HUMAN

RESOURCES
MANAGEMENT
ENGR. YOSHIKI B. KURATA, CIE, AAE, MSc.IE, CLSSGB
Course Instructor
Intended Learning Outcomes
At the end of this lesson, students are expected to:

▪ Explain the importance of the human resource.

➢ How an organization’s human resources can be a significant
source of competitive advantage.
➢ Activities necessary for staffing the organization and sustaining
high employee performance.

▪ Explain the importance of the human resource management process

and the environmental factors that most directly affect it.

▪ Define what is human resource planning.

➢ Contrast job analysis, job description, and job specification.
Intended Learning Outcomes
At the end of this lesson, students are expected to:

▪ Staffing the organization.

➢ Discuss the major sources of potential job candidates.
➢ Describe the different selection devices and discuss which
ones work best for different jobs.
➢ Explain what a realistic job preview is and why is it important.

▪ Orientation and Skill Development.

➢ Describe the different types of training and how that training
can be provided.
Intended Learning Outcomes
At the end of this lesson, students are expected to:

▪ Managing and Rewarding Performance.

➢ Describe the different performance appraisal methods.

▪ Compensation and Benefits.

➢ Discuss the factors that influence employee compensation and
benefits.
➢ Describe skill-based pay systems.

▪ Career Development.
➢ Describe career development for today’s employees.
Intended Learning Outcomes
At the end of this lesson, students are expected to:

▪ Current Issues in Human Resources Management.

➢ Explain how managers manage downsizing.
➢ Discuss how managers can make workforce diversity.
➢ Explain what sexual harassment is and what managers need
to know about it.
➢ Describe how organizations are dealing with work-life balances.
The Importance of HRM
1. HRM is necessary part of the organizing function of management.
▪ Selecting, training & evaluating the workforce

2. It is an important strategic tool.

▪ HRM helps establish an organization’s sustainable competitive
advantage.

3. It adds value to the firm.

▪ High performance work practices lead to both high individual
and high organizational performance.
Human Resources Management

Examples of High-Performance Work Practices

Human Resources Management
HRM for Non-HR Managers:

▪ Small vs. Large Organizations

▪ Large organizations have HR function.
▪ Small organizations may rely on managers to handle HR issues.

▪ All managers need to be aware of federal and provincial legislation

and company policies.
▪ Minimum wage law.
▪ Benefits mandatory provided by law to workers such as SSS,
Pag-ibig, Philhealth, vacation leaves, sick leaves, etc.
Human Resources Management
The HRM Process:
Functions of the HRM Process
1. Identifying and selecting competent employees.

2. Providing employees with up-to-date knowledge and skills to

do their jobs.

3. Ensuring that the organization retains competent and high-

performing employees.
Human Resources Management
Environmental Factors Affecting HRM:

1. Labor Union
➢ An organization that represents workers and seeks to protect
their interests through collective bargaining.

Collective Bargaining Agreement

➢ A contractual agreement between an organization and a union,
covering wages, hours, and working conditions of workers.
Human Resources Management
Environmental Factors Affecting HRM:

2. Legislation Affecting Workplace Conditions

➢ Canada Labor Code / Philippine Labor Code
➢ Occupational Safety and Health Act
➢ Workplace Hazardous Materials Information System (WHMIS)
➢ Employment Standards Legislation
Human Resources Management
Environmental Factors Affecting HRM:

3. Antidiscrimination Legislation
➢ The Charter of Rights and Freedoms and the Canadian Human
Rights Act
➢ The Employment Equity Act
➢ Different laws prohibiting discrimination against gender, age,
disability, race, etc.
Human Resources Management
Environmental Factors Affecting HRM:

4. Economy’s Effect on the HRM Process

➢ Lifetime employment is long gone and corporate pension plans
are crumbling.
➢ The jobless rate will continue to increase in most countries
➢ Reduced work hours, which affected employees’ pay and their
skill upgrades.
➢ Temporary or contract positions, rather than full-time jobs with
benefits.
Human Resources Management
Environmental Factors Affecting HRM:

5. Demographic Trends
▪ Four generations working side-by-side in the workplace
➢ The oldest, most experienced workers (those born before 1946)
make up 6% of the workforce.
➢ The baby boomers (those born between 1946 and 1964) make
up 41.5% of the workforce.
➢ Gen Xers (those born between 1965 to 1977) make up almost
29% of the workforce.
➢ Gen Yers (those born between 1978 to 1994) make up almost
24% of the workforce.
The HRM Process
I. Human Resource (HR) Planning:
▪ The process by which managers ensure that they have the right number
and kinds of people in the right places, and the right times, who are
capable of effectively and efficiently performing their tasks.
▪ Helps avoid sudden talent shortages & surpluses.

