MODULE IN HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT

Module 1
Introduction to Human Resource Management
Overview:
"If you want 10 days of happiness, grow grain. If you want 10 years of happiness, grow a tree. If you
want 100 years of happiness, grow people."

Human resources are the most valuable and unique assets of an organization. The successful
management of an organization's human resources is an exciting, dynamic and challenging task,
especially at a time when the world has become a global village and economies are in a state of flux. The
scarcity of talented resources and the growing expectations of the modern day worker have further
increased the complexity of the human resource function. Even though specific human resource
functions/activities are the responsibility of the human resource department, the actual management of
human resources is the responsibility of all the managers in an organization.
It is therefore necessary for all managers to understand and give due importance to the different
human resource policies and activities in the organization. Human Resource Management outlines the
importance of HRM and its different functions in an organization. It examines the various HR processes
that are concerned with attracting, managing, motivating and developing employees for the benefit of the
organization.
Outcomes:
At the end of this chapter, students must have:
1. distinguished Human Resource Development from Human Resource Management
2. identified the scope, concept, and importance of HRM
3. discovered the value of HRM for employees and the organization
4. recognized HRM’s contribution to profitability, efficiency and effectiveness
5. identified the daily tasks of the HR manager
6. defined the HRM process
7. classified the types of HR managers together with their corresponding duties and
responsibilities
8. familiarized with some historical models of HRM

Lesson Subject Matter or Concepts to be learned

- HRM- Definition, History and Concepts
- The Value of HRM for Employees and the Organization
- HRM’s Contribution to Profitability, Efficiency and Effectiveness
- Types of HR Managers; Duties and Responsibilities
- The HRM Process
- Historical Models of HRM

Module Strategy/method to be used: MODIFIED 4A’s of KOLB’S EXPERIENTAL LEARNING

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Module 1: HRM-Definition, History and Concepts

Activate
Human Resource (HR), Human Resource Development (HRD), and Human Resource Management
(HRM) - what’s the difference? Their names may sound appallingly similar and there are instances when
these three are used interchangeably. One thing for certain is that all involves working with people to
develop largely the overall interests, operations and performance of its manpower resources.
Acquire
Human Resource, Human Resource (HR), Human Resource Development (HRD),
and Human Resource Management (HRM) Defined
Human Resource
 The set of individuals who make up the workforce of an organization, business sector, or
economy

 It is used to describe both the people who work for a company or organization and the department
responsible for managing the resources related to employees
 It refers to the talents and energies of people that are available to an organization as potential
contributors to the creation and realization of the organization’s mission, vision, values and goals.
 It is also associated with other terms like talent, people and manpower
Human Resource Development (HRD)
 It is the integrated use of training, organizational and career development efforts to improve
individual, group, and organizational effectiveness
 It is equipping its staff with the relevant skills necessary in promoting a long-term professional
in-service learning capacity at the individual, group and organizational level.
 It is the process of adding value or worth not only to the individual, but taking the teams and the
organization as a human system growing together.
Human Resource Management

 It is both an art and a science combined into one.

 It is the art of managing people and all aspects of the human work force at a company or
organization via creative and innovative approaches.
 It is a science due to the precision and painstaking application of various theories
required.
 It is a branch of management that is focused on making the best possible use of the
enterprise’s human resources by way of granting better working conditions and activities
to their personnel.
 It intends to maintain respectable and valuable working relations within and among the
various levels of management.
 It is a process of making the efficient and effective use of human resources so that circle
of set goals are accomplished.
 Properly defined as the process of managing people in organizations in a structured and
detailed routine.
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 It embraces the following arenas:

 Staffing- hiring people
 Retention of people
 Pay and perks setting
 Performance management
 Change management
 Taking care of exits from the company to round off the activities
HRD HRM
Description A constant or continuous Refers to the application of
development function that principles of management
intends to improve the precisely to manage the
performance of the people people working in the
working within the firm organization.
What it is Subsection of HRM Management function
Function Proactive Reactive
Objective To develop the skills, and To improve the performance
proficiencies of employees of its employees
Process Ongoing Routine
Dependency It is a sub-system Independent

History of HRM
 Industrial Revolution
- Machineries, equipment, and other apparatuses are brought in the production process
- With swift and speedy advancement in technology, the need for technical
specialization is increased.
- However, work somehow became monotonous as jobs are operated via machines.
- Workers became mere operators
- Government did very little to defend the plight and concerns of the workers
 Scientific Management
- Frederick W. Taylor advocated scientific management with the aim to improve
efficiency and speed.
- Scientific management is the methodical evaluation and dissection of work into its
nominal mechanical elements and readjusting it into the most possible efficient
combination or pattern.
- Significance of training is recognized.
 Trade Unionism
- Also called as labor union, an organization of workers who have come together to
achieve many common goals.
- Workers joined hands to safeguard their interests against unfair labor practices.
- It endeavored to improve work conditions, pay and benefits, disciplinary actions,
among others.

