Chapter 1

THE DEVELOPMENT OF HUMAN RESOURCES

Objectives:

After the lesson, the students should be able to:

1. Define Human Resource Management;

2. Discuss why Human Resource Management is both a science and an art;
3. Explain and differentiate the different roles of the Human Resource Manager and his
functions;
4. Discuss the importance of the Human Resource Manager in a business and his major
contribution toward the development of the organization; and
5. Explain the career development of a Human Resource Manager.

Growth and Development of Personnel/Human Resource Management in the Philippines

HRM – relatively new field in the Philippines

- gradually gained acceptance and recognition in private business and industry in the early 1950s
For it to gain acceptance and recognition, three conditions need to exist:
 Top management must be convinced that personnel management is needed in its business
operations;
 Qualified personnel administrators must be available;
 Personnel administrators must demonstrate their capacity to contribute to the company’s
objectives and goals. 

What is Human Resource Management?

Definition of Human Resource Management
The function of management, concerned with promoting and enhancing the development of work
effectiveness and advancement of the human resources in the organization. These are
accomplished through proper planning, organizing, directing, coordination, and controlling of
activities related to procurement, development, motivation, and compensation of employees to
achieve the goals of the enterprise.
HRM: A Science or an Art?

 A Science is a systematic accumulation of facts, their analysis and interpretation, and

their use to arrive at a satisfactory conclusion.
 HRM is a science because it involves the systematic gathering of data derived from
surveys, statistics, interviews, and observations.
 It is an applied science because it utilizes scientific principles in analyzing and
interpreting data for application in the management of people at work.
 Art is proficiency in the practical application of knowledge acquired through study,
experience, or observation. After the required data are gathered and analyzed and the
possible solutions to a problem are formulated, a good executive needs to select the best
from among alternative solutions.  He needs to implement his choice at the right time to
achieve the desired result, and to foresee the probable success or failure of his line of
action, and institute needed corrective measures promptly.  This is where HRM is an art,
since it involved the making of sound decision.
 The major tools of the Human Resource Manager as a scientist and as an artist are his:

                1. creative imagination
                2. intelligence
 These become more keen as he learns from practice and experience, honing his intuition
and insight in handling various problems of employees in such a way that there is order,
harmony, balance, and proper timing. He also knows how to simplify complex problems.

Organization and Human Resources

 To grow and thrive in today’s competitive environment, organization must deal with
many and diverse changes.
 Traditionally the concept of value has been considered a function of finance or
accounting.
 Human resources are crucial to the long-term survival of the organization.
 Definition of value includes not only profits but also employee growth and satisfaction,
additional employment opportunities, protection of the environment, and contribution to
community development.
 Organization is made up of people.
 The main goal of any organization is to provide goods and services effectively.
 It is the people who are linked in a formal structure and managerial leadership.
 People are vital to an effective HRM program.
  The development of an effective organization hinges on the proper selection,
development and utilization, rewarding, and maintaining capable people.
 The organization resources are stretched tightly to come up with the demand of the global
environment.
 The allocation of these various resources wisely is imperative. An organization must
work together to contribute efficiently towards the goals and objectives set by
management.
 The effective utilization of manpower can help add and create value.

The Challenges of Human Resources

1. The challenges of the Global Community
 Compete with global business community to survive
 Compete and defend not only their local markets and customers; they must broaden their
scope to encompass global markets.

2. The Stockholders Challenge

 Key to success – meet the investor’s needs and those of the other stakeholders.
 Stakeholders are the customers, employees, and the community where the enterprise
operates.
 The companies are challenged to reach financial objectives through meeting customer’s
needs and employees’ need.
 Satisfied customers are assets that will sustain company growth and financial stability.
 The HRM greatly influences cost reductions, quality management, and financial systems
that are ingredients to profitability and growth.
 Companies shall look into diverse work forces to capitalize on forward-looking ventures.
 Successful companies practice good HRM programs that motivate and reward employees
that provide high quality products and services. These companies believe that their
greatest assets are their work force.

3. The Challenge for Productivity

 The global technology is increasing the challenge to greater productivity.
 HR became more “smarter workers” with the aid of computer-aided machines, Internet,
and expert systems.
 They produce high quality products that are demanded by the world market.
 The introductions of these new technologies need the reconfiguration of the employee’s
work design, training program, and reward system.

The links of high productivity are:

 1. Human Resource and capabilities
2. New technology and opportunities
3. Efficient work structure and company policies that allow employees and technology to
interact.

The organization’s competitive advantage depends on the strength of the above linkage.

Organizations must deal successfully with these challenges to create and maintain value. HRM
must face these challenges to motivate and develop a well-trained and committed work force.

Contributing Growth Factors of HR in the Philippines

1. Increasing Complexity of Business Operations

 Birth of big corporations where the volume and variety of operations and the size of the
labor force demanded specialization in management.
 Personnel specialist was called upon to formulate and carry out the organization’s
personnel policies and programs.

2. Government regulations and labor laws promulgated in recent years

To safeguard the worker’s interests, especially those related to wages, working conditions, job
security, and health, the government deemed it wise to enact a number of labor laws and
government regulations.
 Women and Child Labor Law
 Minimum Wage Law
 Eight-hour Labor Law
 Industrial Peace Act of 1953 (Magna Carta of Labor)
 Labor Code of the Philippines and its implementing Rules and Regulations – took effect
on Nov. 1, 1974.
 NOTE: compliance with these laws became part of services of HR department

3. Growth of labor unions

 The passage of the Industrial Peace Act of 1953 triggered the organizations of labor
unions and the strengthening of the worker’s bargaining power.
 Collective bargaining negotiations and the administration of union contracts may best be
handled with the technical resources of the HR department.
 With the passage of the new law making unfair practices a criminal offense, the
responsibility of the personnel or industrial relations department becomes very important
and thus makes the position of personnel managers a necessity in every company.

4. Influx of new concepts in management

  The employee welfare concept is not new, but its nature has changed from one of
paternalism to that of employee rights through practices that have become
institutionalized.
 Employee benefits have become varied and far ranging, making their administration a
complex function. The facilities of the HR department are here again utilized to handle
such programs.

Personnel/Human Resource Manager

A member of the top executive group, is responsible for the formulation of personnel policies
and programs which will serve as the foundation for an efficient personnel administration in a
company for it to realize its goal an objectives and allow the employees to develop their
individual career goals.

The Role of HR in the Organization

 The new role that the HR department performs includes outplacements, labor law
compliance, record keeping, testing, compensation, and some aspect of benefit
administration.
 The HR department has to collaborate with other company executives on employment
interviewing, performance management and employee discipline, and efforts to improve
quality and productivity.

The role includes the following:

1. Recruitment and Employment
 Interviewing, testing, recruiting, and temporary labor coordination.
2. Training and Development
 Orientation of new and temporary employees, performance management training, and
productivity enhancement
3. Wage and Salary Management
 Job evaluation, wage and salary survey, executive compensation
4. Benefits Administration
 Vacation and sick leaves administration, insurance, stock plans, pension plans, retirement
plans assistance programs.
5. Employee Service and Recreation
 Bus service, canteens, athletics, housing and relocation.
6. Community Relations
 Publications, community projects and relations.
7. Records Management
 Employment records, information systems, performance records.
8. Health and Safety
 Training, safety inspection, dental medical services, drug testing.
9. Strategic Management
 Collaborative planning, out-sourcing, manpower research, organizational planning.
 
Roles of the Personnel/HR Manager
Supervisor
 He plans, organizes, directs, controls and coordinates the activities of his department.  He
delegates some of his functions to his subordinates but checks on them through follow-
ups.  He manages the work of the employees in his department and trains them in
developing their skills for efficiency.
Administrative Official
 He or his staff conducts or directs certain personnel activities as provided for in the
policies and programs entrusted to the department.  He sees to it that labor laws and
government regulations are properly complied with.  He should also know how a policy
is made and administered.
Adviser
 He serves as counselor, guide and confidante to management supervisors and employees. 
To be competent, he must keep himself informed about employee attitudes and behavior
and be abreast of trends in the industrial relations field which may affect his company.
Coordinator
 He brings into action all activities, regulates and combines diverse efforts into a
harmonious whole, and gets together and harmonizes the work of various personnel in his
department and the related functions in other departments.
Negotiator
 He is the representative of management in negotiating labor contracts or to attend
negotiations with unions in an advisory capacity.  As a negotiator and administrator of
the labor contract, he must understand the nature, significance, and methods of collective
bargaining.
Educator
 He conducts or administers the company’s training program.  He is very much involved
in the management of employee development programs of his company.
Provider of Services
 He provides services to all employees and helps them obtain facilities with government
agencies like SSS, Medicare, etc., which can make their employment more satisfying.
Employee Counselor
 His knowledge and training in human relations and the behavioral sciences plus his
familiarity with company operations, puts him in the best position to counsel
employees.
Promoter of Community Relations
 He must be well informed of the activities and developments in the environment where
the enterprise operates.  He is called by the management in helping the company project a
favorable and positive image to the community.
Public Relations Man
 His functions require him to deal with the general public, which includes the employees,
the unions, and the community.
Personal Qualities of the Personnel Manager
1. can communicate effectively, both orally and in writing.
2. possesses an above average intelligence
3. enjoys working with people
4. grasps the implications of a given situation, understands individual attitudes and proves
equal to the problems of the employees and of the employer.
5. aggressive, mature and capable of giving sound advice that will be in the best interests of
both the employer and the employee.
6. Possesses the integrity, industry and courage to earn the respect of the employees and his
employer.
7. possess a pleasing personality and personal warmth and should be approachable.

The skills needed by today’s HR professionals

A higher degree of professionalism is the demand of the new HR practitioner.  This includes the
following:

1. A higher degree of knowledge on management practices and processes. He would need

this to collaborate with other line managers.
2. The HR practitioner is a service provider to other line managers. He must posses a high
degree of human and public relations.
3. A great knowledge of human psychology and social relations. It is a great asset to
effective coordination.
4. He is a consultant on labor relations. A working knowledge of labor laws and regulations
is of great advantage.
5. As a management practitioner. A thorough knowledge of management and its relations to
effective organization is a must for all HR managers to plan out strategic approaches to
problems and their solutions.
6. A community relations office. The HR Manager develops greater linkage with
government and other stakeholders. He has to coordinate with schools and other agencies
for their manpower pooling and other services.
Chapter 2: Strategic Human Resource Planning
Learning Outcome:
Discuss the role of the human resource in strategic planning;
Explain the two important components in human resource planning;
Discuss the different kinds of planning techniques in human resource management.

Human Resource Planning (HRP)

The process of systematically reviewing human resource requirements to ensure that the number
of employees matches the required skills. It is the process of matching the internal and external
supplies of people with job openings anticipated in the organization over a specific period of
time.

HRP helps companies are an important investment for any business as it allows companies to
remain both productive and profitable.

Strategic Planning
 The determination of the overall organizational purpose and goals and how they are to be
achieved.
  Human resource is the integral component of a strategic plan, which greatly affects
productivity and organizational performance.
 After the strategic plans have been formulated, human resource strategic planning is to be
undertaken. Along this line, strategies are reduced to specific quantitative and qualitative
human resource plans.  The HRD shall determine the total manpower component to
execute the planned strategic activities.

Two Important Components of HRP

1. Requirement

 Forecasting human requirement involves determining the number and types of employees
needed. The level of skills has to be determined and matched with the plan operations.
 The analysis will reflect various factors such as production plans, and changes in
productivity together with the introduction of new technology if there is any.
 The HRD, in order to forecast availability must look to both internal and external sources.
 Internal sources – refer to existing manpower that could be re-assigned to new positions
or be promoted to higher vacant positions.
 External source – refers to positions that is not available inside the organization and need
to be sourced out.

