Acquisition of Human Resources

Introduction
This focuses on one of the most crucial activities of management
recruitment. As you will see, it is a fairly misunderstood concept by
personnel management practitioners. Also as you will be the
beginning of the processes of procuring staff for organization, it is
very important and deserves maximum attention of personnel
specialists in organizations.
 Recruitment
1) is the process of attracting the best individuals to join in the
company on a timely basis in sufficient numbers and meeting
the qualification requirement to apply for the job in the
organization.
2) Is a strategic process that connects candidates who need what
you have to offer and who possess the skills and aptitude,
morale, motivation, and retention to accomplish your goals and
objectives.
 Sources of Candidates to Fill the Vacant
Position
 Internal Source – qualified candidates from the
company and within the ranks of its present employees
that has advantage of heightening morale of the other
employees and encouraging them to perform well.
External Source – hiring from outside is inevitable a
management option if no one within among the next in
rank of employees can perform the job or deliver the
required output
 Adopting Recruitment Policy
 Hire the right person
 Conduct a potential candidate for the needed position
 Recruit staff who are compatible with the management style and culture of the
company
 Handle applications with due, diligence, speed and courtesy
 Hire from the internal and develop to qualify them for the position
 Make sure that no exaggerated claims made in the announcement or advertisement
 Place responsible individuals in position and train them to enhance their career and
personal development
 Internal Recruitment
ADVANTAGES
 It is the cheaper and faster to fill up internal vacant position
 Savings can be made since individuals has knowledgeable on
how to operates in a shorter period of time.
 It boosts employee morale to work harder within the
organization
 It easily points out insider strength and weaknesses in order to
assess individual potentials
 Internal employees easily adopt the culture and keeps
proprietary knowledge inside the organization.
DISADVANTAGES
 The management will have to replace the person who has
been promoted, creating a current effect of job opening occur
 Promoting from within may disappointed some inside the
company and lowering their morale not selected in the
position.
 Deprives the company from getting new individuals who has
new ways of doing things
 Creates negative internal competition for the positions
 An insider may be less likely to make criticisms to get
working effectively.
 External Recruitment
ADVANTAGES
 Wider range of talents to bring new opportunity of
experience and ideas
 Bring an opportunity to acquire new skills and competencies
not found in the organization
 Enable the organization to hire people with knowledge and
competencies
DISADVANTAGES
 More costly to hire somebody from outside
 The outsider does not fit into organization culture
 Some risks failure and could be less effective in actual
job than what appears on paper application and interview
Takes longer time to get acquainted to the job and to
the organization culture
Ma demoralized employees who did not get in the
promotion that adversely affect their commitment
 Stages of Recruitment
1. Determine whether a vacancy exists.
2. Prepare Job Description and Person Identification
3. Advertisement
4. Short-listing
5. Arrange Interviews
6. Conduct Interviews
7. Reference and Background Investigation
8. Decision/Offer to Hire
9. Appointment Action
 Recruitment Policies
1. Advertise all vacancies.
2. Reply to every job applicant with the minimum of delay.
3. Aim to inform potential recruits in good faith about the basic details
and job conditions of every job advertised.
4. Aim to process all applications with efficiency and courtesy.
5. Seek candidates on the basis of their qualification for the vacancy
concerned.
6. Aim to ensure that every person invited for interview will be given a
fair and thorough hearing.
The organization will not;
1. Discriminate unfairly against potential applicants on grounds of
sex, race, religion or physical disability.
2. Discriminate unfairly against applicants with a criminal record.
3. Knowingly make any false or exaggerated claims in its recruitment
for job advertisements. It has been given such recognition for
reason that organizations realize that first rate staff are a critical
asset and that first rate applicants are difficult to attract even in
times of high rate of unemployment.
Types of Employee
 PROBATIONARY - a probationary employee
can be terminated if does not pass the reasonable
standard performance for a period of six (6)
months and after that period is deemed a
permanent or regular employee.
 REGULAR OR PERMANENT EMPLOYEE
– an employee who passed the probationary
period and is performing a regular activity in the
business of the company covered in the regular
company staffing system.
 CONTRACTUAL EMPLOYEE – employee is
hired for a fixed period or specific project of the
company, the completion of which is specifically
explained to concerned employee and it should not be
six months or else they may be converted to regular
employees. Usually contractual employees should be
hire through an employment agency to avoid regular
employment.
 CASUAL EMPLOYEE – an employee hired for a
particular work or service that is seasonal in nature
and the nature is temporary according to the volume of
work.
 APPRENTICESHIP – most of the company hire
individual comes from the on-the-job training that
required to students to graduate for a certain
degree. The company hired the students rendered
training whether for regular or probationary due to
the required skills for a particular type of work
that seen in the apprenticeship period.
TRAINING AND
DEVELOPMENT
Introduction
Training and Development are increasingly
recognized now as the most important
organizational activity that requires new skills and
knowledge to keep employees updated and
effective. Training is very important personnel
function to which every organization must pay
special attention.
TRAINING
 is any learning activity
which is directed
towards acquisition of
specific knowledge and
skills required to
perform a job.
 a process where people
acquire capabilities to
aid I the achievement or
organizational goals.
DEVELOPMENT
Focuses on the
preparation needed for
future jobs that individual
may potentially hold in
the future.
 Refers to formal
education, job
experiences, relationships
and assessments of
personality and abilities
that employees prepare
for the future.
 TRAINING AND DEVELOPMENT
 Refers to the organized learning activities in the
organization to improve performance and or
personal growth for the purpose of improving the
job in the organization.
 Is a continuing process to combat obsolescence
and increase productivity.
Benefits from Employee Training and
Development
 Increased job satisfaction and morale
 Increase employee motivation
 Increase effectiveness in the process resulting financial gains
 Increase capacity to adopt to new technologies and methods
 Increased innovation in strategies and products
 Reduce employee turnover
 Enhanced company image
 Improve risk management and ethical behavior in the business
FOUR STAGE TRAINING
CYCLE
Training Needs Analysis
- provide a systematic assessment of the
organization strategic goals, special skill
and competencies required of the job and
what they employee training they need
Training Needs Analysis Process
• Organizational Analysis - ask what are strategies/goals link the specific source
of information and operational measures that vary from organizational level needs
analysis which includes grievance, accident records, observation, exit interview,
customer's complains equipment utilization and breakdown, material wastage,
scraps and quality control data.
• Task Analysis - is a job description and the job specifications provide to
employees on the expected performance and the skill necessary to accomplished
the required work. When there is a changes in the work environment due to the
introduction of new technology or machinery require changes in the task
requirements of the position.
• Individual/ Person Analysis- the use of performance appraisal is the most
common approach what necessary training needed to correct the weaknesses of the
person that may assume a higher position in the future.
Planning the Training
- in training plan considers the key decisions, task and resources needed
to strategy in the analysis of the program, development interventions.
The following components plan should follow the training goal
objectives, methods/activities, facilities/resource person and budget.
Kinds of training methods to be used such as

 On-the-job training - takes in the form of apprenticeship,

internship practicum, mentoring, coaching, simulation,
distance learning, e-learning or web-based learning and other
modalities.
Implementing the Training
- training program into effect according to definitive
plan or procedure associated activities including
clarifying training materials, administering pre-tests and
pro-tests, and conducting the final evaluation that can
be segregated into two (2) segments:
• Practical Administrative Arrangements - before the
training start a checklist prepared such as staff support, course
content, equipment and facilities.
• Carrying out of the Training - at the beginning of the
training program, the trainer review the objectives from the
participants expectations and give an overview of the program
and ground rules that include topics to be covered, kinds of
training activities, time schedules, setting group norms,
arrangements, flow of the programs and how questions will be
encouraged and responded.
Evaluating the Training
- Training process does not end when training is completed. Its
effectiveness must be evaluated against the outcomes relative
to the objectives of the training program, soliciting feedback
from the participants on what they think about at the end of
training to the program, facilities and trainers that need to
improve the program for futures learners. AFFECTIVE
OUTCOMES/RESULT OF EVALUATED TRAINING
• Learning the Occurred - trainees may be given a
paper/pencil, skill and abilities test to determine if they have
mastered knowledge and information presented to measure
trainee performance.
• Behavior Changes - assessing behavior of the trainees is
important whether they applied what they learned in the
training.
• Impact on Corporate Objectives - assessing and measure
the result of training by the management, productivity increase
and lower accident rates or significant decrease in quality
defects.
Changes In Personal Status
(TRANSFER, PROMOTION AND DEMOTION)

INTRODUCTION
Upon entering to organization the choice and selection is
critical who hire people bound to changes the employment
status, belonging to one groups that prohibits its members
from joining unions. At this stage of employment, the
employee starts as temporary then moves to probationary
upon meeting the requirements of the position where
assigned. Moves up into ladder of the permanency, transfer,
stays longer in the organization.
PROMOTION

• Is the movement of an employee from lower to higher level

in the organization ladder involving more duties and
responsibilities, prepare for new assignments usually carries
with higher status and salaries will be given recognition by
the management. The simplest and most time-honored basis
for promotion is the length of service of the employee.
RATIONALE FOR EMPLOYEE PROMOTION

 Recognition and reward or good performance- employees

perform well need to be awarded when opportunities for a
higher vacant positions available and also serves as
motivation factor fo employees loyal to the company.
 Incentives for employees- employees acquire new
knowledge or get advance training and education to improve
academically and professionally be given a chance by the
managements for new challenges.
• Employees who are promoted usually know job well rather
than get new employees outside the organization that needs
further training and orientation that usually is the subject the
subject of demoralization among the ranks employees.
• Boost employee morale and develop greater loyalty in the
organization is the important means human relations with
the as there is no better recognition of employee’s
contribution than promotion.
FACTORS TO BE CONSIDERED IN PROMOTION

• Seniority- the company must be equal and considered the

first to be hired in giving priority for promotion which develop
and boost morale among the rank-in file employees who are
also loyal and dedicated for the job.
• Careful Analysis- an individual has to be subjected to a series
of tests, interviews,evaluation assesment, competent with
leadership qualities and human relation capabilities in order to
be given weight in promotion.
• Performance and Attendance- an individual who is dedicated
and diligence in job is seldom absent from work
TRANSFER
You will recall that when we discussed promotion above, we
said it was an advancement from lower to higher position with
increase in compensation. A transfer involves the movement
of the employee from one job to another position of the same
position, rank level as reassignment is a change of work, not
involving increased responsibilities within the another
organization unit. It involves a change of duties but only a
change from the jurisdiction of one executive to that of
another.
There are many reasons/policies that can account for transfer

• The person who initiate the transfer.

• The authorized personnel who will approved the transfer.
• The reason why an employee has to be transferred
• The status of the employee upon the transfer.
KINDS OF EMPLOYEE TRANSFER

• Temporary Transfer- this is done for the employee to

substitute for an absent employee to learn other duties and
responsibilites as preparation for promotion. Transfer is
initiated by the management in recognition of the other skills
and abilities of the employee to maximize the potentials
contribution to the organization.
• Permanent Transfer- made to fill vacant position in another
unit or department requiring the skill and capabilities of
employee being transferred may done to avoid layoff of the
concern employee to pending activities/output in the unit.
Transfer are useful tools for operational needs of the
company due to the following:
1. Meet the company needs during peak seasons – an
employee may be transferred as necessity of
operational demand to avoid hiring of additional
personnel when other departments are not loaded
with other activities.

2. Protect the health and safety of the employee – an

employee is expose to hazard to a unit where is safer.
Transfer are useful tools for operational needs of the
company due to the following:
3. Meet expansion needs – an employee may be
transferred where his services are needed and his skills
meet the requirement of the job.

4. Correct an error in the hiring of the employee – an

employee hired erroneously may be made to correct the
placement through transfer.
DEMOTION
Is the movement of employee from his
present job to a lower grade / rating and
salary. It is the most difficult function of
the human resource that creates tension
and anxiety.
Conditions under demotion
(1)The company or firms to trim down current manpower by
reducing budget retiring some employees and assigning
loyal employees to a lower rank without reduction pay.

(2)Inability of the employee to meet the job requirement for

the position hired, this happens when hiring system did not
follow the procedural guidelines due to sometimes the
employee hire has a connections and the employee has to
be demoted to position fits his capability.
Conditions under demotion
(3) Failure of the employee to meet technical changes in the
job that requires familiarity to new skills and machineries not
prepared for the job.

(4) Demotion is resorted when employee commits a violation

on the rules and regulations and the penalty for the offense
may impose.
SEPARATION AND TERMINATION
The TERMINATION of employment or the
relationship between employer and employee is
called SEPARATION, and such termination of
relationship may be caused by RESIGNATION of
the employee and the action taken by the
management to terminate the relationship is called
layoff or discharge.
Causes of Resignation
(1) Better job opportunity in other companies, seeks
greener pasture outside the organization or open
avenues as his luck outside the country.

(2) An employee seeks higher wages, better working

conditions, good benefits, retirement plans and
other incentives which is more adventurous for the
future.
Causes of Resignation
(3) An employee resigns due to misunderstanding from
personal relationship and official work activities with
immediate superior or subordinates in the department.

(4) An employee resigns from the employment due to

the distance from work to change of residence, transport
cost, time of travel and more opportunities outside the
city or metropolis.
Causes of Resignation
(5) An employee resigns from employment due to
family relations, change of marital status and
family quality time schedule of shifting.

(6) An employee resigns from work due to

physical and health conditions or get tires of being
employed.
Procedure in Handling Separation of
Employment

(1) Employee Clearance

(2) Conduct Exit Interview

 LAY-OFF AND SUSPENSION
In time of business difficulty, slow down and shut
down in operation and other factors that would need the
termination or lay-off may be initiated or adopt by the
management to permanent or temporary employee for a
period of time causes y lack of materials or orders that
would require for the services of the employee.
 PROCEDURE FOR LAY-OFF
1. Determine the number of employee that will be affected by total permanent
and temporary to lay-off.
2. Determine the amount involve according to the law of Collective
Negotiation Agreement (CNA) will spend in paying the separation of an
employee.
3. Determine the skills and jog requirements that would still be needed to
maintain viability and sustainability of the company.
4. Determine all the potentials, skills knowledge and lengths of services of
the employees before making the first-come-last-out policy in the
separation of employee to keep the company submerge during critical
times.
 HUMAN RESOURCE TURN OVER
It is the intention of management to keep it’s loyal and good
workers in giving the following benefits:
1. Retirement plans intent to keep employees until they reach
their retirement age.
2. Longevity pay is paid to goof workers who stay loyal to
serve the organization.
3. Salary increases given to employee promoted to adjust
their economic needs.
 REWARD AND SALARY
ADMINISTRATION
• One of the important feature of human resource management is the
payment of salaries and wages to employees receives in exchange
for the services he/she renders, employer pays employee reward.
• The payment to employees determines their position, rank level
and status which commensurate with their efforts and contributions
to the company’s profitability index.
• The main purpose of formal salary and wages is to have a
systematic method of payment to ensure employees receives fair
salary and wages for the work they perform.
 WAGES/SALARY
• The salaries and wages (money) which an employer pays an
employer for the services render and which is meant to keep him
rendering such services for an extended period of time.
• The salaries and wages form the most single obligation an
employer owes to employees and this usually is the biggest item
of an organization’s expenditure. Typically, wages and salaries
make up about 60% of the total costs of running a major business.
• This salaries and wages will not be complete if these two concepts
are not defined and distinguished one from the other.
The most common system by which non managerial
employees compensated is wages, which are based on
time increments or number of units produced. Non
managerial employees traditionally have been paid at an
hourly or daily rate, although some are now being paid
by weekly or monthly. Employees who are on a weekly
or longer schedule paid salaries.
PURPOSES OF EMPLOYEE WAGES AND
SALARY PROGRAMS, NAMELY:
1. To attract capable employees to the organization;
2. To motivate them towards superior performance;
3. To retain their services over an attended period of
time;
4. To reward employees for effort, loyalty, experience
an achievement.
 STEPS IN DETERMINING THE
MINIMUM LIVING WAGE
1. There is the need to determine the general
living standard to be provided.
2. There is need for a study of the cost-of-living
budgets as determining the amount necessary to
maintain that standard.
 Various standards to be considered:
 Poverty level
 Minimum subsistence level
 Health and decency level
 Comfort level
 Cultural level
• Government is constrained to pay a minimum wage which is
actually higher than what private industry pays, the latter not
obligated the way government is.

• On the other hand, salaries at the top level of the services are
higher in private industry than in government.

• Those at the higher steps in the government service have some

noble satisfaction that keeps them on the job despite
correspondingly lower salaries.
• Government salaries are fixed by government action especially,
legislative action.

• Salaries in private industry do not experience such spontaneity but

rather get supported by union power which is virtually absent in
the service of government.
THEORIES OF WAGES
 (1) Classical Wage Theory
• is based on the fundamental concept that labor is a commodity
and we have to pay the price according to supply and demand.
The greater the supply, the lower the price and the greater the
demand the higher the price.

Demand – refers to the quantity of an item that buyers are able

and willing to buy at an alternative price.
 (2) Just Wage Theory
• The just wage theory of St. Thomas Aquinas refer to
wage permits the individual to live in the organization
based on the status for a decent living in the social
organization which responds to the basic requirements
for subsistence living.
 (3) Wage Fund Theory
• This theory was developed by John Stuart Mill and his followers
based on the Malthusians theory of population and the law of
diminishing returns, holds that the working capital of the nation
provides a fund from which wages can be paid, fund should be
divided by all workers proportionately.

• In this theory, fund should be elastic for all factors of production

such as capita, maintenance, and labor.
 (4) Bargaining Theory
• This theory proposes that labor is a commodity like
anything that can be bought at a price by the user, it
carries a price that is determined by the bargaining
process between the buyer and the seller.

• The sellers of labor are the workers and the buyer are the
users that utilizes their services.
 (5) Marginal Productivity Theory
• It involves the wages in modern industry where supply of labor in
economy depends on the total number of individuals who wants
to work and are available to work.
• This refers to the transfer from one company to another due to
wages differences, better opportunities for advancement, more
benefits, and better working environment.
• Any increase in manpower tends to decrease the value of the
marginal product as the number of work increases.
 (6) Purchasing Power Theory
• The purchasing power creates the connection between
wages and the level of economic movement where the
economic growth depends on the savings generated that
more income the individual gets the bigger purchasing
power for the workers that increases consumption of
goods and services and generates employment
opportunities.
 (7) Labor Theory of Value
• Karl Marx philosophical theory gives credibility to the value
of labor in which labor is the sources of all products there is
no goods for human consumption.

• In every good produced of the workers there must get a

greater sharing of profit for the labor they create to economic
growth.
 (8) Standard of Living Theory
• In this theory, wages should be based on the cost of
living of the family, economic needs for their life by
providing the basic necessities in order to improve
their living conditions due to the forces of economic
activity.
 PURPOSE OF UNION
1. To study, promote and improve conditions affecting the union;
2. To submit opinions on matters directly or indirectly affecting the
union;
3. To cooperate with committee bodies on matters relating union;
4. To unite all trade unions into one organized body;
5. To deal with general labor problems affecting workers;
6. To protect the status and rights of union;
7. To help with the proper organization of trade unions.
 STRIKE
 Is a cessation from work by workers for the purpose of forcing their
employers to assent their demands.

For a strike to be moral, the following conditions must be present:

1. There is a sufficient and just reason;
2. There is intended good results must be proportionate to the evil effects;
3. There is lawful to follow in order to be resorted to means of conciliation,
good results must be weighed against evil effects to ruled out and threats,
coercion, or violence should never be employed by either capital or labor.
 BASIC DUTIES OF WORKERS
1. Work honestly and comply with all requirements;
2. Never injure capital, nor steal from the employers;
3. Never outrage the person of the employer;
4. Never employ deceit nor violence in presenting a cause;
5. Never associate with the men of evil principles.
 BASIC DUTIES OF EMPLOYERS
1. Respect the human dignity of the workers;
2. Appreciate their work;
3. Never treat them as slaves for making money;
4. Never assign them tasks beyond their strength, do not employ them
in work not suited to their sex;
5. Give them commensurate wages;
6. Provide for their health and social recreation;
7. Provide them time to practice their religion;