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 Human Relations Movement

- Productivity does not depend on rewards and the job design alone
- It embrace certain social and psychological factors.
- Human relations movement led to the application of behavioral science techniques in
the industry.
 Human Resource Approach
- During early 60’s “Pet Milk Theory”(happy workers are productive or happy cows
give more milk) had been rejected.
- It was recognized that workers are unique and have individual needs.
- The trend moves toward treating employees as resources and valuable assets of the
organization.
Core Elements of HRM

Organization People Management

Importance of HRM
 Recruitment and Selection
- Recruitment is the phase where the identification of job vacancy is being processed.
- Commonly done via broadsheet advertising, company websites, internal vacancy lists, and
outsourcing
- Job description and minimum requirements are also included in the ads for reference
purposes.
- Selection of short-listed candidates who qualified based on initial screening are notified for
further assessment of credentials.
- Further test may be administered to determine one’s capabilities and strengths to tackle the
job
- Series of interviews may be done together with presentations, psychometric and aptitude
testing, and other examinations and try-outs may be done accordingly.
- Only the most suitable candidates who matched the criterions and yardsticks set by the firm
were considered and chosen for the job.
 Training
- This aims to provide new skills for its employees and keep them up to date with all the
changes happening in the industry- specifically those that are brought about by technological
changes.
- It uplifts the morale of its people and they could work more efficiently with ease.
- It may be costly on the part of the firm but its outcome is priceless.
 Performance Appraisal

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-This would assess the performance of an employee that should be done on a regular basis to
determine whether improvements are taking place or not.
- May be associated with rewards and benefits like incentives and bonuses that would “entice
the bait” for people to give their 100% and more at work.
 Trade Unions
- This are established to safeguard and uphold the interests of its members against
discrimination and unjust labor practices.
 Development
- Companies must invest in the development of its people and help them enhance their skills
and performance.
- Trainings and opportunities for higher studies may be offered not only for personal
development but for possible promotion and continuing professional development as well.
- It is grooming the employee for a much bigger shoes to fill in the near future.
Scope of HRM

- HRM is not just limited to managing people.

- It converges on overseeing the physical and emotional capital of its employees.
- Its scope is broad and comprehensive
 Personnel Management Aspect
It is concerned with the following activities:

- Manpower Planning - Training and Development

- Recruitment - Lay Off and Retrenchment
- Selection - Remuneration
- Placement - Incentives
- Transfer - Productivity
- Promotion - Other

 Employee Welfare Aspect

It deals with working conditions and amenities such as:

- Canteens - Medical Assistance

- Rest Rooms - Education
- Lunch Rooms - Health and Safety
- Housing - Recreation Facilities
- Transport - Others

 Industrial Relations Aspect

This covers the following facets:

- Union Management Relations

- Joint Consultation
- Collective Bargaining
- Grievance and Disciplinary Procedures
- Settlement of Disputes
- Others

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HRM Stakeholders

Organizations/ Owners Employees Society

HRM Concept

- Basically centered with human dimensions of management of the people at work.

- It is the process which connects individuals with organizations and supports both people and
the firm to realize each other’s goals through an assortment of dogmas, procedures and
strategies.
1. The Commodity Concept
Labor was regarded as a commodity to be bought and sold. Wages were based on demand and
supply. Government did very little to protect workers.
2. The Factor of Production Concept
Labor is viewed like machine tools- similar to any other factors of production-land, capital,
materials, and equipment.
3. The Goodwill Concept
Welfare measures such as safety, first aid, lunch room, rest room will have an optimistic impact
on workers productivity.
4. The Paternalistic Concept/ Paternalism
Management must adopt a fatherly and protective attitude towards its employees. Like a father
figure to his children, it assumes various roles. It does not end with the provision of pay and
benefits. There are various needs that must be considered and satisfied for a wholistic fulfilment.
5. The Humanitarian Concept
To enhance productivity, other factors must be met satisfactorily. Included are the physical,
social, and psychological needs of workers. The organization is a social system that embraces
both economic and social dimensions.
6. The Human Resource Concept
Organizations recognize the value of employees as valuable assets of the firm. As such, conscious
efforts to satisfy the needs and aspirations of employees yields to the realization of organizational
goals.
7. The Emerging Concept