Steps in HR Planning:

1. Assessing current human resources

2. Assessing future needs for human resources and developing a
program
The HRM Process
1. Human Resources Inventory
▪ A review of the current makeup of the organization’s
resources/employees status which usually includes information on
employees such as the name, education, training, prior employment,
languages spoken, special capabilities, and specialized skills.

HR Management Information Systems (HRMIS)

▪ A database that tracks employees’ information for policy and strategic
needs.
The HRM Process
Job Analysis

▪ An assessment that defines a job and the behaviors necessary to

perform the job; knowledge, skills, and abilities.

▪ Requires conducting interviews, engaging in direct observation, and

collecting the self-reports of employees and their managers.
The HRM Process
Job Description

▪ A written statement of what the job holder does, how it is done, and why
it is done.

Job Specification

▪ A written statement of the minimum qualifications that a person must

possess to perform a given job successfully.
The HRM Process
2. Meeting Future HR Needs

▪ Future HR needs are determined by the organization’s mission, goals,

and strategies.
▪ Demand for employees results from demand for the organization’s
products or services.
▪ After assessing both current capabilities and future needs, managers
can estimate areas in which the organization will be understaffed or
overstaffed.
The HRM Process
2. Meeting Future HR Needs
The HRM Process
II. Staffing the Organization

▪ Recruitment
➢ The process of locating, identifying, and attracting capable
applicants to an organization.
▪ E-recruiting
➢ Recruitment of employees through the internet, organizational
websites, and online recruiters.
▪ Decruitment
➢ The process of reducing a surplus of employees in the
workforce of an organization (includes firing, layoffs, transfers,
reduced workweeks, and early retirements).
The HRM Process
Major Sources of Potential Job Candidates
The HRM Process
Decruitment Options
The HRM Process
III. Selection Process

▪ The process of screening job applicants to ensure that the most

appropriate candidates are hired.

▪ Selection:
➢ An exercise in predicting which applicants, if hired, will be (or
will not be) successful in performing well on the criteria the
organization uses to evaluate performance.

Selection Errors:

1. Reject errors for potentially successful applicants.

2. Accept errors for ultimately poor performers.
The HRM Process
Validity and Reliability:

▪ Validity (of prediction)

➢ A proven relationship between the selection device used and
some relevant criterion for successful performance in an
organization.
➢ High test scores equate to high job performance; low scores to poor
performance.

▪ Reliability (of prediction)

➢ The degree of consistency with which a selection device
measures the same thing.
➢ Individual test scores obtained with a selection device are consistent
over multiple testing instances.
The HRM Process
Types of Selection Devices

▪ Application Forms
▪ Written Tests
▪ Performance Simulations
▪ Interviews
▪ Background Investigations
▪ Physical Examinations
The HRM Process
The HRM Process
Written Tests (Types of Tests)

▪ Intelligence: how smart are you?

▪ Aptitude: can you learn to do it?
▪ Ability: can you do it?
▪ Interest: do you want to do it?
The HRM Process
Performance Simulation Tests

▪ Testing an applicant’s ability to perform actual job behaviors, use

required skills, and demonstrate specific knowledge of the job.

▪ Work Sampling
➢ Requiring applicants to actually perform a task or set of tasks
that are central to successful job performance.

▪ Assessment Centers
➢ Dedicated facilities in which job candidates undergo a series of
performance simulation tests to evaluate their managerial
potential.
The HRM Process
Performance Simulation Tests

▪ Situational Interviews
➢ Interviews in which candidates are evaluated on how well they
handle role play in mock scenarios.

▪ Background Investigations
➢ Verification of Application Data
➢ Reference Checks
➢ Lack validity because self-selection of references ensures only positive
outcomes.

▪ Physical Examinations
➢ Useful for physical requirements
The HRM Process
Performance Simulation Tests

▪ Realistic Job Interviews

➢ The process of relating to an applicant both the positive and
the negative aspects of the job.
➢ Encourages mismatched applicants to withdraw.
➢ Aligns successful applicants’ expectations with actual job
conditions, reducing turnover.
The HRM Process
Questions Not Asked to Job Candidates:
▪ About name changes; maiden name
▪ For birth certificate, baptismal records, or about age in general
▪ About pregnancy, child bearing plans, or child care arrangements
▪ Whether applicant is single, married, divorced, engaged, separated, or widowed
▪ About birthplace, nationality of ancestors, spouse or other relatives
▪ Whether born in Canada
▪ For photo to be attached to application or sent to interviewer before interview
▪ About religious affiliation, church membership, frequency of church attendance
▪ Whether the applicant drinks or uses drugs
▪ Whether the applicant has ever been convicted
▪ Whether the applicant has ever been arrested
▪ Whether the applicant has a criminal record
▪ About the applicant’s sexual orientation
The HRM Process
Quality of Selection Devices as Predictors
The HRM Process
IV. Orientation

▪ Work-unit Orientation
➢ Familiarizes new employee with work-unit goals
➢ Clarifies how his or her job contributes to unit goals
➢ Introduces employee to his or her co-workers

▪ Organization Orientation
➢ Informs new employee about the organization’s objectives,
history, philosophy, procedures, and
➢ Includes a tour of the entire facility
The HRM Process
V. Training
▪ An organized activity aimed at imparting information and/or instructions
to improve the recipient’s performance or to help him or her attain a
required level of knowledge or skill.

