Pangasinan State University

Prof. Josefina B. Bitonio,DPASummer 2012

Module 2 Framework for Viewing HRM

DM 212 & ME 212 Human Resource Development & Management

Introduction

This module discusses the various variables affecting the management of human resources in an organization. An understanding of these variables will help you explain the various problems and issues which beset your own organization or agency.

Module 2

To explain how various variables affect the management of human resources in a government agency.

To look into the framework of viewing HRM by the International Civil Service Commission

Framework for Viewing HRM

Internal and External Variables

This framework is called an “open system “because HRM processes are affected by factor which are internal to the organization.

The internal factors include the managerial philosophy of the organization, employee needs, values and expectations, and technology.

Meanwhile, the external factors are governmental pressures, market conditions, and pressures from the labor unions or employee associations.

Governmental Pressures

Market Conditions

Pressures from Labor Union

Pressures from Employee association

Managerial PhilosophyThe organization’s management philosophy defines the policies for the

management of personnel. This philosophy may follow one or a combination of these approaches:

Man

ager

ial

Philo

soph

y

The traditional approach is more concerned with the production efficiency and accomplishment of task goals. It recognizes economic incentives as the primary motivators for work performance. It assumes that better work lay-out and employees full knowledge of their jobs will result in greater efficiently. This will lead to more profits for the organizations and will ultimately result in higher wages or salaries and more benefits for employees.

The human relations approach is concerned not only with the agency’ production efficiency and task goals accomplishment but also with the social and psychological needs of employees. It is assumed that satisfying the needs will make them more productive. In other word, this approach focuses on the individual needs of the employees. As such, the organization employing this approach is viewed to be benevolent and paternal. However, despite the recognition of the social and psychological needs of employees, they are not given opportunities to meaningfully participate in decision-making and this is big criticism of this approach.

The human resources approach takes a different perspective. It assumes that realistically, employees work for the accomplishment of the organization goals and objectives if individual needs and interests are being met by the organization. They are mutually interdependent. For example, an employee looks for challenging work, more equitable pay and more participation in decision-making and the organization expects better work performance for more efficient and effective operations.

What distinguishes the human resource approach from the other two approaches is its focus on the full development and utilization of the talent and skills of the employees. as such, they are given better and more opportunities to actively involved themselves and decision-making processes.

A Framework for Human Resources Management

Mission, Mandate, Strategy

Internal Forces

External Forces

Evolution of Technology

Development of Conceptual Base

Human Resources Management Strategies

Ethics/Standard of Conduct

Ethics/Standard of Conduct

HR Information Management

HR Information Management

Organizational design, including job design and human resources planning

Organizational design, including job design and human resources planning

Source: International Service Commision:2001

Human Resources Management Strategies

Ethics/Standard of Conduct

Ethics/Standard of Conduct

HR Information Management

HR Information Management

Organizational design, including job design and human resources planningOrganizational design, including job design and human resources planning

Compensation & benefits

Employment Career Management

Good Governance

Compensation & Benefit System

Recruitment, Placement & Retentions

Contractual Arrangements

Staff well-being

Career management, staff development &

training

Mobility

Performance Management

Role of Staff

Administration of Justice

continuation

Source: International Service Commision:2001

Carrell, Elbert and Hatfield (2000) put forward a number of principles which provide the basis for a human resources approach. These are:• Employees are investment. If effectively management and

developed, they will provide long term rewards to het organization in the form of greater productivity.

• Policies, programs and practices must satisfy both the economic and emotional needs of employees.

• A working environment must be created in which employees are encouraged to develop and utilized their skills to the maximum extent.

• Implementation of HR programs and practices must meet the goal of balancing the needs and meeting the goal of both the organization and the employees.

HR Approach

HIGHER Employee

Motivation and Applied Ability

GREATER Quality and Quantity of

Work

HIGHER Organization productivity and profitsGREATER

Employee Rewards and Profits

LEADS TOLEADS TO

LEADS TO

LEADS T

O

Source: Carell, Elbert and Hatfield, 1995, p. 9.

EMPLOYEE

ORGANIZATION

Do you think the traditional and human relations philosophies are supportive of control by top management?

Determined which approach is being applied by your agency. Does your agency employ only one approach or that is use a combination of

approaches? In your view, What enhances the effectiveness of the agency operations?

2. Employee need, values and expectations

When you entered your agency, you brought into your job you own set of values, attitudes, needs, interests, and expectations acquired from previous work experiences. These have definitely influenced your work relationships with other as well as your work ethic.

• How would you then described yourself? If you are passive and non assertive, you may not like to play an active role in managing people. If you are supervisor, your approach and dealing with your subordinates may defined your supervisory style. For example, if you are too lax, some may lose their respect for you because they expect the tough but fair supervisor.

• If you are the type who is conditioned to distrust anything that management says or does, then you may find your opportunities for movement in the organizational limited.

As you described your individual characteristics, you will come to realize the difficulty of management developing common or shared values and needs among employees.

Do you think that it is necessary for management to come up with common or shared values among employees?

If you think so, what are the ways and means by which by management of your agency would be able to accomplish this with personnel.

