HRM - Chapter 1
1800s
(Industrial Revolution)
17th century
- Close relationships between mentors and apprentices dedicated to a particular trade.
17th century
- Close relationships between mentors and apprentices dedicated to a particular trade. - Guild and home shops progressed to steam-driven factories - the introduction of the assembly lines (An assembly line is a production process that breaks the manufacture of a good into steps that are completed in a pre-defined sequence. Assembly lines are the most commonly used method in the mass production of products. They reduce labor costs because unskilled workers are trained to perform specific tasks (Banton, 2022). - Management philosophy was epitomized by Henry Ford at the turn of the 20th century
20th Century
- Each part of an individual's work is analyzed 'scientifically.'
Training and Development
- Examples of training programs might include the following: • Job skills training, such as how to run a particular computer program • Training on communication • Team-building activities • Policy and legal training, such as sexual harassment training and ethics training
17th century
- Guild and home shops progressed to steam-driven factories
Compensation and Benefits Administration
- HRM professionals need to determine that compensation is fair, meets industry standards, and is high enough to entice people to work for the organization. Compensation includes anything the employee receives for his or her work.
1927 - 1932
- Improved productivity gained by paying attention to workers and the significant role social relationships played in the workplace.
Senior Professional in Human Resources (SPHR)
- It is recommended that the person taking this exam has six to eight years of experience and oversees and manages an HR department.
20th Century
- Managers must cooperate with workers to ensure the job is done in a scientific way.
Human Resources Manager/Director
- Responsible for overseeing the entire HR department, including staffing, employee relations, training and development, and compliance with labor laws and regulations.
Worker Protection
- Safety is a major consideration in all organizations. Oftentimes new laws are created with the goal of setting federal or state standards to ensure worker safety. Unions and union contracts can also impact the requirements for worker safety in a workplace. It is up to the human resource manager to be aware of worker protection requirements and ensure the workplace is meeting both federal and union standards. Worker protection issues might include the following: Chemical hazards, Heating and ventilation requirements, Use of "no fragrance" zones, Protection of private employee information
20th Century
- The most suitable person to undertake the job is 'scientifically chosen' and is taught the exact way to do the job.
20th Century
- There is a clear division of work and responsibility between management and workers.
Global Professional in Human Resources (GPHR)
- This exam is for HR professionals who perform many of their tasks on a global level and whose companies often work across borders.
retention
- involves keeping and motivating employees to stay with the organization
development of a staffing plan development of policies to encourage multiculturalism at work recruitment selection
- involves the entire hiring process from posting a job to negotiating a salary package.
staffing
- involves the entire hiring process from posting a job to negotiating a salary package.
17th century
- the introduction of the assembly lines (An assembly line is a production process that breaks the manufacture of a good into steps that are completed in a pre-defined sequence. Assembly lines are the most commonly used method in the mass production of products. They reduce labor costs because unskilled workers are trained to perform specific tasks (Banton, 2022). -
1800s (Industrial Revolution)
- working masses began to form workplace organizations to provide collective voices for their right
1800s (Industrial Revolution)
- working masses started to ask questions and defy the power of the capitalists
1800s (Industrial Revolution)
- working masses started to ask questions and defy the power of the capitalists - working masses began to form workplace organizations to provide collective voices for their right
Management Technology The Economy The Changing and diverse workplace Ethics
. Today's HRM Challenges
Generation Z
According to the survey conducted by ResumeBuilder.com in April 2023, 74% of managers and employers find Gen Z workers difficult to work with. This is because they are demanding and less tolerant of authoritarian environments. Some of the characteristics common within this generation are the following: 1. Has an extreme online presence 2. Flexible 3. Tech-savvy 4. Entrepreneurial 5. Competitive In the Philippines, there were 11.7 million (18%) Gen Z workers aged 18 to 24 across different jobs. Both Millennials and Gen Zs make up 90% of the Filipino workforce.Z
1760s - 1770s
Adam Smith wrote about the economic advantages of the division of labor; Father of Capitalism
Silent Generation
Also called the "Traditional Generation" or the "Lucky Few", this generation is composed of those people who either fought or were children during World War II. They are known as the lucky few because of their gains in schooling, earned veteran benefits, service in peacetime, came close to full employment, and spearheaded the trend towards early retirement.
