HUMAN

RESOURCES
MANAGEMENT
IE 101- ENGINEERING MANAGEMENT
The Importance of HRM
1.HRM is a necessary part of the organizing function of management
- Selecting, training, & evaluating the workforce

2.It is an important strategic tool

- HRM helps establish an organization’s sustainable competitive
advantage.

3.It adds value to the firm

- High performance work practices lead to both high individual and
high organizational performance.
Examples of High-Performance Work
Practices
 HRM for Non-HR Managers:
Small vs. large organizations
● Large organizations have HR function
● Smaller organizations may rely on managers to handle
HR issues.
All managers need to be aware of federal and provincial
legislation and company policies
● Minimum wage law
● Benefits mandatory provided by law to workers such
as SSS, Pag-ibig, Philhealth, vacation leaves, sick leaves,
etc.
The HRM Process:
 Functions of the HRM Process:

01 02 03

Ensuring that the

Identifying and selecting Providing employees with
up-to-date knowledge organization retains
competent employees
and skills to do their jobs competent and high-
performing employees
 Environmental Factors Affecting HRM:
1.Labor Union
- An organization that represents workers and seeks to
protect their interests through collective bargaining.

Collective Bargaining Agreement:

-A contractual agreement between an organization and a
union, covering wage, hours, and working conditions of workers.
 Environmental Factors Affecting HRM:
2. Legislation Affecting Workplace Conditions
● Canada Labor Code/Philippine Labor Code
● Occupational Health and Safety Act
● Workplace Hazardous Materials Information System (WHMIS)
● Employment standards legislation
3.Antidiscrimination Legislation
● The Charter of Rights and Freedoms and thE Canadian Human Rights Act
● The Employment Equity Act
● Different laws prohibiting discrimination against gender, age, disability,
race, etc.
Environmental Factors Affecting HRM:
4. Economy’s Effect on the HRM Process
● lifetime employment is long gone and corporate pension plans are
crumbling
● the jobless rate will continue to increase in most European
countries
● reduced work hours, which affected employees’ pay and their skill
upgrades
● temporary or contract positions, rather than full -time jobs with
benefits
 Environmental Factors Affecting HRM:
5. Demographic trends
Four generations working side-by-side in the workplace:
● the oldest, most experienced workers (those born before 1946)
make up 6 percent of the workforce
● the baby boomers (those born between 1946 and 1964) make
up 41.5 percent of the
workforce
● Gen Xers (those born 1965 to 1977) make up almost 29 percent
of the workforce
● Gen Yers (those born 1978 to 1994) make up almost 24 percent
of the workforce
 THE HRM PROCESS
I. Human Resource (HR) Planning:-
-the process by which managers ensure that they have the right
number and kinds of people in the right places, and at the right times,
who are capable of effectively and efficiently performing their
tasks.
- helps avoid sudden talent shortages & surpluses.

Steps in HR Planning:
1.Assessing current human resources
2.Assessing future needs for human resources and developing a
program to meet those future needs
1. Human Resources Inventory:
A review of the current makeup of the organization’s
resources/employees status which usually includes information
on employees such as name, education, training, prior
employment, languages spoken, special capabilities, and
specialized skills.

HR Management Information Systems (HRMIS):

A database that tracks employees’ information for
Baileypolicy
Dupontand
strategic needs.
Job Analysis:
-an assessment that defines a job and the
behaviors necessary to perform the job;
knowledge, skills, and abilities
-requires conducting interviews, engaging in
direct observation, and collecting the self-
reports of employees and their managers Bailey Dupont
Job Description:
a written statement of what the jobholder does, how it
is done, and why it is done.

