HRM CHAPTER 1: The Development of Human Resources

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

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
objectives 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 . Lack 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 resource practitioners in the country which was established to uphold the
profession to the fullest.

Among the activities of PMAP are :

1. Training and developing personnel administrators through seminars , lectures ,

workshops , meetings , national conferences , and holding tripartite conferences pertaining
to personnel management and industrial relations ;
2. Participation in public hearings to voice support of , or opposition to , proposed
legislation affecting business and industry ;
3. Dissemination of information to upgrade personnel management , offering technical advice
through its special committees and library facilities ; and
4. Establishment of a public relations program aimed at informing the public about the nature of
personnel work .

In addition , government instrumentalities such as the Department of Labor and Employment ,

the Employees Compensation Commission , the Social Security System , Technical Education and Skills
Development Administration , and other government agencies , usually consult with the
association before taking a stand on matters affecting employer - employee relations .

As a results of these efforts , the status of personnel management has been enhanced and the
quality as well as the salary of personnel managers has greatly improved .

Organization and Human Resources

To grow and thrive in today's competitive environment , organization must deal with many and
diverse changes . Traditionally , the concept of value has been considered a function of finance
or accounting . Human resources are crucial to the long – term survival of the organization . Our
definition of value includes not only profits but also employee growth and satisfaction , additional
employment opportunities , protection of the environment and contribution to community
development.

The organization is made up of people . The main goal of any organization is to provide goods
and services effectively . It is the people who are linked in a formal structure and managerial
leadership . People are vital to an effective personnel management program . The development of
an effective organization hinges on the proper selection , development , and utilization , rewarding , and
maintaining capable people .

The organization resources are stretched tightly to come up with the demand of the
global environment . The allocation of these various resources wisely is imperative . An organization
must work together to contribute efficiently towards the goals and objectives set by management . The
effective utilization of manpower can help add and create value .

The Challenges of Human Resources

1. The Challenge of the Global Community

Organizations are increasingly finding out that to survive they must compete with organizations
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 Challenge

The key to success in today's business environment is to meet the investor's needs and those of
the other 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 ,
and financial systems 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 computer aided machines, internets,
and expert 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 organization's competitive advantage depends on the strength of the above linkage .
 Organizations must deal successfully with these challenges to create and maintain value . Human
Resource Management must face these challenges to motivate and develop a well - trained and
committed work force .

Contributing Growth Factors

Among the factors that have contributed to the growth of personnel management in the
Philippines are the following:

1. Increasing complexity of business operations

The post - war period saw the birth of big corporations where the volume and variety of
operations and the size of the labor force demanded specialization in management . The
personnel specialist was called upon to formulate and carry out the organization's personnel policies and
programs.

2. Government regularizations and labor laws promulgated in recent years

In order to safeguard the worker's interests , especially those related to wages working
conditions, job security , and health , the government deemed it wise to enact a number of labor laws
and government regulations . Among such laws are the Woman and Child Labor Law , the Minimum
Wage Law, the Eight - hour Labor Law , the Industrial Peace Act of 1953 , and several other labor and
social laws which are embodied in the Labor Code of the Philippines , and its implementing Rules and
Regulations that took effect on November 1 , 1974. Compliance with these laws ( not to mention the
need to secure permits , compile statistics and make various reports to government agencies ) became
part of the services of a personnel department .

3. Growth of Labor Unions

The passage of the Industrial Peace Act of 1953 , otherwise known as the Magna Carta of Labor ,
triggered the organization of labor unions and the strengthening of the workers ' bargaining
power. Collective bargaining negotiations and the administration of union contracts may best be handled
with the technical resources of a personnel department . With the passage of the new law-
making unfair practices a criminal offense , the responsibility of the personnel or industrial
relations department becomes very important and thus makes the position of personnel managers
a necessity in every company.

4. Influx of new concepts in management

The employee welfare concept is not new , but its nature has changed from one of paternalism
to that of employee's rights through practices that have become institutionalized . Employee benefits
have become varied and far raging , making their administration a complex function . The facilities of the
personnel department are here again utilized to handle such programs .

Definition of Personnel / Human Resource Management

Personnel or Human Resource Management may be defined as the function of management ,

concerned with promoting and enhancing the development of work effectiveness and advancement of
the human resources in the organization . These are accomplished through proper planning , organizing ,
directing , coordination and controlling of activities related to procurement , development , motivation,
and compensation of employees to achieve the goals of the enterprise .

Personnel / Human Resource Management : A Science and an Art

A science is a systematic accumulation of facts , their analysis and interpretation , and their use
to arrive at a satisfactory conclusion . Personnel management is a science because it involves the
systematic gathering of data derived from surveys , statistics , interviews , and observations . It is an
applied science because it utilizes scientific principles in analyzing and interpreting data for application in
the management of the people at work .

Art is proficiency in the practical application of knowledge acquired through study, experience,
or observation . After the required knowledge are gathered and analyzed and the possible solutions to a
problem are formulated , a good executive needs to select the best from among alternative solutions .
He needs to implement his choice at the right time to achieve the desired result and to foresee the
probable success or failure of his line of action , and institute needed corrective measures promptly .
This is where personnel management is an art , since it involves the making of sound decisions .

