HRM : HUMAN RESOURCE MANAGEMENT

HRM
Human people, persons, labor, human capital, human beings Resource slaves, components, cogs in a machine, assets, contributors, value adders, partners Management order, system, structure, discipline, control, synergies

What is it really?
Its the managing, leading and development of human resources so that they are more able (efficiently and effectively) to contribute to the goals of an enterprise A profession, discipline, vocation, and apostolate

What are its key roles?

Alignment of individual and organizational goals The Management representative to ensure Management that employees work well for the enterprisecontribute to realization of goals The Champion of the masses to assure employees that their needs and wants are recognized and addressed Strategic Partner

Nature of Human Resource Management

Human Resource Management The design of formal systems in an organization to ensure effective and efficient use of human talent to accomplish organizational goals. All management decisions and practices that directly affect or influence people planning, acquiring (recruiting and selecting), retaining (controlling turnover), developing or training, performance appraisal, compensation, safety and health, family and work life. HRM has wide range of functions and areas of responsibility.

Nature of Human Resource Management

Who Is an HR Manager? Every operating manager is, in essence, an HR manager. HR Generalist A person with responsibility for performing a variety of HR activities. Knowledgeable about all areas of HRM. May have served in several specialty roles. Administers and coordinates HR programs. High level management position. HR Specialist A person with in-depth knowledge and expertise in a limited area of HR. Usually entry-level position (e.g., interviewer, compensation analysis, benefits coordinator, job analyst, and trainer).

Typical Division of HR Responsibilities (Staff vs. Line positions example)

Managers HR Unit Advise HR of job Develops legal, effective openings interviewing techniques Decide whether to do Trains managers in own final interviewing conducting selection Receive interview interviews training from HR unit Conducts interviews and Do final interviewing and testing hiring where appropriate Sends top three Review reference applicants to managers information for final review Provide feedback to HR Checks references unit on hiring/rejection Does final interviewing decisions and hiring for certain job classifications
Figure 11

HR Activities
HR Planning and Analysis Equal Employment Opportunity Staffing HR Development/Training Compensation and Benefits Health, Safety, and Security Employee and Labor/Management Relations Community relations

Responsibilities/functions of HR
Key responsibilities: ADMM or Attract, Develop, Motivate, Maintain Recruitment and selection Training and development Career-pathing and succession planning Bench development Compensation: salaries and benefits Performance management system Labor and employee relations Community relations/development Corporate communications Media relations General administrative services

Requirements of an effective HR Org:

Service orientation/Respect for people Awareness and sensitivity Constitutional/Human rights Labor Code of the Philippines Quality concepts/certifications Management and leadership skills Social and interpersonal skills Business acumen: Goals and processes

HR organization
HR/IR Head

Recruitment

Compensation

Traing/Devt.

LRels/ERels ComRel

Media Rels

Admin/Gen Services

documentation

Salaries/benefits

Corp. Commo

deployment

Perf. Mgmt.

Staff/Bench Devt.

Stds/process rev.

Quality Progs

Qualities of HR Managers
Responsibilities Advice and counsel Service Policy formulation and implementation Employee advocacy Competencies Business mastery HR mastery Change mastery Personal credibility

HRs 4 Roles & Key Accountabilities

Future/Strategic Focus
Strategic Partner
HR as Business Partner Culture and Image Organizational Design Staffing Training & Development

Change Agent

Performance Measurement
Succession Planning

Processes

Strategic HR Planning

People

Compensation Benefits Compliance

Employee Relations

Voice of Employee Survey Action Labor Plan Relations

HR Information Systems

Administrative Expert

Environment, Health, Safety & Security

Employee Relations Expert

Day-to-Day Operational Focus

Managing Human Resources

Manpower Mgt. Headcount management Recruitment strategies Sources of labor supply Selection process & tools Retention strategies & plans Staff deployment Staff orientation Employee Relations Mgt. Benefits administration Code of conduct & ethics Employee discipline Employee communications Staff social, sports & recreation Community services & relations

Performance Mgt. (HRD) Staff training & development Succession planning Career planning Coaching & counseling Appraisal review/ranking Organization development Leadership development

Human Resource Admin. Records & information mgt. Personnel research HR policy review HR process improvements HR performance stds & audit Legal compliance Document control

Compensation Mgt. TotalComp philosophy & design TotalComp planning & admin. Incentive plans (?) Profit-sharing scheme (CARL) Reward & recognition program Expatriate pay management

Culture/Values Mgt. Corporate vision Corporate mission Culture building Teambuilding Habits building

Environment, Health Safety &Assets Mgt. Environment mgt. Employee wellness Employee health services Loss prevention Asset management Safety mgt.

