ENTREPRENEURS

1st trimester SY 2020-2021

Governor Pack Road, Baguio City, Philippines 2600
HIP
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 7 – ENTREP Subject Teacher:

Human resource management

Objectives:
At the end of the module, the learners should be able to:
a. define human resource management;
b. identify competencies and skills of employees needed for their business;
c. design management team; and
d. differentiate between job description and job specification.

LESSON PROPER:

Management must include both efficiency (accomplishing goals using the fewest resources possible) and effectiveness
(accomplishing goals as accurately as possible).

You’d make the process effective by ensuring that the right things got done and that they all contributed to the
success of the enterprise. You’d make the process efficient by ensuring that activities were performed in the right way and
used the fewest possible resources.

What Do Managers Do?

The Management Process

The effective performance of your business will require solid management: the process of planning, organizing,
leading, and controlling resources to achieve specific goals. A plan enables you to take your business concept beyond
the idea stage. It does not, however, get the work done. For that to happen, you have to organize things effectively. You’ll
have to put people and other resources in place to make things happen. And because your note-taking venture is supposed
to be better off with you in charge, you need to be a leader who can motivate your people to do well. Finally, to know
whether things are in fact going well, you’ll have to control your operations—that is, measure the results and compare
them with the results that you laid out in your plan. Figure 7.2 summarizes the interrelationship between planning and the
other functions that managers perform. This chapter will explore planning, leading, and controlling in some detail.

In this module, it will discuss the third management process which is LEADING.
The third management function is leading—providing focus and direction to others and motivating them to
achieve organizational goals. For example, as owner and president, you might think of yourself as an orchestra leader.
You have given your musicians (employees) their sheet music (plans). You’ve placed them in sections (departments) and
arranged the sections (organizational structure) so the music will sound as good as possible. Now your job is to tap your
baton and lead the orchestra so that its members make beautiful music together

Leadership Styles

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 ENTREPRENEURS
1st trimester SY 2020-2021
Governor Pack Road, Baguio City, Philippines 2600
HIP
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 7 – ENTREP Subject Teacher:

It’s fairly easy to pick up a baton, cue each section, and strike up the band; but it doesn’t mean the music will
sound good. What if your cues are ignored or misinterpreted or ambiguous? Maybe your musicians don’t like your
approach to making music and will just walk away. On top of everything else, you don’t simply want to make music: you
want to inspire your musicians to make great music. How do you accomplish this goal? How do you become an effective
leader, and what style should you use to motivate others to achieve organizational goals?
Unfortunately, there are no definitive answers to questions like these. Over time, every manager refines his or her
own leadership style, or way of interacting with and influencing others. Despite a vast range of personal differences,
leadership styles tend to reflect one of the following approaches to leading and motivating people: the autocratic, the
democratic (also known as participative), or the free rein.
 Autocratic style. Managers who have developed an autocratic leadership style tend to make decisions
without soliciting input from subordinates. They exercise authority and expect subordinates to take
responsibility for performing the required tasks without undue explanation.
 Democratic style. Managers who favor a democratic leadership style generally seek input from
subordinates while retaining the authority to make the final decisions. They’re also more likely to keep
subordinates informed about things that affect their work.
 Free-rein style. In practicing a free rein leadership style, managers adopt a “hands-off” approach and
provide relatively little direction to subordinates. They may advise employees but usually give them
considerable freedom to solve problems and make decisions on their own.

HUMAN RESOURCE MANAGEMENT

HRM is concerned with the human beings in an organization. “The management of man” is a very important and
challenging job because of the dynamic nature of the people. No two people are similar in mental abilities, tacticians,
sentiments, and behaviours; they differ widely also as a group and are subject to many varied influences. People are
responsive, they feel, think and act therefore they cannot be operated like a machine or shifted and altered like template in
a room layout. They therefore need a tactful handing by management personnel.”

