Introduction to Human

CHAPTER I
Introduction to Human Resource Management
Introduction
Human resource management is a long-established undertaking in
organization. This enable establishments to meet its obligations despite its ch
organizational environment. The economic uncertainty, rapidly ch
technologies, new modalities of employment are just some of the challenges
by every organization in today’s world, in which it has an impact on
nevertheless HRM should adapt and respond to these challenges in order to a
its goals and objectives.
Lesson 1: Challenges of Human Resource Management Today
Organizations today are confronted with so many challenges in o
survive and grow in today’s changing and competitive world. Changes seem
the only constant and managing human resources has increasingly become
important and difficult function. On top of these challenges is the current CO
pandemic that has brought a lot of changes in our lives and into the business
Some businesses permanently closed and some of the business do some
changes to survive in this trying times.
All of these changes pushed managers to improve efficiency in the pro
and service delivery processes by increasing their ability to use the best prac
human resource management in a more efficient and cost-effective manner.
The challenges that are occurring in today’s business world are the fo
(Source: Atlas Staffing, 2020):
 Compliance with Laws and Regulation
 Management Changes
 Leadership Development
 Workforce Training Development
 Adapting to Innovation
 Compensation
 Recruiting Talented Employees
 Retaining Talented Employees
 Workplace Diversity

Compliance with Laws and Regulations

Some organizations struggle to comply with laws and regulations.
ignore employment laws which leads to lawsuit, audits, and possible demise
businesses. Keeping up with changing employment laws is always a challe
every business entities. No matter how big or small a business is, one must
and observe existing laws in hiring, wage payments, health and safety, etc. t
labor conflicts or disputes in the future and maintain industrial peace.
Management Changes
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 Resource Management
Introduction
Human resource management is a long-established undertaking in every
organization. This enable establishments to meet its obligations despite its changing
organizational environment. The economic uncertainty, rapidly changing
technologies, new modalities of employment are just some of the challenges faced
by every organization in today’s world, in which it has an impact on HRM,
nevertheless HRM should adapt and respond to these challenges in order to achieve
its goals and objectives.
Lesson 1: Challenges of Human Resource Management Today
Organizations today are confronted with so many challenges in order to
survive and grow in today’s changing and competitive world. Changes seems to be
the only constant and managing human resources has increasingly become a more
important and difficult function. On top of these challenges is the current COVID 19
pandemic that has brought a lot of changes in our lives and into the business world.
Some businesses permanently closed and some of the business do some drastic
changes to survive in this trying times.
All of these changes pushed managers to improve efficiency in the production
and service delivery processes by increasing their ability to use the best practices in
human resource management in a more efficient and cost-effective manner.
The challenges that are occurring in today’s business world are the following
(Source: Atlas Staffing, 2020):
 Compliance with Laws and Regulation
 Management Changes
 Leadership Development
 Workforce Training Development
 Adapting to Innovation
 Compensation
 Recruiting Talented Employees
 Retaining Talented Employees
 Workplace Diversity

Compliance with Laws and Regulations

Some organizations struggle to comply with laws and regulations. Some
ignore employment laws which leads to lawsuit, audits, and possible demise of their
businesses. Keeping up with changing employment laws is always a challenge for
every business entities. No matter how big or small a business is, one must comply
and observe existing laws in hiring, wage payments, health and safety, etc. to avoid
labor conflicts or disputes in the future and maintain industrial peace.
Management Changes
To cope up with changes and to maintain its competitive advantage,
organizations are into a lot of management changes. Some businesses are into
restructuring, delayering, and enhancing their strategies and processes, changes that
affects every employees from top to bottom. These changes impacts human
resource management in many ways, it may decrease the employee’s productivity
and morale if these changes are not properly communicated.

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Leadership Development
According to recent study, the leadership development programs of some
companies are below average. This leadership development are not regularly
practiced by some companies, thus affects its human resources. If implemented it will
improve employee morale and motivation, and prepares them to take more
responsibilities in the future.
Workforce Training and Development
Another recurring HR problem is investing in the training and development of
its employees, specifically the low-level employees. Some companies does not have
means or finances in funding such trainings. All employees may it be a high-ranking
or a low-ranking employees needs training, investing in them results in having a loyal
and productive team.
Adapting to Innovation
In today’s world with the use of technology, automation, internet, artificial
intelligence and other innovations, all these has fundamentally changed every
business organizations and jobs. These changes has impacted business processes,
systems, and management. These has reduced huge number of jobs in
administration, finance, sales, marketing, manufacturing and human resource
management. With the internet of things it made customers knowledgeable and
demanding, which impacts businesses on how they will satisfy their needs and
wants.
Businesses must be quick to adapt with these changes, or risk being left
behind by their competitors. Organizations must embrace innovations and learn and
adapt new technologies and hire skilled personnel and redesign jobs, to be at an
advantage. Business organizations must invest in training and development to
update and enhance the skills of their employees to keep up with this changing
technology.
Compensation
One way of attracting talented workforce is through handsome compensation,
but many companies cannot provide this. Lots of companies are struggling with how
best to structure their employee remuneration. HR managers should recreate
compensation program if not create a system to reward employees for exemplary
performance to make up for a lower salary and offering incentive programs like profit
sharing or giving bonuses to its employees.
Recruiting Talented Employees
Acquiring talented employees is a huge investment of time and money. It is
not easy for business to find the right people for the business. Some companies
resort to outsourcing or use of a staffing company, which provide flexibility in the
acquisition of human resources. Outsourcing has changed the human resource
management, it allows businesses to try out new employees with little or no risk or
avoid extra cost on benefits and ease in terminating their services.
Retaining Talented Employees
Retaining talented employees is a hard task in managing human resources.
Brilliant employees are pirated by competitors, luring them with a much higher salary
and benefits. Some companies don’t have an attractive compensation program and
benefits that will make their employees stay with the company. Business
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organizations must think of ways, strategies, methods or plans in retaining and
maintaining their employees.
Workforce Diversity
Today’s workforce comprise of multiple generations with ethnic and cultural
differences. Each with a different set of values, work ethics, and aspirations that
makes it a continual challenge for business organizations. HR managers must know
and understand how each generations behave in the workplace, to be able to
manage them effectively. HR policies and programs must address or cater
employees coming from different generations with differing needs, to avoid disputes
and maintain harmonious working relationship or industrial peace.
Lesson 2: Concept of Human Resource Management
Human resources management has been and is always a growing concern in
today’s highly competitive world of business. Without its people, it is impossible for
organizations to achieve its goals. People are now viewed as a resource- a very
valuable resource, the power of the organization depends on its people who do the
actual work in the organization –its human resources.
Human Resource Management Defined
Human Resource Management is the effective and efficient use of its human
resources to achieve its organizational goals and objectives. It is also defined as:
“The process of analysing and managing an organization’s human
resource needs to ensure satisfaction of its strategic objectives.” (Hellriegel,
Jackson, Slocum and Staude, 2009).
“The policies and practices involved in carrying out the “people” or human
resources aspects of a management position, including recruitment,
screening, training and appraising.” (Dessler, 2007).
Basic Principles of HRM
 Organizations should be a good employer.
 Its people are the most valuable asset/resource.
 Employees are recruited and their careers are managed on the basis of merit.
 Employees should take their responsibility for developing their potential.
 Human resource management is the responsibility of all managers.

Objectives of HRM
 To help the organization reach its goals and objectives
 To employ the skills and abilities of the work force efficiently.
 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 communicate the HR policies to all employees
 To be ethically and social responsible to the needs of the society.