Job Specification:
a written statement of the minimum qualifications that a
person must possess to perform a given job
successfully.
2. Meeting Future HR Needs
-future HR needs are determined by the
organization’s mission, goals, and strategies.
-demand for employees results from demand for
the organization’s products or services.
-after assessing both current capabilities and
future needs, managers can estimate areas in
which the organization will be understaffed or
overstaffed.
Meeting Future HR Needs:
Staffing the Organization:
Recruitment
- the process of locating, identifying, & attracting
capable applicants to an organization
E-recruiting
- recruitment of employees through the Internet,
organizational web sites, online recruiters.
Decruitment
- the process of reducing a surplus of employees in the
workforce of an organization (includes firing, layoffs,
attrition, transfers, reduced workweeks, early
retirements, & job sharing)
Major Sources of Potential Job Candidates:
Decruitment Options:
III. Selection Process
-is the process of screening job applicants to ensure that
the most appropriate candidates are hired.
Selection: 03
-is an exercise in predicting which applicants, if hired, will
be (or will not be) successful in performing well on the
criteria the organization uses to evaluate performance
Selection errors:
-Reject errors for potentially successful applicants
-Accept errors for ultimately poor performers
Selection Decision Outcomes:
Validity & Reliability:
🡪 Validity (of Prediction)
● A proven relationship between the selection
device used and some relevant criterion for
successful performance in an organization.
- High test scores equate to high job
performance; low scores to poor performance
🡪 Reliability (of Prediction)
● The degree of consistency with which a
selection device measures the same thing
- Individual test scores obtained with a
selection device are consistent over multiple
testing instances
Types of Selection Devices:
● Application Forms
● Written Tests
● Performance Simulations
● Interviews
● Background Investigations
● Physical Examinations
Written Tests:
🡪 Types of Tests
● Intelligence: how smart are you?
● Aptitude: can you learn to do it?
● Ability: can you do it?
● Interest: do you want to do it?
Performance Simulation Tests:
Testing an applicant’s ability to perform actual job behaviors, use
required skills, and demonstrate specific knowledge of the job.
● Work sampling
Requiring applicants to actually perform a task or set of tasks
that are central to successful job performance
● Assessment centres
Dedicated facilities in which job candidates undergo a series of
performance simulation tests to evaluate their managerial
potential
Situational Interviews:
- Interviews in which candidates are evaluated on
how well they handle role play in mock scenarios
Background Investigations:
- Verification of application data
- Reference checks
● Lack validity because self-selection of references
ensures only positive outcomes
Physical Examinations:
- Useful for physical requirements
Realistic Job Interviews:
The process of relating to an applicant
both the positive and the negative aspects
of the job.
● Encourages mismatched applicants to
withdraw
● Aligns successful applicants’
expectations with actual job conditions,
reducing turnover
Tips for Managers:
Some Suggestions for Interviewing

● Structure a fixed set of questions for all applicants.

● Have detailed information about the job for which applicants are
interviewing.
● Minimize any prior knowledge of applicants’ background,
experience, interests, test scores, or other characteristics.
● Ask behavioural questions that require applicants to give detailed
accounts of actual job behaviours.
● Use a standardized evaluation form.
● Take notes during the interview.
● Avoid short interviews that encourage premature decision making
Questions Not to Ask Job Candidates:
●● About name changes; maiden name
For birth certificate, baptismal records, or about age in general
●● About pregnancy, child bearing plans, or child care arrangements
Whether applicant is single, married, divorced, engaged, separated,
widowed, or living common-law
●● About birthplace, nationality of ancestors, spouse or other relatives
Whether born in Canada
●interview
For photo to be attached to application or sent to interviewer before

● About religious affiliation, church membership, frequency of church

attendance
●●Whether the applicant drinks or uses drugs
Whether the applicant has ever been convicted
●● Whether the applicant has ever been arrested
Whether the applicant has a criminal record
● About the applicant’s sexual orientation
Quality of Selection Devices as Predictors
IV. Orientation
- the introduction of a new employee into his/her job
and the organization.

● Work-unit orientation
- Familiarizes new employee with work-unit goals
- Clarifies how his or her job contributes to unit
goals
- Introduces employee to his or her co-workers
● Organization orientation
- Informs new employee about the organization’s
objectives, history, philosophy, procedures, and rules
- Includes a tour of the entire facility
V. Training
- An organized activity aimed at imparting
information and/or instructions to improve the
recipient's performance or to help him or her
attain a required level of knowledge or skill.
Types of Training:
●
● Interpersonal skills
Technical skills
●
● Business skills
Mandatory skills
●
● Performance management skills
Problem solving/decision making skills
● Personal skills
Employee Training Methods
Occupations of Employees Who
Receive Training
How Employees Train Themselves
VI. Performance Management System:

- A process establishing performance

standards and appraising employee
performance in order to arrive at
objective HR decisions and to provide
documentation in support of those
decisions.
Performance Appraisal Methods:
●
● Written Essays
Critical Incidents
●
● Graphic Rating Scales
Behaviourally Anchored Rating Scales
(BARS)
●
● Multi-person Comparisons
Management by Objectives (MBO)
● 360-Degree Feedback
Advantages and Disadvantages of
Performance Appraisal Methods
VII. Compensation & Benefits
● Benefits of a Fair, Effective, and Appropriate
Compensation System
- helps attract and retain high-performance
employees
- impacts on the strategic performance of the firm
● Types of Compensation
- Base wage or salary
- Wage and salary add-ons
- Incentive payments
- Skill-based pay
● Base wage or salary
- is a fixed amount of money paid to an
employee by an employer in return for
work performed and does not include
benefits, bonuses or any other potential
compensation.
● Wage & salary add-ons
- includes the employee’s base wage or
salary plus overtime pay, night shift
differentials, working on
weekends/holidays, on call pay, etc.
●- isIncentive payment
a monetary gift provided to an employee
based on performance, which is thought of as
one way to entice the employee to continue
delivering positive results. It may come in the
form of bonus, profit sharing or commission.
●- Skill-based pay
rewards employees for the job skills and
competencies they can demonstrate. Under
this type of pay system, an employee’s job
title doesn’t define his/her pay category, skills
do.
Variable pay
- a pay system in which an individual’s
compensation is contingent on performance.
It is something that is a part of an employee’s
salary which depends on the employee’s and
companies performance.
Factors that Influence
Compensation & Benefits:
VIII. Career Development
● What is a career?
- a sequence of positions held by a person
during his or her lifetime.
● Career Development
- Provides for information, assessment, &
training
- Helps attract and retain highly talented
people
● Boundaryless Career
- A career in which individuals, not
organizations, define career progression,
organizational loyalty, important skills, and
marketplace value
Top Ten (10) Job Factors for College
Graduates:
1. Enjoying what they do
2. Opportunity to use skills and abilities
3. Opportunity for personal development
4. Feeling what they do matters
5. Benefits
6. Recognition for good performance
7. Friendly co-workers
8. Job location
9. Lots of money
10. Working on team
 Tips for
Managers:
Some
suggestions
for a
successful
management
career
Contemporary Issues in Managing
Human Resources:
1. Managing downsizing
- is the planned elimination of jobs in
an organization which can be due to
the need to cut costs, declining market
share, overaggressive organizational
growth.
● Provide open and honest
communication
● Reassure survivors
2. Managing workforce diversity
- workforce diversity refers to the
variety of differences between people
in an organization. It encompasses
race, gender, ethnic group, age,
personality, cognitive style, tenure,
organizational function, education,
background, etc.
●● Recruitment for diversity
Selection without discrimination
● Orientation and training that is
effective
3. Sexual Harassment
- defined as any unwanted action or activity
of a sexual nature that explicitly or implicitly
affects an individual’s employment,
performance, or work environment.
- the Equal Employment Opportunity
Commission (EEOC) defines sexual
harassment as the behaviour marked by
sexually aggressive remarks, unwanted
touching and sexual advances, requests for
sexual favours, or other verbal or physical
conduct of a sexual nature, which can occur
between members of the opposite sex or of
the same sex.
●harassment
Educate all employees on sexual
matters
●fellow
The key is being attuned to what makes
employees uncomfortable—and if you
don’t know, then you should ask.
Workplace Romances:
● Educate employees about the potential for
sexual harassment when coworkers stop
dating
● Discourage workplace romances and
require supervisors to report any such
relationships to the HR department
4. Work-Life Balance
- Employees have personal lives that they don’t
leave behind when they come to work.
- Organizations have become more attuned to their
employees by offering family-friendly benefits such
as:
● On-site child care
● Summer day camps
● Flextime
● Job sharing
● Leave for personal matters
● Flexible job hours
THANK YOU
FOR YOUR ATTENTION