ENTREPRENEURSHIP DEPARTMENT

Bicol University Tabaco Campus

Tabaco City

SUBJECT : ENTREPRENEURSHIP 23 – HUMAN RESOURCE MANAGEMENT

TOPIC : SUMMARY REPORT ON HUMAN RESOURCE MANAGEMENT
SUBMITTED TO : MR. RODOLFO B. BUEMIA
SUBMITTED BY : LEA B. BENDITAHAN

I. CHANGING PERSPECTIVE OF HUMAN RESOURCE MANAGEMENT

1. Evolution of Human Resource Management

As stated by Atty. Arnulfo Rayos, evolution of human resource is relative to the culture
wherein it focuses to the function of the head viewed by top management, the title may vary
from personnel officer, personnel manager, industrial relations officer, vice president(VP), or
senior(SVP) for personnel administration or industrial relation. Changes in terminologies may
vary in the associated management of people in the organization.
As the business environment and the profit opportunities grew increasingly large,
organizations began to create specialized units to cope with their hiring needs. During the 1930s
and the1940s, the units gradually began to be called personnel departments (the word
personnel is from an old French word that means "person"). Until 1990s, personnel
management was not seen as a particularly important critical function in most business
organization but still other managers appreciated personnel management as a vehicle for hiring
new employees.
In the late 70's human resource management emerged as a reaction against the more
functional approach embodied in personnel management where employees no longer viewed as
a group of individuals needed to be closely supervised and managed, but rather, as a collection
to be valued as a distinctive source of competitive advantage. In achieving success,
organizations must maximize competencies having tangible attributes, such as skills and
knowledge, technical know-how, to intangible attributes and values such as teamwork and
flexibility.
2. Main Trends in the HR Profession
Human Resources and Information Technology (IT) deals with how information is
accessed, gathered, analyzed and communicated. The use of information technology can not
only driven by the need to automate HR processes and services but actually influenced by a
realization that improved delivery of HR services can become a competitive advantage of the
enterprise. Through the study conducted by Forture Magazine, the competition advantage will
no longer be defined by better business processes but will be determined by the quality of the
workforce.
3. Application of Information Technology (IT) in HR
The Philippines has all the potential to be an active player in the digital domain. At
present, joint government and private sector groups are unified in pushing for the development
of e-commerce. The government is positioning the country to serve as host to various service-
oriented business particularly in the IT and other related industries.
The HR plan should be aligned with the business plan for of the organization. It is then
critical for HR people to understand and initiate useful IT application.
Some of these are the following:
 Use of job boards and other similar web-based recruitment (e-recruitment)
 E-selection
 Employment kiosk
 E-learning
  Electronic Performance Support System (EPSS)
 Salary and payroll administration
 Growth of social networking sites like Facebook and Twitter
 Use of Email
 Use of IT to foster customer involvement
 Telecommuting/Teleworking
4. Human Resource Information System (HRIS)
According to the book of Fundamentals of Human Resource Management by DeCenzo
and Robbins (2005), HRIS is about employees in a central and accessible location
Purpose of HRIS:
a) To provide the efficiency with which on employees and HR activities are compiled
b) To provide HR information more rapidly and more easily to be used in management
decision making.
HRIS Applications:
1. IBM Online System - online system has been tremendously well-received by employees
who can now research program information and access decision support tools from their
own homes.
2. Toshiba America Medical Systems Inc. (TAMS) - created a library of documents and
forms on its Human Resources Portal, including the benefits guide which earned a 2004
APEX Award
Some of the Benefits of HRIS Solutions
1. Salary and Payroll Administration
2. HR Training
3. Self-service Benefits Transactions
Examples of HR Data Accessed by Various Stakeholders
Position Online Self-Service
 Job openings
Applicants  Application blanks
 Data on the company
 Benefits enrollment and claims
 Print pay slips for fast and current months
 Enroll for training and check training schedule
Employees  Dependent data
 Download forms and templates for HR administration
 Retirement planning scenarios
 Provide feedback and view latest company news and
announcement
 Training investment factor
Managers  Cost per hire
 Turnover cost
 Data for HR forecasting and costing
Executives  Succession plans
 Time and attendance data
External Groups  Dependent health insurance status
 Payroll information
Example of Software
Jeonsoft Payroll Suite 2006 is a client-server-based integrated personnel and payroll
system specifically designed for Philippine use.
3 major modules
 Time attendance system
 Payroll system
 HRIS system
These 3 major system automates payroll computation while making recording and retrieval
of employee records fast and easy
According to Johnson and Gueutal, HR is evolving into more technology based profession
because organizations need to:
 Streamline HR processes and reduce administrative burdens
 Reduce HR administration and compliance cost
 Compete more effectively for global talent
 Improve service and access to data for employees and managers
 Provide real-time metrics to allow decision-makers to spot trends and manage the
workforce more effectively
 Enable HR to transform so it can play a more strategic role in the business
Labor Relations
According to the Bureau of Labor and Employment Statistics, one of the department
bureaus of the Department of Labor and Employment or DOLE, if one will look at the
percentage of labor union members to total wage and salary workers, there is a notable decline
from 30.7% in 1982 to 29.5% in 1993 down to 10.6%in 2009.
Increase in Social Contribution
Employees pay mandatory contributions in proportion to their salary (1) Social Security
System (SSS) which takes contributions of 10.4% of monthly salary, (2) Government Service
Insurance System (GSIS) which is 21% of the monthly salary.
National Health Insurance Program
To make that employees are adequately covered by health insurance like rising cost of
hospitalizations
PAG-IBIG (Pagtutulungan sa Kinabukasan, Ikaw, Bangko, Industriya at Gobyerno) RA.
9679
A mandatory contribution rates for all mandatory covered members including OFW's are
stated as follows: for those with monthly compensation of P1, 500 and below, the employee
share is 1% of their salary and 2% from their employer while for those with over P1, 500
monthly compensation. The share is 2% for both the employees and the employer. The fund
offers its members various benefits such as savings, short term loans, and access to housing
programs.
Business Process Outsourcing (BPO) in the Philippines and HR
Outsourcing is a proven tool that can help companies improved service and better
manage their operating cost and cash flows BPO is an economic force that propels our country
to be considered as one of the emerging global leaders in the BPO industry
5. HR Departments' Organization Charts and Structures
Organizations historically divided their managers into line management and staff
management, and HRM was traditionally considered to be a staff function. Line manager were
responsible for the production of goods and services while staff managers were responsible for
an indirect or support function that would have cost but whose bottom line was less direct.
Centralization
- a centralized strategy locates the design and administration responsibility in a single
organizational unit.
Decentralization
- gives each unit the responsibility to design and administer its own personnel system.
Organization Chart
Organizations can use charts for a number of purposes: For example, HR administrative, as
well as chief executive officers, corporate planners, marketing representative, and others, can
use such organization charts to:
 Design their department or division
 Monitor reporting relationship
 Gain access to information about newly created job sites, staff duties, and reporting
relationships
 Find out how leading agencies organize their management teams and workforces
 Assess industry patterns
 Examine the competition
 Use in business presentation and to facilitate placement decision

