WRI COLLEGE-Metro Naga, Inc.
HUMAN RESOURCE MANAGEMENT
August 2020 Module Week 1
Page 1
SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
MODULE 1: THE ROLE OF HUMAN RESOURCES
1.1 What is Human Resources?
Learning Objectives
The learners shall be able to;
a. Explain the role of HRM in organizations.
b. Define human resource management
c. Know the function of human resource management
d. Discuss the importance of human resource
e. Define and discuss some of the major HRM activities
EXPECTED OUTPUT
The learners demonstrate an understanding of the;
Role of human resource management
Function of human resource management
Importance of human resource
Page 2
SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
1.2 What is Human Resources?
Every organization, large or small, uses a variety of capital to make the business work. Capital includes
cash, valuables, or goods used to generate income for a business. For example, a retail store uses registers and
inventory, while a consulting firm may have proprietary software or buildings.
What Is HRM?
Human resource management (HRM) is the process of employing people, training them, compensating them,
developing policies relating to them, and developing strategies to retain them. As a field, HRM has undergone many
changes over the last twenty years, giving it an even more important role in today’s organizations. In the past, HRM meant
processing payroll, sending birthday gifts to employees, arranging company outings, and making sure forms were filled
out correctly—in other words, more of an administrative role rather than a strategic role crucial to the success of the
organization. Jack Welch, former CEO of General Electric and management guru, sums up the new role of HRM: “Get out
of the parties and birthdays and enrollment forms.… Remember, HR is important in good times, HR is defined in hard
times”
For example, most managers deal with compensation, motivation, and retention of employees—making
these aspects not only part of HRM but also part of management. As a result, this book is equally important to
someone who wants to be an HR manager and to someone who will manage a business.
Page 3
SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
1.3 What is Human Resources?
Learning Objectives
1. Explain the role of HRM in organizations.
2. Define and discuss some of the major HRM activities
Every organization, large or small, uses a variety of capital to make the business work. Capital includes cash,
valuables, or goods used to generate income for a business. For example, a retail store uses registers and inventory,
while a consulting firm may have proprietary software or buildings.
What Is HRM?
Human resource management (HRM) is the process of employing people, training them, compensating them,
developing policies relating to them, and developing strategies to retain them. As a field, HRM has undergone many
changes over the last twenty years, giving it an even more important role in today’s organizations. In the past, HRM
meant processing payroll, sending birthday gifts to employees, arranging company outings, and making sure forms were
filled out correctly—in other words, more of an administrative role rather than a strategic role crucial to the success of
the organization. Jack Welch, former CEO of General Electric and management guru, sums up the new role of HRM:
“Get out of the parties and birthdays and enrollment forms.… Remember, HR is important in good times, HR is defined
in hard times”
Human Resource Recall
Have you ever had to work with a human resource department at your job? What was the interaction
like? What was the department’s role in that specific organization?
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SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
The Role of HRM
Keep in mind that many functions of HRM are also tasks other department managers perform, which is what makes this
information important, despite the career path taken. Most experts agree on seven main roles that HRM plays in
organizations. These are described in the following sections.
Staffing
You need people to perform tasks and get work done in the organization. Even with the most sophisticated machines,
humans are still needed. Because of this, one of the major tasks in HRM is staffing. Staffing involves the entire hiring
process from posting a job to negotiating a salary package. Within the staffing function, there are four main steps:
1. Development of a staffing plan. This plan allows HRM to see how many people they should hire based on revenue
expectations.
2. Development of policies to encourage multiculturalism at work. Multiculturalism in the workplace is becoming
more and more important, as we have many more people from a variety of backgrounds in the workforce.
3. Recruitment. This involves finding people to fill the open positions.
4. Selection. In this stage, people will be interviewed and selected, and a proper compensation package will be
negotiated. This step is followed by training, retention, and motivation.
Development of Workplace Policies
Every organization has policies to ensure fairness and continuity within the organization. One of the jobs of HRM is to
develop the verbiage surrounding these policies. In the development of policies, HRM, management, and executives are
involved in the process. For example, the HRM professional will likely recognize the need for a policy or a change of
policy, seek opinions on the policy, write the policy, and then communicate that policy to employees. It is key to note
here that HR departments do not and cannot work alone. Everything they do needs to involve all other departments in the
organization. Some examples of workplace policies might be the following:
• Discipline process policy
• Vacation time policy
• Dress code
• Ethics policy
• Internet usage policy
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SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
MODULE 2: Compensation and Benefits Administration
HRM professionals need to determine that compensation is fair, meets industry standards, and is high enough to
entice people to work for the organization. Compensation includes anything the employee receives for his or her work.
