HRM Prelims

Service Learning

Giving back to the communities

Competitiveness

• An organization’s ability to maintain and gain market share in its industry.

• What you have that others do not have.

Industry

Any department or branch of occupation or business especially one which employs much labor and capital; distinct branch of trade

Business Model

• Story of how the organization will create value for customers and, more importantly, how it will do so profitably.

• Harmonizes all unites in one unified goal and direction.

• These are things that worked, did not work, or are seen to work.

Strategy

• Overall plans or approaches that guide an organization to achieve long-term goals.

• big picture thinking and decision making

• Refers to the fundamental directions that an organization chooses to follow.

Tactics

Specific actions implemented to actualize and support the overall strategy; short term

Strategy Formulation

The process of deciding on a strategic direction by defining an organization’s mission, vision, core values, and goals, its external opportunities and threats, and its internal strengths and weaknesses.

Efficiency

Doing things in the best possible way using the least amount of resources

Effectiveness

Achieving the desired outcome or goal with no care of the resources used

Vision Statement

• Desired future state or outcome

• Always has a time element

Mission Statement

• An organization’s purpose or reason for being

• The means for attaining the vision

Strengths

Characteristics of a business which give it advantages over its competitors

Weaknesses

Characteristics of a business which make it disadvantageous relative to competitors

Opportunities

Elements in a company’s external environment that allow it to formulate and implement strategies to increase profitability

Threats

Elements in the external environment that could endanger the integrity and profitability of the business

Strategic Choice

The ways an organization will attempt to fulfill its mission and achieve its long-term goals

Strategic implementation

The process of devising structures and allocating resources to enact the strategy an organization has chosen

Employer

Meaning of ER

Employee

Meaning of EE

Four-Fold Test Doctrine

SPaDisCo

• Selection and engagement of ee

• PAyment of wages

• power of DISmissal/disciplinary actions

• power to COntrol the ee

Right-Of-Control Test

Initially found application in the case of viaña vs. al-lagadan and piga

Economic Reality Test

• Sevilla v. court of appeals

• Totality of economic circumstances of the worker

• Considers whether the worker is economically dependent on the employer or is in business for themselves

Two-Tiered Test

Assesses the level of control the employer has over the means AND methods of the worker and examines the economic realities of the relationship

Human Resources Management

The process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them

Strategic Human Resources Management

• Art and science of effectively acquiring, motivating, and developing people in their roles while considering their skills, goals, and the organization's vision and resources

• Aims to align individual and organizational objectives for optimal achievement

HR Planning

• Forecasting arm

• Helps ensure the right people with the right skills are in the right positions at the right time

Recruitment/Selection

• Onboarding arm

• Finding and hiring suitable candidates for job openings and integrating them into the organization

Performance Management

• Diagnostic arm

• Evaluating and improving employee performance through feedback, goal setting, and coaching

Learning and Development

• Educational arm

• Providing opportunities for employees to acquire new skills and knowledge to enhance their performance and career advancement

Compensation and Benefits

• Rewards/recognition arm

• Recognizes and rewards employee contributions, enhances job satisfaction, and helps the organization remain competitive in the labor market

Labor and Employee Relations

• Discipline/wellness arm

• Managing relationships between employees and the organization, including handling conflicts, grievances, and promoting employee well-being

Communications Management

• Information arm

• Facilitating effective communication within the organization to ensure clarity, transparency, and alignment of goals and expectations

Organizational Development

• Change management arm

• Implementing planned changes to improve organizational effectiveness, such as restructuring, mergers, or culture change initiatives

Strategic Planner

• Management of strategic human resources

• Executing strategy

• Aligning HR and business strategy: organizational diagnosis

Administrative Expert

• Management of firm instructure

• Building an efficient infrastructure

• Reengineering organization process: shared services

Employee Champion

• Management of employee contribution

• Increase employee commitment and capability

• Listening and responding to employees: providing resources

Change Agent

• Management of transformation and change

• Creating a renewed organization

• Managing transformation and change: ensuring capacity for change

Small-Scale Organizations

• HR manager is a true generalist; covers all areas of HR management

• Gets support from consulting firms

Medium-Scale Organizations

HRM justifies the hiring of specialists

Large-Scale Organizations

• HR director has a unit manager reporting to them

• Functions are handled by units or sections

Staffing

Involves the entire hiring process from posting a job to negotiating a salary package

Development of Workplace Policies

Ensures fairness, order, and continuity within the organization

Rewards Administration

Considers the need to determine that compensation is fair, meets industry standards, and is high enough to entice people to work for the organization

Employee Retention

Involves keeping and motivating employees to stay with the organization

Talent Development

Considers the need to make sure employees are not only trained to do the job but also continue to grow and develop new skills in their work

Dealing with Employment Laws

The legal environment of SHRM is always changing, so SHRM must always be aware of changes taking place and then communicate those changes to the entire management organization

Worker Protection

Safety is a major consideration in all organizations

Onshoring

the practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated

Nearshoring

The practice of transferring a business operation to a nearby country, especially in preference to a more distant one

Offshoring

The practice of basing some of a company’s processes or services overseas, so as to take advantage of lower costs

Value Proposition

An innovation, service, or feature intended to make a company or product attractive to customers/clients

Poaching

The practice of explicitly rallying former colleagues to join you in a new organization

Control Test

The most important determinant of the employer-employee relationship

Specific

S in SMARTER principle means…

Measurable

M in SMARTER principle means…

Attainable

A in SMARTER principle means…

Relevant

R in SMARTER principle means…

Timebound

T in SMARTER principle means…

Evaluated

E in SMARTER principle means…

Reviewed

R in SMARTER principle means…

Business Acumen

The competency that is related to one’s knowledge of how the business operates and makes money

Piracy

The practice of inviting a competent and promising talent to join a competitor organization.

