MGNT 21

Chapter 1
Introduction to Human Resource Management
Human Resources - the people who work in a company or an organization also the
department concerning the employee management
Personnel Administration – another term for Human Resource Management.
Human - the skilled workforce in an organization.
Resource - limited availability or scarce.
Management: how to optimize and make best use of such limited or scarce resource so
as to meet the organization goals and objectives.

Human resource management is focused on a number of major areas, including:

 Recruiting and staffing
 Compensation and benefits
 Training and learning
 Labor and employee relations
 Organization development
Frederick W. Taylor
- known as the father of Scientific Management
- "a fair day's pay for a fair day's work." In other words, if a worker didn't achieve
enough in a day, he didn't deserve to be paid as much as another worker who was
highly productive.
Robert Owen
- Father of Personnel Management
-created a Principle of 8 hours day work, 8 hours rest and 8 hours sleep.
The Hawthorne effect
- refers to a type of reactivity in which individuals modify an aspect of their behavior in
response to their awareness of being observed.
Approaches to Human Resource Management
Strategic Approach 
- focuses on people management programs and long-term solutions.
- stresses organizational development interventions, achieving employee
organizational fit, and other aspects that ensure employees add value to the
organization.
Management Approach 
- HRM is a part of general management.
- Management is nothing but managing people in the workplace.
- Managers at all levels are responsible for managing their employees or
subordinates.

Human Resource Approach

- People are human beings with a lot of potentials and intellectual abilities.
- It is important to treat people with respect and dignity.
Commodity Approach
- People are a commodity.
- They are viewed as a cog of a machine.
- People can be hired and fired through money.
- It is money that matters most.
- There is a saying, “money is sweeter than honey.”
- This approach views people as an economic man.

Proactive Approach
- HR managers must anticipate the challenges or problems before they
arise.
- “Prevention is better than cure”.

Reactive Approach
-occurs when decision-makers respond to problems

Equal Employment Opportunity (EEO)

Equal Employment Opportunity (EEO) is a right every job applicant has

throughout a hiring process. It refers to the protection job candidates have against
discrimination on the basis of their race, religion, sex or national origin, among other
qualified characteristics
 Chapter 2
Job Analysis and Talent Management
 A job is a regular and official activity that you do, and receive money (a salary)
for your activity. It is also called a profession or an occupation.
 The word work is more general than “job” – whereas “job” is a specific
occupation/profession, “work” refers to general efforts and activities done to
accomplish a goal.
 Work can be done both inside an official job and outside a job.

Job analysis is the process of gathering and analyzing information about the content
and the human requirements of jobs, as well as, the context in which jobs are
performed.
Methods of Collecting Job Data
Observational Method - job analyst carefully observes the job holder at work and
records what he or she does, and how much time is needed for completion of a given
task.
Interviews - interviews the job holder and his/her supervisor to elicit information about
the job. Usually, a structured interview form is used to record the information.
Questionnaire
Checklists – A checklist is similar to a questionnaire, but the response sheet contains
fewer subjective judgements and tends to be either-yes-or-no variety..
Technical conferences - services of supervisors who possess extensive knowledge
about a job are used
Diary - requires the job holders to record in detail their activities each day.

Job description or (JD) is a written narrative that describes the general tasks, or other
related duties, and responsibilities of a position.

Chapter 3
Manpower Planning and Recruiting
Stages of HR Planning
Forecasting is the process of making predictions based on past and present
data and most commonly by analysis of trends.
1. Determine Labor Demand
-Quantitative Methods and Qualitative Forecast
2. Determine Labor Supply
-For forecasting supply of human resource we need to consider internal and external
supply.
-Supply forecast is the estimate of the number and kind of potential personnel that could
be available to the organization.
Goal Setting and Strategic Process
According to Locke and Latham, there are five goal setting principles that can improve
our chances of success:
Clarity
Challenge
Commitment
Feedback
Task complexity
Five Steps in Strategic Planning
Step 1: Develop a Vision Statement
Step 2: Define Your Mission Statement
Step 3: Evaluate the Competitive and Operational Environment
Step 4: Establish Company Goals and Objectives
Step 5: Assign Accountability

Program Implementation And Evaluation

Implementation is the process that turns strategies and plans into actions in order to
accomplish strategic objectives and goals.
An evaluation plan is a written document that describes how you will monitor and
evaluate your program.
Effective recruitment means more than hiring the right person for the job.
Sources of Recruitment of Employees: Internal and External Sources
Internal Sources:
Best employees can be found within the organization
External Sources:
All organizations have to use external sources for recruitment to higher positions when
existing employees are not suitable.

Chapter 4
Job Posting
-is the official advertisement of an open position for which the company is actively
seeking a new-hire.
How to Write a Job Posting:
1. Introduce your company and your open position
2. Write your Job Description
Step 2: Managing Responses
Step 2: Managing Responses
Step 2 Managing Responses
Responses can be thru:
Resume
Hard Copy
Thru email
Short Messages
Text
Call
Applicants should receive timely communication from the recruitment personnel to
inform them of their status in a search process.
Screening Applicants
Application phase: Hitting the road
1. Screening Resumes
Resumes are the most traditional way of showcasing skills and experience to
potential employers.
The resume format
 Step 2: Managing Responses
Step 2: Managing Responses
Step 2: Managing Responses
Step 2: Managing Responses
Step 2: Managing Response

Step 2: Managing Responses

Unexplained job gaps
2. Screening cover letters
you can figure out about the candidate through cover letters:
Motivation for the role and attitude
Strengths and weaknesses
Future career goals
Consistency between resume and cover letter
Clear structure
Phone screen: Making the first move
Assessments: Checking the essentials

How to Interview Candidates Effectively

1. Create a job description
2. Prepare your questions
3. Take notes
4. Ask right questions
5. Listen

STAR method – is a technique used by interviewers that enables candidates to provide

evidence of their skills, credentials, experience by answering questions using the STAR
method:
Situation, Task, Action and Result
 Chapter 5
Training and Development
Training – development and delivery of information that people will use in their jobs.
Development – refers to the learning involvements that make people better.
Visual (Learning Style) – people who likes to see when learning.
Auditory (Learning Style) – people who learns better listening.
Kinesthetic – learners who acquire knowledge by doing something.
Pedagogy – the art and science of helping kids learn.
Andragogy – the art and science of helping adults learn.
ADDIE – method used by professionals for training employees
Analysis, Design, Development, Implementation and Evaluation

Training process
Needs analysis
Analysis –task needs analysis for training new employees
- performance analysis for training current employees
Instructional design
Validation
Implementation
Evaluation

Training Methods
On-the-job Training
-also known as OJT is a hands-on method of teaching the skills, knowledge and
competencies needed for employees to perform a specific job within the workplace.
Coaching and Mentoring
-mentoring defined, a development-focused relationship with a domain relevant mentor
who passes on their skills and experience to mentee.
-coaching defined, a development-focused relationship with a specially trained coach
who provides guidance to a client on their goals and helps them reach full potential.
Both encourage self-improvement and provide a safe setting for honest sharing.
Role Play
-to act like someone else (profession), especially as part of learning a new skill
Elearning or Electronic learning
-delivery of learning and training through digital resources.
Classroom or Instructor-Led Training
- overhead projector
-blackboard or whiteboard
-storytelling
Stimulation training – involves the use of basic equipment or computer software to
model a real-world scenario.

Chapter 6
Performance Management and Appraisal
Employee performance is defined as how an employee fulfills their job duties and
execute their required task
-effectiveness, quality, and efficiency of their output.
Performance management is corporate management tool that helps manager monitor
and evaluate employees’ work.

Performance Appraisal
-regular review of an employee’s job performance and overall contribution to a
company.
Types of Performance Appraisal
1. Management by Objectives
2. 360 degree feedback
Self-appraisal
Managerial reviews
 Peer reviews
Subordinates Appraising Manager (SAM)
Customer or Client Reviews
3. Psychological Appraisal
4. Human Resource (Cost) Accounting Method
5. Behaviorally Anchored Rating Scale (BARS)

Chapter 7
What is Employee Retention ?
Employee retention refers to the various policies and practices which let the employees
stick to an organization for a longer period of time.
Why employees quit: 10 evidence-based reasons
– A lack of appreciation
– Feeling burnt out
– Lack of flexible work options
– Wanting to work remotely
– Poor mental health
– Relationship with management
– Corporate culture
– Lack of engagement
Employee Satisfaction only indicates how happy or content your employees are. It does
not address their level of motivation, involvement, or emotional
– Unhappy at work
– Lack of career growth
Motivation plays an important role in employee satisfaction and eventually employee
retention.
Motivation acts as a catalyst to an individual’s success.
 Chapter 8
Compensation
-set of rewards that organization provide to individuals in return for their willingness to
perform various jobs and tasks within the organization.
Base wages and salaries are the hourly, weekly or monthly pay that employees receive
in exchange for their work.
Thomas Patton suggests that in compensation policy, there are criteria for
effectiveness.
1. Adequate to meet the needs of the employees and to acquire and retain qualified
personnel.
2. Equitable, each person should be paid fairly, in line with his effort, abilities and
training.
3. Balanced – pay benefits and other rewards should provide reasonable total reward
package.
4. Cost- effective – taking into consideration the company’s ability to pay.
5. Secure – Pay should be enough to help an employee feel secure and aid him in
satisfying basic needs.
6. Incentive-providing- should motivate effective an productive work or reward desired
behavior.
7. Acceptable to the employee – employee should understand the pay system being
followed by the company.
8. Complies with legal regulation

Main components of Compensation

1. Direct Compensation
a. base pay
b. base pay progression
c. variable pay
Wages vs. Salaries
2. Benefits and perquisites
3. Indirect Compensation
a. organizational culture
b. intrinsic value
c. career opportunity

Determining Pay rates

Job evaluation
I. External factors
A. Market Factors
B. Existing Pay level in the community
C. Government regulations and laws
II. Organizational Factors
A. Type of Industry
B. Profitability and company’s ability to pay
C. Unionized or non
D. Size of the company
E. Capital or labor intensive
F. Value of the job – contribution to the company

Chapter 9
Pay for Performance, Financial Incentives and Additional Benefits

Before 1970, benefits were usually called “fringe benefits”

Categories of Employee Benefits
1. Those that are granted by management at its own initiative or through collective
bargaining negotiations.
2. Those required by government legislation
Philippine Mandatory Employee Benefits and Contributions
  Social Security System (SSS) – created to provide private employees and their
families’ protection against disability, sickness, old age and death.
 The Government Service Insurance System (GSIS) is the equivalent system for
Philippine government employees.
 Home Development Mutual Fund (HDMF) –also known as, Pag-IBIG Fund, is a
provident savings system supplying housing loans for private and Philippine
government employees and to self-employed persons who elect to join the Fund.
 Philippine Health Insurance Corporation (PhilHealth) – administered by the
Philippine Health Insurance Corporation and provides employees with practical
means of paying for adequate medical care in the Philippines.
What is Pay-for-Performance Compensation?
-refers to performance-based pay programs where an employee is incentivized and
rewarded for achieving goals or objectives.
General Categories of Pay-for-Performance Compensation
1. Merit Pay Increases
-increase to an employee’s base pay due to high performance.
-typically delivered in annual basis, and are budgeted for as budgeting process.
2. Variable Pay Programs
a. Incentive Programs – incentive plans have specific performance targets that are set
for the relevant performance period before the period begins and payouts are
contingent on meeting the criteria. The criteria may also establish lower or higher
payouts based on the extent to which performance targets were met.
b. Bonus Programs – Payouts are contingent on completing specified task and
applicable conditions established before the task and conditions were met.
c. Recognition Programs –generally establish broad guidelines before the program is
implemented and awards may vary based on the guidelines.
Salary Increments
Increments means an increase in something
Salary increments simply an increase in your salary – a pay raise.
Pay for Performance Compensation can come in many different forms depending on:
organization’s budget, compensation philosophy and organization goals.
Implementing an Effective Pay-for-Performance Model
1. Qualitative Performance – activities related directly to customer experience and
outcomes, such as sales, customer satisfaction, employee engagement, employee
productivity, etc.
2, Quantitative Performance – activities related to the operations side of the
organizations, such as programming, accounting, administration, etc.
Methods to Analyze Benefit Costs
1. Annual Cost Method – simply reports the total annual cost each benefit
2. Cost Per Employee Per Year – simply reports the total annual cost each benefit by
the number of employees receiving benefit.
3. Percent of Payroll – shows the cost of benefits relative to the amount spent for wages
and salaries.
4. Cost Per Hour Figure – shows the cost benefits per employee per hour.

Chapter 10

Employee Relations and Employee Discipline

Importance of Employee Relations

         Employee Relations is characterized by some as a union avoidance strategy.

Discipline is not synonymous with punishment. It is an employer’s action against

an employee for infractions of company policy or rules.

Disciplinary actions are the most appropriate avenue in which to address

misconduct directly related to the performance of assigned duties.

Prevention of Employee Misconduct

1. Setting an example by their own conduct, maintaining high professional and
ethical standards
2. Proving a high-quality work environment that is conducive to innovation and
increased productivity
3. Establishing and communicating clear guidelines concerning their expectations
for the operation of their office
4. Establishing objective, understandable, obtainable and measurable performance
standards and communicating them clearly to employees
5. Monitoring performance and giving frequent feedback 
6. Holding e, employees accountable for results and recognizing and rewarding
good performance
 7. Providing opportunities for individual growth and development, including formal
and on-the-job training mentor, and role models for employees

Categories of Difficult/Problem Employees

1. Ineffective employee/with unsatisfactory performance
Employees whose performance is due to factors directly to work are
theoretically the easiest to work with and to adjust.
2. Rule Violators
Prohibition of things such as possession of deadly weapon, use of alcohol
or narcotics etc.
3. Illegal or Dishonest Acts
Theft, embezzlement, misuse of company facilities or property or falsifying
records.
4. With Personal Problems
5. Substance Abuse

Addressing Employee Conduct Problems

1. Discuss any misconduct or performance problems directly with the employee
2. Clearly explain expectations to the employee and review any exhibiting
problems
3. If applicable develop a plan with the employee directed at helping to improve
misconduct
4. Give the employee periodic and specific feedback 
5. If misconduct continues, the supervisor may choose to orally admonish the
employee, providing a strong message that further incidents of similar
misconduct may lead to a more formal action 

Discipline or Infraction Cases

1. Against Person (physical injury, assault, homicide, murder)
2. Against Property (misuse and damage to property)
3. Orderliness/ Good Conduct (fighting, quarreling etc.)
4. Attendance and Punctuality (timekeeping violations, abseentism, tardiness etc,)
5. Morality (immorality and sexual harassment)
6. Conflict of Interest
7. Non-Performance (insubordination, negligence of duty, inefficiency etc.)
 8. Honesty/Integrity (falsity, fraud, dishonesty, breach of trust etc,)
Approaches to Discipline
1. Hot Stove Rule by Douglas McGregor
-consequences when a person touches a hot stove.
a. Warning System
b. Immediate Burn
c. Consistency
d. Impersonal
2. Progressive Discipline
-sequence of penalties are administered, each one more severe than the previous one.
3. Positive/Corrective Discipline
- employees’ mistakes are used to help them learn how to change.
4. Negative Approach
-emphasizes the punitive effects on undesirable behavior
5. Preventive Discipline
-taken by the company to encourage employees to follow standards and rules so that
infractions do not occur.
6. Counseling Approach
-erring employee is counseled rather than progressively penalized for the first few
breaches of rules and regulations.
Elements of a Discipline Program
1. Code of Conduct – handbook that is provided to every employee explaining what
is expected and unacceptable behavior.
2. Knowledge of Disciplinary punishments – employees should know what penalties
would occur with certain offenses.
3. Appeal Procedure – employees should have the opportunity to voice their side of
the story.
4. Reservation of Right – include statement that says you have the right to modify
the policy,
5. Fair Discipline – discipline must be applied consistently to all employees in
unbiased way.
The Disciplinary Process
1. Informal Talk – may occur in cases where the misconduct is very minor.
2. Verbal Warning – a simple comment by a supervisor to warn employees that
certain acts are not acceptable.
3. Verbal Reprimand –the supervisor informs the employee that the situation is not
acceptable and improvement is required.
4. Written Reprimand – a written description of the problem and the disciplinary
action.
5. Suspension – if an employee fails to respond to the written reprimand and
persists in wrongdoing, suspension is applied.
6. Demotion – when it becomes necessary to use against the employee before
termination.
7. Discharge/Dismissals –final step in the disciplinary process. Most drastic
disciplinary step in the company can take toward an employee.

GROUNDS FOR DISMISSAL

a. Unsatisfactory Performance
b. Misconduct/insubordination
c. Lack of qualifications for the job
d. Changed requirements of the job

DEALING WITH DISMISSAL

1. Senior Management Approval. No employee should be discharged without prior
approval of senior manager.
2. The need for a business related rationale. Employees can raise discrimination
claims if the org cannot provide a reasonable explanation for termination.
3. Pre-termination review of the personal file. A knowledgeable individual should
review the personnel file and the soundness of the decision.
4. Communicating the discharge decision –the termination itself should be
communicated to the employee in a calm business-like manner
 5. Exit Interviews – these are useful, regardless of the reason for the employee’s
departure from the organization.
6. Severance Agreement and Releases – must be supported by “considerations”

DUE PROCESS
The concept that employees have the right to be treated fairly when being disciplined.

DISCIPLINE MISTAKES
1. Being Inconsistent
2. Losing your temper
3. Praising too little or too much
4. Avoiding disciplinary action entirely