HRM
HRM
HRM
SG1
DEFINITION AND SCOPE OF HUMAN RESOURCE MANAGEMENT
Human Resource Management (HRM)
is a collective term for all the formal systems created to help in managing employees and other
stakeholders within a company.
embraces a wide range of basic business ideas that include recruitment, selection, and training and
development, performance appraisal, compensation, safety and health, and other productivity
improvement programs.
Did you know that the term “human resource management” is a more recent term? Prior to the emergence
of the term was what we refer to as “personnel administration.” HRM came to the fore because of the so
many developments in the field.
Scope of what HRM means.
HRM has been defined in a variety of ways. Some adopt a process view or a functional approach to HRM
defining it in terms of its major functions and processes. But generally, HRM, according to one of your
readings, Mathis & Jackson (2008, p.4):
“… the systematic planning, development, and control of a network of interrelated processes affecting
and involving all members of the organization. In entails designing management systems to ensure that
human talent is used effectively and efficiently to accomplish organizational goals.”
(HRM Historical Breakthroughs)
Frederick W. Taylor pioneered the study of scientific management and eventually became known as the
father of scientific management. His work played a very important role in the advancement of the people
function in the early 1900s.
As Taylor was starting with his concepts about scientific management, other proponents were also employing
related principles of psychology in recruiting, selecting, training, and developing workers.
Moreover, the significant historical breakthroughs in HRM development was identified. These are (1)
Scientific Management, (2) Industrial Psychology, (3) Hawthorne studies, (4) Birth of Union Membership, (5)
Equal Employment Opportunity (EEO), (6) Labor force, globalization and strategic HRM function. (Lauron,
Doris P., 2019)
The Hawthorne Studies, which were conducted in the 1920s and 1930s at Western Electric, sparked an
increased emphasis on the social and informal aspects of the workplace. Interpretations of the studies
emphasized "human relations" and the link between worker satisfaction and productivity.
Importance of Studying Human Resource Management
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 (Ferrer, et.al.,
2015).
It is important to know that people will always be one of the company’s valuable assets. Hence, it is essential
for employees to understand HR management so they may gain a better understanding of their rights and
privileges as thinking, feeling, and doing individuals in an organization. Thus, studying HR management can
provide supervisors and leaders a competitive edge, especially in the aspect of recruitment. (Lauron, Doris P.,
2019)
Significant features of HRM.
According to V. P. Michael, the feature of the human resource management is to “reflect a new philosophy,
a new outlook, approach and strategy, which views an organization’s manpower as its resources and
assets and not as liabilities or mere hands”. Thus, human resource or manpower is considered today to be
the vital resource to develop the organization.
Human Resource Management is a continuing process of managing people and their activities at work while
squeezing out the best potential from them so they become productive individuals.
Some of the important features of HRM are:
1. It is prevalent in nature
2. It is dynamic
3. It is individually-oriented
4. It is employee-oriented
5. It is forward-looking
6. It is growth-oriented
The difference between Personnel Management and Human Resource Management.
In an organization, a group of people (employers and employees) work together with a common motive i.e. to
achieve their organizational goal, which is only possible when efforts of all the people in the organization
are efficiently managed.
Personnel management is an administrative function which exists in an organization to ensure right
personnel at right organizational activity. It is a traditional approach of managing employees which focuses
on adherence to policies and rules of organization. On the other hand,
Human resource management is a modern approach of managing people at workplace which focuses on
acquisition, development, utilization and maintenance of human resource. It combines physical energies and
their strengths with human competencies. In simple words, human resource management can be referred as
the policy which ensures right quality and quantity of human resource in the organization. Like personnel
management, human resource management is also concerned with planning, job analysis, recruitment and
selection, hiring and socialization, training, performance appraisal, rewarding, and compensation
management.
Personnel management is conventional and concentrates on supervisory administration of people. Human
resource management is a non-stop function directed at developing the potentials of employees. It is the
effective supervision and management of employees’ capabilities and other attributes.
SUMMARY
Human resource management is the organizational function of handling and managing one of the
most valuable assets of the organization.
Human resource management is composed of various HR practices that aid the firm in successfully
and reasonably leading its people in their journey during the three stages of the employment cycle.
