Human Resource Management

MODULES ON
HUMAN
RESOURCES
MANAGEMENT
1
Table of Contents
1. Chapter 1: Introduction To Personnel and
Human Resource Management 2
 Management Functions and Human Resource Management
 What is Human Resource Management
 The Central Functions of Human Resource Management
 The External Environment of Personnel
 Management vs. Human Resource Management
 Organizing the HR Department
 Summary & Assessment
2. Chapter 2: Job Analysis and Design 10
 What is a Job
 What is a Job Design
 Alternative Work Schedules
 Job Analysis
 Types of Job Data
 Source of Job Data
 Sources of Job Data
 Methods of Gathering Information
 Products of Job Analysis
3. Chapter 3:Human Resource Planning 22
 What is Human Resource Planning?
 The Reasons for HRP
 The Assessment of the Environment
 Strategic HRP
 Methods of Forecasting the Demand for HR
 Forecasting the Supply of HR
 Planning HR Programs
4. Chapter 4:Recruitment And Selection 35
 What is Recruitment
 Prerequisites to Effect Recruitment
 Factors Affecting Recruitment
 The Process of Recruitment
 The Sources of Recruitment
 What is Selection
 Benefits of Proper Selection
 The Selection Process
5. Chapter 5:Orientation And Training 48
 What is Orientation
 Purposes of Orientation
 Who is Responsible for Orientation
 Levels of Orientation
 How Orientation Programs are Presented
 What is Training
 Who is Responsible for training
 Importance of Training
 Assessing Training Needs
 Theories of Learning
 Training Methods
 Evaluating Training Programs
6. Chapter 6:The Legal Background Of The Employment
Process: Hiring And Integration 60
 Interpreting the legal background of the employment process
 The concept of employment law
 Rules and regulations related to employment
 Legal aspects related to work performance
 The formation, parties, and main features of employment relations
 The components of the employment contract
 Employer obligation for providing employment related information in writing
 The obligations and rights of employers and employees
 The concept and objectives of the integration process.
 The individuals subjected to integration and the respective immediate supervisors
 The main stages and components of the integration process
 Integration-related risks
7. Chapter 7:Performance Evaluation, On- The-Job
Training And Development 69
 The concept and interpretation of performance
 The concept of performance evaluation
 Basic principles of performance evaluation
 The objectives of the performance evaluation process
 Performance evaluation technologies and systems
 Performance evaluation systems
 Performance evaluation interview and performance evaluation error
 The concept, objectives, and basic questions of personnel development
 The concept and types of on-the-job training programs
 On the job training programs and the effectiveness of the process
8. Chapter 8:The Legal Background Of The Employment
Process: Hiring And Integration 82
 The Concept of Motivation and Rewarding
 Motivation Theories
 Incentive, Incentive Management, Incentive System
 The Concept and Components of Full
 Scale or Comprehensive Rewarding
9. Chapter 9:The Legal Regulation of Work Safety
And Health Protection 87
 The Role of Work Environment and Ergonomics in Work Performance
 The Concepts, Main Aspects, and Conditions of Work Safety
 The Concept of Work Place Safety and Occupational Health
 Legal Regulation of Work Place Safety and Health in the EU
 The Legal Regulation of Work Safety in Hungary
 The Objective and Main Components of the Work Safety Act
10. Chapter 10: Safety 87
 The Concept and Tasks Related to Workplace Safety
 Hazard Groups and Their Components
 Guaranteeing the Physical or Material Conditions for Work Performance
 Safety Warning Signs at the
 Workplace
 Work Safety Instruction
 Safety Technology
 Work-related Accident, On The Job Accident
11. Chapter 11: Health Protection 103
 Strategic Framework Pertaining to Occupational (workplace) Health and Safety for the
2014-2020 Period
 The Objective and Tasks of Occupational Health Programs
 The Objective and Task of Work Hygiene Programs
 The Objective and Tasks of Occupational Health
 Occupational Health Service
 Testing for Work Area Suitability
 Occupational Safety and Employment Directorate and Inspectorate
 Occupational Health Protection and Safety Management System (MEBIR)
 Protection of Safety and Health at the Work Place: Good Examples and Best Practices
Chapter 1
INTRODUCTION TO
PERSONNEL AND HUMAN
RESOURCE MANAGEMENT
Management Functions and Human

Resource Management
What is Human Resource Management
The Central Functions of Human
Resource Management
The External Environment of HRM
Personnel Management vs. Human
Resource Management
Organizing the HRM Department
Learning Outcomes:
1. Define human resource management and explain how HRM contributes to
organization’s performance.
2. Identify the responsibilities of human resource departments.
3. Summarize the types of skills needed for human resource management.
4. Explain the role of supervisors in human resource management
5. Discuss ethical issues in human resource management
6. Describe typical careers in human resource management.
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INTRODUCTION TO PERSONNEL AND HUMAN RESOURCE
MANAGEMENT
Organizations are established to achieve specific objectives. Many of them compete with
one another in the attempt to reach their goals. When they are not in the competition, they try
their best to survive. Success comes as a result of the effective and efficient use of resources,
whether human or nonhuman. Most often, however, the outcome is attributed to the performance
of the organization’s human resources. This happens even in the presence of various constraints
like those concerning equipment, materials, and money.
The importance of human response cannot be overemphasized. In the long history of
mankind, this truism has been proven time and again. Literature abounds with stories about wars
won by nations and soldiers who were really prepared to do their jobs. The early Greeks, for
instance, were able to defeat armies larger than their own because of superior recruitment and
training. During the Second World War, in a few critical weeks in 1940, Britain survived the
attempt of invasion of Hitler’s Germany. The British were not subjugated because of high morale,
discipline, and their determination to fight.
Businesses and other forms of non-military organizations are like armies in some ways. To
reach their goals, they must manage their human resources properly. Business literature also
abounds with stories of companies, which became successful because of the right application of
human resource management.
Human resource management has come a long way. The initial concern of organizations
about personnel has slowly evolved into a full-blown activity now referred to as human resource
management. It is now widely accepted that human resource management is an indispensable
tool of modern organization.
MANAGEMENT FUNCTIONS AND HUMAN RESOURCE

MANAGEMENT
Management is the process of working with and through people in the achievement of
organizational objectives. Human resource management is part of this larger principle and so it
must be viewed in the context of the basic management functions. This means that in the attempt
to pursue the practice of human resource management, the management functions of planning,
organizing, leading, and controlling must be considered.
Planning is that management function involved in setting goals and objectives of the
organizations. Planning is done at the corporate level and task is usually assigned to the
corporate planning unit. At the human resource management level, the one in charge (the human
resource department manager or vice president) performs the planning function by determining
in advance the human resource program that will contribute to the goals established for the
company.
Organizing is the mobilization of the human and nonhuman resources of the organization
to put the plans into effect. At the level of the human resource department (HRD) manager, he
must be concerned with forming an organization by designing the structure of relationships
among jobs, personnel, and physical factors.
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After having a plan and an organization to execute the plan, there is still that concern for
“getting people to work willingly and effectively.” The management function of leading is
concerned with “how managers direct and influence subordinates, getting others to perform
essential tasks.”
To be sure that the first three management functions are done properly, the controlling
function must be put in place. The purpose of controlling function must be put in place. The
purpose of controlling is to ensure that the goals are met and with it, the cycle of the
management functions become complete.
WHAT IS HUMAN RESOURCE MANAGEMENT
Defining human resource management (HRM) is useful sense that provides a starting point
in presenting the various principles and methods involved.
HRM is that management function concerned with making sure that the human component
of the organization is able to achieve the goals assigned to it.
HRM is to be distinguished from the other management functions of marketing, finance,
and production. It is different from marketing which is concerned with the generation of
sufficient volumes of scales to keep the company as a viable concern. It is also different from
finance which is concerned with obtaining the funds needed for the various activities of the firm
and the effective and efficient use of such funds. It is also different from the production which is
concerned with making sure that there are enough stocks of products or available services for the
company’s market requirements.
Among the five Ms of management, i.e., men, money, machines, materials and methods,
HRM addresses the concern about the first M, which is men. It is believed that in the five Ms
“men” is the most difficult manage. This may be so because among the five, “men” is different
from the other Ms in the sense that men possess the power to manipulate the other Ms. Whereas,
the other Ms are either inanimate or abstract and as such, do not have the power to think and
decide what is good for them.
THE CENTRAL FUNCTIONS OF HUMAN RESOURCE

MANAGEMENT
One way of learning HRM is to understand its central functions. They are as follows:
1. Staffing,
2. Training and Development,
3. Motivation, and
4. Maintenance.
Staffing refers to that function which locates competent employees and getting them to
work for the organization. The major activities of staffing consist of (1) strategic human resource
planning, (2) recruitment, and (3) selection.
Training and development is the acquisition of skills, knowledge, and attitudes which
enable people to achieve their current and future individuals and corporate objectives. Training
may be defined as a process concerned with establishing what type of training required and who
should receive it. In contrast, the actual training provided to trainees refers to instruction in
particular skills. Development is concerned with improving the intellectual or emotional abilities
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of an employee for the purpose of doing a better job. Included in the central function for training
and development is employee orientation.
Motivation refers to the process of activating behavior, sustaining it, and directing it
towards a particular goals. The major activities included in this central function are: (1)
motivation and job design, (2) performance evaluation, (3) Rewards compensation, and (4)
employee benefits.
Maintenance is the function of HRM that insures employee retention and the motivation
for more and better productivity. Included in the maintenance function are: (1) safety, (2) health,
(3) communication programs.
THE EXTERNAL ENVIRONMENT OF HRM

No organization, or any of its units, operates without getting affected by other
organizations or units. The in charge of HRM is not an exception. Any change in the external
environment of HRM, most likely, would also require adjustments in HRM operations.
The external environment of HRM is composed of the following:
1. Economic Forces,
2. Government Legislation,
3. Advances in Technology,
4. Labor Unions, and
5. Management thought.
Economic Forces
The pursuit of survival and growth would mean changes in the way organization performs
their activities. These will require the use of economic concepts of effectiveness and efficiency.
What is effective and efficient today, however, may no longer be so tomorrow. So, changes are
bound to happen. When traditional methods of production, for example, are no longer responsive
to needs of the market, improving the skills of the workforce may be necessary. In this case,
some adjustments may have to be made like retiring or transferring those who could no longer be
retrained.
Globalization is an example of strategies adapted by the world’s economic institutions.
This has affected the way businesses around the world are conducted. Surely, changes in HRM
practices became inevitable.
Government Legislation
The conduct of operations of organizations is regulated, in many aspects, by government
legislation. These include HRM activities. Much as management would want to impose their will
on employees in some important undertakings, they could not because of some restrictions
imposed by the government.
There is a long list of laws, rules, and regulations promulgated by the government and
which affect HRM. From time to time, new laws are enacted, while some of the old ones are
either modified or repealed. In any case, HRM must respond to all of them in ways that will
allow them to attain the organization’s targets. Examples of government legislation affecting
HRM are those concerning working hours, leaves, termination of employment, social security,
and minimum wage.
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Advances in Technology
Survival and competition among and between organizations require the adaptation of the
most use advances in technology. The application of technology in the workplace modifies or
alters the way work is done. New machines that perform more efficiently than human beings are,
often, installed. The improvement often results to a reduction in the number of employees
currently working. On top of that concern is the necessity of providing training to those who will
handle the new machines, or those who will have to execute the new method of doing work.
These changes affect HRM, and yet, these are not only some of those affected by advances in
technology.
Labor Unions
In one way or another, labor unions have reduced management prerogatives regarding
some aspects of the employment terms. Why this is so can be gleaned from the definition of a
labor union.
A labor union is an organization formed to represented the interest of workers in
bargaining with employers for contracts concerning wages, fringe benefits, and working
conditions.
Spelled out in the contract of labor are important items that constrain management form
making decisions unilaterally. For instance, management cannot give salary raise to a favored
employee without considering the terms of the contract. This is true even if the employee
concerned deserves to have an increase.
Management Thought
The practice of HRM has been largely influenced by eminent thinkers. They were able to
formulate theories as a result of extensive research. These pioneers have contributed their share
in shaping the world of management including HRM.
For instance, the work of Henri Fayol in 1916 laid down the basic building blocks of
management thought. He exposed the five functions of managerial responsibility consisting of
planning, organizing, command, coordination, and control. His fourteen management principles
are also important contributions to management thought.
For his part, Frederick Taylor espoused “scientific management” as a solution to finding a
better way to improve worker productivity.
Scientific management refers to the development of performance standards on the basis of
systematic observation and experimentation.
The Hawthorne studies, which began in 1924, were made to find answers to what to what
affects productivity. The team of researchers headed Elton Mayo, found out that relationship
between workers, and between workers and supervisors more significantly affect productivity
than changes in working conditions. This resulted to a more humanistic view of the practice of
HRM. As a result, employee benefits offerings, safe and healthy conditions, and the concerns of
very manager for human relations were introduced in many workplaces.
Many others writers contributed their share in management thinking. Many of the concepts
they have written found way in practice. An example is that theory of motivation which le in the
adoption of the skill-based pay plan in some industries.
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PERSONNEL MANAGEMENT VS. HUMAN RESOURCE
MANAGEMENT
The discipline of management has come a long way from a simple collection of early
theories emanating from various sources. Slowly, it has developed into what in now “modern
management”. As such, personnel management has also evolved into what is now referred to as
“human resource management.”
In the beginning, personnel management is confined to activities, such as recruitment,
training, remuneration, and discipline. The pressure brought about by concerns in survival and
growth and which become more prominent as the years passed, led to the adaption of elements
much wider in scope than the traditional personnel management activities. HRM is now viewed
as composing the following;
1.Personnel Management Activities
2.A view that regards
a. people as the major organizational asset, and
b.workers as instinctively willing and able to be developed.
3.Integration of the personnel management function into the strategic management of

organization.
Specific differences between personnel management and HRM practices that cover various
concerns as follows:
1. Recruitment and staff turnover
2. Promotion and career development
3. Rewards and benefits
4. Education, training, and development
5. Management culture
ORGANIZING THE HRM DEPARTMENT

The HRM department is the unit assigned to implement the organization’s HRM policies.
Its size and structure depend on several factors such as (1) available resources, (2) number of
company employees, and (3) philosophy of management.
Resource play an important part in the size and structure of the HRM department. In a
small firm, the HRM function is performed by single individual, i.e., owner-managers. As the
organization grows and as resources become available, the manager may hire an assistant to help
him implement HRM policies. The bigger the resources of the organization, the more elaborate
its HRM department is.
Some organizations maintain a specific number of HRM staff based on the number
company employees. One staff member for every one hundred employees is not uncommon for
many companies.
The size and structure of the HRM department also depends on the basic beliefs of
management regarding the importance of the role of the HRM department.
Examples of the organizational of the HRM function in various sizes and structures are
illustrated in Figures 1, 2 and 3. The owner/manager (as shown Figure 1) performs all the
necessary HRM functions. This made possible because of the small number of employees
reporting directly to him. As the organization is small, his other responsibilities do not prevent
him from doing the HRM function. As the organization grows, however, he is overwhelmed by
more work and he hires an assistant to help him perform the HRM function (Figure 2).
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Owner/Manager performing the HRM function
in addition to other functions
Worker Worker Worker
Figure 1
THE HRM FUNCTION IN A SMALL ORGANIZATION
MANAGER
HRM
ASSISTANT
SUPERVISOR SUPERVISOR SUPERVISOR
Figure 2
THE HRM FUNCTION IN A GROWING ORAGANIZATIONS
Vice President
Human Resource
Human Resource
Assistant
Manager of Training and Development Manager of Employee and Labor Relations

*Training Specialist *Personnel Assistant
Manager of Human Resources Planning and Staffing Editor of Employee Communications

*Employment Representatives *Publications Correspondent
*Receptionist *Publications Technician
Manager of Compensation and Benefits Manager and Loss Prevention

*Benefits Supervisor *Security Officers
*Insurance Clerk *Insurance Analyst
*Compensation Analyst *Secretary
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Figure 3
A FULL-BLOWN HRM DEPARTMENT IN A LARGE

ORGANIZATION
In a large organization, the president delegates in full the HRM responsibility to vice
president, who in return, manages the HRM department. Figure 3 is an illustration of a typical
HRM department of a large organization which consists of six units individually supervised by a
manager.
SUMMARY
 The objectives of any organization may be achieved depending on the motivation and ability
of its individual members. Providing the organization with the right members is the
responsibility of human resource management.
 HRM is a function that has evolved from the traditional personnel management concept, and it
is now a very important activity of any organization.
 As the basic management functions of planning, organizing, leading, and controlling are
applied to management in general, so it is equally applicable to HRM.
 HRM may be defined as that function concerned with making sure that executives and
employees of the organizations are able to achieve the goals expected of them.
 The central functions of HRM are staffing, training and development, motivation, and
maintenance.
 The external environment affects HRM. This consists of economic forces, government
legislation, technological advances, labor unions, and management thought.
 Personnel management is concerned with recruitment, training, remuneration, and discipline of
employees. These activities are included in the practice of HRM, in addition to the concern for
employees as human beings and the strategy adapted by the organization.
 The HRM department is organized depending on the availability of resources, number of
employees, and management philosophy.
Learning Activities
1. Prepare a list of five other management thinkers and indicate their contribution to HRM.
2. Prepare an organizational chart to the HRM department of your favorite organization.
Assessment
1. Why is the study of HRM an important undertaking?
2. What management functions and must be considered in the practice of HRM?
3. How may HRM be defined?
4. What are the central functions of HRM?
5. What factors in the external environment will most likely affect HRM?
6. What was the contribution of the Hawthorne studies to management thought?
7. How many personnel management be differentiated from HRM?
8. What is the function of the HRM department?
9. What factors affect the size and structure of the HRM department?
10. What units may possibly comprise the HRM department of a large corporation?
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Chapter 2
JOB ANALYSIS AND DESIGN
 What is a Job
 What is a Job Design
 Alternative Work Schedules
 Job Analysis
 Types of Job Data
 Source of Job Data
 Sources of Job Data
 Methods of Gathering Information
 Products of Job Analysis
Learning Outcomes:
Learning Outcomes:
1. Summarize the elements of work flow analysis.
2. Describe how work flow is related to an organization's success.
3. Define the elements of a job analysis and discuss their significance for human
resource management.
4. Tell how to obtain information for a job analysis.
5. Summarize recent trends in job analysis.
6. Describe methods for designing a job so that it can be done efficiently.
7. Identify approaches to designing a job to make it motivating.
8. Explain how organizations apply ergonomics to design safe jobs.
9. Discuss how organizations can plan for the mental demands of a job.
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JOB ANALYSIS DESIGN
When the job fits the individual occupying it, his performance is expected to be better.
Even if it is hard to provide perfect fitting jobs for every worker, however, it pays to design jobs
with workers in mind. There are specific reasons why job design is an important activity. These
are as follows:
1. Job design can impact employee performance. There are some jobs where employee
motivation is a crucial factor to performance, and the right motivation may be a result
of good job design.
2. Job design can affect job satisfaction. Some workers are more satisfied when they
perform their jobs in a manner most convenient to them.
3. A good job design may help reduce turnover and absenteeism, and these may be
translated to a reduced cost of staffing.
4. Job design can affect a worker both physically and mentally. Improperly designed jobs
may result to problems like loss of hearing, back pains, cramps, and the like.
WHAT IS A JOB
To facilitate the proper design of jobs, familiarity, with the nature and characteristics of
jobs is necessary.
A job may be defines as a grouping of small positions. A position is a collection of tasks,
duties, and responsibilities performed by a single person. A task is composed of motions and is a
distinct identifiable work activity. A duty is composed of number of tasks and is a larger work
segment performed by an individual. Responsibilities are obligations to perform certain tasks and
duties. An illustration of the above relationships is shown in Figure 4.
WHAT IS A JOB DESIGN

Job design may be defined as an approach that specifies the tasks that constitute a job for
an individual or a group. The objective is to develop requirements of the organization and the
technology that satisfy the personal and individual requirements of the jobholder. In designing
jobs, the following aspects must be carefully considered:
1. Job specialization and enrichment,
2. Psychological components,
3. Ergonomics and work methods, and
4. Motivation and incentive systems.
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OCCUPATION
Example: Teaching
JOB JOB JOB

Example: Example: Example:
Elementary High
School School College
Teacher Teacher Professor
POSITION POSITION
Example: Example:
Professor in Professor in
Management Accounting
DUTY DUTY
Example: Example:
preparing delivering
lessons lectures
TASK TASK
Example: Example:
reading preparing
books lessons
TASK TASK
Example: Example:
Selecting Printing
slide sheets images on
slide
Figure 4
THE JOB AND ITS COMPONENT
Specialization
Specialization is an important consideration in designing jobs. Since specialization
requires a worker to concentrate on one particular type of work, labor costs are reduced in
several ways. Because of it, high-speed and low-cost production in factories and offices were
made possible.
As specialization offers some advantages, however, it has also some disadvantages. An
example is boredom which affects the productivity of the individual worker. As this is so, the
concern of management must be to adapt specialization when benefits outweigh costs.
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JOB ENLARGEMENT AND ENRICHMENT
When jobs become routine, the worker becomes more efficient. This happens as he repeats
what he does again and again. Repetition, however, may take its toll and worker may be affected.
To counteract this possibility, two options were developed: (1) job enlargement, and (2) job
enrichment.
Job enlargement is the grouping of a variety of tasks about the same skill level. The
grouping is horizontal in nature. An example may be provided in the variety of tasks performed
in a furniture shop. A worker may be assigned to cut wood to form various components of
furniture. Another worker assembles the parts, while another paints or applies varnish to the
assembled furniture. If the combined efforts of the three workers produced thirty tables, each
worker would have performed his assigned task thirty times. A worker paints thirty tables daily
for extended period of time may be affected by the monotony and something must be done to
relieve him of the inconvenience. Job enlargement may be the answer for it calls for a worker to
perform some other tasks. If the worker who paints is also engaged in cutting and assembling, he
may be able to enjoy his work better.
Job enrichment on the other hand, is a method of giving an employee more responsibility
that includes some of the planning and control necessary for job accomplishment. This is
equivalent a vertical enlargement of the job. An example of job enrichment is when the worker
cited above is given the additional task of preparing the design of the tables to be manufactured.
Psychological Components
In designing jobs, the psychological aspects must be taken into account. The objective is
to improve the quality of work life, job satisfaction, and motivation of employees. As such, the
following must be considered:
1. The content of the job must be reasonably demanding and must provide some variety;
2. Team work must be provided with the opportunity to learn on the job and this must be
continuously provided;
3. The worker must be allowed to have some minimal area of decision-making that he
can call his own;
4. The worker must be provided with some degree of social support and recognition;
5. The worker must be allowed to relate on his social life what he produces; and
6. The worker must be made to feel that performing his job well leads to a desirable
furniture.
Ergonomics and Work Methods
Ergonomics is the study of the relationship between people at their work and their
working conditions, especially the machines they use. The use of ergonomics has contributed a
lot to making tasks easier to perform. For instance, the design of machinery may be improved to
make it more manageable and will resort to a reduction of stressors in the work area. If the
purchase for furniture is being considered, the decision to buy one that is designed to reduce the
back fatigue must be made.
Some work methods are superiors that others. If one is using an inferior work method, a
better one must be devised. This can be achieved through methods analysis which focuses on
how a task is accomplished. Exhibit 1 is a presentation of the various methods techniques and
their application.
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Methods Techniques Purpose
Flow diagrams/flow process charts to analyze movement of individual and
material
activity chart to analyze activity of humans
and machines and crew activity
micro-motion charts to analyze body movement

Exhibit 1
METHODS TECHNEQUES AN USES

Motivation and Incentive Systems
Money is a powerful motivator and it is used in form of bonuses, gain sharing, and
incentive systems.
Bonuses, which are given in cash or stock options, are often used to motivate executives.
Gain sharing are rewards given to the employees when the organization has improved its
performance.
Incentive systems are monetary rewards to individual or groups based on production
above the standard requirement.
ALTERNATIVE WORK SCHEDULES