Importance of Human Resource Management

 At the enterprise level:
 Good HR practices help in attracting and retaining the best people in the
organization.
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  It helps in training people for challenging roles, developing right attitude
towards the job and the company, promoting team spirit, commitment, etc.
 At the individual level:
 It promotes team work and team spirit among employees
 It offers excellent growth opportunities to people who have potential to
rise
 It allows people to work with diligence and commitment
 At the society level:
 Employment opportunities multiply
 Scarce talents are put to best use.

The important thing for each organization is to develop its own values in a
way that best supports its particular mission, goals and objectives and desired culture
and motivates staff to give their best.
Lesson 3: Origin and Evolution of Human Resource Management
Let’s take a look on how HRM evolved overtime, let us read excerpts for Prof.
Josephat Itika of Mzumbe University:
“Managing people in an organizational setting is well
documented throughout the history of mankind (Munsterberg 1913;
Taylor 1960; Cuming 1985). Organizational structures evolved,
leadership emerged or was formed, roles and responsibilities were
assigned to people, accountability systems were laid down, and
rewards and punishments were also provided. In this regard, division of
labour, specialization and accountability were systematically organized
to achieve a specific purpose. However, the documentation of the
evolution and development of human resource management practices
can be traced back to the booming European economy of the 1900s
(Roethlisberg 1939). This economy created the necessary environment
for more serious thought on the role of effective people management in
the emerging labour market of the time. The economies were preparing
for the First World War and its aftermath where industrial production
required a mass of skilled, well organized and disciplined labour force.
The challenges revolved around mobilization of resources including
people, which led to the evolution and development of four stages in
managing labour. The stages were mainly identified by looking at the
changing titles of officers responsible for managing the workforce and
different roles that were emerging over time. Therefore, although
personnel management literature often states particular dates or
decades of transformation from one phase to another (Chruden &
Sherman 1984; Cuming 1985), as a matter of principle, such dates or
decades are more for convenience and reference purposes than being
actual historical events. The same recognition is used to provide a
picture of the chronology of the evolution and development of human
resource management as we see it today.”

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 (Figure 1.1 displays the stages in the evolution of human resource management, Source: J. Itika, 2011).

Welfare Stage in Industrial Age

It was in 1900s when the economic and technological breakthrough arise
because of continued advancement in general and scientific knowledge.
Below were the events that transpired during the Welfare Stage:
 More goods and services were demanded in Europe and Germany, in
preparation for the Word War I.
 Massive production of goods was done more efficiently under one industrial
roof. This was a common phenomenon across Western Europe particularly
in Britain, France, Spain and Italy.
 For the Germans who were secretly preparing for war, the production of war
materials created a chain of industrial networks with forward and backward
linkages.
 Managing the increasing workforce in the emerging complex industrial
production systems was an ever-more difficult challenge. The search for
solutions, which included how to organize employees and ensure that their
welfare was provided for, led to the need for better people management
techniques.
 Welfare services such as a canteen and other needs required some kind of
officer whose sole purpose was to take care of workers. This is the beginning
of employees’ welfare services in organizations and the famous title of
welfare officers we have in some organizations even today.

From Welfare Stage to Personnel Administration

The 1920s and mid 30s are generally regarded as decades of personnel
administration. The growing size of organizations and pressure to improve
productivity called for the need to recruit, select, train, keep records, appraise,
motivate, control, and improve production of job entry level of employees and those
in the job as part of job orientation. These administrative tasks were best handled by
welfare officers because of their experiences in welfare matters. However, since the
roles of welfare officers changed in nature and scope and became more demanding
in terms of knowledge, skills and behavioural attributes, the whole situation
suggested that the title of welfare officer was not good enough to describe what was

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actually happening. To address these new dimensions of a welfare job, the title had
to change from welfare officer to personnel administrator (Cuming 1985).
Evolution and Development of Personnel Management
This covers the period during and after World War II. In the 1940s and 50s,
there was an ever growing role for personnel administration to cope with the rising
challenges and demands of the job which included craft, supervisory training and
labour disputes that were threatening employees and organizational efficiency.
Below were the significant events that took place during this stage:

 Development of human relations’ school which was pioneered by Elton Mayo

and Kurt Lewin, who emphasized on improving the work environment and
work groups as a strategy to improve productivity (Rush 1959; Robbins
1990; Torrington et al. 2005).
 Treating employees as human beings rather than working tools was a new
doctrine.
 This period marked a shift of emphasis from managing an individual
employee to managing groups/teams in the organization (Davis 1980).
 Other contributions were from the work of Abraham Maslow on the human
hierarchy of needs and the power of employee’s motivation on productivity
(Maslow 1970).
 Chris Argyris and Frederick Herzberg wrote about the concept of employee’s
satisfaction and the significant impact this concept has had on the
organizational practices in improving the quality of work in organizations
(Deci & Ryan 1985).
 The organization development school driven by Bennis & Schein provided
equally useful inputs to personnel practices particularly in areas of effective
communication and the need to reduce conflict in the work place (Davis
1980; Walton & McKerzie 1991).
 Other areas covered in the functions of personnel management, particularly
in the 1960s, were organizational development, management development,
systematic training and manpower planning.
 Better processes and techniques of employee selection, training, wages and
salary administration and performance appraisal were introduced.
 Industrial relations in which personnel managers became experts in labor law
and represented their organizations in industrial relations disputes (Chruden
& Sherman 1984).

Change to Human Resource Management

Below are the challenges that had an enormous impacts on people
management in organizations:
• Shift in global macro policy framework
The late 1970s and early 80s was an era of neo liberalism in which market
forces were a driver of institutional frameworks of nation states and organizations.
This was a period when we witnessed strong arguments against direct state
involvement in the economy. It is not clear what was the ‘chicken’ or ‘egg’ between
politicians and academics or who these people, often referred to as ‘experts’ of the
World Bank and the International Monetary Fund are, and what their role in the
architecture and birth of neo liberalism and marginalization of the role of government
in economic development is. However, whatever the case may be, both politicians
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and consultants were important in the doctrine of neo liberalism. One of the foremost
advocates of neo liberalism was the former conservative British Prime Minister
Margaret Thatcher and her counterpart conservative president of the United States
of America Ronald Reagan whose philosophies were known by their names, that is,
Thatcherism and Reaganism respectively. They brutally blamed earlier liberal
governments for causing the economic crisis of the 70s through excessive
government control of economies and overprotection of employees. The
privatization of state owned organizations, relaxation of legislation in favour of the
private sector and the urge for profit maximization became the new agenda and both
the desired and required framework for managing organizations and the workforce.
Therefore, costs consciousness and the pressure to justify the role of employees in
developing and sustaining organizations in the market became a challenge. Failure
to respond to these challenges through proper personnel management strategies
was seen as a slippery slope towards the collapse of companies that had long
historical roots of successful business.
• Business competition
The 1980s and early 90s witnessed an uncertain, chaotic and often turbulent
business environment. Increased competition from Japan, and other international
companies with cheaper but high quality goods was a challenge to American and
European organizations. In reaction to the new competition and as a strategy for
coping with the crisis, a substantial number of organizations experienced takeovers,
mergers, and business closures. These were also accompanied by heavy losses of
work, working on part time, the need for individuals to become multi skilled, and the
contracting out of some work. Partly as a way of addressing these challenges the
role of the personnel specialist had to change from reactive to proactive and from
routine to strategic approach to the management of personnel functions so as to be
able to match the unpredictable environment.
• Change in customer needs and expectations
A change in customer taste, fashion and quality of goods to reflect their
purchase price put more pressure on the organizations to get the best out of their
production systems, processes, and employees. This could only be achieved by
getting the best people from the labour market, develop, reward, and ensure that
they are committed to high quality service to the organization. In order to achieve
these objectives, an enabling environment for employee creativity and innovation
became a necessity. This new demand had an impact on recruitment and selection
criteria, staff development and reward systems as well as the roles of personnel
specialist’s vis-à-vis line managers in personnel management functions. The role of
personnel had to change from that of a doer of personnel functions to that of partner
in providing support services to other departments to perform personnel functions.
• Technological change
Competition was also intensified by the organizations that could adopt and
adapt flexible specialization technologies to meet customer needs and expectations.
The implications were that organizations had fewer, but better trained people,
flexible to cope with rapid technological changes. Continuous learning and
adaptation based on teams became a natural area of focus on people management.
Information technology destroyed knowledge monopoly. The power of knowledge
became how best to use it, rather than who owns it.
• Change of philosophy of employee relations

