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STRATEGIC HUMAN RESOURCE MANAGEMENT
Wright and McMahan (1992) defined SHRM
as ‘the pattern of planned human resource deployment
and activities intended to enable the firm to achieve its
goals’.
This definition implies the following four components
of SHRM:
1. Organization’s human resources (people) as the
primary source of competitive advantage of the
organization.
2. The activities highlight the HR programs, policies,
and practices as the means through which the people
of the organization can be deployed to gain competitive
advantage.
3. The pattern and plan imply that there is a fit between
HR strategy and the organization’s business strategy
(vertical fit) and between all of the HR activities
(horizontal fit).
4. The people, practices, and planned pattern are all
purposeful, that is, directed towards the achievement of
the goals of the organization
Adopting an investment Perspective:
The success or failure of an organization largely
depends on how human resource is used to utilize other
resources available to the organization. As a result, the
focus of human resource management has shifted
towards increasing the return on investment by
maximizing the productivity of human resource
(Mohamed, 2013).
Evaluating: Quality, Costs and benefits of HR
(crucial to orgs much like any other Capital
Investment).
Human Resource = Human Asset (Mello, 2005)
 Human Resources cannot be duplicated
 Physical Assets = can be imitated by competitors;
Human Resource Capabilities = cannot be duplicated.
 Process, Decision Making Process, and ability to
analyze complex data and environment = owned by
individual employees.
Sources of Employee Value
• Technical Knowledge (market, customers, process,
and environment)
• Ability to Learn and Grow (openness to new ideas,
acquisition of knowledge and skills)
• Decision Making Capabilities
• Motivation
• Commitment
• Team work (Interpersonal skills, leadership skills).
Risks Involved in Investing in Human Assets
Adopting an investment perspective considers risk of
investment in HR:
 The organization also finds it more difficult to retain
current employees who see no opportunities for
growth and advancement.
 Employee turnover weakens the competitive position
of an organization.
 Organizations need to develop an appropriate and
integrated approach to HRM to ensure that
employees stay long enough with the organization
and contribute to an acceptable return on investment
(ROI) relative to the skills and knowledge they have
acquired.
Valuation of Assets
 Financial Assets/Capital (equity, securities and
investments & Acc. Receivables)
 Physical Assets/Capital (plant, land, equipment,
and raw materials)
- Both Financial and Physical are relatively easy to
measure via accounting practices.
 Market Assets/Capital (Goodwill, branding,
customer loyalty, distribution networks, product
lines and patents, trademarks and copyrights).
 Operational Assets/Capital (management
practices, the structure of work, and the use of
technology)
- Both Market and operational assets/capital are a bit
more challenging to measure, but accounting
practices have been developed that can place a
general subjective value on such assets.
 Human Assets/Capital (Employee education
levels, knowledge, skills, competencies, work
habits and motivation and relationships with co-
workers, customers, suppliers, regulators, and
lenders).
- Human Assets/Capital are very difficult to measure;
attempts to do so are at the forefront of current
research being conducted in HR management.
- Direct results of difficulty in measuring human
assets = valuation of current; future human assets
(When orgs are facing economic and financial
challenges)
Understanding and Measuring Human Capital
How do we measure human capital?
1. HR benchmarking and metrics
1. “Benchmarking” -comparing HR policies and
practices with those of other organizations.
Benchmarking Exercise:
 Retention Rates
 Cost per employee to recruit
 Cost per employee to train and compare the figures
with other organizations inside and outside of its
sector
2. The balanced scorecard - developed by Robert
Kaplan and David Norton. The scorecard presents a
holistic view of a company’s current state of health by
monitoring its activity across all areas via key
performance indicators (KPIs).
- a series of tick boxes that measure: financial
performance; company growth; assessing the value of
business processes; customer relationships, and
investment programs.
- scorecard measures intangible and tangible values
3. Accountancy-based Valuation and Economic
Value Added (EVA) models- traditional accounting
metrics. Creates a numerical value for human capital
using accountancy terms and often values employees
as assets, scored only 3 per cent.
-takes NOPAT and subtracts capital
 Skills Inventory - a recording of the skills,
capabilities, qualifications, trainings, and
certifications of your employees. (May also include:
employees’ preferences, career goals, and other
developmental information)
- Purpose: for an organization to have a database of
its resources for more effective HR management.

 Personality
Human Resource Metrics - HR metrics are a
vital method for quantifying the impact and cost
of HR processes and employee programs.
-It is also a strategy for measuring the progress
or collapse of HR actions.
Areas of HR Metrics and HR Metrics Example
1. Organizational Performance
 Turnover percentages
 Statistics on why personnel are leaving
 Absence percentages and behavior
 Recruitment
2. HR Operations
 HR efficiency
 HR effectiveness
3. Process Optimization - helps to analyze how we
do what we do in
4. Human Resource Management
Factors Influencing How Investment Oriented an
Organization
1. Investment-Oriented Organization - sees people
as central to mission & strategy
-Mission statement & strategic objectives espouse
value of human assets in achieving goals
-Management philosophy encouraging
development & retention of human assets
-Does not treat human assets in same ways as
physical assets
2. Attitude towards Risk
-In general, investment on human resource is risky.
-Human assets never absolutely “owned”
-If organization view investment on human
resource necessary for realizing strategic
objectives they often develop strategy to have
ownership of employee services such as long term
employment, long term benefits, opportunities for
personal and professional development
3. Nature of Employee Skills
-Employee skills that are specific and cannot be
applied to other organization are less risky
-Customized software knowledge (UBL using
Unisoft)
-Marketable skills applicable and demand in other
organizations
-Need to apply retention strategy (Employee Stock
Ownership Plan or ESOP)
4. Utilitarianism Approach
-Utilitarian (“Bottom Line”) Mentality
-Attempt made to quantify employee worth through
cost-benefit analysis
-“Soft” benefits of HR programs difficult to
objectively quantify
5. Availability of Outsourcing
-Given availability of cost-effective outsourcing,
investments in HR should produce highest returns
& sustainable competitive advantages.
Effective HRM Practices
- Employment Security
- Incentive pay
- Selectivity in Recruiting
- High Wages
- Employee Ownership
- Information Sharing
- Participation & Ownership
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- Symbolic Egalitarianism
- Self-Managed Teams
- Wage Compression
- Training & Development
- Promotion from Within
- Cross-Utilization & Cross-Training
- Taking the Long View
- Overall Philosophy
- Measurement of Practice
WORKFORCE DEMOGRAPHIC CHANGES AND
DIVERSITY
 Traditionalists - no longer in the workplace, born
between 1922 and 1945.
 Baby Boomers (1946 and 1964) -refers to the post-
war generation
 Generation X (Gen X = 1965 and 1980)
 Generation Y (Gen Y= 1981 and 1997)
Generational Diversity and Sexual Orientation
Generational Diversity - is a group of people
defined by age (those who were born during a
certain era) they share similar experiences growing
up and their values and attitudes tend to be similar.
1. Traditionalists (1922 and 1945) - grew up during
the chaos of the Great Depression and World War
II. The Traditionalist believes in hard work and
views leisure time as a reward for hard work.
Education was mostly inaccessible to this
generation, so they view education as a dream.
- The people of this generation never complain, are
team players, and want to help others succeed.
Approaching retirement age or already being
settled into retirement.
2. Baby Boomer (1946 and 1964) - growing up in a
time of prosperity and then social turmoil, the Baby
Boomer has learned to feel entitled and self-
absorbed. Members of this generation are very
driven and believe they can accomplish anything
they put their mind to in the workplace. The Baby
Boomers work hard, but more for self-gratification
than for what is best for the company. Education is
viewed as a right, not a privilege.
- people of the Baby Boomer Generation are used to
getting their own way, and they are often viewed as
arrogant and narcissistic. They love challenges and
are highly competitive.
3. Generation-X (1965 and 1980)- Members of
Generation-X grew up in a volatile period when
companies first made plans to downsize. This level
of uncertainty shaped the Generation-X’s attitude
and loyalty toward work. They became less loyal to
the company with a desire to work only to live,
instead of living to work.
- people of Generation-X are self-centered, self-
absorbed, and self-indulgent. They value flexibility,
work-life balance, fun in the workplace, and are very
comfortable with change.
4. Millennial Generation - members of the Millennial
Generation grew up in an age of technology with
around-the-clock access to information and people.
They are very flexible in their work practices and
often mix leisure and business, taking work/life
balance one-step further than the Generation-X
group.

- They are well-organized, confident,
technologically savvy, and like collaboration. Still
approaching employment age.
Sexual Orientation - is an enduring pattern of
emotional, romantic or sexual attraction to men, women
or both sexes.
- is the trait that predisposes us to experience sexual
attraction to people of the same sex as
ourselves (homosexual, gay, or lesbian), to persons of
the other sex (heterosexual or straight), or to both
sexes (bisexual).
-also refers to a person’s sense of identity based on
those attractions, related behaviors, and membership
in a community of others who share those attractions
Sexual Orientation Discrimination in the Workplace
- Sexual Orientation discrimination in the workplace
occurs when an employee is subjected to negative
employment action, harassment, or denial of certain
benefits because of their sexual orientation and this
situation are covered by the Equality Act.
Different types of Sexual Orientation
Discrimination
1. Direct discrimination means that workers or job
applicants must not be treated less favorably
because of their sexual orientation, their
perceived sexual orientation or because they
associate with someone of a particular sexual
orientation.
2. Indirect discrimination means that an
organization must not have selection criteria,
policies, benefits, employment rules or any other
practices which, although they are applied to all
employees, have the effect of disadvantaging
people of a particular sexual orientation unless the
practice can be justified. Indirect discrimination is
unlawful whether it is intentional or not.
3. Harassment includes behavior that is offensive,
frightening or in any way distressing. It may be
intentional bullying which is obvious or violent, but
it can also be unintentional, subtle and insidious.
It may involve nicknames, teasing, name calling or
other behavior which is not with malicious intent
but which is upsetting.
4. Victimisation is when an individual is treated
detrimentally because they have made a
complaint or intend to make a complaint about
discrimination or harassment or have given
evidence or intend to give evidence relating to a
complaint about discrimination or harassment.
Individual with Disabilities and Workers
Employment
Individual with disabilities means a person who has
substantial restriction in the capacity to carry on a
profession business or occupation or to participate in
social or cultural life by reason of enduring physical,
sensory, mental, health or intellectual impairment.
-People with disabilities may face multiple barriers that
make it harder to find or keep jobs.
Barriers:
- employers’ misconceptions about hiring and
accommodating a person with a disability
- inaccessible work spaces or equipment
- a lack of transportation to get to a work site
Few ways to overcome:
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- flexible work schedules
- personal assistance services may allow people with
disabilities
- help with transportation
Workers Employment usually based on a contract
where work is paid for. A worker is any individual
who works for an employer whether under a contract
of employment or any other contract where an
individual undertakes to do personally any work or
services. Workers are entitled to core employment
rights and protections.
Employees with disabilities have the same
employment rights as other employees under the
law. The Employment Equality Acts outlaw
discrimination on the grounds of disability in
employment, including training and recruitment
Ethical Behaviour - tends to be good for business
and involves demonstrating respect for key moral
principles that include honesty, fairness, equality,
dignity, diversity and individual rights.
Importance of Ethics In Human Resources -
Understanding the importance of ethics in human
resources is crucial for any business owner (local
start -up or multinational powerhouse)
- HR includes numerous ethical pitfalls that can
damage a company’s reputation or financial
sustainability if not handled properly.
Practices that Can Contribute to Ethical Behaviour
The HR personnel often are held to a high standard of
ethics because of the influence the HR has on:
• Productivity and livelihood of staff.
• Employees conduct themselves in the workplace
HR Professionals = responsible for adding value to the
organizations we serve and contributing to the ethical
success of those organizations
 Fair Treatment - ensuring that new-employee
orientation and training is a requirement for all new
workers (also at all levels of the org)
 Pay Equity
Assessment includes:
- - Analysing the company's wage and salary scales,
measuring how the company ranks against competing
businesses and industry leaders, and
- - Reviewing internal equity among workers performing
similar jobs and duties.
 Mutual Respect- HR department employee relations
specialists typically investigate workplace issues and
resolve employee complaints before they escalate to
formal matters or litigation, so they set framework for
conflict resolution, whether both employees, or
employees and their supervisors
- - Mediating differences is an HR practice that
encourages mutual respect and communication
- - administering employee opinion surveys
 Diversity - Objective: to provide equal employment
opportunities to a diverse population, in compliance
with prevailing laws, regardless of age, colour, race,
national origin, religion or generational preferences.
 HR practices that contribute to ethical behaviour
provides:
• Training and Development
• Mentoring
• Coaching
• Counselling for a diverse workforce

