In the future, the effectiveness of business and its executives will be measured in

human terms the extent to which the enterprise contributes to society and the
individuals associated with it. Achievement will be judged not by numbers and
dollar marks alone but also by its impact on the quality of human life. Ray A.
Killian
Overview of Human Resource Management
Human Resources Management is the art and science of acquiring, motivating,
maintaining and developing people in their jobs in light of their personal,
professional and technical knowledge, skills, potentialities, needs and values and in
synchronization with the organization philosophy, resources and culture for the
maximum achievement of individual, organization and societys goals. The process
implies the five functions of management which are planning, organizing, staffing,
directing and controlling. Human resources management deals only with people so
that they can manage the other resources within their domain of responsibility
efficiently and effectively.
Through and by men, the other ms money, machines, materials, methods and
markets are acquired and utilized. The quality and utilization of the latter are
almost always affected by decisions about and by human resources. Indeed, the
accomplishment of the goals of an organization depends upon the availability and
utilization of all these ingredients the interaction of which are people-caused.
Unlike material and financial assets, human resources, by their nature, are highly
dynamic and elusive, defying foolproof quantitative analysis and predictability. The
challenge of management is not so much in the money, machines, methods,
markets but in its people. There is no exact replacement for human resources.
Relationship of Human Resource Manager with Other Organizational Units
The Human Resource Manager and his subordinates or staff perform specialized
staff functions in relation to other employees from other units within an
organization. While line managers are responsible for getting results/work done in
such functional areas as manufacturing, marketing or operations, the people in the
Human Resource or Personnel Department provide specialized personnel staff
functions or services such as: human resource planning, recruitment, selection,
placement training, development, performance evaluation, maintenance,
compensation, and labor relations.
The Human Resource Manager (HRM) provides advice, inform and recommend
steps to be taken on personnel matters to other managers within the organization.
Services on these specialized personnel staff functions are also provided as needed.
Performing a staff function in relation to their managers, the human resource
manager cannot order other managers to follow the advice or recommendations he
may have given.

Reported by: Ongoco, Ailyn

Managerial Functions refer to the different roles and responsibilities of managers,
who need certain skills to execute these functions.
4 Different Functions of Managerial Functions
1. Planning
2. Organizing
3. Directing
4. Controlling
6 Ms
Men and women
Money
Method
Material
Machines
Materials
1. Planning
it involves the determination of course of action to perform a particular
function or activity. It also involves anticipation and preparation to meet condition/s
that may affect an organization or even people and community, country, region,
world.
Human Resource/Personnel Planning refer to all planning activities involving
the employees of an organization in any or all of the personnel operative functions
that lead to the accomplishment of individual, organizational and societal goals or
objectives.
2. Organizing
it involves determination of activities to be performed by every unit of the
organization, the clarification of the relationship among these units, the assignment
of human resource to perform each task/activity required.
3. Directing
involves overseeing and supervision of employees and various activities in
an organization through a cooperative efforts the predetermined goals or objectives
of an organization.
4. Controlling
involves checking or evaluation and measurement of work performance,

comparing it with planned goals or objectives, and making corrective actions when
necessary so that the work/function is accomplished as planned.

Important goals of management accomplished to HR Control function

(Sayles and Strauss)
1. It helps top management evaluate how well its policies as a whole are
working.
2. It identifies trouble spots-specific areas that requires special attention
3. It keeps subordinates alert to what is expected of them, it stimulates them
to pay particular attention to those areas assigned highest priority by top
management.
HUMAN RESOURCE/PERSONNEL OPERATIVE FUNCTIONS
-primary function of the Human Resource or Personnel Manager. The
operative functions of personnel management are related to specific activities of
personnel management viz., employment, development, compensation and
relations. All these functions are interacted by managerial functions.
1. Personnel/Human Resource Planning, Recruitment, Selection and
Personnel/Human Resource
Placement
Planning, Recruitment, Selection
Personnel/Human Resource Personnel Planning is a study of the labor
supply of jobs which are compared with the demand for employees in those
jobs within an organization to determine future requirements which either
increase or decrease.
Labor
Training and
Relation
Development
Recruitment is the process of encouraging job applicants from outside an
organization to seek employment in the organization.
Selection is the process of Effective
determining the most qualified job applicant or
employee for a given positionHuman
in an organization.
Resource and

Placement is the process of making an employee adjusted and

Management
knowledgeable in a new job and/or working environment.
2. Training and Development refer to any method used to improve the
attitude, knowledgeabl, skill or behaviour pattern of an employee for
adequate performance of a given job.
Maintenan
Performance
ce
Rating
3. Employee Performance Rating is the evaluation of the traits, behaviour
and effectiveness of an employee on the job as determined by established
work standards. It is judgmental and developmental in purpose.
Compensation

JUDGMENTAL- if made as a tool in decision making for promotion,

transfer, pay increases or termination of employees.
DEVELOPMENTAL-evaluation intends to facilitate the employee
improvement in performance or used to improve recruitment, selection,
training and development of employees.
4. Compensation is the pay received by an employee in the form of wages or
salaries, bonuses and commissions.
3 TYPES of FINANCIAL COMPENSATION
1. Base Compensation (basic pay) represents the portion of the wages or salaries
that all employees occupying a particular job would receive.
2. Incentive Compensation (variable) refer to a compensation plans that pay
employees at different scales or levels of pay based on performance or productivity.
3. Supplementary Compensation represents added benefits or pay given to
employees usually as a result of organizational membership.

5. Maintenance covers all activities intended to provide an acceptable working

environment for employees. It is aimed to provide employees with the best
work environment possible.
6. Labor Relations refer to the relationship existing between the management
of an organization and its employees and the labor union representing the
employees, if the organization is unionized. It refers to efforts of satisfactory
accomodationd between both employees and the management to settle
disagreements.

Reported by: Magallon, Mark Emerson

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT:

1. Recruitment and Training
This is one of the major responsibilities of the human resource team. The HR
managers come up with plans and strategies for hiring the right kind of
people.
2. Performance Appraisals
HRM encourages the people working in an organisation, to work according to their
potential and gives them suggestions that can help them to bring about
improvement in it.
3. Maintaining Work Atmosphere
This is a vital aspect of HRM because the performance of an individual in an
organization is largely driven by the work atmosphere or work culture that prevails
at the workplace.
4. Managing Disputes
In an organization, there are several issues on which disputes may arise between
the employees and the employers.
5. Developing Public Relations
The responsibility of establishing good public relations lies with the HRM to a great
extent.

HUMAN RESOURCE MANAGEMENT VS PERSONNEL MANAGEMENT

Human Resource
Management
SCOPE
OF
SERVICE

DIFFERENC
E IN
APPROACH

Personnel
Management

Personnel management
focuses on personnel
administration, employee
welfare and labor relation.

Human resource
management focuses on
acquisition,
development, motivation
and maintenance of
human resources in the
organization.

The personnel management

approach tends to attach
much importance to norms,
customs and established
practices.

Human resource
management gives
importance to values and
mission.

DIFFERENC
E IN
NATURE

Proactive nature of human

resource management.

DIFFERENC
E IN
APPLICATI
ON

Personnel management is
an independent staff function
of an organization, with little
involvement from line
managers, and no linkage to

Reactive nature of
personnel management.

Human resource
management, on the
other hand, remains
integrated with the
organization's core

the organization's core

process.

strategy and functions

1. Personnel management is a traditional approach of managing people in the

organization. Human resource management is a modern approach of managing
people and their strengths in the organization.
2. Personnel management focuses on personnel administration, employee welfare
and labor

relation. Human

resource management

focuses

on

acquisition,

development, motivation and maintenance of human resources in the organization.

3. Personnel management assumes people as an input for achieving desired
output. Human resource management assumes people as an important and
valuable resource for achieving desired output.
4. Under

personnel

management,

for employee's satisfaction.

personnel

Under human

function

is

resource management,

undertaken
administrative

function is undertaken for goal achievement.

5. Under personnel management, job design is done on the basis of division of
labor. Under human resource management, job design function is done on the basis
of group work/team work.
6. Under personnel management, employees are provided with less training and
development opportunities. Under human resource management, employees are
provided with more training and development opportunities.
7. In personnel management, decisions are made by the top management as per
the rules and regulation of the organization. In human resource management,
decisions

are

made

collectively

after

considering employee's participation,

authority, decentralization, competitive environment etc.

8. Personnel

management

employees. Human

focuses

on

increased

resource management

focuses

production
on

and

effectiveness,

satisfied
culture,

productivity and employee's participation.

9.

Personnel

management

is

concerned

with

personnel

manager. Human

resource management is concerned with all level of managers from top to bottom.
10. Personnel management is a routine function. Human resource management is a
strategic function.

Reported by: Javier, Jean Chel

FUNCTIONS OF THE HUMAN RESOURCE/ PERSONNEL DEPARTMENT
1.
2.
3.
4.
5.

To
To
To
To
To

recruit, screen and refer qualified job applicants.

assist line managers on safety manners.
assist managers in the field of employee relations.
assist provide employee services.
conduct employee research and standards.

THE PERSONNEL PROGRAM

The formulation and administration of personnel program is one of the
functions of Human Resource Manager.
FACTORS TO CONSIDER IN PERSONNEL PROGRAM
- Objectives of the organization
- Organizational philosophy or creed
- Philosophy of central management in relation to personnel
- Financial condition and physical facilities of the company
PERSONNEL PROGRAM DEFINITION
It refers to activities to implement the organizational philosophy or creed and the
personnel philosophy of central managers in relation to people to accomplish
organizational objectives.

GUIDELINES FOR A SATISFACTORY PERSONNEL PROGRAM

1. The human resource policies of the organization are written, known and
observed by all.
2. The personnel program has the full support of managemnt and employees.
3. The organization has a definite human resource procurement plan.
4. The organization has a training and development program for all employees.
5. The grievance machinery of the organization is understood and efficiently
working.
6. Periodic audit of every employee is made to discover strength and weakness.
7. The organization provides substantial employee benefits and services.
8. The organization through its managers maintain good relations with their
immediate subordinates.
PERSONNEL POLICIES
Are continuing decisions applicable to routine or repetitive situations used as guides
in the management of human resource.

Reported by: Ungsod, Louise Mattheu

HUMAN
RESOURCE
MANAGEMENT

Reported by:
Ongoco, Ailyn
Magallon, Mark Emerson
Javier, Jean Chel P.
Ungsod, Louise Mattheu