Human Resource Management

Chapter 1:
Definition and scope of Human Resource Management
Human Resource Management
- the process of employing people, training them, compensating them, developing policies
relating to them, and developing strategies to retain them.

Employees

- most valuable asset in organization

Human Resource Management

- The organizational function of managing and handling one of the most valuable assets of
the organization- it's EMPLOYEES

Three Stages of Employment Cycle

- Pre-hiring
- Hiring, and
- Post-Hiring

Frederick Winslow Taylor

- The father of scientific management

Shop Management

- book introduced by Frederick W. Taylor about management

1890-1910

- Frederick Taylor develops his ideas on scientific management. Taylor advocates

scientific selection of workers based on qualifications and also argues for incentive-
based compensation systems to motivate employees

1910-1930

- Many companies establish departments devoted to maintaining the welfare of workers.

The discipline of industrial psychology begins to develop. Industrial psychology, along
with the advent of World War I, leads to advancements in employment testing and
selection

1945-1965
- In the U.S., a tremendous surge in union membership between 1935 and 1950 leads to
a greater emphasis on collective bargaining and labor relations within personnel
management.
1965-1985
- The Civil Rights movement in the U.S. reaches its apex with passage of the Civil Rights
Act of 1964. The personnel function is dramatically affected by Title VII of the Civil Rights
Act , which prohibits discrimination on the basis of race, color, sex, religion, and national
origin. In the years following the passage of the CRA, equal employment opportunity and
affirmative action become key human resource management responsibilities.

1985-present
- Three trends dramatically impact HRM. The first is the increasing diversity of the labor
force, in terms of age, gender, race, and ethnicity. HRM concerns evolve from EEO and
affirmative action to "managing diversity." A second trend is the globalization of business
and the accompanying technological revolution. These factors have led to dramatic
changes in transportation, communication, and labor markets. The third trend, which is
related to the first two, is the focus on HRM as a "strategic" function. HRM concerns and
concepts must be integrated into the overall strategic planning of the firm in order to
cope with rapid change, intense competition, and pressure for increased efficiency

Human Resource Management

- deals with issues related to compensation, performance management, organization
development, safety, wellness, benefits, employee motivation, training and others. It is
also important to non-HR personnel.

Entrepreneur
- Studying human resource helps entrepreneurs' useful insights to have a thorough
understanding of the employment cycle and a broader idea about human resource
practices in order to meet present and future challenges ahead

Employee
- it is essential for them to get a better understanding of HR management to know their
rights and privileges as thinking, doing and feeling in the organization

Supervisors and Leaders

- studying HRM can provide supervisors and leaders a competitive edge, especially in the
aspects of recruitment, where a good boss should always bear in mind that every HR
decision and policies they formulate should be anchored to what the job requires and not
on certain biases

Prevalent in nature
- HRM features that means that HRM is present and performed in all functional areas of
management in continuous basis
Dynamic
- HRM features which HRM constantly finds ways to change situations and events for the
betterment of the organization and its employees.
Individually oriented
- HRM features which in HRM every employee is considered as human being that is
worthy of respect and compassion. HRM continually offered employees to be equipped
with new skills through training, development and other productivity improvement
schemes.
Employee oriented
- HRM features in firms HRM strategy that empowers employees makes them feel
appreciated for the job they do.

Forward looking
- HRM features that an organization's HRM functions to be successful, it should effectively
envision and assess labor needs for a given period of time. Doing so will assure the
managers that only the competent, motivated people with right match of qualifications
are joining the company.

Growth oriented
- HRM features that through HRM process a carefully planned design for employee
development is almost compulsory if the organization aims for excellence an example of
which is practicing job rotation.

PERSONNEL MANAGEMENT:
refers to the people manning the organization. Managing them is referred to as personnel
management.
Particularly involved with recruitment, selection, and administration of the workforce.

HRM
effective supervision and management of employees capabilities and other attributes

CHAPTER 2 :

EQUAL EMPLOYMENT OPPORTUNITY(EEO) AND THE LAW

Employment Discrimination
- The unjust and prejudicial treatment of different categories of people or thing specifically
on the basis of their age, race, gender and religious beliefs.
- The goal of this law is to make certain that an individual who seeks employment the
equal chances to vie for it.

TWO CATEGORIES OF PEOPLE PROTECTED BY EEO LAWS:

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
Protected Groups
- Sub categories of people within each protected classification
THE COURT DEFINES DISCRIMINATION AS:

Intentional Discrimination (disparate treatment)

- a kind of lawful discrimination wherein the employer makes a gesture that intentionally
treats an individual differently on the basis of some form of criteria

Unintentional Discrimination (Disparate Impact)

- an indirect type of discrimination whereby a policy or standard that is work-related gives
unequal chances to individuals from various protected group

EEO VS. AFFIRMATIVE ACTION:

Equal 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/her qualifications
inventory
Affirmative Action
- goes beyond equal employment opportunity by compelling employers to take certain
steps to provide those in protected group fair chances for employment

Republic Act No. 7277

- AN ACT PROVIDING FOR THE REHABILITATION, SELFDEVELOPMENT AND SELF-RELIANCE OF
DISABLED PERSONS AND THEIR INTEGRATION INTO THE MAINSTREAM OF SOCIETY AND FOR
OTHER PURPOSES.
Section 1. Title.
- This Act shall be known and cited as the "Magna Carta for Disabled Persons.“

Magna Carta for Disabled Persons

- Republic Act No. 7277 otherwise known as

Disabled Persons

- are those suffering from restriction or different abilities, as a result of a mental, physical
or sensory impairment, to perform an activity in the manner or within the range
considered normal for a human being

TITLE II
RIGHTS AND PRIVILEGES OF DISABLED PERSONS
CHAPTER I
EMPLOYMENT

Sec. 5 Equal Opportunity for Employment

- No disable person shall be denied access to opportunities for suitable
employment. A qualified disabled employee shall be subject to the same terms
and conditions of employment and the same compensation, privileges, benefits,
 fringe benefits, incentives or allowances as a qualified able-bodied person. Chan
robles virtual law library

Sec. 6. Sheltered Employment

- If suitable employment for disabled persons cannot be found through open
employment as provided in the immediately preceding Section, the State shall
endeavor to provide it by means of sheltered employment. In the placement of
disabled persons in sheltered employment, it shall accord due regard to the
individual qualities, vocational goals and inclinations to ensure a good working
atmosphere and efficient production cralaw
Sec. 7 Apprenticeship
- Subject to the provisions of the Labor Code as amended, disabled persons shall
be eligible as apprentices or learners: Provided, That their handicap is not as
much as to effectively impede the performance of job operations in the particular
occupation for which they are hired; Provided, further, That after the lapse of the
period of apprenticeship, if found satisfactory in the job performance, they shall
be eligible for employment.cralaw
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.cralaw (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%) of the total amount paid as
salaries and wages to disabled persons: Provided, however, That such entities
present proof as certified by the Department of Labor and Employment that
disabled persons are under their employ: Provided, further, That the disabled
employee is accredited with the Department of Labor and Employment and the
Department of Health as to his disability, skills and qualifications. (c) Private
entities that improve or modify their physical facilities in order to provide
reasonable accommodation for disabled persons shall also be entitled to an
additional deduction from their net taxable income, equivalent to fifty percent
(50%) of the direct costs of the improvements or modifications. This Section,
however, does not apply to improvements or modifications of facilities required
under Batas Pambansa Bilang 344. chan robles virtual law library
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.
- The State shall also take measures to ensure the provision of vocational
rehabilitation and livelihood services for disabled persons in the rural areas. In
addition, it shall promote cooperation and coordination between the government
 and nongovernmental organizations and other private entities engaged in
vocational rehabilitation activities.

DSWD (Department of Social and Welfare Development)

- department that shall design and implement training programs that will provide disabled
persons with vocational skills to enable them to engage in livelihood activities or obtain
gainful employment.
Sec. 10 Vocational Guidance and Counseling
- The Department of Social and Welfare and Development, shall implement
measures providing and evaluating vocational guidance and counseling to
enable disabled persons to secure, retain and advance in employment. It shall
ensure the availability and training of counselors and other suitably qualified staff
responsible for the vocational guidance and counseling of disabled persons.
Chan robles virtual law library
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) shall promulgate the rules and regulations necessary to
implement the provisions under this Chapter

Republic Act No.7877

- Anti-Sexual Harassment Act of 1995
SEC. 2. Declaration of Policy
- The State shall value the dignity of every individual, enhance the development of
its human resources, guarantee full respect for human rights, and uphold the
dignity of workers, employees, applicants for employment, students or those
undergoing training, instruction or education. Towards this end, all forms of
sexual harassment in the employment, education or training environment are
hereby declared unlawful.
Sec. 3 Work, Education or Training
- Related, Sexual Harassment Defined. - Work, education or training-related
sexual harassment is committed by an employer, employee, manager,
supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or
any other person who, having authority, influence or moral ascendancy over
another in a work or training or education environment, demands, requests or
otherwise requires any sexual favor from the other, regardless of whether the
demand, request or requirement for submission is accepted by the object of said
Act.
Se. 4 Duty of the Employer or Head of Office in Work-related, Education and
Training Environment
- It shall be the duty of the employer or the head of the work-related, educational
or training environment or institution, to prevent or deter the commission of acts
of sexual harassment and to provide the procedures for the resolution, settlement
or prosecution of acts of sexual harassment
 2 TYPES OF SEXUAL HARASSMENT
Quid Pro Quo
- refers to a difference in position between the harasser and the victim, such as a
manager or supervisor.
- It occurs when the manager/supervisor promises an employment benefit in
exchange for a sexual favor, or a promise to refrain from a negative action in
exchange for the favor. If a supervisor/manager threatens to withhold a job
benefit and/or threatens adverse reprisal if the sexual favor is not performed,
they have committed quid pro quo sexual harassment

Hostile Work Environments

- may be created by a coworker, a supervisor or manager, repeat clients, vendors,
visitors, contractors, or other employment staff which have significant contact
with an employee. It is important to note that not every isolated incident, petty
slight, or annoyance will cause a work environment to rise to the level of illegality
-occurs when an employee makes unwanted sexual advances or behaviors
towards a coworker, and their actions create an offensive and uncomfortable
atmosphere. There does not need to be a discrepancy in power, such as a
manager/supervisor and employee dynamic for this type of harassment to occur
-
Wage Rationalization Act 1989
- The question of wages in the Philippines is regulated by this act

Republic Act No. 7192

- Women in Development and Nation Building Act

Section 1. Title.
- This Act shall be cited as the “Women in Development and Nation Building
Act.”
Sec. 2. Declaration of Policy.
- The State recognizes the role of women in nation building and shall ensure the
fundamental equality before the law of women and men. The State shall provided
women rights and opportunities equal to that of men

Republic Act No. 8042

- An act to institute the policies of overseas employment and establish a higher
standard of protection and promotion of the welfare of migrant workers, their
families and overseas Filipinos in distress, and for other purposes.

Magna Carta of Public Health Workers of 1992

- Republic Act 7305 otherwise known as _______
SECTION 1. Title.
- This Act shall be known as the “Magna Carta of Public Health Workers.“
-
SEC. 2. Declaration of the Policy.
- The State shall instill health consciousness among our people to effectively carry
out the health programs and projects to the government essential for the growth
and health of the nation. Towards this end, this Act aims:
(a) to promote and improve the social and economic well-being of the health workers,
their living and working conditions and terms of employment;
(b) to develop their skills and capabilities in order that they will be more responsive
and better equipped to deliver health projects and programs; and
(c) to encourage those with proper qualifications and excellent abilities to join and
remain in government service.

SEC. 3. Definition.
- For purposes of this Act, “health workers” shall mean all persons who are
engaged in health and health-related work, and all persons employed in all
hospitals, sanitaria, health infirmaries, health centers, rural health units, barangay
health stations, clinics and other health-related establishments owned and
operated by the Government or its political subdivisions with original charters and
shall include medical, allied health professional, administrative and support
personnel employed regardless of their employment status.

Local Government Code, 1991

- Act provide seats for women in all local legislative assemblies or LGU nationwide

Executive Order Concerning the Equality of Access to Education

- 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.

Republic Act Concerning Private Education (6728) 1989

- This act grants government assistance to student and teachers in private
education
General Appropriations Act 1995
- This act includes a provision on gender-responsiveness projects

Labor Code of the Philippines 1974

- stands as the law governing employment practices and labor relations in the Philippines.
It was enacted on Labor day of 1974 by President Ferdinand Marcos, in the exercise of
his then extant legislative powers. It prescribes the rules for hiring and termination of
private employees; the conditions of work including maximum work hours and overtime;
employee benefits such as holiday pay, thirteenth month pay and retirement pay; and
the guidelines in the organization and membership in labor unions as well as in collective
bargaining
Article 130. Night work prohibition
- No woman, regardless of age, shall be employed or permitted or suffered to
work, with or without compensation

Articlr 133. Maternity leave benefits

- a) Every employer shall grant to any pregnant woman employees who has
rendered an aggregate service of at least six months for the last twelve months,
maternity leave of at least two weeks prior to the expected date of delivery and
another four weeks after normal delivery or abortion, with full pay based on her
regular or average weekly wages. The employer may require from any woman
employee applying for maternity leave the presentation of a medical certificate
stating that delivery will probably take place within two weeks.

Article 135. Discrimination prohibited

- It shall be unlawful for any employer to discriminate against any woman employee with respect
to terms and conditions of employment solely on account of her sex.

Article 136. Stipulation against married

- It shall be unlawful for an employer to require as a condition of employment or
continuation of employment that a woman employee shall not get married, or to stipulate
expressly or tacitly that upon getting married a woman employee shall be deemed
resigned or separated or to actually dismiss, discharge, discriminate or otherwise
prejudice a woman employee merely by reason of her marriage

Article 137. Prohibited acts

- a) It shall be unlawful for any employer: (1) To deny any woman employee the benefits
provided for in this Chapter or to discharge any woman employed by him for the purpose
of preventing her from enjoying any of the benefits provided under this Code; (2) To
discharge such woman on account of her pregnancy, while on leave or in confinement
due to her pregnancy; or (3) To discharge or refuse the admission of such woman upon
returning to her work for fear that she may again be pregnant.
DSWD (Department of Social and Welfare Development)
- department that shall design and implement training programs that will provide disabled
persons with vocational skills to enable them to engage in livelihood activities or obtain
gainful employment.
DOLE (Department of Labor and Employment)
- department that shall likewise design and conduct training programs geared towards
providing disabled persons with skills for livelihood
 CHAPTER 3: PRE-HIRING, HIRING AND POST-HIRING
THE PRE-HIRING STAGE
- This stage includes two important HRM practices which these practices set the
foundation for other HRM practices;
- human resource planning
- task analysis

HUMAN RESOURCE PLANNING

- helps managers identify the right number and type of people they need to
successfully execute their overall plan within a predetermined period of time.
- Use to ensure that there is a match between the qualifications of potential hires
and the requirements of the job to avoid workforce shortage or surplus.
JOB ANALYSIS
- Methodical way of collecting, interpreting, and storing information about specific
jobs.
- Helps identify the content of the work as well as the worker requirements needed
to perform the job.
- Managers will be able to understand the qualifications needed to do the job know
the duties of the incumbents, and describe the nature and conditions of the work
to be done.

HIRING STAGE
- This stage comprises recruitment and selection practices.
- Deals with policies and procedures used by organizations to fill an open position
due to resignation, retirement job abandonment, promotion, or transfer.

RECRUITMENT
- Serves as a tool to locate and entice job seekers who are eligible for the job.
- If could be internal or external
SELECTION
- Choosing the best and the most qualified candidate from the pool of applicants.
- To be effective, it should abide by legal laws and should rightfully match
employees' skills with the job requirements

THE POST-HIRING STAGE

- The aim of this stage is to implement HRM practices that will improve and sustain
employee work performance level.
- Includes training and development, appraising, and managing performance,
compensation and benefits, employee safety and health, and separation.
 - Training and development are both learning experiences designed to enhance
workers' capabilities
TRAINING

- provides employees the opportunity to learn and acquire additional skills and
abilities intended for the betterment of what they are currently doing.

DEVELOPMENT

-more extensive because it prepares employees for a possible upward step to the
corporate ladder via intensive management development programs that will
squeeze their potentials and skill levels, thus improving the overall organizational
performance
APPRAISING AND MANAGING PERFORMANCE

- Involve assessing employees, past and present performance levels relative to

certain performance measures.
- Determine whether employee performance conforms or deviates from
organizational standards.

COMPENSATION

- Consists of the pay and benefits received by employees from their employers in
return for their services.

PAY

- comes in the form of either a wage or a salary.

BENEFITS

- Either monetary or non-monetary form of compensation granted to employees

over and above their pay.
- Classified as those mandated by the law (such as paid vacation and sick leaves,
among others) and those coming from the generosity of the company (like
clothing allowance, meal subsidy, employee discounts, and others).

THE POST HIRING STAGE

- To protect the organization and its employees from danger and illness, a
company through the initiatives of its human resource management office should
create and strictly impose health and safety policies to guarantee that every
employee is aware of his or her responsibilities in preventing (if not totally
eliminating) and fostering a safe and healthy work environment
 - Terminating an employee in the Philippines is a sensitive and serious personal
issue.
- The Philippine Constitution says, no involuntary servitude in any form shall exist
except as punishment for a crime whereof the party shall have been duly
convicted (Phil. Labor Code).

CURRENT TRENDS IN HUMAN RESOURCE MANAGEMENT

Human resource management is not just about recruitment, selection and compensation. Take
into account for example some direct and negative effects of anti-discrimination laws on a
company's recruitment and selection practices.

Here are some factors that may have greater influence on HRM practices:
1. An increasing workplace cultural diversity. This happens once a company employs
workers with different backgrounds.
2. An emphasis on work and family issues. Several firms are responding to the needs of
families by providing managed-care programs, flexible time, and telecommuting.
3. The tremendous growth of part-time and temporary employees. The use of contingent
workers is now expanding rapidly. It has extended between industries from
manufacturing to services and other occupations.
4. The dynamic upgrading of technology. In the present time, each part of HR is affected
by the power of technologies that further improve people management and workers,
competencies. Thus, it is essential for an HR person to keep up-to-date with
technological developments that greatly impact the type of people who manage the
business.

HR: GENERALIST vs. SPECIALIST

•
Anybody who aspires to join the field of HRM may opt to either be a generalist or
specialist.
HR GENERALIST JOB
• Found in small- or medium-sized organizations.
• Perform all HRM activities such as human resource planning preparation of a
job analysis including job description and specification, recruitment and
selection among others
HR SPECIALIST JOB
 More focused on a specific HRM task.
 This is especially true in larger companies.
  The human resource department of the 21st century will prefer
specialization over a generalized and typical one-size-fits-all approach to
people management.
• Nonetheless, regardless of the designation or specialization, HR managers
will forever serve as an essential bond between employees and employers
TRADIONAL SPECIALTY AREAS
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.
Recruitment and Selection
- determines job vacancies; locates and attracts qualified job candidates; decide
recruitment method to be used; notifies job candidates; studies curriculum vitae,
prepares for interview sessions, administers employment tests; and make hiring
decisions.
NEW SPECIALTY AREAS
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 manage health care to plan for a
better option of its employees.
Diversity Management
Develops guidance for ensuring that discriminatory practices are prevented and that
individuals are given equal chances 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. It is at the core of every professional.
 HR PRACTITIONERS
Need to express strong belief of integrity in order to build a work environment
characterized by confidence and credibility

 HR PROFESSIONALS
 Must serve with ethical integrity. They are encouraged to stick to ethical
codes of conduct to direct their manner of handling people.
  HR PROFESSIONALS AND PRACTITIONERS
 The main players and models of ethical behavior.
 Take a firm stand to defend the employees even if it will mean the loss of
their job. Should behave ethically themselves
CHAPTER 4: HUMAN RESOURCE PLANNING
Human Resource Planning
- is an HRP 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 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 needs.
- Serve as a link between human resource management and the entire strategic
plan of the organization.
Strategic Planning
- the art of creating specific business strategies, implementing them, and
evaluating the results of executing the plan, in regard to a company’s overall
long-term goals or desires.
Corporate Strategic Planning Human Resource Planning
Know the Purpose of your existence Formulate management philosophy
Specify Long term goals Create a healthy company culture
Define your values and principles Outline code of conduct
Opportunities and Threats Demographic trends