Human resource management encompasses a wide range of basic business ideas that includes
recruitment, selection, training and development, appraisal of performance, compensation and
benefits administration, and other productivity improvement programs.
Frederick Taylor pioneered the study of scientific management and eventually became known as the
father of scientific management.
Personnel refers to the people manning the organization and managing these people is referred to as
personnel management. Human resource management is a non-stop function directed at developing
the potentials of employees.
Human resource management makes decisions about human resource development (HRD) plans,
while HRD depends on the decisions of HRM.
SG2
EQUAL EMPLOYMENT OPPORTUNITY (EEQ) AND THE LAW
Legal issues pervade almost all aspects of employment from the recruitment and selection of
applicants to their separation from employment. Several HRM laws tackle a variety of legal issues. Some may
be related to specific employment practices while others cover extensive HR concerns such as employment
discrimination in the areas of age, sex, race, and other factors.
Equal Employment Opportunity
Employment Discrimination is the unjust or prejudicial treatment of different categories of people
or thing especially on the basis of their age, race, gender, and religious beliefs.
Section 5 of Republic Act No. 7277, as amended, is hereby amended to read as follows:
"SEC. 5. Equal Opportunity for Employment. – No person with disability shall be denied
access to opportunities for suitable employment. A qualified employee with disability shall be subject
to the same terms and conditions of employment and the same compensation, privileges, benefits,
fringe benefits, incentives or allowances as a qualified able bodied person.
During recruitment, firms should be cautious not to infringe anti-discrimination laws. The goal of these laws
is to make certain that an individual who seeks employment is equal chances to vie for it.
Every employment opportunity seeks to guarantee that anyone, despite his age, color, diability, sex, religion,
national origin or race has an equal chance of employment based on his or her qualifications inventory.
Affirmative action goes beyond equal employment opportunity by compelling employers to take certain steps
to provide those in the protected group fair chance for employment. (Lauron, Doris P., 2019)
Sexual Harassment
Anti-Sexual Harassment Act, 1995 - Philippines
All forms of sexual harassment in employment, education or training environment are declared unlawful
(Section 2). Section 3 defines sexual harassment as a request for sexual favor, accepted or not, from an
employer, employee, manager, teacher, instructor, professor, coach, trainer or other persons who have
authority, influence or moral ascendancy over another.
Sexual harassment is committed when such a favor is demanded in return for employment or promotion, or if
the refusal to grant such a favor results in the impairment of an employees’ rights, privileges or employment
opportunities.
It is unlawful to harass a person (an applicant or employee) because of that person's sex. Harassment can
include "sexual harassment" or unwelcome sexual advances, requests for sexual favors, and other verbal or
physical harassment of a sexual nature.
Harassment does not have to be of a sexual nature, however, and can include offensive remarks about a
person's sex. For example, it is illegal to harass a woman by making offensive comments about women in
general.
Both victim and the harasser can be either a woman or a man, and the victim and harasser can be the
same sex.
Although the law doesn't prohibit simple teasing, offhand comments, or isolated incidents that are not very
serious, harassment is illegal when it is so frequent or severe that it creates a hostile or offensive work
environment or when it results in an adverse employment decision (such as the victim being fired or
demoted).
The harasser can be the victim's supervisor, a supervisor in another area, a co-worker, or someone who is not
an employee of the employer, such as a client or customer.
Sexual harassment comes in two types: (a) quid pro quo which happens when a manager demands sexual
intimacy from a subordinate in exchange for employment (b) hostile environment; and that can take place
when unsolicited criticisms and actions interfere with the employees’ performance and well-being or have
created a disrespectful or insulting work environment.
SG3
THE STAGES OF THE EMPLOYMENT CYCLE
Human resource management involves a process of enabling the organization to have the right people,
doing the right jobs at the right time. This is in line with the challenges facing managers in staffing
organizations. It is about planning for the number and quality of employees required under different job
categories and to make sure that employment processes are effective.
According to the ELC model, this ongoing relationship has three stages: Pre-Hiring, Hiring, and Post-
Hiring stage. Furthermore, the emerging trends affecting Human Resource Management were
also incorporated.
