Chapter 1: The Development of

Human Resources
PREPARED BY: JESSICA T. FABA-AN
INSTRUCTOR
 Objectives
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.
 Three conditions to exist
1. Top management must be convinced that personnel management is
needed in its business operations;
2. Qualified personnel administrators must be available;
3. Personnel administrators must demonstrate their capacity to
contribute to the company’s objectives and goals.
Personnel Management Association of the Philippines (PMAP) is a nationwide organization of
all the personnel managers and human resource practitioners in the country which was established
to uphold the professional to the fullest.
Among the activities of PMAP are:
1. Training and developing personnel administrators through seminars, lectures, workshops,
meetings, national conferences, and holding tripartite conferences pertaining to personnel
management and industrial relations;
2. Participation in public hearing to voice support of or opposition to, proposed legislation
affecting business and industry;
3. Dissemination of information to upgrade personnel management, offering technical advice
through its special committees and library facilities; and
4. Establishment of a public relations program aimed at informing the public about the nature of
personnel work.
In addition, government instrumentalities such as Department of Labor and Employment, the
Employee Compensation Commission, the Social Security System, Technical Education and Skills
Development Administration, and other government agencies usually consult with the association
before taking a stand on matters affecting employer-employee relations.
 Challenges of Human Resources
1. The challenge of the Global Community: Companies need to compete and
defend not only their local markets and customers; they must broaden their
scope to encompass global markets.
2. The stockholders challenge
3. The challenge of productivity: Human resources became more smarter workers
with the aid of computer-aided machines, internet and expert systems.
Links of high productivity are:
Human resources and capabilities;
New technology and opportunities;
Efficient work structure and company policies that allow employees and
technology interact.
 Contributing Growth Factors
1. Increasing complexity of business operations: The postwar period saw the birth of big
corporations where the volume and variety of operations and the size of the labor forces
demanded specialization in management.
2. Government regulations and labor laws promulgated in recent years: In order to safeguard
the workers’ 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. Among such laws are the Woman and Child Labor Law, the
Minimum Wage Law, the Eight-hour Labor Law, the Industrial Peace Act of the Labor Code of
the Philippines and its implementing Rules and Regulations that took effect on November ,
1974.
3. Growth of Labor Unions: the passage of the Industrial Peace Act of 1953, otherwise known as
the Magna Carta of labor, triggered the organization of labor unions and the strengthening
of the workers’ bargaining power. Collective bargaining negotiations and the administration
of union contracts may best be handled with the technical resources of a personnel
department.
4. Influx of new concepts in management
 Personnel/Human Resource Management

Personnel or Human Resource Management may be defined as 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.
 HRM a Science and Art
A science is a systematic accumulation of facts, their analysis and
interpretation and their use to arrive at a satisfactory conclusion. Personnel
management is a science because it involves the systematic gathering of data
derived from surveys, statistics, interviews and observation. It is applied
science because it utilizes scientific principles in analyzing and interpreting
data for application in the management of people at work.
Art is proficiency in the practical application of knowledge acquired through
study, experience or observations. It is considered as an art because it involves
making a sound decisions.
 Companies hire HR Manager because he can
1. Help management achieve company objectives and goals in the management of its human
resources;
2. Assist top management formulating sound policies, programs and rules and after approval,
administer them fairly and efficiently;
3. Assist line supervisors and managers in providing employees with a satisfactory work
environment and in promoting harmonious relationships with the employees and the union;
4. Make managers and supervisors aware of their full responsibilities in the management of
human resources by providing them with technical help needed to handle employee
problems;
5. Help train and develop the human resources of the company in order to equip them with the
skills and knowledge in accomplishing their jobs efficiently;
6. Help promote understanding and good relationships by opening the lines of
communication between management and employees thereby creating an atmosphere
where workers can be happy and proud to belong to the organization;
 Continuation…
7. Identify management problems that can be resolved and
opportunities that can be realized through improved effectiveness in
personnel management;
8. Assist management and supervisors in handling labor relations,
problems, utilizing his knowledge and competence on labor laws,
government regulations and court decisions on labor relations;
9. Assist the company in promoting good morale and motivation among
its human resources;
10.Assist in crisis management and organizational development.
 Problems and difficulties of the Personnel/Human resource manager
1. Common misconception about his role and functions
“Nothing more than a simple clerk”
“Power behind the throne”
1. Inadequate recognition by management of the proper role of the personnel
manager in the organization
2. In the area of labor relations
3. Jealousy of the other executives regarding the personnel manager’s duty and
authority
 The Traditional Personnel Image
Historically, personnel managers and their departments suffered from a very
low perceived position due to the following factors:
1. Disrespect for the position and those who perform it;
2. The low position in the organization;
3. Lack of expertise in performing their functions.
 Role HR in the New Millennium Organization
1. Recruitment and Employment: Interviewing, testing, recruiting and temporary labor
coordination.
2. Training and Development: Orientation of new and temporary employees, performance
management training and productivity enhancement.
3. Wage and Salary Management: Job evaluation, wage and salary survey, executive compensation.
4. Benefits Administration: Vacation and sick leaves administration, insurance, stock plans, pension
plans, retirement plans assistance programs.
5. Employee Service and Recreation: Bus service, canteens, athletics, housing and relocations.
6. Community Relations: Publications, community projects and relations.
7. Records management: Employment records, information systems, performance records.
8. Health and Safety: Training, safety inspection, dental services, drug testing
9. Strategic Management: Collaborative planning, out-sourcing manpower research, organizational
planning.
 Roles of the Personnel/Human Resource 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.
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 policy is made and
administered.
Adviser: He serve 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.
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.
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
contracts, he must understand the nature, significance, and methods of collective bargaining.
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.
Provider of Services: he provides services to all employees and helps them obtain
facilities with government agencies like SSS, Medicare, etc., which can maje
employment more satisfying.
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.
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.
Public Relations Man: His functions require him to deal wit the general public,
which includes the employees, the unions and the community
 Personal Qualities of the Personnel Manager
Can communicate effective, both orally and in writing.
Possesses an above-average intelligence
Enjoys working with people
Grasps the implications of a given situation, understands individual attitudes and
proves equal to the problems of the employees and of the employer
Aggressive, mature and capable of giving sound advice that will be in the best
interests of both the employer and the employee.
Possesses the integrity, industry and courage to earn the respect of the employees
and his employer.
Possess a pleasing personality and personal warmth and should be approachable.
 The Skills Needed by Today’s HR Professionals
A higher degree of knowledge on management practices and processes, He would need this to
collaborate with other line managers.
The HR practitioner is a service providers to other line managers. He must possess a high degree
of human and public relations.
A great knowledge of human psychology and social relations. It is a great asset to effective
coordination.
He is consultant on labor relations. A working knowledge of labor laws and regulations is of great
advantage.
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.
A community relations officer. The HR Manager develops greater linkage with government and
other stakeholders. He has to coordinate with schools and other agencies for their manpower
pooling other services.
 Benefits being offered to Personnel Managers
Car Plan or Free use of Company Transportation: This is offered so that he can
attend all his meetings on time and be able to reach all assigned destinations given to
him.
Unlimited/Limited use of gasoline and free maintenance check-up.
Company cellular phone: This is given to ensure that the manager can be contacted
anytime especially by top management so as to have a free flow of communication.
Representation Allowance/Meal Allowance: A budget is allotted for the managers
in order to maintain a good image not only for the company but also for the manager
himself.
Education Scholarship/Attending Conventions and Seminars: The managers are
offered scholarships and are given opportunity to attend conventions, seminars and
meetings for them to be updated with the latest trends in their department, learn
through knowledge, meet other colleagues and gain experience that will enable them
to develop their self esteem and confidence
 Career Advancement/Other Professional Options
College Professor: he can teach business subjects such as marketing, finance, human
resources and development.
Vice President of the Company: This is due to promotion after showing and
performing excellently.
Chief Executive Officer (CEO)
Politiciam
Entrepreneur
Businessman
In addition to all these, being in this field will definitely open a lot of doors for this
kind of job.
 Career path to Human Resource Management
1. Entry Level
A new college graduate may start as personnel assistant in a medium-sized
organization. The following skills are necessary:
Assisting in interviewing applicants;
Giving tests and scoring test results in personality inventory and other
skills test;
Assisting in employee orientation and training programs;
Record keeping
2. Supervisory Level: The promotion to higher level depends on the ability and
capability of the Personnel Assistant to acquire the skills necessary in the HR
functions. The traits and skills are:
Skills in writing job descriptions, job analyses and job evaluations;
Knowledge of employee benefit programs related to vacation and sik
leaves, pensions and other mutual benefits;
He must have acquired the skills in interviewing applicants and
counseling employees;
Skills in testing and interpreting test results and making recommendations
as to the fitness of applicants;
Job evaluation and wage administration skills and relating pay to the
differences in job requirements.
Skills in determining training needs and develop training modules and
conducting the same;
Skills in basic research related to manpower planning
3. Managerial Level: At this level the HR practitioner has acquired the above
skills. The added personnel activities include the following:
Leadership and Conceptual Ideas Visioning: HR manager is part of the
strategic management team that participates in organization strategies
planning for improved products and services as they relate to employee’s
productivity and its relation to technology enhancement programs.
Analytical of the facts as basis for Decision Making: HR manager is
saddled with the analysis of the employee’s the development program and
finding alternation solutions to improve employee’s performance level as
it relates to global competitiveness.
Compliance Administration and Control
Interpersonal Team Work
 The Changing landscape in HRM Management
The increase in the functions of management has been seen and realized by the management that
most important level for companies to gain competitive advantage both in domestic and foreign
market is through productive and committed personnel.
Top management believes that HRM practices are directly related to the companies success in
meeting competitive challenges.
The change in personnel values and orientation should match the changes in technology without
competitive advantage could hardly be possible.
To compete in the global economic arena, companies need to put greater effort towards
accelerating and retaining talented personnel.
Employees need to be trained and developed and we need to dismantle the bureaucratic
structure that limit an employee’s ability to innovate and be creative.
The politics of divisiveness in the work environment must be replaced with cooperative
undertakings that will contribute to work efficiency.