Chapter 1

THE DEVELOPMENT OF
HUMAN RESOURCES

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Objectives:
After the lesson, the students should be able to:
1. Define Human Resource Management;
2. Discuss why Human Resource Management is
both a science and an art;
3. Explain and differentiate the different roles of
the Human Resource Manager and his functions;
4. Discuss the importance of the Human Resource
Manager in a business and his major contribution
toward the development of the organization; and
5. Explain the career development of a Human
Resource Manager.

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Growth and Development of
Personnel/Human Resource Management
in the Philippines

• HRM – relatively new field in the

Philippines
• - gradually gained acceptance and
recognition in private business and industry
in the early 1950s

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For it to gain acceptance and
recognition, three conditions
need to exist:
• Top management must be convinced that
personnel management is needed in its
business operations;
• Qualified personnel administrators must be
available;
• Personnel administrators must demonstrate
their capacity to contribute to the
company’s objectives and goals.

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What is Human Resource
Management?

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Definition of Human Resource
Management
• The function of management, concerned with
promoting and enhancing the development of
work effectiveness and advancement of the
human resources in the organization. These
are accomplished through proper planning,
organizing, directing, coordination, and
controlling of activities related to
procurement, development, motivation, and
compensation of employees to achieve the
goals of the enterprise.
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HRM: A Science or an Art?

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 HRM: A Science and an Art
• A Science is a systematic accumulation of facts,
their analysis and interpretation, and their use
to arrive at a satisfactory conclusion.
• HRM is a science because it involves the
systematic gathering of data derived from
surveys, statistics, interviews, and observations.
• It is an applied science because it utilizes
scientific principles in analyzing and interpreting
data for application in the management of
people at work.

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• Art is proficiency in the practical application
of knowledge acquired through study,
experience, or observation. After the
required data are gathered and analyzed and
the possible solutions to a problem are
formulated, a good executive needs to select
the best from among alternative solutions.
He needs to implement his choice at the
right time to achieve the desired result, and
to foresee the probable success or failure
of his line of action, and institute needed
corrective measures promptly. This is where
HRM is an art, since it involved the making
of sound decision.
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• The major tools of the Human Resource
Manager as a scientist and as an artist are his:
• 1. creative imagination
• 2. intelligence
• These become more keen as he learns from
practice and experience, honing his intuition
and insight in handling various problems of
employees in such a way that there is order,
harmony, balance, and proper timing. He also
knows how to simplify complex problems.

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 Organization and Human Resources
• To grow and thrive in today’s competitive
environment, organization must deal with many
and diverse changes.
• Traditionally the concept of value has been
considered a function of finance or accounting.
• Human resources are crucial to the long-term
survival of the organization.
• Definition of value includes not only profits but
also employee growth and satisfaction,
additional employment opportunities, protection
of the environment, and contribution to
community development.
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• Organization is made up of people.
• The main goal of any organization is to
provide goods and services effectively.
• It is the people who are linked in a formal
structure and managerial leadership.
• People are vital to an effective HRM
program.
• The development of an effective
organization hinges on the proper selection,
development, and utilization, rewarding,
and maintaining capable people.

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• The organization resources are stretched
tightly to come up with the demand of the
global environment.
• The allocation of these various resources
wisely is imperative. An organization must work
together to contribute efficiently towards the
goals and objectives set by management.
• The effective utilization of manpower can help
add and create value.

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The Challenges of Human Resources

• 1. The challenges of the Global Community

• Compete with global business community to
survive
• Compete and defend not only their local
markets and customers; they must broaden
their scope to encompass global markets.

