PERSONNEL

MANAGEMENT: ITS
FUNCTION AND ROLES IN
THE ORGANIZATION
 Definition of Personnel Function
Function of management concerned with
promoting and enhancing the development of
work effectiveness and advancement of the
human resources in the organization.
 Management Functions
• The basic functions in general management of the
enterprise which are planning, organizing, directing,
coordinating, and controlling.
• The operative functions which cover the daily activities
of the business such as procurement, placement, and
utilization of employees, motivating, and compensating
of employees
 Planning
A proposed mode of action based on a full understanding
of the factors involved, and directed at specific objectives
Planning involves the ability to analyze projected
programs and policies in the light of conditions related to
objectives.
 Organizing
Arrangement and relationship of jobs and positions, which
are necessary to carry out the personnel program as
determined by top management.
Directing
Guidance of all efforts toward a stated objective. It
provides a means of putting plans into action through
effective supervision.
 Coordinating
A method of getting people in an organization to work
together harmoniously to achieve a common goal with
minimum expenditures of effort and materials.
Controlling
Keeping all efforts within the channels prescribed by
management as shown in the personnel plan for the entire
organization.
 Operative Functions
The operative functions of personnel management cover
details of the responsibilities and tasks necessary to carry
out policies and programs related to personnel. They
usually cover the following areas:
• Manpower planning
• Recruitment, induction and personnel movements, promotion, transfer,
demotion, separation
• Appraisal • Personnel information statistics
• Training and development
• Rewards and recognition
• Employee relation
 Other Fields of Study in Personnel Management
• Psychology
• Economics
• Law
• Sociology
• Research and Statistics
JOB ANALYSIS
 What’s and Why’s of Job Analysis
The process of studying positions, of describing the duties and
responsibilities that go with jobs, and of grouping similar
positions into job categories is called job analysis. It is why the
work is done, how it is done , why the work is done, the link of
the work to other jobs, the skills required, the supervision and
guidance needed, and the environment under which is done.
 Job Analysis Program
Job analysis program is usually undertaken when the
organization is starting operations, a new job is created,
and job is changed significantly by the nature of
operations, technology, introduction, restricting or other
similar events. The program would cover three elements.
• Job Description
• Job Profile
• Job Specification
 Job Description
A job description describes the job in terms of its level of duties
and tasks, sometimes to the extent of describing the processes or
procedures needed to do the job. A job description describes the
duties performed , the skills, training, and experience required,
the responsibilities involved , the conditions under which job to
the other jobs in the organization. It would cover the following:
• Job function or purpose
• Major duties • Machine and equipment used.
• Performance standard • Working conditions including possible
• Percentage of time devoted to each duty hazards
• Major responsibilities(money, men etc..) • Number of persons working on the same
job
• Reporting relationships
 The job would answer the following questions:
• What the job requires
• How the worker performs job
• Why the work is performed
• Supervision involved in the job
• Work environment
 Job Profile
A job profile describe the job terms of key result areas and
functions and roles and competencies. The job profile has less
emphasis on specific duties and process.

Job Specification
A job specification indicates the qualifications in terms of skills,
experience, training, and other special qualifications as well as
the traits required of the worker to satisfactorily perform the job.
 Job Data Gathering
• Questionnaires
• Interview
• Observation
• Draft and Review
Job Evaluation
The process of determining the work of one job in relation to that
of the other jobs in a company so that a fair and equitable wage
and salary system can be established.
 Job Evaluation Methods- Type and selection
Non- quantitative methods
• The ranking method
• The position classification or grade description method

Quantitative methods
• Point System
• The hay method
HR Planning, Recruitment, Selection, And
Placement
 Human Resource Planning

Is a dynamic management process of ensuring that all

times a company or its units has in its employ the right
number of people with the right skills, assigned to the
right jobs where they can contribute most effectively to the
productivity and profitability of the company. Human
resource planning which include the following:
 Human Resource Planning
• Systematic forecasting of manpower
• Performance management
• Career management
• Management development
 Five Steps in Human Resource Planning
1. Determining the workload
2. Study the jobs in the company
3. Forecasting human resource needs
4. Inventory of manpower
5. Improvement plan
 Importance of a well organized selection program