Work schedule is another factor that affects job design. The quest for improvements in
productivity and reductions in cost led organizations to adapt schedules that are different from
the traditional ones. These alternative work schedules consist of flex-time compressed
workweeks, and part-time employment.
Flex-Time
Flex-time is a work scheduling system in which workers are required to work a number of
hours per week but are free, within limits, to vary the hours of work. For example, the traditional
work schedule for faculty members in a government university is 8:00 AM to 12:00 NN, 1:00
PM to 5:00 PM, Monday to Friday, for a total of 40 hours per week. In adapting flex-time, one
unit of the school may have schedule like one shown in Exhibit 2.
Name of Professor Days Time
Dr. Jesus Vicencio Monday to Friday 8:00 to 12:00; 1:00 to 5:00
Prof. Servando Belmonte Monday to Friday 7:00 to 12:00; 1:00 to 4:00
Dr. Cornelio Dela Cruz Monday to Friday 9:00 to 12:00; 1:00 to 6:00
Prof. Tan Van Tu Monday to Friday 8:00 to 12:00; 5:00 to 9:00
Dr, Julita Gomez Tuesday to Saturday 8:00 to 12:00; 1:00 to 5:00
Prof. Mike Go Wednesday to Sunday 8:00 to 12:00; 1:00 to 5:00
Dr. Elvira Narciso Tuesday to Saturday 8:00 to 12:00; 5:00 to 9:00
Prof. Cyril Sorongon Wednesday to Sunday 8:00 to 12:00; 5:00 to 9:00
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Exhibit 2
A SAMPLE FLEX-TIME WORK SCHEDULE GRADUATE SCHOOL
The adjusted schedule shown in Exhibit 2 can accommodate a wider classification of

students. Apart from catering to professional students, the new schedule accept those who are
available only in the evenings, as well as weekends. This arrangement also maximizes the use of
facilities.
The main feature of flex-time is the workers are given the opportunity to choose a
schedule that is more convenient to them.
Compressed Workweeks
The arrangement under compressed workweeks calls for performing one week’s work in
less than five days. This is designed to allow workers to enjoy a longer weekend which they may
spend with their families or doing some other important activities. Examples of forty-hour
compressed workweeks are as follows:
1. Four days with ten hours of work per day (Ex. Monday to Thursday);
2. Three days with twelve hours of work per day (Ex. Monday to Wednesday); and
3. Four and one-half days with nine hours of work for four days and four hours of work
for the fifth day.
Part-time Employment
The employment of people on a part-time basis is also an alternative work schedule. The
use of part-time employees has long been practiced in some organizations. The usual reason is
economics, as some cannot afford to maintain employees on a full-time basis.
One the side of the labor force, the availability of part-time jobs make it possible for many
people to work without neglecting some important responsibilities. Part-time jobs are more
suited to parents with small children, single parents, the elderly, and the handicappers.
Private colleges and universities are example of institutions which hire part-time
employees.
Part-time employment may be classified as follows:
1. Permanent part-time employment;
2. Job sharing;
3. Work sharing; and
4. Temporary part-time work.
Job sharing occurs when two part-timers share one full-time job. Work sharing happens
when some or all employees reduce work time on a percentage basis. Work sharing is an option
when the management does not want to lay off employees when there is reduction in
organizational activity.
JOB ANALYSIS
Individuals are more at ease in performing their jobs if they are informed in advance about
the duties, responsibilities, and accountability of their individual jobs. This is possible if an
analysis of the jobs is made.
Job analysis is fundamental starting point of HRM. This is so because of the basic
requirement of efficiency.
15
Job Analysis Defined
Job analysis may be defined as systematic investigation of the tasks, duties, and
responsibilities required in a job, and the necessary skills, knowledge, and abilities someone
needs to perform the job adequately.
Uses of Job Analysis

Information obtained through job analysis is very useful in performing various HRM
activities. These are the following:
1. Job definition. Defining a job through a description of duties and responsibilities is
very useful to the employee holding the job, as well as a prospective employee and the
supervisor. This is made possible because of job analysis.
2. Job redesign. When there is a need to change the current design of jobs, this will be
detected in the process of job analysis.
3. Recruitment. The idea in recruitment is to be able to hire people who, more or less, will
fit the jobs they are to hire. The requirement of the various jobs and the specific skills
needed for each are spelled out in job analysis.
4. Selection and placement. Selecting the best among the carious qualified jobs applicants
is made easier when the requirements of the job are spelled out in clear and precise
terms.
5. Orientation. When the requirements of the job are clearly understood, orienting new
employees becomes a matter of procedure. When duties and responsibilities are
properly stated, learning is facilitated.
6. Training. Information provided in job analysis is useful in determining what aspects of
the job must be included in training. Redesigned jobs, for instance, may require new
skills which the current jobholders may not possess. This potential problem may be
brought out in a job analysis.
7. Career counseling. Knowledge of the various jobs in the organization will make career
counseling activities easier and more effective. This will also help employees make
better decision regarding their career.
8. Employee Safety. In a job analysis, practices of current jobholders that are deemed
unsafe are brought into the open. Consequently, appropriate measures may be adapted.
9. Performance appraisal. It is very difficult to evaluate the performance of an employee
if the evaluator does not have a thorough understanding of what his actions are
expected of the employee in the performance of his job. Information gathered through
job analysis helps in assuring a fair evaluation of the employee’s performance.
10. Compensation. Job analysis provides some basis in determining the worth of a job.
This is arrived at by clearly identifying its difficulty in relation with other jobs, the
duties and responsibilities, and the skill requirements. Once this is done, the
appropriate wage or salary may be determined.
16
PROCESS OF JOB ANALYSIS
Job analysis is a process consisting of ten steps which are grouped into four phases. They
are as follows:
JOB Job
Analysis Redesign
Recruitment
Orientation and
Training
JOB Career
Description Counseling
Employee
Salary
Performance Performance
Standards Appraisal
Training
JOB
Specification
Selection
JOB
Evaluation Compensation
Figure 5
JOB ANALYSIS: A FUNDAMENTAL

STARTING POINT OF HRM
17
Phase I. Determining the scope of the project.
Step 1. Knowing the purpose of the job analysis
2. Determining which jobs to collect information
Phase II. Deciding on what method / s job analysis to adapt
3. Knowing what types of job data are needed
4. Knowing what sources for that data are available
5. Knowing what specific job analysis procedures should be used to collect
these data
Phase III. Actual collection and analysis of data
6. Collection of job information
7. Analysis of data
8. Reporting of data
9. Periodic rechecking of job analysis information
Phase IV. Assessing job analysis methods
10. Assessment of the overall value of the job analysis project.
TYPES OF JOB DATA

The job data, which are the subject of collection efforts, may be classified into the
following: (1) behavioral descriptors, (2) ability requirements, (3) job characteristics, and (4)
information about the equipment used on the job.
Behavioral descriptors consists of two aspects: (1) job-oriental activities, and (2) worker-
oriented activities. Job-oriental activities refer to job-specific terms, such as types
correspondence, collects accounts, or delivers lecture. Work-oriental activities refer to human
behaviors (like finger and foot movements); mental processes (like problem-solving); or personal
job demands (like amount of effort provide) that are done on the job.
Ability requirements refers to human abilities that are required to perform a job.
Examples of ability requirements are as follows:
1. perceptual speed or the ability to identify visual similarities and differences quickly
and accurately for fire investigations, and
2. number aptitude or the ability to do speedy and accurate arithmetic for accountants.
Job characteristics are other factors which may be needed to be identified like
motivational characteristics present the job, working conditions, and the work schedule.
SOURCE OF JOB DATA

Although the job incumbent is the best source, there are some other sources which are
useful. These sources may be human or nonhuman (Exhibit 3). Sources may also be classified as
internal or external. Internal sources are those found within confines of organization, while
external sources are those outside of it.
18
Nonhuman sources Human sources
Existing job description and specifications Job analysis
Equipment maintenance records Job incumbents
Equipment design blueprints Supervisors
Architectural blueprints of work area Job experts
Films of employees working Other staff connected with
previous jobholders
Training manuals and other materials
Books, magazines, or newspapers
Adapted from: Cynthia D. Fisher, and others, Human Resource Management (Boston: Houghton
Mifflin Co., 1990) p. 90
Exhibit 3
SOURCES OF JOB DATA
METHODS OF GATHERING INFORMATION

In gathering job information, several methods are useful. Some of them are briefly
described below.
Observations
Observation is a method of job analysis in which the analyst observes the person
performing the job and takes notes to describe the tasks and duties performed. The advantage of
this method is that it provides firsthand information. The drawback, however, is that the worker
or the employee may not feel comfortable while being watched so his actions may be different
from when he is not under observation. Another limitation is that the observer may not possess
the necessary skills in observing and analyzing what he sees.
The observation method is not applicable to that jobs that take a long time to complete a
cycle. An example is the job of a conductor of a symphony orchestra where a performance takes
months of practice before actual presentation. Another example is the job of the book editor
which may not be analyzed properly through observation.
Interview
The interview method requires the job analyst to personally meet and interview the
jobholder. There are three ways of gathering information using the interview method. They are
as follows:
1. interviewing the job incumbent,
2. interviewing a group of employees having the same job and,
3. interviewing the job incumbent supervisor who is knowledgeable about the job under
consideration.
Interviews may either be structured or unstructured. In a structured interview, a pre-
designed format is used, while an unstructured interview does not use a definite format.
19
Questionnaire
A pre-designed survey instrument is used under the questionnaire method of gathering
information. This instrument is given to employees and managers for them to accomplish.
The main advantage of the questionnaire method is the relative ease in obtaining
information from a larger number of employee within a short period of time. However,
misinterpretation of the information by the respondents or the analyst is a disadvantage of this
method. Also, developing questionnaires can be expensive and time consuming.
There are two types of questionnaires that have been developed and which are very useful
in job analysis. These are as follows;
1. Position analysis questionnaires. This is highly specialized instruments used in
analyzing jobs in terms of employee activities. Six major categories of employee
activities are covered. These are then describe in detail by 194 descriptors or job
elements.
2. Management position description questionnaire. This highly structured questionnaire
is used in analyzing jobs of managers. Thirteen categories of managerial activities are
covered and described in detail by 208 items which are related to the responsibilities of
the manager, restrictions, demands, and other relevant items.
PRODUCTS OF JOB ANALYSIS

Job analysis is the basis for the production of three important outputs: job description, job
specifications is the use of the tradition approach which require information on the following:
1. Physique (health, appearance)
2. Attainments (educations, qualifications, experience)
3. General intelligence (intellectual capability)
4. Special aptitudes (facility with hands, numbers or communication skills)
5. Interests (cultural, sports, and others)
6. Disposition (likeable, reliable, persuasive)
7. Special circumstances (prepared to work shifts, excessive travel, and the like).
An example of a job specifications is shown below.
Job title: Collector Job No. 021

Reports to: Section Head Date: 12-11-02
Job Specification
1. Must be healthy and with minimum height of 165 cm;
2. Must be a college degree holder, no work experience required;
3. Must at least be of average intelligence;
4. Must know how to drive motorcycle;
5. Must have some experience in any sports activity;
6. Must be outgoing and possess a persuasive personality; and
7. Must be willing to travel.
Exhibit 5
EXAMPLE OF A JOB SPECIFICATION
20
Job Evaluation
Job evaluation is the systematic determination of the relative worth of jobs within an
organization. It aims to rank all the jobs in the organization to pave the way for assigning
compensation figures for each job.
Job evaluation is done by using information generated through job analysis. Since job
evaluation is a critical aspect of HRM, it must be performed by an expert or a group which could
either be the HRM department or an external organization commissioned by management. The
various departments and union should be represented in the group. This practice is quite popular
in the job evaluation of faculty members in colleges and universities.
SUMMARY
 Efficiency in the program of employees requires, as a pre-requisite, the matching of the right
jobs with the right people. This is made possible by the effective use of job analysis and design.
 Job design is an activity that specifies the tasks that constitute a job. Its components are job
specialization and enrichment, psychological aspects, ergonomics and work methods, and
motivation and incentive system.
 In designing jobs, alternative work schedules such as flex-time compressed workweeks, and
part-time employment may also be considered.
 Job analysis is that process which seeks to find out what is involved in the job. It is useful in
the sense that it provides a systematic approach to the various HRM activities.
 The job data collected may be classified into behavioral descriptors, ability requirements, job
characteristics, and information about the equipment used on the job. The sources of data may
be classified as either human or nonhuman, and either internal or external. The various
methods of gathering information are observation, interview, and questionnaire.
 Job description, job specifications, and job evaluation are the three important outputs of job
analysis.
Learning Activity
Prepare a job description and job specification of the leader in your organization.
Assessment
1. Why is job design an important activity?
2. What are the components of a job?
3. In designing jobs, what must be considered?
4. What is flex-time? What benefits are attribute to it?
5. What is job analysis? What are its uses?
6. “Knowing the purpose of job analysis” is a step in the process of job analysis. What
could be the reason for this step?
7. One type of job data required in job analysis is “ability requirements”.
What examples of this type of data may be provided?
8. What are the possible source of job data?
9. What is a job description? What does it contain?
10. What is a job specification? What is its purpose?
21
Chapter 3
HUMAN RESOURCE PLANNING
 What is Human Resource Planning?

 The Reasons for HRP
 The Assessment of the Environment
 Strategic HRP
 Methods of Forecasting the Demand
for HR
 Forecasting the Supply of HR
 Planning HR Programs
Learning Outcomes:
1. Explain how the three branches of government regulate human resource
management.
2. Summarize the major federal laws requiring equal employment opportunity.
3. Identify the federal agencies that enforce equal employment opportunity and
describe the role of each.
4. Describe ways employers can avoid illegal discrimination and provide
reasonable accommodation.
5. Define sexual harassment and tell how employers can eliminate or minimize it.
6. Explain employers' duties under the Occupational Safety and Health Act.
7. Describe the role of the Occupational Safety and Health Administration.
8. Discuss ways employers promote worker safety and health.
22
HUMAN RESOURCE PLANNING
The demand for human resource may vary from week-to-week, month-to-month, and
year-to-year. Filling the demand as it comes is not an easy task. This so because one has to
contend with the quantity and quality of the available supply. When specialists are needed on a
specified period, for instance, management may not be able to provide them without effective
planning and execution of plans. Not being able to address the single concern may prevent the
organization from pursuing its goals. Yet, this only one of the many possible problems an
organization may face. This brings to focus the importance of the planning activity, especially
that which concerns human resource.
WHAT IS HUMAN RESOURCE PLANNING

Human resource planning (HRP) is that activity undertaken to make sure that the right
quantity and quality of manpower are available at the exact time and place that they are needed.
HRP refers to the performance of the tasks that will enable the organization to function
effectively and efficiently by providing its various departments with qualified personnel. The
HRP task is not the middle and top management levels.
The education acquired by job applicants from schools almost always does not match the
exact requirements of the organization interested to hire them. This is to assume, of course, that
the organization does not have to worry about getting enough job applicants from tine-to-time.
Also, even the skills of those already employed may be rendered obsolete by changes in the way
the organization will perform its various activities. These and other concerns call for effective
HRP.
Over-staffing and under-staffing both undermine the efficient management of
organizations. When HRP is undertaken, these problems may be minimized.
THE REASONS FOR HRP

When undertaken effectively, HRP produces and end-results that are vital to the success
of the organization. These effects are as follows:
1. There is more efficient and equitable use of human resource (HR). If HRP is made to
really provide accurate information about how many people and what kind of people
are needed, there is a slim chance to do their jobs.
2. There is more effective employee development and feelings of greater sense of fairness.
In organizations with effective HRP’s, employees are aware that the HRD’s function
is also implement human resource policies including the determination of various
human resource requirements. As HRP is a systematic process, employees will readily
understand that it is a fair means. Layoffs, new hiring, or even the need for additional
training may be anticipated. In any case, the employees will feel that any HR activity
result of what actually needed and not the effect of the whims and caprices of
management.
The HRP Model
As in any planning activity, a series of steps is required in HRP. HRP consists of five
general aspects which are collecting information demand for HR, forecasting demand of HR,
forecasting supply of HR, planning and conducting needed programs, and obtaining feedback on
the planning process. Figure 6 is an illustration of HRP model in a more detailed manner.
23
THE ASSESSMENT OF THE EXTERNAL AND INTERNAL ENVIRONMENTS
In collecting information, the planner must keep in mind that the purpose of such an
activity is to make an assessment of the external and internal environments.
The significant factors affecting HRP are shown in Figure 7.
GATHER INFORMATION
A. From the External Environment
1. The Economy – General and Specific Industry
2. Technology
3. Competition
4. Labor Markets
5. Government Regulations
B. From Within the Organization
1. Long-range Plans
2. Short-rage Plans
3. Current Human Resource
4. Rates of Turnover and Mobility
II. FORECAST DEMAND FOR HUMAN RESOURCE

A. Short- and Long-Term Demand
B. Aggregate or Individual Positions
III. FORECAST SUPPLY FOR HUMAN RESOURCE

C. Internal Supply
D. External Supply
IV. PLAN AND CONDUCT NEEDED PROGRAMS

A. Increase of Reduce Size of Workforce
B. Change Skill Mix
C. Develop Managerial Successors
V. OBTAIN FEEDBACK ON THE PLANNING PROCESS

A. Were the Forecasts Accurate?
B. Did the Programs Meet the Needs?
Figure 6
THE HUMAN RESOURCE PLANNING (HRP) MODEL
24
International Government Job Mobility
Events Legislation Factors
Population
Political Shifts
Changes
Human Resources
Planning
Economic
Changes in Cycles and
Social Value Conditions
Technological Educational Geographical

Changes Level of Workers Concerns
Figure 7
EXTERNAL FACTORS AFFECTING HRP
The Government Factor. The government implements policies that can affect HRP. The
prohibition on labor contracting, for instance, has affected HRP in many organizations. In the
first place, it was the adoption of several labor policies like those pertaining to social security
and Phil Health which led many establishments to adapt labor contracting.
Another example may be cited. Previously, schools were not required to hire executives
with master’s degrees. The government changed this policy and as a result, schools revised their
HR plans.
Economic Condition. The economy is not expected to be static. If there are periods of
business expansion (where the demand for labor rises), there are also periods of contraction
(where the demand for labor goes down). The four phases of the business cycle (prosperity,
recession, depression and recovery) affects the various sectors including labor. As such,
necessary adjustments have to be made in HRP. For instance, wage rates tend to go up during
prosperity period and go down during depressions.
25
Population and Work Force Shifts. HRP must reckon with changes in the population and
shifting of the workforce. For, instance, people tend to move towards the urban areas. As such,
organizations situated in rural areas find it hard to recruit competent specialists.
Although the quantity of labor supply was never a problem in general, its quality has
always been a concern. For instance, the oversupply of certain skills in some occupations, and
the under-supply in others, had always rendered recruitment a difficult activity. When the supply
of certain skills overwhelms demand, a simple advertisement for single job opening will swamp
the recruiting officer with thousands of applications that cannot be normally attended to. On the
other hand, when demand for a certain skill is greater that the supply, some jobs are left unfilled
for months or even years. In whatever case, HRP must include necessary adjustments to address
such concern.
Recent development indicate that there are new jobs requiring high levels of technical
skill. Many of these jobs were unheard of ten years ago and the rate at which new jobs are
introduced into the employment market increases every year. As these new jobs are important in
maintaining the competitive stance of organizations, the task of providing them with qualified
employees make HRP very relevant.
Geographical and Competitive Conditions. Employers in a particular area compete with
one another in tapping local sources of labor. When large businesses find interest in opening
facilities in a particular a area, the demand of many types of labor in that area will rise and may
have jeopardize the recruitment policies of local organizations. If that happens, pay scales will
tend to meet those types of contingencies, the risk of failure becomes a possibility.
Internal Factors. In doing HRP, the internal factors must also be considered. Among
these factors are the following: anticipated production volume, expectations about sales, plans to
invest in new facilities, and closing down of existing plants or offices. An example is the recent
pronouncement of the management of the Philippine Long Distance Telecommunications
Company (PLDT) to lay off more than 1,500 employees due to increasing costs of operation.
STRATEGIC HRP
Modern organizations have adapted strategic thinking as the way to survival and growth.
The objective is to “build a stronger long-term competitive positions. Corporate strategy
provides the general direction an organization will pursue. It is concerned with managing the
human and nonhuman resources of the organization. It follows that for corporate strategy to
succeed, it must be supported by strategic HRM, and by extension, strategic HRP. When the
organization is in the process of determining its human resource needs, it is engaged in strategic
HRP. The term “strategic HRP” may be defined as follows:
Strategic human resource planning is the process of linking human resource planning
efforts to the company’s strategic direction.
As illustrated in Figure 8, the various functional strategies, i.e., the marketing, finance,
production, R & D, and HR strategies must be aligned and in support of the overall corporate
strategy.
26
As such, the HR strategy must be backed up by a strategic human resource plan.
Corporate What kind of business

Strategy should we be in?
marketing R&D
strategy strategy
finance HR What is our future

strategy strategy HR demand?
production Strategic What are our HR

strategy HRP objectives?
Figure 8
CORPORATE STRATEGY AND STRATEGIC HRP
METHODS OF FORECASTING THE DEMAND FOR HUMAN

RESOURCE
There are two categories of methods used in forecasting the demand for human resources.
These are the judgmental and the mathematical methods. Some of these methods are simple and
may be accurate in some instances like when the organization is small. When simple methods are
not appropriate, there are complex models that may be useful.
Judgmental Methods
Forecasting appears to be more systematic if there is database and an expert who can use
the more sophisticated models. As it happens, oftentimes, these requirements are not always
present, especially if the organization is small or new. Under such conditions, forecasts are made
based on the opinion (or judgment) of knowledgeable people.
Judgmental methods are of three types:
1. the “bottom-up” or unit forecasting,
2. the “top-down” method, and
3. the Delphi technique
The bottom-up approach happens when the individual units (or branches and departments)
make a forecast of their manpower requirements. An aggregation of their forecasts is the total
demand for the organization.
The top-down approach involves the top management in making a forecast for the entire
organization. Those involved are the experienced top managers and executives who will meet in
a session to discuss how recent trends, the business plans, the economy, and other factors will
affect the demand for human source at various organizational levels.
27
The Delphi technique is a qualitative forecasting method that seeks to use the judgment
of experts systematically in arriving at a forecast of what future events will be or when they may
occur. It utilizes a series of questionnaires administrated by a person to experts who never meet
face-to0face. As the respondents reply, their answers are summarized and new questionnaire is
developed and sent to them. The process is repeated until a group forecast is derived.
Mathematical Methods
Mathematical methods may be classified as either simple of complex. Only one factor for
prediction is used in simple mathematical methods, while more complicated statistical techniques
are used in complex mathematical models.
Simple Mathematical Methods. These methods consists of the following:
1. Trend Analysis
2. Use of sales, production, or other forecasts, and
3. Learning curves.
Under trend analysis, the demand of human resource may be predicted by examining
staffing levels during the last few years, noting the trend, and extending the trend to the years
under consideration. An illustration with the use of a graph is provided in Figure 9.
Given
Year A = 100 employees
B = 300
C = 200
D = 400
E = 300
Number of Question:
employees
(in hundreds)
F =?
Answer:
F = 500 employees
Figure 9
THE DEMAND FOR HUMAN RESOURCE FOR YEAR F

