BC 201

HUMAN
RESOURCE
MANAGEMENT
COLLEGE
OF
BUSINESS Instructor:
ADMINISTRATIO
N ROMNICK S. CRUZ
 UNIT 1: INTRODUCTION TO
HUMAN RESOURCE MANAGEMENT
TITLE OF THE LESSON: Changing Perspective to Human Resource
Management

INTRODUCTION

Human Resource Management (HRM) is a modern approach to

managing people in the workplace, which combines both the physical
energies and their strengths with human competencies. It is the policy
which ensures the right quality and quantity of human resource at the
right time in the organization.
The main concepts that underlies the practice of human resources
management is that human beings are the most important and critical
resource and asset in the growth and development of an organization.
Both the individual and organization interact with one another, each
having its set of goals, needs, perceptions and culture but both
influencing each other to promote their ends.
Human resource management is concern of managers of all levels and is
related to all the activities in the company. In general, human resource
management is known to have four basic functions: the acquisition
function, the development function, the maintenance function, and the
utilization function.
Acquisition duties consist of human resource planning for employees,
which includes activities related to analyzing employment needs,
determining the necessary skills for positions, identifying job and
industry trends, and forecasting future employment levels and skill
requirements.
The function of human resource development is to improve
performance and ability. While employees are often expected to know
a certain amount about their jobs or have a specific degree or level of
education upon hire, much of what an employee learns about their job is
developed over the course of doing the job.
Maintenance function of human resource management is concerned
with protecting and promoting the physical and mental health of
employees. In order to achieve these objective several types of fringe-
benefits such as housing, medical and, educational facilities, conveyance
facilities etc. are provided to the employees.
HR utilization function is concerned with utilizing employees
productively for higher performance and results in order to result in
increased productivity and success of the company. In simple words,
this function is concerned with motivating its employees.
 OBJECTIVES/COMPETENCIES
At the end of the lesson, the students are expected to:

1. Understand the concept of human resource management and its

role in an organization;
2. Describe the functions of human resource management;
3. Explain how the functions of human resource management
contribute to organizational success;
4. Describe the applications of information technology in human
resource management;
5. Explain what human resource information system is and its impact
to human resource management;
6. Understand the importance of formulating strategies to control
human resource in an organization; and
7. Describe the different types of organization charts and structures.
 LESSON PROPER/COURSE
METHODOLOGY
Overview of Human Resource Management (HRM)

Findings show that the key to survival and success lies not in the
rational(agreeable to reason; reasonable), quantitative
approaches(scientific or mathematical data to understand a problem,
such as analyzing ), but rather in the commitment to irrational, difficult-
to-measure things like people, quality, customer service, and most
importantly in developing the flexibility to meet changing conditions. The
resources required by the organizations are plant, equipment, financial
assets, and people (particularly important) Bowin et al. (2001).
Human Resource Management is a process that involves the
acquisition(the learning or developing of a skill, habit, or
quality), development, maintenance, and utilization of valuable
human resources necessary for organizational success. The
objective of the HRM is to help make an organization more
effective by means of integrating comprehensive human resource
policies with overall organizations plans and strategies, and
implementing responsive human resource programs with a
growing sensitivity to the economic and policy needs of the
organization as well as responsive to the changing technology.
 EVOLUTION OF HUMAN
RESOURCE MANAGEMENT

The first research study of management practice during the early of the
twentieth century was based on scientific management by Frederick W.
Taylor and was concerned with standardization of jobs, time and task
study, systematic selection and training of workers, and pay incentives
of employees to maximize efficiency and productivity.
Job standardization is defined as the extent to which service employees
follow standard operating procedures (including the use of hard and
soft technologies) to perform their jobs (Hsieh and Hsieh, 2001).

Productivity is the quantity of work produced by a team, business or

individual. ..