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 The power of employees was through legislated trade unions where
thousands of employees under the industrial production system held power.
Therefore, the power of individual employees in the employment relationship was
vested in a collective solidarity. Mass redundancies, less protective role of the state
as well as the declining role of trade unions made life more individualistic than
collective. The change of employee relations from collectivism to individualism was
an automatic consequence of the above changes. Employment relations became
more based on arrangements and agreements between the employee and employer
as opposed to the use of trade unions and labour legislation.
• Developments in the academia
Building on the knowledge accumulated in previous decades and research
that was being conducted particularly in the 1980s and early 1990s, it appeared that
organizational strategy, and strategic approach to managing employees was the
best option for responding to challenges facing organizations (Hendry 1995). The
Human Resource Management School, advanced by academics from America and
Europe, which spearheaded the concept of ‘strategic approach’ to managing people,
became the center of debates and development of human resource management as
a philosophy distinct from personnel management. The Excellence School
propounded by Peters & Waterman and their followers on the role of strong
organizational cultures and commitment to excellence also has had a remarkable
influence on the development of human resource management (Storey 1989). Some
areas of corporate management including the size, structure, strategy, culture,
product, and organizational life cycle were now included in human resource
management (Schuler 2000). The major issue was how personnel management
functions could make an impact on the functional level, as part of supporting other
departments, as well as being part of business strategy. Personnel managers had to
become partners in the business. As part of improving employees’ utilization, a more
rigorous method of assessing the performance of employees in relation to rewards
was also developed. The introduction of performance management systems and
reward systems based on performance was an indication of changes in personnel
management practices. Within these changes, personnel management was
redefined and the concept of ‘human resource ‘vis-à-vis ‘personnel’ was adopted,
although the debate concerning the differences continues (Storey 1989). However,
as may appear in the literature, the difference between ‘human resource’ and
‘personnel’ may be clear or unclear (Armstrong 1995). This difference depends on
the taste, or on the taste and fashion rather than on what managers do, this is
notwithstanding the fact that most academics and managers in organizations use
the term human resource management as opposed to personnel management when
referring to people management even without making conscious effort to distinguish
between the two.
Lesson 4: Personnel Management (PM) VS Human Resource Management
(HRM)
Personnel management has metamorphosed to human resource
management, but some people do not know the difference between the two. It was
in the 1980’s that the concept of Human Resource Management began to pervade
through larger companies. Some critics say that it was simply a change of name, but
actually the same. However, as new models and theories came to be adopted, it
was clear that there was difference between the HRM and PM. Figure 2 shows the
difference between Human Resource and Personnel Management.

Lesson 5: Functions of Human Resource Management

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 Human resource management is concerned with managing people, it see its
people as a resource, an asset rather than as a factor of production. It involves a
system or a process to be followed in every business in recruitment, selecting,
hiring, and in training and development of the human resources. The attainment of
the company’s goals and objectives greatly depends on how people are recruited,
developed and utilized by the management
The main functions of human resource management are classified into two
categories:
1. Managerial functions

2. Operative functions
Managerial Functions
The following are the managerial functions of human resource management:
 Planning – pertains to the steps taken in determining in advance the no. of
personnel and what type or personnel required, programmes, rules and
policies, etc.
 Organization –organizing the structure of relationship among jobs,
personnel and physical factors in such a way it can have maximum
contribution towards organizational objectives. The HR manager performs
preparation of task force, allocation of work, integration of the efforts of the
task force, and coordinates work of individual with that of the department.
 Directing – It is concerned with initiation of organized action and stimulating
the employees to work. The HR manager directs the activities of the
employees to get its function performed properly. He guides and motivates
the employees to follow the path laid down in advance.

Operative Functions
The following are the operative functions of HRM:
 Procurement of Personnel – it is concerned with recruiting and selecting
the right number and kind of people to accomplish organizational goals and
objectives. It deals specifically in determining the manpower requirements,
their recruitment, selection, placement, orientation, etc.
 Development of Personnel – it is concerned with enhancement and
development of skills and competencies of the employees through various
trainings and development, necessary for a proper job performance.
 Compensation – refers to the determination of adequate and equitable
remuneration of personnel for their contributions to the organization’s
objectives.
 Maintaining Good Industrial Relations- one of the functions of HRM is to
promote and maintain industrial peace. The HR manager must create
harmonious relations between management and labor/employees to do away
with labor conflicts. Labor conflicts or industrial unrest may hamper the
operation of the business.
 Record keeping – HR managers collects and keep information concerning
the data of its employees. This information are used in making decisions
such as promotions or demotions.
 Personnel Planning and Evaluation – under this HR manager evaluates
the performance of the employees, evaluates policies and practices of the
company, as well as do personnel audit, and performance appraisal.
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Figure 2. The delineation between Human Resource Management and Personnel Management
(Source: Storey, 1995)

Lesson 6: Skills for Effective Human Resource Management

Based on studies conducted and observations of successful HR
practitioners, the following are the skills and attributes that are credited for their
success (Payos, 2011):
1. Human relations of interpersonal skills
2. Multitasking
3. Organization
4. Ability for Dual Focus
5. Trust and Confidence
6. Dedication to Continuous Improvement
7. Negotiating and problem-solving skills
8. Team-oriented
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 9. Honesty and Integrity

Human Relation or Interpersonal Skills

The HR profession deals with people with different personalities or individual
differences, no HR managers can succeed if he is poor in interpersonal skills. The
job deals a lot with people almost on a daily basis, attending to their needs, dealing
with their day to day problems, coaching and consulting employees, managing his
subordinates and his boss, etc. An HR manager must definitely possess
interpersonal or human relations skills to be successful in his field.
Multitasking
HR managers should do the art of multitasking to be able to handle pressing
demands and needs of his clients (e.g. boss, subordinates, employees, etc.) all at
once. From negotiating labour conflicts to receiving calls from top managements,
dealing with a boss who needs an immediate meeting, a document that needs to be
signed, a memorandum or report that needs to be submitted on time, etc., those
tasks might happen all at once, and the HR manager should be able to do all these
tasks.
Organization
HR manager functions well in an orderly and well-organized working
environment. One cannot function well in a room of disarrayed files and chaotic work
settings. HR personnel should maintain its orderliness and organization of things
and its management system in order to provide services in an efficient and effective
manner.
Ability for Dual Focus
This pertains to the ability of the HR manager to focus both on management
and employees. HR manager should not solely focus on satisfying the needs and
aspirations of the employees, but should also consider management needs. HR
manager should enforce the policies, rules and regulations of the organization
objectively when dealing with people. He should do away with biases or subjectivity,
in decision making, and seek what is beneficial to both parties (labour and
management) if possible.
Trust and Confidence
The HR manager have diverse roles, from being a consultant to an advisor
or coach, or a confidant of the employees. He is also a custodian of all personnel
records which hold a lot of employees’ secret information. The HR manager knows
the secrets and confidential information of both the company and its employees,
divulging all these data will result to loss of trust and confidence from the employees
and the management. The HR manager should therefore earn their trust and
confidence to avoid conflicts and maintain a smooth and harmonious relationship
from both parties.
Dedication to Continuous Improvement
Every company wanted to have a competitive advantage over its
competitors, thus the management and HR managers always think of strategies and
techniques that will make them achieve their goals. HR managers focuses on
continuous improvement and innovation for the betterment of the organization. He

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should also have the capacity to evaluate his own actions and be sensitive on his
own deficiencies and make corrective measures. He should be the change agent,
and must “walk the talk”, he should apply what he preach. HR managers should
always look for a better, if possible the best way of doing things.

