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I. Development of Human Resource Management

Traditional Viewpoint

• Labor was regarded as a mere commodity that could be acquired or disposed of like any
other property
• Workers employed to operate the machines were considered parts of these machines
• Labor was considered a machine, an operating organism capable of certain amount of

Industrial Revolution

• The age that followed the invention of machines

• Machines supplanted human labor in factories which led to the organization of the
modern factory system with emphasis on machines, methods, money and large-scale
• Establishment of factories led to the migration and concentration of workers giving rise to
problems in psychological and social relationships
• Growing problems was overlooked because of the benefits of large-scale production
• The resulting changes and developments in the social, economic and political structures
caused greater demand for products.
• As industries expanded, workers with varied social, educational, economic and political
backgrounds converged in these industrial areas
• This created social problems at work—long hours of work, low wages and poor working
• Certain abuses perpetrated by factory owners on the workers gave rise to industrial

People at Work- The Study of People

• In order to arrive at a clearer understanding of the relationship between human resource

policies and the style of management of an organization, it is necessary to look at the
findings of those who have studied the behavior of people at work
• The study of people at work falls within the province of social sciences which are
concerned with studying the relationships between individuals, group of individuals and
their environment
• To understand and predict changes, to focus on process

Theories that contributed to management thinking

• Frederick Taylor
- Founder of scientific management
- The scientific selection and progressive development of the workman
- Constant and intimate cooperation of management and men
• Elton Mayo
- Founder of human relations movement
- Famous for Hawthorne investigations which led to a fuller understanding of the “human
factor” at work


• Douglas McGregor
- famous for theories X and Y
- theory X: people are assumed to dislike work and need direction and control
- theory Y: people are assumed to enjoy work and external control is not necessary
• Frederick Herzberg
-Famous for demonstrating the factors that lead to dissatisfaction (hygiene factors) and
those that lead to satisfaction (motivators)
• Abraham Maslow
- saw human needs in a form of hierarchy. As one need is satisfied, another emerges
- Their order is:
physiological, safety and security, acceptance, esteem and self-actualization

Growth and Development of HRM in the Philippines

• Personnel management is a relatively new field in the Philippines

• It was only in the early 1950’s that it gradually gained acceptance and recognition in
private business and industry
• Contributing Growth Factors
- Increasing complexity of business operations
- Government regulations and labor laws promulgated in recent years
- Growth of labor unions
- Influx of new concepts in management
 The need for a more efficient, economical, and equitable management of human
resources in business and industry has never been as pronounced as it is today.
This need has been brought about by factors that inevitably affect not only the
established structures and ways of doing things within the personnel area, but also by
the more meaningful task of managing the organization’s most important asset- its
human resources!


II. Human Resource Management Function and Roles in the Organization

Human Resource Management Defined:

• the process involve in managing people in organizations

• It covers all activities dealing with the management of people in an organization
• the function of management concerned with promoting and enhancing the development
of work effectiveness and advancement of the human resources in the organization
• consists of the managerial functions of planning, organizing, directing and controlling of
the human resource of an organization using the personnel operative functions to
accomplish individual and organizational goals and objectives
• the strategic and coherent approach to the management of an organization’s most
valued asset--the people—who individually and collectively contribute to the
achievement of the objectives of the business

Organization Defined:

• organization is subsidiary to management

• embraces the duties of designing the departments and the personnel that are to carry on
the work, defining their functions and specifying the relations that are to exist between
departments and individuals
• the process of identifying and grouping the work to be performed, defining and
delegating responsibility and authority, and establishing relationships for the purpose of
enabling people to work most effectively together in accomplishing objectives
• the determining, grouping, and arranging of the various activities deemed necessary for
the attainment of the objectives
• It holds the different divisions and units of the firm as one and the people as a team,
working effectively to attain their goals

Organizational structure

 the framework by which the activities of an enterprise, as determined by the managers

are performed
 the arrangement of the functions performed by the various personnel in the different
units classified into divisions, departments, sections, and the rank and file workers
 guides management in undertaking the proper division of labor so that people who work
for the organization are assigned to positions according to their skills, experiences and
 it defines the responsibilities and the limits of authority of each member of the firm
 indicated by divisions, departments and sections

Departmentation or division of work

 refers to the particular groupings of functions or activities in an organization, showing

their relationships and the people doing them
 the groupings establish the logical arrangement of the functions and activities into levels
in the organizational structure, facilitating the assignment of personnel according to their
abilities and fields of specialization


Principles of delegation of responsibility and authority

A. Delegation
 the conferring of a certain amount of authority and responsibility from the superior to his
 process of decentralizing or distributing responsibility and authority preventing
bottlenecks or overworks for top management

B. Authority
 the right to act or direct others to act
 the person possessing authority has the right to decide what should be done and the
right to do it or require someone else to do it
 person delegated an authority is acing for or representing the person who delegated the
authority, however, retains control over the delegated authority as he is still fully
accountable to his superior for the actions taken by the delegated person

