issues that should be addressed in the job offer are: 1. Starting pay, salary progression; 2. Starting date; 3. Tenure of the contract, whether temporary, casual, for fixed term or period, probationary or regular; 4. Benefits; and 5. Any other points of negotiation. The candidate should be given time to either accept or reject the offer. Once the candidate of choice accepted the position, the written appointment shall be made confirming the offer and for the candidate to sign his conformity on the space provided in the letter. We are done with the Stages of Recruitment. Finding the best people who can fit within your culture and contribute within your organization is a challenge and an opportunity that should not be left without any planning. The key is to build a pool of talents before you need it. You must have your own Recruitment Policy that will guide everyone in your company in how to attract talented people. UNLOCK THE ACTIVITY! Let us check the knowledge you gather so far on this topic. Answer the activities below. ACTIVITY NO. 1 Check your answers on Exercise No. 1 to answer this activity.
  • 40. HUMAN RESOURCE MANAGEMENT 50 Instruction: Using the same statements of advantages and disadvantages in Exercise No. 1, determine whether it is an Internal Recruitment or External Recruitment. Write the statements on the box provided below. INTERNAL RECRUITMENT Advantages Disadvantages
  • 41. HUMAN RESOURCE MANAGEMENT EXTERNAL RECRUITMENT Advantages Disadvantages 51
  • 42. HUMAN RESOURCE MANAGEMENT 52 ACTIVITY NO. 2 Instruction: Identify the following Stages of Recruitment based on the statement below. 1. Jackie is an HR staff assigned in the hiring process of the company. She advertises their vacancy on the newspaper and also on their website to attract more applicants. 2. Laury is a new HR staff, she was told by Jackie to gather all the resume’ of the applicants and check whether they are qualified for the job. After checking the information, she is asked to give her the list of those who qualify. 3. Mrs. Reyes, will retire soon. She notifies the HR department regarding her retirement. The HR department then plan and prepares for the opening of the position that will be left by Mrs. Reyes. 4. HR Department asks Mrs. Reyes the responsibilities of her position. She is also asked what might be the mental and physical attributes required to deserve the position she has. 5. Lency follows their protocol by calling some of the people included in the personal data sheet of the applicants. She identify herself and state the reason of her call. She ensures that the information provided about the candidate will remain confidential. 6. Lency submitted her report on the background checking of the applicants. The HR department chooses Ms. Sophia Joson for the job. Ms. Sophia was so happy and accepted the job offer without hesitation. 7. Jackie made sure to include not only the job description but also the job specification in order to lessen her burden from receiving lots of application that may not be qualified for the job. 8. Jackie and Laury contact all the applicants who qualify for the job. While Lency, gives the interviewers a heads- up with the time and date of the interview to clear up their schedules. ACTIVITY NO. 3 Instruction: After identifying the stages of recruitment on Activity No. 2, you can now create a scenario. Using the same sentences on Activity No. 2, arrange the following to create a scenario in the Human Resource Recruitment Process. Write it in a paragraph form.
  • 43. HUMAN RESOURCE MANAGEMENT 53 REFERENCES: Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc. Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.