Negotiating and Problem-Solving

In every organization, conflict is inevitable. Organizations are composed of
people with different personalities, work ethics, values and preferences, it is possible
that conflict will arise somewhere. Mostly conflict arises between employees and
management, or between a manager and his subordinates, or conflicts between
employees because of different reasons. It can be a conflict over implementation of
changes, or policies, or it can be a conflict over promotions, salary, etc. Over these
conflicts, HR manager should pose as mediator or negotiator between two
conflicting parties. The HR manager should look at the problem, and should find a
“win-win” and practical solution of the problem at hand. He should look into the
welfare of the employees and also the company, the solution of the problem should
be both beneficial to both parties, the employees and to the management.
Team-oriented
In today’s business world, mostly everything is done through teams. Teams
can accomplish so much more than that of a single individual. Therefore, every
manager should understand how team works. HR manager must be sociable and
sensitive to the needs, values, and feelings of its employees and know how they
behave when they are in groups or teams.
Honesty and Integrity
HR manager should be the role model of good moral and ethical behaviour.
He should be a paragon of integrity and honesty. Every employees, not just HR
managers, should possess these qualities for them to earn trust and confidence
from other people, particularly from their superiors. The HR manager should serve
as the keeper of the moral image of the company, he should serve as the
conscience of the company and call the attention of those employees who did wrong
against the company’s rules and policies, or those who have indecent, illegal
practices or activities. He should be the guardian of morals and ethics of the
company.
Lesson 7: The Constitutional and Legal Framework of HRM
HR managers and the management, of every organization should know the
legal aspects of managing human resources. It is important for every managers to
have a basic knowledge of relevant provisions of the Constitutions and labour and
social legislations to avoid possible litigations in mishandling its human resources. It
is better to be educated in labour laws than to suffer or lose a legal suit in the future.
It is the responsibility of the HR manager and the management to become educated
in labour laws, should a violation occur, ignorance of the law excuses no one. The
erring company and its management will still be held liable.
The Constitutional and its provisions protecting labour are derived from the
Police Power of the state- the right of the state to regulate labour relations for the
general welfare and to maintain industrial peace. It is also based on social justice- to
ensure protection of the weaker social partner- labour (employees).
The Constitutional Basis (Source: Payos, R. 2011)
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 The Constitution and its statutory provisions laid the basis for protecting the
rights and welfare of employees. In the Declaration of Principles and State Policies
the Constitution provides:
“The State affirms labour as a primary socio-economic force. It
shall protect the right of workers and promote their welfare (Article II,
Section 18).
Along this line, the Constitution protects the right of employees to form
unions, association or societies for purposes not contrary to law.
Also, pursuant to this Declaration of Principles, Article XIII, Section 3 expands
its labour policy by providing that:
 The State shall afford full protection to labor, local and overseas, organized
and unorganized, and promote full employment and equality of employment
opportunities for all.
 It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiation, and peaceful concerted activities, including the
right to strike in accordance with law. They shall be entitled to security of
tenure, human conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting their rights and
benefits as may provided by law.
 The State shall promote the principle of shared responsibility between
workers and employers and the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce their mutual compliance
therewith to foster industrial peace.
 The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production and
the right of enterprises to reasonable returns of investments, and to
expansion and growth.

Labor Code
The Labor Code of the Philippines was enacted during Martial Law by Virtue
of Presidential Decree 442. Since then, it has undergone several amendments.
Labor Code serves as the omnibus enabling decree that gives flesh and meaning to
the Labor Policy pronounced in the Philippine Constitution.
Below are the salient provisions of the Labor Code and some important laws
amending the Labor Code and special laws that HR Managers and the management
should be aware of
Summary of the Salient Points of the Labor Code (Payos, R. 2011)
 Primacy of free collective bargaining and negotiations.
 Free trade unionism for promotion of social justice.
 Free and voluntary organization of strong and united labor movement.
 Adequate machinery for expeditious settlement of disputes.
 Worker’s participation in decision and policy-making processes affecting their
rights, duties and welfare.
 Dynamic and just industrial peace
 Encourage free trade unionism and free collective bargaining.
 Right to engage in concerted activities including the right to strike.
 Security of tenure – cannot be terminated except for just or authorized
causes.

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  All doubts in implementation and interpretation of the Labor Coe provisions
including the implementing rules shall be resolved in favor of labor.

Labor Relations
Labor relations refers to the aspect or quality that holds together the social
partners, labor and capital in the attainment of their mutual goal – just and equitable
pay and treatment and fair return of investments.
Labor relations refer to the relationship between employers and its
employees in industry, and the political decisions and laws that affect it. This
definition implies that labor relations between employers and employees are
somehow influenced by a third party which is the State that makes political decisions
and provide laws affecting such relationship.
In this labor-management relationship, it is inevitable that conflict arises, and
these conflicts arises from or a contribution of any of the following causes:
1. Manner by which hierarchical demands are made and executed – It is
one of the main functions of managers to get things done through its people.
To get things done, the manager will give instructions or directions to its
employees. Sometimes the manner of giving these orders could lead to
conflicts, especially so if these orders are done in a highhanded manner
which could lead to misunderstanding and ill-feelings, resulting to deliberate
disobedience, dismissal, grievance, industrial dispute and sometimes strike.
2. Clash between management prerogatives and labor rights – There is
always a clash between management prerogatives and labor rights. Both
parties should not surrender its rights for the sake of industrial peace.
However, both parties should respect and understand its rights and find a
balance between those rights. Both parties should have a give and take
attitude and arrive at a win-win situation where opposing rights can be
reconciled.
3. Just share in the fruits of production – This is one of the reasons of
conflict in labor-management relations. The law does not stipulate the exact
amount of share in the fruits of production between labor and capital. The
employees will demand to know the financial status of the company, they
sometimes complain and doubt the financial statement as to the truthfulness
it represents (e.g. an income statement showing a net loss, where in reality it
is an income). And the employer sometimes complains that labor does not
share in the burden of losses.
4. Fair return in investments, expansion, and growth – The Constitution and
the enabling law give allowance in the allocation of the fruits or profits in
production, a fair return in investments, and a reserve for expansion and
growth. However it does not stipulates the exact amount in proportion to just
share to employees, it is left to the judgment of both parties. Thus, this issue
could lead to labor dispute that could lead to showdown in work, stoppage or
strike.

Chapter Exercises:
1. Describe the origin and the evolution of Human Resource Management.
2. What is meant by HRM? And explain the importance of HRM to the success of
an organization.

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3. Distinguish Human Resource Management from Personnel Management. To
what extent are the differences?
4. Discuss some salient points of the Labor Code, and the importance of having the
knowledge of all these laws.