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• 2. The Stockholders Challenge
• Key to success – meet the investor’s needs
and those of the other stakeholders.
• Stakeholders are the customers, employees,
and the community where the enterprise
operates.
• The companies are challenged to reach
financial objectives through meeting
customer’s needs and employees’ need.
• Satisfied customers are assets that will
sustain company growth and financial
stability.
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• The HRM greatly influences cost reductions,
quality management, and financial systems
that are ingredients to profitability and
growth.
• Companies shall look into diverse work
forces to capitalize on forward-looking
ventures.
• Successful companies practice good HRM
programs that motivate and reward
employees that provide high quality
products and services. These companies
believe that their greatest assets are their
work force.
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• 3. The Challenge for Productivity
• The global technology is increasing the
challenge to greater productivity.
• HR became more “smarter workers” with the
aid of computer-aided machines, Internet, and
expert systems.
• They produce high quality products that are
demanded by the world market.
• The introduction of these new technologies
need the reconfiguration of the employee’s
work design, training program, and reward
system.

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 The links of high productivity are:

• 1. Human Resource and capabilities

• 2. New technology and opportunities
• 3. Efficient work structure and company policies
that allow employees and technology to interact.

• The organization’s competitive advantage depends

on the strength of the above linkage.

• Organizations must deal successfully with these

challenges to create and maintain value. HRM must
face these challenges to motivate and develop a
well-trained and committed work force.
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Contributing Growth Factors of
HR in the Philippines
• 1.Increasing Complexity of Business
Operations
• Birth of big corporations where the volume
and variety of operations and the size of
the labor force demanded specialization in
management.
• Personnel specialist was called upon to
formulate and carry out the organization’s
personnel policies and programs.
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• 2. Government regulations and labor laws promulgated
in recent years
• To safeguard the worker’s interests, especially those
related to wages, working conditions, job security,
and health, the government deemed it wise to enact a
number of labor laws and government regulations.
– Women and Child Labor Law
– Minimum Wage Law
– Eight-hour Labor Law
– Industrial Peace Act of 1953 (Magna Carta of Labor)
– Labor Code of the Philippines and its implementing
Rules and Regulations – took effect on Nov. 1, 1974.
• = compliance with these laws became part of services
of HR department
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• 3. Growth of labor unions
• The passage of the Industrial Peace Act of 1953
triggered the organizations of labor unions and
the strengthening of the worker’s bargaining
power.
• Collective bargaining negotiations and the
administration of union contracts may best be
handled with the technical resources of the HR
department.
• With the passage of the new law making unfair
practices a criminal offense, the responsibility of
the personnel or industrial relations department
becomes very important and thus makes the
position of personnel managers a necessity in
every company.
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• 4. Influx of new concepts in management
• The employee welfare concept is not new,
but its nature has changed from one of
paternalism to that of employee rights
through practices that have become
institutionalized.
• Employee benefits have become varied and
far ranging, making their administration a
complex function. The facilities of the HR
department are here again utilized to
handle such programs.

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• Personnel/Human Resource Manager
• A member of the top executive group, is
responsible for the formulation of
personnel policies and programs which will
serve as the foundation for an efficient
personnel administration in a company for
it to realize its goal an objectives and allow
the employees to develop their individual
career goals.
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 The Role of HR in the Organization

• The new role that the HR department performs

includes outplacements, labor law compliance,
record keeping, testing, compensation, and
some aspect of benefit administration.
• The HR department has to collaborate with
other company executives on employment
interviewing, performance management and
employee discipline, and efforts to improve
quality and productivity.

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The role includes the following:

• a. Recruitment and Employment

 Interviewing, testing, recruiting, and
temporary labor coordination.

• b. Training and Development

 Orientation of new and temporary
employees, performance management
training, and productivity enhancement

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• c. Wage and Salary Management
 Job evaluation, wage and salary survey,
executive compensation

• d. Benefits Administration
 Vacation and sick leaves administration,
insurance, stock plans, pension plans,
retirement plans assistance programs.

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• e. Employee Service and Recreation
 Bus service, canteens, athletics, housing
and relocation.

• f. Community Relations
 Publications, community projects and
relations.

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• g. Records Management
 Employment records, information systems,
performance records.

• h. Health and Safety

 Training, safety inspection, dental medical
services, drug testing.

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• i. Strategic Management
 Collaborative planning, out-sourcing,
manpower research, organizational planning.

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Roles of the Personnel/HR Manager

• Supervisor
• He plans, organizes, directs, controls and
coordinates the activities of his
department. He delegates some of his
functions to his subordinates but checks on
them through follow-ups. He manages the
work of the employees in his department
and trains them in developing their skills
for efficiency.
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• Administrative Official
• He or his staff conducts or directs certain
personnel activities as provided for in the
policies and programs entrusted to the
department. He sees to it that labor laws
and government regulations are properly
complied with. He should also know how a
policy is made and administered.

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• Adviser
• He serves as counselor, guide and
confidante to management supervisors and
employees. To be competent, he must keep
himself informed about employee attitudes
and behavior and be abreast of trends in
the industrial relations field which may
affect his company.

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• Coordinator
• He brings into action all activities,
regulates and combines diverse efforts
into a harmonious whole, and gets together
and harmonizes the work of various
personnel in his department and the
related functions in other departments.

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• Negotiator
• He is the representative of management in
negotiating labor contracts or to attend
negotiations with unions in an advisory
capacity. As a negotiator and
administrator of the labor contract, he
must understand the nature, significance,
and methods of collective bargaining.

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• Educator
• He conducts or administers the company’s
training program. He is very much involved
in the management of employee
development programs of his company.

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• Provider of Services
• He provides services to all employees and
helps them obtain facilities with
government agencies like SSS, Medicare,
etc., which can make their employment
more satisfying.

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• Employee Counselor
• His knowledge and training in human
relations and the behavioral sciences plus
his familiarity with company operations,
puts him in the best position to counsel
employees.

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• Promoter of Community Relations
• He must be well informed of the activities
and developments in the environment where
the enterprise operates. He is called by
the management in helping the company
project a favorable and positive image to
the community.

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• Public Relations Man
• His functions require him to deal with the
general public, which includes the
employees, the unions, and the community.

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Personal Qualities of the Personnel Manager

• A. can communicate effectively, both orally

and in writing.
• B. possesses an above average intelligence
• C. enjoys working with people
• D. grasps the implications of a given
situation, understands individual attitudes
and proves equal to the problems of the
employees and of the employer.

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• E. aggressive, mature and capable of giving
sound advice that will be in the best interests
of both the employer and the employee.
• F. Possesses the integrity, industry and
courage to earn the respect of the employees
and his employer.
• G. possess a pleasing personality and personal
warmth and should be approachable.

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The skills needed by today’s HR professionals

• A higher degree of professionalism is the

demand of the new HR practitioner. This
includes the following:

• 1. A higher degree of knowledge on

management practices and processes. He
would nee this to collaborate with other
line managers.

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• 2. The HR practitioner is a service provider
to other line managers. He must posses a
high degree of human and public relations.

• 3. A great knowledge of human psychology

and social relations. It is a great asset to
effective coordination.

• 4. He is a consultant on labor relations. A

working knowledge of labor laws and
regulations is of great advantage.
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• 5. As a management practitioner. A thorough
knowledge of management and its relations to
effective organization is a must for all HR managers
to plan out strategic approaches to problems and
their solutions.

• 6. A community relations office. The HR Manager

develops greater linkage with government and other
stakeholders. He has to coordinate with schools and
other agencies for their manpower pooling and other
services.

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End of Lecture

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• The Development of Human Resources
– Definition of Human Resource Management
– HRM: A Science and an Art
– Organization and Human Resources
– The challenges of Human Resources
– The Role of HR in the Organization

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• The Human Resources Department
– HRM Programs
– HRM Objectives
– Formulating HR Policies and Procedures
– Roles of the HR Manager
– Personal Qualities/Skills Needed by Today’s HR
Professionals

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