In addition, HRM professionals need to make sure the pay is comparable to what other people performing similar jobs
are being paid. This involves setting up pay systems that take into consideration the number of years with the
organization, years of experience, education, and similar aspects. Examples of employee compensation include the
following:
• Pay
• Health benefits
• 401(k) (retirement plans)
• Stock purchase plans
• Vacation time
• Sick leave
• Bonuses
• Tuition reimbursement
Retention
Retention involves keeping and motivating employees to stay with the organization. Compensation is a major factor in
employee retention, but there are other factors as well. Ninety percent of employees leave a company for the following
reasons:
1. Issues around the job they are performing
2. Challenges with their manager
3. Poor fit with organizational culture
4. Poor workplace environment
Training and Development
Once we have spent the time to hire new employees, we want to make sure they not only are trained to do the
job but also continue to grow and develop new skills in their job. This results in higher productivity for the organization.
Training is also a key component in employee motivation. Employees who feel they are developing their skills tend to be
happier in their jobs, which results in increased employee retention. Examples of training programs might include the
following:
• Job skills training, such as how to run a particular computer program
• Training on communication
• Team-building activities
• Policy and legal training, such as sexual harassment training and ethics training
Page 6
SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
Dealing with Laws Affecting Employment
Human resource people must be aware of all the laws that affect the workplace. An HRM professional might work with
some of these laws:
Discrimination laws
Health-care requirements
Compensation requirements such as the minimum wage
Worker safety laws
Labor laws
The legal environment of HRM is always changing, so HRM must always be aware of changes taking place and then
communicate those changes to the entire management organization.
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SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
Worker Protection
Safety is a major consideration in all organizations. Oftentimes new laws are created with the goal of setting
federal or state standards to ensure worker safety. Unions and union contracts can also impact the requirements for
worker safety in a workplace. It is up to the human resource manager to be aware of worker protection requirements and
ensure the workplace is meeting both federal and union standards. Worker protection issues might include the following:
• Chemical hazards
• Heating and ventilation requirements
• Use of “no fragrance” zones
• Protection of private employee information
Communication
Besides these major roles, good communication skills and excellent management skills are key to successful
human resource management as well as general management.
Awareness of External Factors
In addition to managing internal factors, the HR manager needs to consider the outside forces at play that may
affect the organization. Outside forces, or external factors, are those things the company has no direct control over;
however, they may be things that could positively or negatively impact human resources. External factors might include
the following:
1. Globalization and offshoring
2. Changes to employment law
3. Health-care costs
4. Employee expectations
5. Diversity of the workforce
6. Changing demographics of the workforce
7. A more highly educated workforce
8. Layoffs and downsizing
9. Technology used, such as HR databases
10. Increased use of social networking to distribute information to employees
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SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
One way managers can be aware of the outside forces is to attend conferences and read various articles on the web. For
example, the website of the Society for Human Resource Management, SHRM Online 1, not only has job postings in the
field but discusses many contemporary human resource issues that may help the manager make better decisions when it
comes to people management.
Most professionals agree that there are seven main tasks HRM professionals perform. All these need to be considered
in relation to external and outside forces.
Key Takeaways
• Capital includes all resources a company uses to generate revenue. Human resources or the people working in the organization
are the most important resource.
• Human resource management is the process of employing people, training them, compensating them, developing policies
relating to the workplace, and developing strategies to retain employees.
• There are seven main responsibilities of HRM managers: staffing, setting policies, compensation and benefits, retention,
training, employment laws, and worker protection. In this book, each of these major areas will be included in a chapter or two.
• In addition to being concerned with the seven internal aspects, HRM managers must keep up to date with changes in the
external environment that may impact their employees. The trends toward flexible schedules and telecommuting are examples of external
aspects.
• To effectively understand how the external forces might affect human resources, it is important for the HR manager to read the
HR literature, attend conferences, and utilize other ways to stay up to date with new laws, trends, and policies.
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SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
Learning Activity
Essay: 20 points
1. State arguments for and against the following statement: there are other things more valuable in an
organization besides the people who work there.
2. Of the seven tasks an HR manager does, which do you think is the most challenging? Why?
References
“HR Implications of Healthcare Reform,” Human Resource Executive Online, March 29, 2010,
accessed August 18, 2011, http://www.hreonline.com/HRE/story.jsp?storyId=379096509.
Frasch, K. B., David Shadovitz, and Jared Shelly, “There’s No Whining in HR,” Human
Resource Executive Online, June 30, 2009, accessed September 24, 2010,
http://www.hreonline.com/HRE/story.jsp?storyId=227738167.
Rivenbark, L., “The 7 Hidden Reasons Why Employees Leave,” HR Magazine, May 2005,
accessed October 10, 2010,
http://findarticles.com/p/articles/mi_m3495/is_5_50/ai_n13721406.
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SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
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SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
Page 12
SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
WRI COLLEGE-Metro Naga, Inc.
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SUBJECT TEACHER CRISTITA T. RAMBOYONG
SCHOOL ADMINISTRATOR DANIEL DOMINIC DE LEON Date of Submission:
