CHAPTER 1: NATURE AND CONCEPT OF MANAGEMENT

Management - refers to the act of bringing together the work activities to achieve the organization’s
goals and objectives. Basically, it means teamwork. The manager should be able to work with his
subordinates. It is essential that in any organization, the leader-manager must realize the importance of
people working harmoniously with the aim of effectively reaching the target goals of the company.

5 Functions of Management: (ACRONYM: POSDICON)

PLANNING – includes identifying the aims and purposes of the business, its tactics and developing plans
to incorporate and synchronize activities.

ORGANIZING - a function that ensures that each job or position is not duplicated and the corresponding
authority is properly identified with the responsibilities assigned to the person concerned.

STAFFING – identifies the qualified potential employees.

DIRECTING (or LEADING/MOTIVATING) – refers to encouraging people to work towards the attainment
of the company’s goals and objectives.

CONTROLLING – involves evaluating the actual performance, compare it with the standards and take the
action needed.

Managers are expected to execute the above management functions whether he works for his own
company or employed by any existing firms. The challenges that a manger will face includes managing
people who comes from different culture. In addition, it also includes handling workforce who has been
with the organization for the last two to ten years. It takes guts for a newly appointed manager to earn
the respect from his colleagues. Hence, there are skills that all managers must be able to acquire.

WHO ARE THE MANAGERS?

Robbins (2005) stated in his book that a “manager is someone who works with and through
other people by coordinating their work activities in order to accomplish goals.” Hence, we may
conclude that a manager’s mission is not about personal accomplishment – it’s more on assisting other
people succeed in their respective jobs. In addition, it may also mean that a manager has to ensure that
the people he manages will work together for the achievement of the company’s objectives.

Robbins (2205) further identified the different kinds of managers as well as the skills, to wit:

CLASSIFICATION OF MANAGERS

First Line Managers (Supervisors) – administers the work of operating employees.

Middle Managers – administers the task of the supervisors and in his absence, the activities of the
operating employees.
Top Managers – they are in-charge for making company-wide decisions and setting purpose, objectives
and plans that affect the whole firm.

3 MANAGEMENT SKILLS

Technical Skills – refers to the expertise of the person in his area of specialization.

Human Skills – refers to how one can blend with other people.

Conceptual Skills – refers to the capability of the manager to conceptualize ideas for the entire
organization.

ROLES OF THE MANAGER

The manager is expected to execute different roles as he performs his various tasks, to wit: DUTY

Figurehead Role – managers perform traditional responsibilities.

Liaison Role – communicates with his head, peers, and people outside his organization.
Monitoring Role – he seeks important information that will be relevant in decision making. The quality
of the information will enable him to deliver sound decisions.
Dissemination Role – managers convey the messages received from the subordinates to members of
the organization.
Spokesman Role – managers convey the information or speaks on behalf of the whole organization to
outsiders.
Resource Allocation Role – he decides to who gets the resources.
Entrepreneurial Role – he initiates improvement changes.
Leader Role – he motivates people to perform better.
Disturbance Handler Role – he reconciles and put harmony in the workplace.
Negotiator Role – he ensures to get the best bargain in any negotiation.

EVOLUTION OF MANAGEMENT THEORIES

Management existed many years ago although during those times the term “manager” doesn’t exist.

INDUSTRIAL REVOLUTION came in when machineries were introduced during the pre-twentieth century.
This resulted to mass production and expansions of factories. In effect, these developments demanded
formal management guidelines. In order to guide managers, thus, the emergence of management
theories. Some of these theories are discussed below:

SCIENTIFIC MANAGEMENT THEORY

Frederick Taylor introduced this management theory at the time that there were shortages in skilled
labour at the start of the 20th
Taylor emphasized the importance of using the “One Best Method” in order to systematize the process
of creating a product. He also initiated the “Differential Rate System” wherein he encouraged the owner
of the company to increase the wages of workers who are considered to be productive.

Taylor’s followers – the husband and wife team named Frank and Lilian Gilbreth devised the Scientific
Management Theory later on.

Contributions of Scientific Management Theory:

- Production miracle -
- Efficiency techniques
- Encouraged the managers to seek the “one best method” of getting a job done
- Limitations of Scientific Management Theory:
- Poor performers were laid off as well as the increased production resulted from terminating the
services of some workers.
- Changes in piece rate left the workers producing more output for same income.
- Stress and tensions among the workers speed up with their work.
- Social needs of the workers were overlooked.
- Unionism emerged due to exploitation of the workers. There were also exploitation of customers in
terms of product quality.

HENRY GANTT – an associate of Taylor; he abandoned the “Differential Rate System” due to its small
incentive effect on production; he also initiated the charting system for production scheduling known
today as the GANTT CHART. It refers to a table or diagram that reflects the status of the stages of
production.

FRANK and LILIAN GILBRETH – this husband and wife team made a devise called MICROCHRONOMETER.
It is intended to identify the hand and body motions of a labourer primarily to determine the length of
time spend doing each motion.

GENERAL ADMINISTRATIVE THEORY

This was developed by Henri Fayol to address the issue as to how a complex company such as factories
can be managed efficiently and effectively.

Fayol developed the 14 Basic Principles of Management:

1. Division of work – it involves specialization of the workforce by dividing a small part of work. It
promotes mastery among the workers.
2. Authority and Responsibility – authority means the power or the right entrusted to make the
work possible; Responsibility means the duty of work assigned to a particular position. The two
terms are inseparable.
3. Unity of Command – there must only be one superior that gives directives/orders to employees
to avoid confusion.
4. Discipline – giving respect and comply with the policies of the organization.
 5. Unity of Direction – an organization should have a single plan of action to guide its manager and
workers.
6. Subordination of Individual Interest Over General Interest – the welfare of the organization
should come first over that of the interest of an individual.
7. Remuneration – compensation must be fair.
8. Centralization – authority are concentrated at the top hierarchy of an organization.
9. Scalar Chain – refers to the sequence of positions from the highest to the lowest rank.
10. Order – people and materials should be in the right place at the right time.
11. Equity – respect, fairness, impartiality.
12. Stability of Tenure – organization should promote long term employment.
13. Initiative – subordinates exercising creativity without directives from subordinates. Managers
should encourage them to propose and execute their ideas or plans.
14. Esprit de Corps – French word which means “Unity is Strength”. Managers should promote team
spirit and each employee should be a team player.

MAX WEBER – a German theorist who introduced BUREAUCRACY – a form of organization that
emphasized division of work, the rules and regulations, chain of command and impersonal work
relationship.

MARY PARKET FOLLET – she stressed the significance of belonging to a group as a way for people to
grow in the organization.

ORGANIZATIONAL BEHAVIOR THEORY

A theory that refers to the behaviour of people at work.

Contributors to this theory include Chester Barnard, Mary Parker Follet, Robert Owen, and Hugo
Munsterberg.

The best approach to work and productivity is through understanding of the worker. Hence, the
manager is expected to be good in human skills.

THE HAWTHORNE STUDIES

An experiment conducted by the Western Electric Company in Cicero, Illinois. The engineers of the said
firm wanted to test the effect of different illumination levels on worker’s efficiency. The results were
confusing and so they referred the matter to a technology; legal, laws and government activities; and
market, economic and social trends.
CHAPTER 2: THE FIRM AND ITS ENVIRONMENT
Organization - A group of people working together to accomplish some specific purpose/goals. It is a
social system that is formed to execute well desired goals; they have a proper arrangement to facilitate
efficient internal harmonization and to be able to act in response to the external environment.

Organization as a system Organizational system ‐ consists of an assortment of interacting mechanism

(resources/people) that acquires inputs (goals) from the outside environments, processes them
(structure and processes) and creates an output (Product/services) to be consumed back by the outside
environment (customers).

Business environment - The combination of both external and internal factors that affect a firm’s
operating condition. The business environment can comprise factors such as: suppliers and clients; its
competitors and owners; development in technology; legal, laws and government activities; and market,
economic and social trends.

Internal Environment/Microenvironment

It includes forces affecting operations that are within the control of the company, that is, the company
is able to manipulate these forces towards the firm’s advantage. The internal environment consists of
five (5) equally powerful forces, namely, Management, Marketing, Finance, Production and Operations,
and Human Resources. The situations, factors, events and entities in the business entity that affects its
choices and actions mainly the behavior of the employees.

Factors that are repeatedly considered part of the internal environment incorporate the firm's
leadership styles, mission and vision statement, and its organizational culture.

1. Management ‐ This pertains to the organizational setup, including goals and objectives,
organizational structure, managerial composition, company philosophy, visions, missions,
policies, programs, plans, strategies and tactics, etc.
2. Marketing ‐ This includes the marketing program of the company covering the basic marketing
mix-‐product, price, place and promotion. Specific items falling under this force are product
quality, packaging, pricing, strategies, intermediaries used, advertising efforts, public relations,
company image and reputation, distribution channels, “green marketing campaigns”,
warehousing, discounts and other sales promotion tools, market segmentation, and a lot more
3. Finance ‐ this includes the company’s resources. Items covered under this force are profitability
indices, financial performance, balance sheet and income statement results, and operating
expenses, among others
4. Production and Operations ‐ This includes all aspects of manufacturing (pertaining to
industries) or operations (for commercial and service enterprises). Specific items falling under
this force are quality and sources of raw materials, machinery and equipment, production
efficiency, service reliability, technical expertise, production credo, scheduling, delivery, sales
service, maintenance, factory location, etc.
 5. Human Resources ‐ This aspect pertains to the people in the organization. Specifically, it
includes motivation, compensation, training and development, promotion, recruitment,
selection, placement, hiring policies and procedures, fringe benefits, performance appraisal,
grievance handling mechanisms, management -‐labor relations, etc.

External environment/Macro-‐environment

It contains of the forces that are away from a company’s control. The macro-‐environment includes
the economic, the socio cultural, the political and legal, the technological, and the natural environment.
This affects entities, events, condition, and factors surrounding an organization that influence its choices
and actions, and find out its opportunities and risks. It is also called operating environment.

1. Economic Environment ‐ This environment includes such forces as balance of trade, balance of
payments, foreign exchange, import‐export situations, competitive situation, taxation, energy
and oil prices, employment, GNP, GDP, per capita income, and other measures of economic
performance.
2. Socio Cultural environment ‐ This environment pertains to people and their culture. Examples
of forces under this type of external environment are education, customs and traditions,
religious affiliations, perception, cultural values, demography, ethnic and racial diversity, etc.
3. Politico Legal environment ‐ Politico pertains to government while legal pertains to law. This
environment includes legislation regulating business, legal restrictions, elections, political
stability, presidency, peace and order situation, armed forces, etc.
4. Technological environment ‐ This refers to the advancement of science and technology and
includes new inventions or discoveries, technological breakthroughs, research and
development, information technology, scientific experiments, etc.
5. Natural environment ‐This includes typhoons, earthquakes, the El Niῇo and La Niňa
phenomena, pollution, ozone depletion, deforestation, preservation and extinction of animal
species. It is important for a company to carefully evaluate and understand the aspect of both
its internal and external environments because it can affect their firm and how it should be run.

Business Organization according to its forms

These are the basic forms of business ownership:

Sole Proprietorship – it is a business owned by only a single person. It is easy to set-‐ up and is the least
expensive among all forms of ownership. The owner of the business faces unlimited liability; meaning,
the creditors of the business may run after up to the personal assets of the business owner if the
business cannot pay them. The sole proprietorship form is typically adopted by small business
organization.

Partnership - it is a business entity operated and owned by two or more persons who contribute
possessions into the firm. The partners divide among themselves the profits and loss of the business. In
general partnerships, all partners have limitless liability. In limited partnerships, creditors cannot run
after to the personal assets of the limited partners.
Corporation – it is a business entity that has a separate legal personality from its owners. Ownership in a
stock corporation is represented by shares of stock. The owners (stockholders) benefit from limited
liability but have limited involvement in the company's operations. The board of directors, an elected
group from the stockholders, controls the activities of the corporation.

Cooperative – it is a business organization owned and operated by a group of individuals and is created
for their mutual support and benefit. The persons making up the group are called members.
Cooperatives may be incorporated or unincorporated.

Some examples of cooperatives are: water and electricity (utility) cooperatives, cooperative banking,
credit unions, and housing cooperatives.

SWOT Analysis

SWOT analysis matrix is a structured assessment tool used to evaluate an organization, industry, a
place or even a person in terms of a set of priorities like strengths, weaknesses, opportunities and
threats. (Albert Humphrey 1960).

SWOT is a basic, analytical framework that determines what a firm can and cannot do, as well as its
potential opportunities and threats. A SWOT analysis takes information from an environmental analysis
and separates it into internal factors such as strengths and weaknesses, as well as its external factors
such as opportunities and threats.

 Strengths and Weaknesses (Internal environment)

Strengths - Is something that a company is good at doing, features that organizations possess. It
identifies what an organization excels at, allowing decisions on how to achieve a competitive and
significant advantage.

Weaknesses ‐ Are characteristics that a company lacks and put the firms at a disadvantage relative to
other business entities. It stops a business entity from performing at its best level. They have the
potential to reduce progress or to give a competitive advantage to the competitor. A business firm
needs to lessen weaknesses and analyze how they can be enhanced.

 Opportunities and Threats (External Environment)

Opportunities - Are possibilities in the external environment that the organizations can utilize to their
advantage. It refers to favorable external factors that a company can use to its benefit. If successfully
utilized, opportunities have the potential to create a competitive advantage.

Threats ‐Are challenges in the external environment that can cause an eminent problems to a business
firms. It refers to aspects that have the potential disadvantage impact to an organization
CHAPTER 3: PLANNING
Planning - Refers to the method of assessing in advance the purpose and goals of an organization and
the appropriate courses of action to help achieve the said purpose and goals.

What are the purposes of Planning?

 It can provide direction to managers & staff.

 It reduces improbability
 It lessens waste and redundancy
 It sets the standards used in controlling.
 Formulate a decision from several alternatives

Types of Plans

⮚Robbins & Coulter, 2016 identified the most popular ways to describe organizational plans, to wit:

1. Breadth
 Strategic plans – applies to the whole organization create the company’s overall goals
& seek to position the firm in terms of its environment.
 Operational plans – plans that specify the information of how the overall goals are to
be attained.
2. Time frame
 Short‐term plans – plans within less than one year
 Intermediate plans – period between 1-‐5 years
 Long‐term plans – plans exceeding five years
3. Specificity
 Directional – plans that are bendable and that set out universal guidelines.
 Specific – plans that are visibly defined and leave no room for explanation
4. Frequency of use
 Single‐use plan – A one-‐time plan specifically designed to meet the needs of an
exceptional situation.
 Standing plan – Ongoing plans that provide direction for activities performed over and
over again.

Planning at different levels in the firm

⮚Managers may have similarities in planning but maybe different with the kinds of plans and the time
spent in the planning activity.
 For Top ‐ level managers like the CEO, COO, President & the likes, their plans will expectedly consume
longer time frame. It would include developing the vision/mission of the company as well as its
objectives, rules and procedures.

For the Middle ‐level managers, they will be the one in charge of making the general plans of the top-‐
level management turned into more specific plans so that each unit of the firm will be able to work
towards its attainment.

The First‐level managers - however, are supposed to execute plans that would involve schedules of
employees, deciding what work to be done and develop structures to obtain these goals.

Planning Techniques & Tools

⮚Robins & Coulter, 2011 identified three methods that have been developed to help managers execute
the planning function:

❑ Environmental Scanning – examines the large amount of information to predict and infer changes in
the environment.
❑ Competitor intelligence – it seeks to classify who are the business competitors, its’ strength and as to
how their actions will influence the organization. Forecasting – predictions of outcomes
❑Forecasting -‐ prediction of outcomes

Two categories:
Quantitative forecasting – applies a set of mathematical rules to a series of past data to predict
outcomes.
Qualitative forecasting – It uses the judgment and opinions of knowledgeable individuals to predict
outcomes.

❑Benchmarking – the search for the best practices among the competitors or non‐competitors that
lead to their superior performance.

Application of planning tools and techniques

1. Ascertain & clearly define the overall objectives of the organization – Specific goals that a firm
wants to achieve must be vividly stated.
2. Assess your current position relative to objectives – evaluating the strengths & weaknesses of
the organization will help in determining if the goals are achievable or if the goals have to be
modified.
3. Forecast – make a projection as accurately as possible.
4. Setting up of derivative plans – once the overall plans have been adopted, it is essential to
come up with a derivative plans for each company segment to support the formal plans
established.
 5. Implement plan and evaluating its results – effective implementation of the plans would be the
key factor for its success. However, re-‐evaluation of the plans must be done periodically to
measure its effectiveness.

Decision‐Making

⮚Choosing the appropriate course of action among alternatives to generate a desired outcome.

The Manager as Decision Maker

⮚Almost everybody in an organization makes decisions from the lowest level to the highest level of
management. In fact, even rank and file employees do make decisions. Managers, as to be expected, are
expected to become the decision makers simply because their positions require them to do so.

Steps in Decision-Making

1. Define the problem ‐ A problem is a difference between an existing and a preferred state of
affairs.
2. Identifying Decision Criteria – The manager must decide what’s important in making a decision.
3. Allocating Weights to the Criteria – The decision maker must evaluate the items in order to give
them the correct priority in the decision.
4. Developing Alternatives – This would require the manager in charge to list possible alternatives
that could resolve the problem.
5. Analyzing Alternatives – The manager must analyze each alternative by evaluating it against the
criteria recognized in Steps 2 and 3. From this comparison, the strengths and weaknesses of
each alternative become evident.
6. Selecting an Alternative – Once all the significant criteria in the decision have been weighted &
possible alternatives analyzed, we merely choose the alternative that produced the highest total
in Step 5.
7. Implementing the Alternative – Applying the alternative into action.
8. Evaluating Decision Effectiveness – This involves analyzing the outcomes of the decision to
check if the problem had been resolved.
CHAPTER 4: ORGANIZING
Background

Organizing is a function in which the synchronization and arrangement of human, financial and
physical resources take place. Organizing is one of the functions of management which follows after
planning. Even the best plans will fail without proper implementation. Today In any organization, there
is increasing emphasis on the actions of individuals and groups as they influence each other within an
organization. The importance is anchored with interpersonal relationships. The environment and the
people with whom an individual works or does not work and the constraints put upon him are
considered important criteria of organizing. In other words, organizing has tremendous effect upon
managerial action, decision and control.

Characteristics of Organizing

The following are the important characteristics of organization.

1. Orientation towards goals ‐ all business organization has its own purposes and objectives.
Organizing is arranging and structuring work to accomplish an organization’s goals. Organization
harmonizes the individual objectives of the employees with overall goals of the firm.
2. Composition of individuals and groups ‐ Individuals create a group and the groups form an
organization. Hence, organization is the combination of individual and groups. Individuals are
grouped into departments and their work is coordinated and directed towards organizational
goals.
3. Continuity ‐ An organization is a group of people with a definite connection in which they work
together to achieve the goals of the organization. This connection does not come to conclusion
after finishing each task. Organizing is a never ending process.
4. Division of work and specialization ‐ The complete thinking of organization is focused on the
concepts of work specialization and division of work/labor. The division of work is breakdown of
jobs into narrow and repetitive tasks handing over responsibility for each organizational
element to a specific individual or group thereof. It becomes work specialization when the job
for a specific task lies with a chosen expert in that field. The efforts of the people are
coordinated to allow the process at hand to work correctly. Certain individuals occupy positions
of management at various level in the process to make sure proper coordination. However,
when an employees carried too much specialization, they may feel bored, isolated and a
problems of stress, fatigue, including poor quality or work, absenteeism and employee turnover
will be increased. That is why many organizations enlarge jobs or rotate assigned tasks to
provide greater challenges and opportunities for growth.
Purpose of Organizing

It helps organization to attain its goal. Organization is working to achieve the business firm’s overall
objectives. Organization focuses awareness of individuals’ objectives towards overall objectives.

1. The use of maximum resources. To make best possible use of resources such as men, money,
machine, method and materials, it is essential to devise an organization correctly. Work should
be separated and putting the right people at the right jobs to minimize the consumption of
resources in an organization.
2. To execute management function. Planning, Organizing, Leading, Staffing and Controlling
cannot be done without appropriate organization.
3. Facilitates growth and diversification. A good organization structure is necessary for
intensifying business activity. Organization structure focuses the input resources needed for
development of a business activity similarly organization is important for product diversification
such as creating a latest product line.
4. Humane dealing of employees. Organization has to function for the good of employees and
should not persuade repetitiveness of work due to higher scale specialization of work. Now,
organization has adapted the present concept of systems approach based on human relations
and it rejects the traditional productivity and work specialization approach.

Applications

Organizing, in organization’s viewpoint, is the management task that usually follows after planning. And
it involves the assigning of tasks, the grouping of tasks into departments and the assigning of authority
and allocation of resources across the organization. Structure The formal arrangement of job within an
organization in which the organization is being defined how jobs are being separated, resources are
utilized, and departments are synchronized.