The major tools of the personnel manager as a scientist and an artist are his creative imagination
and intelligence . These become more keen as he learn from practice and experience , honing his
intuition and insight in handling the various problems of employees in such a way that there is order ,
harmony , balance and proper timing . He also knows how to simplify complex problems.

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 .

Companies Hire a Human Resource Manager because he can :

1. Help management achieve company objectives and goals in the management of its human
resources;
2. Assist top management in formulating sound policies , programs and rules and after
approval , administer them fairly and efficiently ;
3. Assist line supervisors and managers in providing employees with a satisfactory work
environment and in promoting harmonious relationships with the employees and the unions ;
4. Make managers and supervisors aware of their full responsibilities in the management of human
resources by providing them with technical help needed to handle employee problems ;
5. Help train and develop the human resources of the company in order to equip them with the
skills and knowledge required in accomplishing their jobs efficiently ;
6. Help promote understanding and good relationships by opening the lines of
communication between management and employee thereby creating an atmosphere where
workers can be happy and proud to belong to the organization ;
7. Identify management problems that can be resolved and opportunities that can be realized
through improved effectiveness in personnel management ;
8. Assist managements and supervisors in handling labor relations , problems , utilizing his
knowledge and competence on labor laws , government regulations and court decisions on labor
relations ;
9. Assist the company in promoting good morale and motivation among its human resources ;
10. Assist in crisis management and organizational development .

Problems and Difficulties of the Personnel / Human Resource Manager

An appraisal of the role and functions of the personnel managers reveals four main problems :

1. Common misconception about his role and functions

There is a misconception that the personnel manager is nothing more than a simple clerk whose
job is to keep employee records and to give job applicants the necessary forms to fill out .
 Another misconception is that he is the " power behind the throne " who has full control of the
workers and who can do just about anything he wishes to make them happy and to solve all problems
involving personnel .

2. Inadequate recognition by management of the proper role of the personnel manager in the
organization

Some top management executives are unwillingly to give the personnel manager the
corresponding authority and responsibility for the job . There is hesitance on the part of
business executives to let the personnel manager participate in personnel policy - making decisions .

Due to inadequate recognition , some personnel managers develop some feeling of inferiority .
In their desire to elevate and maintain their status , personnel men may shift from being professional to
mere conformists just to get recognized . This indicates lack of self - confidence . Others prefer to leave
the company , thereby causing high turnover in the profession .

3. In the area of labor relations

Some employers expect the personnel manager to keep the labor unions out or if there is one ,
to break or bust it . The personnel manager who is a conformist becomes unstable and insecure in his
position because of lack of the necessary strength of personality and knowledge of his job .

4. Jealousy of the other executives regarding the personnel manager's duty and authority .

These problems can be avoided if top management defines clearly the extent and limits
of authority and responsibility of the personnel manager and enjoins the line executives and supervisors
to cooperate with him .

The Past and Present Role of Human Resources

To understand the improving role of personnel functions , we need to compare the changes with
past practices .

The Traditional Personnel Image

Historically , personnel managers and their departments suffered from very low perceived
position due to the following factors :

1. Disrespect for the position and those who perform it ;

2. The low position in the organization ;
3. Lack of expertise in performing their functions .

The weak position of personnel departments cause them to suffer during times of budget
cutting. The function of the department is indirect and most often unrecognized. It is difficult to
see the relationship of the undertaking comprehensive job enrichment effort and improved profits .
Under this arrangement , the personnel department is one of the areas to be cut in hard times and one
of the last to be increased when conditions improve .

The other result of this low position has been the difficulty of hiring qualified personnel to enter
the field . It is also due to the reluctance of some old personnel practitioners to present to the
top management advance ideas that could improve personnel systems and procedures . On the other
hand , top management refuse to accept new ideas .

The Changing Image of the Human Resource Functions

 With the advancement in technology and the higher qualifications for employment , the position
of the Human Resource 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 .

Organizations 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 resource department
role . Companies now look at Human Resources practices as a means to profitability , quality and other
business goals 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 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 .

The Role Includes the Following :

1. Recruitment and Employment

2. Interviewing , testing , recruiting and temporary employment
3. Labor coordination
4. Training and Development
a. Orientation of new and temporary employees
b. Performance management training
c. Productivity enhancement
5. Wage and salary management
a. Job evaluation
b. Wage and salary survey
c. Executive compensation
6. Benefits Administration
a. Vacation and Sick leaves administration
b. Insurance
c. Stock plans
d. Pension plan
e. Retirement plan assistance programs
7. Employee Service and Recreations
a. Bus service
b. Canteens
c. Athletics
d. Housing and Relocation
8. Community Relations
a. Publication
b. Community project and relation
9. Record management
a. Employment record
b. Information system
 c. Performance record
10. Health and Safety
a. Training
b. Safety inspection
c. Dental and Medical Services
d. Drug testing
11. Strategic management
a. Collaborative planning
b. Out - sourcing manpower research
c. Organizational Planning

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, 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 .