People

In Ulrich’s HR Roles, Change Agent + Employee Champion particularly targets this focus are

Criticial Incident

A kind of training needs assessment where practitioners respond to areas for improvement on-the-spot

Civil Service Commission

The Human Resources department of the Philippine government

Headcount Analysis

A kind of analysis that ensures that all employees are physically known to report in the organization

Jurisprudence

Court decisions that eventually become part of the laws of the land are called…

Ethical Standards

Rules that apply to any kind of practice. (ex. law, medicine, management, etc.); Tend to be idealistic.

Mandatory Ethics

• Where individuals focus on compliance with the law and the dictates of profession code of ethics that apply to their practice.

• Based on written and established rules, regulations, etc.

Aspirational Ethics

• A more ethically sophisticated level wherein individuals additionally reflect on the effects of the situations on the welfare of their clients and the effects of their actions on the profession as a whole.

• Follows the spirit behind ethical codes.

Professional Ethics

Means that a practitioner is acting according to standards of practice defined as acceptable by the profession.

Ethical Compliance

The importance of knowing the contents of professional best practices and codes of conduct and the purposes and limitations of such is essential to the understanding of ethical and legal issues in people management.

Ethical Problem

A circumstance that puts the person in hot waters because of a clear violation of established rules, regulations, standards, etc.

Clear Conflict

Ethical Problem is also known as…

Ethical Dilemma

• A circumstance that confuses the practitioner because:

  • There are competing or conflicting ethical standards that apply.

  • There is conflict between what is ethical and moral.

Unclear Conflict

Ethical Dilemma is also known as…

Competence

Refers to the ability to perform effectively.

Legal Standards

Related to accepted professional practices in the community.

Corporate Culture

• The sum of all tolerated, created, propagated, envisioned, implemented, renewed, remembered, executed, etc. in an organization.

• Amplified by the behaviors of leaders.

• Embedded in a network of organizational practices

Corruption

• Poses a serious development challenge and results in the inefficient provision of services.

• Disregards known facts and thus the possibility of rational decision making.

Nepotism

The practice among those with power or influence favoring relatives or friends, especially by giving them jobs.

Conformity

Relentless and excessive submission to questionable practices.

Bribery

The act of giving or receiving something of value in exchange for some kind of influence or action in return, that the recipient would otherwise not alter.

Embezzlement

The act of withholding assets for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes.

Kickbacks

The payment to a recipient as compensation or reward for providing favorable treatment or services to another party.

Godfatherism

A form of political corruption in which an influential member of a party assists another person in the climb to leadership.

Trust

Ethical Challenges for HR Professionals

• People undergo a process of opening in the hope that their problems will be addressed.

• Recognizing and respecting the potential harm that could result from harmful treatment of people is essential.

Conferred Power

Ethical Challenges for HR Professionals

• Competent professionals can do things that a person without competence can do.

• People open and allow us to explore private aspects of their histories, fantasies, hopes, and fears.

• Clients tell us their most guarded secrets.

• We have the power to hold private information about our clients.

Power to Name and Define

Ethical Challenges for HR Professionals

• To help someone is to exercise power.

• Such labels, conferred by professionals, are as influential on the person as they are on their relatives and friends and it should not surprise anyone that these act on all of them as self-fulfilling prophecies.

• Eventually, the person accepts the counsel and behaves accordingly.

Power of Testimony

Ethical Challenges for HR Professionals

• We possess authority to affect lives through our testimony as experts in the civil and criminal courts and through similar judicial or administrative proceedings.

• Our testimony may influence a jury’s decision that the plaintiff was an innocent victim of a needles trauma or a chronic liar or a malingerer.

Power of Knowledge

Ethical Challenges for HR Professionals

• Acknowledging and respecting this and expertise is essential to avoid the subtle ways of manipulating and exploiting clients.

Care

Ethical Challenges for HR Professionals

• Pertains to placing client’s welfare foremost and not allowing our personal judgment or services to be drawn off course by one’s own needs.

• It includes assuming personal responsibility for working to help and to avoid harming or endangering our clients.

Tiangco vs Legardo, Jr.

In this legal case, the employer carried on the practice of giving a fixed monthly emergency allowance from November 1976 to February 1980, or three years and four months.

Davao Integrated Port Steveforing Services vs Abarquez

In this legal case, the employer, for three years and nine months, approved the commutation to cash of the unenjoyed portion of the sick leave with pay benefits of its Intermittent workers.

Sevilla Trading Company vs Semana

In this legal case, the employer kept the practice of including non-basic benefits such as paid leaves for unused sick leave and vacation in the computation of their 13th-month pay for at least two (2) years.

Competitive Advantage

• The end product of all strategies.

• The quest of all strategic choices that organizations make.

Cascade Approach

Objective-setting process made in such a manner so that all levels of management is involved in the organizational planning process.

Personpower Planning

• Obtaining the right numbers and kinds of people at the right time to fulfill organizational needs.

• Assessing the organization’s personpower needs in the light of organizational goals and changing conditions and making plans to ensure that a competent workforce is employed.

Human Resources Planning

Process by which a company decides how an organization should move from its current personpower position to its desired and appropriate personpower position.

Benchmarking

Deeply examines the organization’s internal processes and practices and measures them against successful practices of other organizations.