Environmental scanning Outside supply of labor

Industry competitor analysis Competitor benchmarking
Strengths and weaknesses Personality and competencies
Forecast demand for employees Predict HR demand
 Resources, people, process, systems Predict HR availability and
Competitive strategy sustainability
Action Plan Effectiveness and efficiency
Strategy alignment Productivity improvement programs
Design, structure, and systems among External fit/alignment/internal fit
others
Allocate resources Analyze demand and supply gap
Leadership, communication/change Termination and separation
Assessment of goals Enhancement programs
Alignment of strategies to goals Measure effectiveness of initiatives
Providing feed back Keeping track of activities

THE PROCESS OF HUMAN RESOURCE PLANNING

1. Organizational Mission, goals, Objectives, and Strategic requirements
2. Current manpower inventory
3. Forecasting Demand and supply
4. Manpower gaps
5. Employee plan
6. Decide Action

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

Conduct a head count of present employees
Know the future demand for employees
Determine the number of employees you currently have and how many you actually
need. Study the gap between demand and supply.
Estimate the possible increase or decrease in human resources
Decide whether to hire or to downsize.

• The Mission explains why the organisation exists – its purpose, the reason
why the organisation was originally founded.

• The Vision explains what the organisation will accomplish – what will the
organisation look like in the future (for internally-facing Visions) or what will be
 different about the world as a result of the organisation’s actions (for externally-
facing Visions).

• Goals are easy-to-remember statements of what needs to be accomplished to

move towards the Vision. They differ to Strategy, with Goals
explaining what needs to be achieved, while Strategy explains how this will be
achieved

• Objectives take the level of detail down further still to provide much more
specific, quantifiable, time-sensitive statements of what the goal actually
means and how you will know you are reaching it. You might have multiple
Objectives for each Goal, all helping you assess the effectiveness of your
strategy

• Strategy operates at a high-level and takes a long-term view to determine the

approach or approaches your organisation takes to navigate obstacles in order
to reach Goals and move towards the overall Vision.

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

- 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 organization
- This requires a serious study of the strengths and deficiencies of the HR team so
they won’t end up experiencing surpluses or shortage 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.
Predicting a Firm’s Demand for Employees
- A complete forecast should append recent data, previous experience, 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 – numerical information or mathematical
producers in analyzing data.
Trend Analysis – is based on the concept that what has happened in the past
will give the HR office an idea what will take place in the future

Ratio Analysis – is the process of anticipating future HR demands by calculating

the precise ratio between certain variables.

Regression Analysis – is the 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.
QUALITATIVE APPROACHES – Predict future HR needs based on the opinions or gut
feel or 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
Predicting the Supply of Employees
Supply Forecasting:
First – The organization forms a cluster showing the line of positions from which
employees can anticipate growth. This cluster may include job title, function, and degree
of autonomy.
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 was 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
Dealing with Workforce Undersupply
An undersupply of personnel indicates that there are more jobs than workers, if this
happens the first move of the company should be hire additional employees, However,
the company may consider the following alternatives:
- Encourage overtime
- Create another work shift
- Job re-assignment
- Strengthen retention program
CHAPTER 5
Job or task analysis

- 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 traits
and attributes of the person needed to accomplish the work favorably.
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.
Job specification

- shows the specific qualifications and individual characteristics expected to match

the job requirements.
Give/State in Collecting Job Analysis Information

- Interviewing current employees- The job analyst elicits information about the
job from current employees
- 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.
Give/State the Important Components of Job Analysis

- 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.
- Job Context- this is about the conditions or the environment where the job is
performed.
- Worker Requirements- these are qualifications that are considered by the
employer as vital to the successful execution of the job.
Worker Requirements needed for effective job performance

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.
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
Flexible Time or 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 total number of hours employees are obliged to work are similar
as that under the regular work time.
Sharing
- This is a job arrangement where two employees with temporary or parttime
status perform a job that otherwise can be done by a full-time employee.
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.