REPUBLIC OF THE PHILIPPINESPOLYTECHNIC UNIVERSITY OF THE PHILIPPINES

College of BusinessDepartment of Human Resource Management

Submitted by:

Nathaniel Angelo P. MacayananMyla RoxasJane Andrea Avellano

BSBA-HRDM 2-6N

Submitted to:

Mr. Apolinario BernardinoHuman Resource Management

ProfessorNATURE OF HUMAN RESOURCE MANAGEMENT

2.1 INTRODUCTIONS

Human resource are critical for effective organizational functioning Managers are now beginning to realize the effectiveness of their HR

function and how it has substantial impact on the bottom – line performance of the firm.

In adequate human resource planning can result in spurts of hiring following by layoffs.

2.2 THE DEVELOPMENT OF HUMAN RESOURCE MANAGEMENT

Human resource management as they are known today are started with the factory system in the late 18th and early 19th centuries as an integral part of line function but it was not until the early 20th century that human resource Factors that contributed to this development,

Industrial Revolution Establishment of factory system Formation and growth of labor unions The scientific management movement – early 20th century Research studies and experiment – conducted by many social,

behavioral scientist, psychologist, and industrialist

Between 1910 and 1920 this new function was generally known as “employment management” which was concerned with hiring.

In the early 1920’s first professional and research association in the United States were

formed, training programs for employment managers were offered in colleges, First college conferences were held, and the first book on human

resource management were published by Ordway Tead and Henry Metcalf in 1920.

In the Philippines, human resource management emerged as a staff function only after World War II, that initiated by few American companies with overseas operation in the Philippines and some companies managed by Filipinos trained in the United States.

In the early 50’s Philippine embarked in the industrialization Program, after obtaining its

independence in 1946, Many small businesses grew in size and expanded their production and

marketing activities. Businessmen were encouraged by the government to start or expand

their own businesses.

It was also in the early 50’s the congress of the Philippines passed several laws regulating the relations between labor and management. The Republic act 875 also known as the Magna Carta of Labor which took effect on June 17, 1953. (this encouraged and protected the organization of strong labor unions and in the process, gave impetus to the establishment of HR Dept. in B.O. headed by the HR Officer)

In 1974, The various labor and social law ere codified into the labor code of the

Philippines which was promulgated by Pres. Ferdinand Marcos as presidential decree no. 442 on may 1 1974 and took effect on November 1, 1974

Since then the labor code has been amended several times, the latest of which was done in 1989 with the enactment of Republic Act No. 6715 by the Philippines Congress.

HRM One of the newest specialized branches of management and, being

new, its role function in the B.O. are not generally to some top management executives.

Five developments promote the growth of human resource management as a profession in the Philippines. (Refer to page 53 of Essentials of Human Resource Management)

2.3 OBJECTIVES OF HUMAN RESOURCE MANAGEMENTS

The primary purpose of a business organization is the profitable production and distribution of goods and services to meet the needs of society. To accomplish this purpose, involves the coordination of several functions such as manufacturing, finance, sales and etc. these function are coordinated by management. Since all of these functions are carried out by people, an integral part of each of the said functions is the management of human resources, traditionally known as human resource management whose main objective is the effective management of human resource.

Human Resource Management is responsible for:

Assist top and line management achieve the company objective of fostering harmonious relationship with its human resource by empowering the organization, to successfully meet strategic goals by managing staff effectively

Acquire capable people and provide them with opportunities for advancement and self development.

Ensure that all employees are treated equally and fairly in the application of company policies, rules and regulations and in rendering services to them.

Assist management in training and developing the human resources of the company if the company does not have a separate training department to perform this function.

Provide technical services and assistance to the operating management in relation to their human resource function in promoting satisfactory work environment.

Assist top management in formulating policies and program that will serve as the requirements of the company and administer the same fairly to all employees.

Recruiting the required workforce and making provision for expressed and promised payroll and benefits.

Implementing resource strategies to subsequently create and sustain competitive advantage

2.4 DEFENITION OF HUMAN RESOURCE MANAGEMENT

Defined as the management function concerned with promoting and enhancing the development of work and effectiveness and advancement of human resource in the organization. These are achieve through proper planning, organizing, directing, coordinating, and controlling of activities related to procurement, development, motivation, and compensation of employees to attain the goals of B.O.

Ideally HRM is responsible for an interdisciplinary examination of all staff members in the workplace. This strategy calls for application from diverse fields such as psychology, paralegal studies, industrial engineering, sociology, and a critical understanding of theories pertaining to post-modernism and industrial revolution.

2.5 HUMAN RESOURCE MANAGEMENT: A SCIENCE AND AN ART

SCIENCE Is a systematic accumulation of data, their analysis and

interpretations, and their use to arrive at a satisfactory conclusion.

HUMAN RESOURCE MANANGEMENT

Is a science because it involves the systematic gathering of data derived researches, statistics, interviews and observations.

It is an applied social science because it utilizes scientific principles in analyzing and interpreting data for application in the management of people at work.

ART Is expertise in the practical application of knowledge attained

through study, experiences, or observation

2.6 RESPONSIBILIIES OF HUMAN RESOURCE MANAGEMENT

SIX MAJOR RESPONSIBILITIES:

ATTRACTION Identifying job requirements, estimating the people and skills-

mix requirements.

SELECTION Choosing the most suitable personnel

RETENTION Creating the conditions necessary for rewarding performance

and providing a healthy conductive work environment.

DEVELOPMENT

Preserving and improving employees’ knowledge, skills. And abilities and other characteristics.

MOTIVATION Developing the techniques that reflect the needs of each

individual – job satisfaction, behavioral and structural methods for stimulating performance, compensation and benefits, etc.

ASSESMENT Evaluation of behavior, attitudes and performance.

ADJUSTMENT Activities intended to maintain compliance with culture and

policies.

2.7 HUMAN RESOURCE MANAGEMENT PROGRAMS

There are six programs of HRM:

1. HR Organization involving:o Organization design and developmento Motivation and leadershipo Management of organizational culture

2. HR Planning involving:o Forecasting (manpower) needso Forecasting(manpower) supply both within and without the

organizationo Arriving at a net plus or minus positiono Initiating required policies and steps

3. HR Information System involving:o Creation of a wide database for up-to-date information on all

aspects

4. HR Development involving:o Trainingo Guidanceo Career management o Skill upgrading

5. HR Relation involving:o Dealing with individual and collective problemso Grievance redressed machineryo Negotiation with trade unions and staff associationo Attempts to increase cooperation

6. HR Utilization involving:o Attempting to increase productivityo Method studyo Work studyo Job analysiso Job enrichment, etc.

2.8 QUALIFICATION OF A HUMAN RESOURCES MANAGER

EDUCATION

The minimum pre-service education required of a human resource manager should be the completion of a regular college course.

RECOMMENDED CURICULUM1. Business Administration

a. Principles of organization and managementb. Human resource managementc. Human behavior in organizationd. Public relatione. Courses in the functional area desired, such as

production, marketing, total quality management, corporate social responsibility, business policy and strategy, etc.

2. Economicsa. Principles of economicsb. Labor economicsc. Cost benefit economicsd. Economics of the company

3. Industrial relationa. Labor laws and social legislationb. Research methods in industrial relationsc. Human resource developmentd. Collective bargaininge. Dispute settlementf. Design and implementation of training programsg. Organizational behavior

4. Behavioral sciencea. industrial psychologyb. counseling and interviewingc. psychological testing

JOB TRAINING

Many employers now recognize now the importance of trained human resource workers in handling employee relations. While some successful human resource workers obtained what they needed to know about human resource management through formal trainings programs in college, many human resource managers started as assistants to experienced human resource executives and learned on the job.

2.9 HUMAN RESOURCES MANAGEMENT MODELBased on the forgoing discussions, we can go about evolving an HRM model. The six programs detailed above may be viewed as spokes of a wheel at the centre or hub of with are the HRM objectives. As the programs are implemented more and more successfully, we come closer and closer to achieving our central objectives.

2.10 IMPLEMENTATION OF HUMAN RESOURCES MANAGEMENTWe may now examine the means and modalities by which the HRM program can be successfully implemented

a.) JOINT RESPONSIBILITY

In the contemporary view, all managers, no matter what their line of responsibility, are accountable to their organizations for the impact of HRM operations employees as well as the quality of the work life provided. The most effect approach to HRM results from close interaction between the HR department and line managers charged with the responsibility of optimizing their own point and output. The HR department would certainly develop all the tools and procedures, but HRM implementation is now viewed most certainly as a joint responsibility.

b.) EVOLVING AN HR POLICY

Just strategies and policies have been developed for the utilization of finance and physical resources, virtually all managers now recognize the important

developing policies for guiding managerial decisions in the field of HRM, An HRM policy guides management in identifying and implementing appropriate learning and developing activities for resolving organization problems or exploiting new business opportunities. It ensures that supervisors and managers encourage on-the-job applications of the skills, knowledge and attitudes gained by participants in HR development activities. It helps to establish career development mechanisms and assess learning needs so that both the growth potential of employees as well as of the organization, are released. Finally, an HRM policy can establish norms for financial investments in human resources.