Types of Training

● Interpersonal skills ● Technical skills

● Business skills ● Mandatory skills
● Performance management skills
● Problem solving/decision making skills
● Personal skills
The HRM Process
Employee Training Methods
The HRM Process
VI. Performance Management System

▪ A process of establishing performance standards and appraising

employee performance in order to arrive at objective HR decisions and
to provide documentation in support of those decisions.
The HRM Process
Performance Appraisal Methods

● Written Essays
● Critical Incidents
● Graphic Rating Scales
● Behaviourally Anchored Rating Scales (BARS)
● Multi-person Comparisons
● Management by Objectives (MBO)
● 360-Degree Feedback
The HRM Process
Advantages and Disadvantages of Performance Appraisal Methods
The HRM Process
VII. Compensation and Benefits

▪ Benefits of a Fair, Effective, and Appropriate Compensation System

➢ Helps attract and retain high-performance employees
➢ Impacts on the strategic performance of the firm

▪ Types of Compensation
➢ Base wage or salary
➢ Wage and salary add-ons
➢ Incentive payments
➢ Skill-based pay
The HRM Process

● Base wage or salary

- is a fixed amount of money paid to an employee
by an employer in return for work performed and
does not include benefits, bonuses or any other
potential compensation.

● Wage & salary add-ons

- includes the employee’s base wage or salary
plus overtime pay, night shift differentials, working
on weekends/holidays, on call pay, etc.
The HRM Process

● Incentive payment
- is a monetary gift provided to an employee
based on performance, which is thought of as one
way to entice the employee to continue delivering
positive results. It may come in the form of bonus,
profit sharing or commission.

● Skill-based pay
- rewards employees for the job skills and
competencies they can demonstrate. Under this
type of pay system, an employee’s job title doesn’t
define his/her pay category, skills do.
The HRM Process

● Variable pay
- a pay system in which an individual’s
compensation is contingent on performance. It is
something that is a part of an employee’s salary
which depends on the employee’s and companies
performance.
The HRM Process
Factors that Influence Compensation & Benefits
The HRM Process
VIII. Career Development
● What is a career?
- a sequence of positions held by a person during his or her lifetime.

● Career Development
- Provides for information, assessment, & training
- Helps attract and retain highly talented people

● Boundaryless Career
- A career in which individuals, not organizations, define career
progression, organizational loyalty, important skills, and marketplace
value.
The HRM Process

Top Ten (10) Job Factors for College Graduates:

1. Enjoying what they do
2. Opportunity to use skills and abilities
3. Opportunity for personal development
4. Feeling what they do matters
5. Benefits
6. Recognition for good performance
7. Friendly co-workers
8. Job location
9. Lots of money
10. Working on teams
Contemporary HRM Issues

Contemporary Issues in Managing Human

Resources:
1. Managing downsizing
- is the planned elimination of jobs in an
organization which can be due to the need to
cut costs, declining market share,
overaggressive organizational growth.
● Provide open and honest communication
● Reassure survivors
Contemporary HRM Issues

2. Managing workforce diversity

- workforce diversity refers to the variety of
differences between people in an
organization. It encompasses race, gender,
ethnic group, age, personality, cognitive style,
tenure, organizational function, education,
background, etc.
● Recruitment for diversity
● Selection without
discrimination
● Orientation and training
that is effective
Contemporary HRM Issues

3. Sexual Harassment
- defined as any unwanted action or activity of a
sexual nature that explicitly or implicitly
affects an individual’s employment,
performance, or work environment.
- the Equal Employment Opportunity Commission
(EEOC) defines sexual harassment as the
behaviour marked by sexually aggressive
remarks, unwanted touching and sexual
advances, requests for sexual favours, or
other verbal or physical conduct of a sexual
nature, which can occur between members of
the opposite sex or of the same sex.
Contemporary HRM Issues

● Educate all employees on sexual harassment

matters
● The key is being attuned to what makes fellow
employees uncomfortable—and if you don’t
know, then you should ask.
Workplace Romances:
● Educate employees about the potential for
sexual harassment when coworkers stop
dating
● Discourage workplace romances and require
supervisors to report any such relationships
to the HR department
Contemporary HRM Issues

4. Work-Life Balance
- Employees have personal lives that they don’t
leave behind when they come to work.
- Organizations have become more attuned to
their employees by offering family-friendly
benefits such as:
● On-site child care
● Summer day camps
● Flextime
● Job sharing
● Leave for personal matters
● Flexible job hours