MODULE 1: THE CONCEPT OF HRM (HUMAN
Health and Safety
RESOURCE MANAGEMENT)
To understand what human resource
management is, it’s useful to start with what
managers do.
An organization consists of people with formally
assigned roles who work together to achieve the
organization’s goals.
A manager is someone who is responsible for
accomplishing the organization’s goals, and who
does so by managing the efforts of the
organization’s people.
Planning -establishing goals and standards;
developing rules and procedures; developing plans
and forecasts.
Organizing -giving each subordinate a specific task;
establishing departments; delegating authority to
subordinates; establishing channels of authority
and communication; coordinating the work of
subordinates
Staffing -determining what type of people should
be hired; recruiting prospective employees;
selecting employees; setting performance
standards; compensating employees; evaluating
performance; counseling employees; training and
developing employees.
Leading – getting others to get the job done;
maintaining morale; motivating subordinates.
Controlling -setting standard such as sales quotas,
quality standards, or production levels; checking to
see how actual performance compares with these
standards; taking corrective action as needed.
In this course, we will focus on one of these
functions – the staffing, personnel management,
or human resource management function.
Human Resources -are the people an organization
employs to carry out various jobs, tasks, and
functions in exchange for wages, salaries, and other
rewards.
Human Resource Management - refers to the
comprehensive set of managerial activities and
tasks concerned with attracting, developing, and
maintaining a qualified workforce—human
resources—in ways that contribute to
organizational effectiveness.
Human Resource Management Functions
1. Recruitment & selection
2. Training & development
3. Performance management
4. Compensation & benefits
5. Employee relations
6.
7. Employee wellness
8. Organizational development
9. Compliance
CONTEMPORARY HUMAN RESOURCE
MANAGEMENT PERSPECTIVES
In most organizations today, the role of HRM has
become quite important.
This results partly from a growing realization of the
importance of people as a source of competitive
advantage, but there are also more practical
reasons.
HRM function also came to require dedicated
professionals who could balance legal and ethical
concerns with the need of organizations to survive
and be profitable. If a firm did not employ qualified
managers in these roles, then they faced increased
risks of serious financial penalties and legal fees.
Managers around the world have come to
understand that properly managed human
resources can be an important source of
competitive advantage in an increasingly
competitive world. In fact, as noted earlier, human
resources are the organization’s most important
resources. (Employees are the best asset)
Given the shift in competitiveness, top executives
in most firms now see that HRM practices and
policies significantly affect their ability to
formulate and implement strategy in any area and
that other strategic decisions significantly affect the
firm’s human resources as well.
Today, most firms use a term such as human
resource management to reflect more accurately
the sophistication and maturity of the function.
But some people argue that even this term is
outdated and does not do justice to the role the HR
manager plays.
Other companies and industries use other terms
such as: HUMAN CAPITAL MANAGEMENT, PEOPLE
AND CULTURE, KNOWLEDGE MANAGEMENT, ETC.
At the same time that HR managers were taking on
a more strategic role, many organizations began
shrinking the more traditional roles played by HR
managers.
Today, many large organizations hire outside firms
to handle some business and HR functions. This
practice, commonly known as outsourcing. It is the
process of hiring outside firms to handle basic HRM
functions, presumably more efficiently than the
organization could.
Other important factors in the contemporary HR
perspective:
• Succession planning, especially for “star”
positions in the company.
• Rights of employees who belong to minority
groups such as LGBTQ, PWD, and ethnic and
indigenous groups.
• Employee security against harm and
dangers of terrorism.
• Health care and insurance
• Immigration
EVOLUTION OF HUMAN RESOURCE FUNCTION
SCIENTIFIC MANAGEMENT
It is one of the earliest approaches to management,
was concerned with structuring individual jobs to
maximize efficiency and productivity.
The major proponents of scientific management,
such as Frederick Taylor and Frank and Lillian
Gilbreth, had backgrounds in engineering and often
used time-and-motion studies in which managers
used stopwatches to teach workers precisely how
to perform each task that made up their jobs.
It was also concerned was concerned with every
motion a worker made, and there were many
examples of how changes in movements or in the
placement of some piece of equipment led to
increased productivity.
B.F. Goodrich was the first company to establish a
corporate employment department to deal with
employee concerns in 1900.
National Cash Register (NCR) set up a similar
department in 1902 to deal with employee
grievances, wages and salaries, and record keeping.
