COURSE TITLE: HUMAN RESOURCE MANAGEMENT

COURSE CODE: BAC104

PRE-REQUISITE/CO-REQUISITE

COURSE OBJECTIVES:
At the end of this course, the students should be able to:
1. Understand the principles and concept of Human Resource Management
2. Comprehend the importance that Human Resource Management is a key to productivity and quality in
a competitive society.
3. Understand the current issues and approaches in Human Resource Management
4. Able to analyze employee’s problem in the workplace.

MODULE I
THE DEVELOPMENT OF HUMAN RESOURCES

Overview:
This module will cover the topics on the growth and development of Human Resource Management in the
Philippines. The discussion will also include the role of Human Resource Manager in the new millennium
organization and its contribution to the success of the organization.
At the end of this module, you should be able to:
1. Understand the importance and the contribution of Human Resource Management in the
development of the organization.
2. Explain and differentiate the different skills of the Human Resource Manager and his functions.
3. Explain the career development of a Human Resource Manager.

Growth and Development pf Personnel/Human Resource Management in the Philippines

History of Human Resource Management in the Philippines
A. Spanish Occupation (1521)
B. American Occupation (1898-1941)
C. Japanese Occupation (1941-1946)
D. Post war (1946-1971)
E. Martial Law (1971-1985)
F. People Management Association of the Philippines (1990 to present)
Personnel or Human Resource management is a relatively new field in the Philippines. It was only in the early
1950s that is gradually gained acceptance and recognition in private business and industry. For it to gain
acceptance and recognition, three conditions need `to exist:

1. Top management must be convinced that personnel management is needed in its

business operations;
2. Qualified personnel administrators must be available;
3. Personnel administrators must demonstrate their capacity to contribute to the
company’s objective and goals.
Top management is too often unaware of what personnel work is and what it can do to promote effective
management. As a result, personnel management is usually given only minor role in business affairs. The lacks
of qualified personnel executives complicate the problem. Even when management sees that a good
personnel department is desirable, not enough qualified personnel management practitioners are available to
run it.
With the supply – demand gap for personnel administrators, many “personnel specialists” without
adequate preparation have entered the field, messing up some personnel programs because of amateurism or
plain lack of understanding of what personnel work is. The Personnel Management Association of the
Philippines (PMAP) is a nationwide organization of all the personnel managers and human practitioners in the
country which was established to uphold the profession to the fullest.

THE CHALLENGES OF HUMAN RESOURCES

1. The Challenge of the Global Community
Organization are increasingly findings out that to survive they must compete with the
organization not only in the place of operation but the global business community. Companies need to
compete and defend not only their local markets and customers; they must broaden their scope to
encompass global markets.
2. The Stockholders Challenges
The key to success in today’s business environment is to meet the investor’s needs and those of
the others stakeholders. These stakeholders are the customers, employees and the community where
the enterprise operates. The companies are challenged to reach financial objectives through meeting
customers’ and employees’ needs. Satisfied customers are assets that will sustain company growth and
financial stability.
The Human Resources Management greatly influences cost reductions, quality management,
financial system that are ingredients to profitability and growth. Companies shall look into diverse
work forces to capitalize on forward-looking ventures. Successful companies practice good human
resources management programs that motivate and reward employees, that provide high quality
products and services. These companies believe that their greatest assets are their work force.
3. The Challenge for Productivity
The global technology is increasing the challenge to greater productivity. Human
Resources became more “smarter workers” with the aid of computers-aided machines,
internets, and experts’ systems. They produce highly quality products that are demanded by
the world market. The introduction of these new technologies needs the reconfiguration of the
employees work design, training program and reward system.
 The links of high productivity are:
a. Human resources and capabilities
b. New technology and opportunities
c. Efficient work structure and company policies allow employees and technology to interact
The Changing Image of the Human Resources Functions

With the advancement in technology and the higher qualifications for employment,
the position of the Human Resources Department in the organization got the boast of higher
recognition and importance. Organization now recognized the important role played by
human resources in the company’s profit index.

Organization are now aware that attention should be given to their important assets.
That is the labor force and together with this is the advancement of the human resources
department role. Companies now look at Human Resources practices as a means to profitability, quality and
other business goal through enhancing and supporting business operations.
The growing specialization in the field of education related to improving the knowledge of the HR
practitioner has contributed to higher respect for the position. Continuing education and Seminars are
contributory factors that increase knowledge in the more efficient and effective management of the HR
departments.

