CHAPTER 1: DEFINITION AND SCOPE OF HUMAN RESOURCE MANAGEMENT

-This chapter tackles about the nature, scope, history, and definition of Human Resource
Management or HRM.
-HRM serves as an organizational function of managing and handling one of the most
valuable assets of the organization.
EMPLOYEES – Most Valuable Asset of the Organization
-Deals with various undertakings done by a business firm to make sure that the
employees and workers are handled humanely.
-HRM is composed of HR practices to help firms in leading its people effectively and
modestly throughout their journey during the three stages of the employment cycle.
EMPLOYMENT CYCLE – Pre-Hiring, Hiring, Post-Hiring

Pre-Hiring Stage
Determining of the right number and type of people needed to fill up positions in
the organization along with their required qualifications. This stage includes human
resource planning and job analysis.
Hiring Stage
Establishment of policies to help managers fulfill their staffing needs of the
company that leads to recruiting and selecting.
Post-Hiring Stage
Carrying out of HRM practices and other productivity program to enhance
employees’ performance level.

HRM Practices
- Training and development
- Performance appraisal
- Compensation and benefits administration,
- Employee health and safety
- Separation.

FREDERICK TAYLOR
- Father of Scientific Management
- He introduced people management through his book The Shop Management,
which featured the proper selection and training of employees in scientific way.
- Pioneered the study of scientific management
- Addressed critical issues on incentives that encouraged the compensation of
workers for meeting and/or surpassing performance criteria.
HRM Historical Breakthroughs
1890 – 1910
Frederick Taylor instituted the management approach that focuses on the idea of
scientific selection of employees based on their capabilities.
1910 – 1930
Most companies started to create departmental units that concentrate on preserving
the well-being of employees.
1930 – 1945
Hawthorne Studies started to have big effect on management studies and
principles. This gives attention to the welfare of the employees to influence their
productivity.
1945 – 1965
Birth of Union Membership who focuses on the importance of employer-employee
relationship. This period also influenced the pay and benefits program that the organized
union bargained for, for the workers.
1965 – 1985
Civil Rights Act of 1964 reached its highest point. Employers were advised to take
after equal employment opportunity provisions to avoid discrimination over employees.
1985 – PRESENT
Diverse labor force, globalization, and strategic HRM were there three pressing
concerns. Employers primary aim is to cope with trends and competitions.

As Taylor was starting with his concepts regarding scientific management, other
proponents were also employing related principles of psychology in various aspects of
HRM.
Hawthorne Studies sparked an increase in the importance of the social and psychological
relationships in the workplace.

IMPORTANCE OF STUDYING HUMAN RESOURCE MANAGEMENT

HRM encompasses wide variety of basic business ideas that includes:
- Recruitment
- Selection
- Training and development
- Performance appraisal
- Compensation
- Safety and health
- Other productivity improvement programs

Entrepreneurs
Have to meet a lot of challenges in handling and managing their workers. Studying
of HRM provides these individuals to understand the various prospects of business
handling.
Employee
Company’s valuable asset. It is essential for employees to understand HR
Management so they may gain better understanding regarding their rights and privileges
as employees.

Supervisors and Leaders

Studying HR management can provide them a competitive edge, especially in the
aspect of recruitment.

BEST FEATURES OF HUMAN RESOURCE MANAGEMENT

It is prevalent in nature
This means that HRM is current and completed in all effective and functional
areas of management within an organization on a constant basis.
It is dynamic
Constantly find ways to change circumstances and events for the benefit of the
organization and its employees.
It is individually oriented
HRM works toward getting the best out of each employee by seeing to it that they
are continually offered the opportunity to be equipped with new skills through training,
development, and other productivity improvement schemes.
It is employee-oriented
Employees are the doing individuals of an organization. Rewarding them for their
contributions to organizational success is a strong reinforcement to increase the level of
job performance
It is forward-looking
For an organization's HRM function to be successful, it should effectively envision
and assess labor needs for a given period.
It is growth-oriented
For an organization's HRM process is to yield success, it should constantly
enhance the conceptual and analytical skills of its employees

