Module 1

HUMAN RESOURCE
MANAGEMENT
I N T R O D U C T I O N

Prepared by:
Desiree G. Fabreo, MSHRM
Asst. Professor
PART 1: Introduction to HRM
The importance of Human Resource
Management (HRM) has increased over the
years as organization leaders and senior
managers recognize the significance of
effectively managing their human capital as
a way to obtain and maintain organizational
effectiveness and sustain competitive
advantage. Human capital is one asset
essential in a company’s ability to achieve
business results and shareholder value.

HRM is a function in an organization that

facilitates the most effective use of people
to achieve organization and individual
goals.
Learning Objectives
1. to explain the strategic role that human resource
management plays in the organization.
2. To introduced some theories that have influenced the
development of the human resource strategies and
programs.
3. To discuss the external and internal environmental factors
affecting the management of human resources.
4. To provide tools for assessing the impact of the human
resource function on the organization’s bottom line.
5. To describe how human resource departments are
organized.

Learning Outcomes
1. The student is able to:
• Discuss the definition, evolution of HRM, its role,
functions, responsibilities, trends, challenges, strategies,
and importance in various work settings.
To Orient and train human resources, in order to create a
balance of work quality and as career development and
comfort for the company
A. DEFINITION & EVOLUTION OF HRM EVOLUTION OF HUMAN
RESOURCE MANAGEMENT

DEFINITION OF HUMAN The functions of Human Resources pertain

RESOURCE MANAGEMENT to a broad range of employee-related
activities.
 It is the effective use of the organization’s
human resources to improve its performance. HR’s role in the organization and the
position title of the head of HR depends on
 The strategic and coherent approach to the the company’s culture, focus, and the
management of human capital. degree of importance that management
bestows to it.
 The productive use of people in achieving the
organization’s business objectives and It was in 1800’s when workers started to
satisfaction of the individual. group together to question the capitalists.

Elton Mayo in 1927-1930 highlighted that

productivity is improved by paying attention
to workers.

Personnel Department came about in 1930’s

& 1940’s. (NCR 1901 strike)
 Human Capital refers to attributes gained by
worker through education and experience.
The Evolution of HR While companies consider employees as Capital, workers consider
themselves as Investors.
Because they invest their time, skills, talents, and knowledge in
their work, they bring in value to the company, thus, they are
entitled to a ROI.

IMPACTS IMPACTS IMPACTS IMPACTS IMPACTS

 Managers not only

 “Personnel”  In 1970’s Personnel
 The term  Focus shifted
focused on
came from a Department evolved to
Human from mere
improving
French word Human Resources
Resources efficiency of
efficiency and
meaning because of the realization
came about in machines to
production but also
“person,” and that employees were not a
1980’s efficiency and
in ensuring that
the head is group to be closely production of
employees
called supervised and managed employees and
experience
Personnel but seen as valuable asset its contribution
personal
Manager or and source of competitive to the
satisfaction and
Personnel advantage. company.
growth in their
Officer, VP or work.
SVP.

 In 1990’s, in his book  HR Heads

 Thus, HR policies  Employees or Human Capital (1999),  Employees
human have gained became important
and strategies are Thomas Davenport members of the
focused on resources are bristles that “assets are control of their
regarded as lives and are executive
employee welfare, passive-(it is) bought, committee and
personal satisfaction greatest sold, and replaced at the considered not
valuable as mere assets develops
and growth, thus, whim of their owners, strategies on
business strategies assets, not while workers but as capitals.
costs. developing
are formulated based increasingly takes control employee’s
on these. of their lives.” competencies.

Competencies refer to underlying attributes or characteristics that can predict superior performance.
 The Industrial Revolution

IMPACTS IMPACTS IMPACTS IMPACTS IMPACTS

 The  Traditional
industries were  The influx of
introduction of  As a result,
machine in rendered  It caused there was a people in the
factories unprofitable by misfortunes to urban
the more great labor
considerably many people mobility from communities
changed the efficient who depended created more
factories which the rural areas
social and mainly on to the industrial social and
economic life of utilized weaving for their economic
machines and centers.
the people, livelihood. problems.
especially the better .
working class technology.

 It was most  Workers were

 As a matter of  It was a period  Old and young exploited and
economic favorable to the worked in
of free capitalists who had to work for
policy the competition factories & long hours and
government became richer mining to
and survival of and more given very low
then did not the fittest, survive. wages without
interfere powerful at the
expense of the protection from
actively in government.
business poor workers
affairs.
B. THE ROLE OF HR IN ORGANIZATONS

Overview of HRM
To recognize the importance of people or human
resources in the success and failure of organization.

Roles of HRM in Organizations

1.To help make organizations more effective by means of:

a) Integrating comprehensive HR policies with overall organizational plans and

strategies.

b) Implementing responsive HR programs sensitive to the organization’s needs and

changing technology.
C. KEY HRM FUNCTIONS & RESPONSIBILITIES
 LOCAL & GLOBAL
FORCES Performan
ECONOMIC Recruitment ce
FORCES External and Selection Manageme
TECHNOLOGICAL Environment nt
FORCES
Labor &
Human
Employee
Resource
Relations
Planning
Organization’s
Strategic Plans HR
Strategies
Organization Compensation
& Benefits
al Administration
Managemen
Internal t
Training
ORGANIZATIONS Environment Communi-
VISSION, MISSION, cations and
GOALS, Management Developme
STRATEGY nt
CULTURE
WORKFORCE
COMPETENCE

ORGANIZATIONAL
EEFECTIVENESS
 CHAPTER 2
Main Trends in Human Resources

Information Technology deals with the process of how information is

accessed, gathered, analyzed and communicated.

The computer age which started in the 70’s has allowed HR to

computerize payroll and employee records and automate HR
services.

A. IT Applications in HR
1. Web-based or e-Recruitment
Advantages: Convenient and fast, expanded, less costly
Disadvantages: Increased quantity but
not necessarily the quality, impersonal
2. e-Selection
Advantages: Easily finds the best fit
Disadvantage: Impersonal

3. Employment Kiosk
A self-service delivery system where authorized employees can directly update their own status.
4. e-Learning
Classroom training in a virtual world.
Advantages: More flexibility for employees, just-in-time progress HRIS is a database of employee records and HR
report, less travel cost. Policies which is easily accessible
Disadvantage: Employee is isolated.
 Purpose
5. Electronic Performance Support System (EPSS)
On-line coaching and mentoring services, on-line performance
• Fast Data Access.
appraisal and KRA communication. Easy access and retrieval of employee data
6. Salary and Payroll by employer & employee (self-service)
Has link to Timekeeping, performance appraisal, benefits, etc. • Ease in Decision-making.
Fast, accurate, and convenient, paperless.
• Shareable Information.
7. e-HR
Use of social media to communicate internally, Collaborate, Ease in sharing and disseminating
share opinion, and project. Able to work virtually around the
world.
8. e-Mail
Important communications are easily sent and shared and
stored
9. e-Customer Involvement
Easy access to company information, updates, activities, service
offerings, etc. can help improve employee services and
relations. The HRIS must store
10. Telecommuting and Teleworking
information of
Work becomes virtual. Work is brought to workers rather than employees’
workers going to work. Work anywhere and anytime thru
Internet and e-highways.
contributions and
availment of benefits
 Developing partnerships with labor
management reduces strikes

 Outsourcing is a better tool that can help companies to

improve service and better manage their operating costs
and cash flows.

 HR must be pro-active in enhancing their search for talents

by offering trainings for language proficiency, customer
service, and adaptation to multi-racial work environment.

Line Manager Level/ Staff Level

Line managers are those directly involved in the production of
goods and services.

Staff Managers have indirect or support functions that entails costs

but the bottom line is less direct.
 • Centralization
Some HR are centralized.
-means the authority to design and administer the
various functions is within one organized unit.
• Advantage: High degree of integration & coordination.
• Disadvantage: If HR Head is ineffective, SBU Mgrs
might create their own narrow objectives.

Centralized Organizational Chart

• Decentralization
Some HR are decentralized.
-means the authority to design and administer is
assigned to various units.
Advantage: HR programs are designed to suit the
needs of the SBU.
Disadvantage: Difficulty in integrating & coordinating
to meet the goals of organization as a whole.
Decentralized Organization
D. STRATEGIC HRM & ITS IMPORTANCE

WHAT IS STRATEGIC
HUMAN RESOURCE MANAGEMENT?
Strategic Human Resource Management
(SHRM) is a process of managing human
resources that links the workforce with the
core strategies, objectives, and goals of an THE IMPORTANCE OF SHRM
organization. It focuses on the following
aspects of HR operations: There are various benefits of applying strategic human
resource management for any business. These include:
 Ensuring practices that foster
flexibility and give a competitive  Increased job satisfaction
advantage to the organization  Better work culture
 Building a cultural fit for the  Improved rates of customer satisfaction
organization  Efficient resource management
 Ensuring superior business  A proactive approach to managing employees
performance  Productivity boost
CHALLENGES IN MANAGING HR
 Changing Employee Expectations
Various Generations
Silent Generation (before 1946) - Lived through WWII
Retired. Taught to be seen & unheard
(Disciplined, value-oriented and loyal, interested in direct communication,
so enjoy speaking in person as opposed to via technology)
.
Baby Boomers (1946-1964) - Aggressive & ambitious.
(Committed, self-sufficient, competitive [thinks this may have something to
do with how many of them there were])
Generation X (1966-1980) - Information age (technology) was
advancing fast, but not readily available yet.
(Resourceful, logical, good problem-solvers, concerned w/ work/life balance
Millennials (Generation Y or Nexters 1980-1995) - In hipster clothes, jeans,
sneakers, modern gadgets.
(Lazy, confident, curious, less loyal to companies they worked with,  Rapid Changing Technology - Emphasis on
questions their bosses/authority) Increased Productivity
Generation Z (1993, 1997, 2000?) - Young, never known a life without tech  New Modalities of Employment –
(Ambitious, digital-natives, confident) Outsourcing
 Flatter Organization
 Fall of the Control and Command Manager
 INDIVIDUAL INDIVIDUAL
ASSIGNMENT ASSIGNMENT
 This is your Page 1  This is your moment
a. Submit your own personal RESUME. a. Create a Cover Page with the title,
b. Limit it to one page. (short or A4 size) your name, course, year, block
c. Put your best ID photo. c. Put your best photos.
d. Search the internet for appropriate d. Be creative in your designs.
format.
 Answer the Standard Questions
GROUP (provided)
ASSIGNMENT a. Answer all questions asked in not less
than 50 words
 This is your Page 2
a. Create a simulated Organizational Chart of
any organization, or your future business in mind.
b. Every member must give input.
c. Every member must have a copy of the final
Org Chart and include in their 3-page output. SUBMIT in a continuous file in
Google Class
SUBMIT in a continuous file in Google Class DUE:
DUE:
THANK YOU