The need for an employment department at Ford
became clear as the company increased its
production from 800 cars a day in 1910 to more
than 9,000 cars a day by 1925, and increased its
workforce from less than 200 to several thousand
employees.
Office workers were also needed, so people with
titles such as office manager hired clerks and
secretaries.
As these businesses became more complex and
their hiring needs more complicated, most large
businesses, including Ford, began hiring new
employees through newly created specialized units.
Ford, for example, called this unit the employment
department.
The emergence and growth of large labor unions
and the passage of minimum wage made it
necessary for businesses to have one or more
managers represent the interests of the business to
organized labor and to administer the emerging set
of laws and regulations that governed labor
practices.
EARLY ADVOCATES OF OB
Chester Bernard (1930s)
-actual manager who thought organizations were
social systems that required cooperation
-believed manager’s job was to communicate and
stimulate employees’ high levels of effort
-first to argue that organizations were open systems
Hugo Munsterberg (early 1900s)
-pioneer in field of industrial psychology - scientific
study of people at work
-suggested using psychological tests for employee
selection, learning theory concepts for employee
training, and study of human behavior for
employee motivation.
Mary Parker Follet (early 1900s)
-one of the first to recognize that organizations
could be viewed from perspective of individual and
group behavior
-proposed more people- oriented ideas than
scientific managements followers
-thought organizations should be based on group
ethic
Robert Owen (late 1900s)
-concerned about deplorable working conditions
-proposed idealistic workplace
-argued that money spent improving labor was
smart investment
HUMAN RELATIONS
Another important ingredient in the origins of the
HR function during this period was the so – called
human relations era, which emerged following the
Hawthorne studies.
Between 1927 and 1932, the Western Electric
Company sponsored a major research program at
its Hawthorne plant near Chicago. This research,
conducted by Roethlisberger and Mayo, revealed
for perhaps the first time that individual and group
behavior played an important role in organizations
and that human behavior at work was something
managers really needed to understand more fully.
HIERARCHY OF NEED BY ABARAHAM MASLOW
MCGREGOR’S THEORY X AND THEORY Y
The basic premise of this HR era was that if
managers made their employees more satisfied
and happier, then they would work harder and be
more productive.
PERSONNEL MANAGEMENT
We noted earlier that growing organizations began
to create specialized units to cope with their
increasing hiring needs, deal with government
regulations, and provide a mechanism for better
dealing with behavioral issues. During the 1930s
and 1940s, these units gradually began to be called
personnel departments.
Personnel management evolved further during
World War II. Both the military and its major
suppliers became interested in better matching
people with jobs.
Psychologists were consulted to help develop
selection tests, for example, to assess individual
skills, interests, and abilities more accurately.
Still, from the first days of its inception until the
1970s, personnel management was not seen as a
particularly important or critical function in most
business organizations.
The first real impetus for the increased importance
of the HRM role came with the passage of several
employee laws and regulations.
It quickly became critically important to
organizations that those responsible for hiring and
promoting employees fully understood the legal
context within which they functioned.
At the same time, however, HR management is
changing in response to new technological
innovations, so we must consider how the
electronic age has affected the HRM function.
HUMAN RESOURCE MANAGEMENT IN THE
ELECTRONIC ERA
HRM AND THE ELECTRONIC ERA
Bigger, faster computers have allowed firms to
compile large amounts of data and keep better
track of employees, and new approaches to data
analysis allow organizations to monitor patterns of
behavior and preferences of those employees.
HR FUNCTION AND TECHNOLOGY
O*NET OnLine system, introduced several years
ago, now makes it possible for an organizations to
obtain the job analysis information they need from
an online database.
Organizations have changed the way they advertise
jobs to recognize that, today, most potential
applicants search for jobs by accessing one of the
many job-search websites
The use of online testing for selection and
interviews being conducted by SKYPE and other
new technology, rather than face to face
Training programs can now be purchased from
vendors and provided to employees online,
allowing them to take classes and training at their
own pace.
Information about benefits and the ability to
change benefits are also available to employees
online, allowing more flexibility in how benefit
plans are administered.
Computer monitoring allows organizations to
collect real-time performance data from employees
on various jobs.

Have these new applications of technology made
HRM easier?
Management can now easily deliver information
and communicate with employees, but the
openness of communication also means that
employees can communicate with management,
and this presents new challenges to managers.
Electronic systems for communication and
monitoring also bring up new challenges for the
legal system and have led to new discussions about
ethics and privacy.