CHAPTER II
Getting the Right People for the Right Job
Introduction
In order to adapt into today’s fast-paced business economic environment,
every organization should recruit talented workforce. A company is only as good as
the people it recruits. If recruitment is done well, the business benefits from its
competent and productive workforce, avoid high turnover, maintain good working
relationships, and ultimately a more profitable business.
Lesson 1: Human Resource Planning
The initial step in getting the right people for the right job, is through human
resource planning. It helps organization meets its strategic objectives as human
resource planning links HR management to the strategic plan of the organization.
Human resource planning is an important aspect in the success of a company, it
provides inputs for strategic plan of the organization, helps the company in
identifying the number and kind of workforce needed, the company’s strength and
weaknesses, etc. ensuring that the right people are hired at the right time doing the
right job.
If it is not properly implemented it will lead to disruption in the flow of work,
lesser productivity, possible dissatisfaction of their respective jobs, and inability to
meet its goals and objectives.
Definition of Human Resource Planning
According to Pattanayak (2006) human resource planning is a process of
analysing the workforce needs of a company under changing conditions, and
developing the solutions necessary for satisfying those needs.
Armstrong (2003) defines human resource planning as a ‘both quantitative
and qualitative process of ensuring that the organisation has the right people at the
right time doing the right job’.
Human resource planning (HRP) is the process by which a management
determines how an organization should move from its current manpower position to
its desired manpower position (3G Learning, 2016).
The focus of HRP is on the following (Itika, 2011):
1. To have the right skills and jobs at the right time;
2. To forecast the types of human resources needed,
3. To ensure replacements will be available and be prepared to fill vacant
posts,
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 4. To ensure recruitment policies meet the present and future number of jobs
and qualities,
5. To ensure that there is effective utilisation of human resources,
6. Facilitate personnel procedures for the present and future jobs e.g.
recruitment, placement, training, career planning etc.
Objectives of Human Resource Planning (Source: 3G Learning, 2016)
The major objectives of human resource planning in an organization are to:
 Ensure optimum use of human resources currently employed;
 Avoid balances in the distribution and allocation of human resources;
 Assess or forecast future skill requirements of the organization’s overall
objectives;
 Provide control measure to ensure availability of necessary resources when
required;
 Control the cost aspect of human resources;
 Formulate transfer and promotion policies.

Steps in Human Resource Planning (Source: 3G Learning, 2016)

1. Analysis of Organizational Plans and Objectives
Human resource planning is an important part of the overall plan of
an organization. The company should consider the future manpower needs
for possible expansion, changes in the organizational structure, increase or
changes in production, changes in objectives or any other changes that
might occur in the business. Plans concerning finance, marketing,
technology, production, and other important aspects in an organization will
give an idea about the size of future work activity, thus will have an effect on
the number and type of workforce needed to meet these plans or objectives.
2. Forecasting Demand for Human Resources

Human resource planning starts with the assessment of the number

and type of personnel required at different levels and in different
departments. The main steps involved in HRP process are:
 Determine and identify present and prospective needs of human
resources.
 Discover and recruit the required number of persons.
 Select the right number and type from the available people.
 Hire and place in the positions for which they are qualified.
 Provide information to the selected people about the nature of work
assigned to them.
 Promote or transfer as per the needs and the performance of
employees.
 Demote if the employees are disinterested or their performance is not
up to the mark.
 Terminate if they are not needed or their performance is below
standard and shows no hopes of improvement.
3. Forecasting Supply of Human Resources

It is important to note that the allocation of human resources to

different departments should depend on the workloads and human resource
requirement for a particular department. Allocation of human resource should
be well planned that available manpower is put to their full potential and
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 maximum use to ensure smooth operation of all departments and the
organization as a whole.
4. Estimating Manpower Gaps
Manpower gaps or differences can be identified by comparing
demand and supply forecasts. Such comparison will reveal either deficit or
surplus of human resources in the future. Deficits suggests to recruit from
external sources while surplus implies termination or redeployment of human
resources. Likewise, gaps may occur in terms of knowledge, skills and
competencies. Deficient employees can be trained, skilled-employees may
be given more enriched and challenging jobs.
5. Matching Demand and Supply
It is one of the objectives of human resource planning to assess the
demand and supply of human resources and compare both to know deficits
and shortages of workforce. Once gaps are identified, plans are made to
bridge these gaps.

Lesson 2: Recruitment
In today’s highly competitive business environment, every organization need
to adapt with a lot of changes in order to succeed. Since people is what makes an
organization successful, they need to attract, recruit and retain the best and talented
workforce.
Definition of Recruitment
Recruitment is the process of identifying that the organization needs to
employ someone up to the point at which application forms have arrived at the
organization.
Other definitions of Recruitment:
Recruitment is a process of identifying, screening, shortlisting and hiring
potential resource for filling up the vacant positions in an organization. It is a core
function of Human Resource Management.
Recruitment is the process of choosing the right person for the right position
and at the right time. Recruitment also refers to the process of attracting, selecting,
and appointing potential candidates to meet the organization’s resource
requirements.
Purpose and Importance of Recruitment
Recruitment is one of the most important activities in the HRM. If the
recruitment process is efficient, then the organization will have a happier and more
productive employees, attrition rate reduces, it also builds a good workplace
environment with good employee relationships. If properly done, it results in overall
growth of the organization.
Here is a list that shows the purpose and importance of Recruitment in an
organization:

 It determines the current and future job requirement.

 It increases the pool of job at the minimal cost.
 It helps in increasing the success rate of selecting the right candidates.
 It helps in reducing the probability of short term employments.
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  It meets the organization’s social and legal obligations with regards to the
work force.
 It helps in identifying the job applicants and selecting the appropriate
resources.
 It helps in increasing organizational effectives for a short and long term.
 It helps in evaluating the effectiveness of the various recruitment techniques.
 It attracts and encourages the applicants to apply for the vacancies in an
organization.
 It determines the present futures requirements of the organization and plan
according.
 It links the potential employees with the employers.
 It helps in increasing the success ratio of the selection process of
prospective candidates.
 It helps in creating a talent pool of prospective candidates, which enables in
selecting the right candidates for the right job as per the organizational
needs.

Recruitment Process
Recruitment is a process of finding and attracting the potential resources for
filling up the vacant positions in an organization. It sources the candidates with the
abilities and attitude, which are required for achieving the objectives of an
organization. Recruitment process is a process of identifying the jobs vacancy,
analysing the job requirements, reviewing applications, screening, shortlisting and
selecting the right candidate.
Recruitment process is the first step in creating a powerful resource base.
The process undergoes a systematic procedure starting from sourcing the resources
to arranging and conducting interviews and finally selecting the right candidates.
1. Recruitment Planning
Recruitment planning is the first step of the recruitment process,
where the vacant positions are analyzed and described. It includes job
specifications and its nature, experience, qualifications and skills required for
the job, etc. A structured recruitment plan is mandatory to attract potential
candidates from a pool of candidates. The potential candidates should be
qualified, experienced with a capability to take the responsibilities required to
achieve the objectives of the organization.
The following are the steps in recruitment planning:
1. Identifying Vacancy- involves identifying the number of posts to be filled,
number of positions; duties and responsibilities to be performed and the
qualification and experience required.
2. Job Analysis- Job analysis is a process of identifying, analyzing, and
determining the duties, responsibilities, skills, abilities, and work
environment of a specific job. The immediate products of job analysis
are:
 Job Description- Job description provides information about the
scope of job roles, responsibilities and the positioning of the job in the
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 organization. And this data gives the employer and the organization a
clear idea of what an employee must do to meet the requirement of
his job responsibilities
 Job specification- Job specification focuses on the specifications of
the candidate, whom the HR team is going to hire. The first step in
job specification is preparing the list of all jobs in the organization and
its locations. The second step is to generate the information of each
job.
3. Job Evaluation- Job evaluation is a comparative process of analysing,
assessing, and determining the relative value/worth of a job in relation to
the other jobs in an organization. The main objective of job evaluation is
to analyse and determine which job commands how much pay

2. Recruitment Strategy
Recruitment strategy is the second step of the recruitment process,
where a strategy is prepared for hiring the resources. After completing the
preparation of job descriptions and job specifications, the next step is to
decide which strategy to adopt for recruiting the potential candidates for the
organization. While preparing a recruitment strategy, the HR team considers
the following points:
 Make or buy employees
 Types of recruitment
 Geographical area
 Recruitment sources
The development of a recruitment strategy is a long process, but
having a right strategy is mandatory to attract the right candidates. The steps
involved in developing a recruitment strategy include:
 Setting up a board team
 Analysing HR strategy
 Collection of available data
 Analysing the collected data
 Setting the recruitment strategy
3. Searching the Right Candidates
Searching is the process of recruitment where the resources are
sourced depending upon the requirement of the job. After the recruitment
strategy is done, the searching of candidates will be initialized. This process
consists of two steps:
 Source activation: Once the line manager verifies and permits the
existence of the vacancy, the search for candidate starts.
 Selling: Here, the organization selects the media through which the
communication of vacancies reaches the prospective candidates.

