Chapter 1:

Changing Perspective of
Human Resource Mgt.
Objectives:
After this lesson, you should be able
to:
 Define Human Resource Management;
 Discuss why Human Resource
Management is both a science and art;
 Explain and differentiate roles of the
Human Resource Manager and his
function;
 Discuss the importance of the Human
Resource Manager in a business and
his major contribution toward the
development of the organization; and
 Explain the career development of
Human Resource Manager.
Growth and Development of
Personnel/Human Resource
Management in the Philippines
Personnel or human resource
management is a relatively new field in
the Philippines. It was only in the early
1950s that is gradually gained
acceptance and recognition in private
business and industry.
 For it to gain acceptance and
recognition, three conditions need to
exits:
1. Top management must be convinced
that personnel management is needed
in its business operations;
2. Qualified personnel administrators must
be available;
3.Personnel administrators must
demonstrate their capacity to contribute
to the company’s objectives and goals.
 Goal Objective
Meaning The purpose toward Something that one's
which an endeavor is efforts or actions are
directed. intended to attain or
accomplish; purpose;
target.
Example I want to achieve I want to complete
success in the field of this thesis on genetic
genetic research and research by the end
do what no one has of this month.
ever done.
3

Goal Objective

Action Generic action, or Specific action - the

better still, an objective supports
outcome towards attainment of the
which we strive. associated goal.
Measure Goals may not be Must be measurable
strictly measurable or and tangible.
tangible.
Time Longer term Mid to short term
frame
 Both terms imply the target that one's
efforts is desired to accomplish. Goals
are generically for an achievement or
accomplishment for which certain
efforts are put. Objectives are specific
targets within the general goal.
Objectives are time-related to achieve a
certain task.
A goal is defined as
The purpose toward which an
endeavor is directed.
The result or achievement toward
which effort is directed or aimed.
An objective has a similar definition
but is supposed to be a clear and
measurable target.
 Goals are broader than objectives in the
sense that goals are general intentions
and are not specific enough to be
measured. Objectives are narrow and are
set for certain tasks in particular.
Both have a certain time frame. Goals
usually have a longer time-frame than
objectives. Objectives are usually precise
targets set for a short term. Goals may be
set for a longer term but many objectives
may be set within that goal.
 Top management is too often unaware
of what personnel work is and what it can
do to promote effective management. As
a result, personnel management is usually
given only minor role in business affairs.
The lacks of qualified personnel
executives complicate the problem. Even
when management sees that good
personnel department is desirable, not
enough qualifies personnel management
practitioners are available to run it.
 With the supply – demand gap for
personnel administrators, many
“personnel specialist” without adequate
preparation have entered the field,
messing up some personnel programs
because of amateurism or plain lack of
understanding of what personnel work is.
 The Personnel Management
Association of the Philippines (PMAP) is
a nationwide organization of all
personnel managers and human
resource practitioners in the country
which was established to uphold the
profession to the fullest.
Among the activities of PMAP are:
1. Training and developing personnel
administrators through seminars,
lectures, workshops, meetings, national
conferences, and holding tripartite
conferences pertaining to personnel
management and industrial relations;
2. Participation in public hearings to
voice support of, or opposition to,
 proposed legislation affecting business
and industry.
3. Dissemination of information to
upgrade personnel management,
offering technical advice through its
special committees and library facilities;
and
4. Establishment of a public relations
program aimed at informing the public
about the nature of personnel work.
Organization and Human
Resources
The organization is made up of
people. The main goal of any
organization is to provide goods and
services effectively. It is people who
are linked in a formal structure and
managerial leadership. People are vital
to an effective personnel management
program.
 The development of an effective
organization hinges on the proper
selection, development, and utilization,
rewarding, and maintaining capable
people.
The organization resources are
stretched tightly to come up with the
demand of the global environment. The
allocation of these various resources
wisely is imperative.
 An organization must work together
to contribute efficiently towards the
goals and objectives set by
management. The effective utilization
