Human Resource Management

By: MEDIAH PERLE F. LAYAOEN

Introduction and Overview of HRM

Human Resource Management

• A function performed in organizations that facilitates the most effective use of people
(employees) to achieve organizational and individual goals. (Gary Dessler, Human Resources
Management 8th ed.)
• The policies and practices one needs to carry out the “people” or human resources aspects of
a management job.
• Terms such as personnel, human resource management, industrial relations, manpower
management and employee development are used by different individuals to describe the unit,
department, or group concerned about people.
• A function of management which is concerned in promoting and enhancing the development of
work effectiveness and advancement of human resources in the organization. (Personnel
Management in the 1st Century by Perfecto S. Sison, 7th ed.)

Human Resource Management: A Science and an Art

• It is a science because it involves the systematic gathering of data derived from researches,
statistics, interviews and observations
• It is an art because it involves the making of sound decision.

The Objectives of Human Resource Management

• Effective utilization of manpower in the organization
• Interrelationships of all members in the organization
• Maximum development of all members
• To help the organization reach its goals
• To ensure effective utilization and maximum development of human resources
• To ensure reconciliation of individual goals with those of the organization
• To achieve and maintain high morale among employees.
• To provide the organization with well-trained and well-motivated employees
• To increase to the fullest, the employee’s job satisfaction and self-actualization
• To develop and maintain quality of work life
• To develop overall personality of each employee in its multidimensional aspect
• To enhance employee’s capabilities to perform the present job.

Scope of Human Resource Management

1. Personnel management. This is concerned with manpower planning, recruitment, selection,

placement, transfer, promotion, training and development, layoff and retrenchment,
remuneration, incentives, productivity, etc.
2. Employee welfare. It deals with working conditions and amenities such as canteen, housing,
transport, medical assistance, education, health and safety, recreation facilities etc.
 3. Industrial relations. This covers union-management relations, joint consultation, collective
bargaining, grievance and disciplinary procedures, settlement disputes etc.

Functions of HRM
1. Management Functions – the basic functions in general management of the enterprise which
are planning, organizing, directing, coordinating and controlling.
 Planning -- The formulation of personnel policies, programs, and activities directed to
achieve the goals of the enterprise. Planning involves the ability to analyze projected
programs and policies in the light of conditions related to objectives.
 Organizing -- Refers to the arrangement and relationships of jobs and positions, which are
necessary to carry out the personnel program as determined by top management. The
purpose of organizing is to ensure the smooth operation of the various activities required to
achieve the objectives.
 Directing -- Is concerned with the guidance of all efforts toward a stated objective. It
provides a means of putting plans into action through effective supervision, work rules, and
procedures.
 Coordinating -- It is a method of getting people in an organization to work together
harmoniously to achieve a common goal with minimum expenditure of effort and materials.
 Controlling -- The purpose is to ensure that the organization is accomplishing its objectives.
When the program is being implemented, changes and deviations may have to be made.
The control system will show whether or not the personnel program is being carried out
satisfactorily and as planned.
2. Operative functions –The operative functions of personnel management cover the details of
the responsibilities and tasks necessary to carry out policies and programs related to
personnel.
 Procurement/Acquisition Function
 HR Planning – The process of systematically reviewing human resources
requirements to ensure that the required number of employees, with the required skills
are available when needed.
 Recruitment is the process of attracting such individuals in sufficient numbers and
encouraging them to apply for jobs with the organization.
 Selection is the systematic process of selecting the most appropriate and suitable
person to a particular job.
 Human Resource Development. This aims to upgrade knowledge, skills and improve
attitudes of both managers and employees. Also include career planning, counseling for
individual development in light of the organization’s needs and values.
 Compensation Administration. -- The main objective is to develop and maintain good
salaries and wages system which is reasonable both internally and externally.
  Appraisal of employee performance. -- This is the regular systematic assessment of an
employee’s performance in order to review whether his or her performance matches the
expected performance levels. Performance evaluation is the analysis of an employee’s
recent success and failures, personal strengths and weaknesses and suitability for
promotion or further training.
 Health and safety administration. -- This is concerned with maintaining required and
reasonable levels of professional Health and Safety in the job and its environment.
 Employee and Labor Relations. -- This aims to foster relationship between labor force and
management.
 Discipline Administration. It is important to control the performance and behavior of
the employees according to the rules and regulations of the organization. For this
reason, it is important to develop, implement and maintain an appropriate disciplinary
system.
 Grievance handling. A grievance can be identified as a situation where the
employees is in mental distress or has attitude due to work related unreasonable or
unjust situation.
 Welfare Administration. This refers to all the facilities and comforts given to the
employee by the employer apart from wages, salaries and incentives.
Why the Need for Human Resource Management?

• Stiffer competition in business

• Rapid changes in technological, competitive and economic environments
• Explosion of technical and managerial knowledge
• Spiraling wage and benefits and costs
• Increasing complex government intervention in running thru laws and regulations
• Growing strength of labor unions
History of Human Resource Management
STAGES OF THE DEVELOPMENT OF HUMAN RESOURCES MANAGEMENT IN THE
PHILIPPINES
Pre-Spanish Occupation.
• No formal and permanent groups existed that would necessitate the organization of
management and labor groups.
• The “mayordomo” system of the foreign groups took on a master-servant relationship with no
written codes used as guidelines.
• Personnel management was not known and was unheard during such period. (the
relationship existed during this time is the barter system)
Spanish Occupation.
• The relationship that existed was regulated by the Civil code of Spain, known as the Civil Code
of 1889 and extended to the Philippines on December 7, 1889.
• The relationship between employers and workers was regulated in a very limited way by the
Code of Commerce which governed more the trade and commercial transactions in this
country.
• Still management-labor relations were unheard of.
American Occupation.
• No labor laws were passed against oppressed women and child labor conditions.
• The farmlands and industrial workers have oppressive working conditions and suffered from
lack of proper avenues for ventilating their grievances.
• Unionism was introduced due to increased trade and industry and became the feeble (weak)
yet growing anchor for protection of workers’ rights.
Japanese Occupation.
• World War II witnessed a suspension of the normal educational system.
• The anemic union movement and labor management or personnel management was
smothered (hold back) temporarily.
Post War.
 • The period after the war saw a change in favor of personnel management because of
increasing complexity of business operations, the number of government regulations and labor
laws promulgated in recent years, the growth of labor unions and the influx(entry) of new
concepts in management.
• The growth and development of personnel management is considered a post-war
phenomenon.
Martial Law Period.
• This period was characterized by relatively less proliferation(creation) of local unions, by the
federation of existing unions and by a government ban on strikes in vital industries as
mandated by presidential decrees.
• Both the management and the labor group were in doldrums(depression) with the labor group
feeling the greater financial pinch due to layoffs, retrenchment, freeze hiring and promotion
policies and close down of organizations.
From 1995 to Date.
• The reinstitution of democracy, the exercise of freedom, the mechanisms of wider consultation,
and the participative law making process through national legislation for management and
labor.

HRM Environment
The environment of an organization consists of the conditions, circumstances and
influences that affect the firm’s ability to achieve its objectives .
 An HRM function in a complex environment comprising several elements both inside and
outside the firm. In order to have an effective HR program, HR managers must give careful
attention to all aspects of the environment because changes occur in the society and the
environment within which the organization operates and these changes present challenges
that require early solutions.

The External Environment

• The environment that exists outside the firm, the external environment, has a significant impact
on HRM policies and practices.
• Many organizations engage in environmental scanning, which involves analyzing the
environment and changes occurring within it.
• The purpose is to determine the environment’s possible impact on organizational policies and
practices.
 Physical Element
 This includes the geography, climate and other physical characteristics of the
area in which the organization is located.
 Physical surroundings can help or hinder a firm’s ability to attract and retain
employees.
 Technological Element
 The introduction of advanced technology affects the number of employees as
well as the skills the employees need on the job. In particular, technological
advancements have tended to reduce the number of jobs that require little skill
and to increase the number of jobs that require considerable skills.
  From “touch labor” to “knowledge workers” - In general, this transformation is
referred to as a shift from “touch labor,” where employee responsibilities are
limited to only physical execution of work, to “knowledge workers,” where their
responsibilities expand to include a richer array of activities such as planning,
decision making, and problem solving.
 Social Element
 Employers are expected to demonstrate a greater sense of responsibility
toward employees and toward a society as a whole, employees are expecting
the same freedom, right, and benefits on the job that they enjoy as members of
society.
 Political Element
 Government have a significant impact on HRM.
 Each of the functions performed in the management of human resources – from
employee recruitment to termination – is in some way affected by laws and
regulations.
 Managers must follow all laws and government regulations relating to HRM
 Economic Element
 While economic recessions can force the curtailment of operations in the
private sector, they may have the opposite effect in the public sector.
 Unemployment generated by a recession usually necessitates the expansion of
agencies that provide welfare and other social services.