Social
Attitude or beliefs about what is acceptable or what is right. For example, the trend toward work-life balance.
Rapidly Changing Technology
Automation in the form of computers and other technological advances has fundamentally changed jobs. With this, companies must invest millions of money in training and development to update employees' skills to keep pace with changing technology. Organisations must hire more skilled workforce and redesign jobs to take advantage of this new technology.
early '90s
But in the ___ , a new concept in treating human resources evolved. Organizations are beginning to go beyond the usual mantra "People are our greatest assets." In a higher form, people are no longer treated as costs but assets.
Silent Generation (1925 - 1945) Baby Boomers (1946 - 1964) Generation X (1965 - 1979) Generation Y (1980-1994) Generation Z (1995-2010)
Categories of Generation
Emphasis on Increased Productivity
Charles Handy created an equation of productivity: 1/2 workforce, paid twice as much, three times as much. ● The challenge to this is to increase productivity without increasing costs and sacrificing quality. ● With this, managers focused more on the competencies of their employees. ● Competencies - the measurable or observable knowledge, skills, abilities, and behaviours (KSABs) critical to successful job performance; includes tangible skills, knowledge, and intangible aspects such as attitude, values, and interactive abilities of the jobholder.
Development of a staffing plan.
Development of policies to encourage multiculturalism at work.
Compensation and Benefits Administration
Human resource managers are involved in disseminating information on employee benefits, assistance programs, and leaves of absence. This information is usually included in the HR manual. Human resource managers are tasked with orienting new employees about the several benefits offered by the company.
Dealing with Laws Affecting Employment
Human resource people must be aware of all the laws that affect the workplace. (ex. Discrimination laws, Health-care requirements, Compensation requirements such as the minimum wage, Worker safety laws, Labor laws).
HR Compliance Officer
Ensures that the organization complies with labor laws, regulations, and reporting requirements, reducing legal risks.
Development of Workplace Policies
Ex. Discipline process policy, Vacation time policy, Dress code, Ethics policy, Internet usage policy
Human Resources Manager/Director Recruiter HR Coordinator Benefits Administrator HR Compliance Officer
Examples of Job titles in Human Resources
Compensation and Benefits Administration
Examples of employee compensation include the following: Pay, Health benefits, 401(k) (retirement plans), Stock purchase plans, Vacation time, Sick leave, Bonuses, Tuition reimbursement
Development of Workplace Policies
Examples of employee compensation include the following: Pay, Health benefits, 401(k) (retirement plans), Stock purchase plans, Vacation time, Sick leave, Bonuses, Tuition reimbursement
Professional in Human Resources (PHR) Senior Professional in Human Resources (SPHR) Global Professional in Human Resources (GPHR) Certified Human Resource Associate (CHRA)
Exams in HRM in order to get certificate
The Transition from Personnel to Human Resource Management
First Personnel management department began at the National Cash Register Co. - Headed by President John Patterson. Patterson's emphasis on fair labor standards, employee training, employee engagement and working conditions helped to shift the focus of human resources management from traditional personnel administration to more strategic, value-added activities. His innovative ideas and practices laid the foundation for the modern field of human resources management, and his approach is still widely adopted by companies today. ● For over seven decades, "personnel" has been the accepted term. ● The 1980s was the time when HRM Human Resource Management began to permeate through larger corporations.
