HUMAN RESOURCE MANAGEMENT

OVERVIEW

To survive and thrive in a competitive business environment, organizations

need more than just strategic plans in place. They need the right talent to
implement those plans. Those who manage human resources – not just HR
departments, but all managers have a critical task in front of them. They have to
identify, recruit, hire and retain employees who have both the skill sets and
determination to effectively implement strategic objectives in their individual
departments so the business plan succeeds as a whole.

INTRODUCTION

DEFINITION OF HUMAN RESOURCE MANAGEMENT

 The process of hiring and developing employees so that they become more
valuable to the organization.

 Human Resource Management includes conducting job analyses, planning

personnel needs, recruiting the right people for the job, orienting and
training, managing wages and salaries, providing benefits and incentives,
evaluating performance, resolving disputes, and communicating with all
employees at all levels.

 Examples of core qualities of HR management are extensive knowledge of

the industry, leadership, and effective negotiation skills. Formerly called
personnel management.

http://www.businessdictionary.com/definition/human-resource-
management-HRM.html

Human resource management was previously known as personnel

management which was concerned with the activities of a single department. It was
typically concerned with the administration of human. The functions carried out by
the department were recruitment and selection, reward, appraisal, development,
grievance handling, retirement, registration and so forth. It was introduced and
developed in the bureaucratic set up in which importance was given on
organization and administration of manpower.

Now, human resource management may be defined as a process in which

human resources are recruited and mobilized in such a way that it helps in
achieving the objective of the organization. HRM is concerned with the people
dimension in management under which the consideration is
given towards recruitment and selection, development, motivation and
maintenance of human resources in an organization. It is one of the main functions
of management, which is related with the management of human energies and
competencies. Human resource management helps to ensure the right man, for the
right position and at the right time in a changing environment. The organizational
performance depends on the efficiency of human resource working in the
organization. Hence, a proper set up should be taken for manpower planning,
recruitment, motivation, training and development, performance evaluation,
remuneration management and industrial relation.
 Moreover, human resource management is concerned with the development
of human skill, knowledge and ability to perform the organizational tasks
effectively and efficiently. It is a field of study consisting of four functions-
acquisition, development, motivation and maintenance of human resources. The
acquisition is related with getting people, development is with preparing them for
work, motivation refers to activating them and finally maintenance refers to
keeping them retained in the organization.

Therefore, human resource management is an art of managing and

mobilizing people in the organization. It is done through the application of
different practices and policies which ultimately values human resources as major
asset of an organization. It integrates personnel function into strategic
management.

5 COMPONENTS OF A HUMAN RESOURCE MANAGEMENT SYSTEM

by Jeremy Bradley; Updated June 26, 2018
https://smallbusiness.chron.com/five-components-human-resource-management-system-64231.html

On a basic level, human resource management is about recruiting, hiring and

managing employees. However, an effective human resource system entails many
more aspects of the organization, including organizational culture and ensuring
health and safety. With an understanding of these components of an HR
management system, business owners and managers can effectively structure their
business processes.

1. Organizational Culture - is the collection of values, working norms,

company vision, habits and beliefs that the business espouses.

 The HR management system plays a large part in shaping the organizational

culture. Setting policies, procedures and company standards dictates to
employees the behaviors that are acceptable in the workplace. For example,
a policy may state that time management is important to the business, which
fosters timeliness among employees, or HR may adapt a looser time
management policy that values employees' freedom to manage their own
schedules. In essence, the organizational culture affects the way people do
their work and interact with one another and with customers.

2. Planning for Change – means helping employees understand their roles in

the larger picture of the company.

 The business world changes rapidly. New technology is introduced,

employees come and go, and the finances of the company fluctuate. HR's
role in helping to stabilize the company for change cannot be understated.
Planning for change means helping employees understand their roles in the
larger picture of the company. It's about building bridges between
departments and managers and getting people to talk about "what-if"
situations. HR takes this information and develops a management plan for
disasters, for changes in workflow and for reassuring employees in times of
crises or frightening change.
3. Training and Development – continuing education keeps employees' skills
fresh so they bring new and innovative ideas to the workplace.

 Almost all employees, even ones that are highly educated or skilled, require
some level of training because each organization runs things in a different
way. Policies and procedures need to be firmly communicated to employees
as part of their on-boarding process. The HR management system is also
responsible for ongoing employee development.

 Only training and development do not inspire employees to do better work.

For this, they should be motivated. Here motivation means an activity which
induces and inspires people to perform well in actual work floor. Motivation
includes job specification, performance evaluation, reward and punishment,
work performance, compensation management, discipline and so on. It is
important for better work performance because high performance depends
on both ability and motivation.

