Human

Resource
Management
CHAPTER 1 Changing Perspectives of Human Resource
Management

Evolution of Human Resource Management

Introduction Main Trends in HR Profession

to Human Resource Management Applications of Information Technology (IT)

in HR

HR Departments’ Organization Charts and

Structures
 Evolution of HRM
During the 1930s and the 1940s, the units with hiring
needs began to be called “personnel department” (the
word personnel is from an Old French word that
means person)
The Personnel Department was set up as a special
self-contained department with the responsibility of
hiring new workers and administering essential HR
activities
Until the 1990s, personnel management was not seen
as a particularly important critical function in a
business organization- others viewed personnel
management as a necessary vehicle for hiring new
employees
 Evolution of HRM
Over the years, HRM changed dramatically and
became much more important in most
organizations
Human Resource Management emerged in the
late 70s as a reaction against the more functional
approach embodied in personnel management
As of today, “human resources are the greatest
assets of the company”
Human Capital refers to the attributes gained by
a worker through education and experience
 Evolution of HRM
Thomas Davenport argued that human resources are assets, in his book
Human Capital (1999). He bristles that “assets are passive- bought, sold,
and replaced at the whim of their owners, workers in contrast take
increasingly active control over their lives. Human capital in reference to
workers now takes the place of human resources”.

HRM has become more complex because of the need to go beyond the
borders which have become “borderless” because of technological
innovations.
MAIN TRENDS IN THE HR PROFESSION
Human Resource and Information Technology (IT)

Information technology deals with how information is accessed,

gathered, analyzed, and communicated. The use of IT in HR started four
decades ago.

1960s- HR information systems were place in place and payroll

administration was computerized as well
1970s- introduced the use of powerful databases
1980s- greater integration of HR applications, which has increased
the popularity and number of organizations using IT.
 APPLICATIONS OF INFORMATION
TECHNOLOGY IN HR
The HR plan should be aligned with the business plan of the organization.
It is then critical for HR people to understand and initiate useful IT
applications in HR aligned with the company's goal of efficiency and
profitability. Some of these are the following:
1. Use of job boards and other similar web-based recruitment (e-
recruitment)
provides accessibility to a wider ranger range of applicants for the job
and usually communicates job vacancies and application procedures.
It includes resume submission, quick interactive screening
methodologies, online testing, and experience profiling.
 APPLICATIONS OF INFORMATION
TECHNOLOGY IN HR

1. Use of job boards and other similar web-based recruitment (e-

recruitment)

Advantages: Improvement in recruiting efficiency, cost saving, increased

quality and quantity of applicants, establishing, communicating, and
expanding identity, and more convenience on the part of applicants.

Disadvantage: increased in application quantity, but not necessarily the

quality of applicants, and losing personal relationship with the applicants
 APPLICATIONS OF INFORMATION
TECHNOLOGY IN HR
2. E- selection
uses of technology to help organizations more efficiently manage the
process of identifying the best job candidates- those who have the
right knowledge, skills, and abilities for each job and who may best fit
the organization. This can reduce the time and effort involved in
selecting the most qualified applicant for the job.

3. Employment Kiosk
provides updates on employee status and other pertinent
information initiated and made by the employees themselves. It is a
self-service delivery system that ensures that the employee data is
updated.
 APPLICATIONS OF INFORMATION
TECHNOLOGY IN HR
4. E- learnig
facilitates the learning process by providing just-in-time learning
opportunities. The use of a Learning Management System (LMS) will
allow HRD managers to focus on the more important aspects of their
job rather than being concerned with course registration and
following up attendance to training programs.
Advantages- increased employee flexibility control over learning,
reduction of training cost, and better tracking and management of
employee training

Disadvantage- isolating the trainee that can reduce career enhancement

through networking linkages.
 APPLICATIONS OF INFORMATION
TECHNOLOGY IN HR
5. Electronic Performance Support System (EPSS)
provides online coaching and mentoring services. Managers and
employees can access organizational information through an EPSS
application. It provides managers with an effective tool to
communicate and establish key result areas. This can make
performance appraisals more objective and less biased.