Types of Organization

A. Line-Type
 word line is similar to “chain-of-command” or “man-boss relationship”
 a supervisor has direct authority and control over the people he supervises and has
responsibility for them
 the flow of authority and responsibility is direct from superior to subordinate
 oldest and simplest type
 each employee directly knows his supervisor
 efficient in transmitting instructions from the supervisor to the workers

B. Line-and-Staff Type
 combination of the line type and staff type
 when a line manager’s job expands, beyond the limits of his capacity or when activities
become so varied that he must perform functions that are not related, he needs the help
of a specialist to assist him in his work
 staff functions include a number of specialized fields of industrial activity (personnel
relations, executive assistant, administrative assistant, legal dept., research)
 staff officers are persons or an entire unit in the organization trained to provide
specialized services to the line or operating officials, giving them advice and guidance
 staff dept. cannot use command in its relations with the rest of the organization

Management Function

• Planning
- The objective is to create a favorable climate for human resources in the organization
- ascertaining in advance how the task, work, mission, objective will be achieved
• Organizing
- refers to the arrangement and relationships of jobs and positions, which are necessary
to carry out the personnel program
- establishes lines of responsibility, authority and communication
• Coordinating
- Method of getting people in an organization to work together harmoniously


- Orderly arrangement and execution of personnel policies and programs in the various
departments and levels of the organization
• Controlling
- Purpose is to ensure that the organization is accomplishing its objectives
- The control system will show whether or not the personnel program is being carried out
as planned

Operative Function

• HR Planning
- Study of the labor supply of jobs which are compared with the demand for employees
in those jobs within an organization to determine future requirements
• Recruitment
- The process of encouraging job applicants from outside an organization to seek
employment in the organization
• Selection
- The process of determining the most qualified job applicant or employee for a given
position in an organization
• Placement
- The process of making an employee adjusted and knowledgeable in a new job and
work environment
• Compensation
- The pay received by an employee in the form of wages or salaries, bonuses,
• Maintenance
- covers all activities intended to provide an acceptable working environment for
• Labor Relations
- refer to the relationship existing between the management of an organization and its
employees, refers to efforts of satisfactory accommodations both employees and
• Training and Development
- refer to any method used to improve the attitude, knowledge, skill or behavior pattern of
an employee for adequate performance of a given job
• Employee performance Rating
- The evaluation of the traits, behavior and effectiveness of an employee on the job as
determined by established work standards


III. Job Organization and Information

Job Analysis
 The process of studying positions, of describing the duties and responsibilities that go
with jobs and of grouping similar positions into job categories.
 Human Resource Management starts with job analysis, wherein positions are classified
according to skill requirements and other qualifications
 This analysis leads to the specification of the skills that the job occupants must possess
 The process of getting detailed information about jobs

Job Data Gathering:

Techniques and Processes Used:

• Questionnaires
- An effective way of obtaining job information is to have employees accomplish well-
designed Job Analysis Questionnaires later reviewed by their immediate superiors
• Interview
- To obtain a whole perspective of the job, employees are interviewed by their immediate
superior in their place of work, thus clarifying all the aspects of the job
• Observation
- Jobs are better understood by observation, go to the workplace and observe the
people at work
• Draft and Review
- When job information have been adequately obtained, the job description and job
specification can now be written, then it is given to the employee and immediate superior
for any corrections and inputs

Job Description

• are broad statements of the scope, purpose, duties and responsibilities involved in a job
• main purposes are to:
- give employees an understanding of their jobs and standards of performance
- clarify duties, responsibilities and authority in order to design the organization structure
- assist in assessing employees’ performance
- assist in the induction of new employees
- evaluate jobs for grading and salary administration
- provide information for training and management development

Job Specification

• enumeration of the qualifications of the employee who is supposed to be appointed for

the job that is described
• indicates the qualifications in terms of skills, work experience, training, educational
qualification, psychological traits particularly the mental and personality characteristics,
health status and special qualifications like age, sex, status and special skills needed


Uses of Job Analysis

• To know the duties of each job by studying the requirements in terms of skills, effort,
responsibilities, and Working condition
• To serve as a guide in the recruitment, selection and placement and counseling of
• To serve as a basis for job evaluation and wage and salary administration
• To help determine working condition that are hazardous, unpleasant or unhealthy to help
management take preventive and corrective measures.
• To help in active supervision
• To determine the training needs of employees
• To standardize job titles

Job Evaluation

• the process of determining the work of one job in relation to that of the other jobs in a
company so that a fair and equitable wage and salary system can be established
• the principle behind job evaluation is that jobs should be paid in accordance with
difficulty, importance, competencies required of the job, and the impact of results
achieved by the job—with the more difficult and important jobs being rated higher than
the less difficult ones
• equal pay for equal work
• differences in pay must be based on differences in work

Job Evaluation Methods

• Non-Quantitative method
- The job as a whole is compared to other jobs in terms of its elements or component
1. The ranking method
2. The Position Classification/ Grade Description
• Quantitative method
- The job is broken down into its characteristics and evaluated by the use of factors in a
standard rating scale
1. The Point System
2. The Hay Method