II. JOB ANALYSIS

Job analysis is conducted to determine the responsibilities inherent in the position as well as
the qualifications needed to fulfill its responsibilities. It is essential when recruiting to locate an
individual having the requisite capabilities and education
1. Importance of Job Analysis
Successful HRM practices can lead to outcomes then create competitive advantage.
When properly performed, job analysis can enhance the success of HRM practices by laying the
required foundation.
2. Definition of Different Job Terms
a. Position - consist of the responsibility and duties performed by an individual
b. Job - group of positions that are similar in their duties. In some instances, only one
position may be involved, simply because no other similar position exists.
c. Occupation - group of jobs that are similar as to kind of work and are found throughout
an industry
d. Job analysis - the procedure used for determining/collecting information relating to the
operations and responsibility of a specific job
e. Job description - organized, factual statements of the duties and responsibilities of a
specific job
f. Job specifications - a written explanation of the minimum acceptable human qualities
necessary for effective performance of a given job.
g. Job classification - groupings of job on some specified basis such as kind of work or pay.
h. Job evaluation - systematic and orderly process of determining the worth of a job in
relation to other jobs.
i. Task - coordinated and aggregated series of work elements used to produce an output.
j. O*Net - online resource which has replaced the Dictionary of Job Titles; list of job
requirements for a very large number of jobs.
k. Functional job analysis - a task-based or work-oriented technique describing the work
performed.
l. Position analysis questionnaire (PAQ) - an example of a job analysis method
Job analysis provides information in several cases including the following:
 How much time is taken to complete basic tasks?
 How are task grouped together into a job?
 How can a job be designed so that employee performance can be improved?
 What kind of skills is needed to perform a given job?
 What kind of person is best suited to perform a certain type of job?
3. Specific Information Provided by Job Analysis
1. Job title and location
2. Organizational relationship
3. Relation to other jobs
4. Job summary
5. Information concerning job requirements
4. Uses of Job Analysis Information
1. Preparing the job description and writing the job specifications
2. Recruitment and selection
3. Determining the rate of compensation
4. Performance appraisal
5. Training
6. Career planning and development
7. Safety
8. Labor relations
5. Methods Used in Job Analysis
 Interview  Questionnaires
 Observation  Employee recording/use of log book
6. Steps in Conducting Job Analysis

STEP 1 STEP 2 STEP 3 STEP 4

Examine the total

→ Determine
→ Select job
→ Collect data by
organization and the the purpose to be using acceptable
fit of each job. of JA. analyzed. JA techniques.
↓

STEP 7 ↓
Use information from Steps 1-6
STEP 6
for Job Design, Planning, STEP 5
←
Selection and Training, ← Prepare
←
Recruitment, Performance JS. Prepare JD.
Appraisal, Compensation, etc.

7. Writing the Job Specifications

The original purpose of job description is to establish the level of difficulty of a specific
position for the purpose of establishing pay levels. One way to begin creating role and
competency description statement is to cluster related skills like customer service competency
(a) anticipate customer needs (b) deliver on time (c) show care and concern (d) help customer
evaluate needs. These facts must be organized in some fashion in order to be usable.

Suggested contents are given as follows:

1. Date written 5. Working relationship
2. Job status 6. Authority of incumbent
3. Job identification 7. Competency requirements
4. Job summary 8. Working conditions

Below is an example of a job description:

Job Title: HR Manager

Reports to: Vice President of HR
Supervises: HR Assistant, Compensation, Analyst, and Benefits
Clerk
Coordinates with: All department managers and executive management

Outside the company: Recruitment agencies, DOLE, union representative

 Below is an example of a specification:

Position Title: Chief Accountant

Division /Department: Accounting Department
Reports to: General Manager
Coordinates with: All Department Heads
Supervises: All Accounting Personnel

SUMMARY OF DUTIES
Apply principles of accounting to analyze financial information and prepare financial reports by
compiling information ,preparing profit and loss statements, and utilizing appropriate accounting
control procedures
PRIMARY RESPONSIBILITIES
1. Prepare profit and loss statements and monthly closing and cost accounting reports
2. Compile and analyze financial information to prepare entries to accounts, such as
general ledger accounts, and documents business transactions
3. Establish, maintain, and coordinate the implementation of accounting and accounting
control procedures
4. Analyze and review budgets and expenditures
5. Monitor and review accounting and related system reports for accuracy and
completeness
6. Prepare and review budget, revenue, expense, payroll entries, invoices and other
accounting documents
7. Analyze revenue and expenditure trends, recommend appropriate budget levels, and
ensure expenditure control
8. Explain billing invoices and accounting policies to staff, vendors, and clients
9. Resolve accounting discrepancies
10. Recommend, develop, and maintain financial database, computer software systems,
and manual filings systems
11. Supervise the input and handling of financial data and reports for the company’s
automated financial systems
12. Interact with internal and external auditors in completing audits
13. Perform other duties as maybe assigned by the general manager from time to time
KNOWLEDGE AND SKILL REQUIREMENTS
1. Knowledge of finance, accounting, budgeting, and cost control principles including
generally accepted accounting principles; knowledge of financial and accounting
software application; ability to analyze financial data and prepare financial reports,
statements, and projections. This is normally acquired through a combination of the
completion of a bachelor’s degree in Accounting, three to five years of accounting
experience, and successful completion of CPA exams.
2. Work requires willingness to work a flexible schedule.
WORKING CONDITIONS
Working conditions are normal for an office environment. Work may require occasional
weekend and/or evening.

