1Group-CH2Trends in Human Resource Management

7/27/2019 1Group-CH2Trends in Human Resource Management

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ABLAZA CALUPAZ GODOY

LEDESMA. OPEDA SALDI VILLARICO MAPA


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Pre-Spanish Occupation Trade and commerce conducted on Barter system

No formal and permanent groups to necessitate the organizamanagement and labor groups

Personnel management was not known

Spanish Occupation Business organizations were very loose and management-la

relations was unheard of

Master and domestic servant/laborer relationship regulated bCivil Code of 1889 which was extended to the Philippines onDecember 7, 1889


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Spanish Occupation (cont.) Code of Commerce governed more on trade and commercia

transactions

Regrettable situation of workers due to the absence of labor regulated employment

Very few schools established; natives were generally illiterateunenlightened

Enlightened leaders such as Jose Rizal and M. H. del Pilar leFilipinos to rise up in arms for freedom and dignity


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American Occupation No labor laws passed against oppressed women and child la

Farmhands and industrial workers suffered from lack of proprevenues

Unionism was introduced due to increased trade and industr

Management effort to maintain and develop workers was virtnon-existent

More schools established raising the level of literacy andenlightenment


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Japanese Occupation World War II witnessed a suspension of the normal educatio

system

Japanese had the last say on policies and practices

Big trade, business and industry activities were decimated

Annihilated existing management-labor relations Union movement and labor or personnel management exting

temporarily


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Post War PeriodA change of tide in favor of personnel management. Develop

and growth in the Philippines is primarily a post-war phenomwhich Sison attributes to:

Increasing complexity of business operations

Number of government regulations and labor laws promulgrecent years

Growth of labor unions

Influx of new concepts in management

Rehabilitation programs assumed many forms of physical,governmental, educational, economic and moral infrastructur

made people employable and busy


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Post War Period (cont.) Creation and operation of the Department of Labor, Governm

Service Insurance System (GSIS), Social Security System (SNational Youth and Manpower Council (NYMC)

Personnel Management Association of the Philippines (PMA

provided a national push to remind top management of the larole in personnel management through its educational, informpublic relations and legal support programs and projects

Schools offering courses treating concepts on labor, manpowhuman relations, industrial relations and other related topics


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Martial Law Period Years wherein the President set up the parliamentary form o

government and took the role of tackling and swiftly the avomain problem of insurgency

On the labor aspect, this period was characterized by relativeincrease of local unions, by the federation of existing unions government ban on strikes in vital industries as mandated bypresidential decrees

Schools continued offering courses on people

Term and concept of human resources management seepedwork setting and academe through literature and returning scgrantees, academe and practitioners from abroad.


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Post Martial Law Period to 1995 Work setting is still shot through management-labor problem

Problems such as insurgency, attempts to abrogate constitutauthority, indebtedness, land reform program, graft and corruthe government and foreign military bases burdened on labo


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From 1990 to Date Reinstitution of democracy, exercise of freedom, mechanism

wider consultation, participative law making process, seriousthe Tripartile Conference to formulate, agree on and sign theAccord on Industrial Harmony and the incumbent Presidentspersonal role modeling constituted to some positive signals t

unfreeze the previous and present status quo

PMAP exerted and shown leadership, giving awards such aspersonnel manager, best personnel and human resource proorganizations and best employer every year


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The Environment and Human Resources ManagementA taken-for-granted insight: human resources management is a pr

environment.

Economic Environment

This is where the trade, business and industry is strong and there activity, employment is high.

Political Environment This is where the political stability, expression of ideas and opport

innovation are curtailed or wanting.

Educational Environment

This is where masses are enlightened through training, education media. The workers become aware of their rights, even risking the

their defense of these.


