1group-ch2trends in human resource management
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ABLAZA CALUPAZ GODOY
LEDESMA. OPEDA SALDI VILLARICO MAPA
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Pre-Spanish Occupation Trade and commerce conducted on Barter system
No formal and permanent groups to necessitate the organizamanagement and labor groups
Personnel management was not known
Spanish Occupation Business organizations were very loose and management-la
relations was unheard of
Master and domestic servant/laborer relationship regulated bCivil Code of 1889 which was extended to the Philippines onDecember 7, 1889
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Spanish Occupation (cont.) Code of Commerce governed more on trade and commercia
transactions
Regrettable situation of workers due to the absence of labor regulated employment
Very few schools established; natives were generally illiterateunenlightened
Enlightened leaders such as Jose Rizal and M. H. del Pilar leFilipinos to rise up in arms for freedom and dignity
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American Occupation No labor laws passed against oppressed women and child la
Farmhands and industrial workers suffered from lack of proprevenues
Unionism was introduced due to increased trade and industr
Management effort to maintain and develop workers was virtnon-existent
More schools established raising the level of literacy andenlightenment
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Japanese Occupation World War II witnessed a suspension of the normal educatio
system
Japanese had the last say on policies and practices
Big trade, business and industry activities were decimated
Annihilated existing management-labor relations Union movement and labor or personnel management exting
temporarily
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Post War PeriodA change of tide in favor of personnel management. Develop
and growth in the Philippines is primarily a post-war phenomwhich Sison attributes to:
Increasing complexity of business operations
Number of government regulations and labor laws promulgrecent years
Growth of labor unions
Influx of new concepts in management
Rehabilitation programs assumed many forms of physical,governmental, educational, economic and moral infrastructur
made people employable and busy
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Post War Period (cont.) Creation and operation of the Department of Labor, Governm
Service Insurance System (GSIS), Social Security System (SNational Youth and Manpower Council (NYMC)
Personnel Management Association of the Philippines (PMA
provided a national push to remind top management of the larole in personnel management through its educational, informpublic relations and legal support programs and projects
Schools offering courses treating concepts on labor, manpowhuman relations, industrial relations and other related topics
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Martial Law Period Years wherein the President set up the parliamentary form o
government and took the role of tackling and swiftly the avomain problem of insurgency
On the labor aspect, this period was characterized by relativeincrease of local unions, by the federation of existing unions government ban on strikes in vital industries as mandated bypresidential decrees
Schools continued offering courses on people
Term and concept of human resources management seepedwork setting and academe through literature and returning scgrantees, academe and practitioners from abroad.
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Post Martial Law Period to 1995 Work setting is still shot through management-labor problem
Problems such as insurgency, attempts to abrogate constitutauthority, indebtedness, land reform program, graft and corruthe government and foreign military bases burdened on labo
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From 1990 to Date Reinstitution of democracy, exercise of freedom, mechanism
wider consultation, participative law making process, seriousthe Tripartile Conference to formulate, agree on and sign theAccord on Industrial Harmony and the incumbent Presidentspersonal role modeling constituted to some positive signals t
unfreeze the previous and present status quo
PMAP exerted and shown leadership, giving awards such aspersonnel manager, best personnel and human resource proorganizations and best employer every year
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The Environment and Human Resources ManagementA taken-for-granted insight: human resources management is a pr
environment.
Economic Environment
This is where the trade, business and industry is strong and there activity, employment is high.
Political Environment This is where the political stability, expression of ideas and opport
innovation are curtailed or wanting.
Educational Environment
This is where masses are enlightened through training, education media. The workers become aware of their rights, even risking the
their defense of these.
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C
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HRM
More embracing in peoplecoverage
Employees are part-timers and flex-timers
Flexible on place and work
Multifarious services Human Engineers
Uses the help socialscience researchers andbehavioral scientists forstaff qualifications
PersonnelManagement
Rank and File workers,evaluation
Employees are usuallyfull-timers
Mandatory formal work
setting Functions are repetitive
Officer-in-Chargesfunction: mechanistic andvery simple
Uses the help of lawyersfor background checkingfor staff qualifications
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HRM Reports directly to general
management
Achievement oforganizational andindividual goals
Developmental, flexible,and participatory kind of
approach Objective and scientific in
strategy
People-based philosophywith humane treatmentand respect to individuals
People treated asinvestments
PersonnelManagement
Lower level of reporting
Rigid approach
Achievement of
organizational goals Control-oriented approach
Personally-subjective interms of strategy
People treated as expenseitems
C
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LABOR FORCE
refers to people willing and able to work
Internal Labor force
people who have contracts to work at the organization
External Labor Force
people actively seeking employment
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LABOR FORCE (cont.)
Aging Workforce
Age composition of labor force and forecasts of employme
Note
Ages 55 and older has the fastest growing age group of
Ages 25 44 slightly increasesAges 16 24 are fewer in number
Exper ience is the key point being ob served for this tre
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Diverse Workforce Diversity in racial, ethnic and gender terms considered in em
Immigration as its important source
Demand and supply for labor causes immigration
Key note: Turning diversity into an advantage
Skill Deficiencies of the Workforce
Demand on educational achievements
Competition exists
Key note: The knowledgeable gets to be chosen
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Skill Deficiencies of the Workforce Demand on educational achievements
Competition exists
Key note: The knowledgeable gets to be chosen
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HIGH PERFORMANCE WORK SYSTEMS Organizations that have the best possible fit between their so
system and technical system
Knowledge Worker
Employees whose main contribution to the organization isspecialized knowledge
Knowledge workers are need for jobs in Health Services, BServices, Social Services, Engineering and Management
Specialization supplies the demand for a particular requirean organization
Key note: Special ized Knowledge
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EMPLOYEE EMPOWERMENT Giving employees responsibility and authority to make decis
regarding all aspects of product development or customer se
HRM practices such as performance management, training, design, and compensation.
Key note: involv ing employees the o rganizations oper
Teamwork
The assignment of work groups of employees with various sinteract to assemble a product or provide a service.
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SUPPORTING ORGANIZATION STRATEGY FORQUALITY, GROWTH, AND EFFICIENCY Focus on Strategy
Plan for meeting broad goals such as profitability, quality, andshare
HR professionals are strategic partners with other managers Involvement of the HRM to the development of the strategies
to HRM policies and practices
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SUPPORTING ORGANIZATION STRATEGY FORQUALITY, GROWTH, AND EFFICIENCY (cont.) HRM can support these strategies, including efforts such as
improvement programs, mergers and acquisitions and restru
High Quality Standards
Many organizations adopted some form of TOTAL QUALITYMANAGEMENT a companywide effort to continuously impropeople and machines, and systems accomplish work.
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Mergers- two companies becoming one Acquisition- one company buying another
(These results in consolidation within an industry. )
What are the significant roles of HRM in carrying out a merg
acquisition?
Training efforts should include development of skills in conflictresolution.
Sort differences in the two companies practices
Settle a consistent structure to meet the combined organization
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1990s- war of talents
Organizations sought to become employers of choiceestablish employment brands, and to develop emplvalue propositions.
Organizations were laying off employees with out-dateor cutting whole business that were in declining markewhile simultaneously building businesses and employbases in newer, higher-growth markets.
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Challenges: Reduce the workforce by cutting only the workers who are less
in their performance.
Boost morale of employees who remain after the reduction.Opportunities:Provide downsized employees with outplacement services to hefind new jobs.Roles of HR professionals:
Maintain open communication with remaining employees to butrust and commitment, rather than withholding information.
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a complete overview of the organizations critical work procmake them more efficient and able to deliver higher quality
Involves reviewing all the processes performed by all theorganizations majorfunctions
How can it affect HRM?
1. The way HR department accomplishes its goals may change2. The fundamental change throughout the organization require
HR department to help design and implement change so thaemployees will be committed to the success of the reengineorganization.
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Refers to the practice of having anothcompany (a vendor, third-party provider
consultant) provide services.
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(Coca-Cola, Microsoft, Walt Disney, Int
People are companys most important a
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Organizations with international operations hire at leaof their employees in the foreign countries where theyoperate.
Offshoring moving operations from the country where a compa
headquartered to a country where pay rates are lowthe necessary skills are available.
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Organizations must be prepared to send employees tcountries.
Expatriates
employees who take assignments in other countri
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Large quantities of employee data (training recskills, compensation rates, benefits usage and can easily be stored and manipulated.
Human resource information system (HRIS) a
computer system used to acquire, store, manipanalyse, retrieve and distribute information relaan organizations human resources.
M
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Challenges:
Requires companies to continually update their skillrequirements and then recruit and train people to meerequirements.
HRM needs to help companies comply with labour lawmotivate employees, and craft human resource policieseem fair to workers and meet employers competitivedemands.
M
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E-HRM The processing and transmission of dHR information, especially using computer netwand internet.
Electronic HRM applications let employees enr
and participate in training programs online.
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HRM PRACTICES IMPLICATIONS OF E-HRM
Analysis anddesign of work
Employees in geographically dispersedlocations can work together in virtual te
using video, e-mail, and the Internet.
Recruiting Post job openings online; candidates c
apply for jobs online.
Training Online learning can bring training toemployees anywhere, anytime.
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HRM PRACTICES IMPLICATIONS OF E-HRM
Selection Online simulations, including tests, vidand e-mails, can measure job candidat
ability to deal with real-life business
challenges.
Compensation
and benefits
Employees can review salary and bon
information and seek information abouenrol in benefit plans.
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HR information is confidential and not suitable for posting on a Web Intranet
network that uses Internet tools but limits access to authorizein the organization.
Web portals
web sites designed to serve as a gateway to the Internet, hilinks to relevant information.
Self-service
system in which employees have online access to informatioHR issues and go online to enrol themselves in programs and providefeedback through surveys.
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A New Psychological ContractPsychological Contract
A description of what an employee expects to contin an employment relationship and what the emploprovide the employee in exchange for those contri
It describes unspoken expectations that are widelyby employers and employees.
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Traditional Psychological contract New Psychological ContractEmployee:
Time
Effort
Skills
Abilities
Loyalty
Employer:
Job Security
Opportunities for promotion
Employer:
Provide flexible work schedu
Comfortable working conditio
More control over how the a
work
Training and Development op
Financial incentives based on
organization performs.
Employability (The Company
training and job experience t
that they can find other emp
opportunities.)
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Flexibility Key to survival in a fast-changing environment.
Includes flexible staffing levels and flexible work schedul
Flexible staffing Levels
Flexible staffing levels using Alternative work arrangement
Alternative work arrangements Methods of Staffing other than the traditional hiring of ful
employees.
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Most common Alternative work arrangements Independent Contractors
Self employed individuals with multiple clients.
On-call workers
Persons who work for an organization only when they aneeded.
Temporary workers Employed by a temporary agency; client organizations p
agency for the services of these workers.
Contract company workers
Employed directly by a company for a specific time specwritten contract.
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Employee Employer
Ease pressures and conflicts
of trying to balance work and
non-work activities.
Protect employees free t
Productively use employe
work time Recruit and retain employ
Increase satisfaction and
productivity.
Flexible Work Schedule
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A
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Kinds of expenses Components Some contributions of HR tocost reduction, insuring that
A. Cost of Products sold Goods and materials Utilities Manpower is notmisused or misdirected
Everyone does a days
work1. Factory Inventory Costs
(FIC) Depreciations People-related ones
For a days pay Work is not interrupted Accidents are reduced Turnover is minimized Materials and time are
not wasted
How HR Helps Reduce Costs
A
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Kinds of expenses Components Some contributions of HR tocost reduction, insuring that
2. Plant Burden Plant utility Overhead expenses The right people arerecruited
The sales force and
managers are properly
trained A working climate that
keeps morale high is
maintained The manufacturing
people produce goods in
the needed number of
quality
How HR Helps Reduce Costs
A
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Kinds of expenses Components Some contributions of Hcost reduction, insuring
3. Factory Cost Adjustments
(FCA) Scrap Cost variances Loss of materials Off-spec products
Engineering and purchasingexpenses
Trial production costs
Productivity / Efficie
Dedication to quality
is promoted Waste and scrap are
eliminated Output is increased Attitudes leading to
mistakes are elimina
How HR Helps Reduce Costs
A
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Kinds of expenses Components Some contributionsreduction, insuring
B. Operating Costs Distribution Advertising and promotions Selling Products Services R & D (research and
development) Administrative and general
services
Warehouse peo
properly manag
Morale is increa
good compensa
employee polici
Loss services anare anticipated
product quality Good R & D peo
and retainedThe right jobs a
the right people
How HR Helps Reduce Costs
A
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Proper handling of Employees = Increase in productivity and reduosts
COMPANY COST STRUCTURE
Raw Materials
Direct Labor
Overhead (rent, utilities, supplies, miscellaneous expenses,
Example Scenarios:
An unqualified person was assigned to accomplish a job to aaterials. Could result to:
Higher cost of acquisition
Buy materials that cannot be used at allA
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They take an unskilled person who has to operate a machine; the sklearned and polished. However, when technology is changed and anc machine is adopted, then the person becomes a liability. He cannoproperly and may increase wastage because of lack of knowledge.
HRM must devote to the development of such employee to ensure BERFORMANCE, if not the same
Example for Direct Labor: Undisciplined employees would use company time to do other thi
o not contribute to their productivity
Note: HRM should inculcate certain norms that the company obseelp lower direct labor costs or maximize an employees potentials
A
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FACTORY INVENTORY, DEPRICIATION AND PEOPLE RELATED COSTS Human Resources Management could:
Provide Incentives for the workers so that continuous work could be done tociation. This would encourage them to do their best and so would produce thered with least depreciation costs
Proper maintenance of machines to reduce accidents and also breakdown of the workers are motivated to take care of them.
Minimize turnover of personnel when employees are satisfied with their jobs
urnover is minimized and materials and time are not wasted PLANT BURDEN
Right people > more knowledgeable about the equipment > avoid cost to fix m
Right people > more productive and efficient
Right people precludes having wrong people
A
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PROPER TRAINING OF THE SALES FORCE AND MANAGERS Managers properly trained > motivate employees > work more efficiently and more
Sales force trained well > goods sold quickly > less inventory > less storage costs tod goods
Good working climate > morale high
Benefits of proper training of management
avoids turnovers, complaints, strikes, etc. minimize medical costs by preventing accidents and illnesses
increase productivity or maintain a high level of productivity
People produce goods in the needed number and quality
Wastage of materials is avoided
Costs of overhead expenses caused by delays can be minimized
A
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FACTORY COST ADJUSTMENTS Human resource management helps and contributes a lot in the cost reduction o
firm particularly in the factory cost adjustments (FCA). This leads to productivity/edication to quality work, elimination of waste and scrap.
The more motivated and satisfied the people are, the more they would contributeany and the more loyalty is established.
A
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Components in human resources contributions:
1. Scrap - if people know what they are doing with proper management, they areake less mistakes thus minimizing scrappage
2. Cost variances - HRM can make use of standards to motivate people in order avorable cost variances
3. Loss of material - highly motivated people will always consider the availability and their proper utilization. Thus beneficial results follow and in effect, loss of maided.
4. Off-spec products close monitoring of orders will result in minimizing off-spe 5. Engineering and purchase expense canvass materials first before purchase
y established and connivance with supplier avoided.
A
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OPERATING COSTS
1. Distribution, Advertising and Promotion
Human resource management can reduce operating costs in this area
Distribution
Properly trained workers can help make the distribution more effective ahus increasing the customer satisfaction
Workers are properly screened for the company will not waste valuable t
Productivity is kept high because of competitive compensation resulting tivation of workers
Advertising and Promotion
human resources management is an investment rather than a cost in this a
With the right people, advertising can be maximized given the budget const
Competent and creative employees would most probably come up with goog ideas that would lead to increase of company sales.
A
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2. Selling and Product Service
Incentive schemes to maintain the companys good salesmen
Higher sales volume can be achieved with fewer but highly motivated people.
implementing a system which gives bonuses and merit increases for increased p
3. Research and Development (R & D)
In this department requires highly skilled and innovative people to provide new ges and methods.
Administration and General Services the company should be careful not to assign the right people to wrong jobs
General and Administrative departments serve as the backbone of the company
A
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