Definition of HRM
1. “It is the process of managing people in organizations in a structured and thorough manner.” This covers
the fields of staffing (hiring people), retention of people, pay and perks setting and management, performance
management, change management and taking care of exits from the company to round off the activities. This is
the traditional definition of HRM which leads some experts to define it as a modem version of the Personnel
Management function that was used earlier.
2. “The management of people in organizations from a macro perspective, i.e. managing people in the form of
a collective relationship between management and employees.” This approach focuses on the objectives and
outcomes of the HRM functions. It means that the HR function in contemporary organizations is concerned with
the notions of people enabling, people development and a focus on making the “employment relationship”
fulfilling for both the management and employees

In simple words, Human resource management is management function that helps manager to recruit, select, train and
develop organization members. Or HRM is a process of making the efficient and effective use of human resources so that
the set goals are achieved.

NATURE OF HRM

HRM is a management function that helps managers to recruit, select, train and develop members for an organization.
HRM is concerned with people’s dimension in organizations. The following aspects constitute the core of HRM:
1. HRM Involves the Application of Management Functions and Principles. The functions and principles are
applied for acquiring, developing, maintaining and providing remuneration to employees in organization.
2. Decision Relating to Employees must be integrated. Decisions on different aspects of employees must be
consistent with other human resource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an organization will result in
betterment of services to customers in the form of high quality products supplied at reasonable costs.
4. HRM Functions are not confined to Business Establishments Only but applicable to non-business
organizations such as education, health care, recreation and like.

HRM refers to a set of programs, functions and activities designed and carried out in order to maximize both employee as
well as organizational effectiveness.

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 ENTREPRENEURS
1st trimester SY 2020-2021
Governor Pack Road, Baguio City, Philippines 2600
HIP
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 7 – ENTREP Subject Teacher:

SCOPE OF HRM

The scope of Human Resources Management extends to:

 All the decisions, strategies, factors, principles, operations, practices, functions, activities and methods related to
the management of people as employees in any type of organization.
 All the dimensions related to people in their employment relationships and all the dynamics that flow from it.
American Society for Training and Development (ASTD) conducted fairly an exhaustive study in this field and identified
nine broad areas of activities of HRM
These are given below:
1. Human Resource Planning: The objective of HR Planning is to ensure that the organization has the right types
of persons at the right time at the right place. It prepares human resources inventory with a view to assess present
and future needs, availability and possible shortages in human resource. Moreover, HR Planning forecast demand
and supplies and identify sources of selection. HR Planning develops strategies both long term and short-term, to
meet the man-power requirement.
2. Design of Organization and Job: This is the task of laying down organization structure, authority, relationship
and responsibilities. This will also mean definition of work contents for each position in the organization. This is
done by: “job description”. Another important step is “Job specification”. Job specification identifies the
attributes of persons who will be most suitable for each job which is defined by job description.
3. Selection and Staffing: This is the process of recruitment and selection of staff. This involves matching people
and their expectations with which the job specifications and career path available within the organization.
4. Training and Development: This involves an organized attempt to find out training needs of individuals to meet
the knowledge and skill which is needed not only to perform current job but also to fulfill the future needs of the
organization.
5. Organizational Development: This is an important aspect whereby “Synergetic effect” is generated in an
organization i.e. healthy interpersonal and inter-group relationship within the organization.
6. Compensation and Benefits: This is the area of wages and salaries administration where wages and
compensations are fixed scientifically to meet fairness and equity criteria. In addition labour welfare measures are
involved which include benefits and services.
7. Employee Assistance: Each employee is unique in character, personality, expectation and temperament. By and
large each one of them faces problems everyday. Some are personal some are official. In their case he or she
remains worried. Such worries must be removed to make him or her more productive and happy.
8. Union-Labour Relations: Healthy Industrial and Labour relations are very important for enhancing peace and
productivity in an organization. This is one of the areas of HRM. I
9. Personnel Research and Information System: Knowledge on behavioral science and industrial psychology
throws better insight into the workers expectations, aspirations and behavior. Advancement of technology of
product and production methods have created working environment which are much different from the past.

Definitions of a job description and a job specification

Job description is a document which states an overview of the duties, responsibilities and functions of a specific job in an
organization.

Job specification is a statement of the qualifications, personality traits, skills, etc. required by an individual to perform
the job.

Differences between a job description and a job specification

Content
Job description usually lists out the job title, location, job summary, working environment, duties to be performed on the
job, etc.