XYZ GENERATION
If the sales forecast is used to determine the demand for salesperson, it is done with the
application of the productivity ratio to the year under consideration. The productivity ratio of the
sales force is the number of salespersons over the total number of units sold for the current
period. When the productivity ratio is applied to the year under consideration, the forecast
demand for salesperson for that year can be determined.
28
An example is provided as follows:
A company has forwarded the following facts:
total number of units sold last year = 1,000
number of salespersons last year = 10
forecasted sales for succeeding year = 1,500 units
Question:
How many salespersons will be needed next year?
Answer:
Let X = the numbers of salespersons needed next year.
X: 1,500 units = 10:1,000 units
1,000 X = 1,500 x 10
X = 15 salespersons
The productivity ratio, however, is useful in determining the direct labor required in
producing the forecasted sales. The indirect labor requirement may be calculated with the
application of the staffing radio. Thus, if in the example provided above, one supervisor is
assigned to five salespersons, a total of three supervisors may be needed.
The learning curve is a graphical illustration of the productivity of a worker or workers in
types of work done repeatedly. A worker that performs a task for the second time is faster than
when he did it for the first time. In short, the worker becomes more efficient as he learns. This
change in the productivity ratio will have an effect in the forecasting of manpower demand.
Complex Mathematical Methods. There are complicated statistical techniques which may
be used in forecasting manpower demand. Many large organizations make us of these
sophisticated methods.
One of the complex mathematical methods is the multiple regression analysis (MRA).
This method is a statistical procedure that attempts to assess the relationship between the
dependent variable (which in this case is the manpower demand) and two or more independent
variables (which could be sales, profits, capital, investments, and gross national product.). When
relationship established, future demand may be predicted.
Another method is the one which uses linear programming to determine optimal staffing
levels given a set of constraints such as limited budget for wages and salaries, or minimum and
maximum ratios between various kinds of jobs, or minimum or maximum output figures. Linear
programming, for instance, may be used in developing a work schedule to meet staffing needs
while minimizing the total number of employees.
FORECASTING THE SUPPLY OF HUMAN RESOURCE

After estimating the demand for HR for a particular planning period, the supply available
for that period must also be determined. The discrepancy between supply and demand will be the
basis for employee recruitment and training.
In the analysis of manpower supply, two sources of HR are considered:
1. the external source which indicate the availability of manpower in the labor market,
and
2. the internal source which indicate the availability of manpower within the
organization.
29
The factors that must be considered in analyzing supply include the quality of available
manpower, as well as its characteristics such as abilities, interests, and work experience.
Determining Internal Manpower Supply
To determine the supply of manpower within the organization, the following steps are
necessary:
1. Skills inventory,
2. Management inventory, and
3. Anticipating changes in personnel.
Skills Inventory. A skills inventory is a list of the names, certain characteristics, and skills
of the people working for the organization. It may be done manually or with aid of computers.
The inventory is useful in assessing the current supply of employees of various sorts.
The information provided by the skills inventory helps the manager in making decisions
on expansion or changes in strategies. It also provides a very important input in planning for
training, management development, promotion, transfer, and the other personnel activities.
Exhibit 6 shows an example of a skills inventory information form.
Management Inventory. Oftentimes, the success of an organization depends on adequacy
of the supply of managers. To be assured of maintaining the right quantity of skilled managers,
one must be provided, first, with the right information collected through periodic inventory of
management.
Management inventory is specialized, expanded form of skills inventory for an
organization’s current management team. It contains brief assessments of the manager’s past
performance, his strengths and weaknesses, and his potential for promotion to a higher position.
Anticipating Changes in Personnel. The organization is confronted with changes in its
environment and these include those involving personnel. Employees may be promoted,
transferred, demoted, retired, may resign, or die. In any case, their positions will be vacant and
may cause disruption in the services the organization provides. To minimize, if not totally
eliminate such difficulties, the HR planner must install some means to anticipate any changes in
personnel. When changes are correctly anticipated, proper adjustments can be made.
PLANNING HUMAN RESOURCE PROGRAMS

The HR planner is confronted with the possibilities of manpower shortage and surplus and
the concern for a smooth managerial succession. Under any of these circumstances, the
organization may be affected if they are not properly managed. As such, they must be considered
in HR.
30
HRD FORM 26
SKILLS INVENTORY
Employee Name : Corazon Buenaventura Data Printed : 1-06-03
Employee Number : 0718 Department : Marketing
KEY WORDS EDUCATION
Work Description Activity Degree Major Year
1. Sales Personal Selling Supervising MBA Business Adm. 2000
2. Promotion Conceptualizing Supervising BSC Marketing 1992
3. Forecasting Interviews and Survey Analyzing
WORK EXPERIENCE SPECIAL COURSES
1999 to 2003 Sales Manager, Buenavista Realty Corp Courses Data
1996 to 1999 Sales Supervisor, Villasis Appliance Corp Marketing Management 2001
1992 to 1996 Salesman, La Salette Insurance Forecasting 2002
E-Commerce 2003
MEMBERSHIPS LICENSES
Philippine Marketing Association Name Date
Management Association of the Philippines Real Estate Broker 2000

LANGUAGES POSITION LOCATION HOBBIES
PREFERENCE PREFERENCE
Name Fluency
English Fluent 1. Singing

Tagalog Fluent 1. Sales 2. Swimming
Ilocano Slight 1. Manila
2. Promotion 3. Chess
2. Baguio
Employee Signature: HDR:

Date: Date:
Exhibit 6
AN EXAMPLE OF A SKILL’S INVENTORY INFORMATION FORM
Planning for Shortages

When the current workforce cannot meet future demand for manpower, several options
are available. They are as follows:
1. Recruitment from external sources,
2. Encouraging retired employees to postpone retirement,
3. Rehiring retired employees
4. Introducing remedies to reduce employee turnover,
5. Subcontracting, and
6. Hiring temporary worker.
31
When manpower shortages occur or tend to occur, the normal course is to recruit
personnel from the labor market. There are times, however, when other means are less expensive
and are more appropriate. For instance, employees who have reached retirement age but who still
appear healthy enough to continue working may be encouraged stay a little longer with the
company. When this option exercised, the company may save on hiring and training costs
associated with new recruits. Also, those who have already retired may be rehired.
If the shortage is a result of high employee turnover, this may be reduced by eliminating
the cause of such problem. Most often turnover springs from demoralization which is also the
cause of other negative actions, like high rate of absenteeism and poor performance. In the
attempt to reduce turnover by improving employee morale, a reduction in the rate of absenteeism
and an improvement of performance may also be affected as well.
Subcontracting is an agreement with another party to supply the organization with a
certain number of qualified employee to work on a certain task for a specified period of time.
This option relieves the company of the various costs of maintaining personnel as the
subcontractor absorbs all of these. Subcontracting is a popular arrangement with tasks associated
with security, cleaning, and clerical services.
Hiring temporary workers provides organization flexibility in meeting production levels
that peak quickly and return also as quickly to lower levels.
Planning for Surpluses
There are times when a forthcoming condition of manpower surplus is forecasted through
HRP. This means that there will be more employees than available work in the organization. If
this is the case, then, management must prepare a plan to reduce supply. In meeting manpower
surplus and depending on the situation, any of the following may be exercised:
1. Adapt attrition as a policy. This means no new recruitment will be made to replace the
number of those who retired. Two advantages are inherent to this option: (1) no
additional expenses are attributed to it, and (2) it does not pose a negative effect on the
company’s reputation as a fair employer.
2. Offer early retirement incentives. Sometimes, attrition is not enough to meet the threat
of manpower surplus. Early retirement schemes may be used but there are some
drawbacks. An example is that high performers may exercise the option leaving the
company with low performers.
3. Transfer some employees from units with manpower surplus to units with manpower
shortage. Some organizations are large enough to have divisions with surpluses and
division with shortages simultaneously.
4. Schedule employees for training during slack periods. This option may be applicable
to organizations whose business is seasonal and has the means to undertake such
activity.
5. Lay off excess employees. This option may be exercised as a last resort but it is the
least attractive because it affects the economic well-being of the separated employees.
Exercising this option, however, may be prevented if an effective HRP is undertaken.
Managerial Succession Planning
It takes many years to develop managers. When they are already in place, however, there
is no assurance that they will continue to serve in their assigned tasks as long as they are required.
There is always the risk that the manager may get promoted, demoted, transferred, retire, resign,
or die while in the office. In any case, there is a need to develop successors. As such, a
managerial succession plan is in order.
32
In preparing a succession plan, the following steps are necessary:
1. Categorize managerial jobs according to priority so proper attention could be directed
where it is needed.
2. Identify candidates with high potential.
3. Plan development activities for candidates.
4. Identify viable near-term replacements for important positions.
A very useful output of succession planning is the replacement chart which shows both
incumbents and potential replacements for given positions. Shown in Exhibit 7 is a sample
replacement chart.
Manager, Central Luzon Area 1

Rudy Paragas
Angelito Ballesteros 0
Francisco Taguinod 0
Andres Nicolas 1
Manager, Nueva Ecija Manager, Pampanga

Angelita Ballesteros Andres Nicolas
Manager, Bulacan
Delfin Dumlao 1 Romulo Mamaril 0
Francisco Taguinod Elsa Marzo 1
Romeo Estabillo 3 Vicente Sagauinit 3
Hamlicar Barga 0
Godeofredo Tapiadot 2
Bernardo Maddumba 3
Qualification Codes for Readiness:

0 – ready to move up now
1 – ready in a year
2 – ready in two years
3 – ready in three years
Exhibit 7
A SAMPLE REPLACEMENT CHART
33
SUMMARY
 The demand for human resource in an organization changes from time to time. When demand and
supply do not match difficulties in achieving the organizational objectives are encountered. Human
resource planning is a system designed to eliminate the problem of demand and supply mismatch.
 The procedure for HRP consist of the following: gather information, forecast demand for HR,
forecast supply for HR, plan and conduct needed programs, and obtain feedback on the planning
process.
 There are external and internal factors that affect HRP.
 HRP must be undertaken in support of the corporate strategy.
 The various methods of forecasting the demand for HR are classified as either judgmental or
mathematical. There are two sources of manpower supply: external and internal.
 In determining supply, the following steps are necessary: (1) skills inventory, (2) management
inventory, and (3) anticipating changes in personnel.
 Manpower shortages, surplus, and managerial succession confront the HR planner. Certain programs
must be considered address them.
Learning Activity
Identify an organization in your area. Determine how the demand for HR is forecasted.
Assessment
1. What is HRP? Why is it an important activity?
2. How may one proceed to HRP?
3. What external factors affect HRP?
4. What is strategic HRP?
5. What methods are used in forecasting the demand for HR?
6. How many the various types of judgmental methods be described?
7. How may one proceed to perform a trend analysis?
8. What constitutes the possible sources of HR?
9. How may one determine the internal manpower supply?
10. When manpower shortage is imminent, what options are available?
34
Chapter 4
RECRUITMENT AND
SELECTION
 What is Recruitment
 Prerequisites to Effect Recruitment
 Factors Affecting Recruitment
 The Process of Recruitment
 The Sources of Recruitment
 What is Selection
 Benefits of Proper Selection
 The Selection Process
 Selecting Managers
Learning Outcomes:
1. Discuss how to plan for human resources needed to carry out the organization's
strategy.
2. Determine the labor demand for workers in various job categories.
3. Summarize the advantages and disadvantages of ways to eliminate a labor
surplus and avoid a labor shortage.
4. Describe recruitment policies organizations use to make job vacancies more
attractive.
5. List and compare sources of job applicants.
6. Describe the recruiter's role in the recruitment process, including limits and
opportunities.
35
RECRUITMENT AND SELECTION
Recruitment and selection are complementary tasks that must be carefully undertaken if
they are to contribute to the achievement of the HRM objectives. Many of the difficulties
encountered in the management of human resource may be traced to faulty recruitment and
selection. This should not be so if only the one assigned to perform those tasks is well-versed
with effective recruitment and selection.
WHAT IS RECRUITMENT
Recruitment is the activity concerned with searching and attracting qualified applicants for
positions that are vacant or will be vacant.
Recruitment in concerned with filling-up positions from the topmost level to the lowest.
Recruitment is the logical step to follow after the approval of the HR plan. This will be
done if the plan indicates a need to fill up certain positions in support of the HR strategy.
Recruitment is also undertaken to provide replacements for those were promoted, retired,
transferred, and others.
The objective of recruitment is to provide a group of qualified candidates so that
satisfactory candidates can be selected. If there is only one applicant per position, no recruitment
has been achieved, no matter how qualified the applicants are. Recruitment does not mean
gathering a mass of unqualified applicants for it would only be a waste of time and effort.
PREREQUISITES TO EFFECTIVE RECRUITMENT

For recruitment to be effective, some basic requirements must be in place. First, the
organization must have undertaken job analysis. Second, the various job descriptions and job
specifications muse have been completed.
The organization must also have identified “key result areas” (or KRAs) for various jobs.
KRAs are useful in setting objectives for the new recruit. KRA’s are outputs expressed in terms
of quality, quantity, time, or cost. An example per day. Knowledge of the KRAs will provide the
recruiter with the right perspective in recruitment activities.
FACTORS AFFECTING RECRUITMENT

The extent and intensity of recruitment efforts vary from organization to organization.
These efforts will depend on various factors which are as follows:
1. Size of the organization;
2. Employment conditions in the community where the organization is located;
3. The effectiveness of past recruitment efforts;
4. Working conditions, salary, and benefits packages offered by the organization; and
5. The growth of the organization.
Organizations with a large number of employees will have to spend more time, effort,
and money than the one with only a few employees. Recruitment in a firm with more than a
hundred thousand employees, for instance, will be a daily activity. Smaller firms will only
engage in recruitment when there is a vacancy, and this will not be often.
If the organization is located in an area with a large number of unemployed people, a
mass intake of qualified applicants may be done any time of the year. Recruitment efforts,
however, will be intense if the demand for labor in a particular area is higher than the available
supply.
36
If the organization has recruited the right people, turnover will be greatly reduces, which
in turn, will also reduce recruitment activities. On the other hand, if recruitment efforts are not
effective, there will be a need to recruit people more often.
Whether or the not the qualified job-seekers will seek employment with a certain
organization will depend on how the organization is perceived in terms of working conditions,
salary, and benefits packages offered. Progressive companies like San Miguel Corporation (SMC)
are expected to spend less efforts in attracting qualified applicants. This is so because SMC is
believed to have better working conditions, and provides bigger salaries and benefits to its
employees.
An organization that is growing will naturally be involved in more recruitment activities
than those which are not expanding.
THE PROCESS OF RECRUITMENT

Recruitment is a process consisting of the following steps:
1. Preparation of the HR plan;
2. Keeping contact with recruitment sources inside and outside the organization;
3. Manager notifies HR department about a job opening that needs to be filled;
4. The recruitment officer and the manager review the job description and job
specification of the job to be filled;
5. Internal sources are checked;
6. External sources are contacted;
7. Candidates are selected; and
8. Evaluation of the effectiveness of the recruitment efforts.
The HR plan is basic requirement before actual recruitment begins. It provides general
guides on recruitment activities.
Maintaining visibility in the labor market provides some edge to the organization. This is
true even if the organization is not currently recruiting. In this manner, the various sources can
provide qualified applicants in a short notice when the need arises.
For recruitment to commence, the manager will forward a request for personnel to the
HR department. This is often made through the use of a form much like the one used in
requisitioning supplies.
A thorough understanding of the job descriptions and job specifications of the jobs to be
filled will help the recruiter and the manager make intelligent decisions about recruiting the right
persons. It is, therefore, important to make a review of those two types of documents.
The next step calls for checking the international sources for job recruits who may be
available through transfers, promotions, or job posting for company trainees.
When internal sources are not sufficient, the external sources are contacted. All
applicants are then screened.
The last step is the evaluation of the recruitment efforts. This is made determine if the
recruitment activity meets the requirements of the HR plan.
THE SOURCES OF RECRUITMENT

There are two general sources of recruitment the organization can tap: (1) the internal
sources, and (2) the external sources.
37
Internal Sources
The internal sources of recruitment include the following:
1. present employees,
2. friends of employees, and
3. former employees.
The use of internal sources offers advantages which are as follows:
1. Internal applicants are already well known to the organization. Their performance
records are easily obtainable from their units. If they are new in their jobs, they can be
observed over a period of time and an evaluation of their potentials and specific job
behaviors can be made.
2. Internal recruitment provides added motivation to employees to do a good job.
3. Internal applicants already know the organization and most probably also the job
vacancy. False expectations about the organization and the job are eliminated.
4. It is generally cheaper and a faster means to fill vacancies.
International recruitment has also some disadvantages. They are the following:
1. It may generate infighting among the rival candidates for promotion.
2. The opportunity for broadening the organization’s current ideas, knowledge, and
enthusiasm is not exercised. As a result, inbreeding may begin to set in.
3. Internal recruitment may result to promoting people who are not ready yet.
4. An internal recruit will have to leave his position vacant. This creates another
recruitment concern for the organization.
HDR FORM
30
PERSONNEL REQUISITION
Date _______________________
From
Name Department
I. DESCRIPTION OF NEED
Date Number of Job Hiring Job
Needed Employees Job Title Classification Salary Salary
Needed No. Range Range
Permanent Temporary If temporary, for how long? Which shift?

Part time Full time If part time, what hours or days?
II. REASON FOR NEED

Replacement: Yes ; No If yes, person/s replaced
Addition: Yes ; No If yes, state reason:
38
External Sources
An organization cannot disregard external recruitment. This is also because there are
some positions that must be filled by external sources like entry-level and highly specialized
positions. In the army, for instance, outside sources are also allowed for highly specialized
positions like those military surgeons.
The advantages of external recruitment are as follows:
1. New ideas and viewpoints are brought in by the new recruits.
2. The creation of a new vacancy when an existing vacancy is filled becomes unnecessary.
3. The pressure to deploy prematurely inexperienced personnel is minimized.
4. Fully trained outsiders may be taken to reduce training and development costs.
5. The talent pool from outside sources is much bigger than that of the internal source.
6. Fully trained outsiders may be taken in within short notice.
External recruitment has also some disadvantages which are as follows:

1. Attracting, contracting, and evaluating potential employees are more difficult than
when internal recruitment is considered.
2. Adjustments and orientation will be longer for outside recruits.
3. Recruitment from outside may cause demoralization among existing employees.
The external sources of recruitment consist of the following:

1. Advertising
2. Employment agencies
3. Campus recruiting
4. Executive search firms
5. Professional organizations
6. Walk-in applicants
7. Electronic recruiting
Advertising. The most popular means used in recruiting is through advertising. Many
employers post advertisements for job openings in newspapers, magazines, televisions, radio,
and leaflets. These various forms of advertising media can reach wide audience in a short period
of time. Their disadvantage, however, is one of focus. The advertisements are able to reach a
general rather than the specific audience, which could mean much of the advertising effort is
wasted. Radio and television can quickly put on air an advertising message, but repeating the
message several times is important if it is to be made effective. Magazines are occasionally used
in advertising for jobs. This is due to its limited audience. Magazines may be effective if the job
openings jibe with the interest of their special audiences. The most common form of
advertisement used by small firms, which have very limited advertising budget, is the use of bills
and leaflets. The printed messages are handed to pedestrians or posted on walls located along
pedestrian lanes.
39
Exhibit 9
A TYPICAL SET OF NEWSPAPER ADVERTISEMENTS INVITING

APPLICANTS FOR JOB OPENINGS
IMMEDIATE HIRING!!!
Exhibit 9 (continued)
*Free Classifies Ads, Bulletin Today, January 19, 2003, p. G-27.
40
Employment Agencies. These organizations that assist job applicants in looking for suitable
employers. A certain fee is collected from either the applicant or the employer. Employment
agencies, which may either be private or public, are useful in the recruitment and screening of
applicants. Among the common employment agencies are those which assist applicants for jobs
abroad. They are also active, however, in assisting local employers in the recruitment of
personnel. Some of them even advertise their activities in local newspapers (Exhibit 10).
Campus Recruiting. The more progressive organizations send representatives to recruit
promising talents inside the school campuses. Advance notices are usually posted in the school’s
bulletin boards. On a date previously scheduled, an HDR personnel of recruiting organization
entertains queries about job openings. The usual targets are graduating students. Those with
potential are subjected to preliminary interview. Campus recruiting is coordinated by the
school’s placement center. It is that office which informs students of the possibilities of getting
employment. It is now common practice in some universities and colleges to hold job fairs where
various employers are invited to participate.
*From classified Ads, Bulletin Today, January 19, 2003, p.G-27

Exhibit 10
AN EXAMPLE OF AN EMPLOYMENT AGENCY ADVERTISING ITS SERVICE
41
Executive Search Firms. There are firms that specialize in the recruitment of executives. For a
fee, these firms offer their service to any interested party. These firms invite applicants, make
preliminary interviews, and submit a short list to the requesting organization for final destination.
Organizations that do not have the expertise in recruiting executives will find the services of
executive search firms very useful. This option will make it possible for the organization to hire
executives without the need to form a team to do the actual recruiting.
Professional Organizations. One of the potential sources of qualified recruits are
professional organizations. Their importance is realized when the position vacant must be filled
by a hard-to find professional. Some of the professionals have limited number of practitioners
making recruitment difficult. These professionals include real estate brokers, highly specialized
medical professionals, actuaries, etc. Professional organizations usually maintain listings of their
members which can be useful to the recruiter.
Walk-in Applicants. There are times when job seekers casually enter offices to inquire on the
availability of jobs. The information they provide can be a source of potential recruits. If a
sufficient number of qualified applicants is listed, they contacted, and preliminary interviews
may be scheduled.
Electronic Recruitment. Some organizations are now using the Internet to recruit qualified
applicants. Many of these applicants were eventually hired. The Internet is an inexpensive way
of attracting applicants from a wide area, geographically or otherwise, transcending even
national boundaries.
The Internet makes it possible for the applicants and the recruiter to communicate with one
another with the benefits of providing instant answers to queries. Preliminary interviews may
even be made through this medium.
WHAT IS SELECTION
In recruiting, qualified applicants are determined so that the best among them may be chosen
to fill the vacancy. It is to the best interest of the organization to hire the one of the best fitted to
the vacant position. As such, there is a need to perform the vital task of selection.
Selection refers to the process of choosing individuals from the pool of applicants who are
most likely to achieve the goals of the job that may be assigned to them.
BENEFITS OF PROPER SELECTION

Organizations differ in the manner of selecting job applicants. Some require only filling-up
of application forms and a brief interview. Some organizations, however, use more elaborated
selection methods. In any case, proper selection is necessary if the organization is to be efficient
and maintain its competitive positions.
The consequence of choosing the wrong candidates could be expensive. A new recruit who
does not fit well in his job needs to be oriented and trained, assuming that he has the ability to
absorb orientation and training. A part from training costs, however, the wrong recruit take away
much time of the supervisors, time which could be used for more important tasks. In addition,
employees’ morale may also be affected adversely by improper selection.
Effective selection, however, begins even before the job applicant makes his first contact
with the prospective employer. An advertisement that had been carelessly prepared, for instance,
may generate responses even from those whose qualifications are remotely related to the vacancy.
In any case, it is important to know that well-designed recruitment tools are essential parts of the
selection process.
42
THE SELECTION PROCESS
In selecting job applicants, several steps are involved. The steps are like making one step a
prerequisite to another. Some of the steps are eliminated if they are too expensive to administer,
or if they do not help in determining the probability of success of candidates.
In each step, a decision is made on whether or not to proceed to the next step (Figure 10). A
typical selection contains the following steps:
1. Initial screening
2. Completion of application form
3. Employment tests
4. Comprehensive interview
5. Background investigation
6. Physical examination
7. Final job offer
Initial Screening
The formal selection process begins with initial screening whereby inquiries about a job are
screened. When confronted with a number of applicants, the following factors may be sufficient
to eliminate some of them:
1. Inadequate or inappropriate experience
2. Inadequate of inappropriate education
3. Low salary offered for the job
4. Working conditions
1. Describe trends in the labor force composition and how they affect human
resource management.
2. Summarize areas in which human resource management can support the goal of
creating a high-performance work system.
3. Define employee empowerment and explain its role in the modern organization.
4. Identify ways HR professionals can support organizational strategies for quality,
growth, and efficiency.
5. Summarize ways in which human resource management can support
organizations expanding internationally.
6. Discuss how technological developments are affecting human resource
management.
7. Explain how the nature of the employment relationship is changing.
8. Discuss how the need for flexibility affects human resource management.
43
Initial screening Reject applicant
no match
Completed application Reject applicant

no match
passed
Employment test Reject applicant

no match
passed
Comprehensive interview Reject applicant

no match
passed
Background investigation Reject applicant

no match
passed
Physical Reject applicant

examination no match
passed
Job offer Applicant may reject offer

no match
passed
Hire
Figure 10
THE SELECTION PROCESS
Completion of the Application Form

Application forms are designed to provide the company with a profile of the job applicant.
The information gathered through the use of the form serve as starting points in the
comprehensive interview that may follow. The form is also a means to verify impressions in the
initial screening.
When the information gathered does not match the job requirements as stated in the jobs
specification, no further processing of the application is done. An applicant’s name may be
stricken off the list if he provided false information, or if he did not follow instructions in
accomplishing the forms.
Employment Tests
Tests are used to determine the ability of the applicant to perform an assigned job. The type
of test administered depends on the nature of the job vacancy. The various types of tests and their
applications include the following:
44
1. Aptitude tests. These are used to measure an applicant’s capacity or potential to learn and
perform a job.
Aptitude tests may be classified as follows:
a. Verbal ability test – This is used in measuring a person’s ability to use words in
thinking, planning and communicating.
b. Numerical ability test – This is used in measuring an ability to perform the
fundamental mathematical operations, i.e., addition, subtraction, multiplication and
division.
c. Perceptual speed test – This test is used to measure an applicant’s ability to
recognize similarities and differences.
d. Spatial test – This one used to measure ability to visualize objects and determine
their relationships.
e. Reasoning test – This test is used to measure ability to analyze facts and make
correct judgments based on logic.
2. Psycho-motor tests. These tests are very useful when hiring people to fill their jobs in
workplaces like factories, construction sites, etc. These tests are used to measure an
applicant’s strength, finger dexterity, manual dexterity, wrist-finger speed and speed of arm
movement.
3. Job knowledge tests. These are used to measure the knowledge of the applicant regarding
the job.
4. Proficiency tests. These are used to measure how well an applicant performs a portion (or
sample) of the job.
5. Interest test. When properly administered, interest tests will show how interested an
applicant is to the job. The premise is that a person who is interested in what he is doing
will probably do it well. Sincerity in responding to test questions, however, has always
been a concern.
6. Personality tests. The purpose of these is to determine if the personality characteristics of
the applicant fit well to the proposed job. The traits measured include dominance, tolerance,
extroversion, aggression, self-esteem, authoritarianism, neuroticism, and independence.
Comprehensive Interview
After passing the employment tests, the applicant will be subjected to a comprehensive
interview. Depending on the level of vacant position, the applicant will be interviewed by any or
all of the following; senior managers, HRM interviews, and potential supervisors. Oftentimes,
the interviews sit in a panel. The usual points of inquiry delve on areas not presented fully in
complete application forms and tests.
Interviews may be structured, where all questions are planned in advance and are asked of
each candidate in the same order. Interviews may also be semi-structured when the interviews do
some planning but allows flexibility in asking questions. There are also planning but also allows
flexibility in asking questions. There are also unstructured interviews where questions are asked
impromptu. This exposes the applicant to queries on a wide area which may cover experiences,
attitude, and the future plans.
Background Investigation
After passing the comprehensive interview, the applicant is subjected to background
investigation. Whenever applicable, former employees are contacted for confirmation of the
applicant’s work record. The school where the applicant obtained his education may also be
contacted to verify the accuracy of the academic credentials submitted. Contacting a former
teacher is also a good idea.
45
To further ascertain the potentials of the applicants, personal references may be contacted.
The checking of credit references and crimination records are, in some cases, a basic requirement.
Most often an application is required to submit clearances issued to by the police, the NBI, and
the court.
Physical Examination
The last step undertaken before the job offer is the physical examinations. Jobs require
certain levels of physical condition of the applicants. The level varies from to job to job, Pilots,
for instance, are required to 20/20 vision. This requirement, however, does not apply when hiring
professors for teaching positions.
As some applicants may be rejected because of their physical condition, the step may be the
last screening tool.
A physical examination may be administered as easily as a visual appreciation of the
applicant by the recruiter (although the accuracy of this exercise is doubtful), or as elaborate as
an actual medical examination by a team of physicians.
The Job Offer
After the selected applicants have successfully hurdled the preceding steps, a decision must
be made by the manager who requisitioned the personnel. Informing the application about the
job offers, however, rests with the HR department.
At this late stage, there is a possibility that any or all of the selected applicants may reject the
job offers. If this happens, it may be an indication that there was a failure in the selection process.
If the job offers are taken, on the other hand, the hiring papers are processed.
SELECTING MANAGERS
There are occasions when the position of the manager becomes vacant, or a new managerial
position has been created. In any case, the vacancy must be filled through outside recruitment or
by a difficult task. Fortunately, there are some ways in which this may be done. These are
through: (1) assessment centers and (2) panel interview.
Assessment Centers
An assessment center is a process in which multiple raters evaluate applicants or job
incumbents on their managerial potential. The center employs multiple selection method using
such activities such as role-playing, pencil-and-paper tests, cases, leaderless group discussions,
management games, in-basket exercises and peer evaluations.
While doing the exercises, especially well-trained raters observe the participants. The
exercises consists of samples of managerial situations requiring the application of managerial
skills and behavior.
Panel Interviews
An interview undertaken by a panel is an alternative to assessment centers. The panel’s
objective is to produce a description of the past behavior of the candidates in situations that are
similar to the proposed management positions. The checking of reference may also be done by
panel for the purpose of collecting information which may be used in evaluating management
potential.
46
SUMMARY
 Proper recruitment and selection are important to the overall success of HRM. Many of the
possible problems regarding manpower may be avoided if these twin tasks are performed
effectively.
 After the decision to fill vacant positions has been made, recruitment follows. It is important
that a sufficient number of recruits be gathered so that the selection can be effectively can be
effectively exercised.
 Recruitment can be made effective if certain basic requirements are in place.
 The extend of recruitment activities vary from organization to organization depending on
various factors including the size of the organization, employment conditions in the
community, effectiveness of past recruitment effort, working conditions, salary and benefits
offered, and the growth of the organization.
 Recruitment is a process consisting of several steps which usually begins with the
preparation of the HR plan and ends with the evaluation of the recruitment efforts.
 The organization can tap the internal and external sources of recruitment depending on the
circumstances. The external sources consists of advertising, employment agencies, campus
recruiting, executive search firms, professional organizations, walk-in applicants, and
electronic recruiting.
 Selection is an activity which makes sure that the best candidate is chosen to fill the vacancy.
The selection process consist of initial screening, completion of the application form,
employment tests, comprehensive interview, background investigation, physical
examination, and final job offer.
 Assessment centers and panel interview are two of the usual means of selecting managers.
Learning Activity
Make an inquiry on the recruitment practices of an organization in your area.
Assessment
1. What is recruitment? What steps are involved?
2. What are the prerequisites to effect recruitment?
3. What factors affect recruitment?
4. What are the two general sources of recruitment?
5. What is selection? Why is it a necessary task?
6. What benefits are derived from proper selection?
7. What steps consists the selection process?
8. How many interviews be classified?
9. What are the means used in selecting managers?
47
Chapter 5
ORIENTATION AND TRAINING
 What is Orientation
 Purposes of Orientation
 Who is Responsible for Orientation
 Levels of Orientation
 How Orientation Programs are Presented
 What is Training
 Who is Responsible for training
 Importance of Training
 Assessing Training Needs
 Theories of Learning
 Training Methods
 Evaluating Training Programs
Learning Outcomes:
1. Discuss how to plan for human resources needed to carry out the organization's
strategy.
2. Determine the labor demand for workers in various job categories.
3. Summarize the advantages and disadvantages of ways to eliminate a labor
surplus and avoid a labor shortage.
4. Describe recruitment policies organizations use to make job vacancies more
attractive.
5. List and compare sources of job applicants.
6. Describe the recruiter's role in the recruitment process, including limits and
opportunities.
48
ORIENTATION AND TRAINING
When the hiring process is through, the new recruits will have to undergo and most probably,
training. Orientation is a requirement before the recruit starts working. Depending on
circumstances, training may follow immediately, or at a later date. The importance of orientation
and training is something the must be fully appreciated by the management, including HRM and
the rank-and-file. The ways in which orientation and training will facilitate the achievement of
HRM must also be understood.
WHAT IS ORGANIZATION
Orientation has been described by writers in various ways. It may be defined, however, as a
set of activities, such as familiarizing new employees with company rules, policies and
procedures, with the view of making the employee well adapted to the work environment.
PURPOSES OF ORIENTATION
When effectively executed, orientation serves various purposes. These are as follows:
1. It creates an initial favorable impression. A new employee who has good impression of
the company and the work environment especially on the first day of employment will
find adjustment easier. In the absence of orientation, the new employee will have to find
other ways of learning about his work. The danger inherent to the practice is that the new
employee may be confronted with something he cannot fully understand and he may
derive a wrong conclusion. For instance, if he is not aware that working hours in the
organization is on staggered basis, he may think that it is all right to report for work
anytime.
2. It enhances interpersonal acceptance. Orientation helps the new employee in meeting the
expectations of the company and his work group. With the passage of time, work groups
adapt certain norms of conduct and they expect that the new recruit will conform to these
norms. If he does, he is “accepted” by the group and he may proceed to work without
much fuss. The opportunity of an initial interpersonal encounter between the new recruit
and the group is facilitated through the orientation process.
3. It helps the new recruit adjust himself to the job. Effective orientation creates a sense of
security, belonging, and confidence to the new recruit. Provided with enough self-
confidence, the new recruit will have a better chance of performing according to
expectations.
WHO IS RESPONSIBLE FOR ORIENTATION

At least three people must be responsible for orienting new recruits. They ate the following:
1. The Chief Executive Officer (CEO) of the organization. The CEO is in the best position to
rally the new recruits to do their best. He can achieve this in at least two days. First, he
could give them a warm welcome on their first day of work, by saying things like what
good choice of job they had made, and how exciting it is to work in organization. Second,
he can make the new employees listen and feel the company’s vision during brief
encounter with them anywhere in the company premises.
2. The Head of the HR department. The formalization of new recruits requires processing
some documents like social security and Bureau of Internal Revenue forms. These and
other documents are necessary in the preparation of the payroll. What the HR department
must do is to provide the necessary administrative support so the new recruits will be
spared of the worries connected with some concerns.
The HR department must act as the coordinating unit for the orientation process. The
department assumes the role of host to those who will attend the orientation program.
During the program, the HR department provides briefing on the various HR policies like
49
those that concern promotions, transfers, lay-offs, etc. As line supervisors are also
involved in orienting new employees, the HR department must train them in the
procedures for conducting the departmental and job orientation.
3. The supervisor of the new employee. It is the responsibility of the supervisor to make the
new employee feel that he is welcome. He accomplishes this by introducing the new
employee to his co-workers. He should also seek the support of those in the unit to help
the new employee adapt to his new work environment.
LEVELS OF ORIENTATION
Orienting new employees may be classified into two levels: (1) organizational orientation,
and (2) departmental and job orientations.
In organizational orientation, topics of relevance and interest in all employees are presented.
Among the topics are the following.
1. An overview of the company
2. A review of the key policies and procedures
3. Compensation
4. Fringe benefits
5. Safety and accident prevention
6. Employee and union relations
7. Physical facilities
8. Economic Factors
In the departmental and job orientation, topics concerning specific department and the job
are presented. Among the general items covered are:
1. The functions of the department
2. Job duties and responsibilities
3. Policies, procedures, rules and regulations
4. Tour of the department
5. Introduction to department employees
HOW ORIENATION PROGRAMS ARE PRESENTED

Orientation programs are aimed at providing relevance information to the new employees.
These are the achieved through the use of various means, such as
1. classes
2. meetings
3. tour of the company offices and plants
4. films
5. employee handbook
6. information leaflets
7. slides
8. charts
WHAT IS TRAINING
Training has been an important human activity since time immemorial. Historians have
chronicled it as a required activity in the military exploits of noted personalities like Alexander
the Great, Napoleon Bonaparte, Dwight Eisenhower., and many others. In modern times, training
50
has been turned into a mere vigorous activity and this is largely due to competitive pressures
existing in the environment.
In the business world, training is regarded as an attempt to improve the employee’s ability to
perform his job so the goals the organization can be achieved.
The key elements of training and the relationship between these is illustrated in Figure 11.
WHO IS RESPONSIBLE FOR TRAINING

The person mainly responsible for training is the supervisor who is assisted in some ways by
the personnel manager or the training director. The supervisor of the new employee is in the best
position to provide training. This is so because he knows what output his unit needs. In addition,
the supervisor has abilities, the skills and the right attitude needed to be imparted to the new
employee. The supervisor also possesses some specific knowledge about operating the various
equipment and appliances in his unit.
In addition to the job-related skills, the supervisor who will be involved in the training must
also have the ability to teach. A supervisor who is good in performing certain jobs does not mean
he can readily transfer his job skills to another person.
The other person responsible for the training is the personnel manager or the training
director. His responsibilities, however, cover whatever assistance could be provided to the
supervisor who is conducting training. Among the types of assistance they provide are the
following:
1. Determining what training activities are needed
2. Evaluating the training programs
3. Informing management on the status of each programs
4. Selling the training programs to all supervisors and managers
5. Integrating the training programs with other personnel actions, such as promotion and
transfers
TRAINING
EMPLOYEE acquisition of skills,

concepts, rules, or attitudes
IMPROVED
ABILITY TO
PERFORM
that may lead to
ACHIEVEMENT OF
ORGANIZATIONAL
GOALS
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Figure 11
WHAT TRAINING IS
IMPORTANCE OF TRAINING
In the highly competitive world of business, much is expected about the efficiency and
effectiveness of employees in the performance of their jobs. This is also true in the case of non-
profit organizations which must reckon with survival and growth. To be able to achieve the
above-cited requirements, employees must be able to do their jobs with maximum effects and
minimum errors.
It is well known that fresh graduates of colleges and universities, no matter how good their
academic performances are, will be less than adequately equipped with the jobs they will occupy
once hired. The same difficulty applies to regular employees who are promoted or transferred.
The gap that exists between what is expected of the employee and what skills and attitudes
he currently possess may be addressed through proper training. A person who is not properly
training to do his job will be a burden to his unit. Instead of producing the required quantity or
quality of output he will be doing less. This is translated as an inefficient use of resources. This
cannot be allowed to continue. The employee may either be fired or provided with training.
Firing is the less desirable option because of the costs associated with recruitment and hiring, not
to mention the emotional trauma that the concerned employee will have to bear. As such,
training is the preferable solution because it will also help minimize recruitment and hiring costs
as the employee concerned is already in place and is familiar with the company and his job.
ASSESSING TRAINING NEEDS

Training is not an end in itself but rather a means to an end. The object of training is to
facilitate the accomplishment of some organizational objectives such as the generation of more
ales, more effective collection of receivables, improved quality of products or services, or the
reduction of operating costs. Resources, which almost are limited, make it necessary for training
activities to be directed towards achieving concern objectives of the organization. Not all training
activities, however, are useful because some of them may be superficial and unnecessary. To
prevent the wasteful use of training funds, as assessment of training needs must be undertaken.
Needs assessment is a process designed to determine whether training is necessary or not. It
normally involves identifying the following; organizational goals, tasks that must be completed
to achieve these goals, behavior necessary, and deficiencies between current required employee
behavior. This process is illustrated in Figure 12.
METHODS OF IDENTIFYING TRAINING NEEDS

There are various ways of leading of identifying training needs. These methods are as
follows:
1. performance reviews or appraisal
2. development centers
3. human resource audit
4. interviews
5. questionnaires
6. observation
7. review of organization or business plans
8. desk research
9. group discussion
10. job analysis and evaluation
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Determining training needs
Identify goals of the

organization
Identify behaviors necessary for

each employee to complete
assigned tasks
Identify tasks that must be completed to

achieve goals of the organization
Identify deficiencies between

current employee behavior and
necessary behavior to complete
assigned tasks
Figure 12
THE PROCESS OF DETERMINING TRAINING NEEDS
Performance Reviews of Appraisal

Performance review is a study of a worker’s performance to determine how it can be
improved and performance appraisal is the assessment of the quality of a person’s work in a job.
The foregoing activities are complementary as the aim of appraisal is to assess performance
while the review aims to determine possible improvements in performance.
Appraisal is undertaken specifically by comparing performance with standard requirements.
Reviewing the various aspects of the subject employee’s performance may provide some clues
on how improvements in performance may be done.
Development Centers
Development centers, also referred to as assessment centers, use a variety of assessment
techniques to ensure the coverage of skills and attributes in the widest possible manner. Among
the techniques are used individual, group, oral and written, psychometric, personality, and career
interest tests.
Human Resource Audit
A simple approach to identifying training needs is by comparing the current inventory of
personnel with the quantity and quality of employees that will be needed in the future usually
53
from 1 to 5 years. When expected gaps in skills and attitudes are identified, a training plan may
be derived. The HR audit will provide information on the number of vacancies arising through
retirement, promotion, resignation, and transfer.
Interviews
The training needs of individual employees may also be ascertained through interviews. The
advantage of this method is that each employee will have the opportunity to present his own
unique training need. Interviews, as discussed in Chapter 2, may be structured or unstructured.
Questionnaires
The use of questionnaires is an economical way of identifying training needs. Relevant
personnel could be made to write their comments on certain questions relating to training and
performance. The advantage if this method is its ability to get many responses within a short
period of time.
Observation
One of the earliest means of determining training needs is observation. This method may be
done formally of informally. In using formal approach, a trained observer accompanies the
employee during work hours where direct observation is made. The observer may make notes of
his observation or fill up a structured checklist and make notes later.
Review of Organization or Business Plan
Organization of business plans are good sources of information useful in determining
training needs. A business firm on the expansion mode, for instance, will require recruitment of
persons to fill entry-level positions, as well as managerial jobs. This will have to be supported by
appropriate training for new recruits and those slated for promotion.
Desk Research
Desk research involves a review and analysis of internal and external factors that may affect
the performance of employees. For example, specific information on courses offered by schools
and their methods of instruction will provide some clues on the level of knowledge of graduates.
This is useful in determining what types of training are appropriate for new recruits.
Group Discussion
One of the ways adapted by many organizations in the attempt to solve problems is group
discussion. Under the scheme, individuals who are directly concerned with some performance
difficulties meet in a group coordinated by a person who may have previous training as
facilitator.
The advantage of group discussion is that a problem like identifying a training need may be
analyzed from viewpoints as diverse as the individuals comprising the group. When this happens,
it is likely that a good solution will emerge from the exercise.
Job Analysis and Evaluation
Job analysis and evaluation, when undertaken, lead to the preparation of the job description
and the job specifications. The job description details the various tasks and responsibilities of a
certain job. The job specification indicates the various skills, knowledge, abilities, and other
characteristics a person must possess to effectively perform a job. When a person proposed to
occupy a job is found to be deficient in skills and abilities enumerated in the job specification, a
training program becomes a requirement.
54
THEORIES OF LEARNING
As training is a learning process, it is important for one involved in it to be familiar with
some basic theories of learning. Two of them are briefly described.
Operant Conditioning
Operant conditioning is a type of conditioning in which desired voluntary behavior leads to a
reward or prevents a punishment. When someone associates pleasure with a certain behavior,
and continues that behavior, the person is conditioned. It follows that when someone associates
with a certain behavior, and discontinues that behavior, the person is also conditioned.
By using any of the four components of operant conditioning (Figure 13), employees are
expected to repeat or change previous behavior. For example, increasing the salary of an
employee who performs according to what is required (desired behavior) will result to a
repetition of his behavior. On the other hand, if he is transferred to an unpleasant surrounding
(like a hot and humid office) because of unruly behavior, he is expected to change his previous
behavior. This is referred to as negative reinforcement, whereas the previous example is called
positive reinforcement.
The punishment component is designed to change the behavior of the employee. It may be
done in two days: introducing something negative like moving the employee to a noisy
workplace, or removing something positive like cancellation of allowances.
Social Learning
Social learning, also known as observational learning and modeling refers to learning new
behavior by watching and imitating the behavior of others in a social situation. Considering the
case of an employee who had been attending special training and seminars. If the employee’s
performance has improved and was promoted as a result, this behavior will influence others to do
the same.
Social learning may be achieved in three ways: (1) by observing what happens to the other
people, (2) by being told about something, and (3) through direct experience. Observing is a
powerful means in the modification of behavior. Training activities may be made more effective
if the trainees are allowed to observe the behavior of model employees.
TRAINING METHODS
Training methods may be classified into various types. They are as follows: on-the-job
training, apprenticeship, and off-the job training. Each of the methods has its own unique
advantages and disadvantages.
On-the-Job Training
On the job training is a method that places the trainee in the actual work situation where he
is shown how to perform the job and is allowed to do it, but under the supervision of the trainer.
When the component tasks of a certain job are simple and can be learned quickly by watching
and doing, on-the-job-training is highly applicable. The jobs of the messenger, the mail sorter,
and the meter reader are good example where on-the-job training is appropriate.
Among the advantages of on-the-job training are: (1) it does not require special training
facilities, and (2) the trainee is actually involved in the production process while learning at the
same time.
The disadvantages of on-the-job training consist of the following: (1) low productivity while
trainee is learning skills, and (2) the possibility of costly errors on the part of the trainee.
55
Apprenticeship
To qualify for any of the highly skilled occupations, trainees are required to undergo
apprenticeship for extended periods of time. They are subjected to a comprehensive exposure to
the practical and theoretical aspects of their chosen jobs. The practical aspects are learned on-
the-job, while a trained instructor in a classroom setting provides the theoretical aspects.
Examples of jobs that are appropriate for apprenticeship training are carpentry, automotive
painting, credit investigation, and textile dyeing.
Off-the-Job Training
Off-the-job training is a training made outside of the workplace. They consist of classroom
instruction, films and videos, demonstrations, case studies, simulation, role-playing, programmed
learning, management games, and distance learning.
Classroom Instruction. In this method, a trainer is assigned to provide lectures to a group of
trainees. Most often included, apart from lectures, are question and answer portions, discussions,
and case studies. A distinct advantage of classroom instruction is that it is an inexpensive way of
producing information to a large number of trainees.
A trained lecturer can be more effective if he can do the following:
1. Motivate trainees to participate actively;
2. Provide examples that the trainees can easily relate with, such as those that are job-
related; and
3. Provide challenging exercises.
Films and Videos. There are various audio-visual means that can be used for training. Films,
videocassettes, and slides with prerecorded contents of various topics have become common
training tools. Many of them are produced by independent companies and are offered for sale in
the market.
The training department may opt to produce the prerecorded training materials but it may be
expensive to do so. In addition, when this training method is used, the trainer must be provided
with necessary gadgets used in actual presentation.
Demonstration. Under this method, the trainees are allowed to observe an actual activity
performed by the trainer. This method is a reliable way of relating theory to practice.
Like other training methods, demonstration have advantages and disadvantages. These are
indicated below:
Advantages:
1. Demonstrating helps people who learn well by imitating others.
2. It enables trainees to coordinate sensory input with motor function through practice.
3. It promotes self-confidence and builds skills through practice.
4. It gets trainees actively involved in the learning process.
5. It provide immediate feedback to the trainer and the trainee.
6. It allows attention to be focused on specific details rather than general theories.
Disadvantages:
1. Demonstration is of limited value for people who do not learn best by observing others.
2. It may not be appropriate for the different learning rates of trainees.
3. It requires specialized expertise if highly technical tasks are involved, and this
requirement may not be readily available when needed.
56
Case Studies. This method makes use of cases which the trainer requires the trainees to read
and analyze. The cases assigned present actual situations and enable trainees to examine both
successful and unsuccessful activities.
The trainees are required to identify the problems in the case and they must also come up
with recommended solutions. The case method is an inexpensive way of training employees,
especially managers, in decision-making.
Simulation. A simulation is a duplicate of the actual work situation where the trainee is
allowed to see the result of his decision. This method is useful in training employees in skills as
varied as production and processing, management and interpersonal relations.
Because errors committed in simulations are not as costly as those in actual situations, the
trainees are not hampered by fear in doing decision exercises.
Role-playing. In this training method, the trainee is required to assume a role and to act out
the scenario presented. For example, a trainee may be asked to take the role of an employee
interviewing a job applicant. After the exercise, the trainer provides feedback on how the role
player dealt with the situation. The feedback is supposed to provide valuable lessons to the
trainees.
This technique provides the trainee with the opportunity to try out skills and approaches to
the situation without having to worry about committing mistakes.
Programmed Learning. This method presents condensed information which are highly
organized and in logical sequence. After a certain amount of information is provided, the trainee
is asked to make a decision or answer questions. The program, then, informs the trainee whether
his or her answers or decisions are correct or not.
Programmed learning are classified into the following:
1. Computer tutorials;
2. Interactive video disks; and
3. Virtual reality simulations.
Programs accompanying computer software which provide lessons, are examples of
computer tutorials. Interactive videos are those that allow the trainee to interact with the
computer while exposed to video pictures. Virtual reality is a computer while program that
provides trainees with three-dimensional learning experience. The trainee is positioned as though
he is really in the actual situation as he can sense the real immediate environment of the work.
As such, his interactions are more attuned to reality.
Management Games. These are either board games or computer simulation exercises, which
are primarily used for training managers. Under this method, trainees must gather information,
analyze it, and make decisions. Management games are usually played in terms of four to six
persons with the trainer as umpire. Management games are highly comprehensive.
Distance Learning. There are times when employees who need training are so
geographically dispersed that it is impractical to allow them to personally be presented in the
training centers. This difficulty has been addressed by the modern telephone. Because of the
flexibility of the telephone, it is now possible for a trainer to communicate with a number of
persons simultaneously and without all of them meeting each other personally.
Through the telephone, distance learning can now be made by way of audio-conferencing,
video-conferencing, and doc-conferencing. Through this method, companies can now provide
information about new products, policies or procedures, and also provide skills training and
expert lectures.
57
EVALUATING TRAINING PROGRAMS
Organizations will survive and grow if the activities they undertake are effective, i.e., they
are able to achieve their goals. As organizational resources are limited and some training
programs cannot be funded, decisions have to be made on what training programs must be taken
precedence over others. As much, an evaluation of training programs becomes necessary. When
properly evaluated, less effective programs can be discontinued and those that are retained can
be strengthened.
Training programs are designed to produce various types of outcomes and several means are
used to determine them. What these outcomes are and what are measured are listed as follows:
1. Cognitive outcomes. These are used to determine the degree of familiarity of the trainees
with the principles, facts, techniques, procedures, and processes that were discussed in
the training program. To measure cognitive outcomes, pencil and paper tests are
commonly used.
2. Skills-based outcomes. These are used to assess the level of technical or motor skills and
behavior of the trainees.
3. Affective outcomes. These are used to measure attitudes and motivation of trainees.
4. Result outcomes. These are used to determine the benefits afforded by the training
program to the company. The benefits may be expressed in terms of reduced employee
turnover, absences, and accidents, increased sales, improved collection of receivables, etc.
SUMMARY
 Successful applicants for jobs are hired for the purpose of filling vacancies. The new
employees cannot be expected to perform effectively so they are required to undergo
orientation and training. The same problem confronts the newly transferred or promoted
employee and they are also required to undergo orientation and training.
 Orientation refers to the set of activities that attempts to make new employees well-adapted
to the work environment. Among the purposes of orientation are: it creates an initial
favorable expression, it enhances interpersonal acceptance, and it helps the new recruit
adjust himself to the job.
 The CEO, the HR department head and the line supervisor are the three persons responsible
for orienting employees. Orientation consists of two levels: (1) organizational, an (2)
departmental and job orientation.
 Orientation programs are presented through classes, meetings, tour of the company offices
and plants, films, employee, handbook, information leaflets, slides, and charts.
 Training is an attempt to improve the employee’s ability to perform his job. The supervisor
and the personnel manager or the training directors are the persons responsible for training.
 Training is undertaken to make employees efficient and effective.
 To determine whether training is necessary or not, needs assessment is undertaken. There are
various methods of identifying training needs.
 Two important theories of learning worth knowing are: operant conditioning and social
learning.
 Training methods are classified into on-the-job training, apprenticeship, and off-the-job
training.
 Training programs may be evaluated by knowing what outcomes are expected and what
ways may be devised to measure them.
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Learning Activity
Determine the training methods used by at least three organizations in your area.
Assessment
1. What is orientation? Why is it a necessary activity?
2. What is the role of the head of the HR department in orientation?
3. What topics are presented in organizational orientation?
4. What are the means used in organization?
5. Who is the person in the organization mainly responsible for the training? Why is this so?
6. Why is training an important activity?
7. How many training needs to be determined?
8. What are the various ways of identifying needs?
9. What is “operant conditioning”?
10. How may the various training methods be described?
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Chapter 6
THE LEGAL BACKGROUND OF THE
EMPLOYMENT PROCESS: HIRING AND
INTEGRATION
 Interpreting the legal background of the employment
process
 The concept of employment law
 Rules and regulations related to employment
 Legal aspects related to work performance
 The formation, parties, and main features of
employment relations
 The components of the employment contract
 Employer obligation for providing employment related
information in writing
 The obligations and rights of employers and employees
 The concept and objectives of the integration process.
 The individuals subjected to integration and the
respective immediate supervisors
 The main stages and components of the integration
process
 Integration-related risks
Learning Outcomes:
1. Understanding the full range and the four stages of the employee acquisition
process both from the point of view of the employer and employee.
2. Familiarity with and understanding of the legal background of the
employment process.
3. Distinguishing different types of employment.
4. Understanding the main components of the work contract.
5. Understanding, designing, and applying the main stages of integration
programs.
6. Recognizing integration-related risks.
60
INTERPRETING THE LEGAL BACKGROUND OF THE
EMPLOYMENT PROCESS
According to human resource management experts recruitment and selection should be
followed by hiring as the main objective of employee acquisition is finding the most suitable
candidate for the needs of the given organization. Employment, however, is not a homogeneous
concept as it entails workers both in the public and private sphere. While such terms as work
contract, assignment contract etc. are often mentioned, such schemes are regulated by differing
employment laws.
Both employment and hiring are highly regulated processes.
A legal system of a given country is the aggregate and uniform framework of all
relevant laws and regulations, a con-temporarily effective legal structure. Laws in general
enforce basic legal norms.
A branch of a given law is a sum of homogeneous legal regulations forming a uniform
system governing identical social relations Employment law recognizing the hierarchical
relations between employer (supervisor) and employee (supervised) is such a branch.
THE CONCEPT OF EMPLOYMENT LAW

The scope of employment law is restricted to social and other relations pertaining to
the employment process and no other legal relations are in its scope.
Employment law specifies rights and obligations associated with the employment process
including conditions of, modifying, and terminating employment, basic rules of work
performance, work time, salary related questions, fundamental aspects of labour disputes etc.
Furthermore the relationship between employers and groups representing employee interests is
regulated as well.
Employment law refers to a sum of legal specifications pertaining to a contractual
labour relationship established between employer and employee. Since the employee obliged to
work for the employer is in a need for additional protection employment law regulates all
relations resulting from such contexts.
Contracts are crucial components of employment law. A contract is a declaration of
intent on the part of two or more persons to perform a certain task or bring about a legally
specified consequence.
Employment-related legal specifications regulate:

 establishment of contracts between employer and employee, the determination of work
conditions, the legal aspects of work performance (individual employment law)
 the legal aspects governing employer and employee relations (collective employment
law)
 various laws pertaining to finding and retaining employment including general and
occupational safety related aspects.
RULES AND REGULATIONS RELATED TO EMPLOYMENT

While rules and regulations related to employment are primarily found in the Labour
Code (henceforth LC), employment relations are also governed by
a) Act 1992/XXII.
b) Act 1993/ XCIII. on occupational safety
c) Act 1991/IV. on employment
d) Act 1989./VII. on strikes
e) Government and ministry decrees pertaining to labour relations.
Act 1992/XXII regulates labour relations in the private area and employment in the
public area is governed by Act 1992/XXXIII specifying the legal status of public employees
61
and Act 2011/CXCIX applies to civil servants. While employment regulations can be within the
scope of the Civil Code, the chapter focuses on the Labour Code.
LEGAL ASPECTS RELATED TO WORK PERFORMANCE
The increasing of the employ-ability of the population of employment age (16-65 years)
has always been a crucial economic and social priority for the government. The performance of
productive work generates income for the employee while the employer as a result of successful
work performance can fulfil the conditions for growth eventually leading to the hiring of more
employees. Employment relations cover a variety of work performance types:
Types of employment relations:

1. general work relations,
2. assignment,
3. entrepreneurial work,
4. tele work,
5. distance work,
6. individual entrepreneur,
7. work performance by a member of a partnership,
8. self employment,
9. work performance by a family member,
10. cooperative employment types,
11. labour relations of athletes,
12. accounting activities,
13. independent commercial agents,
14. foster parents (professional and substitute foster parents),
15. unique features of public work or work performance for public interests,
16. civilian services in lieu of military services,
17. services performed for honoraria.
Due to such variety of employment relationships the selection of the appropriate
framework is a challenge both for employer and employee. Joint ministry directive 7001/2005.
(MK 170.) FMM-PM provides assistance regarding the respective criteria. The directive clearly
specifies a set of criteria determining the type of the respective labour relationship. Due to
temporal and spatial limitations detailed information will be provided only on employment
contracts in the private sphere.
THE FORMATION, PARTIES, AND MAIN FEATURES OF

EMPLOYMENT RELATIONS
While the Labour Code does not define the concept of employment relationship, it
governs certain characteristic aspects of such relations.
According to the traditional interpretation of employment relationship a party
obliges to perform regular work for the other party under the direction of the latter.
Subjects of the employment relationship

The subjects of the employment relationship are the employer and the employee. Only
an individual or organization recognized as a legal entity can function as an employer.
Employer is obliged to inform employee on which organization or person carries out or
implements the rights and obligations related to employer status or has the authority as an
employer.
Any person who has passed his or her 16th birthday can establish employment
relations. However, during school holidays a person over 15 enrolled as a full time student in a
secondary education institution can work as well.
62
The formation of an employment relationship
In lieu of other legal regulations an employment relationship is based on a work
contract. Work contracts have to be in writing and the preparation of the work contract is the
responsibility of the employer.
The main features of the employment relationship

One of the crucial aspects of an employment relationship is the hierarchical
(supervisory, subordinate) arrangement of the parties. The employer has a broad authority to
direct, govern, and control all aspects of the work performance, including the ways of carrying
out the work instructions. The employee or individual is integrated into the organizational
structure of the employer, a legal entity or person. Work can only be done by the given person,
with the tools and devices of the employer at a location determined by the latter.
THE COMPONENTS OF THE EMPLOYMENT CONTRACT

The content of an employment contract
While an employment contract can specify and stipulate any work related issue, its
content must adhere to the respective regulations and collective agreements unless the given
terms are more favourable for the employee than those provided by the aforementioned
documents.
Employment contracts must provide the names of the parties and all employment-
related data. Employment contracts are based on agreement on three fundamental issues:
1. the basic wage of the employee (basic wage was called personal basic wage
previously)
2. the work area of the employee,
3. the location of working.
During the determination of the basic wages the parties take regional wages paid for
similar jobs into consideration. The smallest mandatory basic wage is the minimum wage.
Lesson 8 will provide detailed information of wage types.
The work area discussed earlier refers to the sum of all tasks and obligations to be
performed by the employee. Work area definitions should be prepared in the form of job
descriptions.
The venue of work performance is determined at the headquarters or premises of the
employer.
In addition to the other three issues the parties can agree in several other questions
concerning the term of the employment contract with an unlimited scope or with a set date, the
date of starting work can be set, along with the scheduling of the work time or including a trial
period clause in the contract. However as it was mentioned earlier a work contract or
employment contract cannot contradict or violate any legal specifications or collective
agreements unless it stipulates more favourable terms for employees than these regulations. If
the employment contract violates any of these regulations thus contains unfavourable terms for
employees, it is declared null and void.
The employment contract has to specify the location of work. In lieu of such
specifications the location of work is the place where the given work is customarily performed.
According to a modification introduced in 2012 the location of work is a mandatory component
of employment contracts but its omission does not invalidate the given agreement. In order for
the employment contract to become legally binding agreement has to be reached both on the
basic wage and the determination of the employee’s work area. Nevertheless, if work is
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performed in spite of these omissions the activity falls within the jurisdiction of the Civil Code.
Naturally, a work contract can be established retroactively as well.
Employment contracts must determine the term of the employment relation as the
lack of a set date makes the employment relationships unlimited. Unless specified otherwise
an employment relationship entails employment on a full day basis. The probationary period
cannot exceed three months from the starting date of employment and it can be extended only
once, but only for another three month term.
EMPLOYER OBLIGATION FOR PROVIDING

EMPLOYMENT RELATED INFORMATION IN WRITING
Employer has to inform employee in writing within 15 days of starting work
about:
a) the daily work time,
b) wages exceeding basic wages and other benefits,
c) means of calculating wages, frequency and date of payment
d) tasks related to the given work area,
e) the extent, means of calculation, and taking of vacation time
f) rules for the establishment of quitting period both for employer and employee
g) whether the terms of the collective contract are applicable to the employer
h) who has the status of employer.
A variety of materials can be found on the Internet providing information to both parties.
THE OBLIGATIONS AND RIGHTS OF EMPLOYERS

AND EMPLOYEES
The content of the employment relationship is made up by the rights and
obligations of both parties. Employment laws also specify the main obligations and rights of
employees and employers. Accordingly we provide a brief description.
The main obligation of employees is to perform the given work according to
relevant regulations, specifications, and instructions while cooperating with fellow workers.
Furthermore, during the performance of the given task an employee should avoid
jeopardizing one’s health and physical integrity, while abstaining from disturbing others, or
causing material damage along with harming one’s reputation. Moreover employees
becoming aware of confidential business related information should not reveal it to outsiders
or third parties. At the same time employees cannot disclose any information obtained during
work performance as such disclosure would be disadvantageous to the employer or any
other person.
The main obligation of the employer is the provision of employment according to
the work contract, the rules regulating employment relationships and other legal
specifications. The obligation to pay wages entails the payment of wages according to the
rules regulating employment and the work contract. Wage provision must meet the following
criteria:
− provision of fair wages,
− the principle of wages providing adequate living standards,
− non-discriminatory wages
− equal pay for equal work.
Employers are required to protect the life, health, and physical safety of employees. This
topic related to occupational safety will be discussed in lessons 10-12. Moreover employers
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should arrange the work effort in a way that the employee can exercise his or her employment
rights, fulfil his or her obligation, along with providing information and guidance necessary for
successful work performance.
Apart from obligations laws make provisions for employment rights.
Employee rights: The rights of employees are usually the opposites of the employer
obligations. Such rights include fundamental constitutional protections pertaining to
employment, the free choice of occupation and work place, the right to appropriate work
conditions, social protection, fair wages, and employment. Collective or employee
representation rights include the participation in or influencing of representation efforts.
Employer rights: such rights under the scope of employer authority include the
direction of workers along with a wide range of instructional rights.
In case of the establishment of an employment relationship between employer and
employee the firm expects the employee to perform with 100% efficiency from the first day on.
The last stage of the personnel acquisition process is the integration of the new employee into
the organizational structure of the company.
THE CONCEPT AND OBJECTIVES OF THE INTEGRATION

PROCESS
The successful integration of a new employee is crucial for the organization. The
integration process, a consciously designed and arranged human resource management effort
facilitates the realization of this goal. (Fekete et al 1997). According to a different definition:
”Integration is an interactive process during which the new hire becomes a functional part of
the work processes of the given organization, develops positive social connections with his
fellow workers and supervisors, along with forming a comprehensive perspective of the
company in such fields as knowledge, professional networks, and expectations.”
The main objective of the integration process is to enable the new worker to become a
useful member of the organization in the shortest time possible. The realization of this goal
depends on the new employee’s attitude as well. Consequently, if needed the worker should ask
questions, work overtime, or prepare at home for the new tasks. Thus integration at the same
time fulfills important work place socialization functions as well. (Tóthné Sikora 2002).
The objectives of the integration program:
 conscious promotion of the integration of newly hired workers,
 introduction to the work organization, promoting familiarity with the main
features of the new place of employment,
 promoting a harmonious supervisor-employee relationship,
 promoting independent and conscious work performance,
 establishing the conditions of high standard work arrangement design,
 guaranteeing continuous development and training.
THE INDIVIDUALS SUBJECTED TO INTEGRATION AND

THE RESPECTIVE IMMEDIATE SUPERVISORS
As it was demonstrated earlier integration is a two-sided process, as the employer
facilitates integration and the employee has to become integrated. The integration will be
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successful only if both parties make the respective necessary steps. Yet, due to the hierarchical
nature of the employment relationship, the first step has to be made by the employer.
Participants in the integration process
– the new worker,
– the immediate supervisor,
– the closer environment (colleagues),
– the coordinator of the process, the human resource management
department.
Basically there are four new fields the new employee has to perform effectively:
1. business orientation,
2. the coordination of expectations,
3. connections,
4. cultural adaptation. (Répáczki, 2011.)
While the integration process is coordinated by the organizational unit responsible for
human resources, the most significant task belongs to the immediate supervisor as he is
responsible for:
a. preparation of entry into the workplace
b. Information discussion with the newly hired worker
c. Introducing the new employee to the staff.
Since immediate supervisors have several responsibilities and tasks, often a mentor is
assigned to the new worker. In order to guarantee the efficiency of the mentoring process the
appointment of the mentor should be done in writing and all the respective tasks should be
clearly defined.
THE MAIN STAGES AND COMPONENTS OF THE

INTEGRATION PROCESS
Integration programs not only provide help to entry level colleagues or people at the
beginning of their career, but they supply general and specific information concerning the
actual situation of the company. Accordingly we distinguish two stages of the integration
process, the general stage providing general information applying to all new workers, and the
specific stage supplying relevant information to a person fulfilling a specific work area.
Components of the general integration process:

1. A general introduction of the work place (introduction of the firm and its
organizational structure, informational materials, a walk on the premises, getting to
know the customs and traditions)
2. Compulsory training (industrial safety rules)
3. The clarification of roles at the work place, subordinate, supervisory, and horizontal
connections
4. Work time regulations (starting and closing time, breaks, recording of work time,
sign in sheets, asking for vacations, reporting sickness)
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5. Introducing the legal regulations pertaining to the work area (laws, policy and
procedure, collective agreement)
6. Formal and informal meetings, arrangements of meetings with managers providing
information on the strategy, objectives, professional tasks and the importance of high
quality work performance
7. Information on maintaining connection in the company (connection and
communication with managers, colleagues, the operation of the intranet, the newsletter
or other informational publication of the company),
8. Meetings with the immediate supervisor, clarifying worker expectations, assessing
the progress of the integration program.
The individual or personal integration stage is more specific. bearing relevance to

the work area and connected to the person’s work, professional, or management experience. At
this stage the worker is given an opportunity to become familiar with colleagues and the
operation of organizational units relevant to the given work area. A rotational system enables
the new worker to spend time at each organizational unit bearing relevance to his or her given
work area. After the completion of the per- zonal integration process the worker is introduced
into its own work area and the attendant professional expectations. This stage is also called the
professional integration stage.
The components of the personal or individual integration stage:

a. Designing and implementation of rotational phases
b. The identification of the final work place and work area following the evaluation of
the rotation process.
c. Professional integration.
INTEGRATION-RELATED RISKS
After the integration period (generally equaling the probationary period) decisions
have to be made concerning the suitability of the new worker for the given work area. If the
performance capacity is found adequate the employee can be put into permanent status. In case
of a negative answer or the failure of the integration process the employee has to leave the
organization. The subsequent increase of the fluctuation rate (the proportion of those leaving
the company) eventually leads to a new personnel acquisition process entailing additional costs
in form of time and expenditure.
Several researchers confirm that the so-called psychological contract determines
employee satisfaction, commitment and performance (Csigás 2008). The psychological contract
entails what the employees think of the given work, the expected performance, the fairness of
compensation, the anticipated company actions and the interrelation of all these factors. The
fact that a psychological contract has no legal binding force implies its greatest danger, namely
the worker should always be aware of requirements pertaining to him and others along with the
positive and negative consequences of his work performance.
One of the greatest integration related risks is the inappropriate work load, either
putting too much or too little on the shoulders of the new hire. Frequently the new worker only
sits around idly in the first days as he is not informed of the given tasks and responsibilities
either by his immediate supervisor or mentor. Also, at the other extreme the new worker is
burdened with a heavy load and driven by a compulsion to fit in he is afraid or reluctant to ask
questions leading to frustration and dissatisfaction, It is better for both parties if the new worker
is aware of his tasks and contributes to the organization from the beginning of his employment
at the firm.
The entry of a new worker could mean other risks as it could result in additional tasks
for the manager and close associates as more time has to be spent with the new hire. Time
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allocated for this purpose takes time away from other work tasks, however, neglecting the new
worker can cause frustration on his part eventually leaving the organization.
While personnel acquisition includes four stages recruitment, selection, hiring, and integration,
Hungarian experience shows that not enough time is spent on integration. This process is
crucial, however, as the first three months or the probationary period is definitive of the future
performance and effectiveness of the newly hired worker.
SUMMARY
The lesson focused on the two stages of the personnel acquisition process, hiring and
integration. At the beginning detailed information was provided on the legal background of the
employment process, the concept and main aspects of employment law, the legal background of
employment relations, the types of employment relations, the components of the employment
contract, the rights and obligations of employers and employees. The chapter also dealt with the
concept, goals and stakeholders of the integration process, the main aspects of the general and
personal or individual integration stage and the risks related to the integration process.
ACTIVITY
1.Describe the concept of employment law.
2.What types of employment relations are you familiar with?
3.What types of legal specifications pertaining to employment regulation are you familiar with?
4.Describe the content of the employment contract.
5.What are the obligations and rights of employers and employees within the framework of an
employment relation?
6.What information should be provided to the employee by the employer?
7.Describe the integration process.
8.Describe the goals of the integration program.
9.List the stakeholders in the integration process and their main tasks!
10.What are the four fields a new employee has to prove himself in?
11.Introduce the general stage of the integration process!
12.Introduce the personal or individual stage of the integration process!
13.Which are the most frequent risks related to the integration process?
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Chapter 7
PERFORMANCE EVALUATION, ON-
THE-JOB TRAINING AND
DEVELOPMENT
 The concept and interpretation of performance
 The concept of performance evaluation
 Basic principles of performance evaluation
 The objectives of the performance evaluation
process
 Performance evaluation technologies and systems
 Performance evaluation systems
 Performance evaluation interview and
performance evaluation error
 The concept, objectives, and basic questions of
personnel development
 The concept and types of on-the-job training
programs
 On the job training programs and the effectiveness
of the process
Learning Outcomes:
1. Defining the performance evaluation process
2. Understanding the need and benefits of performance evaluation
3. Designing and implementing the steps of the performance evaluation process
4. Analyzing and evaluation of the basic principles of performance assessment
5. Introducing and applying performance evaluation technologies
6. Designing and carrying out a performance evaluation interview
7. Recognizing, identifying, and avoiding typical performance evaluation errors
8. Familiarity with the most frequently offered on-the-job training schemes
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THE CONCEPT AND INTERPRETATION OF PERFORMANCE
The concept of performance, due to its subjective content is hard to explain. Reznek’s
definition highlights the complexity of the concept.
Performance is the utilization of knowledge, skill, and aptitude at a given quality level during
the fulfillment of a work task85.
The key is utilization indicating the attitude of the employee toward the given work. Consequently this
perspective emphasizes not only the absolute value of knowledge, skill, and aptitude, but the use of the
given work performance. One of the most important factors behind utilization is motivation.
Consequently, despite an existing ability to perform a task, without appropriate motivation the given
performance level will be below the worker’s potential. Utilization also depends on the compatibility
of the employee’s attributes (skill, ability) with the respective work area criteria. Thus performance
can defined as the level of implementation of a determined or expected requirement at a given work
area. Perfomance can be described by a function indicating if any performance elements are valued at
zero, the final result is zero as well.
The components of the performance concept
THE CONCEPT OF PERFORMANCE EVALUATION

While the concept of performance is not easy to define, performance evaluation is necessary
to assess how the given tasks are fulfilled in the respective work areas. Performance Evaluation is a
written assessment of employees according to a previously established schedule.
Performance evaluation criteria
Performance evaluation is based on three criteria described below:
A. Written form: a previously determined performance evaluation documentation helps to

promote uniformity and a systematic approach facilitating traceability and accountability;
B. Systematic approach: logical consideration of all performance influencing factors,
appropriate emphasis on the respective factors;
C. Evaluation at regular intervals: evaluations can be performed on a yearly, half-yearly, or
even monthly basis, but after each evaluation phase an interview has to be conducted. Keeping
the pre-established schedule is important for the comparison of the respective measurement
and assessment data.
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Performance evaluation is a process during which the work of the individual employee is:
a. Observed
b. Assessed
c. Recorded
d. Reported
e. and discussed in order to improve the quality and quantity of work performance for the
purpose of maintaining and increasing work- related satisfaction.
BASIC PRINCIPLES OF PERFORMANCE EVALUATION

Performance evaluation depends on basic principles that have to be taken into consideration
on a permanent basis.
1. The principle of developmental intent: Evaluators have to keep in mind that employees
prefer developmental evaluation to being taken to task. The evaluation should be the
foundation of the awarding process and promotion. The reports could point out certain
deficiencies helping the employee to address the problem areas and assisting managers in
making decision regarding the particular employee. The overall goal is the identification of
areas in need of development and improvement.
2. The principle of motivation: Employees perform better, work more and are more open to
performance evaluation if they are informed of the given results, that is receive feedback. The
respective objectives should be realistic and within the range of the given employee’s
achievement capacity. Moreover, the employees should have a part in the establishment of
goals as well. Consequently, the respective work performances have to be observed and
compared to the expectations, customs, and norms.
3. The principle of interactive and multi-directional evaluation: Performance evaluation is not
exclusively an employee and employer concern. The criteria for authentic evaluation include
the opinion of persons with relevant information, external partners, or clients.
4. The principle of inclusion: In order to avoid the failure of the interview process partly by
rejection, partly by a reluctance to accept innovations feedback is crucial. Employees subject to
the evaluation process should be informed on the objective, details, methods, frequency, date,
and expected time of performance evaluation along with the respective results and
consequences.
5. The principle of feasibility: A given organization has to elaborate an evaluation system
which does not entail unbearable burdens. Consequently the evaluation system should be cost
effective with a predictable resource need. The necessary resources include professional
evaluators capable of objective unbiased or non-prejudiced assessment, and possessing
appropriate communication skills in order to inform the given employee about the results of the
evaluation process in a proper fashion.
6. The principle of free choice: A the fields and aspects of performance evaluation naturally
differ in each organization. While certain features are present in all evaluation schemes, the
given organization should develop its performance evaluation system in sync with its other
systems including training and quality management.
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THE OBJECTIVES OF THE PERFORMANCE EVALUATION
PROCESS
The objectives of the performance evaluation process can be grouped into three categories:
The main categories of performance evaluation objectives
The main groups of performance evaluation:

1. Performance Review: the purpose of evaluation is to facilitate performance improvement. This is
justified by the assumption that successful and effective individual work performance promotes the
development and efficiency of the organization as well.
2. Reward Review: as a result of the review the material and other rewards, benefits, and
promotions can be distributed in a fair manner.
3. Potential Review: the aim of the review is to ascertain what kind of tasks can be fulfilled by the
given individual in the future, and how much time is needed to reach the desired quality. The review
process can take into consideration previous achievements, present performance, and individual
aspirations.
After establishing the goals of performance evaluation, the components of the process have to
determined.
The Three Phases Of The Performance Evaluation Process:
The performance evaluation process
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Step 1: Compilation of an individual work plan
At the beginning of the business year the organization objectives have to be translated into
annual individual work plans. Employees must report whether they agree with the planned tasks, the
outlined objectives and the respective performance criteria. The work plan should include the
objectives, main components, and material resources of the respective tasks. Individual employee
objectives:
a. should be within the control of employees,
b. should be realistic in light of the knowledge and skills of the respective employee,
c. should be important and not easily measurable.
Step 2: Performance assessment

The second step calls for the review of the given performance in light of the individual work
plan, the regular improvement and modification of the plan if needed. Reviews have to be performed
at regular intervals, i.e. on a quarterly basis, but should be administered upon employee request as well.
In case of each review a supervisory report has to be prepared and the work plan can be modified
according to the results of the supervisory opinion. Performance is observed, assessed, and recorded at
this stage.
The most difficult aspect of the process is the assessment and analysis of annual performance
as in addition to ascertaining the fulfillment of the annually scheduled tasks, the rate of professional
development, the change of personal characteristics, and the overall achievement level must be
identified. In order to avoid biased or subjective evaluation various technologies should be used. (Such
approaches will be discussed later on).
Step 3: Report preparation and discussion (evaluation interview)
Performance evaluation is an important component of internal communication. This phase
includes the preparation of annual performance reports and the discussion of the findings. Performance
evaluation can lead to promotion or in case of a negative review demotion. After the completion of
this stage the process returns to step one and the planning of the next business year takes the given
performance evaluation data into consideration.
PERFORMANCE EVALUATION TECHNOLOGIES AND SYSTEMS

Performance evaluation technologies can be grouped according to many aspects. One
means of categorization is the target group, namely the given approach aims at the evaluation of
employees separately, or comparing the achievement of more people at once.
Techniques evaluating individuals:

1. Written essay type reports: the evaluator prepares a written report on the performance,
strengths and weaknesses, and potential development options of the given employee.
2. Critical cases (incidents): recording extremely positive or negative behavioral components
impacting performance. It is a more effective developmental tool due to its more specific and
targeted approach as it distinguishes behavioral patterns that should be improved or retained.
3. Grading/qualification scale: while this fast and economic approach evaluates the
employees on a scale of 1 to 5, the depth of the respective information is lower than in the
previous 2 cases. A simple example will illustrate the use of this technology:
Performance evaluation in the field of customer service on a scale of 1 to 5:

5 – Well above average
4 – Above average
3 - Average
2 – Below average
1 – Well below average
In this case the appropriate grades are marked by the evaluator.
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Search the internet for individual performance evaluation tools and present a few examples!
Techniques evaluating groups or persons:

1. Individual classification or ranking: a ranking of employees on a scale from best to worst is
prepared
2. Group classification or categorization (forced distribution): according to performance
levels employees can be ranked in the top 10% (excellent performance warranting retention in all
cases) the upper 20% (above average), middle 40% (average performance) and lower 20% (below
average performance) and the bottom 10% (marginal performance, potentially terminable) categories.
Table 1: an example of group classification
Bottom 10% Lower 20% Middle 40% Upper 20% Top 10%
Evaluated 1 Evaluated 2 Evaluated 4 Evaluated 8 Evaluated 10
Evaluated 3 Evaluated 5 Evaluated 9
Evaluated 6
Evaluated 7
3. Pair based comparison: employees are placed in pairs and are qualified in reference to each
other. After receiving the aggregate points the employee with a higher performance rate is identified.
Search the internet for pair based evaluation tools and present a few examples!
PERFORMANCE EVALUATION SYSTEMS

Performance evaluation systems can be grouped in a variety of ways.. Accordingly
evaluation can be target centred, (Management by Objectives) or competence based. Between
these two extremes there are many other methods, including the 360 degree approach to be
discussed later.96
Target centred approach (Management by Objectives – MbO): in Hungary MbO is one
of the most frequently used methods. Accordingly the employee taking organizational goals
into consideration sets individual goals promoting the realization of organizational objectives
at the same time.This method requires the organization to outline its goals on an annual basis.
The objectives have to be specific and the fulfillment criteria should be clearly determined.
The objectives and criteria should be known by all staff. Accordingly, the manager and the
employee decide jointly upon the goals to be achieved in a given year. MbO is more than a
performance evaluation program, it is also a management philosophy enabling both manager
and employee to plan, control, communicate, or even discuss the aspects of the evaluation
process.
360 degree evaluation: This type of evaluation is also known as the full circular assessment
taking all directions into consideration. At first the employee evaluates himself, then his
supervisor and colleagues at the same level prepare an evaluation and if employees work under
his direction, they prepare an evaluation too. The anonymous test and evaluation forms allow the
evaluators to provide honest opinions without bias. A significant advantage of this method is
based on its multi-directional approach as the more aspects are taken into consideration, the
more detailed and exact the evaluation becomes.
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Consider who should evaluate the work of an assistant professor in case of a 360 degree
evaluation process. Name the work areas and positions of individuals participating in the
evaluation process. Share your solution on the forum found on the Moodle surface.
Competence based evaluation: The aim of the competence based evaluation is to ascertain
whether the employee possesses the competences required for the performance of a given task.
Employee competences and skills are measured with a variety of devices then compared with the
organizational and work area competence expectations in order to make recommendations for
development. The use of this method requires a clear definition of the required competences.
The definition process can take into consideration:
- the organizational goals (based upon competences required for the performance of tasks
and activities)
- precise description of work area requirements.
PERFORMANCE EVALUATION INTERVIEW AND

PERFORMANCE EVALUATION ERRORS
After the completion of the evaluations the results should be shown to the employee. The
evaluation interview provides an opportunity to inform the given worker. The two stages of the
interview process are shown on the following chart: The evaluation interview
The evaluation interview begins with the preparation stage. The preparation stage includes the
following tasks:
1. Collection of information: Information has to be collected on the extent of the fulfillment
of goals outlined and approved during the last interview. Potential sources of information:
documentation of previous evaluation, job description, evaluator notes, opinion of colleagues
etc.
2. Preparation of the written evaluation: The evaluator has to establish a diagnosis (the
description of the present situation) as a basis of the developmental recommendations. The
sending of the evaluation documentation is not obligatory. The employee, however depending
on organizational policy could receive it in order to prepare for the evolutionary interview.
3. Compilation and rehearsing the main message: The interview is crucial device in
obtaining relevant information, influencing expected employee conduct, anticipating conflicts,
and potential means or resolution. Consequently, the communication of the respective
evaluation results requires significant preparation.
4. Determination of the location and time of the interview: In order to enable the employee
to prepare for the interview information on the respective location and time has to be provided
at least a week before the event.
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It must be noted that the first 3 points are relevant to the employee as well since the preparation
process can include information collection, the studying of the respective job description, looking
over the previous evaluation documentation (the filled in and mutually signed evaluation sheet) and
comparing the previously identified objectives and tasks with the respective implementation effort
and potential results. The location of the interview has to be arranged in a neutral manner, reflecting
the equal status of the parties. All factors presenting a potential psychological barrier must be
eliminated and telephones should be turned off to guarantee adequate concentration and attention
levels.
The communication stage of the evaluation interview includes the following steps:
Tasks to be fulfilled during the communication stage of the evaluation interview
The communication stage of the evaluation interview: During this stage the actual
interview takes place which can be divided into two additional phases:
1. Preparation, introduction: In order to release tensions the interview should be started
with neutral topics. The person under evaluation should be gradually drawn into the interview
as he or she has objectives related to the process.
2. The components of the discussion stage:
2.1. The person under evaluation presents the results of the self- evaluation. In case of
written evaluation it should be sent to the manager.
2.2. The evaluator asks questions and collects information from the employee.
2.3. The evaluator presents his or her evaluation: this should be done in a positive and
constructive manner, covering all evaluation aspects enabling the employee to asks questions
during the process
2.4. Discussion of the evaluation. A real discussion is necessary
2.5. Determining new performance objectives, goals for the future: The goal setting
process should involve the employee as well enabling him to make developmental
recommendations. Goal setting includes performance objectives and personal development
objectives.
2.6. Closure, documentation: In conclusion the main points of the evaluation interview
have to be summarized along with a mutual confirmation of the new action plan. The
evaluation sheet has to be signed both by the interviewer and the interviewee.
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Performance evaluation errors
In order to guarantee objectivity and a realistic approach the process should avoid
performance evaluation errors. The respective mistakes are grouped into three categories. (the
lesson does not provide detailed information on the respective errors):
1. Mistakes related to the organization: performance evaluation problems at the
organizational level including the malfunctioning of the given system or inadequate
support form performance evaluating HR functions.
2. Mistakes by the evaluator: this problem can occur if the evaluation is not objective in
any aspect or the evaluator demonstrates bias toward the person under evaluation.
3. Communication errors: this problem can occur if the employee is not appropriately
informed of the results of the evaluation.
Training and competence development is an important field for the utilization of the results
of the performance evaluation process.
THE CONCEPT, OBJECTIVES, AND BASIC QUESTIONS OF

PERSONNEL DEVELOPMENT
Personnel development provides organized learning opportunities for employees to facilitate
a work performance commensurate to the respective work area requirements.
The developmental process promotes creative learning and motivates the members of the
organization to search for crucial knowledge and skills.
Personnel development can be associated with numerous human resource management
processes as it can function as a starting point for work area analysis, work area design, or
performance evaluation. Staff or personnel development aims at the modification and improvement of
employee competences facilitating the expansion of knowledge, development of skills and
improvement of attitudes and employee motivation.
The goals of the staff development process:

1. Guaranteeing an appropriately trained work force: Organizational efficiency and
productivity depends on the up to date knowledge of committed staff.
2. Improvement of competitiveness A trained and motivated labour force provides a competitive
edge or advantage
3. Improvement of organizational flexibility: If the expectations toward a given organization
change, adaptation to new demands requires an appropriately trained and motivated labour force with
a new outlook.
4. Modification of attitude and motivation: Organizational efficiency requires that a given
employee knowledge be paired with adequate will, in other words the employees should be motivated
and committed.
Staff or personal development efforts can only be successful if the individual and organization
level goals are harmonized..
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Basic questions of staff or personnel development:
1. What should be developed? (knowledge, skill, competence, conduct, attitude)
2. Who should be part of the development process? (employees, managers)
3. What method should be used? (training, situational exercise, combined methods.)
4. Who should deliver the development program? (internal or external expert)
5. What criteria should be used for evaluating the developmental program? (Controlling.)
These questions at the same time represent the components of the personnel development
process.
THE CONCEPT AND TYPES OF ON-THE-JOB TRAINING

PROGRAMS
Before a given program is designed and delivered the respective goals (training,
development) have to be decided. Should the organization strive for the development of the
knowledge, skills, or competences of the employees, or rather focus on training programs?
The goal of the training process is to enable employees with lower position and skill
level to perform better in their present jobs.
Developmental programs considering future organizational objectives aim at the
increasing and improvement of the skills of managers and expert professionals.
Development as a future oriented and strategic objective motivated process promotes
adaptation and in some cases establishes the foundation of promotions.
Training programs can be grouped according to many criteria including the location
of learning:
A. on the job
B. off the job schemes

On the job training takes place on the premises of the employer in work time with the help of
the devices provided by the organization. As a result of the training workers can obtain practical
knowledge or immediately deploy-able professional skills. Off the job schemes promote the learning
of more abstract concepts and other theoretical knowledge on the longer term.
The training program
All training programs are based on clear definition and a clearly understandable requirement
criteria supported by an adequate methodology. The training scheme has to be designed, programmed,
and implemented.
The development of training programs includes the following steps:
1. determining training needs and demands,
2. establishing conduct-related objectives,
3. profiling instructors and learners,
4. elaborating an evaluation system reflecting the new skills, knowledge, and conduct.
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1. Determining training needs: 1. Who needs training, or is there an actual need for such
programs? 2. What kind of training is needed? Answering these questions requires organizational,
work (area) and work force analyses addressing the following issues:
a. determination of company policy,
b. matching the work areas with the structure of the enterprise
c. establishment of managerial responsibility for all the respective organizational units
d. work load analysis, performance analysis,
e. reliable and fair performance evaluation,
f. assessment of training needs on various fields,
g. establishment of permanent training objectives,
h. identification of knowledge level required for the respective work areas, disclosure of
supplementary training needs,
i. development of career structures for professionals.
At this point a crucial concept, competence, has to be determined. In case of competence
deficiency a given employee must participate in relevant training. How can the concept of competence
be defined? While it’s a term of Latin origin implying suitability or cleverness, the term has several
interpretations. On one hand it connotes the sum of skills and aptitudes promoting problem solving at a
given field. At the same time it refers to the willingness of an individual to apply and put in practice
the respective problem solving skills. The concept also entails knowledge, experience, and personal
attributes. Thus competence can be regarded as a decision and implementation facilitating skill system
composed of aptitudes, personal values, attitudes, personality features and motivation levels.
2. Establishment of conduct related objectives: Employers in our rapidly changing world
require a number of competences and personality features:
a. acceptance and understanding of instructions,
b. sense of responsibility, independent working, problem solving and decision making
capability,
c. imagination
d. maintaining connections with colleagues and managers,
e. group communication ability promoting the realization of group goals,
f. pride in one’s work,
g. quality awareness,
h. computer literacy.
3. Profiling instructors and learners: This stage implying program design requires
answers to the following questions: are the instructors provided from internal sources or
external sources, what are the qualities of instructors developing the training program, what
are the learning capabilities of the given employee participating at the training, can he or she
acquire the desired competences, what methods guarantee the effectiveness of the training
program?
4. The evaluation system: Evaluation methods should take the following aspects into
consideration:
a. Reactions of participants: what are participant views on the text and the given
instructor?.
b. Level of acquired knowledge and skills: the respective knowledge levels can be
ascertained by written or oral examination, or in some cases by skill demonstration or
situational exercise.
c. Level of changed conduct: the respective modifications imply a learning transfer,
promoting long-term application of knowledge acquired in a learning environment or situation.
Conduct modification requires information gathering from the participant of the training process,
the heads of the respective organizational units, and other employees.
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d. Performance levels and the required results: at this stage two aspects: a, performance
change following completion of the training process, b, financial profitability or return of the
training expenses should be explored.
ON THE JOB TRAINING PROGRAMS AND THE EFFECTIVENESS

OF THE PROCESS
The following chart summarizes the steps of the on the job training programs: needs
assessment, training design, implementation of the training program, follow up.
We provide detailed information on one aspect, namely training program design.

The training design process has to address the following issues:
1. What is the goal of the training process? Potential objectives include the promotion of
effective and successful performance, facilitation of effective communication with
colleagues, clients, or limiting the production of defective goods.
2. What kind of knowledge or skill should be developed: Managers might aim at the
expansion of management skills, employees want to enhance professional knowledge or
hone their communication skills. .
3. Which is the appropriate training method? The term: method originating from the
Greek methods connotes path or procedure. We use the term as a road to achieve a goal,
or a procedure facilitating the fulfillment of an objective. Instructional methods are
permanent, repetitive components of the teaching or educational process entailing teacher
and learner activities applied in the form of differing strategies. The respective methods
can take the form of frontal lecture, interactive teaching, or personalized training tailored
to employee needs...
Illustrate how can various training methods be applied. Download information from
the Internet!
4. What kind of resources is needed for the training process? The necessary material,
personal, and financial resources must be identified. Additional issues to be
determined: location of the training, instructors, course plans, texts, instruction
schedules (class times and numbers), knowledge ascertaining methods etc.
5. How should the training process be evaluated? This issue was discussed earlier.
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6. How do we select the participants of the training program?. Conditions for entry
into training programs can be specified by legal regulations, or the employee’s
supervisor can make a joint decision with the training provider.
7. Who should deliver the program? Instructor eligibility can be regulated by law or
requires certain qualifications, and experience.
8. What type of instructional materials should be prepared?. The text forms should
meet the needs expressed by the subject descriptions and course plans.
Criteria for the efficiency of the training programs:
a. program recognition and definition
b. elaboration and establishment of objectives
c. analysis of relevant factors
d. collection and evaluation of relevant information
e. independent learning
f. process coordination
g. consideration and justification of decisions
h. applying appropriate methods for identifying ideas
i. development of search and action strategies
j. performance of problem, situation, and consequence analyses
k. communication and interpretation ability
l. resourcefulness
Training and staff development is a crucial human resource management activity
promoting the improvement of organizational efficiency.
SUMMARY
The lesson offered a definition of the concept of performance and expressed it in function
format. After the clarification of the performance evaluation concept the respective basic
principles and objectives were introduced followed by the description of the process. The
chapter treat- ed technologies for the comparison of individual and group evaluation, along
with the introduction of certain performance evaluation systems. The lesson also dealt with the
two stages of performance evaluation interview and the errors of interviewing. The second
segment focused on concept, objective, and processes of personnel or staff development and
on the job training.
ASSESSMENT
1. Explain the concept of performance.
2. What factors determine performance?
3. Define the concept of performance evaluation.
4. Describe the basic principles of performance evaluation.
5. Describe the performance evaluation process.
6. How can performance evaluation objectives be grouped?
7. How can performance evaluation technologies and methods be categorized?
8. Which ones are the most frequently applied personal performance evaluation
techniques, provide a specific illustration.
9. Describe the two stages of the performance evaluation interview process and
the respective components.
10. Provide examples of the most frequent performance evaluation errors.
11. Explain the difference between training and development.
12. Introduce the basic principles and components of personnel or staff
development programs.
13. Describe the content of an on the job training program.
14. Describe the components of an on the job training program.
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Chapter 8
MOTIVATION AND
REWARDING
 The Concept of Motivation and

Rewarding
 Motivation Theories
 Incentive, Incentive Management,
Incentive System
 The Concept and Components of Full
Scale or Comprehensive Rewarding
Learning Outcomes:
1. Defining the concept of motivation,
2. Distinguishing between external and internal motivation,
3. Defining the concept of rewarding,
4. Understanding motivational theories,
5. Identifying and understanding the components of the full scale rewarding
process
6. Distinguishing between financial and non-financial incentives.
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THE CONCEPT OF MOTIVATION AND REWARDING
The term motivation is of Latin origin, it means move, moving. The question of
motivation was investigated by researchers from different fields and the results vary
accordingly.
Motivation can be defined from a psychological standpoint:
The psychological aspect of motivation refers to an internal state of
consciousness compelling a certain, defined behaviour.
Psychologists insist on differentiating between motivation and motivating. The subject
of the motivation process is the individual. The person feels an internal compulsion or
motivation to maintain or control a certain behaviour. Internal motives can differ from person to
person. The motivator is the person who exerts influence and supports the given individual to
achieve his or her goals. Thus motivation is connected with incentive as a means of helping a
person in realizing his objectives and desires. Motivation and incentive are devices triggering
unsatisfied and new needs impacting the individual’s internal motives.Thus motivation is
internal compulsion, motivating is external incentive.
Motivation is not only interpreted in an everyday context influencing human behaviour
and action, but motivation at the work place can be defined clearly as well.
Armstrong distinguishes two types of motivation at the work place:
1. Internal motivation – motivation derived from the work effort, connected to the
content of the fulfilled work area. Factors impacting internal motivation include
level of challenge, responsibility, independent work and decision making options,
possibilities of skill and competence development, promotional options etc.
2. External motivation – motivation used by management to promote worker
incentive in the form of pay raise or reward.
MOTIVATION THEORIES
The theoretical background of motivation investigates the reason why humans behave
in a way they do. According to a focus on the given causes or the process behind the given
conduct we distinguish between content theories and process theories. Since the
motivational theories have been discussed within the framework of other subjects we just
mention a few examples and terms.
Content theories focus on the causes behind certain behaviour and conduct.
The best-known theories include:
a. Maslow: hierarchy of needs
b. Herzberg: two factor theory
c. McClelland: connection - performance- power theory
We provide some details of Maslow’s hierarchy of needs pyramid as it will be needed to

solve some exercises later.
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Maslow’s hierarchy of needs
The needs hierarchy levels are defined below:
A. Physiological needs: basic physiological, physical, and biological needs (food,
drink, and dwelling)
B. Safety and security needs: Guarantees the sustainability of the first level. It is
based on job security, fair wages, safe life and work conditions
C. Community needs: man is a social animal, desiring the company of others
(love, understanding, caring, desire for various interpersonal connections)
D. Appreciation and acknowledgment needs: need for recognition by others
(self-confidence, good reputation, prestige, rank within the organization,
importance for and within the organization)
E. Self-actualization needs: motivation for the development and maximization of
internal attributes and skills
We provide a short animation as a review of the Maslow model.
Process theories focus on processes leading to the emergence of a certain behaviour:
1. Fairness theory (Adams: fair acknowledgement of individual effort as
compared to others or its lack.)
2. Objective theory (Latham-Locke: contribution to the objective enhancement
process can improve performance)
3. Reinforcement theory. (past action influences conduct in the future, positive,
negative reinforcement)
4. Expectation theory (Vroom: effort, performance, consequence)
INCENTIVE, INCENTIVE MANAGEMENT, INCENTIVE

SYSTEM
As mentioned earlier incentive is considered an external motivation.
Incentive facilitates the sustaining, modification, or elimination of a certain
conduct at the work place.
Incentive influencing factors can be either external or internal:
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1. External factors: reconciliation systems, wage negotiation options, labour
market conditions, bench-marking.
2. Internal factors: organizational features, performance requirements, needs,
expectation, and interests of employees.
Effective incentive requirements: incentive systems should be based on the business
strategy and objectives of a given organization, the compensation should be proportional to the
work conditions, and should reflect the judgment of the internal labour market (work area
evaluation) and finally it should be commensurate with the conditions of the external labour
market.
Incentive management as a business or company function aims at the elaboration
and application of an organizational incentive, policy, strategy and system, which
facilitate the realization of company objectives via the acquisition, retention, and
motivation of qualified staff members.
Incentive management can be approached form another angle as well: if labour
reconciliation and bargaining intentions correspond with the desired performance levels,
employees can become stake holders (will have an interest) in the company’s growth. Thus an
effective incentive system attempts to create conditions promoting employee commitment to
specified organizational objectives.
Incentive management objectives:
a) Implementation of organizational objectives, or of the business plan
b) Guaranteeing the availability of appropriate employees (acquisition,
motivation, retention).
Other goals to be achieved within the organization:
a) Productively spending the given work time.
b) Development of skills.
c) Autonomous work performance, innovation.
d) Flexible, task-centred working.
e) Career development
f) Contribution to the success of the company
Outline of the components of the incentive management process:
I. Incentive policies: Basic principles
II. Incentive strategy: According to the basic principles incentives are
associated with a long term organizational strategy
III. Incentive practice: Specific realization of the incentive strategy, the sum
of rules, procedures and methods determining the salaries of the staff.
IV. Incentive system: An organized set of incentive elements facilitating the
realization of the goals of the incentive process.
The next section will deal with the question of comprehensive re-warding.
THE CONCEPT AND COMPONENTS OF FULL SCALE OR

COMPREHENSIVE REWARDING
Comprehensive reward policies take into consideration all rewarding options and
methods facilitating employee satisfaction.
Financial incentives and benefits: basic wage, condition-based wage (according to
performance, demonstrated competence, or contribution level), changing wages (bonus,
premium), shares, allowances
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Full scale salary
Incentives in kind related to the work and the given work environment: acknowledgement,
responsibility, sensible work, independence, skill application and development options. career
opportunities, quality of social life at the workplace, balance between work and private life
Full scale, comprehensive rewarding
Transactional incentives, Relational incentives
The components of the comprehensive rewarding process
The model distinguishes between two groups of incentives:

1. The first group includes tangible, financial, or transactional incentives, the basic pay,
conditional pay, pay changes, employee shares and other allowances.
2. The next group includes the non-material, relational incentives aimed at satisfying
non-pecuniary needs. A section of these incentives are person and work related including
professional ac- claim, decision making authority, responsibility, and the content, meaning,
and diversity of the given task. Another group of non- pecuniary incentives are connected
with the given work environment This category includes the utilization of individual
competences and skills, possibility of advancement and a career, employee-centred
management, quality of social life at the work place, work atmosphere, the aspects of the
given work culture, the balance between private life and the demands of the work place.
SUMMARY
The lesson provided the definition of the concepts of motivation, motivating, incentive
along with the introduction of external and internal motivation. Students became familiar with
motivational theories divided into content and process-based categories. The chapter also dealt
with the concept, content, objectives, and main components of incentive management along
with the two groups of incentives, the financial and non-pecuniary incentives.
ASSESSMENT
 What types of motivation techniques can be used for sales persons? Categorize your
answer according to financial and non- pecuniary incentives.
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Chapter 9
THE LEGAL REGULATION OF
WORK SAFETY AND HEALTH
PROTECTION
 The Role of Work Environment and
Ergonomics in Work Performance
 The Concepts, Main Aspects, and
Conditions of Work Safety
 The Concept of Work Place Safety and
Occupational Health
 Legal Rgulation of Work Place Safety and
Health in the EU
 The Legal Regulation of Work Safety in
Hungary
 The Objective and Main Components of
the Work Safety Act
Learning Outcomes:
1. Understanding the role of the work environment and ergonomics in the work
performance,
2. Defining the concept of ergonomics,
3. Understanding the basic concept of work safety and the respective
interrelations,
4. Distinguishing between work safety and occupational health,
5. Understanding EU and Hungarian regulations on work safety
6. Understanding the role of the Hungarian Work Safety Act, its main chapters,
and components and integrating it into human resource management activities.
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THE ROLE OF WORK ENVIRONMENT AND ERGONOMICS IN
WORK PERFORMANCE
Workers have a natural need for an appropriate and safe work environment. The given work
environment and work conditions tend to impact employee health, living circumstances, and the
overall economy. A separate discipline, ergonomics is dedicated to the elaboration of a work
environment meeting human needs.
Ergonomics (human factors) is a discipline studying the interaction between humans and
other components of a system. Ergonomics is also a profession applying theoretical principles, data,
and methods in design in order to optimize human wellness and the performance of the whole system.
(Hungarian Ergonomics Association)
Ergonomic experts contribute to the design and evaluation of work areas, products, work
conditions, and systems in order to make the work environment compatible with human needs,
competences, and limits. (Appropriate colour dynamics improve work performance leading to
specific and clearly identifiable economic achievements)
Healthy and safe working conditions are indispensable to improved work performance. A
hygienic work environment, an ordered and clean work place helps the protection of employee health
and the promotion of creativity. Employees have a right to work in a safe and healthy environment.
THE CONCEPTS, MAIN ASPECTS, AND CONDITIONS OF WORK

SAFETY
The design and implementation of occupational safety laws and guidelines is the
responsibility of the government.
 Work safety agencies and authorities protect the health of workers and the
preservation of work capacity.
 Work safety is also a system of safety and health requirements.
Work safety includes the following fields:

a. The creation of healthy work places meeting technological and hygienic
requirements
b. Work tools
c. Hazardous materials
d. Work arrangement and work time
e. Protection of high risk groups
f. The creation and operation of a work safety organization
All these contribute to the implementation and maintenance of occupational health and
safety. Work safety primarily means technological solutions and the prevention of work-related
accidents, while occupational health informs workers of the harmful effects and diseases
related to a given work in addition to preventive efforts.
Material requirements of work safety
The material requirements of work safety include work arrangements, work methods,
technologies, and security measures minimizing the danger of work-related accidents. .
Personal requirements of work safety
Work safety personnel must have adequate physical and psychological skills, appropriate
qualifications, professional experience, in addition to a thorough familiarity with and the
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conscious practical application of safety and security specifications. The former can be realized
with professional training and the hiring of an appropriately qualified expert, while the latter
goal can be reached by regularly delivered first aid and other training programs.
THE CONCEPT OF WORK PLACE SAFETY AND HEALTH

The discipline of work place safety is divided into two main sections: work safety and
occupational health.
The fields of work safety

 Work safety is the technical, technological and organizational criteria system for
working in a healthy environment.
Work safety determines work conditions and the rules of work performance. Its main
objective is the prevention of work-related accidents and the investigation of actual incidents. It aims
to identify and eliminate sources of hazard and to prepare employees to do the same as well.
 Occupational health focuses on physical and/or chemical hazards and the respective
hygienic requirements of a given work environment.
Accidents resulting from work performed in inappropriate or inadequate material and/or
personal conditions are not only disadvantageous for the respective employee, but the employer and
society at large as well. The worker is not able to perform a given job, and the relevant health care is
financed from public funds. Consequently, the success of work safety efforts requires the
cooperation of the government, employers, and employees as only a specially strong commitment, a
system oriented approach and the verifiability of performance can produce the desired results.
LEGAL REGULATION OF WORK PLACE SAFETY AND HEALTH

IN THE EU
The social dimensions of European integration are documented by the Social Policy segment
of the founding treaty of the European Community, the Treaty of Rome (1957). The social policy
chapter is one of the most comprehensive fields of EU regulations. It includes the improvement of
work and living conditions, the elimination of the respective differences among the member states,
the specifications for occupational health and safety, and rules and regulations of employment law,
the employment process and professional training.
Standardized regulation of health protection and safety at the work place facilitated the
realization of the basic objectives of European integration. The community regulations applicable to
all member states promoted the social and material well-being of employees. Employees have a
fundamental right of preserving their health and safety during working.
The Commission accepted Directive 67/548 ECC on the convergence of laws and regulations
related to the categorization, packaging, and labeling of hazardous materials in 1967. This
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specification can be considered the first directive focusing on health protection at the work place.
The improvement of work place-related health and safety has become a significant priority for the
EU as of the 1980s. The introduction of European level regulations led to the establishment of
minimum requirements of minimum safety while member states can regulate or heighten work
safety at their discretion.
The European framework directive 89/391 EEC on work place-related safety and health
ratified in 1989 functioned as an important milestone in guaranteeing worker safety. The directive
guarantees the maintenance of minimum requirements and conditions for safety and health
protection throughout Europe while allowing member states to issue even stricter regulations.
The framework directive introduced several innovations:
a. The concept of "work environment” established in sync with International Labour
Organization Agreement No. 155 includes both technological safety and the
prevention of diseases.
b. The purpose of the directive is to provide an equal level of safety and health
protection for all employees with the exception of household workers, and certain
government and military service people.
c. According to the directive employers are obliged to take preventive measures to
promote work safety and health.
d. One of the crucial components of the directive is risk evaluation including the
identification of hazard, employee participation, the implementation of appropriate
measures, the elimination of the given risk at its source, documentation and the
regularly performed assessment of hazards at the workplace.
e. The obligation of the implementation of preventive measures emphasizes the
importance of novel forms of safety and health protection measures.
The deadline for the inclusion of the framework directive into the national laws of the
member states was 1992.
In 2004 the European Commission issued a statement (COM [2004] 62) on the practical
application of directives, namely 89/391/EEC (framework directive), 89/654/EEC
(workplaces), 89/655/EEC (work tools), 89/656/EEC (individual protective devices),
90/269/EEC (manual movement of load) and 90/270/EEC (working with monitors). The
statement declared that the EU regulations exerted a favourable impact on work place safety
and health and the respective national guidelines for application in the business area.
The declaration concluded that the legal specifications of the European Union
contributed to the elaboration of the culture of prevention and the rationalization and
simplification of relevant national laws. At the same time the report pointed out deficiencies
preventing the realization of the full potential of the regulations and mentioned instances of
violations of employee rights as well.
Additional reports pertaining to the implementation of the framework and individual
directives for the 2007-2012 period were following the procedures specified by the 2007/30
EC directive aiming at the simplification and rationalization of application-related reports.
THE LEGAL REGULATION OF WORK SAFETY IN HUNGARY

Workers have a right to safe and healthy work conditions. In Hungary the government is
responsible for the arrangement and organization of work safety policies and programs jointly with
industry specific and other relevant authorities. While the government is cooperating with the
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representative employee and employer organizations, its main responsibility is the legal regulation of
work safety.
The system of work safety related legal regulations:
a) Basic Law of Hungary (2011. April 25.)
b) Work Safety Act (Act XCIII/1993.
c) Government decrees
d) Industry-specific ministry decrees
e) Employer rules, instructions
Organizations responsible for the implementation of governmental tasks
Paragraph 17 or the Work Safety Act specifies the responsible organizations:
(1) Ministers and occupational safety authorities responsible for employment policy and
mining issues can act in their own jurisdiction regarding the national level control of work
safety.
(2) According to another legal specification the Mining Inspectorate regulates work safety as
well.
(3) Governmental organizations authorized to regulate work safety cooperate with public
administration organizations and worker unions.
(4) Industry specific work safety measures are taken by the ministers of the respective fields.
The next section introduces the main components of the XCIII/1993 Work Safety Act.
THE OBJECTIVE AND MAIN COMPONENTS OF THE WORK

SAFETY ACT
As directed by the Constitution the Parliament integrated the basic rules of work safety into
the XCIII/1993 Work Safety Act. The objective of the Act is the provision of the personal,
material, and organizational conditions for health and safety at the work-place. The Act aimed at
the creation of a humanistic work environment, the protection of workers’ health, the retention of
the work capability of employees, the prevention of work- related accidents and occupational
illnesses along with stipulating the responsibility, rights and obligations of the government,
employers and employees.
In sum the main objective of the Work Safety Act is the regulation of working conditions
via the stipulation of the personal, material, and organizational criteria for a healthy and safe work
environment.
Next a brief overview will be provided on the content of each chapter of the Act:
Chapter One: General Specifications
This chapter includes the basic principles, the jurisdiction of the law and the work safety
related regulations.
The Act confirms that employees working in Hungary have a right to safe and healthy
work conditions.
The basic principles of the Act:
i. The requirements, direction and control institutions of work health and safety are
determined by the government.
ii. Employers are required to provide healthy and safe work places. (Employees have
obligations in this regard as well)
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iii. The Act provides for work health and safety related reconciliation.
Chapter one includes the jurisdiction of the given law. Accordingly, the law regulates all
types of labour performed in an organized context regardless of the ownership or organizational
form. The respective measures have to be applied within the full scope of employment including
visitors at the given workplace.
Work safety regulations: The general rules of work safety are stipulated by the present law,
the detailed rules are specified by the Ministry in charge of employment policies, and special
regulations for hazardous activities are regulated by the Ministry responsible for the given field.
Chapter Two: Work safety-related tasks of the government and organizations in charge of
implementation
The chapter focuses on two issues: the work safety-related tasks of the government and the
authorities and organizations responsible for the implementation of governmental instructions.
The government is responsible for:
1. The elaboration of a national program on work safety and safe working environments.
2. Stipulation of the rights and obligations of employers and employees.
3. Cooperation with representation groups for employers and employees.
Authorities and organizations responsible for the implementation of work safety
guidelines and laws:
(1) Ministers and occupational safety authorities responsible for employment policy and
mining issues can act in their own jurisdiction regarding the national level control of work
safety.
(2) According to another legal specification the Mining Inspectorate regulates work safety as
well.
(3) Governmental organizations authorized to regulate work safety cooperate with each other
and with public administration organizations and worker unions.
(4) Industry specific work safety measures are taken by the ministers of the respective fields.
Chapter Three: Criteria for healthy and safe work environments

Chapter III focuses on the following themes: General requirements, Work safety conscious
operation, Material conditions for work performance, Work-process, technology, and material-
related criteria, Personal conditions for healthy and safe working environments, As the next two
chapters will treat this issue in detail we only provide an outline of the respective prioritized
content:
i. requirements for the creation of work places and the related work devices or tools
ii. material conditions of work including the safety of the machines, equipment, and
technologies,
iii. criteria related to work processes, materials, with special attention to sources of
hazards,
iv. individual requirements of work performance, health tests.
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Chapter IV: The obligations and rights of employers and employees in the realization
of healthy and safe work environments.
While in other sections more relevant information will be provided, the
employer’s obligation to take into consideration general requirements for healthy and safe
work performance must be emphasized. Relevant criteria include: elimination of hazards,
dealing with hazards at the site of origin, adhering to the human factor during the
formation of workplaces and the selection of tools and processes with special attention to
limiting monotonous work, the reduction of harmful influences and the limitation of
pyscho social risk factors along with providing employees with appropriate instructions.
Chapter V. Reporting, investigating, and recording work- related accidents and incidents of
occupational illness. (more information will be provided later)
Chapter VI. Reconciliation and employee representation
The chapter is divided into three sections:
1) Negotiations with employees,
2) The work safety representative, work safety committee, and work safety body
formed according to the principle of parity.
3) Work Safety Committee.
Employers are obliged to discuss the conditions of healthy and safe work
performance with the employees or their representatives, and enable them to voice their
opinion before the implementation of employer measures aimed at promoting health and
safety at the work-place. Employees are entitled to choose a work safety representative
in organizations employing at least 50 people. If the given work place has three
representatives, work safety committee can be established. The law specifies the
respective election process, and the rights and obligations of committee members.
Chapter VII: Supervision of work safety by authorities.
Work safety authorities ensure the observation and the respective control of work
safety rules. The jurisdiction of work safety authorities is established by law. The work
safety authority provides information and counselling for employers, employees, work
safety representatives, and employee representation groups on work safety related rights
while promoting the fulfillment of the respective obligations. Furthermore, the work safety
authority performs regular monitoring and control and if needed issues fines and penalties
with relevant information displayed at its web site.
Chapter VIII: Definition of concepts.
This chapter provides a detailed explanation or definition of concepts and terms used by the
law.
CLOSING DECLARATIONS
This section states that the law becomes effective on January 1, 1994. At the same time
authorizes the formation of decrees and the creation of an occupational health service.
The section lists community legal acts as requirement reference including Act 89/391 EEC
directive on the improvement of health and safety protection of workers.
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SUMMARY
The lesson focused on the legal regulation of work safety and health. Emphasis was placed
on the fact that the work environment and work conditions determine the criteria for effective
and successful work performance. Ergonomics promote effective performance and worker
satisfaction. Employees have a right to safety and the preservation of health at the workplace.
The chapter also dealt with the role, concept, and main criteria for work safety. After the
clarification of work safety and occupational health protection students became familiar with the
legal regulation of the given field both in the EU and in Hungary with special emphasis on the
objectives and main components of the 1993 Work Safety Act.
ASSESSMENT
1. Describe the role of work environment and work conditions in work performance,
2. Define the concept of ergonomics,
3. Explain the significance of ergonomics in work performance.
4. Define the concept of work safety.
5. Introduce the main fields of work safety.
6. Describe the criteria and main components of work safety.
7. Define the concept of work-place safety.
8. Define the term of occupational health.
9. Describe the history of work-related health and safety regulations in the EU.
10. Describe the main components of the frame work directive 89/391 EEC on work safety
and health protection.
11. Describe the system of work safety in Hungary.
12. List the governmental authorities responsible for the implementation of work safety
policies.
13. Describe the content of the main chapters of the Work Safety Act.
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Chapter 10
SAFETY
 The Concept and Tasks Related to

Workplace Safety
 Hazard Groups and Their
Components
 Guaranteeing the Physical or Material
Conditions for Work Performance
 Safety Warning Signs at the
Workplace
 Work Safety Instruction
 Safety Technology
 Work-related Accident, On The Job
Accident
Learning Outcomes:
1. Defining the concept of work-place safety
2. Understanding work-place safety related tasks and responsibilities,
3. Identifying various hazard sources,
4. Distinguishing between the various sources of hazards,
5. Understanding the physical conditions of work performance and the

respective correlations between the given factors,
6. Differentiating and understanding safety warnings found at the work place,
7. Understanding the need for work-safety instruction,
8. Identifying security technologies,
9. Distinguishing between work-related accidents and on the job accidents.
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THE CONCEPT AND TASKS RELATED TO
WORK-PLACE SAFETY
As the previous lesson confirmed work safety can be divided into two main areas: safety
at the work place and occupational health.
Safety at the work place: Its aim is the prevention of work-related accidents, while
occupational health strives to eliminate the possibility of occupational illnesses.
The principal objective of work-place safety is the identification of hazard sources, the
potential elimination, or preparation for fighting against such hazards.
- Hazard source refers to such occurrence which during the performance of work presents
harm or danger for the worker or anyone in the worker’s vicinity.
Hazard sources can be grouped as:
 physical danger sources
 hazardous materials
 biological hazard sources,
 stress on the physiological and nervous system (psychological stress)
*The components of the given groups will be discussed in detail in the next section.
HAZARD GROUPS AND THEIR COMPONENTS

A given work place can include one, a few, or even all hazard sources. Below we
provide a few examples of danger sources. In order to help learners the hazards are listed
according to the previously indicated order.
1) Sources of physical danger: the most frequently occurring danger category including:
a) potentially dangerous situations caused by work tools, trans- porting, loading
devices, sports devices, movement of materials and products
b) weakening of structural stability, movement of support structures, lack of physical
support, tilting, change of position, shifting of the centre of gravity, etc.
c) slippers surfaces, pavement, parquet
d) sharp, jagged surfaces, edge and corners of tables, chairs paper, plastic covers
e) temperature of objects (heated dishes and pans, electric heaters, lighting, candle,
burning incense)
f) height, depth
g) air pressure, temperature, and flow
h) noise and oscillation
i) inappropriate lighting
j) electric shock
k) transport-related obstacles
l) dusty air
2) The category of hazardous materials includes:

a) explosive substances and mixtures
b) flammable substances
c) poisonous substances
d) caustic substances (acid or lye)
e) infectious substances
f) other harmful materials (radioactive materials)
3) The most important biological hazards include:
a) micro-organisms and their metabolic products (bacteria, fungi
96
b) macro-organisms (plants, animals)
4) Physiological and psychological hazard sources
a) monotonous work
b) high workload
c) various stress-inducing situations
d) The recognition of such hazard sources promotes conscious action aimed at
avoiding accidents or reducing the related negative consequences.
GUARANTEEING THE PHYSICAL OR MATERIAL

CONDITIONS FOR WORK PERFORMANCE
Unfortunately despite all precautions functional problems or personal negligence can
trigger accidents. Below we introduce a few key terms, tasks and obligations related to the above
category. Work safety requirements have to be fulfilled by the staff involved in the establishment
of a work place. The establishment process requires the cooperation of all relevant employees..
During the elaboration and instalment of tools and the arrangement of the work process
ergonomic needs have to be taken into consideration.
The respective hazard posing facility, work place, work tool or technology warrant the
applicability of work safety and work-place safety guidelines to be confirmed by a work safety
audit. During the audit the management or staff responsible for designing and implementing the
given work aspect testifies to the availability of appropriate documentation related to
measurement, and testing, in addition to statements of acceptance, certificates, permits, and
respective instructions.
In order to maintain safety and security hazardous technologies and work devices have to
be checked and reviewed at regular intervals by appropriately qualified work-place safety experts
and employers have to assess the respective risks as well.
Work places have to observe the respective ergonomic specifications and standards
determining appropriate ventilation conditions and heating options Warning signs have to be
placed on translucent doors and windows. These and other warning signs will be discussed later.
The flooring and passage ways must meet the requirements of the given work, but it is
crucial that they be no-slippery and even.
SAFETY WARNING SIGNS AT THE WORKPLACE

As the previous chapter has shown Hungary has developed a comprehensive legal
regulation system of work-related health and safety. In addition to the Work Safety Act industry
specific Ministry decrees also govern this field. One of the significant industry specific decrees is
the 2/1998. (I. 16.) decree issued by the Minister of Labour on the safety and health protection
warnings to be applied at the work place.
The decree defines the following safety signs and respective features:
The main features of safety and health protection warnings (safety warning as described
in the decree): determined geometric form, colour, sound, light or pictorial image (pictogram) or
information provided via human movement, which subject to fulfillment of other occupational
conditions enables workers and those in the vicinity of them to recognize hazard sources or risks
in time.
 Safety sign: a fixed sign created by the combination of geometric forms, color or
pictograms.
 Prohibition sign: A safety sign prohibiting dangerous behaviour.
 Warning sign: a safety sign calling attention to a given hazard.
 Prescriptive sign: a safety sign prescribing a certain behaviour.
97
 First aid or escape sign: a safety sign indicating the place of the emergency exit, the
location of first aid place, or the placement of certain rescue device.
 Fire protection safety sign: a safety sign indicating the location of a fire protection
device or a fire extinguisher.
 Informational sign: a mark providing information different from those listed above,
i.e. directional signs.
 Sign: a board equipped with a properly recognizable safety sign in appropriate
lighting conditions.
 Complementary sign: a board used in combination with the sign to provide
additional information.
 Safety colour: a colour with a special security-related meaning.
 Pictogram: a schematic image visible on a sign or lit up board.
 Light sign: a safety sign carrying device either made from reflective materials, or lit
up both in the front and the back.
 Audio mark: an acoustic sign with a previously determined meaning which is
produced without natural or artificial voice by a relevant device.
Employers are required to install and maintain warning signs and change them or
ascertain their presence in case of the modification of working conditions or decay impacting the
signs.
The colour, sound, and shape of safety signs draw attention to present risks and the set
form, shape, and colour determine their application.
The form of the safety signs can be: circle, triangle, square and rectangle.
The colour of the signs can be red, yellow, blue, and green.
The chart below illustrates the shape and colour of safety warning signs.
The form and colour of safety signs.
The four colors Meaning, objective Example
Prohibition Fire Stop sign, Emergency switch sign, Rescue,

Red Fire extinguisher, Hazardous conduct,
warning
Emergency sign,
Yellow or
Warning sign Watch out, warning, control
amber colour
Emergency First aid Doors, exits, passage ways, devices,

Green
sign No danger.
Prescriptive Specified behaviour or activity.