Recruitment/Selection

We will only be as good as the people we hire

PERSONAL DATA SHEET FORM

LAPANDAY AGRICULTURAL & DEVELOPMENT CORPORATION LEAD EXPORT & AGRO-DEVELOPMENT CORPORATION MALALAG VENTURES PLANTATION, INCORPORATED TORTUGA VALLEY PLANTATION, INCORPORATED GLOBAL FRUITS CORPORATION LAPANDAY DIVERSIFIED PRODUCTS CORPORATION LAPANDAY GRAND VENTURES CORPORATION

CHECKLIST OF DOCUMENTS SUBMITTED:

ID

Application letter I.D. Photo Bio-data/Resume

Transcript of Records Others: pls. specify ___________________ ___________________

PHOTO

P E R SO N A L

DA TA

SH E E T

Position Applied for: ___________________________________________ Source of Vacancy Information: ____________________________

Date : ____________________ Company: ________________

PERSONAL DATA
Name: __________________________________________________________ Nick Name: _________________________ Address: ____________________________________________________________________________________________ Tel. No. _____________________________ Age: _________________ Sex: ___________________ Height: ___________________ Weight: _____________________ Date of Birth: ___________________________________ Place of Birth: _________________________________________ Civil Status: ___________________ Citizenship: _____________________ Religion: ______________________________ Hobbies/Talents/Sports: _______________________________________________________________________________ SSS No. ____________________________________________ TIN No.: ________________________________________

FAMILY DATA
Name of Father: _________________________________________ Date of Birth: ________________________________ Address: _______________________________________________ Occupation: _________________________________ Name of Mother: _________________________________________ Date of Birth: _______________________________ Address: _______________________________________________ Occupation: _________________________________ Name of Spouse:_________________________________________ Date of Birth: _______________________________ Address: _______________________________________________ Occupation: _________________________________ If married , Name of Children If single , Name of Brothers/Sisters NAMES RELATION DATE OF BIRTH ADDRESS

EDUCATIONAL ATTAINMENT
EDUCATIONAL LEVEL
ELEMENTARY HIGH SCHOOL COLLEGE GRADUATE STUDIES VOCATIONAL

SCHOOL ATTENDED

LOCATION

DATE ATTENDED

DEGREE/TITLE OBTAINED

HONORS/ AWARDS

SEMINARS/TRAININGS ATTENDED
TITLE DATE VENUE

EMPLOYMENT HISTORY
Give only the latest five (5) employers you have worked with:

DATE FR TO

EMPLOYER'S NAME, ADDRESS AND TELEPHONE NUMBER

JOB TITLE

SALARY

REASON FOR LEAVING

REFERENCES
Give the names and address of three (3) persons not related to you, whom we may ask to comment on your technical and personal qualifications and character:

NAME

OCCUPATION

ADDRESS & TELEPHONE NUMBER

Give name(s) of friend(s)/relative(s) working with the Company at present:

NAME

POSITION

DEPARTMENT

RELATION

IN CASE OF EMERGENCY, PLEASE NOTIFY:

NAME: _______________________________________________________ TEL. NO.:___________________________ ADDRESS: _____________________________________________________ RELATION: _______________________ I certify that all facts and information mentioned in this application are true and correct as far as my knowledge is concerned. That I fully understand that misrepresentation on my part will be a valid ground for rejection. And that my filling up of this application does not bind LAPANDAY AGRICULTURAL & DEV'T. CORP- LEAD EXPORT CORP.MALALAG/TORTUGA GROUP-GLOBAL FRUITS CORPORATION of any obligations.
jgd. 100798 fn:application from /xls .

_________________________ Signature of Applicant

EXAMSTESTSEXAMSTESTS
IPI APTITUDE SERIES - battery of tests which contains two category, Clerical Tests and Factory/Mechanical Tests Clerical Tests OFFICE TERMS - ability to comprehend & understand information of office or business nature, is also a measure of intelligence JUDGEMENT - aptitude to solve difficult problems, think logically, foresee and plan, deal with abstract relations (like Office Terms is also a measure of intelligence) PARTS - aptitude to visualize sizes, shapes and spatial relations of objects in two or three dimensions NUMBERS - aptitude to work rapidly & accurately with numbers, files, codes, symbols & standard procedures FLUENCY - ability to think of words rapidly and easily MEMORY - aptitude to recognize and recall associations such as names, faces and numbers, prices and other specific details PERCEPTION - aptitude to scan & locate detail in words & numbers rapidly & to recognize likenesses & differences quickly

Factory/Mechanical Tests DIMENSION - space relations aptitude, most difficult of the space relations tests DEXTERITY - aptitude for fine & gross muscle control, dexterity and eye-hand co-ordination

PRE EMPLOYMENT REQUIREMENTS

LAPANDAY AGRI. & DEV'T. CORPORATION LEAD EXPORT CORPORATION MALALAG-TORTUGA GROUP GLOBAL FRUITS CORPORATION PRE-EMPLOYMENT REQUIREMENTS Name: Position: ____________________________________ _________________ Company: _________

You are hereby requested by the HRM Section to submit the following documents for your 201 file on ___________________. ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Barangay Clearance _______ Police/Fiscal Clearance _______ Birth Certificate _______ Marriage Contract _______ Birth Cert. of Children ( ) _______ SSS E-1 or SSS E-4 _______ Tax Identification No. (TIN) _______ TRU from previous employer _______ ID Photo (2) 2x2 & (2) 1x1 _______ Laboratory Test: CHDC Hospital CBC _______ Urinalysis _______ Blood Typing _______ Chest X-ray (standard) _______ Hepa B- test _______ Medical Exam Result _______ Recommendation Letter _______ Clearance/Cert. from previous Employer _______ One (1) long folder-white _______

Issued by: _________ Date: _____________ jgd/pre-empl. 120697

Checked by: __________ Date: ________________

Interviews

YOU THE MAN?

Phone Interview HR Staff Immediate Superior Top Management

Training and Development

Why train, develop and educate?

Build capabilities Enhance competencies Ensure succession planning Create and sustain a positive and productive organizational culture Make employees go, grow and glow

For what?
PROFIT! PRODUCTIVITY! PROSPERITY!

Training Cycle
1. 2. 3. 4. 5. 6. Training needs analysis Objectives Contents Method Implementation Evaluation/monitoring

Training cycle
1. Training needs analysis 2. Objectives 3. Contents What do we really need? Expected outcome? Must know, important to know, nice to know High impact, lasting effect Doability & execution ROI

4. Method 5. Implementation 6. Evaluation/monitoring

Types of Training
Employee Orientation Skills/technical training Personality development Values/work attitude formation Supervisory/Management development Leadership development Teamwork/teambuilding Pre-retirement training

LEVELS OF EVALUATION
LEVELS 1 - REACTION 2 - LEARNING 3 - APPLICATION 4 - ROI MEASURES Did they like or appreciate the activity? Did they learn, understand or comprehend concepts? Did they use/apply the concepts to their jobs? Did the applications contribute to the competitiveness of the organization?

Compensation
Whats in it for me?

Strategic Components of Human Resources

COMPENSATION MANAGEMENT We believe in paying competitive wages that commensurate with job size and individual performance WELFARE MANAGEMENT We believe in being a firm, fair and caring employer. We strive to make employees value their jobs and want to remain in the organization based on their abilities to contribute and grow. PERFORMANCE MANAGEMENT We believe in equipping employees with the necessary skills to do a good job, providing them with the tools, the environment, the support and the information needed to excel in their jobs. CAREER MANAGEMENT We believe in matching employees strengths and aptitudes to available jobs, developing them to their highest potential and offering them opportunities to advance in their careers. CULTURE/VALUE MANAGEMENT We believe in instilling our corporate core values and promoting a corporate culture that emphasizes results, teamwork, learning, sharing, service quality and work excellence.

The Strategic Compensation Model

Concepts

Compensation Techniques

Compensation Objectives

Internal equity

Job Job Job Job Analysis Description Evaluation Grades

Role clarity and accountability. Facilitates administration and performance management. Competitive wage policies and practices. Influence employees work attitudes and behavior.

External equity

Market Salary Definitions Surveys

Policy Lines

Pay Structures

Employee equity

Seniority Increases

Performance Increase Evaluation Guidelines

Attract talents. Retain talents. Motivate employees. Comply with regulations. Consistency in policy administration.

Administration

Planning, Budgeting, Monitoring, Evaluating

Compensation Management
The fundamentals of salary administration Salary administration is concerned with deciding how and what staff should be paid and with the techniques and procedures for designing and maintaining salary structures, rewarding staff and exercising salary control.

Aims Of Salary Administration

The basic aims of salary administration are to attract, retain and motivate staff by developing and maintaining a competitive and equitable salary structure. To ensure that a sufficient number of suitable staff is attracted to join the organization; To encourage suitable staff to remain with the organization; To develop and maintain a logical salary structure which achieves equity in the pay for jobs of similar responsibility and consistency in the differentials between jobs in accordance with their relative values; To ensure that salary levels match market rates; To keep the salary levels adjusted in line with increases in the cost of living;

Aims Of Salary Administration

To maintain consistency in methods used to fix and review salary levels and differentials; To provide for progression within the salary structure in accordance with performance and level of responsibility; To operate the salary system fairly and convince the staff that the system is fair; To maintain a flexible salary system which will accommodate changes in the market rates for different skills and in the companys organization structure; To achieve simplicity in operations as an aid to staff understanding and to minimize administrative effort; To operate effective systems of controlling salary costs and the administrative procedures required to achieve the above aims at the least cost to the organization.

Components Of Salary Administration

The starting point of salary administration is the determination of salary levels by job evaluation. Thereafter, salary administration is concerned with: The design and maintenance of salary structures; The operation of salary progression systems; The administration and control of salary reviews; The design and operation of bonus schemes; The provision of employee benefits and other allowances; The development of a total remuneration policy.

Compensation Tools and Techniques

Pay Structure Salary Structure Performance Related Pay Merit Payment Scheme Incentive Scheme Benefit Policies Salary Review Guidelines Compa-ratio Salary Problems

Criteria for Pay Structures

Be appropriate to the needs of the organization, in terms of its: - culture, size and the degree in which changes take place - need for flexibility - type and level of employees to be covered Be flexible in response to internal and external pressures, especially those related to market rates and skill shortages. Provide scope for rewarding high-flyers while still providing appropriate rewards for the majority of employees. Ensure that rewards are given in line with performances and achievements. Provide a basis for career planning which will motivate ambitious employees with high potential. Facilitate consistency in the treatment of varying levels of responsibility and performance.

How we get paid

Salary Commissions Bonuses Incentives
Leaves (VL, SL, ML, PL) Medical packages Housing Vehicles Insurances Retirement Education

Performance Management
WORLDS GREATEST MANAGEMENT PRINCIPLE YOU GET WHAT YOU REWARD!

Objectives of Performance-Related Pay (PRP)

Motivate all employees, not just the high-flyers. Increase the commitment of employees by encouraging them to identify with its mission and values. Reinforce existing cultures and values to foster high levels of performance, innovation and teamwork. Help to change cultures where they need to become more performance- oriented and results-oriented; or where the adoption of other new and key values should be rewarded. Discriminate consistently and be equitable on the distribution of rewards to employees according to their performance results and contributions.