c.)TOP MANAGEMET COMMITMENT

HRM efforts are not likely to succeed unless top management is highly committed. The chief executive should have a high degree of commitment to HRM and should be willing to communicate it to employees. Investment in developing people is not likely to give short-term, dramatic results. This is because both managers and workers require them to acquire new competencies—specially managerial, human and conceptual skills. Therefore, the chief executive should indicate this faith in HRM. He should have the patience and the perception to notice the growth and development of his employees and he should communicate his commitment continuously.

d.) INVOLVEMENT OF LINE MANAGERS

HRM implementation is ultimately in the hands of line managers. Line managers work under pressure and are continuously under tension. In such conditions, it is understandable if a line manager does not perceive his job as also involving the development of his subordinates. He tends to forget this role in the process of meeting day-to-day task requirement and crisis situations. Some years ago, managers used to perceive developing employees as the role of top management or that of the training department. Today, this has undergone a radical change. Most line managers accept development of subordinates as an integral part of their role. Periodic reviews, get-togethers, workshops, departmental meetings and training programs are useful ways of maintaining the involvement of line managers. Most organizations that have introduced new HRM systems has one or two-day initiation workshops, half-day review seminars and task force meetings as mechanisms for involving line managers.

e.) CLEAR DEFINITION OF HR DEPARTMENT RESPONSIBILITY

The HRM functions must concentrate on ways to make people more productive especially on ways to improve the employees’ job skills, their motivation the quality of their work life and the professional skills managers. The HRM function must not be diluted by saddling the HR department with

unrelated responsibilities such as public relations or stores. In sum, the HR function must be allowed to concentrate on people-related business issues involving productivity and cost containment.

f.) BUILDING SUPPORTIVE INTERNAL AND EXTERNAL RELATIONS

Maintaining relations involves both internal and external contacts. Internally, there are supervisors, other managers, executives, and various work units, the unions, and different site human resources, special groups which could be both formal and informal. There are also numerous groups outside or external to the organization, with whom the HR manager should maintain relations. These groups would include other companies, professional bodies, industrial councils, apex coordinating bodies, federations, chambers, associations, government-appointed committees, lobby groups, political organizations etc.

2.11 STATUS OF HUMAN RESOURCES MANAGEMENT TODAY AND EXPECTATONS FOM HUMAN RESOURCES MANAGERS

The increased status of human resource management can easily be understood by tracking the growth of the responsibilities and importance assigned to it over the last several years. Human resources departments were once called the “Health and Happiness” departments. The people asked to deal with the human resource issues were often individuals who were past their prime. The human resource department was seen as the place where less productive employees could be placed with minimal damage to the organizations ongoing operations. Individuals in the human resource department were perceived as those responsible for planning company picnics, preparing muster rolls or arranging retirement parties. Human resource administration, as an activity, was deemed a necessary, but unimportant, part of the organization.

Yet, as the field of management began to mature, more emphasis began to be placed on the people manning the organization. Studies revealed that organizing people for the work they had done influenced their productivity. Employees were becoming more demanding in what they wanted from their jobs. At the same time, society, by means of laws and legislation, was placing new demands on employers. The vital nature of human resource management and its overall impact in modern organizations came to be recognized and with it, the influence of HR professionals began to increase by leaps and bounds.

Both historical and environmental forces created an urgent need for high-quality human resource management in contemporary organizations. No longer could the human resources department be treated as a”detour on the road to success.” The human resources of the organization just had to be managed. Thus, whereas about fifteen years ago, senior human resource

executives reported to the third level of management, now senior HR professionals report to first or second levels in the hierarchy. Today, many senior HR executives sit on the board of directors of corporations and represent the HR point of view. The organization-wide impact of human resource management, coupled with the vital nature of the organizations. A clear trend has emerged wherein a higher and higher proportion of HR directors either report to the very top of the management pyramid or become chief executives themselves.

Today, top management looks the HR department, as it does to a manager, to control costs, to enhance competitiveness, and to add value to the company in everything it does.

The HR professionals in the coming decade, must become a more high motivated, bottom line manager, completely in tune with the needs of the organization’s top management. The thrust is to be proactive – anticipate events, not just reacting to them – scanning the internal as well as extern horizons, alerting management to the issues and problems likely affect the organization and suggesting ways and means of addressing them.