6. Salary and payroll administration

This ensures timely release of salaries, wages, bonuses, and other
similar compensation. (example: use of timesheets) Managers can
review and approve timesheets with just a few clicks. Payroll batches
are created automatically reducing data entry and ensuring timely
and accurate pay processing.
 APPLICATIONS OF INFORMATION
TECHNOLOGY IN HR
7. Growth of social networking sites like Facebook and Twitter
One of the next challenges for HR executives is learning to integrate
information from social networking sites. Potential benefits must be
balanced with issues of privacy and data accuracy. It is also known as e-hr
and it requires a fundamental change in the way HR professionals view
their roles.

8. Use of email
or electronic mail has emerged as the heart and soul of corporate
communication. Because of inbox overload and spams, it became difficult
to track messages efficiently. With this development, HR department with
the help of their IT experts should developunified messaging that will
allow workers to check and store emails related to work in one single
inbox.
 APPLICATIONS OF INFORMATION
TECHNOLOGY IN HR
9. Use of IT to foster customer involvement
because of the popularity of social media, companies started using
different social networking sites where they can post company updates,
service offerings, or just let the users of the account know their company
exists. HR departments should also start thinking how to use thgese social
media to improve and enhance employee services and employee
relations.
10. Telecommuting/ Teleworking
it is any form of substituting information technologies (such as
telecommunications/ or computers) to establish remote or virtual office-
the act of moving the work to the workers instead of moving the workers
to work. Teleworking closes the gap between “where people live and
work”. It provides jobs near homes or transforms homes into virtual office
extensions.
 APPLICATIONS OF INFORMATION
TECHNOLOGY IN HR
Benefits of Teleworking/ Telecommuting

1. Employer Benefits
Increased productivity, stimulated by lower absenteeism, higher
employees’ concentration on work, and fewer distractions
less travel time and better use of employees’ peak efficiency time
decreased turnover because of employee morale is higher and
more work options such as job or office sharing
hiring incentive to new employees
an opportunity to tap a new labor pools such as parents with young
children, person with disability, and the like.
 APPLICATIONS OF INFORMATION
TECHNOLOGY IN HR
Benefits of Teleworking/ Telecommuting

2. Employee Benefits
they save money on fuel, car maintenance, and insurance
a large reduction of stress
more time for families; more participation in their communities
fewer distractions on the job, greater work autonomy, and more
relaxed work environment
closer to their workplaces and thus can save hours each day on
their commute to work
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

HRIS is a database system that keeps important

information about employees in a central and accessible
location. It is a system for gathering and maintaining data
that describe the HR, transforming data into information;
and reporting the information to users.
(Fundamentals of Human Resource Management- DeCenzo and Robbins 2005)
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Purposes of HRIS
to improve the efficiency with which data on
employees and HR activities are compiled
to provide HR information more rapidly and more
easily to be used management’s decision making
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

HRIS Applications
The following are examples of organizations who made successful
use of HRIS to deal with problems related to HR and IT:
IBM
IBM Europe utilized HRIS in order to connect their 340,000 global
employees through revolutionary and engaging new company-
oriented social media
The online system has been tremendously well- received by
employees who can now research program information and access
decision support tools from their own homes.
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

HRIS Applications
The following are examples of organizations who made successful
use of HRIS to deal with problems related to HR and IT:
Toshiba America Medical Systems Inc. (TAMS)
By manipulating a streamlined and functional HRIS, TAMS,
moved all of their benefit information online. TAMS has created a
library of documents and forms on its Human Resources portal,
including the benefits guide.
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)
Some of the Benefits of HRIS Solution
1. Salary and Payroll Administration- payroll management is often a
tedious process that requires a high level of accuracy, timeliness, and
effective financial controls. HRIS can help keep work flow costs in check
and ensure that all employees are paid on time in any circumstances.
2. HR Training- it provides control of internal organizational training from
delegating participants to projecting budget, course scheduling and
enrollment, to training assessments and individual performance
appraisals.
3. Self- service Benefits Transaction- employees can gain online access
to their benefits package at their own leisure so they can focus on more
demanding tasks at hand during office hours
Examples of HR Data Accessed by Various
Stakeholders Using HRIS
POSITION ONLINE SELF- SERVICE