The Role of HR in the New Millennium Organizations

The new role that the HR department performs includes out-placements, labor law
compliance, record keeping, testing, compensation and some aspect of benefits
administration. The HR department has to collaborate with other company executives on employment
interviewing, performance management, employees discipline and efforts to improve quality and productivity.

The Roles Includes the Following:

1. Recruitment and Employment
2. Interviewing, testing, recruiting and temporary employment
3. Labor coordination

4. Training and Development

• Orientation of new and temporary employees
• Performance management training
• Productivity enhancement

5. Wage and salary management

• Job evaluation
• Wage and salary survey
• Executive compensation
 6. Benefits Administration
• Vacation and Sick leaves administration
• Insurance
• Stock plans
• Pension plan
• Retirement plan assistance programs

7. Employee Service and Recreations

• Bus service
• Canteens
• Athletics
• Housing and Relocation

8. Community Relations
• Publication
• Community project and relation

9. Record management
• Employment record
• Information system
• Performance record

10. Health and Safety

• Training
• Safety inspection
• Dental and Medical Services
• Drug testing

11. Strategic management

• Collaborative planning
• Out-sourcing manpower research
• Organizational Planning

The Skills Needed by Today’s HR Professionals

A higher degree of professionalism is the demand of the new HR practitioners.
This includes the following:
1. A higher degree of knowledge on management practices and processes. He would need this to
collaborate with other line managers.
2. The HR practitioner is a service provider to other line managers. He must possess a high degree of
human and public relations.

3. A great knowledge of human psychology and social relations. It is a great asset to effective
coordination.

4. He is a consultant on labor relations. A working knowledge of labor laws and regulations is of great
advantage.

5. As a management practitioner. A thorough knowledge of management and its relations to effective

organization is a must for all HR managers to plan out strategic approaches to problems and their solutions.

6. A community relations officer. The HR manager develops greater linkage with government and
others stakeholder. He has to coordinate with the schools and other agencies for their manpower pooling
and other services.

Career Path to Human Resource Management

1. Entrance Level – a new college graduate may start as personnel assistant n a medium
size organization. The following skills are necessary:
a. Assisting in interviewing applicants
b. Giving tests and scoring test results in personality inventory and other skills test;
c. Assisting in employee orientation and training program;
d. Records keeping

2. Supervisory Level – The Promotion to a higher level depends on the ability and
capability of the Personnel Assistant to acquire the skills necessary in the HR functions. The
traits and skills are:
a. Skills in writing job description, job analysis, and job evaluations.
b. Knowledge of employee benefit programs related to vacation and sick leaves,
pensions and other mutual benefits.
c. He must have acquired the skills in interviewing applicants and counselling
employees.
d. Job evaluation and wage administration skills and relating pay to the differences
in job requirements.
e. Skills in determining training needs and develop training modules and
conducting the same.
f. Skills in basic research related to manpower planning
3. The Managerial Level – At this level the HR practitioner has acquired the above
skills. However, at this point, the concentration of the HR is the effective management of the
different areas of personnel functions. The added personnel activities include the following:

a. Leadership and Conceptual Ideas Visioning - the HR Manager is part of the strategic
management team that participates in organization strategies planning for improved products
and services as they relate to employees’ productivity and its relation to technology
enhancement programs.

b. Analytical of the facts as basis for Decision Making- the HR Manager is saddled with
the analysis of the employee’s the development program and finding alternative
solutions to improve employee’s performance level as it relates to global
competitiveness.

c. Compliance Administration and Control – the changing social and work force
environment needs compliance with the social and legal norms in the work place.

d. Interpersonal Team Work - teambuilding and organizational interventions are

needed to develop greater teamwork. Teamwork adds value to more efficient
company.