of manpower can help add and create
value.
The Challenges of Human
Resources
1. The Challenge of the Global
Community
Organization are increasingly
finding out that to survive they must
compete with organizations not only
in the place of operation but the
global business community.
 Companies need to compete and
defend not only their local markets and
customers; they must broaden their
scope to encompass global markets.
2. The Stockholders Challenge
The key to success in today’s
business environment is to meet the
investor’s needs and those of the other
stakeholders.
 These stakeholders are the
customers, employees and the
community where the enterprise
operate. The companies are challenged
to reach financial objectives through
meeting customer’s and employees’
needs. Satisfied customers are assets
that will sustain company growth and
financial stability.
3. The Challenge for Productivity
The global is increasingly the
challenge to greater productivity.
Human Resource became more
“smarter workers” with the aid of
computer-aided machines, internets
and experts systems. They produce
highly quality products that are
demanded by the world market.
 The introduction of these new
technologies needs the reconfiguration
of the employees work design, training
program and reward system.
The links of high productivity are:
a. Human resources and capabilities
b. New technology and opportunities
c. Efficient work structure and company
policies allow employees and
technology to interact.
Contributing Growth Factors
Among the factors that have contributed to
the growth of personnel management in
the Philippines are the following:
1. Increasing complexity of business
operations
The post-war period saw the birth of big
corporations where the volume and variety
of operations and the size of the labor
force demanded specialization in
management.
 The personnel specialist was called
upon to formulate and carry out the
organization’s personnel policies and
programs.
2. Government regularizations and
labor laws promulgated in recent
years
In order to safeguard the worker’s
interests, especially those related to
wages, working conditions, job security
and health, the government deemed it
wise to enact a number of labor laws
and government regulations. Among
such laws are the Woman and Child
Labor Law, the Minimum Wage Law,
the Eight-hour Labor Law, the Industrial
Peace Act of 1953, and several other
labor and social laws which are
embodied in the Labor Code of the
Philippines.
3. Growth of Labor Unions
The passage of the Industrial Peace
Act of 1953, otherwise known as the
Magna Carta of Labor, triggered the
organization of labor unions and the
strengthening of the workers’ bargaining
power. Collective bargaining negotiations
and the administration of union contracts
may best be handle with the technical
resources of a personnel department.
4. Influx of new concepts in
management
The employee welfare concepts is not
new, but its nature has changed from
one of paternalism to the of employee’s
rights through practices that have
become institutionalized. Employee
benefits have become varied and far
raging, making their administration a
complex function.
Definition of Personnel/Human
Resource Management
Personnel or Human Resource
Management may be defined as the
function of management, concerned with
promoting and enhancing the
development of work effectiveness and
advancement of human resources in the
organization.
 These are accomplished through
proper planning, organizing, directing,
coordination and controlling of
activities related to procurement,
development, motivation and
compensation of employees to
achieve the goals of the enterprise.
Personnel/ Human Resource
Management : A Science and an Art
A science is a systematic
accumulation of facts, their analysis and
interpretation, and their use to arrive at
a satisfactory conclusion. Personnel
management is a science because it
involves the systematic gathering data
derived from surveys, statistics,
interviews, and observations.
 It is an applied science because it
utilizes scientific principles in analyzing
and interpreting data for application in
the management of the people at work.
Art is proficiency in the practical
application of knowledge acquired
through study, experience or
observation. After the required
knowledge are gathered and analyzed
and the possible solutions to a
problem are formulated,
a good executive needs to select the
best from among alternative solutions.
He needs to implement his choice at
the right time to achieve the desired
result and to foresee the probable
success or failure of his line of action,
and institute needed corrective
measures promptly.
 This is where personnel
management is an art, since it involves
the making of sounds decisions.
The major tools of the personnel
manager as a scientist and an artist are
his creative imagination and
intelligence. These become more keen
as he learn from practice and
experience, honing his intuition and