Job Openings
Applicants Application Blanks
Data in the company

Benefits enrollment and claims

Print payslips and current months
Enroll for training and check training schedule
Employees Dependent data
Download forms and templates for HR administration
Retirement planning scenarios
Provide feedback and view latest company news announcements
Examples of HR Data Accessed by Various
Stakeholders Using HRIS

POSITION ONLINE SELF- SERVICE

Training investment factor

Managers Cost per hire
Turnover costs

Data for HR forecasting and costing

Executives
Succession plans

Time and attendance data

External Groups Dependent health insurance status
Payroll information
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Examples of Software
Jeonsoft Payroll Suite 2006- is a client- server- based integrated
personnel and payroll system specifically designed for Philippine
use. It is composed of three major modules, namely: time
attendance system, payroll system, and HRIS system. The
system automates payroll computation while making recording
and retrieval of employee record fast and easy.

(E- age can be referred to as age of connectivity.)

HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

According to Johnson and Gueutal, HR is evolving into a more

technology- based profession because organizations need to:
streamline HR processes and reduce administrative burdens;
reduce HR administration and compliance costs;
compete more effectively for global talent;
improve service and access to data for employees and managers;
provide real- time metrics to allow decision- makers to spot trends
and manage the workforce more effectively and;
enable HR to transform so it can play a more strategic role in the
business.
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Labor Relations
Unionization and labor action have dwindled. According to
Bureau of Labor and Employment Statistics, one of the
department bureaus of Department of Labor and Employment, if
one will look at the percentage of labor union members to total
wage and salary workers, there is a notable decline.
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Increase in Social Contribution

Employees pay mandatory contributions in proportion to their
salary. The first one is Social Security System (SSS) which takes
contribution of 10.4% of monthly salary, This is less than half of
the rate in the public sector under the Government Service
Insurance System (GSIS) which is 21% of the monthly salary. To
equalize these two, there is a proposed plan from SSS to raise
contribution rate by 0.6 to 11% of the monthly salary, to be
equally shared by employers and workers.
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Increase in Social Contribution

There is also National Health Insurance Program to make sure
that employees are adequately covered by a health insurance. It
will enable them to manage the rising costs of hospitalization.
According to PhilHealth, it is a sure way to lessen the impact of
medical costs that can affect company’s finance. The premium
stands at 2.5% of the salary which is equally divided between the
employee and the employer.
Another mandatory contribution (issuance of R.A 9679) is the
PAGIBIG (Pagtutulungan sa Kinabukasan, Ikaw, Bangko, Industriya, at
Gobyerno Fund). The fund offers its members various benefits such
as savings, short- term loans, and access to housing programs.
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Business Process Outsourcing (BPO) in the Philippines and HR

Outsourcing is a proven tool that can help companies improve
service and better manage their operating costs and cash flow.
BPO is considered as one of the fastest growing business sectors
in the world including Philippines. It is an economic force that
propels our country to be considered as one of the emerging
global leaders in the BPO Industry.
Major concerns also occur in BPO industry which requires the HR
Department to formulate strategies to control its human
resource for BPO
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Business Process Outsourcing (BPO) in the Philippines and

HR
Leading companies know that human and organizational
performance are key determinants to high performance-
and more and more organizations are using outsourcing to
help them gain the most business advantage from their HR
functions.
HR Departments’ Organization Charts and
Structures

Organizations historically divided their managers into line

management and staff management, and HRM was
traditionally considered to be a staff function. Line managers
were directly responsible for the production of goods and
services while staff managers were responsible for indirect or
support function that would have costs but whose botto line
was less direct.
HR Departments’ Organization Charts and
Structures

NO two HR Departments have exactly the same roles sand

responsibilities. For some functions, HR department may have
full responsibility; for others, it may share responsibility with
supervisors of other departments.