3. Technology

• Organizations been using a number of techniques in accomplishing your work goals. These techniques are part of what we call technology.

• Peterson and Tracy define it as the “techniques use by organizations in work-

flow activities to transform inputs into output”.

Technological changes brought about by a changing, complex environment effect to a large extent the efficient and effective operations of an organization. A desirable job design cannot be carried out if the organization is not able to adopt the existing techniques to the new design.

Mondy and Noe (2012) emphasize the fact that the rate of technological change is accelerating so fast that may changes are required from the workforce in terms of knowledge and skills. Employees have to be trained and retrained in order to keep up

with the pace of changes. For examples, computers in office work demand a new set of skills from the employees particularly from the clerical force.

In fact, computer literacy as now a requirement in hiring new personnel in many agencies. The Civil Service Commission has started to change the nomenclature of position from clerks to computer operators or data entry machine processors.

Challenges

Technology Development

HR Availability - Quality

Organization Structuring

Economic Growth

Demographic

Source: Sugiharto, SH.MM 2009

What are the technological changes taking place in your agency?

Are the system and procedures computerized? How are these changes affecting the operations and

personnel function within your organization? Has the service delivery improve as a result of

computerization of system and procedures?Has there been a reduction in the number of personnel

involved in the delivery of service?

External Factors

• A big factor influencing personnel functions is the government. The central personnel agency of the entire bureaucracy is the Civil Service Commission (CSC). All civil employees of the government are governed by the civil service laws, rules and regulations and all administrative orders about personnel functions and regulations emanate from the CSC. The hiring, selection, promotion, rewards and sanctions, discipline, and other personnel actions are subject to the conditions set and the rules and regulations imposed by the Commission.

• Have you ever been negatively affected by some CSC rules and regulations. What particular CSC policies have a negative impact on you as a government worker?

1. Governmental Pressures

Public laws such as the minimum wage law. The minimum wage law influences the salary scale of most government employees. Another law which has disturbing effects on the government sector is the Salary Standardization Law or SSL.What is the impact among the public sector worker? Have you been affected by the imposition of the Salary Standardization Law (SSL)? If you were, What are the ways that the SSL had influenced your job or work

2. Market Condition

This factor refers to the supply and demand for labor. The labor force as defined by Mondy and Noe is:

“a pool of individual external to the firm from which the organization obtains its workers”.

This pool of work force is always changing as dictated by the demands of the environment. In other words, any changes in the labor force inevitably causes changes in the organization’s work which in turn would affect the way management must deal with its employees

In a complex and competitive environment, organizations, both government and private, have to compete for the retention of their competent and qualified personnel. In this competitive arena, the government usually comes out as the loser because of its inability to retain in its work force highly qualified and competent staff due to lack of financial resources. The private firms usually get the best people because of their higher salary scale.

How long have you been working for government?

Why are you still working for the government? Some private firms may have offered you jobs and yet, you have opted to be employed in the government.

3. Labor UnionMondy and Noe explain that a union is a “group of employees who have joined together for the

purpose of dealing with their employer”.

In a unionized firm, it is the union rather than the individual employee that negotiates an agreement with management in terms of wage levels, benefits, and working conditions. Other authors have also explained the pressures labor unions exert on management from the perspective of a private organization.

4. Government Employee Associations

Compare the influence of government employee associations on government agency management

• Although no government labor unions are empowered through collective bargaining, there are employee associations which serve as labor unions. They make demands from government for more benefit, better working conditions and higher salaries.

• Through their association, employees can be well represented in personnel committees in the agency. These associations enable them to participate in decisions which affect their functions and performance in the agency.

Integrating Theory and PracticeThe Evolution of HRM

Separated & isolated from the organization’s mission

Production Focused Only

Vertical Authority

Human Resources+Cost

As key part in Organization’s mission

Focused on services

Horizontal responsibility

HR=investment(Expertise)

HRM-One Presented by Sugiharto,SH.MM 2009

Integrating Theory and Practice

Based on your work experience, what do you think are the factors that affect HRM as a system?

• Explain and give examples of how each factor will affect the management of human resources in your government agency.

• Are you a member of an employee association in your agency? If no, why not? If yes, how affective is your association in serving as a mechanism for making demands from management?

Readings• Perla Legaspi- Human Resource Development Open University, University of the Philippines 2002• Weldell French,, . 2nd edition, New Jersey: Houghton Mifflin Co., Chapter 2-3, pp. 32-

75. (1990)• Richard Peterson and Lane Tracy. Systematic management of Human Resources.

Massachusetts: Addition-Wesley Publishing Co., (1981, 1988), Chapter 2, pp. 21-38.• Concepcion Martires , Human Resource Management Principles and Practices.

Quezon City Kalayaan Press Marketing, Inc. (1988) Chapter 2-3, pp. 25-44.• Carrell, N. Elbert, and R. Hatfield Examining the Relationship Between Diversity and

Firm Performance (2000)• Mondy and R. Noe. Human Resource Management (2012)• International Civil Service Commission: A Framework for Human Resource

Management2001• Sugiharto,SH.MM . Human Resource Management-One: 2009 www.slideshare.com