insight in handling the various
problems of employees in such a way
that there is order, harmony, balance
and proper timing. He also knows how
to simplify complex problems.
Personnel/Human Resource
Manager
The personnel or human resource
manager, who is a member of the top
executive group, is responsible for the
formulation of personnel policies and
programs which will serve as the
foundation for an efficient personnel
administration in a company for its goals
and objectives and allow the employees
to develop their individual career goals.
Companies Hire a Human
Resource Manager because he
can:
1. Help management achieve company
objectives and goals in the
management.
2. Assist top management in formulating
sound policies, programs and rules and
after approval, administer them fairly
and efficiently.
3. Assist line supervisor and managers in
providing employees with a satisfactory
work environment and in promoting
harmonious relationships with the
employees and the unions;
4. Make managers and supervisors aware of
their full responsibilities in the
management of human resources by
providing them with technical help needed
to handle employees problems;
5. Help train and develop the human
resources of the company in order to equip
them with the skills and knowledge
required in accomplishing their jobs
efficiently;
6. Help promote understanding and good
relationships by opening the lines of
communication between management and
employee thereby creating an atmosphere
where workers can be happy and proud to
belong to the organization;
7. Identify management problems that
can be resolved and opportunities that
can be realized through improve
effectiveness in personnel
management;
8. Assist managements and supervisors
in handling labor relations, problems,
utilizing his knowledge and competence
on labor laws, government regulations
and court decisions on labor relations;
9. Assist the company in promoting good
morale and motivation among its
human resources;
10. Assist in crisis management and
organizational development.
Problems and Difficulties of the
Personnel/ Human Resource
Manager
An appraisal of the role and function of
the personnel managers reveals four main
problems:
1. Common misconception about his role
and functions
There is a misconception that the
personnel manager is nothing more that a
simple clerk whose job is to keep employee
records and to give job applicants the
necessary forms to fill out.
Another misconception is that he is
the “power behind the throne” who has
full control of the workers and who can
do just about anything he wishes to
make them happy and to solve all
problems involving personnel.
2. Inadequate recognition by
management of the proper role of the
personnel manager in the organization
Some top management executives are
unwillingly to give the personnel manager
the corresponding authority and
responsibility for the job. There is
hesitance on the part of business
executives to let the personnel manager
participate in personnel policy-making
decisions.
 Due to inadequate recognition, some
personnel managers develop some
feeling of inferiority. In their desire to
elevate and maintain their status,
personnel men may shift from being
professional to mere conformists just to
get recognized. This indicates lack of
self-confidence. Offer prefer to leave the
company, thereby causing high turnover
in the profession.
3. In the area of labor relations
Some employers expect the
personnel manager to keep the labor
unions out or if there is one, to break or
bust it. The personnel manager who is a
conformist becomes unstable and
insecure in his position because of lack
of the necessary strength of personality
and knowledge of his job.
4. Jealousy of the other executives
regarding the personnel manager’s
duty and authority.
These problems can be avoided it top
management defines clearly the extent
and limits of authority and responsibility of
the personnel manager and enjoins the
line executives and supervisors to
cooperate with him.
The Traditional Personnel
Image
Historically, personnel managers and
their departments suffered from very low
perceived position due to the following
factors:
1. Disrespect for the position and those who
perform it;
2. The low position in the organization.
3. Lack of expertise in performing their
functions.
The Role of HR in the New
Millennium Organization
The new role that the HR department
performs includes out-placements, labor
law compliance, record keeping, testing,
compensation and some aspect of
benefits administration. The HR
department has to collaborate with other
company executives on employment
interviewing performance management,
 employee discipline and efforts to
improve quality and productivity.
The Role Includes the Following:
1. Recruitment and Employment
2. Interviewing, testing, recruiting and
temporary employment
3. Labor coordination
4. Training and Development
 Orientation of new and temporary
employees
 Performance management training
 Productivity enhancement

