LEARNING MANUAL

HUMAN RESOURCES MANAGEM ENT

CHAPTER 5
THE HUMAN RESOURCES
DEPARTMENT IN THE
ORGANIZATION

HEIYAN VON P. LAPPAY

INSTRUCTOR
 CHAPTER 5
THE HUMAN RESOURCES DEPARTMENT IN THE ORGANIZATION

A. Human Resources Department

The Human Resource (HR) Department is a core function within any organization,
responsible for managing the full employee lifecycle, from recruitment to retirement.
This department plays a pivotal role in hiring the right talent, ensuring employee
engagement, training, and development, and fostering a productive work environment.
HR professionals handle recruitment and selection, onboarding, performance
management, compensation, benefits, and compliance with labor laws. They also
address employee relations, conflict resolution, and cultural development to ensure
alignment with organizational goals. By focusing on people management, the HR
Department supports organizational growth and sustainability, making it integral to a
company's overall success.

A company's human resource department is tasked with the training and

development of its workers, who are considered some of the company's most
important resources. Also known as human resources (HR), the human resource
department's mission is to make sure the company's employees are adequately
managed, appropriately compensated, and effectively trained. The department is also
responsible for recruiting, hiring, firing, and administering benefits.

A human resource department is involved with making sure the company has a
solid roster of employees, who are trained to fulfill their roles and compensated
appropriately for doing so. The human resource department provides effective
policies, procedures, and people-friendly guidelines and support. Additionally, the
human resource function serves to make sure that the company's mission, vision, and
values are part of the company culture.

• Recruiting. In recruitment, Human Resource Department plays a strategic

role in identifying and attracting qualified candidates to meet organizational
needs. This process begins with analyzing job requirements, crafting
accurate job descriptions, and establishing candidate criteria. HRM
professionals use various channels, including online job boards, social
media, and industry networks, to reach a diverse pool of applicants. They
screen resumes, conduct interviews, and assess skills to ensure alignment
with both the role and company culture. Through effective recruitment
strategies, HRM ensures that the organization has the right people in the
right positions, ultimately supporting long-term business success and
workforce stability.

• Hiring. In the hiring phase, the HR Department is crucial in selecting and

securing the most suitable candidates to fill organizational roles. This
involves coordinating interviews, evaluating candidate qualifications, and
collaborating with hiring managers to make informed decisions. The HR
team assesses not only technical skills and experience but also cultural fit,
 ensuring that new hires align with the company’s values and work
environment. Once a candidate is selected, HR manages the offer process,
including salary negotiation, contract preparation, and role clarification. By
handling these responsibilities, the HR Department ensures a smooth and
professional hiring experience, laying the foundation for positive, long-term
employee engagement.

• Administration. In the area of administration, the HR Department oversees

essential processes that maintain organizational structure and compliance.
This includes managing employee records, payroll processing, benefits
administration, and adherence to labor laws and company policies. HR
ensures accurate documentation of personnel information, monitors
attendance, handles leave requests, and coordinates benefits programs
such as health insurance and retirement plans. Additionally, HR oversees
compliance with workplace safety standards and legal regulations,
protecting both employees and the organization. Through effective
administration, the HR Department maintains order, consistency, and legal
compliance, supporting overall organizational efficiency and employee well-
being.

• Compensation. In compensation, the HR Department plays a key role in

developing and managing fair and competitive salary structures to attract
and retain talent. This involves analyzing market salary trends, establishing
pay grades, and setting compensation policies that align with the
organization’s financial goals and industry standards. HR professionals
ensure that salaries, bonuses, and incentives are distributed equitably
based on job roles, employee performance, and experience levels.
Additionally, they review and adjust compensation packages periodically to
remain competitive and comply with wage regulations. By managing
compensation effectively, the HR Department fosters employee satisfaction
and motivation, contributing to overall productivity and organizational
loyalty.

• Training. In training, the HR Department is responsible for developing

programs that enhance employee skills and support career growth. This
process includes assessing training needs, designing curricula, and
organizing workshops or courses that align with both individual and
organizational goals. HR coordinates onboarding sessions for new hires
and ongoing training initiatives that keep employees up-to-date with
industry standards, technological advancements, and role-specific skills. By
fostering a culture of continuous learning, the HR Department not only
improves employee performance and engagement but also increases the
organization’s adaptability and competitiveness. Through effective training
programs, HR helps build a skilled, confident, and resilient workforce.

