INTRODUCTION TO HUMAN RESOURCES  A SHARED SERVICES APPROACH
MANAGEMENT  Shared services are support functions that are used by
 HUMAN RESOURCE MANAGEMENT (HRM)
 A relatively new approach to managing people in any
organization
 The process of acquiring, training, appraising, and
compensating employees, and of attending to their
labor relations, health and safety, and fairness
concerns.
 It is defined as the strategic approach to managing
employment relations which emphasizes that
leveraging people’s capabilities is critical to achieving
sustainable competitive advantage, this being achieved
through a distinctive set of integrated employment
policies, programs, and practices.
 It is associated with personnel management (strategic
planning and cultural change) and employment
relationship (people centered values; trust,
commitment, involvement and collaboration)
 GOALS OF HRM (GUEST, 1989)
a) Strategic Integration
- To integrate HRM issues into their strategic plans,
to ensure that the various aspects of HRM cohere
and for line managers to incorporate an HRM
perspective into their decision-making.
b) High Commitment: Flexibility
- Behavioral commitment & attitudinal commitment
to pursuing goals and strong identification with the
enterprise
c) High Quality
- Delivering top-notch performance and excellence
should be present in every aspect of the
organization
 CHARACTERISTICS OF HRM
1) To achieve strategic fit or integration between HR and
business planning; the HR policy should be formulated
at the strategic level; vertical integration
2) The development of mutual supporting HR policies
and practices; horizontal integration
3) Orientation towards commitment
4) The treatment of people as assets rather than costs;
human capital
5) Unitarist approach to employee relations; no inherent
conflict of interest between employers and employees.
 FEATURES OF HR MANAGEMENT
 Inherent Part of Management
 Pervasive Function
 Basic to all Functional Areas
 People-Centered
- Blue-collar workers (Working on machines and
engaged in loading, unloading, etc.)
- White-collar workers (Clerical Employees,
Managerial and Non-managerial personnel,
professionals)
 Personnel Activities or Functions
 Continuous Process
 Based on Human Relations
 SHARED RESPONSIBILITY FOR HRM
 Centralization and decentralization refer to the
degree to which the authority to make decisions
 Centralized: implies the existence of an HR officer or
department with authority over (or advisory input to) all
personnel management tasks in the organization.
De-centralized: implies the delegation to line
managers and team leaders of the authority for
personnel management tasks affecting their own staff
and activities.
many different line departments or units in an
organization.
 A Shared Service Unit (SSU) is a centralized,
dedicated provider of such services to internal
customers - on a quasi-'outsourced' basis.
 TWO FUNCTIONS OF HUMAN RESOURCE
MANAGEMENT
1) MANAGERIAL FUNCTIONS
o Planning – steps taken in determining in advance
personnel requirements, personnel programs, policies,
etc.
o Organizing – organizing the operative functions by
designing the structure of relationships among jobs,
personnel, and physical factors
o Directing – concerned with the initiation of organized
action and stimulating the people to work.
o Controlling – provides basic data for establishing
standards, and makes job analysis and performance
appraisal.
2) OPERATIVE FUNCTIONS
o Procurement of Personnel - obtaining of the proper
kind and number of personnel necessary to
accomplish organizational goals.
o Development of Personnel - increasing skills of the
employees necessary for proper job performance
through training.
o Compensation to Personnel - determination of
adequate and equitable remuneration of personnel for
their contribution to the organization's objectives.
o Maintaining Good Industrial Relations - intended to
reduce strife, promote industrial peace, provide fair
deals to workers, and establish industrial democracy.
o Record Keeping - collects and maintains information
concerning the staff of the organization.
o Personnel Planning and Evaluation - evaluation of
performance, personnel policy of an organization and
its practices, personnel audit, morale, survey, and
performance appraisal.
HR PROCESS (ARMSTRONG, 2009)
1) Strategic HRM
2) Policy making
3) Competency, job and role analysis
4) Change management
5) Knowledge management
SIX MAIN COMPONENTS / PILLARS OF HRM
1) DISTRIBUTED HR
- tasks are being redistributed from a central HR
department to the company’s employees and line
managers
2) STRATEGIC HR
- Strategic Human Resource Management –
Formulating and executing human resource
policies and practices that produce the employee
competencies and behaviors the company needs
to achieve its strategic aims.
- Three-step sequence of Strategic HR: Set the
firm’s strategic aims → Pinpoint the employee
behaviors and skills we need to achieve these
strategic aims → Decide what HR policies and
practices will enable us to produce these
necessary employee behaviors and skills.
3) PERFORMANCE
- HR Department Lever: The HR manager ensures
that the human resource management function is
delivering services efficiently.
 - Employee Costs Lever: The HR manager takes a
prominent role in advising top management about
the company’s staffing levels, and in setting and
controlling the firm’s compensation, incentives, and
benefits policies.
- Strategic Results Lever: HR manager puts in
place the policies and practices that produce the
employee competencies and skills the company
needs to achieve its strategic goals.
- Performance measurement in HR is like using
data and metrics to ensure that HR processes are
effective and aligned with the organization's goals
/ their claims / objectives.
- Evidence-based human resource management
means using the best-available evidence in making
decisions about the human resource management
practices you are focusing on.
- The evidence may come from:
1. Actual Measurements – such as, how did the
trainees like this program?
2. Existing Data – such as, what happened to
company profits after we installed this training
program?
3. Published Research Studies – such as, what
does the research literature conclude about
the best way to ensure that trainees remember
what they learn?
- “HR Value Proposition.”: They say human
resource management’s aim is to add value.
Adding value means helping the firm and its
employees improve in a measurable way as a
result of the human resource manager’s actions.
4) SUSTAINABILITY
- They argue that companies’ efforts should be
“sustainable,” by which they mean judged not just
on profits, but also on their environmental and
social performance as well.
5) EMPLOYEE ENGAGEMENT
- Employee Engagement refers to the extent which
an organization’s employee being psychologically
involved in, connected to, and committed to getting
one’s jobs done.
- Engaged employees “experience a high level of
connectivity with their work tasks,” and therefore it
drives performance/work hard to accomplish their
task-related goals.
6) ETHICS
- The principles of conduct governing an individual
or a group; specifically, the standards you use to
decide what your conduct should be.
 ORGANIZATION
 A group consisting of people with formally assigned
roles who work together to achieve the organization’s
goals.
 MANAGER
 Someone who is responsible for accomplishing the
organization’s goals, and who does so by managing the
efforts of the organization’s people.
 MANAGING
 To perform five basic functions: planning, organizing,
staffing, leading, and controlling.
 5 BASIC FUNCTIONS OF THE MANAGEMENT
PROCESS
1) PLANNING
 Establishing goals and standards;
 Developing rules and procedures;
 Developing plans and forecasts
2) ORGANIZING
 Giving each subordinate a specific task;
 Establishing departments;
 Delegating authority to subordinates;
 Establishing channels of authority and
communication;
 Coordinating the work of subordinates
3) STAFFING
 Determining what type of people should be
hired;
 Recruiting prospective employees;
 Selecting employees;
 Setting performance standards;
 Compensating employees;
 Evaluating performance;
 Counseling employees;
 Training and developing employees
4) LEADING
 Getting others to get the job done;
 Maintaining morale;
 Motivating subordinates
5) CONTROLLING
 Setting standards such as sales quotas,
quality standards, or production levels;
 Checking to see how actual performance
compares with these standards;
 Taking corrective action as needed
 LINE AND STAFF ASPECTS OF HRM
AUTHORITY – The right to make decisions, direct others’
work, and give orders.
1) LINE AUTHORITY – Traditionally gives managers the
right to issue orders to other managers or employees.
 Creates a superior (order giver)–subordinate
(order receiver) relationship.
LINE MANAGER – authorized to direct the work of
subordinates and is responsible for accomplishing the
organization’s tasks
o LINE MANAGER’S HRM RESPONSIBILITIES
 Placing the right person in the right job
 Starting new employees in the organization
(orientation)
 Training employees for jobs that are new to them
 Improving the job performance of each person
 Gaining creative cooperation and developing
smooth working relationships
 Interpreting the company’s policies and procedures
 Controlling labor costs
 Developing the abilities of each person
 Creating and maintaining departmental morale
 Protecting employees’ health and physical
conditions
2) STAFF AUTHORITY – Gives a manager the right to
advise other managers or employees.
 Creates an advisory relationship.
STAFF MANAGER – A manager who is supportive,
assists and advises line managers.
 THE HUMAN RESOURCE DEPARTMENT
1) Recruiters
 Use various methods including contacts within the
community and print and online media to search for
qualified job applicants.
2) Equal employment opportunity (EEO)
representatives or affirmative action coordinators
 Investigate and resolve EEO grievances, examine
organizational practices for potential violations, and
compile and submit EEO reports.
3) Job analysts
 Collect and examine detailed information about job
duties to prepare job descriptions.
4) Compensation managers
 Develop compensation plans and handle the
employee benefits program.
 5) Training specialists
 Plan, organize, and direct training activities.
6) Labor relations specialists
 Advise management on all aspects of union–
management relations.
 NEW APPROACHED TO ORGANIZING HR
1) Reengineering
2) Actively seeking to transform: adopting new HR
technology tools
3) Shared Services Arrangements: These create
centralized HR units whose employees are shared by
all the companies’ departments to assist the
departments’ line managers in human resource
matters.
 They aim to provide managers and employees with
specialized support in day-to-day HR activities
(such as discipline problems).
4) Corporate HR: These assist top managements in top-
level issues
5) Embedded HR teams: HR generalists (also known as
“relationship managers” or “HR business partners”)
 They provide the employee selection and other
assistance the departments need.
6) Centers of expertise: are basically specialized HR
consulting firms within the company.
 TRENDS IN JOBS PEOPLE DO
1) ON-DEMAND WORKERS
 They’re freelancers and independent contractor–
gig workers
 who work when they can, on what they want to
work on, when they’re needed
2) HUMAN CAPITAL
 Letting workers make more decisions presumes
you’ve selected, trained, and rewarded them to
make more decisions themselves.
 This means adjusting how you select, train, and
engage these employees.
 TECHNOLOGY TRENDS
 social media tools
 mobile applications
 Office enable employers to inject gaming features into
training, performance appraisal, and recruiting
 Cloud computing–based tools: enable employers to
monitor things like a team’s goal attainment and to
provide real-time direct evaluative feedback.
 Data Analytics: basically means using statistical
techniques, algorithms, and problem solving
 Talent Analytics: Data analytics when applied to
human resource management
 Artificial Intelligence (AI): basically means using
computers to do tasks in human-like ways.
 Augmented Reality (AR): transforms huge amounts of
data and superimposes digital summaries and images
on the physical world.
 MODELS OF HRM
1) THE 5 – P MODEL OF HRM
o HR philosophy – the role they play in the overall
success of the business, and how they should be
treated and managed.
o HR policies – these provide guidelines for action on
people-related business issues and for the
development of HR programs and practices based on
strategic needs.
o HR programs – intended to initiate and manage
organizational change efforts prompted by strategic
business needs.
o HR practices – these are the activities carried out in
implementing HR policies and programs.
o HR processes – formal procedures and methods used
to put HR strategic plans and policies into effect.
2) THE HARD AND SOFT HRM MODELS
o HARD: emphasizes the quantitative, calculative and
business-strategic aspects of managing human
resources in as "rational" a way as for any other
economic factor.
o SOFT: the need for HR to be strategic and
businesslike and to add value
3)THEORY X AND THEORY Y
o Theory X holds that human beings have an inherent
dislike of work and will avoid it if they can.
 The 'hard-tight' control theory of management
 People prefer to be directed, wishing to avoid
responsibility.
 They have relatively little ambition and want
security above all, resisting change.
 They are self-interested, and make little effort to
identify with the organization’s goals.
 They must be coerced, controlled, directed, offered
rewards or threatened with punishments in order to
get them to put adequate effort into the
achievement of organization objectives: this is
management's responsibility.
o Theory Y the expenditure of physical and mental effort
in work is as natural as play or rest. The ordinary
person does not inherently dislike work.
 The 'soft-loose' commitment theory of
management.
 it may be a source of satisfaction or deprivation.
 A person will exercise self-direction and self-control
in the service of objectives to which (s)he is
committed.
 Management's responsibility is to create conditions
and methods that will enable individuals to
integrate their own and the organization's goals.
4) THE FOUR CS (HARVARD MODEL)
o Commitment – employees' identification with the
organization, loyalty and personal motivation in their
work.
o Competence – employees' skills and abilities, training
needs and potential for performance improvement and
career development.
o Congruence – the harmonization of the goals, values
and efforts of management and employees (or at least
the perception by employees that they have a mutual
vision and purpose, to mutual benefit).
o Cost-effectiveness – efficiency, whereby HRM
objectives are met and benefits obtained at the lowest
input cost
5) THE MATCHING MODEL OF HRM
o Indicated that HR systems and the organization
structure should be managed in a way that is
congruent with organizational strategy.
o The critical management task is to align the formal
structure and human resource systems so that they
drive the strategic objectives of the organization. Thus
they took the first steps towards the concept of
strategic HRM.
 Strategic Human Resource Management (Strategic HRM
or SHRM)
 an approach to the development and implementation of
HR strategies that are integrated with business
strategies and support their achievement.
ADDITIONALS:
 Organizational Culture – Offers a shared system of
meanings which is the basis for communications and mutual
understanding
 Values – Refer to what is believed to be important about
how people and organizations behave.
 Norms – Unwritten rules of behavior
 Work Design – The creation of systems of work and a
working environment that enhance organizational
effectiveness and productivity
 Work Environment – Comprises the design of jobs,
working conditions and the ways in which people are treated
at work by their managers and coworkers