8. New Jobs and Hot Jobs for the 21st Century

. Jobstreet Philippines, an online recruitment center, gives a sense of what is happening
in the job market. There are several new titles including chart/board coordinator, configuration
manager, device driver engineers, network administrator, network engineer, page publisher,
web developer and web publisher, java programmer, e-business manager, and e-consultant to
name a few. Rapid advances in computer and telecommunications technology are the main
drivers behind the emergence of new job titles.
9. Writing the Job Specifications
 Job Specification uses the job to define the kind of human traits and experience
required to do a specific job, it also identify the minimum acceptable qualifications
required for an employee to perform the job adequately.
The information contain in a job specification usually includes the following basic
criteria:
 Knowledge  Personal Characteristics
 Skills  Credentials
 Ability  Technical Requirements

III. RECRUITMENT OF EMPLOYEES

1. Recruitment on the Internet

We now have the ability to do virtually everything from our computers and recruiting is
one of them. Using the Internet is the fastest, simplest, and most convenient or most effective
way to reach hundreds of thousands of qualified candidates, 24 hours a day, and 7 days a
week.
Picking Employment Sites
a. Job Sites by Location – job sites with a geographic focus to help you find an
appropriate local resource for your postings.
b. Employment Super Sites – provide a visibility in all kinds of media
c. Specialty Employment Sites – sites that provide category listing depending on the
vacant position.
Online Job Search for Application
 Identify the job, employers, and locations that interest you, and then find out where you
can submit your application based on your qualifications.
 Read the “Know BEFORE You Go (or Apply)” series of articles by Job-Hunts’ research
expert Parmelee Eastman about choosing the best potential employers and the
gathering necessary information to prepare a cover letter.
 You need to create your resume, learn how to complete online forms, and customize
your LinkedIn Profile or your personal resume Web page with “keyword” for recruiters to
find.

2. Tips to Job Applicants to Avoid Illegal Recruitment

 Do not apply at recruitment agencies not licensed by POEA or the Philippine Overseas
Employment Administration.

 Do not deal with licensed agencies without job orders

 Do not deal with any person who is not an authorized representative of a licensed
agency.

 Do not transact business outside the registered address of the agency

 Do not pay more than the allowed placement fee

 Do not pay any placement fee unless you have a valid employment contract and an
official receipt.

 Do not be enticed by ads or brochures requiring you to reply to a post office (P.O) box,
and to enclose payment for processing of papers.

 Do not deal with training centers and travel agencies, which promise overseas
employment.
  Do not accept a tourist visa.

 Do not deal with fixers.

3. Recruitment Process/ Recruitment Plan

1. Formulating a recruiting strategy

Comparison of Promotion from within INTERNAL HIRING vs. EXTERNAL HIRING

Internal Hiring

Advantages Disadvantages
Promotes inbreeding (narrowing of thinking
Provides greater motivation for good and stale ideas
performance

Provides greater promotion opportunities for Creates political in-fighting and pressures to
present employees compete

Improves morale and organizational loyalty Requires a strong management development

program

Enables employee to perform the new job with

little loss of time
Creates a homogenous workforce
Familiar with the organization on how to
operates

External Hiring

Advantages Disadvantages

Provides new ideas and new insights Loss of time due to adjustment

Allows employee to make changes without Destroys incentive of present employees to

having to please constituent groups strive for promotion

Does not change the present organizational No information is available if the applicant can
heirarchy blend with rest of the group

2. Searching for job applicants

3. Screening applicants

4. Maintaining an applicant pool

4. Sources of Applicants

A. Internal Sources

B. Referrals

C. External Sources

 Job advertisement  Employment centers

  Campus recruitment  Job fairs/special events
recruiting
 Internships
 Online recruitment/e-recruitment

Alternatives on Recruiting

 Subcontracting/outsourcing  Temporary help

 Overtime  Employee leasing

5. Writing a Resume

Curriculum vitae are a document that describes your qualifications, including but not
limited to your profile, goals, skills, education, and professional experience. In writing resume,
you need to use words that would highlight what you do best since your resume is the first step
in ”marketing” yourself to your perspective employer.

Different parts of your Resume

a. Name, Address, and Telephone Number

DR. CRISPINA RAFOL CORPUZ

Ambid St. Biluso, Silang, Cavite
09228155973
b. Job objective Fenny104@yahoo.com
crcorpuz@dlsd.edu.ph
Seek a position as an HR manager using my Ph.D. in HRM and proven track record in
human resource management in both industry and the academe

Seek a position as an advertising sales representative using ,y academic background,

proven sales skills, and retail experience

c. Education

University of Santo Tomas

Ph.D in HRM GPA: 1.25

MS in HRM GPA: 1.5

Coursework: compensation and Benefits Administration, Training and Development,

Performance Appraisal, Labor Relation, Career Development, Management Research,
Cooperative Management.

