UNIVERSITY OF NEGROS OCCIDENTAL-RECOLETOS

Bacolod City
INTEGRATED SCOOL | GRADES 11 and 12

LEARNING MODULE

MODULE NO. 4

Organizing and Managing

Human Resources

ORGMGT080
Organization and
Management

Prepared by:
Dennis L. Udani, CPA, REB, REA, JD
 ORGANIZING; MANAGING HUMAN RESOURCES

Module 4: Organizing and

Managing Human Resources

INTRODUCTION:

Welcome to the fascinating world of organizational structure and design. we present

the basics of organizing. In this module, we define the key organizing concepts and their
components and how managers use these to create a structured environment in which
organizational members can do their work efficiently and effectively. Once the
organization’s goals, plans, and strategies are in place, managers must develop a structure
that will best facilitate the attainment of those goals.
With the organization’s structure in place, managers have to find people to fill the jobs
that have been created or to remove people from jobs if business circumstances require.
That’s where human resource management (HRM) comes in. It’s an important task that
involves having the right number of the right people in the right place at the right time.
In addition, in this module, we’ll look at the process managers use to do just that. In
addition, we’ll look at some contemporary HRM issues facing managers.
A major HRM challenge for managers is ensuring that their company has a high-quality
workforce. Getting and keeping competent and talented employees is critical to the
success of every organization, whether an organization is just starting or has been in
business for years. If an organization doesn’t take its HRM responsibilities seriously,
performance may suffer. Therefore, part of every manager’s job when organizing is human
resource management. Research has shown that when line managers are responsible for
recruiting, performance management, and retention, their companies are 29 percent more
successful. That’s a good reason for all managers to engage in some HRM activities, such
as interviewing job candidates, orienting new employees, and evaluating their employees’
work performance, even if there is a separate HRM department.

OBJECTIVES:

At the end of this module, the learner will be able to:

1. Describe six key elements in organizational design.
2. Contrast mechanistic and organic structures.
3. Discuss the contingency factors that favor either the mechanistic model or the
organic model of organizational design.

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4. Describe traditional organizational design options.

5. Discuss organizing for flexibility in the twenty-first century.
6. Explain the importance of human resource management and the human resource
management process.
7. Describe the external influences that affect the human resource management
process.
8. Discuss the tasks associated with identifying and selecting competent employees.
9. Explain how companies provide employees with skills and knowledge.
10. Describe strategies for retaining competent, high-performing employees.
11. Discuss contemporary issues in managing human resources.

ACTIVITY 1:

CASE ANALYSIS: Read and answer the question that follow. Write your answer
in the space provided.

Admit it. Sometimes the projects you’re working on (school, work, or both) can get pretty
boring and monotonous. Wouldn’t it be great to have a magic button you could push to get
someone else to do that boring, time-consuming stuff? At Pfizer, that “magic button” is a reality
for a large number of employees.

As a global pharmaceutical company, Pfizer is continually looking for ways to help employees
be more efficient and effective. The company’s senior director of organizational effectiveness found
that the highly educated MBAs it hired to “develop strategies and innovate were instead Googling
and making PowerPoints.” Indeed, internal studies conducted to find out just how much time its
valuable talent was spending on menial tasks was startling. The average Pfizer employee was
spending 20 percent to 40 percent of his or her time on support work (creating documents, typing
notes, doing research, manipulating data, scheduling meetings) and only 60 percent to 80 percent
on knowledge work (strategy, innovation, networking, collaborating, critical thinking). And the
problem wasn’t just at lower levels. Even the highest-level employees were affected. Take, for
instance, David Cain, an executive director for global engineering. He enjoys his job—assessing
environmental real estate risks, managing facilities, and controlling a multimillion-dollar budget.
But he didn’t so much enjoy having to go through spreadsheets and put together PowerPoints.
Now, however, with Pfizer’s “magic button,” those tasks are passed off to individuals outside the
organization.

Just what is this “magic button”? Originally called the Office of the Future (OOF), the renamed
PfizerWorks allows employees to shift tedious and time-consuming tasks with the click of a single
button on their computer desktop. They describe what they need on an online form, which is then
sent to one of two Indian service-outsourcing firms. When a request is received, a team member
in India calls the Pfizer employee to clarify what’s needed and by when. The team member then
e-mails back a cost specification for the requested work. If the Pfizer employee decides to proceed,
the costs involved are charged to the employee’s department. About this unique arrangement,

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Cain said that he relishes working with what he prefers to call his “personal consulting
organization.”