The differences between Human Resource Management and Personnel Management

Personnel Management (PM) Human Resource Management (HRM)
Personnel refers to the people manning the organization. Managing them is referred to as
personnel management HRM is the effective supervision and management of
employees' capabilities and other attributes
PM is conventional and concentrates on supervisory administration of

people HRM is a non-stop function directed at developing the knowledge and skills of
employees
PM is a separate purpose with separate sub-function HRM is an indispensable part of
the entire organization
PM is seen as a supplementary activity HRM anticipates and effectively handles
adverse situations even before they arise
PM reacts to adverse situations as they arise HRM sees the organization as one that
embodies a dynamic personality
PM takes complete authority in people management HRM sees to it that both personal
and professional needs of employees are addressed correctly in order to achieve work-life
balance
PM has a limited range as it only focuses on administration of people Motivational
activities and team-building activities are top priorities for HRM
PM is particularly involved with recruitment, selection, and administration of the
workforce In HRM, a fulfilling job is the antecedent and job satisfaction is the
outcome
Primary stimuli in PM are monetary and non-monetary rewards In HRM, there is a
great relationship between productivity and satisfaction and employees social well-being
In PM, a high level of contentment means better performance HRM considers people as
valuable assets
PM regards employees as tools for the organization to make more profit HRM regards
employees as excellent contributors to the organization's wellness, and thus
acknowledges their contributions through growth and opportunities advancement
PM treats employees as commodities that can be bought in exchange for money HRM
sees to it there is a constant healthy relationship between the organization and its
employees, which extends to the family members of the employees
PM treats people as an expense, thus, employers have the power to manage the cost
Encouraging all forms of communications is the driving force in HRM

Differences Between Human Resource Management and Human Resource Development

HUMAN RESOURCE MANAGEMENT

- HRM focuses on enhancement of employees, potential from a long-term
perspective.
- HRM gives attention to the effective utilization of employees and their
capabilities.
 - HRM takes decisions on HRD plans.
- HRM at its center has HRD.
- HRM attends to every employee demand resulting in increased satisfaction and
productivity.

HUMAN RESOURCE DEVELOPMENT

- HRD is concerned with enhancing the capabilities of employees that will result in
positive behavior change.
- HRD sees to it that there is continuing opportunities development. for growth and
- HRD depends on the decisions of HRM.
- The goal of HRD is anchored to the that of HRM, which boils down the benefit of
the workers.
- HRD promotes upscaling of skills and knowledge resulting in outstanding
performance.

CHAPTER 2 EQUAL EMPLOYMENT OPPORTUNITY (EEO) AND THE LAW

-This chapter tackles about different employment discrimination and its forms. This also
cite various discriminatory HRM issues that impact an organization's HR practices; and
discusses several Equal Employment Opportunity (EEO) laws in the Philippines.

Employment discrimination is the unjust or prejudicial treatment of different

categories of people or thing specifically on the basis of their age, race, gender, and
religious beliefs.
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
has equal chances to vie for it.
discrimination may be avoided by applying the concept of "bona fide occupational
requirement," which means that the company must be able to prove that the requirement
is indeed essential.

Two categories of people protected by Equal Employment Opportunity (EEO) Laws:

1. Protected Classifications - categories of people who are lawfully protected against
employment discrimination based on their age, gender, skin color, ethnicity, and physical
or mental disability.
2. Protected Groups - sub-categories of people within each protected classifications. Ex:
white, black, and brown are protected groups under the protected classification skin
color.

To determine non-compliance or violation of EEO law, a person should know how the
court defines discrimination:
1. Intentional Discrimination or Disparate Treatment - this is a kind of an unlawful
discrimination wherein the employer makes a gesture that intentionally treats an
individual differently on the basis of some form of criteria.
2. Unintentional Discrimination or Disparate Impact - this is an indirect type of
discrimination whereby a policy or standard that is work-related gives unequal chances to
individuals from various protected groups.

QUAL EMPLOYMENT OPPORTUNITY VERSUS AFFIRMATIVE ACTION

• Every employment opportunity seeks to guarantee that anyone, despite his age,
color, disability, sex, religion, national origin or race has an equal chance of employment
based on his or her qualifications inventory.
EQUAL EMPLOYMENT OPPORTUNITY LEGISLATION - IN THE PHILIPPINES