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MODULE II
STRATEGIC HUMAN RESOURCE PLANNING

Overview:
This module will cover topics on the Human Resource Planning. The discussion will also include the Human
Resource Information System as a crucial to sound human resource -decision making.
At the end of this module, you should be able to:
1. Discuss the role of the human resource in strategic planning.
2. Explain the two important components in human resource planning.
3. Determine the different kinds of human resource planning and the important elements in Strategic
Human Resource Planning.
4. Discuss the different kinds of planning techniques in human resource management.
What is Strategic Planning?
Strategic Planning is the determination of the overall organizational purpose and goals
and how they are to be achieved. Human resource is the integral component of a strategic
plan, which greatly affects productivity and organization performance. After the strategic
plans have been formulated, human resource strategic planning is to be undertaken. Along
these lines, strategies are reduced to specific quantitative and qualitative human resource
plans. The HRD shall determine the total manpower component to execute the planned
strategic activities.
Planning Techniques in HR Management
1. Skills Inventory
This approach involves the listing of all the skills possessed by the workforce and they are made
to relate to the requirements of the organization. This technique requires detailed information of the
experience and training of every individual in the organization.

2. Ratio Analysis
This is a technique wherein the personnel who are promotable to the higher positions are
identified together with their backup or understudy. There should be a ratio that will ensure that
promotions will not create any void. To accomplish this, recruitment must support the backup
requirements. At the same time, training must be done to develop the backup ratio.

3. Cascade Approach
Under this approach the setting of objectives flows from the top to bottom in the organization
so that everyone gets a chance to make his contribution. This approach results in the formulation of a
plan wherein the objectives of the rank and file get included in the blueprint for action. The plan is
then a participatory planning output.

4. Replacement Approach
Under this approach, HRM is done to have a body of manpower in the organization that is
ready to take over existing jobs on a one-to-one basis within the organization. This approach calls for
year-round acceptance of applications for possible replacements.

5. Commitment Planning Approach

This technique involves the supervisors and personnel in every component of the organization
on the identification of manpower needs in terms, skills, replacements, policy, working conditions and
promotion so that human resource in the organization may be up to the challenge of current and
future operations. The units thus become conscious of their needs and aware of the ways the human
resources requirements can be met.

6. Successor Planning Approach

 The approach known a successor planning takes into consideration the different components of
the old plan and increase them. Proportionately by the desired expansion rate stated by management
as to the total manpower needs. The cost of doing the activities is likewise increased. Any new concern
set up at a starting scale and viewed in proportion with other comparable aspects of the existing plan.
This approach also enables the personnel staff to get by without having to ask much from
management, which in turn does not expect much from the HR staff in terms of radical change.

The Important Elements in Strategic Human Resource Planning

1. Organizational Goals – The human resources planning process should be tied up with the
organizational strategic goals. It must rest on solid foundation of information about sales forecasts, market
trends, technological advances, and major change in processes and productivity. Considerable effort
should be devoted to securing reliable data on business trends and needs in terms of quantity and quality
of a labor as the basic input for human resource planning.

2. Human Resource Forecast – The second element in the planning process is the forecasting of
human resources needs based on business strategies, production plan and the various indicators of change in
technology and the organizations’ operating methods. Forecasting is usually accomplished by utilizing
historical data and reliable ratios. This includes indirect and direct labor and adjusting the same with
productivity trends. The result of this forecast is the spread sheet of employees in term of number, mix, cost,
new skills and job categories and numbers and levels of managers needed to accomplish the organizations’
strategic goals. Experience has shown that producing this forecast is the most challenging part in the planning
process because it requires creative and highly participative approaches in dealing with business and technical
uncertainties several years in the future

3. Employee Information – The third element in the planning process is maintaining accurate
information concerning the composition, assignments and capabilities of the current workforce. This
information includes job classification, age, gender, status, organizational level, rate of pay and functions.
Employee information may also include the employee’s resume, with such data as skills, education, training,
career interest and other important personal data that could be use in the movement or transfer of the
employee.

4. Human Resource Availability Projections – The fourth element of the human resource planning
process is estimating the number of current employees and those that could be available in the future. By
projecting the past data about the size, organizations and composition of the workforce and about turnover,
aging, and hiring, availability at a specific future data can be estimated. The result could paint the picture of
the organization’s current human resources and how they can be expected to evolve over times in terms of
turnover, retirement, obsolescence, promotions and other irrelevant characteristics.