A small independent business is generally operated in the same

way, with the owner or general manager handling human
resource duties. As the firm grows beyond a certain size,
however, a separate HR unit becomes a necessity.
HR Departments’ Organization Charts and
Structures
Centralization
Some organizations centralize HR. A centralized strategy locates
the design and administration responsibility in a single
organizational unit. Administration generally will fall to those
working in various units who are often HR generalists.
Generalists handle all HR activities rather than specializing in a
single area such as compensation or recruiting.

Decentralization
decentralization gives each unit the responsibility to design and
administer its own personnel system.
HR Departments’ Organization Charts and
Structures
Organization Chart
Organizations can use charts for a number of purposes. For
example, HR administration s, as well as chief executive officers,
corporate planners, marketing representatives, and others, can
use such organization charts to:
1. design their department or division;
2. monitor reporting reporting relationship
3. gain access to information about newly created job titles, staff
duties, and reporting relationships;
4. find out how leading agencies organize their management teams
and workforces
CHAPTER 2

JOB ANALYSIS
JOB ANALYSIS
Job analysis is conducted to determine the responsibilities inherent
in the position as well as the qualifications needed to fulfill its
responsibilities. It is essential when recruiting to locate an individual
having the requisite capabilities and education.

IMPORTANCE OF JOB ANALYSIS

Successful HRM practices can lead to outcomes that create
competitive advantage. When properly performed, job analysis can
enhance the success of HRM practices by laying the required
foundation.
 Definition of Different Job Terms
a. Position – consist of the responsibility and duties performed by an individual.
There are as many positions in a firm as there are employees.

b. Job – group of positions that are similar in duties. In some instances, only one
position may be involved, simply because no other similar position exists

c. Occupation – groups of jobs that are similar as to kind of work and are found
throughout an industry. An occupation is a category of work found in many firms.

d. Job Analysis – the procedure used for determining/collecting information relating

to the operations and responsibility of a specific job.

e. Job Description – organized, factual statements of the duties and responsibilities

of a specific job. It tells what is to be done, how it is done, and why- list of job duties,
responsibilities, reporting relationships, working conditions, and supervisory
responsibilities.
 Definition of Different Job Terms
f. Job Specifications – a written explanation of the minimum acceptable human
qualities necessary for effective performance of a given job

g. Job Classification – grouping of jobs on some specified basis such as kind of

work or pay. It can refer to a grouping by any selected characteristics but
preferably used most often in connection with pay and job evaluation

h. Job Evaluation – systematic and orderly process of determining the worth of a

job in relation to other jobs. The objective is to determine the correct rate of pay.

i. Tasks – coordinated and aggregated series of work elements use to produce an

output.

j. O* Net – online resource which has replaced the Dictionary of Job Titles; list of
job requirements for a very large number of jobs.
 Definition of Different Job Terms
k. Functional Job Analysis – a task-based or work-oriented technique
describing the work performed.

l. Position Analysis Questionnaire (PAQ) – an example of job analysis

method.
Job analysis provides information in several cases
including the following:

1. How much time is taken to complete basic tasks?

2. How are tasks grouped together into a job?
3. How can a job be designed so that the employee performance can
be improved?
4. What kind of skills is needed to perform a certain type of job?
5. What kind of person is best suited to perform a certain type of job?

All this information provides a foundation for other HR activities.