The main objective of good employee selection is to

acquire people who possess the ability and competence to
accomplish successfully the duties and responsibilities of
the job to be filled and the potential to grow with the
company.
 Reasons For Proper Selection of Employees
There are several reasons why employees must be well
selected. Some of these are:
• Company objectives are better achieved by workers who have been properly
selected
• An incompetent worker is a liability to the company
• Personnel requirements vary from the job to job
• People have varying degrees of intelligence, aptitudes, and abilities
• Labor laws protect employees, making it difficult to fire incompetent and
problem employees.
• Individual have different interests, goals, and objectives in life
• Careless hiring is costly and can cause problems to the company, especially to
the supervisors and managers who have to deal with the workers.
 Installing a Program For Recruitment, Selection, And Hiring
1. Recognition of the need by management
2. Selling the program
3. Communicating the program
4. Responsibility for recruitment, selection, and managers
5. Forms and records
6. Labor code of the Philippines
7. Selection of employees from within outside the company
8. Job analysis, Job description, and specification
9. Employment tests interviews
10. Checking of references, police records, and clearance
11. Prior registration with the SSS number, Medicare, and BIR for assignment of
taxpayer identification number(TIN)
 Installing a Program For Recruitment, Selection, And Hiring
12. Physical Examinations
13. Introducing, inducting, and orienting the new employee to his job and the
company.
14. Probationary period of new employees
15. Compensation and fringe benefits of the new employee
16. Performance follow-up
17. Periodic check-up of the program
18. Validation studies
 Procedures in Recruitment, selection, and hiring
1. Study the different jobs in the company; write job description and specifications
2. Requisition for new employees
3. Recruit qualified applicants
4. Sight-screen applicants
5. Have application form filled out
6. Select those will undergo testing
APPRAISAL
 The What’s and Why’s of performance Appraisal

Performance appraisal is the method of evaluating and providing

feedback on where and how the employee meets work
expectation over a given period of time.

Methods of Performance Appraisal

• Behaviorally Anchored Rating Scale (BARS)
• Management by Objectives (MBO)
 Behaviorally Anchored Rating Scale (BARS)
Is an improvement over the usual rating scale. The important performance
dimensions of a job are listed:
• Communication skill
• Handling guest complaints and promoting guest relations;
• Developing marketing strategies and monitoring sales program;
• Motivating and modifying employee behavior;
• Implementing policy, making decisions, and delegating responsibilities;
• Monitoring operations and maintaining product quality;
• Handling personnel responsibilities
 Management By Objectives (MBO)
MBO starts from top level executives and managers who discuss and set goal and
specific objectives for the organization in terms of key result areas such as
production output, quality, market, profit, and other areas on a short term basis, say
one year or less. It provides for:
• What is expected
• Obtaining teamwork
• Programming work
• Recognizing progress
• Focusing the use of scarce resources on high priority items;
• Providing feedback for self direction by the managers
• Identifying the four to six key result areas or major areas of responsibility or key
areas of accountability for the position.
 Elements of promotion form
• Impact criteria
• Potential Rating
• Minimum performance rating
 Performance Appraisal Process
Other elements for successful performance appraisal program is
observance of a process that supports appropriate review at each
level of the process, consistency and objectiveness in the use of
standards and criteria, open communication between rater and
ratee, and respect for the confidentiality of the information
exchanged during process.
 Monitoring Performance Appraisal Ratings
• Developing Distribution ratings by department, level, pay
grade, and type of job or job levels;
• Identifying departments, units, or raters with unusually high
or low performance ratings;
• Identifying variations in rating by performance dimensions;
• Simple tracking of performance ratings to identify high
achievers and those in need of personnel actions.
 REWARDS
AND
RECOGNITION
 Formulating A Company Compensation Policy
A company must formulate a sound company compensation policy on
which basis the elements, design, relative importance, cost, nature, and
frequency of administration of its cash, near cash compensation, and
benefits would be strategically positioned, developed, and reviewed.

Dimension of a compensation philosophy

• Pay for performance
• Market competitiveness
 Total Compensation
A+B+D=E
Where:
A. Guaranteed Cash
Regular salary
Fixed and guaranteed allowance
Fixed/guaranteed bonuses
(13th month pay)
B. Variable or discretionary compensation
C. Total Cash (A+B)
D. Benefits
E. Total Remuneration (C+D)
 Basic Salary
The pay an employee receives from an employer is the primary reason
for his being on the job. The entire compensation package may be seen in
the composition show in the illustration:
 Variable Compensation

The amount of variable compensation depends on result of pre-

established targets. Some variable compensation scheme are highly
structured, with definite provisions for eligibility requirements.
 Benefits
Social Security (R.A No. 1161)
The law provides for the compulsory coverage of all employees in
private firms up to age of 60, with a maximum monthly salary coverage
that gets reviewed on a regular basis.