Business Sustainability - Requires organisations
to adhere to the principles of sustainable
development
Sustainable Development World Council for
Economic Development (WCED) - development that
“meets the needs of the present without compromising
the ability of future generations to meet their own
needs”
Important issues:
 economic efficiency (innovation, prosperity and
productivity)
 social equity (poverty, community, health and
wellness, human rights)
 environmental accountability (resource use,
climate change, land use, biodiversity and
pollution)
What Business Data Evidences Sustainability?
The provision of sustainability information to interested
parties should include progress against economic,
social and environmental targets covering issues such
as:
• economic value generated
• progress against resource efficiency targets
• volumes of wastes eliminated or recycled
• reductions in greenhouse gas emissions
• water minimisation
• training provisions for employees
• career development
• diversity information.
- There is no universally agreed definition for CSR
but it’s generally agreed that CSR is about
organisations ‘doing the right thing’ and going the
extra mile beyond legal requirements to reduce
negative impacts on the environment and society.
- It’s about giving something back to positively benefit
the environment, the community in which an
organisation operates and society as a whole.
STRATEGIC MANAGEMENT - The art and science
of formulating, implementing, and evaluating cross-
functional decisions that enable an organization to
achieve its objectives. (David, 2011)
- The set of decisions and actions resulting in the
formulation and implementation of strategies
designed to achieve the objectives of an
organization. (Pears and Robinson, 1988)
Models of Strategy - three distinct groups by Ellen
E. Chaffee
1. Model I - Linear strategy -focuses on planning
such that goals, and the means of achieving them,
are the results of strategic management.
-In linear strategy, leaders of the organization plan
how they will deal with competitors to achieve their
organization's goals.
2. Model II - Adaptive strategy -corresponds to the
notion of incrementalism
- Strategy is concerned with the development of a
viable match between the opportunities and the
risks present in the external environment and the
organization's capabilities and resources for
exploiting these opportunities.
-In adaptive strategy, the organization and its parts
change, proactively or reactively, in order to be
aligned with consumer preferences.
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3. Model III - Interpretive strategy -Like adaptive
strategy this approach sees the organization and
its environment as clearly related, but the
emphasis is placed on managers
-In interpretive strategy, organizational
representatives convey meanings that are
intended to motivate stakeholder in ways that favor
the organization.
The Strategic Management Process
Mission Statement
-It is the general thrust of the organization that is
anchored on its vision.
-It is the primal motivation of the organization, its very
reason for existence.
-enduring statement of purpose that distinguishes
business from other similar firms.
- “What is our business?”
- “What do I need to do for whom and how?”
Benefits of MS:
-To ensure unanimity of purpose within the organization
-To provide a basis, or standard, for allocating
organizational resources
-To establish a general tone or organizational climate
-To serve as a focal point for individuals to identify with
the organization’s purpose and direction, and to deter
those who cannot from participating further in the
organization’s activities
-To facilitate the translation of objectives into a work
structure involving the assignment of tasks to
responsible elements within the organization
-To specify organizational purposes and then to
translate these purposes into objectives in such a way
that cost, time, and performance parameters can be
assessed and controlled.
Analysis of the Environment
Environmental analysis (or external analysis) - an
objective assessment of the changing world in which an
enterprise operates, in order to have an ‘early warning
system’ for identifying potential threats and
opportunities
External Opportunities and Threats -Refer to
economic, social, cultural, demographic,
environmental, political, legal, governmental,
technological, and competitive trends and events that
could significantly benefit or harm an organization in the
future.
-A basic tenet of strategic management is that firms
need to formulate strategies to take advantage of
external opportunities and to avoid or reduce the impact
of external threats.
Environmental Scanning or Industry Analysis -The
process of conducting research and gathering and
assimilating external information
Freund emphasized that these key external factors
should be:
(1) important to achieving long-term and annual
objectives.
(2) measurable
(3) applicable to all competing firms
(4) hierarchical in the sense that some will pertain to the
overall company and others will be more narrowly
focused on functional or divisional areas.

Organizational Assessment -a systematic process for
obtaining valid information about the performance of an
organization and the factors that affect performance.
-focuses on the organization as the primary unit of
analysis.
Organizations are constantly trying:
(1) adapt (3) perform
(2) survive (4) influence
Organizations use self-assessment to enhance their
certainty of their own knowledge:
Take advantage of their strengths,
Improve their weaknesses,
Recognize opportunities, and
Prevent threats from escalating.
Framework -a number of models or frameworks for
conducting an organizational performance assessment
exist.
Choice of which framework (or combination of
frameworks) to use depends:
- the nature of the organization
- the purpose of the assessment
- the context in which the assessed organization
operates
Institutional and Organizational Assessment Model
(IOA Model) - one of the most comprehensive
frameworks for Organizational Performance
Assessment (OPA).
- This model views the performance of an
organisation as a multidimensional idea, that is, as the
balance between the effectiveness, relevance,
efficiency, and financial viability of the organization.
- organisational performance should be examined
in relation to the organisation’s motivation, capacity and
external environment.
Why is it important to conduct OSA? - this diagnostic
tool can help organisations obtain useful data on their
performance, identify important factors that aid or
impede their achievement of results, and situate
themselves with respect to competitors.
How is Organizational Self-Assessment
conducted? -OSA follow the tradition of a case study
methodology
Case Study -requires a research design that focuses
on understanding the unit (the organisation) and can
use a combination of qualitative and quantitative data. , -Measureable (make sure the goal can be measured,
Most Common Options Used In OSA
1. Observation (Site Visits) - provide vital
information on the facilities, physical artifacts, and have the time, money and resources to meet) *Relevant
interactions between staff of an organisation
2. Document Review- is used to follow the written
record of the organisation: meeting minutes,
reports, policies, etc. Interviews are a prime
source of data for organisational assessments
and should be conducted with a wide range of
respondents (both male and female).
3. Interviews and Surveys - are particularly useful
for gathering data from a large number of people
and for obtaining information regarding people’s
attitudes, perceptions, opinions, preferences,
beliefs, etc.
- These four data collection options can be used to
triangulate information and validate conclusions
Who can participate in an OSA? - If the assessment
is conducted by members of the organization:
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Advantage: There will be greater ownership of the
process
Drawback: There will be a greater commitment of staff
time: time to learn evaluation skills and time to conduct
the evaluation
If the assessment is conducted with the aid of external
evaluators and facilitators:
Advantages: Less use of staff resources; More
organizational evaluation experience
Drawbacks: Higher financial cost; Less ownership
within the organization.
When is OSA conducted? -Organizations usually
engage in self-assessments when they are at a turning
point in their history, or when decisions need to be
made about particular aspects of the organization.
Example:
• Strategic decision: Should the organization
grow, merge, shrink, change its mission?
• Program decision: Should programs be
expanded? Should two or several programs be
integrated? Should new services be offered?
• Financial viability decision: Should new
interviews be sought? Should funding sources be more
diversified and how? Should new approaches to
fundraising be identified?
Goals -Establish where you intend to go and tell you
when you get there.
-They help improve your overall effectiveness as a
company — whether you want to increase your share
of the market. Thus, making you more efficient.
-Goals are typically described in words
Objectives -are the specific steps you and your
company need to take in order to reach each of your
goals. They specify what you must do — and when.
-objectives often come with numbers and specific
dates.
Defining Organization Objectives:
-Know your strengths and weaknesses
-Ask yourself where do you want to be in 3 months, 1
year, and 5 years
-Think about who is contributing to the objectives
-Brainstorm with your employees
SMART
-Specific (be clear about what you want to achieve)
and you can recognise if you’ve achieved your goal).
-Achievable (check that your goal is something you
(ensure your goal is relevant to the direction you want
your business to head in
-Timely (set a realistic deadline for completing the
goal.)
- SMART goals can help you evaluate the goals you
wish to set. Think about whether they are realistic.
Having clear, well-defined goals can:
-Help your business grow
-Achieve your objective
-Improve teamwork and collaboration
-Help everyone understand the direction your business
is heading in.
Setting Strategies
“Strategy is the direction and scope of an organisation
over the long-term: which achieves advantage for the
organisation through its configuration of resources

within a challenging environment, to meet the needs of
markets and to fulfill stakeholder expectations”
(According to Johnson and Scholes)
There are 3 levels of strategy depending on the
different levels in the organisation:
1. Corporate Strategy: -Corporate strategy or
Company level strategy refers to the overall strategy
of the organisation that is set for a long term, sets
the tone for all the departments and demonstrate
how they can create more value by working together
than they would individually.
-Corporate strategy helps to structure the
organisation in a way that it is able to make the best
use of its resources to gain a competitive advantage
in the market.
2. Tactical Strategy -Tactical strategies provide teams
with clear directions to best perform a set of
initiatives within short term deadlines.
3. Operational Strategy: -Operational strategies are
concerned with resources, people and process 2. 2. Price-Skimming Strategy -A price-skimming
within the organisation.
- They help guide employees and determine a set of
activities (usual day to day tasks) that need to
performed in the right manner and at the right time.
Strategy and Vision
*Vision>Destination>Strategy>Action>Success
Vision
-It’s based on who/what you want to do.
-It’s why you’ve got an organization in the first place.
-It must be specific enough that everyone can use it to
decide if their work is moving the company forward.
Progress towards the vision must be measurable.
Strategy and Goals -Goals (which supported
Strategy are Critical) = Progress
Corporate Strategy -Corporate-level strategies
define a plan to hit a specific target needed to achieve
business goals.
Types of Corporate Strategy
1. Growth Strategy - Growth strategies look at
methods to get more revenues from the sales of
products or goods.
-Vertical and Horizontal Strategies
*Vertical strategy seeks growth by taking over
various components of the operations path.
* A horizontal growth strategy refers to a business
extending its reach of existing products or services
to new geographic areas or new target markets.
2. Diversification Strategy -Diversification strategy
looks at the company's products and services, and
then develops a strategy for successful marketing
and sales.
Two main diversification strategies exist:
(1) A single-business strategy = The single-
business strategy limits the number of products or
services to a few, if not one. A company using this
strategy seeks to be the leader in the niche.
(2) Dominant-Business Diversification Strategy
= Diversification is commonly associated with risk
minimization, whether in investing or business
operation. A diversification strategy also gives you
greater revenue potential if your company effectively
serves the needs of customers in each business
format.
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3. Stability Strategy -This strategy also requires
leaders to focus on customer retention.
4. Business Unit Strategies -focuses on driving a
specific business to full economic potential–whether
through an annual planning process, a
transformation effort or full turnaround. Such efforts
are all about making strategic choices and driving
change. The ultimate goal is to rapidly create a
proprietary set of actions that serve customers better
than the competition. Business unit strategy involves
making proprietary decisions on where to play and
how to win. Their goal is to help their clients drive
their businesses to full economic potential.
Types of Business Strategies
1. 1. Product Differentiation Strategy -Companies use
a product differentiation strategy to set themselves
apart from key competitors. However, a product
differentiation strategy can also help a company build
brand loyalty.
strategy involves charging high prices for a product,
particularly during the introductory phase.
-A small company will use a price-skimming strategy to
quickly recover its production and advertising costs.
- One disadvantage of a price-skimming is that it tends
to attract competition relatively quickly.
3. 3. Acquisition Strategy -A small company with extra
capital may use an acquisition strategy to gain a
competitive advantage. An acquisition strategy entails
purchasing another company, or one or more of its
product lines.
Difference Between A Corporate Strategy And
Business Strategy
Meaning
BS: Business Strategy is the strategy framed by the
business managers to strengthen the overall
performance of the enterprise.
CS: Corporate Strategy is stated in the mission
statement, which explains the business type and
ultimate goal of the firm.
Created By
BS: Middle level management
CS: Top level management
Nature
BS: Executive and Governing
CS: Decisive and Legislative
Relates to:
BS: Selection of plan to fulfill the objectives of
organization.
CS: Business selection in which the company should
compete.
Deals with
BS: Particular business unit or division
CS: Entire business organization
Term
BS:Short term strategy
CS: Long term strategy
Focus
BS:Competing successfully in the marketplace.
CS: Maximizing profitability and business growth
Approach
BS: Introverted
CS: Extroverted
Major Strategies