Objectives of Performance-Related Pay (PRP)

Deliver a positive message about performance expectations of the company focuses attention on key performance issues. Direct attention and endeavour by specifying the organizations performance goals and standards. Emphasize individual performance or teamwork as appropriate. Improve the recruitment and retention of high-quality staff. PRP costs will be in line with company performance.

Key Factors to Consider When Introducing PRP

Matching the culture successful PRP schemes need to match the culture and core values of the organization. Linking PRP to business strategy the focus needs to be on strategic business issues which emerge from the business planning process. Balancing quantitative and qualitative measures while most PRP schemes rely on quantitative measures of performance, qualitative factors need to be introduced for the measurement of individual behavior e.g. balanced scorecards The need for flexibility flexibility in making milestone payments which convey the right messages for the future. The need to promote teamwork the importance of teamwork should be recognized in structuring the scheme and defining critical success factors and performance indicators.

Key Factors to Consider When Introducing PRP

The need to avoid short-term thinking setting long-term as well as short-term goals, and discussing short-term objectives in their overall context. Involvement in the design process designing PRP schemes should be an iterative process : trying and testing ideas on measures and structures with those who will eventually be involved in a scheme. Getting the message across all types of PRP are very powerful forms of communication. To get the right messages across for any scheme, one must make key decisions on the following: How can the scheme achieve the best possible launch? Is it better to give no pay-out rather than a low pay-out? What is the best psychological moment for pay-out? What communications should be used to gain maximum motivational impact from payment? How should communications be handled when the scheme requires changes?

Competence and Performance-Related Pay Curve

Excellent Good Satisfactory Performance Levels

Learning

Performing

Exceeding

New Entry Professional

Competent Professional

Experienced Professional

Competence bands

Advantages of individual Merit Payment Scheme

Directly link individual performance with salary progression. Provide individualized progression rates. Recognize increasing competence gained through experience.

Disadvantages of Indiv. Merit Payment Scheme

Dependent on the quality of performance appraisal; which can be arbitrary, subjective or inconsistent. Unless carefully conceived and managed, it can demotivate people who, although not be delivering spectacular results are still important. Merit payment, as distinct from bonuses, create extra payroll costs when benefits such as pensions are related to base pay. A merit payment is, in effect, a permanent increase in salary, yet the quality of performance in future years may not justify this payment. Merit pay can result in an upward drift in payroll costs without a commensurate improvement in performance. Merit pay is effective as a motivator only if rewards are clearly related to performance and are of a significant value.

Sales Incentive Plan

Business Objectives Marketing Strategy Sales Strategy & Coverage Model Sales Job Definition Quota and Crediting Compensation Plan Design Sales Plan Implementation The Sales Plan

Total Compensation Architecture

Fixed Variable
Target Sales Incentive for Quota Achievement Accelerated Incentives for Quota Over-achievement Base Salary/ Fixed Pay

Total Potential Rewards

$ Earnings

FAT/MBO Recognition Profit Sharing Stock Options*

Above quota achievement

Performance

*Selective use based on position and performance, competency and future growth potential

LFC - PRODUCTION DIVISION Management Performance A ppraisal Report IPD covered Name : Dept./Position : Since :

MANAGEMENT PERFORMANCE APPRAISAL FORM

Date Hired : I. OUTPUT EVALUATION Accountabilities OGSM Average Total-Output Evaluation Factor Weight

Rater/Supervisor : Wts 0% 0% Rating 0.00 Score 0.00 0.00 0.00 70% 0.00 Rating 0.00 Remarks Remarks

Ave. Rating-Output Evaluation (based on Accountability Result) II. INPUT EVALUATION a) Planning & Organizing b) Controlling c) Leading & Teamwork d) Problem Solving & Decision Making e) Initiative / Drive f) Flexibility g) Job Knowledge Improvement h) Productivity & Quality Participation i) j) Customer Service Coaching & Mentoring

Average Total-Input Evaluation Factor Weight Ave. Rating-Input Evaluation OVERALL Other Comments:

0.00 30% 0.00 0.00 Areas for Improvement:

Training and Development (pls. click box) Management Leadership Interpersonal/Communication skills Cross Posting Exposure Trips Tech Training Special Assignment Coaching/Mentoring Computer University Courses Rated By: Approved By:

Present

Future Specific Courses of Action:

Ratee Comments:

Ratee Signature:

Immediate Head Date:

Manager Date:

Date:

SUPERVISORY PERFORMANCE APPRAISAL FORM

MONTHLIES PERFORMANCE APPRAISAL REPORT

APPOINTMENT TO PROBI PERIOD OF EMPLOYMENT

Criteria for Success of Incentive Scheme

It should be appropriate to the type of work carried out and the workers employed. The reward should be clearly and closely linked to the effort of the individual or group. Individuals or groups should be able to calculate the reward they get at each of the level of output they are capable of achieving. Individuals or groups should have a reasonable amount of control over their efforts and therefore their rewards. The scheme should operate by means of a defined and easily understood formula. The scheme should be properly installed and maintained. Provision should be made for controlling the amounts paid to ensure that they are proportionate to effort. Provision should be made for amending rates in defined circumstances.

Individual Incentive Schemes

Straight piece-work payment of a uniform price per unit of production. can be expressed in two main forms: - money piecework - time piecework Differential piecework the wage cost per unit is adjusted in relation to output.

