o Public Employment Agencies – employers can register

their job vacancies with their local employment office,

HUMAN RESOURCE MANAGEMENT and the agency will try to find someone suitable, using its
computerized inventory of local unemployed individuals.
ACQUIRING AND PREPARING HUMAN RESOURCES o Private Employment Agencies – provides much the same
TOPICS: service for the white-collar market.
o Planning for and recruiting human resources o Colleges and Universities – most colleges and universities
o Selecting employees and placing them in jobs have placement services that seek to help their graduates
o Training employees obtain employment. (Ex: internship, career/job fairs)

THE PROCESS OF HR PLANNING REVIEW AND DISCUSSION QUESTION

• Organization should carry out human resource planning so as to meet
- Suppose an organization expects a labor shortage over the
business objectives and gain a competitive advantage over competitors.
next five years. Recommend general responses the
PROCESS OF HR PLANNING organization cold make in each of the following areas:
a. Recruitment
b. Training
c. Compensation (pay and employee benefits)
OPTIONS FOR AVOIDING SHORTAGE
Option Speed of Results
Overtime Fast
Temporary Fast
employees
Outsourcing Fast
MAJOR STEPS TO FORECASTING
Retrained transfers Slow
1. Forecasting the Demand for Labor - determines the labor demand for
workers in various job categories. Turnover reductions Slow
2. Determining Labor Supply - determines how many people are currently in Next external hires Slow
various job categories or have specific skills within the organization. Technological Slow
3. Determining Labor Supply or Shortage - summarizes the disadvantage and innovation
advantages of ways to eliminate a labor surplus and avoid a labor shortage.

JOB CATEGORIES SELECTING EMPLOYEES AND PLACING THEM IN JOBS

LAW AND SERVICE
EDUCATION HEALTH CARE SELECTION PROCESS
GOVERNMENT INDUSTRY
TRANSPORTATION ARTS COMMUNICATION CONSTRUCTION - Through personnel selection, organizations make
MANUFACTURING FINANCE
BUSINESS
TECHNOLOGY decisions about who will or will not be allowed to join the
ADMINISTRATION organization. Selection begins with the candidates
identifies through recruitment and with attempt to reduce
RECRUITING HUMAN RESOURCES their number to the individuals best qualified to perform
RECRUITING – any activity carried on by the organization with the the available jobs.
primary purpose of identifying and attracting potential employee. STEPS IN SELECTION PROCESS
ASPECTS OF RECRUITING
1. Personnel Policies – organization’s decisions about how it
will carry out human resource management, including
how it will fill job vacancies.
2. Recruiter Traits and Behaviors – recruiter affects the
nature of both the job vacancy and the applicants
generated.
3. Recruitment Sources – organization’s methods for
communicating its labor needs and the audience it targets TRAINING EMPLOYEES
will determine the size and nature of the labor market the
organization taps to fill its vacant position. WHAT IS TRAINING?

RECRUITMENT SOURCES Training consist of an organization’s planned efforts to help employees

acquire job-related knowledge, skills, abilities and behaviors, with the
• INTERNAL SOURCES – are employees who currently hold other goal of applying these on the job.
positions in the organization.
o Job Posting – process of communicating information INSTRUCTIONAL DESIGN – a process of systematically developing
about a job vacancy on company bulletin boards, in training to meet specified needs.
employee publications, on corporate internets, and STAGES OF STRUCTIONAL DESIGN
anywhere else the organization communicates with
employees.
• EXTERNAL SOURCES – are being used for entry level positions
and perhaps for specialized upper level positions to expose the
organization to new ideas or new ways of doing business.
o Direct Applicants and Referrals - people who apply for a
vacancy without prompting from the organization; people
who apply for a vacancy because someone in the
organization prompted them to do so.
o Electronic Recruiting – involves posting career information
at company’s websites.
o Print Ads (Newspapers and Magazines) – when the goals is
to find people who know the local community and to fins
people in specialized field, etc.
 DEVELOPING EMPLOYEES FOR FUTURE SUCCESS
METHODS OF TRAINING APPROACHES TO EMPLOYEE DEVELOPMENT
METHOD TECHNIQUES
Presentation Lectures,
methods: trainees workshops, video
receive clips, websites
information
provided by
others.
Hands-on On-the-job
methods: trainees training,
are actively simulation, role-
involved in trying plays, computer
out skills. games
Group-building Group discussions,
methods: trainees experimental
share ideas and programs, team SEPERATING AND RETAINING EMPLOYEES
experiences, build training MANAGING VOLUNTARY AND INVOLUNTARY TUROVER
group identities,
learn about ▪ INVOLUNTARY TURNOVER – initiated by an employer (often with
interpersonal employees who would prefer to stay).
relationships and ▪ VOLUNTARY TURNOVER – initiated by the employee (often when
the group. the organization would prefer to keep them ).
REASONS WHY EMPLOYEES LEAVE A COMPANY
ASSESSING PERFORMANCE AND DEVELOPING I. Employees feel the job or workplace is not what they expected.
II. There is a mismatch between the job and person.
EMPLOYEES III. There is too little coaching and feedback.
TOPICS: IV. There are too few growth and advancement opportunities.
V. Employees feel devalued and unrecognized.
o Managing Employees’ Performance VI. Employees feel stress from overwork and have a work/life
o Developing Employees for Future Success imbalance.
o Separating and Retaining Employees VII. There is a loss of trust and confidence in senior leaders.
MANAGING EMPLOYEES’ PERFORMANCE RETENTION METHODS
1. TRAINING – Training employees reinforce their sense of value.
2. MENTORING – A mentoring program integrated with a goal-
oriented feedback system provides a structured mechanism for
developing strong relationships within an organization and is a
solid foundation for employee retention and growth.
3. INSTILL A POSITIVE CULTURE – A company should establish a
series of values as the basis for culture such as honesty,
excellence , attitude, respect, and teamwork.
4. USE COMMUNICATION TO BUILD CREDIBILITY – No matter what
size of organization, communication is central to building and
maintaining credibility.
5. SHOW APPRECIATION VIA COMPENSATION AND BENEFITS –
CRITERIA FOR EFFECTIVE PERFORMANCE MANAGEMENT Offering things like competitive salaries, profit sharing, bonus
▪ FIT WITH STRATEGY – aims at achieving employee behavior and programs, pension and health plans, paid time off, and tuition
attitudes that support the organization’s strategy, goals, and reimbursement sends a powerful message to employees about
culture. their importance at the organization.
▪ VALIDITY – is the extent to which a measurement tool actually 6. ENCOURAGE REFERRALS AND RECRUIT FROM WITHIN – Having
measures what it is intended to measure. current employees offer referrals could help minimize confusion
▪ RELIABILITY – describes the consistency of the results that the of job expectations.
performance measure will deliver. 7. COACHING/FEEBACK – It is important for companies to give
▪ ACCEPTABILITY – whether or not a measure is valid and reliable, feedback and coaching to employees so that their efforts stay
it must meet the practical standard of being acceptable to the aligned with the goals of the company and meet expectations.
people who use it. 8. PROVIDE GROWTH OPPORTUNITIES – An organization should
▪ SPECIFIC FEEDBACK – a performance measure should provide workshops, software, or other tools to help employees
specifically tell employees what is expected of them and how increase their understanding of themselves.
they can meet those expectations. 9. MAKE EMPLOYEES FEEL VALUED – Employees will go the extra
mile if they feel responsible for the result of their work.
10. EMPLOYEES SHOULD BE AWARDED AT A HIGH LEVEL TO
SOURCES OF INFORMATION MOTIVATE EVEN HIGHER PERFORMANCE – The use of cash
payouts could be used for on-the-spot recognition.
11. LISTEN TO EMPLOYEES AND ASK FOR THEIR INPUT AS TO WHAT
REWARDS MIGHT WORK BEST AT YOUR ORGANIZATION –
Conduct meetings and surveys to enable employees to share
their input.
12. LOWER STRESS FROM OVERWORKING AND CREATE WORK/LIFE
BALANCE – It is important to match work/life benefits to the
needs of employees.
 13. FOSTER TRUST AND CONFIDENCE IN SENIOR LEADERS -
Develop strong relationships with employees from the start to
build trust.