4. Health and Safety - ensuring health and safety in the workplace through
policies and procedures.

 The HR management system plays a key role in ensuring health and safety
in the workplace. This can be achieved through policies and procedures, but
the HR function may go a step further to make sure employees understand
the risks of certain activities. For example, if there is heavy machinery in the
office, HR can post warning signs and posters listing the steps to take in case
of an emergency. This minimizes the possibility that an accident will occur
and helps to eliminate any subsequent legal action that might be taken
against the company.

 Maintenance is the last components of human resource

management. it is concerned with the process of retaining the
employees in the organization. This contributes towards keeping the
employees who can do extremely better for the organization. It
creates such a homely and friendly environment for those high
performers, and make them to remain in the same organization for
a longer period of time. This requires that the organization should
provide additional facilities, safe working conditions, friendly work
environment, and satisfactory labor relations. If these activities are
performed in right manner, we can expect to have capable and
competent employees in the organization. These employees are
committed to the organizational objectives and are satisfied with
their job.

5. Recruitment and Retention – finding qualified workers, keeping them

engaged with the company, training them to effectively do their jobs and
providing incentives for further education, benefits and compensation are all
drivers to organizational success and should be constantly on the minds of
HR managers.

 While recruitment and retention may seem like a given for HR management
systems, it is the anchor of all HR's policies and systems.
  It selects and socializes the competent employees who have adopted the
organization's culture.

NATURE OF HUMAN RESOURCE MANGEMENT

• It is pervasive in nature as it is present in all enterprises.

• Its focus is on results rather than on rules.
• It tries to help employees develop their potential fully.
• It encourages employees to give their best to the organization.
• It is all about people at work, both as individuals and groups.
• It tries to put people on assigned jobs in order to produce good
results.
• It helps an organization meet its goals in the future by providing for
competent and well-motivated employees.
• It tries to build and maintain cordial relations between people
working at various levels in the organization.

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, remuneration, incentives,
productivity etc.

2. Welfare Aspect - It deals with working conditions and amenities such

as canteens, rest and lunch rooms, housing, transport, medical assistance,
education, health and safety, recreation facilities, etc.

3. Industrial Relations Aspect - This covers union-management

relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc.

BENEFITS OF STUDYING HUMAN RESOURCE MANAGEMENT

Many organizations claim that their employees are their most valuable asset.
And for this reason, effective management of human resources is essential for
every company. Human resources helps in structuring teams, it builds the
organizations culture and it helps people with engagement and development.
Human resource management creates a lot of difference in enhancing the
productivity of the employees.

At the heart of every successful business lies the human resources team who
drive all aspects of staff management. Here are a few benefits human resource
professionals bring to the workplace:

1. Improve employee turnover

 High employee turnover hurts a company’s bottom line. It cost twice as
much as a current employee’s salary to find and train a new recruit.

 Human Resource professionals will know how to hire the right people for
the company from the start. Interview candidates carefully, not just to ensure
they have the right skills but also to check that they fit the company’s
 culture. It’s important that they outline the right compensation and benefits
too. Human resource professionals also need to pay attention to employee’s
personal needs. They need to discuss clear career paths too as employees
would like to know how they can grow within the company. Human
resource professionals usually only see employees when there are problems
but to reduce employee turnover they will regularly visit staff members and
inquire if they are comfortable and happy.

2. Conflict resolutions
 Workplace conflict is somewhat inevitable as employees have different
personalities, lifestyles and work ethic.

 Human Resource professional will know how to handle conflict in the

workplace and how to resolve it. They should know how to handle the
situation as professionally as possible. It doesn’t matter whether the conflict
arises between employees or an employee and someone in management,
they should be able to assist both parties equally and not choose sides.

3. Employee satisfaction
 Human resource specialists are usually charged with the responsibility of
determining employee satisfaction.

 Human Resource professionals set up surveys, focus groups and interview

strategies to determine whether employees are content or not. Human
resource professionals determine what the underlying causes are for
employee dissatisfaction and they address those issues and motivate staff
members with creative solutions. They try to find out what exactly these
problems are that employees are facing and look for ways to assist them
where needed.

4. Improve employee performance

 Human resources teams develop performance management systems.

 If a company doesn’t have a human resource professional, candidates can

easily get a job without having the necessary skills and expertise for the
position. And for this reason, human resources is needed in every workplace.
With the line-manager, human resource professionals have to give employee
performance reviews on an annual basis. Be open about their
accomplishments and things they could have done better.

5. Training and development

 Human resource departments conduct needs assessments for employees to

determine the type of skills training and employee development programs
that are required for improvement and additional qualifications.

 Every startup or company in a growth phase can benefit from identifying

training needs for its staff. It’s less expensive to hire additional staff or more
qualified candidates. This can also reduce the company’s employees
turnover and improve employee retention.
6. Helps with budget control

 It’s critical for human resources to define as many processes as specific

projects, the annual pay review or the development of a new program.

 As a human resource professional, it’s important and helpful to understand

the broad budget of a project. Human resources curb excessive spending
through developing methods for trimming workforce management costs.
Human resource professionals also ensure competitive and realistic wage
setting based on studying the labor market, employment trends and salary
analysis based on job functions.