20th Century
Frederick W. Taylor (Father of Scientific Management) proposed four overriding principles of management:
20th Century
Frederick W. Taylor (Father of Scientific Management) proposed four overriding principles of management: - Each part of an individual's work is analyzed 'scientifically.' - The most suitable person to undertake the job is 'scientifically chosen' and is taught the exact way to do the job. - Managers must cooperate with workers to ensure the job is done in a scientific way. - There is a clear division of work and responsibility between management and workers.
human capital
Human resources, too, is an increasingly broadening term that refers to the "___"- the people in the organization with different values, aspirations, cultural and family background, education, attitudes, and temper. It takes a lot of skills, adroitness, and people-sensitivity to manage this group of human beings.
Compensation and Benefits Administration
HRM professionals need to determine that compensation is fair, meets industry standards, and is high enough to entice people to work for the organization. Compensation includes anything the employee receives for his or her work. - Human resource managers are involved in disseminating information on employee benefits, assistance programs, and leaves of absence. This information is usually included in the HR manual. Human resource managers are tasked with orienting new employees about the several benefits offered by the company. - Examples of employee compensation include the following: Pay, Health benefits, 401(k) (retirement plans), Stock purchase plans, Vacation time, Sick leave, Bonuses, Tuition reimbursement
1927 - 1932
Hawthorne studies by Elton Mayo (Father of Human Resource Management).
1927 - 1932
Hawthorne studies by Elton Mayo (Father of Human Resource Management). - Improved productivity gained by paying attention to workers and the significant role social relationships played in the workplace. ○ The research he conducted under the Hawthorne Studies of the 1930s showed the importance of groups in affecting the behavior of individuals at work. work satisfaction depended to a large extent on the informal social pattern of the work group. Where norms of cooperation and higher output were established because of a feeling of importance, physical conditions or financial incentives had little motivational value. People will form work groups and this can be used by management to benefit the organization. He concluded that people's work performance is dependent on both social issues and job content (Menon, 2016).
Legal
How the legal aspects of business affect HRM, such as discrimination laws or requirements for health care, or employer-paid taxes.
assets
In a higher form, people are no longer treated as costs but
Awareness of External Factors
In addition to managing internal factors, the HR manager needs to consider the outside forces at play that may affect the organization. Outside forces, or external factors, are those things the company has no direct control over; however, they may be things that could positively or negatively impact human resources. - Ex. Globalization and offshoring, Changes to employment law, Health-care costs, Employee expectations, Diversity of the workforce, Changing demographics of the workforce, A more highly educated workforce, Layoffs and downsizing, Technology used, such as HR databases, Increased use of social networking to distribute information to employees
selection
In this stage, people will be interviewed and selected, and a proper compensation package will be negotiated. This step is followed by training, retention, and motivation.
Changing Employee Expectations
It is important to note that today's workforce comprises several generations, each with a different set of values, aspirations, and each with a unique perspective and attitude towards work.
17th century
Management philosophy was epitomized by Henry Ford at the turn of the 20th century
Benefits Administrator
Manages employee benefits programs, including health insurance, retirement plans, and leave policies.
New Modality of Employment-Outsourcing
Most business organizations today, wherever possible, prefer to adopt flexibility in the acquisition of human resources. 1. Seasonal cycles - Hire during peak season when the need for extra manpower is high. Dispense services when no longer needed. For example: Department stores have seasonal cycles in their sales. They experience brisk sales during graduation, enrollment, and Christmas seasons. 2. Prevailing labor law prompted some employers to resort to outsourcing their temporary employers from labor service contractors (This issue of hiring temporary workers to avoid extra cost on benefits and ease terminating their services).
Development of policies to encourage multiculturalism at work.
Multiculturalism in the workplace is becoming more and more important, as we have many more people from a variety of backgrounds in the workforce.
Human Resource Management
Obviously, the field has moved from a traditionally administrative function to a strategic one that recognizes the link between talented and engaged people and the organization's success
investors
People are treated as ___. They bring into the company their talent, knowledge, skills, competence, values, time and effort. Having invested in this treasure trove of qualities and attributes vital to organization's success, people demand a fair return of their investments.
The 1980s: Movement from Personnel Management to Human Resource Management:
Personnel management adapted to the market economy where senior personnel executives worked on issues like future of the company, analysis of existing business objectives, revising the objectives with better ways of achieving them. ○ There was emphasis on management of change, development of corporate culture, single union to represent the company's work force (Japanese industrial relations practices), quality circles and total quality management (Japanese management practices). Collective bargaining was replaced by centralised bargaining where negotiations at the local level were made without the involvement of personnel managers. ○ This was the beginning of change in the nature of personnel management. Personnel practitioners started to focus on human resource management to achieve organisational excellence through a committed workforce.
HR Coordinator
Provides administrative support to the HR department, including scheduling interviews, maintaining records, and handling HR inquiries.
Economic
The economic environment affects all parts of business and affects HRM in terms of how many employees might be needed.
Being able to organize things Being able to multitask The ability to communicate Understanding specific job areas A sense of fairness and strong ethics
Skills Needed for HRM (Human Resource Manager)
Awareness of External Factors
Social Legal Technological Economic
1. Changing employee expectations 2. Rapidly changing technology 3. Emphasis on increased productivity 4. Next Modalities of Employment -- Outsourcing 5. Flatter organization 6. Fall of the command-and-control manager
The Challenges of Managing Human Resources Today
Staffing Development of Workplace Policies Compensation and Benefits Administration Retention Training and Development Recruitment and Hiring Dealing with Laws Affecting Employment Worker Protection Communication Awareness of External Factors
The Role of HRM (SDC - RTRD- CAW)
Generation Y
The ___ known as the "Millennials" or the "Nexters" are technologically savvy, collaborative, and they enjoy teamwork. This generation is composed of employees who are goal-oriented, ambitious, and driven. Because of this, millenials are also known to be the most high-maintenance workforce among other generations as they demand excellence from themselves and the companies they are working with (Landrum, 2018). In the Philippines, there were 17.5 million (26%) millennial workers aged 25 to 39.
The ability to communicate,
The ability to communicate, the ability to present good news (hiring a new employee), bad news (layoffs), and everything in between, such as changes to policy, makes for an excellent manager and human resource management (HRM) professional.
Late 1800s
The concept of welfare personnel developed in late 1800s which focused on concerns for human beings by providing schemes for unemployment, sick pay and subsidized housing for employees. This was a change from the earlier period where workers were considered as mere tools for production and, thus, treated harshly.
Training and Development
The purpose of employee training is to equip them with the necessary skills and knowledge to perform their role effectively. Employers must be prepared to commit a significant amount of investment in their employee's training.
The Changing and Diverse Workforce
The retirement of baby boomers is creating a gap in the workplace, related to not only the number of people available but also the skills people have. Multigenerational companies, or companies with workers of a variety of ages, must find ways to motivate employees, even though those employees may have different needs. HR must be aware of this and continually plan for the challenge of a changing workforce. Diversity in the workplace is an important challenge in human resource management. ● In the Philippine setting, diversity refers to a lot of forms. It can be religious, gender & SOGIE, age, socioeconomic, and/or race.
Technological
The technological environment impacts how people communicate, which affects HR. Due to technology there are ways to track employee performance, compensation, and even hiring processes.
The 1960s and 1970s
There was an increase in personnel work due to employment legislation. Up to the early 1970s, the state of the economy was characterised by full employment — there was high focus on recruitment, selection, training and compensation. There was labour shortage and, thus, focus was on retaining skilled labour and increasing the skills of existing workforce. ○ Training Boards were established that promoted training programmes and gave grants to companies that conducted training programmes of acceptable standards. Training specialists developed within the personnel function. Importance was also given to activities such as performance appraisal, management development and manpower planning.
After the II World War and Up to 1950s
There was further increase in size of the organisations during this period and personnel management activities further included services like salary administration, training and advice on industrial relations. However, the focus remained at the tactical level rather than the strategic level. Collective bargaining also moved from the industry level to the company level which developed industrial relations specialists within personnel management.
communication
They are the first responders for any workplace-related issues among employees. Effective communication makes it easier for employees to work for a single objective, the company's success. It is the role of the human resource department to promote better communication among individuals in the company.
Human Resources
They were once viewed as costs and therefore, people were treated just the way they treated other costs----by cutting.
recruitment
This involves finding people to fill the open positions.
Human Resources
When companies want to improve their profits or cut losses, they reduce their manpower.
Between the I and II World Wars
With increase in size of the organisations, this trend continued till the II World War with focus on welfare personnel activities like canteens, company outings for workers and personnel administration for support of the management (recruitment, discipline, time keeping payment systems, training and maintaining personnel records).
Being able to multitask
a typical person managing human resources may have to deal with an employee issue one minute, then switch and deal with recruiting and also human resources focuses on all areas of the business, where multitasking is a mus
Human Resources
___ in the business sense are people who do the actual work in the organization.
Generation X
are known to value their work-life balance. They are peer-oriented, thrive on diversity due to immigration and growing female workforce, and tech-savvy
Professional in Human Resources (PHR)
candidates can qualify for the exam with at least one year of professional experience in a human resources job and a master's degree or higher. Another option is to have at least two years of professional experience in human resources and a bachelor's degree.
Certified Human Resource Associate (CHRA)
is a 3-hour examination by Human Resource Educators' Association of the Philippines (HREAP), assessing fundamental knowledge in human resource management. It covers recruitment, selection, workplace learning, compensation, performance management, job analysis, risk management, and labor and HR laws
The Baby Boomers Generation
is called as such because they were born during the post-war spike in birth rates. In the workplace, the Baby Boomers are aggressive and ambitious. They preferred to work independently and were known to be loyal to their careers is called as such because they were born during the post-war spike in birth rates. In the workplace, the ___ are aggressive and ambitious. They preferred to work independently and were known to be loyal to their careers
Human resource management (HRM)
is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them
Being able to organize things
like having organized files on your computer and good time-management skills are crucial for success in any job, but especially if you take on a role in human resources.
A sense of fairness and strong ethics
will make for the best HR manager such as salary information, so a sense of ethics when managing this information is essential. Because HR works with a variety of departments to manage conflict and negotiate union contracts and salary, the HR professional needs ethics skills and the ability to maintain confidentiality.
Recruiter
refers to a recruiting role at an employer or agency, involving pre-screening and presenting qualified candidates to the hiring manager, serving as the main point of contact, and participating in employee onboarding to ensure readiness for the new position.
Understanding specific job areas
such as managing the employee database, understanding employment laws, and knowing how to write and develop a strategic plan that aligns with the business
recruitment and hiring
the most popular role associated with human resource managers.
Recruitment and Hiring
the most popular role associated with human resource managers. It involves finding, reviewing credentials, screening, and selecting candidates for a company. An effective recruitment process results in the hiring of employees who are tailor-fit for the position and not just candidates who have the best credentials.
Human Resource Management
● The strategic and coherent approach to the management of an organization's most valued assets-the people. ● The productive use of people in achieving the organization's strategic business objectives and the satisfaction of the individual.