Health Insurance/ Health Plan

It is considered a basic component of any benefits package today.
Medical insurance coverage or coverage with a health maintenance
service or actual payout by the company are the usual range of choices
on the method of delivering the service.
 Life Insurance
The usual terms of life insurance coverage benefit are:
• Coverage
• Premium
• Beneficiary
Retirement
In this country, providing security and protection for aging employee is
supported by law and is joint under taking between SSS the employer
and in some cases, the employee.
Retirement Law (R.A No. 7641)
Mandatory retirement pay of 22.5 days of monthly basic salary for every
year of service at age of 60.
 Elements of a retirement plan
• Type of plan
• Tax qualification
• Eligibility requirements
• Benefits under other conditions
• Vesting schedule
• Funding and sharing
• Investment management
• Tax exemption
• Cost effectiveness
• Ease of administrative burden
• Protection
 Other Benefits
Allowance
Companies could provide to selected employees various forms of
allowances to compensate for extraordinary circumstances based on
certain conditions.
• Overtime Meal/ Transportation Allowance
 Recognition
Companies use recognition programs and contests to
focus effort on tactical objectives and celebrate the
success of teams and individuals.
TRAINING
 What is Training?
Training of employees in business and industry may be defined as a
carefully planned and handled effort of management through competent
instructors, to impart “know-how” and to develop or improve certain
phases of an individual skills, attitude, discipline, behavior, or
knowledge, to make him either more effective on his present job or better
qualified for another job.
It is a program designed by management to achieved the following
objectives:
• Productivity
• Effectiveness on the present job
• Qualification for a better job
• Morale Booster
 Company Policy on Training
For the guidance of all managers and supervisors , it is necessary for a
company to formulate its policy and procedures on the training and
development of its supervisors and employees.

Government Policy on Training

As enunciated in the labor code, encourage private industry to train its
employee. For instance, the law code provides for the establishment of
industry boards and grants incentives, such as tax deduction to firms that
undertake training programs for their workers.
 Basic Requirements in Training
• It must be recognized that training is the company’s concern
• The company must recognize that training is not matter of employees
choice.
• The Firm must recognize training as a line responsibility
• The company must recognize that training must be geared to the needs
of the individual as measured by the requirements of his present and
probable future job.
 Types of Training
• Orientation or induction of new employee
• On-the-job training (OJT)
• Employee training in technical or non technical areas
• Job Rotation
• Apprenticeship training
• Dual- tech training
• Understudy and special projects or assignment
• Guidance and counseling
• Supervisory training
• Travel or observation tours
• Conferences
 Types of Training
• Management or leadership development for potential managers
• Study grants
• Study abroad
• Training within the industry
• Vestibule training
• Learners in industry
• Training through correspondence
• Internet/intranet training
LABOR-MANAGEMENT
RELATIONS
 Definition and Importance of Labor-Management Relations

The term labor relations refers in a broad sense to the

relationship between the employees on one hand and
management on the other. This also covers the relationships
between management and labor unions in unionized companies.
 Labor Dispute

A labor dispute is a difficult caused by impaired relations

between employees and management as a result of
dissatisfaction, irritation, complaints, grievance; and
misunderstanding between employee and his or her
employer.
 The 1986 Constitution
• Section 9 . The state shall promote a just and dynamic
social order that will ensure the prosperity and
independence of the nation and free the people form
poverty through policies that provides adequate social
services, promote full employment, a rising standard of
living, and an improved quality of life for all.
 The 1986 Constitution
• Section 10. The state shall promote social justice in all
phases of national development

