Chapter 1

The Development of Human Resources

Definition
• Human resource management (generally referred to us HRM) is the effective use of an organization’s
human resources to improve its performance.
• The strategic and coherent approach to the management of an organization's most valued assets the
people.
• The productive use of people in achieving the organization's strategic business objectives and the
satisfaction of the individual.
• Human resources, too, is an increasingly broadening term that refers to the "human capital" - the
people in the organization with different values, aspirations, cultural and family background,
education, attitudes, and temper. It takes a lot of skills, adroitness, and people sensitivity to manage
this group of human beings.

• In simple words HRM stands for managing the employees of an organization.

• It is the process of putting right people to the right task thereby making maximum use of the
employees talent and abilities to achieved the desired goals and objectives.

Approaches to Evaluating the HRD Functions

The overall approach to evaluating the HR functions should distinguish between process and output or the
difference between efficiency and effectiveness. The following are the approaches to evaluating HRD
functions:

1. Evaluation by Checklist
• The checklist approach to evaluating HRD functions is the most simple and close-to-informal
approach of evaluation.
• This is done by preparing a checklist of the different activities of the HRD.
• Activities are grouped by HRM activity area.
• Usually, two columns for yes or no answer are provided beside every item for the analyst to check if
they are properly done.
• This method is concerned with determining whether they are being performed.
• This approach is purely an internal evaluation device and is not a vehicle for comparing one company
with another.

2. Statistical Approach Evaluation

• Statistical approach is the quantitative method in evaluating the HR functions.
 • This approach can be more sophisticated than checklist but quantitative data alone never explain the
whole picture of situations.
• Statistics indicate only where to begin to look for evaluation problems.

3. Andrewartha Evaluation Process

• Mc Phee Andrewartha, an organization of HR specialist, states that HR audit process is more than
information gathering and analysis process.
• It is a skillfully managed discussion with managers that is developmental and enhances the culture of
the organization.
• The organization enumerated three elements to evaluating HRM functions.
• First is the HR Audit-Manager Interview. This comprises a series of structured interviews with the
managers at a several levels of the firm.
• It is a flowing discussion that allows the manager to describe their knowledge and opinions in a natural
way.
• This will provide an effective gauge of the effectiveness of the organizational communication.

4. Survey Method

Survey method is the method used to know the feedback of the HRD from the employees.

• The essential element for survey approach is the respondents.

• They could be the employees presently employed in the company or the separated employees
through the exit interviews.
• One may include this as one of the separation procedures before claiming employees' clearance.
• They qualified respondents with this approach since they are direct clients of the department.

The Objectives of Human Resource Management

• Cultural Growth
- Putting in place policies that make employees feel valued, motivated, and engaged
• Organizational Support
- Ensuring efficiency in employee recruitment, management, and retention
• Procedural Administration
- Authoring best practices and official policies, including benefit structures
• Personal Advancement.
- Helping every employee progress and remain successful in their career
• Organizational Mission
- Contributing to the overall strategic goals and values of the company
Personnel/Human Resource Manager
The personnel or human resource manager,

• who is a member of the top executive group,

• is responsible for the formulation of personnel policies and programs which will serve as the
foundation for an efficient personnel administration in a company for it to realize its goals and
objectives and allow the employees to develop their individual career goals.

The Role of HR in the New Millennium Organization

• 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, employee discipline and efforts to improve quality and productivity.
Roles of the Personnel/Human Resource Manager
Considering his position in the company and the scope of his functions, the personnel manager is expected to
play varied roles such:

1. Supervisor

• He plans, organizes, directs, controls and coordinates the activities of his departments.
• He delegates some of his functions to his subordinates but check on them through follow-ups.
• He manages the work of the employees in his department and trains them in developing their skills for
efficiency.

2. Administrative Official

• He or his staff conducts or directs certain personnel activities as provided or in the policies and
programs entrusted to the department.
• He sees to it that labor laws and government regulations are properly complied with.
• He should also know how a policy is made and administered.
3. Adviser

• He serves as counselor, guide and confidante to management supervisors and employees.