Human resource professionals will learn to develop a strategic approach to

training, recruiting and developing the company’s most important asset: its people.
As businesses expand, these professionals are needed to keep everything together.
At the end of your Human Resource management training course, you’ll be
prepared to handle difficult staff members and design pay structures as well as
analyze the influence of unions and government on the labor force.
 PART 1 – THE HUMAN RESOURCE MANAGEMENT

1.1 MANAGING HUMAN RESOURCES

Many companies refer to HRM as involving “people practices”. Figure 1

emphasizes that there are several important HRM practices that should support the
organization’s business strategy: analyzing work and designing jobs, determining
how many employees with specific knowledge and skills are needed (human
resource planning), attracting potential employees (recruiting), choosing
employees (selection), teaching employees how to perform their jobs and preparing
them for the future (training and development), evaluating their performance
(performance management), rewarding employees (compensation) and creating a
positive work environment (employee relations).

An organization performs best when all of these practices are managed well. At
companies with effective HRM, employees and customers tend to be more
satisfied, and the companies tend to be more innovative, have greater productivity,
and develop a more favorable reputation in the community.

Strategic HRM
Design of Work

Compensation
Development

Management
Performance
Training and
HR Planning
Analysis &

Recruiting

Employee
Relations
Selection

Figure 1. Human Resource Management Practices

Question: How does HRM contribute to an organization’s

performance?
CONCEPT OF HUMAN RESOURCE MANAGEMENT

The concept of human resource management implies that employees are

resources of the employer. As a type of resource, human capital means the
organization’s employees, described in terms of their training, experiences,
judgment, intelligence relationships, and insight – the employee characteristics that
can add economic value to the organization. In other words, whether it
manufactures automobiles or forecasts the weather, for an organization to succeed
at what it does, it needs employees with certain qualities, such as particular kinds
of training and experience. This view means employees in today’s organizations
are not interchangeable, easily replaced parts of a system but the source of the
company’s success or failure. By influencing who works for the organization and
how those people work, human resource management therefore contributes to basic
measures of an organization’s performance, such as quality, profitability, and
customer satisfaction. Figure 2 shows this relationship.

Type of Human Capital

 Training
 Experience
 Judgment
 Intelligence
 Relationships Organizational
 Insight Performance
Human Resource  Quality
Management  Profitability
Behavior of Human  Customer
Capital Satisfaction
 Motivation
 Effort

Figure 2. Impact of Human Resource Management

RESPONSIBILITIES OF HUMAN RESOURCE DEPARTMENT

The human resource functions and some of the options available for carrying out
are presented herein. HRM involves both the selection of which options to use and
the activities involved with using those options.

Analyzing and Designing Jobs. To produce the given product or service,

companies require that a number of tasks be performed. The tasks are grouped
together in various combination to form jobs. Ideally, the tasks should be grouped
in ways that help the organization to operate efficiently and to obtain people with
the right qualifications to do the job well. This function involves the activities of
job analysis and job design. Job Analysis is the process of getting detailed
information about the jobs. Job Design is the process of defining the way work
will be performed and the tasks that a given job requires.
Table 1. Responsibilities of HR Department
FUNCTIONS
Analyzing and Designing Jobs
Recruiting and Hiring
employees
Training and Developing
Employees
Managing Performance
Planning and Administering Pay
and Benefits
Maintaining Positive Employee
Relations
Establishing and Administering
Personnel Policies
Managing and Using Human
Resource Data
Ensuring Compliance with
Labor Laws
Supporting the Organization’s
Strategy
RESPONSIBILITIES
Work analysis; job design descriptions
Recruiting; job postings; interviewing; testing;
coordinating use of temporary labor
Orientation; skills training; career development
programs
Performance measures; preparation and
administration of performance appraisals;
discipline
Wage and salary administration; incentive pay;
insurance; vacation leave administration;
retirement plans; profit sharing; stock plans
Attitude surveys; labor relations; employee
handbooks; company publications; labor law
compliance; relocation and outplacement services
Policy creation; policy communication
Record keeping; HR information systems; working
workforce analytics
Policies to ensure lawful behavior; reporting
posting information; safety inspections;
accessibility accommodations
Human resource planning and forecasting; talent
management; change management

Recruiting and Hiring Employees. Based on the job analysis and design,
the organization can determine the kinds of employees it needs. With this
knowledge, it carries out the function of recruiting and hiring employees.
Recruitment is the process through which the organization seeks applicants for
potential employment. Selection refers to the process by which the organization
attempts to identify applicants with the necessary knowledge, skills, abilities and
other characteristics that will help the organization achieve its goals. An
organization makes selection decisions in order to add employees to its workforce,
as well as to transfer existing employees to new positions.