Increase in the needs of KNOWLEDGE WORKERS
As organizations introduced new technologies for
manufacturing, communication, and HRM, they
also increased their need for more specialized
employees.
Knowledge workers are employees whose jobs are
primarily concerned with the acquisition and
application of knowledge. They contribute to an
organization through what they know and how they
can apply what they know.
EMERGING HUMAN RESOURCE CHALLENGES
1. Unemployment rates
2. Rights of the LGBTQ individuals
3. #MeToo Movement: Sexual harassment
and misconduct at work
4. Corporate social responsibility and green
initiatives
5. Conscious capitalism / triple bottom line -
refers to treating social outcomes and
financial outcomes as complementary,
rather competing.
GOALS OF HUMAN RESOURCE MANAGEMENT
 Facilitating organizational competitiveness
-All organizations have a general set of goals
and objectives that they try to accomplish.
Regardless of the time horizon or the level
of specificity involved in these goals, they
are generally intended to promote the
organization’s ability to be competitive in
fulfilling its purpose or mission.
 Enhancing overall quality and productivity
1. Productivity is the measure of efficiency
that summarizes and reflects the value
of the outputs created by an individual,
organization, industry, or economic
system relative to the value of the
inputs used to create them.
2. Quality is the total set of features and
characteristics of a product or service
that bears on its ability to satisfy stated
or implied
 Complying with Legal and Social
Obligations
-As noted earlier, beyond the strict legal
parameters of compliance, more and more
organizations today are assuming some
degree of social obligation to the society in
which they operate. This obligation goes
beyond the minimum activities required to
comply with legal regulations and calls for
the organization to serve as a contributing
“citizen.”
 Promoting Individual Growth and
Development
-As a starting point, this goal usually
includes basic job-related training and
development activities.
-In general, more firms are seeing HRM as
part of the psychological contract that they
have with employees. A psychological
contract is the overall set of expectations
held by the employee with regard to what
he or she will contribute to the organization
and that are held by the organization with
regard to what it will provide to the
individual in return.
SETTING FOR HUMAN RESOURCE MANAGEMENT
Human Resource Management as a Staff versus
Line Function
Organizations historically divided their managers
into two groups: line management and staff
management.
1. Line managers are those directly
responsible for creating goods and
services.
2. Staff managers are those responsible for
an indirect or support function that
would have costs but whose bottom-line
contributions are less direct.
Recent Trends
HRM activities are carried out by line managers.
Some firms have HR departments structured
around centers of excellence. In these cases, the
HR department is responsible for providing services
only in those cases where it can provide higher-
quality services than can be purchased on the
outside. When they cannot provide higher-quality
services, they are often asked to identify and then
manage the outside consultants who are brought in
to perform the services.

HRM IN SMALLER AND LARGER ORGANIZATIONS
SMALLER ORGANIZATIONS
-Require line managers to handle their basic HR
functions
-Employees receive less training
-Exempt from many legal regulations
LARGER ORGANIZATIONS
-Separate HR unit is a necessity
-Require one full-time manager and a secretary
-HR functions have specialized subunits
TRENDS SHAPING HUMAN RESOURCE
MANAGEMENT
WORKPLACE DEMOGRAPHICS
The composition of the workforce will continue to
become more diverse with more women, minority
group members, and older workers in the
workforce.
TRENDS IN JOBS PEOPLE DO
1. Work has shifted from manufacturing to
service: In the next few years, almost all the
new jobs added in the world will be in
services, not in goods-producing industries.
2. On-demand workers: An on-demand
workforce is a group of people that can be
hired as and when needed – sometimes
even beginning work the same day – and
may include temporary employees, day
laborers, or freelance workers.
3. Human capital: Finally, more jobs are
becoming “high tech”. Some jobs always
emphasized knowledge and education. For
managers, the challenge here is that they
have to manage such workers differently.
GLOBALIZATION TRENDS
Globalization refers to companies extending their
sales, ownership, and/or manufacturing to new
markets abroad.
More globalization meant more competition, and
more competition meant more pressure to be
“world class”-to lower costs, to make employees
more productive, and to do things better and less
expensively.
HUMAN RESOURCE MANAGEMENT SYSTEM
The modern view of HRM is also a systems-oriented
view.
A system is an interrelated set of elements
functioning as a whole.
A human resource management system is an
integrated and interrelated approach to managing
human resources that fully recognizes the
interdependence among the various tasks and
functions that must be performed.