• To be competent, he must keep himself informed about employee attitudes and behavior and be
abreast of treads in the industrial relations field which may affect his company.

4. Coordinator

• He brings into action all activities, regulates and combines diverse efforts into a harmonious whole,
and gets together and harmonizes the work of various personnel in his department and the related
function in other departments.

5. Negotiator

• He is the representative of the management in negotiating labor contracts or to attend negotiations

with unions in an advisory capacity.
• As a negotiator and administrator of the labor contract, he must understand the nature, significance
and methods of collective bargaining.

6. Educator

• He conducts or administers company's training program.

• He is very much involved in the management of employee development programs of his company.

7. Provider of Services

• He provides services to all employees and helps them obtain facilities with government agencies like
SSS, Medicare, etc., which can make their employment more satisfying.

8. Employee Counselor

• His knowledge and training in human relations and the behavioral sciences plus his familiarity with
company operations, puts him in the best position to counsel employees.

9. Promoter of Community Relations

• He must be well informed of the activities and developments in the environment where the
enterprise operates.
• He is called by the management in helping the company project favorable and positive image to the
community.

10. Public Relations Man

• His functions require him to deal with the general public, which includes the employees, the unions,
and the community.
 Chapter 2
Strategic Human Resource Planning
Human resource planning (Hrp)

• Is the process of systematically reviewing human resource requirements to ensure that the number
of employees matches the required skills.
• It is the process of matching the internal and external supplies of people with job openings
anticipated in the organization over a specific period of time.
• HRP is increasingly being recognized as an important component of Human Resource Management

What is strategic planning?

• Is the determination of the overall organizational purpose and goals and how they are to be
achieved.
• Human resources is the integral component of a strategic plan, which greatly affects productivity and
organization performance.

Two important components of the human resource planning

1. Requirement
Forecasting human requirements involves determining the number and types of employees needed.
The level of skills has to be determined and matched with the plan operations. The analysis will
reflect various factors such as production plans, and changes in productivity together with the
introduction of new technology if there is any. The HRD, in order to forecast availability must look to
both internal and external sources.
- Internal sources refer to existing manpower that could be re-assigned to new positions or be
promoted to higher vacant positions
- External sources refer to positions that are not available inside the organization and need to
be sourced out.

2. Availability
When employee requirements have been analyzed, the firm determines whether theft is a surplus or
shortage of manpower. If there is a surplus, ways must be instituted to reduce the number of
employees. Some of these methods include restricted hiring, reduced work hours, early retirement of
old employees, and the worst is to layoff some employees. If the manpower forecast reveals
shortage, the HRD must obtain the proper quantity and quality of workers outside the organization
after exhausting efforts to find from within. Human resource planning must be continuous, as
changing condition could affect the entire organization thereby requiring extensive modifications of
forecasts

Common weakness in human resource planning

 1. Over-Planning
A plan is likely to fail through an inherent weakness of having covered too many aspects of personnel
management at the very early stage of HRP in the firm or government office.

2. Technique Overload.
The use of so many techniques sometimes leads to the gathering of so much information. Then the
techniques do not get to be applied effectively. This makes the techniques serve as a trap rather than
a means for action.

3. Bias for the Quantitative.

There are planners in HRP who sometimes make the mistake of being drawn towards emphasizing the
quantitative aspects of personnel management to the neglect of the qualitative side.

4. Isolation of the Planners.

When top management has a low regard for human resource activities and for the HR staff, they give
little encouragement to HRP activities, ignore the plan and withdrawn support for plan
implementation.

5. Isolation from Organizational Objectives.

When HRP is pursued for its own sake or for narrow viewpoint of concentrating on HRD, the effort
leads to the formulation of a plan that does not interphase with organizational development.
6. Lack of Line Supervisors' Inputs
Any plan to develop the personnel and to improve the conditions of work must use the feedbacks
from the line supervisors, since they are the ones who are handling the personnel in the organization

Human Resource Forecasting Techniques

1. The Zero-Base Forecasting Approach -It uses the organizations' current level of employment as the
starting point for determining future staffing needs. The usual references point is the organizational
structure pattern based on company production forecast on market and customer demands.