  • 44. HUMAN RESOURCE MANAGEMENT 54 Topic 3 The Human Resource Selection and Orientation Human Resource selection and orientation are two processes included in getting the right people for the right job. It is one of the core strategic activities of Human Resources Service which is very critical and important to consider before hiring the applicant. LEARNING OUTCOME: At the end of this topic, you must be able to: 1. Determine the Selection and Orientation processes in HRM 2. Explain the stages of selection and formal orientation 3. Conclude the effects of having good orientation program LET’S BEGIN!  Let us discuss Human Resource Selection first. HUMAN RESOURCE SELECTION Definitions: Selection is a critical process that involves choosing from among the best. The responsibility of effective selection rests on the partnership between the human resource professionals and the line managers. THE SELECTION PROCESS The selection process covers the following: Screening applications and resumes Conducting test of the applicants Interviewing Performing reference checking/ background investigations Deciding whether to hire or not Let us now dig deeper into each processes. APPLICATIONS AND RESUMES The application letter is the common starting point in the selection process. Enclosed with the application is the bio-data of the applicant. The bio-data includes, but is not limited to,
  • 45. HUMAN RESOURCE MANAGEMENT 55 his education, career interest or goals. Unless an applicant is a fresh college graduate, the resume includes work experience. CONDUCTING TEST OF APPLICANTS Caution should be taken on employee tests. There are four categories of employee testing: 4 Categories of Employee Tests Ability Tests These tests are assessment instruments used to measure an individual’s ability, mental or physical skills level. They measure variety of areas ranging from verbal, numerical ability, problem-solving, motor or spatial agility, mechanical ability, or finger dexterity such as in typing, or assembling. There are many ability tests available in the market. HR department or the management may also create their own ability tests. Aptitude Tests Aptitude test is a standardized test designed to measure the ability of a person to develop skills or acquire knowledge. It is a test to determine whether somebody is likely able to develop the skills required for a specific kind of work. There are also some career aptitude test that would try to determine one’s interests in something, or style of working and how one interacts with other people. This is especially important when an organization’s culture is focused on teamwork or an applicant is being considered for a supervisory or managerial position. Performance Tests Performance testing covers a broad range of engineering for functional evaluations where a material, product, system, or person is not specified by detailed material or component specifications: rather emphasis is on the final measurable performance characteristics. Performance testing can refer to the assessment of the performance of a human examinee.
  • 46. HUMAN RESOURCE MANAGEMENT 56 Personality Tests Personality tests aim to describe aspects of a person’s character that remains stable throughout that person’s lifetime, the individual’s character pattern of behavior, thoughts, and feelings. Essentially, a personality test tries to find answers to the following questions of an applicant: How does he compare to the average person? His personality – how was it developed? What is his relationship style? What type of person suits him best? The importance of personality test is to ensure that a company is not hiring somebody who has some personality disorder. Personality tests have their own usefulness provided that the test measure is a job-related issue; the tests should not only be the sole selection device and above all, they must be validated by interview. THE INTERVIEW The interview is the cornerstone of the selection process. There are several stages in purposeful and results-oriented interview: Stages of the Interview Preparing for the Interview Preparation is the key to successful interviews. The place to conduct the interview must be carefully selected to afford privacy and to avoid interruptions. The interviewer should go over the resume and application of the candidate and acquaints himself with the job description and person specifications. The skills and competencies required for the job should be fresh in the mind of the interviewer before the interview begins. Making a Friend Why make a friend? The answer is simple: “to make the applicant open, relax be straightforward in revealing himself”. Offer seat to the applicant. Start with a small talk like about the weather, traffic or something of interest to him. After a few minutes of relaxing talk, then, give him the parameters of the interview: how long will it be, important bits of information that you would like to know about him and others. The idea is to give you a holistic picture of the person who you are considering for a job offer.