REPUBLIC ACT NO.7277 - AN ACT PROVIDING FOR THE REHABILITATION,

SELF-DEVELOPMENT AND SELF-RELIANCE OF DISABLED PERSONS AND
THEIR INTEGRATION INTO THE MAINSTREAM OF SOCIETY AND FOR OTHER
PURPOSES.
Chapter I - Employment
Sec. 5 - Equal Opportunity for Employment. No disabled person shall be denied access to
opportunities for suitable employment.
Sec. 6. Sheltered Employment. If suitable employment for disable cannot be found
through open employment as provided in the immediately preceding Section, the State
shall endeavor to provide it by means of the placement of disabled persons in sheltered
employment.
Sec. 7. Apprenticeship. Subject to the provisions of the Labor Code a disabled persons
shall be eligible as apprentices or learners.
Sec. 8. Incentives for Employers.
(a) To encourage the active participation of the private sector in promoting the welfare of
disabled persons and to ensure gainful employment for qualified disabled persons,
adequate incentives shall be provided to private entities which employ disabled persons.
(b) Private entities that employ disabled persons who meet the required skills or
qualifications, either as regular employee, apprentice or learner, shall be entitled to an
additional deduction from their gross income, equivalent to twenty-five percent (25%)
space of the total amount paid as salaries and wages to disabled persons.
Sec. 9. Vocational Rehabilitation. Consistent with the principle of equal opportunity for
disabled workers and workers in general, the State shall take appropriate vocational
rehabilitation measures that shall serve to develop the skills and potentials of disabled
persons and enable them to compete favorably for available productive and remunerative
employment opportunities in the labor market.
Sec. 10. Vocational Guidance and Counseling. - The Department of Social Welfare and
Development shall implement measures providing and evaluating vocational guidance
and counseling to enable disabled persons to secure and advance in employment.
Sec. 11. Implementing Rules and Regulations. - The Department of Labor and
Employment shall, in coordination with the Department of Social Welfare and
Development (DSWD) and National Council for the Welfare of the Disabled Persons
(NCWDP), promulgate the rules and regulations necessary to implement the provisions
under this Chapter (Chan Robles, 2006).

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 employee's rights, privileges or employment
opportunities.
Two Types of Sexual Harassment:
a) quid pro quo sexual harassment, happens when a manager demands sexual intimacy
from a subordinate or a possible hire in exchange for employment.
b) A hostile environment can take place when unsolicited criticisms and actions interfere
with the employee's performance and well-being or has created a disrespectful or
insulting work environment for the harassed employee.

Wage Rationalization Act, 1989 - Philippines

The question of wages in the Philippines is regulated in this Act. It aims to promote the
objective appraisal of jobs on the basis of the work to be performed and the cooperation
of the employers’ and workers’ organizations concerned.

Women in Development and Nation Building Act, 1992 - Philippines

The intent of the Act is to promote the integration of women as full and equal partners
with men in development and nation-building. The State must ensure fundamental
equality before the law and provide women with rights and opportunities equal to that of
men.

Act to Regulate the Employment of Women and Children, to provide for Penalties in
Violation Hereof, and for Other Purposes, 1952 - Philippin
The Act prohibits the employment of women in work which involves prolonged Standing
or lifting of heavy objects and (with some exceptions) night work, and provides for rest
periods.

Migrant Workers and Overseas Filipinos Act, 1995

The act is meant to protect the Filipino workers working overseas, primarily
female domestic workers. The act regulates the recruitment of migrant and overseas
workers and provides for penalties for illegal recruitment.
Magna Carta for Public Health Workers Act, 1992 - Philippines
Section 9 stipulates that there must be no discrimination against a public health worker,
inter alia with regard to gender. The Act grants additional benefits to public health
workers, the majority of whom are women, such as security of tenure, regulations
concerning the normal hours of work, overtime work, work during rest days and night
shift, and leave benefits.

Local Government Code, 1991 - Philippines

Section 41c of this Act provides seats for women in all local legislative assemblies or
local government units nationwide.

Executive Order Concerning the Equality of Access to Education - 117 Philippines

This Order provides for the promotion and maintenance of the equality of access to
education and enjoyment of the benefits to be derived from it by all citizens. As a result
of this Order, women may now enroll in the Philippine Military Academy.

Republic Act Concerning Private Education (6728), 1989 - Philippines

This Act grants government assistance to students and teachers in private education.
Private school teachers who have meager earnings (mostly female) can avail themselves
of scholarships to enable them to pursue higher education to qualify for more responsible
positions.

General Appropriations Act 1995 - Philippines

This Act includes a provision on gender-responsive projects. Section 27 directs
government agencies to set aside an amount from their 1995 appropriations for projects
that address gender issues.