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 Searching involves attracting the job seekers to the vacancies. The
sources are broadly divided into two categories: Internal Sources and
External Sources.
Internal Sources
Internal sources of recruitment refer to hiring employees within the
organization through: promotions; transfers; former employees; internal
advertisements (Job Posting); employee referrals; and previous applicants
External Sources
External sources of recruitment refer to hiring employees outside the
organization through: direct recruitment; employment exchanges;
employment agencies; advertisements; professional associations; campus
recruitment and word of mouth.
4. Screening and Shortlisting
Screening starts after completion of the process of sourcing the
candidates. Screening is the process of filtering the applications of the
candidates for further selection process. Screening is an integral part of
recruitment process that helps in removing unqualified or irrelevant
candidates, which were received through sourcing. The screening process of
recruitment consists of three steps:
 Reviewing of Resumes and Cover Letters
 Conducting Telephonic or Video Interview
 Identifying the top candidates

5. Evaluation and Control

Evaluation and control is the last stage in the process of recruitment.
In this process, the effectiveness and the validity of the process and methods
are assessed. Recruitment is a costly process, hence it is important that the
performance of the recruitment process is thoroughly evaluated. The costs
incurred in the recruitment process are to be evaluated and controlled
effectively. These include the following: salaries to the recruiters; advertisements
cost and other costs incurred in recruitment methods, i.e., agency fees;
administrative expenses and recruitment overheads; overtime and outstanding
costs, while the vacancies remain unfilled; cost incurred in recruiting suitable
candidates for the final selection process; time spent by the management and
the professionals in preparing job description, job specifications, and conducting
interviews. Finally, the question that is to be asked is, whether the recruitment
methods used are valid or not? And whether the recruitment process itself is
effective or not? Statistical information on the costs incurred for the process of
recruitment should be effective.
Types of Recruitment
 Internal Source of Recruitment

Internal sources of recruitment refer to hiring employees within the

organization internally. In other words, applicants seeking for the different positions
are those who are currently employed with the same organization. At the time
recruitment of employees, the initial consideration should be given to those
employees who are currently working within the organization. This is an important

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source of recruitment, which provides the opportunities for the development and
utilization of the existing resources within the organization. Internal sources of
recruitment are the best and the easiest way of selecting resources as performance
of their work is already known to the organization.
Pros and Cons of Internal Sources of Recruitment
Internal sources of recruitment, i.e., hiring employees within the organization,
has its own set of advantages and disadvantages. The advantages are as follows:
 It is simple, easy, quick, and cost effective.
 No need of induction and training, as the candidates already know their job
and responsibilities.
 It motivates the employees to work hard, and increases the work
relationship within the organization.
 It helps in developing employee loyalty towards the organization.
The drawbacks of hiring candidates through internal sources are as follows:
 It prevents new hiring of potential resources. Sometimes, new resources
bring innovative ideas and new thinking onto the table.
 It has limited scope because all the vacant positions cannot be filled.
 There could be issues in between the employees, who are promoted and
who are not.
 If an internal resource is promoted or transferred, then that position will
remain vacant.
 Employees, who are not promoted, may end up being unhappy and
demotivated.
 External Sources of Recruitment
External sources of recruitment refer to hiring employees outside the
organization externally. In other words, the applicants seeking job opportunities in
this case are those who are external to the organization. External employees bring
innovativeness and fresh thoughts to the organization. Although hiring through
external sources is a bit expensive and tough, it has tremendous potential of driving
the organization forward in achieving its goals
Pros and Cons of External Sources of Recruitment
External sources of recruitment, i.e., hiring employees outside an
organization, has both its benefits and drawbacks. The advantages are as follows:
 It encourages new opportunities for job seekers.
 Organization branding increases through external sources.
 There will be no biasing or partiality between the employees.
 The scope for selecting the right candidate is more, because of the large
number candidates appearing.
The disadvantages of recruiting through external sources are as follows:
 This process consumes more time, as the selection process is very
lengthy.
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  The cost incurred is very high when compared to recruiting through internal
sources.
 External candidates demand more remuneration and benefits.
To conclude, the HR department should be flexible enough to choose
between internal or external methods of recruitment, depending upon the
requirement of the organization.
Lesson 3: Selection
Employee testing and selection involves using various tools and techniques in
choosing the best candidate for the job. The selection of a right applicant for a vacant
position will be an asset to the organization, which will be helping the organization in
reaching its objectives.

Definition of Selection
Selection is the process of picking the right candidate, who is fit vacant job
position in an organization. In others words, selection can also be explained as the
process of conducting employment test, interviewing the candidates and evaluating
their qualities, which are required for a specific job and then choosing the suitable
candidate for the position. A good selection process will help ensure that the
organization choose the right candidate for the right job.
Different authors define selection in different ways. Here is a list of some of
the definitions:
 Employee selection is a process of putting a right applicant on a right job.
 Selection of an employee is a process of choosing the applicants, who have
the qualifications to fill the vacant job in an organization.
 Selection is a process of identifying and hiring the applicants for filling the
vacancies in an organization.
 Employee selection is a process of matching organization’s requirements
with the skills and the qualifications of individuals.
Difference between Recruitment and Selection
The major differences between Recruitment and Selection are as follows:
Recruitment is defined as the process of identifying and making the potential
candidates to apply for the jobs, while selection is defined as the process of choosing
the right candidates for the vacant positions.
Recruitment is called as a positive process with its approach of attracting as
many candidates as possible for the vacant jobs, while selection is called as a
negative process with its elimination or rejection of as many candidates as possible
for identifying the right candidate for the position
Both recruitment and selection work hand in hand and both play a vital role in
the overall growth of an organization.
Importance of Selection

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 Selection is an important process because hiring good resources can help
increase the overall performance of the organization. In contrast, if there is bad hire
with a bad selection process, then the work will be affected and the cost incurred for
replacing that bad resource will be high.
The purpose of selection is to choose the most suitable candidate, who can
meet the requirements of the jobs in an organization, who will be a successful
applicant. For meeting the goals of the organization, it is important to evaluate
various attributes of each candidate such as their qualifications, skills, experiences,
overall attitude, etc. In this process, the most suitable candidate is picked after the
elimination of the candidates, who are not suitable for the vacant job.
The organization has to follow a proper selection process or procedure, as a
huge amount of money is spent for hiring a right candidate for a position. If a
selection is wrong, then the cost incurred in induction and training the wrong
candidate will be a huge loss to the employer in terms of money, effort, and also
time. Hence, selection is very important and the process should be perfect for the
betterment of the organization.

