INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

What is HRM?
 Management process
 The five basic functions of planning, organizing, staffing, leading,
and controlling.
 Human resource management (HRM)
 The policies and practices involved in carrying out the “people” or
human resource aspects of a management position, including
recruiting, screening, training, rewarding, and appraising.
Personnel Aspects Of A Manager’s Job
 Conducting job analyses (determining the nature of each
employee’s job)
 Planning labor needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries (compensating employees)
 Providing incentives and benefits
 Appraising performance
 Communicating (interviewing, counseling, disciplining)
 Training and developing managers
 Building employee commitment
Why is HRM important
 Hire the wrong person for the job
 Experience high turnover
 Have your people not doing their best
 Waste time with useless interviews
 Have your company in court because of discriminatory actions
 Have your company cited by OSHA for unsafe practices
 Have some employees think their salaries are unfair and inequitable
relative to others in the organization
 Allow a lack of training to undermine your department’s effectiveness
 Commit any unfair labor practices
Basic HR Concept
 Getting results
 The bottom line of managing
 HR creates value by engaging
in activities that produce
the employee behaviors
the company needs to
achieve its strategic
goals.
Line and Staff Aspects of HRM
 Line manager
 A manager who is authorized to direct the work of subordinates and
is responsible for accomplishing the organization’s tasks.
 Staff manager
 A manager who assists and advises line managers.
Line Managers’ HRM Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working
relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10.Protecting employees’ health and physical condition
HR and Authority
Authority - The right to make decisions, direct others’ work, and give orders.
Staff authority
Advisory relationship
 Innovator role
 Employee advocacy role
Line authority - Supervisor-subordinate relationship
Functional authority - Authority as coordinator of personnel
Functions of the HR Manager
 A line function
 The HR manager directs the activities of the people in his or her
own department and in related service areas (like the plant
cafeteria).
 A coordinative function
 HR managers also coordinate personnel activities, a duty often
referred to as functional control.
 Staff (assist and advise) functions
  Assisting and advising line managers is the heart of the HR
manager’s job.
Examples of HR Job Duties
 Recruiters - Search for qualified job applicants.
 Equal employment opportunity (EEO) coordinators - Investigate and
resolve EEO grievances, examine organizational practices for potential
violations, and compile and submit EEO reports.
 Job analysts - Collect and examine information about jobs to prepare
job descriptions.
Examples of HR Job Duties (cont’d)
 Compensation managers - Develop compensation plans and handle
the employee benefits program.
 Training specialists - Plan, organize, and direct training activities.
 Labor relations specialists - Advise management on all aspects of
union–management relations.
HR Department Organizational Chart (Large Company)

Approaches to organize HR
 Transactional HR - Carrying day to day transactions
 Corporate HR - Helping top management
 Embedded HR - Helps departments like sales
 Centers of expertise HR - Specialized consulting within companies
Cooperative Line and Staff HR Management
1. The line manager’s responsibility is to specify the qualifications
employees need to fill specific positions.
2. HR staff then develops sources of qualified applicants and conduct
initial screening interviews
3. HR administers the appropriate tests and refers the best applicants
to the supervisor (line manager), who interviews and selects the ones
he or she wants.

HR Organizational Chart (Small Company)

Employment and Recruiting—Who Handles It? (percentage of all employers)

The Changing Environment Of HR Management

HR’s changing role:
 Took over hiring and firing from supervisors, payroll, and benefit plans
administration.
 Protecting the firm in its interaction with unions (labor relations).
 Assumed organizational responsibilities for equal employment and
affirmative action.
TRENDS SHAPING HRM
 Globalization
 Sales, ownership, manufacturing in new markets
 More pressure
 Lower cost
 Less secure jobs (off shoring)
 Partnerships
TRENDS SHAPING HRM cont.
 Indebtedness (leverage)
o Spending more and earning less
 Technological trends
o PDAs to communicate
o Telecommuting
o Virtual on line communities
 Trends in nature of work
o High tech jobs
 o Service jobs
o Knowledge work and human capital
 Workforce and demographic trends
o Demographic trends
o Nontraditional workers
o Retirees
o Generation Y
 Economic challenges and trends
o Boom
o Recession

