Human resource management
(HRM) is the strategic
approach to the management
of an organization's most valued assets - the people
working there who individually and collectively contribute to the achievement of the objectives of the business.
Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.
Human resource includes the total knowledge, skills, creative abilities, talents and aptitudes of an organization’s work force, as well as the values, attitudes and beliefs of the individuals involved. HISTORY
A. The Medieval guilds in Europe
Y Trade guilds – an association of men belonging to the same trade or engaged in similar pursuits
a) Merchant guilds – composed of storekeepers, merchants and builders who carried on trade in the towns and nearby villages. The trader dealt with his customers and employees directly.
b) Craft guild – composed of masters, journeyman, and apprentices engaged in shoemaking, weaving, baking, and similar trades.
B. The Industrial Revolution – the age that followed the invention of machines which supplanted human labor in factories and farms and sharply changed the methods of production and distribution of goods.
C. The Human Relations Movement – emphasized the need for active participation of subordinates in decision-making and for treating them with dignity as an important element in the organization. APPROACHES
Y Manpower Development System Model – A company which aims to make its manpower effective should create a means for harnessing and releasing human energies, talents and knowledge.
Y Self Development – An approach whereby the worker is encouraged to determine his needs for personal development and seek the venue for undertaking the training appropriate to his needs.
Y Group Interaction Skills – In GIS, the worker, regardless of position and rank, normally interacts with co-workers.
Y Transactional Analysis – TA for developing worker motivation, involves analysis of one’s personality dynamics through the ego states.
Y Teambuilding – This encourages each worker to view himself as part of a team, and without whose participation, the goal of the team is difficult to attain.
Y Administrative Value Analysis – AVA is an administrative technique for improving the effectiveness of an organization by associating operational problems with shortcomings and then analyzing and solving the problems.
Y Personalized Time Management Strategy –This strategy holds the concept that time is not the problem; the problem is how we utilize time.
Y Job Enrichment and Job Enlargement
☼ Job enrichment – involves the policy of adding motivators to a job to make it more rewarding.
☼ Job enlargement – involves the policy of giving workers a wider variety of duties in order to reduce monotony DEVELOPMENT OF EMPLOYEE CONCEPTS
Y LABOR AS A COMMODITY
Y LABOR AS A MACHINE
Y GOODWILL AS A CONCEPT OF LABOR
Y LABOR AS A HUMAN PERSONALITY
Y PATERNALISM AS A CONCEPT OF LABOR
Y LABOR AS A PARTNER
Y LABOR AS SOCIAL RESPONSIBILITY OF THE EMPLOYER
Y LABOR AS A RESOURCE PARTIES THAT HAVE INTERESTS IN BUSINESS AND INDUSTRY
Y THE EMPLOYEES
Y THE OWNERS OR EMPLOYERS
Y THE CUSTOMERS AND THE PUBLIC AT LARGE
Y THE GOVERNMENT HUMAN RESOURCES MANAGEMENT IN THE PHILIPPINES FACTORS THAT HAVE CONTRIBUTED TO THE GROWTH OF HRM IN THE PHILIPPINES
Y The increasing complexity of business operations
Y The number of government regulations and labor laws promulgated in recent years
Y The growth of labor unions
Y Shortage of qualified men
Y The influx of new concepts in management
Y The present trend Superior Human Resources Fuel Economic Growth
There is a sense of excitement and anticipation that the steady economic growth in the Philippines holds promise for the future. Despite its recent history of natural disasters, political unrest and economic hardship, the Philippines’ 5-6 % growth rate in Gross National Product (GNP) for 1997 is significant and offers hope of promising change. Further, deregulation, liberalization, and privatization reforms are contributing to the country’s "Philippines 2000" campaign, aimed at achieving Newly Industrialized Country (NIC) status, modernizing its agricultural sector, and revolutionizing its infrastructure by the turn of the century. Included in these reforms is an emphasis on the role of the private sector and promotion of foreign investment.
The Asian economic crisis has not hurt the Philippines as much as it has hurt its neighbors. The country is, however, in a mild recession. Its GNP growth is expected to slow to 3.7 percent this year, in contrast with the aforementioned 5 to 6 percent growth in 1997. The leadership of the country is confident, however, that their economy will be among the first in Asia to recover from the crisis.
The Philippines is gradually becoming an attractive location for production centers in Asia for many international companies. For those searching to make an investment in Southeast Asia, the Philippines offers the promise of high growth, with operational advantages such as a strategic location for global exports, and a highly qualified and educated workforce. Moreover, the Philippines has recently achieved a stable political environment, something which has held the country back for decades.