 System –A set of practices or activities that fit together and
interact to achieve a purpose
 Organization Design – Process of deciding how
organizations should be structured in terms of the ways in
which the responsibility for carrying out the overall task is  IMPORTANCE OF JOB ANALYSIS AND JOB
allocated to individuals DESCRIPTION
 Job Design – Specifies the contents of jobs in order to
1) EMPLOYEE SELECTION
satisfy work requirements
 by identifying tasks performed and competencies
 Job Rotation – This is the movement of employees from
needed to perform those tasks, it is possible to
one task to another to reduce monotony by increasing
select tests or develop interview questions that will
variety
determine whether a particular applicant
 Job Enlargement – Combining previously fragmented
possesses the necessary knowledge, skills, and
tasks into one job, again to increase the variety and meaning
abilities to carry out the requirements of the job.
of repetitive work.
2) TRAINING
 Job Enrichment – This goes beyond job enlargement to
 Job analyses yield lists of job activities that can be
add greater autonomy and responsibility to a job.
systematically used to create training programs.
 Organization Development –Systematic approach to 3) PERSONPOWER PLANNING
improving organizational capability, which is concerned with
 One important but seldom employed use of job
process – how things get done
analysis is to determine worker mobility within an
 Organization Development Strategy – The ability to
organization
manage people for competitive advantage
 Worker Mobility: This means understanding how
 Organizational Diagnosis – Systematic process of employees can move within the company's
gathering data about a business organization hierarchy or from one role to another over time. It's
like plotting a career path for employees within the
JOB ANALYSIS, DESIGN & TALENT MANAGEMENT organization.
 JOB ANALYSIS  Personnel Planning: involves using job analysis
 Also known as work analysis; to chart a course for employees' career
 foundation for almost all human resource activities. progression within the organization, considering
 The process of determining the work activities and what positions they could move into as they gain
requirements, and the job description is the written experience and skills. It's about hiring not just for
the current role but for future growth and success
result of the job analysis.
within the company.
 TALENT MANAGEMENT
 PETER PRINCIPLE: promoting employees until
 The holistic, integrated and results and goal-oriented
they eventually reach their highest level of
process of planning, recruiting, selecting, developing,
incompetence.
managing, and compensating employees
4) PERFORMANCE APPRAISAL
 JOB DESCRIPTION
 The evaluation of employee performance must be
 A brief, two- to five-page summary of the tasks and job
job related.
requirements found in the job analysis 5) JOB CLASSIFICATION
 a written output information resulting from a job analysis
 Job analysis enables a human resources
such as specific duties, skills and training needed
professional to classify jobs into groups based on
(working conditions, responsibilities, and job duties)
similarities in requirements and duties.
 Types of information will most likely to be collected by a
 Job classification is useful for determining pay
human resource specialist through a job analysis:
levels, transfers, and promotions.
 Work activities 6) JOB EVALUATION
 Human behaviors  Job analysis information can also be used to
 Performance standards determine the worth of a job.
 Job context 7) JOB DESIGN
 Human requirements  Job analysis information can be used to determine
 JOB SPECIFICATION the optimal way in which a job should be
 It is a list of human requirements that is the requisite performed.
education, skills, personality, and so on and another
product of a job analysis.  WRITING A GOOD JOB DESCRIPTION
 Determined by deciding what types of KSAOs are
needed to perform the tasks identified in the job 1) JOB TITLE
analysis  An accurate title describes the nature of the job.
 Job titles provide workers with some form of
identity.
  Job titles can also affect perceptions of the status
and worth of a job.
2) BRIEF SUMMARY
 The summary need be only a paragraph in length
but should briefly describe the nature and purpose
of the job.
3) WORK ACTIVITIES
 The work-activities section lists the tasks and
activities in which the worker is involved
 The specialist collects information about the job's
actual work activities, for example: cleaning,
selling, and teaching, and may also include the
how, why, and when the worker performs each
activity.
4) TOOLS AND EQUIPMENT USED
 A section should be included that lists all the tools
and equipment used to perform the work activities
in the previous section
5) JOB CONTEXT
 It describes the environment in which the employee
works and should mention stress level, work
schedule, physical demands/working conditions,
level of responsibility, temperature, degree of
danger, and the organizational and social context.
6) WORK PERFORMANCE
 The job description should outline standards of
performance.
 This section contains a relatively brief description
of how an employee’s performance is evaluated
and what work standards are expected of the
employee.
7) COMPENSATION INFORMATION
 This section of the job description should contain
information on the salary grade, whether the
position is exempt, and the compensable factors
used to determine salary
 Compensation: form of salaries and bonuses
greatly depends upon a job’s required skills,
education level, safety hazards, and level of
responsibility
8) JOB COMPETENCIES
 These are the knowledge, skills, abilities, and other
characteristics (ksaos) (such as interest,
personality, and training) that are necessary to be
successful on the job.
 Human Behaviors: Specialists may collect
information about human behaviors like sensing,
communicating, deciding, and writing.
 Human Requirements: This includes job-related
knowledge of skills and required attributes.
 PREPARING FOR A JOB ANALYSIS
PLANNING
 the systematic process of establishing a need and then
working out the best way to meet the need, within a
strategic framework that enables you to identify
priorities and determine your operational principles,
especially job analysis.
 Typically, a job analysis is conducted by a trained
individual in the human resources department, but it
can also be conducted by job incumbents, supervisors,
or outside job analysis and evaluation consultants
 The job description should be updates if a job changes
significantly; Job Crafting – the informal changes that
employees make in their job
 In a committee-based job analysis, a group of subject
matter experts or sme (e.g., employees, supervisors)
meet to generate the tasks performed, the conditions
under which they are performed, and the ksaos needed
to perform them.
 In a field-based job analysis, the job analyst
individually interviews/observes several incumbents out
in the field
 CONDUCTING THE JOB ANALYSIS
1) IDENTIFY TASKS PERFORMED
 The first step in conducting a job analysis is to
identify the major job dimensions and the tasks
performed for each dimension, the tools and
equipment used to perform the tasks, and the
conditions under which the tasks are performed.
 The basic unit of a job is the performance of
specific tasks and duties. Information to be
collected about these items may include frequency,
duration, effort, skill, complexity, equipment,
standards, etc.
2) WRITE TASK STATEMENTS
 Once the tasks have been identified, the next step
is to write the task statements that will be used in
the task inventory and included in the job
description at the minimum
 A properly written task statement must contain: an
action (what is done) and an object (to which the
action is done).
 Task statements will also include such
components as where the task is done, how it is
done, why it is done, and when it is done.
3) RATE TASK STATEMENTS
 Conduct Task Analysis – using a group of SMEs
to rate each task statements on the frequency and
the importance or critically of the tasks being
performed
4) DETERMINE ESSENTIAL KSAOS
 The next step is to identify the KSAOs needed to
perform the tasks.
 A knowledge is a body of information needed to
perform a task.
 A skill is the proficiency to perform a learned task.
 An ability is a basic capacity for performing a wide
range of different tasks, acquiring a knowledge, or
developing a skill.
 Other characteristics include such personal
factors as personality, willingness, interest, and
motivation and such tangible factors as licenses,
degrees, and years of experience.
 KSAOs = competencies (job specifications)
 Once the list of the essential KSAOs has been
developed, another group of SMEs is given the list
and asked to rate the extent to which each of the
KSAOs is essential for performing the job
5) SELECTING TESTS TO TAP KSAOS
 Once the important KSAOs have been identified,
the next step is to determine the best methods to
tap the KSAOs needed at the time of hire.
 These methods will be used to select new
employees and include such methods as
interviews, work samples, ability tests, personality
tests, reference checks, integrity tests, bio-data,
and assessment centers.
 JOB EVALUATION
 This process of determining a job’s worth
1) INTERNAL PAY EQUITY: involves comparing jobs
within an organization to ensure that the people in jobs
worth the most money are paid accordingly
a) DETERMINING THE JOB COMPENSABLE
FACTOR
 To decide what factors differentiate the
relative worth of jobs. Possible compensable
job factors include:
 Level of responsibility
  Physical demands
 Mental demands
 Education requirements
 Training and experience requirements
 Working conditions
b) DETERMINING THE LEVELS FOR EACH
COMPENSABLE FACTOR
 Once the compensable factors have been
selected, the next step is to determine the
levels for each factor.
 For a factor such as education, the levels are
easy to determine (e.g., high school diploma,
associate’s degree, bachelor’s degree).
 For factors such as responsibility, a
considerable amount of time and discussion
may be required to determine the levels.
c) DETERMINING THE FACTOR WEIGHTS
 A job evaluation committee determines the
total number of points that will be distributed
among the factors.
 Each factor is weighted by assigning a number
of points. The more important the factor, the
greater the number of points that will be
assigned.
 The number of points assigned to a factor is
then divided into each of the levels.
 The total number of points for a job is
compared with the salary currently being paid
for the job.
2) EXTERNAL PAY EQUITY: Comparing the job to the
external market / other organizations
a) SALARY SURVEY
 These surveys ask how much an organization
pays its employees in various positions.
 An organization can either construct and send
out its own survey or use the results of surveys
conducted by trade groups, an option that
many organizations choose
b) DIRECT COMPENSATION
 Employees are also compensated in other
ways, such as pay for time not worked (e.g.,
holidays, vacation, sick days), deferred
income (e.g., Social Security and pension
plans), health protection such as medical
and dental insurance, and perquisites
(“perks”) such as a company car
 Two types of audits should be conducted in determining a
sex and race equity:
1) pay rates of employees within positions with identical
duties (equal pay for equal work) and,
2) pay rates of employees in jobs of similar worth and
responsibility (comparable worth).
 This second type of analysis is normally conducted
by comparing jobs with similar worth (salary grade)
and responsibility (job family).
 THE RESPONSIBILITY CHARTING THEORY
1) Role Conception – what a person thinks his/her job is
and how the person has been taught to do it.
2) Role Expectation – What others in the organization
think the person is responsible for, and how he/she
should carry out those responsibilities.
3) Role Behavior – What a person actually does in
carrying out the job.
 ADDITIONALS:
o Organization Charts: indicates the division of work
within the firm with titles of each position
o Process Charts: a work-flow chart that shows the flow
of inputs to and outputs from a particular job
o Workflow Analysis: a detailed study of the flow of
work from job to job in a work process
o Business Process Reengineering: redesigning
business processes, usually by combining steps
o Job Enlargement: refers to assigning workers
additional same-level activities.
o Job Rotation: moving workers from one job to another
o Job Enrichment: redesigning jobs in a way that
increases the opportunities for the worker to
experience feelings of responsibility, achievement,
growth, and recognition
o Frederick Herzberg: “the best way to motivate
workers is to build opportunities for challenge and
achievement into their jobs via job enrichment”
o STEPS INVOLVED IN THE JOB ANALYSIS
PROCESS
 Decide how you will use the information
 Review relevant background information about
the job such as Organization Charts and Process
Charts
 Select Representative positions
 Actual analyze the job – requires collecting data about
job activities, required employee behaviors
 Verify the job analysis information with the worker
performing the job and with the immediate supervisor
 Develop a Job description and Job specification
o Position Analysis Questionnaire: method for
collecting job analysis information such as duties and
responsibilities of various jobs.
o TYPICAL JOB ANALYSIS INTERVIEWS ADDRESS
SUBJECTS
 Job’s major duties
 Hazardous conditions
 Performance standards
 Required experience
 Education
o Structured List: also called checklist is useful for
guiding an interview or performing a personal
observation
o Electronic Diaries: are completed by the worker and
would not used for observations or interviews
o Reactivity: occurs when a worker changes what
he/she normally does because observation is taking
place for the purpose of job analysis
o Work Cycle: a time it takes to complete a job
o Logbook: a diary or log requires workers to make daily
listings of the activities in which they engage as well as
the amount of time each activity takes
o Observation: an appropriate method for collecting job
analysis information when a job involves physical
rather than mental activities
o MOTIVATION
 Mental process: setting in motion the required
behaviors (also called Intrinsic Motivation)
 Intrinsic Motivation: arises from factors and
process within the individual
 Social process: applies to the attempts of
organizations to maintain or increase workers’
effort and commitment by using rewards and
punishments (also called extrinsic motivation)
 Extrinsic motivation: arises from actions done to
or for the individuals by others
 Content Theories: human beings have an innate
package of motives which they take action to
pursue (What motivates people?)
 Process theories: explores the psychological
process through which outcomes become
desirable and are pursued by individuals. (How
are people motivated?)
o IMPORTANT WORK BEHAVIORS
 Industriousness
 Thoroughness
  Schedule flexibility
 Attendance
o JOB DESCRIPTION SECTIONS
 Job Identification – Job Title
 Job Summary
 Responsibilities and Duties
 Authority of incumbent
 Standards of performance
 Working conditions
 Job Specifications
o Competency Based Job Analysis: A worker-focused
describing a job in terms of measurable, observable,
behavioral competencies that an employee doing the
job must exhibit to do the job well. (Focuses on the
behavior of the workers)
o Traditional Job Analysis: a job-focused describing
the jobs in terms of duties and responsibilities
(Focuses on the duties of the job)
RECRUITMENT, SELECTION AND INTERVIEW
 RECRUITMENT & SELECTION: Designed to make best
use of employee strength in order to meet the strategic goals
and objectives of the employers and of the organization as
a whole.
 RECRUITMENT
 The process of identifying, screening, shortlisting and
hiring of the potential human resources for the purpose