2.12 CONTEMPORARY CHALLENGES IN HRMThere can be little doubt that human resource management in the 21st

century faces some of the biggest challenges since its definition as a staff function some ninety years ago. They represent challenges in contemporary HR management and may be broadly classified as follows:

1) Higher Levels of Education and Expectations

Members of today’s work force are better educated, have higher aspirations about participation and have more expectations about equity and just dealings in the work situation. As levels of education have continued to increase within the population, and therefore the work force, values and expectations among employees have risen. Technically qualified human resources with diplomas or degrees have proliferated. This has resulted in an emphasis on increased participation by employees at all levels. Organizations, therefore, have to develop a more flexible approach to all aspects of HRM

2) Changing Workforce Demographics and Lifestyles

Another important challenge for HRM is the changing nature of the workforce. Specifically, the dramatic increase of women and the reserved categories and also the minorities, has resulted in the need for organizations to reexamine policies, practices and values. The promotion of the women in the workforce has increased dramatically and will continue to do so. Lifestyle considerations also play a significant role in the organization’s ability to recruit or transfer people. Where people are willing to live and work depends on a whole host of factors which include personal convenience and preferences, family commitments, desire for improved civic facilities, etc.

over the years, these and other factors have become serious issues for a greater and greater proportion of workers.

3) Corporate Re-organization

In the free economies of the world, acquisitions and mergers, instances of one corporation purchasing another or two corporations joining forces have displayed a distinct upward graph and in the new, liberalized Philippine economy, these trends have already begun to acquire a distinct visibility. The potential changes faced by individuals in the company undergoing acquisition as well in the acquiring organization, have been listed by Fisher, Schoenfeldt and Shaw as follows:

a) Loss of jobb) Job changes, including new roles and assignmentsc) Transfer to new geographic locationd) Changes in compensation and benefitse) Changes in career possibilitiesf) Changes in organizational power, status and prestigeg) Staff changes, including new colleagues, bosses and subordinatesh) Change in corporate culture and loss of identify with the company.

4) Economic Conditions

Economic conditions, both at home and abroad, have a strong influence on human resource management. International competition among organizations is becoming more intense with each passing day. Increased management and entrepreneurial capability in many countries, strong competition for energy and raw materials, the breaking down of trade barriers, have all intensified competition. Equally, organizations expect their human resource departments to play a constructive and significant role in these areas. This is especially true of the Philippines since she started on the liberalization process.

5) Technological Explosion

Technological innovations and improvements are also creating rapid change. Automation, robotics and computerization have grown at amazing speed. The old concepts of work have undergone dramatic changes. The transistor, the micro-chip, the laser beam, the personal computer (w/ the recently introduced lap-top version), the cellular phone, the fax machine have all contributed to the continuously changing nature of products and jobs. Along with this, data availability and the power of computer analysis have considerably expanded the complexity of all decisions. Changes have been coming so fasts that organizations have realized that they must perforce prepare for a great range of human resource flexibility.

6) Quality of work Life

Broadly speaking, the scope of QWL straddles the ff items:a) Adequate and fair compensationb) Non-discriminatory social integration in the workplacec) Due process and privacyd) Appropriate balance of worke) Codetermination or the concept of giving workers a formal voice in

managerial decisionsf) Interpersonal skills and teamworkg) Employee developmenth) Job enrichment and job rotationi) Responsiveness to employee concernsj) Safe and healthy work environmentk) Opportunity for continued growth and security

7) Achievement of Competitive Advantage

Modern HRM practices must aim at achieving what has come to be known as ‘competitive advantage’. In a very simple sense, competitive advantage refers to the unique benefits that an organization can offer to its customers – benefits that will differentiate it from its rivals. The benefits can range from lower prices for equivalent services offered by competitors, higher quality of products, superior after-sales service, guarantees on trouble-free performance or even special extra advantages of products or services, the consequence is competitive advantage.

8) The Bottom Line

Another ever-present reality in today’s organizations is the need to substantiate the cost-effectiveness of programs, approaches and policies. Top management is increasingly stressing the importance of being able to know in financial terms, the extent to which the benefits of a policy or program outweigh the costs. Although human resource programs can and do have a significant impact on profits, not enough has been done so far to evaluate them in these terms. But this has to change and quickly. A staff department such as HR must be able to demonstrate that what it does is vitally important to the success of the organization and that the procedures it suggests, provide positive results. Otherwise, and quite rightly, the HR department will be perceived as nothing more than one of “happiness

vendors”. The HR staff must be able to demonstrate realistically, the impact of their programs on the key indicator of corporate health – the bottom line.