UNIVERSIDAD DE MANILA

ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT
(Written Report)

Guarte, Marjorie E.
Mendoza, Michelle M.
Calasin, Abigael S.
Patricio, Vanessa Joy
Larita, Adrianne Mae R.
Santiago, Rachelle
David, Lorielle

Mrs. Mary Grace Daguiso

Professor
 UNIVERSIDAD DE MANILA
ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

Definition and Concept of HRM

- 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.
- HRM encompasses 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 function.
SCOPE OF HRM
The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to
define it concisely. However, we may classify the same under following heads:
 HRM in Personnel Management: This is typically direct manpower
management that involves manpower planning, hiring (recruitment and
selection), training and development, induction and orientation, transfer,
promotion, compensation, layoff and retrenchment, employee productivity.
The overall objective here is to ascertain individual growth, development
and effectiveness which indirectly contribute to organizational development.
It also includes performance appraisal, developing new skills, disbursement of
wages, incentives, allowances, traveling policies and procedures and other related
courses of actions.
 HRM in Employee Welfare: This particular aspect of HRM deals with
working conditions and amenities at workplace. This includes a wide array
of responsibilities and services such as safety services, health services,
welfare funds, social security and medical services. It also covers
appointment of safety officers, making the environment worth working,
eliminating workplace hazards, support by top management, job safety,
safeguarding machinery, cleanliness, proper ventilation and lighting,
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ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

sanitation, medical care, sickness benefits, employment injury benefits,

personal injury benefits, maternity benefits, unemployment benefits and
family benefits.
It also relates to supervision, employee counseling, establishing harmonious
relationships with employees, education and training. Employee welfare is about
determining employees’ real needs and fulfilling them with active participation of
both management and employees. In addition to this, it also takes care of canteen
facilities, creches, rest and lunch rooms, housing, transport, medical assistance,
education, health and safety, recreation facilities, etc.
 HRM in Industrial Relations: Since it is a highly sensitive area, it needs
careful interactions with labor or employee unions, addressing their
grievances and settling the disputes effectively in order to maintain peace
and harmony in the organization.
It is the art and science of understanding the employment (union-management)
relations, joint consultation, disciplinary procedures, solving problems with mutual
efforts, understanding human behavior and maintaining work relations, collective
bargaining and settlement of disputes.
The main aim is to safeguarding the interest of employees by securing the highest
level of understanding to the extent that does not leave a negative impact on
organization. It is about establishing, growing and promoting industrial democracy
to safeguard the interests of both employees and management.
The scope of HRM is extremely wide, thus, cannot be written concisely. However,
for the sake of convenience and developing understanding about the subject, we
divide it in three categories mentioned above.
IMPORTANCE OF HRM
It is a fact that to thrive in the chaotic and turbulent business environment, firms
need to constantly innovate and be “ahead of the curve” in terms of business
practices and strategies. It is from this motivation to be at the top of the pack that
HRM becomes a valuable tool for management to ensure success.
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ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

 To maintain quality of work life

Quality of work life is the perception of employees regarding the
relationship between working condition with management. Simply, it is the
relationship between employees and total work environment. Quality of
work life is concerned with the employee’s perception of physical as well as
psychological wellbeing at workplace and it can be obtained by maintaining
work autonomy, work freedom, job recognition, belongingness, rewards, etc.
 To increase productivity and profit
Human resource management ensures right quality and quantity of
personnel in workplace, apart from which, it creates opportunities to
facilitate and motivate individual and group of employees to grow and
advance their career. Motivated employees work hard to meet their personal
career goal which directly influences productivity of organization.
Minimizing cost and maximizing profit is the essence of productivity.
 To produce employees who are easily adaptable to change
Human resource management performs various functions, among
which training and development of employees is one of the vital ones.
Training and development programs keep employees updated with skills
necessary to adjust with alteration of organization’s environment, structure
and technology.
 To match demand and supply of human resource
Human resource management probes existing human resource in
certain interval of time to identify if the company has adequate number of
workers or not. In case when company has inadequate human resource,
human resource management performs activities like recruitment and
selection to balance the need. In the same way, it lay-off inefficient
employee in case when the company has excessive employees.
 To create a feeling of belongingness and team spirit in the employee
Human resource management designs job on the basis of teamwork.
As teamwork demands contribution from every team member, HRM focuses
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COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