The number 66,500 illustrates just how beneficial PfizerWorks has been for the company.
That’s the number of work hours estimated to have been saved by employees who’ve used
PfizerWorks. What about David Cain’s experiences? When he gave the Indian team a complex
project researching strategic actions that worked when consolidating company facilities, the team
put the report together in a month, something that would have taken him six months to do alone.
“Pfizer pays me not to work tactically, but to work strategically,” he says.

1. Describe and evaluate what Pfizer is doing with its PfizerWorks.

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2. What structural implications—good and bad—does this approach have? (Think in terms of the
six organizational design elements.)
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3. Do you think this arrangement would work for other types of organizations? Why or why not?
What types of organizations might it also work for?
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4. What role do you think organizational structure plays in an organization’s efficiency and
effectiveness? Explain.
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ACTIVITY 2:

Find three different examples of an organizational chart. (A company’s annual reports are a
good place to look.) In a report, describe each of these. Try to decipher the organization’s use
of organizational design elements, especially departmentalization, chain of command,
centralization-decentralization, and formalization.

Organization No. 1

Comment:
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Organization No. 2

Comment:
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Organization No. 3

Comment:
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ACTIVITY 3:

Instructions: Make your own resume and cover letter. Use the template below:

Scenario: You graduated from G University with a double degree in Business Administration and
Accountancy in 2017. You passed the CPA board examination on December 2017. After you passed
the board exams, you entered as an audit associate in Ernst and Young Co. After one year, you
are promoted to audit supervisor. After another year, you are promoted to assistant manager. X
Company is looking for a Chief Finance Officer with a bigger compensation. You are applying for
the position of Chief Finance Officer. Juan S. dela Cruz is the owner of X Company.

You can modify the font, font size and spacing. If the information is not provided in the scenario
above, you create additional information to supplement the scenario. Submit in PDF format.

RESUME:

FIRST NAME LAST NAME

Address · Phone
Email · LinkedIn Profile · Twitter/Blog/Portfolio

To replace this text with your own, just click it and start typing. Briefly state your career objective, or
summarize what makes you stand out. Use language from the job description as keywords.

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EXPERIENCE
DATES FROM – TO
JOB TITLE, COMPANY
Describe your responsibilities and achievements in terms of impact and results. Use examples, but
keep it short.

DATES FROM – TO
JOB TITLE, COMPANY
Describe your responsibilities and achievements in terms of impact and results. Use examples, but
keep it short.

EDUCATION
MONTH YEAR
DEGREE TITLE, SCHOOL
It’s okay to brag about your GPA, awards, and honors. Feel free to summarize your coursework
too.

MONTH YEAR
DEGREE TITLE, SCHOOL
It’s okay to brag about your GPA, awards, and honors. Feel free to summarize your coursework
too.

SKILLS
• List your strengths relevant for the role you’re • List one of your strengths
applying for • List one of your strengths
• List one of your strengths • List one of your strengths

ACTIVITIES
Use this section to highlight your relevant passions, activities, and how you like to give back. It’s good to
include Leadership and volunteer experiences here. Or show off important extras like publications,
certifications, languages and more.

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COVER LETTER

FIRST NAME LAST NAME

Address · Phone
Email · LinkedIn Profile · Twitter/Blog/Portfolio

[Recipient Name]
[Title]
[Company]
[Recipient Street Address]
[Recipient City, ST Zip]

DEAR [RECIPIENT NAME],

Are you looking for a [job title] with:

• [Number] years of hands-on experience in [area of expertise]?

• Knowledge of the latest technology in [industry or field]?
• [Excellent written and oral communication skills?]
• [A passion to learn and to increase his skills?]

If so, then you need look no further. You will see from my enclosed resume that I meet all of these
qualifications and more.

I would very much like to discuss opportunities with [Company Name]. To schedule an interview,
please call me at [phone]. The best time to reach me is between [earliest time] and [latest time],
but you can leave a voice message at any time, and I will return your call.

Thank you for taking the time to review my resume. I look forward to talking with you.

Sincerely,

[Your Name]

Enclosure

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ACTIVITY 4:

CASE ANALYSIS: Read and answer the question that follow. Write your answer
in the space provided.