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Employees should be accepted as partners in the progress of a company. The focus should be on
human resource development and provide opportunities to develop and utilize its manpower
potentials to the fullest.
The Value of HRM for Employees and the Organization
Establishments who have high regard for their employees consider them as valuable assets and partners in
the success of their endeavors.
HR motivates their people to carry out their respective tasks at the highest possible and uphold an
organizational culture of high morale.
A fundamental and essential approach on how HR adds value to a firm is by coaxing its leaders (or those
in-charge) to train and develop their staff and give incentives as reward for exhibiting excellent
performance. It may come in the form of increased compensation and/or promotions.
 People and Performance
- A thoroughly managed human resource department accomplishes a vital link to company
victory, superior manpower and remarkable performance.
- The continuing triumph and commercial operation of a firm is generally associated to the
abilities, drive and accomplishments of its people.
 Talent Acquisition and Retention
- HR may get good people to be part of their company but retaining their services and loyalty
to the firm is another issue.
- There are a thousand and one reasons why an employee would wish to remain in the
organization and there may even be more reasons for that same person to choose to leave and
look for a job elsewhere.
- HR is mostly liable for developing and running the practices of recruiting, attracting, hiring,
training, motivating, and retaining the enterprise’s best assets.
 Protection from Lawsuits
- HR adds merit to an organization through legal protection from issues such as disputes,
discrimination, and wrongful termination lawsuits.
- HR specialist must be constantly up to date on employee laws and alert business owners and
managers.
 Participation in Strategic Planning
- HR specialists perform a compelling part in the planning process.
- HR Directors generally work with management teams and take part in strategic planning
- This incorporates evaluations of company strengths and weaknesses and prognoses of
prospects and risks 9opportunities and threats).
- HR makes use of current conditions to forecasts future probabilities that various resource
management needs such as talks of compensation and training modifications and exploration
on up-and-coming breaks and challenges.
The Value of HR to an Organization
1. Strategic Management
Experts of HR strategic management partake in corporate decision-making that bring about
contemporary staffing reviews and estimates for imminent workforce requirements based on
occupational and professional mandate.

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2. Wages and Salaries

HR compensation specialists foster sensible compensation arrangements that establish company
remuneration competitive with other businesses in similar trade contending for personnel with
comparable expertise.
Proposed wages should be realistic and it should be conservative enough to retain compensation
costs in proportion to the firm’s existing financial standing and projected proposals.
3. Analyzing Benefits
Benefits specialists are knowledgeable with employee benefits and they possess the skills and
proficiency needed to convey grant packages for employees within the company’s budget and
coherent with economic conditions.
It is essential that the outcome would entice workers to stay.
This could cut down the firm’s costs associated with employee turnover and the need to employ
replacement personnel.
4. Safety and Risk Management
It is the duty and responsibility of the owners and proprietors of the firm to provide safe working
conditions to all its people by developing programs that would minimize the number of work-
related injuries and fatalities.
5. Minimizing Liability Issues
All unpleasant work-related issues must be resolved within the soonest possible time before it
blows out of proportion and cause much havoc on all concerned.
Common issues are centered on unfair labor practices, anti-discrimination, and harassment.
6. Training and Development
Training and development are vital steps in fashioning a sound employer-employee relationship.
It also prepares would-be heads for administrative and executive roles in the distant future.
7. Employee Satisfaction
HR Employee Relations Specialists help the company realize high performance, optimism and
fulfilment heights all over by crafting modes and techniques to reinforce the employer-employee
relationship.
This is done via the administration of employee opinion surveys, evaluations, random interviews,
and use such response to assess on how to sustain good working relationships.
8. Recruitment and Onboarding
Hiring is an employment process that follows certain steps beginning with screening resumes to
scheduling interviews to processing new employees.
A good HR practitioner must be able to determine the best candidate for the job based on
credentials and interview results.

An error made at the onset of the hiring process could result in unproductive and unhappy ending.
9. Hiring Process
HR professionals work in detail with hiring managers of various departments to effect good
hiring decisions in line with the body’s workforce needs.
They offer assistance, advice, and support to managers based on their own assessment of the
situation.
This would strengthen the conviction of both parties and thus ensure that the company extends
offers to suitable candidates.
10. Maintaining Compliance
HR must guarantee the rights of its people by complying with the laws mandated by the form and
the state.

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Included in this are the provisions for permanent working status, 13 th month pay, paid vacation
leave, sick leave, overtime pay, PhilHealth, Pag-Ibig, and SSS or GSIS contributions, tax
incentives, and many others.