on making each and every employee feel valued so that employee

contributes best from their side.
 To sustain business in the market
Human resource management makes sure that the company has the
best employee because promising employees are capable of taking their
company ahead in the race by delivering excellent results. This guarantees
organization’s success and stability in future.
 To resolve conflicts
In any company, either big or small, conflicts may arise between any
parties/group. Conflicts are inevitable and they should not be ignored.
Human resource management acts as a consultant to sort out such conflicts
timely and conduct other organizational activities smoothly.
 To develop corporate image
Every company should maintain good public image in order to sustain
in the market. Any individual would like to work for companies which are
known for moral and social behavior. On the other hand, companies that do
not treat their employees in a good manner can run through employee
deficiency and even collapse.
In conclusion, the practice of HRM needs to be integrated with the overall
strategy to ensure effective use of people and provide better returns to the
organizations in terms of ROI (Return on Investment) for every dollar or rupee
spent on them. Unless the HRM practice is designed in this way, the firms stand to
lose from not utilizing people fully. And this does not bode well for the success of
the organization.
STRATEGIC HRM
Strategic Human Resource Management is the practice of aligning business
strategy with that of HR practices to achieve the strategic goals of the organization.
The aim of SHRM (Strategic Human Resource Management) is to ensure that HR
strategy is not a means but an end in itself as far as business objectives are
concerned.
 UNIVERSIDAD DE MANILA
ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

The Way SHRM works

If we take real world examples, many organizations in recent times have
dedicated “people managers” whose sole function is to look after the enabling and
fulfilling needs of the resources. This is a marked change from treating people as
just resources to treating people as assets.
Conclusion
The times when management could arbitrarily dictate terms to the
employees and tread upon their rights is something that is not relevant anymore.
With the ballooning of the white-collar workforce, it becomes necessary for
organizations to pay more attention to the needs of the employees more than ever.
Finally, the fact that organizations derive their strategy from employees instead of
imposing strategy upon them is the essence of SHRM
HISTORY OF HRM
HRM appears to have its origins in the United States in the 1950s but it did not
gain wide recognition until the beginning of the 1980s and in the U.K. until the
mid to late 1980s. HRM begins when welfare officers (sometimes called ‘welfare
secretaries’) came into being. They were women and were involved with the
protection of women and girls. Their creation was a reaction to the:

 The harshness of industrial conditions

 Pressures arising from the extension of the franchise
 Influence of trade unions and the labor movement
 Campaigning of enlightened employers, often Quakers, for what was called
‘industrial betterment’
As the role grew there was some tension between the aim of moral protection of
women and children and the need for higher output.
Today’s HR activities
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ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

In today’s HR world we ensure that we cover a number of specialist disciplines,

including:
 Diversity (plus other aspects of employment law)
 Reward (including compensation, benefits, pensions)
 Resourcing (such as recruitment, disciplinary and redundancy processes)
 Employee relations (including performance and absence management)
 Organization development and design
 Learning and development
 Correcting systems, policies & procedures
These disciplines ensure that your business is working to best practice, within the
law and making maximum use of its team. This offers financial and operational
benefits to the business and team.
HRM FUNCTION
The functions of human resource management are designed to recruit potential
employees, hire and train them, and then support them in improving their
performance so they can reach their full potential and help the organization achieve
its targets.

1. Recruitment and hiring

One of the most well-known functions of human resource management is
recruitment and hiring. To remain competitive in the industry, businesses
need to attract and retain top talent. 

