ENTREPRENEURSHIP 1st Trimester SY 2021-2022

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: STEM 12
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 4 – ENTREP Subject Teacher: Kenny Jones A. Amlos

Human Resource Management

Objectives:
At the end of the module, the learners should be able to:
a. define human resource management;
b. identify competencies and skills of employees needed for their business;
c. design management team; and
d. differentiate between job description and job specification.

LESSON PROPER:
Management must include both efficiency (accomplishing goals using the fewest resources
possible) and effectiveness (accomplishing goals as accurately as possible).

You’d make the process effective by ensuring that the right things got done and that they all
contributed to the success of the enterprise. You’d make the process efficient by ensuring that activities
were performed in the right way and used the fewest possible resources.

What Do Managers Do?

The Management Process
The effective performance of your business will require solid management: the process of
planning, organizing, leading, and controlling resources to achieve specific goals. A plan enables you
to take your business concept beyond the idea stage. It does not, however, get the work done. For
that to happen, you have to organize things effectively. You’ll have to put people and other resources
in place to make things happen. And because your note-taking venture is supposed to be better off
with you in charge, you need to be a leader who can motivate your people to do well. Finally, to know
whether things are in fact going well, you’ll have to control your operations—that is, measure the results
and compare them with the results that you laid out in your plan. Figure 7.2 summarizes the
interrelationship between planning and the other functions that managers perform. This chapter will
explore planning, leading, and controlling in some detail.

In this module, it will discuss the third management process, which is LEADING.
The third management function is leading—providing focus and direction to others and
motivating them to achieve organizational goals. For example, as owner and president, you might
think of yourself as an orchestra leader. You have given your musicians (employees) their sheet music
(plans). You’ve placed them in sections (departments) and arranged the sections (organizational
structure) so the music will sound as good as possible. Now your job is to tap your baton and lead the
orchestra so that its members make beautiful music together.
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 ENTREPRENEURSHIP 1st Trimester SY 2021-2022
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: STEM 12
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 4 – ENTREP Subject Teacher: Kenny Jones A. Amlos

Leadership Styles
It’s fairly easy to pick up a baton, cue each section, and strike up the band, but it doesn’t mean
the music will sound good. What if your cues are ignored or misinterpreted, or ambiguous? Maybe your
musicians don’t like your approach to making music and will just walk away. On top of everything else,
you don’t simply want to make music: you want to inspire your musicians to make great music. How
do you accomplish this goal? How do you become an effective leader, and what style should you use
to motivate others to achieve organizational goals?
Unfortunately, there are no definitive answers to questions like these. Over time, every manager
refines his or her own leadership style or way of interacting with and influencing others. Despite a vast
range of personal differences, leadership styles tend to reflect one of the following approaches to
leading and motivating people: the autocratic, the democratic (also known as participative), or the
free rein.
● Autocratic style. Managers who have developed an autocratic leadership style tend to
make decisions without soliciting input from subordinates. They exercise authority and
expect subordinates to take responsibility for performing the required tasks without
undue explanation.
● Democratic style. Managers who favor a democratic leadership style generally seek
input from subordinates while retaining the authority to make the final decisions. They’re
also more likely to keep subordinates informed about things that affect their work.
● Free-rein style. In practicing a free rein leadership style, managers adopt a “hands-off”
approach and provide relatively little direction to subordinates. They may advise
employees but usually give them considerable freedom to solve problems and make
decisions on their own.

HUMAN RESOURCE MANAGEMENT

HRM is concerned with the human beings in an organization. “The management of man” is a very
important and challenging job because of the dynamic nature of the people. No two people are
similar in mental abilities, tacticians, sentiments, and behaviors; they differ widely also as a group and
are subject to many varied influences. People are responsive, they feel, think and act therefore they
cannot be operated like a machine or shifted and altered like a template in a room layout. They
therefore need a tactful handling by management personnel.``

Definition of HRM
1. “It is the process of managing people in organizations in a structured and thorough manner.”
This covers the fields of staffing (hiring people), retention of people, pay and perks setting and
management, performance management, change management and taking care of exits from
the company to round off the activities. This is the traditional definition of HRM which leads some
experts to define it as a modem version of the Personnel Management function that was used
earlier.
2. “The management of people in organizations from a macro perspective, i.e. managing people
in the form of a collective relationship between management and employees.” This approach
focuses on the objectives and outcomes of the HRM functions. It means that the HR function in
contemporary organizations is concerned with the notions of people enabling, people
development and a focus on making the “employment relationship” fulfilling for both the
management and employees

In simple words, Human resource management is a management function that helps managers to
recruit, select, train and develop organization members. Or HRM is a process of making the efficient
and effective use of human resources so that the set goals are achieved.