Featured for more than a dozen years on Fortune’s “100 Best Companies to Work For” list, the
Mayo Clinic is known for having an employee-friendly work environment. However, the success of
the organization depends not only on treating employees well, but also on having the right
employees in place. Working in the health care industry can be stressful, creating challenges for a
nonprofit organization such as the Mayo Clinic to recruit and select new staff members. And the
Mayo Clinic does a lot of hiring. With more than 44,000 employees, the organization hires about
5,000 new employees a year. So how does the Mayo Clinic handle this challenge?

The Mayo Clinic’s reputation as a great place to work helps them attract applicants, as
evidenced by the more than 68,000 applications received last year. They usually receive over 20
applicants for each open nursing position while other hospitals struggle to find qualified nurses.
So what makes the organization such a great place to work? In addition to creating a caring work
culture that makes everybody feel like they are part of a team doing life-changing work, they also
offer employees generous benefits and other perks. They offer the basics such as health care and
retirement benefits, along with a full menu of other benefits. For example, employees receive 28
paid days off each year, back-up child care, subsidized parking, tuition reimbursement, and work-
life balance programs that offer flexible work options. These offerings support the recruitment
process as current employees encourage others to join their team. In fact, about 20 percent of
their jobs are filled by employee referrals.

In addition to employee referrals, many of their job applicants are cultivated internally. With
five schools in the Mayo Clinic’s educational system, the clinic essentially is training new potential
employees for positions ranging from technologists to surgeons. However, the organization’s
stellar reputation attracts many applicants from outside the organization as well.

The “Jobs at Mayo Clinic” section of the company website is an important tool in their
recruitment process. The site is dynamic and provides extensive information to potential
applicants, including details on specific jobs, professional development opportunities, recognition
programs, and benefits. If the organization does not have a current job opening available, they
keep applicants engaged through their Talent Community, which allows the applicant to learn
about relevant job opportunities as soon as they become available. The Talent Community keeps
job applicants engaged through e-mail updates about news at the clinic and other career-related
information.

Once the organization has a pool of applicants for a job, they have to make a tough selection
decision. The organization takes hiring seriously, identifying the applicants that not only meet the
qualifications for the job, but that also align with the organization’s values. Their selection process
rigorously screens for qualities including respect, compassion, integrity, teamwork, innovation, and
stewardship. After an initial screening that includes an online application profile and often a Web-
based interview, formal in-person interviews are conducted by at least one panel, sometimes more.
The panels conducting the interviews include representatives from human resources, the hiring
manager, future team members, and sometimes other internal customers who may interact with

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the future employee. Physicians and scientists may also be asked to give a presentation. Decisions
are made only after a thorough screening process is completed.

Evidence suggests that the Mayo Clinic’s hiring efforts are effective. Employees who are well-
matched to the organizational culture and values continue to rank the clinic as a top workplace.
Furthermore, those they hire tend to stay with the clinic for the long run. The organization boasted
a low 5 percent voluntary turnover rate last year. Within the physician workforce, the turnover
rate stays as low 1 to 2 percent, which is extraordinary in the health care industry.

1. Would you be interested in working at the Mayo Clinic?

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2. How does the Mayo Clinic’s Talent Community help to recruit new applicants?
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3. Why is it important for the Mayo Clinic to assess a job applicant’s values?
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4. How does a panel interview process help the organization make better hiring decisions?
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PROCESSING QUESTIONS:

1. Discuss the traditional and contemporary views of each of the six key elements of
organizational design.
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2. Would you rather work in a mechanistic or an organic organization? Why?

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3. Contrast the three traditional organizational designs.

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4. With the availability of advanced information technology that allows an organization’s work to
be done anywhere at any time, is organizing still an important managerial function? Why or
why not?
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5. Differentiate between matrix and project structures.

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6. How can an organization operate without boundaries?

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7. What structural issues might arise in managing employees’ flexible work arrangements? Think
about what you’ve learned about organizational design. How might that information help a
manager address those issues?
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8. Why are more companies today relying on contingent workers?

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9. Discuss how human resource management practices can be a source of competitive advantage
for a company.
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10. Discuss the external environmental factors that most directly affect the HRM process.
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11. Describe the different selection devices and which work best for different jobs.
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12. What are the benefits and drawbacks of realistic job previews? (Consider this question from
the perspective of both the organization and the employee.)
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13. Describe the different types of orientation and training and how each of the types of training
might be provided.
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14. List the factors that influence employee compensation and benefits.
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15. Describe the different performance appraisal methods.