Non-Quantitative Method
• The ranking method
- process of comparing and simply ranking a job against other based on a overall
judgment of the skill, effort, responsibility, and working condition of the job
- the simplest method and easy to understand
• Position Classification/Grade Description Method
- process of grouping jobs by comparing each job against a rating scale comprising
several job grades
- to ascertain the grade to which each job appropriately belongs


Quantitative Method
• Point System
- evaluates the job by appraising it separately against each of the factors or
characteristics such as skills, effort, responsibility, and working conditions and adding up
the corresponding point values to arrive at a single point score for each job.
- uses of series of rating scales, one for each of the major factors
• Hay Method
- Hay and the associates developed a method using three factors. Know-how, Problem-
solving and accountability
- This method requires that the organization develop its own key jobs, called
benchmarks, selected from among the positions within the company
- The factors and the quantitative weights are established, similar to the point system

Factors Affecting Human Resource Management

Internal factors

A. Organizational Objectives
- these are statements of the overall purpose for the establishment of the organization,
the end result which motivates people in an organization to strive to achieve
- it is regarded as a factor within an organization that affect the personnel functions

B. Organizational Climate
- the psychological environment existing within an organization that affects all human
- it is the attitude and feelings that people have about the organization, their supervisors,
their peers and their jobs
- the organizational climate may either be favorable or unfavorable
- factors that determine organizational climate are working conditions, motivational
theories, leadership styles

Importance of Human Resource Management

Human Resource Management is important for the following reasons:

1. Complicated jobs performed by managers

- The manager’s job has changed and has become complicated and demanding with the
advances in technology and globalization, managers need assistance on matters pertaining to
employee management

2. Labor laws compliance required

- violations of labor laws can be costly for an organization because it could lead o
dismissal or damages, therefore, labor laws have to be implemented as well as employee health
and safety standards

3. Changing attitudes and values of both employers and employees

- employee needs and wants have to be satisfied before optimum performance efficiency
can be expected


- with the advances in technology coupled with better skills and education, the employee
would have greater expectations

4. Consistency maintenance within organizations

- consistency in personnel actions is imperative with regards to any of the operative
- there must be the same personnel philosophy, personnel program, and personnel

5. Cost involved in personnel problems

- labor cost is the largest single cost for most organizations, it is made considerably
higher than need be primarily due to personnel problems of tardiness, absenteeism, labor
turnover, etc.


IV. Human Resource Planning, Recruitment, Selection and Placement

Human Resource Planning

• A dynamic management process of ensuring that at all times a company or its units has
in its employ the right number of people with the right skills, assigned to the right jobs
where they can contribute most effectively to the productivity and profitability of the
• Is concerned with the efficient acquisition and maximum utilization of the company’s
human resources so that the company can attain its goals and objectives
• It compares the present state of the organization with its goals for the future, then
identifies what changes it must make in its human resources to meet those goals
The changes may include:
- Downsizing
- training existing employees in new skills
- hiring new employees

To be able to effectively carry out HR Planning:

• Organizations need a clear idea of the strengths and weaknesses of their existing
internal labor force
• They must know what they want to be doing in the future
- What size they want the organization to be
- What products and services it should be producing
- Define the number and kinds of employees they will need

The Process of Human Resource Planning

1. Determining the workload

- the kind and magnitude of the workload determine the organizational structure, as well
as the number and quality of employees needed to man the organization under a
desirable level of performance
- As an aid in determining workload inputs, the company should consider several factors
such as:
 Business development and assumptions
 Corporate planning
 Economic forecasts
 Changes in plans and products
 New product lines
 Mergers and acquisitions
 Other trends
2. Study of jobs in the company

3. Forecasting human resource needs

- after determining the work input and studying the requirements of each job, forecasting
manpower needs comes next
- forecasting tries to determine the supply of and demand for various types of human
resources. The primary goal is to predict which areas of the organization will experience
labor shortages or surpluses


- An organization forecasts demand for specific job categories or skill areas. After
identifying the relevant job categories or skills, the planner investigates the likely
demand for each. The planner must forecast whether the need for people with the
necessary skills or experience will increase or decrease
- Appropriate questions to ask are:
 How many specialists, professionals or executives are needed?
 What is the level of each?
 What kind of specialization should each have?
 What level of expertise is required?
 What other production personnel are necessary and how many for each

4. Inventory of manpower
- Inventory or audit of available current manpower
- Assessment of the skills, career aspirations, strengths and weaknesses of each
incumbent, their potentials and promotability. Each is matched against the positions
- Positions are filled either by promotion, transfer or assignment of qualified personnel
- The net result of this operation is that you either find:
 That you have just enough manpower
 That there is excess in the number of available manpower, but they lack
skills required
 That the number of available manpower is insufficient and their skills are
also inadequate to meet the needs of the work inputs

5. Improvement plan

- The difference or gap in the number of people or in quality of skills, represents a

shortfall in personnel which must be remedied by an implementation and improvement
plan to meet the objectives of the department or organization

- This includes action plans to improve the capabilities of current personnel through
training and development

- When the shortfall is in the number of personnel, the remedy is to recruit from either
inside or outside the organization

- When the shortfall is in the skills of present employees, the remedy is to increase their
skills through planned training and development program which covers career planning
and management development programs

Recruiting Human Resource

• Recruiting consists of any practice or activity carried on by the organization with the
primary purpose of identifying and attracting potential employees
• The role of human resource recruitment is to build a supply of potential new hires that
the organization can draw on if the need arises
• It creates a buffer between planning and the actual selection of new employees
 3 areas of recruiting:
• Personnel policies


• Recruitment sources
• Characteristics and behavior of the recruiter

Personnel Policies
- are an organization’s decisions about how it will carry out human resource
management, including how it will fill job vacancies
- personnel policies relevant to recruitment:
 Recruiting existing employees to fill vacancies or hiring from outside the
 Meeting or exceeding the market rate of pay
 Emphasizing job security or the right to terminate employees

Recruitment Sources
- Decision about where to look for applicants

Internal Sources
 Employees who currently hold other positions in the organization
 Recruitment is done through Job Posting and Management Referrals

External Sources

• Direct Applicants- people who apply for a vacancy without prompting from the
• Referrals- people who apply for a vacancy because someone in the organization
prompted them to do so
• Help-Wanted Advertisements- advertisement of job openings in newspaper or
• Electronic Recruiting- the Internet has opened up new vistas for organizations trying to
recruit new talent. Through company web sites and job sites
• Public Employment Agencies- employers can register their job vacancies with the
local state employment office and the agency will try to find someone suitable using its
inventory of local unemployed individuals
• Private Employment Agencies- workers interested in finding a job can sign up with a
private employment agency whether or not they are currently unemployed
• Colleges and Universities- most colleges and universities have placement services
that seek to help their graduates obtain employment. On-campus interviewing is the
most important source of recruits for entry-level vacancies


V. Selection Process and its Importance

Personnel and Selection Process

• The process through which organizations make decisions about who will or will not be
allowed to join the organization
• Selection begins with the candidates identified through recruitment attempts to reduce
their number to the individuals best qualified to perform the available jobs
• At the end of the process, the selected individuals are placed in jobs with the
• The process of selecting employees varies considerably from organization to
organization and from job to job

Reasons for Proper Selection of Employees

• Company Objectives are better achieved by workers who have been properly selected
• An incompetent worker is a liability to the company
• Personnel requirements vary from job to job
• People have varying degrees of intelligence, aptitudes, and abilities
• Labor laws protect employees, making it difficult to fire incompetent and problem
• Individuals have different interests, goals and objectives in life
• Careless hiring is costly and can cause problems to the company, especially to the
supervisors and managers who have to deal with the workers

Employment Test Often Used in Choosing Applicants

• Mental Alertness Tests- also known as intelligence tests, verbal reasoning tests and
personnel tests. They measure a person’s ability to quickly learn jobs, which involve
memory, reasoning, abstracting, analyzing, solving problems, as well as reading
• Clerical Aptitude Tests- these measure the individual’s speed and accuracy in dealing
with similarities and clerical relationships
• Shop Arithmetic Tests- these measure how well an individual can work out
mathematical problems that come up frequently in the shop
• Mechanical Aptitude Tests- these measure mechanical abilities or skills, either natural
or acquired, they also indicate the applicant’s potential for certain trades especially in
factory or maintenance work
• Space Relations Tests- these measure the ability to visualize a constructed object from
a picture or pattern, if rotated in various ways, designed to evaluate the ability to
manipulate things mentally to create a structure in one’s mind from a plan
• Proficiency, Trade or Achievement Tests- these measure the individual’s proficiency
on the job or trade in which he has had prior experience
• Vocational Interest Tests- designed to discover the patterns of employee interest and
thus suggest what types of work may be satisfying to the individual
• Dexterity and Manipulation Tests- these tests are given to applicants for jobs requiring
manual skills, especially the use of fingers
• Personality Tests- these measure personality characteristics which are considered to
be the basis of success in the job, particularly for supervisory and managerial positions,
determine the emotional maturity of the individual



- to find out how well-qualified the applicant is for the vacancy
- to give the applicant the information he needs to decide whether or not he will take the
job if offered to him
- to create goodwill for the company

Factors to consider during the interview:

- emotional ability
- dependability
- self-confidence
- attitude towards job
- creativeness
- attitude toward other persons
- value system
- critical attitude

Types of Interview

a. Directive Interview- it asks specific information. The interviewer uses a printed form to
record the answers to specific questions about the background of the applicant
b. Non-directive Interview- consists of questions that are broad, open-ended and require a
narrative answer
c. Group Interview- conducted by a panel or committee of three or five interviewers. This may
be done for considering applicants for supervisory or higher positions
d. Team Method-a team of three interviewers may interview applicants separately and then
compare notes afterwards. The team may use different types of questions