Labor Code of the Philippines, 1974

The Labor Code of the Philippines, which has been amended several times since 1974,
prohibits women's night work (Art. 130) with some exceptions (Art. 131). According to
Art. 12, the Secretary of Labor must establish standards that will ensure the safety and
health of women employees, notably in relation to seats, separate toilet rooms and
lavatories, nurseries, minimum age, and other standards for retirement.
Art. 135 strengthens the prohibition of discrimination against women with respect to
terms and conditions of employment.
Art. 136 states that it is unlawful for an employer to require, as a condition of nt or
continuation of employment, that a woman employee not marry, or pulate expressly or
tacitly that upon getting married a woman employee shall be deemed to have resigned or
separated, or to actually dismiss, discharge, discriminate against or otherwise prejudice a
woman employee merely by reason of her marriage.
According to Art. 137, it is prohibited to discharge a woman on account of her
pregnancy, or while on leave or in confinement due her pregnancy. It is also prohibited to
discharge or refuse the admission of a woman upon returning to her work for fear that she
may again be pregnant.
Under Republic Act No. 7655 (Act Increasing the Minimum Wage of House
Helpers), house helpers who are receiving at least one thousand pesos (1,000) must be
covered by the Social Security System (SSS) and are entitled to all the benefits provided
thereunder.
CHAPTER 3: PRE-HIRING, HIRING, AND POST-HIRING

- This chapter tackles the comprehensive description of the three stages of

employment cycle. This also discusses the contemporary issues in HRM, and explains the
traditional and new areas of HRM.

Pre-Hiring Stage
Includes two important HRM practices: Human Resource Planning and Task
Analysis.
Human Resource Planning – helps the managers to identify the right number and
type of employee needed for the job. It is also the strategy that firms use to acquire,
utilize, improve and preserve their workforce.
Job/Task Analysis – methodical way of collecting, interpreting, and storing
information about specific jobs.

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 various circumstances. It
is the tool to locate and entice job seekers who are eligible for the job.

Post-Hiring Stage
The aim of this stage is to implement HRM practices that will improve and sustain
employee work performance level. This includes the following:
 - Training and Development - Learning experiences designed to enhance
workers’ capabilities. This will provide the employees to learn and acquire skills
in order to improve their work productivity.
- Appraising and Managing Performance - Assessing employees, past and
present performance levels relative to certain performance measures.
- Compensation - Consists of the pay and benefits received by the employees
from their employers in return for their services. This could also be a form of
“Benefits” that could be monetary or non-monetary.
- Enforcing Safety and health measures - Not only the responsibility of employers
or of the human resource department but that of the entire workforce as well.
Current Trends in Human Resource Management
Because of various circumstances, situations and other consequences outside the
control of an organization could have widespread influence on various HRM practices.
Because of these, companies should set sound and objective selection standards and
methods that will accurately measure individual classifications.
- An increasing workplace cultural diversity
- An emphasis on work and family issues
- The tremendous growth of part time and temporary employees.
- The dynamic upgrading of technology

HR: Generalist vs Specialist

HR Generalist - Commonly found in small or medium sized organizations. He is
also is a human resources professional who has fundamental knowledge in a broad array
of topics related to employee benefits, compensation, hiring, onboarding and evaluations.
HR Specialist – more focused on specific HRM task. They perform in specific
areas in larger companies. They are responsible to various tasks within the HR
department.
Due to trends, globalization, developments, and other projections of HRM,
traditional and new specialty areas in HRM are depicted:

TRADITIONAL SPECIALTY AREAS NEW SPECIALTY AREAS

Training and Development Prepares training needs assessment; creates instructional
programs; validates, implements, and evaluates the training programs; and assess results.
Work and family life programs Develops and implements family and work life
balance such as flexible time, compressed workweek, child care assistance, and other
programs that promote work and family life.
Employee Compensation and Benefits Writes job descriptions and job specifications;
designs job evaluation instruments, conducts market surveys for compensation packages;
constructs pay structure; and develops benefits programs. Cross-cultural Orientation
Communicates organizational rituals, norms, and practices and distinguishes them
from other nations.
Employee Well-being Creates committee for employee health and safety: designs
health and safety programs; establishes a safe and healthy work environment; and
implements policies on health and safety Managed Health Care Programs Health care
expenses continue to affect a company's financial status. In this regard, most companies
seek the assistance of experts on managed health care to plan for a better option for its
employees.
Recruitment and Selection Determines job vacancies; locates and attracts qualified job
candidates; decides recruitment method to be used; notifies job candidates; meets with
job candidates; studies curriculum vitae; prepares for interview sessions, administers
employment tests; and makes hiring decisions. Diversity Management Develops
guidelines for ensuring that discriminatory practices are prevented and that individuals
are given equal chancesi to employment regardless of age, sex, race, and other factors.

Organizational Ethics
Workplace ethics are statements or rules that determine right or wrong conduct in
the workplace. These are the principals and standards by which businesses operate,
according to Reference for Business. They are best demonstrated through acts of fairness,
compassion, integrity, honor, and responsibility.

CHAPTER 4

HUMAN RESOURCE PLANNING

Learning Outcomes:

After reading the chapter, the students should be able to: 1. define human resource
planning and its relationship to strategic planning;

2. discuss the step-by-step process of HR planning, 3. explain the factors that affect HR
planning;

4. show how to forecast HR demand and supply:

5. differentiate quantitative and qualitative approaches to forecasting and cite examples;

and

6. describe how to deal with undersupply of human resource and cite alternative courses
of action to help organizations deal with it.

Just as planning for financial, plant, and equipment needs is important, so too is planning
for personnel needs. Human Resource Planning or HRP is an HRM practice that helps
managers in predicting the various HR needs relating to acquiring, positioning, and
utilizing employees. Overall, the aim of HRP is to aid managers in placing employees
where they fit (qualifications-wise), so as to help the company achieve its goals. Further,
it estimates the number and type of workers to successfully implement the overall plan of
the organization.

HUMAN RESOURCE PLANNING (HRP) AND STRATEGIC PLANNING

Human Resource Planning is also defined as an HR undertaking that ascertains the

company's present and subsequent HR needs. It serves as a link between human resource
management and the entire strategic plan of the organization. Strategic planning is an
organization's process of formulating and implementing its strategies and assessing their
effects on the internal and external environment of the firm. The main objective of this
relationship is to make sure that Human Resource Management activities are taken into
consideration prior to formulating the corporate plan. The list on the next page shows the
activities that serve as the link between human resource planning and the company's
strategic plan.

1. Understand the organizational mission, goals, objectives, and strategic requirements

2.Conduct a head count of present employees.

3. Know the future demand for employees. Conduct a skills inventory each year to
approximate the need for manpower for existing positions. Investigate the sources of
supply of human resources. The sources can come from academic institutions, and people
from other organizations seeking employment.

4. Determine the number of employees you currently have and how many you actually
need. Study the gap between demand and supply.

5. Estimate the possible increase or decrease in human resources. The increase may come
from new hires, contingent workers, transfers, re-instated employees. Decreases may
come from resignation, retirement, study leaves, dismissal, lay-off, job abandonment,
death, and other factors.

6. Decide whether to hire or to downsize. If the number of employees is more than what
is needed, then there is an oversupply of personnel. The action will be to downsize. If the
number of employees is less than what is needed, then there is an undersupply of
manpower. The action will be to recruit additional manpower.

FACTORS THAT AFFECT HUMAN RESOURCE PLANNING

1. Company's goals, objectives, and strategies 2. Time spent for planning HR needs

3. Uncertainties of business activities

4. Exactness of forecasting manpower needs

5. Structural design of the company

6. Internal and external availability of manpower 7. Preparation period of positioning

talents

The abovementioned consequences are essential requirements for human resource

planning to be effective, otherwise, plans will become useless and meaningless.

Forecasting: A Key Component to Successful Human Resource Planning In the present-

day competition, firms do not have the luxury of avoiding human resource forecasting if
they want to improve organizational efficiency. Forecasting involves predicting the
company's future human resource needs. This process could be challenging and complex,
but definitely vital to the long-term performance of an organization. Doing this requires a
serious study of the strengths and deficiencies of the HR team so they won't end up
experiencing surpluses or shortages of people. Managers need to regularly predict their
HR needs and the core competencies of the firm as part of their strategic planning
activity. They should focus on these three major considerations: (a) predicting demand
for labor; (b) predicting supply of labor; and (c) reconciling the gap between demand and
supply of labor. Being deliberately mindful to each will help managers attain their human
resource needs, thus improving organizational effectiveness and increasing profitability.

Predicting a Firm's Demand for Employees

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. A
complete forecast should append recent data, previous experiences, and other
probabilities to be able to come up with a sensible and responsive HR plan. There are two
methods of predicting HR needs: quantitative and qualitative. Organizational needs will
eventually determine which method to use; however, no matter which method is selected,
predicting HR needs should never be ignored, even by small companies.

QUANTITATIVE APPROACHES. The quantitative prediction method covers the use of

numerical information or mathematical procedures in analyzing data. The most
commonly used approaches are trend analysis, ratio analysis, and regression analysis.

Trend analysis is based on the concept that what has happened in the past will give the
HR officer an idea what will take place in the future. Trend analysis ties past employment
flows to subsequent labor needs. Managers chart trends that affect the number of
employees based on certain variables such as sales volume and employee count during a
certain business period. Table 4 shows the connection between sales volume and number
of employees as basis in determining the future HR needs.

Ratio analysis is the process of anticipating future HR demands by calculating the precise
ratio between certain variables. This method is considered more accurate than trend
analysis.

In determining a student-teacher ratio, let's assume that a university has 12,000 students
and 400 professors; thus, the student-teacher ratio is computed as 12,000/400 or 30:1.
This ratio indicates that for every 30 students, the institution needs 1 professor. If the
university anticipates student enrollment to increase by 1,500 students next year it would
need to hire 50 (1500/30) additional professors (assuming that none of the 500 current
professors leave prior to next year).

Regression analysis is identical to both trend and ratio analyses in such a way that
forecasts are based upon the relation between certain predictors like sales volume and
number of employees. In this method, the organization draws lines and marks called a
scatter diagram. It then calculates a regression line which goes through the middle of the
marks on the scatter diagram. Proper interpretation of the regression line will enable the
company to determine the number of employees needed for each predictor or variable.

QUALITATIVE APPROACHES. Unlike the quantitative methods that predict the

workforce size through numerical information, qualitative methods predict future HR
needs based on the opinions or gut feel of some selected members of the organization
outside experts or others concerned with the future labor needs of the company. This
method is often seen as subjective and judgmental hence, biases are most likely to occur.
The Delphi Technique is a type of qualitative forecasting method that aims to minimize
biases of forecast by seeking expert opinions and summing up their decisions. This is
done by presenting a certain business scenario to experts. A set of questions will asked
from these experts and the reasons behind their opinions. The final forecast is obtained
once the panel of experts have converged toward the right decision.

Preferably, companies should use both quantitative and qualitative methods. These two
complement each other and no doubt will result in a more accurate forecast of manpower
needs.

Predicting the Supply of Employees

If the demand projection has been made, the company gets a better picture of the number
and type of positions it will need to execute the work at a specific time. Decisions will
then be finalized on which positions will be filled on a certain future time. This process is
known as supply forecasting.
First, the organization forms a cluster showing the line of positions from which
employees can anticipate growth. The cluster may include job title, function, and degree
of autonomy. For example, the Marketing group may include job titles such as Marketing
Manager, Advertising Head, and Sales and Promo Officer. The Information Technology
(IT) group may be clustered as Creative and Animation Officer, Software and Network
Engineer, and Web Analytics Engineer.

Second, within each work group, state which of the incumbents will stay in their current
positions, how may are listed for possible transfer, promotion, and retirement. Above all,
the organization should also pay attention to possible mergers, buy-outs, and acquisitions.

Outcomes of the HR Planning Process

Once the HR planning activity is accomplished, the company should set and carry out
HRM practices that will aid the managers in handling the possibility of occurrence of
either an undersupply or oversupply of personnel.

Dealing with Workforce Oversupply

If there are more workers than jobs, the first action is to downsize, which typically refers
to lay-off. However, due to some undesirable effects of lay-offs, managers may consider
options such as:

Suspend hiring

- Set limits to overtime

- Avoid contingent workers Early retirement

-Reduce pay

- Job sharing

-Offer career breaks like study leave

Corporate Strategic Plan

Know the purpose of your existence Specify long-term goals

Define your values and principles

Opportunities and threats

• Environmental scanning

Industry/competitor analysis

• Strengths and weaknesses

• Forecast demand for employees

• Resources, people, process, systems

.Competitive strategy

Action plan

Strategy alignment

Design, structure, and systems, among others

Allocate resources

Leadership, communication/change

• Assessment of goals

Alignment of strategies to goals

. Providing feedback

Human Resource Planning

Formulate management philosophy

Create a healthy company culture

Outline code of conduct

Demographic trends

Outside supply of labor

Competitor benchmarking
Personality and competencies

• Predict HR demand

• Predict HR availability and suitability

Effectiveness and efficiency

Productivity improvement programs

• External fit/alignment/internal fit

. Analyze demand and supply gap

Termination and separation

Enhancement programs

Measure effectiveness of initiatives

. Keeping track of activities

Dealing with Workforce Undersupply

An undersupply of personnel indicates that there are more jobs than this happens, the first
move of the company should be to hire additional employees.

workers. If

However, the company may consider the following alternatives:

Encourage overtime

- Create another work shift

- Job re-assignment

Strengthen retention program

CHAPTER SUMMARY
1. Human resource planning (HRP) is an HRM practice that helps managers anticipate
the varying HR needs of a company in terms of acquiring, positioning, and utilizing
employees. 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.

2. Strategic planning is an organization's process of formulating and implementing its

strategies and assessing the effects to its internal and external environment. Companies
do not take-off by themselves. Practically every strategic planning decision has to take
into consideration the people issues associated with it. Obviously then, strategic planning
and human resource planning go hand in hand.

3. Certain factors could affect human resource planning, such as the company's goals,
objectives, and strategies; time spent on human resource planning, uncertainties in the
business scenario, preciseness of foreseeing HR needs, and the structural design of the
company.

4. There are two methods of predicting the need for labor. One is the quantitative method,
which involves the use of numerical information in analyzing data. The other one is the
qualitative method which predicts HR needs based on the opinions and gut feel of some
members of the organization and other external experts who may be familiar with the
organization's HR needs. The most commonly used approaches under the quantitative
method are trend analysis, ratio analysis and regression analysis; Delphi technique is a
qualitative method of forecasting.

Chapter 5

Job or task analysis is an HRM procedure that analyzes the requirements of the job and
not the person. It is an HRM practice that involves collecting of data about the details of
the job relating to duties, the job requisites necessary to carry out those duties, and the
traits and attributes of the person needed to accomplish the work favorably. Data gathered
from the job analysis will serve as bases in developing these two important job analysis
outcomes:

1. Job description - a job-related document that shows the duties and responsibilities
attached to the job position. It further indicates how the worker will do the job, and the
job's working conditions.

2. Job specification - shows the specific qualifications and individual characteristics

expected to match the job requirements. Figure 2 shows a sample job description and job
specification.
A job description is extremely important for both employers and employees. From the
employers' standpoint, the job description gives them the opportunity to find the right
applicant for the vacant position. It also provides factual knowledge about the actual
duties and responsibilities of the employees. On the other hand, a job description serves
as a guidepost to employees in understanding and defining the scope of their job.

COLLECTING JOB ANALYSIS INFORMATION

Data collection may be done using a variety of methods; however, some of the most
commonly used are interviewing current employees, observing activities of employees,
distributing survey questionnaires, and making use of diaries.

Interviewing current employees. The job analyst elicits information about the job from
current employees. However, he may also refer to the supervisors and managers if he
needs more information.

Observing activities of current employees. Under this method, the job analyst
meticulously observes the incumbents while performing the job, how they do the job, and
determines the length of time it takes them to complete the job.

Distributing survey questionnaires. This is the most popular way of gathering job analysis
information. The analyst distributes the prepared questionnaire to incumbents, instructing
them to answer questions related to their jobs. Questionnaires are gathered in a relatively
short period of time.

Use of diaries. The diary method requires the incumbents to keep a detailed record of
their daily task. If this is done honestly, this method assures the job analyst of the
accuracy of data.

All methods concentrate on the collection of very basic job-related information useful in
recruitment and selection. However, choosing the appropriate method depends on the
scope of the job, and the duties and responsibilities assigned to it. For that reason, before
selecting a method, all the pros and cons should be studied to be certain that it meets the
goals and objectives of the company.

Important Components of Job Analysis

Job analysis is the process of collecting, interpreting, and keeping records about the
requirements of a job, and the conditions in which jobs are performed. The following are
important information that a complete job analysis should provide.

1. Job Content - shows the actual duties of the worker, how he or she performs the
job, and the facilities, materials and devices to be used in performing the job. The job
analyst may also collect further information about the job and might include performance
standards and possible training and development required by the job.