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16. What, in your view, constitutes sexual harassment? Describe how companies can minimize
sexual harassment in the workplace.
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SUMMARY/KEYPOINTS

1. Describe six key elements in organizational design.

The key elements in organizational design are work specialization, departmentalization, chain of command,
span of control, centralization–decentralization, and formalization. Work specialization is dividing work activities
into separate job tasks. Today’s view is that work specialization can help employees be more efficient.
Departmentalization is how jobs are grouped together. Today most large organizations use combinations of
different forms of departmentalization. The chain of command and its companion concepts—authority,
responsibility, and unity of command—were viewed as important ways of maintaining control in organizations.
The contemporary view is that they are less relevant in today’s organizations. The traditional view of span of
control was that managers should directly supervise no more than five to six individuals. The contemporary view
is that the span of control depends on the skills and abilities of the manager and the employees and on the
characteristics of the situation. Centralization–decentralization is a structural decision about who makes
decisions—upper-level managers or lower-level employees. Formalization concerns the organization’s use of
standardization and strict rules to provide consistency and control. Today, organizations rely less on strict rules
and standardization to guide and regulate employee behavior.

2. Contrast mechanistic and organic structures.

A mechanistic organization is a rigid and tightly controlled structure. An organic organization is highly adaptive
and flexible.

3. Discuss the contingency factors that favor either the mechanistic model or the organic
model of organizational design.
An organization’s structure should support the strategy. If the strategy changes, the structure also should
change. An organization’s size can affect its structure up to a certain point. Once an organization reaches a certain
size (usually around 2,000 employees), it’s fairly mechanistic. An organization’s technology can affect its structure.
An organic structure is most effective with unit production and process production technology. A mechanistic
structure is most effective with mass production technology. The more uncertain an organization’s environment,
the more it needs the flexibility of an organic design.

4. Describe traditional organizational design options.

A simple structure is one with little departmentalization, wide spans of control, authority centralized in a single
person, and little formalization. A functional structure groups similar or related occupational specialties together.
A divisional structure is made up of separate business units or divisions.

5. Discuss organizing for flexibility in the twenty-first century.

In a team structure, the entire organization is made up of work teams. The matrix structure assigns specialists
from different functional departments to work on one or more projects being led by project managers. A project
structure is one in which employees continuously work on projects. A boundaryless organization’s design is not
defined by, or limited by, the horizontal, vertical, or external boundaries imposed by a predefined structure. A
virtual organization consists of a small core of full-time employees and outside specialists temporarily hired as
needed to work on projects. Another structural option is a task force, which is a temporary committee or team
formed to tackle a specific short-term problem affecting several departments.

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Telecommuting is a work arrangement in which employees work at home and are linked to the workplace by
computer. A compressed workweek is one in which employees work longer hours per day but fewer days per
week. Flextime is a scheduling system in which employees are required to work a specific number of hours a week
but are free to vary those hours within certain limits. Job sharing is when two or more people split a full-time job.
Contingent workers are temporary, freelance, or contract workers whose employment is contingent on
demand for their services. Organizing issues include classifying who actually qualifies as an independent
contractor; setting up a process for recruiting, screening, and placing contingent workers; and having a method
in place for establishing goals, schedules, and deadlines and for monitoring work performance.

6. Explain the importance of human resource management and the human resource
management process.
HRM is important for three reasons. First, it can be a significant source of competitive advantage. Second, it’s
an important part of organizational strategies. Finally, the way organizations treat their people has been found to
significantly impact organizational performance. To meet these objectives, managers rely on eight activities that
comprise the HRM process.

7. Describe the external influences that affect the human resource management process.
The external factors that most directly affect the HRM process are the economy, labor unions, legal
environment, and demographic trends. The economy affects how employees view their work and has implications
for how an organization manages its human resources. A labor union is an organization that represents workers
and seeks to protect their interests through collective bargaining. In unionized organizations, HRM practices are
dictated by collective bargaining agreements. HRM practices are governed by a country’s laws and not following
those laws can be costly. Demographic trends such as changes in the racial and ethnic composition of the
workforce, retiring Baby Boomers, and an expanding cohort of Gen Y workers will also have implications for HRM
practices.