2. Onboarding and ongoing training and development

Once a company hires employees, it’s vital to properly onboard and train
them so they have the tools to excel in their roles. Human resource
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ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

management provides onboarding for new employees, which can include

sharing the company mission, vision, and values, in addition to internal
policies and procedures. It may also include safety training, depending on
the workplace.

3. Managing employee and employer relationships

A company’s success relies on its people, so human resource management
must focus on fostering healthy relationships among all levels of
employees. 

4. Creating a rewarding company culture 

One of the most overlooked functions of human resource management is
developing an engaging company culture. Keeping employee morale high
doesn’t happen only during team lunches or after-work drinks. It happens
through the ethos of the company — the mission, vision, and core values. 

5. Overseeing disciplinary action

A difficult aspect of human resource management is disciplining employees
when required. HR professionals must have a disciplinary process in place
and must ensure all employees are aware of it as part of their onboarding. 
FUNCTIONS OF HR MANAGER
HR manager and analyzes how he or she can make a positive contribution to
the organization and add value to the process. HR manager is responsible for the
hiring, training, appraisals, payroll, and exit interviews.
Entry to Exit: Managing the Employee Lifecycle
Usually, the HR manager does not personally do this and outsources this function
to a placement consultancy. The next step is the interview stage after the shortlists
are done and this is an activity where the HR manager either delegates the task of
assessing the potential recruits to the staffing team or does the job personally. After
the interview stage is over, the important task of fixing the salary and benefits of
the successful candidates has to be done. This is usually the time when the HR
 UNIVERSIDAD DE MANILA
ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

manager plays a critical role as he or she has to determine the fit between the role
and the candidate and decide on the quantum of salary and benefits that is
appropriate to the role and after examining the budgets for the same.
The Appraisal Process and the Exit Interviews
The HR manager is also involved in conducting the last stage of appraisals or
evaluating the appraisals. In recent years, the trend is more towards the latter where
the HR manager in charge of the business unit evaluates the appraisals instead of
participating in the process directly. This is done in a manner to determine the
quantum of pay hike or bonuses keeping in mind the same principles that were
discussed in the hiring activity.
The last activity that the HR manager is involved in is conducting the exit
interviews when employees leave the organizations. This is usually done on the
last day of the employee’s stay in the organization and this process consist of a free
and frank discussion on what the employee feels about the organization and why
he or she is leaving the organization.
HR POLICIES AND PROCEDURE
What are HR policies and procedures?
Human resource policies are formal rules and guidelines that businesses put in
place to manage their employees. HR procedures, on the other hand, are step-by-
step instructions that specify what actions should be taken to comply with these
policies. Defining these policies and procedures is one of the core functions
of human resource management.
The benefits of having clear and comprehensive HR policies include:
 HR policies provide legal protection to your company
 They transparently communicate the conditions of employment
 They set employee expectations with regard to their career growth
 They help you address employee grievances and disputes
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ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

 They speed up the decision-making process on various HR matters

 They help ensure all employees are treated equally and fairly
 They help create a safe and healthy working environment
The following are the various HR procedures:
1. Human resource planning (Recruitment, Selecting, Hiring, Training,
Induction, Orientation, Evaluation, Promotion and Layoff). - Generally, we
consider Human Resource Planning as the process of people forecasting.
Right but incomplete! It also involves the processes of Evaluation,
Promotion and Layoff.
Recruitment: It aims at attracting applicants that match a certain Job criteria.
Selection: The next level of filtration. Aims at short listing candidates who are the
nearest match in terms qualifications, expertise and potential for a certain job.
Hiring: Deciding upon the final candidate who gets the job.
Training and Development: Those processes that work on an employee onboard
for his skills and abilities upgradation.
2. Employee remuneration and Benefits Administration - The process involves
deciding upon salaries and wages, Incentives, Fringe Benefits and
Perquisites etc. Money is the prime motivator in any job and therefore the
importance of this process. Performing employees seek raises, better salaries
and bonuses.
3. Performance Management. - It is meant to help the organization train,
motivate and reward workers. It is also meant to ensure that the
organizational goals are met with efficiency. The process not only includes
the employees but can also be for a department, product, and service or
customer process; all towards enhancing or adding value to them.
4. Employee Relations. - Employee retention is a nuisance with organizations
especially in industries that are hugely competitive in nature. Though there
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ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