The Philippines’ labor force is well equipped to work with foreign ventures and is one of the country’s outstanding attributes. English is commonly spoken. The population and culture is a mixture of its Malay origins and Spanish and American influences. Furthermore, following independence, the country maintained many of its Western-flavored institutions, particularly in law, government, and economics. This familiarity with Western practices eases Filipino integration with Western business practices and foreign ventures. Additionally, unlike many other Southeast Asian countries which must grapple with a skilled-labor shortage, the Philippines boasts a literate population that is well equipped with computer skills, advanced technological expertise, and good Western managerial skills. In fact, in some cases there is an overabundance of skilled labor; millions of Filipinos who can’t find work at home live in foreign countries utilizing their technical expertise.
Filipinos are young, educated, energetic, and motivated to succeed. With the support of such superior human resources, the Philippines is in a prime position to sustain its present growth rate and to play an excellent host to foreign investment. To establish a successful presence in the Philippines, an understanding of the culture, law, and practices of the Filipino labor force is critical. Building a mutually beneficial relationship with Filipino employees requires an awareness of the Philippine disposition, the country’s labor laws, customary salary and benefits, union rights, and employment procedures. The Filipino as an Employee
Filipinos are friendly and have a "laid-back" culture. They adopt an informal appearance, even in the workplace. They are at ease with walking into their superior’s office simply to have a conversation. On the other hand, they are sensitive to being reprimanded. They like to be treated with patience. Because they value a solid reputation and a good public image, it is shameful for them to be reprimanded in public. They respect a manager that is fair, respectful of their dignity, and willing to compromise. In return, they are trustworthy, dedicated, responsible, and productive workers.
Typical of Asian culture, Filipinos avoid conflict and confrontation. In order to avoid unsettling situations, they often rely on an intermediary or third party to convey their message. While in the United States this could be perceived as evasive, the Filipino is more comfortable avoiding conflict. They value harmony over their personal viewpoint and often remain silent in disagreement. Thus, harmony is preserved at the expense of their own creativity or initiative. They will follow a boss’s decision rather than create a stir by suggesting an alternative proposal.
Business is usually undertaken at a leisurely place. Unlike the United States and Europe, the Asians executive conducts business first by establishing a friendship and then building a professional relationship. The purpose of a business meeting is sandwiched between family and small talk, which is crucial to maintaining solid connections. Recruitment Gaining Popularity
There are more qualified employees in the Philippines than there are adequate employment opportunities. The high employment and underemployment that plague the country have lead citizens from all fields and education levels to seek employment abroad. This may be an obstacle to finding the best candidate in the Philippines. Under the "Philippine 2000" program, the goal is to create sufficient employment opportunities within the country by the year 2000. A foreign employer operating in the Philippines that offers higher wages, chances for promotions, and travel incentives, can persuade Filipinos to return or to stay home.
Although businesses in the Philippines recruit potential candidates through newspaper and magazine advertisements and notices, word of mouth is still the most common and effective form of finding jobs. Many Filipinos secure positions through third parties with direct connections to decision-makers. Until recently, most Filipino businesses utilized executive search firms. However, with the improving economy, such searches are becoming less popular. Education is Key to Success
The Philippines is known as the "human resource training institute of the Far East" because of its superb education system. After ten years of schooling in both English and Filipino, students at age eighteen may choose to attend one of the country’s fifty-five universities. To make such education as universally available as possible, the government and universities have established a broad scholarship system. The Department of Science and Technology (DOST), for example, emphasizes the importance of advanced technology and engineering. Thus, it offers 3,500 scholarships in the fields of science and mathematics. In this way, it can stimulate an increase in the number of graduates with master’s degrees in engineering and science.
Despite its excellent primary and university education system, continued employee education and training have not been widely developed in the Philippines. Less than one-third of all firms provide workers with on-going training to improve job skills and performance. As the economy gains momentum and foreign investment increases, improving employee skills will become increasingly important. Global competitiveness depends on the strength of employees. The government has now begun to sponsor informal education and training courses and offer incentives to private companies that develop their own programs. For example, the government offers tax deductions for the expenses of each training program. Government agencies such as the National Manpower and Youth Council (NMYC) have already provided limited training to more than 1.2 million people.
Finally, regardless of the fact that the Philippines enjoys a ninety percent literacy rate and more than three times the number of college graduates each year compared to the available vacancies for employment, the Philippines still faces labor and human resources problems. Each year many highly trained and resourceful Philippines professionals migrate to other countries for better employment opportunities. The Philippines needs to retain its highly trained workers by offering them good employment opportunities if it is to continue to grow and prosper. Philippine Labor Code Governs Employee Rights and Responsibilities
The Philippine Labor Code of 1976 was designed to incorporate and coordinate all aspects of work place law. It is a comprehensive law that is amended from time to time to incorporate new issues as they arise. It established rules on everything from annual leave to minimum wage to termination to unionization. The Labor Code is designed to ensure better work conditions for employees. The law mandates, for example, that the average workweek be no more than 48 hours, with one day of rest. Health personnel work a total of 40 hours per week. The Department of Labor and Employment ensures enforcement through periodic inspections. Overtime pay is usually 125% of regular pay, however, there are exceptions for government employees and others holding certain positions.
Other benefits granted under the labor law are as follows. The law entitles employees to a certain amount of paid leave. There are 12 national holidays; additionally, five days of vacation accrue for every one year of service. Each employee has 15 days of sick leave per year. For each of up to four pregnancies, women are entitled to 60 days of maternity leave. Furthermore, all businesses are required to have available a trained first-aid staff. For larger firms and those dealing with hazardous materials, a doctor, dentist, nurse, and infirmary must be readily available. Department of Labor and Employment (DOLE)
One of the main agencies responsible for ensuring the welfare of the Filipino worker is the DOLE (Department of Labor and Employment). DOLE’s responsibilities include setting the minimum wage, ensuring safe working conditions, and creating occupational safety and health ( OSH) standards. It also has a “Productivity Improvement Program” to increase workers’ productivity in select manufacturing industries through improved working and living conditions. The department is in constant dialogue with workers, employers, and their organizations with regard to social and economic concerns, including environmental issues. DOLE and its close links with the well-established NGO (Non-Governmental Organizations) network promote greater bilateral participation in enhancing safety and health in the workplace while both entrepreneurs and workers are encouraged to implement low cost improvements in work conditions which can eventually lead to improvement in productivity and the general well-being of the workers. OBJECTIVES OF PERSONNEL MANAGEMENT
☼ To assist top and line management achieve the company objectives of fostering harmonious relationship with its human resources
☼ To acquire capable people and provide them with opportunities for advancement and self development
☼ To assist top management in formulating policies and programs that will serve the requirements of the company and administer the same fairly to all employees
☼ To provide technical services and assistance to the operating management in relation to their personnel functions in promoting satisfactory work environment
☼ To assist management in training and developing the human resources of the company
☼ To see that all employees are treated equally and fairly in the application of company policies, rules and regulations and in rendering service to them
☼ To help effect organizational development and institution building efforts TWO ROADS IN PERSONNEL ADMINISTRATION
Y HIGH ROAD – those who concern themselves with the more contemporary issues of personnel, such as manpower planning, formulation of policies and programs, etc..
Y LOW ROAD – those who concern themselves with the daily routine operation of the personnel department FUNCTIONS OF PERSONNEL MANAGEMENT
Y MANAGEMENT FUNCTIONS
Y OPERATIVE FUNCTIONS
Ø Procurement of employees
Ø Placement and utilization of employees
Ø Training and development of employees
Ø Motivating employees
Ø Compensating MAJOR RESPONSIBILITIES OF THE PERSONNEL DEPARTMENT
♫ Developing and administering personnel policies and programs
♫ Assisting line management
♫ Assisting line management in personnel appraisal
♫ Coordinating personnel activities
♫ Job evaluation, classification, and salary administration
♫ Employee and labor relations
♫ Keeping personnel records and files THE PERSONNEL MANAGER
The personnel manager
, who should be a member of the company’s top management group, is responsible for the formulation for top management of personnel policies and programs which serve as the foundation for an efficient personnel administration in a company so that the company can realize its goals and objectives and at the same time allow the employees to develop and realize their individual career goals.
[IMG]file:///C:/Users/Delta/AppData/Local/Temp/msohtmlclip1/01/clip_image001.gif[/IMG] THE PERSONNEL OFFICER
He is a much abused individual. He is a shock-absorber, scapegoat, rubber stamp, unwilling hatchet man, and suspected intriguer. He is harassed most of the time and he is underpaid. He is a personnel officer.
He does not usually stay long in one company. He is a butterfly. It is because he is inevitably blamed for any labor crisis; he is sacrificed to appease rebellious workers. His opinions, though sound, are often disregarded; worse, they may be referred for confirmation or disapproval to the employee’s retained counsel. In this way, he is given a feeling of inadequacy.
The employees regard him with suspicion. They feel that he is insincere, plays favorites, or a faultfinder. He is friendless.
But he is also an employee, and he definitely deserves more help, more understanding. His work is vital to the interests of both employer and the employees. He is not a mere ornament in a company. It is often said that the company rises or falls
with its personnel officer.
(Editorial – Phil. Labor Relations Journal, 1969)