Advantages of Selection
A good selection process offers the following advantages:
 It is cost-effective and reduces a lot of time and effort.
 It helps avoid any biasing while recruiting the right candidate.
 It helps eliminate the candidates who are lacking in knowledge, ability, and
proficiency.
 It provides a guideline to evaluate the candidates further through strict
verification and reference-checking.
 It helps in comparing the different candidates in terms of their capabilities,
knowledge, skills, experience, work attitude, etc.
A good selection process helps in selecting the best candidate for the
requirement of a vacant position in an organization.
Selection Process and Steps
As we have discussed that Selection is very important for any organization for
minimizing the losses and maximizing the profits. Hence the selection procedure
should be perfect. A good selection process should comprise the following steps:
 Employment Interview: Employment interview is a process in which one-on-
one session in conducted with the applicant to know a candidate better. It
helps the interviewer to discover the inner qualities of the applicant and helps
in taking a right decision.
 Checking References: Reference checking is a process of verifying the
applicant’s qualifications and experiences with the references provided by
him. These reference checks help the interviewer understand the conduct, the
attitude, and the behavior of the candidate as an individual and also as a
professional.
 Medical Examination: Medical examination is a process, in which the physical
and the mental fitness of the applicants are checked to ensure that the
candidates are capable of performing a job or not. This examination helps the
organization in choosing the right candidates who are physically and mentally
fit.
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  Final Selection: The final selection is the final process which proves that the
applicant has qualified in all the rounds of the selection process and will be
issued an appointment letter.
A selection process with the above steps will help any organization in
choosing and selecting the right candidates for the right job.
Lesson 4: Orientation: The Acculturation Process
Induction is also called orientation. Orientation is not an activity nor an event,
it is a process. Orientation is intended to educate new entrants about the company’s
culture, values, policies and principles, management, products or services, and their
respective duties and responsibilities. Orientation aims to remove fear and anxiety
felt by the new employees on their first few days in the company. It also intends to
create a positive vibes and a good impression towards the company, to avoid
employee turnover in the long run. Orientations should not be boring and too long.
Avoid overloading of information about the company, and should give opportunity to
new employees to ask questions and clarify some issues.
Elements of a Good Orientation Program
Orientation program should be planned and formal, it should not be a one
shot-deal. Orientation is more than just giving a tour, giving employee handbook, a
video presentation of the organization, etc., it should follow a planned process. It
should include the following:
1. Welcome to the Company
2. Tour of the Facilities
3. Introduction to Top Management and Co-Workers
4. Completion of Paperwork
5. Review of Employee Handbook
6. Review of Job Responsibilities

Effects of Good Orientation Program

1. Reduce start-costs
A proper orientation can help the employee start right, and do his job quickly,
thereby reducing the costs associated with learning the job.
2. Reduce employee turn-over
A good orientation shows that new employees are an important part of the
company, they will instantly feel that they are welcome thus reduces their fear and
anxiety in working in unfamiliar place. Good orientation provides tools necessary for
succeeding their respective jobs.
3. Saves time for supervisor and co-workers
The better the orientation, the less likely supervisors and co-workers will have
to spend time teaching the employees.
4. Develops positive job expectations, positive attitude and job satisfaction
If the orientation is good, new entrants learn as soon as possible what is
expected from them, and what to expect from others. Moreover, learn about values
and culture of the organization.

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Chapter Exercise:
1. Discuss the importance of human resource planning? What benefits does it
bring to the company?
2. Discuss the purpose and importance of recruitment.
3. In your own opinion, what is your best type of recruitment? Elaborate your
answer.
4. Discuss the selection and its importance.
5. What is a good orientation program? Devise your own orientation program.

CHAPTER III: DEVELOPMENT OF HUMAN RESOURCES

Lesson 1: Training and Development
To maintain the company’s competitive advantage over other companies, and
to adjust and keep-up with fast changing environment and competitive and changing
global economy, every employees regardless of rank need to learn new skills and
develop new abilities and competencies to respond to these changes. The
company’s ability to compete in today’s highly competitive economy requires a
trained and talented workforce. Only through a continuous upgrading, training and
development of skills of its employees can an organization achieve and maintain its
competitive advantage.
Definition of Training and Development
Training generally refers to the process of teaching staff how to do their job
more efficiently and effectively by boosting their knowledge and skills. While
development is the process of preparing employees to take on more responsibilities
in the future through acquiring better knowledge and skills and gaining more
experience in a particular area (source: Human Resource Management Function, p.
190., nd.)
Training and development can take a variety of forms. Below are different
types of training and development activities:
• Induction training is undertaken when a new employee joins an organization.
It is partly an information giving exercise (explaining how the firm is organized and
who works for whom) but it is also part of the socialization process, so that new staff
begin to learn the rules and understand ‘how we do things around here’. In other
words people begin to learn the culture of an organization. The lack of induction
training can encourage employees to leave their new job in the first few weeks.
• Remedial skills training: this occurs to fill ‘skill gaps’ when an employee or
group of employees lack the skills necessary to perform their current job task
effectively. It is especially important as the pace of technological change is
increasing. It would be pointless to invest in new machinery and software if the
existing workforce could not use it.

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 • Developmental training: this concerns the acquisition of competencies (skills,
knowledge and attitudes) that the company will find necessary in the future. This type
of training is designed to meet long-term corporate needs rather than providing
training in specific skills required currently. Developmental training also refers to the
preparation given to employees for promotion or for managerial succession, in which
case it is called management development and is often linked to Talent Management
schemes.
Importance of Training
Training has always been an important issue within organizations. However
well a company carries out its recruitment activities, it will usually be necessary to
equip individual employees with the skills necessary to be able to function fully within
the organization. If a company invests in new technology, it will need to train existing
employees. As companies change, individuals have to be trained and developed in
order that they can continue to function efficiently. There is nothing new in this.
However, for a number of reasons, training has recently become an issue of central
concern. Many of the reasons relate to globalization and increasing worldwide
competition and the need to control costs.
Below are reasons why training is important to every organization:
 Increasing importance of product and service quality

To try to differentiate their product from that of their competitors many

companies are increasingly focusing on quality of product and service. Striving
for quality generates considerable training needs. Equipping employees with the
requisite skills to be able to operate in a quality-oriented environment is
important, but so too is ‘attitudinal’ training. Employee commitment to quality and
to the ethos of continuous improvement requires extensive training in corporate
values and corporate culture, in order to instil within the workforce the importance
of customer care, service and product quality.

 Flexibility
The environment within which companies are operating is becoming
increasingly turbulent. If organizations are to be able to adapt to their changing
environments, there is a need for employees within the organization to be
adaptable also. An organization is only able to take advantage of an emerging
market or move into a new market niche if its employees possess the skills to be
able to operate effectively within the new market or niche (Crofts, 1995). As such,
there is an increasing emphasis on ‘emergent skills’ that might not be necessary
at the current point in time, but may well be essential in the future. In such a
situation, recruiting employees who are ‘trainable’, and will be willing and able to
learn new skills as the organization requires, also becomes important. If the
existing workforce is not willing to learn new skills, it may be that the first step
would be to train them to accept change and to change their attitude to training.
Also, a workforce will be more effective where employees do not just perform a
single job task, but where they are able to move between different job tasks. This
requires employees to be ‘multi-skilled’ (i.e. to be trained in a wide range of
skills). Employees who are fully trained to carry out all aspects of production can
then be moved around as the workload requires (Hyman, 1996).
 New technology
With the growth in advanced technologies, there is a demand for labor that
possesses the requisite knowledge and skill to use the technology effectively. It
will be impossible for companies to take advantage of new technological
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 developments, or to adapt to new technology, unless the workforce possesses
the relevant skills. It is important for managers to receive training in new
technology also, if they are to be in a position to be able to disseminate
knowledge to their subordinates (Hyman, 1996).
 Downsizing and de-layering in lean organizations
In recent times, companies have sought ways to control costs. Sometimes
initiatives include stripping out middle-management layers. For the remaining
managers and supervisors, their ‘span of control’ has increased. They have
become responsible for a wider range of functions and a larger number of staff.
As spans of control increase, managers and supervisors are no longer able to
exercise direct control over their subordinates. Instead, the expectation is that the
managers will delegate more and trust their staff. Equipping managers with the
interpersonal and coaching skills necessary to be able to adopt this style of
management is therefore increasingly important (Hyman, 1996). The most
difficult challenge is to change the attitude of managers so that they do trust their
staff.
 Employee commitment
There is an increasing realization that the provision of training, employee
development and long-term education is central in terms of the generation of
employee commitment (Holden, 2001). Studies (Wiley 2010) have shown that
training and development play a part in influencing the engagement of workers in
organizations. This is highlighted in particular where graduate recruits are
concerned. There is an increasing acknowledgement that new graduates will be
unwilling to work for companies that do not provide them with opportunities to
learn new skills or opportunities for systematic management development
(Tulgan 2009). Employees may view the willingness of the organization to train
them and to invest in their development as setting up an obligation that needs to
be reciprocated. The employee may then work harder or be prepared to stay in
the organization.