Individual Incentive Schemes

Measured daywork the pay of employees is fixed on the understanding that they will maintain a specified level of performance, but the pay does not fluctuate in the short term with their performance. the criteria for success in operating it are the following: total commitment of management, employees and unions. an effective work measurement system, and efficient production planning and control and inventory control procedures. the establishment of a logical pay structure with appropriate differentials from the beginning of the schemes operation. the maintenance of good control systems to ensure that corrective action is taken quickly if there are any shortfall on targets.

Group Incentive Scheme

Provide for the payment of a bonus either equally or proportionately to individuals within a group or team. Bonus is related to the output achieved over an agreed standard or to the time saved on a job. Group bonus scheme are in some respects equivalent to individual incentive schemes. It encourages team spirit, breaks down demarcation lines, and enables the group to discipline itself in achieving targets. Potential disadvantages are that management is less in control of production the group decides what earnings are to be achieved and can restrict output.

Designing an Incentive Scheme

How performance will be measured. The employees who will take part in the scheme and who will therefore have part of their pay directly linked to their own performance or group. The employees who will not take part in the scheme and how they will be compensated. Whether or not the scheme will be an individual one or one linked to group performance or related to plant performance. Whether the bonus payments will be related to basic pay. The proportion of pay which can be earned as bonus.

Designing an Incentive Scheme

The full basic rate. The relationship between output/effort and reward, eg the extent to which, if at all, there is a differential built into the scheme which shares the results of higher productivity between the company and the workers. The basis upon which employees not earning bonuses will be paid. The timings of bonus payments and the lapse of time before payments are made. The arrangements, if any, to alleviate the problems of large fluctuations in bonus payments. The methods to be used to maintain the scheme and to inform employees of their earnings

Aims of Bonus Schemes

The principal aim of a bonus scheme is to provide an incentive and a reward for effort and achievement. Executive bonus schemes linked to company profits can also aim to make senior managers feel that their personal prosperity is linked to the performance of their company or unit. Bonus schemes are supplementary to basic salary and are most appropriate where they apply to entrepreneurial types such as chief executives, marketing men and sales staff who, it is assumed, will strive for material reward, and whose results upon which their bonus depends can be clearly linked to their personal efforts and achievements.

Bonus Schemes Criteria

The amount of the award received after tax should be sufficiently high to encourage staff to accept exacting targets and standards of performance. Standard bonuses should not be less than 10% of the basic salary and, if an effective incentive is wanted , the standard bonus should be around 20% to 30% of salary The incentive should be related to quantitative criteria over which the individual has a substantial measure of control The scheme should be sensitive enough to ensure that rewards are proportionate to achievements The individual should be able to calculate the reward he can get for a given level of achievement

Bonus Schemes Criteria

The formula for calculating the bonus and the conditions under which it is paid should be clearly defined Constraints should be built into the scheme which ensure that staff cannot receive inflated bonuses which may not reflect their own efforts The scheme should contain provisions for a regular review, say, every two or three years, which could result in its being changed or discontinued The scheme should be easy to administer and understand, and it should be tailored to meet the requirements of the company

Executive Bonus Schemes

There are innumerable formulae for executive bonus schemes, and each company must adopt one which suits its own circumstances.

The simplest formula is for a percentage out of net profits before tax to be paid Pro- Rata to the executives basic salary. In some schemes, dividend payments and provisions for reserves are deducted from net profits before the distribution of bonuses and there is usually an upper limit to the amount of bonus that can be paid.
These schemes are crude but provide a direct incentive as long as results are directly influenced by the actions of the executives in the scheme. They can get out of hand unless an upper limit is strictly applied, and their emphasis on profits may make some executives seek short term gains at the expense of the longer term development of the company.

Executive Bonus Schemes

Other schemes are based on a formula which measures company performance. Bonuses are paid when a target figure is attained increased further as the target figure is exceeded. The increase of bonus may be on a straight-line basis, ie. directly proportionate to the improvement in results. Alternatively, it may be geared either by decreasing the rate of bonus the more the target is exceeded, which is generally regarded as poor practice, or by increasing the rate, which could be an expensive device. A straight-line progression is to be preferred. The formula in some schemes is directly applied to the executives salary. In other schemes, a percentage of profits on an increasing scale is released into a bonus pool which is distributed in proportion to salary.

Labor and employee relations

LR or Labor Relations is recognizing and accepting that employees can organize and form a union (this is their right) and dealing with them in win-win ways A Union gives employees the unity and strength to bargain with management and get what they need or want ER or Employee Relations is taking proactive initiative and action to ensure that the bond or relationship between management and employees is not through work only Employee relation interventions bridges, heals, develops, binds relationships in and organization

Employee relations programs

Annual sports programs Outings: winter, spring, summer or fall Cultural: songs, dances, drama IGP: tiangge, buy-back Birthday celebrations Christmas parties Feedback fora Corporate communications program CSR volunteerism program

Corporate Social Responsibility

the initiative of an enterprise to responsibly and ethically operate its business considering various stakeholders: customers, employees, community and environment

 Not just as COMPLIANCE to regulatory standards and laws But sincere COMMITMENT to return something to people, communities, country and to God. To be responsible STEWARDS in this very temporal world