BS: Cost Leadership, Focus and Diffrerentiation
CS: Expansion, Stability and Retrenchment
Innovation -is an act of application of new ideas to
create some value for the business organization.
-Innovation requires collaboration, idea,
implementation, and value creation.
Collaboration -It is an action with someone to
produce something. It is a group work to done new
goods.
Idea- New ideas to help your organization stand
out.
Implementation- The act of putting a plan into
action or starting to use something new.
Value Creation- Performance of actions that
increase the worth of goods and services of the
business.
Creativity-is the characteristic of a person to
generate new ideas, alternatives, solutions, and
possibilities in a unique and different way.
Expert- Personal who has acquired knowledge
and skills.
Motivation- Is the reason for people's action
desire and needs.
Creative Thinking Skills- A way of looking at
problem or situation from a fresh perspective that
suggest a solution.
Creativity Vs. Innovation
C: The quality of thinking new ideas and putting
them into reality.
I: The act of the creative ideas into practice.
C: an imaginative process
I: a productive process
C: can never be measured
I: can be measured
C: related to the generation of ideas which are new
and unique.
I: related to introduce something better into the
market.
C: does not require money
I: requires money
Privatization -transferring of a business, industry, or
a services from public to private ownership and
control.
Methods of Privatization
Sale of the entire entity- The government sell the
entire public sector to private sector.
Initial Public Offering- The government issues
share to public offering to reduce government
takes.
Management Control- Not the private company
the government company transfer the
management control to the new company to make
it more accountable.
Sale to Employee- Employees have the first
choice to buy the share of share of public limited
company when they are put for sale.
EVOLVING STRATEGIC ROLE OF HRM
Definition of HRM (Traditional HR)
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- is simply the process of managing human resources,
in a systematic way.
- It is a practice devised to maximise the performance
of employees, i.e. to make them more efficient and
productive.
HR Activities
- HRM consist of human-oriented activities like:
Recruiting training and development,
performance appraisal, safety and health, industrial
relations and so on.
-It facilitates adjusting human resource policies and
practices with the strategies of the organization,
whether corporate or functional.
HR Manager Functions-Planning, staffing,
developing, maintaining, monitoring, managing
relationships, evaluating, managing change, etc.
Definition of SHRM
- is a function of management which entails
development of policies, programmes and practices
related to human resources, which are then aligned
with business strategy, so as to achieve strategic
objectives of the organisation.
-Purpose: Its primary purpose is to improve the
performance of the business and maintain a culture that
encourages innovation and works continuously to gain
competitive advantage.
Aim of SHRM
- companies must adjust their HR strategy within the
periphery of overall business objectives, thus ensuring
that HR practices are in tune with the strategic
objectives of the organization
- It lays down a clear corporate strategy and vision for
future.
- ascertains and analyses external opportunities and
threats to the business organisation.
Traditional- HRM Vs. SHRM
Definition
THRM: Human resource management (HRM) implies
the governance of manpower of the organization in a
thorough and structured manner.
SHRM: SHRM is a managerial function which implies
framing of HR strategies in such a way to direct
employees efforts towards the goals of organization.
Nature
THRM: Reactive
SHRM: Proactive
Responsibility lies with
THRM: Staff specialist
SHRM: Line manager
Approach
THRM: Fragmented
SHRM: Integrated
Scope
THRM: Concerned with employee relations
SHRM: Concerned with internal and external relations
Time horizon
THRM: Short term
SHRM:Long term

Change
THRM: Follows change
THRM: Initiates change
Control
THRM: Stringent control over employees
SHRM: It exhibits leniency.
Key Differences Between HRM and SHRM
Definition
HRM: The governance of manpower of the
organisation in a thorough and structured manner.
SHRM: A managerial function which implies framing of
HR strategies in such a way to direct employees efforts
towards the goals of an organization.
Process of HRM
HRM: Reactive in nature
SHRM: Proactive Management Function
Responsibility lies with
HRM: Staff Specialists
SHRM: Line Managers
Approach
HRM: fragmented approach, which stresses on
applying management principles while managing
people in an organization.
SHRM: integrated approach, which involves lining up of
business strategy with the company’s HR practices.
Scope
HRM: employee relations, ensuring employees
motivation, and also the firm conforms to the necessary
employment laws.
SHRM: focuses on a partnership with internal and
external constituent groups.
Time horizon
HRM: short-term business goals and outcomes
SHRM: long-term goals and results of business
Change
HRM: Change Follower
SHRM: Change Leader
Control
HRM: stringent control over employees is exercised
SHRM: strategic human resource management, no
such control is imposed, rather the rules for managing
manpower is lenient
Barriers to SHRM
(1) Resistance to Change
- Most of the people in management as well as the
employees didn't want a new way of doing things
implemented, they wanted to stick to the norm.
(2) Finances
- New systems needs to be put in place to facilitate the
new processes and procedures. Training is also
required after introducing new systems and procedures
for people to learn how to operate them. This adds up
to the costs and thus implementation is quite
expensive.
(3) Lack of Initiative
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- Those in senior management and had the power to
initiate change are reluctant to do so. The focus is
mainly on performance, once employees achieve target
and the company makes profits the rest of the practices
are not keenly observed.
Performance Management - The focus is mainly on
individual performance which can sometimes have
detrimental results as employees compete with one
another to the point of causing enmity.
3 Main Barriers to Effective HRM
(1) The first concerns the extent to which top
management has a low priority and short-term view of
HRM issues while being more concerned with issues
such as power and control.
(2) The second barrier to effective HRM relates to the
extent to which HRM practitioners possess the
knowledge and skills necessary to implement a credible
HRM programme within their organization.
(3) The third barrier to effective HRM occurs as a result
of the lack of proven knowledge about, and the few
attempts at demonstrating, the long-term impact of
HRM programs.
7 Barriers to Strategic Human Resource
Management
(1) Short term mentality: Every manager act, long-
term focus, because the organization has been
established with long-terms objectives/focus.
(2) Strategic inability: Very often SHRM does not think
strategically and he cannot think it to due in capability.
This type of inability may arise for many reasons as lack
of technical knowledge, insufficient training and the like.
(3) Lack of appreciation: Sometimes top managers do
not recognize the activities of strategic human resource
management. So SHR manager does not get interested
in doing any innovative venture. A few appreciations
may get them a substantial mental boost up.
(4) Failure understands role: General managerial
roles may not be fully understood by be managers. This
failure is due to lack of knowledge about the specialty
of a degree of responsibility. This failure may create
distance between these managers.
(5) Difficulty in quantifying outcomes: Many
outcomes may not be quantified. But SHRM tries to
enjoy the contribution. This is not always possible.
Participation, work etc. type function cannot be
quantified because of their intangibility.
(6) Wrong perception on human assets: Investment
in human assets may be regarded as high risk than that
of technology and information. Though these
technologies are run by the human resources. This
wrong perception may inhibit the progress.
(7) Resistance: SHR Managers may be resisted
because of the incentives for change that might arise.
The change implemented demand some incentives for
efforts to execute the changed program. If these
incentives are not given reasonable, they may create
barriers SHRM.
Outsourcing and Revamping Human Resource -
Human resources outsourcing is when businesses hire
companies to manage personnel functions. That
includes administration of health benefits plans,
retirement plans, and workers’ compensation
insurance. It also includes hiring, training, and legal
expertise.

-The average size of a company that uses HR
outsourcing is 19 employees.
Advantages
-HR outsourcing reduces the fixed cost of managing
employees.
- Small businesses are more likely to outsource other
human resource functions.
Disadvantages
- Poor Internal Communication
- Employees may start to mistrust management
- If employees liked the old HR department, they
would resent the new company. But if they didn't
like the old department, they might transfer those
feelings to the new firm.
- A poorly-run outsourcing company could create
disasters
- An unethical firm could betray sensitive information
HUMAN RESOURCE PLANNING
- or manpower planning is the process by which the
organization ensures that it has the right kind of
people, at the right time, at the right place and they
are working effectively and efficiently and help the
organization in achieving the overall objectives.
- It is a continuous process of developing and
determining objectives, policies that will procure,
develop and utilize human resources to achieve the
goal of the organization.
Features of Human Resource Planning
1. It is future oriented -forward looking
- It involves forecasting the manpower needs for a
future period so that adequate and timely provisions
maybe made to meet the needs.
2. It is a continuous process -because the demand
and supply of Human Resource keeps fluctuating
throughout the year. Human Resource Planning has
to be reviewed according to the needs of the
organisation and changing environment.
3. Integral part of Corporate Planning - Manpower
planning is an integral part of corporate planning
because without a corporate plan there can be no
manpower planning.
4. Both Qualitative and Quantitative aspect -
‘Quantitative’ meaning the right number of
people and ‘Qualitative’ implying the right quality
of manpower required in the organisation.
5. Long term and Short term -Human Resource
Planning keeps long-term goals and short-term
goals in view while predicting and forecasting the
demand and supply of Human Resource.
Objectives of Human Resource Planning
1. Achieve Goal
2. Estimates future organizational structure and
Manpower Requirements
3. Human Resource Audit
4. Job Analysis
- The process of studying and collecting information
relating to operations and responsibilities of a
specific job.
-Job analysis is comprised of job description and job
specification.
-Job Description describes the duties and
responsibilities of a particular job in an organized
factual way.
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-Job Specification specifies minimum acceptable
human qualities necessary to perform a particular
job properly.
Types of Planning
(1) Strategic Plans
- Strategic plans are designed with the entire
organization in mind and begin with an organization's
mission.
- Top-level managers, such as CEOs or presidents,
will design and execute strategic plans to paint a
picture of the desired future and long-term goals of the
organization.
- Strategic plans look ahead to where the organization
wants to be in three, five, even ten years.
- Strategic plans, provided by top-level
managers, serve as the framework for lower level
planning
(2) Tactical Plans
- Tactical plans support strategic plans by translating
them into specific plans relevant to a distinct area of the
organization.
- Tactical plans are concerned with the responsibility
and functionality of lower-level departments to fulfill
their parts of the strategic plan.
(3) Operational Plans
- they are the plans that are made by frontline, or low-
level, managers. All operational plans are focused on
the specific procedures and processes that occur within
the lowest levels of the organization. Managers must
plan the routine tasks of the department using a high
level of detail.
(4) Contingency Planning
-Contingency plans are made when something
unexpected happens or when something needs to be
changed. Business experts sometimes refer to these
plans as a special type of planning.
-Contingency planning can be helpful in circumstances
that call for a change. Although managers should
anticipate changes when engaged in any of the primary
types of planning, contingency planning is essential in
moments when changes can’t be foreseen
Mentoring is a partnership between two people that
supports personal and/or professional development
between a less experienced individual, called a
mentee, and a more experienced individual known as
a mentor.
An individual may seek a mentor for a variety of
reasons:
To learn a new technical skill
To learn or develop a competency
To develop leadership or management skills
To assist in career transitions such as: new roles,
changing jobs, or different organization structure.
Five Strategies for Mentoring Employees
(1) Commit to Plan
(2) Lead by Example
(3) Look for Teaching and Guiding Moments
(4) Foster Connections
(5) Survey the Scene and Act from Above
DESIGN WORK SYSTEMS
Work System Design -Consists of job design, work
measurement and establishment of time standards and
worker compensation.

Job Design -Job design involves specifying the content
and methods of job.
-Goal of the job design: to create a work system that is
not only productive but also efficient.
Job designers are concerned with:
What will be done
Who will do the job
How the job will be done
Where the job will be done
Qualities of successful Job Design
1.Carried out by experienced personnel who have the
necessary training and
background.
2. Consistent with the goals of the organization.
3. In documented form.
4. Understood and agreed by both management and
employees.
5. Shared with the new employees.
6. Factors that affect Job Design
Design of Work Systems
1.Specialization
2.Behavioral Approaches to Job Design
3.Teams
4.Methods Analysis
5.Motions Study
6.Working conditions
Specialization -The term specialization refers to work
that concentrates on some aspect of a product or
service.
Behavioral Approaches to Job Design
Job Enlargement relates to giving a worker a larger
portion of the total task by horizontal loading
Job Rotation pertains to Workers periodically
exchange jobs
Job Enrichment is increasing responsibility for
planning and coordination tasks, by vertical loading
(the reassignment of job responsibility formerly
delegated to the supervisor to the employee).
Motivation -Motivation always influences quality and
productivity. It contributes to work environment where
as Trust influences productivity and employee-
management relation.
Teams - Organization adopt teams in order to exploit
the benefits of teams
Higher quality
Higher productivity
Greater worker satisfaction
Self-directed teams are groups of empowered to
make certain changes in their work process
Method Analysis - deals with analyzing how a job
gets done, begins with overall analysis and then
moves to specific details like changes in tools and
equipment, Changes in product design or new
products, Changes in materials or procedures and
Other factors (e.g. accidents, quality problems).
Methods Analysis Procedure
Identifies the operation to be studied
Gets employee input
Studies and documents the current method
Analyzes the job
Proposes new methods
Installs new methods
Follow-ups to ensure improvements have been
achieved
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Selecting an Operations to study
A high labor content.
Repeated frequently.
Unsafe, tiring, unpleasant, noisy and
environmentally poor.
Quality problems, scheduling bottlenecks etc
Motion Study and Motion Study Techniques--
Motion Study is the systematic study of the human
motions used to perform an operation.
-Purpose: to eliminate /weed-out unnecessary
motions and identify the best sequence of operations
for maximum efficiency.
Motion Study Techniques often incorporate the
following four types
1. Motion study principles - guidelines for designing
motion-efficient work procedures.
2. Analysis of therbligs - basic elemental motions into
which a job can be broken down.
3. Micro motion study - use of motion pictures and
slow motion to study motions that otherwise
would be too rapid to analyze.
4. Charts Motion study principles- Gilbreths work laid
the foundation for motion study
principles, which are guidelines for designing motion
efficient work procedures.
The guidelines are divided into three categories.
1. Principles of the use of body.
2. Principles for the arrangement of the work place.
3. Principles for the designs of tools and equipment
Developing Work Methods
1. Elimination of unnecessary motions
2. Combination of various activities
3. Reduction in fatigue
4. Improvement in the arrangement of the workplace
5. Improvement in the design of tools and equipment
Working Conditions
Temperature and Humidity
Ventilation
Illumination
Color
Noise and Vibration
Safety
Work Breaks
Causes of Accident
Work Measurement -determines how long it should
take to do a job
-This may be focusing on an individual's performance
or completion of a mega scale project.
Standard Time is the amount of time it should take a
qualified worker to complete a specified task, working
at sustainable rate, using given methods, tools and
equipment, raw materials and work place
arrangements.
Work Measurement Techniques
1. Stopwatch time study
2. Historical times
3. Predetermined data
4. Work Sampling
Compensation
1. Time-based system, which is the compensation
based on time an employee has worked during a
pay period.
2. Output-based (incentive) system, which is
compensation based on the amount of output an

employee produces during a pay period.
Characteristics and Form of Incentive Plan
1. Accurate
2. Easy to apply
3. Consistent
4. Easy to understand
5. Fair
6. Compensation
Types of Individual Incentive Plans
1. Group Incentive Plans
2. Knowledge-Based Pay System
3. Management Compensation
Design and Redesign of Work System
Three Primary Considerations in Designing Job
1. What Workers Do:
A. Job Specialization- Creates jobs with very narrow
task (activity) assignments. Resulted in high
efficiency, quickly achieved job competency, low
training costs, but also created monotonous jobs.
B. Job enlargement
C. Job rotation
D. Job enrichment
E. Vertical loading
2. What Workers Need:
A. Changing demographics and lifestyles of the
labor market - Worker needs vary by age, gender,
race, religion, physical abilities, sexual orientation,
and marital and family status.
B. Work/life balance Younger employees are far
less loyal to their employers. - Workers are less
committed to organizations today but also suffer from
burnout and lower performance.
C. Ensuring the employees has some form of
representative, or VOICE. - Workers want to be
involved in work-related issues and expect the
organization to listen to their concerns.
D. Workplace safety - Workers want a safe, hazard-
free working environment.
3. How Jobs Interface with Other Job:
Types of Task Interdependence
(1) Pooled Interdependence -Individual employees
work independently of each other in performing tasks
but utilize coordination of their activities.
- Sequential Interdependence
- The work in process flows from one individual to
another, where one individual depends on the timely
completion of quality work for another co-worker.
(2) Reciprocal Interdependence -Workflow is not
linear as in sequential interdependence but random.
Work flow responds to immediate situation and
employees have joint and shared responsibilities for
the work.
Offshoring -simply means having the outsourced
business functions done in another country.
-refers to getting work done in a different country,
usually to leverage cost advantages
Reasons for Offshoring
- reduce labor expenses
- to enter new markets,
-to tap talent currently unavailable domestically
-to overcome regulations that prevent specific
activities domestically
- Cost
- Take Advantage Tax & Tariffs
11
- Don't want to relinquish control of part of their
production (or internal business services) to a third
party
- Better availability of skilled human resources in that
region for specific types of tasks.
Risks and Criticism
- Political standpoint
- project failure due to poor communication
-Civil or political unrest impacting production or
service delivery
-Arbitrary changes in economic policy of governments
may force unnecessary restrictions on MNCs
-Poor infrastructure in the developing country may
affect quality or timeliness
Outsourcing refers to obtaining certain services or
products from a third-party company, essentially
sourcing something like accounting services or
manufacturing of a certain input to another company
-It refers to the contracting out of an entire business
function, a project, or certain activities to an external
provider
Reasons why a company might Outsource:
- Cost advantage
- Focus on core competency
- Quality and Capability
- Labor flexibility
Risks of Outsourcing:
- misaligned interests of clients and vendors, increased
reliance on third parties
- lack of in-house knowledge of critical (though not
necessarily core) business operations etc
Merger vs. Acquisition
Definition
M: happens when two firms, often of about the same
size, agree to go forward as a single new company
rather than remain separately owned and operated.
Acquisition
A: occurs when one company is buying and taking over
another.
Acquisitions can be friendly or hostile:
(1) Friendly Acquisition - the target is willing to be
acquired. The target may view the acquisition as an
opportunity to develop into new areas and use the
resources offered by the acquirer.
(2) Hostile Acquisitions - Hostile acquisitions are
sometimes referred to as hostile takeovers.
White knight- One tactic for avoiding a hostile takeover
is for the target to seek another company with which it
would rather merge or be acquired by. This third
company, if it agrees, is sometimes referred to as a
white knight, as it ‘comes to the rescue’ of the
threatened target.
Main Differences of Merger Vs. Acquisitions
- lies in the way in which the combination of the two
companies is brought about. In a merger there is
usually a process of negotiation involved between the
two companies prior to the combination taking place. In
an acquisition, the negotiation process does not
necessarily take place.
Typical reasons for merger failure include:
- an inability to agree terms;
-overestimation of the true value of the target;
-the target being too large relative to the acquirer;
-a failure to realize all identified potential synergies;

-an inability to implement change;
-shortcomings in the implementation and integration
processes;
-a failure to achieve technological fit;
-conflicting cultures;
-a weak central core in the target.
The Impact of Technology
Hr Issue and Challenges Related To Technology
1. Expensive, time-consuming IT support and add-ons
2. Disparate, clunky platforms that aren’t scalable
3. Regulatory compliance issues
4. Inadequate data (or data that isn’t readily available)
5. Multiple vendors to manage
6. Cumbersome recruiting and onboarding
7. Insecure data storage or transfer
Telecommuting is one of many flexible work
arrangements that campus departments may establish
for their staff in order to enable them to achieve a more
successful balance between work responsibilities and
family life.
Employee Monitoring is the act of employers
surveying employee activity through different
surveillance methods.
Methods of Workplace Monitoring
• Telephone Computer Geolocation
• Mobile Devices Personal Email
• Social Media Video Monitoring
E-HR -is a function of HR that is concerned with the
use, management, and regulation of electronic
information and processes within an organization.
-It involves drafting policies and controlling both the
traffic and collection of electronic information.
E-HR also involves the regulation of electronic data and
processes.
-This requires employers to monitor employees and
establish security measures to prevent employee data
theft and misuse of technology.
-Social Networking- the creation and maintenance of
personal and business relationships especially online.
ANTI DISCRIMINATION LAWS
Senate Bill No. 1619
"Anti-Discrimination Act of 2017"
AN ACT PROHIBITING DISCRIMINATION ON
THE BASIS OF ETNICITY, RACE, RELIGION OR
BELIEF, POLITICAL INCLINATION, SOCIAL CLASS,
SEX, GENDER, SEXUAL ORIENTATION, GENDER
IDENTITY, GENDER EXPRESSION, CIVIL STATUS,
HIV STATUS AND OTHER MEDICAL CONDITION
AND PROVIDING PENALTIES.
Equal Pays and Civil Rights - Hours worked refers to
all compensable period of work.
Overtime pay is the additional compensation payable
to employee for services or work rendered beyond the
normal eight hours of work.
It is computed by multiplying the overtime rate with the
number of hours in excess of the regular eight hours of
work
Premium pay refers to the additional compensation
required by law to be paid to employees for work
performed on non-working days, such as rest days and
special days.
Senate Bill No. 2814
Anti-Ethnic or Racial Profiling and Discrimination
Act of 2011
12
AN ACT PROHIBITING ETHNIC, RACIAL OR
RELIGIOUS PROFILING AS WELL AS
DISCRIMINATION AGAINST PERSONS ON
ACCOUNT OF ETHNIC OR RACIAL ORIGIN AND/OR
RELIGIOUS AFFILIATION OR BELIEF
Republic Act No. 10911
“Anti-Age Discrimination in Employment Act”
Maternity protection (RA 7322)
-She will be granted 2 weeks leave before the expected
date of delivery.
-She will be granted 4 weeks leave after normal delivery
or abortion.
-She shall be paid a daily maternity benefit equivalent
to 100% of her present basic salary, allowances and
other benefits or the cash equivalent of such benefits
for 60 days. (if caesarian delivery, payment shall be for
78 days.)
-The maternity benefits shall be paid only for the first 4
deliveries.
-Payment of daily maternity benefits shall be a bar to
the recovery of sickness benefits provided by this Act
for the same compensable period of 60 days for the
same childbirth, abortion, or miscarriage.
Extended Maternity Leave -Maternity leave may be
extended on account of illness arising out of the
pregnancy, delivery, abortion or miscarriage, which
renders the woman unfit for work. Extended maternity
leave is without pay, but may be charged against any
unused leave credits.
Comprehensive Law on Anti-Discrimination to
PWDs
-Republic Act No. 7277 (An Act Providing for the
Rehabilitation, Self- Development and Self-Reliance of
Disabled Persons and Their Integration into the
Mainstream of Society and for other Purposes (the
“Magna Carta for Disabled Persons”).
-Batas Pambansa Bilang 344, the Accessibility Law.
-Executive Order No. 261 which Creates an Inter-
Agency Committee on Employment Promotion,
Protection and Rehabilitation of PWDs.
Civil Rights
A. Right to self determination
B. Right to life, Liberty and Security
C. Right to Equality of Law
D. Right to Privacy
E. Right to Nationality
F. Right of the Arrested and detained person
G. Right to Own Property
H. Right to Marry and Found Family
I. Right to freedom of thought, conscience and
religion
Workplace harassment is a discriminatory pattern of
behavior that creates a hostile work environment based
on a protected class. It may involve verbal abuse, an
abuse of power, sexual quid pro quo, and assault such
as unwanted groping.
Sexual harassment can affect everyone because it
creates an environment that makes it harder for
employees to succeed. The possible effects of sexual
harassment in the workplace include:
Resulting to:
- Emotional and Physical Issues
- Professional and Financial Problems
- Decreased Company Productivity

Anti-Harassment Policy and Training
Employers must institute anti-harassment programs
that contribute to a welcoming culture where everyone
feels they are valuable team members and also attract
talented job applicants.
Trends in Employment Litigation
-Discrimination- most common form of employee
lawsuit (race, sex, nationality, religion, sexual
preference, age or disability)
Discriminatory Discharge occurs when an employee
is either fired or laid off because he or she falls into a
legally protected category, outlined above.
Retaliation often occurs in the context of a discharge
Employment-at-will can be fired at any time, for any
reason (except for a few illegal reasons). If the
employer decides to let you go, that's the end of your
job--and you have very limited legal rights to fight your
termination.
IMPLEMENTATION OF STRATEGIES IN HUMAN
RESOURCE MANAGEMENT
Staffing - is the process of hiring, positioning and
overseeing employees in an organization. It is
commonly used to fill short term roles or to hire
people for specific projects.
Recruitment - is a positive process of searching for
prospective employees and stimulating them to apply
for the jobs in the organization. Tends to take on the
task of finding a more permanent role. Recruiting firms
deal with those who are seeking jobs as well as those
that are not: active candidates and passive
candidates.
Temporary Employees- temporary employees work
for a specific length of time or until a specific project is
completed.
-allows you to hire employees you need for specific
times such as substitute for an employee on leave
-temporary employment can also be a good way to test
out new employees to find out if they are a good fit for
the company before hiring them permanently
-spend a lot of time training new hires resulting in a loss
of productivity
-legal trouble for repetitively hiring temporary
employees
-Independent contractors: may also work only on
specific projects for specific times, but they have their
own businesses, uses their own equipment to
accomplish tasks
Permanent Employees- have no specified end date
for employment and generally remain employed until
they are fired or laid off or choose to quit
-save time in training and gain stability
-efficient at their jobs through familiarity with the
processes
Internal Recruitment- when the business looks to fill
the vacancy from within its existing workforce
-cheaper, quicker to recruit
-familiarity with the business and how it operates
-boost retention
-limits the # of potential applicants
-creates another vacancy which needs to be filled
Methods of Recruitment
1. Internal Recruitment Policy- policy should place
limitations on managers so they do not steal
employees from other managers or unnecessarily
13
hold an employee back from advancing his career if
he qualifies for an available position
2. Job Posting - develop a job posting system that
ensures the widest reach to company employees. The
job posting should include a job description, employee
eligibility criteria, the job's department and position
supervisor and the dates employees can apply.
3. Screening Employees - internal applicant's
managers and co-workers are available and
accessible as references.
4. Interviews - can interview internal applicants with the
assistance of the current human resources
department and company leaders
5. Feedback - provide feedback to employees wishing
to advance professionally.
External Recruitment - when the business looks to fill
the vacancy from any suitable applicant outside the
business
-new ideas
-larger pool of workers
-longer process
-expensive process due to advertising
Type of External Recruiting
1. Online Job Apps and Websites
2. Press Advertising - Specialist/trade journals,
national and local newspapers are still valid
methods of recruitment: people with specialist
skills often look for vacancies in the relevant
professional journal first, which are
increasingly likely to have an online presence
besides a printed edition
3. Professional Referral Schemes - as co-optation
or internal referrals, professional referral
schemes were rated more effective when
filling managerial roles
4. Recruitment Events/ Job Fairs - These can range
from face-to-face fairs, often at universities and
colleges to open days or event centers, where
potential applicants can ask questions personally.
Type of Third Party Recruiting
1. Recruitment Agencies - Private sector agencies
that provide temporary and permanent placements.
2. Search Consultants- (or ‘headhunters’) may be
employed when a vacancy is not to become
public knowledge, usually where the post is
very senior and/or there may be market
sensitivities.
Selection is the process of choosing the most suitable
candidate for the vacant position in the organization
Selection Process
1. Preliminary Interviews / screening interview-
used to eliminate those candidates who do not meet
the minimum eligibility criteria laid down by the
organization. The skills, academic and family
background, competencies and interests of the
candidate are examined during preliminary
interview.
2. Application blanks - It contains data record of the
candidates such as details about age,
qualifications, reason for leaving previous job,
experience, etc
3. Written Tests - conducted during selection
procedure are aptitude test, intelligence test,
reasoning test, personality test, etc. These tests are
 14

used to objectively assess the potential candidate.

They should not be biased.
4. Employment Interviews - It is a one to one
interaction between the interviewer and the
potential candidate. Such interviews should be
conducted properly. No distractions should be there
in room. There should be an honest communication
between candidate and interviewer.
5. Medical Examination - Medical tests are
conducted to ensure physical fitness of the potential
employee. It will decrease chances of employee
absenteeism.
6. Appointment Letter - A reference check is made
about the candidate selected and then finally he is
appointed by giving a formal appointment letter.
Interview costs money. Unstructured Interview
questions are changed to match the specific applicant;
Strategic Management of International Assignments
Structured Interview there is a set of standardized
1. Strategic Planning and Job Analysis - consisting
questions based on the job analysis, not on individual
resume. A Situational Interview is one in which the of in establishing for each international assignment,
the goals, the job description, job specification the
candidate is given a sample situation and is asked how
he or she might deal with the situation. ownership for the responsibility of managing the full
Types of Interviews expatriation/repatriation cycle
2. Recruitment - the major internal recruitment
1. Traditional Interview - normally takes place in the
methods for international positions are
office. It consists of the interviewer and the
(international) job posting and utilization of internal
candidate, and a series of questions are asked and
databases. To enable the company to identify
answered.
suitable internal candidates, HR departments need
2. Telephone Interview - often used to narrow the list
to build global data bases that include data on
of people receiving a traditional interview
potential candidates, their work experience,
3. Panel Interview - interview occurs when several
performance, skills, availability, and their
people are interviewing one candidate at the same
preferences regarding a potential international
time.
assignment.
4. Information Interview - interviews are usually
3. Selection – (1) enabling the company and the
used when there is no specific job opening, but the
employee to determine whether the candidate
candidate is exploring possibilities in a given career
possesses the competencies and motivation to
field.
5. Meal Interview - Many organizations offer to take successfully accomplish his or her international
assignment (2) minimizing the risk of assignment
the candidate to lunch or dinner for the interview. /
failure and the related costs (3) assigning
unstructured interview
candidates to suitable positions, thus maximizing
6. Group Interview - two or more candidates
the organization’s and the candidate’s benefit.
interview at the same time.
7. Video Interview - are the same as traditional 4. Preparation to transfer - step is to provide the
expatriates with all the necessary elements that will
interviews, except that video technology is used.
8. Nondirective Interview - the candidate essentially help them succeed during the international
assignment by facilitating their adjustment in the
leads the discussion
host country and allowing them to work efficiently
Major Categories of Tests
1. Cognitive Ability Tests - can measure reasoning throughout the duration of their contract.
5. Adjustment - A change that makes it possible
skills, math skills, and verbal skills. An aptitude
test measures a person’s ability to learn new skills, works for a person to do better in a new situation or
environment.
while an achievement test measures someone’s
6. Performance Appraisal - several purposes:
current knowledge.
development, evaluation of the employee’s
2. Personality Tests
contribution, give grounds to administrative
3. Physical Ability Tests - tests need to show direct
correlation with the job duties decisions regarding, for instance, compensation
and promotions
4. Job Knowledge Tests - measures the candidate’s
7. Compensation - effective compensation system is
level of understanding about a particular job.
to attract and retain quality people for global
5. Work Sample - tests ask candidates to show
assignments and to motivate them to an acceptable
examples of work they have already done.
and ever-improving standard of performance.
8. Repatriation and Retention - is the activity of
bringing the expatriate back to the home
organization
Employee’s Eligibility - All employees who are
employed under a contract of service or apprenticeship

in the private sector and contractual / temporary staff of
Federal / State Government as well as Federal / State
Statutory Bodies need to be registered and insured.
Form I-9 or also known as the Employment Eligibility
Verification, is a United States Citizenship and
Immigration Services form
Work Visa
There are two types of work visas available:
 9(g) or Pre-Arranged Employment Visa/
Commercial Visa - It is the most common type of
visa foreigners use for work purposes in the
Philippines. A 9(G) visa allows foreigners to enter
the Philippines to engage in a lawful occupation
whether for a technical, executive, managerial or
highly confidential position in a company for at least
one year under Sec. 9(g) of the Philippine
Immigration Act.
 9(d) or Treaty Trader’s - As per the Philippine
Immigration Act Sec. 9D, foreigner can enter the
country as a treaty trader. This applies if he/she is
a national of a country with which the Philippines
has agreed for the admission of treaty traders or
investors. At this point such agreements are valid
with Japan, USA and Germany. The term “treaty
trader” is meant to include any treaty investor or an
alien employed by a treaty investor in a supervisory
or executive position. The employee wishing to
apply for a 9D visa must be of the same nationality
as the majority shareholder of the sponsoring firm.
Work Permits - there are three types of work permits
that a foreigner can apply for:
 Alien Employment Permit (AEP) - An Alien
Employment Permit (AEP) is a document issued by
the Department of Labor and Employment that
allows a foreign national to work in the Philippines.
Gainful employment, work as per international
agreements. 1 year. Maximum employment up to 5
years
 Special Work Permit - Issued to a foreign national
who comes to the Philippines for short or temporary
assignment. Initial validity of Special Work Permit is
3 months from the date of issuance, there is a
possibility to extend it by an additional 3 months.
Short term temporary assignment. 3 additional
months
 Provisional Work Permit - Issued to a foreigner
with a temporary visitor visa. Initial validity of
Provisional Work Permit is usually 3 months from
the date of issuance or until the 9g visa is issued.
The Provisional Work Permit is extendable until a
working visa has been approved. Commence work
while the pre-arranged employment visa is being
processed (9g or 9d). 3 months.
New Trends in Staffing
1. Demand for Digital - Online marketing will continue
to play a vital role in the staffing industry trends of
2018. Websites like Indeed and LinkedIn will
continue to be some of the best resources for
recruiters to access talented candidate pools.
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Similarly, digital advertisements will continue to
reach candidates at the right time.
2. Referrals are the new king of the Hill - Nearly 30
percent say referrals are the absolute best source
of high-quality talent, and 62 percent place them in
their top three. Delivering a great candidate
experience can pay off not just for filling a position
today, but also for sourcing other candidates in the
future via positive referrals.
3. Employer branding - Employer brand is the term
commonly used to describe an organization's
reputation and popularity as an employer.
Innovative employer branding ideas are essential
for building a strong and attractive employer brand.
4. Candidate Experience matters - “candidate
experience” is candidate’s overall perception of
company’s recruiting process.
5. Diversity in hiring will be the key focus - Diversity
remains a hot topic in the recruitment domain since
last few years. But, in the current year you will see
staffing professionals ignoring the gender and
ethnicity bias a lot more during the interview
process and vouch for a diversified workforce.
TRAINING AND DEVELOPMENT
Training - is used to indicate the process by which
attitude, skills, abilities of employees to perform
specific jobs are increased. A job-oriented process
of increasing knowledge skills. It is to enable the
employee to do the job better.
Development - Refers to learning opportunities
designed to help employees grow. The term
development means growth of individual in all
respects. Training is a short-term process but
development is an on-going process.
2 Keys in Developing Training Program
Planning and Strategizing
 Assessment - determining why specific training
activities are required and placing the training
within an appropriate organizational context.
 Objectives and Measures - should follow the
assessed needs described in specific,
measurable terms.
 Design and Delivery - After questions are
assessed and answered during the analysis
phase, the training designer begins to layout the
training content and to develop the design
document.
 Evaluation - Provides feedback on the
effectiveness of the training program
Organizational Development - development is the
process of helping organizations improve through
change and policies, power, leadership, control, or
job redesign. The main focus is to improve efficiency
and effectiveness within the organization.
Objectives of Organizational Development
1. To increase the level of inter-personal trust among
employees.
2. To increase employee’s level of satisfaction and
commitment
3. To confront problem instead of neglecting them
4. To effectively manage conflict.

5. To put in place the process that will help the
ongoing process operation of the organization in a
continuous basis.
Process of Organizational Development
1. Problem Identification and Diagnosis
2. Planning strategy for change
3. Intervening in the system
4. Evaluation
Three basis components of OD
1. Diagnosis – Continuous collection of data about
total system, its subunits, its processes and its
culture
2. Action - All activities and interventions designed to
improve the organization’s function
3. Program Management - All activities designed to
ensure success of the program
Process of OD Interventions - Organizational
development intervention technique are the
methods created by OD professionals and others.
Single organization or consultant cannot use all the
interventions.
1. Sensitivity Training - is a form of training that
claims to make people more awake of their own
prejudices, and more sensitive to others.
2. Team Building - high interaction among team
members to increase trust and openness.
3. Survey Feedback - the use of questionnaire to
identify discrepancies among member’s
perceptions, discussion follows, and remedies are
suggested.
4. Process Consultation - the basic content of p-c is
that the consultant works with individuals and group
organization to help them learn about human and
social processes and to solve problems that stem
from process events.
5. Grid Organization Development - this aims at
individual groups and the organization as a whole.
It enables individuals and groups to assess their
own strengths and weaknesses.
6. Career Planning - process of defining individual
career objectives.
Integrating Training with Performance
Management Systems and Compensation
Integrate - To integrate means to combine two or
more things to make something more effective.
1. Performance Goal - they should first and foremost
cascade down to employee and management
performance goals and objectives.
2. Learning Needs - training programs should be
designed to provide the skills required to achieve
those objectives
3. Compensation and Rewards - should be
integrated with the previous two to properly provide
incentives and retain the workforce.
Three-phased on how to do Integration
Approach
1. Institutional Integration - For any strategic
initiative to be successful the various functional
departments and leadership need to be on the
same page with regards to the initiative purpose,
importance and how they can impact it
2. Process-based - Once all areas are aligned and
principle, work can begin and designing the work
processes around the integration;
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3. Technological Integration - step will provide the
enabler for all of those things to work together.
PERFORMANCE MANAGEMENT AND
FEEDBACK
Performance Management - is a continuous
process of identifying, measuring and developing
performance in organizations by linking each
individual’s performance and objectives to the
organization’s overall mission and goals. It includes
coaching employees to address concerns related to
performance.
Provide Feedback - Feedback is specific
information provided to the employee that
communicates how the employee’s behavior is
affecting the workplace.
 Positive Feedback - involves telling an employee
about good performance.
 Constructive Feedback - alerts an employee to
areas in need of improvement. Feedback should
be focused on the action, not the person.
The Performance Management Contributions
 Motivation to perform is increased.
 Self-esteem is increased.
 The job definition and criteria are clarified.
 Self-insight and development are enhanced.
 Personnel actions are more fair and appropriate.
 Organizational goals are made clear.
 Employees become more competent.
 Organizational change is facilitated
Methods and Measures of Evaluation
Critical Incidents Method - is a performance
appraisal method in which a manager keeps a
written record of positive and negative performance
of employees throughout the performance period.
Management by Objectives (MBO) Method - is a
process in which managers and employees jointly
set objectives for the employees, periodically
evaluate performance, and reward according to the
results.
MBO is a three-step process:
Step 1. Set individual objectives and plans.
Step 2. Give feedback and evaluate performance.
Step 3. Reward according to performance.
Narrative Method or Form - requires a manager to
write a statement about the employee’s
performance.
Graphic Rating Scale Form - is a performance
appraisal checklist on which a manager simply rates
performance on a continuum such as excellent,
good, average, fair, and poor.
Behaviorally Anchored Rating Scale (BARS)
Form - is a performance appraisal that provides a
description of each assessment along a continuum.
Like with rating scales, the continuum often includes
a numerical scale from low to high.
Ranking Method - is a performance appraisal
method that is used to evaluate employee
performance from best to worst
Accurate Performance Measures