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8. Discuss the tasks associated with identifying and selecting competent employees.
Human resource planning is the process by which managers ensure they have the right number and kinds of
capable people in the right places at the right times. A job analysis is part of the assessment process that defines
a job and the behaviors necessary to perform it. A job description is a written statement describing a job and
typically includes job content, environment, and conditions of employment. A job specification is a written
statement that specifies the minimum qualifications a person must possess to successfully perform a given job.
Employers must cautiously screen potential job applicants. Recruitment is the process of locating, identifying,
and attracting capable applicants. Decruitment is an approach to controlling the labor supply when there is a
surplus.
Selection involves predicting which applicants will be successful if hired. A valid selection device is
characterized by a proven relationship between the selection device and some relevant criterion. A reliable
selection device indicates that it measures the same thing consistently. The different selection devices include
application forms, written and performance-simulation tests, interviews, background investigations, and in some
cases physical exams.
A realistic job preview is important because it gives an applicant more realistic expectations about the job,
which in turn should increase employee job satisfaction and reduce turnover.

9. Explain how companies provide employees with skills and knowledge.

Orientation is important because it results in an outsider-insider transition that makes the new employee feel
comfortable and fairly well adjusted, lowers the likelihood of poor work performance, and reduces the probability
of an early surprise resignation.
The most popular types of training include profession/industry-specific training, management/supervisory
skills, mandatory/compliance information, and customer service training. This training can be provided using
traditional training methods (on the job, job rotation, mentoring and coaching, experiential exercises,
workbooks/manuals, and classroom lectures) or by technology-based methods (CD/DVD/videotapes/ audiotapes,
videoconferencing or teleconferencing, or e-learning).

10. Describe strategies for retaining competent, high-performing employees.

A performance management system establishes performance standards used to evaluate employee
performance. The different performance appraisal methods are written essays, critical incidents, graphic rating
scales, BARS, multiperson comparisons, MBO, and 360-degree appraisals.
The factors that influence employee compensation and benefits include the employee’s tenure and
performance, kind of job performed, kind of business/industry, unionization, whether it is labor or capital intensive,
management philosophy, geographical location, company profitability, and size of company.
Skill-based pay systems reward employees for the job skills and competencies they can demonstrate. In a
variable pay system, an employee’s compensation is contingent on performance.

11. Discuss contemporary issues in managing human resources.

Managers can manage downsizing by communicating openly and honestly, following appropriate laws
regarding severance pay or benefits, providing support/counseling for surviving employees, reassigning roles
according to individuals’ talents and backgrounds, focusing on boosting morale, and having a plan for empty office
spaces.
Sexual harassment is any unwanted action or activity of a sexual nature that explicitly or implicitly affects an
individual’s employment, performance, or work environment. Managers need to be aware of what constitutes an
offensive or hostile work environment, educate employees on sexual harassment, and ensure that no retaliatory
actions are taken against any person who files harassment charges.
Organizations are controlling HR costs by controlling employee health care costs through employee health
initiatives (encouraging healthy behavior and penalizing unhealthy behaviors) and controlling employee pension
plans by eliminating or severely limiting them.

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QUIZ NO. 1

TRUE OR FALSE: Read the following statements. Write “TRUE” if the statement is correct,
otherwise “FALSE.”
1. Controlling is arranging and structuring work to accomplish organizational goals.
Answer: _______________
2. Organizational structure is the formal arrangement of jobs within an organization.
Answer: _______________
3. Formalization is the basis by which jobs are grouped together.
Answer: _______________
4. Centralization is the number of employees a manager can efficiently and effectively
manage.
Answer: _______________
5. An organization’s structure should facilitate goal achievement
Answer: _______________
6. Outside the HR department, achieving competitive success through people means
managers must change how they think about their employees and how they view
the work relationship.
Answer: _______________
7. An employee association is an organization that represents workers and seeks to
protect their interests through collective bargaining.
Answer: _______________
8. A job description states the minimum qualifications that a person must possess to
successfully perform a given job.
Answer: _______________
9. Work unit orientation familiarizes the employee with the goals of the work unit,
clarifies how his or her job contributes to the unit’s goals, and includes an
introduction to his or her new coworkers.
Answer: _______________
10. An advantage of a written essay is it may be better measure of evaluator’s writing
ability than of employee’s actual performance.
Answer: _______________
Now, check your work. Refer to answer key provided at the back pages.

Did you get a good score?

If you got:
8-10 Very good You have gained much learning on the topic.
5-7 Good You have gained adequate learning on the topic.
0-4 Fair You can review the topic to improve.

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Congratulations!

You have finished your journey through Module 4. Now you are ready to learn more
with Module 5. Good luck!

Key Answer:

Quiz 1

1. False 6. True
2. True 7. False
3. False 8. False
4. False 9. True
5. True 10. False

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