CSR Interventions
Medical/dental missions Health education Nutrition programs Sanitation programs Literacy programs for children and adults Skills training Day care centers School and teacher assistance Livelihood training and IGP programs Environmental programs: tree planting, coastal management Recycling Disaster and relief aid Assistance, networking and partnering with LGUs Infrastructural assistance: roads, buildings, water, drainage

Corporate Communications: Making sure youre getting through

Information dissemination: about the business, direction, situation, plans Building a culture: about norms, values, expectations how we do things Updates: whats up and about, whats going on why the changes? Giving credit and recognition where to to whom it is due

Media relations: Establishing Critical Linkages Publishing projecting and positioning your corporate image properly Getting your side of the news heard and considered Expedient damage control

General administrative services

Ensuring that the employees have the facilities to make them work effectively and efficiently Infrastructure, utilities (water, light, communication, etc.), welfare facilities, office maintenance Equipment availability, repair and maintenance

1) A Brief History of HRM

The Craft System Master craftsman and apprentice Industrial Revolution Move to factory system and move to machines Division of labor Scientific Management Taylor Conducted scientific experiments to improve efficiency Theory X Human Relations Hawthorne experiments The Hawthorn effect led researchers to associate social factors with work Theory Y

Douglas McGregor's Management Styles

Managers could organize, lead, control, and motivate people in different ways

Theory X
Workers inherently dislike work Workers must be coerced, controlled, directed, threatened with punishment to get them to accomplish work objectives Talent is narrowly distributed Workers will do as little work as they are required to do Motivated by money Need for formal, well established lines of authority Clearly defined jobs

Theory Y
Workers like work, cooperative, friendly Work is widely distributed throughout the workforce Workers can be motivated to work independently Managers who accepted Y, would not structure, control, or closely supervise the work environment Encourage self-control, motivate by providing satisfying work (e.g., challenging work)

Human Resource Competency Model

Business Mastery
Business acumen Customer orientation External Relations

Personal Credibility Trust

Personal relationships Lived values Courage

HR Mastery
Staffing Performance appraisal Rewards system Communication Organization design

Change Mastery
Interpersonal skills and influence Problem-solving skills Rewards system Innovation and creativity

Source: Arthur Yeung, Wayne Brockbank, and Dave Ulrich, Lower Cost, Higher Value: Human Resource Function in Presentation Slide 14 Transformation. Reprinted with permission from Human Resource Planning, Vol. 17, No. 3 (1994). Copyright 1994 by The Human Figure 1.9 Resource Planning Society, 317 Madison Avenue, Suite 1509, New York, NY 10017, Phone: (212) 490-6387, Fax: (212) 682-6851.

HR Management Activities

Developing Human Capital

Human Capital
The knowledge, skills, and capabilities of individuals that have economic value to an organization. Valuable because capital:
Is based on company-specific skills. Is gained through long-term experience. Can be expanded through development.

2) Strategy

Strategic management: set of decisions and subsequent actions used to formulate and implement strategies that will optimize the fit between the organization and its environment in an effort to achieve organizational objectives.

Competitive advantage: when a firm is implementing

a value creating strategy not simultaneously being implemented by any current or potential competitor. Sustained competitive advantage: exists only after efforts to replicate that advantage have ceased.

Strategy (Cont.) Strategic plan: the overall blueprint that defines how
an organization will deploy its capital resources, such as budgetary and human resources, in pursuit of its goals

How do you develop a strategic plan?

Articulate values and mission statement SWOT Analysis Establish realistic goals and objectives based on the foregoing steps Formulate Strategies Implement Strategies

CORPORATE STRATEGY
How companies choose their mixtures of different businesses Growth (internal vs. external) strategies Diversification
related (part of value chain) Unrelated (not part of value chain)

Types of Business Strategies

Cost leadership: A firm pursuing a cost

leadership strategy aggressively seeks efficiencies in production and uses tight controls to gain an edge on competitors.

Differentiation strategy: involves an attempt to

set a companys products or services apart from those of its competitors.

Linkage of Organizational and HR Strategies

Figure 24

What is Strategic Human Resource Management (SHRM)?

Traditional and Strategic Views of HRM (a) Personnel-The Traditional View

The Organization
Research and Development

Personnel Staffing Pay Training

Finance

Production

Marketing

Traditional and Strategic Views of HRM (b) HRM -- The Strategic View

Research and Development

Human Resource Management

Strategic Goals

Finance

Marketing

Production

SHRM Defined
- It involves designing and implementing a set of internally consistent policies and practices that ensure a firms human capital contribute to the achievement of its business objectives. - This includes both vertical (linking HRM practices with strategic management process) and horizontal (the integration of the various HRM practices) integration as well. - Additionally, linking the people of the firm (in terms of their skills and actions) to the strategic needs of the firm.

What is Strategic Human Resource Management

Table 2.1 Theoretical Perspectives on SHRM
Perspective Universalistic Description There is one best way to manage human resources. Strategic HRM is the process of transforming traditional HR practices into a limited set of correct HR procedures and policies. Strategic HRM involves matching specific HR practices to the firms overall business strategy. Strategic HRM involves HR professionals providing services to business units within the firm. The HR goal is to enhance the effectiveness and efficiency of the operations of their business unit customers.