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C


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HRM

More embracing in peoplecoverage

Employees are part-timers and flex-timers

Flexible on place and work

Multifarious services Human Engineers

Uses the help socialscience researchers andbehavioral scientists forstaff qualifications

PersonnelManagement

Rank and File workers,evaluation

Employees are usuallyfull-timers

Mandatory formal work

setting Functions are repetitive

Officer-in-Chargesfunction: mechanistic andvery simple

Uses the help of lawyersfor background checkingfor staff qualifications

C


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HRM Reports directly to general

management

Achievement oforganizational andindividual goals

Developmental, flexible,and participatory kind of

approach Objective and scientific in

strategy

People-based philosophywith humane treatmentand respect to individuals

People treated asinvestments

PersonnelManagement

Lower level of reporting

Rigid approach

Achievement of

organizational goals Control-oriented approach

Personally-subjective interms of strategy

People treated as expenseitems

C


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LABOR FORCE

refers to people willing and able to work

Internal Labor force

people who have contracts to work at the organization

External Labor Force

people actively seeking employment


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LABOR FORCE (cont.)

Aging Workforce

Age composition of labor force and forecasts of employme

Note

Ages 55 and older has the fastest growing age group of

Ages 25 44 slightly increasesAges 16 24 are fewer in number

Exper ience is the key point being ob served for this tre


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Diverse Workforce Diversity in racial, ethnic and gender terms considered in em

Immigration as its important source

Demand and supply for labor causes immigration

Key note: Turning diversity into an advantage

Skill Deficiencies of the Workforce

Demand on educational achievements

Competition exists

Key note: The knowledgeable gets to be chosen


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Skill Deficiencies of the Workforce Demand on educational achievements

Competition exists

Key note: The knowledgeable gets to be chosen


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HIGH PERFORMANCE WORK SYSTEMS Organizations that have the best possible fit between their so

system and technical system

Knowledge Worker

Employees whose main contribution to the organization isspecialized knowledge

Knowledge workers are need for jobs in Health Services, BServices, Social Services, Engineering and Management

Specialization supplies the demand for a particular requirean organization

Key note: Special ized Knowledge


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EMPLOYEE EMPOWERMENT Giving employees responsibility and authority to make decis

regarding all aspects of product development or customer se

HRM practices such as performance management, training, design, and compensation.

Key note: involv ing employees the o rganizations oper

Teamwork

The assignment of work groups of employees with various sinteract to assemble a product or provide a service.


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SUPPORTING ORGANIZATION STRATEGY FORQUALITY, GROWTH, AND EFFICIENCY Focus on Strategy

Plan for meeting broad goals such as profitability, quality, andshare

HR professionals are strategic partners with other managers Involvement of the HRM to the development of the strategies

to HRM policies and practices


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SUPPORTING ORGANIZATION STRATEGY FORQUALITY, GROWTH, AND EFFICIENCY (cont.) HRM can support these strategies, including efforts such as

improvement programs, mergers and acquisitions and restru

High Quality Standards

Many organizations adopted some form of TOTAL QUALITYMANAGEMENT a companywide effort to continuously impropeople and machines, and systems accomplish work.


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Mergers- two companies becoming one Acquisition- one company buying another

(These results in consolidation within an industry. )

What are the significant roles of HRM in carrying out a merg

acquisition?

Training efforts should include development of skills in conflictresolution.

Sort differences in the two companies practices

Settle a consistent structure to meet the combined organization


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1990s- war of talents

Organizations sought to become employers of choiceestablish employment brands, and to develop emplvalue propositions.

Organizations were laying off employees with out-dateor cutting whole business that were in declining markewhile simultaneously building businesses and employbases in newer, higher-growth markets.


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Challenges: Reduce the workforce by cutting only the workers who are less

in their performance.

Boost morale of employees who remain after the reduction.Opportunities:Provide downsized employees with outplacement services to hefind new jobs.Roles of HR professionals:

Maintain open communication with remaining employees to butrust and commitment, rather than withholding information.


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a complete overview of the organizations critical work procmake them more efficient and able to deliver higher quality

Involves reviewing all the processes performed by all theorganizations majorfunctions

How can it affect HRM?

1. The way HR department accomplishes its goals may change2. The fundamental change throughout the organization require

HR department to help design and implement change so thaemployees will be committed to the success of the reengineorganization.


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Refers to the practice of having anothcompany (a vendor, third-party provider

consultant) provide services.


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(Coca-Cola, Microsoft, Walt Disney, Int

People are companys most important a


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Organizations with international operations hire at leaof their employees in the foreign countries where theyoperate.

