HRM Q1 Prelims

Human Resource Management

• The process of planning, organizing, directing (motivating), and controlling the procurement, development, compensation, integration, maintenance, and separation of organizational human resources to the end that organizational, individual, and societal needs are satisfied.

• includes all activities used to attract & retain employees and to ensure they perform at a high level in meeting organizational goals.

1. Recruitment & selection.

2. Training and development.

3. Performance appraisal and feedback.

4. Pay and benefits.

5. Labor relations

Activities in HRM

HR Planning

includes all activities managers do to forecast current and future HR needs.

• Must be done prior to recruitment and selection

• Demand forecasts made by managers estimate the number & qualifications the firm will need.

• Supply forecasts estimate the availability and qualifications of current workers and those in the labor market.

• recruitment

• training and development

• performance appraisal and feedback

• pay and benefits

• labor relations

HRM Components

Component

Should be consistent with the others, organization structure, and strategy

recruitment

develop a pool of qualified applicants

selection

selection

determine relative qualifications and potential for a new job

training and development

ongoing process to develop worker’s abilities and skills
whatever ___ efforts used, results must be transferred to the workplace

performance appraisal and feedback

provides information about how to train, motivate, and reward workers

managers

managers

Who can evaluate and then give feedback to enhance worker performance?

pay and benefits

high performing employees should be rewarded with raises, bonuses

• increased pay provides additional incentive

• benefits, such as health insurance, reward membership in firm

labor relations

managers need an effective relationship with labor unions that represent workers

unions

help establish pay and working conditions

adjusted

if management moves to a decentralized structure, hrm should be ___ as well

external recruiting

managers look outside the firm for ppl who have not worked at the firm before

• advertise in newspapers, hold open houses, recruit at univs, and on the internet

• difficult since many new jobs have specific skill needs

• multi-prong approach to external recruiting works best

internal recruiting

positions filled within the firm

benefits:

• workers know the firm’s culture

• managers likely already know the candidates

• internal advancement can motivate employees

outsourcing

managers can decide to contract with outside workers rather than hiring them

• flexible for the firm

• human capital at a lower cost

outsource problems

• managers lose control over output

• contractors are not committed to the firm

• unions typically are against outsourcing that has potential to eliminate member’s jobs

• bg info

• references

• paper tests

• physical ability tests

• performance tests

• interviews

selection tools

selection process

after a pool of applicants are identified, qualifications related to the job requirements are determined

background information

includes education, prior employment, college major

interview

almost all firms use on of two types: structured, unstructured

structures interview

managers ask each person the same job related questions

• usually preferred, bias is possible

Physical Ability test

measure strength and endurance

• good for physically demanding jobs

paper and pencil tests

either an ability and personality test

• be sure test is a good predictor of job performance

ability test

assess if applicant has right skills for the job

personality test

seek traits relevant to job performance

performance test

measure job performance

• ex. typing speed

assessment center

candidates assessed on job-related activities over a period of a few days

references

outside people provide candid information about candidate

• can be hard to get accurate info

reliability and validity

• selection tools must be reliable and valid

• managers have an ethical and legal duty to develop good selection tools

reliability

the degree to which the tool measures the same thing each time it is used

• scores should be close for the same person taking the same test over time

validity

does the test measure what it is supposed to measure?

• example: does a physical ability test really predict the job performance of a firefighter

labor union

organization with legal authority to negotiate with the employer on behalf of employees

bonafide occupational qualification (Boq)

individual characteristics necessary for performance of job requirements

union shop

must be in the union

training

teach organizational members how to perform current jobs

• help worker’s acquire skills to perform effectively

• used more often at lower levels of firm, development is common with managers

development

build worker’s skills to enable them to take on new duties

Needs Assessment

A ___ should be taken first to determine who needs which program and what topics should be stressed

