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Human Resource Management Challenges of Modern HRM

■ is the programs, policies and practices for managing an – Changing mix of workforce/diversity
organization’s workforce – Changing personal values of the work force
■ as defined by Edwin Flippo, it means – the planning, – Changing expectations of citizen-employees
organizing, directing, and controlling of the procurement, – Changing levels of productivity/globalization
development, compensation, integration, maintenance, – Changing demands of government
and separation of human resources to the end that
individual, organizational and societal objectives are From Mechanics to Social Responsibility
accomplished. Significant aspects of the history of personnel management:

Management Functions Mechanical approach toward personnel


Planning The “basic approach” which is also labeled “mechanical” has
 It is the determination in advance of a personnel program also been called “commodity approach” or the “factor-of-
that will contribute to goals established for the enterprise. production concept” = these titles are descriptive of the attitude
Organizing that assumes that labor must be classified with capital and land
 It is designing the structure of relationship among jobs, as factor of production to be procured as cheaply as possible and
personnel and physical factors. “An organization is a means utilized to the fullest.
to an end.”
Directing Closed-system –the firm is sheltered from outside forces such as
 Directing means getting people to go to work willingly and government or labor unions that might attempt to interfere with
effectively. the mechanistic approach to personnel.
Controlling
 It is concerned with regulating or monitoring activities in assumes that personnel are controllable, predictable, and
accordance with the plan, which in turn was formulated on interchangeable.
the basis of an analysis of fundamental organization goals.
Problems caused by mechanical approach:
Operative Functions: • Technological unemployment
Procurement • Security
It is concerned with the obtaining of the proper • Labor organization
kind and number of personnel necessary to • Decreased pride in work
accomplish organization goals.
It deals specifically with: Paternalism
Recruitment is the concept that management must assume a fatherly
Selection, and and protective attitude toward employees.
Placement
Social System Approach
Development Bases of Corporate Social Responsibility
It is concerned with training employees to increase their – Long-run profit maximization and social
skills necessary for proper job performance. responsibility are substantially similar concepts.
This is the process of changing employee behavior and/or – The changing ethics of business managers are in
attitudes through some type of guided experience. concordance with the changing norms of society.
– Firms will prepare a list of goals in order of priority
Compensation with non-economics social values being included.
This function is defined as the adequate and equitable – Firms will be socially responsible to the degree
remuneration of personnel for their contributions to organization they perceive power threats in the environment.
objectives.
Obligations of the Personnel Manager
Integration/Labor Relations – ensuring that expectations concerning the quality
It is concerned with the attempt to effect a reasonable of work life are met
reconciliation of individual, societal, and organizational interests. – ensuring that the organization is in compliance
It rests upon a foundation of belief that significant with appropriate laws and regulations affecting employees
overlapping of interests do exist in our society. – participating in the design and executions of
periodic social audits
Maintenance
It is concerned with keeping up and maintaining a willing
Social audit – a commitment to systematic assessment of and
and able work force.
reporting on some meaningful, definable domain of a company’s
activities that have social impact.
Separation
It is concerned with returning the citizen in as good shape as
possible.
Since most people do not die on the job, it is the
responsibility of the organization to meet certain requirements