5. Analyzing and Evaluating Human Resource Gaps – The fifth element in the human resources
planning process is comparing what is needed with what is available in terms of numbers, mix, skills and
technologies. The comparison permits the human resource manager to determine gaps and evaluate where
the most serious mismatches likely appear.
Human Resource Role in Providing Competitive Advantage
-Human resource practices are developed to implement strategies that will make the organization more
effective and will answer to the company’s competitive advantage. HR can provide strategic competitive
advantage in two ways.

1. Emergent strategies – consist of strategies that evolve from the grassroots of the organization and
can be thought of as what the organizations actually do. Most emergent strategies are identified with
the people in lower level of the management hierarchy. It is usually the lower level rank and file
employees who provide ideas for new markets, new products and new strategies being at the front
line of operations. HRM should make sure that the information is systematically arranged and should
contain the data needed.
2. Intended Strategies – are the result of the rational decision-making by the top management as
they develop strategic plans. It is a pattern of plans that integrates an organization’s major goals,
policies and action sequence in a cohesive whole. The new focus on strategic HRM role is directed
primarily on intended strategies. The task is to formulate business related issues relevant to strategy
formulation and then development of HR systems that can aid in the implementation of the strategic
plan.

Human Resource Information System (HRIS)

HRIS is any organized approach to obtaining relevant and timely information on which to base human
resource decisions. An effective HRIS is crucial to sound human resource decision-making. It is designed to
provide information that is – SMART

1. Systematic - Information must be systematically arranged and contain the needed data.
2. Management-Oriented – The data and information are essential tools for effective manpower
planning, retention, development, and separation of employees.
3. Applicable – The data and information stored in file must be applicable in making human resource
decision. Irrelevant data must be discarded. Information must be updated from time to time to be
relevant to the current manpower needs requirements. A manager must be able to rely on the
accuracy of the information provided.
4. Result-Oriented – The result from the information and the decision derived thereat must be both
acceptable to management and the employees’ concern. The end result must contribute to greater
company productivity and employees’ satisfaction.
5. Time Bound – Relevant human resource information is necessary for effective decision-making. The
need for timely decision is crucial to the effective management of human resource.
The absence of these characteristics reduces the effectiveness of HRIS and complicates the
decision-making process. Conversely, a system processing characteristic enhances the ease and
accuracy of the decision-making process. An effective HRIS also produces and forecasts several
important reports related to business operations.
1. Routine Reports – These are human resource data summarized on scheduled bases, like current
manpower status, regular employees, contractual employees, supervisors and managerial employees
on a regular payroll.
 2. Exception Reports – This information may contain confidential data that are available only for
managerial decision-making and needs immediate attention. This may pertain to violations of existing
company rules and procedures, policies and management programs.
3. On Demand Reports – Management may demand some reports for analysis. This may pertain to
productivity index, individual performance records, and other information that may lead to downsizing,
and other personnel actions.
4. Manpower Forecast – Applies to predictive models based on specific situations. This may cover
increase or decrease in manpower requirements due to seasonal demand or increase customer orders.
Human resource managers must be able to provide timely information and ready manpower to answer
the need of the company operations.
Software Application for HRM
The advent of the different HRM software application has made the human resource managers’
function for decision-making just a click on the computer programs. The major human resource function are:
1. Staffing Applications – Common applications used in the area of staffing include the following:

a. Application recruiting and tracking

b. DOLE reporting requirements
c. Developing a master employee data base
d. Staffing applications for decision-making
2. Human Resource Planning Application – This involves company specific applications in determining
future employee turnover, growth rate and promotion patterns and other personnel movements. This
includes the following applications:

a. Work-Force Profile Analysis – It refers to work-force labor supply and demand analysis or work-force
profile analysis review.
b. Work-Force Dynamic Analysis – Number of new hires, transfer and promotions, number still needed in
the future and those employees who are available to fill up job opening in the future.
c. Human Resource Planning for Decision-Making – This application pertains to information about
employees who are about to retire, job classification of employees for promotions and those departments
that lack basic skills for the job.
d. Performance Management Applications – Employee performance ratings, disciplinary actions, work-
rule violations and the daily productivity index could now be stored in the computer database as bases for
management decisions.
e. Training and Development Applications – These are used primarily to track down the need for
employees training programs, courses to attend, certified skills and educational qualifications. Career
applications assess the employees’ career interests, work values and career goals.
f. Compensation and Benefits Applications – These includes payroll, job evaluation, salary planning and
analysis of executive compensation planning and management benefits.