Employment Exodus: Projected Loss of Jobs and Wages

TRENDS In HRM
 The new HR manager
 Focus on big picture issues
 New ways to provide transactional services
 Have new proficiencies
 The Need to “Know Employment Law”
 Equal employment laws
 Occupational safety and health laws
 Labor laws
TRENDS In HRM cont.
 High performance work systems
 o Generate more job applicants
o Screen candidates more effectively
o Provide more and better training
o Link pay more explicitly to performance
o Provide a safer work environment
o Produce more qualified applicants per position
o More employees are hired based on validated selection tests
o Provide more hours of training for new employees
o Higher percentages of employees receiving regular performance
appraisals.
 Strategic HRM
 Evidence based HRM
 HR Professional Certification
o HR is becoming more professionalized.
 Managing ethics
o Discrimination
o Harassment
o Glass ceiling
o Employee surveillance
o Employee safety
Effects CFOs Believe Human Capital Has on Business Outcomes

Measuring HR contributions
 Strategy
 The company’s long-term plan for how it will balance its internal
strengths and weaknesses with its external opportunities and threats to
maintain a competitive advantage.
 HR managers today are more involved in partnering with their top
managers in both designing and implementing their companies’
strategies.
 Top management wants to see, precisely, how the HR manager’s plans
will make the company more valuable.
Strategy and the Basic HR Process

Topic 2: CONSTITUTIONAL AND LEGAL FRAMEWORK

“Managing human resources is oftentimes fraught with legal implications.”
Fraught: causing or having a lot of emotional stress or worry
COST ACCOUNTING
 LABOR
 MATERIALS
 FACTORY OVERHEAD
Implication of Lawsuits
 Legal Costs
 Company Name’s Reputation
 Management’s Reputation
 Ignorance of the law excuses no one.
 An ounce of prevention is better than a pound of cure.
Goodwill: a kind, helpful or friendly feeling or attitude
Business: the amount of value that a company’s good reputation adds
to its overall value

The Philippine Constitution

  laid the basis for protecting the rights and welfare of employees
provides:
“The state affirms labor as a primary socio-economic force. It shall protect
the right of workers and promote their welfare.”
 protects the right of employees to form unions, association or societies
for purposes not contrary to law.
Declaration of Principles Article XIII, Section 3
- The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and
equality of employment opportunities to all.
- Self-organization
- Collective Bargaining
- Strikes
- Security of Tenure, Humane Conditions of Work and Living Wage
- Participation in Policy and Decision Making
- Shared Responsibility Between Workers and Employers
- Just Share in the Fruits of Production
Labor Code of the Philippines
- was enacted during the Martial Law
- was approved May 1, 1974
- took effect on November 1, 1974
Labor Code of the Philippines
- Book 1: Pre-Employment
- Book 2: Human Resources Development Program
- Book 3: Conditions of Employment
- Book 4: Health, Safety and Social Welfare Benefits
- Book 5: Labor Relations
- Book 6: Post-Employment
Kinds of Employees
- Employer - Includes any person acting in the interest of the employer
- Employee - Includes any person in the employ of an employer
- Managerial Employee - one vested with powers or prerogatives to lay
down and execute management policies
- Supervisory Employee - one who, in the interest of the employer,
effectively recommends such managerial actions
- Rank and File Employee - one not falling under any of the preceding
definitions
Types of Employees (in terms of tenure)
- Regular
- Project
- Casual
- Probationary
- Fixed Contract
Health, Safety & Social Welfare
 First Aid Kit & First Aiders
 50 employees but not more than 200
 Registered Nurse
 200 employees but not more than 300
 Full time registered nurse
 Part-Time Physician
 Dentist
 Emergency Clinic
 Exceeds 300 employees
 Full Time Physician
 Dentist
 Full Time Registered Nurse
 Dental Clinic
 Infirmary/Emergency Hospital
 Physicians, nurses & dentists employed shall have necessary training in
industrial medicine and occupational safety and health.
 Employer’s duty to provide all necessary assistance
Labor Relations - refer to the relationship between the employers and
employees in industry, and the political decisions and laws that affect it.
Sources of Conflicts in Labor Relations
 Manners by which hierarchical demands are made or executed
 Clash between Management Prerogatives and Labor Rights
 Just share in the fruits of production
 Fair return in investment, expansion and growth
Concepts of Unfair Labor Practice
 Violates constitutional rights of workers to self-organization
 Is inimical (causes damage) to the legitimate interests of both labor and
management and labor’s right to bargain collectively with freedom and
mutual respect
 Disrupts industrial peace
  Hinders promotion of healthy labor-management relations
 Is a criminal offense
Strike
 Grounds
o Deadlock in Collective Bargaining Negotiations
o Unfair Labor Practice (ULP)
 Conditions
 Notice filed with DOLE
o 30 days with deadlock
o 15 days with ULP
 Approved through secret balloting
Just Causes
 Serious misconduct or willful disobedience by the employee
 Gross and habitual neglect by the employee of his duties
 Fraud or willful breach by the employee of the trust reposed on him
 Commission of a crime or offense by the employee against the person
of his employer or any immediate member of his family or his duly
authorized representative
 Other causes analogous to the foregoing
Authorized Causes
 Installation of labor-saving devices
 Redundancy
 Retrenchment or downsizing
 Closure or cessation of operation
 Disease
Due Process Requirement
“Twin Notice”
o A notice served on the employee specifying the particular acts or
omissions
o A notice of termination served upon the employee