The basic premise of this perspective is that every
element of the HRM system must be designed and
implemented with full knowledge and
understanding of, and integration with, the various
other elements.
For example, poor recruiting practices will result in
a weak pool of applicants. Even if the organization
has sophisticated selection techniques available, it
will not make much difference without a pool of
qualified applicants to choose from.
HRM subsystems affect and are affected by other
organizational subsystems.
Utility Analysis: Attempts to measure the
impact of effectiveness of HRM practices in terms
of metrics such as a firm’s financial performance.
ECONOMIC TRENDS
1. Unemployment rates
2. Economic performance of the country
3. Labor force trends: Continuous lowering of
the labor force growth and labor force
participation rate.
4. The unbalanced labor force: in come
occupations, unemployment rates are low,
while in others unemployment rates are still
relatively high.
TECHNOLOGY TRENDS
1. Employers use social media for recruiting
employees.
2. New mobile applications for monitor
location
3. Gaming support
4. Cloud computing
5. Data analytics-talent analytics
CHARACTERISTICS OF A CONTEMPORARY HR
MANAGER
1. Understand the difference HR functions.
2. Possess general management abilities that
reflect conceptual, diagnostic, and analytical
skills.
Conceptual Skill – the ability to coordinate and
integrates all of an organization’s interests and
activities.
Diagnostic and Analytical Skills - ability to visualize
the best response to a situation.
CAREERS IN HUMAN RESOURCE MANAGEMENT
 Obtain a degree in Human Resource
Management
1. Provides an entry – level employment
opportunity as an HR manager.
 Line management can be used as a route to
HRM.
1. Enabled via rotation of managers
through the HR function.
MODULE 2: INFORMATION FOR MAKING HUMAN
RESOURCE DECISIONS
HUMAN RESOURCE PLANNING AS A SOURCE OF
INFORMATION
Do you agree that workforce is the most
important resource of the company? YES
An organization may pursue a growth strategy, and
the HR manager may attempt to recruit and hire
new employees, but if there are not enough people
in the labor force with the required skills or
background, then, efforts to recruit and hire will
fail, as will the overall growth strategy. Thus, the
composition of the labor force is a major limiting
factor in pursuing strategic goals. The successful
management of this component requires human
resource planning.
WHAT IS HUMAN RESOURCE PLANNING?
Human resource planning is the process of
forecasting the supply and demand for human
resources within an organization and developing
action plans for aligning the two.
TWO MAJOR CONCEPTS IN HR PLANNING
Labor Demand is the organization’s projected
human resources requirement.
Labor supply is the organization's source of workers
to meet demand requirements.
A. FORECASTING THE SUPPLY OF HUMAN
RESOURCES
 Involves predicting the availability of current
of potential employees with the skills,
abilities and motivation to perform jobs that
the organization expects to have available.
 Several mechanisms can help managers
forecast the supply of human resources in
regard to current employees.
o Looking at the internal records (201
files)
o Looking at the trends (Check the
extent to which people leave their
jobs voluntarily or involuntarily
 An increasingly important element in this
part of the HR planning process is the use of
human resource information system.
o A human resource information
system is an integrated and
increasingly automated system for
maintaining a database regarding
the employees in an organization.
o A properly developed human
resource information system should
have details on each and every
employee regarding date of hire, job
history within the organization,
education, performance ratings,
compensation history, training and
development profile, and various
special skills and abilities.
LABOR TRENDS AND ISSUES
 The baby boom generation continues to
age.
 Decline birthrates for the post-baby boom
generation are simultaneously accounting
for a smaller percentage of new entrants
into the labor force.
 Improved health and medical care also
contributed to an aging workforce. People
are now simply able to be productive at
work for longer periods of their lives.
 Mandatory retirement ages have been
increased or dropped altogether, allowing
people to remain in the labor force for
longer periods.
  More women have entered the workforce, in the workplace. These investments might take the
and their presence is felt in more and more form of additional education or training
occupational groupings that were
traditionally dominated by men.

Unemployment Rates -the rate of employment is

 Employee diversity (gender, ethnicity, age,
calculated by the Philippine Statistics Authority as
race)
the percentage of individuals looking for and
 Shift on population (migration and
available for work who are not currently employed.
immigration patterns)
 Executive succession: It involves Market Wage Rate -prevailing wag rate for a given
systematically planning for future job in a given labor market, this is also known as
promotions into top management positions. the minimum wage.