2. Availability

 When employee requirements have been analyzed, the firm determines whether there is a
surplus or shortage of manpower.
 If there is a surplus, ways must be instituted to reduce the number of employees.
 Some of these methods include restricted hiring, reduced work hours, early retirement for
old employees, and the worst is to layoff some employees.
 If the manpower forecast reveals shortage, the HRD must obtain the proper quantity and
quality of workers outside the organization after exhausting efforts to find from within.
 Human resource planning must be continuous, as changing conditions could affect the
entire organization thereby requiring extensive modifications of forecasts.

When it concerns human resources, there are more specific criticism that it is over-quantitative and neglects
that qualitative aspects of contribution. The issue has become not how many people should be employed,
but ensuring that all members of staff are making an effective contribution.

Aspects of HRP
1. Systematic Forecasting of Manpower Needs
o On the basis of business conditions and forecasts, manpower needs are planned and
monitored closely.
2. Performance Management
 o Analyzing, improving and monitoring the performance of each employee and of the
organization as a whole.
3. Career Management
o Determining, planning and monitoring the career aspirations of each individual in the
organization and developing them for improved productivity.
4. Management Development
o Assessing and determining the developmental needs of managers for future succession
requirements.
Advantages in Using the Elements of HR Planning
 Through a systematic planning of human resources, a company can be better assisted in
attaining its goals and objectives.
 It helps the company determine its manpower needs and provides a method of meeting
them.
 It can be an effective means of planning the development and growth of the employees.
 It can assist in placing the employees properly in jobs where they can maximize the use
of their skills and potentials.
 It can assist the company to attract and retain better qualified employees.

Five Steps to Human Resource Planning

1. Determining the workload inputs based on the corporate goals and objectives.

o Once the company’s objectives are known, the operating executives can determine what
they are responsible for in the common endeavor of attaining the corporate goals.
o The kind and magnitude of workload determine the organizational structure, the number
and quality (skills) of employees needed to man the organization or department under a
desirable level of performance.

Several factors that should be considered in determining work inputs:

 Business Development and Assumptions

 Corporate Planning
 Economic Forecasts
 Changes in Plans and Products
 New Product Lines
 Mergers and Consolidations

2. Studying the jobs in the company and writing the job description and job specifications.

3. Forecasting of manpower needs

o Determination of the number and skills of people required for the work.
 o Forecasting manpower needs comes next after determining the work input, and is known
as the planned and logical method of determining, both quantitatively and qualitatively,
the employees needed to man the work inputs to enable the company to attain its goals.

 4. Inventory of Manpower

o An analysis of the present manpower complements of the company to determine whether

it has enough or less or more personnel (both quantitatively and qualitatively) than
required.
o This fourth step in the planning process is the inventory (audit) of available current
manpower.
o What happens in this step is the assessment of the skills, career aspirations, strengths and
weaknesses of each of the current employees, their potentials and promo ability.
o Each is matched against the positions forecasted in step 3. When the current manpower is
matched against forecast of needs, positions are filled either by promotion, transfer or
assignment of qualified personnel, taking into account the most effective method of
achieving the corporate goals.

The net result of this operation is that you either find:

 Enough manpower
 Excess in the number of available manpower, but lacking the skills required
 The number of available manpower is insufficient, and the skills are also inadequate to
meet the needs of the work inputs.

5. Improvement Plans

o Determination of the appropriate steps to implement the HRP in order to ensure that the
company has the right number and right quality of people, properly assigned to jobs for
which they are most useful.
o This includes action plans to improve the capabilities of current personnel thru training
and development.
o This plan can be part and parcel of the total development program which covers career
planning, management development programs, succession programs, etc.

Planning Techniques in HR Management

1. Skills Inventory

 This approach involves the listing of all the skills possessed by the workforce and they
are made to relate to the requirements of the organization.
 This technique requires detailed information of the experience and training of every
individual in the organization.
2. Ratio Analysis

 This is a technique wherein the personnel who are promotable to the higher positions are
identified together with their backup or understudy.
 There should be a ratio that will ensure that promotions will not create any void. To
accomplish this, recruitment must support the backup requirements.  At the same time,
training must be done to develop the backup ratio.

3. Cascade Approach

 Under this approach the setting of objectives flows from the top to bottom in the
organization so that everyone gets a chance to make his contribution.
 This approach results in the formulation of a plan wherein the objectives of the rank and
file get included in the blueprint for action. The plan is then a participatory planning
output.

4. Replacement Approach

 Under this approach, HRP is done to have a body of manpower in the organization that is
ready to take over existing jobs on a one-to-one basis within the organization. This
approach calls for year-round acceptance of applications for possible replacements.

5. Commitment Planning Approach

 This technique involves the supervisors and personnel in every component of the
organization on the identification of needs in terms, skills, replacements, policy, working
conditions and promotion so that human resource in the organization may be up to the
challenge of current and future operations. The units thus become conscious of their
needs and aware of the ways the human resource requirements can be met.

6. Successor Planning Approach

 The approach know as successor planning takes into consideration the different
components of the old plan and increase them proportionately by the desired expansion
rate stated by management. The cost of doing the activities is likewise increased.  Any
new concern is set up at a starting scale and viewed in proportion with other comparable
aspects of the existing plan.  This approach also enables the personnel staff to get by
without having to ask much from management which, in turn, does not expect much from
the HR staff in terms of radical change.

Common Weaknesses in Human Resource Planning

1. Over-Planning
- A plan is likely to fail through an inherent weakness of having covered too many aspects of
personnel management at the very early stage of HRP in the firm or government office.

2. Technique Overload

- The use of so many techniques sometimes leads to the gathering of so much information. Then
the techniques do not get to be applied effectively.  This makes the techniques serve as a trap
rather than a means for action.

3. Bias for the quantitative

- There are planners in HRM who sometimes make the mistake of being drawn towards
emphasizing the quantitative aspects of personnel management to the neglect of the qualitative
side.

4. Isolation of the Planners

- When top management has a low regard for human resource activities and for the HR staff,
they give little encouragement to HRP activities, ignore the plan and withdraw support for plan
implementation.

5. Isolation from Organization Objectives

- When HRP is pursued for its own sake or for a narrow viewpoint of concentrating on HRD, the
effort leads to the formulation of a plan that does not interphase with organizational
development.

6. Lack of Line Supervisor’s Inputs

- Any plan to develop the personnel and to improve the conditions of work must use the
feedback from the line supervisors since they are the ones who are handling the personnel in the
organization.

Four Basic Terms of Manpower Forecasting

1. Long Term Trend
2. Cyclical Variations
3. Seasonal Variations
4. Random Variations

1. Long Term Trend

Long term forecasting is usually done for a period of five years or more depending on the
company operations and customer demands.
2. Cyclical Variations

 This refers to reasonable and predictable movements that occur over a period of one year
or more.
 This cyclical movement may be due to economic conditions, political instability, peace
and order, loss in customer demands, and societal pressures.
 This variation typically last for one to five years.

3. Seasonal Variations

 This is a reasonable prediction change over a period of one year. This covers firms who
manufacture seasonal products and hire temporary workers for temporary increase in
demand, like Christmas and other special occasions.

4. Random Variations

 This is one occasion where there is no special pattern and it is quite difficult to predict or
determine. The HR practitioner must be careful in his manpower forecast especially in
the hiring of employees.  Along this line, temporary workers are hired instead of regular
workforce.

Human Resource Forecasting Techniques

1. The Zero-Base Forecasting Approach
 It uses the organizations’ current level of employment as the starting point for
determining future staffing needs. The usual reference point is the organizational
structure pattern based on company production forecast on market and customer
demands.
 2. The Bottom-Up Approach
 This forecast uses the progression upward method from the lower organization units to
ultimately provide the aggregate forecast of employment needs. The starting point is the
number of current employees and the progress in operation requirements as the company
improves its operation to meet increasing customer demand.

3. Use of Predictor Variables

 This method uses the past employment levels to predict future requirements. Predictor
variables are known factors that have an impact on employment. 
 Sales volume determines employment levels. As production increases, demand for
manpower increases.
 It uses regression analyses to predict one item, which is known as the independent
variable (current employment level) through the other item (sales volume) that is
dependent variable.

    Linear Regression
 A dependent variable is related to one or more independent variables by a linear equation
 The independent variables are assumed to “cause” the results observed in the past
 Simple linear regression model is a straight line

Y = a + bX
where
Y          = dependent variable
X          = independent variable
a          = Y-intercept of the line
b          = slope of the line

4. Simulation
  It is a technique for the testing of alternatives on mathematical models representing the
real-world situation.
 The purpose of this model is to permit the human resource manager to gain considerable
insights into a particular problem before making actual decisions.

The Important Elements in Strategic Human Resource Planning

1. Organizational Goals
 HRP process should be tied up with the organizational strategic goals. It must rest on
solid foundation of information about sales forecasts, market trends, technological
advances, and major changes in processes and productivity.
 Considerable effort should be devolved to securing reliable data on business trends and
needs in terms of quantity and quality of labor as the basic input for human resource
planning.

2. Human Resource Forecast

 forecasting of human resource needs based on business strategies, production plans, and
the various indicators of change in technology and the organization’s operating methods.
 utilizing data and reliable ratios in forecasting
 includes indirect and direct labor and adjusting the same with productivity trends.
 result is the spread sheet of employees in terms of numbers, mix, cost, new skills, and job
categories and numbers and levels of managers needed to accomplish the organizations’
strategic goals.

Human Resource Forecast – is the most challenging part in the planning process because it
requires creative and highly participative approaches in dealing with business and technical
uncertainties several years in the future.

3. Employee Information
 maintaining accurate information concerning the composition, assignments, and the
capabilities of the current workforce.
 includes job classification, age, gender, status, organizational level, rate of pay and
functions.

Include the employee’s resume – skills, education, training, career interest and other important
personal data that could be used in the movement or transfer of employees.

4. Human Resource Availability Projections

 estimating the number of current employees and those that could be available in the
future.
  By projecting, the past data about the size, organization, and composition of the
workforce and about turnover, aging, and hiring, availability at a specific future date can
be estimated.
 the result could paint the picture of the organization’s current human resources and how
they can be expected to evolve over time in terms of turnover, retirement, obsolescence,
promotability, and other relevant characteristics.

5. Analyzing and Evaluating Human Resource Gaps

 comparing what is needed with what is available in terms of numbers, mix, skills and
technologies.
 This comparison permits the HR manager to determine gaps and evaluate where the most
serious mismatches likely appear.

This type of analysis should help management address issues such as:

1. Are there imbalances developing between projected human resources needs and
availability?
2. what is the effect of current productivity trends and pay rates on the workforce levels
and costs?
3. Do turnover problems exist in certain jobs or age levels?
4. Are there problems of career blockage and obsolescence?

Strategy Evaluation and Control

 The final component to the strategic management process

 The monitoring makes it possible for the company to identify problem areas and either
revise existing structures or strategies or device new ones.
 Emergent strategies appear as well as the critical nature of human resources in
competitive advantage.

HR Role in Providing Competitive Advantage

 HR can provide strategic competitive advantage in two ways:

A. Emergent strategies

 consist of strategies that evolve from the grassroots of the organization and can be
thought of as what the organization actually do.
 mostly identified with people in the lower level of the management hierarchy
 it is usually the lower level rank and file employees who provide ideas for new markets,
new products and new strategies being at the front line of operations.
 HRM should make sure that the information is systematically arranged and should
contain the data needed.
B. Intended Strategies

 results of the rational decision-making by top management as they develop strategic

plans.
 a pattern of plans that integrates an organization’s major goals, policies and action
sequences into a cohesive whole.
 the new focus on strategic HRM role is directed primarily on intended strategies.
 the task is to formulate business related issues relevant to strategy formulation and then
development of HR systems that can aid in the implementation of the strategic plan.