Pre-Hiring, Hiring, and Post-Hiring
There are three stages of the employment cycle:
1. The Pre-Hiring Stage
This stage includes two important HRM practices, namely, human resource planning (HRP)
and job analysis. These practices set the foundation for other HRM practices.
Two HRM practices under this stage.
HRP is the process of systematically reviewing human resource requirements to ensure that
the number of employees matches the required skills.
Job analysis is a methodical way of collecting, interpreting, and storing information about
specific jobs. This information will help identify the content of the work as well as the worker
requirements needed to perform the job.
2. The Hiring Stage
This stage comprises recruitment and selection practices. It deals with policies and
procedures used by organizations to fill an open position due to resignation, retirement, job
abandonment, promotion, or transfer. Recruitment serves as a tool to locate and entice job seekers
who are eligible for the job. This could be internal or external source of recruitment. On the other
hand, selection is choosing the best and the most qualified candidate from the pool of applicants.
3. The Post-Hiring Stage
The aim of this stage is to implement HRM practices that will improve and sustain employee
work performance level. This include the following:
A. training and development
B. performance appraisal
C. compensation and benefits
D. employee safety and health
E. separation
The ELC model is based on the idea that companies should design the employee experience as carefully as
their customer’s experience. Thus the reason why the ELC resembles -to some degree – the customer
journey.
“Employee engagement should be a mindset, not a program that starts and stops when morale is low.
Unfortunately, many large organizations don’t have a true pulse on the value of their engagement. They need
to effectively turn engagement data into meaningful intelligence at the department and individual manager
level to help employees recognize their contributions to the business.” Scott Ahlstrand, Right Management’s
Global Practice Leader for Employee Engagement (Manpower)
If your business continues to have escalated disputes, it may be time to review your employee management
capability and systems and the below outline may assist in that determination.
Like many other areas of life and business, people and employees have a unique life cycle.
The employment cycle involves the stages employees go through and the role HR or similar support
takes on during those stages.
Each stage of the employee cycle has its own challenges, opportunities, and benefits. For instance, if
your small business is experiencing excessive employee turnover, it’s likely that the Motivation stage
of the employee cycle needs attention. If an employee’s skills aren’t improving, you will want to
address the Evaluation stage.
When there’s a breakdown at any stage of the cycle, you need to take the necessary steps to correct
the problem so both your employees and your business continues to grow.
Current Trends in HRM.
Modern business is facing the rapid and unrelenting growth of artificial intelligence, and the majority of
respondent companies in the 2019 Deloitte Global Human Capital Trends survey report that not only do
they need to rethink their capabilities to learn, but they also need to reinvent their workforce experience to
enhance efficiency and reconsider how they develop leaders. These are shifts that need to be explored to
avoid HR process stagnation, so let’s dive into more of the latest in human resources management.
Human resource management is not just about recruitment, selection, and compensation. Situations and
other consequences outside the control of an organization could have widespread influence on various HRM
practices.
Here are some factors that may have greater influence on HRM practices:
1. Workplace cultural diversity
2. “Repurposing” Your Human Capital
3. Using technology to recruit
4. Reinventing Talent Acquisition
5. HR Analytics
6. Artificial Intelligence
7. Tremendous growth of part-time and temporary employees
8. Globalization
9. Work from home trend
SUMMARY
The pre-hiring stage includes two important HRM practices: human resource planning and job
analysis.
Job analysis is a methodical way of collecting, interpreting, and storing information about specific
jobs. This information will help identify the content of the work as well as the worker requirements
needed to perform the job.
The post-hiring stage aims to implement HRM practices that will improve
employees’ wrok performance level.
Human resource management is not just about recruitment, selection, and compensation. It is also
concerned with the social, economic, and technological consequences that are beyond the control of
organizations.
There are emerging trends affecting HRM such as workplace cultural diversity, “repurposing” human
capital, reinventing talent acquisition, HR analytics, artificial intelligence, globalization, and work
arrangement trends.
SG4
Determine (estimate) the demand for human resources. Determine the numbers and types of
employees that will be needed.
Determine (estimate) the availability or demand for human resources inside (internal
sources: employees that are currently employed) and outside (external sources) the organization.
Analyze the relationship between the demand for, and the availability of, employees. A surplus
or a shortage of employees may occur.