5. Wage and salary management

 Job evaluation
 Wage and salary survey
 Executive compensation
6. Benefits Administration
 Vacation and Sick leaves administration
 Insurance
 Stock plans
 Pension plan
 Retirement plan assistance programs

7. Employees Service and Relocation

 Bus service
 Canteens
 Athletics
 Housing and relocation

8. Community Relations
 Publication
 Community project and relation

9. Record management
 Employment record
 Information system
 Performance record
10. Health and Safety
 Training
 Safety inspection
 Dental and Medical Services
 Drug Testing

11. Strategic management

 Collaborative planning
 Out-sourcing manpower research
 Organizational planning
Roles of the Personnel/Human
Resource Manager
Considering his position in the
company and the scope of his function,
the personnel manager is expected to
play varied roles such:
1. Supervisor
He plans, organizes, directs, control
and coordinates the activities of his
department.
 He delegates some of his function to
his subordinates but check on them
through follow-up. He manages the work
of the employees in his department and
trains them in developing their skills for
efficiency.
2. Administrative Official
He or his staff conducts or directs
certain personnel activities as provided
or in the policies and programs
 entrusted to the department. He sees to
it that labor laws and government
regulations are properly compiled with.
He should also know how policy is made
and administered.
3. Adviser
He serves as counselor, guide and
confidant to management supervisors
and employees. To be competent, he
must keep himself informed about
 employee attitudes and behavior and be
abreast of trends in the industrial
relations field which may affect his
company.
4. Coordinator
He brings into action all activities,
regulates and combines diverse efforts
into a harmonious whole, and together
and harmonizes the work of various
personnel in his department and the
 related function in other department.
5. Negotiator
He is the representative of the
management in negotiating labor
contracts or to attend negotiations with
unions in an advisory capacity. As a
negotiator and administrator of the labor
contract, he must understand the nature,
significance and methods of collective
bargaining.
6. Educator
He conducts or administers company’s
training programs. He is very much
involved in the management of employee
development programs of his company.
7. Provider of Services
He provides services to all employees
and helps them obtain facilities with
government agencies like SSS, Medicare,
etc., which can make their employment
more satisfying.
8. Employee Counselor
His knowledge and training in human
relations and the behavioral sciences plus
his familiarity with company operations, put
him in the best position to counsel
employees.
9. Promoter of Community Relations
He must be well informed of the
activities and developments in the
environmental where the enterprise
 operates. He is called by the
management in helping the company
project favorable and positive image to
the community.
10. Public Relations Man
His functions require him to deal with
the general public, which includes the
employees, the unions, and the
community.
Personal Qualities of the
Personnel Manager
1. Can communicate effectively, both
orally and in writing
2. Possesses an above-average
intelligence
3. Enjoys working with people
4. Grasps the implication of a given
situation, understands individual
 attitudes and the problems of the
employees and of the employer
5. Aggressive, mature and capable of
giving sound advice that will be in the
best interest of both the employer and
the employee
6. Possesses the integrity, industry and
courage to earn the respect of the
employees and his employer
7. Possesses a pleasing personality
and personal warmth and should be
approachable
The Skills Needed by Today’s
HR Professionals
A higher degree of professionalism is
the demand of the new HR practitioners.
The includes the following:
1. A higher degree of knowledge on
management practices and processes.
He would need this to collaborate with
other line managers.
2. The HR practitioners is a service to other line
managers. He must possess a high degree of
human and public relations.

3. A great knowledge of human psychology and

social relations. It is a great asset to effective
coordination.

4. He is a consultant on labor relations. A

working knowledge of labor laws and
regulations is of great advantage.
5. As a management practitioner. A thorough
knowledge of management and its relations
to effective organization is a must for all HR
managers to plan out strategic approaches to
problems and their solutions.

6. A community relations officer. The HR

managers develops greater linkage with
government and other stake holders. He has
to coordinate with schools and other agencies
for their manpower pooling and other services
Rewards and Benefits for the
Personnel Manager
The Personnel or Human Resource
Manager ‘s job is demanding and stressful
job. However, it is financially rewarding and
stable. Big companies offer competitive
salaries and attractive benefits or what we
call the “perks” of the job, aside from the
usual benefits being enjoyed by most
employees, which are mandated by the
Labor Law such as the SSS, PAGIBIG, Phil
health, 13th month pay and the like.
Some benefits being offered to
Personnel Manager are the following:
1. Car Plan or Free use of Company
Transportations – this is offered so that he
can attend all his meetings on time and be
able to reach all assigned destinations
given to him.

2. Unlimited/Limited use of gasoline and free

maintenance check-up.
3. Company cellular phone – This is given
to ensure that the manager can be
contacted anytime especially by top
management so as to have a free flow of
communication.

4. Representation Allowance / Meal

Allowance – A budget is allotted for the
managers in order to maintain a good
image not only for the company but also
the manager himself.
5. Education Scholarship / Attending Conventions
and Seminars – The managers are offered
scholarships and are given the opportunity to
attend conventions, seminars and meetings for
them to be updated with the latest trends in their
department, learn thorough knowledge, meet oher
colleagues, and gain experience that will enable
them to develop their self-esteem and confidence.
Career Advancement / Other
Professionals Options for the Personnel
Managers
The Personnel Managers, known as
the “jack of all trades”, has the opportunity
for other career options such as the
following:
1. College Professors – He can teach
business subjects such as marketing.
Finance, human resources and
development .
2. Vice President of the Company – this is due
to promotion after showing and performing
excellently.