Personal Qualities of the Personnel Manager

1. Can communicate effectively , both orally and in writing

2. Possesses an above - average intelligence
3. Enjoys working with people
4. Grasps the implication of a given situation , understands individual attitudes and the problems of
the employees and of the employer
5. Aggressive , mature, and capable of giving sound advice that will be in the best interest of both
the employer and the employee
6. Possesses the integrity, industry, and courage to earn the respect of the employees and his
employer
7. Possesses a pleasing personality and personal warmth and should be approachable

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
other stakeholders. He has to coordinate with schools and other agencies for their manpower
pooling and other services.

Rewards and Benefits for the Personnel Manager

The Personnel or Human Resource Manager's job is demanding and stressful job. However, itis
financially rewarding and stable. Big companies offer competitive salaries and attractive benefits or what
we call the “perks” of the job, aside from the usual benefits being enjoyed by most employees, which are
mandated by the Labor Law (such as the SSS, PAGIBIG, Phil health, 13" month pay and the like).
Some benefits being offered to Personnel Managers are the following:

1. Car Plan or Free use of Company Transportation ~ This is offered so that he can attend all his
meetings on time and be able to reach all assigned destinations given to him.
2. Unlimited / Limited use of gasoline and free maintenance check-up.
3. Company cellular phone - This is given to ensure that the manager can be contracted anytime
especially by top management so as to have a free flow of communication.
4. Representation Allowance / Meal Allowance ~ A budget is allotted for the managers in order to
maintain a good image not only for the company but also for the manager himself.
5. Education Scholarship / Attending Conventions and Seminars- The managers are offered
scholarships and are given the opportunity to attend conventions, seminars and meetings
for them to be updated with the latest trends in their department, learn thorough knowledge,
meet other colleagues, and gain experience that will enable them to develop their self-
esteem and confidence.

Career Advancement/Other Professional Options for the Personnel Manager

The Personnel Manager, known as the “jack of all trades”, has the opportunity for other career
options such as the following:

1. College Professor ~ He can teach business subjects such as marketing, finance, human resources
and development.
2. Vice President of the Company ~ This is due to promotion after showing and performing
excellently.
3. Chief Executive Officer (CEO)
4. Politician
5. Entrepreneur
6. Businessman

In addition to all these, being in this field will definitely open a lot of doors for this kind of job. Aside
from all the financial and material gains one many have, it is a career intended for those people who love
people and have a soft spot in taking care of their subordinates, that is - the employees.

The Career Path to HR Management

New college graduates who are interested in developing their career in the area of
human resources must start in the lower level of the HR functions. They need exposure in the different
fields or areas of specialized HR functions.

 Entry Level (Personnel Assistant)

 Supervisory Level
 Managerial Level

Career Path to Human Resource Management

1. Entrance Level - A new college graduate may start as personnel assistant in 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 programs;
d. Record 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 descriptions, 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. Skills in testing and interpreting test results and making recommendations as to
the fitness of applicants.
e. Job evaluation and wage administration skills and relating pay to the differences in job
requirements.
f. Skills in determining training needs and develop training modules and conducting
he same.
g. 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 in the following:
a. Leadership and Conceptual Ideas Visioning
a. Here 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
c. Along this area, 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. His main concern is how
human resource assets could be turned into productive investments through a
proper compensation and benefits program.
d. Compliance Administration and Control
e. The changing social and work force environment needs compliance with the social
and legal norms in the work place. This includes labor laws, environmental
regulations, safety and security employee services including recreation and other
manpower demands for a better working environment.
d. Interpersonal Team Work
f. The introduction of new technology in the work place brought about varied HR
problems. An employee has to undergo training and development of new skills
and work values. Global competitiveness, being the essence of the new mandate
for industries, needs employees who are dedicated and work-oriented. Teamwork
cannot be developed in a day or two. Teambuilding and organizational
interventions are needed to develop greater teamwork. Teamwork adds value to more
efficient manpower.

Landscape in HR The Changing Management

The increase in these functions has been seen and realized by management that the
most important level for companies to gain competitive advantage both in domestic and foreign
market is through productive and committed personnel. Top management believes that HRM practices
are directly related to the companies’ success in meeting competitive challenges. The change in
personnel values and orientation should match the changes in technology without which competitive
advantage could hardly be possible.

To compete in the global economic arena, companies need to put greater effort towards
accelerating and retaining talented personnel. Employees need to be trained and developed and we
need to dismantle the bureaucratic structures that limit employee's ability to innovate and be creative.
 The meaning of employees towards the values of Theory Y and Theory Z in the management of
human resources should be encouraged. Employees should be empowered towards productive
endeavor and be guided according to the need for competitive advantage if the economic
development of this country is to be attained.

The politics of divisiveness in the work environment must be replaced with cooperative
undertakings that will contribute to work efficiency. The HRM, functioning along this area under the new
directions, must give credence to more productive efforts towards properly compensated
manpower resources. We need to give credit for productivity, but productivity cannot be attained
with a hungry stomach. These are the new challenges to HRM if employees’ contributions to the
company’s profitability are to be attained.