are myriad factors that motivate an individual to stick to or leave an

organization, but certainly few are under our control.
EMERGING ROLE OF HRM
Human resource management role had so many changes since the pandemic
happened in our world. There are new trends or emerge in Human resource
management in these days. This is what we called the after effect of the pandemic,
it have left a paradigm shift everywhere. So, HR industry has to bring new working
model to practice that maximizes productivity and increases flexibility and
efficiency simultaneously. Human resources changing its structure everyday in
accordance with the changes in technology, People should quickly adopt its
changes to be able to keep up with changes that happening now and also to grow
and develop.
1. Hybrid Structure
- The personnel groups or human resources had hybrid structure or hybrid culture.
HR encourages employees to do this kind of work environment, which employees
blend to virtual and in person working arrangements. Changes start since the
pandemic, but still, we are in the same situation so that this kind of working
arrangement continues to play.
2. Global expansion on the rise
- Shifting your work into the global market remote working is an initial step. With
the changing times and technology the trends in HRM have taking turn too, and
the inauguration of a business in foreign lands is becoming an easy one.
Furthermore, governments uplifting strict policies in this post pandemic era to
support the businesses too.
3. Employee experiences take precedence
- Employees today don’t just want a good paycheck but a quality culture and
healthy work environment as well. As a part of trends in HRM, a good
remuneration retains an employee, and a qualified environment and experience
assist in the choice too. HR leaders should bring about methods to encourage
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ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

positive workforce health, making the employees more flexible to changes and
disruptions.
4. Analytics gaining front seats
- With no physical human contact, tracking and measuring the work and employees
became strenuous, especially when the workforce is spread throughout the globe.
Analytics is said to play an impacting role in offering information for decision-
making.
5. A surge in monitoring the employees
- With the growing number of hybrid workers, managers are often unable to
scrutinize every single employee and their work. The lack of personal interaction
led to a surge in employee monitoring techniques that gave birth to yet another set
of trends in HRM. Keeping track of work and performance, attendance, and leaves,
are just a portion of employee monitoring practices.
6. Automation of everyday tasks
- To give precedence to high-value and productive workings, HR leaders can
leverage AI-powered solutions to automate their daily tasks that were carried out
manually. Practices such as screening, sourcing talents, onboarding, keeping check
of attendance, and a lot more now can be carried out by the systems in this tech-
driven world.
7. Augmenting the hiring process
- With their assistance, employers can now manage to select quality candidates for
relevant positions out of the ample talent pools available. Solutions such as resume
screening choose explicit candidate profiles, subsequently ensuing in higher work
performance and enhanced productivity. And swiftly these solutions became the
trends in HRM as well. The pandemic is a major reason behind the changes in how
the workforce works, but it also opened the door for new opportunities and talents
from all over the globe, without emphasizing features like facilities, overhead and
administrative costs. The new trends in HRM certainly transformed the traditional
methods and made high-quality employee experience the center of attention.
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ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