2. The Bottom -Up Approach This forecast uses the progression upward methods from the lower
organization units to ultimately provide the aggregate forecast of employment needs. The starting point is
the number of current employees and the progress in operation requirements as the company improves its
operation to meet increasing customer demand.

3. Use of Predictor Variables - This methods uses the past employment levels to predict future
requirements.

- Predictor variables are known factors that have an impact on employment.

- Sales volume determines employment levels. As production increases, demand for manpower increases. It
uses regression analyses to predict one item, which is known as the independent variable (current
employment level) through the other item (sales volume) that is dependent variables.

4. Simulation It is a technique for the testing of alternatives on mathematical models representing the real
world situation. The purpose of this model is to permit the human resource manager to gain considerable
insights into a particular problem before making actual decisions.

The important elements in strategic human resource planning

1. Organizational Goals
2. Human Resource Forecast
3. Employee information
4. Human resource availability projections
5. Analyzing and evaluating human resource gaps

Human resource information system (hris)

SYSTEMATIC - Information must be systematically arranged and contain the needed data.

MANAGEMENT ORIENTED - The information are essential tools for effective manpower planning, retention,
development, and separation of employees

APPLICABLE - The data and information stored in file must be applicable in making human resource
decisions. Irrelevant data must be discarded

RESULTS ORIENTED - The results from the information and decisions derived thereat must be both
acceptable to management and the employees concern. The end results must contribute to greater company
productivity and employees satisfaction

TIME BOUND - Relevant human resources information are necessary for effective decision-making. The need
for timely decisions are crucial to the effective management resources

Major human resource functions:

1. Staffing applications
a) Applicant reporting requirements
b) DOLE reporting
c) requirements
d) Developing a master employee data
base
e) Staffing applications for decision-
making

2. Human Resource Planning Applications

a) Work-force profile Analysis
b) Work-force Dynamic Analysis
c) Human Resource Planning for decision-making
 Chapter 3: Human Resource Recruitment

Recruitment

- Is the process of attracting the best individuals to join the company on a timely basis in
sufficient numbers and meeting the qualification requirements, thereby encouraging them to
apply for the jobs in the organization.

What are the two major sources of candidates to fill the vacant positions?

1. The internal source

• These are the qualified candidates from the company and within the ranks of its present
employees.
• The recruitment from within the company is also less expensive in terms of time and resources
because incumbent employees are already familiar with the organizational rules, policies, and
regulations and other functions related to the new position.
• Promotions are best applicable for supervisory employees or mid- level positions. This upward
movement will create vacancy for the entry of another prospective employee that could be
sourced out from the external manpower.

2. The external source

• the hiring from the outside source is a management option. If it thinks that no one from within
among the next rank of employees can successfully perform the job or deliver the required
output, then hiring an outsider would be inevitable.
• This could also be resorted to when the new vacant position requires added skills due to the
introduction of new technology and the need is immediate and necessary.
• In order not to affect the culture of conflict among employees who are vying for a new position.
• This practice of hiring from outside is resorted to by management to eliminate dissensions among
internal employees competing for promotions.

Different methods of Human Resource Recruitment

1. Job posting
- This is the process by which internal recruitment is accomplished. Every time a position
becomes available it is posted.
2. Word-of-mouth system
- This method of recruitment is found to be effective in local situations. This is very common in
a locality where there are few jobs available and more applicants wants to get employed.

3. Advertising media
- one popular and often effective means of soliciting applicants is advertising it through the
media, like newspaper, magazines, radio or television.
✓ Blind ads-These are ads that do not reveal the identity of the company to avoid responding to
a flood of phone calls or unwanted resumes.
4. Walk-ins and Unsolicited Applicants
- These unsolicited applicants could be a possible source of outstanding employees.
5. Campus or University Recruitment
6. Job fair and open house
7. Government agencies
8. Radio and Television
9. The internet