Specific Information Provided by Job Analysis

1. Job title and location.

2. Organizational relationship – brief explanation of the number of
persons supervised (if applicable) and job title of the position
supervised. It also reflects supervision received.
3. Relation to other jobs – describes and outlines the coordination
required by the job.
4. Job summary – condensed explanation of the content of the job.
5. Information concerning job requirements—usually provides
information about machines, tools, materials, mental complexity, and
attention required, physical demands, and working conditions. It varies
from job to job.
Uses of Job Analysis Information
1. Preparing the job description and writing the job specifications
the result of job analysis provides a complete description that
contains job summary, the job duties and responsibilities, machine and
equipment used, and some indications of the working conditions. It is
also used to describe the individual traits and characteristics required in
performing the job well.
2. Recruitment and selection
Job analysis information is useful when searching for the right
person to fill the job. It helps to seek and find the type of people that will
contribute to and suit the needs of the organization.
Uses of Job Analysis Information
3. Determining the rate of compensation
Job analysis information is also essential for estimating the value of
and appropriate compensation for each job. This is because
compensation usually depends on the job’s required skill and
educational level, safety hazards, degree of responsibility, and so on, all
of which are assessed through job analysis.
4. Performance appraisal
It involves comparison of actual versus planned output. Job analysis
information is used to identify the standards and performance
objectives and specific activities to be performed against which
employees are evaluated. It is used to acquire an idea of acceptable
level of performance for a job.
Uses of Job Analysis Information
5. Training
Job analysis information is used to design training and development
programs because the analysis and resulting job description show the
skills and therefore the kind of training that is required. Training and
development are conducted to satisfy these skills and competency
requirements.
6. Career planning and development
The movement of individuals into and out of positions, jobs, and
occupation is a common procedure in organizations. JA provides clear
and detailed information to employees on career movement.
Uses of Job Analysis Information
7. Safety
The safety of a job depends on the proper layout, standards,
equipment, and other physical conditions. What a job entails and the
type of people needed contribute information to establish safe
procedures so that unsafe practices can either be changed or
discontinued.
8. Labor relations
An attempt of an employee to add or subtract from the duties listed,
as a result Of job analysis, is already a violation of this standard. The
labor union as well as the management is interested in this matter.
Methods Used in Job Analysis
1. Interview
Job analysis information can be obtained by interviewing the job
incumbent or by group interviews with group of employees doing the
same job or by interviewing the supervisor who is knowledgeable about
the job. Interview information is particularly valuable for professional
and technical jobs that mainly involve thinking and problem solving.
2. Observation
Direct observation is especially useful when jobs consist mainly of
observable physical activity. Jobs like those of a janitor, production
workers, and drivers are example of these.
Methods Used in Job Analysis
3. Questionnaire
The use of questionnaire is usually the least costly method for
collecting large amount of information in a short period of time.
Advantages of using the questionnaire method include the information
gathered is quantitative in nature and can be easily updated as the job
changes. It also includes a detailed list of activities performed and the
importance of each activity or the percentage of time spent in
performing it.
4. Employee recording/use of log book
This is a recording by job incumbents of job duties, frequency of
the duties, and when the duties are accomplished. This can produce a
complete picture of the job, especially when supplemented with
subsequent interviews with the worker and the supervisor.
Steps in Conducting Job Analysis
Steps in Conducting Job Analysis
Step 1
provide a broad view of how each job fits into the total fabric of the
organization. This is to determine how the data will be used in HRM
planning. HR managers should decide what data needs to be collected,
the best method of collection, and the uses of the information in a
comprehensive HRM strategy.

Step 2
Identify the use to which the information will be put, since this will
determine the type of data to be collected and how to collect data. This
requires studying the organization charts, job description, and work
process charts.
Steps in Conducting Job Analysis
Step 3
Review relevant background information such as organization charts,
process charts, and existing job description. Organization chart shows
how the job in question relates to other jobs and where it fits in the
overall organization. It should identify the title of each position and, by
means of interconnecting lines, show who reports to whom in the
hierarchy
Step 4
This involves the actual analysis of job by collecting data on job activities,
required employee behavior, education training, experience requirement,
working hours, equipment used, required job duties, process workflow,
working conditions, and human traits and abilities needed to perform the
job. This is done through the use of the acceptable job analysis
techniques.
Steps in Conducting Job Analysis
Step 3
Review relevant background information such as organization charts,
process charts, and existing job description. Organization chart shows
how the job in question relates to other jobs and where it fits in the
overall organization. It should identify the title of each position and, by
means of interconnecting lines, show who reports to whom in the
hierarchy
Step 4
This involves the actual analysis of job by collecting data on job activities,
required employee behavior, education training, experience requirement,
working hours, equipment used, required job duties, process workflow,
working conditions, and human traits and abilities needed to perform the
job. This is done through the use of the acceptable job analysis
techniques.
 Writing the Job Description
The original purpose of job description is to establish the level of difficulty of a
specific position for the purpose of the establishing pay levels. The first and
immediate product of job analysis is the job description. As indicated, this is
basically descriptive and constitutes a record of existing and pertinent job facts.
These facts must be organized in some fashion in order to be usable. Suggested
contents are given as follows:

1. Date written
2. Job status – full-time/part-time including salary.
3. Job identification – The identification section includes such information
as job title, department, division, plant and code number of the job.
4. Job summary – A brief one or two-sentences statement describing the
purpose of the job and what outputs are expected from job incumbents.
 Writing the Job Description
5. Working relationship, responsibilities, and duties performed –
Relationship statement shows the jobholder’s relationship with others inside
and outside the organization. These include supervision received (to whom the
job incumbent reports) and supervision exercised (who reports to the
employee)
Below is an example of a job description:
Job Title: HR Manager

Reports to: Vice President of HR

Supervises: HR Assistant, Compensation, and Analyst, and Benefits Clerk

Coordinates with: All department managers and executive management

Outside the Company: Recruitment agencies, DOLE, union representative

 Writing the Job Description
Responsibilities and duties should be presented in clear and precise statements
and should include essential functions and major tasks, duties and responsibilities
performed. The function of each job should be identified and explained for the
benefit of the jobholder.

6. Authority of incumbent – defines the limit of the jobholder’s authority,

including his/her decision-making authority, direct supervision of other
personnel, and budgetary limitation.
7. Competency requirements – education and experience including
special skills required to perform a given job.
8. Working conditions – a list of the general working conditions involved
with the job, location of the job, and other relevant characteristics of the
immediate work environment such as hazards and noise levels.
 Writing the Job Description
Below is an example of a job specification:

Position Title: Chief Accountant

Division/Department: Accounting Department

Reports to: General Management

Coordinates with: All Department Heads

Supervises: All Accounting Personnel

New Job and Hot Jobs for the 21st Century

The Internet has changed the way people do things. More online
shopping, for example, means more jobs in package delivery
services. With more young people online, the Internet is also seen as
a key venue for reaching the coveted youth market.

There are several new titles including chart/board coordinator,

configuration manager, device driver engineers, network
administrator, networks engineer, page publisher, web developer
and web publisher, java programmer, e-business manager, and e-
consultant to name a few.
New Job and Hot Jobs for the 21st Century
Rapid advances in computers and telecommunications
technology are the main drivers behind the emergence of
new job titles. An “auditor” is now called an “e-commerce
accountant”. Apparently, e-commence accountants are
those who advise companies on whether they make
financial sense to sell goods and services online. The job
still requires traditional accounting training and license,
but to keep abreast with the times, they also need to be
familiar with software and Internet technologies.
New Job and Hot Jobs for the 21st Century

In the Philippines, a number of major private and

government agencies have already employed web designer’s,
content producers, and other Internet professionals.
Employment prospects and career advancement are
affected by the choice of course and school, as well as
academic achievement, individual aptitude, and so on
 Writing the Job Specifications

The job specification uses the job description to define the kind of human
traits and experience required to do a specific job well. It shows what
kinds of person to recruit and for what qualities that person should be
tested. Job specifications identify the minimum acceptable qualifications
required for an employee to perform the job adequately. The job
specification may be a separate section on the job description, a separate
document entirely, or at the concluding part of the job description.
 Writing the Job Specifications
This information contained in a job specification usually includes
the following basic criteria:
1. Knowledge – body of information one needs to perform a job;
2. Skills – the capability to perform a learned motor task such as
word processing skills;
3. Ability – the capability needed to perform non-motor tasks
such as communication abilities;
4. Persona characteristics – an individual’s traits such as tact,
assertiveness, concern for others, etc.;
5. Credentials – proof or documentation that an individual
possesses certain competencies;
6. Technical requirements – include criteria such as educational
background, related work experience, and training
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