ROLE OF HR EXECUTIVES
An HR executive is, at the most basic level, the advocate between employee and
employer. They are responsible for keeping both informed and happy in order to
improve business outcomes. The HR executive or team are in charge. It includes:
- Recruiting
- Hiring
- Onboarding and training
 It is the HR executive’s job to understand the company and its needs well
enough to draw up recruitment material, market openings in the right
channels, and monitor the recruitment process. This is an involved process
that requires a level of skill and focus as the HR executive has to understand
the nuances of the position as well as the rest of the job market that is
competing for the same recruit. This will involve handling personal data and
applications but will also include all onboarding paperwork that needs to be
processed for a new hire.
- Administration of pay and benefits
 Although it would seem like a more appropriate job for accounting, payroll
falls to HR. It is the HR executive’s task to calculate or verify hours on
timesheets and make sure all employees are paid the right amount at the
right time. Along with salaries and wages, HR also works out taxes,
pensions, and other benefits that need to be included in payroll. They also
handle expenses, raises, and bonuses.
- Liaison between employees and employers
- Ensuring safety of workers
 Certain laws govern health and safety in a lot of settings, and most
companies will have their own policies in place as well. The HR executive
will be responsible for reviewing health and safety procedures and ensuring
they are being followed. The HR executive might also need to defend health
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ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

and safety decisions to management, especially if they will cost the company
more money. This means the HR executive needs to be well versed in
standard health and safety rules and regulations and needs to have a deep
understanding of what happens in all departments of the business.
- Ensuring legal requirements for workers are in place and upheld
- Disciplinary action
 HR departments and executives are often represented as only looking out for
management and not for the staff because it is their responsibility to carry
out disciplinary action. The HR executive takes on the role of investigating
the root of the action requiring discipline and can also offer employees
alternate ways to handle problems. The HR executive needs to have a strong
enough relationship with the company, including both managers and
employees, to know what is best for everyone and when a single staff
member is throwing off the team.
- Firing or handling resignations
 Knowing what an HR executive does will help you hire the right person for
your business. A lot of small businesses feel there is no need for HR,
especially if they are trying to keep to a tight budget. But HR is invaluable
and plays an important role in the health of the company.
CHALLENGES OF HR PROFESSIONALS
1. Identifying and hiring candidates for open jobs
Thirty-six percent of respondents claimed recruiting and identifying the right job
applicant was the biggest challenge. An HR professional needs to be adept at
finding and securing the best hires, even when the job market is in the candidates’
favor.
They must be resourceful and know how to locate talent, beyond just placing job
ads. At the same time, they need to be an expert at marketing their companies to
potential employees, so the most skilled applicants are eager to join their team.
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ERMITA MANILA
COLLEGE OF BUSINESS ADMINISTRATION
BSBA MAJOR IN ECONOMICS

2. Conducting employee terminations or layoffs

Since letting a worker go is usually an emotionally draining process, it's no
surprise that 26 percent of HR professionals claimed this to be the most
challenging part of their jobs. Also, the legal issues to consider can be particularly
stressful for HR workers because one misstep in the termination process can lead
to a time-consuming and expensive lawsuit for the company. Knowing how to
conduct effective and insightful exit interviews can help identify reasons a business
loses employees and lays the groundwork for a plan to help improve retention in
the future.
3. Managing benefits and perks programs
Health insurance, 401k plans, disability, paid vacation time, and a company
benefits and perks program can be extensive and complex. Twenty-three percent of
HR professionals felt that managing these programs was the most challenging part
of the job. Often, these programs include hidden perks such as subsidized training,
leaves of absence or seasonal perks such as flexible hours in the summer. Casual
dress codes and birthday celebrations may not seem complicated, but they have the
potential to start an administrative snafu if not properly implemented. When HR
staff members see a new employee perk being implemented, they have to look
ahead to the potential impact and give it a thumbs up or thumbs down, which
doesn't always cast them in the most favorable light.
4. Ensuring internal and external compensation equity
The pressure is on the HR team to ensure compensation is competitive. The burden
of making sure that a company's workers are not lured away by better salaries,
impressive titles or attractive perks rests on the shoulders, at least partially, of
human resources. As a result, it’s no surprise that 14 percent of HR professionals
cited compensation equity as their top challenge. Employers are invested in
improving employee retention by promoting their top performers and
implementing raises, bonuses and fringe benefits. The company relies on human
resources to help them do this in the most cost-effective way possible. Regularly
benchmarking salaries using tools like the most recent Robert Half Salary Guide
can give a company an edge.