of filling up the positions within the organizations.
 The central function of human resource management
 The process of attracting, selecting and appointing
potential candidates to meet the needs and
requirements of the organizations
 A Positive Process: its approach of attracting as
many candidates as possible for the vacant positions
 SOURCES OF RECRUITMENT
1) INTERNAL SOURCES
 Refers to the recruitment from within the company.
 The various internal sources are promotion;
transfer, past employees, and internal
advertisements.
 Within the organization
o The size of the organization,
o Recruiting policy,
o Image of organization and image of job
2) EXTERNAL SOURCES: outside the organization
 Demographic Factors,
 Labor Market,
 Unemployment Rate,
 Labor Laws,
 Legal Considerations
 Competitors
 MERIT OF EXTERNAL SOURCES
o Qualified Personnel – the management can
make qualified and trained people to apply for
vacant Jobs in the organization.
o Wider Choices – When vacancies are
advertised widely a large number of applicants
from outside the organization apply.
o Fresh Talent – External sources facilitate the
infusion of fresh blood with new ideas into the
enterprise. This will improve the overall
working of the enterprise.
o Competitive Spirit - The existing staff will
have to compete with the outsiders.
 DEMERIT OF EXTERNAL SOURCES
o Dissatisfaction among Existing Staff – They
may feel that their chances of promotion are
reduced.
o Lengthy Process – The business has to notify
the vacancies and wait for applications to
initiate the selection process.
o Costly Process – A lot of money has to be
spent on advertisement and processing of
applications.
o Uncertain Response – There is no guarantee
that the enterprise will be able to attract the
right kinds of people from external sources.
 SELECTION
 The process of picking or choosing the right candidate,
who is most suitable for the job.
 Negative Process: with the elimination of many
candidates as possible
 It is made only of those individuals who are qualified
and proficient
 (Hiring) good resources = increase overall
performance of the organization
 SCREENING: the process of choosing a qualified
person for a specific role who can successfully deliver
valuable contributions to the organization.
 MULTISTAGE SELECTION STRATEGY: This
combines a number of assessment tools as part of the
process
 COMPENSATORY SELECTION STRATEGY: This
method administers all assessment tools to applicants
at the same time
 BACKGROUND INVESTIGATION: verification of
references
 BACKGROUND VERIFICATION: to guard oneself
against possible falsification by applicants or to check
the accuracy and truthfulness of the information
provided by job applicants.
o Giving a Clean Chit – the employer may turn a
blind eye if they highly value the candidate's skills
or believe the individual will be an asset to the
organization
o Being Unfair – On the flip side, employers may
be unfairly strict during background verification for
candidates they don't want to hire but cannot
afford to lose
 EFFECTIVE EMPLOYEE SELECTION TECHNIQUES
 Effective employee selection systems share three
characteristics: They are valid, reduce the chance of
a legal challenge, and are cost-effective.
o A VALID SELECTION test is:
 one that is based on a job analysis (content
validity),
 predicts work-related behavior (criterion
validity), and
 measures the construct it purports to measure
(construct validity).
o Selection tests will REDUCE THE CHANCE OF A
LEGAL CHALLENGE if:
 their content appears to be job related (face
validity),
 the questions don’t invade an applicant’s
privacy, and
 adverse impact is minimized.
o Ideal selection tests are also COST-EFFECTIVE in
terms of the costs to purchase or create, to
administer, and to score
 PRINCIPLES OF RECRUITMENT AND SELECTION
1) Recruitment is a multi-stage process
2) Importance of Finding the Best Candidates
3) Consideration of Internal Candidates
4) Senior Management Involvement
5) Effective Interviewing
6) Legal Compliance
7) Policy and Procedure Awareness
 FACTORS AFFECTING RECRUITMENT AND
SELECTION
1) INTERNAL FACTORS
a) SIZE OF THE ORGANIZATION
 To develop business, recruitment planning is
mandatory for hiring more resources
b) RECRUITMENT POLICY
 It identifies the objectives of recruitment and
provides a framework for the implementation
of recruitment programs
c) IMAGE OF THE ORGANIZATION
 Organizations having a good positive
image/reputation in the market can easily
attract competent and proficient resources
d) IMAGE OF JOBS
 Positive image in terms of better remuneration
(money paid for work or a service/salary),
promotions, recognition, and amiable working
environment with career development
opportunities
2) EXTERNAL FACTORS
a) DEMOGRAPHIC FACTORS
 The characteristics of potential employees
such as, their age, religion, educational
qualifications, gender, occupation, economic
status, and place of location.
b) LABOUR MARKET
 Control on the demand and supply of labor.
c) UNEMPLOYMENT RATE
 a key economic indicator that measures the
percentage of people who are actively seeking
employment but are currently without a job
and available for work within a country or
region's labor force.
 High = hiring will be simple & manageable
 Low = difficult due to low resources
d) LABOUR LAWS
 The social and political environment of the
market
 These laws dictate the compensation, working
environment, safety and health regulations,
and the job duties of the workforce, for
different types of employments
e) LEGAL CONSIDERATIONS
 Refer to the rules, regulations, and laws that
companies and organizations must follow
when managing their employees.
 These legal considerations cover areas such
as hiring, firing, workplace policies,
discrimination, wages, hours, and benefits.
 Job Reservation refers to a practice where
certain job positions or a specific number of
job openings are set aside or reserved for
individuals from specific groups or categories.
f) COMPETITORS
 A need to analyze the competition and make
provision of the resources packages that are
finest in terms of the industry standards
g) EQUAL OPPORTUNITY
 when all the applicants are treated on an equal
basis and consistently at every stage of
recruitment
 Fairness and justness is of principal
significance in the recruitment and the
selection processes
 POSTING VACANCIES
 Job Posting: refers to the practice of publicizing and
displaying advertisements of an open job to the
employees. To bring to the attention of the interested
persons.
 Internal Recruiting: where jobs are not being posted,
creation of a list of qualified internal candidates is
necessary
 IMPORTANT AREAS THAT NEED TO BE TAKE INTO
CONSIDERATION BEFORE POSTING VACANCIES
o Whether the retention of the job is done in the
present form with the title, remuneration or status
or whether any changes are required to be brought
about.
o JOB ROTATION - helps in the development of
skills and abilities of the employees and make them
familiar with other functions and tasks within the
organization.
o Whether the existing organizational policy for
recruitment is still applicable
 HR INFORMATION SYSTEM
 HRIS is a system that maintains, collect, and analyzes
data relating to human resources of the organization.
Advantages:
 Hire Skilled People on Time
 Keep Candidates Informed
 Stay in Touch w/ Qualified Candidates
 Analyze Hiring Trends
 Avoid Discrimination
 RECRUITMENT AND SELECTION PROCESS
1) JOB VACANCY
 when there's an empty job position in a company.
 enables the individuals to determine the factors,
such as, redesigning, or initiating part time
employment opportunities for the individuals
2) JOB ANALYSIS
 The process of gathering and documenting
detailed information about a job, including its
duties, responsibilities, tasks, qualifications, and
the skills and knowledge required to perform it
effectively.
 Two factors need to be taken into consideration:
o They employers expect employees to
inculcate the traits of regularity, diligence,
resourcefulness, conscientiousness and
creativity.
o Characteristics of the job: These include,
training, work experience, skills and
knowledge, physical attributes, personality
traits, communication skills and personal
circumstances
3) ATTRACTING CANDIDATES
 Two important sources that need to be taken into
consideration: Internal Recruitment & External
Recruitment
4) SCREENING CANDIDATES
 To narrow down the field, so that one is able to
spend more time with the candidates for formal
interviews.
 To select the most suitable ones for the interviews.
5) INTERVIEWING CANDIDATES
 Must give proper notice with date and time of the
interview
 Candidates must be aware to be on time
 ensuring that they are clear where to go and whom
they should contact on arrival o ensuring that they
are aware of the documents that need to be
brought along in the interview.
6) SELECTING AND APPOINTING CANDIDATES
 the selection of the candidate,
 verbal communication of his or her appointment,
 medical completed if appropriate,
 sending of appointment letters and
 signing the contract.
 7) INDUCTION AND TRAINING
 INDUCTION: the process of receiving and
welcoming of the employees
o To smooth the early stages
o To establish a positive attitude of the
organization within the mind-sets of the
employees
o To obtain effective output from new
employees in short period of time
 TRAINING: referred to making use of methods and
strategies to enhance the awareness, knowledge
and information among the employees. Includes:
o Role plays
o Vestibule training
o Field visits
o Lectures
o The employees should receive on the job and
off the job training to generate information
regarding history, personnel, goals and
performance of job duties.
o The main purpose of training is to balance
the needs and requirements of the
organizations and human resources.
8) EMPLOYEE EVALUATION
 The main purpose is to ensure that the quality of
the employees get enhanced that are recruited
within the organizations. This is imperative to
improve employee productivity and to achieve the
organizational goals and objectives.
 TYPES OF RECRUITMENT
1) INTERNAL SOURCES
 The hiring of employees within the organization
internally who seeks a different position
 It provides opportunities for progress and use of
the existing resources
 The finest and the stress-free way
a) PROMOTIONS
 Advancement of the employees
 The process of shifting an employee from a
lower position to a higher position
b) TRANSFERS
 The process of interchanging from one job to
another without any change in the designation
and responsibilities
 It can also be the shifting of the employees
from one department to another department or
from one location to another
 “Internal shifting” from one branch to
another
c) RECRUITMENT OF FORMER EMPLOYEES
 a process of internal sources of recruitment,
wherein the ex-employees are called back,
depending upon the requirement of the
positions.
 cost effective and saves plenty of time and
money
d) INTERNAL ADVERTISEMENTS OR JOB
POSTINGS
 The processes of posting and advertising jobs
within the organization
 Less expenses and it makes provision of equal
opportunities to all the employees
e) EMPLOYEE REFERRALS
 The process of hiring new capitals through the
references of the employees, who are currently
employed within the organization
 An operative way of sourcing the right candidates
at a low cost.
f) PREVIOUS APPLICANTS
 The hiring team examines the profiles of
previous applicants from the organizational
recruitment database.
 It is also an economical way of filling up the
vacant positions.
2) EXTERNAL SOURCES
 Hiring of the employees outside the organization
externally
 External employees bring innovativeness,
resourcefulness, creativity and new thoughts and
ideas to the organization
 Expensive and a difficult process
a) DIRECT RECRUITMENT
 Also called “factory gate recruitment”
 by putting a notice regarding job vacancy on
the notice board of the organization. (within
the premises)
 This is in most cases used to recruit blue collar
and technical workers.
b) EMPLOYMENT EXCHANGES
 A government entity, where the details of the
job seekers are deposited and given to the
employers for filling the vacant positions
 Accommodating in hiring of the unskilled,
semi-skilled, and skilled workers
c) EMPLOYMENT AGENCIES
 They are functioned by various sectors, such
as private, public and government
 It provides, unskilled, semi-skilled and skilled
resources in accordance to the needs and
requirements of the organizations. – they have
database of qualified candidates
d) ADVERTISEMENTS
 The most prevalent and common external
sources of recruitment that is displayed
through various print and electronic media with
a specific job description and specifications of
the requirements.
 Best way to source candidates in a short pan
and it provides an efficient way of screening
the specific requirements of the candidates
e) PROFESSIONAL ASSOCIATIONS
 Can help the organizations in hiring
professional, technical, and managerial
personnel
 They focus on sourcing mid-level and top-level
resources.
f) CAMPUS RECRUITMENT
 Where the educational institutions such as,
colleges and universities make provision of
information to the students regarding
employment opportunities – for recruiting
students directly for new positions
g) WORD OF MOUTH ADVERTISING
 Imperceptible way (not noticeable) of sourcing
candidates.
 Excellent for those organizations with good
reputations
 INTERVIEW
 A determined exchange of notions, the answering
of questions and communication between two or
more persons
 The main purpose of the interviews is to transfer
information from interviewee to interviewer and
acquire information about qualities, attitudes,
prospectus and so forth
1) TYPES OF INTERVIEW
a) STRUCTURED INTERVIEW
 Pre-planned/planned, designed and detailed
in advance. It is precise and reliable
b) UNSTRUCTURED INTERVIEW
 An unexpected one, where the interview
questionnaire is not prepared.
 May not obtain accurate answers so the
usefulness of this interview is less, a waste of
time and effort for both sides
c) INFORMAL INTERVIEW
 Without any written communication and can
be arranged at any place.
 No proper procedures of asking questions, not
structured.
d) FORMAL INTERVIEW
 “planned interview” – the interviewee is
supposed to provide accurate answers
 Organized in an informal manner
e) DEPTH INTERVIEW
 A semi-structured interview, where the
candidates have to give detailed information
about their educational qualifications, work
experience, special interests, skills, aptitude
and so forth
 The interviewer analyzes the expertise and
proficiency of the candidate so that the
selection process becomes more
manageable.
f) STRESS INTERVIEW
 Conducted to ascertain how a candidate
would react during the time of stress and cope
up with problems—to know if the candidate
can deal in an effective manner with the
demands and needs of a complicated job
g) EXIT INTERVIEW
 Conducted for those employees, who want to
leave the organization to ascertain the
reasons behind leaving the job
2) INTERVIEW STYLES
a) INDIVIDUAL INTERVIEW
 The interview takes place on a one to one
basis; verbal and interaction between two
people.
b) PANEL INTERVIEW
 Being conducted by a group of people
c) GROUP INTERVIEW
 All the candidates or a group of candidates are
interviewed together to save time, when there
are large number of applicants received for
limited job vacancies.
d) SERIES INTERVIEW
 Involve a series of single interviews.
3) INTERVIEW MEDIUMS
a) FACE-TO-FACE INTERVIEWS: same room;
visual and vocal cues
b) TELEPHONE INTERVIEWS: often for screening
c) VIDEOCONFERENCE INTERVIEWS: remote
d) WRITTEN INTERVIEWS
WORKPLACE LEARNING AND DEVELOPMENT
TRAINING
 INSTRUCTIONAL SYSTEM
 plan for teaching and training people.
 Composed of:
o Problem Diagnostic – what is the problem? (Need
Analysis)
o Problem Design – create a plan
o Problem Delivery – execute the plan
o Program Evaluation – check if it worked
 Training and development is never a finished product”
 Sleeper Effect – takes time for results to show up back on
the job.
 Training is essential because:
 The need for wider array of skills
 Awareness of the entire production system
 The need to be responsive to mishaps
 Changing customer needs
 Interest in building clusters of internal team experts
 More vocal concern over employment security
 Career growth
 Retraining costs
 DEVELOPMENT
 Refers to formal education, job experiences,
relationships, and assessment of personality and
abilities that help employees prepare for the future.
 Refers to learning opportunities intended to assist
employee growth.
 EMPLOYEE DEVELOPMENT
 This is a key contributor to a company's competitive
advantage by helping employees understand their
strengths, weaknesses, and interests and by showing
them how new jobs and expanded job responsibilities
are available to them to meet their personal growth
needs.
 This helps retain valuable managers who might
otherwise leave to join clients or competitors. It is also
important for all employees, not just managers.
 HUMAN RESOURCE DEVELOPMENT PRINCIPLES
 DR. FM TOLI
o Distributed Learning – to digest and apply the
material
o Rewards – praise, recognition, promotion
o Feedback – progress, mistakes
o Motivation – must want to learn
o Transfer – application to job activities
o Opportunity to Practice – techniques that habitually
uses
o Learning from Many Sources – hitting the
mode/figuring out; provides a broad base
o Individual Differences – trainee’s intelligence,
motivation, aptitudes and interest
 TRAINING
 Is the process to develop employee performance on a
presently held job or one related to it. Changes in
specific, identifiable, knowledge, skills, or behaviors for
use in their current job.
 The “systematic acquisition of skills, rules, concepts, or
attitudes that result in improved performance”
 OBJECTIVES OF TRAINING
 Health and Safety
 Equality and Diversity
 Staff Management
 Soft Skills
 IMPORTANCE OF TRAINING’
 Increasing Productivity
 Improving Quality
 Helping a Company Fulfill its Future Personnel Needs
 Improving Organizational Climate
 Improving Health and Safety
 Obsolescence Prevention
 Personal Growth
 DEVELOPING TRAINING PROGRAM: ADDIE
 Analyze the training need
 Design the overall training program.
 Develop the course (actually assembling/creating the
training materials).
 Implement training, by actually training the targeted
employee group using methods such as on-the-job or
online training
 Evaluate the course’s effectiveness
1) ANALYSIS
 Is training the problem?
 The training needs analysis (first step in developing
an employee training system) may address the
employer’s strategic / longer-term training needs
and/or its current training needs.
 The purpose of needs analysis is to determine the
types of training, if any, that are needed in an
organization, as well as the extent to which training
is a practical means of achieving an organization’s
goals
 TYPES OF NEED ANALYSIS:
a) ORGANIZATIONAL ANALYSIS
 an analysis of the organization's
strategies, goals, and objectives.
b) TASK ANALYSIS
 The purpose of a task analysis is to use
the job analysis methods to identify the
tasks performed by each employee,
 The conditions under which these tasks
are performed, and
 The competencies (knowledge, skills,
abilities) needed to perform the tasks
under the identified conditions
c) PERSON ANALYSIS
 Analysis dealing with potential
participants and instructors involved in the
process
d) STRATEGIC TRAINING NEEDS ANALYSIS
 Strategic goals (perhaps to enter new
lines of business or to expand abroad)
often mean the firm will have to fill new
jobs.
e) Performance analysis is the process of
verifying that there is a performance deficiency
and determining whether the employer should
correct such deficiencies through training or
some other means (like transferring the
employee).
f) The competency model consolidates,
usually in one diagram, a precise overview of
the competencies someone would need to do
the job well.
g) Competencies-oriented training is similar to
other training. Trainees often learn through a
mix of real-world exercises, teamwork,
classes, and online resources, under a
learning coach; the aim is to show mastery of
particular competencies.
2) DESIGN
 Means planning the overall training program
including training objectives, delivery methods, and
program evaluation. Sub steps:
 Setting performance objectives,
 Creating a detailed outline (all training program
steps from start to finish),
 Choosing a program delivery method (such as
lectures or web), and
 Verifying the overall program design with
management.
 Summaries of how you plan to set a training
environment that motivates your trainees both to
learn and to transfer what they learn to the job.
 It is also here that the manager reviews possible
training program content (including workbooks,
exercises, and activities), and estimates a training
program budget.
a) SETTING LEARNING OBJECTIVES
 Training, development, learning, or (more
generally) instructional objectives should
specify in measurable terms what the trainee
should be able to do after successfully
completing the training program
 The learning objectives should first address
any performance deficiencies that you
identified. At the same time, the learning
objectives must be practical, give the
constraints.
 There is a financial and time constraint
b) CREATING A MOTIVATIONAL LEARNING
ENVIRONMENT
 Learning requires both ability and motivation,
and the training program’s design should
accommodate both.
 the low-hanging fruit in motivating trainees is
to make sure the trainee’s peers and
supervisor support the training effort.
 From behavior modification, we know that
the training should provide opportunities for
positive reinforcement.
 “Expectancy theory” shows us that the
trainees need to know they have the ability to
succeed in the program, and that the value to
them of completing the program is high. Self-
efficacy is crucial—trainees must believe they
have the capacity to succeed.
 Cloud-based training revolutionized training, by
enabling employers to outsource much or all of
their training activities
3) DEVELOPMENT
 What specific materials and methods will we use?
 Program development means actually
assembling the program’s training content and
materials. It means choosing the specific content
the program will present, as well as
designing/choosing the specific instructional
methods (lectures, cases, Web-based, and so on)
you will use.
 Training equipment and materials include (for
example) iPads, workbooks, lectures, PowerPoint
slides, Web- and computer-based activities, course
activities, and trainer resources (manuals, for
instance).
4) IMPLEMENTATION
 Train the person
 Implement means actually provide the training
using one or more of the instructional methods
  Before the actual training: send announcements
far in advance, provide directions, provide a
contact, and make sure participants have pre-
training materials.
 During training: make sure all participants have a
point of contact in case they have questions or
need guidance.
 After training: remember training does not end
when the program ends. Instead, periodically
ascertain that trainees are transferring their
learning to the job.
5) EVALUATION
 There are several things you can measure:
 Participants’ reactions to the program,
 what (if anything) the trainees learned from the
program, and
 to what extent their on- the-job behavior or results
changed as a result of the program.
TRAINING EFFECTS TO MEASURE:
 Kirkpatrick Model of training evaluation (named
for its developer) lists four training effects
employers can measure
o Reaction: evaluate trainees’ reactions to the
program. Did they like the program? Did they
think it worthwhile?
o Learning: test whether they learned the
principles, skills, and facts they were
supposed to learn.
o Behavior: ask whether the trainees’ on-the-
job behavior changed because of the training
program. For example, are employees in the
store’s complaint department more courteous
toward disgruntled customers?
o Results: most important, ask, “What results
did we achieve, in terms of the training
objectives previously set?” For example, did
the number of customer complaints diminish?
 HR TRAINING AND DEVELOPMENT METHODS
ON-THE-JOB
1) EMPLOYEE ORIENTATION (ONBOARDING)
 History, culture, and basics in an organization
 To make an employee feel welcome
 Provides a general understanding of the
organization.
2) JOB INSTRUCTION
 Step-by-step teaching
 Trainer: explains job in a proper sequence
 Trainee: tries to replicate the methods and
receives feedback from the trainer.
3) COACHING (UNDERSTUDY METHOD)
 Trainer provides advice and take notes what the
employee is doing properly and improperly
4) MENTORING
 A senior provides career advice
 “guilt by association”
5) INFORMAL LEARNING (THE BUDDY SYSTEM)
 Learn from peers
6) PROJECT TEAMS (ACTION LEARNING)
 Temporary team that works on real projects
7) APPRENTICESHIP
 Job training under the direction of an experience
person
 Craft positions
 Classroom component
8) IN-BASKET EXERCISES
 Stack of memos, phone messages, letters
 Managing a busy workload in a simulated job
setting
 Time Management is practiced
9) BEHAVIORAL MODELING
 Copying someone skilled – might lose some
individuality and creativity but feel more confidence
since it is a proven method
 Observe “model behavior”  practice techniques
 get feedback & praise  make revisions  then
be transferred back on job
10) JOB EXPERIENCE
 This is the oldest method of on-the-job training.
11) JOB ROTATION
 An employee (usually a management trainee)
moves from job to job at planned intervals, is
another OJT technique
 The major objective of job rotation training is the
broadening of the background of trainees in the
organization.
12) SPECIAL PROJECTS
 This is a very flexible training device. The trainee
may be asked to perform a special assignment;
thereby he learns the work procedure
OFF-THE-JOB
13) LECTURE
 Most common training method
 Economical way to convey information
 Lack of social interaction & individualized material
14) DISCUSSION METHOD (INCIDENT METHOD)
 Short, controversial scenarios (about 1-3 pages
long)
 No right answers
 Develops analytic skills and management style
 Only effective for small groups to monitor
feedbacks
15) CASE STUDIES
 In-depth descriptions (5-30 pages) of the
experiences of disguised organizations
 To see the experiences in a short period of time
and to not repeat the same mistakes again
 In group analyzed cases, social loafing (less
effort, not doing fair share) and political infighting
(arguments) may emerge.
16) ROLE PLAYING
 Simulations where the trainees learn by doing
 Has prescribed roles
 Develops interpersonal skills
17) VESTIBULES / SIMULATORS
 Train on the same or at least similar equipment in
safe and controlled environment
 Opportunity to practice, sequence learning,
knowledge of results and reinforcement
18) SENSITIVITY TRAINING (T-GROUPS)
 Bizarre exercises
 Group analysis: the trainee discusses the
experiences with other participants
 Self-analysis: the trainee will put his/her
reflections in writing
 multiple analytic processes to give trainees greater
insight into the behavior of others and themselves
 greater understanding and tolerance; develops
new ways of interacting
 inappropriate feedback damages
 Tradeoff exists – the potential difficulty of opening
up when working with co-workers vs the greater
likelihood of meaningful change
19) PROGRAMMED INSTRUCTION (AUTO
INSTRUCTIONAL TECHNIQUES)
 Self-paced learning using computer programs
 There is a question, respond, and feedback cycle
 Lack of social interaction
 Risk of cheating in self-tests
 20) BUSINESS (MANAGEMENT) GAMES
 Simulations of what it is like to make top
management decisions
 COMMON CONCERNS AND SUGGESTIONS FOR
IMPROVEMENT FOR TRAINING AND DEVELOPMENT
o Lack of ongoing measurement
 Spends a lot of money on training not knowing
if it’s working.
o Possible (good) evaluation criteria
 Knowledge Acquisition – if people actually
learn the things they’re supposed to in training
 Changing Attitudes – changes how people
think or feel about their job
 Problem Solving Skills – better at solving
problems
 Interpersonal Skills – improves how they
work with others
 Participant Acceptance – if they enjoy or
found it useful
 Knowledge Retention – if people remember
what they learned
 Knowledge Transfer – if people actually used
what they learned
o Talent supplier for competitors
 Good training programs attract better
candidates
 Turnover rates – how employees are leaving
(especially the best ones)
 Options like requiring employees to stay for a
certain number of years or not allowing them
to work for direct competitors for a while.
o “Tried and true” program than in sensing the
organization’s needs
 Provide knowledge and skills that match the
organization’s specific requirements
 Instant experts – just to obtain money even if
they’re not knowledgeable on a topic
o Do not send mixed or improper signals
 Training and performance must be consistent
and clear
 Discourages employees from learning new
skills if it is just mean more unfair workload.
o Strike the right balance
 Consider the right balance between variety
and the comfort of their employees in training
process
 Enhance the meaningfulness of programs
 Rotating in experienced people from the field
to conduct training programs
PERFORMANCE APPRAISAL
 EMPLOYEE ENGAGEMENT
 Level of commitment workers makes to their employer
 Willingness to stay at the firm and to go beyond call of
duty
 PERFORMANCE MANAGEMENT
 Goal-oriented process, to achieve its company goals
 Organizational processes are in place to maximize the
productivity of the people
 Accomplishing organizational strategy – measuring
and improving the value of the workforce
 Includes incentive goals and corresponding incentive
values
 Dynamic, ongoing, continuous process
 The single largest contributor to organizational
effectiveness.
 PERFORMANCE APPRAISAL
 Formal system of review and evaluation of individual or
team task performance
 Critical to the success of performance management – it
directly reflects the organization’s strategic plan
 PURPOSE:
o To provide feedback
o Encourage performance improvement
o Make valid decisions
o Justify terminations
o Identify training and development needs
o Defend personnel decisions
 LEGAL RAMIFICATIONS
 That there can be legal problems or consequences
if managers don’t handle performance evaluations
correctly
 Managers need to make sure their performance
appraisal system is fair and legally sound.
 PA is the systematic evaluation of the individual with
respect to his potential for development
 USES OF PERFORMANCE APPRAISAL
 The primary goal of an appraisal system is to improve
individual and organizational performance.
1) HUMAN RESOURCE PLANNING
 To figure out who's doing well and who has the
potential to move up in the company
 SUCCESSION PLANNING: a process of
developing talent to replace executive, leadership
or other key employees
2) RECRUITMENT AND SELECTION
 Predicting Job Performance: through PA, the
company knows which qualities and behaviors
make their current employees successful they can
use that information to decide if job applicants have
those same qualities.
 Evaluating Job Interviews: using PA to ask the
right questions.
 BENCHMARKING: to make comparisons between and
within organizations, sectors, industries, roles, practices,
and processes. It is used to provide feedback to
organizations for continuous improvement to their people
practices and challenge existing processes.
 Determination of the selection TEST’S VALIDITY
would depend on the accuracy of appraisal results.
 Testing New Hires: if the applicant is a good fit for
a job. They can compare how well these tests work
by looking at how employees with good
performance ratings did on them. If the tests are
good at predicting success, it's like a green light for
hiring.
3) TRAINING AND DEVELOPMENT
 By identifying deficiencies that adversely affect
performance, T&D programs can be developed
that permit individuals to build on their strengths
and minimize their deficiencies
4) CAREER PLANNING AND DEVELOPMENT
