ABLAZA CALUPAZ GODOY LEDESMA.

OPEDA SALDI VILLARICO MAPA

4ITD

Marvin Villarico

 Pre-Spanish Occupation Trade and commerce conducted on Barter system No formal and permanent groups to necessitate the organization of management and labor groups Personnel management was not known Spanish Occupation Business organizations were very loose and management-labor relations was unheard of Master and domestic servant/laborer relationship regulated by the Civil Code of 1889 which was extended to the Philippines on December 7, 1889
Marvin Villarico

 Spanish Occupation (cont.) Code of Commerce governed more on trade and commercial transactions Regrettable situation of workers due to the absence of labor laws that regulated employment Very few schools established; natives were generally illiterate and unenlightened Enlightened leaders such as Jose Rizal and M. H. del Pilar lead the Filipinos to rise up in arms for freedom and dignity

Marvin Villarico

 American Occupation No labor laws passed against oppressed women and child labor Farmhands and industrial workers suffered from lack of proper revenues Unionism was introduced due to increased trade and industry Management effort to maintain and develop workers was virtually non-existent More schools established raising the level of literacy and enlightenment

Marvin Villarico

 Japanese Occupation World War II witnessed a suspension of the normal educational 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 extinguished temporarily

Marvin Villarico

 Post War Period A change of tide in favor of personnel management. Development and growth in the Philippines is primarily a post-war phenomenon which Sison attributes to: Increasing complexity of business operations Number of government regulations and labor laws promulgated in recent years Growth of labor unions Influx of new concepts in management Rehabilitation programs assumed many forms of physical, governmental, educational, economic and moral infrastructure which made people employable and busy Marvin Villarico

 Post War Period (cont.) Creation and operation of the Department of Labor, Government Service Insurance System (GSIS), Social Security System (SSS), the National Youth and Manpower Council (NYMC) Personnel Management Association of the Philippines (PMAP) provided a national push to remind top management of the latters role in personnel management through its educational, informational, public relations and legal support programs and projects Schools offering courses treating concepts on labor, manpower, human relations, industrial relations and other related topics
Marvin Villarico

 Martial Law Period Years wherein the President set up the parliamentary form of government and took the role of tackling and swiftly the avowed main problem of insurgency On the labor aspect, this period was characterized by relatively less increase of local unions, by the federation of existing unions and by a government ban on strikes in vital industries as mandated by presidential decrees Schools continued offering courses on people Term and concept of human resources management seeped into the work setting and academe through literature and returning scholars, grantees, academe and practitioners from abroad.
Marvin Villarico

 Post Martial Law Period to 1995 Work setting is still shot through management-labor problems Problems such as insurgency, attempts to abrogate constitutional authority, indebtedness, land reform program, graft and corruption in the government and foreign military bases burdened on labor

Marvin Villarico

 From 1990 to Date Reinstitution of democracy, exercise of freedom, mechanisms of wider consultation, participative law making process, serious effort by the Tripartile Conference to formulate, agree on and sign the 1987 Accord on Industrial Harmony and the incumbent Presidents personal role modeling constituted to some positive signals to unfreeze the previous and present status quo PMAP exerted and shown leadership, giving awards such as the best personnel manager, best personnel and human resource program organizations and best employer every year

Marvin Villarico

 The Environment and Human Resources Management A taken-for-granted insight: human resources management is a product of its

environment.
Economic Environment This is where the trade, business and industry is strong and there is plenty of

activity, employment is high.

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

innovation are curtailed or wanting.