Efficiency, on the other hand, refers to the resources used to produce that
work. So, the more effort, time or raw materials required to do the work,
the less efficient the process.)
The Human Relations Movement Era - succeeded scientific
management as dominant(pangunahin)approach to management during
the 1930s – a concentrated effort by some managers and their advisors
to become more sensitive to the needs of employees or treat them in a
more humanistic manner.
 THE HUMAN RELATIONS
MOVEMENT
1. The Threat of Unionization. The Wagner Act of 1935 legalized union
management collective bargaining, promoting the growth of unions, and
union avoidance by firms. Early human relations thinking presented this
possibility that satisfied employees would be less inclined to join labor
unions.
2. The Hawthorne Studies (Elton Mayo). Reported that productivity was
strongly affected by workers’ attitude; turned management toward the
humanistic and realistic viewpoint of the “social man” model.
3. The Philosophy of Industrial Humanism. In 1960s, social psychologist
Douglas McGregor developed the concept of Theory X and Theory Y
that describe two contrasting sets of assumptions that managers make
about their people. In Theory X, managers tend to take a pessimistic(to
see the worst aspect of things or believe that the worst will happen)
view of their people, and assume that they are naturally unmotivated
and dislike work, while in Theory Y managers have an
optimistic(hopeful and confident about the future), positive opinion of
their people, and they use a decentralized(refers to the transfer of
control and decision-making), participative management style.
 EVOLUTION OF THE HUMAN RESOURCE
MANAGEMENT FUNCTION
As businesses grew bigger, specialized units were created to cope with their
hiring needs to deal with government regulations and behavioral issues of
workers. During the 1930s and 1940s, these units gradually began to be
called Personnel Department, and gave rise to a new type of management
function. During the latter part of 1970s, human resource management
emerged as a reaction against the more functional approach embodied in
personnel management. Top human resource executives today have nice
presidential or executive vice precedential status and are fully contributing
member of the firm’s executive committee. Management no longer treated
employees as costs nut assets.
Human resources are the greatest asset of the company. In the recent
years, treating human resource as assets has been assailed(trouble) by
management experts. Assets are passive – bough, sold, and replaced at the
whim of their owners. Human capital in reference to workers now take the
place of human resources (Davenport 1999). Human capital are all present
and future workforce participants who need to develop to their full
potential for the benefit of everyone. Human capital also refers to the
attributes gained by a worker through education and experience.

Human capital - is an intangible asset or quality not listed on a company's balance
sheet. It can be classified as the economic value of a worker's experience and skills. This
includes assets like education, training, intelligence, skills, health, and other things
employers value such as loyalty and punctuality.
 MAIN TRENDS IN THE HUMAN
RESOURCE PROFESSION
The advent(period) of the “computer age” has greatly altered not only the
availability of information but also the manner in which it is identified and
acquired. IT deals with how information is accessed, gathered, analyzed,
and communicated.
 60’s – HR information systems were in place and payroll administration
was computerized as well.
 70’s – introduced the use of more powerful databases.
 80’s – greater integration of HR applications using IT in the HR
function.
 APPLICATIONS OF INFORMATION
TECHNOLOGY IN HUMAN RESOURCE

1. Use of job boards and other similar web-based recruitment (e-

recruitment). Provides accessibility to a wider range of applications
for the job and usually communicates job vacancies and applications
procedures. Web recruitments include resume submission, quick
interactive screenings methodologies, and in some cases, online
testing and experience profiling.
Job Board
Advantages:
• Improvement in recruiting efficiency
• Reduction of costs
• Increase quality and quantity of applicants
• Establish, communicate and expand brand identity
• More convenient on the part of the applicants.
Disadvantages:
• Increase in application quantity, but not necessarily the quality of the
applicants.
• Losing personal relationship with the applicants.

2. E-selection. Uses technology to help organizations more efficiently

manage the process of identifying the best job candidate those who have
the right knowledge, skills, and abilities for each job and who may best
fit the organization.
E-selection
3. Employment kiosk. Provides updates on employee status and other
pertinent information initiated and made by the employees themselves.