The Internal Environment

 The environment that exists within an organization is known as the internal environment, or
organizational climate. The elements affect and are affected by the policies, procedures and
employment conditions that managers oversee.
 Physical Element
 The physical element of the internal environment includes such factors as air
quality, temperature, noise, dust, radiation and other conditions affecting
employee health and safety.
 Technological Element
 It relates closely to the physical element.
 It consists of the layout of the workplace; the process by which the work is
performed; and the tools, equipment and machinery used to perform the work.
 “sociotechnical system” - Sociotechnical systems (STS) in organizational
development is an approach to complex organizational work design that
recognizes the interaction between people and technology in workplaces.
 Social Element
 It reflects the attitudes and behaviors of managers and employees, individually
and in groups.
 Because of their influential place in the organizational hierarchy, top managers
play an extremely important role in determining the quality of the social
element.
 Political Element
 Power is the capacity to influence the behavior of others. Power is an important
aid in HRM. It can provide a means of gaining the type of performance and
behavior desired of employees.
 The more power HR managers have in their organizations, the more successful
they will be in getting other managers to carry out their own HR responsibilities
and to comply with established policies and procedures.
 Economic Element
 It reflects the organization’s financial condition.
 The more favorable this condition, the more financial resources the
organization will have to support its human resources, including employee
compensation and benefits.
 Furthermore, when the financial health of a firm is strong, there is a tendency to
expand HRM activities such as training and development, employee assistance
programs, and recreational activities. Conversely, when financial resources are
low, an organization tends to reduce its HR budget and to cut back the HR
services it offers to its employees.

Top 10 HR Problems in The Philippines

• #10. Localization –
• HR has to contend with the cultural nuances that non-local employees face and help
them settle in so that they become productive members of the organization.
• “Employees who have deep understanding of cultural nuances in specific markets will
also be highly sought after, as businesses develop more localized go-to market
strategies for better relevance and audience engagement.” (MoneySmart’s Im )
• Transitions in Culture – Changes in organizations often involve transitions in the
prevailing organizational culture for better alignment with the intended changes.
Leaders must promote an organizational culture that would support and drive change.

#9. Inclusion
 Due to the diversity of the Philippine population and cultural differences between regions,
fostering an atmosphere of inclusivity can be a challenge.
 The goal is to set up programs that will help find the balance between diversity and inclusion
so that employees feel uniquely valued and free to contribute what they can. This will ensure
that employees–and the organization they work in–are set up for success.
#8. Going digital
 An organization will have to review its current business model and see how it can be migrated
into a digital framework. With the transformation brought about by the digital age, the HR
function has transformed together with the businesses themselves.
 Going digital was a boon for many industries and the business landscape in general, but a
number of businesses find it a challenge to migrate to a digital business mindset.
#7. Maintaining work-life balance
 Work-life balance has been a buzzword for some time now because it’s a concept that varies
depending on the individual and the organization he or she works with. Unfortunately, for HR
professionals, this buzzword has become a metric for workers for whether a company is worth
staying in or not. It’s not always easy to foster an environment that’s agreeable to everyone,
though. Empowering and trusting employees is key to employee retention and maintaining
harmony within the organization.
 Increasing employee expectations and demands – Given the increase in employment
opportunities, as well as evolving employee needs and wants, organizations are faced with the
challenge of keeping their employees satisfied to increase retention.
#6. Conflict resolution in the workplace
 When dealing with people coming from different backgrounds, it can be hard to find the middle
ground. Even if the circumstances are favorable, handling conflicts in the workplace is always
uncomfortable because people aren’t used to it. In these situations, it’s best to let the
concerned parties understand that it isn’t a “me or you” situation but a “we” situation.
 Diversity in the workplace helps in keeping perspectives fresh and targeting different market
segments, but it’s a challenge when it comes to conflict resolution.
 Human resources professionals are genuinely concerned on how they handle cases of labor
disputes. Resolving labor disputes usually take up lots of time. They complain that it needs
more time from them, because they are required to be personally engaged with the employees
concerned. HR professionals agree that this lost time should have been used for other efforts
and projects.
#5. Dealing with bad managers
 Having employees that don’t fit the culture or are underqualified for the position can be
frustrating, but nothing can beat a bad leader. Even if you hire the best workers, having
someone incompetent at the helm will overshadow the talent and hamper overall productivity.
It’s vital to find a leader that can motivate employees and help enhance productivity; someone
who knows how to deal with different people and tackle a problem through a variety of
approaches.
 Leadership – Particularly, the readiness of organization leaders to handle future roles during
succession planning was identified.
#4. Demotivation
 When employees don’t feel a sense of purpose, they start losing the drive to perform and
improve in the workplace. They also start to complain about the little things and begin to dislike
the work environment in general. Setting up programs and systems that will help provide a
sense of job satisfaction and fulfillment will go a long way in ensuring that employees remain
productive and happy.

#3. Low workplace productivity

 Low productivity doesn’t necessarily mean there’s a lack of talent in the workplace; often, it’s
just a matter of finding ways to optimize the workflow and maximizing the pool of available
talent.
 Productivity is vital to every business because, at the end of the day, their goal is to be
profitable. If productivity is low, it is the responsibility of HR to determine if the culprit is a lack
or misappropriation of resources or a flawed workflow. Communicating closely with team
managers is vital to see if any employees need mentoring or if there’s a need to change the
current workflow.
#2. Payroll issues
 Payroll issues are one of the few hitches that can negatively affect employee satisfaction. This
is why HR should be very careful when it comes to the payroll because employees expect
them to be proactive in ensuring that there are no issues when it comes to their salary and
other benefits. Doing your employees’ payroll in-house and in advance is one way you can
have more control and easily address payroll delays and disputes.
#1. Recruitment
 Not surprisingly, recruitment is the main problem of HR professionals in the Philippines. In
fact, 7 out of 10 HR professionals are willing to adopt digital solutions to help facilitate their
recruitment process.

What Might Trend in Philippine HR, in 2019

TELECOMMUTING
 In the local front, telecommuting and flexi time will take off. To the more traditionally managed
organization who are not open to telecommuting, their hands will be full doing the ground work
to comply with the new law once approved and IRR set. Telecommuting (also known as
working from home, or e-commuting) is a work arrangement in which the employee works
outside the office, often working from home or a location close to home (including coffee
shops, libraries, and various other venues).
 Rather than traveling to the office, the employee “travels” via telecommunication links, keeping
in touch with coworkers and employers via telephone and email.
 The worker may occasionally enter the office to attend meetings and touch base with the
employer. However, with many options for distance conferencing, there may be no need to
visit the office.
HR OPERATIONS
 Compliance to the general labor standards of startup to medium size companies may still
require more man hours from HR. Most Qs I received revolve around compliance
to regularization, due process, documentation and payroll.
HR for NON HR
 HR practitioners will have their hands freed if line managers are properly trained in
performing most of the routinely administrative HR work. 
AUTOMATION and ARTIFICIAL INTELLIGENCE
 Multinational companies, or companies servicing global enterprise will be the local
trendsetters. These include adaption of machine algorithms, chat bots and (maybe) robots
for some processes and jobs.
 More local companies may also adapt various software solutions to simplify HR work and
processes. Top of mind is cloud or app based training, timekeeping, benefits management.

TALENT ACQUISITION AND BLENDED LEARNING

 In the short term, companies may have to lower their qualifications (again) in certain position,
but provide intensive training to prepare the fresh graduates or the newly hired to the job.
 However, if I may refer to the Aspiring Minds study, 63% of qualified students belong to low
tier schools. This means recruiters need also to be unbiased to find qualified talents in the
market.
 In the long term, talent and organization developers will have to conceptualize programs that
will prepare present and future employees. These may require continuous representation to
the government, collaboration with the academe, professional and employer associations for
the required future skills.
EMPLOYEE ENGAGEMENT AND RETENTION
 While multinational companies, or companies servicing global enterprise are already
adapting to modern work, the rest of the HR community, in my opinion, should also
spearhead cultural change.
 I have an acquaintance who quits a high paying job from a global company, in exchange for
an average paying job for a start-up. She believed in the purpose of the company and
embraced it as her own.
 While economics play a factor in employee retention, office culture, relationships, career plan
and CSR also play a big part.
 I believe getting our hands full in this endeavor is far better than trying to douse fire from
situations that can lead us to arbitration or litigation.
  Both are costly and time consuming but the former is value adding.
 An “engaged employee” is one who is fully absorbed by and enthusiastic about their work
and so takes positive action to further the organization’s reputation and interests. (Wikipedia)
 Kevin Kruse from Forbes.com says the definition of employee engagement is;
 Employee engagement is the emotional commitment the employee has to the organization
and its goals. (Forbes.com)
 Employee engagement is actually the level of enthusiasm and dedication an employee feels
toward his or her job. To these engaged employees, it is far more than a pay cheque – it is
the eagerness towards their task that makes them passionate in their work, and this passion
is often reflected in their individual outcomes.

PEOPLE, ORGANIZATION AND CULTURE DEVELOPMENT 

 Technology will continue to advance– more mobile apps, faster and powerful processors, big
data and cloud, more intelligent bots and machines, etc.
 HR needs to give time to plan and implement programs to transition the existing policies and
procedures, org structures and culture, and employee learning to the demands and
requirements of work 4.0.
 Needless to say, HR should be the first to get acquainted, at the very least, to digitalization.
We can’t lead the organization to the transition if we ourselves are in the dark.