Honors and Awards Receive:

Magna Cum Laude (Ph.D.HRM,UST)

College and Dean List Scholar (UP Baguio)

Regional Finalist, Metrobank Outstanding Teacher

CHIMES Awardee, De La Salle University-Dasmarinas

d. Skills
Prepared the Personnel Policy Manual of Caffmaco and the Personnel Policy Manual for
Silang Municipal Employees. Prepared a textbook in Human Resource Manual for
Cooperatives

Organizational Ability: Actively involve in arranging and initiating leadership and research
conferences: responsibilities include massive information campaign to ensure maximum
attendance, preparing and coordinating the different activities involved.

e. Work experience

Employment Background: Caffmaco Feeds Inc. Personnel Officer

Duties: Prepared the personnel policy

Updated the company’s job description

Initiated training programs to enhance the skills of the employees

Revised and updated the performance appraisal methods and the salary scale by
means of conducting wage and salary survey

f. Communication Skills

Reinforced and interpreted company procedures and policies to newly hired employees
during orientation

g. References

Web Sites foe Philippine and Overseas Jobs

esljobsworld.com

Excellent web site for Filipinos to find English teaching jobs abroad

WorkAbroad.ph

Overseas jobs for Filipinos posted by Philippine recruitment agencies licensed by POEA

poea.gov.ph

Official web site of the Philippine Overseas Employment Administration which contains
overseas job vacancies

jobstreet.com.ph

You can expand your job search out of Philippines by going to other JobStreet sites

bestjobsph.com

A Philippine job listing site with mostly local, but also overseas jobs

IV. SELECTION OF EMPLOYEES

1. Why Selection Process is Important
 Performance always depends in part on employees
 It is costly to recruit and hire employees
 Company objectives are better achieved by workers who have been properly
selected based on their qualification
 An incompetent worker is a liability to the company causing direct losses in terms
of substandard performance and low productivity, and sometimes a potential
source of problems to management, his/her coworkers, and customers
 Applicants have varying degree of intelligence, aptitudes, and abilities
 Labor laws protect employee making it difficult to terminate or dismiss an
incompetent employee
2. Selection Process
a) Define the job before hiring an employee
b) Review application form and credentials carefully
 Employment gaps
 Spelling, grammar, and punctuation
 Evidence that a career has gone backwards or plateaued
 Failure to follow directions
 Failing to include a cover letter
Resume
A resume starts with a job description or role profile so you know broadly what
the job entails. It should show details about the qualifications and experience of the
candidate you seek to fill the job
Cover Letters
A cover letter saves you time, connects the candidate’s relevant experience to
the advertised job, and provides insight into the candidate’s relevant experience to the
advertised job, and provides insight into candidate skills, characteristics, and experience.
Employment Application
It collects consistent information in a uniform format from every applicant.
c) Employment Interview
Preparation to the interview
 Develop a list of core question which will be asked of all candidates interviewed
 Reviewing the requirements for the position and comparing them with the
applications and resumes of candidates
 Taking note of areas in the person’s job history where clarification is needed
Interview Format
 The same basis questions relating to the job should be asked
 Candidates should be allowed to see the workplace if that is relevant
 The essential functions and other requirements for the position should be
described of each candidate
 If at all possible, all candidates should be interviewed by the same people
d) Employment Testing
e) Background investigation/reference checking
Personal References
School Records
 Previous Employment
f) Final Interview
g) Selection Decision
h) Physical examination
i) Final employment

STEP 1 STEP 2 STEP 3 STEP 4

Job Analysis to Preliminary Employment Employment Testing
Prepare Job Screening, Interview
Description and Application Blank,
Job Specification and Interview

STEP 5 STEP 6
STEP 7 STEP 8 STEP 9
Reference Checks Final Interview
Selection Physical Placement on
Decision Examination the Job

V. TRAINING AND DEVELOPMENT OF EMPLOYEES

1. Employee Orientation
Noe et al. (2007), in the book Fundamentals of Human Resource Management, it said that
employees today receive their first training during their first day on the job. This is the orientation
of employees for them to become familiar with their assigned tasks, the organization’s practices’
policies, and procedures.
Regardless of the type of organization, orientation should be conducted at two levels:
1. Organizational/overview orientation
2. Departmental and job orientation
Training Defined
It is a learning process that involves the acquisition of knowledge, sharpening of skills,
concepts, rules, or changing of attitudes and behaviors to enhance the performance of
employees.
Objectives of Training and Development
 Improve productivity and the quality and quantity of output
 Effectiveness in the present job
 Create more favorable attitudes such as loyalty and cooperation
 Help employees in their personal development and advance by helping them acquire
additional qualifications for a better job
 Help organization respond to dynamic market conditions and changing customer
demands
 Satisfy human resource planning requirements
Using Training to Deal with Competitive Challenges
 Global challenge
 Quality challenge
 High performance
2. Training Process
 Training Needs Analysis (TNA)/Needs Assessment
Refers to the process used to determine if training is necessary. It identifies specific job
performance deficiencies and increases productivity.
Five Methods Used to Gather Assessment Information
 Interviews
 Survey questionnaire
 Observation
 Focus groups
 Documentation examination
Needs Assessment Process
 Organizational analysis
 Person/performance analysis
 Task analysis
Steps in Using Performance Analysis to Determine Training Needs
Appraise employee performance to determine how employees are doing and
how they should be doing their assigned task to take note of behavior
STEP 1
discrepancy or lack of experience.
STEP 2 Determine cost for value of correcting identified behaviors discrepancy to find
out if it is worth the cost, time and expenses involved.
STEP 3 It is important to determine if the employee could do the expected job if he /
she wanted to or he / she cannot do the job because of lack of skills.
STEP 4 Performance standard should be clearly communicated to improve
performance of those who cannot do the job.
STEP 5 Eliminate obstacles by determining other factors that can hinder performance
such as time, equipment and other people.
STEP 6 Practice can help to improve performance.
STEP 7 If performance analysis indicates the need to acquire skills, training is a
viable consideration.
STEP 8 In redesigning through job enrichment, job simplification maybe the best
solution.

STEP 9 Last resort is either transfer or termination if performance is still failure after
exhausting all means to help the employee improve his / her performance.

Designing the Training Programs/Training Objectives

 Instructional objectives
 Organizational and departmental objectives
 Individual and growth objectives
Importance of Training Objectives
 Provides the clear guidelines and develops the training program in less time because
objectives focus specifically on needs
 It tells the trainee what is expected out of him/her at the end of the training program
 It becomes easy for the training evaluator to measure the progress of trainees because
the objectives define the expected performance of trainees
Training Design – requires close scrutiny of the trainees and their profiles. Age, experience,
needs, and expectation of the trainees are some of the important factors that affect training
design.
  Validation
Introduce and validate the training before a representative audience.
 Implementation
Factors that should kept in the mind while implementing a training program:
 The trainer
 Physical setup
 Establishing report with participants
 Reviewing the agenda
Training Evaluation
Ensures that candidates are able to implement their learning in their respective workplace, or
to the regular work routines
Purposes of Training Evaluation
 Feedback
 Research
Process of training evaluation
Before the Training
The learner’s skill and knowledge are assessed before the training because this can help
determine whether the actual outcomes are aligned with the expected outcomes of training.
During the Training
This is the phase at which instruction is started. This usually consists of short tests at
regular intervals.
After the Training
The phase is designed to determine whether training given had the desired effect at
individual departments and organizational levels.
One can also measure the success of the training program according to:
 Reaction of the learner  Behavior of the learner
 Learning level  Results
3. Training Option
There are 4 training options that an organization can consider before providing training to
Independent their employees:
 Outsourcing  Product-related Training
 Internal Training  Professional
4. Outsourcing the Training of Employees
Outsourcing is a competent tool that ensure and offers convincing return on investment
(ROI). It also subtracts the risk in setting up a complicated function that is not a core
competency.

Top 20 Training Providers

S.No Company Name S.No Company Name

1 Accenture Learning 11 Aptech Worldwide Corporation
2 RWD Technologies 12 Convergys
3 Geo Learning 13 Global Knowledge
4 General Physics 14 Intrepid Learning Solution
 5 NIIT, Ltd 15 Innovatia
5 Element k 16 Skill Soft
6 Adayana 17 Lionbridge

7 IBM Learning Solutions 18 Experius

8 Delta College 19 Knowledge Proof
9 Raytheon Professional 20 Development Dimensions
Services International
10 Affiliated Computer Service

5. Training Methods
There are various methods of training, which can be divided into cognitive and behavioral
methods.
Cognitive methods dwell on giving theoretical training to the trainees.
Various methods that come under cognitive approach are:
Lecture/Discussion Approach
Main Features:
 Inability to identify and correct misunderstanding
 Less expensive
 Can reach large number of people at once
 Knowledge building exercise
 Less effective because lectures require long periods of trainee inactivity

Variations of the Lecture Method

Method Description
Standard Lecture Trainer talks while trainees listen and absorb information
Team Teaching Two or more trainees present different topics or alternative views of
the same topic
Guest Speakers Speakers visit the season to a predetermined time period.
Panel Two or more speakers presented information and ask questions
Student Presentation Group of trainees present topics to the class

Demonstration/Hands-on Method
Main Features
 Demonstrates the task by describing how to do, while doing
 Help the trainees focus their attention on critical aspects of the task
 Explains why procedure should be carried out in a certain way
Computer-based Training (CBT)
The computer analyzes the responses and provides feedback to the trainee. CBT was one of
the first new technologies to be used in training.
Virtual Reality
Is a training method that puts the participant in a 3-D environment. This type of environment
is created to give the trainee an impression of physical movement in an environment.
Devices include the following:
  Headset  Treadmill
 Gloves  Sensory devices

Features of Virtual Reality (VR) System

 It is poorly understood and requires technical understanding
 It is expensive
 It is time consuming
 It is flexible to nature
 It does not incur travelling, lodging, or food cost
 It requires excellent infrastructure
Behavioral Methods
Are more of giving practical training to the trainees. These methods are best used for skills
development. The various methods that come under behavioral approach are:
 Games and Simulations
 Case Studies and Role Playing
 On-the-Job Training
Advantages of OJT
 No special space or equipment required
 Provides immediate transfer of training
 Allows employee to practice what they are expected to do after their training end
Techniques for the on-the-job development
 Coaching/Mentoring
 Job Rotation
 Job instruction Technique
Distance Learning or E-Learning in the Philippines
A study conducted by the group of Arimbuyutan (2007) noted that e-learning can still be
regarded as new concept in the Philippines. Based on the study, the first to adopt online
corporate training methods in the Philippines are expected were the multinationals followed by
local corporations that include the Philippine Long Distance Telephone Company (PLDT),
Manila Electrical Company (MERALCO), the Abiotiz Group, and Unilab.
Benefits of E-Learning
 Reduced logistic s and administration cost, compared to training under conventional class
mode
 Wider variety of programs offerings since courses can be recycled or adjusted to form a
new module
 Availability of courses at all time
Problems in the Use of E-Learning
 Poor telecommunication infrastructure
 Cost of appliance
 Cost of services
 Teacher’s fear of the technology because of limited know-how
 Maintenance of ICT resources and lack of technical staff
 Limited availability of education software and courseware

VI. PERFORMANCE REVIEW APPRAISAL

 Performance review in the ongoing process of evaluating and improving employee’s
performance. It is a process by which an individual’s work performance is assessed and
evaluated
Performance – is measured in terms of result.
Performance review – or evaluation, refers to a systematic description and review of an
individual’s job performance.
Performance management – an ongoing communication process, undertaken in partnership
between an employee and his/her immediate supervisors. It involves establishing clear
expectations and understanding about the following:
The essential job functions the employee is expected to do
How the employee’s job contributes to the goals of the organization
What “doing the job well” means in concrete terms
How the employee and supervisor will work together to sustain, improve, or build on
existing employee performance
How job performance will be measured
Identifying barriers to performance and removing them
Refers to the total system gathering information, the review and feedback to the individual,
and storing information to improve organization effectiveness
1. Why Measure Performance
 Managers cannot manage and define what is expected and gives feedback and
recognition without defining the basis or performance measures
 On the part of the employee, he/she cannot improve on what he/she is supposed
to do without the necessary data before and after to see if performance is
actually improving
 Creating high performance requires a definition of clear goals so you will know it
when you see it.
 Pay for performance requires metrics
2. Early Approaches to Performance Appraisal
 Focusing on the employees past performance
 Focusing on the employees development
Common Flaws Identified with Performance Review System Design
 Organizations limit performance review to make employees accountable for past
endeavor
 Typing performance review to employee salary review

3. Objectives of Performance Appraisal

 Provides information upon which promotion, transfer, demotion, layoff, discharge,
and salary decisions can be made
 Provides an opportunity for the supervisor and his/her subordinates to review and
identify their strengths and weaknesses or work-related behavior
 It forms the basis in identifying the training needs of employees as well as
evaluating the success of the training, thus, development initiatives are not based
on opinions rather on results
 It helps in the firm’s career planning process because it provides a good
opportunity to review the person’s career plans in light of his/her exhibited
strengths and weaknesses
 It allows easy monitoring and supervision
  Helps evaluate individuals share
relative to the team’s contribution in achieving the organizational goal
 Provides information to evaluate effectiveness of selection and placement devices
4. Performance Criteria
Most people agree that quality and quantity of performance are important dimensions to
evaluate but there is less agreement about traits such as appearance, initiative, enthusiasm,
and the like.
3 Criteria in construction of Performance Evaluation
 Relevance
 Reliability
 Freedom from contamination
Indicators or Matrix that Can Help Measure Employee Performance

QUANTITY QUALITY CREATIVITY ABSENTEEISM/

TARDINESS
TIMELESS

COST- ADHERENCE GOSSIPING AND OTHER PERSONAL

EFFECTIVENESS TO POLICY PERSONAL HABITS APPEARANCE

5. Who Should Evaluate Performance?

 Managers/Supervisor Appraisal  Customer/Supplier
 Self-Appraisal  Team Appraisal
 Subordinates Appraisal  Assessment Center
 Peer Appraisal  360-Degree or “Full-Circle” Appraisal
Sources of Data Appraisal
 Production Data
 Personnel Data
 Judgment of Others

6. Performance Appraisal Methods

Multiple Person Evaluation Methods
 Ranking Method
Ranking the employee from the most efficient to the least capable on each trait or quality
to be used in judging the employees performance or just simply ranking the employee
from the best to worst
 Paired comparison method
Consists of asking an evaluator to consider only two individuals at one time to decide
who is better
 Force distribution
Forced ranking is a method of performance appraisal that ranks employees through
forced distribution
Individual Evaluation Method
 Critical Incident Method
 A method in which the manager writes down positive and negative performance
behavior of employees throughout the performance period
 Checklist and weighted Checklist Method
This method describe a performance appraisal method where the rater, familiar with the
jobs being evaluated, prepares a large list of descriptive statements about effective and
ineffective behavior on jobs
 Graphic Rating scales
 Behaviorally Anchored Rating Scales (BARS)
 Management by Objective (MBO)
 Multi-rater Assessment or the 360-degree Performance Feedback
Possible advantages of this method
a) Provides evaluation from different stakeholders which may help reduce performance
appraisal errors and biases
b) Increase employee and possibly customer involvement
c) Increases management responsiveness to employee concerns
d) Its statistical record provides good documentation for possible legal action

7. Seven Tips for Creating a World-class Appraisal System

 Design the form first  Train all appraises
 Build your company’s values into your  Orient all appraises
form
 Use the results
 Assure ongoing communication during
 Monitor and revise the program
development
Performance Appraisal
 Halo Effect  Leniency/Harshness/Strictness Error
 Recency Effect  Central Tendency
 Previous performance Bias
8. Feedback or Appraisal Interview
An interview in which the supervisor and subordinates review the appraisal and make
plans to remedy deficiencies and strengths.
Annual discussion of performance should include:
 Review of overall progress
 Discussion of problems that were encountered
 Discussion of sources of ineffective performance
 Agreement about how performance can be improved
 Discussion on how current performance fits with long-range career goals
 Specific action plans for the coming year and how to reach short and long term
objectives

VII. CHANGES IN THE PERSONNEL STATUS

1. Promotion
Serves as encouragement and inspiration to other employees to exert their
maximum effort.
Approaches to Recruit Employees for Promotion
 Closed promotion system – the responsibility of the supervisor to identify promotable
employees for the job to be filled.
 Open promotion system also known as job posting – enhance participation and the
achievement of equal opportunity goals.
Criteria used in Promoting Employees
 Seniority – length in service
 Straight seniority the length of service of an employee is the sole basis for determining
who gets the promotion
 Qualified seniority the more competent employee as compared to another employee with
longer service will be the one promoted
 Current and past performance – promotion is based on previous performance and
evaluation
“Unofficial” Promotion Criteria
 Personal characteristic
 Nepotism
 Social Factors/Friendship
2. Demotion
The reassignment of an employee to a lower job involving fewer skills and
responsibilities
Reasons behind Demotion
 Reorganization, company merger, or business reverses resulting to fewer jobs
forcing some employees to accept demotion
 Inability of employees to perform their job based on acceptable standards
 As a form of disciplinary action or a way to handle disciplinary problems, also
viewed as a routine form of punishment for wrongdoing
 Tool used to inform the employee concerned that he or she is beginning to be a
“liability” rather than an “asset” to the organization
3. Transfer
The reassignment of an employee to a job with similar pay, status, duties, and
responsibilities or to another work shift, or from one unit to another in the same company
just like being an invoice clerk to a sales clerk.
Reasons for Transfer
 Due to job dissatisfaction
 In conflict with supervisor or coworker
 For employees convenience
 Organizational needs may require transfer due to a business expansion,
retrenchments, erroneous placement, or to meet departmental requirements
during peak season
 For an employee to be better suited or adjusted to the job (remedial transfer)
4. Employee Separation
Employee or the employer decides to terminate the employment
Termination of Employment in the Philippines – “employee’s departure from the job”
5. Governing Laws Regarding Separation from the Service
 Art. 279. Security of tenure. The employer shall not terminate the services of an
employee except for a just cause or authorize cause can and only due process of
law.
 Art. 282. Termination by the Employer (Dismissal)
 An employer may terminate an employment for any of the following causes:
 Serious misconduct or willful disobedience by the employer of this lawful order of
his employer or representative in connection with his work
 Gross and habitual neglect by the employee of his duties
 Fraud or willful breach by the employee of the trust reposed in him by his
employer or duly authorized representative
 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
representatives
 Other causes analogous to the foregoing
 Art. 283. Closure of Establishment and Reduction of Personnel/Layoffs. The
employer may also terminate the employment of any employee due to the
following authorized causes:
 Installation of labor-saving devices
 Redundancy
 Retrenchment to prevent losses
 Closure or cessation of business
 Art. 284. Disease as Ground for Termination
 Art, 285. Termination by Employee (Resignation).
 In view of the provision on involuntary servitude, an employee is given the right to resign
under Art. 285. of the Labor Code. The provision recognize two kinds of resignation –
without cause and with cause.
 If the resignation is without cause, employee is requires to give 30-day advance written
notice to the employer, to enable the employer to look for a replacement.
 The employer upon whom no such notice was served may hold the employee liable for
damages.
 An employee may put an end to the relationship without serving any notice on the
employer for any of the following causes.
 Serious insult by the employer or his representative on the honor and person of the
employee
 Inhuman and unbearable treatment accorded the employee by the employer or his
representative
 Commission of a crime or offense by the employer or his representative against the
person of the employee or any of the immediate members of his family
 Other causes analogous to any of the foregoing
Article 280. SECTION 9. Termination pay. An employee shall be entitled to termination
pay equivalent to at least one month’s salary for every year of service, a fraction of at
least (6) months being considered as one whole year in case of termination due to
installation of labor-saving devices or redundancy.
SECTION 10. Basis of termination pay. Termination pay of an employee shall be
based on his latest salary rate, unless the same was reduced by the employer to defeat
the intention of the Code, in which case the basis of computation shall be the rate before
its deduction.
 Art. 287. Retirement
An employee upon reaching the age of sixty (60) years or more, but not beyond
sixty-five (65) years which is the compulsory retirement age, who has served at
least five (5) years, may retire and shall be entitled to retirement pay equivalent
to at least one-half (1/2) month salary for every year of service, a fraction of at
least six (6) months being considered as one whole year.
 Article 280. SECTION 14. Retirement benefits. A established employer policy shall be
entitled to all the retirement benefits provided therein or to termination pay equivalent to at least
one-half month salary for every year of service, whichever is higher, a fraction of at least six (6)
months being considered as one whole year.
For the purpose of computing retirement pay, “one-half month salary” shall include all of
the following:
a) Fifteen (15) days salary based on the latest salary rate
b) Cash equivalent of 5 days service incentive leave salary rate
c) One-twelfth (1/12) of the thirteenth-month pay
The computation should be as follows:
(1/12  365/12) = 0.083  30.41 = 2.52
Thus, “one-half month salary” is equivalent to 22.5 days.
Minimum retirement = daily rate  22.5 days  number of years in service
The retirement benefits under R.A. 7641 and R.A. 8558 are separate and distinct from
those granted by the Social Security System.
Contractual Employees – those hired on a temporary basis, that is, for a “term” or “fixed
period” are not regular employees, but are “contractual employees”. Consequently, there is no
illegal dismissal when their services are terminated by reason of the expiration of their contracts.
Job Service/Labor Contracting – exists when a principal employer enters an agreement with a
contractor or subcontractor for the letter to perform a job or service.
Labor-Only Contracting – it is prohibited by the law. There is labor-only contracting where: (a)
the contractor or subcontractor merely recruits, supplies, or places workers to perform a job,
work, or service for a principal; (b) he does not have substantial capital or investment to actually
perform the job, work, or service under its own account and responsibility: (c) employees
recruited, supplies, or placed by such contractor or subcontractor are performing activities which
are directly related to the main business of the principal.

6. Types of Employment
 Regular Employment
Employee has been engaged to perform activities which are necessary in the usual
business or trade of the employer except where the employment has been fixed in a
specific project or undertaking, the completion or termination of which has been determined
at the time of the engagement or where the work or service to be performed is seasonal in
nature and the employment is for the duration of the season.
 Probationary Employment
He/she may be terminated only for a just cause or when authorized by existing laws, or
when he/she fails to qualify as a regular employee in accordance with reasonable
standards prescribed by the employer.
 Part-time Employment
Refers to workers employed to render work for a period less than the normal six working
days in a week.
 Commission-Paid Employment
When workers are paid depending on the income they brought for their employer, they earn
a percentage of an income they derived for their employer.
 Casual Employment
They may be hired for as temporary replacements of on-leave regular employees or are
hired during peak seasons when more workers are needed.
 Contractual Employment
Is the state when workers are employed at any time but for a definite period not exceeding
six (6) months.
VIII. COMPENSATING HUMAN RESOURCES

1. Objectives of Compensation
A set of rewards that organizations provide to individuals in return for their willingness
to perform various jobs and tasks within the organization. It also includes various
elements such as base salary, incentives, bonuses, benefits, and other rewards. Base
wages and salaries are the hourly, weekly, or monthly pay that employees receive in
exchange for their work.
The objective of compensation is to create a system of rewards that is equitable to
the employer and employee alike

Compensation should be:

Adequate to meet the needs of the employees and to acquire and retain qualified
personnel

Equitable

Balanced

Cost Effective

Secure

Incentive-providing

Acceptable to the employee

Compliant with legal

regulation
 2. Main Components of Compensation
a) Base Pay – the hourly wage or weekly/monthly salary earned
b) Premium Pay – refers to the additional compensation required by law for work
performed within eight (8) hours or nonworking days, such as rest days and
special days.
c) Base Pay Progression – movement of base pay overtime, from year to year
d) Variable pay – incentive or bonus pay that does not fall onto base pay; such as
earnings may be based on performance against preset goals (incentives)
individual, team, group, or organizational level.
Wages vs. Salaries
Refer to hourly compensation paid to skilled and unskilled workers or those performing
blue-collar jobs, with time as the basis in the computation.
Salary, is an income paid to an individual not on the basis of time but on the basis of
performance. Salaries are usually given to professional and managerial employees or those
who are performing white-collar jobs.
Benefits and perquisites or perks – compensation is also paid in the form or indirect cash
or benefits that have monetary value.
Indirect compensation – quality of work life. Total rewards also include a broad array of
nonmonetary, but extremely important, rewards that we place under the general umbrella of
quality of work life. These rewards include:
a) Organizational culture
b) Intrinsic values
c) Career opportunities