 It is the determination of the specific branch, department, division, section or unit where
the individual is to be assigned for work
• Looking for the best fit between candidate and position—applicants who have the best
combination of ability and motivation to fit in the position and in the organization as a
• Factors in determining work assignment:
a. Requisitioning Office
b. Branch
c. Department, Division, Unit, Section


VI. Performance Appraisal

• The measurement of specific areas of an employee’s performance

• Refers to a system of measuring and evaluating the traits, behavior and effectiveness of
an employee on the job for either judgmental or developmental use of management
• It is judgmental in purpose when it requires information on what happened or what was
accomplished to be able to make decisions for promotions, transfers, pay increases and

Methods of Performance Appraisal

1. Making Comparisons- compare one individual performance with that of others

a. Simple ranking: requires managers to rank employees in their group from the highest
performer to the poorest performer

b. Paired-comparison method: involves comparing each employee with each other employee
to establish rankings

2. Rating Individuals- looking at each employee’s performance relative to a uniform set of

standards, the measurement may evaluate employees in terms of attributes believed desirable

a. Graphic Rating Scale: lists traits and provides a rating scale for each trait, the employer
uses the scale to indicate the extent to which an employee displays each trait

b. Behaviorally Anchored Rating Scale: intended to define performance dimensions using

statements of behavior that describe different levels of performance rates behavior in terms of a
scale showing specific statements of behavior that describe different levels of performance

3. Measuring Results- performance measurement that focus on managing the objective,

measurable results of a job or work group

a. Management by Objectives: a system in which people at each level of the organization set
goals in a process that flows from top to bottom; these goals become the standards for
evaluating each employee’s performance
- it provides for what is expected, obtaining teamwork, programming work, recognizing

Uses of Employee Rating

• It is used as a tool for developing employees by identifying employees who could be

developed to assume greater responsibilities
• It is an instrument to strengthen employee weak points to make employees more
productive and it motivates employees to be more productive on the job
• It is used to measure the contribution of an employee to the organization and to evaluate
the performance at work of each employee
• It is a tool in personnel planning: to inventory employee talents, to determine present
supply of personnel, to plan for possible replacements, to plan for the future manpower
• It helps determine fair pay for performance as well as incentives to be given depending
upon the performance of an employee on the job


• It is an instrument to determine changes in personnel: promotion, transfer, demotion,

layoff, termination

Types of Employees

• Regular Employee – an employee who has been employed to perform necessary or

desirable activities in the business or trade of the employer who is employed beyond the
probationary period
• Probationary Employee – where the work is learnable or apprenticeable, the
probationary period is limited to the authorized learnership or apprenticeship period. If
not hired as a learner or apprentice, the probationary employment is for a maximum of
six months from the date of employment. Beyond the 6-months period, the probationary
employee becomes a regular employee
• Contractual Employee – an employee hired with a fixed employment period such as a
specific project or undertaking the completion of which has been made clear to the
employee as the end of his employment
• Casual or Seasonal Employee – an employee hired to perform work or service that is
seasonal in nature and the employment is for the duration of the season

Changes in Personnel Status

• PROMOTIONS : refers to the upward or vertical movement of employees in an

organization from lower level jobs to higher level jobs involving increases in duties and
responsibilities, higher pay and privileges
2 bases: - competency or merit
- Seniority
• TRANSFERS : the movement of employees from one job to another on the same level
in the organization with more or less the same pay, privileges, duties and responsibilities
Reasons: - for personal reasons
- signified his desire to work at a different shift
- the employee may have relations problems
- To meet organizational requirements brought by expansion or contraction of
organizational activities
• DEMOTIONS : refer to the movement of an employee to a less important job from a
higher level job in the organization which may or may not involve a reduction in pay,
status or privileges

• SEPARATIONS :take the forms of:

a. layoffs: means the separation of an employee initiated by the employer due to
business reverses, the introduction of labor-saving devices, or the reduction in
the demand of manpower skills
b. resignations: occur when employees voluntarily decide to end his
employment with an organization
c. retirement: occurs when employees having satisfied certain conditions under
existing laws are separated from employment with entitlement to retirement
benefits given either in lump sum amount or in the form of a monthly pension for
life or both
d. termination: means putting an end to the employer-employee relationship
initiated by the employer.


VII. Training and Development

Rationale for Training

• Training helps to improve the skills and work habits of employees thus reducing the
incidence of accidents coupled with the unpleasant experiences and incidental costs that
goes with it.
• Training is essential to improve production efficiency and to insure satisfactory
performance of work thus improving organizational efficiency
• Training helps to prepare employees for advancement thus improving employee morale
• Training helps to reduce if not eliminate waste in the use of manpower and resources of
an organization thus improving organizational capability to attain organizational,
individual and societal goals
• Training helps to improve relations between management and subordinates thus making
work a pleasant daily experience where supervisors and employees alike develop a
deep sense of belonging and camaraderie
• Training may be used to change employee attitudes, implant the company’s philosophy
to its new employees
• Training may be used to develop interpersonal skills of employees: listening, handling
grievances, communication and team building
• Training helps to improve the skills of employees to solve problems and to make