of due process in separation.
4. Probationary
5. Fixed Contract Employee as settled in jurisprudence
Health, Safety and Social Welfare Provisions
Labor Code requires the employers the following:
The Constitutional and Legal Framework – First-aid medicines and equipment in the establishment
“ An ounce of prevention is better than a pound of cure.” – Must hire an RN when number of employees exceeds 50
It is the responsibility of management to become educated but not more than 200
in labor laws.
• When number of employees exceeds 200 but not more than
"Ignorance of the law excuses no one" 300, the company is required to hire a full-time RN, part-time
physician and dentist and an emergency clinic
Police power of the state = the right of the state to regulate • When the number of employees exceeds 300, the employer
labor relations for the general welfare and to maintain industrial shall hire a full-time physician, dentist, RN, as well as clinics.
peace.
Employee Compensation and State Insurance Fund
The Constitutional Basis • Tax exemptions on employees with dependents
Article II, Section 8 • Government Insurance:
The State affirms labor as a primary socio-economic force. It • GSIS (Government Security Insurance System)
shall protect the rights of workers and promote their welfare. • SSS (Social Security System)
• PhilHealth
Article XIII, Section 3 • PAG-IBIG
Protection of labor regarding:
1. Full employment Labor Relations
2. Equality of employment opportunity It is defined as the aspect or quality that holds together the
3. Rights to organization and strike social partners, labor and capital in the attainment of their
4. Security of tenure mutual goal – just and equitable pay and treatment and fair
5. Humane conditions of work return on investments.
6. Adequate compensation
7. Inclusion in the decision making Sources of conflicts in labor relations:
1. Manner by which hierarchical demands are made or
Article 211 executed
The employees have guaranteed rights to self-organization 2. Clash between management prerogatives and labor rights
3. Just share in the fruits of production
Labor Code 4. Fair return in investments, expansion and growth
1. Pre-Employment
2. Human Resources Development Program Unfair Labor Practice (ULP)
3. Conditions of Employment 1. Violates rights of workers to self-organization
4. Health, Safety and Social Welfare Benefits 2. Disrupts industrial peace
5. Labor Relations 3. Hinders promotion of healthy labor-management relations
6. Post-Employment 4. Violates civil rights of the parties
Definitions 5. ULP is a criminal offense
Employer – includes any person acting in the interest of the
employer directly or indirectly Strikes and Work Stoppages
Employee – includes any person in the employ of an employer Employees can go on strikes only on two grounds:
1. Deadlock in Collective Bargaining Negotiations
Kinds of Employees 2. Unfair Labor Practice (ULP)
1. Managerial employee
– is one who is vested with powers or prerogatives to lay Anti-Sexual Harassment Law
down and execute management policies and or hire, transfer, Any work, education or training-related sexual harassment
suspend, layoff, recall, discharge, assign, or discipline employees. committed by an employer, employee, manager, supervisor,
Kinds of employee agent of the employer, teacher, instructor, professor, coach,
2. Supervisory employee trainer, or any other person who, having authority, influence or
– is one who, in the interest of the employer, effectively moral ascendancy over another in a work or training or
recommends such management actions if the exercise of such education environment, demands, requests, or otherwise
authority is not merely routinary or clerical in nature but requires any sexual favor from other, regardless of whether the
requires the use of independent judgment. demand, request or requirement for submission is accepted by
3. Rank and File Employee the object of the said act.
– is one not falling under any of the preceding definitions of
managerial or supervisory employee. Penalties
Sexual harassment is a criminal offense and is punishable by law:
Types of Employment 1. Imprisonment of not less than 6 months
(Art. 280 of Labor Code) 2. A fine of not less than P10,000 nor more than P20,000