Training and Developing Employees. Although organizations base hiring

decisions on candidates’ existing qualifications, most organizations provide ways
for their employees to broaden or deepen their knowledge, skills and abilities. To
do this, organizations provide for employees’ training and development. Training
is a planned effort to enable the employees to learn job-related knowledge, skills
and behavior. Development involves acquiring knowledge, skills and behaviors
that improve employees’ ability to meet the challenges of a variety of new or
existing jobs, including the client and customer demands of those jobs.
Development programs often focus on preparing employees for management
responsibility. Likewise, if a company plans to set up teams to manufacture
products, it might offer a development programs to help employees learn the ins
and outs of effective teamwork.
 Managing Performance. Managing human resources includes keeping
track of how well employees are performing relative to objectives such as job
descriptions and goals for a particular position. The process of ensuring that
employees’ activities and outcomes match the organization’s goals is called
performance management. The activities of performance management include
specifying the tasks and outcomes of a job that contribute to the organization’s
success.

Compensation and Benefits. The pay and benefits that employees earn play
an important role in motivating them. This is especially true when rewards such as
bonuses are linked to the individual’s or group’s achievements. Decision about pay
and benefits can also support other aspects of an organization’s strategy. Planning
pay and benefits involves many decision, often complex and based on knowledge
of a multitude of legal requirements.

Maintaining Positive employee Relations. Organizations often depend on

human resource professionals to help them maintain positive relations with
employees. This function included preparing and distributing employee handbooks
that detail company policies and, in large organizations, company publications
such as monthly newsletter or a website on the organization’s intranet. Preparing
these communications may be a regular task for the human resource department.

Establishing and Administering Personnel Policies. All the human

resource activities described so far require fair and consistent decisions, and most
require substantial record keeping. Organizations depend on their HR department
to help establish policies related to hiring, discipline, promotions, and benefits.

Managing and Using Human Resource Data. All aspects of human

resource management require careful and discreet record keeping, from processing
job applications, to performance appraisals, benefits enrollment and government-
mandated reports. Handling records about employees requires accuracy as well as
sensitivity to employee privacy.

Ensuring Compliance with Labor Laws. The government has many laws
and regulations concerning the treatment of employees. These laws govern such
matters as equal employment opportunity, employee safety and health, employee
pay and benefits, employee privacy and job security.

Supporting the Organization’s Strategy. The HR professionals need to

understand the organization’s business operations, project how business trends
might affect the business, reinforce positive aspects of the organization’s culture,
develop talent for present and future needs, craft effective HR strategies and make
a case for them to top management.
ETHICS IN HUMAN RESOURCE MANAGEMENT

Whenever people’s actions affect one another, ethical issues arise, and
business decisions are no exception. Ethics refers to the fundamental principles of
right and wrong; ethical behavior is behavior that is consistent with those
principles. Business decisions, including HRM decisions, should be ethical, but the
evidence suggests that is not always what happens. Many ethical issues in the
workplace involve human resource management. The financial crisis, in which the
investment bank Lehman Brothers collapsed, insurance giant, AIG survived only
with a massive infusion of government funds and many observers feared that
money for loans would dry up altogether, had many causes. Among these, some
people believe, were ethical lapses related to compensation and other HR policies.

In the context of ethical HRM, HR managers must view employees as having

basic rights, to wit:

1. Right of Free Consent – People have the right to be treated only as they
knowingly and willingly consent to be treated. (Ex. The employees should
know the nature of the job they are being hired to do; the employer should
not deceive them.

2. Right to Privacy – People have the right to do as they wish in their private
lives, and they have the right to control what they reveal about private
activities. One way an employer respects this right is by keeping the
employees’ personal records confidential.

3. Right of Freedom of Conscience – People have the right to refuse to do what

violates their moral beliefs, as long as these beliefs reflect commonly
accepted norms. A supervisor who demand that an employee do something
that is unsafe or environmentally damaging may be violating this right if the
task conflicts with the employees’ values.

4. Right of Freedom of Speech – People have the right to criticize an

organization’s ethics if they do so in good conscience and their criticism
does not violate the rights of individuals in the organization. Manu
organizations address this right by offering hot lines or policies and
procedures designed to handle complaints from employees.

5. Right to Due Process – If people believe their rights are being violated, they
have the right to a fair and impartial hearing.

One way to think about ethics in business is that the morally correct action is
the one that minimize encroachments on and avoids violations on these rights.