 ‘Spillover effect’
The training of an individual employee may also have a beneficial effect on all
the other employees in that team or section. Better performance or more skilled
working practice may be transferred from the person who was trained to their co-
workers through collaboration and daily interaction. The organization benefits by
more than the money spent on one training course. Sometimes managers take a
deliberate decision to send only one worker on the course to learn new skills and
expects that worker to train the others. This is called cascade training. The
advantage is that it is cheaper as only one worker goes on a course. The
disadvantage is that if the trained worker has not fully understood the training,
then all the workers in that section will not be fully trained as a consequence.
 Skills and labor shortages
In times when unemployment is low companies cannot expect to find skilled
workers amongst the shrinking pool of unemployed. In such a situation, if
companies need specific skills, it becomes increasingly necessary to develop
them in-house. However the reverse is not true, that organizations do not need to
train when there are large numbers of unemployed. Most labor markets suffer
from skills shortages and so although there may be many people seeking work,
they may not have the skills and knowledge required by an employer.

Development

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 Developing employees is about preparing them for taking on more
responsibilities in the future. This is not only good for the employee but crucial for the
employer, who must plan for future human resource needs at both the managerial
and entry levels. Effective development programs ensure staff are retained, and that
motivation and commitment are enhanced through promotion opportunities for all
employees over the longer term. Training is a big part of developing staff and
assisting them to reach their true potential. How an employee is developed in an
organisation will depend on the organisation’s needs as well as the employee’s
career stage. In the early stages of an employee’s career, the focus may be on
gaining qualifications. As they move from one employment area to another, younger
employees focus on experiencing a variety of roles to determine their interests and
talents. Later, developing specialist or managerial competencies may become
important as employees move into senior positions. Programs aimed specifically at
developing effective managers may focus on the use of:
• Job rotation — the employee experiences many different aspects of an
organisation. For example, a manager may move from one section of the
business to another, taking with them their management skills and applying
them to a different situation. In theory this is supposed to reduce boredom
because the employee is exposed to new situations and is given plenty of
variety.
• Mentoring — a mentor acts a bit like a coach, supporting the employee as
they learn. The employee is able to gain from the experience and skills of
another person in the organisation.
• Formal business training — this may be done through programs such as
the Masters of Business Administration (MBA). Closely related to developing
staff is the concept of succession  planning.
Succession planning is ensuring that there are managers in the
organisation who can step into senior management positions, if for some
reason a vacancy occurs. This is particularly important for many
organisations, because some management roles require specific skills and a
detailed knowledge of how the organisation operates. It may take years of
grooming the right person to ensure that when a senior manager does move
on, there is someone to take his or her place.
Typical Reasons for Employee Training and Development
1. When performance appraisal indicates performance improvement is needed.
2. To benchmark the status of improvement so far in a performance
improvement effort.
3. As part of an overall professional development program.
4. As part of succession planning to help an employee eligible for a planned
change in role in the organization.
5. To test the operation of a new performance management system
6. To train about specific topic such as computer skills, quality assurance,
communications, supervisory, customer service, human relations, how to
handle a grievance and discipline, labour relations, safety, negotiations, and
many others.

Specific Benefits from Employee and Training Development

1. Increased job satisfaction and morale
2. Increased employee motivation

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 3. Increased effectiveness in processes, resulting in financial gain
4. Increased capacity to adopt to new technologies and methods
5. Increased innovation in strategies and products.
6. Reduce employee turn-over
7. Enhanced company image
8. Improved risk management and ethical behavior in business

Lesson 2: Career Planning and Development

Career planning and development is necessary in every organization

especially in today’s business environment, for a variety of reasons. First, with a
maturing baby-boomers (person born in 1946-1964), newer employees must be
trained to take those jobs once baby boomers retire. Second, if an employee knows
particular path to career planning and development is in place, this can increase
motivation. A career development plan usually includes a list of short and long-term
goals that employees have pertaining to their current and future jobs and a planned
sequence of formal and informal training and experiences needed to help them reach
the goals.

To help develop this type of program, managers can consider a few

components:

 Talk to employees. Talking with employees about their goals and what they
hope to achieve can be a good first step developing a formal career
development program.
 Create specific requirements for career development. There should be a
clear process for the employees to develop themselves within the
organization. Employees must prove themselves that they are qualified for a
certain position if they possess the required eligibilities, trainings or
experiences.
 Use cross-training and job rotation. Cross-training is a method by which
employees can gain management experience, even if for short periods of
time. For example, when a manager is out of the office, putting an employee
“in charge” can help the employee learn skills and abilities needed to perform
that function appropriately. Through the use of job rotation, which involves a
systematic movement of employees from job to job within an organization,
employees can gain a variety of experiences to prepare them for upward
movement in the organization.
 Utilize mentors. Mentorship can be a great way for employees to understand
what it takes to develop one’s career to the next level. A formal mentorship

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 program in place with willing mentees can add value to the organization’s
career development plan.

Career Planning and Development Process

Here is an example of a process that can be used to put a career

development program in place:

 Meet individually with employees to identify their long-term career interests

(this might be done by human resources or the direct manager).
 Identify resources within the organization that can help employees achieve
their goals. Create new opportunities for training if you see a gap in needs
versus what is currently offered.
 Prepare a plan for each employee, or ask them to prepare the plan.
 Meet with the employee to discuss the plan.
 During performance evaluations, revisit the plan and make changes as
necessary.

Importance of Career Planning and Development

Chapter Assessment:
1. What are the objectives in conducting an orientation or induction?
2. What are the components of a formal orientation? Discuss each component.
3. What are the effects of a good orientation?
4. Discuss why training and development is important to employees and
companies?

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References

Failte Ireland (2013) Recruitment and Selection: A Guide to Help You Review Your
Existing Approach to Recruitment and Selection.

Dessler, Gary (2010) Human Resource Management. Prentice Hall.

3G Learning (2016). Human Resource Management in Small Business.

Istika, Josephat S. (2011). Fundamentals of Human Resource Management.

Maera, B. and Petzall, S. (2013). Handbook of Strategic Recruitment and Selection:

A Systems Approach.

Picardi, C. (2019). Recruitment and Selection, Strategies for Workforce Planning and
Assessment. University of Bridgeport, USA.

Parker, Y. (2012). The Damn Food Resume Guide: A Crash Course in Resume
Writing.

Wood, R and Payne, T. (2012). Competency Based Recruitment and Selection.

Fein, R. (2012). 101 Hiring Mistakes Employers Make, & How to Avoid Them.

Arthur, R. (2012). Recruiting, Interviewing, Selecting and orienting new Employees.

Straub, J. (2014). The Job Hunt: How To Compete & Win.

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