• Section 20. The state recognizes the indispensable role

of the private enterprise, provides incentives to needed
investments.
 Department of Labor and Employment:
Its Functions
• Promotion of employment and manpower development
and utilization
• Protection of workers welfare
• Promotion and maintenance of industrial peace based
on social justice
 Labor Relations
• Declaration of basic policy
• Construction in favor of labor
• Rules and Regulations
• Applicability
 Rights of Labor
• Right to protect by state
• Right to full employment
• Right to equal work opportunities regardless of sex,
race, and creed;
• Right to self organization
• Right to collective bargaining and negotiation
• Right security of tenure
• Right to just and humane conditions of work
• Right to peaceful, concerted activities including strikes
 Rights of Labor
• Right to participate in policy and decision making
process affecting their rights and benefits
• Right to compulsory arbitration as may be provided by
law.
• Right to certain hours of work and weekly rest period
• Right to overtime and premium pay
• Right to living wage
• Right to protection of working women and minors
 Rights of Labor
• Right to emergency, medical, and dental treatment
• Right to protection under safety and health standards
• Right to employees compensation in case of injury or
illness in line of duty
• Right to social security and medical care
 Strikes and Lockout
The labor code defines strike to cover not only concerted
work stoppage, but also slowdowns, mass leaves, sit
downs, as well as attempts to damage, destroy, or sabotage
plant equipment and facilities similar activities.
The term lockout comprises shut downs or the suspension
or cessation of business operation in the course or a result
of a deadlock in collective bargaining negotiations or labor
disputes.
 Kinds of Strikes
• Unfair labor practice strike
• Economic strike
• Recognition strike
• Jurisdictional strike
• Sit down strike
• Slow down
• Sympathy strike
• Wild cat Strike
 Unfair Labor Practices
Violations of the civil rights of both labor and
management and criminal offenses against the state. The
Law subjects these practices to prosecutions and
punishment
 Health and Safety
The problem of health and safety have gradually increased
, brought about advancing technology and by the
innovation in modern tools and machines.
The ability of business organization to provide its
employee with sound policies and programs on health and
safety increases its productivity and profitability.
 Health and Safety
• First aid treatment
• Policies on health and safety
• Medicines and facilities
• Occupational health program
• The occupational safety and health center
EMPLOYEE RELATIONS IN A
NON-UNIONIZED
ENVIRONMENT
 Union Issues
• Higher wages and better benefits
• Job security and seniority in promotions and other
personnel movements
• Fair treatment by supervisors and/or managers
• Improved working conditions
• Voice and participation in decision making processes of
the company
• Setting up of a grievance machinery that will address
employee complaints with justice and fairness
 Union Issues
• Vigilant watch on the fair enforcement of employee
discipline
• Democratic election of officer
• Employment of concerted actions including strike as a
last resort to compel employer to given in to union
demands
Difference between union avoidance and anti union policy
Many companies (whether big, medium size or small)
adopt an active written or unwritten policy on union
avoidance. They believe that they can give above-average
pay and benefits and dispense fair treatment to their
employees without the intervention of third parties.
Here are some examples of anti-union statements or
postures:
Difference between union avoidance and anti union policy
• There will be no increases because the union is around
• Don’t sign membership card of Union A. It would be
better for everyone if you had union B as your
representative
• We will close this plant or business if a union is
organized
• This company will never sign contract with any union
Difference between union avoidance and anti union policy
• Seeking union representative is useless because it will
not result in any improvement of employment
conditions here,
• Or asking an employee: it is true that you signed the
petition for union organization?
 Union Avoidance-How?
Some of these following:
• Management Commitment
• Effective Communication
• Supervisory Training
• Effective Complaints machinery
• A code of Conduct Administered Consistently
• Training and Development
• Company Early Warning System
HUMAN RESOURCE
INFORMATION
SYSTEM
The Following cite the common uses for human resources
records and reports:
• For basic Transaction
• For internal and external reporting
• For contracts or formal documents or those to be
needed for legal purpose
• For reference
• For Continuing file on the person
 Computerized HRIS
A number of fields or functions in human resources have
been made more effectively by computerization. The
ability to gather and analyze information at less time
allows the provision of more time for value add services
on transaction.

The information that can be maintained and therefore

captured on each are:
 Computerized HRIS
The information that can be maintained and therefore
captured on each are:
• Personnel Management Module
• Benefits Module
• Recruitment Module
• Training Module
• Performance Management and Administration Module
• Medical Information/Wellness Module
 Computerized HRIS
The information that can be maintained and therefore
captured on each are:
• Time and Attendance Module
• Safety Management Module
 Policies and Procedures for HRIS
• Who have responsibilities for maintaining, updating,
and securing personnel information
• Minimum standards for Personnel records maintenance
in terms of type of information and manner of updating.
• Type of personnel records and reports that should be
maintained.
 Policies and Procedures for HRIS
• Special instructions for filing and accessing
information.
• Security and confidentiality policy of the company and
how these exercised for key transactions or type of
information
• Records retention policy of the company
• Records disposal policy of the company
 Setting Up Personnel Records
Some records and forms used and maintained by the
personnel department are listed in the following manner:
• Employee requisition form
• Application for employment form
• Interview records
• Reference record
• Employment tests
• Physical and medical examination records
 Setting Up Personnel Records
• Change of Status
• Social Security records
• Attendance and time-in records and related documents
• Employee history card
• Acknowledgements
• Labor relations record
• Progressive discipline write ups
• Job analysis record
 Setting Up Personnel Records
• Education, Occupation, and skills card
• Wage and Salary records
• Merit training records
• Accident records
• Training records
• Termination of employment
• Sorting system through computers
• Labor relations records
• Job Analysis records
 Setting Up Personnel Records
• Wage and salary records
• Merit rating records
• Accidents records
• Labor turned over records
• Pending Application file
• Training record
• Time record
• Human resources Monthly Report
• Human resources department budget and actual
expenditures.
 Termination of Employment
• Exit Interview Form
• Clearance form
• Termination Agreement
• Finalization and closing of benefits
• Notice to third parties
• Letter of resignation
• Turnover Documents
• Release And quit claim