Human Resource Management

HR Planning
- process of devising plans, strategies, and tools to provide the right number of people
with the right skills and qualifications at the right time.
Employee Code of Conduct
- defines acceptable employee behaviour. An employee should sign for his/her
acceptance of the code of conduct because it serves as a legal agreement between the
employee and the company.
- Since the ECC is a legal agreement, it is imperative that a professional HR practitioner
and a lawyer should read the contents of the handbook before its implementation.
Objectives of ECC
- To maintain peace and harmony among employees.
- To avoid litigation and lawsuits for wrong decisions on suspension, termination.
- To promote teamwork and transparency on all levels of the company’s organizational
structure.
Common Contents of ECC
- Prohibition of illegal activities such as gambling, smoking, or drinking.
- Prohibition of discrimination (gender, race, religion, and civil status).
- Sexual Harassment
- Confidentiality of expectations such as non-disclosure of confidential information.
- Dress code and appearance.
- Punctuality and absenteeism (tardiness and absences).
- Procedure for sick and emergency leaves.
- Sanction for each violation.
Employee Discipline
- It is usually a procedure that corrects or punishes an employee when one of the rules of
the company is violated.
- It enables employees to conform to established standards of performance and
behaviour.
Common Employee Violations
- Personal habits of employees
o These are habitual traits that may seem petty, but if they are done most of the
time without apparent justifiable reason or excuse, may affect company
productivity (tardiness, absenteeism non-wearing of the company uniform,
substance abuse and intoxication).
 - Incompetence
o This denotes the non-performance of assigned duties and responsibilities, such
as not submitting reports on time or underperforming.

- Misconduct
o This involves fraud, malversation of funds, deceit, and dishonesty, violation of a
rule, sleeping while on duty, and sexual harassment.
Positive Discipline
- Encourages employees’ participation by allowing them to willingly conform to the
company policies and code of conduct.
Negative Discipline
- Focuses on punishment. This may include demotion, suspension, and termination.
- While it is true that punishment is anathema to employees, negative discipline is used in
severe forms of employee violations (physical violence, sexual harassment, theft).
Positive Discipline Approach (Harvey and Sims, 2005)
- Identify the problem.
- Analyze the severity and seriousness of the problem.
- Discuss the problem/issue.
- Document the discussion.
- Follow up on the correction.
Training and Development
- Field concerned with organizational activity aimed at bettering the performance of
individuals and groups in organizational setting.
- Refers to organized learning activities in the organization to improve performance
and/or personal growth for the purpose of improving the job, the employee and the
organization.
- Known by several names including employee development, human resources learning
and development.
Reasons for Employee Training and Development
- When a performance appraisal indicates performance improvement is needed;
- To benchmark the status of improvement so far in a performance improvement effort.
- As part on overall professional development program;
- As part of succession planning to help an eligible employee for a planned change in the
organization.
- To train about a specific topic such as computer skills, quality assurance,
communications, supervisory, customer service, human relations, labor relations among
others.
Benefits from Employee Training and Development
- Increased job satisfaction.
- Increased employee motivation.
- Increased effectiveness in processes, resulting in financial gain.
- Increased capacity to adapt to new technologies and methods.
- Reduced employee turnover (since training increases job satisfaction and employee
morale and motivation, enhances career growth, employee turnover is minimized).
- Enhanced company image (e.g. conducting customer service training).
Empowering Your Employees
Reactive Model:
Stimulus ► Response
Proactive Model:
Stimulus ►Freedom to Choose ► Response
▼
Independent Will Self – awareness
Conscience Imagination
Proactive = Empowered
Proactive Reactive
Do not blame people or circumstances…we Have alibis, excuses, explanations…they
do what we have chosen. blame.
Own their lives. Circumstances control them.
Produce results. Circumstances dictate what they feel or do.
Create internal conditions of happiness and
productivity.
Goals of Personal Empowerment:
- Accomplishing what you want.
- Actualizing your most important values.
To be EMPOWERED is to:
- Assume authority.
- Accept responsibility.
- Make a choice.
UNEMPOWERED Persons:
- End up as losers.
- Believe they are victims of circumstances of bad luck or fate.
The empowered person is internally oriented, assumes responsibility for whatever
consequences will arise as a result of his/her decisions and actions. Personally empowered
individuals make things happen. They discern reasons from outcomes, evaluate self in ways
that are encouraging, and envision success.
The empowered person has:
- An open and healthy world view.
- A positive and accurate self-concept.
- Sees self, making an impact in some real way.
- Sees self having the ability to do some things.
- Sees self progressing in life, improving somehow.
An empowered person is effective.
- He make things happen.
- He creates results.
Winner Loser
Always part of the answer. Always part of the problem.
Always has a program. Always has an excuse.
Says “Let me do it.” Says “That’s not my job.”
Sees an answer to every problem. Sees a problem to every answer.
Says “It may be difficult but it is possible.” “It is difficult.”