1. Regular 3. Plus payment for damages
2. Project
3. Casual
Four Elements
1. Organizational Objectives for the Job
Job Analysis based on the strategic HR planning
The process of obtaining information about jobs by 2. Ergonomic Considerations
determining their duties, tasks, or activities of a person holding that involves the equipment needed for employees to perform
position their jobs well e.g. proper chairs, lighting, ventilation
3. Behavioral Concerns
Sources of Job Analysis Data (Methods of Collecting Data) e.g. tardiness, absenteeism, trends outside the organization
– Interviews 4. Industrial Engineering Considerations involves the equipment
– Questionnaires needed for employees to perform their jobs efficiently
– Observations
– Diaries Industrial Engineering
field of study concerned with analyzing work methods and
Job Description establishing time standards
Statement of the tasks, duties, and responsibilities of a job Ergonomics
to be performed (a document) the process of studying and designing equipment and systems that
are easy and efficient for people to use and ensure their physical
Why important? Know who to report to; Make sure there well-being
are no overlapping tasks
Job Characteristics Model: Designing Jobs to Motivate Employees
Parts of a Job Description:
1. Job Title – Job Identification Job Characteristics Model
2. Job Statement – Brief listing of major job duties – a job design theory that purports that 3 psychological states of a
3. Essential Functions – Essential functions and responsibilities jobholder result in improved work performance, internal motivation,
4. Job Specifications – Job specifications and requirements and lower absenteeism and turnover
qualifications (business graduate, orcom skills, basic skills, etc.)
The three psychological states:
Problems with Job Descriptions: 1. experiencing meaningfulness of the work performed
– If they are poorly written, when using vague, rather than specific 2. responsibility for work outcomes
terms, they provide little guidance to the job holder. 3. knowledge of the results of the work performed (feedback)
– They are sometimes not updated as job duties and specifications
change. Job Designs to Motivate Employees
– They may violate the law by containing specifications not related 1. Job Enlargement
to job success. the process of adding a greater variety of tasks to a job
– They can limit the scope of activities of the jobholder, reducing 2. Job Rotation
an organization's flexibility. the process whereby employees rotate in and out of different jobs
3. Job Enrichment
To write Clear and Specific Job Descriptions enhancing a job by adding more meaningful tasks and duties to
Make sure to use statements that are terse, direct, and make the work more rewarding and satisfying
simply worded. The term "occasionally" is used to describe duties
that are performed once in a while. The term "may" is used in Five Factors for Enriching Jobs and Thereby, Motivating Employees
connection with duties performed only by some workers on the job. – Achievement
– Recognition
Job Specification – Responsibility
a statement of the specific knowledge, skills, and abilities of a – Performance
person who is to perform a job's needs.
4. Employee Empowerment
JOB ANALYSIS: The Cornerstone of HRM Functions granting employees power to initiate change, thereby,
encouraging them to take charge of what they do
Job Analysis -> Job Description -> Strategic HR Planning
Job Specification Workflow Analysis and Job Design Tips for Employee Empowerment:
Recruitment and Selection – Participation
Training and Development – Innovation
Performance Appraisal Process – Access to Information
Compensation Management – Accountability
Legal Compliance
Designing Work for Employee Teams (4-8 members)
Job Design a. Employee teams
An outgrowth of job analysis that improves jobs through An employee contributions technique whereby work
technological and human considerations in order to enhance functions are structured for groups rather than for individuals and
organization efficiency and employee job satisfaction team members are given discretion in matters traditionally considered
management prerogatives
Teamwork embraces the concept of synergy HRM GENERAL MODEL