3. Chief Executive Officer

4. Politician

5. Entrepreneur

6. Businessman
The Career Path to HR
Management
New college graduates who are
interested in developing their career in
the area of human resources must start
in the lower level of the HR functions.
They need exposure in the different
fields or areas of specialized HR
function.
 Entry Level
Personnel assistant

Supervisory Level

Managerial Level
1. Entry Level – A new college graduate may
start as personnel assistant in a medium-
size organization. The following skill are
necessary:
a. Assisting in interviewing applicants;
b. Giving tests and scoring test result in
personality and other skill test;
c. Assisting in employee orientation and
training programs;
d. Record keeping.
2. Supervisory Level – The promotions to
a higher level depends on the ability and
capability of the Personnel Assistant to
acquire the skills necessary in the HR
functions. The traits and skills are:
a. Skills in writing job descriptions, job
analysis, and job evaluations.
b. Knowledge of employee benefit
programs related to vacation and sick
leaves, pensions and other mutual
benefits.
c. He must have acquired the skills in
interviewing applicants and counselling
employees.
d. Skills in testing and interpreting test
result and making recommendation as
to the fitness of applicants.
e. Job evaluation and wage
administration skills and relating pay to
the differences in job requirements
f. Skills in determining training needs and
develop training modules and conducting
he same.
g. Skills in basic research related to
manpower planning.
3. The Managerial Level – At this level the
HR practitioner has acquired the above
skills. However, at this point, the
concentration of the HR is the effective
management of the different areas of
personnel functions.
 The added personnel activities include in
the following:
a. Leadership and Conceptual Ideas
Visioning
Here the HR manager is part of the
strategic management team that
participates in organization strategies
planning for improved products and
services as they relate to employees’
productivity and is relation to technology
enhancement programs.
b. Analytical of the facts as basis for
Decision Making
Along this area, the HR manager is saddled
with the analysis of the employee’s the
development program and finding alternative
solutions to improve employee’s performance
level as it relates to global competitiveness.
His main concern is how human resource
assets could be turned into productive
investments through a proper compensation
and benefits program
c. Compliance Administration and
Control
The changing social and work force
environment needs compliance with the
social and legal norms in the work place.
This includes labor laws, environmental
regulations, safety and security
employee services including recreation
and other manpower demands for a
better working environment.
d. Interpersonal Team Work
The introduction of new technology in
the work place brought about varied HR
problems. An employee has to undergo
training and development of new skills
and work values. Global
competitiveness, being the essence of
the new mandated for industries, needs
employees who are dedicated and work-
oriented.
 Teamwork cannot be developed in a
day or two. Teambuilding and
organizational interventions are needed
to develop greater teamwork.
Teamwork adds value to more efficient
manpower.
The following are the major differences between
Personnel Management and Human Resource
Management:
The part of management that deals with the workforce
within the enterprise is known as Personnel
Management. The branch of management,
which focuses on the best possible use of the
enterprise’s manpower is known as Human Resource
Management.
 Personnel Management treats workers as tools
or machines whereas Human Resource
Management treats it as an important asset of
the organization.
 Human Resource Management is the advanced
version of Personnel Management.
 Decision Making is slow in Personnel
Management, but the same is comparatively fast
in Human Resource Management.
 Decision Making is slow in Personnel
Management, but the same is comparatively fast
in Human Resource Management.
 In Personnel Management there is a piecemeal
distribution of initiatives. However, integrated
distribution of initiatives is there in Human
Resource Management.
 In Personnel Management, the basis of job design
is the division of work while, in the case of Human
Resource Management, employees are divided
into groups or teams for performing any task.
 In PM, the negotiations are based on collective
bargaining with the union leader. Conversely, in HRM,
there is no need for collective bargaining as individual
contracts exist with each employee.
 In PM, the pay is based on job evaluation. Unlike HRM,
where the basis of pay is performance evaluation.
 Personnel management primarily focuses on ordinary
activities, such as employee hiring, remunerating,
training, and harmony. On the contrary, human resource
management focuses on treating employees as valued
assets, which are to be valued, used and preserved.
Approach Traditional Modern

Treatment of Machines or Tools Asset

manpower

Type of function Routine function Strategic function

Basis of Pay Job Evaluation Performance

Evaluation

Management Role Transactional Transformational

Communication Indirect Direct

Labor Management Collective Bargaining Individual Contracts

Contracts

Initiatives Piecemeal Integrated

Management Actions Procedure Business needs

Decision Making Slow Fast

Job Design Division of Labor Groups/Teams

Focus Primarily on mundane Treat manpower of the

activities like employee organization as valued
hiring, remunerating, assets, to be valued,
training, and harmony. used and preserved.