Nature of HRM
HRM is a management function that helps managers to recruit, select, train and develop members for
an organization. HRM is concerned with people’s dimension in organizations. The following aspects
constitute the core of HRM:

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 ENTREPRENEURSHIP 1st Trimester SY 2021-2022
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: STEM 12
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 4 – ENTREP Subject Teacher: Kenny Jones A. Amlos

1. HRM Involves the Application of Management Functions and Principles. The functions and
principles are applied for acquiring, developing, maintaining and providing remuneration to
employees in organization.
2. Decision Relating to Employees must be integrated. Decisions on different aspects of
employees must be consistent with other human resource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an organization
will result in betterment of services to customers in the form of high quality products supplied at
reasonable costs.
4. HRM Functions are not confined to Business Establishments Only but applicable to non-business
organizations such as education, health care, recreation and like.

HRM refers to a set of programs, functions and activities designed and carried out in order to maximize
both employee as well as organizational effectiveness.

Scope of HRM
The scope of Human Resources Management extends to:
● All the decisions, strategies, factors, principles, operations, practices, functions, activities and
methods related to the management of people as employees in any type of organization.
● All the dimensions related to people in their employment relationships and all the dynamics
that flow from it.
American Society for Training and Development (ASTD) conducted fairly an exhaustive study in this
field and identified nine broad areas of activities of HRM

These are given below:

1. Human Resource Planning: The objective of HR Planning is to ensure that the organization has
the right types of persons at the right time at the right place. It prepares human resources
inventory with a view to assess present and future needs, availability and possible shortages in
human resources. Moreover, HR Planning forecasts demand and supplies and identifies sources
of selection. HR Planning develops strategies both long term and short-term, to meet the man-
power requirement.

2. Design of Organization and Job: This is the task of laying down organization structure, authority,
relationship and responsibilities. This will also mean definition of work contents for each position
in the organization. This is done by: “job description”. Another important step is “Job
specification”. Job specification identifies the attributes of persons who will be most suitable for
each job which is defined by job description.

3. Selection and Staffing: This is the process of recruitment and selection of staff. This involves
matching people and their expectations with the job specifications and career path available
within the organization.

4. Training and Development: This involves an organized attempt to find out training needs of
individuals to meet the knowledge and skill which is needed not only to perform current job but
also to fulfill the future needs of the organization.

5. Organizational Development: This is an important aspect whereby “Synergistic effect” is

generated in an organization i.e. healthy interpersonal and inter-group relationship within the
organization.

6. Compensation and Benefits: This is the area of wages and salaries administration where wages
and compensations are fixed scientifically to meet fairness and equity criteria. In addition labour
welfare measures are involved which include benefits and services.

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 ENTREPRENEURSHIP 1st Trimester SY 2021-2022
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: STEM 12
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 4 – ENTREP Subject Teacher: Kenny Jones A. Amlos

7. Employee Assistance: Each employee is unique in character, personality, expectation and

temperament. By and large each one of them faces problems everyday. Some are personal,
some are official. In their case he or she remains worried. Such worries must be removed to make
him or her more productive and happier.

8. Union-Labour Relations: Healthy Industrial and Labour relations are very important for enhancing
peace and productivity in an organization. This is one of the areas of HRM.

9. Personnel Research and Information System: Knowledge on behavioral science and industrial
psychology throws better insight into the workers expectations, aspirations and behavior.
Advancement of technology of product and production methods have created a working
environment which is much different from the past.

Definitions of a Job Description and a job specification

Job description is a document which states an overview of the duties, responsibilities and functions of
a specific job in an organization.

Job specification is a statement of the qualifications, personality traits, skills, etc. required by an
individual to perform the job.

Differences between a Job Description and a Job Specification

Content
✓ Job description usually lists out the job title, location, job summary, working environment, duties
to be performed on the job, etc.
✓ Job specification lists out the qualifications, experience, training, skills, emotional attributes,
mental capabilities of an individual to perform the job.
Measures
✓ Job description measures the tasks and responsibilities attached to the job.
✓ Job specification measures the capabilities that the job holder must possess to perform the job.
Usefulness
✓ Job description offers ample information about the job which helps the management in
evaluating the job performance and defining the training needs of an employee.
✓ Job specification helps the candidates who are applying for a job to analyze whether they are
eligible for a particular job or not.
Benefit
✓ Job description statement helps the organization to be clear about “Who should do what”.
✓ Job specification statement helps the management to make decisions regarding promotion,
bonus, internal transfers and salary increase.

References:

Edralin,D.M. Entrepreneurship. Quezon City: Vibal Group Inc.

Kawasaki, G. (2004). Art of start: The time-tested, battle-hardened guide for anyone starting anything.
USA: Penguin Group
Skripak, S. J. (2016). Fundamentals of business. USA: Pamplin College of Business and Virginia Tech
Libraries

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