1. A set of official tasks assigned to individuals and departments.

2. Formal reporting relationships, decision responsibility, number of hierarchical levels and span of
management control, and including lines of authority
3. The design of systems to make sure effective management of employees across departments

Chain of command

The line of authority extending from upper organizational levels to the lowest levels, which clarifies who
reports to whom from whom an employees receive command. Chain of command is the vertical lines of
authority extending from upper organizational levels to the lowest levels. It is used for the purposes of
overall responsibility and accountability in the achieving of stated goals and objectives through the use
of orders one direction and reports of conformity in the other direction.
To understand the chain of command, you have to know three other concepts:

Authority - refers to the right inherent in a managerial position to tell people what to do and to expect
them to do it. Managers in the chain of command have authority to do their job of coordinating and
overseeing the work of others.
Responsibility - means an employee's obligation or expectation to perform any assigned duties or
activities.
Accountability - is the requirement to show performance results to a supervisor in the chain of
command.

Delegation

It is the process of distributing and entrusting work to other employees.

Steps in Delegation

 Assign responsibility ‐ explain task and expectations

 Grant authority - allow others to make decisions and act
 Create accountability - require others to report back on results
CHAPTER 5: STAFFING AND RECRUITING
The overall performance of an organization and the quality of the organization’s workforce is a result of
the quality of people it hires. No matter how good the management is, the performance of the firm
would still suffer if employees with inadequate skills and competencies would be hired.

Staffing is a managerial function which involves training after the individuals have been selected for
a specific job function, after which, requiring them of their responsibilities. Human resource policies and
practices involve an employee’s selection, training, and performance appraisal system. Staffing as the
decision and activities connected with providing staff for an organization is synonymous to employing
and appointing.

A staff may refer to the group of people who work in a particular organization. They are hired by
the company to work under supervision of a supervisor. A staff may also refer to the act of holding a
specific position in an organization.

The directions being pursued by organizations determine the nature of the job and the personnel
they hire. After the organization’s philosophy has been formulated and before the staffs and workers
are recruited, jobs in the organization have to be first organized, classified, and defined. The key
components of the function of recruiting personnel are the following: acquisition, allocation, and
adjustment.

It is in Job Analysis, that managers will know the exact methods to be used in motivating
employees. This analysis is the process of collecting information and details on a specific work, and the
duties and responsibilities of the specific work or position. Job description gives the “what” in a job
while job specification identifies who should qualify for the job

Job Description summarizes the duties and responsibilities, and the qualifications of the applicant
needed for a specific job. Once the job analysis was done, the gathered information will be the basis in
designing jobs.

Job specification plays an important tool in specifying the qualifications that an aspiring applicant
must have.

RECRUITMENT

Recruitment is the process of designating qualified applicants who apply for a position in a firm. It is
the process for searching potential applicants for the current and anticipated vacant positions in the
organization. Proper allocation involves placing the employees in the right departments and making sure
they are equipped with the right skills and experiences for the job.

Recruiting involves the process of finding suitable employee and hiring them to join a company or a
firm with various or specific job vacancies.
The following are the major steps in recruitment:

1. Planning and approval - Specific questions are needed to be answered in filling vacancies in the
organization. One is, “Should the existing vacancy needed to be filled?” because there are cases
when it is better to leave a vacant position unfilled.
2. Position announcement / Job posting - Choosing between an external and internal recruitment
is the next step once the vacancies were identified.
3. Recruitment and the strategies - Different techniques are used in recruiting applicants and
there are two sources of recruiting them: internal and external.

Internal Hiring usually involves promotion. Recruitment from within increases the general level of
morale of employees who feel that they would have avenues for promotion or transfer. Because morale
is heightened, their preparation for the events of promotion or transfer is encouraged.

Using internal source of hiring saves recruitment, screening, and selection expenses on the part of the
organization.

External Hiring on the other hand promotes hiring of employees from the outside source. This source is
used when the available positions whose job specifications cannot be met by existing personnel within
the organization.

When companies plan to expand and the existing personnel cannot be given overload without sacrificing
the quality of their work, new hires are needed.

External Sources of Recruiting Applicants

1. Newspaper Advertisement – used to be the most popular medium in recruiting applicants.

Companies usually prefer to advertise in broadsheets on Sunday issues because more people
read newspapers on that day. The downside of using newspapers for job posting is that it is
limited in terms of exposure because of the growing popularity of the internet as the medium
for job hunting.
2. Internet – company web pages and job websites are the most popular nowadays. Using the
internet for job posting gives maximum exposure for the applicants and the organization as well.
3. Manpower Agency – it is advantageous for a hiring organization to contact a manpower agency
since the human resource of the organization can leave all the responsibilities to the agency.
4. Walk‐Ins – applicants who are ‘walking-‐in’ are ready to be interviewed right away since they
are already at the company’s doorsteps. The downside is that the HR wastes time entertaining
many applicants who are not called for appointment and who do not know if the position they
are applying for is still vacant.
5. Referrals – there are applicants who are referred by people who knows employees in the
company that has vacancies. Some are referred by company employee themselves. f. Job Fairs –
there are companies which participate in job fairs to minimize costs. Through job fairs, they can
conduct preliminary interviews and there are many job applicants to choose from.
 6. Campus Recruitment – companies which participate in college fairs most of the time need fresh
graduates who are willing to be paid minimum wage as starting salaries. The HR department can
choose the schools where it can source out graduating students of particular course.
7. Project Basis – companies highly technical in nature like software and developer usually hire
project-‐based employees.

Comparisons of the Sources of Applicant

INTERNAL HIRING
(promotion inside the company)

ADVANTAGES

 Employees were motivated to work harder.

 Employees were already familiar with the company’s system and culture.
 Less costs in recruitment.

DISADVANTAGES

 No fresh ideas if there would be no new hires.

 Over familiarization with each other may lead to internal friction.
 Not promoted employees may feel demotivated.

EXTERNAL HIRING
ADVANTAGES

 New employees may bring new ideas.

 Company can choose the best candidates.
 Company can provide jobs to more people.

DISADVANTAGES

 More costs for the company especially in training new employees and facilitating
massive recruitment efforts.
 It will take time before the best candidate for the position is chosen.
 Employees take time in absorbing the culture of the organization. Anything that do not
agree with what they believe in might trigger friction.
SELECTION

After screening and sorting out the résumés of the applicants, selection process follows next.
Scheduling of psychological testing or preliminary interview is included in this phase. Those who will
qualify for the preliminary screening will be notified to fill out the application form of the company.

Steps in the Selection Process

Psychological Testing - There are companies that do preliminary screening by facilitating a psychological
test. Applicants who pass the test are qualified for the preliminary interview.

3 Types of Psychological Tests Administered to the Applicants

1. IQ (Intelligence Quotient) or the Mental Ability Test - is a test of general knowledge which
consists of general questions, abstract reasoning, and numerical abilities.
2. Aptitude Test - is the measuring of specific abilities and a test of the applicant’s partiality to
succeed in a particular field. It determines the specific abilities that are required in certain fields
of specialization like engineering, encoding, sales representation, among others.
3. Personality Test - is the measuring of patterns of behavior such as cooperation, initiative,
dependability, and sociability. Comparing to mental ability tests, this test is not time-‐pressured,
do not have the right or wrong answers, but can detect consistency of
4. Screen/Interview and Background Check There are companies that decide to conduct
preliminary interview of the applicants before administering the psychological test. In this stage,
applicants who fail to execute good impression do not undergo the psychological testing.

The Types of interview are the following:

1. Panel Job - is when the applicant faces several interviewers who take turns in asking questions.
This method allows the decision makers (interviewers) to gather the same information before
arriving to a decision to hire. However, the applicant may not answer the questions right,
considering the pressure of facing the members of the panel.
2. Behavioral or Experienced ‐Based Interview - is done to clarify incidents in the past of the
applicant, in his/her former job or life experiences relevant to the job being applied for. The
rationale behind is that, the interviewer is able to compare and assess the applicant based on
his/her past experiences. The answers through repetitive statements.
3. Structured Interview - is when the interviewer relies on pre‐ established set of questions and is
usually based on job description and specification.
4. Unstructured Interview - is the type wherein the interviewer prepares guide questions and
allows the applicant to answer spontaneously.
5. Job Offer This is the stage where the HR department offers the job to the most favoured
candidate. If the applicant accepts the offer, the new hire will be assigned the position title and
would be offered the starting pay.
TRAINING AND DEVELOPMENT

Applicants when hired, think of how they can grow in their jobs and the organization, consciously
and unconsciously. Employees can best be partners to any progressive enterprise if they are properly
developed and train to reach their maximum potential. Whatever knowledge and skills that the newly-‐
hired employees’ bring-‐in to their organization and fully utilizing them is not enough. With assistance
from the organization’s management, they will gain additional learning for more responsibilities in their
currently hold positions and future positions for promotion.

The development of human resource or what we call as the Human Resource Department is part of
the human resource management that deals with the development and training of employees. It
includes training the individual after the he or she is hired. It is done to provide the newly hired to learn
new skills, that would be beneficial to employee’s task. With the advancement in technology, total
quality management, and good governance, companies saw the need to train and develop employees to
keep them up-‐to-‐date of the new trends.

Training is defined as the process or method of providing programs that may modify, change,
increase, and improve and employee’s level of performance.

Development is a method that allows employees to grow by providing them opportunities to take on
bigger responsibilities in preparation for the future’s more challenging tasks. Training and Development
is a human resource management’s function that deals with concerned with organizational activity that
is intended for improving the job performance of all employees in a situation inside an organization.

1. Identifying Training Needs Buckley and Caple (1995) identified two ways of determining if there
is a training need.
2. Reactive (Present) Approach There are six stages to identify whether training is the best way to
overcome a current shortfall in employees’ performance

▪ Define the problem and focus on the past performance by studying quality standards, productivity
levels, customer complaints, and accident rates ▪ Identify who is responsible to solve the problem ▪
Define the method to be used in problem solving ▪ Analyze the problem ▪ Identify the possible solution
to the problem ▪ Prepare a report as a form of a feedback

1. Proactive (Future) Approach To determine if there is a link between the future performance
and the organization’s objectives, the focus should be placed on the following:

▪ Corporate Strategy. Training is an important aspect of the company’s long-‐term strategy.

▪ Manpower and Succession Planning. The implementation of training might affect the corporate
strategy.
▪ New Technology, Products, or Services. These can lead to the need for training and development.
▪ Ongoing Personnel Procedures. Surveys and reviews can create new training and development needs.
 2. Preparation Once the training needs were identified, the training delivery, schedule, materials,
manners of presentation, venue, budget, food, accommodations, and the means of informing
the potential audience should be prepared.
3. Training Delivery Venue, equipment to be used for the training presentation should be given
special attention. The training itself should be led by competent and experienced trainers and
facilitators.
4. Applying Learning The trainees should be encouraged to practice what they have learned to
appreciate the new insights they have gained from training.
5. Evaluation To measure the training success, proofs are evident in increased sales, increased
production volume, levels of satisfaction were achieved.

The planned activities that could be developed within the company or while the employee is at
work is called an In-‐House development approach, while Outside development approach is a
technique wherein the individual will be given the chance to get away from his work routine and focus
on what is to be learned and understood specifically.

In-‐House Development Approaches

1. Management Coaching. This is an approach where the immediate supervisor coaches the subordinate
employee in performing certain functions which are necessary for its advancement.
2. Assigning of Committees involves delegating of employees with potentials to important committees
which can help them understand the characters and attitudes, concerns and issues, and processes
governing the organization.
3.Job Rotation. This is the process of transferring employees from one job to another for the reason that
they should be familiarized with different types of people and different strategies and techniques in
each new unit.
4. Assistant-‐to-‐the Position. This is the assigning of an assistant to the position of working directly
under the manager.
5. Enlargement of Job. These are additional challenges or new responsibilities to the
employeescurrentjob.
6. Mentoring. More experienced organization members would be interacting with employees who can
develop skills and increase their knowledge about the company and its operation.

Outside Development Programs and Approaches

1. Formal Education. The company sends the employee to formal seminars, workshops, and other
training programs offered by training consultants and agencies.
2. Team Building. This is normally conducted about three to four days away from work.
3. Case Studies. This is a classroom type of training technique that provide a medium through the
application of management behavior concepts and analysis.
4. Role-‐Playing. A technique requiring trainees to assume a role in a given situation and act the
behavior that can be linked with it.
5. Simulation. These are simulated games developed by human resource experts that require thtrainees
to analyse a situation and decide from choosing the best course of action based on the given situation.