CHAPTER 1: THE DEVELOPMENT OF HUMAN RESOURCES

OVERVIEW:
The term "human resource management" has been commonly used for about the last ten to
fifteen years. Prior to that, the field was generally known as “Personnel Administration."
The name change is not merely cosmetics.

Human resource management (HRM), also called personnel management, consists of all the
activities undertaken by an enterprise to ensure the effective utilization of employees
toward the attainment of individual, group, and organizational goals. An organization's
HRM function focuses on the people side of management. It consists of practices that help
the organization to deal effectively with its people during the various phases of the
employment cycle, including pre-hire, staffing, and post-hire. The pre-hire phase involves
planning practices. The organization must decide what types of job openings will exist in
the upcoming period and determine the necessary qualifications for performing these jobs.
During the hire phase, the organization selects its employees. Selection practices include
recruiting applicants, assessing their qualifications, and ultimately selecting those who are
deemed to be the most qualified.

OBJECTIVES:
After this lesson, you should be able to:

 Define Human Resource Management;

 Discuss the importance of the Human Resource Management;
 Discuss why Human Resource Management is both a science and an art;
 Explain and differentiate the different roles of the Human Resource Manager and his
functions;
 Manager in a business and his major contribution toward the development of the
organization; and
 Explain the career development of a Human Resource Manager.

HUMAN RESOURCE PROCESS

Growth and Development of Personnel/Human Resource Management in the Philippines
Personnel or human resource management is a relatively new field in the Philippines. It
was only in the early 1950s that is gradually gained acceptance and recognition in private
business and industry. For it to gain acceptance and recognition, three conditions need 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.
Top management is too often unaware of what personnel work is and what it can do to
promote effective management. As a result, personnel management is usually given only
minor role in business affairs. The lacks of qualified personnel executives complicate the
problem. Even when management sees that a good personnel department is desirable, not
enough qualified personnel management practitioners are available to run it.
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 hearings 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.

Organization and Human Resources

To grow and thrive in today’s competitive environment, organization must deal with
many and diverse changes. Traditionally, the concept of value has been considered a
function of finance or accounting. Human resources are crucial to the long-term survival of
the organization. Our definition of value includes not only profits but also employee growth
and satisfaction, additional employment opportunities, protection of the environment and
contribution to community development.
The organization is made up of people. The main goal of ay organization is to provide
goods and services effectively. It is the people who are linked in a formal structure and
managerial leadership. People are vital to an effective personnel management program. The
development of an effective organization hinges on the proper selection, development, and
utilization, rewarding, and maintaining capable people.
The Challenges of Human Resources
1. The Challenge of the Global Community
Organizations are increasingly finding out that to survive they must compete
with organizations not only in the place of operation but the global business community.
Companies need to compete and defend not only their local markets and customers; thy
must broaden their scope to encompass global markets.
2. The Stockholders Challenge
The key to success in today’s business environment is to meet the investor’s
needs and those of the other stakeholders. These stakeholders are the customers,
employees and the community where the enterprise operates. The companies are
challenged to reach financial objectives though meeting customers’ and employees’
needs. Satisfied customers are assets that will sustain company growth and financial
stability.
3. The Challenge for Productivity
The links of high productivity are:
a. Human resources and capabilities
b. New technology and opportunities
c. Efficient work structure and company policies allow employees and technology
to interact.
Contributing Growth Factors
Among the factors that have contributed to the growth of personnel management in
the Philippines are the following:
1. Increasing complexity of business operations
The post-war period saw the birth of big corporations where the volume and variety
of operations and the size of the labor force demanded specialization in management. The
personnel specialist was called upon to formulate and carry out the organization’s personnel
policies and programs.
2. Government regularization and labor laws promulgated in recent years
In order to safeguard the worker’s 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 1953, and several other labor and social laws which are embodied in the Labor Code
of the Philippines, and its implementing Rules and Regulations that took effect on
November 1, 1974. Compliance with these laws (not to mention the need to secure permits,
compile statistics and make various reports to government agencies) became part of the
services of a personnel department.
 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
The employee welfare concept is not new, but its nature has changed from one of
paternalism to that of employee’s rights through practices that have become
institutionalized.
Definition of 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.
Personnel/Human Resource Management: A Science and an Art
A science is a systematic accumulation of facts, their analysis and interpretation, and
their use to arrive a satisfactory conclusion. Personnel management is a science because it
involves the systematic gathering of data derived from surveys, statistics, interviews, and
observations. It is an applied science because it utilizes scientific principles in analyzing and
interpreting data for application in the management of the people at work.
Art is proficiency in the practical application of knowledge acquired through study,
experience or observation. After the required knowledge are gathered and analyzed and the
possible solutions to a problem are formulated, a good executive needs to select the best
from among alternative solutions.

Companies Hire a Human Resource Manager because he can:

1. Help management achieve company objectives and goals in the management of its
human resources;
2. Assist top management in 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 unions;
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 required in accomplishing their jobs efficiently;
 6. Help promote understanding and good relationships by opening the line of
communication between management and employee thereby creating an
atmosphere where workers can be happy and proud to belong to the organization;
7. Identify management problems that can be resolved and opportunities that can be
realized through improved effectiveness in personnel management;
8. Assist managements 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
An appraisal of the role and functions of the personnel managers reveals four main
problems:
1. Common misconception about his role and functions
There is a misconception that the personnel manager is nothing more than a simple clerk
whose job is to keep employee records and to give job applicants the necessary forms to fill
out.
2. Inadequate recognition by management of the proper role of the personnel
manager in the organization
Some top management executives are unwillingly to give the personnel manager the
corresponding authority and responsibility for the job. There is hesitance on the part of
business executives to let the personnel manager participate in personnel policy-making
decisions.
3. In the area of labor relations
Some employers expect the personnel manager to keep the labor unions out or if there is
one, to break or bust it. The personnel manager who is a conformist becomes unstable and
insecure in his position because of lack of the necessary strength of personality and
knowledge of his job.
4. Jealousy of the other executives regarding the personnel manager’s duty and
authority.
These problems can be avoided if top management defines clearly the extent and limits of
authority and responsibility of the personnel manager and enjoins the line executives and
supervisors to cooperate with him.
The Past and Present Role of Human Resources
To understand the improving role of personnel functions, we need to compare the
changes with past practices.
The Traditional Personnel Image
Historically, personnel managers and their departments suffered from 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.
The Changing Image of the Human Resource Functions
With the advancement in technology and the higher qualifications for employment, the
position of the Human Resource Department in the organization got the boast of higher
recognition and importance. Organization now recognized the important role played by
human resources in the company’s profit index.
Organizations are now aware that attention should be given to their important assets. That
is the labor force and together with this is the advancement of the human resource
department role. Companies now look at Human Resources practices as a means to
profitability, quality and other business goals through enhancing and supporting business
operations.
The Role of HR in the New Millennium Organization
The new role that the HR department performs includes out-placements, labor law
compliance, record keeping, testing, compensation and some aspect of benefits
administration.
The Role includes the following:
1. Recruitment and Employment
2. Interviewing, testing, recruiting and temporary employment
3. Labor coordination
4. Training and Development
 Orientation of new and temporary employees
 Performance management training
 Productivity enhancement
5. Wage and salary management
 Job evaluation
 Wage and salary survey
 Executive compensation
6. Benefits Administration
 Vacation and Sick leaves administration
 Insurance
  Stock plans
 Pension plan
 Retirement plan assistance programs
7. Employee Service and Recreations
 Bus service
 Canteens
 Athletics
 Housing and Relocation
8. Community Relations
 Publication
 Community project and relation
9. Record management
 Employment record
 Information system
 Performance record

10. Health and Safety

 Training
 Safety inspection
 Dental and Medical Services
 Drug testing
11. Strategic management
 Collaborative planning
 Out-sourcing manpower research
 Organizational Planning

Roles of the Personnel/Human Resource Manager

Considering his position in the company and the scope of his functions, the
personnel manager is expected to play varied roles such:
1. Supervisor
He plans, organizes, directs, controls and coordinates the activities of his
departments.
2. Administrative Official
He or his staff conducts or directs certain personnel activities as provided or in
the policies and programs entrusted to the department.
3. Adviser
He serves as counselor, guide and confidante to management supervisors
and employees.
 4. 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 function in other departments.
5. Negotiator
He is the representative of the management in negotiating labor contracts or to
attend negotiations with unions in an advisory capacity.
6. Educator
He conducts or administers company’s training program. He is very much
involved in the management of employee development programs of his company.
7. Provider of Services
He provides services to all employees and helps them obtain facilities with
government agencies like SSS, Medicare, etc., which can make their employment more
satisfying.
8. 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.
9. 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 favorable and positive image to the community.
10. Public Relations Man
His functions require him to deal with the general public, which includes the
employees, the unions, and the community.
Personal Qualities of the Personnel Manager
1. Can communicate effectively, both orally and in writing
2. Possesses an above-average intelligence
3. Enjoys working with people
4. Grasps the implication of a given situation, understands individual attitudes and the
problems of the employees and of the employer
5. Aggressive, mature and capable of giving sound advice that will be in the best
interest of both the employer and the employee.
6. Possesses the integrity, industry and courage to earn the respect of the employees
and his employer.
7. Possesses a pleasing personality and personal warmth and should be approachable
The Skills Needed by Today’s HR Professionals
A higher degree of professionalism is the demand of the new HR practitioners. This
includes the following:
 1. A higher degree of knowledge on management practices and processes. He would
need this to collaborate with other line managers.
2. The HR practitioner is a service provider to other line managers. He must possess a
high degree of human and public relations.
3. A great knowledge of human psychology and social relations. It is a great asset to
effective coordination.
4. He is a consultant on labor relations. A working knowledge of labor laws and
regulations is of great advantage.
5. 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.
6. 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 and other services.

Some benefits being offered to Personnel Managers are the following:

1. 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.
2. Unlimited/Limited use of gasoline and free maintenance check-up.
3. Company cellular phone – This is given to ensure that the manager can be contracted
anytime especially by top management so as to have a free flow of communication.
4. 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.
5. Education Scholarship/Attending Conventions and Seminars – The managers are
offered scholarships and are given the opportunity to attend conventions, seminars
and meetings for them to be updated with the latest trends in their department,
learn thorough knowledge, meet other colleagues, and gain experience that will
enable them to develop their self-esteem and confidence.
Career Advancement/Other Professional Options for the Personnel Manager
The Personnel Manager, known as the “jack of all trades”, has the opportunity for other
career options such as the following:
1. College Professor – He can teach business subjects such as marketing, finance,
human resource and development.
2. Vice President of the Company – This is due to promotion after showing and
performing excellently.
3. Chief Executive Officer (CEO)
4. Politician
5. Entrepreneur
6. Businessman
The Career Path to HR Management
New college graduates who are interested in developing their career in the area of
human resources must start in the lower level of the HR functions. They need exposure in
the different fields or areas of specialized HR functions.

Entry Level
(Personnel assistant)

Supervisory Level

Managerial Level