HUMAN RESOURCE PLANNING

INTRODUCTION

 Human Resource Planning is the process of getting the right people in the right place at the right
time
 It links human resources management to the strategic plan of the organization.
 Is an honest self-assessment that clearly identifies the strengths and weaknesses of the firm’s
workforce

DEFINITION AND SCOPE

 Development of strategies for matching the size and skills of the workforce to the organizational
needs.
 Assists organizations to recruit, retain and optimize the deployment of the personnel.
 Skills analysis of the workforce.
 Manpower forecasting.
 Development of training strategies.

Human Resources Planning varies from different organizations depending on their style, positioning in the
market place, market demands, industry they are in, financial capability and competitive environment

HUMAN RESOURCE PLANNING PROCESS

 Analyzing
o Assessment of the current human resource availability
o Comprehensive study of the human resource strength
o Understand the critical HR issues they face and workforce capabilities
o

 Forecasting
o Analysis of the future workforce requirements
o Consider attrition, lay-offs, foreseeable vacancies, retirements, promotions,
pre-set transfers and workforce variables

 Planning
o Match the current supply with the future demand
 o Understand the business strategy and objectives in the long run so that the
workforce demand forecast is aligned to the organizational goals

 Implementing
o Develops plans to meet the gaps as per the demand forecast
o Communicate programs with employees, relocation, talent acquisition,
recruitment and outsourcing, talent management, training and coaching, and
revision of policies.

Analyzing

 Environmental Factors

o Economic condition (inflation, market recession)

o Government labor policy (wage increases, contractualization)

 Organizational Direction

o Future expansion (merger)

o Buy-outs (retrenchment)

o Adoption of new technology (artificial intelligence)

 Internal Workforce

o Skills assessment

o Turn-over (retirement, resignation)

o Training need analysis

 External Workforce

o Sourcing-out labor supplies (academic institution linkages)

Forecasting-> Factors

 Demand

o Environmental Factors

o Organizational Direction

 Supply

o Internal Workforce

 Turn-over (Resignation, Dismissal

o External Workforce

o Unemployment

o Temporary Workers

o Outsourcing
Forecasting->Methods

 Statistical Method

o Based on historical trends

o Gives more precise prediction

 Judgmental Method

o Opinion-based forecast

o Department managers determine staffing needs

 Some managers are empire builders

Planning

 Succession Planning

o Replacement candidates must be identified for middle and top management

o HR is responsible to address their development

o Candidates are rated according to performance and potentials

Implementation and Evaluation

o Final Step in HR Planning process.

o Gauge if the plan was able to avoid labor shortage or surplus.

o Forecast is not an exact service, it should give allowance for errors.

o Determine which planning part is vital in the success or failure.

o Evaluation feedback serves as reference on future improvements.

WHAT MAKES YOU HAPPY?

o 93% of recruiters are likely to look at a candidate’s social media profile

o 427,000 resumes are posted each week on Monster
o 8,000,000 applicants found their job on Twitter
o The average time spent by recruiters looking at a resume is just 5 to 7 seconds, with 76% of
resumes discarded for having an unprofessional email address.
Special Topic in Human Resource Management: CONTRACTUALIZATION

o This topic on Endo has been the subject of many debates

o Stances on this issue are divided, there are some who point out how the practice is exploitative
and illegal, others who say it's Contractualization is essential to economic growth, while there
are others also talking about how it affects the workers who are subject to it.
o However, despite the controversy it is still regularly employed by major companies in the
Philippines to cheapen labor fees.