Strategic Fit HR as internal service provider

What is Strategic Human Resource Management

Table 2.1 Theoretical Perspectives on SHRM
Perspective Configurational Description There are various configurations or bundles of HR practices that go together and, collectively, can improve business performance. Certain bundles are effective in certain industries and/or in certain business conditions, whereas other bundles should be used in other industries or under different business Circumstances SHRM engenders organizational success by enhancing a firms ability to acquire, develop, use, and retain employees with high competence levels relevant to firm activities.

Res. Competency

Competitive Advantage through People

Core Competencies Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. Sustained competitive advantage through people is achieved if these human resources (Resource/competency view): Have value. Are rare and unavailable to competitors. Are difficult to imitate. Are organized for synergy.

Different Roles for HR Management

Figure 15

HR Management Roles
Administrative Role Clerical and administrative support operations (e.g., payroll and benefits work) Employee Advocate Role Champion for employee concerns Employee crisis management Responding to employee complaints Operational Role Identification and implementation of HR programs and policiesEEO, hiring, training, and other activities that support the organization.

How HR Spends Its Time

Source: Adapted from How Much Time Should Your HR staff Spend on Recruiting? Human Resources Department Management Report, June 2000, p. 6.

Strategic Role for HR

HR becomes a strategic business partner by: Focusing on developing HR programs that enhance organizational performance . Involving HR in strategic planning at the onset. Participating in decision making on mergers, acquisitions, and downsizing. Redesigning organizations and work processes Accounting and documenting the financial results of HR activities.

Overview of HR Management Roles

Figure 17

3). Ethics and HR

What is Ethical Behavior? What ought to be done. Dimensions of decisions about ethical issues in management: Extended consequences Multiple alternatives Mixed outcomes Uncertain consequences Personal effects

Ethics and HR (contd)

Responding to Ethical Situations
Guided by values and personal behavior codes that include:
Does response meet all applicable laws, regulations, and government codes? Does response comply with all organizational standards of ethical behavior? Does response pass the test of professional standards for ethical behavior?

Ethical Issues in Management

Most Common Forms of Unethical Conduct Lying to supervisors Employee drug use or alcohol abuse Falsification of records International Ethical Issues Gift giving and bribery Discrimination in hiring and treatment Addressing Ethical Issues Code of ethics Training managers and employees

Code of Ethics
As a member of the Society for Human Resource Management, I pledge to:
Maintain the highest standards of professional and personal conduct. Strive for personal growth in the field of HRM. Support the Society's goals and objectives for developing the human resource management profession. Encourage my employer to make the fair and equitable treatment of all employees a primary concern. Strive to make my employer profitable both in monetary terms and through the support and encouragement of effective employment practices.

Code of Ethics Cont.

Instill in employees and the public a sense of confidence about the conduct and intentions of my employer. Maintain loyalty to my employer and pursue its objectives in ways that are consistent with the public interest. Uphold all laws and regulations relating to my employer's activities. Refrain from using my official positions, either regular or volunteer, to secure special privilege, gain or benefit for myself. Maintain the confidentiality of privileged information. Improve public understanding of the role of human resource management.

Overall Framework for Human Resource Management

COMPETITIVE CHALLENGES
Globalization Technology Managing change Human capital Responsiveness Cost containment

HUMAN RESOURCES
Planning Recruitment Staffing Job design Training/development Appraisal Communications Compensation Benefits Labor relations

EMPLOYEE CONCERNS
Background diversity Age distribution Gender issues Educational levels Employee rights Privacy issues Work attitudes Family concerns

Presentation Slide 11

Figure 1.1

4). Competitive Challenges and Human Resources Management

The most pressing competitive issues facing firms:
Going global Embracing technology Managing change Developing human capital Responding to the market Containing costs

Going Global
Globalization The trend toward opening up foreign markets to international trade and investment. Impact of Globalization Partnerships with foreign firms Anything, anywhere, anytime markets Lower trade and tariff barriers NAFTA, EU, APEC trade agreements WTO and GATT

Going Global (contd)

Impact on HRM
Different geographies, cultures, laws, and business practices Issues:
Identifying capable expatriate managers. Developing foreign culture and work practice training programs. Adjusting compensation plans for overseas work.

Embracing New Technology

Knowledge Workers
Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving.

The Spread of E-commerce The Rise of Virtual Workers

Influence of Technology in HRM

Human Resources Information System (HRIS)
Computerized system that provides current and accurate data for purposes of control and decision making. An integrated system of hardware, software, and databases designed to provide information used in HR decision making. Benefits:
Store and retrieve of large quantities of data. Combine and reconfigure data to create new information. Institutionalization of organizational knowledge. Easier communications. Lower administrative costs, increase productivity and response times. Administrative and operational efficiency in compiling HR data Availability of data for effective HR strategic planning

Uses of HRIS
Automation of payroll and benefit activities EEO/affirmative action tracking

Major Uses For HR Information Systems

Source: HR and Technology Survey, Deloitte & Touche and Lawson Software, 1998.

HRM 1

Uses of an HR Information System (HRIS)

Impact of IT on HRM
Operational Impact Relational Impact

HRM

Transformational Impact

Designing and Implementing an HRIS

HRIS Design Issues What information available and what is information needed? To what uses will the information be put? What output format compatibility with other systems is required? Who will be allowed to access to the information? When and how often will the information be needed?

Accessing the HRIS

Intranet An organizational (internal) network that operates over the Internet. Extranet An Internet-linked network that allows employees access to information provided by external entities. Web-based HRIS Uses Bulletin boards Data access Employee self-service Extended linkage

A Guide To Internet Sites

American Management Association (http://www.amanet.org/start.htm) AMA membership, programs, training, etc. Society for Human Resource Management (http://www.shrm.org) Current events, information, connections, articles.

HR Professionals Gateway to the Internet (http://www.hrisolutions.com/index2.html) Links to HR-related web pages.

Training and Development Homepage (http://www.tcm.com/trdev/) Job mart, training links, T&D electronic mailing list links.

A Guide To Internet Sites (contd)

FedWorld (http://www.fedworld.gov) A gateway to many government web sites. U.S. Department of Labor (http://www.dol.gov) Job bank, labor statistics, press releases, grants, contract information. Occupational Safety and Health Resources (http://osh.net) OSHA-related sites, government pages, resources, etc. AFL-CIO (http://www.aflcio.org/home.htm) Union news, issue papers, press releases, links to labor sites.

HRM IT Investment Factors

Initial costs and annual maintenance costs Fit of software packages to the employee base Ability to upgrade Increased efficiency and time savings Compatibility with current systems User-friendliness

Availability of technical support

Needs for customizing

Time required to implement

Training time required for HR and payroll

5). Managing Change

Types of Change Reactive change Change that occurs after external forces have already affected performance Proactive change Change initiated to take advantage of targeted opportunities Formal change management programs help to keep employees focused on the success of the business.

Managing Change
Why Change Efforts Fail: 1. Not establishing a sense of urgency. 2. Not creating a powerful coalition to guide the effort. 3. Lacking leaders who have a vision. 4. Lacking leaders who communicate the vision. 5. Not removing obstacles to the new vision. 6. Not systematically planning for and creating shortterm wins. 7. Declaring victory too soon. 8. Not anchoring changes in the corporate culture.

Responding to the Market

Total Quality Management (TQM) A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement. Six Sigma A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another.

Responding to the Market

Reengineering Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Requires that managers create an environment for change. Depends on effective leadership and communication processes. Requires that administrative systems be reviewed and modified.

Containing Costs
Downsizing The planned elimination of jobs (head count). Outsourcing Contracting outside the organization to have work done that formerly was done by internal employees. Employee Leasing The process of dismissing employees who are then hired by a leasing company (which handles all HRrelated activities) and contracting with that company to lease back the employees.

Downsizing and Upsizing

Percent of companies reporting that they:

Source: Gene Koretz, Hire Math: Fire 3, Add 5, Business Week Online (March 13, 2000).

*All annual readings are for 12 months ending at midyear. Categories are not mutually exclusive.

Figure 1.2

Containing Costs (contd)

Hidden Costs of Layoff Severance and rehiring costs Accrued vacation and sick day payouts Pension and benefit payoffs Potential lawsuits from aggrieved workers Loss of institutional memory and trust in management Lack of staffers when the economy rebounds Survivors who are risk-averse, paranoid, and political

Containing Costs (contd)

Benefits of a No-Layoff Policy A fiercely loyal,more productive workforce Higher customer satisfaction Readiness to snap back with the economy A recruiting edge Workers who arent afraid to innovate, knowing their jobs are safe.

6). HR Management Challenges

Economic and Technological Changes Shift in jobs for manufacturing and agriculture to service industries and telecommunications. Pressures of global competition causing firms to adapt by lowering costs and increasing productivity. Growth of information technology (Internet).

Social Issues and HRM

Changing Demographics More diversity of race, gender, age, and ethnicity in the U.S. workforce Shrinking pool of entry-level workers Productivity Individual differences Retirement benefits Social Security contributions Skills development Inadequate supply of workers with needed skills for knowledge jobs Education of workers in basic skills

Social Issues and HRM

Changing Demographics Use of temporary employees -- Growth in Contingent Workforce Increases in temporary workers, independent contractors, leased employees, and part-timers caused by: Need for flexibility in staffing levels Increased difficulty in firing regular employees. Reduced legal liability from contract employees

Social Issues and HRM (contd)

Employer/Employee Concerns Job as an entitlement Right to work Whistle-blowing Employment at will AIDS Comparable worth Concern for privacy Mandated benefits

Social Issues and HRM (contd)

Balancing Work and Family Dual-career couples Single-parent households Decline in the traditional family Working mothers and family/childcare Single employee backlash against family-oriented programs.

Social Issues and HRM (contd)

Attitudes Toward Work and Family Day care Flextime Job sharing Alternative work schedules Elder care Job rotation Parental leave Telecommuting

Labor Force and Racial Distribution

Source: Labor Force, Occupational Outlook Quarterly 45. no. 4 (Winter 2001/2002): 3641.

Figure 1.4a

Labor Force Growth By Race And Hispanic Origin, Projected 20002010

Source: Labor Force, Occupational Outlook Quarterly 45. no. 4 (Winter 2001/2002): 3641.

Figure 1.4b

Labor Force Share By Race And Hispanic Origin, 2000 And Projected 2010

Source: Labor Force, Occupational Outlook Quarterly 45. no. 4 (Winter 2001/2002): 3641.

Figure 1.4c

Labor Force Participation Rate By Sex, 19502000 And Projected 20002010

Figure 1.5a

Labor Force Growth By Sex, Projected 20002010

Figure 1.5b

Labor Force Share By Sex, 1990, 2000, And Projected 2010

Figure 1.5c