Chapter 1

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource Management

- Systematic planning, development, and control of network of interrelated
processes affecting and involving all member of the organization - Wendell L.
French
- It is the process of managing human talent to achieve an organization’s objective
- Snell & Bohlander

HRM’s Functions and Roles

1. Talent Acquisition
2. Performance Management
3. Employee Training and Management Development
4. Compensation Management
5. Benefits Management
6. Employee Management Relations
7. Labor Management Relations

Scope of HRM
Based on theoretical work in the field of organizational behavior it is proposed that HRM
comprises of the following:
1. A set of policies or procedures designed to maximize organizational integration.
2. Employees’ competency, engagement, commitment, satisfaction, motivation,
skills and talent management
3. Job design, Manpower Forecasting and Performance Appraisal
4. Labor laws

Strategic View of HRM

1. INPUTS INTO THE SYSTEM
- External Environment
- Internal Environment

2. TRANSFORMATION PROCESS
- Workforce
- Jobs
- Systems
- Processes
6 New Roles of an Effective HR Professional
1. Credible Activist
- builds credibility over time by delivering results, improving personal and
professional performance, developing relationships of trust internally and
externally, and utilizing the trust to influence the others

2. Strategic Positioner
- The Strategic Positioner in HR must help shape content strategy (where and how
the organization competes and wins) and strategic unity within the organization
(by involving key groups in the strategy creation process). The Strategic
Positioner in HR must also help the organization mitigate risks such as
uncertainty and ability to predict the future and variability in the range of different
activities required.

3. Capability Builder
- Capacity building is essentially the development of human capital – that can
occur at the individual, institutional and societal level – enhancing skills and
knowledge – to achieve sustainable and measurable results.

4. Change Champion
- Change champions assist in instituting a change, they advocate for and promote
the change from within, and are instrumental in implementation of the change.

5. Human Resource Innovator and Integrator

- HR as innovator and integrator is a new domain and refers to the need to know
the latest insights on key HR practice areas related to human capital (talent
sourcing, talent development), performance accountability (appraisal, rewards),
organisation design (teamwork, organisation development) and communication.
An effective HR professional needs to be able to turn these areas into integrated
solutions, generally around an organisation’s leadership brand.

6. Technology Proponent
- HR professionals need to use technology to more efficiently deliver HR
administrative systems like benefits, payroll processing, healthcare costs, and
other administrative services.
Strategic HRM

Human Capital
- An organization’s employees described in terms of their:
- Training
- Experience
- Judgement
- Intelligence
- Relationships
- Insight

* The concept of HRM implies that employees are resources of the employer
Impact of HRM
 Chapter 2
WORKFORCE PLANNING AND RECRUITMENT

Two Major HR activities in Talent Acquisition

1. Workforce Planning
- Refers to the preparation stage of recruitment. This stage determines the number
of employees and positions necessary for the organization. This also determines
the skills, abilities, competence and other job specifications required for the
positions.
2. Recruitment
- Refers to the organizational activities that influence the number and types of
applicants who apply for a job and whether the applicant will accept the job that is
being offered.

Workforce Planning
- Provides a roadmap to execute almost all HR functions.
- Movements that relate to getting people into, around in and/or out of an organization.
- Its objective is to define the right profile of people an organization requires to meet its
short term and long term plans and goals.
- It is a process of identifying and addressing the staffing implications of business
strategies and plans and the changes happening within and outside the organization.

Internal Changes in the organization may lead to workforce planning. Examples:

a. Company expansion
b. Financial difficulties, downsizing or closure
c. Company relocation
d. Company mergers
e. Introduction of new technologies, systems or streamlining
f. New products or services
g. Increased in targets for production, sales, services, etc.

Steps in Workforce Planning

1. Situational Analysis
2. Forecasting demand
3. Analysis of supply and demand of human resource
4. Development of plans of actions
SWOT Analysis

Forecasting Demand
- The process which identifies the number and kind of people that an organization will
need at some point in the future.
- It uses data to predict future manpower needs. The precision of the manpower forecast
is dependent on the accuracy, completeness, and relevance of the data used, the
method of forecasting employed, and the ability of the forecast to take into consideration
as many factors that can impact the actual manpower levels.

1. Quantitative Forecasting uses statistical or mathematical methods in analyzing the

data. Common methods are Historical ratio analysis, Trend Analysis and Statistical
Analysis.
2. Qualitative Forecasting is using less statistics and relying on experts’ assessment to
anticipate future staffing needs.

Analysis of the Supply of Human Resource

- Involves determining the availability of manpower in the future by looking at the internal
and external sources: people already employed by the firm and those outside the
organization.

● Internal recruitment
- Succession analysis - making a detailed inventory of how many employees are
currently in various job categories or have specific skills within the organization.
Also making an analysis of the expected movements and changes in the
inventory as a result of retirement, resignation, promotions, transfers or
terminations.

Current Staffing - Projected outflow + Projected inflow = Unit’s Internal Supply

- Markov analysis - making projections of movements of employees over a period

of time which is based on the historical average rate of movement from one
position to another.
 ● External recruitment
- Typically involves a labor market analysis such as employment trends,the current
strengths and weaknesses of the workforce, emerging employment trends,
college and university enrollment trends and economic opportunities that indicate
the availability of people outside the organization.

Development of Plans of Actions

- This is the final step in workforce planning which involves consolidating all the data and
inputs and determining the most effective strategy to close the gap and achieve the
desired manpower profile.
- To guide the HR practitioner in sourcing candidates, clear recruitment objectives have to
be established.
- Aided by inputs from the previous steps of HR planning, establishing the recruitment
objectives means identifying the following:
- No. of open positions
- Date on which the positions should be filled
- No. of applications
- Type of applicants
- Job performance goals for new hires
- Expected new hires retention rate

Method of Recruitment
1. Job advertising
2. Internet posting
3. Use of social media
4. Headhunting of executive search
5. Employee referrals
6. Internal recruitment
7. Rehiring former employees
8. Walk-ins
9. College recruitment
10. Internships

Chapter 3
HUMAN RESOURCE MANAGEMENT

Good Hiring Decision

- This is a systematic, objective, well-informed, and timely decision or choice about
candidates who are most suited to or have the best possible fit for the position or role
being filled.
Selection process
 - This is a systematic series of activities that is done to assess the qualification and
competencies of applicants so that the employer can determine whether or not the
applicant can be hired for the vacancy.

Characteristics of Selection

1. Validity
- An instrument’s ability to measure what it is supposed to measure.
- This is the most important factor considering whether or not to use an assessment
method, because an assessment that does not accurately identify who will perform
effectively on a job has no value to the organization.

2. Reliability
- is the ability of an instrument to accurately, precisely and consistently measure something.

Note: it is always better to have both of these characteristics present.

Methods of Selection
1. Paper Screening
2. Testing
3. Job Knowledge Test
4. Personality Test
5. Integrity
6 Situational Judgement Test
7. Work Sample Test
8. Physical Fitness and Ability Test

Interview
1. Behavioral interview
2. Situational Interview
3. Stress Interview
4. Structured Interview

Other Selection Methods:

1. Use of Assessment Centers

2. Pre-Employment Background Checks
3. Criminal Records checks
4. Pre-employment Medical or Health records

How to make Good Hiring Decisions

Job Offer - is a formal expression of the employer’s decision to hire a candidate. This includes
the following:
1. Position Title
2. Salary
3. Benefits
4. Start Date
5. Job Description
6. Location of Work
7. Department

Note: one wrong hire to an employee may lead to the downfall of an organization.

Chapter 4
PERFORMANCE MANAGEMENT

Performance Appraisal
- referred to as a performance review, performance evaluation, (career) development
discussion, or employee appraisal. a method by which the job performance of an
employee is documented and evaluated.
- These are also a part of career development and consist of regular reviews of employee
performance with organizations.

note : These appraisals help the employee when it comes to salary increase. This is
decided by the HR and this is not an application for the employees.

These are also a part of career development and consist of regular reviews of employee
performance with organizations.

Performance Appraisals are most often conducted by an immediate manager like:

1. Line Managers
2. Front-line Managers

Annual performance
- reviews have been criticized as providing feedback too infrequently to be useful, and
argue performance reviews in general do more harm than good. It is an element of the
principal-agent framework, that describes the relationship of information between the
employer and employee;
- the direct effect response received when a performance review is conducted.

Performance Appraisal (definition)

- This is a systematic, general and periodic process that assesses an individual
employee’s job performance and productivity in relation to certain pre-established criteria
and organizational objectives.
The other aspects of individual employees are considered as the following:
1. Organizational Citizenship Behavior
2. Accomplishments
3. Potential for future improvement
4. Strengths and Weaknesses.

Steps in Performance Management

1. Establish performance Criteria and Standards

Three types of information which the managers could use in establishing performance
criteria:

Trait-based
- refers to the characteristics of the individual which are believed to affect the way the
employee performs his job.

Behavior-based
- includes those specific observable and measurable behaviors which are necessary in
the effective performance of one’s job.

Results-based -
- pertains to the employee’s accomplishment of observable and measurable outcomes.

Standards representing the expected levels of performances for each criteria:

Outstanding
Exceeds Expectations
Meets Expectations
Improvement Needed
Not Applicable

2. Clearly communicate the performance criteria and standards to the employee

- Communication is important since the criteria should be explained clearly to the

employee.
Employees, on the other hand, must understand the importance of these criteria and
standards in order for them to accept them.
3. Monitor the employee’s job performance and provide ongoing feedback.

- Ongoing, monitoring and feedback

- This is to help the employee in developing the desired work habits and in avoiding
surprises during the formal performance evaluation session.
Feedback
- when this is timely, there is a greater chance for it to bring about a change in the
behavior of the employee.

4. Document evaluation of employee’s performance.

Performance Evaluation forms

- These are used to document the observation and assessment of an employee’s job
performance.

5. Conduct effective performance evaluation discussion with the employee and provide
intervention as needed.

Important objective of evaluating employee’s performance

- To ensure that pieces of evidence of performance are properly documented.
- To reward or give due recognition to performing employee or
- Inadequacies are dealt with so that the employee’s future performance will improve.

Performance Evaluation Tools

1. Checklist
- Contains a number of descriptive statements, employee traits and behaviors which the
rater uses in evaluating an employee’s performance.

2. Essay Format
- The rater usually is required to explain in writing observed employee behaviors.

3. Behaviorally Anchored Rating Scale (BARS)

- The performance factors here are well defined in behavioral, observable and measurable
terms or levels.

4. Management by Objective (MBO)

- This is a method where the employee’s performance is managed through goal-oriented,
participative and systems approach.

5. 360 degrees performance evaluation

- All feedback about the employee’s performance comes from everyone around him
including himself.

6. Balanced Scorecard
- Defined as a strategic planning and management system.
- Used to align business activities with the vision statement of the organization.
 - For example:

A. Financial - Improve cash flow, decrease infrastructure, expenditure and increase in

project profits.
B. Customer - increase customer satisfaction, grow market share, improve survey
results
C. Learning and Growth - Invest in employee training, performance reviews, education
grants.
D. Internal Processes - Decrease call wait time, Improve Safety Index, and minimize
rework.

7. Performance Dashboard
- A visual display of the important information needed to achieve one or more objectives,
consolidated and arranged in a single screen.
- The rater usually is required to explain in writing observed employee behaviors.

6. Redefine performance criteria and standards for the following performance cycle.

Essentials for a good performance:

1. Motivation
2. Ability
3. Environment

Chapter 5
EMPLOYEE TRAINING

Training
- A planned effort of a company to contribute to learning or re-learning new skills, attitudes
and competencies specifically needed to achieve business objectives.

Typical reasons for employee training:

1. When a performance appraisal is indicated, performance improvement is needed.

2. To benchmark the status of improvement so far in a performance improvement effort.

3. As a part of an overall professional development program.

4. As part of succession planning to help an employee be eligible for a planned change in role in
the organization.

5. To pilot or test the operation of a new performance management system.

6. To train about a specific topic.

Benefits of Training
- Helps employees develop specific skills.
- Increases employee’s job satisfaction, motivation and morale.
- Improves organizational strategies, current system and efficiencies in processes
resulting in financial gain.
- Can be used to increase capacity to adopt new technologies and methods.
- Can reduce employee turnover.
- Can enhance company image.
- Is used in Risk Management (policies on fair employment, Security and Safety)

Typical Topics of Employee Training

- Communication
- Computer skills
- Customer service
- Diversity
- Ethics
- Human Relations
- Quality Initiatives
- Safety
 - New Systems or Procedures

Some Problem Associated In Training

- Required resources
- Training program can be time consuming to implement
- Impact of training is difficult to link to the attainment of business objectives.

Training Process
1. Training needs analysis (assessment)

Needs Assessment
- A process used to determine whether training is necessary or the solution to closing the
performance gaps in the organization.

Typically involves analysis of the needs of the three domains:

- Organizational Analysis - examines the organization as a whole (objectives, resources,
tools)
- Task Analysis - studies the jobs in the organization to identify the skills and behaviors
needed for these jobs.
- Person Analysis - identifies the readiness of the employee in the training.

2. Identification of training objectives

Creating training Objectives:

A. Identify the level of knowledge necessary to achieve your goal. The domain of learning can
be categorized as affective (attitude), psychomotor (Skills) and cognitive (knowledge) A S K

Attitude - changes how the trainee chooses to act.

Skills - focuses on changing or improving the task a trainee can perform.
Knowledge - focuses on increasing what the trainee knows.
B. Select an Action Verb

C. Check your objective by including the four pieces: Audience, Behavior, Condition and Degree
of Mastery. Use the acronym ABCD.

Audience - know your trainees

Behavior - determine the trainees different behavior after training
Condition - this describes the situation of the trainees
Degree of Mastery - this identifies the level of knowledge applied in the job.

3. Development of Training Program (design training program)

1. Define your training - this includes the why, when, where, who, what and how the training
will be implemented.
2. Prepare your training - this includes materials and tools needed in your training.
3. Practice your training - rehearse how to present the program.
4. Deliver your training - always be prepared for whatever concern during the training.
5. Confirm the training - evaluation of the training is critical to know its effectiveness of the
training.
6. Audit the trainee’s performance - always make a monitoring action after the training.

4. Implementation of Training Program (conduct the program)

- Feedback for training improvement

Training Methodologies:
● Lecture
● Outdoor training
● Training Simulations
● On the Job Training (OJT)
● On-line Training