Introduction to Personnel and

Human Resource Management

Julie Bee M. Aguinaldo
Management Function & Human Resource
Management (HRM)
Management – attainment of organizational goals in
an effective and efficient manner through planning,
organizing, leading and controlling organizational
resources
- process of working with and through people in the
achievement of organizational objectives

HRM – part of management discipline, so it must be

viewed in the context of the basic management
functions
Management Function & Human Resource
Management (HRM)
Management functions to consider in HRM:
 PLANNING – involved in setting goals and objectives
of the organization and deciding on the tasks & use of
resources needed to attain them
 At the HRM level, the HRM manager or VP performs
planning function by determining in advance the HR
program that will contribute to the goals established
for the company
Management Function & Human Resource
Management (HRM)
Organizing – mobilization of the human and non
human resources of the organization to put the plans
into effect
 At the HRD manager’s level, he must be concerned with
forming an organization by designing the structure of
relationships among jobs, personnel and physical
factors
Management Function & Human Resource
Management (HRM)
Leading – getting people to work willingly and
effectively
 Concerned with “how managers direct and influence
subordinates, getting others to perform essential tasks”
Management Function & Human Resource
Management (HRM)
Controlling - ensures that the goals are met
- setting standards and checking to see how actual
performance compares with the standards and taking
corrective actions when needed
Why is Personnel/HR Management
Important to All Managers?
All managers have personnel-related responsibilities,
HRM is needed not just to those who carry the title
human resource manager.
"I emphasize this - no matter how good or successful
you are or how clever or crafty, your business and its
future are in the hands of the people you hire".  
--- Akio Morita (Late) (Businessman and co-founder of
Sony Corporation. Japan
As a manager you
need to get results
through people!
Why is Personnel/HR Management
Important to All Managers?
To avoid personnel mistakes such as:
Hiring the wrong person for the job
High employee turnover
Employees are not doing their best
To have your company taken to court because of your
discriminatory actions
A lack of training undermining your department’s
effectiveness
To commit any unfair labor practices
To improve profit and performance
- effective human resource management can help
ensure that you get results through people.
“For many years it has been said that capital is the
bottleneck for a developing industry. I don’t think this
any longer holds true. I think it’s the work force and the
company’s inability to recruit and maintain a good
workforce that does constitutes the bottleneck for
production. I don’t know of any major project backed by
good ideas, vigor, and enthusiasm that has been stopped
by a shortage of cash. I do know of industries whose
growth has been partly stopped or hampered because
they can’t maintain an efficient and enthusiastic labor
force, and I think this will hold true even more in the
future…”
Many studies have shown that
people are more committed to
their jobs when their
participation is valued and
encouraged!
What is Human Resource Management?
HRM – management function concerned with making
sure that the human component of the organization is
able to achieve the goals assigned to it.
HRM embraces 2 functions:
1. Basic functions in the general management of the
enterprise – (POLC)
2. Operative functions which cover the daily activities
of the business
Operative Functions of HRM
1. Manpower Planning
2. Recruitment, selection, personnel movements
(promotion, transfer, demotion, separation)
3. Appraisal
4. Training and development
5. Motivation (rewards and recognition)
6. Employee relations
Manpower Planning
entails getting the right number and type of
personnel to do the required tasks for the
fulfilment of the goals and objectives of the
organization
Recruitment
defined as searching for and obtaining a pool of
potential candidates with the desired knowledge, skills
and experience to allow an organization to select the
most appropriate people to fill job vacancies against
defined position descriptions and specifications.
Selection
Once a pool of candidates has been identified through
the recruitment process the most appropriate
candidate, or candidates are identified through a
selection process including but not limited to
interviewing, reference checking and testing.
Purpose: to ensure that the best person or people are
appointed to the role or roles using effective, fair and
equitable assessment activities.
Personnel Movements
Promotion - refers to the shifting of an employee to a
new position to which both his status and
responsibilities are increased.
Transfer - refers to the shifting of an employee from
one position to another without increasing his duties,
responsibilities, or pay.
Demotion - a compulsory reduction in an employee's
rank or job title within the organizational hierarchy of
a company or organization
Separation - occurs when the employment contract or
at-will agreement between an employee and his or
her company comes to an end. 
 may either be temporary or permanent, voluntary or
involuntary
 Lay off

 Retirement 

 Resignation

 Discharge
Appraisal
also referred to as a performance
review, performance evaluation,
a method by which the job performance of
an employee is documented and evaluated
Training and development
 Acquisition of skills, knowledge, and attitudes which
enable people to achieve their current and future
individual and corporate objectives
– concerned with improving the intellectual or
emotional abilities of an employee for the purpose of
doing a better job
Motivation
 Process of activating behavior, sustaining it, and
directing it towards a particular goal

*Rewards (monetary and non-monetary) and

compensation
*Employee benefits
Employee Relations
refers to a company's efforts to manage relationships
between employers and employees
Involves creating programs to provide fair and
consistent treatment to all employees and to prevent
and resolve problems arising from situations at work
Line and Staff Aspects of Human Resource
Management
Authority is the right to make decisions, to
direct the work of others, and to give orders.
Managers usually distinguish between line
authority and staff authority.
Line and Staff Aspects of Human Resource
Management
In organizations, having what managers
call line authority traditionally gives
managers the right to issue orders to other
managers or employees.
Line authority therefore creates a superior
(order giver) subordinate (order receiver)
relationship.
Line and Staff Aspects of Human Resource
Management
Staff authority gives a manager the right to advise
other managers or employees. It creates an advisory
relationship.
Line and Staff Aspects of Human Resource
Management
On the organization chart, managers with line
authority are line managers. Those with staff
(advisory) authority are staff managers.
Human resource managers are usually staff managers.
They assist and advise line managers in areas like
recruiting, hiring, and compensation.
Line and Staff Aspects of Human Resource
Management
Line Managers' Human Resource Duties
 Line managers still have many human resource duties
because direct handling of people has always been part
of every line manager’s duties, from president down to
first-line supervisors.
Line and Staff Aspects of Human Resource
Management
In providing specialized assistance, the human
resource manager carries out three distinct
functions:
1. A line function
2. A coordinative function
3. Staff (assist and advise) functions
Line and Staff Aspects of Human Resource
Management
A line function
The human resource manager directs the activities of
the people in his or her own department, and perhaps in
related areas.
Line and Staff Aspects of Human Resource
Management
A coordinative function.
The human resource manager also coordinates
personnel activities, a duty often referred to as
functional authority (or functional control).
- ensures that line managers are implementing the
firms human resource policies and practices
Line and Staff Aspects of Human Resource
Management
Staff (assist and advise) functions. Assisting and
advising line managers is the heart of the human
resource manager’s job
- advises the CEO so the CEO can better understand
the personnel aspects of the company s strategic options
- assists in hiring, training, evaluating, rewarding,
counseling, promoting, and firing employees
Line and Staff Aspects of Human Resource
Management
- administers the various benefit programs (health
and accident insurance, retirement, vacation, and so
on)
- helps line managers comply with equal
employment and occupational safety laws
- plays an important role in handling grievances
and labor relations
Line and Staff Aspects of Human Resource
Management
- innovator role, by providing up-to-date information
on current trends and new methods for better utilizing
the company s employees (or human resources ).
- employee advocacy role, by representing the
interests of employees within the framework of its
primary obligation to senior management
External Environment of HRM
1. Economic Forces
2. Government Legislations
3. Advances in Technology
4. Workforce Demographics
5. Labor Unions
Economic Forces
The pursuit of survival and growth would mean
changes in the way organizations perform their
activities.
-requires the use of economic concepts of effectiveness
and efficiency
Government Legislation
The conduct of operations of organizations is
regulated, in many aspects, by government legislation
and these include HRM activities.
Examples of government legislations affecting HRM:
Working hours (Eight-hour Labor Law)
Leaves
Termination of employment
Social security
Minimum wage
Advances in Technology
The application of technology in the workplace
modifies or alters the way work is done.
Examples:
o Streaming desktop video – used to facilitate learning
and training or to provide information to employees
quickly and inexpensively
Internet- and network-monitoring software - Used to
track employees Internet and e-mail activities or to
monitor their performance
Workforce Demographics
 As an older generation retires and a new generation
enters the workforce the human resources department
must look for ways to attract this new set of
candidates. They must hire in a different way and
offer different types of compensation packages that
work for this younger generation.
Labor Unions
- An organization formed to represent the interest of
workers in bargaining with employers for contracts
concerning wages, fringe benefits, and working
conditions
Personnel Management vs. Human
Resource Management
Personnel management – confined to activities such as
recruiting, remuneration, and discipline
HRM – wider in scope than personnel management
Composed of the following:
1. Personnel management activities
2. A view that regards
a. people as the major organizational asset
b. workers as instinctively willing and able to be developed
3. Integration of the personnel management function into the
strategic management of the organization
Personnel Management vs. Human
Resource Management
Specific differences between personnel management and
HRM practices that cover various concerns are as
follows:
1. Recruitment and staff turnover
2. Promotion and career development
3. Rewards and benefits
4. Education, training, and development
5. Management culture
Organizing the HRM department
HRM department - unit assigned to implement the
organization’s HRM policies
Its size and structure depend on several factors:
a. Available resources
b. Number of company employees
c. Philosophy of management
Examples of organizational set-up of HRM
function
performing the
HRM function in
Owner/Manager addition to other
functions

Worker Worker Worker

Figure 1 The HRM function in a small organization

Examples of organizational set-up of HRM
function

Manager

HRM Assistant

Supervisor Supervisor Supervisor

Figure 2 The HRM Function in a Growing Organization

Examples of organizational set-up of HRM function
Vice President
HR

HR Assistant

Manager of Manager of Employee

Training & Dev and Labor Relations

Manager of HR Editor of Employee

Planning & Staffing Communication

Manager of Manager of Loss

Compensation and Prevention
Benefits

Figure 3 A Full-blown HRM Department in a Large Organization

Thank You!