4. E-learning. Facilitates the learning process by providing just-in-time

learning opportunities.
Employment kiosk
 E-learning
Learning Management System(LMS)
 Advantages:
• Increase in employee flexibility
• Control over learning
• Reduction of training costs
• Better tracking and management of employee training

Disadvantages:
• Isolating the trainee that can reduce career enhancement through networking and
linkages
5. Electronic Performance Support System (EPSS). Provides online
coaching and mentoring services. Managers and employees can access
organizational information through an EPSS application.
6. Salary and payroll administration. For most companies, is now linked to
performance management systems, time, attendance, and other employee
benefits, and pay systems.
7. Growth of social networking sites like Facebook and Twitter. One of the
next challenges to HR executives is learning to integrate information from
social networking sites. Potential benefits must be balanced with issues of
privacy and data accuracy.
Electronic Performance Support System (EPSS).
Salary and payroll administration
Growth of social networking sites like Facebook and Twitter
8. Use of e-mail. The use of e-mail has emerged as the heart and soul of
corporate communication. Because of inbox overload and spams, it became
difficult to track messages efficiently. With this development, HR
department with the help of their IT experts should develop unified
messaging that will allow workers to check and store emails related to
work in one single box.
Use of e-mail
9. Use of IT to foster customer involvement. It is because of the
popularity of the social media, that companies started using different
social networking sites where they can post company updates, service
offerings, or just to let the users of the account know their company
exists. With these development, HR departments should also start
thinking how to use these social media to improve and enhance
employee services and employee relations.
Use of IT to foster customer involvement
10. Telecommunicating/Teleworking. It is any form of substituting
information technologies (such as telecommunications and/or
computers) to establish remote or virtual office. This also allows
employees to work in a place with access the internet, closes the gap
between where people live and work, and provides jobs near homes or
transform homes into virtual office extension.

Ex. Work from home

Telecommunicating/Teleworking
 HUMAN RESOURCE INFORMATION
SYSTEM (HRIS)
What is HRIS?
 is a database system that keeps important information about employees
in a central and accessible location.
 an integrated system designed to provide information used in HR
decision making.
 a system for gathering and maintaining data that describe the HR.
 transforming data into information.
 reporting the information to users.
Purposes of HRIS

 To improve the efficiency with which data on employees and HR

activities are compiled.
 To provide HR information more rapidly and more easily to be used in
management’s decision making.
 HRIS APPLICATION

1. IBM (Int’l. Business Machines Corporation). An American

multinational technology with operations in over 170 countries. IBM
Europe utilized HRIS in order to connect their 340,000 global
employees through revolutionary and engaging new company-oriented
social media. HRIS has saved IBM $1.2 million per year simply by
mitigating the company’s printing and mailing costs through the
implementation of an online enrollment system.
2. Toshiba America Medical Systems Inc. (TAMS). Innovator in
medical imaging technology; markets, sells, distributes and services
diagnostic imaging systems throughout US. By manipulating a
streamlined and functional HRIS, TAMS Inc., have moved all of their
benefit information online, created a library document s and forms on
its HR portal, including benefits guide, which earned a 2004 APEX
Award for Publication Excellence, and received the 2004 Electronic
Benefit Communication award given by Business Insurance
Magazine for outstanding achievement in communicating employee
benefits programs over the Web.
 BENEFITS OF HRIS SOLUTIONS
1. Salary and Payroll Administration. Payroll management is often a
tedious process that requires a high level of accuracy, timeliness, and
effective financial controls. Aligned with local statutory standards and
regulatory specifications, HRIS can help keep work flow costs in check
and ensure that all employees are paid on time in any circumstances.
2. HR Training. It provides control of internal organizational training
from delegating participants to projecting training budget, course
scheduling and enrollment, to training assessments and individual
performance appraisals.
3. Self-service Benefits Transactions. Employees can gain online access
to their benefits package at their own leisure so they can focus on
more demanding tasks at hand during office hours.
 BUSINESS PROCESS OUTSOURCING
(BPO) IN THE PHILIPPINES AND HR
Outsourcing is a proven tool that can help companies improve service and
better manage their operating costs and cash flow. The business process
outsourcing industry is considered as one of the fastest growing business
sectors in the world including the Philippines. It is an economic force that
propels our country to be considered as one of the emerging global leaders
in the BPO industry. While our country produces a lot of graduates
annually, most of them do not the skills needed in higher-value business
processes. This is considered as a major stumbling block for the country.
Findings show that the major problem area of BPO is its attrition rate
which entails higher recruitment costs, training costs, higher productivity
costs, and new hire costs. This is due to BPO being considered as a part-
time engagement, with no specialized skills required, high job stress, and
working hour problem.
Considering the major concerns of BPO, human resource department
needs to formulate strategies to control its human resource for BPO. With
regards to language proficiency, HR needs to design training programs
that would enhance the communication skills of prospective recruits who
wish to enter the field of business process outsourcing and increase
sources of applicants for the job.
“Since 2010, the Philippines has been the leading voice BPM services
provider surpassing all other markets. Today, the industry has proven its
ability to evolve by expanding to multi-tower and higher-value services
that have attracted investors and locators globally. Offering more complex
and digitally-enabled non-voice services, the Philippine IT-BPM industry
has transformed to an omnichannel delivery model and continues to
provide niche business process services to various industries.”
- Business Process Association of the Philippines (BPAP)
Top 40 BPO companies in the Philippines 2021 | Outsource ...
https://www.outsourceaccelerator.com
 HUMAN RESOURCE DEPARTMENT’S
ORGANIZATION CHARTS AND STRUCTURES

 Centralization. A centralized strategy that locates the design and administration

responsibility of the human resource in a single organizational unit. Human resource
generalists handle all human resource activities rather than specializing in a single area
such compensation or recruiting.
 Decentralization. It gives each unit the responsibility to design and administer its
own personnel system.
 Organization Chart. A visual display of an organization’s positions and lines of
authority that is useful as a blueprint for deploying human resources.
 Line and Staff Positions. Line managers make decisions and staff personnel provide
advice and support.
CENTRALIZATION
 DECENTRALIZATION
HTTPS://ANTYLLES.COM/2019/04/23/TO-DECENTRALIZE-OR-NOT-TO-DECENTRALISE-IS-THAT-THE-QUESTION
ORGANIZATION CHART
HTTPS://WWW.PINTEREST.PH/PIN/464011567854157618/
End of UNIT 1
 UNIT 2: ACQUISITION OF HUMAN RESOURCES

JOB ANALYSIS

INTRODUCTION
Job Analysis is a systematic exploration of the activities within a job. It
defines and documents the duties, responsibilities and accountabilities of a job
and the conditions under which a job is performed. It is important to conduct
job analysis to determine the responsibilities inherent in the position as well as
the qualifications needed to fulfil its responsibilities. It is also essential in the
recruitment process of the organization to locate an individual having the
requisite capabilities and education.
JOB ANALYSIS
 OBJECTIVES/COMPETENCIES

• At the end of the lesson, the students are expected to:

• Explain the importance of job analysis;
• Discuss specific information provided by job analysis;
• Understand the uses of job analysis information;
• Understand the methods used in job analysis;
• Identify steps in conducting job analysis; and
• Describe the content and format of a job description and specification.
 LESSON PROPER/COURSE METHODOLOGY

Importance of Job Analysis

Successful HRM practices can lead to outcomes that create competitive
advantage. When properly performed, job analyses can enhance the success of
HRM practices by laying the required foundation.
 
Definition of Different Job Terms

Position – consists of responsibility and duties performed by an individual.

There are as many positions in a firm as there are employees.
• 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. For
example, the position of the chief accountant also constitutes a job since there is
only one chief accountant in the organization.
• Occupation – group of jobs that are similar as to kind of work and are found
throughout an industry. An occupation is a category of work found in many firms.
• Job analysis – the procedures used for determining/collecting information relating
to the operations and responsibility of a specific job. The end results are job
description and job specifications.
• Job description– organized, factual statements of the duties and responsibilities of
a specific job. It tells what is to be done, how it is done, and why. It is list of job
duties, responsibilities, reporting relationships, working conditions, and
supervisory responsibilities.
JOB DESCRIPTION AND JOB SPECIFICATION
HTTPS://WWW.MANAGEMENTSTUDYGUIDE.COM/JOB-DESCRIPTION-SPECIFICATION.HTM
• Job specifications– a written explanation of the minimum acceptable human qualities necessary
for effective performance of a given job. It designates the qualities required for acceptable
performance, which are requisite education, skills, personality, and so on.
• Job classification– grouping of jobs on some specified basis such as kind of work or pay. It can
refer to a grouping by any selected characteristics but preferably used most often in connection
with pay and job evaluation.
• Job evaluation– systematic and orderly process of determining the worth of a job in relation to
other jobs. The objective is to determine the correct rate of pay. Job evaluation is the process of
assessing the worth of a job to decide on how much should be paid for it. During a job
evaluation, a combination of factors is used to determine the relative worth of a job and how it
compares to other jobs in the organization. 
• Tasks- coordinated and aggregated series of work elements used to produce an output.
• Functional job analysis– a task-based or work oriented technique describing the work
performed.
• Position analysis questionnaire (PAQ)– an example of a job analysis method.
JOB CLASSIFICATION
HTTPS://WWW.ANALYTICSINHR.COM/BLOG/JOB-CLASSIFICATION/
 JOB ANALYSIS PROVIDES INFORMATION IN SEVERAL
CASES INCLUDING THE FOLLOWING:

• How much time is taken to complete basic tasks?

• How are tasks 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?
• All these information provides a foundation for other HR activities.
 SPECIFIC INFORMATION PROVIDED BY JOB
ANALYSIS

• Job title and location

• Organizational relationship – brief explanation of the number of persons
supervised (if applicable) and job title of the position supervised. It also
reflects supervision received.
• Relation to other jobs – describes and outlines the coordination required
by the job.
• Job summary – condensed explanation of the content of the job.
• Information concerning job requirements – usually provides information
about machines, tools, materials, mental complexity and attention
required, physical demands and working conditions.
 USES OF JOB ANALYSIS INFORMATION
1. Preparing the Job Description and Writing the Job Specifications
• The result of job analysis provides a complete description that contains job summary, the
duties and responsibilities, machine and equipment used, and some indications of the working
conditions. It is also used to describe the individual traits and characteristics required in
performing the job well.
2. Recruitment and Selection
• Job analysis information is useful when searching for the right person to fill the job. It helps to
seek and find the type of people that will contribute to and suit the needs of the organization.
3. Determining the Rate of Compensation
• Job analysis information is also essential for estimating the value of and appropriate
compensation for each job. This is because compensation usually depends on the job’s
required skill and educational level, safety hazards, degree of responsibility, and so on, all of
which are assessed through job analysis.
4. Performance Appraisal
• It involves comparison of actual versus planned output. Job analysis information is used to
identify the standards and performance objectives and specific activities to be performed
against which employees are evaluated. It is used to acquire an idea of acceptable level of
performance for a job.
5. Training
• Job analysis information is used to design training and development programs because the
analysis and resulting job description show the skills and therefore the kind of training that is
required. Training and development are conducted to satisfy these skills and competency
requirements.
6. Career Planning and Development
• The movement of individuals into and out positions, jobs, and occupation is a common
procedure in organizations. Job analysis provides a clear and detailed information to employees
on career movement.
7. Safety
• The safety of a job depends on the proper layout, standards, equipment, and
other physical conditions. What a job entails and the type of people needed
contribute information to establish safe procedures so that unsafe practices can
either be changed or discontinued.
8. Labor Relations
• An attempt of an employee to add or subtract from the duties listed, as a result
of job analysis, is already a violation of this standard. The Labor union as well
as the management is interested in this matter. Controversies often result and a
written record of the standard job jurisdiction is valuable in resolving such
disputes.
 METHODS USED IN JOB ANALYSIS
1. Interview
• Job analysis information can be obtained by interviewing the job incumbent or by group
interviews with group of employees doing the same job or by interviewing the supervisor
who is knowledgeable about the job. Interview information is particularly valuable for
professional and technical jobs that mainly involve thinking and problem solving.
2. Observation
• Direct observation is especially useful when jobs consist mainly of observable physical
activity. Jobs like those of janitor, production workers, and drivers are example of these. On
the other hand, observation is usually not appropriate when the job entails significant
amount of mental activity, such as the work of the lawyer, financial analyst, and the like.
3. Questionnaires
• The use of questionnaires is usually the least costly method for collecting large amount of
information in a short period of time. Advantages of using the questionnaire method include
the information gathered is quantitative in nature and can be easily updated as the job
changes. It usually includes questions asking the worker to describe the kinds of
experiences, qualifications, and attitudes needed to perform the job. It also includes a
detailed list of activities performed and the importance of each activity or the percentage of
time spent in performing it.
4. Employee Recording/Use of Log Book
• This is a recording by job incumbents of job duties, frequency of the duties, and when the
duties are accomplished. This can produce a complete picture of the job, especially when
supplemented with subsequent interviews with the worker and the supervisor.
 STEPS IN CONDUCTING JOB ANALYSIS
• Step 1: Examine the total organization and the fit of each job.
• Provide a broad view of how each job fits into the total fabric of the organization. This is to
determine how the data will be used in HRM planning. HR managers should decide what data
needs to be collected, the best method of collection, and the uses of the information in a
comprehensive HRM strategy.
• Step 2: Determine the purpose of job analysis.
• Identify the use to which the information will be put, since this will determine the type of data to
be collected and how to collect data. This requires studying the organization charts, job
descriptions, and work process charts.
• Step 3: Select job to be analyzed.
• Since it is usually too costly and time consuming to analyze every job, a representative sample
of jobs needs to be selected. Review relevant background information such as organization chart,
process charts, and existing job descriptions.
 • Organization Chart – shows how the job in question relates to other jobs and where it fits in the overall organization. It
should identify the title of each position and, by means of interconnecting lines, show who reports to whom in the hierarchy.