If the projections show a surplus of employees, then the labor force must be reduced. The
following are some of the methods that can be used:
Restricted hiring;
Job sharing;
Early retirement;
Retrenchments;
Reduced working hours;
Should projections show a shortage of employees, the organization must recruit the necessary
number and quality of employees outside the organization. External recruitment and selection is necessary
in this situation.
Because circumstances can change rapidly in the external environment, human resource planning is
an ongoing process.
What Is Human Resource Planning? Why is it Important?
Beyond a simple consideration as the workforce, the human resources of an organization represent
the sum of knowledge, skills, aptitude, creative abilities, and talents available to the enterprise, in addition to
the values, attitudes, and benefits that each individual contributes to the business.
Human resource planning is a systematic and strategic process aimed at evaluating the current
state of an organization’s human resources and predicting its future workforce requirements. Also known as
workforce planning, human resource planning helps organizations recruit, retain, and optimize the deployment
of people they require to meet strategic business objectives and respond to changes in the market and the
general environment.
Human resource planning is the process whereby organizations determine the staffing support they
will need to meet business needs and customer demands. There are a variety of considerations that impact
this planning, including impending retirements and transitions, the availability of employees with certain skills
sets and changes in the environment that may require training for existing employees.
This is the process during which a balance is obtained between internal and external provision or
supply of people with possible job vacancies that are expected for a specific period in the organization. There
is, however, an increasing imbalance between the emerging posts and the availability of people to fill those
posts.
The labor pool is changing as a result of rapid technological changes and increasing
globalization. Human resources planning is necessary to handle this problem effectively.
A key part of human resource planning is projecting future workforce requirements and developing
strategies for deploying this talent to avoid skills shortages or surpluses proactively. The aim is to achieve a
balance of skills based on the needs and objectives of the enterprise. HR planning must, therefore, be a
continuous process, with a structure and monitoring system that enables the organization to provide sufficient
lead time for the recruitment and training of employees to meet its future requirements.
Forecasting Manpower Demand and Supply
Predicting the need for labor has been an essential indicator of a company’s progress. No matter the
size, the company will need to conduct a forecast of its labor needs.
Human Resource supply forecasting is the process of estimating availability of human
resource followed after demand for testing of human resource. For forecasting supply of human resource, we
need to consider internal and external supply. Internal supply of human resource available by way of
transfers, promotions, retired employees & recall of laid-off employees, etc. Source of external supply of
human resource is availability of labor force in the market and new recruitment.
Human resource (HR) demand forecasting is the process of estimating the future quantity and
quality of people required. The basis of the forecast must be the annual budget and long-term corporate
plan, translated into activity levels for each function and department. In a manufacturing company, the sales
budget would be translated into a production plan giving the number and type of products to be produced in
each period. From this information, the number of hours to be worked by each skilled category to make the
quota for each period, would be computed. Once the hours are available, determining the quality and quantity
of personnel will be the logical step.
The following are the HR Forecasting Techniques:
1. Ratio-trend Analysis
2. Regression Analysis
3. Work-study Techniques
4. Delphi Techniques
5. Flow Models
6. Other Forecasting Techniques
SUMMARY
Human resource planning is a systematic and strategic process aimed at evaluating the current
state of an organization’s human resources and predicting its future workforce requirements. The aim
of HRP is to aid managers place the employees where they are most-fitted (qualification-wise) for the
company to achieve its strategic goals.
Strategic planning is an organization’s process of formulating and implementing its strategies and
assessing the effects to its internal and external environment.
A key part of human resource planning is projecting future workforce requirements and developing
strategies for deploying this talent to avoid skills shortages or surpluses proactively. The aim is to
achieve a balance of skills based on the needs and objectives of the enterprise.
Human Resource supply forecasting is the process of estimating availability of human
resource followed after demand for testing of human resource. For forecasting supply of human
resource, we need to consider internal and external supply
Human resource (HR) demand forecasting is the process of estimating the future quantity and
quality of people required. The basis of the forecast must be the annual budget and long-term
corporate plan, translated into activity levels for each function and department.