2. Job Context - this is about the conditions or the environment where the job is
performed. It also specifies the demands such work requires the employee to do. Some
other kinds of job context data may include environmental conditions, technologies,
structure of relationships, level of autonomy, and the physical demands of the job on the
employee.

3. Worker Requirements - these are qualifications that are considered by the employer as
vital to the successful execution of the job. This refers to the knowledge, skill, ability,
personal characteristics, and credentials needed for effective job performance, explained
as:

Knowledge - the intelligence and understanding of a specialized discipline acquired

through formal education and actual experience.

Skill - potential capability of a worker to carry out a particular job, such as decision-
making skill, people skill and cognitive skill.

Ability - a capacity or competence that allows an individual to do a specific kind of work.

Some examples are ability to work under pressure, and ability to manage time. Personal
characteristics - although skills are necessary, most employers will choose an individual
who possess good personal qualities such as reliability, trustworthiness, and flexibility.

Credentials - pieces of evidence that will prove a person's identity or background that will
indicate his fitness for the job like scholastic records, employment certification, and other
relevant documents.

Changes in Work Schedules

Company supervisors and managers may deviate from the standard or regular working
time in their aim to promote a friendly work environment and increase self esteem of
employees by allowing them greater autonomy in changing their work schedules, which
include (a) a compressed workweek, (b) flexible time, (c) job sharing, and (d)
telecommuting.

1. Compressed Workweek - This is an alternative work schedule where the standard five-
day workweek is reduced to a lesser number of days, but with longer working hours. The
regular work hours is eight hours a day on a five-day workweek. In a compressed
workweek, employees may opt to work on a four-day, ten-hour schedule, also referred to
as 4/10 or 4/40. Both employers and employees may decide to choose another option as
long as the employee renders a total of forty hours in a week.
2. Flexible time - Flexible time, also called Flextime, gives workers leeway in selecting
their daily time-in and time-out schedule on the condition that they work a definite
number of hours in a day or in a week. In flexible time, the the total number of hours
employees are obliged to work are similar as that under the regular work time. Flexible
time gives employers and employees various benefits. By permitting employees more
freedom in choosing their work time, employers can minimize tardiness and absenteeism,
and increase employee loyalty. On the other hand, employees can best accommodate both
their family and personal needs, thus they become more productive.

3. Job Sharing - This is a job arrangement where two employees with temporary or part-
time status perform a job that otherwise can be done by a full-time employee. Since a job
position is shared, compensation is divided between the two employees, thus reducing
their income. Job sharing is suitable in a situation where one of both spouses wishes to
work only part time. It is more convenient for older workers who are retiring as they will
have more time to rest.

4. Telecommuting - Globalization and technology are drastically changing the future of

work, that is, how we do our jobs and where in telecommuting, employees connect with
employers, co-workers, and customers via electronic gadgets and other
telecommunication channels. Another form of telecommuting is mobile telecommuting
where employees, whose jobs require them to be in other places, can use cell phones and
broadband connection to be in contact with their home company.

CHAPTER SUMMARY

1. Job analysis involves gathering data about the contents of the job relating to duties
involved in performing the task, the job requisites necessary to carry out those duties, and
the traits and attributes of the person needed to favorably accomplish the work. Job
analysis has two important outcomes: the job description, which is a document that shows
the duties and responsibilities attached to the job; and the job specifications, which is a
statement of an employee's qualifications that are expected to match the job requirements.

2. Collecting information for a job analysis maybe done through interviews, observation,
survey questionnaires, and diaries. All these methods aim to collect basic job- related
information necessary in selecting the right fit. Choosing the best method depends upon
the scope of the job, and the duties and responsibilities assigned to it.

3. Important components of a job analysis are job content and job context. Job content
shows what the worker actually does, and how he does it. Job context talks about the
conditions or environment where the job is to be performed. It also specifies the physical
and mental demands of the job.
4. Alternative work schedules such as compressed workweek, flexible time, job
sharing, and telecommuting give workers the opportunity to select their working hours to
better meet their family and personal needs.

5. Job requirements reflect the different duties, tasks, and responsibilities involved in
jobs. Job requirements, in turn, influence HR functions performed by managers,
including recruitment, selection, training and development, performance appraisal,
compensation, and various labor relations activities.