• Development. In development, the HR Department focuses on long-term

employee growth and career advancement to build leadership and
specialized skills within the organization. This involves identifying high-
 potential employees, creating personalized development plans, and offering
programs such as mentorship, coaching, and leadership training. HR
actively supports employees in setting career goals, acquiring new
competencies, and preparing for future roles, aligning individual aspirations
with organizational needs. By investing in development, HR fosters a culture
of continuous improvement and prepares employees to take on greater
responsibilities, enhancing job satisfaction, retention, and organizational
resilience. This strategic focus on development helps ensure a strong,
capable workforce for the organization’s future.

• Firing. In the firing process, the HR Department plays a sensitive and

structured role to ensure terminations are conducted fairly, legally, and
respectfully. This process may involve documenting performance issues,
providing warnings, and offering opportunities for improvement before a
final decision is made. When termination is necessary, HR handles the
logistics of the separation, including final paperwork, benefits processing,
and exit interviews to gain insights for future improvements. Additionally,
HR ensures compliance with labor laws, maintains confidentiality, and
protects the rights of both the employee and the organization. Through a
transparent and compassionate approach, the HR Department minimizes
potential conflicts, maintains morale, and upholds the organization’s values
and reputation.

B. Human Resources Department Structure

The HR department is a critical component of any organization, managing its most

valuable asset – its employees. Its structure typically consists of HR professionals
focusing on specific areas such as recruitment, employee relations, training and
development, compensation and benefits, and HR operations. The importance of the
HR department lies in its role in shaping the overall organizational culture, ensuring
compliance with labor laws, and driving employee engagement and retention.

The structure of the Human Resources (HR) Department is designed to manage

diverse functions that support employees and align with organizational goals.
Typically, an HR department is organized into specialized teams or roles, such as
recruitment, training and development, compensation and benefits, employee
relations, and compliance. Each team focuses on specific areas, with leadership roles
like HR managers or directors overseeing strategies and decision-making across all
functions. In larger organizations, there may be additional specialized roles, such as
HR analysts or diversity and inclusion officers, to meet complex workforce needs. This
structure allows the HR Department to operate efficiently, respond to employee needs,
and adapt to organizational changes, ultimately contributing to a positive, productive
workplace.
 C. Importance of Human Resource Department Structure

The HR department structure is crucial for the effective management of an

organization’s most valuable asset – its people. A well-defined HR department
structure ensures that the company’s human resources are managed efficiently,
leading to improved employee productivity, satisfaction, and retention. This structure
also enables the HR department to effectively handle various responsibilities such as
recruitment, training and development, performance management, and employee
relations. Additionally, a clearly defined HR department structure allows for better
coordination and communication within the organization, ultimately contributing to
the achievement of the company’s goals and objectives. Therefore, understanding the
importance of HR department structure is essential for any organization looking to
create a positive and productive work environment.

• Specialization and Expertise: Specialization and expertise are vital to the

Human Resource Development (HRD) structure as they allow HR
professionals to focus on specific areas like training, recruitment, and
performance management. Specialization enables efficient task delegation,
while expertise ensures that HR practices align with industry standards.
Together, they contribute to effective employee development, compliance,
and overall productivity, helping HRD strategically support organizational
goals.
• Efficiency and Productivity: Efficiency and productivity are crucial in the
structure of the Human Resource (HR) Department. A well-organized HR
structure streamlines processes like hiring, training, and performance
management, allowing tasks to be completed faster and with fewer
resources. This efficiency enhances productivity by ensuring that
employees are effectively supported and well-prepared to meet their goals,
directly contributing to the organization’s success.
• Alignment with Organizational Goals: Alignment with organizational goals
is a key aspect of an effective Human Resource (HR) Department structure.
By structuring HR practices—such as talent acquisition, training, and
performance management—to support the company’s objectives, HR
ensures that employee efforts contribute directly to strategic goals. This
alignment fosters a cohesive work environment where every role and
process support overall growth and success.
• Improved Communication: Improved communication is a critical benefit of
a well-structured Human Resource (HR) Department. A clear HR structure
facilitates efficient information flow between employees and management,
ensuring that policies, feedback, and updates are effectively
communicated. This fosters transparency, reduces misunderstandings, and
promotes a more cohesive workplace, helping employees stay informed
and aligned with organizational goals.
• Compliance and Risk Management: Compliance and risk management are
essential components of an effective Human Resource (HR) Department
structure. A well-organized HR structure ensures that policies and
procedures adhere to legal and regulatory standards, reducing the risk of
non-compliance. This proactive approach minimizes legal liabilities,
 protects the organization’s reputation, and creates a safer, more ethical
work environment for all employees.
• Enhanced Employee Support: Enhanced employee support is a crucial
benefit of a well-structured Human Resource (HR) Department. By
organizing functions like onboarding, training, and benefits administration,
HR can effectively address employee needs, fostering a positive work
environment. This support improves job satisfaction, aids in retention, and
helps employees reach their full potential, contributing to overall
organizational success.
• Adaptability to Change: Adaptability to change is a vital benefit of an
effective Human Resource (HR) Department structure. A flexible HR
structure allows the department to quickly respond to shifts in the business
environment, such as new technologies, policies, or workforce needs. This
adaptability ensures that the organization remains resilient, helping
employees smoothly transition through changes and maintaining
productivity during periods of transformation.