Types of HR Managers, Duties and Responsibilities

HR Managers supervise the company’s activities:
1. Recruitment
2. Interview
3. Selection
4. Hiring Processes
HR Managers are involved in the following undertakings:
1. Planning
2. Directing
3. Coordinating the wok of a team specialists
4. Consultation with top management and executives
5. Serves as a link between management and staff
HR Managers are also responsible in the ensuing and charting the following pursuits
1. Overseeing benefit programs for the employees
2. Serve as consultant on matters such as equal employment opportunity and sexual harassment
3. Serve as mediators on dispute issues
4. Directs disciplinary procedures
5. Direct payroll (compensation), trainings, and other benefit programs including retirement
procedures

Types of HR managers

Labor Relations Recruiting Managers

Payroll Managers
Director

- Also called Employee - Supervise the overall - Also referred to as Staffing

Relations Managers operations of the company’s Managers
compensation department
- Oversee employment - Oversees the recruiting and hiring
policies in union and non- - Ensures timely and accurate responsibilities of the Human Resource
union settings processing of the entire aspects Department
of payroll
- Draw up, negotiate, and - Regularly supervise a team of

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administer labor contracts - Administers the following recruiting staff

covering issues such as: additional tasks:
*Grievances * Preparation of reports for the - Personally handles recruiting duties
*Wages accounting department especially when they try to fill high-
*Benefits * Resolving any payroll level positions
*Union and Management problems or discrepancies
Practices - Supports in the development of
recruiting strategies that could help
- Also handles labor them meet the staffing needs of the
complaints between firm
employees and management

- Coordinate grievance
procedures

The Changing Human Resources Role

- In the past, HRs role was mostly focused in dealing with administrative tasks parallel to accounting
functions.
- Such tasks include paying employees their due wages, administering benefits as provided by law, and
keeping track of employee’s attendance, sick and personal days off.
- HRs role has evolved and is now the process of team-based hiring of the best available talented people
and make them want to stay.
- Added roles especially for HR Managers include:
1. Being a Strategic Partner
2. An Employee Sponsor or Advocate
3. A Change Mentor
- The roles and responsibilities of HR depends on the size of the organization.
- Its functions are focused on the needs and activities of the people working in the organization.
- The role takes accountability for all of the processes and systems associated to people in an
organization.

The HRM Process

The HRM Process consists of planning, attracting, developing, and retaining the human resources
(employees) of an organization.

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Nature of HRM

- Pervasive function - Development Oriented

- Action oriented - Integrating Mechanism
- Individual oriented - Comprehensive Function
- People oriented - Continuous Function
- Future oriented

Historical Models of HRM

 The Michigan School Model

Matching Model- Congruency with organizational strategy

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Elements of Human Resource Cycle

1. Selection- the matching of available human resources to jobs
2. Appraisal- performance management
3. Rewards- incentives
4. Development- developing high quality employees

 The Harvard School Model (Harvard Framework)

Integrated parts towards a strategic vision and with a central philosophy

Characteristics of HRM in the Harvard Framework

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- Line managers accept more responsibility for ensuring the alignment of competitive strategy
and personnel policy.
- Personnel has the mission of setting policies that govern how personnel activities are developed
and implemented in ways that make them more mutually reinforcing.

 Human Resource Management System (The 5P Model)

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1. HR Philosophies
Values and guiding principles adopted in managing people
2. HR Programs and Strategies
Defining the direction which enables strategies, policies, practices to be implemented
3. HR Policies
How values, principles should be applied
4. HR Processes
Formal procedures and methods that put HR plans into effect
5. HR Practices
Informal approaches used

 Hard and Soft HRM

Hard (Instrumental) HRM Approach
- Employees are viewed as a passive factor of production, an expense
- Employees can be easily replaced and seen as disposable
- Strategic, quantitative aspects of managing HRM as an economic factor
Soft (Humanistic) HRM Approach

- Stresses active employee participation

- Gains employee commitment, adaptability and contribution of their competences to
achievement of organizational goals
- Employees are valued as assets
- Emphasizing communication, motivation and leadership

Apply
1a: Finding the Right Fit
The main function of Human Resource management is to find the right type of job for a specific need.
Please refer to the example below:

Example of a Situation Example of Who to Call Reason Why

There is hostage situation and Policemen This is a security issue and this,
the gunman threatened to kill his policemen are mandated to serve
hostages if his demands are not and protect. They are the ones
met. that can handle this volatile
situation.

Having given the example above, answer the columns below:

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Example of a Situation Example of Who to Call Reason Why

It was wet season and due to
heavy rains, your roof and
gutters are leaking. You want
the problem to be solved fast
and would need somebody to
work on it.
You put up a pizza parlor
business. One of the things you
need is for the pizza to be
delivered on time and fast.
You were driving your car in the
highway when suddenly, the
engine conked out and car stop.
You have a laptop which you
use to do assignment in school.
You were in the middle of doing
an assignment when the screen
went blank and it stopped.
You planned to celebrate your
birthday at home next month but
you do not want to bother
yourself with cooking, serving,
washing the dishes and all other
arrangements.

Assess

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