SG5
JOB ANALYSIS
“We recruit for attitude and train for skill,”
― Atul Gawande
Jobs are at the core of every organization’s productivity. If they are not well designed and done right,
productivity suffers, profits fall, and the organization is less able to meet the demands of society, customers,
employees, and other stakeholders.
Job analysis is the process of gathering and analyzing information about the content and the human
requirements of jobs, as well as, the context in which jobs are performed. This process is used to determine
placement of jobs. Job analysis defines the organization of jobs within a job family. It allows units to identify
paths of job progression for employees interested in improving their opportunities for career advancement and
increasing compensation.
“… Job analysis is the process of studying a job to determine which activities and responsibilities it
includes, its relative importance to other jobs, the qualifications necessary for performance of the job and the
conditions under which the work is performed. An important concept in job analysis is that the job, not the
person doing the job, is assessed, even though human resources (HR) may collect some job analysis data
from incumbents.”
Examples of how an organization may use job analysis data:
Workforce planning.
Performance management.
Recruitment and selection.
Career and succession planning.
Training and development.
Compensation administration.
Health, safety and security.
Employee/labor relations.
Risk management.
Information Collection
Job analysis involves collecting information on characteristics that differentiate jobs. The following factors
help make distinctions between jobs:
Open-ended questionnaire
Job incumbents and/or managers fill out questionnaires about the KSAs necessary for
the job. HR compiles the answers and publishes a composite statement of job requirements.
This method produces reasonable job requirements with input from employees and managers
and helps analyze many jobs with limited resources.
Highly structured questionnaire
These questionnaires allow only specific responses aimed at determining the frequency
with which specific tasks are performed, their relative importance and the skills required. The
structured questionnaire is helpful to define a job objectively, which also enables analysis
with computer models.
Interview
In a face-to-face interview, the interviewer obtains the necessary information from the
employee about the KSAs needed to perform the job. The interviewer uses predetermined
questions, with additional follow-up questions based on the employee's response. This
method works well for professional jobs.
Observation
Employees are directly observed performing job tasks, and observations are translated
into the necessary KSAs for the job. Observation provides a realistic view of the job's daily
tasks and activities and works best for short-cycle production jobs.
Work diary or log
A work diary or log is a record maintained by the employee and includes the frequency
and timing of tasks. The employee keeps logs over a period of days or weeks. HR analyzes the
logs, identifies patterns and translates them into duties and responsibilities. This method
provides an enormous amount of data, but much of it is difficult to interpret, may not be job-
related and is difficult to keep up-to-date.
Behavioral event interview
Behavioral event interviewing, a competency-based job analysis, differs from the traditional job
analysis, which focuses solely on the evaluation of tasks, duties and responsibilities. In
behavioral event interviewing:
A team of senior managers identifies future performance areas critical to the organization's
business and strategic plans.
HR assembles panels composed of individuals who are knowledgeable about the
organization's jobs (i.e., subject matter experts). These groups may be employees, managers,
supervisors, trainers and others.
A facilitator interviews panel members to obtain examples of job behaviors and actual
occurrences on the jobs.
The facilitator develops detailed descriptions of each identified competency, including
descriptive phrases for clarity.
HR rates the competencies, and panel members identify KSAs required to meet them.
HR identifies performance standards for each job. The organization must develop and
implement selection, screening, training and compensation instruments, or processes that
focus on competencies.
Use of Job Analysis Data
Flextime
Flextime is a type of alternative schedule that gives a worker greater latitude in choosing his
or her particular hours of work, or freedom to change work schedules from one week to the next
depending on the employee's personal needs. Under a flextime arrangement, an employee might be
required to work a standard number of core hours within a specified period, allowing the employee
greater flexibility in starting and ending times.
Compressed workweek
Compressed workweek is an alternative scheduling method that allows employees to work a
standard workweek of 40 hours over a period of fewer than five days in one week or 10 days in two
weeks. For example, some employers implement a four-day workweek of 10-hour days. Employers
get the same number of working hours, but employees have a three-day weekend every week.
Another approach is the 9/80 schedule, in which employees work 80 hours in nine days and have one
day off every other week. Among other demographics, employees whose family status involves child
care or elder care responsibilities may find a compressed workweek to be of particular value.
Employees save time and commuting expenses by reporting for duty on fewer days. Employers that
convert their entire operation to a four-day workweek may save on the cost of utilities and other
overhead.
Shift work
Shift work has traditionally been used in manufacturing environments to maximize
productivity from fixed resources and costs. More recently, shift work has become a feature of the 24/7
service economy and a byproduct of globalization. For example, supermarkets and computer help
desks are now typically open 24 hours a day, seven days a week. Nowadays, a computer user calling
for technical support during regular U.S. business hours is likely to end up speaking with a technician
working the "graveyard shift" in India. Despite its extensive use in certain environments, shift work
poses some practical challenges for some employers.
Part-time jobs
Part-time jobs are the most traditional of flexible scheduling options. This option is typically
used when a job requires fewer than 40 hours of work per week. Part-time work can be used to attract
a workforce that includes students, parents of young children, older workers and others who need or
want to work but do not wish to work a full-time schedule. Although more commonly associated with
jobs in retail and food service, some employers do have part-time professional employees. Part-time
work can help organizations retain professionals who otherwise would be lost.
Job-sharing
Job-sharing is the practice of having two different employees performing the tasks of one full-
time position. Each of the job-sharing partners works a part-time schedule, but together they are
accountable for the duties of one full-time position. Typically, they divide the responsibilities in a
manner that meets both of their needs as well as those of the employer. The practice allows for part-
time schedules in positions that the employer would not otherwise offer on a part-time basis. It
requires a high degree of compatibility, communication and cooperation between the job-sharing
partners and with their supervisor.
Like part-time jobs, job-sharing arrangements may appeal particularly to students, parents of
young children and employees nearing retirement, helping them balance careers with other needs. For
employers, the practice may include retention of skilled employees, increased employee loyalty and
productivity, and a measure of flexibility that can occur when two people fill one job slot.
2. Location Flexibility
Location flexibility refers to arrangements that make it possible for employees to work remotely from
the main worksite. There are several types of location flexibility. Telecommuting is the most common.
Other practices include hoteling and so-called snowbird programs.
3. Telecommuting
Telecommuting, also known as telework, involves the use of computers and telecommunications
technology to overcome the constraints of location or time on work. In a global economy, physical location
has become less important than efficiency of operations. Telework may occur from home, a telework
center, or on an airplane or bus.
Telework is best suited for jobs that require independent work, little face-to-face interaction,
concentration, a measurable work product and output-based (instead of time-based) monitoring.
Nevertheless, telecommuting is not unknown in jobs—even HR jobs—that do not fit this mold.
Telecommuting has become a widely accepted practice, and most organizations that do permit it
develop metrics to track their return on investment. Telework often includes these three different types:
Regular, recurring telework, such as an employee spending every workday or regularly scheduled
workdays working from a home office or other remote office.
Brief, occasional telework, such as an employee writing a report or preparing a spreadsheet from a
home office after hours or on weekends, or just working from home to avoid interruptions.
Temporary or emergency work, such as working from home to ensure business continuity during
inclement weather, a natural disaster or an event such as a political convention that causes significant
traffic and parking disruptions.
Opportunities. Companies that give their workers the option of telecommuting report its benefits in greater
productivity, lower costs, more options for finding and retaining qualified staff, and improved employee health,
Challenges. Despite its utility in a variety of situations, telecommuting does present challenges to both
employers and employees. Among the possible negatives for employees are:
Job analysis is the process of studying a job to determine which activities and responsibilities it
includes, its relative importance to other jobs, the qualifications necessary for performance of the job
and the conditions under which the work is performed. An important concept in job analysis is that the
job, not the person doing the job, is assessed, even though human resources (HR) may collect some
job analysis data from incumbents.
HR uses the job analysis output to develop a job description and job specifications. The job
description summarizes and organizes the information for the organization's job-related actions.
Generally, the job description and specifications are combined but compartmentalized to enable
independent updating as needed.
Job analysis information can also be used as a basis for selecting or developing employment
assessments that measure the most critical tasks or KSAs. Some assessments involve work samples
that simulate job tasks and require candidates to demonstrate that they can perform these tasks
effectively.
There are several types of schedule flexibility: flextime, compressed workweek, shift work, part-time
schedules, and job-sharing.