D. Effective Management of Human Resource Department

Effective management of the Human Resource (HR) Department is critical to the

success of any organization, as it directly impacts employee satisfaction, productivity,
and overall organizational performance. Here are the key strategies for managing the
HR Department effectively:

1. Strategic Planning: Align the HR strategy with the organization’s overall

business goals. Strategic planning is crucial for the effective management of
the Human Resources (HR) Department. It involves aligning HR activities with
the organization’s overall goals, ensuring that talent acquisition, employee
development, and retention strategies are focused on long-term success.
Through strategic planning, HR can anticipate future needs, optimize workforce
potential, and contribute to achieving the company’s objectives, fostering
overall organizational growth.
2. Employee Engagement: Employee engagement is a key factor in the effective
management of the Human Resources (HR) Department. By fostering a
positive work environment, providing growth opportunities, and ensuring open
communication, HR can increase employee motivation and commitment.
Engaged employees are more productive, loyal, and aligned with organizational
goals, which ultimately leads to higher performance and overall business
success.
3. Talent Acquisition and Development: Talent acquisition and development are
essential to the effective management of the Human Resource (HR)
Department. By attracting skilled candidates and providing ongoing training
and career growth opportunities, HR ensures that the organization has a
capable and adaptable workforce. This focus on acquiring and nurturing talent
helps to meet business needs, improve employee performance, and support
long-term organizational success.
4. Performance Management: Performance management is a key aspect of
effective management within the Human Resource (HR) Department. It
involves setting clear goals, providing regular feedback, and evaluating
employee performance to ensure alignment with organizational objectives. By
effectively managing performance, HR helps employees grow, identify areas for
improvement, and maintain high levels of productivity, ultimately contributing
to the organization’s overall success.
5. Compliance and Ethics: Compliance and ethics are critical to the effective
management of the Human Resource (HR) Department. Ensuring that HR
practices adhere to legal regulations and ethical standards helps protect the
organization from legal risks and promotes a fair, respectful work environment.
By maintaining compliance and upholding ethical practices, HR fosters trust,
reduces liabilities, and supports a positive organizational culture.
6. Technology Integration: Technology integration is essential for the effective
management of the Human Resource (HR) Department. By adopting HR
software and digital tools, HR can streamline processes such as recruitment,
payroll, performance tracking, and employee communication. This integration
increases efficiency, improves data accuracy, and enhances decision-making,
allowing HR to focus on strategic initiatives that support the organization’s
growth and success.
7. Crisis Management: Crisis management is a crucial component of effective
management within the Human Resource (HR) Department. HR plays a key role
in responding to unforeseen challenges, such as workforce disruptions,
organizational changes, or external crises. By developing clear communication
strategies, offering support to employees, and implementing recovery plans, HR
ensures business continuity and helps the organization navigate through
difficult situations while maintaining employee well-being and morale.
8. Data-Driven Decision Making: Data-driven decision-making is essential for the
effective management of the Human Resource (HR) Department. By leveraging
data analytics, HR can make informed decisions on recruitment, employee
performance, compensation, and retention strategies. This approach enhances
accuracy, optimizes HR processes, and ensures that decisions are aligned with
organizational goals, ultimately driving better outcomes for both employees
and the organization.
9. Leadership Development: Leadership development is a vital aspect of effective
management within the Human Resource (HR) Department. By identifying and
nurturing future leaders, HR ensures that the organization has skilled
individuals ready to take on key roles. Through training, mentoring, and growth
opportunities, HR fosters strong leadership that drives organizational success,
enhances team performance, and supports long-term strategic goals.
10. Workplace Culture: Workplace culture is a fundamental element of effective
management within the Human Resource (HR) Department. HR plays a key role
in shaping and maintaining a positive, inclusive, and values-driven work
environment. By promoting open communication, collaboration, and employee
well-being, HR helps cultivate a culture that aligns with organizational goals,
improves employee satisfaction, and boosts overall productivity.
 E. Enhancing Employee Engagement and Satisfaction