The labor union movement in the Philippines has been established since the American regime.
These are big, medium, and small size companies that are unionized.
Notable companies:
- San Miguel Corporation.
- PLDT
- Meralco
- Caltex (now Chevron)
- Petron
- BPI
Some of these companies have multi-millions.
Separate unions for supervisors, office employees, sales people, refinery, depot, professional
and technical staff.

Pay and Grade Structures

 - Enable an organization to devise a concrete framework that determines the levels of
compensation of the position of jobs in the corporate hierarchy. They enable employees
to have a better picture of career and pay opportunities.

o Grade Structure:
 Determines the grade hierarchy and job levels depending on difficulty.

o Pay Structure:
 Defines the different pay levels for jobs or groups or group of jobs. This is
determined by job evaluation and market rate data. In some cases, it is
negotiated during the final interview before the job acceptance.
Common Modes of Payment
1. Payment for time worked: majority of the employees are paid on the basis of time
worked. Wages are given to those who are paid on an hourly rate, while salary is a term
used to refer to those who are paid on a monthly basis. Nevertheless, both wage and
salary are terms which denote compensation.
a. Adjustments on payments for time worked:
i. Across the board increase: pay adjustments are provided to all
employees with the same rate regardless of rank.
ii. Merit Increase: they are given to employees on the basis of performance.
iii. Cost of Living Allowance (COLA): given to employees to help them cope
with the rising standard of living, inflation rate and other prevailing
economic conditions.
iv. Seniority Pay: given to employees on the basis of their length or number
of years of service in the company.
2. Flat Rate or CBA Negotiated Rates: these are very common to unionized firms with
negotiated rates based on CBA. Firms with flat rates do not consider skills and seniority
as factors in giving compensation. Additional incentives are given instead to those who
reach and exceeded their sales targets.
Compensation through Incentives
These are payments based on output.
1. Merit Pay: given for outstanding performance usually after the results of performance
evaluation are released.
2. Piece Rate Pay: given to employees who are paid per piece (e.g. seamstress in a garment
factory). Wages are given based on the number of pieces multiplied by the rate per
dress.
3. Commission: based on the achieved sales quota. Companies usually pay their sales
associates on a commission basis. Direct Selling companies usually pay their sales
dealers on a commission basis.
 4. Group Incentives: given to a team that serves a particular company and meets a
particular sales target. The group receives the commission for a job well done. This is
based on group efforts. All the members of the team are rewarded.
Payments based on Knowledge or Credentials:
Continuous Learning is one of the motivation for an employee to attend seminars and
conferences related to his field of expertise. Additional knowledge based on his attendance to
these conferences improves his ranking. On the other basis of credentials, lawyers and doctors
usually need to pass licensure examinations.
1. Executive Payments: given to CEOs, chairperson of the BOD. High since these key people
are responsible for the success of their respective organizations.
2. Special Payments: additional compensations earmarked for special cases.