B. FORECASTING THE DEMAND FOR HUMAN
COMPARING LABOR DEMAND AND LABOR SUPPLY
RESOURCES
 HR managers need to ascertain the
numbers and types of people the
organization will actually need to employ in
the future.
 One important ingredient in this assessment
is the organization’s own strategic plans
regarding anticipated growth, stability, or
decline.
 HR managers also required to consider
larger, broader trends in the economy (what
jobs are considered in demand and
declining in terms of number)
TOP 10 IN-DEMAND JOBS IN 2023
1. Customer service representative
2. Teacher
3. Administration officer JOB ANALYSIS AS A SOURCE OF INFORMATION
4. Call center operator Job Analysis -this refers to the process of gathering
5. Nurse and organizing detailed information about various
6. Software engineer jobs within the organization so that managers can
7. Team leader better understand the processes through which the
8. Business analyst jobs are performed most effectively.
9. Sales associate
10. Engineer Knowledge, Skills and Abilities (KSAs)

Growth strategy -indicates growing sales,  These are the fundamental requirements
increasing demand, and expanding operations for necessary to perform a job.
the organization.  As a result, for planning purposes,
organizations often try to form job families –
Stability strategy -organizations implement
groups of jobs that have task and KSA
programs that help reduce turnover among current
requirements that are quite similar.
employees, making stability easier to maintain.
Reduction strategy -alternative to terminations and
layoffs is early retirement.
ECONOMIC CONDITIONS AS A SOOURCE OF
INFORMATION
We noted previously how the economy influenced
Job Analysis and Other Human Resource Functions
the supply of and demand for different types of
employees, but the economy also has a more
general effect on the workforce that the HR
manager must consider.
Human Capital Investments -these are investments
people make in themselves to increase their value

Job Analysis Process
DIFFERENT METHODS TO COLLECT JOB ANALYSIS
INFORMATION
Job analysts: Individuals who perform job analysis
in an organization.
Subject Matter Expert (SME): Individual who is
highly knowledgeable about a particular job.
Occupational Information Network (O*NET):
Database that provides both basic and advanced
job-analysis information.
JOB ANALYSIS TECHNIQUES
Position Analysis Questionnaire: A standardized
job-analysis instrument consisting of 194 items that
reflect work behavior, working conditions, and job
characteristics that are assumed to be generalizable
across a wide variety of jobs.
Management Position Description Questionnaire:
A standardized job-analysis instrument, similar in
approach to the PAQ, that also contains 197 items.
Critical Incidents Approach: Focuses on critical
behaviors that distinguish effective from ineffective
performers.
PRODUCTS OF JOB ANALYSIS
Job Description -it lists the tasks, duties, and
responsibilities for a particular job. It specifies the
major job elements, provides examples of job tasks,
and provides some indication of their relative
importance in the effective conduct of the job
Job Specification -it focuses on the individual who
will perform the job and indicates the knowledge,
abilities, skills and other characteristics that an
individual must have to be able to perform the job.
MODELING COMPETENCIES AND THE END OF THE
JOB
 Concept of a job is becoming obsolete
o Traditional job-analysis methods
cannot be applied in modern
organizations
 Competency
o Broader than abilities
o Exists at a deeper level and underlies
abilities
 Competencies are identified by a team of
top managers who work with consultant
LEGAL ISSUES IN JOB ANALYSIS
 Some guidelines on selection include:
o Discussion of the appropriate ways
to conduct job analysis
o Careful analysis before establishing
the job relatedness of a selection
instrument
 Issues regarding accuracy of job-analysis
information
o Gender discrimination
o Creation of autonomous work teams
MODULE 3: HUMAN RESOURCE DECISION-
MAKING IN ORGANIZATION
ETHICS AND HUMAN RESOURCE MANGEMENT
ETHICS AND HRM
In module 1, we discussed how the legal framework
provided a set of parameters for HRM decisions.
But ethics is another important aspect of decision
making that is separate from the law, although the
two are closely intertwined. Ethics is separate
concept from the law but is closely intertwined.
ETHICS
 It refers to an individual’s belief about what
is right and wrong and what is good and
bad.
 Ethics are formed by the societal context in
which people organization’s function.
 It may or may not coincide with the law
 Business ethics is complicated in the global
environment of business
 Different countries and different cultures
have different values and norms
RIGHTSIZING
 is the process of monitoring and adjusting
the composition of the organization’s
workforce to its optimal size.