 Valid and Reliable - As with all areas of our
people management process, we must make sure
that all of our performance management tools are
valid and reliable.
 Acceptable and Feasible - we need to look at a
couple of other characteristics of our performance
measures. We need to analyze acceptability and
feasibility. Acceptability means that the use of the
measure is satisfactory or appropriate to the
people who must use it.
 Specific - we want any evaluation measure to be
specific enough to identify what is going well and
what is not.
 Based on the mission and objectives - you want
to make sure that your performance management
system leads to accomplishment of your
organizational mission and objectives
Failure of Performance Management System
1. The Process is not Structured - One reason why
performance management fails is that the process
is not properly structured
2. Lack of Communication - It is important for them
to communicate properly with the employees about
the benefits of performance management.
3. Annual Performance Evaluation - is valuable only
when it is carried out on a regular basis.
4. No Recognition/ Lack of Appreciation,
Recognition and Rewards -Appreciation and
recognition are very important to keep your
employees inspired and to drive productivity
Effective Performance Management Systems -
Effective performance management is something
every organization wants. Without driven employees
who are performing well, businesses cannot achieve
their full potential.
5Keys to Effective Performance Management
1. Goal Setting (the Right way) - An important thing
to note is that goals are personalized – goals fit
each employee’s roles and capabilities and not a
generalized idea of what employees are supposed
to do.
2. Collaboration & Communication - Effective
performance management systems foster
communication and collaboration instead of just
focusing on competition.
3. Feedback/ Review - giving employees feedback
through annual performance management reviews
can be a daunting experience, since goals have
managed to age over the year, making the dialogue
both threatening and irrelevant.
4. Recognition - An effective performance
management system should be tied into
recognition. Never underestimate how much people
care about recognition – and how important it is to
create a positive sense of achievement at work,
even lessening turnover.
5. Development - Besides performance management
that is more agile, personalized, and firmly focused
on powering ongoing performance, systems must
encourage employee development by offering
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continuous learning opportunities and new ways of
gathering reliable, work relevant information. An
effective system must be linked to learning and
allow employees to enhance their capabilities and
improve their performance through access to
knowledge and experience.
COMPENSATION
Compensation - All of the rewards earned by
employees in return for their labor
Compensation’s Components
1. Direct Compensation – in the form of wages or
salary
 Base pay (hourly, weekly and monthly)
 Incentives – sales bonuses and or
commissions, shift differentials
2. Indirect Compensation – in the form of benefits
 Legally required benefits – e.g, Social Security
 Optional - e.g Group Health Benefits
Equity - The balance between the inputs an
individual brings to a job & the outcomes he or she
receives from it. Input includes experience,
education, special skills, efforts and time worked.
Outcomes includes pay, benefits, achievement,
recognitions, and any other rewards.
Designing Equitable Compensation System
1. Internal Equity - refers to the relationship among
the jobs within a single organization.
Job Evaluation Methods
a. Job Ranking - Jobs are compared to each
other based on the overall worth of the job to the
organization. The worth of a job is usually based
on judgements of skill, effort (physical and
mental), responsibility (supervisory and fiscal)
and working conditions
b. Job Grading - is also known as classification
method. A job grade is defined as a group of
different jobs of similar difficulty or requiring
similar skills to perform them. Job grades are
determined on the basis of information derived
from job analysis.
c. Point Method - Each factor is then divided into
levels or degrees which are then assigned
points. Each job is rated using the job evaluation
instrument. The points for each factor are
summed to form a total point score for the job.
Under this method, jobs are broken down based
on various identifiable factors such as skill,
training, effort, knowledge, responsibility, etc.
Thereafter, points are allocated to each of these
factors.
d. Factor Comparison - A scientific method
designed to rank job roles based on a
breakdown of factors rather than the role as a
whole. The ultimate goal of factor comparison is
to assign the relative parts of each job role a
financial value i.e. the amount of compensation
offered for that part of the role. This method is a
combination of both ranking and point methods
in the sense that it rates jobs by comparing them

and make analysis by breaking jobs into
compensable factors.
2. External Equity - exists when an organization's
pay rates are at least equal to the average rates
in the organization’s market or sector.
 Wage and Salary surveys - tool used to
determine the median or average compensation
paid to employees in one or more jobs.
 Identifying key jobs
 Selecting organization to survey
 Collecting data
 Pay level policy
a. Lag Policy – lower wages than competitors,
compensates employees through other means:
b. Market Policy – wages equal to competitors,
neutralizes pay as factor
c. Lead Policy – Higher wages than competitors to
ensure organization becomes employer of
choice
3. Individual Equity - Fairness about pay
differentials among individuals in the same job
Designing Pay Ranges
 Establishing pay ranges
 Broad banding - Broad banding is defined as a
method for evaluation and construction of job
grading structure or typical salary band of an
organization that falls between by spot salaries
against numerous job grades or bands, Broad
banding is to establish what is required to pay for
a specific positions and incumbents within the
existing positions.
Setting Individual Pay
 Seniority-based pay systems - Seniority is the
length of time that an individual has served in a
job or worked for an organization.
 Merit-based pay systems - also known as pay-
for-performance, is defined as a raise in pay
based on a set of criteria set by the employer.
 Incentive plans – employees receive part of
compensation based on performance
 Skill-based pay systems- is a compensation
system that rewards employees with additional
pay in exchange for formal certification of the
employee's mastery of skills, knowledge, and/or
competencies.
 Team-based play plans- encourage cooperation
and flexibility
Legal Issues on Compensation
 Definition Legal Issues on Compensation
- Protects worker’s rights to fair treatment
 Equal Pay Act of 1963
- Requires equal pay for equal work
 Comparable worth
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- Argues that standards of equal pay for equal
work should be replaced with doctrine of
equal pay for equal value
- Objective, measurable data to support
assessment of value of different jobs is
lacking
- No basis in current law for arguments of
comparable worth
 Fair Labor Standards Act of 1938
- Regulates minimum wage
- Sets overtime policy
- Establishes exempt classes for managers &
other professional employees
Executive Compensation - or executive pay is
composed of the financial compensation and other
non-financial awards received by an executive from
their firm for their service to the organization. It is
typically a mixture of salary, bonuses, shares of or
call options on the company stock, benefits, and
perquisites, ideally configured to take into account
government regulations, tax law, the desires of the
organization and the executive, and rewards for
performance
1. The Short Term Pay - short term pay of the
executives is about the base salary and short term
bonuses, which are paid on the basis of the
immediate performance of the organization. The
bonuses are usually deferred over a period of time.
The short term pay is usually fully cash based
executive compensation component.
2. The Long Term Pay - The long term pay is about
the stock options, shares, restricted stocks and pay
based on the performance against the index. The
shareholders use these long term compensation
components to protect the value of the organization
and betting of the top executives on the growing
value of the organization on the market
Types of Executive Compensation
 Cash Compensation – This is the sum of all
standard cash salary compensation that the
executive receives for the year.
 Deferred Compensation – This is
compensation that is deferred until a later date,
typically for tax purposes. However, changes in
regulations have lessened the popularity of this
type of compensation. Examples of deferred
compensation include pensions, retirement
plans etc
 Long-Term Incentive Plans (LTIPs) – Long-
term incentive plans encompass all
compensation that is tied to performance for tax
purposes. Current tax laws favor pay for
performance-type compensation.
 Stock options- An employee stock option
(ESO) is commonly viewed as a complex call
option on the common stock of a company,
granted by the company to an employee as part
of the employee's remuneration package

 Restricted stock- Outright grant of shares that
are restricted in transferability and are subject to
vesting. Once vested, they are economically
equivalent to outright ownership of stock.
 Retirement Packages – These are packages
given to executives after they retire from the
company. These are important to watch
because they can contain so-called "golden
parachutes" for corrupt executives.
 Executive Perks – These are various other
perks given to executives, including the use of a
private jet, travel reimbursements and other
rewards
Executive Compensation Benefits
 Golden Handcuff is a form of employee benefits
or executive compensation, in which a
(substantial) bonus is built into an executive's
contract, subject to continuous employment for a
certain number of years. In case of leaving the
employment premature there would be
substantial financial penalties or the entire
amount may have to be repaid.
 Golden Handshake is a form of employee
benefits or executive compensation, wherein a
large payment made by a company to a senior
executive is done upon termination of
employment (retirement) before his/her contract
ends.
 Golden Hello is a form of employee benefits or
executive compensation, wherein a signing
bonus is given to an executive to induce him to
leave a previous employment in order to take up
a new employment by the payment of a large
sum of money or other considerable
remuneration. Such welcome arrangement
could be in cash or in shares or in options.
 Golden Parachute is a form of employee benefits or
executive compensation, wherein the executive is
provided with a lucrative severance package in the
event of job termination, for example in case of a
takeover by an acquiring company. A GP may include
a continuation of salary, bonus and/or certain benefits
and perquisites, as well as accelerated vesting of stock
options.
LABOR RELATION
Labor Relation - is the practice of managing and
maintaining relationships with employees organized by
labor unions including the establishment, negotiation,
and administration of collective bargaining agreements.
Labor Standards Law - sets out the minimum terms,
conditions and benefits of employment that employers
must provide or comply with and to which employees
are entitled as a matter if legal right. Examples are laws
on wages and work hours, on safety and health of
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employees, on employment benefits such as paid
leaves and medical services for work-relate injuries.
Labor Relations Law - defines the status, rights and
duties, as well as institutional mechanisms that govern
the individual and collective interactions, between
employers, employees and their representatives.
Labor Union - An organization of workers, acting
collectively, seeking to promote and protect its mutual
interests through collective bargaining or negotiation
and for other legitimate purposes.
1. Greater job security- provide members with a sense
of independence from management’s power to
arbitrarily hire, promote or fire
2. Influence over work rules- workers can help
determine the conditions under which they work and
have an effective channel through which they can
protest conditions they believe are unfair.
3. Compulsory membership- once a person enters
into an organization or becomes an employee through
labor management agreements with union security
arrangements
4. Dissatisfaction with management
- upset with the way their supervisor handles problems,
upset over how a co-worker has been disciplines, and
so on
Union Security Arrangements - labor contract
provisions designed to attract and retain dues-paying
union members
Types of Union Security Arrangements
a. Union shop- most powerful relationship legally
available to a union. It stipulates that employers, while
free to hire whomever they choose, may retain only
union members. Employees hired to positions covered
under the terms of a CBA must, after a specified
probationary period (30-60 days), join the union or
forfeit their jobs
b. agency shop- second strongest union security
arrangement. Employees must pay union dues to the
certified bargaining unit even if they choose not to join
the union. designed as a compromise between the
union’s desire to eliminate the “free rider” and
management’s desire to make union membership
voluntary
c. Open shop- least desirable form, in which joining is
voluntary. Those who do not join are not required to pay
union dues or any associated fees. Workers who join
have maintenance-of-membership clause in the
existing contracts. Maintenance-of-membership-
requires an individual who chooses to join a union to
remain in the union for the duration of the existing
contract
2Types of Union in the PH
 PUBLIC SECTOR UNION or PUBLIC
EMPLOYEES ORGANIZATION refers to any
organization, union or association of employees in
the agencies of government which exist in whole or

in part for the purpose of collective negotiations or
mutual aid, interest, cooperation and protection.
 PRIVATE SECTOR UNION or LABOR
ORGANIZATION refers to any union or association
of employees in the private sector which exist in
whole or in part for the purpose of collective
bargaining or mutual aid, interest, cooperation,
protection or other lawful purposes.
2 Classification of Labor Organization
 Formal sector refers to organization with
employee-employer relationship, also known as
Enterprise-Based Unions it is composed of
Chartered Local, Affiliate and Independent Unions.
 Informal sector refers to organization with no
definite employer.
- As of September 2013, there are a total of 52,126
existing registered Labor Organizations with more
than 3.2 million memberships across the country
with the following disaggregation:
 Private Sector Unions: 32.3% of the total
organizations with 16,828 unions and 1,391,621
members;
 Public Sector Unions: 3.4%with 1,776 unions and
462,835 members, and
 Workers Associations: remaining 64.3% with
33,522 total associations with 1,429,966 members.
- Workers Associations refers to an association of
workers organized for mutual aid and protection of
its members or for any legitimate purpose other
than collective bargaining
THE 1987 PHILIPPINE CONSTITUTION
- Spread in various parts of the 1987 Philippine
Constitution are specific pronouncements and
mandates on the protection and promotion of the rights
of workers in the public and private sectors, to wit:
1. Sec. 18, Art. II, the State recognizes "labor as a
primary social economic force" and it endeavors to
"protect the rights of workers and promote their
welfare";
2. Sec. 8, Art. III, the State recognizes the "right of
(workers) xxx in the public and private sectors to form
unions";
3. Sec. 2, Art. XIII, the State pronounces "the promotion
of social justice" as one of its main goals;
Seven basic rights of workers (ART XIII, Sec 3)
1. Right to organize
2. Right to conduct collective bargaining or negotiation
with management
3. Right to engage in peaceful concerted activities,
including strike in accordance with law
4. Right to enjoy security of tenure
5. Right to work under humane conditions
6. Right to receive a living wage
7. Right to participate in policy and decision-making
processes affecting their rights and benefits as may
be provided by law
NATIONAL LABOR RELATIONS ACT - Also known
as the Wagner Act, this bill was signed into law by
President Franklin Roosevelt on July 5, 1935. It
established the National Labor Relations Board and
addressed relations between unions and employers in
the private sector.
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- The broad intention of the act was to guarantee
employees “the right to self-organization, to form, join,
or assist labor organizations, to bargain collectively
through representatives of their own choosing, and to
engage in concerted activities for the purpose of
collective bargaining or other mutual aid and
protection.” The NLRA applied to all employers involved
in interstate commerce except airlines, railroads,
agriculture, and government
BEHAVIOR DURING ORGANIZING CAMPAIGNS
Union Campaign - A union organizing campaign is
essentially a drive or movement to form a union within
an organization
-Usually arise when the union sees a problem that must
be immediately addressed.
Employers tend to show the following behaviors
when a union organize a campaign:
• Threatening employees with loss of jobs or benefits if
they join or vote for a union or engage in protected
activity.
• Threatening to close the plant if employees select a
union to represent them.
• Questioning employees about their union sympathies
or activities in circumstances that tend to interfere
with, restrain, or coerce employees in the exercise of
their rights under the NLRA.
• Promising benefits to employees to discourage their
union support.
• Transferring, laying off, terminating, or assigning
more difficult work tasks to employees because they
engaged in union or protected activity.
COLLECTIVE BARGAINING - The term “collective
bargaining” was first used in 1891 by Beatrice Webb, a
founder of the field of industrial relations in Britain. It
refers to the sort of collective negotiations and
agreements that had existed since the rise of trade
unions during the 18th century.
- It is a process of negotiation between employers and a
group of employees aimed at agreements to regulate
working salaries, working conditions, benefits, and
other aspects of workers’ compensation and right of
worker. The interests of the employees are commonly
presented by a representative of a trade union to which
the employees belong.
FAILURE TO RETRENCH AGREEMENT AND
UNIONS
 When an employer considers retrenching
employees, full consultations must take place about
this intention before making any decision to
retrench, according to the Labor Relations Act.
 When employees belong to a trade union, the
employer is required to consult with that union on
several issues. The most important of which is ways
of avoiding job losses
 When an employer chooses not to engage in proper
pre-retrenchment consultations and the employees
are forcibly retrenched, this would normally result in
a finding of unfair dismissal.
 But when an employer always has made every
effort to consult, it can’t be blamed for failure to do
so.

There are several reasons that retrenchment
consultations may fail to take place or may fail to
comply with the requirements of the act. These include:
 The employer was unaware of the legal obligations
to consult with the employees or union.
 The employers may have urgent reasons for
needing to retrench, such as:
- Dire financial circumstances threatening the
immediate survival of the business.
- A pressing need to get rid of employees pending a
hastily arranged takeover by another entity. The
prospective buyer may have set a tight deadline for
the date of takeover, and may have made it a
condition of the deal that workforce number be
reduced before the conclusion of the sale.
- The employer may have not have enough money to
pay salaries during a consultation exercise (which
may be protracted, especially when the employer
has more than 50 employees). The employer may
therefore need to curtail retrenchment
consultations.
- Again, none of these reasons will be accepted by
the courts as an excuse for failure to consult fully
and properly.
 When the employer has exhausted every means to
locate and contact the union without success. It may
consider the possibility of consultation with the
employee steward directly.
 The trade union may be purposely delaying the
consultation process.
EMPLOYEE SEPARATION
 Voluntary – employee resigns
Exit Interview – pinpoints reasons why an employee is
leaving
 Involuntary – employee is laid-off or terminated
Layoff – there is not enough work for employees
Termination – employee is asked to leave due to some
reasons: health, behavioral, and organizational
problems
Reduction in Force (RIF) The temporary suspension
or permanent termination of employment of an
employee
-A reduction in force is defined as a separation from
employment due to lack of funds, lack of work, redesign
or elimination of position(s) or reorganization, with no
likelihood or expectation that the employee will be
recalled because the position itself is eliminated.
REASONS FOR REDUCTION IN FORCE
1. Merging of two or more firms
2. Change in management
3. Strategy changes
4. Economic crisis
5. Excessive workforce
6. Increase in efficient work flow and computerized
services
7. Cost reduction
8. Closing a non and/or underperforming location or
unit.
9. Replacing people with technology or equipment
PROCESS OF REDUCTION IN FORCE
1. Employees are selected and assessed for possible
termination. Selection may be based on the employee’s
performance, although the termination usually depends
on the company’s individual needs and budget. The
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employees are then fired according to the selection and
assessment process.
2. During the termination process, employees may be
offered benefits which serve to ease the transition
period after termination.
CRITERIA FOR SELECTING EMPLOYEES FOR A
REDUCTION - Determine which employees within job
categories will be affected by the RIF and who will be
retained or offered other positions within the
organization. Consider how subjective the criteria is
and how to document meeting the criteria.
 Location
 Job categories
 Type of employment (contingent or part-time)
 Seniority
 Skill set
 Merit (documented performance history)
 Prior disciplinary actions
 Project or client assignments
LAYOFF AND DOWNSIZING
Three alternatives:
1. Decreasing the amount of hours each
employee works. With this choice, you still
maintain employees, retain a sense of continuity
and stabilize a declining level of morale. Given the
cuts, you can expect a percentage of your
employees to seek fulltime work elsewhere. Still, it
is more likely that your employees will stick around,
being glad that they have a job and an income,
albeit a diminished one
2. Furlough your employees. This forced, unpaid
vacation can be mandated to selected units,
departments or across the board. Sometimes,
entrepreneurs institute a furlough for one to two
days per week, or one week per month, for
example. Furloughs have the benefit of
maintaining the workforce, guaranteeing a specific
salary or wage rate, while decreasing the
organization's cost. In some cases, some
employees look forward to more time off on this
forced "mini-vacation" as long as it is for a minimal
amount of hours. Just like in the decreased hour
model, many employees will stay with you due to
the poor job market.
3. Terminate employees. Clearly, this measure is
the most complicated and will have the greatest
impact. Unfortunately in an economic downturn,
where the company must fight to stay alive, you as
the entrepreneur/owner have few good choices.
Turnover refers to human resource movement within
organizations, that is, employees moving from job to job
through transfer, promotion or relocation. It is in this
that we can see the effectiveness of HRM programmes
and activities.
4Reasons for High Employee Turnover
Here are four of the top reasons many good employees
resign:
1. They’re motivated by higher pay. No matter how
much someone loves working for you and believes
in your business, if they are presented with a better
offer, they will likely consider leaving. In addition to
traditional “pay and benefit” compensation, some
companies also opt to offer additional perks such as

flexible schedules, remote work privileges, on-site
fitness rooms or day care, discounts on services or
travel, and employee assistance programs.
2. They’re not engaged
Employee engagement may sound like another
corporate buzzword, but engaged employees share
a number of common traits:
 They seek out challenging work
 They’re good at resolving and/or finding solutions to
problems
 They proactively share ideas and solutions with
colleagues
 They offer support to colleagues who are busy
 They seek out training and development
opportunities
3. They’re bored. High-performing workers need to feel
that they are being challenged and are moving
forward in terms of professional growth and
development. Take time to meet with your employees
and be proactive in discussing career and succession
plans with them.
4. They’re poorly managed. A bad boss can make any
employee miserable. Even if your staff is completely
committed to the business, if their immediate
supervisor creates an uncomfortable work
environment, they may consider leaving.
Retention of staff is more important than ever in this
tight labour market. Therefore, employees who are
satisfied with the way their organisation treats them as
employees and rewards them for their performance or
efforts, are less likely to leave the organisation.
4 Reasons for Employee Retention
1. Growth
Being a manager also means being a landscaper,
creating paths for the individuals on your team to walk
down as time ticks on. Building opportunity into a role
gives your employees motivation that their hours
worked are not wasted, but rather are bricks that build
their future. Shift your perspective: you’re investing in
your company’s future by investing time (and money)
into your employees.
2. Work has purpose and meaning: There are long-
term employees that stay simply because they're
comfortable. Great employees have unique talents;
they want to excel and succeed by doing work that has
purpose and meaning. They want to do work that
somehow changes and influences lives for the better.
They thrive on being part of something that's innovative
and ahead of the competition.
3. Recognized and respected: Great employees
continue to prove themselves every day. They help set
and maintain the productive rhythm of the company.
They mentor others. They step up when needed without
being asked. Their unique talents and expertise are
obvious. In return, the great employee's work and
contribution earns them recognition and respect at all
levels of the company, especially leadership. Again, the
key word is "earned." Recognition and respect from
peers and leadership further solidifies the bond
between a great employee and the company.
4. Encouraged and mentored to achieve full
potential: There's something about being part of a
team and company that takes helping employees
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achieve their full potential seriously. For great
employees, this means having a growth path and
opportunities that stretch beyond the horizon. For great
employees, this means persistent encouragement to
get better
Retention strategies are policies and plans that
organizations follow to reduce employee turnover and
attrition and ensure employees are engaged and
productive long-term. The key challenge for businesses
is ensuring a retention strategy aligns with business
goals to ensure maximum return on investment.
Ways to Improve Employee Retention / Retention
Method
1. Onboarding and orientation — Every new hire
should be set up for success from the very start,
from the first day of work to the first week and
beyond. The job orientation is just one component
of onboarding, which can last for weeks or months,
depending on your organization. Aim to develop
an onboarding process where new staff members
not only learn about the job but also the company
culture and how they can contribute and thrive, with
ongoing discussions, goals and opportunities to
address questions and issues as they arrive.
2. Mentorship programs — Pairing a new employee
with a mentor is a great idea for onboarding.
New team members can learn the ropes from a
veteran with a wealth of resources, and the new hire
offers a fresh viewpoint to experienced staff.
Mentors shouldn't be work supervisors, but they can
offer guidance and be a sounding board for
newcomers, welcoming them into the company
culture. 
 Mentoring. A mentoring program integrated with a
goal-oriented feedback system provides a
structured mechanism for developing strong
relationships within an organization and is a solid
foundation for employee retention and growth
(Wingfield).
3. Employee compensation — It's essential in this
competitive labor market for companies to offer
attractive compensation packages. That
includes salaries, of course, but also bonuses, paid
time off, health benefits, retirement plans and all the
other perks that can distinguish one workplace from
another. Every employee should have a full
understanding of all the benefits they receive from
your organization. 
 Show appreciation via compensation and
benefits. Offering things like competitive salaries,
profit sharing, bonus programs, pension and health
plans, paid time off, and tuition reimbursement
sends a powerful message to employees about
their importance at the organization.
4. Recognition and rewards systems — Every
person wants to feel appreciated for what they do.
Make it a habit to thank your direct reports when
they go the extra mile, whether it's with a sincere
email, a gift card or an extra day off. Show your
employees you appreciate them and share how
their hard work helps the organization. Some
companies set up rewards systems that incentivize
great ideas and innovation, but you can institute