• Process Charts – show the flow of inputs to and outputs from the job under study. Existing job description can provide a
starting point for building the revised job description.

• Step 4: Collect data by using acceptable job analysis techniques.

• This involves the actual analysis of job by collecting data on job activities, required employee behaviour,
education, training, experience requirements, working hours, equipment used, required job duties, process
workflow, working conditions, and human traits and abilities needed to perform the job. This is done through
the use of acceptable job analysis techniques.
• Step 5: Prepare job description.
• Step 6: Prepare job specification.

The information collected in Step 4 is then used in Step 5 and Step 6 to develop the job description and job
specifications. A job description and a job specification are usually two concrete products of the job analysis.
 WRITING THE JOB DESCRIPTION
The original purpose of job description is to establish the level of difficulty of a specific position for the
purpose of establishing pay levels.

Contents of the Job Description:

1. Date written
2. Job status – full time/part-time including salary
3. Job identification– the identification section includes information such as job title, department,
division, plant and code number of the job.
4. Job summary– brief one or two-sentence statement describing the purpose of the job and what
outputs are expected from job incumbents.
5. Working relationship, responsibilities, and duties performed– relationship statement shows the
jobholder’s relationship with others inside and outside the organization. These include the supervision
received (to whom the job incumbent reports) and supervision exercised (who reports to the
employee).
BELOW IS AN EXAMPLE OF A JOB DESCRIPTION:
6. Authority of Incumbent– defines the limit of the jobholder’s authority,
including his/her decision-making authority, direct supervision for other
personnel, and budgetary limitation.
7. Competency Requirements–education and experience including
special skills required to perform a given job.
8. Working Conditions – a list of a general working conditions involved
with the job, location of the job, and other relevant characteristics of the
immediate work environment such as hazards and noise levels.
 WRITING THE JOB SPECIFICATIONS

Job Specification uses the job description to define the kind of human
traits and experience required to do a specific job well. It shows
what kind of person to recruit and for what qualities that person
should be tested. Identifies the minimum acceptable qualifications
required for an employee to perform the job adequately. May be a
separate section on the job description, a separate document
entirely, or at the concluding part of the job description.
The information contained in a job specification usually includes the following basic criteria:

• Knowledge – body of information one needs to perform the job;

• Skills – the capability to perform a learned motor task such as word processing skills;
• Ability – the capability needed to perform non-motor tasks such as communication abilities;
• Personal Characteristics – an individual’s traits such as tact, assertiveness, concern for
others, etc;
• Credentials – proof or documentation that an individual possesses certain competencies;
and
• Technical Requirements – include criteria such as educational background, related work
experience, and training.
BELOW IS AN EXAMPLE OF A JOB SPECIFICATION: