Historical Development of Human Resource

Industrial Revolution - led to the emergence of large factories that led to the displacement of cottage-
based workers

Cottage-based workers - a small-scale, decentralized manufacturing business often operated out of a

home rather than a purpose-built facility.

 The first human resource department came in the early 20th century

Guilds - are associations of men belonging to the same trade formed for mutual aid, protection, and
benefits. (e.g. merchant guilds and craft guilds)

Frederick W. Taylor – Father of Scientific Management

 He called for mental revolution to fuse the interests of labor and management

Time and motion study - tasks must be systematically and meticulously analyzed and broken down into
smallest mechanical elements and then rearranged into their most efficient combinations.

Henry Fayol – established the Classic Organization Theory

Classic Organization Theory - the development of basic principles that could guide the design, creation,
and maintenance of large corporations.

Functions of Management

 Planning
 Organizing
 Commanding
 Coordinating
 Controlling

Chester Barnard – Human Relations Movement

Peter Drucker – Management by Objectives (MBO)

Douglas McGregor – Theory X & Theory Y

The Behavioral Science Movement- an outgrowth of the human relations studies in the fields of
industrial/organizational behavior and sociology with emphasis on dynamics of leadership, group
behavior, and motivation.

 Abraham Maslow’s Hierarchy of Needs

 Frederick Herzberg’s Two-Factor Theory (Motivation-Hygiene)
- Motivation- their existence yields feelings of satisfaction
- Hygiene- does not motivate and does not yield satisfaction but their absence or lack of
existence results in dissatisfaction

Chris Argyris – Humanistic/Democratic Assumptions

Rensis Likert – 4-System Management Theory

 Exploitative-Authoritative
 Benevolent-Authoritative
 Consultative
 Participative-Group (optimal approach to managing people)

Organization Development Movement - is a top management supported, long-range effort to improve

an organization’s problem-solving and renewal processes, through a more effective and collaborative
diagnosis and management of organization culture

Human Resource Planning

Planning - is the process of thinking regarding the activities required to achieve desired goals. It is a
fundamental property of intelligent behavior. It involves the use of logic and imagination to visualize not
only a desired end result but the steps necessary to achieve that result.

Foresight - the fundamental capacity for mental time travel.

Forecasting- aims to predict what the future will look like, while planning imagines what the future could
look like.

Sigmoid curve - is a cycle that all living organisms go through. This also applies to businesses. This is a
cycle of learning, growth, and decline. Without innovation, fresh ideas, and the ability to change, then
your business will go into a decline.

HR Planning (manpower planning) is a process of analyzing an organization’s human resource needs

under changing conditions and developing the activities necessary to satisfy these needs.

 It is a dynamic management process of ensuring that at all times, a company or its unit employ
the right number of people, with the right skills and assigned to the right jobs where they can
contribute most effectively to the productivity and profitability of the company.

Trends in HR Planning

 Systematic Forecasting of Manpower needs

 Performance Management (Performance Appraisal) - Analyzing, improving and monitoring
the performance of each employee and of the organization as a whole.
 Career Management - determining, planning and monitoring the career aspirations of each
individual in the organizations and developing them for improved productivity.
 Management Development - assessing and determining the developmental needs of managers
for future succession requirements
 Staffing

Staffing - the function of management, which is concerned with selecting, developing, maintaining and
utilizing the manpower such that the objectives of the organization are achieved economically and
effectively.

 a universal, continuous management function

Principles of Staffing

 Principle of Staffing Objective – its objective is to bring people with required skills into the
organization and develop them into valuable organizational resource.
 Principle of Staffing Responsibility - responsibility rests upon managers at all levels of
organization
 Principle of Human Resource Planning – ensures that the organization has adequate supplies of
managers
 Principle of Recruiting Personnel – both internal and external sources of recruitment should be
utilized
 Principle of Training Objectives – training needs should be stated for all levels of personnel
 Principle of Managerial Appraisal - managerial performance appraisal should be based on the
criteria of verifiable objectives

Process of Staffing

1) Manpower Planning – this is the human resource planning

 Analyze the job by preparing job description, job specification, and job analysis
 Estimate the manpower requirement
2) Actual Recruitment - assessing all the internal and external sources from where the required
personnel can be recruited
3) Employee Selection - the decisive step of the staffing process which involves differentiating
between applicants so as to identify and choose the candidate who best fulfills the qualifications
and requirements of the vacant position
4) Placement - the allocation of rank and responsibility to a selected candidate.
5) Orientation and Induction - to provide the new employee with the information they need for
functioning comfortably and efficiently. Induction is the process of introducing the new employee
to the job and the organization as well
6) Training and Development - the new employees undergo training to acquire specific skills.
Development implies learning opportunities designed by the organization - to further ensure the
growth of employees.
7) Performance Appraisal - rational assessment and evaluation of employee’s performance against
clear-cut benchmarks.
 8) Compensation - refers to the consideration which an individual gains, in return for his/her
contribution to the organization.
9) Career Management - is a process in which the individual understands, learns new skills and
interests for the betterment of the organization and self.
10) Promotion and Transfer

Performance Appraisal

Performance Appraisal – is a regular review of an employee's job performance and overall contribution
to a company.

 Also referred to as performance review, annual review, evaluation, or employee appraisal

 It evaluates an employee’s skills, achievements, and growth--or lack thereof. 
 It can be conducted at any given time but tend to be annual, semi-annual, or quarterly.

PA Tools and Techniques

 Ranking Method - this method requires the rater to rank subordinates on overall performance.
Under this method, the ranking of an employee in a work group is done against that of another
employee. The relative position of each employee is tested in terms of his numerical rank.
 Paired Comparison - it involves comparing each worker to every other employee and evaluating
performance in that context. At its core, it’s a ranking scheme that compares employees to each
other.
 Forced Distribution Method - a ranking technique where raters are required to allocate a certain
percentage of rates to certain categories (eg: superior, above average, average) or percentiles
(e.g.: top 10 percent, bottom 20 percent, etc.).
 Critical Incident Techniques - under this method, the manager prepares lists of statements of
very effective and ineffective behavior of an employee. These critical incidents or events
represent the outstanding or poor behavior of employees on the job. The manager maintains logs
of each employee, whereby s/he periodically records critical incidents of the workers’ behavior.
 Checklists and Weighted Checklists - in this system, a large number of statements that describe
a specific job are given. Each statement has a weight or scale value attached to it. While rating an
employee, the supervisor checks all those statements that most closely describe the behavior of
the individual under assessment. The rating sheet is then scored by averaging the weights of all
the statements checked by the rater.

Graphic Rating Scale - uses a chart or graph containing a list of traits to be considered in rating.  For
each trait, there are degrees, usually five, around a continuum in exhibiting this trait from “Excellent” or
“Exceeds expectations” through “Average” to “Unsatisfactory.”  

Behaviorally Anchored Rating Scale (BARS) - is an improvement over the usual rating scale.   The
important performance dimensions of a job are listed.  For each dimension, a series of progressive
behaviors or sample actions or critical incidents are created across the continuum to represent the
effective, average, and ineffective performance levels. 

Management by Objectives (MBO) – created by Peter Drucker. It is the process whereby the superior
and subordinates jointly identify their common goals, define each individual’s major area of
responsibility in terms of the results expected, and use these measures as guides for operating the unit
and  assessing the contribution of each of its members.

Bias – inaccurate or distortion of a measurement

PA Biases

1. First Impression – also called primacy effect

2. Halo Effect - The individual’s performance is completely appraised on the basis of a perceived
positive quality, feature or trait. In other words, this is the tendency to rate an employee
uniformly high or low in other traits if he is extra-ordinarily high or low in a particular trait. If a
worker has few absences, his supervisor might give him a high rating in all other areas of work.
3. Horn Effect - The individual’s performance is completely appraised on the basis of a negative
quality. This results in an overall lower rating than may be warranted.
4. Excessive Stiffness or Lenience - Depending upon the raters’ own standards, values, physical
and mental makeup at the time of appraisal, ratees may be rated very strictly or leniently.
5. Central Tendency - Appraisers rate all employees as average performers. That is, it is an attitude
to rate people as neither high nor low and follow the middle path.
6. Personal Biases - The way a supervisor feels about each of the individuals working under him -
whether he likes or dislikes them - has a tremendous effect on the performance ratings.
7. Spillover Effect - The present performance is evaluated much on the basis of past performance.
8. Recency Effect - Rating is influenced by the most recent behavior ignoring the commonly
demonstrated behaviors during the entire appraisal period.

Note: Trust is the Glue that Holds Organizations Together

Training Methods

Presentation Methods

1) Lecture - trainers communicate through spoken words what they want the trainees to learn. It is
primarily one-way, from the trainer to the audience.
2) Audiovisual Techniques - includes overhead, slides, and video. Video is a popular instructional
method and has been used for improving communication skills, interviewing skills, and
customer-service skills and for illustrating how procedures should be followed.
Hands-on Methods - are training methods that require the trainee to be actively involved in learning.
1) On-the-Job training - refers to new or inexperienced employees learning in the work setting
during work by observing peers or managers performing the job and trying to imitate their
behavior.
 2) Self-Directed Learning (SDL) - the employee takes responsibility for all aspects of learning –
including when it is conducted and who will be involved. Trainees master predetermined training
content at their own pace without an instructor. Trainers may serve as facilitators.
3) Simulations – a training method that represents a real-life situation, with trainees’ decisions
resulting in outcomes that mirror what would happen if they were on the job.
4) Case Studies – a description about how employees dealt with a difficult situation. Trainees are
required to analyze and critique the actions taken, indicating the appropriate actions and
suggesting what might have been done differently
5) Business Games - game stimulate learning because participants are actively involved and
because games mimic the competitive nature of business.
6) Role Plays - have trainees act out characters assigned to them. Info about the situation is
provided to the trainee.
7) Behavior Modeling - presents trainees with a model who demonstrates key behaviors to replicate
and provides trainees with the opportunity to practice the key behaviors
Group Building Methods
1) Adventure learning – focuses on the development of teamwork and leadership skills through
structured activities
2) Team Training – coordinates the performance of individuals who work together to achieve a
common goal
3) Action Learning – gives teams or work groups an actual problem, has them work on solving it
and committing to an action plan, and then holds them accountable.

Needs Assessment

Needs Assessment (NA) - refers to the process used to determine whether training is necessary. It
involves organizational analysis, person analysis, and task analysis.

Levels of Analysis:
 Organizational analysis - involves determining the appropriateness of training, its resources
available for training, and support by managers and peers for training activities.
 Person analysis - involves determining whether performance deficiencies result from lack of
knowledge, skill, or ability or from a motivational or work-design problem; identifying who
needs training; and determining employees’ readiness for training.
 Task analysis - identifies the important tasks and knowledge, skills, and behaviors that need to
be emphasized in training for employees to complete their tasks.

Methods used in NA:

 Observation
 Questionnaire
 Interviews
 Focus Groups
 Documentation (technical manuals/records)
 Online Technology (software)
Competency - refers to an area of personal capability that enables employees to successfully perform by
jobs
Competency Models - identifies the competencies necessary for each job as well as the knowledge,
skills, and behavior and personality characteristics underlying each competency.

Note: #1 Emerging Job – Machine Learning Engineer

1. Specialised Big Data Analysts - deal with large datasets will be required in the future, particularly in
the fields of machine learning, automation, cybersecurity, encryption and distributed cloud-based systems
across various industries.

2. Complex Decision Support Analysts - analyse and interpret information to identify options and
advise organisations on which ones to implement. Decision support analysts of the future will
increasingly be concerned with solving tactical and strategic choice problems.

3. Remote Controlled Vehicle Operators - Drones and unmanned vehicles are on the rise. Even
Amazon is looking to do drone deliveries. This opens up opportunities for specialists in controlling these
machines.

4. Customer Experience Experts - Online shopping has revolutionised the way we buy things. This has
been a blow to operators of physical stores and it is expected that this will give rise to customer
experience experts who will find novel ways to entice customers back to real bricks-and-mortars shops.

5. Personalised Preventative Health Helpers - This category covers people who have the ability to
understand and interpret health and wellbeing related information and apply them to clients in a holistic
way: They will help their clients avoid chronic and diet-related illness, improve cognitive function,
achieve improved mental health and achieve improved lifestyles overall. They will make use of
information technology and provide personalised support/guidance to a number of clients and maintain
close contact over time. The recent trends in personal fitness trainers provide some insight to how this
profession may expand, diversify and develop over the coming decades.

6. Online Chaperones - These folks will help individuals and small businesses with managing online
risks such as identify theft, reputational damage, social media bullying and harassment and internet fraud.
Considering millions of people and businesses fall victim to cybercrime every year, demand for online
chaperones is likely to increase.