Employee engagement is crucial for ensuring a vibrant company culture and high
levels of satisfaction among the workforce. HR activities play a significant role in
enhancing employee engagement, such as recognizing achievements, sharing
successes and failures, asking for feedback, organizing company-wide gatherings,
and mediating conflicts. These activities create a positive and inclusive environment,
leading to higher job satisfaction and commitment.

It is important to emphasize the significance of two-way dialogue and engagement

between employees and leadership. Regular communication and collaboration build
trust, promote transparency, and demonstrate that employee input is valued. This
approach fosters a culture of open communication and involvement, leading to higher
levels of engagement and satisfaction.

Enhancing employee engagement and satisfaction is essential for fostering a

productive work environment and achieving organizational success. Here are several
strategies that organizations can implement to boost employee engagement and
satisfaction:

1. Open Communication: Open communication is crucial in enhancing employee

engagement and satisfaction. When employees feel informed, valued, and able
to express their thoughts and concerns freely, it fosters trust and transparency.
This open exchange not only strengthens relationships between employees
and management but also promotes a positive work environment where
employees are more likely to be motivated, committed, and aligned with
organizational goals, ultimately leading to higher job satisfaction.
2. Recognition and Rewards: Recognition and rewards are key to enhancing
employee engagement and satisfaction. Acknowledging employees’ hard work
and achievements, whether through praise or tangible rewards, boosts morale
and motivates them to perform at their best. This sense of appreciation fosters
a positive work environment, strengthens employee loyalty, and encourages
greater commitment, leading to increased job satisfaction and overall
productivity.
3. Career Development Opportunities: Career development opportunities play a
crucial role in enhancing employee engagement and satisfaction. When
employees have access to training, mentorship, and growth opportunities, they
feel valued and invested in by the organization. This not only boosts their
motivation and job satisfaction but also fosters long-term loyalty and
commitment, as employees are more likely to stay with a company that
supports their professional development and career progression.
4. Work-Life Balance: Work-life balance is essential in enhancing employee
engagement and satisfaction. When employees can effectively manage their
professional and personal lives, they experience less stress and burnout,
leading to greater job satisfaction and well-being. Organizations that promote
work-life balance through flexible schedules or supportive policies create a
positive work environment, fostering higher employee engagement,
productivity, and long-term retention.
 5. Employee Involvement: Employee involvement is key to enhancing
engagement and satisfaction. When employees are actively involved in
decision-making processes, given a voice in company matters, and encouraged
to contribute ideas, they feel more valued and empowered. This sense of
ownership fosters greater commitment to their work, strengthens their
connection to the organization, and leads to higher levels of job satisfaction
and motivation.
6. Supportive Leadership: Supportive leadership is crucial in enhancing employee
engagement and satisfaction. Leaders who help with guidance,
encouragement, and resources employees feel valued and capable of
performing their best. This support fosters a positive work environment where
employees are motivated, confident, and more likely to be engaged with their
work, leading to higher job satisfaction and stronger organizational
commitment. Supportive leadership is a management style that focuses on the
needs of employees and can help to improve employee performance and
reduce job stress.
7. Team Building Activities: Team building activities are essential for enhancing
employee engagement and satisfaction. These activities encourage
collaboration, trust, and camaraderie among employees, helping to strengthen
relationships and improve communication within teams. By fostering a sense
of unity and belonging, team-building activities create a positive work
environment where employees feel more engaged, motivated, and satisfied
with their roles, leading to better overall performance and workplace morale.
8. Health and Wellness Programs: Health and wellness programs are vital in
enhancing employee engagement and satisfaction. By offering initiatives such
as fitness memberships, mental health support, and stress management
resources, organizations show they care about their employees' well-being.
These programs help reduce stress, improve overall health, and create a
positive work environment, leading to higher job satisfaction, increased
engagement, and improved productivity.
9. Career Pathing: Career pathing is an important factor in enhancing employee
engagement and satisfaction. By providing clear, structured pathways for
career growth, employees can see opportunities for advancement within the
organization. This sense of direction motivates them to invest in their roles,
improves job satisfaction, and increases commitment to the organization, as
employees feel supported in achieving their professional goals.
10. Feedback Mechanisms: Feedback mechanisms are essential in enhancing
employee engagement and satisfaction. Regular, constructive feedback helps
employees understand their performance, recognize areas for improvement,
and feel valued for their contributions. When employees receive timely and
clear feedback, it fosters a sense of growth and development, leading to higher
engagement, motivation, and overall job satisfaction.

F. Aligning Human Resource Functions with Organizational Goals and Strategies

Aligning HR functions with organizational goals and strategies involves integrating

the company’s mission and objectives into HR structures and processes. This can be
achieved by creating a customized approach that fits the unique vision and goals of
the organization, ensuring that HR practices are directly aligned with the overall
business strategy. By doing so, HR can play a pivotal role in driving the organization’s
success by focusing on key areas that support the overarching goals, such as talent
acquisition, performance management, and employee development. Additionally,
embracing flexibility within HR functions can foster agility and swift decision-making,
allowing HR to adapt to changing business needs and support the organization in
achieving its strategic objectives. By aligning HR functions with the organizational
goals and strategies, HR can contribute to the overall success of the company and
ensure that its workforce is effectively supporting the mission and vision of the
organization.

Aligning Human Resource (HR) functions with organizational goals and strategies
is critical for ensuring that the workforce effectively contributes to the overall mission
and objectives of the organization. Here are key approaches to achieve this alignment:

1. Understanding Organizational Goals: HR leaders must have a thorough

understanding of the organization’s vision, mission, and strategic objectives.
This involves collaborating with senior management to identify key priorities
and how HR can support these initiatives through talent management and
workforce planning.
2. Workforce Planning: Develop a workforce plan that identifies the skills, roles,
and number of employees needed to achieve organizational goals. This plan
should align recruitment and training efforts with the strategic direction of the
company, ensuring that the right talent is in place to meet future demands.
3. Talent Acquisition: Tailor recruitment strategies to attract candidates who not
only possess the required skills but also align with the organization’s culture
and values. By focusing on cultural fit, HR can enhance employee engagement
and retention, directly supporting the organization’s long-term success.
4. Performance Management Systems: Design performance management
processes that reflect the organization’s goals and values. Establish clear
performance metrics that are aligned with strategic objectives, and regularly
evaluate employees on their contributions to these goals. This ensures that
employees understand how their work impacts the organization.
5. Training and Development: Create training programs that equip employees
with the skills necessary to support organizational strategies. This includes
leadership development programs, technical skills training, and initiatives that
foster innovation and adaptability, all of which contribute to achieving business
objectives.
6. Compensation and Benefits Alignment: Structure compensation and benefits
packages to attract and retain talent that aligns with strategic goals. This may
include performance-based incentives that reward employees for achieving key
objectives, thereby motivating them to contribute to the organization’s success.
7. Employee Engagement Initiatives: Implement programs that enhance
employee engagement and satisfaction, as engaged employees are more likely
to contribute positively to organizational goals. Regularly assess engagement
levels through surveys and feedback mechanisms to make necessary
adjustments.
 8. Change Management: Support organizational change initiatives by preparing
the workforce for transitions. HR should develop change management
strategies that align with business strategies, ensuring that employees are
equipped to navigate changes effectively.
9. Data-Driven Decision Making: Utilize HR analytics to inform strategic decisions
and measure the impact of HR initiatives on organizational performance. By
analyzing data related to employee performance, turnover rates, and
engagement levels, HR can make informed adjustments that align with
organizational goals.
10. Collaboration Across Departments: Foster collaboration between HR and other
departments to ensure that HR initiatives support cross-functional objectives.
Regular communication and partnership with other departments enhance the
alignment of HR functions with broader organizational strategies.

G. Types of Human Resource Department Structures

The structure of an HR department is crucial to the efficiency and functionality of

an organization. There are various types of HR department structures, each with its
own set of advantages and drawbacks. By understanding the various HR department
structures, businesses can better align their HR functions with their overall business
strategy and goals.

1. Traditional Hierarchical Structure. In a traditional hierarchical structure, the HR

department typically follows a top-down approach, with decision-making
authority concentrated at the top levels of management.

A traditional hierarchical structure in an HR department typically features

multiple levels of management, with a clear chain of command and defined
roles and responsibilities. Here’s an example of how a traditional hierarchical
structure might be organized within an HR department:

Example: Traditional Hierarchical Structure in HR Department

1. Chief Human Resources Officer (CHRO)

o Role: The CHRO is the top executive in the HR department, responsible
for setting the overall HR strategy and aligning it with organizational
goals. This role involves making high-level decisions regarding talent
management, compliance, and workforce planning.
2. HR Director
o Role: Reporting to the CHRO, the HR Director oversees specific HR
functions such as recruitment, training and development, compensation
and benefits, and employee relations. The HR Director develops policies
and procedures to implement the HR strategy.
3. HR Managers
o Recruitment Manager: Manages the recruitment team, oversees the
hiring process, and develops recruitment strategies to attract top talent.
 oTraining and Development Manager: Responsible for designing and
implementing training programs, employee development initiatives, and
performance management systems.
o Compensation and Benefits Manager: Oversees employee
compensation structures, benefits programs, and payroll processes.
This manager ensures that the organization remains competitive in its
compensation practices.
o Employee Relations Manager: Handles employee concerns, conflict
resolution, and ensures compliance with labor laws and company
policies.
4. HR Specialists/Coordinators
o Recruitment Specialist: Supports the recruitment manager by posting
job openings, screening applications, and coordinating interviews.
o Training Coordinator: Assists the training and development manager in
organizing training sessions, workshops, and employee development
activities.
o Compensation Analyst: Works under the compensation and benefits
manager to analyze pay structures, conduct market research, and help
design benefits packages.
o Employee Relations Specialist: Assists in resolving employee issues,
conducting exit interviews, and implementing engagement initiatives.
5. HR Assistants/Administrators
o HR Assistant: Provides administrative support to the HR department,
including maintaining employee records, processing paperwork, and
assisting with payroll.
o Recruitment Assistant: Aids in the recruitment process by scheduling
interviews, managing candidate communication, and maintaining
applicant tracking systems.

Characteristics of a Traditional Hierarchical Structure in HRD

• Clear Chain of Command: Each level of the hierarchy has distinct authority and
reporting relationships, from the CHRO down to HR assistants.
• Defined Roles and Responsibilities: Each position has specific functions,
leading to a clear understanding of job expectations and accountability.
• Formal Communication: Information typically flows from the top down, with
structured reporting channels and limited upward communication.
• Stability and Control: This structure allows for better supervision and control
of HR processes and policies, ensuring compliance with organizational
standards.

Benefits of a Traditional Hierarchical Structure in HRD

• Order and Stability: A well-defined hierarchy helps maintain order and clarity
within the department, making it easier to implement policies and procedures.
• Specialization: Each role can focus on specific areas of expertise, leading to
improved efficiency and effectiveness in HR functions.
• Clear Accountability: With defined roles, it is easier to identify who is
responsible for specific outcomes and decisions within the HR department.
In the Philippines, several organizations employ traditional hierarchical structures
within their Human Resources (HR) departments. This structure is characterized by
multiple levels of management, clear reporting lines, and well-defined roles and
responsibilities. Such an arrangement is particularly prevalent in large corporations
and multinational companies operating in the country.

Examples of Companies with Traditional Hierarchical HR Structures in the

Philippines:

1. San Miguel Corporation (SMC)

o Overview: As one of the Philippines' largest and most diversified
conglomerates, SMC has a complex organizational structure. Its HR
department follows a traditional hierarchy, with a Chief Human
Resources Officer (CHRO) overseeing various HR functions, including
recruitment, training and development, compensation and benefits, and
employee relations. Each function is managed by directors and
managers who report to the CHRO.
2. Ayala Corporation
o Overview: A leading conglomerate with interests in real estate, banking,
telecommunications, and utilities, Ayala Corporation's HR department
operates under a hierarchical structure. The CHRO leads the department,
supported by HR directors and managers responsible for specific
functions such as talent acquisition, learning and development, and
employee engagement.
3. SM Investments Corporation
o Overview: As a major player in retail, banking, and property development,
SM Investments Corporation employs a traditional HR structure. The HR
department is headed by a CHRO, with various HR managers overseeing
functions like recruitment, training, compensation, and employee
relations.
4. Jollibee Foods Corporation
o Overview: Known for its fast-food chains, Jollibee Foods Corporation
has a hierarchical HR structure. The HR department is led by a CHRO,
with managers handling recruitment, training, and employee relations,
ensuring alignment with the company's strategic goals.
5. PLDT Inc.
o Overview: As a leading telecommunications company, PLDT Inc. has a
traditional HR structure. The HR department is managed by a CHRO, with
directors and managers overseeing areas such as talent acquisition,
learning and development, and employee engagement.

2. Flat Structure in Human Resource Department. In a flat structure HR

department, there are few to no levels of middle management, with decisions
and communication flowing directly from the Head of HR to the HR
professionals.

A flat organizational structure minimizes levels of hierarchy, promoting a more

collaborative and agile environment. In a Human Resources Department (HRD) using
a flat structure, there are fewer management layers, and employees often have more
autonomy and responsibility. Here’s an example of how a flat structure might look in
an HRD:

Example: Flat Structure in HR Department

1. HR Director
o Role: Oversees the entire HR function and sets the strategic direction for
HR initiatives. The HR Director works closely with all team members to
foster collaboration and ensure alignment with organizational goals.
2. HR Team Members
o Recruitment Specialist: Manages the hiring process, including job
postings, screening candidates, and conducting interviews. Works
closely with the HR Director and other team members to identify staffing
needs.
o Training and Development Coordinator: Responsible for organizing and
facilitating training programs, workshops, and professional
development initiatives. Collaborates with team members to assess
training needs across the organization.
o Employee Relations Advocate: Focuses on fostering a positive
workplace culture, addressing employee concerns, and implementing
engagement initiatives. This role encourages open communication
among employees and management.
o Compensation and Benefits Analyst: Manages compensation
structures, analyzes benefits offerings, and ensures competitive pay
practices. Works directly with the HR Director to make
recommendations for adjustments based on market trends.
3. Cross-Functional Collaboration
o In a flat structure, all HR team members are encouraged to collaborate
on projects and share ideas. For instance, the Recruitment Specialist
may work closely with the Training Coordinator to ensure new hires
receive appropriate onboarding and training, while the Employee
Relations Advocate collaborates with the Compensation Analyst to
ensure that employee feedback is considered in benefits decisions.
Characteristics of a Flat Structure in HRD
• Less Hierarchy: With only one or two levels of management, the HR Director
directly interacts with team members, fostering an inclusive and open
environment.
• Empowerment and Autonomy: Employees are encouraged to take ownership
of their roles, make decisions, and contribute to strategic planning.
• Enhanced Communication: Information flows freely among team members,
promoting transparency and faster decision-making.
• Flexibility and Agility: The team can quickly adapt to changing organizational
needs, implement new initiatives, and respond to employee feedback.
Benefits of a Flat Structure in HRD
• Increased Collaboration: Team members often share ideas and solutions more
readily, leading to innovative HR practices.
 • Faster Decision-Making: With fewer layers of approval, the HR team can
respond more swiftly to issues and implement changes effectively.
• Stronger Employee Engagement: Empowering employees within a flat
structure can enhance job satisfaction and morale, as they feel more connected
to their work and the organization.

In the Philippines, certain organizations adopt a flat organizational structure within

their Human Resources (HR) departments. This approach minimizes hierarchical
levels, promoting direct communication and collaboration among team members.
While specific examples of companies with flat HR structures in the Philippines are
not readily available, the following organizations are known for their progressive HR
practices and may employ flatter structures:

1. Zalora Philippines. As a leading online fashion retailer, Zalora emphasizes a

dynamic and collaborative work environment. The company is known for its
innovative HR practices, which may include a flatter organizational structure to
foster agility and responsiveness.
2. Google Philippines. Google is renowned for its flat organizational structure
globally, promoting open communication and collaboration. The Philippine
office likely mirrors this approach, encouraging a less hierarchical HR
department to align with the company's global culture.
3. AirAsia Philippines. As a low-cost airline, AirAsia emphasizes efficiency and
innovation. The company is known for its progressive HR practices, which may
include a flatter organizational structure to foster agility and responsiveness.
4. Globe Telecom. Globe Telecom has been recognized for its innovative HR
practices and focus on employee engagement. The company may employ a
flatter HR structure to promote collaboration and responsiveness to
organizational needs.

3. Matrix Structure in Human Resource Department. The matrix structure can be

applied within an HR department by incorporating both centralized and
decentralized aspects. This means that there will be independent HR functional
departments for project-specific tasks, but they will also report to the HR
manager and specific departments within the company.

A matrix organizational structure combines elements of both functional and

project-based structures, allowing for increased flexibility and collaboration
across different teams. In an HR department using a matrix structure,
employees have dual reporting relationships, typically to both a functional
manager (like the HR Director) and a project or program manager. Here’s an
example of how a matrix structure might be organized within an HR
department:

Example: Matrix Structure in HR Department

Functional Managers
1. HR Director
 o Role: Oversees the overall HR department and sets the strategic
direction for HR initiatives. Responsible for aligning HR functions with
organizational goals.
2. Functional Teams
o Recruitment Manager
▪ Responsible for overseeing the recruitment team and managing
the hiring process for the organization.
o Training and Development Manager
▪ Focuses on employee training programs and development
initiatives, ensuring employees have the necessary skills to
succeed.
o Compensation and Benefits Manager
▪ Manages compensation structures and benefits programs,
ensuring competitive pay practices and compliance with
regulations.
o Employee Relations Manager
▪ Oversees employee relations initiatives, including conflict
resolution and engagement strategies.
Project Managers
3. Project Team Leaders
o Diversity and Inclusion Project Leader
▪ Coordinates initiatives aimed at enhancing diversity and inclusion
within the organization. This leader works closely with the
Employee Relations Manager and HR staff to implement related
training and policies.
o Talent Development Project Leader
▪ Manages special projects related to talent development, such as
leadership training programs or succession planning initiatives.
This leader collaborates with the Training and Development
Manager and other HR specialists.
o Employee Engagement Project Leader
▪ Oversees initiatives to improve employee satisfaction and
engagement, working in tandem with the Employee Relations
Manager and the HR team to gather feedback and implement
changes.
Key Roles and Responsibilities
• HR Specialists/Coordinators
o Recruitment Specialist: Works under the Recruitment Manager but may
report to the Talent Development Project Leader when involved in
specific talent acquisition initiatives.
o Training Coordinator: Reports to the Training and Development Manager
but collaborates with the Diversity and Inclusion Project Leader on
specific training sessions.
o Compensation Analyst: Primarily reports to the Compensation and
Benefits Manager but may also work with project teams to provide
insights on compensation related to talent development initiatives.
 o Employee Relations Specialist: Reports to the Employee Relations
Manager but collaborates with project leaders on initiatives aimed at
improving employee engagement and workplace culture.

Characteristics of a Matrix Structure in HRD

• Dual Reporting Relationships: Employees have two supervisors—one
functional manager and one project manager—allowing for better resource
allocation and flexibility.
• Collaboration and Teamwork: The matrix structure encourages collaboration
across different functional areas, promoting innovative solutions and shared
expertise.
• Adaptability: This structure allows the HR department to respond quickly to
changing organizational needs and project demands by reallocating resources
as necessary.
Benefits of a Matrix Structure in HRD
• Enhanced Flexibility: HR professionals can easily shift between projects and
functional duties, adapting to organizational priorities as they change.
• Improved Communication: Cross-functional collaboration fosters better
communication and information sharing, leading to more effective HR
initiatives.
• Skill Development: Employees have opportunities to develop a broader range
of skills by working on various projects, enhancing their career growth and
satisfaction.

In the Philippines, several organizations have adopted a matrix organizational

structure within their Human Resources (HR) departments to enhance flexibility,
collaboration, and responsiveness to dynamic business needs. This structure
allows HR professionals to report to multiple managers, facilitating cross-
functional teamwork and efficient project management.

Examples of Companies with Matrix HR Structures in the Philippines:

1. Jollibee Foods Corporation. As a leading fast-food chain, Jollibee has

expanded its operations globally. To manage its diverse HR functions
across various regions and brands, the company employs a matrix
structure. This approach enables HR professionals to collaborate across
different functions and regions, ensuring alignment with the company's
strategic goals.
2. PLDT Inc. A major telecommunications company in the Philippines,
PLDT has a complex organizational structure to manage its extensive
operations. The HR department utilizes a matrix structure to oversee
various functions such as recruitment, training, and employee relations,
allowing for effective management of its diverse workforce.
3. Ayala Corporation. As a leading conglomerate with interests in real
estate, banking, telecommunications, and utilities, Ayala Corporation
employs a matrix structure in its HR department. This structure
facilitates collaboration across different business units and functions,
ensuring that HR strategies are aligned with the company's diverse
operations.