Educational Environment This is where masses are enlightened through training, education and mass

media. The workers become aware of their rights, even risking their lives in their defense of these. Marvin Villarico

Christian Godoy

HRM
More embracing in people coverage Employees are parttimers and flex-timers Flexible on place and work Multifarious services Human Engineers Uses the help social science researchers and behavioral scientists for staff qualifications

Personnel Management
Rank and File workers, evaluation Employees are usually full-timers Mandatory formal work setting Functions are repetitive Officer-in-Charges function: mechanistic and very simple Uses the help of lawyers for background checking for staff qualifications Christian Godoy

HRM
Reports directly to general management Achievement of organizational and individual goals Developmental, flexible, and participatory kind of approach Objective and scientific in strategy People-based philosophy with humane treatment and respect to individuals People treated as investments

Personnel Management
Lower level of reporting Rigid approach Achievement of organizational goals Control-oriented approach Personally-subjective in terms of strategy People treated as expense items

Christian Godoy

Jelainie Mapa

 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

Jelainie Mapa

 LABOR FORCE (cont.) Aging Workforce Age composition of labor force and forecasts of employment trends Note Ages 55 and older has the fastest growing age group of workers Ages 25 44 slightly increases Ages 16 24 are fewer in number

Experience is the key point being observed for this trend

Jelainie Mapa

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

Jelainie Mapa

 Skill Deficiencies of the Workforce Demand on educational achievements Competition exists Key note: The knowledgeable gets to be chosen

Jelainie Mapa

Kenneth Saldi

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

system and technical system Knowledge Worker Employees whose main contribution to the organization is specialized knowledge Knowledge workers are need for jobs in Health Services, Business Services, Social Services, Engineering and Management Specialization supplies the demand for a particular requirement of an organization Key note: Specialized Knowledge
Kenneth Saldi

 EMPLOYEE EMPOWERMENT Giving employees responsibility and authority to make decisions

regarding all aspects of product development or customer service. HRM practices such as performance management, training, work design, and compensation. Key note: involving employees the organizations operations
Teamwork The assignment of work groups of employees with various skills who

interact to assemble a product or provide a service.

Kenneth Saldi

 SUPPORTING ORGANIZATION STRATEGY FOR

QUALITY, GROWTH, AND EFFICIENCY

Focus on Strategy Plan for meeting broad goals such as profitability, quality, and market

share HR professionals are strategic partners with other managers Involvement of the HRM to the development of the strategies aligning to HRM policies and practices

Kenneth Saldi

 SUPPORTING ORGANIZATION STRATEGY FOR

QUALITY, GROWTH, AND EFFICIENCY (cont.)

HRM can support these strategies, including efforts such as quality

improvement programs, mergers and acquisitions and restructuring

High Quality Standards

Many organizations adopted some form of TOTAL QUALITY

MANAGEMENT a companywide effort to continuously improve ways people and machines, and systems accomplish work.

Kenneth Saldi

 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 merger or acquisition?
Training efforts should include development of skills in conflict

resolution. Sort differences in the two companies practices Settle a consistent structure to meet the combined organizations goals
Kenneth Saldi

 1990s- war of talents Organizations sought to become employers of choice, to

establish employment brands, and to develop employee value propositions. or cutting whole business that were in declining markets while simultaneously building businesses and employee bases in newer, higher-growth markets.

Organizations were laying off employees with out-dated skills

Kenneth Saldi

Challenges: Reduce the workforce by cutting only the workers who are less valuable in their performance. Boost morale of employees who remain after the reduction. Opportunities: Provide downsized employees with outplacement services to help them find new jobs. Roles of HR professionals: Maintain open communication with remaining employees to build their trust and commitment, rather than withholding information.

Kenneth Saldi

 a complete overview of the organizations critical work process to

make them more efficient and able to deliver higher quality. Involves reviewing all the processes performed by all the organizations major functions

How can it affect HRM?

1. The way HR department accomplishes its goals may change. 2. The fundamental change throughout the organization requires the

HR department to help design and implement change so that all employees will be committed to the success of the reengineered organization.
Kenneth Saldi

Refers to the practice of having another company (a vendor, third-party provider, or consultant) provide services.

Kenneth Saldi

(Coca-Cola, Microsoft, Walt Disney, Intel) People are companys most important asset

Kenneth Saldi

 Organizations with international operations hire at least some

of their employees in the foreign countries where they operate. Offshoring

moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.
Kenneth Saldi

 Organizations must be prepared to send employees to other

countries. Expatriates employees who take assignments in other countries.

Kenneth Saldi

Mayel Ledesma

 Large quantities of employee data (training records,

skills, compensation rates, benefits usage and cost) can easily be stored and manipulated. Human resource information system (HRIS) a computer system used to acquire, store, manipulate, analyse, retrieve and distribute information related to an organizations human resources.

Mayel Ledesma

Challenges:
Requires companies to continually update their skill

requirements and then recruit and train people to meet those requirements.
HRM needs to help companies comply with labour laws,

motivate employees, and craft human resource policies that seem fair to workers and meet employers competitive demands.

Mayel Ledesma

E-HRM The processing and transmission of digitized HR information, especially using computer networking and internet. Electronic HRM applications let employees enrol in and participate in training programs online.

Mayel Ledesma

HRM PRACTICES IMPLICATIONS OF E-HRM Analysis and Employees in geographically dispersed design of work locations can work together in virtual teams using video, e-mail, and the Internet. Recruiting Post job openings online; candidates can apply for jobs online. Training Online learning can bring training to employees anywhere, anytime.

Mayel Ledesma

HRM PRACTICES IMPLICATIONS OF E-HRM Selection Online simulations, including tests, videos, and e-mails, can measure job candidates ability to deal with real-life business challenges. Compensation Employees can review salary and bonus and benefits information and seek information about and enrol in benefit plans.

Mayel Ledesma

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

Intranet network that uses Internet tools but limits access to authorized users in the organization. Web portals web sites designed to serve as a gateway to the Internet, highlighting links to relevant information.

Self-service
system in which employees have online access to information about HR issues and go online to enrol themselves in programs and provide feedback through surveys.
Mayel Ledesma

Karen Opeda

 A New Psychological Contract Psychological Contract A description of what an employee expects to contribute

in an employment relationship and what the employer will provide the employee in exchange for those contributions. It describes unspoken expectations that are widely held by employers and employees.

Karen Opeda

Traditional Psychological contract Employee: Time Effort Skills Abilities Loyalty Employer: Job Security Opportunities for promotion

New Psychological Contract Employer: Provide flexible work schedule Comfortable working conditions More control over how the accomplish work Training and Development opportunities Financial incentives based on how the organization performs. Employability (The Company will provide training and job experience to help ensure that they can find other employment opportunities.)
Karen Opeda

 Flexibility Key to survival in a fast-changing environment. Includes flexible staffing levels and flexible work schedules. Flexible staffing Levels Flexible staffing levels using Alternative work arrangements. Alternative work arrangements Methods of Staffing other than the traditional hiring of full-time

employees.

Karen Opeda

 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 are

needed. Temporary workers Employed by a temporary agency; client organizations pay the agency for the services of these workers. Contract company workers Employed directly by a company for a specific time specified in a written contract.
Karen Opeda

Flexible Work Schedule Employee Employer Ease pressures and conflicts Protect employees free time of trying to balance work and Productively use employees non-work activities. work time Recruit and retain employees Increase satisfaction and productivity.
Karen Opeda

Angelo Calupaz

How HR Helps Reduce Costs

Kinds of expenses A. Cost of Products sold Components

Goods and materials Utilities

1. Factory Inventory Costs (FIC)

Depreciations People-related ones

Some contributions of HR to cost reduction, insuring that. Manpower is not misused or misdirected Everyone does a days work For a days pay Work is not interrupted Accidents are reduced Turnover is minimized Materials and time are not wasted

Angelo Calupaz

How HR Helps Reduce Costs

Kinds of expenses 2. Plant Burden Components

Plant utility Overhead expenses

Some contributions of HR to cost reduction, insuring that. The right people are recruited 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 Angelo Calupaz

How HR Helps Reduce Costs

Kinds of expenses Components

3. Factory Cost Adjustments (FCA)

Some contributions of HR to cost reduction, insuring that. Scrap Productivity / Efficiency Dedication to quality work Cost variances Loss of materials is promoted Waste and scrap are Off-spec products Engineering and purchasing eliminated expenses Output is increased Attitudes leading to Trial production costs mistakes are eliminate

