HUMAN RESOURCE MANAGEMENT

- HRM is concerned with how employees are employed and managed in an organization.
- Central unit in any organization

5 FUNCTIONS

1. HUMAN RESOURCE PLANNING

 Coordination - used to describe how HRM through HRP coordinates with the diff. departments
to strategize the right number of people I positions needed in each department
 Concentration - makes sure that the right number of workers & positions are obtained
 Consideration - ensures that the organization has employed responsible f trustworthy people
who can obtain the company's objectives. (ESTIMATION of the costs of employment of HR)

2. JOB ANALYSIS/ DESIGN; RECRUITMENT, SELECTION & PLACEMENT

 Acquisition - of pertinent info about the jobs in the org is vital
 Allocation – of budget for different recruitment activities which will help in the selection
process.

3. TRAINING & DEVELOPMENT; CAREER MANAGEMENT

 Maintenance - Keeps the employee's morale intact
 Motivation - Boost their abilities & maximize their skills
 Measurement - Quantifies the improvement of the employees performance based on the
acquisition of new skills

4. PERFORMANCE APPRAISAL; COMPENSATION & BENEFITS

 Rewards - provides the benefit they deserve
 Retention - ability of the company to keep loyal employees
 Remuneration - fair & equitable provisions of salaries & w in compliance with the law

5. EMPLOYEE RELATIONS & DISCIPLINE

 Policies - Parameters on how to discipline employees and ensure due process in every
disciplinary action.
 Practices - shape an organization culture and enhance the employee’s morale.
 Prevention - promotes rapport and encourages trust and transparency between the employer &
employees.

1. HUMAN RESOURCE PLANNING

 Means devising plans, strategies, & tools to provide the right number of people with the right
skills & qualifications at the right time.

COORDINATION - the process in which an organization attempts to estimate the demand for
labor & evaluate the size, nature and sources of supply which will be required to meet the
supply.

4 STAGES OF HRP PROCESS

A. Environmental Scanning
B. Forecasting HR Requirements
C. Decision Analysis
D. Action Plan/ Program Implementation

A. ENVIRONMENTAL SCANNING
- Assesses the factors that affect the labor market as well as the ability of the company to respond
to these factors
- Look at the organizations SWOT

B. FORECASTING HR REQUIREMENTS
- This is making predictions based on critical factors to come up with a key decision.

CONSIDERATION - to be successful, there is a need for an HR manager to be guided by the

following info:

1) THE HRP TEAM

A. Senior Members of top MGT - GO AHEAD signal.
B. Department / Line Manager - assists in analyzing HR requirements
C. HR Professionals - ensures that department managers are provided with all the help
they need.
D. IT Professionals - undertake the process animation
E. Finance Budget Analysts – makes the linkages between human resource requirements
and the corresponding monetary limitations.

2) CURRENT A LONG-TERM WORKFORCE REQUIREMENTS

- The HR department should replace those who are due for retirement promoted: and
look into current vacancies to be filled in.

3) EVALUATION TO THE COMPANY'S CURRENT ROSTER OF PERSONNEL

- There is a need to assess how many regular / full time / part time/ temporary workers.
  Contingent Workers - temporary workers skills inventory

 Skills Inventory - information of an employee’s educational background, experience

skills and compensation history.

4) ASSESSMENT OF EXTERNAL LABOR ENVIRONMENT WHICH AFFECTS THE FUTURE SUPPLY

OF EMPLOYEES

- The External Environment is evaluated on the basis of the average no. of graduates the
courses per year as well as the average age of the labor force

a) Forecasting External Supply - it is important to determine potential employees

from information available in government offices such as DOLE NSO, & private
websites.

b) Forecasting Internal Supply - there are actuarial losses which are unavoidable.

 Actuarial Losses - refer to lift events tike death, disability & retirement.

 Turnover – total number of employees leaving the organization, divided by

the total number of employees in the organization

Voluntary - resignations which are made by the

employees.

Involuntary - dismissals and layoff made by the employer.

METHODS OF FORECASTING
INTERNAL SUPPLY
TREND ANALYSIS
- simple method
- requires a record of past trends
SKILLS/ COMPETENCY MODELS
- matches the skills and competencies
needed for each job with those of the
employees in the organization.
REPLACEMENT CHART
- identify vacancies in superior
positions and filling those through
ADVANTAGES DISADVANTAGES
- easy - limited to organizations with stable HR
- inexpensive trends
- past information can accessed - it cannot be used alone in a complex
easily as long as yearly HR audit organizations
is done - it can ignore/ overlook important
events which have occurred during
present/ recent years
- provides a good picture of the - no guarantee that the past info
competencies of the employees. contained is valid
- less costly
- fairly easy to employ
- identifies the top performer or - it can only be applied on internal
the vacancies they can fill. movements
- organization’s easy - can only rely on the person’s
horizontal (lateral) or vertical identification of a person performance, education and readiness
movements.

SUCCESSSION PLANNIG - prepares successors to assume - expensive

- traces the potential replacements to key positions - might leave the organization
key positions and hones them to
become successful
- long term process
STAFFING TABLES - using the chart, the - numbers do not indicate anything,
- graphical representations of all jobs organization can make making the tables mere preludes
and the persons assigned to each job. adjustments concerning the
predicted no. of employees in
the future
MARKOV ANALYSIS - only effective for stable trends
- it forecasts internal movements from one year to the next by determining - organizations with very high turnover
the percentage of employees who remain in their jobs, are promoted/ rate can’t use it
transferred/ dismissed or have resigned the organization.

CONCENTRATION - in determining the shortage/ surplus of manpower, it is very important

to forecast future requirements

FORECASTING HR DEMAND
(QUANTITATIVE METHODS)

1) TREND ANALYSIS - it predicts demand for personnel based on past trends over a number of
years between an operational index.

2) RATIO ANALYSIS - it predicts HR demand based on ratios between selected factors and the
number of employees needed. It may predict inaccurate sales growth

3) REGRESSION ANALYSIS - statistical method of predicting HR demand by determining the

relationship between various factors CIV) & the company's employment level CDU). It is
complex & difficult.

(QUANLITATIVE METHODS)
1) DELPHI METHOD
- Uses a panel of experts to project the number of personnel through various factors.
- Uses a "MIDDLE PERSON" to gather the data of each member summarize the comments of
panel.
 - Time consuming & subjective. Some experts can’t help but disclose their judgments to
others.

2) NOMINAL GROUP TECHNIQUE

- Uses a panel of experts, (line managers who discuss, meet face to face and project HR
demand
- The experts will strive very hard to come up with an accurate forecast
- Assessment can lead to solving other issues
- Time consuming and subjective. Biases cannot be avoided.

3) SCENARIO ANALYSIS

- This method applied multiple scenarios to predict HR demand, based on a number of

assumptions.

- There is one caveat: the organization must keep on monitoring factors that influence the
scenarios created.

C. DECISION ANALYSIS

- Gap Analysis: finding the difference between the forecasted HR Supply & HR Demand.

(IDENTIFIES 3 CRUCIAL DECISION)

A. Labor Equilibrium - HR demand = HR supply

B. Shortage of workers - HR demand is more than HR supply
C. Surplus of Workers - HR supply is more than demand

D. ACTION PLAN/ IMPLEMENTATION OF THE PROGRAM - the organization is now ready to identify the
strategies for its implementation.

A. Labor Equilibrium - during a status quo, current employees are trained further in their fields.
There are also instances when employees are transferred from one department to another.

B. Labor Surplus - the company has several options when there is a labor surplus.

- Attrition - normal separation of employees such as resignation / retirement.

- Hiring Freeze - prevents new hire's and assigns incumbent personnel to fill job vacancies
- Layof – getting rid of redundant position

C. Labor Shortage – there are several ways to address labor shortage:

 1) Schedule overtime work hours
2) Hire contractual/temporary ore project based workers

3) Outsource the Work: A company may use a third party and let the latter gets its own
people to do the tasks such as customer service.

This can be solved by external recruitment. Once done, the organization prepares a budget and
provides a working plan on how to implement the chosen strategy.