Technology
• Technology has greatly impacted human resources and will continue to do so as new technology is developed. • Technology creates a greater need to have multicultural or diversity understanding. Since many people will work with individuals from other parts of the world, cultural sensitivity and understanding is one way to make sure that productivity increases. • Technology may give employees the option to demand flexible schedules to meet their family and personal needs. Because of this, virtual organizations emerged. These organizations do not have a physical location (cost containment) and allow employees to work from a location of their choice, but this creates concerns over productivity and communication. • Technology also allows HR to track employee data, compensation, and training through databases. But one major challenge with this is its changing nature which can subsequently impact HRM practices. • Another concern created by technology is cyberloafing which refers to the lost productivity as a result of an employee using a work computer for personal reasons. • Technology can cause additional stress to the workers due to increased job demands, constant change, constant emailing and texting, and physical aspects of sitting in front of a computer. · The most notable change brought by technology in the Philippines' HRM setting is the rise of hybrid work, which allows employees to work remotely and in-office. According to the 2022 State of HR Report by Arlene de Castro of Sprout Solutions, hybrid work set-ups have improved the employees' productivity and work-life balance. For example, employees are now using automated tools to make their tasks less challenging such as processing payrolls using human resources information system (HRIS); Applicant Tracking System (ATS) was proven to help companies recruit talents digitally. However, this change also brought specific negative effects on some areas in the HR and one of these is employee attrition. This refers to the gradual reduction of employee numbers. Employee attrition happens when the size of your workforce diminishes over time, meaning employees are leaving faster than they are hired (Wooll, 2022). In the Philippines, attrition is one of th
The economy
• Tough economic times in a country results in tough times for business. • A down economy may cause layoffs, high unemployment, and its legal and union implications. • An up economy may cause massive hiring to meet internal demands. · One prime example of how the economy affects HRM happened during the pandemic. The Philippines suffered an economic recession in 2020. The GDP shrank to 9.5%, the lowest record ever since 1947 (Venzon, 2021). This caused a 17.7% unemployment rate in April 2020, an all-time high due to economic shutdown.
1927 - 1932
○ The research he conducted under the Hawthorne Studies of the 1930s showed the importance of groups in affecting the behavior of individuals at work. work satisfaction depended to a large extent on the informal social pattern of the work group. Where norms of cooperation and higher output were established because of a feeling of importance, physical conditions or financial incentives had little motivational value. People will form work groups and this can be used by management to benefit the organization. He concluded that people's work performance is dependent on both social issues and job content (Menon, 2016).
The 1990s: Post-entrepreneurial phase for personnel management:
○ There was a complete change in the focus from individualism to collectivism. There was concern for teamwork, core workers with high commitment to work, flexible work hours, wages determined by market forces rather than bargaining between management and trade unions. ○ Workers were expected to work beyond mere descriptions of their jobs. The focus changed from tactical to strategic approach to human resource management which aims to develop human potential of the organisation for organisational success.
Fall of the Command-and-Control Manager
● Barking orders to subordinates is no longer an effective way of getting things done by people. The workforce is getting more educated, better informed, and aware of their rights. Interpersonal relations must be strongly developed to get the support and cooperation of the subordinates. ● Under the people empowerment philosophy, supervisors and managers must act like coaches. Employees can make their own informed decisions, using good judgment, under the guidance of superiors. The legitimate or literal power inherent in superiors is somewhat diminished.
Flatter Organization
● Flattening of organizations improves productivity, efficiency and communications. ● People are expected to produce more using fewer resources. Multitasking is required as they are asked to perform a variety of ever-changing roles, taking new responsibilities, and significantly changing the job contents of the incumbents. ● The restructuring of organizations, impacts on human resource management in many ways: 1. HR must develop and implement policies to minimize the pain in downsizing. The policies need to set standards from communicating the termination to affected employees to severance packages. 2. Those being given the so-called "pink papers" (the euphemism for layoffs), must be let go with dignity. Offer severance agreements or offers transitional training, outplacement assistance, or extended benefits. 3. Extreme care must be addressed to remaining employees. Through effective human resource management, an organization should be able to keep it's staff pacified, assuaged and productive through the difficult transition.
Human Resource Management
● The productive use of people in achieving the organization's strategic business objectives and the satisfaction of the individual.
Human Resource Management
● The strategic and coherent approach to the management of an organization's most valued assets-the people.