3. Determining Pay Rates

The key here is the establishment of different pay ranges for the various jobs within
the organization. A pay range for a given job establishes a range of permissible pay, with
a minimum and maximum. Establishing pay ranges involves two basis phases:
a) Determining the relative worth of the different jobs to the organization (thereby
ensuring internal equity)
b) Pricing the different jobs (thereby ensuring external equity)
Job evaluation is the primary method used to determine the relative worth of jobs to the
organization. Wage surveys represent one of the most commonly used methods for pricing jobs.
The following are some of the basis determinants of pay.
I. External Factor
A. Market Factors
 Supply and demand for labor
 Economic conditions and unemployment
B. Existing pay level in the community
C. Government regulations and laws, i.e., minimum wage law
II. Organizational Factors
A. Type of industry
B. Profitability and company’s ability to pay
C. Unionized or nonunionized
D. Size of the company
E. Capital or labor intensive
F. Value of the job – contribution to the company
 III. Job Factors
A. Skill
 Mental requirements
 Complexity of duties
 Personal qualifications needed
 Ability to make decisions, judgments
 Preparation for the job – education, training, and knowledge
B. Responsibility
 Money, commitments
 Decision making
 Supervision – work of others
 Quality of work
 Materials, equipment, property
 Confidential
C. Effort
 Physical and mental effort required
 Attention to details
 Pressure of work
D. Working conditions
 Job condition
 Physical hazards
IV. Individual Factors
 Performance, productivity
 Experience
 Seniority, length of service
 Potential, promotability
Establishing Pay Rates
1. Conduct the salary survey (aimed at determining prevailing wage rates) for the following
reason:
 Price benchmark jobs
 Majority of the positions found in the company are usually priced directly in the
marketplace
 To collect data on benefits so as to provide a basis on which to make decisions
regarding employee benefits
2. Determining the worth of each job through job evaluation
 Job evaluation refers to a systematic comparison done in order to determine the
worth of one job relative to another.

4. Job Evaluation Methods

A. Ranking Method
It involves ranking each job relative to all other jobs, usually based on overall
difficulty rather than on a number of compensable factors. The job ranking
method produces only an ordering of jobs and does not indicate the relative
degree of difference among them.
 Advantages Disadvantages
Simplest and easiest to explain Provides no yardstick for measuring the value
of one job relative to another
It is limited to smaller organizations where
employees are very familiar with various jobs
Takes less time to accomplish than
other methods The method is highly subjective

B. Job Classification or Job Grading Evaluation Method

This is a simple, widely used method in which jobs are categorized into groups
the groups are called classes, certain classes or grades or jobs are defined on
the basis of differences in duties, responsibilities, skills working conditions and
other job – related factors.
Advantages Disadvantages
Provides specific standards for Jobs are forced to fit into categories that are
compensation and accommodates not entirely appropriate and feelings of inequity
any changes in the value of can result
individual jobs
Can be constructed simply, quickly,
Problems may arise in deciding how many
and cheaply classifications there should be because too few
Easy to understand and explain to classes will make it difficult to differentiate job
employees value while to many classes make writing
definitions almost impossible

C. Point System
Requires evaluators to quantify the value of the elements of a job. For, example,
points are assigned based on skill required, physical and mental effort needed,
working condition, and amount of responsibility involved in the job.
Steps:
 Selection of key jobs
 Selecting compensable factors
Assigning Weights to Factors – weights are assigned to each of the factors, subfactors, and
degrees to reflect their relative importance.
Assigning Points to Specific Jobs
 Examine the job descriptions
 Determine the degree statement that best describes each subfactor for each
compensable factor
 Add the total number of points
Advantages Disadvantages
Can be easily interpreted and explained to Time consuming and costly to develop
employees because of its mathematical nature
Detailed and specific – jobs are evaluated on a
component basis and compared against a
Requires significant interaction and decision –
predetermined
making by the different parties involved in
The system is easy to keep current as jobs conducting job evaluation
change

Factor Comparison Method – this method is similar to the point method but slightly more
complex, and involves a monetary scale.
Examples of compensable factors are:
  Skills  Effort
 Responsibilities  Working condition
Steps:
1. Identify key (benchmark) jobs
2. Identify job factors
3. Rank jobs with respect to each of the factors independently
4. Assign monetary amounts to each job on each factor
5. Compare unique jobs with key jobs
6. Group similar jobs into pay grades
7. Price each pay grade
In conducting job evaluation, the following must be taken into consideration:
 Consistency  Representativeness
 Freedom from bias  Accuracy of information
 Correctability

5. Different Forms of Compensation

Employees can be paid for the time they work, the output they produce, or a combination of
these factors.
1. Payment for Time Worked
Pay is usually adjusted upward through six types of increases:
a) General – across-the-board increase for all employees
b) Merit increases – paid to employees based on some indicator of job performance
c) Cost of living adjustment
d) Reclassification increase
e) Level adjustment
f) Promotional increase
2. Incentive Forms of Compensation
Classification:
a) Piecework or payment by results
b) Individual incentive plans
c) Group incentives
3. Performance – based Rewards
Organizations want employees to perform at relatively high levels and need to make
it worth their efforts to do so.
4. Spot Bonuses
These are spontaneous incentives awarded to individuals for accomplishments not
readily measured by a standard.
5. Skill and Knowledge – based Pay/Competency – based Pay
This emphasizes the importance of an employee’s ideas, growth, and development.
6. Merit Pay Plans
Is usually awarded to employees on the basis of relative value of their contributions to
the organization.
7. Profit Sharing
 At the end of the year, some portion of the company’s profit is paid into a profit
sharing pool, which is then distributed to all employees.
8. Stock Ownership Plans
Employees are gradually given a minor stake in ownership of a corporation.
9. Executive Compensation
Base pay – guaranteed amount of money that the executive will get from the company
Incentive pay/executive perquisites or perks, e.g., stock plan – an incentive plan
established to give the company executives the option to buy company stocks in the
future at a predetermined fixed price.