Major Categories in Training Program

a. Employee familiarization and placement training

- Intended to provide guidance and knowledge about the policies and practices of an
organization that a new employee needs to know
- Also to inform employees about new developments, activities and organizational
Orientation: training designed to prepare employees to perform their jobs effectively,
learn about their organization, and establish work relationships
b. Skill development training
- Given to employees when they must acquire new skills to perform their jobs satisfactorily
- Used when new machines and equipment are being introduced or when employees
experience job changes
c. Safety training
- Required by law to prevent accidents
- Impart safe working habits, emphasize safety measures and practices
d. Managerial and supervisory training
- Emphasis is on how to work with people and how to perform the managerial functions
e. Technical and professional training
- The intention of this type of training is to reduce to zero technical and professional
- This is necessary because of the fast pace of changes in practically all business
Training Methods

• Classroom Instruction


- typically involves a trainer lecturing a group, trainers often supplement lectures with
slides, discussions, case studies, question-and-answer questions, and role playing
• Audiovisual Training
- Presentation methods need not require the trainees attend a class, trainees can work
independently using course materials prepared on audiotapes or videotapes or on
• Computer-based Training
- participants receive course materials and instruction distributed over the Internet or on
CD-ROM, often these materials are interactive, so participants can answer questions
and try out techniques, participate also in on-line discussions
• On-the-job Training
- refers to training methods in which a person with job experience and skill guides
trainees in practicing job skills at the workplace
a. apprenticeship: a work-study training method that teaches job skills through a
combination of structured on-the-job training and classroom training
b. internship: on-the-job learning sponsored by an educational institution as a
component of an academic program, sponsoring schools work with local employers to
place students in positions where they can gain experience related to their area of study
• Simulations
- a training method that represents real-life situation, with trainees making decisions
resulting in outcomes that mirror what would happen on the job
- enable trainees to see the impact of their decisions in an artificial, risk-free environment
• Team Training
- coordinates the performance of individuals who work together to achieve a common
a. cross-training: team members understand and practice each other’s skills so that
they are prepared to step in and take another member’s place
b. coordination training: teaches the team how to share information and make
decisions to obtain the best team performance
• Action Learning
- training in which team get an actual problem, work on solving it and commit to an
action plan, and are accountable for carrying it out

Approaches to Employee Development

• Formal Education
- Organizations may support employee development through a variety of formal
educational programs, either at the workplace or off-site, these could be workshops or
short courses
• Assessment
- Another way to provide employee development is through collecting information and
providing feedback to employees about their behavior, communication style or skills
- Information for assessment may come from the employees, their peers, managers, and
• Job Experiences
- Most employee development occurs through job experiences—the combination of
relationships, problems, demands, tasks,, and other features of an employee’s jobs
• Interpersonal Relationship
- Employees can also develop skills and increase their knowledge about the organization
and its customers by interacting with a more experienced organization member
a. mentoring b. coaching


VIII. Financial Compensation and Conditions of Employment

Financial Compensation
• Consists of base pay in the form of wages or salaries, incentives, and benefits provided
by law and/or agreement and by the management of an organization
• Is the basic source to satisfy basic needs and wants as well as the means to attain the
standard of living and economic security

Factors Affecting Financial Compensation

• Cost of living
- used to determine the wages and salaries that employees may be paid
- The increase in the wages and salaries of employees should at least be equal to the
increase in the cost of living
• Wages and salaries paid by other companies in the same and other industries
- Wages and salaries of an organization should be comparable or preferably more than
those paid by other companies if qualified and competent employees are expected to
work to the fullest of their abilities and stay loyal
• Supply and Demand of Labor
- When a demand for a particular type of labor is greater than the supply , the wages or
salaries that would be paid will be higher. If the supply is more than the demand, wages
and salaries would tend to be low
• Company’s ability to pay
- Organizations operating at maximum plant capacity tend to be able to pay their
employees fat salaries and wages
• Strength of labor unions
- Through labor unions, employees’ financial compensation are far better than what the
legislated minimum benefits and compensation provide
• Governmental regulations and controls
- These legislations are imperative to enforce the constitutional provisions to free the
people from poverty through policies that provide adequate social services, promote full
employment, a rising standard of living and the improvement in the quality of life for all

BASE COMPENSATION or basic compensation

 It refers to the varying rates or wages and salaries that personnel are paid on account of
the different jobs or positions existing in an organization. Job evaluation is used to
determine what constitute an equitable base compensation

Supplementary Compensation

 In addition to the base compensation and incentive or variable compensation used as

the primary method of compensating personnel, additional forms of financial
compensation called supplementary compensation are provided
 Some supplementary compensation are mandated by law: SSS benefits, sick leaves
with pay, medicare benefits, COLA, and 13th month pay