  • 47. HUMAN RESOURCE MANAGEMENT 57 Eliciting Information The basic rule is to avoid asking categorical questions, questions answerable by yes or no. It would be different if you used open-ended questions. Answers to open-ended questions must be followed up by probing questions. Here are some examples of probing and open-ended questions: What were some of the problems you faced? What caused this to occur? Why did you take up Accounting as you basic course? Which of you school years was most difficult? Why? Here are some samples of questions about his fitness to work in your company: Why do you want to work here? Where else were you applying? Do you prefer working with others or alone? In the solicitation of information from the applicant, most of the talking must be done by him. The interviewer who does most of the talking is not interviewing but is being interviewed. Observing Behavior There are two skills that you want to find out in the interview: Hard skills – these skills are subjected to performance test such as computer literacy, typing speed and many more. Soft skills – these are the competencies that are mostly behavioral. They can only be observed and discerned through skillful interview. Concluding the Interview This is the final stage of the actual interview. Before you close the interview, it is a good practice to allow the applicant the opportunity to ask questions. This portion of the interview is the time for you to project the good image of the company. If the applicant asks about your impressions of him and his chance of getting employed, decline any comment and tell him instead that you are still in the process of considering other applicants and will inform him of the decision in due time. In closing the interview, summarize what had been covered, thank the applicant for his time in the interview and his interest in joining the company. Evaluating Results of the Interview Rule No. 1 – Do it immediately after the interview Rule No. 2 – The results of the interview must be evaluated against certain criteria Criteria are the variable factors set by the company against whom the applicant is measured. Here are the suggested list of criteria: Intelligence Decisiveness Energy
  • 48. HUMAN RESOURCE MANAGEMENT 58 CHALLENGE YOURSELF! You are now getting into an ideal situation in business nowadays. Exercise No. 1 Instruction: Read the case study and answer the following questions. Vangie Villela, the personnel officer of Caffmaco Feeds, quickly realized that dilemma she faced as she received the application file of Angela Joy. Angela Joy had applied for a position at the sales and marketing department because several openings in that department still remained. She took the tests for the applicants but was not able to get to the next stage which is the interview because her test scores were way too low for the job. Vangie was unsure whether Angela Joy would be able to learn the job and do it well. Angela Joy’s application indicated that she was a recent commerce graduate who never had a full-time job. Her best recommendation was a letter from Mr. Max Ditangan, the general manager of the company. Max described Angela Joy as an excellent worker and “the kind person our company ought to employ.” Angela Joy had been a babysitter for the Ditangan family and lived on the same street. Although Angela Joy’s application and letter of recommendation were very positive, Vangie doubted that she would succeed at the department because of the result of her tests. Angela Joy would be a very pleasant and cooperative employee and hiring her would please Mr. Ditangan. But could she do the job? 1. If you were Vangie, would you hire Angela Joy and disregard her test scores? Explain your decision. 2. What is your recommendation to help Vangie solve this problem?
  • 49. HUMAN RESOURCE MANAGEMENT 59 3. Were the selection process followed in the case study? Justify your answer. Remember: Make decision to hire only after careful consideration of the information gathered and soft skills observed. Sometimes, you can be carried by your own biases and wrong impressions. You must strive to resist these temptations and make your decision based on the hard, cold facts and objective observations gathered and synthesized. Take a deep breath because there’s more! The role of an HR does not stop in selecting the desirable applicant. The newly hired employee should be oriented to the new environment that he will be working.
  • 50. HUMAN RESOURCE MANAGEMENT 60 LET’S EXPLORE! ORIENTATION: THE ACCULTURATION PROCESS Definition: Orientation is the acculturation process to assist new employees in adjusting to their jobs and work environment and instill a positive work attitude and motivation. Orientation is the socializing process, the welcome and the initial introduction to the organization, and the work of the employee. Major Objectives of Orientation are to: Gain employee commitment Reduce one’s anxiety Help the employee understand organization’s expectations Convey what he can expect from the job and the organization ELEMENTS OF A GOOD ORIENTATION PROGRAM A Formal Orientation Process should include the following components: Welcome to the Company The welcome of the company should start off with a welcome by the human resource department head and a pep talk by the CEO. Other parts of the welcome portion are: Giving the overview of the company Explaining the Vision, Mission, Values and Culture of the company Tour of the Facilities It is important for new employees to be toured around the facilities of the company. It help them feel “at home” in their surroundings. The tour should include the plant or office facilities, the office of the Human Resource Department, and offices of other executives. The tour should also include the medical clinic, cafeteria, locker rooms and rest rooms. Introduction to Top Management and Co-Workers To be introduced and welcomed on board by top executives gives a sense of importance to new employees. It is also absolutely important to be introduced to co-workers and immediate superior with whom they will be interacting with regularly. The co-workers will always be the source of strength and support in the first few weeks of months after the formal orientation.
  • 51. HUMAN RESOURCE MANAGEMENT 61 Completion of Paperwork Vital paperwork should be completed at the time of the orientation. These documents should be accomplished to complete their individual personnel folder, enrollment with the SSS, BIR, medical plan, and compliance with payroll requirements. A checklist of what documents to accomplish would help in avoiding unpleasant events such as delayed salary payments that would cause early dissatisfaction to new employees. Review of Employee Handbook The Employee Handbook provides the new employees thorough information about the company’s history, policies, rules and regulations with corresponding penalties and disciplinary procedures, and benefits. Review of Job Responsibilities The job description is the best document to review the new employee’s duties and responsibilities. In the review of the job description, standards should be set against which his performance will be measured later on. It is best that his immediate superior should establish the standards with the assistance of the human resource department. The performance evaluation system must be explained to the new employee. TAKE NOTE: AVOID INFORMATION OVERLOAD! EFFECTS OF GOOD ORIENTATION 1. Reduces Start-Costs – proper orientation can help the employee “get up to speed” much more quickly, thereby reducing the costs associated with learning the job 2. Reduces Employee Turn-over – good orientation shows that the organization values the employee, and helps provide the tools necessary for succeeding in the job 3. Saves time for Supervisor and Co-workers – the better the initial induction, the less likely supervisors and co-workers will have to spend time teaching the employees 4. Develops Positive Job Expectations, Positive Attitudes and Job Satisfaction – new hires learn as soon as possible what is expected of them, and what to expect from others. Furthermore, they learn about the values and culture of the organization. Orientation eases the sometimes painful transition to a new firm. A successful orientation creates a “good feel” in the employee and acts as a good retention tool and motivator.
  • 52. HUMAN RESOURCE MANAGEMENT 62 UNLOCK THE ACTIVITY! Let us check the knowledge you gather so far on this topic. Answer the activities below. ACTIVITY NO. 1 Instruction: Determine whether it is a Selection or Orientation. Justify your answer. Answer Justification 1. Johnny reviews the applications and bio data passed by all the applicants who passed the interview. 2. Fe assisted in handling the employee handbook to the new employees. She also explains the important parts in the employee handbook. 3. Helen processed all the paperwork like the individual personnel folder and enrollments to different government agencies. All documents are ready for signature.
  • 53. HUMAN RESOURCE MANAGEMENT 4. Jenny is the one who accompany the new recruits to have a tour in the company facility. All departments were introduced including the production area of the company. 5. Bryan is an HR Manager, he finalizes everything that happens during the interview. He reviewed and evaluated 6. After reviewing all the applications who are qualified for the job, Jane prepares all the questionnaires that will be answered. 7. Harry is a newly hired employee. Debra introduces him to the management and his co- workers for him to have the sense of belongingness in the company. 63
  • 54. HUMAN RESOURCE MANAGEMENT 64 8. Brenda who has been working as an HR Assistant for 3 years is already an expert in selecting the place where to conduct the interview. She always made sure that there will be no interruptions that will occur during the process. 9. Mary is known to be strict in the company. She is very keen in choosing who among the applicant fits the job descriptions. Thus, she always do an immediate evaluation every after interview process. 10. JC is already introduced by Karen to his supervisor. His supervisor give him a review of what are his job responsibilities. He was also given a heads up that there will be a performance evaluation every 6 months in the company. ACTIVITY NO. 2 Instruction: Write TRUE if the statement is correct, FALSE if otherwise. 1. An orientation is boring if you overwhelm the new hires with facts, figures, names and faces packed into one whole day.
  • 55. HUMAN RESOURCE MANAGEMENT 65 2. Top Management must be the one to orient the new hired employees in the company. 3. Good orientation program is interactive. It provides opportunity for employees to ask questions and helps them feel comfortable with the firm and with their choice of employer. 4. The basic rule in eliciting information is to avoid asking categorical questions. Questions like: “Did you go to college?” – is answerable by yes or no. 5. Preparing for an interview does not include the place where to conduct the interview. It is the availability of the interviewer that will be considered on where she wants to conduct the interview. 6. It is important to make the decision to hire only after careful consideration of the information gathered and soft skills observed during the interview. 7. You have to tell the applicant after the interview if he has the chance to get hired in the company or not to avoid giving false hope. 8. You may not include in the welcoming portion of the employee the overview of the company, its vision and mission. You only have to introduce him to the top management and co-workers. 9. Orientation helps to reduce anxiety in entering into an unknown situation and it encourages new employee to create a sense of family belongingness among management only where it is introduced. 10. A formal orientation process should include the following components: making a friend, eliciting information, observing behavior, concluding the interview, and evaluating results. REFERENCES: Payos, Ranulfo P. LLB, FPM, 2010, Human Resource Management, Rex Book Store, Inc. Corpuz, Crispina R., 2013, Human Resource Management 3rd Edition, Rex Book Store, Inc.