Angelo Calupaz

How HR Helps Reduce Costs

Kinds of expenses Components

B. Operating Costs

Distribution Advertising and promotions Selling Products Services R & D (research and development) Administrative and general services

Some contributions of HR to cost reduction, insuring that. Warehouse people are properly managed Morale is increased through good compensation and employee policies Loss services and repair costs are anticipated by assuring product quality Good R & D people are hired and retained The right jobs are assigned to the right people Angelo Calupaz

 Proper handling of Employees = Increase in productivity and reduction of c

osts
COMPANY COST STRUCTURE Raw Materials Direct Labor Overhead (rent, utilities, supplies, miscellaneous expenses, etc.) Example Scenarios: An unqualified person was assigned to accomplish a job to acquire m

aterials. Could result to: Higher cost of acquisition Buy materials that cannot be used at all

Angelo Calupaz

 They take an unskilled person who has to operate a machine; the skill may be

learned and polished. However, when technology is changed and an electroni c machine is adopted, then the person becomes a liability. He cannot process properly and may increase wastage because of lack of knowledge.
HRM must devote to the development of such employee to ensure BETTER P

ERFORMANCE, if not the same

Example for Direct Labor: Undisciplined employees would use company time to do other things that d

o not contribute to their productivity Note: HRM should inculcate certain norms that the company observes to h elp lower direct labor costs or maximize an employees potentials
Angelo Calupaz

 FACTORY INVENTORY, DEPRICIATION AND PEOPLE RELATED COSTS

Human Resources Management could:

Provide Incentives for the workers so that continuous work could be done to avoid depre

ciation. This would encourage them to do their best and so would produce the output requi red with least depreciation costs Proper maintenance of machines to reduce accidents and also breakdown of machines i f the workers are motivated to take care of them. Minimize turnover of personnel when employees are satisfied with their jobs personnel t urnover is minimized and materials and time are not wasted PLANT BURDEN Right people > more knowledgeable about the equipment > avoid cost to fix machines Right people > more productive and efficient Right people precludes having wrong people Angelo Calupaz

 PROPER TRAINING OF THE SALES FORCE AND MANAGERS

Managers properly trained > motivate employees > work more efficiently and more productively
Sales force trained well > goods sold quickly > less inventory > less storage costs to keep unsol

d 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

Angelo Calupaz

 FACTORY COST ADJUSTMENTS

Human resource management helps and contributes a lot in the cost reduction of a business

firm particularly in the factory cost adjustments (FCA). This leads to productivity/efficiency, de dication to quality work, elimination of waste and scrap. The more motivated and satisfied the people are, the more they would contribute to the comp any and the more loyalty is established.

Angelo Calupaz

 Components in human resources contributions:

1. Scrap - if people know what they are doing with proper management, they are bound to m

ake less mistakes thus minimizing scrappage 2. Cost variances - HRM can make use of standards to motivate people in order to avoid unf avorable cost variances 3. Loss of material - highly motivated people will always consider the availability of materials and their proper utilization. Thus beneficial results follow and in effect, loss of materials is avo ided. 4. Off-spec products close monitoring of orders will result in minimizing off-spec products 5. Engineering and purchase expense canvass materials first before purchase order. Loyalt y established and connivance with supplier avoided.

Angelo Calupaz

 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 and efficient, t

hus increasing the customer satisfaction Workers are properly screened for the company will not waste valuable time Productivity is kept high because of competitive compensation resulting in proper mo tivation of workers Advertising and Promotion human resources management is an investment rather than a cost in this area With the right people, advertising can be maximized given the budget constraints. Competent and creative employees would most probably come up with good advertisin g ideas that would lead to increase of company sales. Angelo Calupaz

 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 productivity. 3. Research and Development (R & D) In this department requires highly skilled and innovative people to provide new goods, servic

es 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

Angelo Calupaz