QUESTION: How does the Philippine government protect the rights

and welfare of the employees and workers?
  Labor Code of the Philippines
PRESIDENTIAL DECREE NO. 442, AS AMENDED

A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND

CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO
LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT
AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE

 REPUBLIC ACT NO. 6715 (March 2, 1989)

AN ACT TO EXTEND PROTECTION TO LABOR, STRENGTHEN THE

CONSTITUTIONAL RIGHTS OF WORKERS TO SELF-ORGANIZATION,
COLLECTIVE BARGAINING AND PEACEFUL CONCERTED ACTIVITIES,
FOSTER INDUSTRIAL PEACE AND HARMONY, PROMOTE THE
PREFERENTIAL USE OF VOLUNTARY MODES OF SETTLING LABOR
DISPUTES, AND REORGANIZE THE NATIONAL LABOR RELATIONS
COMMISSION, AMENDING FOR THESE PURPOSES CERTAIN PROVISIONS OF
PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE
LABOR CODE OF THE PHILIPPINES, APPROPRIATING FUNDS THEREFORE
AND FOR OTHER PURPOSES

DOLE – Department of Labor and Employment

Secretary: Silvestre H. Bello III
 Department Advisory 01-19 Guidelines on the Computation of Salary Differential of
Female Workers during her Maternity Leave and its Criteria for Exemption Pursuant to
Republic Act No. 11210 and its Implementing Rules and Regulations

 Department Order 201-19 Guidelines on the Deployment of Workers to Japan under the
Status of Residence “Specified Skilled Worker”

 Department Order 198-18 Implementing Rules and Regulations of Republic Act No.
11058 ”An Act Strengthening Compliance with Occupational Safety and Health
Standards and Providing Penalties for Violations Thereof”

THE WORKERS’ BASIC RIGHTS

In the Philippines, the workers/employees have the following basic rights

based from the Bureau of Working Conditions (BWC). The BWC is a staff
bureau of the Department of Labor and Employment (DOLE), primarily
performing policy and program development and advisory functions for the
Department in the administration and enforcement of laws relating to working
conditions.

1. Equal Work Opportunities for All

The State shall protect labor, promote full employment, provide equal work
opportunity regardless of gender, race, or creed; and regulate employee-employer
relations.
Male and female employees are entitled to equal compensation for work of
equal value and to equal access to promotion and training opportunities.
Discrimination against female employees is unlawful. It is also unlawful for an
employer to require a condition of employment that a woman employee shall not
get married, or to stipulate expressly or tacitly that a woman employee shall be
deemed dismissed upon marriage.
 The minimum age of employment is 18 years for hazardous jobs, and 15
years for non-hazardous jobs. But a child below 15 maybe employed by parents or
guardians in a non-hazardous job if the employment does not interfere with the
child's schooling.

2. Security of Tenure
Every employee shall be assured security of tenure. No employee can be
dismissed from work except for a just or authorized cause, and only after due
process.
Just Cause refers to any wrongdoing committed by an employee including:
a. serious misconduct
b. willful disobedience of employers' lawful orders connected with work
c. gross and habitual neglect of duty
d. fraud or willful breach of trust
e. commission of crime or offense against the employer, employer's family
member/s or representative
f. other analogous cases
Authorized Cause refers to an economic circumstance not due to the
employee's fault, including:
a. the introduction of labor-saving devices
b. redundancy
c. retrenchment to prevent losses
d. closure or cessation of business
Due Process in cases of just cause involves:
a. notice to employee of intent to dismiss and grounds for dismissal
b. opportunity for employee to explain his or her side
c. notice of decision to dismiss
In authorized causes, due process means written notice of dismissal to the
employee specifying the grounds, at least 30 days before the date of
termination.
The inability of a probationary employee to meet the employer's prescribed
standards of performance made known to him or her at the time of hiring is also
a just cause for dismissal.

3. Work Days and Work Hours

Work Day refers to any day during which an employee is regularly required
to work. Hours of Work refer to all the time an employee renders actual work, or is
required to be on duty or to be at a prescribed workplace. The normal hours of
work in a day is 8 hours. This includes breaks or rest period of less than one hour,
but excludes meal periods, which shall not be less than one hour.
An employee must be paid his or her wages for all hours worked. If all or
any part of his or her regular work hours falls between 10:00 p.m. to 6:00 a.m., a
covered employee shall be entitled to a night shift pay in addition to his or her pay
for regular work hours. If he or she works for more than 8 hours in one day, he or
she shall be entitled to overtime pay.

4. Weekly Rest Day

Day-off of 24 consecutive hours after 6 days of work should be scheduled
by the employer upon consultation with the workers.
 5. Wage and Wage-Related Benefits
Wage is the amount paid to an employee in exchange for a task, piece of
work, or service rendered to an employer. This includes overtime, night
differential, rest day, holiday and 13th month pay. It also includes the fair and
reasonable value of board, lodging and other facilities customarily furnished by the
employer.
Wage may be fixed for a given period, as when it is computed hourly, daily
or monthly. It may also be fixed for a specified task or result. If wage is for a fixed
period, the minimum wage for a regular 8-hour workday shall not be lower than
the minimum daily wage applicable to the place of work as determined by the
Regional Tripartite Wage and Productivity Board having jurisdiction over
workplace.
If wage is paid by result, the worker shall receive at least the prescribed
minimum wage for 8 hours of work. The amount may be increased or reduced
proportionately if work is rendered for more or less than 8 hours a day.
An employer cannot make any deduction from an employee's wage except
for insurance premiums with the consent of the employee, for union dues, or for
withholding taxes, SSS premiums and other deductions expressly authorized by
law.

6. Payment of Wages
Wages shall be paid in cash, legal tender at or near the place of work.
Payment may be made through a bank upon written petition of majority of the
workers in establishments with 25 or more employees and within one (1) kilometer
radius to a bank. Payment shall be made directly to the employees.
Wages shall be given not less than once every two (2) weeks or twice within
a month at intervals not exceeding 16 days.

7. Employment of Women
Night work prohibition unless allowed by the Rules:
 in industrial undertakings from 10PM to 6AM
 in commercial/non-industrial undertakings from 12MN to 6AM
 in agricultural undertakings, at night time unless given not less than 9
consecutive hours of rest
Welfare facilities must be installed at the workplace such as seats, separate
toilet rooms, lavatories, and dressing rooms.
Prohibition against discrimination with respect to pay (i.e. equal pay for
work of equal value), promotion, training opportunities, study and scholarship
grants.

8. Employment of Children
Minimum employable age is 15 years. A worker below 15 years of age
should be directly under the sole responsibility of parents or guardians; work does
not interfere with child's schooling/normal development.
No person below 18 years of age can be employed in a hazardous or
deleterious undertaking.

9. Safe Working Conditions

Employers must provide workers with every kind of on-the-job protection
against injury, sickness or death through safe and healthful working conditions.
 Jobs may be hazardous or highly hazardous. Hazardous jobs are those which
expose the employee to dangerous environment elements, including contaminants,
radiation, fire, poisonous substances, biological agents and explosives, or
dangerous processes or equipment including construction, mining, quarrying,
blasting, stevedoring, mechanized farming and operating heavy equipment.

10.Right to Self-Organization and Collective Bargaining

The right to self-organization is the right of every worker, free of any
interference from the employer or from government, to form or join any legitimate
worker's organization, association or union of his or her own choice. Except those
classified as managerial or confidential employees, all employees may form or join
unions for purposes of collective bargaining and other legitimate concerted
activities. An employee is eligible for membership in an appropriate union on the
first day of his or her employment.
Collective Bargaining involves two parties:
a. the representative of the employer
b. a union duly authorized by the majority of the employees within a
bargaining unit called exclusive bargaining agent.
It is a process where the parties agree:
a. to fix and administer terms and conditions of employment which must not
be below the minimum standards fixed by law
b. to set a mechanism for resolving their grievances
The result of collective bargaining is a contract called collective bargaining
agreement (CBA). A CBA generally has a term of five years. The provisions of a
CBA may be classified as political or economic. Political provisions refer to those
which define the coverage of the CBA and recognize the collective bargaining
agent as the exclusive representative of the employees for the term of the CBA.
Economic provisions refer to all terms and conditions of employment with a
monetary value. Economic provisions have a term of five years but may be
renegotiated before the end of the third year of effectivity for the CBA.

11.Employees’ Compensation Benefits for Work-Related Contingencies

The Employees' Compensation Program is the tax-exempt compensation
program for employees and their dependents created under Presidential Decree No.
626 which was implemented in March 1975. The benefits include:
 Medical benefits for sickness/injuries
 Disability benefits
 Rehabilitation benefits
 Death and funeral benefits
 Pension benefits
1.2 TRENDS IN HUMAN RESOURCE MANAGEMENT

Among the trends that are occurring in today’s human resource management are
reliance on knowledge workers, empowerment of employees to make decisions,
and teamwork.

Knowledge Workers – Employees whose main contribution to the

organization is specialized knowledge, such as knowledge of customers, a process,
or a profession. Knowledge workers are in a position of power because they own
the knowledge that the company needs in order to produce its products and
services, and they must share their knowledge and collaborate with others in order
for their employer to succeed. (Ex. Engineers and computer programmers have in
depth knowledge of their field and are hard to replace because of their special
knowledge.)

Employee Empowerment – Giving employees responsibility and authority

to make decisions regarding all aspects of product development or customer
service. Employees are then held accountable for products and services. In return
they the resulting losses and rewards. Employee empowerment can also lead to
innovation. Employees at all levels are encouraged to share their ideas for
satisfying the customers better and operating more efficiently and safely.

Teamwork – The assignment of work groups of employees with various

sills who interact to assemble a product or provide a service. Work teams often
assume many activities traditionally reserved for managers, such as selecting new
teams, scheduling work, and coordinating work with customers and other units of
the organization. In some organizations, technology is enabling teamwork even
when workers are at different locations or work at different times. These
organizations use virtual teams – teams that rely on communications technology
such as video conferences, e-mail, and cell phones to keep in touch and coordinate
activities.
Question: How does each of the following labor force trends affect
HRM: 1) aging of the labor force; 2) diversity of the labor force; and 3)
skill deficiencies of the labor force?
CHALLENGES OF HUMAN RESOURCE MANAGEMENT

Human resource management operates in an open environment. So, it is affected

by internal and external changes in the environmental forces. It operates in a
dynamic environment; hence, the change may create opportunities as well as
threats for the organization. The main issue behind human resource
management challenges is the emerging trends in the organizational environment
and policies/procedures to encounter such issues to achieve organizational
objectives. The ever changing external and internal environment poses a variety of
challenges to human resource management. The primary concern of it is how to
deal with people in the organization. Due to this ever changing socio-economic,
technological and political condition, the HR managers shall have to face more
problems in future in the management of work force. These challenges can be
studied under three dimensions as follows:

1. Environmental Challenges
Environmental challenges refer to forces and institutions that are beyond the access
of management. These forces are external to the organization, and beyond the
control of management. Hence, the managers face difficulties in managing such
environmental issues. Environmental challenges consist of the following factors:

* Globalization Movement
* Change in Economic Outlook
* Change in Political Environment
* Change in Socio-cultural Environment
* Change in Technological Environment

2. Organizational Challenges
Organizational challenges are internal to the firm, often they are the by-product of
environmental challenges. The management has control over these issues and can
be managed by efficient management. Moreover, under organizational challenges
we review the components of specific environment of the company. It consists of
the following aspects:

* Work Force Diversity

* Organizational Objectives
* Downsizing
* Business Process Re-engineering
* Decentralization
* Management of Human Relation
* Computerized Information System

3. Individual Challenges
These forces are related to the personnel aspect of the organization. It includes all
the complexities that are raised due to organizational interaction with people.
These are similar to the organizational challenges but are primarily concerned with
the individual. Some of its components are as follows:

* Brain Drain
* Individual Norms and Values
* Mobility of Professional personnel between organizations
* Aspirations of Employees
1.3 PROVIDING EQUAL EMPLOYMENT OPPORTUNITY AND A SAFE
WORKPLACE

EQUAL EMPLOYMENT OPPORTUNITIES

Among the most significant efforts to regulate human resource management

are those aimed at achieving Equal Employment Opportunity (EEO). It is the
condition in which all individuals have an equal chance for reemployment,
regardless of their race, color, religion, sex, age, disability or national origin. The
government’s effort to create equal employment opportunity include constitutional
amendments, legislation, and executives orders, as well as court decisions that
interpret the laws.

BUSINESSES’ ROLE IN PROVIDING EQUAL EMPLOYMENT OPPORTUNIY

Rare is the business owner or manager who wants to wait for the
government to identify that the business has failed to provide for equal
employment opportunity. Instead, out of motives ranging from concern for fairness
to the desire to avoid costly lawsuits and settlements, most companies recognize
the importance of complying with these laws. Often, management depends on the
expertise of human resource professionals to help in identifying how to comply.
These professionals can help organizations take steps to avoid discrimination and
provide reasonable accommodation.

1. AVOIDING DISCRIMINATION

Decisions about resources are so complex that discrimination is often

difficult to identify and prove. However, legal scholars and court rulings have
arrived at some ways to show evidence of discrimination.

Disparate Treatment. It refers to differing treatment of individuals, where

the differences are based on the individuals’ race, color, religion, sex, national
origin, age or disability status. (Ex. Hiring or promoting one person over an
equally qualified person because of the individual’s race; company fails to hire
women with school-age children but hires men with school-age children)

Disparate Impact. It is a condition in which employment practices are

seemingly neutral yet disproportionately excluded a protected group from
employment opportunities. (Ex. pay, hiring (referrals), promotions, training)

Employers can also avoid discrimination and defend against claims of

discrimination by establishing an enforcing the following policies:

Equal Employment Opportunity. The policy should define and prohibit

unlawful behaviors, as well as provide procedures for making and investigating
complaints. The policy should require that employees at all levels engage in fair
conduct and respectful language. Derogatory language can support a court claim of
discrimination.

Affirmative Action and Reverse Discrimination. The policy increases the

representation of the minorities. The policy was meant a taking extra effort to
attract and retain minority employees.
 2. PROVIDING REASONABLE ACCOMMODATION

In situations involving religion and individuals with disabilities, equal

employment opportunity may require that an employer make reasonable
accommodation. Reasonable accommodation refers to an employer’s obligation
to do something to enable an otherwise qualified person to perform a job. (Ex.
kinds of clothes to wear or clothes preference; employees with disabilities)

3. PREVENTING SEXUAL HARASSMENT

Sexual harassment refers to unwelcome sexual advances. The EEOC has

defined the types of behavior and the situation under which this behavior
constitutes sexual harassment. Under this guidelines, preventing sexual
discrimination includes managing the workplace in way that does not permit
anybody to threaten or intimidate employees through sexual harassment. (Ex.
promotion in exchange for sexual favors).
 PART 2 – ACQUIRING AND PREPARING HUMAN RESOURCES

2.1 PLANNING FOR AND RECRUITING HUMAN RESOURCES

THE PROCESS OF HUMAN RESOURCE PLANNING

Organizations should carry out human resource planning so as to meet

business objectives and gain a competitive advantage over competitors. Human
resource planning 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

Forecasting - attempts to determine the supply and demand for various

types of human resources to predict areas within the organization where there will
be labor shortages or surpluses.

Goal Setting and Strategic Planning - focus attention on the problem and
provide basis for measuring the organization’s success in addressing labor
shortages and surpluses.

Program Implementation and Evaluation - ensure that individuals will be

accountable in achieving the goals, have the authority and resources to accomplish
the goals, and issue regular progress report.

MAJOR STEPS IN FORECASTING

1. Forecasting the Demand for Labor – determine the labor demand for worker in
various job categories.

2. Determining Labor Supply – determineS how many people are currently in

various job categories or have specific skills within the organization.

3. Determining Labor Surplus or Shortage – summarizes the disadvantages and

advantages of ways to eliminate a labor surplus and avoid a labor shortage.

RECRUITING HUMAN RESOURCES

RECRUITING is:
- any activity carried on by the organization with the primary purpose of
identifying and attracting potential employee
- encouraging the qualified people to apply for jobs

ASPECTS OF RECRUITING

1. Personnel Policies– organization’s decisions about how it will carry out human
resource management, including how it will fill job vacancies.

2. Recruitment Sources– organization’s methods for communicating its labor needs

and the audience it targets will determine the size and nature of the labor market
the organization taps to fill its vacant position.

3. Recruiter Traits and Behaviors– recruiter affects the nature of both the job
vacancy and the applicants generated.
RECRUITMENT SOURCES

Internal Sources are employees who currently hold other positions in the
organization.

 Job Posting – process of communicating information about a job vacancy

on company bulletin boards, in employee publications, on corporate
internets, and anywhere else the organization communicates with
employees.

External Sources are being used for entry level positions and perhaps for
specialized upper level positions to expose the organization to new ideas or new
ways of doing business.

 Direct Applicants and Referrals - people who apply for a vacancy without
prompting from the organization; people who apply for a vacancy because
someone in the organization prompted them to do so.
 Electronic Recruiting – involves posting career information at company’s
websites.
 Print Ads (Newspapers and Magazines) – when the goal is to find people
who know the local community and to find people in specialized field, etc.
 Public Employment Agencies – employers can register their job vacancies
with their local employment office, and the agency will try to find someone
suitable, using its computerized inventory of local unemployed individuals.
 Private Employment Agencies – provides much the same service for the
white-collar labor market.
 Colleges and Universities – most colleges and universities have placement
services that seek to help their graduates obtain employment. (Ex. internship,
career/job fairs)
2.2 SELECTING EMPLOYEES AND PLACING THEM IN JOBS

Hiring decisions are about finding the people who will be a good fit with the
job and the organization. Any organization that appreciates the competitive edge
provided by good people must take the utmost care in choosing its members.
Selection decisions become especially critical to its ability to survive, adapt, and
grow.

SELECTION PROCESS

Through personnel selection, organizations make decisions about who will

or will not be allowed to join the organization. Selection begins with the candidates
identified through recruitment and with attempt 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 the jobs with the organization.
The process of selecting employees varies considerably from organization to
organization and from job to job. However, most organization includes the
following steps:
 Screening Applications and Resume
 Testing and Reviewing Work Samples
 Interviewing Candidates (permissible and impermissible questions)
 Checking References and Background
 Making a Selection

Note: aptitude, achievement, cognitive, and medical examinations, drug test, etc.

Figure 3. Selection Process

2.3 TRAINING EMPLOYEES

Training consists of an organization’s planned efforts to help employees

acquire job-related knowledge, skills, abilities and behaviors, with the goal of
applying these on the job. A training program may range from formal classes to
one-on-one mentoring, and it may take place on the job or at remote location. No
matter what its form, training can benefit the organization when it is linked to
organizational needs and when it motivates employees.

INSTRUCTIONAL DESIGN

An effective training program actually teaches what it is designed to teach,

and it teachers skills and behaviors that will help the organization achieve its goals.
To achieve those goals, the HR professionals approach training through
instructional design. It is a process of systematically developing training to meet
specified needs.

Assess Ensure Plan Implement Evaluate

needs for readiness training training results of
training for training program program training

Feedback

Figure 4. Stages of Instructional Design

Need Assessment- perform organizational analysis person analysis, task analysis

Readiness for Training – consider employee readiness characteristics (ability,

skills, etc.) and work environment

Planning – prepare the objectives of the program, trainers, methods (classroom

methods, computer-based, OJT, simulations, case studies, team training, etc.)

Implementation – take note of the transfer of learning, etc.

Evaluation – measure the results through evaluation methods