Job specification lists out the qualifications, experience, training, skills, emotional attributes, mental capabilities of an
individual to perform the job.

Measures
Job description measures the tasks and responsibilities attached to the job.
Page 3 of 7
 ENTREPRENEURS
1st trimester SY 2020-2021
Governor Pack Road, Baguio City, Philippines 2600
HIP
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 7 – ENTREP Subject Teacher:

Job specification measures the capabilities that the job holder must possess to perform the job.

Usefulness
Job description offers ample information about the job which helps the management in evaluating the job performance
and defining the training needs of an employee.

Job specification helps the candidates who are applying for a job to analyze whether they are eligible for a particular job
or not.

Benefit
Job description statement helps the organization to be clear about “Who should do what”.

Job specification statement helps the management to take decisions regarding promotion, bonus, internal transfers and
salary increase.

Page 4 of 7
 ENTREPRENEURS
1st trimester SY 2020-2021
Governor Pack Road, Baguio City, Philippines 2600
HIP
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 7 – ENTREP Subject Teacher:

ASSESSMENT:
1. Critical-thinking Question: Answer the following question. Limit your answer to 3-5 sentences. Underline key
terms of your answer.
a. You have a job opening for a warehouse helper, a position that sometimes requires heavy lifting, up to 50
kilograms. A woman applies for the job and claims that she is able to do the work. She looks rather petite, and
you are afraid that she might hurt herself. When you deny her job, she threatens to complain to the Human
Rights Commission. What do you do?
b. When it comes to promoting employees, which do you think weigh more: seniority or performance-based
promotion? Explain your answer by providing the advantages of your choice over the other.

2. Envision a business you want to venture with and apply it in the following activities. Place this in a short
bond paper, Century Gothic, 11, Justify, Normal Margin.
A. Management Team: Design an organizational chart of your human resource team. You may use flowchart or
appropriate charts for your management team.
Basis of Scoring: (20 points)
Content Knowledge (10 The organizational chart shows all of the required elements. None of the parts show an incorrect
points) placement in its relationship to the branches and/or levels. 

Work quality/effort (5 The work done exceeds all expectations and shows that the learner is proud of his/her work. The effort
points) that was put into this task is the best it can be by the learner.
Creativity (3 points) Eye catching. Great use of colors, texture, shapes, and spacing on poster. Artwork is the students own &
is neat. Writing is easy to read. Shows the student can express ideas through art.
Format /presentation ( 2 The organizational chart is of exceptional quality and presentation.
pts)

B. From your business (envisioned business), identify the employees you needed to run your business. For each
employee, provide job description and recruitment requirement.(40 points)
Requires
Description Unaccepta ble (1) Improvement Average (3) Above Average (4) Excellent (5)
(2)
Shows little Shows adequate Shows superior
Shows some knowledge
Shows no understanding of the knowledge of the basic knowledge of the basic
Describes Basic Purpose of the basic purpose of a
evidence basic purpose of a purpose of a particular purpose of a particular
particular job.
particular job. job. job.
Shows little Shows some Shows adequate Shows superior
Lists Most Shows no understanding of the understanding of the knowledge of the most knowledge of the most
Important Duties evidence most important duties of most important duties of important duties of the important duties of the
the job. the job. job. job.
Shows little Shows some knowledge Shows adequate Shows superior
Describes accurate Shows no understanding of the the necessary knowledge of the knowledge of the
requirements evidence necessary requirements requirements of a necessary requirements necessary requirements
of a particular job. particular job. of a particular job. of a particular job.
Determines Shows little Shows some knowledge Shows adequate Shows superior
Shows no understanding of duties of duties. knowledge of duties. knowledge of duties.
Assignment of
evidence
Duties
Shows some knowledge Shows adequate Shows superior
of the specific decisions knowledge of the specific knowledge of the specific
Shows little
the employee is required decisions the employee is decisions the employee is
Describes understanding of the
to make in performing required to make in required to make in
Shows no specific decisions the
Required the job. Determines what performing the job. performing the job.
evidence employee is required to
Decisions kinds of decisions must Determines what kinds of Determines what kinds of
make in performing the
be referred to the next decisions must be decisions must be
job.
level of management. referred to the next level referred to the next level
of management. of management.
Shows little Shows some knowledge Shows adequate Shows superior
Describes understanding of what of what records and knowledge of what knowledge of what
Shows no records and reports the reports the job requires; records and reports the records and reports the
Responsibility of
evidence job requires; for who and for who and what job requires; for who and job requires; for who and
Reports what purpose are they purpose are they kept. what purpose are they what purpose are they
kept. kept. kept.
Describes Shows no Shows little Shows some knowledge Shows adequate Shows superior