COMPENSATING HUMAN RESOURCES

TOPICS:

o Establishing a Pay Structure

o Recognizing Employee Contributions with Pay
o Providing Employee Benefits

ESTABLISHING A PAY STRUCTURE

PAY STRUCTURE

❖ Job Structure – consist of the relative pay for different jobs within
the organization. It establishes relative pay among different
functions and different levels of responsibility.
❖ Pay Level – is the average amount (including wages, salaries, and
bonuses) the organization pays for a particular job.

LEGAL REQUIREMENTS FOR PAY

❖ Equal Employee Opportunity – two employees who do the same

job cannot be paid different wages because of gender, race, or
age.
❖ Minimum Wage – it is the minimum amount of remuneration that
an employer is required to pay wage earners for the work
performed during a given period.
 5. Incentive Pay for Executives - Because executive have
much stronger influence over the organization’s
performance than other employees do, incentive pay for
executives warrants special attention. Assuming that
incentives influence performance, decisions, about
incentives for executive should have a great impact on
how well the executives and the organization perform.
Along with overall pay levels for executives, organizations
need to create incentives plans for this small but
important group of employees.

PROVIDING EMPLOYEE BENEFITS

ROLE OF EMPLOYEE BENEFITS – benefits contribute to attracting,
retaining and motivating employees. The variety of possible benefits also
helps employers tailor their compensation to the kinds of employees
RECOGNIZING EMPLOYEE
they need. Different employees look for different types of benefits.
RECOGNIZING EMPLOYEE CONTRIBUTION
BENEFITS REQUIRED BY LAW
1. Incentive Pay – along with wages and salaries, many
organizations offer incentive pay – that is, pay specifically a) SOCIAL SECURITY – workers who meet eligibility requirements
designed to energize, direct, or control employees’ receive the retirement benefits according to their age and
behavior. Incentive pay is influential because the amount earnings history.
paid is lined to certain predefined behaviors of outcomes. b) UNEMPLOYMENT INSURANCE – a mandated program to
2. Pay for Individual Performance minimize the hardship of unemployment through payments to
▪ Piecework rates – a wage based on the amount unemployed workers help finding new jobs, and incentives to
workers produce. stabilize employment.
▪ Standard hour plans – an incentive plan that pays c) WORKER’S COMPENSATION – it helps workers with the expenses
workers extra for work done in less than a preset resulting from job-related accidents and illnesses.
“standard time.” d) HEALTH CARE BENEFITS – is a complex package of changes in
▪ Merit pay – a system of linking pay increases to how health care is to be paid for, including requirements for
ratings on performance appraisals. insurance companies, incentives and penalties for employers
▪ Individual bonuses – performance bonuses reward providing health insurance as a benefit, expansion of public
individual performance, bonuses are not rolled into funding.
base pay. SELECTED BENEFITS PROGRAMS
▪ Sales commissions – a variation on piece rates and
bonuses is the payment of commissions, or pay ✓ Medical Care
calculated as a percentage of sales. ✓ Dental Care
3. Pay for Group Performance – employers may address the ✓ Short-Term Disability Insurance
drawbacks of individual incentives by including group ✓ Long-Term Disability Insurance
incentives in the organization’s compensation plan. To win ✓ Retirement Plans
group incentive, employees must cooperate and share ✓ Life Insurance
knowledge so that the entire group can meet its ✓ Paid Vacations
performance targets. Common group incentives include BENEFITS REQUIRED BY LAW
gainsharing, bonuses, and team awards.
PUBLIC
o Gainsharing – group incentive program that
measure improvements in productivity and o GSIS (Government Service Insurance System)
effectiveness and distributes a portion of each gain o PAG-IBIG FUND
to employees. o PHILHEALTH
o Group Bonuses and Team Awards – in contrast to
PRIVATE
gainsharing plans, which is typically reward the
performance of all employees at a facility, bonuses o SSS (Social Security System)
for group.
4. Pay for Organizational Performance – two important
ways organization measures their performance are in
terms of their profits and their stock price. In a competitive
marketplace, profits result when an organization is
efficiently providing products that customers want a price,
they are willing to pay.
o Profit Sharing – incentive pay in which payments
are a percentage of the organization’s profits and
do not become part of the employees’ base salary.
o Stock ownership – while profit-sharing plans are
intended to encourage employees to “think like
owners,” a stock ownership plan actually makes
employees part owners of the organization.