Managing

Human
Resource
OBJECTIVES:
After studying this topic, you should be able to:
1. Comprehend and define what human
resource management is.
2. Explain the strategic role of human
resource management.
3. Identify HRM three broad activities
and goals.
 WHAT IS
HRM?

- is defined as ‘‘ the management of man’’

or “it is the process of managing people in organizations
in a structured and thorough manner.”

- refers to the design and application of formal systems

in an organization to ensure the effective and efficient
use of human talent to accomplish organizational
goals.
 THE STRATEGIC ROLE OF HUMAN RESOURCE
MANAGEMENT IS TO DRIVE ORGANIZATIONAL
PERFORMANCE
STRATEGIC APPROACH
Recognizes three key elements:

First, all managers are involved in Human

Resource Management
Second, employees are viewed as assets
Third, HRM is a matching process, integrating the
organization’s strategy and goals with the correct
approach to managing human capital.
 BUILDING HUMAN CAPITAL TO DRIVE
PERFORMANCE
HUMAN CAPITAL
- refers to the economic value of the combined
knowledge, experience, skills, and capabilities of
employees.
TAKE A MOMENT…

As a new manager, recognize that

human capital is the
organization’s most valuable
asset. If you are involved in hiring
decisions, look for the best people
you can find, and then treat
them like gold, with
opportunities to learn, grow, and
develop new skills and earn
appropriate compensation and
benefits.
 STRATEGIC HUMAN RESOURCE MANAGEMENT
THREE BROAD ACTIVITIES

Company Strategy

Find the Right People

HRM Planning
Job Analysis
Forecasting
Recruiting
Selecting

Maintain an Effective Workforce

Wages and Salaries
Manage Talent
Benefits Training
Labor Relations
Appraisal
Terminations
HRM Three Broad Goals/Activities

1. Finding the right people

2. Managing talent
3. Maintaining an effective workforce
 HRM THREE BROAD GOALS/ACTIVITIES
1. FINDING THE RIGHT PEOPLE

1.1 HRM Planning

-analyzes an organization’s HR needs and how to best fill
them.
The objective of HR Planning is to ensure that the
organization has the right types of persons at the right
time at the right place.
 Steps in the HR planning process:
 Step 1 — review organizational mission, objectives, and strategies.
 Step 2 — review HR objectives and strategies.
 Step 3 — assess current HR needs.
 Step 4 — forecast HR needs.
 Step 5 — develop and implement HR plans.
ASSESSING ORGANIZATIONAL NEEDS
Basic building blocks of human resource management
include job analysis, job descriptions, and job
specifications.
Job analysis- is a systematic process of gathering and
interpreting information about the essential duties,
tasks, and responsibilities of a job, as well as about the
context within which the job is performed.
Job descriptions- a clear and concise summary of the
specific tasks, duties, and responsibilities: definition
of work
Job specifications -identifies the attributes of persons
who will be most suitable for each job which is defined
by job description.
1.2 Recruitment
 Activities designed to attract a qualified pool of
job applicants to an organization.
Two Types
1. External recruiting- managers look outside the
firm for people who have not worked at the firm
before.
2. Internal Recruiting/ Promote from Within
-positions filled within the firm
REALISTIC JOB PREVIEWS
is a recruiting tool used to communicate both the
good and bad aspects of job. It is used to provide a
prospective employee a realistic view of what the job
entails. To provide candidates a richer description of
the agency and the job (i.e. work environment, duties)
to help them decide if they are a good match.
LEGAL CONSIDERATIONS
Organizations must ensure that their recruiting practices
conform to the law.
Ex.: Labor Code ﴾Philippines) – sets the rules for hiring and
firing of private employees; the conditions of work
including maximum work hours and overtime; employee
benefits such as holiday pay, 13th month pay and
retirement pay.
1.3 Selecting
 Select desired employees from the
pool of recruited applicants.
 Selection Steps
 Completion of a formal application form.
 Interviewing.
 Testing.
 Reference checks.
 Physical examination.
 Final analysis and decision to hire or reject.
 Selection Tools

Application Form/
Background Info.

Interviews Physical
Ability tests

Selection
References
Employment Test

Performance tests
Selection Tools

 Application form – declares individual to be

a job candidate, includes information of the
applicant’s education, previous job
experience, and other background
characteristics and personal résumés may be
included.
 Interview - exchange of information
between job candidate and key members of
the organization , opportunity for job
candidate and organizational members to
learn more about each other.
Selection Tools
 Employment Test- may include intelligence
tests, aptitude and ability tests, and
personality inventories
 Performance Test- measure job performance
-typing speed test is one example
 References- outside people provide candid
information about candidate.
 Physical Test- measure strength and
endurance, good for physically demanding
jobs.
Criteria for selection tools, should be reliable
and valid.
 2. MANAGING TALENT
2.1 Training and Development
-involves an organized attempt to find out
training needs of individuals to meet the
knowledge and skill which is needed not only to
perform current job but also to fulfill the future
needs of the organization.
On-the-Job Training-the most common method,
an experienced employee is asked to take a new
employee “under his or her wing” and show the
newcomer how to perform job duties.
 Corporate Universities
-an in-house training and education facility that
offers broad-based learning opportunities for
employees and frequently for customers,
suppliers, and strategic partners as well
throughout their careers.
Promotion from Within
-helps companies retain and develop valuable
people.
-Promotions provide more challenging
assignments, prescribe new responsibilities, and
help employees grow by expanding and
developing their abilities.
 Mentoring and Coaching
with mentoring , an experienced
employee guides and supports a
newcomer or less experienced
employee, while coaching a method
of directing, instructing, and training
a person with the goal to develop
specific management skills.
 2.2 PERFORMANCE APPRAISAL
- comprises the steps of observing and assessing
employee performance, recording the assessment,
and providing feedback to the employee. During
performance appraisal, skillful managers give
feedback and praise concerning the acceptable
elements of the employee’s performance. They also
describe performance areas that need improvement.
WHO APPRAISES PERFORMANCE?

Supervisors

Peers Customers &

Clients
Sources of
performance
appraisals

Self Subordinates
3. MAINTAINING AN EFFECTIVE WORKFORCE
Compensation refers to: (1) all monetary
payments and (2) all goods or commodities
used in lieu of money to reward employees.
3.1 Wage and Salary Systems
Base Wage
 Job Based Pay-paid for the job that is done
 Competency Based Pay-pay is linked to job-
relevant skills, knowledge, and experience
Compensation Equity
Whether the organization uses job based pay or
skill- based pay, good managers strive to maintain
a sense of fairness and equity within the pay
structure and thereby fortify employee morale.
Pay-for-Performance
also called incentive pay, means tying at least
part of compensation to employee effort and
performance, whether it be through merit-based
pay, bonuses, team incentives, or various gain-
sharing or profit-sharing plans.
3.2 Benefits
-such as health insurance, vacations, and
such things as onsite daycare or fitness
centers

3.3 Termination
-retirement, others will depart voluntarily
for other jobs, and still others will be
forced out through mergers and
cutbacks or for poor performance
The first goal of HRM is to attract an effective workforce
through human resource planning, recruiting, and
employee selection. The second is to develop an
effective workforce. Newcomers are introduced to the
organization and to their jobs through orientation and
training programs. Moreover, employees are evaluated
through performance appraisal programs. The third
goal is to maintain an effective workforce through
wage and salary systems, benefits packages, and
termination procedures. In many organizations,
information technology is being used to more
effectively meet all three of these important HR goals.
REMEMBER, TO WIN IN
THE MARKETPLACE YOU
MUST FIRST WIN IN THE
WORKPLACE.
THANK YOU 