WEEK 2: THE ENVIRONMENT OF HUMAN RESOURCE MANAGEMENT

THE ENVIRONMENT OF HUMAN RESOURCE MANAGEMENT

A. THE IMPORTANCE OF HUMAN RESOURCE FROM THE PERSPECTIVE OF A CHIEF EXECUTIVE MENTOR’S PERSPECTIVE

(1) MERALCO – MANUEL PANGILINAN

Our people are the true source of power. They have been the key in MERALCO’s unprecedented growth, and our
partners in nation-building. They embody our corporate values which reflect the best of the past and what it takes to
succeed in the future.

(2) METROBANK - Mission/Vision Statement

We realize that success depends on the quality of our people, the efficiency of our systems, and the strength of our
organization. Hence, we shall continuously invest in our human resources to ensure a service force characterized by
the highest standards of dignity, probity, and professionalism.

(3) AYALA PROPERTY MANAGEMENT CORPORATION

We recognize that our employees are the principal assets of the company. As such, we focus on their training needs,
inculcate the values of professionalism, integrity and teamwork, provide career opportunities, and reward
outstanding performance.

(4) NISSAN MOTOR PHILIPPINES

We value our people. Employees are at the heart of the company. Having chosen personnel with commitment to the
highest standards, through teamwork, we aim to create corporate understanding and loyalty to one another.

B. WHAT IS HUMAN RESOURCE MANAGEMENT (HRM)?

HRM is the systematic planning, development, and control of a network of interrelated processes affecting and
involving all members of the organization.

HRM is the process of acquiring, training, appraising, and compensating employees, and attending to their labor
relations, health, safety and fairness concerns.

HRM is designing management systems to ensure that human talent is used effectively and efficiently to accomplish
organizational goals.

**WALMART - called their HR Department as “THE PEOPLE DIVISION” – where they can accomplish their 7 overriding
strategies : price, operations, culture, key item/products, expenses, talent and service by aligning their HR practices
with their business strategies.

C. MAJOR FUNCTIONS OF HRM

TALENT ACQUISITION

Workforce planning and employment (recruitment and selection) Workforce focuses on assessing the organization’s
human resource needs. Employment includes recruitment and selection of individuals to fill vacant position.
Recruitment is designed to attract qualified applicants to the organization. Selection is the process of choosing the
best qualified applicants to fill open position in the organization.
PERFORMANCE MANAGEMENT

Process of ensuring that employees’ performance contributes to realizing the organization’s goals and objectives.
The managers monitor the employees and ensure that appropriate tools are made available by managers to the
employees so that the latter can meet expected levels of performance.

EMPLOYEE TRAINING AND MANAGEMENT DEVELOPMENT

Employee training refers to the process of providing employees with specific knowledge and skills they need to
perform in their jobs. Management development represents activities designed to improve employee’s capabilities
beyond those required by their current jobs.

COMPENSATION MANAGEMENT

Management of financial returns that employees receive in exchange for services that they provide to an organization.

BENEFITS MANAGEMENT

Process by which employee benefits, generally compensation outside of the basic pay, are designed and given to
employees in accordance with legal as well as organizational requirements.

EMPLOYEE RELATIONS MANAGEMENT

The process of ensuring effective management of all interactions and relations between the organization and its
employees. The HR acts as employee champion – deals with the day to day problems, needs and concerns of
employees, promoting their well-being and building their capabilities and commitment.

LABOR MANAGEMENT RELATIONS

Refers to the functions of HR that pertains to the management of employee’s terms and conditions of employment.
Interpretation of the CBA between labor and management. Concerns on employee grievances and discipline issues.

THEORETICAL BASES

SCIENTIFIC MANAGEMENT

– Friedrich Taylor – Father of Scientific Management

To determine the “one best way” for a job to be done. Under this theory, Taylor introduced the “Different Rate System”
where he encourage the employers to pay more the productive workers at a higher rate using a “scientifically correct”
rate that would benefit both the company and the workers

HAWTHORNE STUDIES

- Elton Mayo – Western Electric Company- Working Conditions – Production – Socialization/Teamwork

According to Mayo, informal work groups like associations and friendships had the strongest positive influence on
productivity
CAPITALISM

– Profit – without due regard to the rights of female workers, children and elderly

The principal source of productive capacity, whether in an economy or organization, rests in the capacity of people.
Therefore, strategies need to be developed to capitalize on the potential of this resource by developing learning
systems that will cause the capacity of human capital to grow into the future.

INDUSTRIAL REVOLUTION

– machines – lesser human intervention

D. STRATEGIC VIEW OF HRM

STRATEGIC HRM (SHRM)

A pattern of planned human resource deployments and activities intended to enable an organization to achieve its
goals.

a. Alignment of HRM activities with the organization’s goals, strategies and objectives; b. effective interrelations among
the HRM functions, instead of each function standing alone; c. use of the systems approach in demonstrating the
strategic role of HRM.

SHRM is an attempt to understand and identify possible connections between HR programs and an organization’s
strategies and business performance

Distinctive HR practices help to create unique competencies that differentiate products and services and, in turn, drive
competitiveness.

SPECIFIC CHARACTERISTICS OF THE INTERNAL RESOURCE OF A FIRMTHAT ARE INSTRUMENTAL IN CONTRIBUTING TO

THE ORGANIZATION’S BUSINESS PERFORMANCE:

Employees who possess specific skills which are required to successfully implement an organization’s strategi
intiatives;

Behaviors or attitudes of individuals which constitute an organization’s competitive edge and are not easily coped by
others;

Employees who demonstrate discretionary behaviors which are critical in creating an organization;s competitive
advantage.

CHANGING LANDSCAPES OF HRM

TRANSFORMATIONS AS REFLECTIONS OF THE CHANGING ROLES OF HRM:

FROM PERSONNEL MANAGEMENT TO HUMAN RESOURCE MANAGEMENT – under personnel management or

administration the focus is on ensuring that policies and procedures were implemented efficiently and changes in
personnel status were appropriately processed and documented. TRADITIONAL FUNCTIONS – record –keeping,
processing of new employees, payroll, employee benefits administration. ***from administration to management

While HRM important role was on monitoring or policing the activities of line managers to make certain that they
complied with organizational policies and procedures as well as legal requirements. More concerned with developing
and implementing programs that focus on talent acquisition and management ensuring that qualified HR are acquired,
motivated, ad developed in order to realize the organization’s goals and objectives.

FROM HRM DEPARTMENT TO HUMAN CAPITAL MANAGEMENT DEPARTMENT – HRM is expected to contribute to
realizing the organization’s business strategies.

TRADITIONAL FUNCTIONS ARE ASSIGNED TO OUTSOURCE

HR PRACTIONERS HAVE DIFFERENT ROLES :

Policy enforcer; change facilitator; employee advocate; negotiator; legal adviser; strategic partner; coach; party planner,
counsellor, terminator and mediator

4 KEY ROLES OF HR LEADERS

STRATEGIC PARTNER:

MANAGEMENT OF SHRM – this role makes certain that HR strategies, programs and activities are delivered in order
to support the organization’s strategies

ADMINISTRATIVE EXPERT:

MANAGEMENT OF FIRM’S INFRASTRUCTURE – this role focuses on delivering efficient HR processes

EMPLOYEE CHAMPION:

MANAGEMENT OF EMPLOYEE’S CONTRIBUTION – this to day problems and needs of employees. It ensures
employee’s commitment or engagement in the organization.

CHANGE AGENT:

this role enables the HR practitioners to identify and implement processes for change. The HR practitioners build an
organization’s capacity for change.

6 NEW ROLES OF EFFECTIVE HR PROFESSIONALS IN HIGH PERFORMING ORGANIZATIONS

CREDIBLE ACTIVISTS

Refers to HR Practitioners ‘ need to deliver what they say they will do and to “walk the talk”. HR practitioners will gain
the trust and respect of the organization’s members.

STRATEGIC POSITIONER

Understand the organization’s internal and externAl environments and anticipate what is needed by the organization,
participate in developing, strategic initiatives and align programs with the organization’s strategies.

CAPABILITY BUILDER

Identify the required “organizational capabilities” and take initiative to build them through training and development,
reward’s systems and other HR programs and practices in an integrated way to ensure the organization’s sustainability.
CHANGE CHAMPION

HR practitioners build organizational capability for managing change, and provide tools to enable the organization to
undertake the needed change effectively.

HUMAN RESOURCE INNOVATOR AND INTEGRATOR

HR practitioners identify and plan required changes and integrate HR initiatives and activities to ensure that planned
changes are effectively and efficiently carried out.

TECHNOLOGY PROPONENT

One of the focuses of HR’s ability is to use the “social networking technology” to get potential employees, employees,
retirees, and other significant stakeholders to “stay connected with one another”. The HR’s role is necessary to ensure
that customer’s perspectives are understood.