IE 001

Engineering
Management
 Human
Resources
Management
HUMAN RESOURCES
MANAGEMENT
INTENDED LEARNING OUTCOMES:
1. Explain the importance of the human
resource
● how an organization’s human resources
can be a significant source of
competitive advantage
● activities necessary for staffing the
organization and sustaining high
employee performance
2. Explain the importance of the human
resource management process and the
environmental factors that most
directly affect it.
3. What is human resource planning
HUMAN RESOURCES
MANAGEMENT
4. Staffing the organization
● Discuss the major sources of potential
job candidates
● Describe the different selection devices
and discuss which ones work best for
different jobs
● Explain what a realistic job preview is
and why it’s important
5. Orientation and Skill Development
● Describe the different types of training
and how that training can be provided
HUMAN RESOURCES
MANAGEMENT
6. Managing and Rewarding Performance
● Describe the different performance
appraisal methods
7. Compensation and Benefits
● Discuss the factors that influence
employee compensation and benefits
● Describe skill-based pay systems
8. Career Development
● Describe career development for
today’s employees.
HUMAN RESOURCES
MANAGEMENT
9. Current Issues in Human Resources
Management
● Explain how managers can manage
downsizing
● Discuss how managers can manage
workforce diversity
● Explain what sexual harassment is and
what managers need to know about it
● Describe how organizations are dealing
with work-life balances
HUMAN RESOURCES
MANAGEMENT
The Importance of HRM
1. HRM is a necessary part of the organizing
function of management
- Selecting, training, & evaluating the
workforce
2. It is an important strategic tool
- HRM helps establish an organization’s
sustainable competitive advantage.
3. It adds value to the firm
- High performance work practices lead to
both high individual and high organizational
performance.
HUMAN RESOURCES
MANAGEMENT
Examples of High-Performance Work
Practices
HUMAN RESOURCES
MANAGEMENT
HRM for Non-HR Managers:
🡪 Small vs. large organizations
● Large organizations have HR function
● Smaller organizations may rely on
managers to handle HR issues.
? All managers need to be aware of federal
and provincial legislation and company
policies
● Minimum wage law
● Benefits mandatory provided by law to
workers such as SSS, Pag-ibig, Philhealth,
vacation leaves, sick leaves, etc.
HUMAN RESOURCES
MANAGEMENT
The HRM Process:
HUMAN RESOURCES
MANAGEMENT
Functions of the HRM Process:
1. Identifying and selecting competent
employees
2. Providing employees with up-to-date
knowledge and skills to do their jobs
3. Ensuring that the organization retains
competent and high-performing
employees
HUMAN RESOURCES
MANAGEMENT
Environmental Factors Affecting
HRM:
1. Labor Union
- An organization that represents workers
and seeks to protect their interests through
collective bargaining.
Collective Bargaining Agreement:
- A contractual agreement between an
organization and a union, covering wage,
hours, and working conditions of workers.
HUMAN RESOURCES
MANAGEMENT
2. Legislation Affecting Workplace Conditions
● Canada Labor Code/Philippine Labor
Code
● Occupational Health and Safety Act
● Workplace Hazardous Materials
Information System (WHMIS)
● Employment standards legislation
3. Antidiscrimination Legislation
● The Charter of Rights and Freedoms and
the Canadian Human Rights Act
● The Employment Equity Act
● Different laws prohibiting discrimination
against gender, age, disability, race, etc.
HUMAN RESOURCES
MANAGEMENT
4. Economy’s Effect on the HRM Process
● lifetime employment is long gone and
corporate pension plans are crumbling
● the jobless rate will continue to increase
in most European countries
● reduced work hours, which affected
employees’ pay and their skill upgrades

● temporary or contract positions, rather

than full -time jobs with benefits
HUMAN RESOURCES
MANAGEMENT
5. Demographic trends
? Four generations working side-by-side in
the workplace:
● the oldest, most experienced workers
(those born before 1946) make up 6
percent of the workforce
● the baby boomers (those born between
1946 and 1964) make up 41.5 percent of the
workforce
● Gen Xers (those born 1965 to 1977)
make up almost 29 percent of the
workforce
● Gen Yers (those born 1978 to 1994)
make up almost 24 percent of the
THE HRM PROCESS
I. Human Resource (HR) Planning:
- the process by which managers ensure that
they have the right number and kinds of
people in the right places, and at the right
times, who are capable of effectively
and efficiently performing their tasks.
- helps avoid sudden talent shortages &
surpluses.
Steps in HR Planning:
1. Assessing current human resources
2. Assessing future needs for human
resources and developing a program to
meet those future needs
THE HRM PROCESS

1. Human Resources Inventory:

- A review of the current makeup of the
organization’s resources/employees
status which usually includes information
on employees such as name, education,
training, prior employment, languages
spoken, special capabilities, and
specialized skills.
HR Management Information Systems
(HRMIS):
- A database that tracks employees’
information for policy and strategic needs.
THE HRM PROCESS

Job Analysis:
- an assessment that defines a job and the
behaviors necessary to perform the job;
knowledge, skills, and abilities
- requires conducting interviews, engaging in
direct observation, and collecting the self-
reports of employees and their
managers
THE HRM PROCESS

Job Description:
- a written statement of what the jobholder
does, how it is done, and why it is done.
Job Specification:
- a written statement of the minimum
qualifications that a person must possess to
perform a given job successfully.
THE HRM PROCESS

2. Meeting Future HR Needs

- future HR needs are determined by the
organization’s mission, goals, and
strategies.
- demand for employees results from
demand for the organization’s products or
services.
- after assessing both current capabilities
and future needs, managers can
estimate areas in which the organization
will be understaffed or overstaffed.
THE HRM PROCESS
Meeting Future HR Needs:
THE HRM PROCESS
II. Staffing the Organization:
🡪 Recruitment
- the process of locating, identifying, &
attracting capable applicants to an
organization
● E-recruiting
- recruitment of employees through the
Internet, organizational web sites, online
recruiters.
🡪 Decruitment
- the process of reducing a surplus of
employees in the workforce of an
organization (includes firing, layoffs,
attrition, transfers, reduced workweeks,
THE HRM PROCESS
Major Sources of Potential Job
Candidates:
THE HRM PROCESS
Decruitment Options:
THE HRM PROCESS
III. Selection Process
- is the process of screening job applicants to
ensure that the most appropriate
candidates are hired.
Selection:
- is an exercise in predicting which
applicants, if hired, will be (or will not be)
successful in performing well on the criteria
the organization uses to evaluate
performance
Selection errors:
● Reject errors for potentially successful
applicants
● Accept errors for ultimately poor
THE HRM PROCESS
Selection Decision Outcomes:
THE HRM PROCESS
Validity & Reliability:
🡪 Validity (of Prediction)
● A proven relationship between the
selection device used and some relevant
criterion for successful performance in
an organization.
- High test scores equate to high job
performance; low scores to poor performance
🡪 Reliability (of Prediction)
● The degree of consistency with which a
selection device measures the
same thing
- Individual test scores obtained with a
selection device are consistent over
multiple testing instances
THE HRM PROCESS

Types of Selection Devices:

● Application Forms
● Written Tests
● Performance Simulations
● Interviews
● Background Investigations
● Physical Examinations
THE HRM PROCESS
THE HRM PROCESS

Written Tests:
🡪 Types of Tests
● Intelligence: how smart are you?
● Aptitude: can you learn to do it?
● Ability: can you do it?
● Interest: do you want to do it?
THE HRM PROCESS

Performance Simulation Tests:

- Testing an applicant’s ability to perform
actual job behaviors, use required skills,
and demonstrate specific
knowledge of the job.
● Work sampling
Requiring applicants to actually perform
a task or set of tasks that are central to
successful job performance
● Assessment centres
Dedicated facilities in which job
candidates undergo a series of performance
simulation tests to evaluate their managerial
potential
THE HRM PROCESS

Situational Interviews:
- Interviews in which candidates are
evaluated on how well they handle role
play in mock scenarios
Background Investigations:
- Verification of application data
- Reference checks
● Lack validity because self-selection of
references ensures only positive
outcomes
Physical Examinations:
- Useful for physical requirements
THE HRM PROCESS

Realistic Job Interviews:

- The process of relating to an applicant both
the positive and the negative aspects of
the job.
●Encourages mismatched applicants to
withdraw
● Aligns successful applicants’
expectations with actual job conditions,
reducing turnover
THE HRM PROCESS
Tips for Managers:
Some Suggestions for Interviewing
● Structure a fixed set of questions for all applicants.
● Have detailed information about the job for which
applicants are interviewing.
● Minimize any prior knowledge of applicants’
background, experience, interests, test scores, or
other characteristics.
● Ask behavioural questions that require applicants to
give detailed accounts of actual job behaviours.
● Use a standardized evaluation form.
● Take notes during the interview.
● Avoid short interviews that encourage premature
decision making.
THE HRM PROCESS
Questions Not to Ask Job Candidates:
● About name changes; maiden name
● For birth certificate, baptismal records, or about age in
general
● About pregnancy, child bearing plans, or child care
arrangements
● Whether applicant is single, married, divorced, engaged,
separated, widowed, or living common-law
● About birthplace, nationality of ancestors, spouse or other
relatives
● Whether born in Canada
● For photo to be attached to application or sent to interviewer
before interview
● About religious affiliation, church membership, frequency of
church attendance
● Whether the applicant drinks or uses drugs
● Whether the applicant has ever been convicted
● Whether the applicant has ever been arrested
● Whether the applicant has a criminal record
● About the applicant’s sexual orientation
THE HRM PROCESS
Quality of Selection Devices as Predictors
THE HRM PROCESS
IV. Orientation
● Work-unit orientation
- Familiarizes new employee with work-
unit goals
- Clarifies how his or her job contributes
to unit goals
- Introduces employee to his or her co-
workers
● Organization orientation
- Informs new employee about the
organization’s objectives, history, philosophy,
procedures, and rules
- Includes a tour of the entire facility
THE HRM PROCESS
IV. Orientation
- the introduction of a new employee into
his/her job and the organization.
Two types of orientation:
● Work-unit orientation
- Familiarizes new employee with work-unit goals
- Clarifies how his or her job contributes to unit
goals
- Introduces employee to his or her co-workers
● Organization orientation
- Informs new employee about the organization’s
objectives, history, philosophy, procedures,
and rules
- Includes a tour of the entire facility
THE HRM PROCESS
V. Training
- An organized activity aimed at imparting
information and/or instructions to improve
the recipient's performance or to help him
or her attain a required level of knowledge
or skill.
Types of Training:
● Interpersonal skills ● Technical skills
● Business skills ● Mandatory skills
● Performance management skills
● Problem solving/decision making skills
● Personal skills
THE HRM PROCESS
Employee Training Methods
THE HRM PROCESS
Occupations of Employees Who Receive
Training
THE HRM PROCESS
How Employees Train Themselves
THE HRM PROCESS
VI. Performance Management
System:
- A process establishing performance
standards and appraising employee
performance in order to arrive at objective
HR decisions and to provide documentation
in support of those decisions.
THE HRM PROCESS
Performance Appraisal Methods:
● Written Essays
● Critical Incidents
● Graphic Rating Scales
● Behaviourally Anchored Rating Scales
(BARS)
● Multi-person Comparisons
● Management by Objectives (MBO)
● 360-Degree Feedback
THE HRM PROCESS
Advantages and Disadvantages of
Performance Appraisal Methods
THE HRM PROCESS
VII. Compensation & Benefits
● Benefits of a Fair, Effective, and
Appropriate Compensation System
- helps attract and retain high-performance
employees
- impacts on the strategic performance of
the firm
● Types of Compensation
- Base wage or salary
- Wage and salary add-ons
- Incentive payments
- Skill-based pay
THE HRM PROCESS

● Base wage or salary

- is a fixed amount of money paid to an
employee by an employer in return for work
performed and does not include benefits,
bonuses or any other potential compensation.
● Wage & salary add-ons
- includes the employee’s base wage or
salary plus overtime pay, night shift
differentials, working on weekends/holidays,
on call pay, etc.
THE HRM PROCESS

● Incentive payment
- is a monetary gift provided to an
employee based on performance, which is
thought of as one way to entice the employee
to continue delivering positive results. It may
come in the form of bonus, profit sharing or
commission.
● Skill-based pay
- rewards employees for the job skills and
competencies they can demonstrate. Under
this type of pay system, an employee’s job
title doesn’t define his/her pay category, skills
do.
THE HRM PROCESS

● Variable pay
- a pay system in which an individual’s
compensation is contingent on performance.
It is something that is a part of an employee’s
salary which depends on the employee’s and
companies performance.
THE HRM PROCESS
Factors that Influence Compensation &
Benefits:
THE HRM PROCESS
VIII. Career Development
● What is a career?
- a sequence of positions held by a person
during his or her lifetime.
● Career Development
- Provides for information, assessment, &
training
- Helps attract and retain highly talented
people
● Boundaryless Career
- A career in which individuals, not
organizations, define career progression,
organizational loyalty, important skills, and
marketplace value.
THE HRM PROCESS
Top Ten (10) Job Factors for College
Graduates:
1. Enjoying what they do
2. Opportunity to use skills and abilities
3. Opportunity for personal development
4. Feeling what they do matters
5. Benefits
6. Recognition for good performance
7. Friendly co-workers
8. Job location
9. Lots of money
10. Working on teams
THE HRM PROCESS
CONTEMPORARY ISSUES IN HRM
Contemporary Issues in Managing
Human Resources:
1. Managing downsizing
- is the planned elimination of jobs in an
organization which can be due to
the need to cut costs, declining market
share, overaggressive
organizational growth.
● Provide open and honest communication
● Reassure survivors
CONTEMPORARY ISSUES IN HRM
2. Managing workforce diversity
- workforce diversity refers to the variety of
differences between people in an
organization. It
encompasses race, gender, ethnic group,
age, personality, cognitive style, tenure,
organizational function, education,
background, etc.
● Recruitment for diversity
● Selection without
discrimination
● Orientation and training
that is effective
CONTEMPORARY ISSUES IN HRM
3. Sexual Harassment
- defined as any unwanted action or
activity of a sexual nature that explicitly
or implicitly affects an individual’s
employment, performance, or work
environment.
- the Equal Employment Opportunity
Commission (EEOC) defines sexual
harassment as the behaviour marked by
sexually aggressive remarks, unwanted
touching and sexual advances,
requests for sexual favours, or other
verbal or physical conduct of a sexual
nature, which can occur between members of
the opposite sex or of the same
CONTEMPORARY ISSUES IN HRM
● Educate all employees on sexual
harassment matters
● The key is being attuned to what makes
fellow
employees uncomfortable—and if you
don’t know, then you should ask.
Workplace Romances:
● Educate employees about the potential
for sexual harassment when coworkers
stop dating
● Discourage workplace romances and
require supervisors to report any such
relationships to the HR department
CONTEMPORARY ISSUES IN HRM
4. Work-Life Balance
- Employees have personal lives that they
don’t leave behind when they come to work.
- Organizations have become more attuned
to their employees by offering family-
friendly benefits such as:
● On-site child care
● Summer day camps
● Flextime
● Job sharing
● Leave for personal matters
● Flexible job hours