Module 3: HUMAN RESOURCE
          MANAGEMENT
Its Functions and their Interrelationships




                 PANGASINAN STATE UNIVERSITY –
                      GRADUATE SCHOOL

                DM 212 Human Resource Management
                      and Development
                        MARJOHN P. SANTE
                           Discussant        1-1
Human Resource Management
• Utilization of individuals to achieve
  organizational objectives
• All managers at every level must
  concern themselves with human
  resource management
• Five functions
   –   Staffing
   –   HR Dev’t
   –   Motivation & Evaluation
   –   Employee Provisions
   –   Industrial Relations

                                          1-2
Human Resource Management Functions


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                                                       1-3
STAFFING


                                  •   Human Resource Planning
                                  •   Job Analysis
                                  •    Recruitment
                                  •   Selection



Source: flyhightechnologies.com




                                                                1-4
Staffing - Process through which organization
  ensures it always has proper number of
  employees with appropriate skills in right jobs at
  right time to achieve organizational objectives
  - Penalties for not being correctly staffed are costly.
      This is due to Understaffing or Overstaffing.




                      Source: rjstaffing.com
                                                       1-5
Human resource planning - Systematic process of
  matching the internal and external supply of people
  with job openings anticipated in the organization over
  a specified period of time.
  Future staffing needs will derive from:
     - sales and production forecasts
     - technological change
     - government policies
     - change in employment practices and others.




             Source: staffing.medicalsolutions.com         1-6
• Job analysis - Systematic process of
  determining skills, duties, and knowledge
  required for performing jobs in organization
  - job description is an output of this activity.
Recruitment - Process of attracting individuals on
 a timely basis, in sufficient numbers, and with
 appropriate qualifications, to apply for jobs with
 an organization
 - main sources of recruitment are: internal, career
    officers, university appointment board, agencies and
    advertising



                               source;:techguidesinc.com
                                                           1-7
• Selection - Process of choosing from a group of
  applicants the individual best suited for a
  particular position and the organization
  – This process involves testing the applicants’ aptitude,
    general intelligence and attainments
  – The activities involved in this process varies
    depending on the post being filled.




     Source: oasiscorporation.com
                                                          1-8
HUMAN RESOURCE DEVELOPMENT
•   Training
•   Development
•   Education (Career Planning & Development)
•   Organizational Development

    -   within an organization these are necessary in
    order to: develop workers to undertake higher-
    grade tasks, provide conventional training to new
    employees, raise efficiency, meet legislative
    requirements and inform people


                                                        1-9
• Training - Designed to provide learners with knowledge
  and skills needed for their present jobs
• Development - Involves learning that goes beyond
  today's job; it has more long-term focus
• Career planning - Ongoing process whereby individual
  sets career goals and identifies means to achieve them
• Career development - Formal approach used by
  organization to ensure that people with proper
  qualifications and experiences are available when
  needed
• Organization Development - Planned process of
  improving organization by developing its structures,
  systems, and processes to improve effectiveness and
  achieving desired goals


                                                      1-10
MOTIVATION & EVALUATION

Financial, Psychological and even
  Physiological - All rewards that
  individuals receive as a result of their
  employment

Performance Management & Appraisal
  -an organization needs constantly to
  take stock of its workforce and to
  assess its performance in existing
  jobs
                                             1-11
Financial (Compensation)

• Direct Financial Compensation - Pay that person
  receives in form of wages, salaries, bonuses, and
  commissions.

• Indirect Financial Compensation (Benefits) - All financial
  rewards not included in direct compensation such as
  paid vacations, sick leave, holidays, and medical
  insurance.




                                                          1-12
Psychological and Physiological

• Non Financial Compensation - Satisfaction that
  person receives from job itself or from psychological and/
  or physical environment in which person works.
  -   The influence of behavioral science discoveries are
      becoming important not merely because of the
  widely- acknowledged limitations of money as a
  motivator, but because of the changing mix and
  nature of tasks




                                                         1-13
Performance Evaluation

• Performance management - Goal-oriented
  process directed toward ensuring organizational
  processes are in place to maximize productivity of
  employees, teams, and ultimately, the
  organization

• Performance appraisal - Formal system of review
  and evaluation of individual or team task
  performance



                                                 1-14
EMPLOYEE PROVISIONS

                               Employees who work
                               in safe environment,
                               enjoy good health and
                               welfare are more likely
                               to be productive and
Source: fishingforedtech.com
                               yield long-term
                               benefits to
                               organization.


                                                    1-15
Safety and Health
• Safety - Involves protecting employees from injuries
  caused by work-related accidents

• Health - Refers to employees' freedom from illness and
  their general physical and mental well being

  -   the government prescribes strict implementation or
      observation of the occupational health and safety
      standards in the different workplaces.




                                                         1-16
Welfare Benefits
• Fringe Benefits or Perks - are
  various non-wage compensations
  provided to employees in addition to
  their normal wages or salaries.
  - Examples of these benefits include:
  housing (employer-provided or
  employer-paid), group insurance
  (health, dental, life etc.), disability
  income protection, retirement
  benefits, loan benefits, recreational
  benefits, daycare, tuition
  reimbursement, sick leave, vacation
  (paid and non-paid), social security,
  profit sharing, funding of education,
  and other specialized benefits.
                                      1-17
INDUSTRIAL RELATIONS
• Business is required by law to recognize a union and
  bargain with it in good faith if the firm’s employees want
  the union to represent them
• Human resource activity is often referred to as industrial
  relations
• Most firms today would rather have a union-free
  environment




                                                          1-18
INTERRELATIONSHIPS OF HRM FUNCTIONS



              • All HRM functions are
                interrelated
              • Each function affects other
                areas




                                         1-19

HR Functions

  • 1.
    Module 3: HUMANRESOURCE MANAGEMENT Its Functions and their Interrelationships PANGASINAN STATE UNIVERSITY – GRADUATE SCHOOL DM 212 Human Resource Management and Development MARJOHN P. SANTE Discussant 1-1
  • 2.
    Human Resource Management •Utilization of individuals to achieve organizational objectives • All managers at every level must concern themselves with human resource management • Five functions – Staffing – HR Dev’t – Motivation & Evaluation – Employee Provisions – Industrial Relations 1-2
  • 3.
    Human Resource ManagementFunctions ing aff Hu St m De an ve Re lop so m urc Indu en e t stria Human l Rela Resource 1 luati & Management tion on n vatio s Moti Eva Employee Provisions 1-3
  • 4.
    STAFFING • Human Resource Planning • Job Analysis • Recruitment • Selection Source: flyhightechnologies.com 1-4
  • 5.
    Staffing - Processthrough which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives - Penalties for not being correctly staffed are costly. This is due to Understaffing or Overstaffing. Source: rjstaffing.com 1-5
  • 6.
    Human resource planning- Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time. Future staffing needs will derive from: - sales and production forecasts - technological change - government policies - change in employment practices and others. Source: staffing.medicalsolutions.com 1-6
  • 7.
    • Job analysis- Systematic process of determining skills, duties, and knowledge required for performing jobs in organization - job description is an output of this activity. Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization - main sources of recruitment are: internal, career officers, university appointment board, agencies and advertising source;:techguidesinc.com 1-7
  • 8.
    • Selection -Process of choosing from a group of applicants the individual best suited for a particular position and the organization – This process involves testing the applicants’ aptitude, general intelligence and attainments – The activities involved in this process varies depending on the post being filled. Source: oasiscorporation.com 1-8
  • 9.
    HUMAN RESOURCE DEVELOPMENT • Training • Development • Education (Career Planning & Development) • Organizational Development - within an organization these are necessary in order to: develop workers to undertake higher- grade tasks, provide conventional training to new employees, raise efficiency, meet legislative requirements and inform people 1-9
  • 10.
    • Training -Designed to provide learners with knowledge and skills needed for their present jobs • Development - Involves learning that goes beyond today's job; it has more long-term focus • Career planning - Ongoing process whereby individual sets career goals and identifies means to achieve them • Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed • Organization Development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals 1-10
  • 11.
    MOTIVATION & EVALUATION Financial,Psychological and even Physiological - All rewards that individuals receive as a result of their employment Performance Management & Appraisal -an organization needs constantly to take stock of its workforce and to assess its performance in existing jobs 1-11
  • 12.
    Financial (Compensation) • DirectFinancial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions. • Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance. 1-12
  • 13.
    Psychological and Physiological •Non Financial Compensation - Satisfaction that person receives from job itself or from psychological and/ or physical environment in which person works. - The influence of behavioral science discoveries are becoming important not merely because of the widely- acknowledged limitations of money as a motivator, but because of the changing mix and nature of tasks 1-13
  • 14.
    Performance Evaluation • Performancemanagement - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization • Performance appraisal - Formal system of review and evaluation of individual or team task performance 1-14
  • 15.
    EMPLOYEE PROVISIONS Employees who work in safe environment, enjoy good health and welfare are more likely to be productive and Source: fishingforedtech.com yield long-term benefits to organization. 1-15
  • 16.
    Safety and Health •Safety - Involves protecting employees from injuries caused by work-related accidents • Health - Refers to employees' freedom from illness and their general physical and mental well being - the government prescribes strict implementation or observation of the occupational health and safety standards in the different workplaces. 1-16
  • 17.
    Welfare Benefits • FringeBenefits or Perks - are various non-wage compensations provided to employees in addition to their normal wages or salaries. - Examples of these benefits include: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, loan benefits, recreational benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits. 1-17
  • 18.
    INDUSTRIAL RELATIONS • Businessis required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them • Human resource activity is often referred to as industrial relations • Most firms today would rather have a union-free environment 1-18
  • 19.
    INTERRELATIONSHIPS OF HRMFUNCTIONS • All HRM functions are interrelated • Each function affects other areas 1-19