• varied work experiences

• formal education

Types of Development

varied work experiences

top managers must build expertise in many areas

• workers identified as possible top managers given many different tasks

formal education

tuition reimbursement is common for managers taking classes for MBA or similar

• long-distance learning can also be used to reduce travel

right-to-work laws

can’t force membership

contrast error

interviewer bases judgement of a candidates upon a comparison with preceding interviewee

similarity error

bias toward a candidate that is similar to the interviewee

situational interviews

give scenarios to candidates and judge their response

job analysis

the act of examining positions within an organziation

job description

narrative explaining the scope of a position

job characteristics

tasks involved in a position

job requirements

personal characteristics necessary to fill a positions

performance appraisal

Process of evaluating employee performance

job related strengths

• development needs

• progress toward goals

• determine ways to improve performance

• Pay an promotion decisions

More systematic is better, for the most part

• self appraisal

• peer appraisal

• 360 degree appraisal

performance appraisal types

central tendency error

everyone ranked as average

leniency

individuals are ranked higher than they deserve

• supervisors

• customers and clients

• subordinates

• self

• peers

sources of performance appraisals

pay level

how the firm’s pay incentives compare to other firms in the industry

• managers can decide to offer low or high relative wages

pay structure

clusters job s into categories based on importance, skills, and other issues

benefits

some are required (social security, workers comp)

• others (health insurance, day care, and others) are provided at the employers option

cafeteria style plan

employee can choose the best mix of benefits for them. can be hard to manage.

base wage

job based and competency based

job based pay

paid for the job that is done

competency based pay

pay is linked to job-relevant skills, kowledge, experience

incentive pay

linked to job performance

• can increase motivation

• links employees to firm performance

• works well when employees trust firm

• piece rate

• commissions

• bonuses

• merit pay

• seniority

individuals incentives

piece rate

pay for each unit of output

commissions

pay from percentage of sales or profits

bonuses

lump sum payments

merit pay

permanent increases in base pay linked to individual’s previous perormance

seniority

increases over time

• gain sharing

• profit sharing

• stock owenrship

team or organizational incentive

gain sharing

teams of employees share in gains from improvements in productivity or cost saving measures

profit sharing

a percentage of profits earned by a department or company

stock ownership

• options

• employee stock ownership plans

The Early Years and Colonial Era (1900–1945)

Before the Labor Code, labor rights were established through specific acts, often influenced by American labor standards.

1902: Founding of the Union Obrera Democratica (UOD)

by Isabelo de los Reyes, the first labor federation in the country.

1903

first official labor day (May 1)

1908

Act No. 1868 creates the Bureau of Labor under the Department of Commerce and Police.

1923

•Act No. 3071 is passed to regulate the employment of women and children.

1936

Commonwealth Act No. 103

1939

Commonwealth Act No. 444 (Eight-Hour Labor Law)

Post-War to the Martial Law Era (1946–1985)

This period saw the transition from "compulsory arbitration" to "collective bargaining" and eventually the birth of the Labor Code.

1953: Republic Act (R.A.) 875 (The Industrial Peace Act)

also known as the "Magna Carta of Labor," shifts the focus toward collective bargaining rather than government arbitration.

1954: R.A. 1167 (The Minimum Wage Law)

is enacted following recommendations from the Bell Economic Mission.

1974: Presidential Decree (P.D.) 442 (The Labor Code of the Philippines)

is signed by President Ferdinand Marcos on May 1. This remains the primary law governing employment today.

1975: P.D. 851 (13th Month Pay Law)

requires all employers to pay a 13th-month salary to employees.

1980s

Various decrees (e.g., B.P. Blg. 130 and 227) are passed to restrict strikes during the latter years of Martial Law.

The Democratic Era and Modern Reforms (1986–Present)

Post-EDSA legislation focused on restoring worker rights and addressing specific social issues like sexual harassment and discrimination.

1987

The New Philippine Constitution is ratified, explicitly guaranteeing the rights of workers to self-organization, collective bargaining, and the right to strike.

1989 R.A. 6715 (The Herrera Law)

amends the Labor Code to strengthen worker protection and security of tenure.

1989: R.A. 6727 (Wage Rationalization Act)

creates the Regional Tripartite Wages and Productivity Boards (RTWPBs) to set minimum wages by region.

1995: R.A. 7877 (Anti-Sexual Harassment Act)

makes sexual harassment unlawful in the workplace.

1996: R.A. 8187 (Paternity Leave Act)

grants 7 days of paid leave to married male employees.

2018: R.A. 11058 (Occupational Safety and Health Standards Act)

strengthens compliance and increases penalties for safety violations.

2019: R.A. 11210 (105-Day Expanded Maternity Leave Law)

significantly increases paid maternity leave from 60 days to 105 days.

2019: R.A. 11360 (Service Charge Law)

mandates that 100% of service charges collected by establishments be distributed to employees.

8-Hour Work Day

1939 CA 444

The labor code (the bible of ph labor)

1974 PD442

13th month pay

1975 PD 851

regional minimum wage setting

1989 ra 6727