HUMAN RESOURCE MANAGEMENT People design and produce the goods and service and set overall strategies and objectives for the organization. Without people, it is simply impossible for an organization to achieve its objective. Thus, employee involvement and commitment play a vital and key role in the success of any business organization. It is impossible to show a good financial or operating report unless you get the support and commitment of your employees. The objective of HRM is to help make an organization more effective. It seeks to achieve this objective by means of: 1. integrating comprehensive human resource policies with overall organization plans and strategies; and 2. implementing responsive human resource programs with a growing sensitivity to the economic and policy needs of the organization as well as being responsive to the changing technology. Major Purpose of Manpower Management ACQUISITION Jobs Analysis Recruitment Selection Placement OBJECTIV E DEVELOPMENT Training and Development, Performance Appraisal, Coping with Changing Technology OBJECTIV E MAINTAINANCE Wage and Salary Administration, Benefits and Services, Labor Management Relations, Collective Bargaining, Discipline Complaints and Grievances OBJECTIVE To get the right person for the right job To get the most from the employee OVERALL OBJECTIVE To retain the best work force UTILIZATION Human Resource Planning And Career Development OBJECTIV E To instill loyalty among the employees EVOLUTION OF HUMAN RESOURCE MANAGEMENT Whatever the job title is, the implication is that the position functions within a whole range of personnel-related activities. Changes in terminologies reflect the significance associated with the management of people in the organization as well as the broader perspective from which the field is currently viewed. As the business environment and the profit opportunities grew increasingly large, organization began to create specialized units to cope with their hiring needs. These units gradually began to be called personnel departments (the word personnel is from an old French word that means “person”). Human resource management emerged in the late 70s as a reaction against the more functional approach embodied in personnel management. The change was also accompanied by a fundamental shift in management’s view of its employees. An important by-product of this change is management behavior that no longer treats employees as mere costs but assets. To achieve success, organizations must maximize competencies – those underlying attributes or characteristics that can predict superior performance. These competencies range from tangible attributes, such as skills and knowledge, technical know – how, to intangible attitudes and values such as teamwork and flexibility. Human capital refers to the attributes gained by a worker through education and experience. These can help the worker develop competencies, knowledge, and personality attributes that in turn could help him/her perform and produce economic value for his/her employer. APPLICATIONS OF INFORMATION TECHNOLOGY (IT) IN HR 1. 2. 3. 4. 5. 6. Use of job boards and other similar web-based recruitment(e-recruitment) E-selection Employment kiosk E- learning Electronic Performance Support System (EPSS) Salary and payroll administration 7. Growth of social networking sites like Facebook and Twitter 8. Use of Email 9. Use of IT to foster customer involvement 10. Telecommuting / teleworking BENEFITS OF TELEWORKING/TELECOMMUTING 1. Employer benefits - increased productivity, simulated by lower absenteeism , higher employees’ concentration on work, and fewer distractions. - less travel time and better use of employees’ peak efficiency time - decrease turnover - hiring incentive to new employees - an opportunity to tap new labor pools 2. Employee Benefits - They save money on fuel, car maintenance and insurance - a large reduction of stress - More time for their families - Fewer distraction on the job, greater work autonomy , and more relaxed work environment. - Closer to their workplaces HUMAN RESOURCE INFORMATION SYSTEM (HRIS) - is a database system that keeps important information about employees in a central and accessible location. It merges HRM as a discipline and in particular, its basic HR activities and processes with the IT field. PURPOSES OF HRIS a. b. To improve the efficiency with which data on employees and HR activities are compiled To provide HR information more rapidly and more easily to be used in management’s decision making. HRIS APPLICATIONS The following are examples of organizations who made successful use of HRIS to deal with problems related to HR and IT: 1. 2. IBM Toshiba America Medical Systems Inc. (TAMS) SOME OF THE BENEFITS OF THE HRIS SOLUTIONS Salary and Payroll Administration HR Training Self-service Benefits Transactions EXAMPLE OF HR DATA BY VARIOUS Position Online Self -service STAKEHOLDERS USING HRIS Applicants Job Openings Application blanks Data on the company Employees Benefits enrollment and claims Print pay slips for past and current months Enroll for training and check training schedule Dependent data Download forms and templates for HR administration Retirement planning scenarios Provide feedback and view latest company news and announcement Managers Training investment factor Cost per hire Turnover costs Executives Data for HR forecasting and costing Succession plans External groups Time and attendance data Dependent health insurance status Payroll information EXAMPLE OF SOFTHWARE Jeonsoft Payroll Suite 2006 – is a client – server-based integrated personnel and payroll system specifically designed for Philippine use. 3 major modules: Time attendance system Payroll system HRIS system ACCORDING TO JOHNSON AND GUEUTAL, HR IS EVOLVING INTO A MORE TECHNOLOGY-BASED PROFESSION BECAUSE ORGANIZATIONS NEED TO: Streamline HR processes and reduce administrative burdens; Reduce HR administration and compliance costs; Compete more effectively for global talent; Improve service and access to data for employees and managers; Provide real-time metrics to allow decision –makers to spot trends and manage the workforce more effectively; and Enable HR to transform so it can play a more strategic role in the business. LABOR RELATIONS Labor relations- provides advice, guidance and direction to employees, supervisors and administrators on a wide range of labor relations and collective bargaining matters. Unions are required to provide workers with the opportunity to have a say at their workplace and to impact wages , work hours, benefits, workplace, health and safety. INCREASE IN SOCIAL CONTRIBUTION Mandatory Contributions: Social Security System(SSS) – 10.4% of the monthly salary ( by bracket) Government Service Insurance System (GSIS)21% of the monthly salary Philhealth – 2.5% (2.75%) PAG-IBIG - BUSINESS PROCESS OUTSOURCING (BPO) IN THE PHILIPPINES AND HR Outsourcing is a proven tool that can help companies their operating costs and cash flow. It is considered as one of the fastest growing business sectors in the world including Philippines. HR DEPARTMENTS’ ORGANIZATION CHARTS AND STRUCTURES Centralization – a centralized strategy locates the design and administration responsibility in a single organizational unit. Decentralization - gives each unit the responsibility to design and administer its won personnel system. Organization chart – is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. Organizations can use charts for a number of purposes: Design their department or division; Monitor reporting relationship; Gain access to information about newly created job titles, staff duties, and reporting relationship. Find out how leading agencies organize their management teams and workforces. Assess industry patterns Examine the competition Use in business presentations and to facilitate placement decision.