 Managing the workforce size involves:
o Layoffs or early-retirement
o Retention programs
o Using temporary workers as a bridge
between the current state of affairs
and growth or reduction
REMEMBER!
One of the more basic decisions an organization
must make concerning human resources is the size
of the workforce. Whether a company is forecasting
revenue growth or decline, the number of its
employees must be adjusted to fit the changing
needs of the business.
DEALING WITH INCREASED DEMAND OF
EMPLOYEES
OVERTIME
 Overtime refers to hours worked above the
norma; 40-hour workweek for which there
is usually a pay premium.
 This alternative is especially beneficial when
the increased need for human resources is
short term.
 An advantage to this approach is that it
gives employees the opportunity to earn
extra income.
 On the other hand, labor costs per hour are
likely to increase.
 It could also lead to fatigue and anxiety.
IS OVERTIME REQUIRED?
In general, an employer can request that an
employee work overtime, but they cannot “force”
an employee to do so against their will, except
under certain circumstances defined as “emergency
work” under Article 89 of the Labor Code.
The overtime pay rates depend upon the day work
is performed, based on the government guidelines
it is as follows:
EMPLOYEE LEASING
 Employee leasing involves an organization
paying a fee to a leasing company that
provides a pool of employees who are
available on a temporary basis
 This pool of employees usually constitutes a
group or crew intended to handle all or
most of the organization’s work needs in a
particular area.
 An organization can pay a fee to a leasing
company that provides a pool of employees
to the client firm.
 The basic advantage to the organization is
that it essentially outsources to the leasing
firm the HR elements of recruiting, hiring,
training, compensating, and evaluating
those employees
 On the other hand, because the individuals
are not employees of the firm, they are
likely to have less commitment and
attachment on it.
 In addition, the cost of the leasing
arrangements might be a bit higher than if
the employees have been hired directly by
the firm itself.
PART-TIME WORKERS
 Part-time workers refers to individuals who
are regularly expected to work less than 40
hours a week. They typically do not receive
benefits and afford the organization a great
deal of flexibility in staffing.
 These employees are usually not covered by
benefits, thus lowering labor costs, and the
organization can achieve considerable
flexibility.
DEALING WITH DECLINING NEEDS FOR EMPLOYEES
 Cutting back on the contingent workforce
and retaining only permanent members
o Works best in cyclical industries
 Early retirement and natural attrition
o Provide incentives for other
employees to retire early
  Plans must be voluntary
o Failure to do so could elicit legal
actions
STRATEGIES FOR LAYOFFS
WHAT IS LAYOFF?
 When notified of a layoff, some employees
decide to sue the organization for wrongful
termination. In these cases, the former
employee alleges that the organization
violated a contract or a law in deciding who
to terminate.
 Even if an employee does not pursue legal
remedies, many employees who have lost
their jobs develop negative feelings toward
their former employer
 In the Philippine labor system, there are two
kinds of layoff: permanent and temporary.
 Temporary: Maximum of six months. The
law set six (6) months as the period where
the operation of a business or undertaking
may be suspended, thereby also suspending
the employment of the employees
concerned.
 Permanent layoff: It is the termination of
employment initiated by the employer
through no fault of the employees. It is also
known as retrenchment.
Both temporary lay-off and permanent lay-off are
grounded on economic reasons. The main
difference is that in a temporary lay-off, there is
only a temporary work suspension and thus the
employees remain employed with the employer.
However, in a permanent lay-off or retrenched,
the employees are separated resulting in their exit
from employment.
A critical determinant of an employee’s reaction to
being laid off is his or her perceptions of the justice
involved in the layoff process.
TYPES OF JUSTICE
Distributive Justice – refers to perceptions that the
outcomes a person faces are fair when compared
to the outcomes faced by others.
Procedural Justice -refers to perceptions that the
process used to determine the outcomes was fair.
Interactional Justice -refers to the quality of the
interpersonal treatment people receive when a
decision is implemented.
CRITICAL DIMENSIONS OF PROCEDURAL
Voice: the perception that the person had some
control over the outcome or some voice in the
decision
Consistency: the perception that the rules were
applied the same way to everyone involved.
Free from bias: the perception that the person
applying the rules had no vested interest in the
outcome of the decision.
Information accuracy: the perception that the
information used to make the decision was
accurate and complete.