The different forms of supplementary compensation include:

 employee profit sharing


 production sharing plan

 employee stock ownership
 fringe benefits

Employee profit sharing plan

- this is usually provided for in an agreement whereby the employer or an organization
commits to share, fixed in advance, with employees the profits that may be made during a
given year
- Two types:
a. trust or deferred distribution
- a trust fund is established from which benefits are distributed as certain contingencies
such as death, disability
b. cash or current distribution
- The benefits are received by the employees in cash
Production sharing plan
- The savings coming from the reduction in labor or production costs are divided among
the employees
Employee stock ownership
- Usually provide employees of an organization to purchase at a reduced rate or on easy
terms through payroll deductions shares of stocks of the company

Fringe Benefits
- vacation leave with pay
- sick leave with pay
- bereavement leave
- SSS benefits
- medicare benefits
- hospitalization plan
- life insurance
- accident insurance
- Christmas bonus
- mid-year bonus
- educational plan
- housing plan
- car plan
- management bonus
- maternity leave
- sabbatical leave
- 13th month pay
- personal leave

Conditions of Employment

• Coverage: employees in all establishments and undertakings, whether for profit or not,
except for government employees, managerial employees, field personnel, domestic
helpers, persons in the personal service of another and workers paid by results are
covered. As such compliance with the conditions of employment provided by the LCP is
• Normal Hours of Work: the normal working hours for an employee is 8 hours a day
• Meal Periods: employees are to be given by their employees not less than 60 minutes
time-off for their regular meals


• Hours Worked: hours worked mean all the time when an employee is on duty or be at a
prescribed workplace and all time when an employee is to work. Rest periods of short
duration during working hours is considered as hours worked
• Night Shift Differential: every employee working between 10 o’ clock in the evening
and 6 o’ clock in the morning should be paid at least 10% of his wage as night shift
• Overtime Work: employees may work beyond 8 hours a day but the employer has to
give additional compensation equivalent to 25% of his regular wage. For work performed
beyond 8 hours on a holiday or rest day shall be paid additional compensation
equivalent to the rate for the first 8 hours on a holiday or rest day plus at least 30%

When Employer may Require Work on a Restday

• In case of actual or impending emergencies caused by serious accidents, fire, flood,

typhoon, earthquake, epidemic or other disaster
• In case of urgent work to be performed on the machinery, equipment or installation to
avoid serious loss which the employer would otherwise suffer
• In event of abnormal pressure of work due to special circumstances, where the employer
cannot ordinarily be expected to resort to other measures
• To prevent loss or damage to perishable goods
• Where the nature of the work requires continuous operations and the stoppage of work
may result in irreparable injury or loss to the employer

Emergency Overtime Work

• When the country is at war or when national or local emergency has been declared
• When it is necessary to prevent loss of life or property or there is imminent danger to
public safety
• When there is urgent work to be performed on machines, installation or equipment in
order to avoid serious loss or damage to the employer or some other cause of similar
• When the work is necessary to prevent loss or damage to perishable goods
• Where the completion or continuation of the work started before the 8th hour is
necessary to prevent serious obstruction or prejudice to the business


IX. Human Resource Maintenance

Essentials for Successful Maintenance of Personnel

 an acceptable employee compensation package must be provided to the employees

 the physical and mental health and safety of employees should be a major concern of
the company
 employee complaints and grievances are attended to
 disciplinary actions against employees are carried out in accordance with organizational
policies, practices and in accordance with law
 the organizational climate must be conducive to the maintenance of good supervisory-
subordinate relationship
 good communication at all levels in the organization
 comfortable working conditions and physical facilities are provided

Employee Health and Safety

• Maintenance of employee health and providing for the safety requirements of the
organization are the justifications for the establishment of employee health and safety
• Organizations that put a premium on employee health and safety maintenance can
minimize losses in life and limb and reduce the irreparable damage resulting from death
or injuries caused by accidents
• Health: refers to the physical, mental, and emotional condition of a person. A person is
healthy when he is free from physical and mental illness and emotional problems
• Safety: involves protecting personnel from diseases, death or injuries which are work

Grievance and Complaints

• Grievance: defined as any real or imagined feeling of personal injustice that an

employee has about the employment relationship. This feeling does not have to be
expressed to become a grievance. Neither does it have to be true or correct. A feeling
that arises from imaginary conditions or from incorrect reasoning is still a grievance if it
causes a feeling of injustice
• In the Philippines, a grievance refers to any complaint regarding the terms and
conditions of employment or a formal dispute that is brought to the attention of either the
management or the labor union for settlement in a unionized organization
• Complaint: refers to any dissatisfaction on the part of an employee that is work related
in an organization that is not unionized

Causes of Grievances:
- Grievances usually arise when employee morale is low and when frustration and
discontentment is prevalent among personnel due to poor supervision or to unfair management

1. A violation of management or the union of the labor agreement or collective bargaining

agreement (CBA)
2. Vague provisions of the CBA that lead to different interpretations of the CBA


3. Unfair treatment of a subordinate by the supervisor

4. Violations of Philippine laws on labor, health and/or safety
5. Faulty supervision due to: dictatorial tendencies of a supervisor, refusal to listen to employee
complaint, unfair or inconsistent disciplinary actions, display of take-it or leave-it attitudes for
subordinates, unclear and insufficient instructions, failure to inform employees of changes

Disciplinary Procedures
• Defined as the actions or steps that the management through its managerial employees
initiate to correct or put an end to violations of acceptable norms of behavior required of
the personnel of an organization
• Approaches to discipline:
- handled in many different ways
- can be categorized in to two:

a. positive approach: the purpose of the disciplinary procedure is to correct the wrong
behavior and put a stop to further mistakes

b. negative approach: the intention of the disciplinary process is to punish the erring employee
and to discourage non-violators from misbehaving because of fear
• Penalties given erring employees
- When the facts and the violation of an employee could be justified, varying penalties
are given for the first, second, third offense of the same infringement
- The range of penalties available are: oral reprimand, written reprimand, fines, loss of
privileges, layoff or suspension, demotion, and termination from work
- When the employee is found guilty of a serious offense, the penalty could be
immediate termination from employment

Characteristics of an effective disciplinary procedure:

- It should be based on definite policies
- The responsibility for administering disciplinary actions should be determined, with the
initial responsibility being placed on the immediate supervisor
- The rules must be communicated to all employees
- Disciplinary action should be administered consistently among all employees
- The rules and penalties should be reasonable and related to effective and safe
- Situational pressures and an individual’s circumstances should be considered when the
appropriate disciplinary action is being determined
- Written reprimand should not remain in an employee’s file indefinitely; a statute of
limitations should exist regarding the change or removal of such reprimands

Requirement for Effective Disciplinary Action Meeting

- The interview must be held in private
- The employee’s personal file must document both exemplary actions as well as
- State facts in a straightforward manner
- Point out the work rule violated and its effect to the organization
- The employee should be allowed to explain and deny his/her actions without
- If the infringement was due to a miscommunication, admit it and terminate the case


- do not use bad words or foul language, remain unemotional and treat the employee
with respect
- If the violation was an honest mistake, take action to prevent it to recur
- After discipline is administered, forget the past and show confidence in the employee


X. Labor-Management Relations

Labor Relation

• refers to the relationships between the employees on one hand and management on the
• also covers the relationship between management and labor unions in unionized
• these relationships are governed by the Constitution, pertinent provisions of the Labor
Code of the Philippines, social legislation and applicable court decisions and regulations
promulgated by the appropriate government agencies affecting employer-employee

Rights of Labor
• Right to protection by the state
• Right to full employment
• Right to equal work opportunities regardless of sex, race and creed
• Right to collective bargaining and negotiations
• Right to security of tenure
• Right to just and humane conditions of work
• Right to peaceful, concerted activities including strikes
• Right to participate in policy and decision-making processes affecting their rights and
• Right to certain hours of work and rest periods
• Right to overtime and premium pay
• Right to living wage
• Right to emergency, medical and dental treatment
• Right to protection under safety and health standards
• Right to employee’s compensation in case of injury, or illness in line of duty
• Right to social security and medical care

Labor Unions

• Unions are guardians of the just interests of labor

• One of the chief objectives of a union is to secure a labor contract from the employer
which defines the rights and duties of both management and workers. This contract
covers wages, hours of work, and working conditions.
• Provide a medium through which management may know how the workers feel about
management and amicably discuss problems with them through grievance procedures
• Labor Organization: any union or association of employees that exists in whole or in
part for the purpose of collective bargaining or for dealing with employees concerning
terms and conditions of employment

Collective Bargaining

• is a process whereby management and the union discuss and decide terms and
conditions of employment which will govern the conduct of their relationships within the
duration of the agreement


Strikes and Lockouts

• Strike : covers concerted work stoppages, slowdowns, mass leaves, sit-downs, as well
as attempts to damage, destroy, or sabotage plant equipment and facilities

• Lockout : comprises shut-downs or the suspension or cessation of business operations

in the course or as a result of a deadlock in collective bargaining negotiations or labor

• Picketing : the act of strikers in patrolling back and forth, carrying posters, signs and
placards in front of the company’s premises under strike

• Labor dispute : includes any controversy or matter concerning terms and conditions of

Causes of strikes and lockouts:

 to enforce demands for higher wages

 overtime premiums
 differential pay
 shorter working hours
 wage adjustments
 better working conditions
 unfair labor practices of the employer
 management fails to recognize and deal with a union
 strikes declared without valid reason

Kinds of Strikes:

a. Unfair labor practice strike: staged because management has allegedly committed an act
unfavorable to the interest of the union

b. Economic strike: staged to enforce demands for higher wages, overtime benefits, shorter
working hours, wage adjustments

c. Sit-down strike: when employees refuse to work but remain in the premises of the company,
refuse to leave the plant and machines and not allow these to be operated by others

d. Slow-down: a form of work stoppage in which employees deliberately reduce their individual

e. Sympathy strike: employees in a company with which they have no labor dispute stop work
as a means of showing their support for a strike by another group of employees working

f. Wildcat strike: a strike that is declared suddenly, quickly, is unauthorized by the union
members and contrary to the labor agreement



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