Synergy
Occurs when the interaction and outcome of team members is
greater than the sum of their individual effort

Synergistic Team Characteristics:


– Support
– Listening and clarification
– Disagreement
– Consensus
– Acceptance
– Quality

Forms of Employee Teams:


1. Cross-functional Teams
members have different functions
2. Project Teams
3. Self-directed teams
members are professionals; no need for close supervision
4. Task-force teams
every member has a different task; do task together
e.g. different committees Organizational Strategy and Structure
5. Process-improvement teams Organizational strategy involves creating a plan to achieve the
improve process flow for more efficiency organization's long-term goals. This strategy is critical for it serves as a
guide towards the organization's success where priorities are established
b. Virtual teams and everyone is kept on track in the direction of the goals. Structure on
A team that utilizes telecommunication technology to link the other hand follows strategy and they must both align to be effective.
The structure defines the organizations hierarchy and answers the
team members who are geographically dispersed– often worldwide
question "Who does what?". These must be distinctly identified as to
across cultures and across time zones
avoid the duplication of roles and make sure all roles that are necessary
in performing organizational tasks to achieve specific goals are there.
Characteristics of Successful Teams This is the first step and this serves as the foundation for everything that
• A commitment to shared goals and objectives follows.
• Motivated and energetic team members
• Open and honest communication Human Resource Strategy
• Shared leadership The HR strategy is a plan on how to manage human resources.
• Clear role assignments This must be aligned with the organization's goals. All functions of HR
• A climate of cooperation, collaboration, trust, and accountability Management, the procurement, development, compensation,
• The recognition of conflict and its positive resolution integration, maintenance, and separation, should be covered by the HR
strategy. As mentioned in the Organization Strategy and Structure, there
Flexible Work Schedules are necessary roles that have to be filled in. The roles to be filled in by
employees and how to manage them are addressed in the HR strategy.
1. Flextime
Job design wherein the employee has the right to choose when the Recruiting and Selection
employee believes is the best time for them to work After the HR strategy is laid out, the organization can now
2. Compressed Workweek perform the procurement process, the recruiting and selection, in
E.g. work 40 hours a week but no need to have fixed schedule accordance with the strategy. Recruiting involves sourcing and attracting
candidates to apply for the vacant roles or positions. Selection, on the
3. Job Sharing
other hand, involves identifying which candidate is the most suitable for a
2 or 3 employees doing the same job
certain position and hiring them. This can be done through screening,
but salary is also divided among them
conducting aptitude tests, interviewing, checking references, and medical
4. Telecommuting tests, depending on the job requirement.
work from home or anywhere
* Identifying and Solving Human Resource Problems
Problems in the recruiting and selection process must be
identified. This includes having a lack of qualified candidates and
attracting qualified candidates. Selecting a suitable candidate is also a
challenge itself since this requires time and effort in making sure the right
person is chosen for the right job. Hiring the wrong person can lead to a
waste of financial resources. This, however, can be solved by expanding
the organization's reach, ensuring that the job description and
requirements are clear and precise, and by investing in an analytics
software. An analytics software can cut the time and effort needed in the turnover since there is a probability that they will be unhappy. In
selection process. addition, timing here is also important since hiring people is an
investment and they must think everything through before doing so and
ask questions such as "Must we really immediately hire someone to help
Performance Appraisal us?", "Do we have someone in the company who can do this certain
Performance appraisal is the process of evaluating an task?", and so on for them to make a wise investment.
employee's performance by comparing it to a defined criteria. The hired
employees will have to be evaluated and observed. They may be put on
probation for six months to see how they perform their job. This helps to
identify whether they are truly fit for the job and how much training they
may need to become more effective. This also helps the management to
decide whether to keep the employee or not in cases where they have
shown poor performance with no improvement.

* Identifying and Solving Human Resource Problems


Some problems in performance appraisal may include the
unconscious bias of the evaluator due to differences in values and not
being able to take into account some of the unseen work of the
employees. It is important to identify these types of problems because
these may lead to poor evaluation of the employees where their
performance becomes undervalued or overvalued. The latter may also
discourage employees from continuing to do the good things they did
which came unnoticed or encourage them to keep doing the undesirable
things they did which came unnoticed. This may be addressed by using
job analysis to develop the appraisal system, checking that it is behavior-
oriented and not trait-oriented, having multiple evaluators, having them
follow specific instructions, and having them review the results.

Training
Training is a part of the development function of HR
Management. This involves improving the effectiveness of the employees
in performing their jobs and ensuring that the gap between needs of the
organization and the skills of the employees is significantly diminished to
none or to a minimum. The type and amount of training an employee
needs should be based on the results of they performed during the
performance appraisal. Ideally, the content and delivery of training
should be specially designed to each employee.

* Identifying and Solving Human Resource Problems


It is important that problems in training be identified and
addressed to ensure the overall effectiveness of the employees.
Ineffective employees will lead an organization to be unproductive which,
in turn, results to losses. Problems come with the fact that there is no
best training technique because every individual– every employee, is
different and what works to one may not work as effectively to another.
A way to address this problem is for the ones training to improve their
people skills so they can adjust the way they deliver the training to every
employee they are assigned.

Desired Result: The right number of appropriately skilled people in the


right jobs and the right time
The result should be having "the right number of appropriately
skilled people in the right jobs and the right time." The right number of
appropriately skilled people is needed since the organization is providing
these people with monetary compensations and incentives and financial
resources are limited. It is a wise investment to pick appropriately skilled
people to carry out the jobs they have the abilities since they will be the
ones performing tasks that drive the organization towards success. In
order for them to be effective and productive, they must have the
adequate skills. Hiring inadequately skilled people or skilled people
whose abilities do not align with the jobs they are assigned in will lead to
more expenses for the training to compensate the job-skill gap and

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