Possibility of correction: the perception that some
mechanism exists to correct flawed or inaccurate
decisions.
Ethicality: the perception that the decision rules
conform to personal or prevailing standards of
ethics and morality.
Representativeness: the perception that the
opinions of the various groups affected by the
decision have been considered in the decision
EFFECTIVENESS OF DOWNSIZING
 Most studies suggest that downsizing is an
ineffective strategy
 Strategy preferred by stockholders
o Downsizing result in negative effects
on stock prices and other financial
indexes
 Survivor syndrome
o Existing employees’ morale and
commitment drop dramatically
 Alternatives to layoffs may result in job loss
MANAGING INVOLUNTARY TURNOVER
 Involuntary turnover: terminating
employees whose services are no longer
desired
o Represents a failure in the HR system
 Managers should always start with an effort
to rectify the problem before termination
 Employee assistance programs (EAPs)
o Help employees and reduce the
costs associated with lost workdays
and poor productivity
PROGRESSIVE DISCIPLINE
 Designed to try to improve performance
through the use of punishment and
discipline
 Progressive disciplinary plans: severity of
punishment increases over time or across
the problem
 o Steps involved include verbal
warnings, written warnings,
suspension, and termination
TYPICAL DISCIPLINARY PROBLEMS
EMPLOYMENT AT WILL
 It means employer can terminate any
employee, at any time, for any reason, or
for no reason at all
o Key to successful termination is
documentation
 Some firms use positive discipline
o Emphasizes positive changes instead
of punishment
REMEMBER!!
At-will employment, where the employer may
dismiss an employee at any time, without cause
and by mere notice or salary in lieu of notice, is not
allowed under Philippine labot law.
EMPLOYEE RETENTION
 It refers to the ways of reducing the
voluntary turnover of desired employees
 HR analytics plays an important role
o Regular employee satisfaction survey
and exit interviews provide valuable
information
MODEL OF THE TURNOVER PROCESS
Resignations can be contagious: one resignation
can make it more probable for others to quit by 7%-
25%. This phenomenon is known as “TURNOVER
CONTAGION”
JOB DISSASTISFACTION
 The basic reason people leave their jobs is
because they are unhappy with them.
 This is the major cause of voluntary
turnover
 Even if an employee is extremely
dissatisfied, he or she is not likely to quit
without real prospects of finding another
job.
CAUSE OF JOB DISSASTISFACTION
1. Nature of the work
2. Pay and Benefits
3. Supervisors and Coworkers
EFFECSS OF JOB DISSASTIFACTION
 It leads to increased voluntary turnover
 It is also predictive of other types of
withdrawal behavior
 Dissatisfied employees are also more likely
to join unions.
 A more subtle form of withdrawal that does
not involve being away from the job is a
reduction of commitment to the
organization.
o Organizational commitment: the
degree to which an employee
identifies with an organization and is
willing to exert effort on behalf of
the organization.
 Dissatisfied employees are less likely to
engage in behaviors on the job known
broadly as organizational citizenship
behaviors.
o Organizational citizenship
behaviors: include those behaviors
that are beneficial to the
organization but are not formally
required as part of an employee's
job
Happier workers are healthier workers.
Dissatisfied employees are more likely to be
absent for health reasons.
MEASURING AND MONITORING JOB
SATISFACTION
 Attitude surveys
o Job descriptive index (JDI) -assesses
satisfaction with specific job aspects
 Usage of instruments that include questions
about desired versus experienced levels of
satisfaction
o Example – faces scale
RETENTION STRATEGIES

 Job enrichment: making work meaningful

and giving more autonomy and opportunity
to use skills
 Realistic job previews: Pre-employment
previews that provide accurate and realistic
information to the job applicant
 Stock options: Rights given to employees to
purchase a certain number of shares of
stock at a given price
TOP 10 Employee Retention Strategies
1. Build employee engagement
2. Get recognition and rewards right
3. Recruit the right employees
4. Create an exceptional onboarding
experience
5. Provide avenues for professional
development
6. Build a culture employees want to be a
part of
7. Offer winning incentives
8. Manage to retain
9. Prevent burnout by focusing on employee
wellness
10. Maintain open and ongoing
communication
MANAGING HR DURING MERGERS AND
ACQUISITIONS
Employees are concerned with job security
Mergers and acquisition threaten a worker’s self-
identity and core beliefs
HR managers can serve as the center of
communication
Important to build employee identification with the
new corporate identity