 Career planning is when a person decides what
they want to achieve in their career and how to do
it. Career development is when a company makes
sure they have the right people with the right skills
for the future.
 Career Planning – an ongoing process
  Individual – sets career goals and identifies the
means to achieve them
 Career Development – a formal approach used by
the organization to ensure that people with the
proper qualifications and experiences are available
when needed.
5) COMPENSATION PROGRAMS
 PA results provide a basis for rational decisions
regarding pay adjustments.
 Rewarding behaviors is necessary for
accomplishing organizational objectives is at the
heart of a firm’s strategic plan
6) INTERNAL EMPLOYEE RELATIONS
 The interactions, dynamics, and relationships
among employees within a company.
 It encompasses how employees communicate,
collaborate, and work together as a team.
 Performance appraisal data are also used for
decisions in several areas of internal employee
relations, including promotion, demotion,
termination, layoff, and transfer
7) ASSESSMENT OF EMPLOYEE POTENTIAL
 Although past behaviors may be a good predictor
of future behaviors in some jobs, an employee’s
past performance may not accurately indicate
future performance in other jobs.
 Overemphasizing technical skills and ignoring
other equally important skills is a common error in
promoting employees into management jobs.
 Recognition of this problem has led some firms to
separate the appraisal of performance, which
focuses on past behavior, from the assessment of
potential, which is future-oriented.
 PERFORMANCE APPRAISAL ENVIRONMENTAL
FACTORS
1) EXTERNAL ENVIRONMENTAL FACTORS
 Legislation requires that appraisal systems be
nondiscriminatory
 Organizations should avoid using any appraisal
method that results in a disproportionately negative
impact on a protected group.
 Labor union that represents workers is another
external factor, unions have traditionally stressed
seniority as the basis for promotions and pay
increases
2) INTERNAL ENVIRONMENTAL FACTOS
 A firm’s corporate culture (own way of doing things,
and its own values. Refers to the combination of
values, behaviors, and attitudes within a
company—personality of the company) can assist
or hinder the process.
 PERFORMANCE APPRAISAL PROCESS
1) IDENTIFYING SPECIFIC PERFORMANCE
 starting point
 management should select the specific goals it
believes to be most important and realistically
achievable
2) ESTABLISH PERFORMANCE CRITERIA
(STANDARDS)
 Management must carefully select performance
criteria as it pertains to achieving corporate goals
 TRAITS:
 Difficult to define, subjective & unrelated to job
performance;
 Instead, they recommended using more
objective measures (things that can be
measured more clearly and aren't based on
opinions) to judge employees;
 However, certain traits may relate to job
performance and, if this connection is
established, using them may be appropriate.
 BEHAVIORS
 Desired behaviors may be appropriate as
evaluation criteria because if they are
recognized and rewarded, employees tend to
repeat them.
 If certain behaviors result in desired outcomes,
there is merit in using them in the evaluation
process (a good reason in including this on
evaluation)
 COMPETENCIES
 A broad range of knowledge, skills, traits, and
behaviors that may be technical in nature,
relate to interpersonal skills, or are business-
oriented
 Cultural competencies – ethic and integrity
 Job specific competencies – analytical
thinking and achievement orientation
 The competencies selected for evaluation
purposes should be those that are closely
associated with job success.
 Success in HR is dependent on competency
and specific skills in the following five key
areas:
 STRATEGIC CONTRIBUTION: Connecting
firms to their markets and quickly aligning
employee behaviors with organizational
needs.
 BUSINESS KNOWLEDGE: how businesses
are run and translating this into action.
 PERSONAL CREDIBILITY: Demonstrating
measurable value; being part of an executive
team.
 HR DELIVERY: Providing efficient and
effective service to customers
 HR TECHNOLOGY: Using technology and
Web-based means to deliver value to
customers.
 GOAL ACHIEVEMENT
 organizations consider ends more important
than means
 The outcomes established should be within
the control of the individual or team and should
be those results that lead to the firm’s success
 This should be the most positive element in
the entire process of employee appraisal.
 IMPROVEMENT POTENTIAL
 This involves an assessment of the
employee’s potential. Including potential in the
evaluation process helps to ensure more
 o COMMUNICATING PERFORMANCE
EXPECTATIONS TO EMPLOYEES
 The next important step is to communicate the
aforesaid standards to the concerned employees.
Their jobs and jobs-related behavior should be
clearly explained to them.
 It should be noted that job-related behaviors are
those critical behaviors that constitute job
success.
 The employee should not be presumed to guess
what is expected of him.
 It should be noted that here communication
means that the standards have been transmitted
to the employee and he has received and
understood them a two-way communication,
3) APPRAISAL PERIOD
 The specific time frame during which a company
evaluates its employees' performance.
 Formal performance evaluations are usually
prepared at specific intervals – either annually or
semiannually.
 Primarily informal – continuous interaction
including coaching and other developmental
activities, that continues throughout the appraisal
period.
 Some organizations use the employee’s date of
hire to determine the rating period. Or at the end of
a probationary period (30-90 days after)
 To determine what actual performance is, it is
necessary to acquire information about it. We
should be concerned with how we measure and
what we measure.
 Four sources of information are frequently used to
measure actual performance:
o Personal observation,
o Statistical reports,
o Oral reports, and
o Written reports.
 Comparing actual performance with standards, by
doing so the potentiality for growth and
advancement of an employee can be appraised
and judged.
4) DISCUSSING THE APPRAISAL WITH THE
EMPLOYEE
 Under these discussions, good points, weak
points, and difficulties are indicated and discussed
so that performance is improved.
 RESPONSIBILITY FOR APPRAISAL
1) IMMEDIATE SUPERVISOR
 Directly manages or oversees an employee's daily
tasks and responsibilities.
 The most logical choice for evaluating
performance because they have an excellent
position to observe the employee
 Subordinate training and development is an
important element in every manager’s job
 On the negative side,
 Bias: Sometimes, a supervisor might focus
too much on certain aspects of an employee's
performance and not pay enough attention to
other important areas.
 Manipulation: Managers might sometimes
manipulate evaluations to justify giving raises
or promotions to certain employees or to avoid
doing so.
 Distance and Expertise: If an employee and
their supervisor are far apart (in different
locations) or if the employee knows more
about their job than the supervisor, it can
complicate the evaluation process.
2) SUBORDINATES
 employees who work under a manager or
supervisor
 Some firms conclude that evaluation of managers
by subordinates is both feasible and needed to see
superiors’ managerial effectiveness.
 Critics' Concerns: However, there are critics who
worry that this approach could turn into a popularity
contest, where employees rate their managers
based on how much they like them, rather than
their actual performance. Some employees might
also fear retaliation if they provide negative
feedback.
3) PEERS AND TEAM MEMBERS
 Team members know each other’s’ performance
better than anyone and can, therefore, evaluate
performance more accurately.
 Peer pressure is a powerful motivator for team
members.
 Peer review involves numerous opinions and is not
dependent on one individual
 Challenges with Peer Evaluations:
 People who work closely together, especially
in teams, might hesitate to criticize each other.
 On the other hand, if someone has had
conflicts with a coworker, they might give them
a really bad rating out of frustration, which
wouldn't be fair.
 Another challenge is when peers don't interact
much or don't have enough information to
judge someone's work accurately.
 They show little interest in their teams
4) SELF-APPRAISAL
 Be your own critic. If employees understand their
objectives and the criteria used for evaluation, they
are in a good position to appraise their own
performance
 Self-appraisal provides employees with a means of
keeping the supervisor informed about
everything the worker has done during the
appraisal period
 Self-appraisal has great appeal to managers who
are primarily concerned with employee
participation and development.
5) CUSTOMER APPRAISAL
 This is when a company asks its customers to give
feedback
 Customer behavior determines a firm’s degree of
success
 Organizations use this approach because
 It demonstrates a commitment to the
customer,
 Holds employees accountable,
 Fosters change.
 Customer-related goals for executives generally
are of a broad, strategic nature, whereas
 targets for lower-level employees tend to be more
specific that they can control
 METHODS OR TECHNIQUES OF PERFORMANCE
APPRAISAL
1) TRADITIONAL METHODS
a) RANKING METHOD
 The oldest and simplest method of rating.
 The rater ranks all employees from a group in order
 A difficulty occurs when all individuals have
performed at comparable levels (as perceived by
the evaluator).
 PAIRED COMPARISON – a variation of the
ranking method in which the performance of each
 employee is compared with that of every other
employee in the group.
 SINGLE CRITERION - such as overall
performance, is often the basis for this comparison.
b) CRITICAL INCIDENT METHOD
 Requires keeping written records of highly
favorable and unfavorable employee work actions.
 The appraisal is more likely to cover the entire
evaluation period and not focus on the past few
weeks or months.
c) ESSAY METHOD
 The rater writes a brief narrative describing the
employee’s performance.
 Focuses on extreme behavior in the employee’s
work rather than on routine day-to-day
performance.
 Depend heavily on the evaluator’s writing ability.
 Comparing essay evaluations might be difficult
because no common criteria exist.
 Some managers believe that the essay method is
not only the simplest but also an acceptable
approach to employee evaluation.
d) WORK STANDARDS METHOD
 A performance appraisal method that compares
each employee’s performance to a predetermined
standard or expected level of output.
 Standards reflect the normal output of an average
worker operating at a normal pace
 Mostly popular in production jobs
 An obvious advantage of using standards as
appraisal criteria is objectivity
e) FORCED DISTRIBUTION METHOD
 Requires the rater to assign individuals in a work
group to a limited number of categories.
 To keep managers from being excessively lenient
and having a disproportionate number of
employees in the “superior” category.
 They think that forced rankings require managers
to be honest with workers about how they are
doing.
 The forced distribution systems tend to be based
on three levels. – The best performers,
middle/average, poorest performers
 The forced distribution system appears to be
unpopular with many because
 It damages morale and generates mistrust of
leadership.
 Some believe it fosters cutthroat competition,
paranoia, and general ill will, and destroys
employee loyalty
 Critics of forced distribution contend that they
compel managers to penalize a good, although not
a great, employee who is part of a superstar team.
 One reason employees are opposed to forced
ranking is that they suspect that the rankings are a
way for companies to rationalize firings more
easily.
f) GRAPHIC RATING SCALE METHOD
 This is a very popular, traditional method of
performance appraisal.
 A performance appraisal method where evaluators
record their judgments about performance on a
scale – that rates employees according to defined
factors
 The method generally allows for the use of more
than one performance criterion
 JOB-RELATED FACTORS – include quality and
quantity of work,
 PERSONAL CHARACTERISTICS FACTORS –
include such behaviors as interpersonal skills and
traits, like adaptability
 Rater (evaluator) completes the form by indicating
the degree of each factor that is most descriptive
of the employee and his or her performance
 One reason for the popularity of the rating scales
method is its simplicity, which permits quick
evaluations of many employees.
g) GRADING METHOD
 Different grades are developed for evaluating the
ability of different employees and then the
employees are placed in these grades.
 These grades may be as follows: (i) excellent; (ii)
very good; (iii) good; (iv) average; (v) bad; (vi)
worst.
h) MANNING COMPARISON METHOD / FACTOR
COMPARISON METHOD
 This method was first used in the US Army during
the 1st World War.
 Factor comparison is systematic and scientific
method designed to carry out job evaluation which
instead of ranking job as a whole, ranks according
to a series of factors.
2) COLLABORATIVE / MODERN METHOD OF
APPRAISAL AND CAREER DEVELOPMENT
a) 360-DEGREE FEEDBACK EVALUATION
METHOD
 A popular performance appraisal method that
involves evaluation input from multiple levels within
the firm as well as external sources which focuses
on skills needed across organizational boundaries.
 For succession planning, training, and professional
development.
 Advantages:
 Common appraisal errors can be reduced or
eliminated.
 May provide a more objective measure of a
person’s performance
 Having multiple raters also makes the process
more legally defensible
 Disadvantages:
 It will take more time, and therefore, be more costly
 Some managers worry that people might say only
positive things
 The biggest risk with 360-degree feedback is
confidentiality – it must completely anonymous.
b) MANAGEMENT BY OBJECTIVE (MBO) /
RESULT-BASED SYSTEM
 The manager and subordinate jointly agree on
objectives for the next appraisal period and at the
end of the appraisal period, an evaluation focuses
on how well the employee achieved this
c) BEHAVIORALLY ANCHORED RATING SCALES
(BARS)
 A performance appraisal method that combines
elements of the traditional rating scales and critical
incident methods
 Various performance levels are shown along a
scale with each described in terms of an
employee’s specific job behavior. A BARS
system differs from rating scales because, instead
of using terms such as high, medium, and low at
each scale point, it uses behavioral anchors related
to the criterion being measured.
 Advantages:
 This modification clarifies the meaning of each
point on the scale and reduces rater bias and error
by anchoring the rating with specific behavioral
examples based on job analysis information.
 It addresses specific behaviors, thus overcoming
weaknesses in other evaluation methods.
  The BARS method is perhaps the most highly
defensible in court because it is based on actual
observable job behaviors.
 Disadvantages:
 A specific deficiency is that the behaviors used are
activity oriented rather than results oriented.
 Also, the method may not be economically feasible
since each job category requires its own BARS
d) HUMAN ASSET ACCOUNTING METHOD
 The performance appraisal of the employees is
judged in terms of cost and contribution of the
employees. The cost of employees include all the
expenses incurred on them like their
compensation, recruitment and selection costs,
induction and training costs etc.
 If well-trained employees leave a firm, the human
organization is worthless; if they join it, its human
assets are increased. If distrust and conflict prevail,
the human enterprise is devalued. If teamwork and
high morale prevail, human organization is a very
valuable asset.
e) ASSESSMENT CENTER METHOD
 The employees are assessed based on their
performance like social-stimulating exercises like
role-playing, decision-making, informal
discussions, etc. The assessment evaluates the
performance of employees to identify future
leaders and managers.
 PROBLEMS IN PERFORMANCE APPRAISAL
1) APPRAISER DISCOMFORT
 Create conflict between supervisors and
subordinates and lead to dysfunctional behaviors
 If a performance appraisal system has a faulty
design, or improper administration, employees will
dread receiving appraisals and the managers will
despise giving them, also the process takes a lot of
time, paperwork, & difficult choices.
2) LACK OF OBJECTIVITY
 Potential weakness of traditional performance
appraisal – factors that may have little to do with an
employee’s job performance
 The statement is cautioning against relying too
heavily on personal characteristics when
evaluating employees' performance.
 It can lead to potential conflicts with employees and
may not align with equal employment opportunity
 CHARACTERISTICS OF AN EFFECTIVE APPRAISAL
guidelines, which require fair and job-related
evaluations.
 Therefore, it's advisable to base performance
appraisals on job-related factors rather than
personal characteristics to ensure fairness and
compliance with regulations.
3) HALO / HORN
 HALO ERROR - occurs when a manager
generalizes one positive performance feature or
incident to all aspects of employee performance,
resulting in a higher rating
 Generalizes one positive performance = resulting
in a higher rating
 HORN ERROR - an evaluation error that occurs
when a manager generalizes one negative
performance feature or incident to all aspects of
employee performance, resulting in a lower rating.
 Generalizes one negative performance = resulting
in a lower rating
4) LENIENCY / STRICTNESS
 LENIENCY
 Some managers are too generous with praise
or too hard on a person
 Giving undeserved high ratings to an
employee
 Often motivated by a desire to avoid
controversy over the appraisal
 May result in failure to recognize correctable
deficiencies
 May also deplete the merit budget and reduce
the rewards available for superior employees
 STRICTNESS
 Being unduly critical of an employee’s work
performance
5) CENTRAL TENDENCY ERROR
 An evaluation appraisal error that occurs when
employees are incorrectly rated near the average
or middle of a scale
 The problem is that this makes it challenging to
differentiate between employees who are truly
average and those who excel or underperformed.
6) RECENT BEHAVIOR BIAS
 an employee’s behavior often improves and
productivity tends to rise several days or weeks
before the scheduled evaluation.
7) PERSONAL BIAS (STEREOTYPING)
 when managers allow individual differences
(cultural bias, stereotyping) to affect the ratings
they give
 If these are factors to avoid such as gender, race,
or age, not only is this problem detrimental to
employee morale, but it is blatantly illegal and can
result in costly litigation.
 Managers establish mental pictures of what are
considered ideal typical workers, and employees
who do not match this picture may be unfairly
judged.
8) MANIPULATING THE EVALUATION
 the supervisor may give intentionally the employee
an undeserved high performance evaluation and
perhaps a less favored, but productive, employee
a lower rating
9) EMPLOYEE ANXIETY
 This refers to the feelings of worry, stress, or
unease that employees may experience when they
know they are going to be evaluated or assessed
by their managers.
 This may take the form of discontent
(unhappy/dissatisfied), apathy (indifferent/less
interested), and turnover (quit/leave).
SYSTEM
1) JOB-RELATED CRITERIA
 The most basic criterion – Appraisal system should
focus on things that are directly related to the
employee's job.
2) PERFORMANCE EXPECTATIONS
 If employees clearly understand the expectations,
they can evaluate their own performance and make
timely
3) STANDARDIZATION
 use the same evaluation instrument for all
employees in the same job category who work for
the same supervisor and should conduct
appraisals covering similar periods for these
employee.
 Records should also include a description of
employee responsibilities, expected performance
results, and the role these data play in making
appraisal decisions
4) TRAINED APPRAISERS
 People who evaluate employees should be trained
in how to do it properly.
  This training should be ongoing, not just a one-time
thing, to make sure evaluations are fair and
consistent.
5) CONTINUOUS OPEN COMMUNICATION
 A good appraisal system provides highly desired
feedback on a continuing basis so there are no big
surprises during the annual review.
 Continuous feedback is vitally important to help
direct, coach, and teach employees to grow and
improve performance
6) CONDUCT PERFORMANCE BEHAVOR
 A special time should be set for a formal discussion
of an employee’s performance.
 A performance review allows them to detect any
errors or omissions in the appraisal, or an
employee may disagree with the evaluation and
want to challenge it.
7) DUE PROCESS
 To provide employees an opportunity to appeal
appraisal results that they consider inaccurate or
unfair
 LEGAL IMPLICATIONS
o Employees should have a way to raise their concerns,
and the company should address these concerns fairly
and objectively. The courts normally require these
conditions:
 NO DISCRIMINATIONS: Either the absence of
adverse impact on members of protected classes
or validation of the process.
 NO ONE PERSON IN CONTROL: A system that
prevents one manager from directing or controlling
a subordinate’s career.
 REVIEW AND APPROVAL: The appraisal should
be reviewed and approved by someone or some
group in the organization.
 KNOWLEDGEABLE RATERS: The rater, or
raters, must have personal knowledge of the
employee’s job performance.
 SET CRITERIA: The appraisal systems must use
predetermined criteria that limit the manager’s
discretion.
o An employer may also be vulnerable to a negligent
retention claim if an employee who continually
receives unsatisfactory ratings in safety practices, for
example, is kept on the payroll and he or she causes
injury to a third party
 APPRAISAL INTERVIEW
 The appraisal interview is the Achilles’ heel of the entire
evaluation process.
 The appraisal interview, which is the meeting between
a manager and an employee to discuss their
performance evaluation, can sometimes be a tricky and
delicate process.
1) SCHEDULING THE INTERVIEW STRUCTURE
 It means deciding when the manager and
employee will sit down to discuss the employee's
performance
 Supervisors usually conduct a formal appraisal
interview at the end of an employee’s appraisal
period.
2) INTERVIEW STRUCTURE
 Should be structured in a way that allows both the
supervisor and the subordinate to view it as a
problem-solving rather than a fault-finding session
 Although costs are a consideration, there is merit
in conducting separate interviews for discussing:
(1) employee performance and development and
(2) pay.
3) USE OF PRAISE AND CRTICSM
 Conducting an appraisal interview requires tact and
patience on the part of the evaluator.
 Praise is appropriate when warranted, but it can
have limited value if not clearly deserved.
 Criticism, even if warranted, is especially difficult to
give
 It is important that discussions of these sensitive
issues focus on the deficiency, not the person.
4) EMPLOYEES’ ROLE
 The best recourse for employees in preparing for
an appraisal review is to prepare a list of creative
ways they have solved problems with limited
resources.
5) COLCUDING THE INTERVIEW
 The interview should end with specific and mutually
agreed upon plans for the employee’s development
 The interview should ideally leave employees
feeling positive about the company, their job, and
themselves. If it leaves them feeling down, it's
unlikely their performance will improve.
 The interview should conclude with specific plans
for the employee's development that both the
manager and the employee agree on.
RISK MANAGEMENT
 Poor Safety Practices Raise Wage Rates
 Safety Problems Lead to More Costs
 The Supervisor’s Role in Accident Prevention
 the local supervisor was responsible for day-to-day
inspections.
 Daily safety inspections should be part of your routine
 RECORD KEEPING
 Employers must report all occupational illnesses
 An occupational illness is any abnormal condition or
disorder caused by exposure to environmental factors
associated with employment.
 INSPECTIONS AND CITATIONS
o INSPECTION PRIORITIES
 Takes a “worst-first” approach.
 Conducts an inspection within 24 hours when a
complaint indicates an immediate danger, and
within 3 working days when a serious hazard
exists.
 For a “nonserious” complaint filed in writing by a
worker or a union,
o THE INSPECTION
 The inspection begins when the OSHA officer
arrives at the workplace.
 The five most frequent OSHA inspection violations
were
for fall protection,
hazard communication,
scaffolding,
respiratory protection,
lockout/tagout.
 Finally, the inspector holds a closing conference
with the employer’s representative, and discusses
apparent violations for which OSHA may issue or
recommend a citation and penalty.
o PENALTIES
 In general, OSHA calculates penalties based on
the gravity of the violation, usually taking into
consideration things like the size of the business,
the firm’s compliance history, and the employer’s
good faith (although not for willful violations).
 RESPONSIBILTIES AND RIGHTS OF EMPLOYERS AND
EMPLOYEES
o EMPLOYERS
 are responsible for providing “a workplace free
from recognized hazards:
 o EMPLOYEES
 are responsible, for example, for complying with
all applicable OSHA standards
 WHAT CAUSES ACCIDENTS?
 Chance Occurrences,
 Unsafe Conditions,
 Employees’ Unsafe Acts
 UNSAFE CONDITION
Main causes of accidents:
1) Improperly guarded equipment
2) Defective equipment
3) Hazardous procedures around machines or equipment
4) Unsafe storage—congestion, overloading
5) Improper illumination—glare, insufficient light
6) Spills on floors
7) Tripping hazards, such as blocked aisles
8) Working from heights, including ladders and scaffolds
9) Electrical hazards like frayed cords
10) Work schedules and fatigue also affect accident rates.
 REDUCING UNSAFE CONDITIONS
 Reducing unsafe conditions is the employer’s first line
of defense.
 Safety engineers should design jobs to remove or
reduce physical hazards.
 Supervisors play an important role. Checklists can
help identify and remove potential hazards.
 Lockout/tagout is a formal procedure to disable
equipment such as power saws, to avoid unexpected
activation.
1) JOB HAZARD ANALYSIS
 Involves a systematic approach to identifying and
eliminating such hazards before they cause
accidents.
 The job hazard analysis should provide the basis
for creating countermeasures
2) OPERATIONAL SAFETY REVIEWS
 are conducted by agencies to ascertain whether
units under their jurisdiction are complying with all
the applicable safety laws, regulations, orders, and
rules.
3) PERSONAL PROTECTIVE EQUIPMENT
 fit properly;
 be easy to care for;
 be flexible and lightweight;
 be maintained in a clean and reliable fashion, for
instance.
4) PROTECTING VULNERABLE WORKERS
 They should provide proper safety equipment for
women (smaller sizes) and make adjustments for
older workers (boost lighting levels and reduce
heavy lifting)
 Having CPR (cardiopulmonary resuscitation)
equipment and defibrillators ready, and making
sure some employees know how to use them, can
save lives (heart attack while on job)
 UNSAFE ACTS
 There is evidence that people who are impulsive,
sensation seeking, extremely extroverted, less
agreeable, and less conscientious (in terms of being
less fastidious and dependable) do have more
accidents.
o Entitlement – “think there’s no reason they should
not speed”)
o Impatience – “were ‘always in a hurry’”
o Aggressiveness – “the first to move when the light
turns green”
o Distractibility – “frequently distracted by cell
phones, eating, and so on”
 HOW TO PREVENT ACCIDENTS
 Larger firms generally have a chief safety officer (or
“environmental health and safety officer”). But in
smaller firms, managers, including those from human
resources, plant managers, and first-line managers,
share these responsibilities.
 First, try to eliminate potential risks, such as unguarded
equipment.
 Next, reduce potential distractions such as noise, heat,
and stress.
 Then, carefully screen and train employees
 REDUCING UNSAFE ACTS
1) Through Screening
 The employer’s aim is to identify the traits that
predict accidents on the job and then test
candidates for these traits.
 Employee Reliability Index (ERI) measures
dimensions such as emotional maturity,
conscientiousness, and safe job performance.
 Others: work sample tests, physical abilities,
Physical Demands Assessments (PDAS), and
Behavioral interview questions
2) Through Training
 Safety training reduces unsafe acts, especially for
new employees. Here the employer should instruct
employees in safe practices and procedures, warn
them of potential hazards, and work to develop a
safety-conscious employee attitude.
 Employees must demonstrate that they actually
learned what to do.
 One study found that the most effective safety
training elicited employee engagement
 The “least engaging” programs: lectures, films,
reading materials, video-based training.
 “Moderately engaging” programs: computer
interface instruction with feedback.
 “Engaging” ones: behavioral modeling,
simulation, hands-on training.
3) Through Posters, Incentives, And Positive
Reinforcement
 Posters should be easily visible, legible, and well-
lit.
 Incentives for safety-related worker behaviors
such as participating in a safety meeting, reporting
a near miss, or reporting unsafe conditions.
 Positive reinforcement programs to improve
safety. Such programs provide workers with
continuing positive feedback
4) By Fostering a Culture of Safety
 According to one safety expert, a workplace with a
safety-oriented culture exhibits: Teamwork,
communication and collaboration, shared vision,
assignment, continuous effort, and encouragement
5) By Creating a Supportive Environment
 by training supervisors to be better leaders
6) By Establishing a Safety Policy
 The company’s written safety policy should
emphasize that accident prevention is of the
utmost importance
7) By Setting Specific Loss Control Goals
 Set specific safety goals to achieve. For example,
set safety goals in terms of frequency of lost-time
injuries per number of full-time employees.
8) Through Behavior-Based Safety and Safety
Awareness Programs
 Behavior-based safety means identifying the
worker behaviors that contribute to accidents and
then training workers to avoid these behaviors
 In a safety awareness program new workers
receive critical information regarding the job’s
common safety hazards and simple prevention
methods, often when first arriving at a job site.
 9) Through Employee Participation
 Ideally, the employer should encourage all workers
to participate, to feel comfortable reporting safety
or health concerns, and to have access to the
information they need to participate in the program.
10) Conducting Safety and Health Audits and
Inspections
 First, line managers should periodically inspect
their areas using safety audit/checklists including
investigating all accidents and “near misses.”
 With safety audits, safety-related metrics would
include, for instance, injury and illness rates,
workers’ compensation cost per employee, at-risk
behavior reduction, and safety training exercises.
 Ideally, trend the audit data (for instance, to see if
accident rates are rising or falling or steady), and
track the corrective actions through to completion
 WORKPLACE HEALTH HAZARDS: PROBLEMS AND
REMEDIES
1) CHEMICAL AND INDUSTRIAL HYGIENE
 Chemicals, such as asbestos and lead.
 Managing such hazards comes under the purview
of industrial hygiene, and involves recognition,
evaluation, and control
 RECOGNIZE possible exposure hazards.
 Once the manager identifies a possible hazard,
EVALUATION involves determining how severe it
is.
 Hazard CONTROL involves eliminating or
reducing the hazard.
2) ALCOHOLISM AND SUBSTANCE ABUSE
 Ideally, a drug-free workplace program includes
five components:
o A drug-free workplace policy
o Supervisor training
o Employee education
o Employee assistance
o Drug testing
 Alcohol-related symptoms range from tardiness in
the earliest stages of alcohol abuse to prolonged,
unpredictable absences in its later stages
3) STRESS, BURNOUT, AND DEPRESSION
a) STRESS
 These include belligerent bosses or colleagues,
poor job security, low pay, unpredictable
schedules, workplace noise, excessive workloads,
inadequate control over job-related decisions,
unclear performance expectations, and arrogant
customers
 Human consequences of job stress include
anxiety, depression, anger, cardiovascular
disease, headaches, accidents, and even early
onset Alzheimer’s disease
 For the employer, consequences include
diminished performance and increased
absenteeism and turnover.
 There are several ways to alleviate dysfunctional
stress. These range from commonsense remedies
(getting more sleep) to biofeedback and
meditation. Finding a more suitable job, getting
counseling, and planning each day’s activities are
other sensible responses.
 Some employers use “resilience training” to help
employees deal with stress.
b) BURNOUT
 The total depletion of physical and mental
resources caused by excessive striving to reach an
unrealistic work-related goal.
 Burnout manifests itself in symptoms like irritability,
discouragement, exhaustion, cynicism,
entrapment, and resentment
 Break your patterns. The more well-rounded your
life is, the better protected you are against burnout.
 Get away from it all periodically. Schedule
occasional periods of introspection where you can
get away from your usual routine..
 Reassess your goals in terms of their intrinsic
worth. Are the goals you’ve set for yourself
attainable? Are they really worth the sacrifices?
 Think about your work. Could you do as good a
job without being so intense?
 Stay active. One study concluded that “the
increase in job burnout and depression was
strongest among employees who did not engage in
physical activity and weakest to the point of non-
significance among those engaging in high
physical activity.”
c) EMPLOYEE DEPRESSION
 Employee depression is a serious work problem.
Depressed people also tend to have worse safety
records
 Depression is a disease.
 Typical depression warning signs (if they last for
more than 2 weeks) include:
o persistent sad, anxious, or “empty” moods;
o sleeping too little;
o reduced appetite;
o loss of interest in activities once enjoyed;
o restlessness or irritability;
o difficulty concentrating.
4) SOLVING COMPUTER-RELATED ERGONOMIC
PROBLEMS
 Its prescriptions include, place the monitor directly
in front of you, ensure it’s at arm’s length, and look
away from the monitor every 20 minutes while
focusing on something at least 20 feet away.
5) REPETITIVE MOTION DISORDERS
 Repetitive motion disorders include carpal tunnel
syndrome and tendonitis.
 They result from too many uninterrupted repetitions
of an activity or motion, or from unnatural motions
such as twisting the arm or wrist.
 Employers can reduce the problem, for instance,
with programs to help workers adjust their pace of
work.
6) SITTING
 Studies suggest that people who sit a lot are in
poorer health, and need to get up and walk around
about 30 or 40 times a day.
7) INFECTIOUS DISEASES
 Encourage employees to receive immunizations.
 Provide daily medical screenings for employees
returning from infected areas.
 Deny access for 10 days to employees or visitors
who have had contact with suspected infected
individuals.
 Tell employees to stay home if they have a fever or
respiratory system symptoms.
 Clean work areas and surfaces regularly.
 Practice hand hygiene, and make sanitizers easily
available.
 Stagger breaks. Offer several lunch periods to
reduce overcrowding.
8) WORKPLACE SMOKING
 Smoking is a serious health and cost problem. For
employers, costs derive from higher health and fire
insurance, increased absenteeism, and reduced
productivity
 OCCUPATIONAL SECURITY AND RISK MANAGEMENT
 Workplace safety relates to risks of injury or illness to
employees.
 Workplace security relates to protecting employees
from internal and external security risks such as
criminal acts by visitors and terrorism.
1) ENTERPRISE RISK MANAGEMENT
 “the process of assessing exposures to loss within
an operation and determining how best to
eliminate, manage or otherwise reduce the risk of
an adverse event from having a negative impact on
the business.”
 Other risks, for instance,
o Natural disaster risks,
o Financial risks,
o Risks to the firm’s computer systems.
o Human capital risks rank high.
o risks from unionization
o risks from inadequate staffing plans
 Employer manages a risk depends on the type of risk:
o Internal Preventable Risks arise from actions
within the company and include things like
employees’ illegal conduct or workplace accidents.
Employers manage these risks with methods such
as codes of conduct, disciplinary procedures, and
safety rules.
o Strategy Risks are risks that managers accept as
part of executing their strategies, such as the risk a
banker takes that a borrower defaults. Employers
manage some strategy risks with independent
experts (like those who assess insurance risks)
and with in-house experts, like the risk managers
who help to oversee banks’ loan portfolios.
o External Risks come from outside the company
and include things like political and natural
disasters and terrorism. Managing external risks
might involve methods like scenario planning, in
which the company endeavors to identify, analyze,
and plan for multiple possible eventualities.
2) PREVENTING AND DEALING WITH VIOLENCE AT
WORK
 Heightened security measures are the first line of
defense
 Improve employee screening
 Establish a zero-tolerance policy toward workplace
violence
 Use workplace violence training
 Guidelines for firing a high-risk employee
 The Gender-Motivated Violence Act (part of the
Violence Against Women Act) imposes liabilities on
employers whose women employees become
violence victims.
 Tangible security improvements including better
lighting, cash-drop boxes, and similar steps can
help. Women (and men) should have access to
domestic crisis hotlines, and to employee
assistance programs.
3) SECURING THE FACILITY
 Workplace security relates to protecting
employees from internal and external security risks
(such as robberies and terrorism).
 In simplest terms, instituting a basic facility security
program requires four steps:
o (1) analyzing the current level of risk (initial
threat assessment)
 Reception area access
 Interior security
 Authorities’ involvement
 Mail handling
 Evacuation
 Backup systems
o (2) installing natural security
 capitalizing on the facility’s natural or
architectural features to minimize
security problems.
o (3) installing mechanical security
 the utilization of security systems
such as locks, intrusion alarms,
access control systems, and
surveillance systems.
o (4) installing organizational security
 using good management to improve
security. it means properly training
and motivating security staff and
lobby attendants.
4) TERRORISM
 Identifying, assessing and mitigating potential
insider threats. While there is no single profile of an
insider threat, HR professionals should establish
an evaluation framework that includes threat
indicators, data profiles, and behavioral signals.
5) CYBERSECURITY
 Data protection and cybersecurity are specialized
areas requiring special expertise. Every employee
plays a security role:
 First, the CEO setting policy to first-line
employees guarding their passwords.
 Second, “old data is bad data.” In other words,
destroy unneeded old personal data (say from five
years ago) unless it’s absolutely required.
 Third, encrypt. That includes data in laptops
employees carry with them.
 Fourth, monitor. The IT staff should periodically
assess cyber risks.
6) BUSINESS CONTINUITY AND EMERGENCY PLANS
 The employer needs plan for business continuity in the
event of a disaster. The disaster plans should include
establishing a command center and identifying
employees considered essential in the event of a
disaster, including responsibilities for each.
INDUSTRIAL ORGANIZATIONAL PSYCHOLOGY
 INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY
 Branch of psychology that applies the principles of
psychology to the workplace
 I/O Psychology examines factors that affect the people
in an organization as opposed to the broader aspects
of running an organization
 It used to form work group to understand employee
conflict, and principles of motivations and emotions are
used to motivate and satisfy employees.
 INDUSTRIAL APPROACH
 focuses on determining the competencies needed to
perform a job, staffing the organization with employees
who have those competencies, and increasing those
competencies through trainings
 ORGANIZATIONAL APPROACH
 creates an organizational structure and culture that will
motivate employees to perform well, give them the
necessary information about their jobs, and provide
working conditions that are safe and result in an
enjoyable and satisfying work/life environment
 I/O psychologists were employed to test recruits and then
place them in appropriate positions. The testing was
accomplished mainly through the Army Alpha and Army
Beta tests of mental ability.
 The Alpha test was used for recruits who could read
and,
 The Beta test for recruits who could not read.
 The more intelligent recruits were assigned to officer
training, and the less intelligent to the infantry.
 HATHORNE STUDIES  The lack of agreement between two people who
 The Hawthorne studies were initially designed to provide references for the same person
investigate such issues as the effects of lighting levels, o Ethical guidelines that reference providers should
work schedules, wages, temperature, and rest breaks follow
on employee performance.  Explicitly state your relationship:
 Hawthorne Effect – employees changed their behavior Dual roles: a person may be a supervisor as well
and became more productive because they were being as a good friend.
studies and received attention from their managers Nature of the referee–referent relationship
 Be honest in providing details
 MAJOR FIELD OF I/O PSYCHOLOGY  Let the applicant see the references
1) PERSONNEL PSYCHOLOGY  PREDICTING PERFORMANCE
 Study and practice in such areas as analyzing jobs, 1) USING APPLICANT TRAINING AND EDUCATION
recruiting applicants, selecting employees, 2) USING APPLICANT KNOWLEDGE
determining salary levels, training employees, and  JOB KNOWLEDGE TESTS: designed to measure
evaluating employee performance how much a person knows about a job
 Construct performance appraisal instruments to  Excellent content and criterion validity; high face
evaluate employee performance validity
 Usually work in a training department of an 3) USING APPLICANT ABILITY
organization and are involved in such activities as ABILITY TESTS: tap the extent to which an applicant
identifying the organization’s training needs, can learn or perform a job-related skill
developing training programs, and evaluating
training success. d) COGNITIVE ABILITY
2) ORGANIZATIONAL PSYCHOLOGY  Oral and written comprehension,
 Are concerned with the issues of leadership, job  Oral and written expression,
satisfaction, employee motivation, organizational  Numerical facility,
communication, conflict management,  Originality,
organizational change, and group processes within  Memorization,
an organization.  Reasoning (mathematical, deductive,
3) HUMAN FACTORS / ERGONOMICS inductive), and
 Concentrate on workplace design, human-machine  General learning
interaction, ergonomics, and physical fatigue and  Result in high levels of adverse impact and
stress lack face validity
e) PERCEPTUAL ABILITY
EMPLOYEE SELECTION:  Vision (near, far, night, peripheral),
REFERENCE AND TRAINING  Color discrimination,
 Depth perception,
 PREDICTING PERFORMANCE USING REFERENCES  Glare sensitivity,
AND LETTERS OF RECOMMENDATION  Speech (clarity, recognition), and
 Hearing (sensitivity, auditory attention, sound
REFERENCE CHECK localization)
 The process of confirming the accuracy of information f) PSYCHOMOTOR ABILITY
provided by an applicant.  Includes finger dexterity,
REFERENCE:  Manual dexterity,
 The expression of an opinion, either orally or through a  Control precision,
written checklist, regarding an applicant’s ability,  Multi limb coordination,
previous performance, work habits, character, or  Response control,
potential for future success.  Reaction time,
LETTER OF RECOMMENDATION  Arm-hand steadiness,
 A letter expressing an opinion regarding an applicant’s  Wrist-finger speed, and
ability, previous performance, work habits, character, or
 Speed-of-limb movement
potential for future success. g) PHYSICAL ABILITY
 Are often used for jobs that require physical
 REASONS FOR USING REFERENCES AND
strength and stamina
RECOMMENDATIONS
 Physical ability is measured in one of two
o Confirming details on a resume
ways: job simulations and physical agility tests.
o Checking for discipline problems:
 With a job simulation – applicants actually
o avoiding negligent hiring
demonstrate job-related physical behaviors.
o Discovering new information about the applicant
o Predicting future performance: Low validity in  Nine Basic Physical Activities: dynamic
predicting future employee success because: strength, trunk strength, explosive strength,
 Leniency static strength, dynamic flexibility, extent
flexibility, gross body equilibrium, gross body
 Applicants choose references that would help them
coordination, stamina
in application by showing only positive sides
 Negligent reference  USING APPLICANT SKILLS
1) WORK SAMPLES
 occur when former employee feels guilty of not
providing relevant information to an organization  The applicant performs actual job-related tasks.
that request it.  Directly related to job tasks, they have excellent
 Knowledge of the Applicant content validity
 The person writing the letter often does not know  Tend to predict actual work performance and thus
the applicant well, has not observed all aspects of have excellent criterion validity
an applicant’s behavior, or both.  Samples have excellent face validity
 Reliability  Lower racial differences
  Can be expensive to both construct and administer
2) ASSESSMENT CENTERS
 Selection techniques characterized by the use of
multiple assessment methods that allow multiple
assessors to actually observe applicants perform
simulated job tasks
a) IN-BASKET TECHNIQUE
 Designed to simulate the types of daily information
that appear on a manager’s or employee’s desk
b) SIMULATIONS
 Include diverse activities as role plays and work
samples, place an applicant in a situation that is
similar as possible to one that will be encountered
on the job
c) WORK SAMPLE
 If simulation does not involve situational exercise
d) LEADERLESS GROUP DISCUSSIONS
 Applicants meet in small groups and are given a
job-related problem to solve or a job-related issue
to discuss
e) BUSINESS GAMES
 Exercises that allow the applicant to demonstrate
such attributes as creativity, decision making, and
ability to work with others
2) PSYCHOLOGICAL EXAMS: an examination of the
applicant’s life history, and the administration of one or
more of the psychological tests. It is important to keep
in mind that psychological exams are not designed to
predict employee performance
3) MEDICAL EXAMS: the physician is given a copy of
the job description and asked to determine if there are
any medical conditions that will keep the employee
from safely performing the job.
-END-
Sources: HREAP Reviewers, HRM by Gary Dessler 16 th ed, I/O
Psychology by Michael G. Aamodt, & from other chra
reviewers
ADDITIONAL TIPS:
 Aside from the reviewers na binigay ng hreap, read other
reference! Like dessler and much better if recall niyo yung
topics from your I/O subject.
 I recommend Sir Louis Montano’s yt vids. Ito yung I/O
playlist niya 
https://www.youtube.com/watch?v=rIPaK5ObMpM&list=PL
_4oyk2RBdFfZb388intQRy2WVDSJPZOO

 USING PRIOR EXPERIENCES

1) EXPERIENCE RATINGS: Past experience will predict
future experience
2) BIODATE: A selection method that considers an
applicant’s life, school, military, community, and work
experience

 USING PERSONALITY, INTEREST AND CHARACTER

1) PERSONALITY INVENTORIES: Predict performance
better
a) TESTS OF NORMAL PERSONALITY:
Measures the traits exhibited by normal
individuals in everyday life
b) TEST OF PSYCHOPATHOLOGY: Determines
whether individuals have serious psychological
problems
 Projective Tests: provide the respondent
with unstructured tasks such as describing
ink blots and drawing pictures
 Objective Tests: structured so that the
respondent is limited to a few answers that
will be scored by standardized keys
2) INTEREST INVENTORIES: The most commonly used
interest inventory is the Strong Interest Inventory (SII),
The theory behind these tests is that “an individual with
interests similar to those of people in a particular field
will more likely be satisfied in that field than in a field
composed of people whose interests are dissimilar.”
3) INTEGRITY TESTS: Also called honesty tests tell an
employer the probability that an applicant would steal
money or merchandise
 Personality-Based Integrity Tests: are more
general in that they tap a variety of personality traits
thought to be related to a wide range of
counterproductive behavior
4) CONDITIONAL REASONING TESTS: Were develop
to reduce these inaccurate responses and get a more
accurate picture of a person’s tendency to engage in
aggressive or counterproductive behavior
5) GRAPHOLOGY: An interesting method to select
employees is handwriting analysis. The way people
write reveals their personality, which in turn should
indicate work performance

 LIMITATIONS DUE TO MEDICAL AND

PSYCHOLOGICAL PROBLEMS
1) DRUG TESTING: certainly is one of the most
controversial testing methods used by HR professionals
 HANDBOOK WORKERS’ STATUTORY MONETARY  Regional Tripartite Wages and Productivity Boards
BENEFITS (2023 EDITION) (RTWPBs)
 The said law rationalized wage determination by
establishing the mechanism and proper standards
through the creation of
 COVERAGE: The wage increases prescribed under Wage
Orders apply to all private sector workers and employees
receiving the daily minimum wage rates or those receiving
up to a certain daily wage ceiling, where applicable,
regardless of their position, designation, or status of
employment, and irrespective of the method by which their
wages are paid, EXCEPT workers of duly registered
Barangay Micro Business Enterprises (BMBEs) with
Certificate of Authority pursuant to Republic Act No.
10644.
 Temporary exemption possible: exempted from
compliance with wage order for not exceeding 1 year.

MINIMUM WAGE

 REPUBLIC ACT NO. 6727 – “WAGE RATIONALIZATION

ACT”
 Mandates the fixing of the minimum wages applicable
to different industrial sectors depending on the number
of workers or capitalization or annual gross sales in
some sectors.
 “Agriculture” – refers to farming in all its branches,
farming operations. Does not include the manufacturing
and/or processing
 “Retail establishment” – sale of goods
SOURCE: National Wages and Productivity Commission
 “Service establishment” – sale of service
 c) No Weekends: 261 days; 253 days if w/out
 RULES IN DETERMINING COMPENSABLE WORKING special non pay
HOURS
 The basis of the minimum wage rates prescribed by law
shall be the normal working hours of eight (8) hours a
day;
 Hours worked:
a) to be at the employer's premises or to be at a
prescribed work place;  Subsidized meals and snacks:
b) when suffered or permitted to work.  Employer: 30%
 Principles in hours worked:  Employee: 70%
a) When the employee required you to be available  WAGE OF KASAMBAHAY: Batas Kasambahay
for them w/out productive labor, physical or mental  As of July 2023, the monthly minimum wage of
exertion Kasambahay shall not be less than the following:
b) Rest period is when you stop working completely,
whether it's inside or outside your workplace.
c) If the work performed was necessary, or it
benefited the employer, or the employee could not
abandon his work
d) Interruptions beyond his/her control is still work
time
 Treatment on waiting time
a) Waiting time: if waiting is an integral part of his/her
work.
b) On call period: employee who is required to be
reachable
 Lectures, Meetings, Trainings shall not be counted as
working time if:
 Outside working hours  Kasambahay who works as a salesclerk: should
 Voluntary receive wage in accordance with the prescribed
 Not productive minimum wage which is applicable in the retail and
 Meals, Rest periods service establishments
 1-hour lunch break (no pay)
 Not less than 20 minutes (sorry, tinamad na ko i-type. HAHAHA)
 Non-manual
 Exceeding 16 hours of work
 Emergencies
 Necessary for perishable goods
 5-20 minutes = coffee break
 MONTHLY PAID & DAILY PAID
 Monthly paid: 365 days (everyday of the month)
a) unworked rest days,
b) special days,
c) regular holidays

 Daily paid: are those who are paid on the days they
actually worked and on unworked regular holidays.
a) Everyday: 394.4 / 395.7 days (kung ano na
lang ang nasa choices. Haha)

b) No Sundays: 313 days; 305 days if w/out

special non pay
 LABOR LAWS
For labor codes/laws, watch atty. Duka videos on youtube.
https://www.youtube.com/@CDDukaLaw

 IMPORTANT TOPICS IN LABOR LAWS & SOCIAL

LEGISLATIONS PART1
 https://www.youtube.com/watch?v=w-Ai4jPh6mk&t=5s

 IMPORTANT TOPICS IN LABOR LAWS & SOCIAL

LEGISLATIONS PART2
 https://www.youtube.com/watch?v=GPZaHgRUGDo&t
=2253s

 LAST MINUTE DISCUSSIONS ON LABOR LAWS FOR

THE BAR EXAMS
 https://www.youtube.com/watch?v=m1vD9uASypU

 CRITICAL ISSUES IN LABOR RELATIONS LAW

 https://www.youtube.com/watch?v=ndpToM7w7rI&t=1
46s

also, try to join webinars by atty. De Castro on facebook. (De

Castro Consulting PH)
 https://www.facebook.com/DeCastroConsultingPH
 Labor relations 101 part 2:
https://www.facebook.com/DeCastroConsultingPH/vid
eos/247176521305431
 Watch it asap, they might delete the video soon.

-END-

NOTE

Hello! Congratulations na agad sayo! Ngayon pa lang sinasabi

ko sayo na kaya mong ipasa ang CHRA exam  Basahin mo
lang yung mgareviewers na meron ka from the hreap, X (twitter)
study accounts, and also sa discord nang paulit-ulit, 80% may
masasagot ka na sa exam. Pero wag pa din papakampante dahil
possible na may mga items na lumabas na hindi mo naman
nabasa, ang advice ko ay i-analyze mo mabuti yung tanong kasi
minsan dun ka rin makakakuha ng sagot. Tapos highly advice
din na magpractice ka magsagot ng drills and sa quizlet, very
helpful! Kayang kaya yan!

Join our discord!

https://discord.com/channels/1147218802518524035/11472188
03063803946
Maraming pwedeng tumulong sayo dito kapag may hindi ka
maintindihan sa binasabasa mo, magchat ka lang may sasagot
diyan. Marami ring reviewers dito, minsan nagkakaroon ng study
sessions and discussion na ang mga speaker ay mga chra
passer din.

Ayun, basbasan ko lang din kayo because I’m paying it forward.

Good luck and congrats!

P.s. if may mga wrong information or typo dito sa reviewer ko,

just let me know para ma-note ko at may chance na mabago ko
if may time.