Offshoring moving operations from the country where a compa

headquartered to a country where pay rates are lowthe necessary skills are available.


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Organizations must be prepared to send employees tcountries.

Expatriates

employees who take assignments in other countri


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M


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Large quantities of employee data (training recskills, compensation rates, benefits usage and can easily be stored and manipulated.

Human resource information system (HRIS) a

computer system used to acquire, store, manipanalyse, retrieve and distribute information relaan organizations human resources.

M


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Challenges:

Requires companies to continually update their skillrequirements and then recruit and train people to meerequirements.

HRM needs to help companies comply with labour lawmotivate employees, and craft human resource policieseem fair to workers and meet employers competitivedemands.

M


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E-HRM The processing and transmission of dHR information, especially using computer netwand internet.

Electronic HRM applications let employees enr

and participate in training programs online.

M


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HRM PRACTICES IMPLICATIONS OF E-HRM

Analysis anddesign of work

Employees in geographically dispersedlocations can work together in virtual te

using video, e-mail, and the Internet.

Recruiting Post job openings online; candidates c

apply for jobs online.

Training Online learning can bring training toemployees anywhere, anytime.

M


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HRM PRACTICES IMPLICATIONS OF E-HRM

Selection Online simulations, including tests, vidand e-mails, can measure job candidat

ability to deal with real-life business

challenges.

Compensation

and benefits

Employees can review salary and bon

information and seek information abouenrol in benefit plans.

M


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HR information is confidential and not suitable for posting on a Web Intranet

network that uses Internet tools but limits access to authorizein the organization.

Web portals

web sites designed to serve as a gateway to the Internet, hilinks to relevant information.

Self-service

system in which employees have online access to informatioHR issues and go online to enrol themselves in programs and providefeedback through surveys.

M


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A New Psychological ContractPsychological Contract

A description of what an employee expects to contin an employment relationship and what the emploprovide the employee in exchange for those contri

It describes unspoken expectations that are widelyby employers and employees.


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Traditional Psychological contract New Psychological ContractEmployee:

Time

Effort

Skills

Abilities

Loyalty

Employer:

Job Security

Opportunities for promotion

Employer:

Provide flexible work schedu

Comfortable working conditio

More control over how the a

work

Training and Development op

Financial incentives based on

organization performs.

Employability (The Company

training and job experience t

that they can find other emp

opportunities.)


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Flexibility Key to survival in a fast-changing environment.

Includes flexible staffing levels and flexible work schedul

Flexible staffing Levels

Flexible staffing levels using Alternative work arrangement

Alternative work arrangements Methods of Staffing other than the traditional hiring of ful

employees.


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Most common Alternative work arrangements Independent Contractors

Self employed individuals with multiple clients.

On-call workers

Persons who work for an organization only when they aneeded.

Temporary workers Employed by a temporary agency; client organizations p

agency for the services of these workers.

Contract company workers

Employed directly by a company for a specific time specwritten contract.


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Employee Employer

Ease pressures and conflicts

of trying to balance work and

non-work activities.

Protect employees free t

Productively use employe

work time Recruit and retain employ

Increase satisfaction and

productivity.

Flexible Work Schedule


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A


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Kinds of expenses Components Some contributions of HR tocost reduction, insuring that

A. Cost of Products sold Goods and materials Utilities Manpower is notmisused or misdirected

Everyone does a days

work1. Factory Inventory Costs

(FIC) Depreciations People-related ones

For a days pay Work is not interrupted Accidents are reduced Turnover is minimized Materials and time are

not wasted

How HR Helps Reduce Costs

A


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Kinds of expenses Components Some contributions of HR tocost reduction, insuring that

2. Plant Burden Plant utility Overhead expenses The right people arerecruited

The sales force and

managers are properly

trained A working climate that

keeps morale high is

maintained The manufacturing

people produce goods in

the needed number of

quality


A


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Kinds of expenses Components Some contributions of Hcost reduction, insuring

3. Factory Cost Adjustments

(FCA) Scrap Cost variances Loss of materials Off-spec products

Engineering and purchasingexpenses

Trial production costs

Productivity / Efficie

Dedication to quality

is promoted Waste and scrap are

eliminated Output is increased Attitudes leading to

mistakes are elimina


A


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Kinds of expenses Components Some contributionsreduction, insuring

