You are on page 1of 9



Human Resource Management


UNIT I. Overview of Human Resource Management (Definition, Objectives

and Functions of HRM; History of HRM)
As often said people are the most valued asset, yet in reality form many
organizations, people remain undervalued, under trained, underutilized, poorly
motivated and consequently, perform well below their true capability.
The rate of change facing organizations has never been greater and
organizations must absorb and manage change at a much faster rate than in the
past. In order to implement a successful business strategy, to face this challenge,
organizations, large or small, must ensure that they have the right people capable
to delivering value.
The marketplace for talented, skilled people is competitive and expensive.
Taking on new staff can be disruptive to existing employees. Also, it takes time to
develop cultural awareness, product/process/organizational knowledge and
experience for new staff members.
The ultimate aim of HRM is to ensure that at all times the business is
correctly staffed by the right number of people with the right skills relevant to the
business needs, that is neither overstaffed nor understaffed in total or in respect of
any one discipline or work grade.
What is human resources?

is defined is the total knowledge, skills, creative abilities and aptitudes of an

organizations workforce, as well as the values, attitudes, approaches and
beliefs of the individuals involved in the affairs of the organization
it is the sum total or aggregate of inherent abilities, acquired knowledge and
skills represented by the talents and aptitudes employed in the organization.

What is human resources management?

is an inherent part of management which is concerned with the human

resources of the organization. Its objective is the maintenance of better
human relations in the organization by the development, application and
evaluation of policies, procedures and programs relating to human
resources to optimize their contribution towards the realization of
the organizational objectives
it is concerned with people at work and their relationships within the
enterprise. HRM helps in attaining maximum individual development,
desirable working relationship between employees and employers,
employees and employees, and effective modeling of human resources
as contrasted with physical resources


Human Resource Management

Is the art and science of acquiring, motivating, maintaining and developing

people in light of their personal, professional and technical knowledge, skills,
potentialities, needs and values in synchronization with the organization
philosophy, resources and culture for the maximum achievement of
individual, organization and societys goals (Martirez)

Planning, organizing, directing and controlling of the procurement,

development, compensation, integration, maintenance and separation of
human resources to the end that individual, organizational and societal
objectives are accomplished (Filppo)
a function performed in organizations that facilitates the most effective use of
people to achieve organizational and individual goals(Dessler)
a function of management which is concerned in promoting and enhancing
the development of work effectiveness and advancement of human
resources in an organization(Perfecto Sison)
is the management of organizations human resources responsible for
attraction, selection, training, assessment and rewarding of employees,
while overseeing leadership culture, and ensuring compliance with
employment and labor laws

The Nature of Human Resource Management

Human resource management is the process of bringing people and organization s
together so that the goals of each are met. The various features of HRM include:
1. It is pervasive in nature as it is present in all enterprise.
2. Its focus is on results rather than rules.
3. it tries to help employees develop their potential fully.
4. It encourages employees to give their best to the organization
5. Its all about people at work, both as individuals and groups.
6. It tries to put people on assigned jobs in order to produce good results.
7. It helps an organization meet its goals in the future by providing for competent
and well motivated employees.
8. it tries to build and maintain cordial relations between people working at various
levels in the organization.

Effective utilization of manpower in the organization

Interrelationships of all members in the organization;
Maximum development of all members
To help the organization reach its goals
To ensure effective utilization and maximum development of human
To ensure reconciliation of individuals goals with those of the other
To achieve and maintain high morale among employees


Human Resource Management

To provide the organization with well-trained and well-motivated employees

To increase to the fullest the employees job satisfaction and selfactualization.
To develop and maintain quality of work life.
To develop overall personality of each employee in its multidimensional
To enhance employees capabilities to perform the present job.

SCOPE of Human Resource management

1. Personnel aspect
This is concerned with manpower planning, recruitment,
selection, placement, transfer, promotion, training and development, layoff and
retrenchment, placement, transfer, promotion, training and development, lay off and
retrenchment, remuneration, incentives, productivity etc.
2. Welfare aspect It deals with working conditions and amenities such as
canteen, housing, transport, medical assistance, education, health and safety,
recreation facilities etc.
3. Industrial relations
consultation, collective
settlement disputes etc.

aspectthis covers union-management relations, joint

bargaining, grievance and disciplinary procedures,


Human resource management philosophy is based on the following beliefs:

Human resources is the most important asset in the organization and can be
developed and increased to an unlimited extent
A healthy values with openness, enthusiasm, trust, mutuality an collaboration
is essential for developing human resources
Employees feel committed to their work and the organization, if the
organization perpetuates a feeling of belongingness
Employees feel highly motivated if the organization provides for satisfaction
of their basic and higher level needs
Employee commitment is increased with the opportunity to discover and use
ones capabilities and potential in ones work
It is every managers responsibility to ensure the development and utilization
of the capabilities of subordinates




Human Resource Management

The functions of human resource management is categorized into two(2):

a. MANAGEMENT Functions
Planning refers to the job of determining a proposed mode of action based
on a full understanding of the factors involved, and directed at specific
Formulation of policies, programs and activities directed to achieve
the goals of the enterprise particularly along human resource
Involves the ability to analyze projected HR programs and policies in
the light conditions related to objectives.
Organizing refers to the arrangement and relationships of jobs and
positions, which are necessary to carry out the personnel program as
determined by top management
Its purpose is to ensure the smooth operation of the various activities
required to achieve the objectives
Directing is concerned with the guidance of all efforts toward a stated
objective. It provide a means of putting plans into action through effective
supervision, work rules and procedures
Coordinating is the method of getting people in an organization to work
together harmoniously to achieve a common goal with minimum expenditure
of effort and material.
Proper implementation of personnel policies and programs must be
well coordinated to various concerned groups or units.
Controlling is concerned with keeping all efforts within the channels
prescribed by management as shown in the personnel plan for the entire
organization; its purpose is to ensure that organization is accomplishing its
objectives; the control system will show whether or not the personnel program
is being carried out satisfactorily and as planned

b. OPERATIVE Functions covers the details of the responsibilities and tasks to

carryout policies and programs related to personnel
1. Procurement/Acquisition Function
This includes manpower
planning, recruitment, selection and placement of personnel. This
aims to employ the right people with the right skills and with the right
number of employees.
a. Recruitment is the initial attraction and screening of the supply
of prospective human resources available to fill a given
b. Selection is the systematic process of selecting the most
appropriate and suitable person to a particular job.
2. Human Resource Development This aims to upgrade knowledge,
skills and improve attitudes of both managers and employees. Also
include career planning, counseling for individual development in light
of the organizations needs and values


Human Resource Management

3. Compensation Administration The main objective is to develop
and maintain a good salaried and wages system which is reasonable
both internally and externally.
4. Appraisal of Employee performance. This is the regular systematic
assessment of an employees performance in order to review whether
his or her performance matches the expected performance levels.





Performance evaluation is the analysis of an employees

recent successes and failures, personal strengths and
weaknesses and suitability for promotion or further training
Health and Safety Administration. This is concerned with
maintaining required and reasonable levels of professional Health and
Safety in the job and its environment
Employee and Labor Relations This aims to foster relationship
between labor force and management
a. Discipline Administration
It is important to control the
performance and behavior of the employees according to the
rules and regulations of the organization. For this reason, it is
important to develop, implement and maintain an appropriate
disciplinary system
Grievance Handling
A grievance can be identified as a
situation where the employees is in mental distress, dissatisfied or
Welfare Administration. This refers to all the facilities and comforts
given to the employee by the employer apart from wages, salaries
and incentives.

WHY THE NEED for Human Resource Management

a) stiffer competition in business
b) rapid changes in technological, competitive and economic
c) explosion of technical and managerial knowledge
d) spiraling wage and benefits and costs
e) increasing complex government intervention in running thru laws and
f) growing strength of labor unions and the felt need in manufacturing
businesses to find better ways to manage rapidly changing tasks
involving the coordination of many diverse specializations
The early part of history saw a concern for improved efficiency through
careful design of work. During the middle part of the century, emphasis shifted to
the employees productivity. Recent decades have focused on increased concern


Human Resource Management

for the quality of working life, total quality management and workers participation in
management. These phases are termed welfare, development and empowerment.
In the Philippines, personnel management is relatively new.

Pre-Spanish Occupation
Trade and commerce were conducted on barter system
No formal and permanent groups
Personnel management are unheard because there were no formal or
permanent groups
Master-servant/mayordomo system was practiced with no written codes
as guidelines; norms, culture, beliefs are the bases of action
Spanish Occupation
Still the absence of management-labor relations
There are no laws governing labor; people are deprived of their
rights(underpaid; forced labor)
Master-servant relationship was regulated by the Civil Code of
Forced labor-Do or die
American Occupation
Labor conditions were better
No labor laws that were passed against oppressed women and child
People suffered from proper avenues for ventilating their grievances
because of the fear of losing their jobs
Unionism was introduced due to increased trade and industry,
however, management effort to maintain and develop workers was
Japanese Occupation
Suspension of the normal educational system
Japanese had the last say on policies and practices
Post war Era
changes occurred in favor of personnel management
It makes the beginning of the growth and development of personnel
The birth of big corporations (volume of works increases; variety of
programs expanded, increase in the size, the need for specialized
skills which call for specialization in management
Other programs were instituted:
Rehabilitation Program aims to restore the lies of the Filipino
Specialization and professionalization in various areas(PM)
Organization of department in public and private addressed to
the personnel needs


Human Resource Management

Creation of government agencies to assist employees (DOLE,

GSIS, SSS, NMYC and others in terms of employment,
training, security, benefits and service
Personnel Management Association of the Philippines (PMAP)
Offering of courses related to labor
Martial Law Period (Parliamentary form of government)
Labor was characterized by less proliferation of local unions;
strikes and other anomic activities were prohibited
the government ban companies on strikes to lure national and
international investors
freedom of expressions was curtailed, as a result, employees
were demoralized which resulted to low production. Business
organizations suffered from severe economic difficulty leading
to retrenchment, lay-off, freeze hiring and closure
Post Martial Law Period
The private and government workers were given the right to
self organize, the right to form union
People Power (EDSA Revolution)
People Management Era

UNIT II Challenges and Trends in Human Resource Management

Most changes in this world dont take place in a vacuum. Companies change
their structures and practices in response to the need to follow their customers. To
better understand the HRs role in organization today, it is useful to understand how
companies themselves are changing and the trends that are causing their changes
to occur. Organizations today are under intense pressure to better, faster and more
competitive position.
In the 21st century, HRM is influenced by the following factors which will affect
HRM strategy.

Size of the workforce

Rising employees expectation
Drastic changes in technology as well as lifestyle changes
Composition of workforce
New skills required
Environmental challenges
Impact of new economic policy. Political ideology of the Government.
Downsizing and right sizing of the organizations
Culture prevailing the organization

Human Resource Management is a complex environment comprising

several elements both inside and outside the firm. In order to have an effective HR
program, HR manager must give careful attention to all aspects within which the


Human Resource Management

organization operates and these changes present challenges that require early
The environment of the organization is consists of the conditions,
circumstances, and influences that affect the firms a ability to achieve its
objectives. They are categorized as external and internal environments.
A. THE EXTERNAL ENVIRONMENT is consists of five (5) components, having
significant impact on HRM policies and practices. It helps determine the values,
attitudes, behavior that employees bring to their jobs
1. PHYSICAL. This includes geography, climate and other physical
characteristics of the area in which the organization is located.
Physical surroundings can help or hinder a firms ability to attract
and retain employees
Housing, commuting and living costs can vary from one location to
another and can have a significant impact on compensation
2. TECHNOLOGICAL We live in competitive age. Only through technological
innovation can firms develop new products and services and improve
existing ones in order to stay competitive. Technology can prove basis for an
organization to attain the productivity and quality it needs to gain competitive
the introduction of technology affected the number of employees as
well as the skills the employees need on the job
3. SOCIAL. Employers are expected to demonstrate a greater sense of
responsibility toward employees and toward a society as a whole, employees
are expecting the same freedom, right and benefits on the job that enjoy as
members of society. Health care, retirement and safety issues are important
areas where organizations must balance economic and social concerns.
Employees view life satisfaction as more likely to result from
balancing the challenges and rewards of work with their personal
lives; they enjoy work and want to excel; they also seek ways of living
that are less complicated but meaningful. This new lifestyle of
employees have impact on the way they are motivated and managed.
4. POLITICAL. This include government laws and regulations affecting human
resource management like compensation, recruitment, termination and
5. ECONOMIC. The economic condition of the country has a great impact in
business, in general and on managing human resources, in particular.
a. It dictates whether a firm will need to hire or lay off employees
b. It affects employers ability to increase employees pay and or benefits
also known as the organizational climate




Human Resource Management

they are affected by the policies, procedures and employment

Physical element include factors such as air quality, temperature, noise,
dust, radiation and other conditions affecting employee health and safety.
Technological element relates closely to the physical element
it consists of layout of the workplace; the process by which the work is
performed, the tools, equipment and machinery used to performed the
Social element
reflects the attitudes and behaviors of managers and
employees, individually and in groups
Political element is often referred to as organizational politics
a. Organizational politics has the potential for being helpful or
harmful to organization and individuals;
b. Tactics used in Organizational/office politics include: attacking
or blaming others, using (withholding or distorting) information,
building images, building support for ideas, praising others,
creating power coalitions, associating with influential and
performing services or favors to create obligations
Economic element reflects the organizations financial condition
The more financially stable the organization is, the better perks and
compensation packages for the workforce
If financial health of the firm is strong, there is a tendency to expand
HRM activities such as training and development, employee
assistance programs and recreational activities
When resources are low, organizations tend to reduce its HR budget
and cut back on HR services it offers to its employee