Endo Contractualization

o Endo refers to a short-term employment practice in the Philippines.

o Workers temporary employment that last them less than six months and then terminating their
employment just short of being regularized in order to skirt on the fees which come with
regularization.

X Employer & employee relationship

X SSS

X Philhealth

X Pag-ibig housing fund contribution

X 13th Month Pay, etc

 The word Endo is derived from an abridged version of the phrase "end of contract". Endo is
also sometimes referred to "5-5-5", referring to the number of months until a non-regular
employee's termination or end of contract. Under the Labor Code of the Philippines (PD 442),
employers may employ people under a probationary status of not exceeding six months. Under
this system, the worker's employment contract ends before the six month by their employer.
After the six-month period, employees then become regular workers, entitled to several health,
security, and insurance benefits prescribed by law.

Contractualization

o is one of the most controversial labor practices in the Philippines. Since its adoption in 1974, the
Labor Code has been amended and attached with several implementing texts. As of June 2016,
there are an estimated 356,000 probationary workers in the Philippines.

LAW, RULES & JURISPRUDENCE ON SECURITY OF TENURE

RIGHT TO SECURITY OF TENURE

 1987 Constitution

Article XIII, Section 3

 Labor Code

 Article 295 & 296 (regular/ probationary employment)

 Article 297 (Just Cause) and 298 (Authorized Causes)
 Article 299 (Disease)
 Article 300 (Resignation)
 Article 302 (Retirement)

 DO 147-15

EMPLOYMENT

Four-Fold Test

 Selection and Placement

 Payment of Wages
 Power of Dismissal
  Power of Control

Means and Methods

Economic Dependence Test

 Dependent on employer for continued employment

TYPES OF EMPLOYMENT

 PROBATIONARY

- 6 Months

- Standards must be made known at the start of employment

- Evaluation completed before 6th months

Fallarme vs. San Juan De Dios Educational Foundation, Inc, GR No. 190019, September 2016

FAILURE TO QUALIFY FOR REGULAR EMPLOYMENT

 REGULAR

- Usually necessary or desirable in the usual business or trade of the employer

- Employed more than a year

Quintanar vs. Coca Bottlers Philippines, Inc, GR No. 210565, June 28, 2016

 CASUAL

- Less than a year

 PROJECT

- Specific project or undertaking

- Completion or termination has been determined at the time of the engagement

Felipa vs. Angbus Construction, Inc., GR No. 221897, November 7, 2016

Quebral vs. Angbus Construction, Inc., GR No. 221897, November 7, 2016

 SEASONAL

- Work or services to be performed is seasonal in nature

- The employment is for the duration of the season

 FIXED TERM CONTRACT

- Stipulated in contract

- Voluntary, Equal Footing (strictly contrued)

Samonte vs. La Salle Greenhills, GR No. 199683, Feb 10, 2016

Jamias vs. NLRC, GR No. 159350, March 9, 2016

JUST CAUSES

- Serious misconduct
- Willful disobedience
- Gross and habitual negligence
- Fraud
- Loss of trust and confidence
- Commission of a crime or offense; and
- Other causes analogous to the foregoing

SERIOUS MISCONDUCT

- Misconduct
 Forbidden act
 Dereliction of duly
- It is grave and aggravated character
- Relate to performance of EE’s duties
- EE becomes unfit to continue working for ER

Christine Joy Capin-Caiz vs. Brent Hospital and College, Inc., GR No. 187417 24, 2016

WILLFUL DISOBEDIENCE

- Disobedience or insurbordination
- Willful or intentional
- Order is resonable, lawful and make known to the EE
- In connection with the duties of the employee

Tabuk Multi-Purpose Cooperative, Inc. vs. Duclan, GR No. 203005, March 14, 2016

ANALOGOUS

- Act or omission similar to those specified just cause

- Caused by the voluntary and/ or willful act or omission of the EE
- Rationale for dismissing an employee based on the four (4) foregoing causes also
applies to analogous case.