B. Operating Costs Distribution Advertising and promotions Selling Products Services R & D (research and

development) Administrative and general

services

Warehouse peo

properly manag

Morale is increa

good compensa

employee polici

Loss services anare anticipated

product quality Good R & D peo

and retainedThe right jobs a

the right people


A


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Proper handling of Employees = Increase in productivity and reduosts

COMPANY COST STRUCTURE

Raw Materials

Direct Labor

Overhead (rent, utilities, supplies, miscellaneous expenses,

Example Scenarios:

An unqualified person was assigned to accomplish a job to aaterials. Could result to:

Higher cost of acquisition

Buy materials that cannot be used at allA


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They take an unskilled person who has to operate a machine; the sklearned and polished. However, when technology is changed and anc machine is adopted, then the person becomes a liability. He cannoproperly and may increase wastage because of lack of knowledge.

HRM must devote to the development of such employee to ensure BERFORMANCE, if not the same

Example for Direct Labor: Undisciplined employees would use company time to do other thi

o not contribute to their productivity

Note: HRM should inculcate certain norms that the company obseelp lower direct labor costs or maximize an employees potentials

A


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FACTORY INVENTORY, DEPRICIATION AND PEOPLE RELATED COSTS Human Resources Management could:

Provide Incentives for the workers so that continuous work could be done tociation. This would encourage them to do their best and so would produce thered with least depreciation costs

Proper maintenance of machines to reduce accidents and also breakdown of the workers are motivated to take care of them.

Minimize turnover of personnel when employees are satisfied with their jobs

urnover is minimized and materials and time are not wasted PLANT BURDEN

Right people > more knowledgeable about the equipment > avoid cost to fix m

Right people > more productive and efficient

Right people precludes having wrong people

A


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PROPER TRAINING OF THE SALES FORCE AND MANAGERS Managers properly trained > motivate employees > work more efficiently and more

Sales force trained well > goods sold quickly > less inventory > less storage costs tod goods

Good working climate > morale high

Benefits of proper training of management

avoids turnovers, complaints, strikes, etc. minimize medical costs by preventing accidents and illnesses

increase productivity or maintain a high level of productivity

People produce goods in the needed number and quality

Wastage of materials is avoided

Costs of overhead expenses caused by delays can be minimized

A


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FACTORY COST ADJUSTMENTS Human resource management helps and contributes a lot in the cost reduction o

firm particularly in the factory cost adjustments (FCA). This leads to productivity/edication to quality work, elimination of waste and scrap.

The more motivated and satisfied the people are, the more they would contributeany and the more loyalty is established.

A


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Components in human resources contributions:

1. Scrap - if people know what they are doing with proper management, they areake less mistakes thus minimizing scrappage

2. Cost variances - HRM can make use of standards to motivate people in order avorable cost variances

3. Loss of material - highly motivated people will always consider the availability and their proper utilization. Thus beneficial results follow and in effect, loss of maided.

4. Off-spec products close monitoring of orders will result in minimizing off-spe 5. Engineering and purchase expense canvass materials first before purchase

y established and connivance with supplier avoided.

A


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OPERATING COSTS

1. Distribution, Advertising and Promotion

Human resource management can reduce operating costs in this area

Distribution

Properly trained workers can help make the distribution more effective ahus increasing the customer satisfaction

Workers are properly screened for the company will not waste valuable t

Productivity is kept high because of competitive compensation resulting tivation of workers

Advertising and Promotion

human resources management is an investment rather than a cost in this a

With the right people, advertising can be maximized given the budget const

Competent and creative employees would most probably come up with goog ideas that would lead to increase of company sales.

A


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2. Selling and Product Service

Incentive schemes to maintain the companys good salesmen

Higher sales volume can be achieved with fewer but highly motivated people.

implementing a system which gives bonuses and merit increases for increased p

3. Research and Development (R & D)

In this department requires highly skilled and innovative people to provide new ges and methods.

Administration and General Services the company should be careful not to assign the right people to wrong jobs

General and Administrative departments serve as the backbone of the company

A


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