Blue
sign Protective equipment is needed.
Safety signs, colour, meaning,, examples
98
Prohibition sign: Diagonal line in a red circle. Its meaning: SOMETHING IS NOT
PERMITTED OR PROHIBITED.! Form: circle, a black pictogram on a white background at
the edge and athwart, (from left to right in a 45 degree angle). The red colour makes up at least
35% of the sign, the colour of the pictogram is black
An example:
Photography is prohibited, NO cameras!
Warning sign: The sign shaped as a yellow triangle indicates a health hazard. Form: triangle, A
black pictogram with a yellow background and a black edge. The yellow colour is at least 50% of
the given sign.
Prescriptive sign: A pictogram placed in a blue circle warns of the use of a specific work
safety equipment or device. Form: circle: White pictogram on a blue background, at least 50%
of the sign is blue.
99
First aid or emergency signs: Form: White pictogram on a green background. At least 50% of
the sign is green.
Pictograms can also include warning texts in other languages, i.e. English
WORK SAFETY INSTRUCTION

Employers have to provide employees with instruction related to the meaning of
safety signs and the related duties and responsibilities.
Work safety instruction has to be implemented in the following circumstances:
a. at the start of work
b. when the work place or work area changes
c. at the time of changing work conditions
d. when the tools are changed or new devices are introduced
e. when new technologies are introduced
Work safety instruction should provide employees with the theoretical and practical
background of work performance in a healthy and safe environment and familiarize them with
the respective rules, instruction, and information.
Work safety instruction has to be held in regular work time and should be repeated
if needed. The program has to be designed, its delivery has to be registered and the respective
document should be signed by the instructor. The employer has to ascertain the level of the
employee’s acquisition of work safety knowledge, possibly in the form of work safety
examination.
Employers have to make sure that only those employees could work at a hazardous
workplace, who were given work safety instruction. Until the completion of work safety
programs an employee cannot work on its own independently.
Employees at hazardous work circumstances should be provided with protective

devices and equipment. Special work safety related activities including preliminary work safety
tests and designing rescue plans can only be performed with appropriately qualified work safety
experts.
SAFETY TECHNOLOGY
While employees have to be provided work safety instruction before starting work,
security technologies must be discussed as well.
Security technology is a set level of safety providing an adequate and acceptable level of
protection in a given social and technological context.
The objective of security technology is the reduction of danger and the prevention of
accidents.
Accidents can be prevented with the following measures and devices:
1. arrangements: reduced work hours, breaks.
2. organizational devices: work safety instruction, information provision.
3. technological steps: handling information.
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4. technological devices: safe and task oriented formation of machinery and
work environment, protective devices
WORK-RELATED ACCIDENT, ON THE JOB ACCIDENT

Despite all precautions on the part of employers and employees accidents can
happen. Paragraph 87 of the Work Safety Act makes a distinction between work-related
accident and on the job accident:
Accident: a single external impact occurring independently from the will of the injured
person in a sudden manner causing injury, poisoning, physiological or psychological damage,
or death.
Work-related accident: an accident taking place during performing work or related to work
performance regardless of the place, time, or the extent of employee contribution to its
occurrence.
According to Paragraph 87 of the Work Safety Act accidents can be regarded as
work-related if they occur during transportation, material purchase, movement of material, self-
cleaning, organized catering, occupational safety and health, and other services provided by the
employer.
Accidents, however, occurring during transportation to work and back home again
cannot be regarded as work-related unless the accident involved a vehicle owned or leased by
the employer.
Paragraph 87 also offers a definition of mining accidents:

 Mining accidents include all work-related accidents occurring during the
performance of activities regulated by the Mining Inspectorate regardless of the identity of
the given employer..
As far as occupational accidents are concerned it is important to note that only an
appropriately hired employee can claim compensation for them, thus assignee, sub-contractors
or unreported employees are ineligible for any compensation.
 On the job accident is an incident taking place during or related to the performance
of work in one’s occupation. This category also includes accidents taking place during
travel to and back from the place of employment (on the road accident), or during working
for public interest and using social welfare services.
The on-the-job accident is a concept belonging to the category of social services. In
addition to accidents suffered at the work place, accidents taking place to and back from work
and the so-called occupational diseases belong to this category.
However, if the given accident takes place due to the injured person being under the
influence of alcohol or is a result of work performed illegally or of intentional harm, the victim
is not eligible for compensation. In all on-the-job accidents the relevant social service
authorities determine whether the injured party is eligible for compensation. Having examined
the above terms, we can make the following conclusion:
Not all accidents taking place during working are qualified as on-the- job
accidents and not all on-the-job accidents are qualified as work related accidents.
Each employer is required to have all work accidents fully investigated, the results
have to be recorded and registered, and decision has to be made concerning the recognition of
the given incident as a work accident. In case of the employer refusing to acknowledge the
accident as work-related the injured party, or in case of death, the next to kin has to be notified
along with being informed on the potential legal remedies (Employment Supervision Authority).
Unfortunately in addition to work accidents occupational illnesses can occur. This topic will
be discussed in the next chapter. Summary, questions
101
SUMMARY
The lesson focused on the basic concepts of work-place safety, and the related tasks.
Students became familiar with the grouping of hazards taking place during work, the physical
conditions of work, the main features of safety warning signs demonstrated by examples. The
chapter also dealt with the importance of work safety instruction, the concepts of security
measures, work accidents and on-the-job accidents.
ASSESSMENT
1. Define the concept of work-place safety.
2. List tasks related to work-place safety.
3. Which are the groups of work hazards.
4. Provide at least three examples from each hazard group.
5. Introduce the physical conditions of work performance
6. Define the concept of safety and security marking.
7. Describe the main features of safety signs (form, shape, colour) found at the work
place.
8. Provide examples of safety signs and explain their appearance.
9. What requirements does an employer have concerning work safety instruction.
10. Define the concept of security technology.
11. What steps and measures can be taken to prevent accidents?
12. What is the definition of work-related accident according to the Work Safety Act?
13. What is the definition of on-the-job accident by the Occupational Safety Act?
14. Explain the difference between work-related accident and on-the- job accident.
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Chapter 11
HEALTH PROTECTION
 Strategic Framework Pertaining to Occupational

(workplace) Health and Safety for the 2014-2020
Period
Programs
 The Objective and Task of Work Hygiene
Programs
 Occupational Health Service
 Testing for Work Area Suitability
 Occupational Safety and Employment Directorate
and Inspectorate
 Occupational Health Protection and Safety
Management System (MEBIR)
 Protection of Safety and Health at the Work
Place: Good Examples and Best Practices
Learning Outcomes:
1. understanding the health protection and occupational safety strategies for the 2014-2020 period,
2. understanding and interpreting the concept of occupational health,
3. understanding the basic objectives of work hygiene and occupational health and related
synonymous concepts,
4. understanding the need and distinguishing the forms of work area suitability tests,
5. understanding the functioning of the Occupational Health Service,
6. examining the main activities of the Occupational Safety and Employment Directorate and
Inspectorate,
7. familiarity with the main elements of the Occupational Health and Safety Management System,
8. application and synthesized knowledge of the basic concepts of safety and health protection.
103
STRATEGIC FRAMEWORK PERTAINING TO OCCUPATIONAL
(WORK- PLACE) HEALTH AND SAFETY FOR THE 2014-2020
PERIOD
As it was pointed out in Lesson 10, the European Union introduced basic rules for the
protection of the health and safety of employees. Directive 89/391/EEC stipulates employer
obligations for the limitations of the number of work place accidents and occupational illnesses.
Instead of describing the present regulations on occupational health, hygiene, and safety
we take look at the future, namely the 2014- 2020 EU strategy on occupational health and
safety.
The document titled COM (2014) 332 final was issued by the European Commission,
the European Parliament, the European Economic and Social Commission and the
Commission of Regions described the respective strategies on occupational safety and health
protection. The strategy identifies principal priorities in the field of occupational safety for the
given period.
The basic strategic objectives:
1. Further consolidation of national strategies: As of 2014 emphasis should be placed
on reviewing national occupational safety and health protection strategies in light of
the new European strategy in addition to establishing a data base for the respective
national strategies.
2. Reducing occupational safety and health requirements especially for small and
medium size enterprises: Meeting relevant occupational health and safety
requirements is a challenge for small and medium size enterprises throughout the
European Union. Certain measures, including financial and technological assistance
for the instalment of informatics devices, the compilation of guidelines and the
identification of best practices can be helpful in this regard.
3. Increased enforcement of occupational safety and health related rules in the given
member states: This goal can be realized with appropriately trained worker protection
inspectors specializing in occupational health and safety. Inspectors should perform
risk-based analyses pertaining to new risks and technologies.
4. Simplification of existing rules: Consultations and discussions with stakeholders
could lead to the evaluation of occupational safety and health related rules and
regulations eventually resulting in simplifications and/or the reduction of the
respective administrative workload.
5. The aging of the workforce, managing newly emerging risks along with work-
related and occupational illnesses: Radically changing technologies, new products
and chemicals call for the gathering and evaluation of reliable scientific data in order
to give effective answers to the new risks and challenges including the needs of
various age groups, disabled workers, and risks pertaining to female employees.
Tailoring occupational safety and health measures to older employees promotes the
physical and psychological health of aged workers. The main task is the
implementation of steps facilitating rehabilitation and re-integration via the European
Parliament pilot project aimed at older employees and the 2016-17 Healthy workplace
campaign. Additional tasks include the identification and dissemination of best
practices in occupational mental health protection.
6. Improvement of statistical data collection effort and the elaboration of an
information data base: The collection of reliable, current, and comparable statistical
104
data regarding work-related accidents and occupational illnesses along with the
analysis of expenditures and benefits related to occupational safety and health
protection is indispensable to fact-based and policy specific decision making.
7. Improved coordination of EU and national efforts related to occupational safety
and health, membership in international organizations: The promotion and global
application of more rigorous work safety norms via a multilateral cooperation with
relevant international organizations and bilateral collaboration with third countries is a
crucial priority for the EU.
THE OBJECTIVE AND TASKS OF OCCUPATIONAL HEALTH

PROGRAMS
Technological development requires the application of comprehensive scholarly results,
and the field of work safety is no exception. The establishment of modern, healthy work
conditions promotes the quality of life and work along with furthering the goal of accident
prevention.
The previously mentioned and discussed Work Safety Act defines work safety as the system
and observation of work-related safety and health requirements, legal, organizational, and
institutional specifications and the respective implementation process. Work-related health
entails work hygiene and occupational health.
The fields of work-related health programs
Work hygiene is a discipline focusing on the prediction, recognition, evaluation,

and treating of health hazards emerging in the work environment aiming at the
protection of the health and well-being of employees, and the community at large.
Source: 27/1995. (VII. 25.) NM decree on occupational health services
Occupational health is a health-related service or activity performed by the
occupational health service (Source: 27/1995. (VII. 25.) NM decree on occupational
health services)
The main objective of work-related health programs entailing both occupational
health and work hygiene is the protection of workers from harmful effects occurring during
work performance.
The realization of this goal is based on close cooperation between work hygiene and
occupational health experts.
105
Work-health related tasks: the creation of the conditions for healthy and safe work
during the work environment design process.
The most important tasks:
a. managing work place related influences (aeration, lighting, noise),
b. improving work performance,
c. improving the condition of work tools,
d. prevention and elimination of occupational harm,
e. regular health checks for employees
THE OBJECTIVE AND TASK OF WORK HYGIENE PROGRAMS

Utilization of the achievements of medical science is important both for employers and
employees. Prevention of harmful effects and the establishment of healthier work conditions
are especially important at the work place.
In order to promote health at the work place and the studying and elimination of
occupational harm work hygiene experts have to work closely with occupational health
professionals.
The tasks of work hygiene:
a. identifying threshold values for harmful effects,
b. elaboration of methods for the identification of bacteria in the work place,
c. the assessment of expected health risks during the work facility design stage,
d. quality and quantity based descriptions of changes effecting the work environment,
e. development of prevention strategies,
f. functioning as an official authority promoting the realization of the goals of work
hygiene.
THE OBJECTIVE AND TASKS OF OCCUPATIONAL HEALTH

During work performance the worker’s physical body more or less adapts to a work
environment entailing potentially dangerous tasks or exposure to harmful effects.
Pursuant to Paragraph 58 section 1 of the XCIII/1993 Occupational Safety Act decree
27/1995. (VII. 25.) NM on occupational health regulates the legal background of this field.
The decree specifies that only occupational health services can fulfill occupational health
related tasks. Occupational health is primarily a preventive service with three activity levels.
Primary prevention: It is mainly the responsibility of the employer, but the occupational
health service can provide expert consultation. The effectiveness of the given service can be controlled
via risk estimate, environmental and biological monitoring.
Secondary prevention: This exclusively occupational health- related task is perform via
medical screening facilitating the recognition of occupational illnesses.
Tertiary prevention: Entails care and rehabilitation indispensable to assuring employ-ability.
Occupational health can interfere in the respective processes and develop recommendations
based upon work hygiene data. Occupational health assesses and monitors stress load caused by the
106
given work environment and the respective work process. Other responsibilities include the
assessment and ascertaining of the health-related capabilities of the given worker.
Occupational health taking work environment, the given task, and the employee’s
psychological state into consideration focuses on work physiological concerns, work conditions, work
structures and cultures, and the individual’s work capability.
The tasks of occupational health:
1) analyzing of the influence of the workplace on humans,
2) recognition of occupational illnesses
3) defining the aggregate workload of the given worker,
4) determining the conditions of employ-ability,
5) scheduling medical eligibility tests,
6) special attention to young workers and those with altered work capacities.
OCCUPATIONAL HEALTH SERVICE

Employers regulated by the Work Safety Act should provide occupational health services
performed by the Occupational Health Service.
The Service can function as an occupational health centre or as a provider of special
occupational health related services.
Work activities have to be allocated to occupational health classes (categories):
Class A: mining, foundry work, or dealing with radioactive or unknown substances;
Class B: construction, food production, leather preparation, producing rubber and plastic
products;
Class C: industrial jobs, physical aspects of service provision, research, and computer-related
activities;
Class D: research arrangement, cultural, education, administrative
work
Employers are required to report the staff size and the respective activities to the relevant
local branch of the National Public Health and Surgeon General Service.If the employer does not
provide occupational health service then a service fee corresponding to the given occupational
health class has to be paid to the respective provider.
Only individuals meeting relevant ministry issued requirements can perform medical
tasks within the context of occupational health services.
The tasks and responsibilities of the Occupational Health Service

a. the exploration, identification and continuous control of work-related demands (physical,
intellectual, psychological) and causes of occupational illness (physical, chemical,
biological, psycho-social, ergonomics, accident-related factors),
b. making recommendations for keeping the harmful factors at an acceptable level,
c. adapting the work requirements to the physical, intellectual, and mental health of
employees,
d. work-related health checks of employees.
107
Basic occupational health services:
a. Testing for work area suitability.
b. Reporting and investigating occupational illnesses and inten- sive exposure to harmful agents
c. Preparing a written documentation of the assessment of work conditions and of the harmful
impact of work performance.
d. Consultation regarding individual protective devices.
e. Assuring the chemical security of work places according the special regulations.
f. Information provision concerning work conditions impacting health and security.
g. Administering protective inoculations required by a given work area according to special
regulations
h. Preventive care for workers suffering from chronic illnesses.
i. Health tests for drivers belonging to suitability class 2 as required by special regulations.
j. Preparation of expert opinions on work-area related, professional, or personal hygiene-based
suitability examinations (in case of students etc.).
k. Professional suitability or eligibility testing of employment seekers including public purpose
workers for training or employment development.
While occupational health services have a number of tasks we provide a brief description of
work area suitability examinations.
TESTING FOR WORK AREA SUITABILITY

Pursuant to the CLIV/1997 Occupational protection and health Act the 33/1998. (VI. 24.) NM
Decree regulates medical testing and providing expert opinions on meeting professional and
personal hygiene requirements for the given work area.
The decree determines the following concepts:
 Suitability testing for a given work area: ascertaining the demand criteria of a
given work place or work area, and the respective ability to meet such
requirements.
 Professional suitability testing: medical examinations performed before starting
and during the acquisition of a given profession or trade, or during the retraining
process in order to ascertain the person’s capability to meet the respective
requirements.
 Personal hygiene suitability testing: medical examinations of workers employed in
areas of high epidemic exposure. The testing has two objectives: to identify
whether the given person is infected, or carries contaminants threatening public
health.
Before starting work at a given company all prospective employees must undergo a
thorough medical examination process related to the given work area. Such testing is required
in the following cases as well:
– change of work area or work place
– performing work abroad for more than a two week term
– persons employed in the production, serving, and sale of foods and beverages along with
work areas of high epidemic exposure have to undergo chest X-ray as well. During the
examination the employer provided booklet titled Declaration of health conditions and
examination data must be filled out as well.
While the frequency of medical testing is determined by the supplements of the 33/1998.
(VI. 24.) NM decree, if several intervals are applicable to an employee, the given examination
must take place with the shortest possible schedule.
108
OCCUPATIONAL SAFETY AND EMPLOYMENT DIRECTORATE
AND INSPECTORATE
Government Decree 323/2011. (XII. 28.) appoints the Occupational Protection and
Employment Directorate of the National Employment Administration for regulating and
controlling the field of work safety as of 2012 January 1. The authority in charge of work
hygiene and occupational safety is the Occupational Safety and Employment Directorate.
The National Employment Administration as a central authority is under the supervision
of the Minister of Labour, while the Occupational Safety and Employment Directorate is a
separate organizational unit of the National Employment Administration. The occupational
safety and employment inspectorates of the occupational safety and employment centers
functioning within the framework of the governmental offices in Budapest and at county seats
fulfil employment regulation authority at first level.
OCCUPATIONAL HEALTH PROTECTION AND SAFETY

MANAGEMENT SYSTEM (MEBIR)
Organizations strive to incorporate their various functional processes into standardized
systems.
The main objective of the Occupational Health Protection and Safety Management
System meeting the MSZ 28001:2008 standard is the full disclosure, evaluation and
systematic reduction of work safety and health related threats, since the protection of
employee life and health is a crucial component of enterprise development both on the mid
and long term.
PROTECTION OF SAFETY AND HEALTH AT THE WORK PLACE:

GOOD EXAMPLES AND BEST PRACTICES
Businesses and enterprises often show good examples and best practices that can be followed in
observing work safety and health protection guidelines.
SUMMARY
The lesson provided an introduction to basic concepts related to occupational health protection
including the 2014-2020 EU strategy on occupational health protection and safety along with
discussing the objectives of occupational health and work hygiene programs, the functions of
occupational health organizations, the need for work-area eligibility, and work-hygiene related
testing. Students were familiarized with the structure and function of the Occupational Safety and
Employment Directorate and Inspectorate and the importance of the Occupational Health Protection
and Safety Management System. Also as an individual assignment students could learn about a
specific example of best practice on the field of occupational safety and health.
109
ASSESSMENT
1. Describe the basic objectives of the EU Commission-issued COM (2014) 332
final document.
2. Define the concept of work-related health.
3. Describe the objectives and tasks of work-related health programs.
4. Describe the concept of work hygiene.
5. Describe the objectives and tasks of work hygiene programs.
6. Define the concept of occupational health.
7. Describe the objective and tasks of occupational health.
8. What are the tasks of the Occupational Health Service.
9. Define the concepts of work area suitability testing, professional suitability
(eligibility) testing, and work hygiene suitability testing.
10. Describe the work of the Occupational Safety and Employment Directorate
and Inspectorate.
11. Describe the main components of the Occupational Health Protection and
Management System.
12. Describe work safety and health protection related best practices at a
Hungarian firm.
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MODULES ON

Management Functions and Human

MANAGEMENT FUNCTIONS AND HUMAN RESOURCE

WHAT IS HUMAN RESOURCE MANAGEMENT

THE CENTRAL FUNCTIONS OF HUMAN RESOURCE

THE EXTERNAL ENVIRONMENT OF HRM

3.Integration of the personnel management function into the strategic management of

ORGANIZING THE HRM DEPARTMENT

Worker Worker Worker

THE HRM FUNCTION IN A SMALL ORGANIZATION

SUPERVISOR SUPERVISOR SUPERVISOR

THE HRM FUNCTION IN A GROWING ORAGANIZATIONS

Manager of Training and Development Manager of Employee and Labor Relations

Manager of Human Resources Planning and Staffing Editor of Employee Communications

Manager of Compensation and Benefits Manager and Loss Prevention

A FULL-BLOWN HRM DEPARTMENT IN A LARGE

WHAT IS A JOB DESIGN

JOB JOB JOB

THE JOB AND ITS COMPONENT

micro-motion charts to analyze body movement

METHODS TECHNEQUES AN USES

ALTERNATIVE WORK SCHEDULES

Prof. Servando Belmonte Monday to Friday 7:00 to 12:00; 1:00 to 4:00

Prof. Tan Van Tu Monday to Friday 8:00 to 12:00; 5:00 to 9:00

Dr, Julita Gomez Tuesday to Saturday 8:00 to 12:00; 1:00 to 5:00

Prof. Mike Go Wednesday to Sunday 8:00 to 12:00; 1:00 to 5:00

Dr. Elvira Narciso Tuesday to Saturday 8:00 to 12:00; 5:00 to 9:00

Prof. Cyril Sorongon Wednesday to Sunday 8:00 to 12:00; 5:00 to 9:00

A SAMPLE FLEX-TIME WORK SCHEDULE GRADUATE SCHOOL

The adjusted schedule shown in Exhibit 2 can accommodate a wider classification of

Uses of Job Analysis

JOB ANALYSIS: A FUNDAMENTAL

TYPES OF JOB DATA

SOURCE OF JOB DATA

SOURCES OF JOB DATA

METHODS OF GATHERING INFORMATION

PRODUCTS OF JOB ANALYSIS

An example of a job specifications is shown below.

Job title: Collector Job No. 021

EXAMPLE OF A JOB SPECIFICATION

 What is Human Resource Planning?

WHAT IS HUMAN RESOURCE PLANNING

THE REASONS FOR HRP

II. FORECAST DEMAND FOR HUMAN RESOURCE

III. FORECAST SUPPLY FOR HUMAN RESOURCE

IV. PLAN AND CONDUCT NEEDED PROGRAMS

V. OBTAIN FEEDBACK ON THE PLANNING PROCESS

THE HUMAN RESOURCE PLANNING (HRP) MODEL

Technological Educational Geographical

EXTERNAL FACTORS AFFECTING HRP

Corporate What kind of business

finance HR What is our future

production Strategic What are our HR

CORPORATE STRATEGY AND STRATEGIC HRP

METHODS OF FORECASTING THE DEMAND FOR HUMAN

Year A = 100 employees

THE DEMAND FOR HUMAN RESOURCE FOR YEAR F

FORECASTING THE SUPPLY OF HUMAN RESOURCE

PLANNING HUMAN RESOURCE PROGRAMS

Work Description Activity Degree Major Year

1. Sales Personal Selling Supervising MBA Business Adm. 2000

2. Promotion Conceptualizing Supervising BSC Marketing 1992

3. Forecasting Interviews and Survey Analyzing

WORK EXPERIENCE SPECIAL COURSES