Page 5 of 7
 ENTREPRENEURS
1st trimester SY 2020-2021
Governor Pack Road, Baguio City, Philippines 2600
HIP
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 7 – ENTREP Subject Teacher:

of supervisory knowledge of knowledge of

understanding of responsibilities. supervisory supervisory
Supervisory
evidence supervisory responsibilities. responsibilities.
Responsibilities
responsibilities.

Formatted correctly Shows little Shows some knowledge Shows adequate Shows superior
Shows no
(according to template). understanding of of correct formatting. knowledge of correct knowledge of correct
evidence
correct formatting. formatting. formatting.

Example:
Position: Operations Manager

Basic Purpose:

A stereotypical example of an operations manager would be a plant manager in charge of a factory, such as an automobile assembly
plant. But other managers who work in the factory – quality managers, production and inventory control managers, and line
supervisors – can also be considered to be working in operations management. In service industries, managers in hotels, restaurants,
banks and stores are operations managers. In the not-for-profit sector, the manager of a nursing home or day centre for older people is
an operations manager, as is the manager of a local government tax-collection office and the manager of a charity shop staffed entirely
by volunteers. So operations managers are responsible for managing activities that are part of the production of goods and services.

Operations management involves the systematic direction and control of the processes that transform resources (inputs) into finished
goods or services for customers or clients (outputs). This basic transformation model applies equally in manufacturing and service
organisations and in both the private and not-for-profit sectors.

Most Important Duties:

Their direct responsibilities include managing both the operations process, embracing design, planning, control, performance
improvement, and operations strategy. Their indirect responsibilities include interacting with those managers in other functional areas
within the organisation whose roles have an impact on operations. Such areas include marketing, finance, accounting, personnel and
engineering.
Operations managers' responsibilities include:
 Human resource management – the people employed by an organisation either work directly to create a good or service or
provide support to those who do. People and the way they are managed are a key resource of all organisations.
 Asset management – an organisation's buildings, facilities, equipment and stock are directly involved in or support the
operations function.
 Cost management – most of the costs of producing goods or services are directly related to the costs of acquiring resources,
transforming them or delivering them to customers. For many organisations in the private sector, driving down costs through
efficient operations management gives them a critical competitive edge. For organisations in the not-for-profit sector, the ability
to manage costs is no less important.

Decision making is a central role of all operations managers. Decisions need to be made in:
 designing the operations system
 managing the operations system
 improving the operations system.

The five main kinds of decision in each of these relate to:

1. the processes by which goods and services are produced
2. the quality of goods or services
3. the quantity of goods or services (the capacity of operations)
4. the stock of materials (inventory) needed to produce goods or services
5. the management of human resources.

Operations Manager Requirements:

 Bachelor’s degree in operations management or related field.

 Experience in management, operations, and leadership.
Page 6 of 7
 ENTREPRENEURS
1st trimester SY 2020-2021
Governor Pack Road, Baguio City, Philippines 2600
HIP
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section:
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 7 – ENTREP Subject Teacher:

 Understanding of general finance and budgeting, including profit and loss, balance sheet and cash-flow management.
 Ability to build consensus and relationships among managers, partners, and employees.
 Excellent communication skills.
 Solid understanding of financial management.

References:

Edralin,D.M. Entrepreneurship. Quezon City: Vibal Group Inc.

Kawasaki, G. (2004). Art of start: The time-tested, battle-hardened guide for anyone starting anything. USA: Penguin Group

Skripak, S. J. (2016). Fundamentals of business. USA: Pamplin College of Business and Virginia Tech Libraries

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