Puncia vs. Toyota Shaw/ Pasig Inc, GR No. 214399, June 28m 2016

OTHER GROUNDS

- Reasonable and lawful grounds specified under company policies (Sec. 6 DO 147-15)
- Universal Canning Inc. vs. CA, GR No. 215047, November 23, 2016
- Employee found positive for drug use (Sec. 6, DO 147-15)
- Sexual Harassment (Sec. 6, DO 147-15)
- Grounds provided under the CBA (Sec 7, DO 147-15)

PROCEDURE: JUST CAUSE

- Notice to Explain
- Opportunity to be heard
- Administrative hearing
- Notice of Decision

Jinky Sta. Isabel vs. Perla Compania De Seguros, Inc., GR No. 219430, November 7, 2016

AUTHORIZED CAUSES

- Installation of Labor Saving Devices

- Redundancy
- Retrenchment to prevent losses
- Closure of Business
- Temporary Lay-off

REDUNDANCY
 - Superfluous positions or services
- Positions or services are in excess of what is reasonably demanded by the actual
requirements of the enterprise to operate in an economical and efficient manner
- Good faith in abolishing positions
- Fair and reasonable criteria (performance, status & seniority) Adequate proof of
redundancy
- Payment of separation pay of one month for every year of service

American Power Conversion Corporation vs. Lim GR No. 214291, January 11, 2018

PROCEDURE: AUTHORIZED CAUSE

- Notice to Employee
- Notice to DOLE
- Period:
o 30 days prior to dismissal
o Payment of separation pay is not in lieu of 30 days’ notice.

PNCC Skyway Corporation vs. Secretary of Labor and Employment , GR No. 213299, April 19,
2016

DISEASE

- Suffering from Disease

- Continued employment prohibited by law or prejudical to his health
- Must be certified by public health authority
- Separation pay: half month pay for every year of service
- Procedure

Deoferio vs. Intel Technology Phils., Inc., GR No 202996, June 18, 2014 DO 147-15

RESIGNATION

- Must be given 30 days before intended date

- Exception:

Serious insult on person or honor

Inhuman and intolerance treatment

Commission of crime

Analogous cause

Cosue vs. Ferritz Integrated Development Corporation, GR No. 230664, July 24, 2017

RETIREMENT

- Covered: 60 to 65 years old with 5 years of service

- Amount: Half month for every year of service

22.5 days (15 days + 5 days SIL + 2.5 days (13th month)

Milan vs. NLRC, GR No. 202961, February 4, 2015

De La Salle Araneta University vs. Bernardo, GR No. 202961, February 13, 2017

Laya Jr. vs. Philippine Veterans bank, GR No. 205813, January 10, 2018

Notable Cases
DOLE's initial list to the Malacañang identified the top 20 companies suspected or confirmed
to practice illegal contracting practices:

- Jollibee Food Corporation (14,960)

- Dole Philippines, Inc. (10,521)
- Phil. Long Distance Telephone Co. (8,310)
- Philsaga Mining Corp (6,524)
- General Tuna Corp (5,216)
 - Sumi Phil. Wiring Systems Corp (4,305)
- Franklin Baker Inc (3,400)
- Pilipinas Kyohritsu Inc (3,161)
- Furukawa Automotive Systems Phil Inc (2,863)
- Magnolia Inc. (2,248)
- KCC Property Holdings Inc (1,802)
- Sumifru Philippines Corp (1,687)
- Hinatuan Mining Corp (1,673)
- KCC Mall De Zamboanga (1,598)
- Brother Industries (Philippines) Inc (1,582)
- Philippine Airlines & PAL Express (1,483)
- Nidec Precision Philippines Corp (1,400)
- Peter Paul Phil. Corp (1,362)
- Dolefil Upper Valley Operations (1,183)
- DOLE-Stanfilco (1,131)

Half a million workers have been regularized since Labor Day last year when President
Rodrigo Duterte signed an executive order to protect the workers’ right to security of tenure,
according to the Department of Labor and Employment (Dole).

The Philippine job market could be less competitive

- Endo is primarily a loophole exploited by employers looking for a low-cost workforce.

This is a part of why the Philippines is such an attractive job market.

- More people may be unemployed and unemployable

- By giving benefits, businesses can be assured of a more productive workforce.

The Bottomline for Endo

- A person who has job security will be more dedicated to success than someone who
dreads the day the contract ends. Incentives can also be used to drive productivity and
motivation, bringing forth a more active workforce.