HUMAN RESOURCE MANAGEMENT
Preliminary Examinations
I - Introduction to Human Resource
Definition of HRM
According to Wendell L. French: “A
systematic planning, development, and
control of a network of interrelated
processes affecting and involving all
member of the organization.”
HRM is defined as the process of managing
human talent to achieve an organization’s
objective (Snell & Bohlander).
● Systematic - planning and
development
○ Control of network of an
interrelated process, affecting
and involving all members of
the organization
○ The fault of one tile will affect
the others
● Managing human talents to achieve
objectives
● A successful organization is
particularly adept at bringing
together different kinds of people
to achieve a common purpose
which is an organizational success.
HRM Functions & Roles
1. Talent Acquisition - Employment,
onboarding, workforce planning (not
just through accommodation but to
plan out their job and function).
2. Performance Management - ○ Systems
Ensuring the employees’
performance and managing
objectives, keeping track of their
progress
3. Employee Training and
Management Development - Train
building, leadership seminars
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4. Compensation Management -
Salaries and wages
5. Benefits Management - sick
leaves, health insurance, paid
leaves
6. Employee Management Relations
- managing behavior, eagerness to
do the job, and motivation
7. Labor-Management Relations -
Legalities and compliance with the
law
Scope of HRM
Based on theoretical work in the field of
organizational behavior, it is proposed that
HRM comprises of the following:
1. A set of policies or procedures
designed to maximize organizational
integration (creating & drafting)
2. Employee’s competency, people
engagement and commitment,
satisfaction, motivation, skills, and
talent management
3. Job design, manpower forecasting,
and performance appraisal (how you
delegate tasks fairly?)
4. Labor Laws
Strategic View of HRM
1. Inputs into the System
○ External Environment
○ Internal Environment
2. Transformation Process
○ Workforce
○ Jobs
○ Processes
6 New Roles of Effective HR Professionals
1. Credible Activist
2. Strategic Positioner
3. Capability Builder
4. Change Champion
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5. Human Resource Innovator and directly affect employees’ motivation
Integrator and ability to provide goods and
6. Technology Proponent services that customers value.
Companies that attempt to increase
Strategic HRM their investment in state-of-the-art
staffing, training, and compensation
Analysis and design of work
practices
HR Planning
Impact of HRM
Recruiting

Selection
Strategic
Training and Development
HRM
Performance Management

Compensation

Employee Relations

Company Performance

➔ Human Capital - an organization’s

employees described in terms of ● For an organization to succeed, it
their: needs employees with certain
◆ Training qualities, training, and experience.
◆ Experience ● Employees are not interchangeable,
◆ Judgment easily replaced by parts of a system,
◆ Intelligence but the source of the company’s
◆ Relationships success or failure.
◆ Insights ● By influencing who works for the
➔ The concept of HRM implies that organization and how these people
employees are resources of the work.
employer ● HRM, therefore, contributes to such
➔ Managers and economists basic measures of an organization’s
traditionally have seen HRM as a success as quality, profitability, and
necessary expense, rather than as a customer satisfaction
source of value to their ● For example, in chains that see
organizations. employees as more than just an
➔ However, research has expense, retailers outperform their
demonstrated that HRM practices competitors.
can be valuable. Decisions such as ● At Intel, the company’s focus is on
whom to hire, what to pay, what keeping employees loyal, trained,
training to offer, and how to and compensated. In turn, there is a
evaluate employee performance

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Preliminary Examinations
low turnover rate and a high degree
accessibility
of customer satisfaction. accommodations

Support for Human resource planning

Function Responsibilities Strategy and forecasting; talent
management; change
Analysis and Work analysis; job design;
management
design of work job descriptions

Recruitment Recruiting; job postings;

and selection interviewing; testing;
coordinating the use of
II - Workforce Planning and Recruitment
temporary labor

Training and Orientation; skills and Two Major HR activities in Talent Acquisition
development training; career
development programs
Performance Performance measures;
Management preparation and
administration of
performance appraisals;
discipline
Compensation Wage and salary
and Benefits administration; incentive
pay; insurance; vacation
leave administration,
retirement plans; profit
sharing; stock plans
Employee Attitude surveys; labor
Relations relations; employee
handbooks; company
publications; labor law
compliance; relocation Workplace Planning
and outplacement
services
1. Workforce Planning - refers to the
preparation offstage of recruitment.
a. This stage determines the
number of employees and
positions necessary for the
organization.
b. This also determines the
skills, abilities, competence,
and other job specifications
required for the positions
2. Recruitment - refers to the
organizational activities that
influence the number and types of
applicants who apply for a job and
whether the applicant will accept the
job that is being offered.

Personnel Policy creation; policy

Policies communication

Employee data Record keeping; HR

and information systems;
Information workforce analytics
systems

Compliance Policies to ensure lawful

with laws behavior; reporting;
posting information;
safety inspections;

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Workforce Planning
● Provides a roadmap to execute
almost all HR functions
● Movements that related to getting
people into, around in and/or out of
an organization
● Its objective is to define the right
profile of people an organization
requires to meet its short-term and
long term plans and goals
● Process of identifying and
addressing the staffing implications
of business strategies and plans
(Batchet, 2002) and the changes
happening within and outside the
organization
Internal changes in the organization may
lead to workforce planning. Examples:
a. Company expansion
b. Financial difficulties. Downsizing or
closure
c. Company relocation
d. Company Mergers
e. Introduction to new technologies,
systems, or streamlining
f. New products or services
g. Increase in targets for production,
sales, services, etc
Steps in Workforce Planning
1. Situational Analysis
2. Forecasting demand
3. Analysis of supply and demand of
human resource
4. Development of plans of actions
SWOT Analysis
Helpful Harmful
Internal Strengths Weakness
External Opportunities Threats
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Demand Forecasting
● This is the process that identifies the
number and kind of people that an
organization will need at some point
in the future (Lunderburg, 2012)
● Uses data to predict future
manpower needs
● The precision of the manpower
forecast is dependent on the
accuracy, completeness, and
relevance of the data used, the
method of forecasting employes,
and the ability of the forecast to take
into consideration as many factors
that can impact the actual manpower
levels
● Has two types;
1. Quantitative Forecasting -
use of statistical or
mathematical methods in
analyzing the data. Common
methods are Historical ratio
analysis, Trend Analysis, and
Statistical Analysis
2. Qualitative Forecasting -
using less statistical and rely
on expert’s assessment to
anticipate future staffing
needs
Analysis of the Supply of Human Resource
● This involves determining the
availability of manpower in the future
by looking at the INTERNAL and
EXTERNAL SOURCES: people
already employed by the firm and
those outside the organization
(Lundenburg, 2012)
1. Internal Recruitment
a. Succession Analysis -
making a detailed inventory
of how many employees are
currently in various job
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categories or have specific
skills within the organization.
Also making an analysis of
the expected movements
and changes in the inventory
as a result of retirement,
resignation, promotions,
transfers, or terminations
b. Markov Analysis - making
projections of movements of
employees over a period of
time which is based on the
historical average rate of
movement from one position
to another
2. External Recruitment - typically
involves a labor market analysis
such as employment trends, the
current strengths, and weaknesses
of the workforce, emerging
employment trends, college, and
university enrollment trends, and
economic opportunities that indicate
the availability of people outside the
organization (hiring and recruitment
events)
Development of Plans and Actions
● The final step in workforce planning
involves consolidating all the data
and inputs and determining the most
effective strategy to close the gap
and achieve the desired manpower
profile.
● To guide the HR practitioner in
sourcing candidates, a clear
recruitment objective has to be
established (Breaugh, 2009)
● Aided by inputs from the previous
steps of HR planning, establishing
the recruitment objectives means
identifying the following:
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○ Number of open positions
○ The date on which the
positions should be filled
○ Number of applications
○ Type of Applicants
○ Job performance goals for
new hires
○ Expected new hires retention
rate
Methods of Recruiment
1. Job Advertising
2. Internet Posting
3. Use of Social Media
4. Headhunting or Executive Search
5. Employee Referrals
6. Internal Recruitment
7. Rehiring former employees
8. Walk-Ins
9. College Recruitment
10. Internships
III - Selection
Selection Process
A systematic series of activities that are
done to assess the qualification and
competencies of applicants so that the
employer can determine whether or not they
can be hired for the vacancy.
Two Importance Characteristics in Selection
● Validity - instrument’s ability to
measure what is supposed to be
measured
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● Reliability - The ability of an ● Pre-Employment Medical or Heath
instrument to accurately, precisely, Records (to identify risk factors that
and consistently measure something may limit their ability to do the job)
● According to Elaine D. Pulakos,
“validity is the most important factor Making the Hiring Decisions
in considering whether or not to use ● Job Offer – is a formal expression of
an assessment method, because an the employer’s decision to hire a
assessment that does not accurately candidate. This includes the
identify who will perform effectively following:
on a job has no value to the ○ Position Title
organization.” ○ Salary
○ Benefits
Methods of Selection ○ Start Date
1. Paper Screening (Resumes, CVs, ○ Job Description
portfolios) ○ Location of work
2. Testing ○ Immediate Head
3. Job Knowledge Test ○ Department
4. Personality Test
5. Integrity Test
6. Situational Judgement Test
7. Work Sample test IV - Performance Management
8. Physical fitness and ability test
● Referred to as a performance
Interview review, performance evaluation,
1. Behavioral Interview (career) development discussion, or
2. Situational Interview employee appraisal is a method by
3. Stress Interview which the job performance of an
4. Structured Interview employee is documented and
evaluated.
Other Selection Methods ● Part of career development and
● Use of Assessment Centers (often to consist of regular reviews of
identify management potential and employee performance within
determine candidate's suitability for organizations.
higher functional positions, used by ● Often conducted by an immediate
managers as tools for the manager, such as line managers or
development process to evaluate front-line managers (Tyskbo, 2020).
candidates' personality traits and ● Annual performance reviews have
abilities). been criticized (Evans & Tourish,
○ Group Simulation Activities, 2017) as providing feedback too
Aptitude, or Psychometric infrequently to be useful, and argue
Exams performance reviews, in general, do
● Pre-Employment Background more harm than good.
Checks ● It is an element of the
● Criminal Records principal-agent framework, that

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describes the relationship of
information between the employer
and employee, and in this case, the
direct effect and response received
when a performance review is
conducted. Establishing Performance Criteria
● A systematic, general and periodic Three types of information which the
process that assesses an individual managers could use in establishing
employee's job performance and performance criteria:
productivity in relation to certain
pre-established criteria and 1. Trait-based - characteristics of the
organizational objectives. individual are believed to affect the
● Other aspects of individual way the employee performs his job.
employees are considered as well, 2. Behavior-based - includes specific
such as organizational citizenship observable and measurable
behavior, accomplishments, the behaviors which are necessary for
potential for future improvement, the effective performance of one’s
strengths and weaknesses, etc. job.
3. Results-based - pertains to the
Steps in Performance Management employee’s accomplishment of
1. Establish performance Criteria and observable and measurable
Standards. outcomes.
2. Clearly communicate the
performance criteria and standards Establishing Performance Standards
to the employee. Standards represent the expected levels of
3. Monitor the employee’s job performance for each of the criteria.
performance and provide ongoing
feedback. Examples of performance standards:
4. Document evaluation of employee’s O – Outstanding
performance. E – Exceeds Expectations
5. Conduct effective performance M – Meets Expectations
evaluation discussions with the I – Improvement Needed
employee and provide intervention NA – Not Applicable
as needed.
6. Redefine performance criteria and *some uses percentage, GvAs, or key
standards for the following achievements
performance cycle.
Communication of Performance Criteria and
➔ Organizations needed to have a Standards
system for managing employee ● It must be explained clearly and
performance in order to endure the ensure that it understood the
alignment of what they do with what importance of these criteria and
the organization needs to standards and accept them.
accomplish.

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Preliminary Examinations
behavioral, observable, and
Monitor Employee’s Performance and measurable terms or levels.
Provide Employee Feedback ● Management by Objective (MBO) -
● Ongoing monitoring and feedback to an employee’s performance is
employees help in developing the managed through a goal-oriented,
desired work habits and in avoiding participative, and systems approach.
surprises during the formal
performance evaluation session.
● When feedback is timely, there is a
greater chance for it to bring about a
change of behavior.
● Can be a direct, scheduled monthly
review, or through appraisals

Performance Evaluation Form

● Used to document the observation
and assessment of an employee’s
job performance.
● To CONDUCT PERFORMANCE
EVALUATION, two important
objectives of evaluating employee’s
performance must be present;
○ To ensure that pieces of
evidence of performance are ● 360 degrees Performance
properly documented. Evaluation - all feedbacks about the
○ To reward or give due employee’s performance come from
recognition to performing everyone around him including
employee or inadequacies himself (from top management to
are dealt with so that the fellow subordinates and customers)
employee’s future ● Balanced Scorecard - often defined
performance will improve as a strategic planning and
management system used to align
Performance Evaluation Tools business activities with the vision
● Checklist - contains a number of statement of the organization.
descriptive statements, employee
traits, and behaviors which the rater
uses in evaluating an employee’s
performance.
● Essay Format - rater usually is
required to explain in writing
observed employee behaviors.
● Behaviorally Anchored Rating
Scale (BARS) - the performance
factors here are well defined in

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● Performance Dashboard - a visual Benefits of Training

display of the important information 1. Training helps employees develop
needed to achieve one or more specific skills.
objectives, consolidated and 2. Training increases employees’ job
arranged in a single screen. satisfaction, motivation, and morale.
3. Training improves organizational
strategies, the current system, and
efficiencies in processes resulting in
V - Employee Training financial gain.
4. Training can be used to increase the
A planned effort of a company to contribute capacity to adopt new technologies
to learning or relearning new skills, and methods.
attitudes, and competencies specifically 5. Training can reduce employee
needed to achieve business objectives. turnover.
6. Training can enhance company
Typical Reasons for Employee Training image.
● When a performance appraisal 7. Training is used in Risk
indicated performance improvement Management (Policies on fair
is needed. employment, Security and Safety,
● To benchmark the status of etc.)
improvement so far in a performance
improvement effort. Typical Topics of Employee Training
● As a part of an overall professional 1. Communication
development program. 2. Computer Skills
● As part of succession planning to 3. Customer Service
help an employee be eligible for a 4. Diversity
planned change in role in the 5. Ethics
organization. 6. Human Relations
● To pilot or test the operation of a 7. Quality Initiatives
new performance management 8. Safety
system. 9. New Systems or Procedures
● To train about a specific topic
(usually to adapt into something). Some Problems Associated with Training
● Training requires resources
Training Framework (financial, sponsors, etc).
● A training program can be
time-consuming to implement.
● The impact of training is difficult to
link to the attainment of business
objectives.

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iii. Person Analysis -
Training Process identifies the
readiness of the
1 Training Needs Analysis
employee in the
2 Identification of Training Objectives training
2. Training Objectives (ASK) (ABCD)
3 Development of Training Program a. Identify the level of
4 Implementation of Training Program knowledge necessary to
achieve your goal. The
5 Evaluation of Training Program’s domains of learning can be
Effectiveness categorized as affective
(Attitude), psychomotor
(Skills), and cognitive
(Knowledge).
i. Attitude - changes
how the trainee
chooses to act
ii. Skills - focuses on
changing or
improving the task a
1. Training Needs Analysis trainee can perform
a. Needs Assessment - iii. Knowledge - focuses
determine whether training is on increasing what
necessary or the solution to the trainee knows
closing the performance
gaps in the organization. b. Select Action Verbs
Attitude Skills Knowledge
Involved analysis of the
needs of the three domains: Advocate, Compare, Actuate,
the organization, the task, accept, define, adjust,
and the person agree, allow describe, administer,
i. Organizational etc. designate, align, etc.
Analysis - examines etc.
the organization as a
whole (objectives, c. Check your objective by
resources, tools) including the four pieces:
ii. Task Analysis - i. Audience - know
studies the job in the your trainees.
organization to ii. Behavior - determine
identify the skills and the trainee’s different
behaviors needed to behavior after training
do the job iii. Condition - this
describes the

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situation of the
of the training to the
trainees. business?
iv. Degree of Mastery -
this identifies the level Impact Did the trainees
of knowledge applied display the learning
in the job. on the job?
3. Training Program Learning Did the trainees
a. Define your training – this learn the content?
includes the why, when,
where, who, what and how Satisfaction Did the trainees like
the training will be the program?
implemented.
b. Prepare your Training – this
includes materials and tools
needed in your training.
c. Practice your training –
rehearse how to present the
program.
d. Deliver your training –
always be prepared for
whatever concerns during
the training.
e. Confirm the training –
evaluation of the training is
critical to know its
effectiveness of the training.
f. Audit the trainee’s
performance – always make
a monitoring action after the
training
4. Implementation of the Training
Program (training methodologies)
a. Lecture
b. Outdoor training
c. Training Simulations
d. On the Job Training (OJT)
e. Online Training
5. Evaluation of the Training
Program

ROI Did the training

investment pay off?

Results What is the impact

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