Human Resource Information System (HRIS)

- any organized approach to obtaining relevant and timely information on which to base human
resource decisions.
- an effective HRIS is crucial to sound human resource decision-making.
HRIS is designed to provide information that is -
SMART

Systematic
- information must be systematically arranged and contain the needed data

Management-Oriented
- the data and information are essential tools for effective manpower planning, retention,
development and separation of employees.

Applicable
- the data and information stored in file must be applicable in making human resource decisions.
- irrelevant data must be discarded.
- Information must be updated from time to time to be relevant to current manpower needs and
requirements.
- a manager must be able to rely on the accuracy of the information provided.

Result-Oriented
- the results from the information and the decisions derived there at must be both acceptable to
management and the employees’ concern.
- the end results must contribute to greater company productivity and employee’s satisfaction.

Time Bound
- relevant human resource information is necessary for effective decision-making.
- the needs for timely decisions are crucial to the effective management of human resources.
 
The absence of these characteristics reduces the effectiveness of HRIS and complicates the
decision-making process.

Conversely, a system processing all these characteristics enhances the ease and accuracy of the
decision-making process.

Routine Reports
- these are human resource data summarized on scheduled bases, like current manpower status,
regular employees, contractual employees, supervisors and managerial employees on a regular
payroll.

Exception Reports
- this information may contain confidential data that are available only for managerial decision-
making and needs immediate attention.
- this may pertain to violations of existing company rules and procedures, policies and
management programs.

On Demand Reports
- management may demand some reports for analysis.
- this may pertain to productivity index, individual performance records, and other information
that may lead to downsizing, and other personnel actions.

Manpower Forecasts
- applies to predictive models based on specific situations.
- this may cover increase or decrease in manpower requirements due to seasonal demand or
increase in customer orders.
- HR managers must be able to provide timely information and ready manpower to answer the
need of company operations.
 
Software Applications for HRM

the advent of the different HRM software applications has made the human resource managers’
function for decision-making just a click on the computer programs.

The Major HR Functions are:

1. Staffing Applications

- common applications used in the area of staffing include the following:

1. Applicant recruiting and tracking

2. DOLE reporting requirements
3. Developing a master employee data base
 4. Staffing applications for decision-making

2. Human Resource Planning Applications

- this involves company specific application in determining future employee turnover, growth
rate and promotion patterns, and other personnel movements.

This includes the following applications:

1. Work-Force Profile Analysis

- work-force labor supply and demand analysis, or work-force profile analysis review.

2. Work-Force Dynamic Analysis

- number of new hires, transfers and promotions, number still needed in the future and those
about to retire, job classification of employees for promotions and those departments that lack
basic skills for the job.

3. Human Resource Planning for Decision-Making

- this application pertains to information about employees who are about to retire, job
classification of employees for promotions and those departments that lack basic skills for the
job.

4. Performance Management Applications

- employee performance ratings, disciplinary actions, work-rule violations and the daily
productivity index could now be stored in the computer data base as bases for management
decisions.

5. Training and Development Applications

- These are used primarily to track down the need for employees’ training programs, courses to
attend, certified skills, and educational qualifications.
- Career applications assess the employees’ career interests, work values, and career goals.

6. Compensation and Benefits Applications

- These include payroll, job evaluation, salary survey, salary planning and analysis, executive
compensation planning and management benefits.

Chapter 3
JOB ORGANIZATION AND INFORMATION

Here are some Basic Terminologies you should know to better understand the lesson:
 1. Micromotion
 Simplest unit of work
 Involves very elementary movement such as reaching grasping, positioning or releasing
an object
2. Element
 Aggregation of two or more micromotions
 Usually thought of as a complete entity such as picking up, transporting and positioning
and item
3. Task
 Consists of one or more elements, one of the distinct activities that constitute logical and
necessary steps in the performance of an employee
 Performed whenever human effort, physical or mental is exerted for a specific purpose
4. Duties
 One or more tasks performed in carrying out a job responsibility
5. Position
 Collection of tasks and responsibilities constituting the total work assignment of a single
employee
6. Job
 Group of positions that are identical with respect to their major or significant tasks and
responsibilities
 Maybe held by more than one person
7. Occupation
 A grouping of similar jobs or job classes

Read this story about Gerami Dee’s First Job

Gerami would not have applied for the pizza job if he knew that he was also responsible for
cleaning and trash collection. A correctly defined job design will also decrease job turnover and
quitting, since the applicant will understand their responsibilities up front.

Job Design
- The process of structuring work and designating the specific work activities of an individual or
group of individuals to achieve certain organizational objectives

It involves making decisions as to who, what, where, when, why and how the job will be
performed:

Three Phases of Job Design

1. Specification of individual tasks

 The person specification is a description of the qualifications, skills, experience,

knowledge and other attributes (selection criteria) which a candidate must possess to
perform the job duties.
 The specification should be derived from the job description and forms the foundation for
the recruitment process.
 You will use the person specification as a basis for your selection decisions at short
listing, presentation/test and interview stages. Interview questions and selection tests
should also derive from the person specification and be designed to elicit more evidence
on candidates against the criteria. The person specification should also be used to write
your advertisement for the position.

2. Specification of the method of performing each task

 Task analysis is the analysis of how a task is accomplished, including a detailed

description of both manual and mental activities, task and element durations, task
frequency, task allocation, task complexity, environmental conditions, necessary clothing
and equipment, and any other unique factors involved in or required for one or more
people to perform a given task. 

3. Combination of individual tasks into specific jobs to be assigned to individuals

 It involves allocating jobs and task. Allocating jobs and tasks means specifying the
contents, method, and relationships of jobs to satisfy technological and organizational
requirements, as well as the personal needs of jobholders.

Two Dimensions of Job Design

1. Job Scope

 Refers to the number and variety of different tasks performed by the jobholder
 The range of responsibilities you may have in a job. If your job involves one task, it can
be said that your job is narrow in scope. If you have many responsibilities that require
 you to perform different responsibilities in different areas of your organization, it can be
said that you have a wide scope for your job. 

2. Job Depth

 Refers to the freedom of jobholders to plan and organize their own work, to work at their
own pace, and to move around and communicate as desired
 Lack of this, leads to job dissatisfaction which in turn result to tardiness, absenteeism and
even sabotage
 Generally, it refers to the level of expertise you have in a general job or field.

Methods in Job Design

1. Job rotation

 Periodically rotating work assignments

 Also called cross training
 Allows an individual to learn several different jobs in a work unit or department and
perform each for a specified time period
Task rotation

It usually takes place in jobs that involve a high degree of physical demands on the body or a
high degree of repetitive tasks that can become extremely tedious. Employees are periodically
removed from these mentally stressful or physically demanding tasks to a less demanding task
for a while to give them a break.

Position rotation

It is the process of laterally moving an employee to different positions, departments or

geographic locations for the purposes of professionally developing the employee by exposing
them to new knowledge, skills and perspectives. Position rotation can be further broken down
into within-function rotation and cross-functional rotation. Within-function rotation is where an
employee rotates between jobs with similar levels of responsibility and in the same functional or
operational areas. Cross-functional rotation, on the other hand, usually involves a sequence of
positions, often with increasing levels of job responsibilities.
Advantages of Job Rotation

Task rotation has some distinct advantages. It can increase job satisfaction because workers will
be exposed to various work tasks that will reduce constant physical or mental stress, which may
create more motivation to continue in the position and reduce turnover. Another advantage is the
ancillary effect of cross-training employees for different tasks, which will increase the flexibility
and adaptability of the organization.

2. Job enlargement

 Involves adding more tasks of a nature similar to the job

 It means increasing job scope

Sometimes a change in work tasks can add a much-needed boost of enthusiasm, due to the
change in daily activities, and can improve morale. The employee will also need to increase
his or her productivity to accomplish the new tasks, so he or she has a chance to implement
methods that speed up his or her output. It also shows the employee that management is
aware of the work he or she is doing, and feels he or she can accomplish more, which can
add to job satisfaction.

3. Job enrichment

 Involves upgrading the job by increasing both scope and job depth
To make this concept more usable, let's imagine you're a company manager and want to increase
the satisfaction of your staff. As you walk through the process of job enrichment, you'll need to
keep in mind these goals:

 Reduce repetitive work.

 Increase the employee's feelings of recognition and achievement.
 Provide opportunities for employee advancement (as in promotions into jobs requiring
more skills).
 Provide opportunities for employee growth (as in, an increase in skills and knowledge
without a job promotion).

Reason for Enriching Jobs

The purpose of job enrichment is to make the position more satisfying to the employee. Overall
goals for the company often include increasing employee job satisfaction, reducing turnover, and
improving productivity of employees.

To rephrase this as if it's coming from the mouth of the company manager or even the CEO:

4. Socio technical approach to Job Design

Merges the technical needs of an organization with the social needs of the employees in decision
making

Employer’s motivation is the most important factor in organizational productivity. Various

researchers have found that employee motivation is the function of socio-factor. Furthermore,
this approach considers both job-related technical systems as well as accompanying social forces
of the job. It means it includes an entire job situation along with organizational and social factors
while designing jobs. This approach leads to the development of self-managed work teams in the
organization.
5. Physical Work environment

Involves factors such as temperature, humidity, ventilation, noise, light and color which can have
an impact on the job design
Work environment should allow for normal lighting, temperature and humidity

 How do you keep your employers happy?

According to the latest Employer of Choice survey conducted by CareerBuilder Singapore, one
of the top reasons behind a candidate’s career choice was a comfortable work environment. This
is next to evergreen influences such as higher remunerations and better benefits. A great working
environment is more than just a spacious cubicle or cushy chair; so what are the factors
contributing to it then?

A. The Office Is like a Second Home

 For example, harsh lighting in the long run can be detrimental to productivity as it can be
straining on the eyes, and office temperature that’s too cold or too warm creates
discomfort. 

B. Health Matters

 It is also important to create a sanitary work environment by installing air purifiers or

ultraviolet disinfectant systems, and ensuring regular air-con servicing and carpet
shampooing. The office is, after all, an enclosed area where germs could be spread easily.
These practices can aid in creating a healthier environment which in turn will result in
lesser sick leaves being taken.

C. Open or Closed?

What kind of office layout should you adopt: open or closed concept?

 Those in support of the open concept claim that it encourages colleagues to collaborate,
and that it fosters communication. However, support is growing for the traditional closed
concept office, where there is a cubicle for each employee. Advocates say that this offers
privacy, thus preventing distractions.
 So, which concept should you adopt then? It really depends on your needs. Alternatively,
you could also consider having both layouts under one roof, so that your employees may
decide which style works for them best.

D. Fostering an All-Inclusive Spirit

  The modern office counts people from all walks of life and ages as colleagues. This is
why you should strive to make your office disabled- and elderly-friendly. This would
mean installing basic facilities such as ramps for easy access. 

E. Beyond the Physical

 A conducive working environment is more than just ensuring a comfortable physical

space; it is also about creating the ‘heart ware’. Aim to strengthen office ties not just
among employees, but between managers and employees.

Take a look at the top 10 best companies to work, and learn more about the full 100 ranking
here.
https://www.cnbc.com/2019/12/11/glassdoor-the-10-best-companies-to-work-for-in-2020.html

6. Alternative Work Schedules

Offering an alternative work schedule is a prime example of employee recognition and is a great
way to demonstrate trust in loyal and hardworking employees. Let's take a look at some of the
more popular situations and why they appeal to employees.

a) Condensed workweek
 Condensed workweeks allow employees to work fewer hours on some days and longer
hours on other days.
b) Flextime
 Flextime also spelled flexitime, is an arrangement that allows an employee to alter the
starting and/or end time of her/his workday. Employees still work the same number of
scheduled hours as they would under a traditional schedule.

c) Job sharing

 Job sharing or work sharing is an employment arrangement where typically two people
are retained on a part-time or reduced-time basis to perform a job normally fulfilled by
one person working full-time. Since all positions are shared, this leads to a net reduction
in per-employee income.
Carmen was hired as a human resources administrator at a local company. One of her first
tasks was to perform a job analysis for one of the positions that was going to be vacant soon
because of the employee's retirement; this  required Carmen to evaluate the position and help
the company make decisions on recruitment and hiring.

Carmen met with the senior administrators of her company to understand what the expectations
were. She learned that the purpose of a job analysis includes:

 Deciding on an appropriate method to conduct the analysis — observation, interview, or

questionnaire
 Documenting the employment procedures at the company so that the information can be
utilized for training, appraisal, and compensation
 Identifying the correct parameters required for fully understanding the responsibilities of
the job and selecting the right person for the job based on qualifications and experience
 Analyzing the job and not the person to determine the activities, responsibilities, and
importance in relation to other jobs
 Analyzing and predicting the changes that may occur to the responsibilities of a job over
a period of time for redesign

Methods of Job Analysis

Carmen did some research on her own to decide on the methods she could use to conduct a job
analysis. She learned that there are a number of methods, and she recorded her observations for
further discussion with the company management.

These job analysis methods include:

1. Interviews: She would interview the person who is currently on the job to understand the
everyday tasks, roles, and responsibilities.
2. Questionnaires: She would use the Position Analysis Questionnaire, or PAQ, to assess
activities, mental processes, output, interpersonal relationships, and job context.

Job Analysis
 The process of determining and reporting pertinent information relating to the nature of a
specific job
 The determination of the tasks which comprise the job and of the skills, knowledge,
abilities and responsibilities required of the jobholder for successful job performance

Uses of Job Analysis

1. Job definition
2. Job redesign
3. Recruitment
4. Selection and placement
5. Orientation
6. Training
7. Career counseling
8. Employee safety
9. Performance appraisal
10. Compensation

Jam is a human resource specialist who works at a manufacturing company. She's been asked to
prepare some job descriptions and job specifications for the company. This will require her to
perform a job analysis, which is a process used to determine knowledge, skills and abilities, as
well as the duties necessary to successfully perform a job. Jam can use the results of her job
analysis to create job descriptions, position descriptions and job specifications.

Jam needs to determine what jobs her company needs.

Jam's company designs, manufactures and sells toys. Some examples of jobs that her company
needs to perform are designing, producing and marketing toys so it can make a profit for its
owners. It's important to note that a job may take just one person or thousands of people to get it
done.

A job description is a written statement that describes a job that may involve a group of separate
organizational roles.
The description includes such things as purpose, duties, responsibilities, scope of work and
working conditions.
For example, all organizations require some degree of administration, and Jam may create a job
description for administration. Again, this job description doesn't relate to just one
administrative role in the company, but a group of roles, often referred to as positions.

A job specification is a written statement of the minimum qualifications and traits that a person
needs in order to perform the duties and undertake the responsibilities of a particular position.
Specifications are developed as part of the job analysis process.

Products of job analysis

1. Job description
Written synopsis of the nature and requirements of a job
Explains what the job and what the duties, responsibilities and general working conditions
2. Job specification
Concentrates on the characteristics needed to perform the job
Describes the qualifications that a person holding a job must posses to perform the job
successfully

Job Evaluation
  Costing of each job attaching to it, its monetary value
 Job rating or job evaluation
 Used for designing a pay structure

Chloe is a human resource specialist for a toy manufacturing company. Her boss has asked her
to perform a job evaluation for all the positions currently held by employees of the company. Job
evaluation is a systematic and objective process used by organizations to compare the jobs
within the organization to determine the relative value or worth of each job. Keep in mind that
the focus is on evaluating the job, not the people that perform the job.

Chloe's employer will use job evaluations to determine the comparative worth of each job, which
will then help determine the basis of the wages and salaries offered for each job. It helps ensure
that everyone is paid fairly relative to one another based upon the value they bring to the
organization. For example, if a mail clerk is paid more than an engineer, then there's probably a
problem with pay equity because an engineer generally brings more value than a mail clerk.
Lesson 4: Recruitment, Selection and Placement

After studying this chapter, you should be able to:

1. Define Recruitment
2. Describe the advantages and disadvantages of using internal and external methods of recruitment
3. Outline the steps in recruitment process
4. Describe structured and unstructured interviews
5. Define placement and Identify Factors in determining work assignment

Hiring employees is a crucial job duty of the human resource department. Come along and learn the
process and strategies to finding an ideal employee that matches up with the goal of the company.

A First Glance at the Recruitment Process and Strategies

Let's imagine that you work for a company in the human resource department. You just found out
that a veteran employee has decided to retire. They have been a staple of the company for so long,
how will you ever replace them? How will you know how to advertise for the positions and weed out
all the not-so-great candidates?

Luckily there are ways to help you find a great match for your company. In this lesson we will learn
the recruitment process and strategies the human resource department often practices.

Recruitment Process

For most companies the human resource department is in charge of finding competent, qualified
employees. In order to do so, they follow a series of steps to help aid them in the process.
 1. Know the position and the needs- Before the HR department can start looking for a potential
employee, they need to know what the company is looking for in a new candidate. This means
understanding what the goals and future aspirations are for the company and how the new employee
will fulfill these.

2. Design a description of the job- One way to attract potential candidates is by creating a job
description that is accurate but also captures their attention. This means explaining what the roles
and responsibilities will be for the new employee. It is also important to create a description that
contains words that will make the posting come right up when a candidate does an online job search.

3. Develop a team- A team is often put together to help with selecting candidates for interviews.
This allows more than one perspective so that the best prospect employees are chosen.

4. Announce the position- This is the step when the actual position is posted. The position might be
posted on online job searches, in print, and/or through social media.

5. Narrow down applicants- After potential employees apply for the job, the next step is to sift
through all of the applications in order to narrow down the number of candidates to consider. This
creates a small, more manageable list of possible employees.

6. Interview candidates- When a small list is created, it's time to interview those candidates. This is
when a company gets to learn about the candidate and the candidate gets to learn more about the
position.

7. Choose a finalist- After interviews are completed, the final candidate is chosen. This is also the
step when the references of that candidate are checked to ensure that the individual is the right fit for
the company.

8. Hire and complete the process- When the references are checked, an offer is presented to the
potential new employee. If they accept the offer, the recruitment process is completed.

A human resource manager has the ultimate say in who gets the job. Learn how to understand the
recruiting and selection process, where the best candidates are chosen to keep the entire workplace
productive.

A. Screening
 The Process of lifting the good applicants from the host of recruits.
 Limited to the number of individuals who apply.

1. Typical- These are commonly used by many groups and consist of various task techniques at
different stage.
2. Atypical Methods- The uncommon method used the following techniques and tools.
B. Selection
 Gets the best among the screened applicants
 The process of determining who from among the job applicants should get the job

PROCEDURES:
 Both job description and job specification are essential parts of job analysis information. Writing
them clearly and accurately helps organization and workers cope with many challenges while
onboard.

 Job description- tells what is done on the job, how it is done, why it is done the skills involved
the tools and the equipment used in doing it
 Job specification- Specific qualifications required of man who is to do it, such as the following:
amount and type of experience needed to perform the job, special training, skill and physical
demands, special abilities and aptitude, age, physical qualifications and other requirements.
 Personnel Requisition Form

-describes the reason for the need to hire a new person and the requirements of the job. It is also a
good idea to attach a job description to the personnel requisition form.

Time for selection- The employer officer must be given sufficient time to recruit and evaluate the
records of applicants and to arrive at a sound decision as to the right man for the vacancy

 “Hire in haste, and repent at leisure”


 Stages for Recruitment in Human Resources
There are several important stages that most organizations use when recruiting employees. The
recruitment stages include:

Sources of Qualified Personnel
A. INTERNAL SOURCE
if an organization has been effective in recruiting and selecting employees in the past, one of the
best sources of talent is its own employees.
Job posting and Bidding
 -a method of informing employees of job vacancies by posting a notice in central locations and
giving a specified period to apply for the job.

Internal Sources
1. Present employees
2. Friends of employees
3. Former employees
Advantages
 Provides greater motivation for good performance
 Provides greater opportunities for present employees
 Improves morale and organizational loyalty
 Enables employees to
perform the new job with little loss of time
 Disadvantages
 Promotes inbreeding
 Creates political infighting and pressures to compete
 Requires a strong management development
program
 Create a homogenous workforce

External Source
 Organizations have their disposal a wide range external sources for recruiting personnel
 Needed in organizational that are growing rapidly or have a large demand for technical,
skilled or managerial employees

Advantages
 the pool of talent is much larger
 new insights and perspectives can be brought to the organization
 frequently, it is cheaper and easier to hire technical, skilled, or managerial employees
from outside.
Disadvantages
 attracting, contracting and evaluating potential employees are more difficult
 adjustments or orientation time is longer
 morale problems can develop among those employees within the organization who feel
qualified to do the job.

TYPES OF EXTERNAL SOURCES

1.Advertising
-The placement of help wanted advertisements in daily newspapers in trade and
professional publications, or on radio and television.

2.Employment Agencies
-They provide an up to date list of unemployed persons. State employment agencies also provide free
service for individuals seeking employment and for business organizations seeking employee.

3.Temporary Help Agencies

-people working for employment agencies who are subcontracted out to business at n
hourly rate, for a period of time specified by the business.
Employee-leasing companies
-provides permanent staffs at customer companies.
4.Employee Referrals
-organization involves their employees in the recruiting process.
 *Walk-ins/Unsolicited Applications
-corporate image has a significant impact on the number and quality of people
5.Campus Recruiting
-the recruitment activities of employees on college and universities campuses.
6. Executive Search Firm
 Firm that specializes in the recruitment of executives
 Invites applicants, makes preliminary interview and submit short list to the requesting organization
for final decision.

7. Professional Organizations
8. Electronic Recruitment
 -the use of internet to recruit

EFFECTIVENESS OF RECRUITMENT METHOD

Organizational Recruitment programs are designed to bring a pool of talent to the organization.
From this pool, the organization hopes to select the person most qualified for the job. The very
important questioned faced by the HRD, is what method of requirement supplies is the best talent
pool.
Realistic Job Previews
-way of providing complete information, both positive and negative to the job applicant.
Who does the recruiting?
-In the most large and middle size organizations, the Human Resource Department is responsible
for recruiting.
-In small organizations, one person, frequently the office manager normally handles the
recruitment function in the addition to many other responsibilities.
 
ORGANIZATIONAL INDUCEMENTS IN RECRUITMENT

3 MOST IMPORTANT ORGANIZATIONAL INDUCEMENTS

1.ORGANIZATIONAL COMPENSATION SYSTEM
2. CAREER OPPORTUNITIES
3.ORGANIZATIONAL REPUTATION

ALTERNATIVES TO RECRUITING
1. Subcontracting – is the practice of assigning, or outsourcing. Part of the obligations and tasks
under a contract to another party known as a subcontractor.
2. Overtime - is the amount of time someone works beyond normal working hours. The term is also
used for the pay received for this time.
3. Temporary help
 4. Employee leasing - is a contractual arrangement in which the leasing company, also known as a
professional employer organization (PEO), is the official employer. Employment responsibilities are
typically shared between the leasing company and the business owner

o The first interview is preliminary and its purpose is to eliminate those applicants who are clearly
unqualified
o The applicant form is an important tool in the selection and hiring procedures as it gives vital
information about the applicant which are relevant to the job for which he has applied
 As a guide when interviewing the applicant
 As a basis of eliminating applicants with unfavorable personal data
 For matching the qualification of the applicant
 For checking on the applicant’s school records, references and former employers
 As part of the employee’s permanent record for communicating with the employee or his
family
 As the applicants proceed from one step to another, some more may be eliminated in the
process
 PSYCHOLOGICAL TESTS that are used in business and industries may be classified into:

1. Intelligence, mental ability or alertness tests

2. Aptitude tests
3. Achievement tests
4. Interest tests
5. Tests on personality or temperament
6. Dexterity tests

Among the employment tests often used in choosing applicant are:

A. Mental alertness tests

- also known as intelligence test, verbal reasoning tests and personal tests
- they are widely use in personnel selection
- they measure the person’s ability
- they also indicate ability to visualize relationships of objects or space, to think ahead or to judge
accurately
B. Clerical aptitude tests
- this measure the individual speed and accuracy in dealing with similarities and clerical
relationships
C. Shop arithmetic tests
- measure how well an individual can work out mathematical problems that come up frequently in
the shop
D. Mechanical aptitude tests
- Measure mechanical abilities or skills, either natural or acquired.
E. Space relation tests
- measure the ability to visualized a constructed object from a picture or a pattern
F. Proficiency, trade or achievement tests
- measures the individual’s proficiency on the job or trade in which he has had prior experience or
in which he is actually engaged at the moment
- measure job skill through work- sample tests
G. Vocational interest tests
- tests designed to discover the patterns of the employee interest a thus suggest what type of work
may be satisfying to the individual
H. Dexterity and manipulation tests
- these are given to applicants for jobs requiring manual skills, specially the use of fingers
I. Personal tests
- used in measuring personality characteristics which are considered to be the basis of success in
the job
- their purpose is to measure the emotional maturity of the individual

2 types:

a. Personal inventories
- originally designed for use in personal and vocational counselling
b. Projective tests
- involves the use of projective techniques
A test is valid if he can predict the success of failure of a person in a job
A test is reliable if each time said test is used on the same individual, the same or nearly the same
appraisal result occur to appear

Types of interview
1. Directive interview- this ask for specific information the questions give more emphasis is on the
habit and character traits of the person
 this type has the advantage of providing uniform procedure for all interviewers, is time saving for
the interviewer, and reduces the interviewer’s bias by the use of printed questions
Its disadvantages, however, are the constant note- taking which may disturb the applicant and
made him cautious in responding to the questions, the questioning is stereotyped so it loses
flexibility spontaneity; the interviewer pays more attention to the question rather than to the
interviewee
2. Non directive interview- are broad open-ended, and require a narrative
3. Group interview- this is conducted by panel or committee of three or five interviewers sitting as
a panel
4. Team method- a team of three interviewers may interview an applicant separately and then
compare notes afterwards
The interviewers take note of the following:

Emotional maturity
Dependability
Self –confidence
Attitudes toward jobs
Creativeness
Attitude towards other person
Value system
Critical attitude

In the selection of the right employee for the job, the following are some useful tips:

1. Age
2. Education
3. Experience
4. Appearance
5. Health
Final evaluation of the applicant:

“Can do” traits

“Will do” traits
Potential abilities
Danger signal
C. Placement
 The determination of the specific branch, department, division, section, or unit where the
individual is to be assigned for work

Factors in determining work assignment

1. Requisitioning office
2. Branch
3. Department, division, unit, section
 The job performance rating from should include the extent to which the worker has been
currently placed.

Lesson 5
Training Process
The following steps are integral instructional processes:
1. Conducting needs assessment
a. organizational analysis
b. person analysis
c. task analysis
2. Ensuring employee’s readiness for training
a. attitude and motivation
b. basic skills
3. Creating the learning environment
a. Identification of training objectives and training outcomes
b. meaningful materials
c. practice
d. feedback
e. observation of others
f. administering and coordinating programs
4. Ensuring transfer of training
a. Self-management strategies
b. Peer and manager support
5. Selecting training methods
a. Presentational methods
b. Hands-on methods
c. Group methods
6. Evaluating training programs
a. Identification of training outcome and evaluation designs
b. Cost-benefit analysis

The success of any training program can be gauged by the amount of learning that occurred and is
transferred to the job. Training and learning will take place through the informal work groups,
whether an organization has a coordinated effort or not, because employees learn from other
employees. While this may be true to a certain extent, a well-designed training program can give
better results because what may be learned may not be the best for the organization.
 The following steps are integral instructional processes:
1. Assessment Phase
Planners determine the need for training and specify the training objectives and the training efforts.
a. Organizational Analysis – the specific source of information and operational measures or an
organizational level needs analysis, which include the following:
– a. Grievances
– b. Accident record
– c. Observations
– d. Exit interview
• e. Customers’ complaints
• f. Equipment utilization and breakdown
• g. Material wastage, scraps, and quality control data
• h. Training committee, observation and need assessment data

b. Task Analysis - the job description and job specifications provide information on the performance
expected and the skills necessary for employee to accomplish the required work.
• - changes in the work environment due to the introduction of new technology or
machinery require changes in the task environments of the position

c. Individual Analysis – the use of performance appraisal data in making this individual analysis is the
most common approach.
• - a performance review reveals the employees’ inadequacy to perform certain types of
task and this will reveal what necessary training is needed to correct the weaknesses. An employee’s
potential may mean further training to assume a higher position in the future.

2. Employee Readiness for Training

• The employee must set a positive tone for training. That attitude towards training
must be cultivated and made an integral requirement before the employee sets foot in the training
room.
• A positive attitude is the desire of the trainee to learn the content of the training
program.
• Motivation is related to knowledge gain, behavior change, or skill acquisition in the
training.
• It is the role of the manager and the supervisor to assure that the employee has the
highest degree of learning before he is sent to the program.

The following factors influence the motivation to learn:

• a. self-efficacy
• – it is the employees belief that he can successfully learn the content of the training. The
employee must understand that the training is for his advantage and learning gain could be an asset for
future advancement.

• b. Understanding the benefits or consequences of training

• - the employee must understand that the training is related to his job, personal and career
benefits as it may include processes or procedures to make his work easier and is needed due to change in
work technology.
• c. Awareness of Training Needs, Career Interests and Goals
• - The employee must be given the choice of what training program he would line to
attend.
• - This should be related to his needs, career interest and personal goals in the organization
as discussed with his immediate superior.
• d. Basic Skills
• - This refers to the degree of the employee’s desire to learn the cognitive ability, reading
and writing skills, and other technology changes necessary in the work environment.

3. The Learning Environment

• Learning involves a permanent change in behavior. For employees to acquire knowledge
and skills in the training program and apply the information in their job, the training program needs to
include specific learning principles.
a. Employees need to know why they should learn.
– must understand why they have to attend the training program
– objective and purpose must be made clear to the employees
b. Employees need to use their own experiences as bases for learning
- training could be meaningful if it is linked to their current job experiences and tasks.
- the lessons should be presented on the level of employees’ understanding.
c. Employees need to have the opportunity to practice
• - The opportunity to practice the learning should be provided in the program.
• - Practice makes perfect, as the saying goes.
d. Employees need feedback
- The employees need to know how they are meeting the training objectives.
- Feedback should focus on specific behavior and should be immediately communicated to the employee.
e. Employees learn by observing and interacting with others
• - Community of practice refers to a group of employees who work together and learn
from each other and develop a common understanding on how to get the work done.
f. Employees need training programs to be properly coordinated and arranged.
• - Coordination is the most important aspect of training administration.
• - It means coordinating activities before, during and after the program.
 Analyzing Training Needs
• The immediate and specific needs of a company are determining factors in the selection
of the training courses and materials.
• Standards as to the amount of training that should be provided for each type of job may
not be readily established, as many other factors must be considered, such as the liability and experience
of the learner and the complexity of the things to be learned.
• The personnel manager, with the cooperation of the line supervisors, is in the best
position to establish what and how much training is needed.
The need for training is usually indicated in the following instances:
• When required skill is not possessed by anyone in the work force;
• When an employee’s performance is below standard, but he has the potential to improve
his productivity;
• When morale or production is low;
• When there is a fast turnover of personnel;
• When the rate of absenteeism or dissatisfaction mounts;
• When supervision is lax;
• When new technology is introduced.

5. Selecting the Training Methods

• Use of Technology
• - New technology allows trainees to see, feel, and hear how equipment and other persons
respond to their behavior.
• - Multi-media - less costly

a. Presentation Method
 Passive receipt of information – includes traditional instruction, distance learning, and audio-
visual techniques
 - ideal for presenting new facts, information, different philosophies, and alternative solutions or
processes.
b. Hands-on Training
 - require on-the-job training, simulation, business games, case studies, behavior modeling,
interactive videos, and web-based training
c. Group Building Method
 Helps trainees share ideas and experiences, build group or team identity, understand the
dynamics of interpersonal relationships, and get to know their own strengths and weaknesses and those of
their co-workers.

6. Evaluating the Training Program

• Evaluation of training compares the post-training results to the objectives expected by the
management, trainers, and the trainees.
• Training is both time-consuming and costly and therefore evaluation must be done.
• Training assessment will measure the benefits derived from the activity.
• What the employees learn is directly related to what they earn; hence, evaluation of
training is put into practice.
• One way to evaluate training is to examine the costs associated with the training and the
benefits received through cost-benefit analysis.
• The best way is to measure the value of the output and after the training. Any increase
represents the benefits resulting from training.

a. Learning
 Represents the level of how well the trainees have learned facts, ideas, concepts, theories, and
attitudes.
 Tests on training materials are commonly used for evaluating learning and can be given before
and after training to compare results.
b. behavior
 There must be a change in the work attitude and behavior of the trainee after the training.
 Observable behavior must be measured in terms of work improvement, increased work output,
and work effectiveness
c. Results
 Employers evaluate results by measuring the effects of training on the achievement of
organizational objectives. Because results such as productivity, turnover, quality, time, sales volume, and
cost are relatively concrete, comparing records before and after the training can do the evaluation.

Criteria for Evaluation of Training

• Five steps to a meaningful evaluation (suggested by John M. Kelly)
• 1. Determine what to measure.
– Decide before you begin the training what you want to change.
– The number of customer complaints?
– The rate of scrap?
– The number of employee grievances?
– The number of quality defects?
• 2. Establish a baseline.
– Make sure you know the level of performance before training begins.
– This allows you to make a legitimate comparison to determine training effect.
• 3. Isolate variables
– One variable is the Hawthorn Effect, named after a General Electric plant that was
studies in a landmark performance experiment several years ago.
– The effect: Employees improved their performance simply because of the
attention of the research study – not because of any changes in their working conditions.

4. Measure Attitudes

• This goes back to the problem of measuring initial reaction, but it is valuable in the
overall evaluation.
• Did the trainees like the training?
• Did they think it was valuable?
• Often, they can provide valuable feedback and suggestions for improving
training techniques.
5. Measure Performance

• Go back to your base line and see what the results of the training are in terms of the
criteria you have established.
• Track performance over a long period of time so you can be sure the improvement is
established.

HUMAN RESOURCES DEVELOPMENT

Career Management and Development

• Jackie recently was hired in a marketing position for a toy company called Cheap-O-Fun
Games. She was very excited about her new position and planned on moving up the corporate ladder to
CEO. According to the human resource department at the toy company, her ambitious goals were
achievable. They were very supportive of developing their own employees' careers.
•  
• The company has established career management and development systems, where they
offer programs, counseling, planning and workshops to help employees manage their careers. Managers,
employees and organizations can benefit from having a sophisticated career management and
development program in place.
 Development
• refers to formal education, job experiences, relationships, and assessments of personality
and abilities that employees prepare for the future.
• Growing capabilities that go beyond those required by the current job.
• Represents the employee’s ability to handle a variety of assignments.
• Helps the employee prepare them for other positions and increase their ability to move
into other jobs that may be available in the future.
• Prepares also the employee for changes in current jobs due to changes in technology,
work design, and customers or new products, or new type of market.

Planning and Choosing a Development Approach

• While training considers analysis an important component of any training program,
development needs analysis because it is necessary to identify strengths and weaknesses of those that will
be given these organizational interventions.
• Assessment involves collecting information and providing feedback on employees’
behavior, communication style, or skills, or leadership potentials as preparation for formal induction to
the development program.
The following processes are used in the assessment:
• a. Assessment Centers
• - employees are sent to assessment centers to take examinations covering personality
tests, communication skills, personal inventory assessments, benchmarking, and other examinations.
• - the center is manned by a group of teams that assesses the individual potential for
leadership and other capabilities or qualities that may be used by the organization in its future operations.
• b. Psychological Testing
• - pencil and paper tests have been used for years to determine employees’ development
potentials and needs.
• - intelligence tests, verbal and mathematical reasoning tests can furnish useful
information about factors of motivation, reasoning, abilities, leadership styles, interpersonal response
traits, and job preferences.
• c. Performance Appraisal
• - performance appraisal that measures the employees’ potential when done properly
could be a good source of development information.
• - observable and measurable output, attitude and behavior, data on productivity,
employee relations, job knowledge, and leadership behavior are important sources of employee
information. This are usually available in the personnel file.

Succession Planning
• - Planning in advance for the orderly succession and development needs of the successor
is important to avoid a host of potential problems.
• - Replacement charts can be a part of the development planning process by specifying the
nature of development each employee needs to be prepared for the identified position.
• - Its purpose is to ensure that the right individuals are available at the right time and that
they have sufficient experience to handle the target jobs.

Human Resource Development Approaches

• In-House or on Company Site

• - The planned activities that could be developed within the company or while the
employee is at work are those activities that will enhance the employees’ potential to assume other jobs
that the company needs in its operation.

• - It is imperative that managers and supervisors plan and coordinate development efforts
so that the desired developments actually occur.

The following are the In-House Approaches

• 1. Management Coaching

• - The immediate supervisor coaches the subordinate employee in performing certain

functions that are necessary for his advancements.

• - It combines observation and suggestions.

• - This is best when it involves good relationships.

• 2. Committee Assignments

• - Assigning promising employees to important committees can give the employees a

broadening exercise and can help them to understand the personalities, issues, and processes governing
the organization.

• 3. Job Rotation

• - This is the process of shifting employees from one job to another.

• - A substantial managerial time is needed when trainees change positions.

• - The trainees must be acquainted with different people and techniques in each new unit.

• 4. Job Enlargement

• - refers to adding challenges or new responsibilities to the employee’s current jobs.

• - This could include such activities as special projects assignments, switching roles
within a work team or research activities.
• 5. Mentoring

• - Employees can also develop skills and increase their knowledge about the company and
its operations by interacting with more experienced organization members.

• - It helps new members bring together successful senior employees with less experienced
members.

Off-site or Outside Development Interventions

• - This technique could be effective because the individuals are given the opportunity to
get away from the job and concentrate solely on what is to be learned.

• - These interventions are usually held outside at the company’s expense and will serve as
a break from the office monotony.

The following are some of the off-site development programs:

• 1. Formal Education

• - The company sends the employee to formal seminars, workshops and other training
programs offered by training consultants and agencies.

• - Some companies send their employees to take advance studies in the graduate programs
in exclusive schools or take courses in foreign countries.

• - The condition is usually that an employee is tied to a contract to serve the company for
a number or years for every year of outside training.

• 2. Team Building

• - These organizational interventions are usually conducted away from work for about 2 to
4 days.

• – The employees are organized into teams and solve common problems related to
relationships.

• - The focus is on human relation issues and poor team-work.

• 3. Case Studies

• - This is a classroom type of training technique that provides a medium through the
application of management behavior concepts and analyses.

• - Cases are either through the use of multi-media or case problems that are developed
similar to those existing in the work environment.
• Group case analysis and presentations are made and discussions facilitate the learning
experience.

• 4. Role Playing

• - It is a developmental technique requiring the trainee to assume a role in a given

situation and act the behavior associated with it.

• - The facilitators provide the script and the group evaluate the performance.

• The other participants provide comments and suggestions after each performance.

• 5. Simulations

• - These are business games developed by human resource experts that require the
participants to analyze a situation and decide the best course of action based on the given data.

Lesson 6: Performance Management Systems

Performance
 Degree of accomplishment of the tasks that make-up an employee’s job
Job Performance
 net effect of an employee’s effort as modified by abilities and role perceptions
Performance Appraisal
 Process of evaluating and communicating to an employee how he or she is performing the job
and establishing a plan for improvement.
Determinants of Performance
1. Effort – the amount of energy (physical/mental) an individual uses in performing a task
2. Abilities – are personal characteristics used in performing a job
3. Role perceptions – the direction in which individuals believe they should channel their effort on
their jobs.
Responsibilities of the HRD
1. Design the performance management system and select the methods and forms to be used for
appraising employees.
2. Train managers in conducting performance appraisals.
3. Maintain a reporting system to ensure that appraisals are conducted on a timely basis.
4. Maintain performance appraisal records for individual employees.
Responsibilities of the Manager
1. Evaluate the performance of employees.
2. Complete the forms used in appraising employees and return them to the human resource
department.
3. Review appraisals with employees.
4. Establish a plan for improvement with employees.
Uses of Performance Appraisal
1. For making administrative decisions relating to promotions, firings, layoffs, and merit pay
increases.
2. Provide needed input for determining both individual and organizational training and
development needs.
3. To encourage performance improvement.
4. Information gathered through performance appraisal are used as:
a. Input to the validation of selection procedures
b. Input to human resource planning
Performance Appraisal Methods
1. Management-by-objectives – consists of establishing clear and precisely defined statement of
objectives for the work to be done by an employee, establishing action plan, implementing the plan, measuring,
taking corrective actions and establishing new objectives in the future.
2. Multi-rater Assessment or 360 degree feedback – managers, peers, customers, suppliers, or
colleagues are asked to complete questionnaires on the employee being assessed.
3. Graphic Rating Scale – requires the rater to indicate on a scale where the employee rates on
factors such as quantity of work, dependability, job knowledge, and cooperativeness.
4. Behaviorally Anchored Rating Scale – determines an employees’ level of performance based
on whether or not certain specifically described behaviors are present.
5. Critical-Incident Appraisal – the rater keeps a written record of incidents that illustrate both
positive and negative employee behaviors.
6. Essay Appraisal – rater prepares a written statement describing an employee’s strengths,
weaknesses, and past performance.
7. Checklist – rater answers with a yes or no to a series of questions about the behavior of the
employee being rated.
8. Forced-choice Rating – rater ranks a set of statements describing how an employee carries out
the duties and responsibilities of the job.
9. Ranking Method – the performance of the employee is ranked relative to the performance of
others.
10. Work Standard Approach – involves setting a standard or an expected level of output and then
comparing each employee’s level to the standard.
Potential Errors in Performance Appraisal
1. Central Tendency – the tendency of a manager to rate most employees’ performance near the
middle of the performance scale.
2. Recency – the tendency of the manager to evaluate employees on work performed most recently -
one or two months prior to evaluation.
3. Halo Effect – occurs when a rater allows a single prominent characteristic of an employee to
influence his or her judgment on each separate item in the performance appraisal.
Employee Movement
• 1. Transfer
 refers to the shifting of an employee from one position to another without increasing his
responsibilities, duties or pay
 necessary because of personal differences of employees or because of personality conflicts
between workers and supervisors
 also rotated from position to position as a training device
 Four Types of Employee Transfers
a. Production transfer
– This occurs when there is a shortage of employees in one department and a surplus in
another. Employees who are found to be excesses in the latter department will have to be transferred to the
department where there is a shortage.
b. Replacement transfer
– This is replacing or relieving an old employee from a heavy workload.
c. Remedial transfer
– This is to rectify a faulty selection in recruitment or placement
d. Versatility transfer
– This provides the opportunity for an employee to increase his/her skills by transferring
him/her from one department to another through job rotation. In most instances, this practice prepares the
individual for promotion.
Transfer have several purposes:
 To fill temporary job vacancies
 To place employees who are not performing well in other jobs
 To train an employee for a higher job

2. Promotion

 refers to the shifting of an employee to a new position to which both his status and
responsibilities are increased.
 Advantageous to the firm as well as the employee
 Serves as the recognition of superior performance
 promotion decisions can be made either on the basis of seniority or through merit based on
performance
 In Filipino culture, this is tainted with favoritism.

Seniority – refers to one’s length of service in the organization

1. Straight seniority system
 the only factor considered in promotion is seniority. All employees have the chance to
get promoted if they have worked with the organization long enough.
 Favored by unions
 The length of service alone determine employment preferences
2. Qualified seniority
 Favored by management
 The length of service is just one of a number of specified factors used to determine
preferences in employment opportunities
 Merit – is one’s value in terms of performance
- Uses qualifications and performance as the basis for promotion
- This is ideal because good performance is rewarded.
• 3. Separation
 May either be temporary of permanent, voluntary or involuntary
 Lay-off is a temporary and involuntary, usually traceable to a negative business condition.
 A discharge is a permanent separation of an employee.

Resignation is the voluntary and permanent separation of an employee due to low morale, low salary, etc. in
some instance.
Forced resignation is used as a good substitute for discharge.
Retirement can either be voluntary or involuntary. It is voluntary if one retires upon reaching the age of 65.
Four sub-types:
a. Termination with just cause – due to employees fault
b. Termination with authorized cause or layoff – it is the company’s decision to lay off
employees on any of the following grounds:
1. New technology has been introduced and there are positions which have been evaluated
as redundant. These jobs only duplicate the functions of the newly-installed technology.
2. A department or division will be closed permanently as a labor-saving measure – the task
of the office will be taken over by another department
3. The company will merge with another company.
c. Resignation
d. Retirement
The basic reasons why employees leave business to take positions elsewhere are:
a. Inadequate pay
b. Lack of opportunity for advancement
c. Lack of consideration or appreciation by the employer
d. Internal policies
e. Too much overtime
f. Favoritism
• 4. Demotion
 refers to an employee’s movement to a lower level or position
 inefficiency/low performance
 to give chance to work in the firm, but in a lower position

Lesson 7: Career Managementt and Employee Morale

Questions to Ponder:
1. Why is career management important in an organization?
2. What is the role of a good career management program in employee motivation?
3. What is the role of a good career planning in the formation of an employee’s career path?
4. How can HRD develop employee morale? What measures influence the employee to stay in the
employment of the company?
Career
 an individual’s pattern of activities during his/her entire work life.
 It is a sequence of positions occupied by a person during his/her lifetime.
Career Development
 an ongoing, formalized effort by an organization’s human resources in light of both the employees’ and the
organization’s needs
Career Management
  concerned with ensuring that the organization has a steady flow of talent and can achieve its goals, mainly
by opening up opportunities to employees that will develop their abilities and advance their careers

Organization’s Point of View

Three Objectives of Career Development/ Management:
1. To meet the immediate and future human resource needs of the organization on a timely basis.
2. To better inform the organization and the individual about potential career paths within the
organization.
3. To utilize existing human resource programs to the fullest by integrating the activities that select,
assign, develop, and manage individual careers with the organization’s plans.
Who is Responsible for Career Development/Management?
 Successful career development/management results from the joint effort by the organization, the
employee, and the immediate supervisor/manager.
 The organization provides the structure, the employee does the planning, and the immediate manager
provide the guidance and encouragement.
A. Career Planning
 process by which an individual formulates career goals and develops a plan for reaching these goals.
 defining the career path of people in the organization.
 the HR develops individual career development programs and arranges career counseling and mentoring
of personnel.
Implementing Career Development
Basic Steps:
1. Individual assessment (abilities, interests, career goals)
2. Organizational assessment
3. Communication of career options and opportunities within the organization.
4. Career counseling to set realistic goals and plans for their accomplishment.
B. Career Pathing
 a technique that addresses the specifics of progressing from one job to another in an organization.
 Career Self-management – the ability to keep up with the changes that occur within the organization and
the industry and to prepare for the future.
Basic Steps for Career Pathing
1. Determine or reconfirm the abilities and end behaviors of the target job.
2. Secure employee background data and review them for accuracy and completeness.
3. Undertake a needs analysis comparison that jointly views the individual and the targeted job.
4. Reconcile employee career desires, developmental needs, and targeted job requirements with
those of organizational career management.
5. Develop individual training work and educational needs using time-activity orientation.
6. Blueprint career path activities.
C. Career Counseling
 the process of helping employees develop their careers.
 help employees make career choices and develop strategies in dealing with problems and challenges in
their careers.
 the process of helping employees develop their careers.
 help employees make career choices and develop strategies in dealing with problems and challenges in
their careers.
D. Succession Planning
 It is the structured approach identifying, developing, and retaining employees to prepare them to
fill key areas or positions that are critical to an organization’s long-term goals.

Dealing with Career Plateaus

 Career Plateau
 The point in an individual’s career where the likelihood of an additional promotion is very low.
 Plateau employees are those who “reach their promotional ceiling long before they retire.”

Career Categories
1. Learners – individuals with high potential for advancement who are performing below standard
2. Stars – individuals presently doing outstanding work and having a full potential for continued
advancement; these people are on fast-tract career paths
3. Solid Citizens – individuals whose present performance is satisfactory but whose chance for
future advancement is small; these people make up the bulk of the employees in most
organizations
4. Deadwood – individuals whose present performance has fallen to an unsatisfactory level; they
have little potential for advancement
Rehabilitating Plateaued Employees
1. Provide alternate means of recognition
 Working on a task force or other special assignments, participating in brainstorming
sessions, etc.
2. Develop new ways to make their current jobs more satisfying
 Relating employees’ performance to total organizational goals and creating competition
in the job.
3. Effect revitalization through reassignment
 Implement systematic job switching to positions at the same level
4. Utilize reality-based self-development programs
 Assign employees to development programs that can help them perform better in their
present job
5. Change managerial attitudes toward plateaued employees
Outplacement
 refers to a benefit an employer provides to help an employee terminate employment with the
organization and get a job somewhere else
Some Online Career Development Sources Available Today
 Information about employment trends and job opportunities
 Self-assessment tools
 Links to online employment services
 Individual online job counseling
Employee Morale
Morale could be measured in terms of team spirit, loyalty and employee’s goodwill. It is the
mental attitude that makes the employee perform his work willingly and enthusiastically. The
development of morale rests on effective supervision and management of human resources, as
they are in direct contact with the employees concerned.
Factors That Influence The Development Of Morale
1. Employee Factor – attitude and values are the results of his kind of education, social
environment and economic status.
2. Management Practices – the quality of supervision and management practices are the making of
the front managers and supervisors.
3. Environment Communication – open communication between management and employees is
basic in all relationships.
4. Social and Environmental Factors – Mental and emotional conditions are influenced by the
social forces to which the employee is exposed daily.
Indicative of Good Performance
1. Personal accomplishment
2. Praise of good work
3. Getting along with co-workers
4. Getting credit for good ideas implemented by managers
5. Having a capable supervisor
6. Having challenging work and responsibilities
7. Being kept informed
8. Participating in decision-making
9. Company location and availability of transport
10. Knowing the parameters of what is expected of them.

Chapter8
Job Evaluation
 systematic determination of the value of each job in relation to other jobs in the organization

Potential Uses of Job Evaluation

 Provide a basis for a simpler, more rational wage structure
 Provide an agreed-on means of classifying new or changed jobs
 Provide a means of comparing jobs and pay rates with those of other organizations
 Provide a base for employee performance measurements
 Reduce pay grievances by reducing their scope and providing an agreed-on means of resolving
disputes
 Provide incentives for employees to strive for higher-level jobs
 Provide information for wage negotiations
 Provide data on job relationships for use in internal and external selection, human resource
planning, career management and other personnel functions.

Methods of Job Evaluation

1. Ranking Method – involves the arrangement of jobs in a simple rank order from highest to
lowest.
2. Classification Method or Job Grading Method- various jobs are categorized under various
classes or grades. A particular grade is assigned a certain degree of knowledge, training or the
type of decision-making exercised by a jobholder. This is used by the CSC.
3. Point method- jobs are broken down into characteristics or factors like skill, responsibility,
complexity and decision-making. In turn, the factors are also broken down into sub-factors and
expressed in degrees or levels. Then these factors are assigned weights according to importance.
Points are indicated in each degree or level depending on the difficulty of performing the factor.
After the total scores are determined, a system of grades may be established and later the pay
structure.
4. Factor comparison method- compares all jobs on a factor-by-factor basis. Instead of ranking
jobs as a whole, they are ranked one factor at a time. As a result, the jobs are compared and
ranked as many times as there are factors considered. Point values are assigned to each factor
ranking made. The sum of all the points pertaining to the jobs is determined and the overall ranks
of all the jobs are established. The peso value of the individual factor ranks may be established.
Compensable factors
 characteristics of jobs that are deemed important by the organization to the extent that it is willing
to pay for them.
 the degree to which a specific job possesses these compensable factors determines its relative
worth.
 Job sub-factor
 Detailed breakdown of a single compensable factor of a job
 Degree statements
 Written statements used as a part of the point method of job evaluation to further break
down job sub-factors.
New Approaches to the Base Wage/Salary Structure
1. Skill-based pay
Systems that compensate employees for the skills they bring to the job
2. Competency-based pay
Approach used to extend the idea of skill-based pay to professionals and managers

3. Broadbanding
A base-pay technique that reduces many different salary categories to several broad salary bands.
Clustering of jobs into wide categories or groups of jobs.

THE ORGANIZATIONAL REWARD SYSTEM

Organizational Reward System

 Organizational system concerned with the selection of the types of rewards to be used by the
organization.

Organizational rewards
 Rewards that result from employment with the organization
 Includes all types of rewards, both intrinsic and extrinsic

Intrinsic rewards
 Rewards internal to the individual and normally derived from involvement in certain activities or
tasks

Extrinsic rewards
 Rewards that are controlled and distributed directly by the organization and are of tangible nature
Intrinsic versus Extrinsic Rewards

Intrinsic Rewards Extrinsic Rewards

Achievement Formal recognition
Feelings of accomplishment Fringe benefits
Informal organization Incentive payments
Job satisfaction Pay
Personal growth Promotion
Status Social relationships
Work environment

Job Satisfaction and Rewards

Job satisfaction
 An employee’s general attitude toward the job

Note: The organizational reward system often has a significant impact on the level of employee job
satisfaction. In addition to their direct impact, the manner in which the extrinsic rewards are dispersed can
affect the intrinsic rewards (and satisfaction) of the recipients. For example, if everyone receives an
across-the-board pay increase of 5 percent, it is hard to derive any feeling of accomplishment from the
rewards. However, if pay raises are related directly to performance, an employee who receives a healthy
pay increase will more than likely also experience feelings of accomplished and satisfaction.

The Five Major Components of Job Satisfaction are:

1. Attitude toward the work group

2. General working condition
3. Attitude toward the company
4. Monetary benefits
5. Attitude toward management

COMPENSATING EMPLOYEES

Compensation
 All the extrinsic rewards that employees receive in exchange for their work
 Composed of the base wage or salary, any incentives or bonuses and any benefits.
Pay
 Refers only to the actual dollars/pesos employees receive in exchange for their work.

Types of Compensation
Base wage or salary
 Hourly, weekly, or monthly pay that employees receive for their work
Incentives
 Rewards offered in addition to the base wage or salary and usually directly related to performance
 Given to employees for performing beyond the standard requirements.
Benefits
 Rewards employees receive as a result of their employment and position with the organization

COMPONENTS OF EMPLOYEE COMPENSATION

 Base Wage or Salary Incentive Benefits
Hourly wage Bonus Paid vacation
Weekly , monthly or annual salary Commissions Health insurance
Overtime pay Profit sharing Life insurance
Piece rate plans Retirement pension

Factors Influencing Employee Compensation

A. External factors
 Labor market conditions
 Area wage rates
 Cost of living
 Collective bargaining

B. Internal Factors
 Employer’s compensation policy
 Employee’s relative worth
 Employer’s ability to pay

Pay equity-concerns whether employees believe they are being fairly paid

Dimensions of Pay equity

1. Internal equity-addresses what an employee is being paid for doing a job compared to what
other employees in the same organization are being paid to do their jobs.
2. External equity-addresses what employees in an organization are being paid compared to
employees in other organizations performing similar jobs.
3. Individual equity-addresses the rewarding of individual contributions; is very closely related s to
the pay-for-performance question.
4. Organizational equity-addresses how profits are divided up with the organization.

Benefits-
-these rewards are given to an employee or group of employees for maintaining membership in the
organizations.
-It is the payment given without regards to how the jobs are done.

The Differences Between the Various Forms of Compensation

Type of Purpose Intended recipient
Compensation
base salary payment for doing a job every employee in the organization

Incentives Payment for doing a job well A few good performers

done
Benefits Payment for staying in the job Those who are mandated by law and
those who elected to receive optional
benefit
Benefits and motivation
 It helps in the preparation of the groundwork for achieving organizational objectives.
 It provides a reason for qualified individuals to apply for work with the company, for current
employees to remain employed and to improve their performance.
Reasons for granting benefits
1. To keep the organization competitive and it is also used as a means to retain employees.
2. To motivate employees to perform.
3. To keep a union out.
4. To comply with legal requirements.
5. To keep turnover costs low.
Types of employee benefits
• 1. Legally Required Benefits
– This type of benefits is mandated by law due to representations made with the
government by various groups. The mandated benefits are as follows:
– Social Security Benefits
 The Social Security System (SSS) was organized to specifically serve the social
security needs of employees in private firms. The protection covers hazards of
disability, sickness, maternity, old age, death, and other contingencies resulting
in loss of income or financial burden.

-Government Service Insurance System (GSIS)

 It is a government institution organized to address the social security needs of
government employees.
 The SSS and GSIS extend financial assistance to members in the form of salary,
housing, educational and other kinds of loans.
 The cost of social security benefits is borne by the employee and the employer.
Monthly premiums are deducted for the payroll and these are remitted to the SSS
and GSIS with a counterpart amount from the employer.
• Employee’s Compensation
– It convers expenses incurred as a result of work-related injury, sickness, disability or
death. The premium remitted to the Employee’s Compensation Commission is borne
solely by the employer.

• Thirteenth Month Pay

– It is designed to augment the annual income of the individual and is equivalent to one
month’s pay of the employee. Twelve months of continuous service entitles the
employee to receive such amount usually at the end of the year.
• Paid Vacation, Paid Sick Leave, and Paid Holidays
– These are days when employees are still paid even if they do not report for work.
• PAG-IBIG Fund Benefit
– It is managed by government and extends housing and other types of loans to members.
The employer matches the employee’s contribution. The combined amount earns
dividends on an annual basis and the entire amount plus the earnings are collected by the
employee upon retirement.
• PhilHealth (formerly MEDICARE)
 – It provides medical insurance benefits to employees whether in the government or private
firms. On a limited basis, the program covers expenses related medical expenses of the
member and his or her dependents.
• Paternity Leave
– It provides relief to families with a newborn child. All married male employees are
entitled to seven (7) days leave with full pay for each of the first four deliveries of his
legitimate spouse.

2. Voluntary Benefits
 These are benefits that are voluntary given by the companies in addition to those which are
legally mandated.

The following are some of the voluntary benefits

• Group Life Insurance
– Private insurers are able to reduce their rates and provide additional benefits if a company
insure all its employees as a group. The immediate effect is lower premiums and
acceptance by the insurer regardless of health or physical condition of the employee.
• Health Insurance
– Health care companies generally provide 24-hour medical services, preventive health
care, in-patient care, outpatient care and dental care.
• Pension Plans
– It provides additional pension benefits to workers who retire from the service. The
employees may or may not be required to share in the cost of the pension plan.
3. Employee Services
 the purpose is to improve the work life of the employees which make it easy for them to be
productive and loyal to the organization.
The following are the various types of employee services:
• Education Programs
– It is used when some employees feel the need for education although costly these will be
for college and graduate course.
• Pre-retirement programs
– It provides a pre-retirement planning program for the employees. Various topics related
to the retirement are covered in the program.
• Psychological aspects, like developing personal interest and activities.
• Housing, this also considers transportation, living costs and proximity to medical care.
• Health, nutrition and exercise.
• Financial planning, insurance and investments.
• Estate planning
• Collecting benefits from:
– Company pension plans
– Pension plans purchased by the employee from other companies
– Social Security
 The transition to retirement is one aspect where the employer may help employees who are
considering retirement.
 Two options are available and they consist of:
 – Trial retirement
– Allowing the employee to gradually reduce the number of says he reports for work each
week.
• Company Sponsored Social Recreational Events
– Social functions that are organized for employees and their families.
– Employees may participate on a voluntary basis
• Counseling Services
– It is a way of helping the employees on their personal problems
• Credit Unions
– It helps employees to improve their financial capability
• Free Uniform
– Clothing allowance for employees
• Housing and Moving Expenses
– It helps employees find living quarters, pay for their travel and living expenses in cases
like transfers and the like
• Food Services
– It provides food services for employees for their convenience
• Company Paid Transportation and Parking
– This provision helps reduce tardiness and absences among employees

EMPLOYEE DISCIPLINE

 One of the most challenging areas in human resource management.

 Mismanaging it may force the organization to deal with more difficult problems like union
strikes, costly lawsuits, or demoralization.

Discipline
 may be defined as the condition in the organization where employees conduct
themselves in accordance with the organization’s rules and standard of acceptable
behavior.
 As treatment that punishes
 As orderly behavior in an organizational setting
 As training that molds and strengthens desirable conduct or correct undesirable conduct
and encourage development of self-control
Categories of Difficult/Problem Employee

1. Ineffective Employee with Unsatisfactory Performance

Employees whose performance is due to factors directly to work are theoretically the easiest
to work with and to adjust. Ineffective performance may be the result of skill, job or
motivational climate factors. Each of these factors or causes ought to be carefully assessed.

2. Rule Violators
Some companies have general rules that are informally communicated to employees while
others have specific rules that prohibit such things as possession of deadly weapons, use of
alcohol or narcotics, abusive or threatening language, insubordination, sleeping on the job,
etc.
3. Illegal or Dishonest Acts
A serious disciplinary problem for all organizations concerns any form of illegal or dishonest
behavior such as theft, embezzlement, misuse of company facilities or property or falsifying
records. Even if an illegal act is not prosecuted, the employee committing the act is usually
discharged unless a company does not have sufficient evidence.

4. With Personal Problems

Employees are normally expected to handle personal problems on their own without letting
them interfere with work performance. Temporary difficulties due to family problems are not
uncommon. Falling in love, getting married, having children and getting divorce are
unsettling experiences that may affect performance on their job. Many large organizations
provide personal counseling services for their employees.

5. Substance Abuse
The most serious personal problems are alcoholism and drug abuse. These problems are not
temporary and are not solved by ignoring them or by assuming they will be corrected on their
own.

Approaches to Discipline

A. Hot Stove Rule by Douglas Mc Gregor

- This approach to discipline is discussed in terms of what happens when a person touches
a hot stove.
The consequences are:
a. A warning system - a good manager has, before any behavior has occurred,
communicated what the consequences are for the undesirable behavior.
b. An immediate burn – if discipline is required, it must occur immediately after the
undesirable act is observed. The person must see the connection between the act and
the discipline.
c. Consistency – there are no favorites – hot stove burn everyone alike. Any employee
who performs the same undesirable act will be disciplined similarly.
d. Impersonal – disciplinary action is directed against the act, not at the person. It is
meant to eliminate undesirable behaviors.

B. Progressive Discipline
- An approach in which sequence of penalties is administered, each one slightly more
severe than the previous one. The goal is to build a discipline program that progress from
less severe to more severe in terms of punishment. It is important in any disciplinary
system to formally record what the policy is and when and what action was taken.

The disciplinary process should follow a sequence of increasing severe penalties for
wrong doing. The process is called progressive discipline because the disciplinary action becomes
increasingly severe.

Progressive Discipline
1. Verbal Warning
- A simple comment by a supervisor to warn employees that certain acts are not applicable.
The purpose is to ensure that employee know what is expected of them and that what they
 are doing is wrong. This is frequently used for minor offenses such as infrequent
tardiness, discourtesy, and the like.

2. Verbal Reprimand
- The supervisor informs the employee that the situation is not acceptable and
improvement is required. Since the purpose is to correct the problem, the employee
should leave the discussion feeling encouraged and committed to improve. The
supervisor should make a written note of the conversation in case further discipline
becomes necessary.

3. Written Reprimand
- A written description of the problem and the disciplinary action. The supervisor prepares
a written record that summarizes what has been said and decided when the supervisor
discusses the problem with the employee. Supervisor and the employee concerned should
sign the reprimand. Employee should be warned about the consequences if he or she does
not change.

4. Suspension
- If an employee fails to respond to the written reprimand and persists in wrongdoing,
suspension is applied where an employee is not allowed to work for a period of time and
his compensation is reduced accordingly. The purpose is to demonstrate the seriousness
of the offense and to reinforce the idea that appropriate behavior is a prerequisite for
maintaining a job. The length of suspension should be considered in light of the
seriousness and type of offense.

5. Discharge/Dismissals
- Represents the final step in the disciplinary process. This should not be issued until all
facts have been gathered and carefully considered. Demotions and transfers are two other
alternatives for taking disciplinary actions and are usually recommended only for
problems of unsatisfactory performance.

Dismissals – the most drastic disciplinary step the company can take toward an employee. It in
that sufficient cause exists for it to be implemented. It should occur only after all reasonable steps
to rehabilitate or salvage the employee have failed.

Grounds for Dismissal

a. Unsatisfactory performance – persistent failure to perform assigned tasks or duties or to meet

prescribed standards of the job.
b. Misconduct/insubordination
c. Lack of qualifications for the job
d. Habitual neglect of duty
e. Changed requirements of the job

1. Positive Discipline
- The advocates of this approach view it as future oriented, as working with employees to
solve problems so that problems do not occur again. Employees’ mistakes are used to
help them learn how to change. The discussion focuses on the problem and how it can be
solved rather than on who is to blame and why.
 2. Negative Approach
- This approach emphasizes the punitive effects on undesirable behavior. The purpose is to
punish employees for mistakes and it is usually severe to remind others of the
consequences of wrong doing. The problem of this approach is that it motivates
employees to achieve only the minimum acceptable performance.

3. Preventive Approach
- A system of discipline that focuses on the early correction of employee misconduct, with
the employee taking total responsibility for correcting the problem.

4. Corrective Discipline
- Undertaken when a rule is violated or a standard is not met. In direct contrast with
preventive discipline, corrective discipline is aimed at discouraging further infractions of
rules.
Disciplinary Action Procedure

1. Providing a clear statement of the disciplinary problem

2. Gathering of related facts
3. Preparing a list of alternative penalties
4. Selecting the appropriate penalty
5. Implementing the selected penalty
6. Follow-up

Discipline and the Counseling Approach

Counseling is undertaken using the following approaches:

OCCURENCE ACTION PERSONS INVOLVED CONCERN

1st violation private discussion employee and supervisor

2nd violation further discussion employee and supervisor focus on correcting

causes of behavior

3rd violation counseling employee and immediate to determine causes

supervisor and higher of employee’s
supervisor malfunction

4th violation final counseling employee and warning for possible

superintendent termination

SAFETY AND HEALTH

Health
 Refers to that condition which indicates that as person is free of illness, injury, or mental and
emotional problems that impair normal human activity.

Safety
  Defined as freedom from danger or risk.
Who is responsible for health and safety?
 Although safety and health must be the concern of every employee, the responsibility is normally
with managers and supervisors.
 Health and Safety Specialist are hired whenever required.

Causes of accidents and illness in the workplace

Accidents and illness will happen depending on the three major groups which pertain to:
1. Nature of task
2. Working condition
-refer to the environment where the workers perform their jobs.
Accidents and illness may be caused by poor working conditions, which include:
1. Inappropriate design of the building
2. Machines that are incorrectly installed
3. Lack of protective gear
4. Fatigue as result of long work hours
5. Noise
6. Poor lightning
7. Daydreaming
8. Alcoholism
3. nature of the employees
-accidents repeaters (persons who have more accident than the average) may be classified as
either:
a. Impulsive and irresponsible people who are compelled towards accidents.
b. people with physiological deficiencies, such as poor reaction times and inadequate muscular
coordination.

PREVENTING ACCIDENTS
Safe work environment
 is an objective that must be attained if the organization is seeking improved productivity.
Accidents may be prevented with the adaptation of the strategies, which include the following:
1. Employee Selection -this may be done through the use of effective selection methods.
2. Employee Training –this requirement is especially applicable to newly hired employees who are
not yet familiar with their respective jobs and the immediate environment of their workplaces.
3. Safety Incentive
4. Safety Audit –is one undertaken to determine unsafe job behaviors aimed to prevent unsafe acts
on the part of the employees.
5. Accident Investigation –one of the means used in accident prevention is the determination of the
cause of accident, if one has occurred.
6. Safety Committee –this which involves workers in safety
-composed of workers of different levels and from a variety of departments.
The safety committee performs the following task:
a. Assist with inspection and accident investigations.
b. Conduct safety meetings
c. Answer workers’ questions about safety programs
d. Bring workers’ safety concerns to management is attention
e. Help develop safety incentive programs
f. Develop ideas to improve workplace safety.

PROTECTING EMPLOYEE HEALTH

Protecting the health of the employees is a concern as important as preventing accidents the health of
employees may be protected through:
1. Maintaining a healthy work environment.
2. Adaptation of the preventive approach to health maintenance.
3. Maintaining health services for employees.

The Management of Stress

Stress
 it is the strain a person experiences from the pressure of outside forces.
 is the result of an interaction between a person and the environment, in which the person believes
the situation to be overwhelming and dangerous to his or her well-being.

Types of Stress
1. Physiological
 When the effects of the stressor include chemical, neurological, or any general body
response.
2. Psychological
 When the effects the emotional, behavioral, mental, or social aspects of an individual’s
health.

Indicators of Stress
A person’s behavior may be scrutinized to determine if he is under stress. The emotional indicators of
stress include:
1. Prolonged unhappiness or boredom
2. Explosive anger in reaction to minor difficulties
3. A pessimistic view of life

Some of the behavioral indicators of stress are the following:

1. Insomnia
2. Difficulty in concentrating
3. A feeling of hyperactivity
4. Excessive use of alcohol or drugs

Four stages of stress

1. Stage one –trembling, twitching, or foot or finger tapping
2. Stage two –sweating palms, nausea, nervous stomach, or rapid breathing
3. Stage three –variable heartbeat rate, erratic blood pressure, over secretion
4. Stage four –headaches, ulcers, asthma, or hypertension

Three General Classes of Potential Sources of Stress

1. Environment
2. Organizational
3. Individual

Individual Approaches to Stress Management

1. Increasing physical exercise
2. Relaxation training
3. Expanding the social support network
Organizing for Safety and Health
1. As separate units in any organizational level.
2. As combination units in any organizational level.
 Safety Programs
 Occupational Safety and Health Standards (OSAHS) encourages every organization to maintain
an ongoing safety program.
 Managers should demonstrate a sincere interest in them by means of preparing a policy statement
that declares management’s concern about safety and health.
 All employees should know that careless and willful disregard for safe practices may result in
discipline and termination.
 Another way to promote safety is through the use of protective clothing and devices for
employees working in hazardous job situation.