recognition programs even on a small team with a
small budget.
5. Work-life balance — What message is your
company culture sending? If staff are expected to
regularly work long hours and be at your beck and
call, you'll likely run into issues with employee
retention. Burnout is real. A healthy work-life
balance is essential, and people need to know that
management understands its importance.
Encourage staff to take vacation time, and if late
nights are necessary to wrap up a project, see if you
can offer late arrivals or an extra day off to
compensate and increase job satisfaction. Many
companies offer telecommuting or flexible
schedules to improve work-life balance for their
employees.
 Lower stress from overworking and create
work/life balance. It’s important to match work/life
benefits to the needs of employees. This could be
in the form of offering nontraditional work schedules
(such as a compressed work week, telecommuting,
and flextime) or extra holidays.
6. Training and development — In any position and
industry, professionals want the possibility for
advancement. Smart managers invest in their
workers' professional development and seek
opportunities for them to grow. Ask each of your
direct reports about their short- and long-term goals
to determine how you can help achieve them. Some
companies pay for employees to attend
conferences or industry events each year or provide
tuition reimbursement or continuing education
training.  believe their jobs make good use of their skills, and
 Training. Training employees reinforces their
sense of value (Wingfield, 2009). Through training,
employers help employees achieve goals and
ensure they have a solid understanding of their job
requirements (Maul, 2008).
7. Communication and feedback — Keeping open
lines of communication is essential for employee
retention. Your direct reports should feel that they
can come to you with ideas, questions and
concerns, and likewise, they expect you to be
honest and open with them about improvements
they need to make in their own performance. Make
sure you connect with each staff member on a
regular basis — don't let issues build up for the
annual review.  authoritarian style of management (Branham).
 Coaching/feedback. It’s important for companies
to give feedback and coaching to employees so that
their efforts stay aligned with the goals of the
company and meet expectations
 Use communication to build credibility. No
matter what the size of the organization,
communication is central to building and
maintaining credibility.
8. Dealing with change — Every workplace has to
deal with unpleasant changes occasionally, and
the staff looks to leadership for reassurance. If your
organization is going through a merger, layoffs or
other big changes, keep your staff informed as
much as you can to avoid feeding the rumor mill.
Make big announcements face to face, and make
sure you allow time for their questions.
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9. Fostering teamwork — When people work
together, they can achieve more than they would
have individually. Foster a culture of collaboration
that accommodates individuals' working styles and
lets their talents shine. Do this by clarifying team
objectives, business goals and roles, and
encouraging everyone to contribute ideas and
solutions.
10. Team celebration — Celebrate major milestones
for individuals and for the team. Whether the team
just finished that huge quarterly project under
budget or an employee brought home a new baby,
seize the chance to celebrate together with a
shared meal or group excursion. 
11. Instill a positive culture - A company should
establish a series of values as the basis for culture
such as honesty, excellence, attitude, respect, and
teamwork (IOMA, 2008). A company that creates
the right culture will have an advantage when it
comes to attracting and keeping good employees
(Main).
12. Provide growth opportunities - An organization
should provide workshops, software, or other tools
to help employees increase their understanding of
themselves and what they want from their careers
and enhance their goal-setting efforts (Branham).
It’s important to provide employees with adequate
job challenges that will expand their knowledge in
their field (Levoy, 2007). According to Right
13. Make employees feel valued - Employees will go
the extra mile if they feel responsible for the results
of their work, have a sense of worth in their jobs,
receive recognition for their contributions (Levoy).
14. Foster trust and confidence in senior leaders
- Develop strong relationships with employees from
the start to build trust (Stolz, 2008). Employees
have to believe that upper management is
competent and that the organization will be
successful. An employer has to be able to inspire
this confidence and make decisions that reinforce it.
An employer cannot say one thing and do another.
For example, an employer shouldn’t talk about
quality and then push employees to do more work
in less time. In addition, employers need to engage
and inspire employees by enacting policies that
show they trust them, such as getting rid of
Retirement is the withdrawal from one's position or
occupation or from one's active working life. A person
may also semi-retire by reducing work hours. Many
people choose to retire when they are eligible for
private or public pension benefits, although some are
forced to retire when bodily conditions no longer allow
the person to work any longer (by illness or accident) or
as a result of legislation concerning their position.
There are two forms of common retirement
processes:
1. Early retirement Which allows employees to retire
earlier than the 'normal' retiring age. However,
some organizations encourage this practice to
reduce staff numbers, clear succession or
promotion blockages.

2. Phased retirement -This is more widely used
approach where the employer makes preparation
for the employee to phase in the retirement to avoid
the abrupt change in circumstances, by reducing
their workload over a period of time agreed, so that
they withdraw gradually from the organization and
full time paid employment.
-Includes a broad range of employment
arrangements that allow an employee who is
approaching retirement age to continue working
with a reduced workload, and eventually transition
from full-time work to full-time retirement. Phased
retirement may include a pre-retirement, gradual
reduction in hours (or days) of work and post-
retirement, part-time work for pensioners who wish
to remain employed. Part-time, seasonal and
temporary work or job-sharing are all work
arrangements that can be a form of phased
retirement.
RETIREMENT BENEFITS - The SSS Retirement
Benefit is a cash benefit paid either in monthly
pension or as a lump sum to an SSS member who
can no longer work due to old age.
Two types of retirement benefit:
1. Monthly pension – a lifetime cash benefit paid to a
retiree on a regular monthly basis. The SSS
member must have at least 120 months contribution
upon prior to the semester of application to qualify
in the monthly pension.
2. Lump Sum amount – is a onetime payment
granted to a retiree, if he/ she haven’t reached the
required 120 monthly contributions. The lump sum
amount is equal to the total contribution paid by the
member and/or by his/her employer, including
interest earned.
Other benefits aside from the monthly pension:
1. Dependents Allowance
 The legitimate, legitimated or legally adopted, and
illegitimate children, conceived on or before the
date of retirement of a retiree will each receive
dependents’ allowance equivalent to 10 percent of
the members’ monthly pension, or ₱ 250,
whichever is higher.
 Only five minor children, beginning from the
youngest, are entitled to the dependents’
allowance. No substitution is allowed.
 If there are more than five dependents, the
legitimate, legitimated or legally adopted children
shall be preferred.
-The dependents’ allowance stops when the child
reaches 21 years old, gets married, gets employed,
or dies. However, the dependents’ allowance is
granted for life for children who are over 21 years
old, if they are incapacitated and incapable of self-
support due to physical or mental defect that is
congenital or acquired during minority.
2. The retiree is entitled to a 13th month pension
payable every December.
3. All retiree pensioners prior to the effectively of
RA 7875 on March 4, 1995 are automatically
considered members of PhilHealth and, along
with their legal dependents, are entitled to
PhilHealth hospitalization benefits only if they
24
have contributed 120 monthly
PhilHealth/Medicare contributions.
A copy of the DDR print-out indicating the type of
claim is retirement in nature and the effectively
date of the pension, or in its absence, a copy of
retiree-pensioner certification issued by SSS shall
be required. They need to register under Philhealth
for the issuance of a Philhealth ID card for non-
paying members.
th
18 months advance pension - A retiree has the
option to receive in advance the first eighteen (18)
months pension in lump sum, discounted of a
preferential rate of interest to be determined by the
SSS. Intent to receive the 18 month pension in advance
should be declared during retirement claim application.
However, the Dependent’s pension and 13th month
pension are excluded from the advanced 18th months
pension.
DIFFERENCES OF GLOBAL HRM AND
DOMESTIC HRM
International Human Resource Management - A set
of activities aimed managing organizational human
resources at international level to achieve
organizational objectives and achieve competitive
advantage over competitors at national and
international levels.
Domestic Human Resource Management A process
of allocating and effectively utilizing the human
resources in a local country.
Difference between International HRM & Domestic
HRM
Domestic HRM:
• -Involved with the management of the employees in a
single country.
• -Does not have to deal with cultural differences as
majority of the employees are in the same nation.
International HRM:
• -Management of employees in three nations. The
parent Country, the host Country and the third
Country.
• -Has to overcome multi- cultural differences to run a
local subsidiary of the parent country.
• Three types of employees in an international
organization
• Parent Country Nationals (PCN) - An employee
working in a country which is not the country where
his origin is based.
• Host Country Nationals (HCN) -These employees
of an organization are the citizens of the country in
which the foreign subsidiary is located.
• Third Country Nationals (TCN) - These are the
citizens of a country other than the country where
the organization is headquartered or the country
that is hosting the subsidiary.
Culture. According to Jim Harris, Ph. D. and Joan
Brannick Ph. D., a company’s culture is defined by its
core purpose or core value and companies that
successfully attract, hire and retain top talent, align their
recruitment and retention practices with their core
culture.
There are many different factors that define an
organization’s culture, including the ff:
 Degree of Hierarchy
 Degree of Urgency
 25

 People/Task Orientation Netherlands, Poland, Portugal, Romania, Slovakia,

 Assertiveness/Courtesy Dimension Slovenia, Spain, Sweden, and the United Kingdom.
 Functional Orientation That will drop to 27 when Brexit causes the United
 Institutional “personality” Issues Kingdom to leave the EU in 2019.
 Values Here's how the three bodies uphold the laws
HUMAN RESOURCE ISSUES IN GLOBAL governing the EU. These are spelled out in a series
ASSIGNMENTS of treaties and supporting regulations:
1. Administrative Approach - involves merely 1. The EU Council sets the policies and proposes new
assisting employees with paperwork and minor legislation. The political leadership, or Presidency
logistics. of the EU, is held by a different leader every six
2. Tactical Approach -involves managing the risk or months.
failure factor. This approach does only what needs 2. The European Parliament debates and approves
to be done to prevent failure. the laws proposed by the Council. Its members are
3. Strategic Approach -involves much more support elected every five years.
and coordination. In addition, strategically managing 3. The European Commission staffs and executes the
such a process would involve adding extensive laws. Jean-Claude Juncker is the president until
selection system such as: 2019.
● Ongoing
● Integrated Training
● A specific performance Management System
● Destination Services
● A strategized repatriation program at the end of the
assignment
Repatriation may be defined as the activity of bringing
an “expatriate” or a person renounce allegiance to
one’s native country to live at a foreign country for some
reasons back to home country. is the final step in the
expatriation process (foreign assignment or
reassignment).
PHASE PERSPECTIVE OF REPATRIATION
 PREPARATION- Provision of information to the
expatriate to facilitate the return to the home country.
 PHYSICAL RELOCATION- Includes activities such
as removing personal effects, breaking ties with
colleagues and friends and traveling to the home
country. Help to the expatriate and his or her family
is usually provided by the relocation consultants or
firms. Comprehensive and personalized relocation
assistance serves to reduce anxiety, stress,
uncertainty and disruption experienced by the
expatriate and his or her family.
-
 TRANSITION- Phase in which the expatriate and his
or her family readjust to their return to the home
country. Some companies hire relocation consults to
assists in this phase. Typical activities include
acquiring temporary recommendation, making
arrangements for housing and schooling, performing
necessary administrative tasks.
 READJUSTMENT- This phase involves coping with
reverse culture shock and the expatriate’s career
demands on the organization.
EUROPEAN UNION is a unified trade and monetary
body of 28 member countries. It eliminates all border
controls between members. That allows the free flow of
goods and people, except for random spot checks for
crime and drugs. The EU transmits state-of-the-art
technologies to its members. The areas that benefit are
environmental protection, research and development,
and energy.
-The EU's 28 member countries are: Austria, Belgium,
Bulgaria, Croatia, Cyprus, Czech Republic, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta,