Managing human resources is often times fraught 2. Book Two - Human Resources Development with legal implications. Program One cannot just ignore the protection of the rights 3. Book Three - Conditions of Employment of labor that are enshrined in our Constitution and 4. Book Four - Health, Safety, and Social Welfare statutes principally the Labor Code Benefits Ignoring the legal aspects of human resources can 5. Book Five - Labor Relations result in legal suits that could cost a lot of money 6. Book Six - Post-Employment to your company and to your company's reputation Functions of Human Resource It is important for all managers to have some basic Management: knowledge of pertinent provisions of the 1. Recruitment, selection and placement Constitution and labor and social legislations. 2. Training and Development The Constitutional and statutory provisions 3. Performance Evaluation and Management protecting labor are derived from the "Police 4. Promotions Power" of the state the right of the state to regulate 5. Redundancy labor relations for the general welfare and to 6. Industrial and Employee Relations maintain industrial peace. 7. Record Keeping of all Personal Data lt is also based on social justice - to ensure 8. Compensation, Retirement, Incentive Programs protection of the weaker social partner - labor. 9. Confidential advice to internal 'customers' in The Constitutional Basis 9. Relation to problems at work o The State affirms labor as a primary socio- 10. Career development List of critical skills and attributes for HR economic force. It shall protect the right of workers practitioners: and promote their welfare. (Article I1, Section 18) 1. Human relations or Interpersonal o Along this line, the Constitution protects the right of 2. Multitasking employees to form unions, association or societies 3. Organization for purposes not contrary to law. 4. Ability for dual focus o Also pursuant to this Declaration of Principles, 5. Trust and confidence Article XII1, Section 3 expands its labor policy by 6. Dedication to continuous improvement providing that: 7. Negotiating and problem-solving o The State shall afford full protection to labor, local 8. Team-oriented and overseas, organized and unorganized, and 9. Honesty and integrity promote full employment and equality of o Human resource planning is the critical initial step employment opportunities for all. in getting the right people in the right place at the o It shall guarantee the rights of all workers to self- right time. organization, collective bargaining and o It links HR management to the strategic plan of the negotiations, and peaceful concerted activities, organization. including the right to strike in accordance with law. o A good human resource plan will allow you to They shall be entitled to security of tenure, make management decisions to support the future humane conditions of work, and a living wage. direction of the organization. They shall also participate in policy and decision- o It is also important from the budgetary point of making processes affecting their rights and view so that you can factor the costs of benefits as may be provided by law. recruitment, training, management, restructuring, o The State shall promote the principle of shared rightsizing, among others, into your departmental responsibility between workers and employers and budget. the preferential use of voluntary modes in settling o Effective HR planning will also save the disputes, including conciliation, and shall enforce organization unnecessary costs. their mutual compliance therewith to foster o The firm cannot afford to be overstaffed nor can I industrial peace. o The State shall regulate the relations between afford to be understaffed. o Without accurate human resource planning, the workers and employers, recognizing the right of labor to its just share in the fruits of production and organization may not be in a position to compete in the right of enterprises to reasonable returns to the market place. investments, and to expansion and growth. o It is important to anticipate future staffing needs by The Labor Code - 6 Major Parts forecasting the supply and demand of the organization's human resources. Human Resource Planning o In times of inflation, when prices of food and other o It is the process by which management ensures consumer products are high, there is the tendency that it has the right personnel who are capable of for the government to have a new wage increase completing those tasks that help the organization order. reach its objectives. On the supply side, analyzing the internal o It is development of strategies for matching the workforce will answer these questions: size and skills of the workforce to organizational o How many staff do we have? needs. o How are they distributed? The process involves: o What is the age profile? 1. Carrying out skills analysis of the existing workforce o How many will leave by resignation or retirement in 2. Carrying out manpower forecasting each of the next five years? 3. Taking action to ensure that supply meets demand o What are the present skills of the present 4. Development of training and retraining strategies workforce? The plan will provide answers to the following o What new skills will be required? questions: Forecasting How many people will be needed for the o It is not an exact science. organization to meet its objectives? o It can be subject to certain uncertainties and What jobs will these people need to fill? inaccuracies. What knowledge, skills, and abilities will new hires 2 Techniques in Forecasting: be required to have? 1. Statistical Method What new skills will be required of the current work 2. Judgmental or qualitative approach force? o Statistical method is excellent in extrapolating Can the new workers be transferred or promoted labor demand based on historical trends. from within the firm or do they need to be hired o Under normal conditions, the method gives more from outside? What type of training is required for workers to precise predictions than judgmental. acquire the knowledge, skills, and abilities that are o The other technique, judgmental or qualitative needed? approach avails of the opinion of department What type of training is required for workers to managers on their future staffing needs. acquire the knowledge, skills and abilities that are o They are supposed to be experts and they should needed? know how many people they need. What type of compensation plan is required to o Caution must be taken with this approach because support this talent? some managers are prone to be "empire builders" How will the process alter the career plans of o They tend to overstaff their departments under the existing employees or potential candidates? mistaken belief that quantity assures productivity. NOTE: o In this case, Delphi technique could be applied. o According to experts, there is no single approach Delphi Technique in human resource planning. o Experts, internal and external, take part in a round o It varies from organization to organization, robin-type decision making sessions until they depending upon their style, positioning in the arrive at a consensus for the human resource market place, market demands, the industry they needs. are in and the competitive environment. Internal Supply Considerations o But if the plan focuses in addressing the given o Turnover rate is a very important factor to be questions, it meets the basic objectives of the considered in your internal manpower supply. planning process. 2 Kinds of Turnover: Human Resource Planning Process 1. Resignation a. Analyzing 2. Dismissal b. Forecasting Resignation can be due to: c. Planning o Accepting a job elsewhere. d. Implementing o Poor health Analyzing o Putting one's own business, taking up further o Analyze the environmental factors that impact on studies or raising a family your firm's labor demand. o Migrating abroad o In time of economic recession, for example, there o Accepting a voluntary retrenchment might be a need to downsize your work force. o Relocating to another place the exercise of such authority is not merely Dismissal can be due to: routinary or clerical in nature but requires the use o Misconduct of independent judgment. o Forcible resignation due to poor performance or 3. Rank and File Employee other reasons by paying separation pay. is one not falling under any of the preceding o Authorized causes under the law such as definitions of managerial or supervisory employee. retrenchment due to losses or to avoid losses, Types of Employees in terms of Tenure automation, retirement, or sickness that will The law protects employees in their security of incapacitate the employee for more than 6 months tenure. as certified to by a competent public physician. Regardless of their term of employment, Note: employees can only be terminated for cause or For purposes of "exit interview", to determine and authorized causes as provided by the Labor Code tally real causes of resignations for remedial except when the employment is for a fixed period purposes, employees who were dismissed are not and the term has already ended subject to exit interview. There are five (5) types of employment The External Labor Supply 1. Regular o Unemployment in the Philippines is high even Regardless of the written or oral agreement, "an under normal economic situation. employment shall be deemed to be regular where o There is therefore an abundance of manpower in the employee has been engaged to perform the labor market. activities which are usually necessary or desirable o However, many are eager to be employed, only a in the usual business or trade of the employer; handful are chosen for lack of the necessary skills 2. Project and competencies required of the job. "Where the employment has been fixed for a Employing Temporary Workers specific project or undertaking the completion or There are several legal constraints in the hiring of termination of which has been determined at the temporary workers. time of engagement of the employee or where the Caution must be applied in availing of temporary work or services to be performed is seasonal in workers as this is always subject to abuse by nature and the employment is for the duration of some employers. the season. Perhaps an ideal ratio should be considered that 3. Casual temporary workers must not exceed that of regular "An employment shall be deemed casual if it is not employees. covered by the preceding paragraph: Provided Classification of Temporary Workers: that, any employee who has rendered at least one Casuals year service, whether such service is continuous Project employees or broken, shall be considered a regular employee Employees for a fixed period or term and his employment shall continue while such Seasonal employees activity exists." Kinds of Employees 4. Probationary 1. Employer - includes any person acting in the As defined in Art.281 which provides "Probationary interest of the employer directly or indirectly. employment shall not exceed six (6) months from 2. Employee - includes any person in the employ of an the date the employee started working, unless it is employer. covered by an apprenticeship agreement The two definitions seem to give some confusion stipulating a longer period" because a person can be an employee but at the His services may be terminated for a just cause or same time can be an employer if he acts "in the when he fails to qualify as a regular employee in interest of the employer directly or indirectly" accordance with reasonable standards made Specific Classifications of Employees known by the employer to the employee at the 1. Managerial Employee time of his engagement. is one who is vested with powers or prerogatives An employee who is allowed to work after a to lay down and execute management policies probationary period shall be considered a regular and/or hire, transfer, suspend, layoff, recal1, employee. discharge, assign, or discipline employees. 5. Fixed Contract Employee as Settled in 2. Supervisory Employee Jurisprudence is one who, in the interest of the employer, effectively recommends such managerial actions if An employment with a fixed term, where there's a employees and their dependents, in the event of day certain agreed upon by the parties for the work-connected disability or death, may promptly commencement and termination of their secure adequate income benefit, medical or employment relationship, a day certain being related benefits. understood to be that which must necessarily A State Insurance Fund is created out of monthly come, although it may not be known when" contributions by the employer for the employee. Health, Safety and Social Welfare Provisions The agency in charge of the administration of this It is the responsibility of the Employer to provide fund is the Employees Compensation Commission safe and healthy working conditions in the which is composed of five ex-oficio members, workplace. namely: Articles 156 to 161 of the Labor Code require 1. Secretary of Labor and Employment employers to provide medical and dental services. 2. GSIS General Manager Here are some important requirements 3. SSS Administrator 1. To keep the employer's establishment such first-aid 4. Chairman of the Philippine Medical Care medicines and equipment as the nature and conditions Commission of work may require, in accordance with such 5. Executive Director of the ECC secretariat regulations at the DOLE shall provide. Employer shall AND TWO appointee members, one of whom shall be take steps in training of sufficient number of appointed by the President of the Philippines for a employees in first-aid treatment. represent the employees and the other, the employers 2. To have services of a full-time registered nurse to term of 6 years. when number of employees exceeds 50 but not more In case the employee's injury or death was due to than 200. When employer does not maintain failure of the employer to comply with any law, or hazardous workplaces, he can get the services of a to install and maintain safety devices, or take other graduate of first-aid where no registered nurse is precautions for the prevention of injury, said available. employer shall pay to the State Insurance Fund a 3. When the number of employees exceeds 200 but penalty of 25% of the lump sum equivalent of the not more than 300, the employer shall get the services income benefit payable by the system to the of a full-time registered nurse, a part-time physician employee. and dentist and an emergency clinic. Labor Relations 4. When the number of employees exceeds 300, the Labor-management relations is central to the employer shall obtain the services of a full-time provisions of the Labor Code. physician and dentist and a full-time registered nurse The aspect or quality that holds together the social as well as a dental clinic and an infirmary or partners, labor and capital in the attainment of their emergency hospital with one bed capacity for every mutual goal - just and equitable (reasonable) pay 100 employees. and treatment and fair return on investments. Note: lt is the interaction between a company's upper The requirement for an emergency hospital or management and the rest of its employees. dental clinic shall not be required where there is a lt refers to the relationship between employers and hospital or dental clinic which is accessible from employees in industry, and the political decisions the employers' establishment provided the and laws that affect it. employer makes arrangement for the reservation Sources of Conflicts in Labor Relations: therein of necessary beds and dental facilities for 1. Manner by which hierarchical demands are made or the use of the employees. executed; 5. The physicians, nurses, and dentists employed shall 2. Clash between Management Prerogatives and have the necessary training in industrial medicine and Labor Rights; occupational safety and health. 3. Just share in the fruits of production; 6. It shall be the duty of the employer to provide all 4. Fair return in investments, expansion and growth. necessary assistance to ensure the adequate and The Law on Terminations immediate medical and dental attendance and The security of tenure of employees is guaranteed treatment to an injured or sick employee in case of by the Constitution and by law. emergency. Employers should not be trigger happy in Employee Compensation and State Insurance dismissing employees. Fund What is at stake is not only the employee's The State shall promote and develop a tax- livelihood but the ability to support his family in exempt employee compensation program whereby terms of food, clothing, shelter, education, and 1. When one suffers a disease wherein his continued health. employment is prohibited by law or prejudicial to his The state always regards workers with health or to the health of his co-employees provided compassion as unemployment can bring untold there is certification by a competent public health hardships and sorrow upon the worker and his authority that the disease is of such nature or stage dependents. that it can not be cured within a period of six months An employee unjustly dismissed from work shall even with proper medical treatment. be entitled to re instatement without loss of The terminated employee is entitled to one half seniority rights and other privileges and his full (1/2) month pay per year of service. A fraction of at back wages inclusive of allowances, or other least six (6) months shall be considered as one (1) benefits or their monetary equivalent computed whole year. from the time his compensation was withheld up to 2. The Retirement Pay Law (R.A. 7641), amending time of reinstatement. Art. 287 of the Labor Code, authorizes an employer The law allows terminations due to Just Causes or to terminate services of employees upon reaching the Authorized Causes. age of 60 but not beyond 65 years of age provided he Just Causes receives retirement pay - if the company has no Art.282 of the Labor Code enumerates the retirement plan of its own - equivalent to 22 days pay following just causes of termination: per year of service. 1. Serious misconduct or willful disobedience by the If the company has its own retirement plan and its employee of the lawful orders of his employer or benefits are below that required by law, it has to representative in connection with his work; pay for the difference. The 22 days is total of 15 2. Gross and habitual neglect by the employee of his days retirement pay plus 1/12 of 13th month pay duties; and cash equivalent of 5 days incentive leave pay 3. Fraud or willful breach by the employee of the trust per year of service reposed on him by his employer or duly authorized Summary of the Salient Points of the Labor Code representative; Primacy of free collective bargaining and 4. Commission of a crime or offense by the employee Free trade unionism for promotion of negotiations against the person of his employer or any immediate social justice member of his family or his duly authorized Free and voluntary organization of strong and representative; and united labor movement 5. Other causes analogous to the foregoing. Adequate machinery for expeditious settlement of Can an employer preventively suspend an erring disputes employee with pending investigation? Yes, if there Workers' participation in decision and policy- is imminent danger to life of the employer or his making processes affecting their rights, duties and duty authorized representative or his property. welfare Authorized Causes Dynamic and just industrial peace Art. 283 of the Labor Code, employers can Encourage free trade unionism and free collective terminate employees due to authorized causes bargaining under the following conditions: Right to engage in concerted activities including 1. Installation of labor saving devices or redundancy the right to strike provided the terminated employee is given one (1) Security of tenure- cannot be terminated except for month pay for every year of service. just or authorized causes 2. Retrenchment to prevent losses or closing or All doubts in implementation and interpretation of cessation of operation of the establishment or the Labor Code provisions including the undertaking unless the closing is for the purpose of implementing rules shall be resolved in favour of circumventing the law, provided, that the employee to labor. be retrenched is given one-half (1/2) month pay per Work Flow in Organizations year of service. Informed decisions about jobs take place in the A fraction of at least six months service is context of the organization's overall work flow. considered as one whole year for purposes of Through the process of work flow design, managers analyze the tasks needed to produce a computing the separation pay. product or service. Other Authorized Causes With this information, they assign these tasks to Art. 284 of the Labor Code allows disease as a specific jobs and positions. ground for termination under the following Work Flow Design Conditions: The process of analyzing the tasks necessary for the Preparation of a job description begins with production of a product or service gathering information about the job from people Job already performing the task, the position’s A set of related duties. supervisor, or the managers creating the position. Position Based on that information, the writer of the job The set of duties (job) performed by a particular description identities the essential duties of the job, person. including mental and physical tasks and any Work Flow Analysis methods and resources required. Before designing its work flow, the organization's Job Specification planners need to analyze what work needs to be A list of the knowledge, skills, abilities, and other done. characteristics (KSAOs) that an individual must For each type of work, such as producing a have to perform a particular job. product line or providing a support service Where as the job description focuses on the (accounting, legal support, and so on), the analysis activities involved in carrying out a job, a job identifies the output of the process, the activities specification looks at the qualities or requirements involved, and the three categories of inputs the person performing the job must possess. (materials and information, equipment, and human Knowledge refers to factual or procedural resources). information that is necessary for successfully Workflow Analysis is the process of breaking down performing a task. the performance of a workflow and examines For example, this course is providing you with trends for improvement. knowledge in how to manage human resources. By looking at a workflow at a granular task level, A skill is an individual's level of proficiency at business users can tweak processes for optimal performing a particular task-that is, the capability efficiency and workplace productivity. to perform it well. Workflow analysis often reveals redundant tasks, With knowledge and experience, you could acquire bottlenecks, and opportunities for more skill in the task of preparing job specifications. automation. Ability, in contrast to skill, refers to a more general Outputs are the products of any work unit, say, enduring capability that an individual possesses. department or team. A person might have the ability to cooperate with Outputs may be tangible, as in the case of a others or to write clearly and precisely. restaurant meal or finished part. Finally, other characteristics might be personality They may be intangible, such as building security traits such as someone’s persistence or motivation or an answered question about employee benefits. to achieve. In identifying the outputs of particular work units, Some jobs also have legal requirements, such as work flow analysis considers both quantity and licensing or certification. quality. In contrast to tasks, duties, and responsibilities, Thinking in terms of these outputs gives KSAOs are characteristics of people and are not HRM professionals a clearer view of how directly observable. to increase each work unit's effectiveness. They are observable only when individuals are Developing a work flow analysis carrying out the task, duties and responsibilities Raw inputs (TDRs) of the job-and afterward, if they can show Equipment –activity – output the product of their labor. Human Resources Thus, if someone applied for a job as a news Job Analysis photographer, you could not simply look at the The process of getting detailed information about individual to determine whether he or she can spot jobs. and take effective photographs. Analyzing jobs and understanding what is required However, you could draw conclusions later about to carry out a job provide essential knowledge for the person's skills by looking at examples of his or staffing, training, performance appraisal, and many her photographs. other HR activities. Similarly, many employers specify educational Job Descriptions Meeting these requirements is treated as an A list of the tasks, duties, and indication that a person has some desired level of responsibilities(TDRs) that a particular job entails. knowledge and skills. An essential part of job analysis is the creation of Sources of Job Information job descriptions. Information for analyzing an existing job often TDRS are observable actions. comes from incumbents, that is, people who For example, a news photographer's job requires currently hold that position in the organization. the jobholder to use a camera to take They are a logical source of information because photographs. they are most acquainted with the details of the Whenever the organization creates a new job. It job. needs a new job. Description. Incumbents should be able to provide very accurate information. A drawback of relying solely on incumbents' In fact, the ratings of job incumbents tend to be information is that they may have an incentive to less reliable than ratings by supervisors and exaggerate what they do in order to appear more trained analysts. valuable to the organization. Also, the descriptions in the PAQ reports are Information from incumbents should therefore be rather abstract, so the reports may not be useful supplemented with information from observers, for writing jobs redesigning jobs. such as supervisors, who look for a match Fleishman Job Analysis System between what incumbents are doing and what they Job analysis technique that asks subject-matter are supposed to do. experts to evaluate a job in terms of the abilities Research suggests that supervisors may provide required to perform the job. the most accurate estimates of the importance of The survey is based on 52 categories of abilities, job duties, while incumbents may be more ranging from written comprehension to deductive accurate in reporting information about the actual reasoning, manual dexterity, stamina, and time spent performing job tasks and safety-related originality. risk factors. The person completing the survey indicates which For analyzing skill levels, the best source may be point on the scale represents the level of the ability external job analysts who have more experience required for performing the job being analyzed. rating a wide range of jobs. For example, consider the ability written Position Analysis Questionnaire (PAQ) comprehension." Written comprehension includes A standardized job analysis questionnaire containing understanding written English words, sentences, 194 questions about work behaviors, work conditions, and paragraphs. and job characteristics that apply to a wide variety of It is different from oral comprehension (listen and jobs. understand spoken English words and sentences) The questionnaire organizes these items and oral expression (speak English words and into six sections concerning different aspects of sentences so others can understand). the job: The phrase for the highest point on the seven- 1. Information input-Where and how a worker gets point scale is "requires understanding of complex information needed to perform the job. or detailed information in writing containing 2. Mental processes-The reasoning, decision - unusual words and phrases and involves fine making, planning, and information processing activities distinctions in meaning among words." involved in performing the job. The phrase for the lowest point on the scale is 3. Work output-The physical activities, tools, and "requires written understanding of short, simple devices used by the worker to perform the job. written information containing common words and 4. Relationships with other people - The relationship phrases. witg other people required in performing the job. When the survey has been completed in all 52 5. Job context-The physical and social contexts categories, the results provide a picture of the where the work is performed. ability requirements of a job. 6. Other characteristics-The activities, conditions, Such information is especially useful for employee and characteristics other than those previously selection, training, and career development. described that are relevant to the job. Analyzing Teamwork The person analyzing a job determines whether Work design increasingly relies on teams to each item on the questionnaire applies to the job accomplish an organization's objectives, so HR being analyzed. managers often must identify the best ways to The analyst rates each item on six Scales: extent handle jobs that are highly interdependent. of use, amount of time, importance to the job, Just as there are standardized instruments for possibility of occurrence, applicability, and special assessing the nature of a job, there are standard code (special rating scales used with a particular ways to measure the nature of teams. item) Three dimensions are most critical: The PAQ headquarters uses a computer to score 1 Skill differentiation-The degree to which team the questionnaire and generate a report that members have specialized knowledge or functional describes the scores on the job dimensions. capacities. Using the PAQ provides an organization with 2 Authority differentiation-The allocation of decision- information that helps in comparing jobs, even making authority among individuals, subgroups, and when they are dissimilar. the team as a whole. The PAQ also has the advantage that it considers 3. Temporal (time) stability-The length of time over the whole work process, from inputs through which team members must work together. outputs. Importance of Job Analysis However, the person who fills out the Work redesign-Often an organization seeks to questionnaire must have college-level reading redesign work to make it more efficient or to improve skills, and the PAQ is meant to be completed only quality. by job analysts trained in this method. The redesign requires detailed information about the existing job(s). In addition, preparing the redesign is similar to 3-Exceeds Expectations: Performs complex and analyzing a job that does not yet exist. multiple tasks; can coach, teach, or lead others. Human resource planning-As planners analyze PROJECT MANAGER COMPETENCIES human resource needs and how to meet those needs, Financial & Quantitative Skills they must have accurate information about the levels Ability to analyze financial information accurately and of skill required in various jobs, so that they can tell set financial goals that have positive impact on what kinds of human resources will be needed. company's bottom line and fiscal objectives. Selection-To identify the most qualified applicants for Competency various positions, decision makers need to know what An area of personal capability that enables employees tasks the individuals must perform, as well as the to perform their work successfully. necessary knowledge, skills, and abilities. A competency model identifies and describes all the Training-Almost every employee hired by an competencies required for success in a particular organization will require training. Any training program occupation or set of jobs. requires knowledge of the tasks performed in a job so Organizations may create competency models for that the training is related to the necessary knowledge occupational groups, levels of the organization, or and skills. even the entire organization. Performance appraisal-An accurate performance appraisal requires information about how well each employee is performing in order to reward employees who perform well and to improve their performance if it is below standard. Job analysis helps in identifying the behaviors and the results associated with efective performance. Career planning-Matching an individual's skills and aspirations with career opportunities requires that those in charge of career planning know the skill requirements of the various jobs. This allows them to guide individuals into jobs in which they will succeed and be satisfied. Job evaluation-The process of job evaluation involves assessing the relative dollar value of each job to the organization in order to set up fair pay structures. If employees do not believe pay structures are fair, they will become dissatisfied and may quit, or they will not see much benefit in striving for promotions. To put dollar values on jobs, it is necessary to get information about different jobs and compare them. COMPETENCY MODELS Example of Competencies and a Competency Model Project Manager Competencies Organizational & Planning Skills Ability to establish priorities on projects and schedule activities to achieve results. PROFICIENCY RATINGS 1-Below Expectations: Unable to perform basic tasks. 2-Meets Expectations: Understands basic principles and performs routine tasks with reliable results; works with minimal supervision or assistance. 3-Exceeds Expectations: Performs complex and multiple tasks; can coach, teach, or lead others. PROJECT MANAGER COMPETENCIES Communications Ability to build credibility and trust through open and direct communications with internal and external customer PROFICIENCY RATINGS 1-Below Expectations: Unable to perform basic tasks. 2-Meets Expectations: Understands basic principles and performs routine tasks with reliable results; works with minimal supervision or assistance