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Human Resource Management (HRM) with Labor Relations: A Comprehensive Overview, Summaries of Human Resource Management

A comprehensive overview of human resource management (hrm) with a focus on labor relations. It delves into the historical evolution of hrm, outlining key breakthroughs and the shift from personnel management to a more strategic approach. The six functional areas of hrm, including staffing, compensation, safety and health, labor relations, and human resource research. It also examines the legal framework governing labor relations in the philippines, highlighting the constitutional and statutory provisions protecting labor rights. The document concludes with a comparison between personnel management and hrm, emphasizing the proactive and strategic nature of hrm in fostering employee well-being and organizational success.

Typology: Summaries

2023/2024

Uploaded on 10/08/2024

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HRM with Labor
Relations
PSY 311
Human Resource Management:
An Overview
Topic 1: Defining Human Resource
Management
Human Resource Management
- the use of individuals to achieve
organizational objectives, with
managers at all levels dealing with
HR matters
- a critical business function, requiring
attention from upper management
- the practice of managing people in
an organization
Challenges faced by HR
Professionals: Changing workforces;
Government regulations; Technological
revolutions; Global competition
1. Recruitment and Hiring
- Finding and hiring the right
employees for the company.
2. Training and Development
- Helping employees improve their
skills and grow in their roles.
3. Employee Relations
- Managing relationships between
employees and addressing any
issues or conflicts.
4. Compensation and Benefits
- Setting salaries, wages, and
providing benefits like health
insurance and retirement plans.
5. Performance Mangement
- Evaluating and managing employee
performance to ensure they meet
their job goals.
6. Compliance
- Ensuring the organization follows
labor laws and regulations
Topic 2: Historical Breakthroughs
1890-1910
-Frederick Taylor introduced a
management approach known as
scientific management that focuses
on the idea of scientific selection of
employees based on their capabilities.
This system provides that workers will
be paid additional compensation
when they exceed the standard level
of output for a given job, with the aim
of motivating them.
1910-1930
- Most companies started to develop
departmental units focused on
maintaining the well-being of
employees.
- The field of industrial psychology,
together with the beginning of World
War I, led to the development of
employment tests and selection
techniques.
1930-1945
- During this period, the Hawthorne
Studies started to have a
tremendous effect on management
studies and principles such that
much attention was given to
personal and social interactions in
the workplace that affect and
influence worker productivity and
level of performance.
-Hawthorne Studies , highlighted the
importance of social factors and
employee morale in productivity,
this movement emphasized the
need for better interpersonal
relationships and employee
satisfaction.
- The Hawthorne studies were a series
of studies done between 1920s and
1930. This period sparked an
increase in the importance of the
social and psychological
relationships in the workplace.
Evaluations of the studies led
researchers to believe that "human
relations" greatly influence workers'
level of satisfaction and productivity
1945-1965
- This period marked the birth of
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Relations

Human Resource Management: PSY 311 An Overview Topic 1: Defining Human Resource Management Human Resource Management

  • the use of individuals to achieve organizational objectives, with managers at all levels dealing with HR matters
  • a critical business function, requiring attention from upper management
  • the practice of managing people in an organization Challenges faced by HR Professionals: Changing workforces; Government regulations; Technological revolutions; Global competition 1. Recruitment and Hiring
  • Finding and hiring the right employees for the company. 2. Training and Development
  • Helping employees improve their skills and grow in their roles. 3. Employee Relations
  • Managing relationships between employees and addressing any issues or conflicts. 4. Compensation and Benefits
  • Setting salaries, wages, and providing benefits like health insurance and retirement plans. 5. Performance Mangement
  • Evaluating and managing employee performance to ensure they meet their job goals. 6. Compliance
  • Ensuring the organization follows labor laws and regulations Topic 2: Historical Breakthroughs 1890-
  • Frederick Taylor introduced a management approach known as scientific management that focuses on the idea of scientific selection of employees based on their capabilities. This system provides that workers will be paid additional compensation when they exceed the standard level of output for a given job, with the aim of motivating them. 1910-
  • Most companies started to develop departmental units focused on maintaining the well-being of employees.
  • The field of industrial psychology, together with the beginning of World War I, led to the development of employment tests and selection techniques. 1930-
  • During this period, the Hawthorne Studies started to have a tremendous effect on management studies and principles such that much attention was given to personal and social interactions in the workplace that affect and influence worker productivity and level of performance.
  • Hawthorne Studies , highlighted the importance of social factors and employee morale in productivity, this movement emphasized the need for better interpersonal relationships and employee satisfaction.
  • The Hawthorne studies were a series of studies done between 1920s and
  1. This period sparked an increase in the importance of the social and psychological relationships in the workplace. Evaluations of the studies led researchers to believe that "human relations" greatly influence workers' level of satisfaction and productivity 1945-
  • This period marked the birth of

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union membership that gave PSY 311 considerable importance to employee-employer relationships, it was also during this period that pay and benefits programs slid in a very notable value as organized unions bargained for paid work leaves, health and welfare coverage 1965-

  • The Civil Rights Act of 1964 reached

its highest point when it prohibited discriminatory practices based on an individual's age, sex, color, religious affiliation, race, and physical or mental disabilities. Employers were advised to adhere to equal employment opportunity provisions and take affirmative steps to avoid workplace discrimination 1985-present

  • Diverse labor force, globalization,

and strategic HRM functions were three pressing concerns during this period. Employers' primary aim is to effectively cope with the intense demands and effects of change, competition and job efficiency. Technology and Globalization

  • The rise of technology, such as HR

software and data analytics, transformed HR practices. Globalization also increased the complexity of managing diverse and distributed workforces. Topic 3: Best Features of HRM Human Resource Management

  • a continuous method for managing

employees' work-related activities and developing their potential to become effective individuals. Best Features of HRM:

1. It is prevalent in nature - HRM is continuously present and

carried out in all operational and functional areas of management within an organization

2. It is dynamic - Human Resource Management isn’t

stagnant. It does not rely on written rules and policies to address issues.

- HRM focuses on what can be done

via reasoned, and well-informed decisions.

- HRM continually looks for methods

to alter circumstances and occurrences for the improvement of the company and its people.

3. It is individually-oriented - With HRM, every employee of the

company is treated as a human being that is worthy of respect and understanding. Human Resource Management works to bring out the maximum potential of each employee by making sure employees consistently receive the chance to acquire new abilities through development, training, and other productivity improvement programs

4. It is employee-oriented - In HRM, employees are seen as

valuable assets of an organization. Therefore, recognizing employees for their contributions to the success of the organization is a powerful motivator to raise the level of work performance.

5. It is forward looking - The HRM function of an organization

must be able to predict and evaluate the labor requirements for a specific time period in order to be successful. With this, the management will be reassured that only the capable, motivated candidates with the appropriate qualifications are joining the organization

6. It is growth oriented - Every organization has its

organizational goals in order to

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the opportunity to capitalize on their PSY 311 strengths and overcome identified deficiencies, thereby helping them to become more satisfied and productive employees

4. Compensation

  • The issue of fair pay has been a

longstanding concern for management, unions, and workers, with a well-designed compensation system ensuring employees receive adequate and equitable rewards

  • The term compensation includes the

total of all rewards provided to employees in return for their services. The rewards may be one or a combination of the following:

  1. Direct Financial Compensation
    • Core Compensation
    • Pay that a person receives in the

form of wages, salaries, commissions, and bonuses.

  1. Indirect Financial Compensation
    • Employee Benefits
    • All financial rewards that are not

included in direct compensation, such as paid vacations, sick leave, holidays, and medical insurance

  1. Nonfinancial Compensation
    • Satisfaction that a person receives

from the job itself or from the psychological or physical environment in which the person works

5. Safety and health

  • These aspects of the job are important

because employees who work in a safe environment and enjoy good health are more likely to be productive and yield long-term benefits to the organization

- Safety: involves protecting employees

from injuries caused by work-related accidents

- Health: refers to the employees’

freedom from physical or emotional illness

6. Employee and labor relations

  • Businesses are required by law to

recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them. In the past, employers often favored union-free environments, but today, most firms prefer a union-free environment.

  • Labor Relations: the human

resource activity representing employees, handles collective bargaining, and is often referred to as labor relations

  • Internal Employee Relations :

comprise the HRM activities associated with the movement of employees within the organization such as promotions, demotion, termination, and resignation

7. Human Resource Research - not a distinct function in HRM - encompasses all functional areas

and the entire work environment.

  • It can help identify the type of

worker most likely to succeed in a firm's culture, identify causes of work-related accidents, and identify causes of problems like excessive absenteeism or grievances.

  • This research is essential for

developing a productive and satisfied workforce. Interrelationships of Human Resource Management Functions All HRM functions are interconnected, and decisions in one area can impact others. For instance, a firm's focus on recruiting top talent but neglecting compensation can waste time, effort, and money. A safe and healthy work environment is crucial, and below-market wages can lead to employees leaving for higher wages. Topic 5: Dynamic HRM Environment All HRM functions are interconnected, and decisions in one area can impact others. For instance, a firm's focus on recruiting

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top talent but neglecting compensation PSY 311 can waste time, effort, and money. A safe and healthy work environment is crucial, and below-market wages can lead to employees leaving for higher wages. Environmental Factors:

1. Legal Considerations

  • A significant external force affecting

HRM relates to federal, state, and local legislation and the many court decisions interpreting this legislation.

  • For example, the Age Discrimination in

Employment Act is a federal law protecting older workers from illegal discrimination. Presidential executive orders significantly impact HRM, affecting the entire spectrum of HR policies. Legal considerations, court decisions, and executive orders will be described in the appropriate chapters.

2. Labor Market

  • Potential employees located within the

geographic area from which employees are normally recruited comprise the labor market. The capabilities of a firm’s employees determine, to a large extent, how well the organization can perform its mission. The labor market is always changing, and these shifts inevitably cause changes in the workforce of an organization.

3. Society

  • Society may also exert pressure on

HRM. The public is no longer content to accept, without question, the actions of business. To remain acceptable to the general public, a firm must accomplish its purpose while complying with societal norms.

  • Ethics : the discipline dealing with

what is good and bad, or right and wrong, or with moral duty and obligation.

  • Corporate social responsibility

(CSR) : closely related to ethics. CSR is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves

4. Political Parties - Closely related to society, but not the

same, are political parties. The Democratic and Republican parties are the two major political parties in the United States. These parties often have differing opinions on how HRM should be accomplished.

  • For example, Democrats favor

government regulation to ensure minimum wage and health insurance for all employees, while Republicans advocate for business flexibility, believing in the Fair Labor Standards Act and Patient Protection Affordability and Accountability Act

5. Unions - Wage levels, benefits, and working

conditions for millions of employees reflect decisions made jointly by unions and management.

  • A union consists of employees who

have joined together for the purpose of negotiating terms of employment such as wages and work hours. The United Auto Workers is an example of a large labor union. Unions are treated as an environmental factor because, essentially, they become a third party when dealing with the company

6. Shareholders - The owners of a corporation are

called shareholders. Because shareholders, or stockholders, have invested money in the firm, they may at times challenge programs considered by management to be beneficial to the organization.

  • Stockholders are wielding

increasing influence, and management may be forced to justify the merits of a particular

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  • One must recognize that today's PSY 311 workforce comprises several generations, each with a different set of values, aspirations, and each with a unique perspective and attitude towards work. 4 Categories of Generations: Silent Generations
  • Born before 1946
  • The generation that is the so-called veterans who entered the workforce around the 1950s and early 1960s. - Since they are already old, they have since long retired and are unheard of.
  • Known to be loyal to the organization Baby Boomers
  • Born between 1946 and 1959 or born after the second world war.
  • They are also the people who never experienced hardships of the war days
  • Known to be aggressive, ambitious and loyal to their careers Generation X
  • Born between 1960 and 1979 before the advent of the Information Age. They are usually concerned with their work/life issues.
  • Born between 1960 and 1979 before the advent of the Information Age. They are usually concerned with their work/life issues. Generation Y
  • Born between 1980 and 2008
  • Otherwise known as the Nexters , these are the generations who love the modern gadgets of the Information age like headphones, yoga mat, laptop, designer coffee, Blackberry, Digital camera and IPod
  • They are known for talking back to their bosses, are ambitious, demanding and questions everything. - According to the article written by the Fortune magazine in May 28, 2008 , nexters are self- absorbed, gregarious, multitasker, loud, optimistic, and pierced. - The most high-maintenance workforce but also, according to Bruce Tulgan, the most high performing workforce in the history of the world
  1. Rapidly Changing Technology
  • The advent of computers has fundamentally changed jobs. Automation has eliminated huge numbers of jobs in manufacturing, finance, sales and marketing, and administration and human resources
  • it dramatizes the impact of advanced technology and communication on the workflow and productivity of the organization especially on its human resources
  • companies must invest millions of money in training and development to update their employees’ skills to keep pace with the technology, organizations must hire more skilled workforce and redesign jobs
  1. Emphasis on Increased Productivity
  • Because of the global competition, companies need to manage their labor costs more carefully. They do this by:
  • " Increasing productivity ": Getting more work done with the same or fewer resources.
  • "Eliminating redundant jobs ": Cutting jobs that are no longer needed.
  • "Jobs which have no value": Removing positions that don't contribute to the company's success
  1. New Modality of Employment – Outsourcing
  • Most business organizations today, wherever possible, prefer to adopt

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flexibility in the acquisition of PSY 311 human resources.

  • Firstly, companies that depend on the cyclical demands of their products or services must also be flexible in their hiring practices.
  • Secondly, it is not easy under our laws to terminate the services of employees when no longer needed. Employees, whether casual or temporary, can only be terminated for just cause or authorized causes. This prompted some employers to resort to outsourcing their temporary employers from labor service contractors
  • Outsourcing is the practice of hiring external organizations or individuals to perform tasks, services, or functions that would typically be handled by the company's own employees.
  • Companies often outsource to reduce costs, access specialized expertise, or focus on their core business activities. Outsourced tasks can range from IT services and customer support to manufacturing and administrative functions
  • Outsourcing has changed the human resource dimension in many organizations. As a result, some employees are laid off, some are hired on a contractual basis while some others are on a fixed or definite period of employment
  1. Flatter
  • Flattening of organizations improves productivity, efficiency, and communications.
  • Flattening an organization reduces hierarchical levels, leading to improved communication, faster decision-making, and increased employee autonomy, enhancing productivity and efficiency by streamlining processes and empowering employees to act more quickly and effectively.
  • In a flatter organization, people are expected to produce more using fewer resources.
  • Multitasking is required as they are asked to perform a variety of ever- changing roles, taking new responsibilities, and significantly changing the job contents of the incumbents
  • The restructuring of organizations impacts on human resource management in many ways:
  1. HR must develop and implement policies to minimize the pain in downsizing. The policies need to set standards from communicating the termination to affected employees to severance packages.
  2. Those being given the so-called “pink paper” (the euphemism for layoffs), must be let go with dignity. Organizations with moral conscience should include in their severance agreements or offers transitional training, outplacement assistance, or extended benefits.
  3. Extreme care must be addressed to remaining employees. Security of tenure is jarred. Assurances of no more layoffs sometimes are taken with disbelief among the survivors. Questions of who is next would be uppermost in their minds. Through effective human resource management, an organization should be able to keep its staff pacified, assuaged and productive through the difficult transition Topic 7: Differences between Personnel Management and HR Management Personnel Management (PM) and Human Resource Management (HRM) differ when it comes to the method of finishing the work or task necessary for attaining an organization's goals.

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PSY 311

THE CONSTITUTIONAL AND LEGAL

FRAMEWORK

The constitutional and statutory provisions protecting labor are derived from the:

  • Police Power: the right of the state to regulate labor relations for the general welfare and to maintain industrial peace; and
  • Social Justice: to ensure protection of the weaker social partner Article II, Section 18
  • “The state affirms labor as a primary socio-economic force. It shall protect the right of workers and promote their welfare.” The Constitutional Basis
  • The Constitution protects the rights of employees to forms unions, associations or societies for purposes not contrary to law. Declaration of Principles, Article XII, Section 3 Labor Policies
  1. The state shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all.
  2. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations and peaceful concerted activities , including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.
  3. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in setting disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace.
  4. The State shall regulate the

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relations between workers and PSY 311 employers , recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to the expansion and growth. Statutory and International Basis of Right to Self-Organization Article 211: the labor code reinforces this constitutional right to self- organization

  • two GENEVA CONVENTIONS ratified by

our state and thus, become part of the law of the land, guarantee workers the right to self-organization

  • “Every worker has the right to self-

organization, i.e., to form or to join any legitimate workers' union, free from interference of their employer or the government. All workers may join a union for the purpose of collective bargaining and is eligible for union membership on the first day of their employment” International Labour Organization (ILO)

  • a United Nations agency whose

mandate is to advance social and economic justice by setting international labour standards.

  • Founded in October 1919 under the

League of Nations, it is one of the first and oldest specialized agencies of the UN. ILO has 187 member states: 186 out of 193 UN member states plus the Cook Islands. It is headquartered in Geneva, Switzerland , with around 40 field offices around the world, and employs some 3,381 staff across 107 nations, of whom 1,698 work in technical cooperation programmes and projects.

  • The ILO's standards are aimed at

ensuring accessible, productive, and sustainable work worldwide in conditions of freedom, equity, security and dignity ILO Convention 98 (Right to Collective Bargaining)

  • This fundamental convention provides

that workers shall enjoy adequate protection against acts of anti-union discrimination , including requirements that a worker not join a union or relinquish trade union membership for employment, or dismissal of a worker because of union membership or participation in union activities.

  • Workers' and employers'

organizations shall enjoy adequate protection against any acts of interference by each other, in particular the establishment of workers' organizations under the domination of employers or employers' organizations, or the support of workers' organizations by financial or other means, with the object of placing such organizations under the control of employers or employers' organizations.

- The convention also enshrines the

right to collective bargaining. THE SALIENT POINTS OF THE LABOR CODE

  • The Labor Code of the Philippines

stands as the law governing employment practices and labor relations in the Philippines.

  • It is divided into SIX MAJOR PARTS :
    1. Pre-employment
    2. Human Resource Development

Program

  1. Conditions of Employment
  2. Health, Safety and Social

Welfare Benefits

  1. Labor Relations
  2. Post- Employment

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Christmas bonuses and 14th-month PSY 311 pay. CONDITIONS OF EMPLOYMENT:

- Book III, Title I, discusses the rules on normal hours of work – i.e. 8-hour work day, 48 hour workweek, compensable working time, meal periods, night shift differential, overtime work, overtime pay, weekly rest periods, premium pay, service incentive leave, service charges, among others. Managerial employees are exempted or excluded from the coverage of these benefits. LABOR RELATIONS: - Book V, Title I, discusses the rules on right to self-organization, labor organizations, legitimate labor organizations, bargaining unit, bargaining representative, unfair labor practice by the employer, unfair labor practice by labor organizations, collective bargaining, collective bargaining agreement (CBA), among others. Managerial employees are exempted or excluded from these **provisions.

  1. Supervisory Employees**
    • are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment.
    • commonly known as supervisors , are employees who are generally considered as members of the managerial staff because they are granted the authority to recommend managerial actions, provided that the exercise of such is not merely routine or clerical in nature but requires the use of independent judgment.
    • Similar to managers, supervisors are also not entitled to overtime, night shift differential, and holiday pays. But they are also given a monetary incentive that is equivalent to a 13th month pay. 3. Rank and File Employees
  • Rank-and-file employees are those who do not occupy high-level positions in a company. They are entitled to most, if not all, of the mandatory employee benefits provided by the Labor Code, from night shift differential and overtime pay to work leaves and organization of labor unions. TYPES OF EMPLOYEES IN TERMS OF TENURE
  • Employee tenure, or job tenure, is the length of time a person has worked for a particular employer Regular or Permanent Employment
  • is when an employee performs activities that are necessary or desirable to the business/trade of the employer. Regular employees enjoy the benefit of tenure and cannot be terminated for causes other than those provided by law and only after due process.
  • Most companies in the Philippines require their new employees to undergo probationary employment for a maximum of six (6) months to evaluate their skills and performance and determine if they are able to meet the reasonable standards to become permanent employees. Casual Employment
  • refers to a situation in which an employee is only guaranteed work when it is needed. There is casual employment when an employee is engaged to perform work that is merely incidental to the business

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of the employer, and such work is PSY 311 for a definite period made known to the employee at the time of his engagement.

  • However, employees that have rendered service for at least one (1) year in the same company, whether continuous or not, shall be considered regular employees with respect to the activities they perform and will continue rendering service while such activities exist in the company [Art. 295] Project Employment
  • is when an employee is hired for a specific project and the duration of employment is defined by the scope of work and/or length of the project. A project employee can acquire the status of a permanent employee if they are continuously rehired to undertake other projects for the company or the tasks they perform are necessary and indispensable to the usual operations of the company Fixed-Term Employment
  • when an employee is hired under a contract which specifies that the employment will last only for a definite period. The decisive determinant in fixed-term employment should not be the activities that the employee is called upon to perform, but the day certain agreed upon by the parties for the commencement and termination of their employment relationship
  • Fixed-term employment in the Philippines is highly regulated and subject to the following guidelines: o be voluntarily agreed upon by the parties without coercion or improper pressure to the employee o employer and employee dealt with each other on more or less equal terms with no dominance exercised by the former over the latter Probationary Employment
  • shall not exceed 6 months from the date the employee started working. An employee who is allowed to work after a probationary period shall be considered a regular employee [Art. 296].
  • like a regular employee, enjoys security of tenure. However, in cases of probationary employment, aside from just or authorized causes of termination, an additional ground is provided under the Labor Code, i.e., the probationary employee may also be terminated for failure to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of the engagement. Thus, the services of an employee who has been engaged on probationary basis may be terminated for any of the following: (1) a just or (2) an authorized cause (3) when he fails to qualify as a regular employee in accordance with reasonable standards prescribed by the employer [ G.R. No. 177937] Health, Safety, and Social Welfare Provisions
  1. To keep in the employer’s establishment such as first aid medicines and equipment as the nature and conditions of work may require, in accordance with such regulations at the DOLE shall provide. Employer shall take steps in training of sufficient number of employees in first-aid treatment.
  2. To have services of a full-time registered nurse when number of employees exceeds 50 but not more than 200. When employer does not maintain hazardous workplaces, he can

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operation, and that of the PSY 311 employee, on the date of his employment Employees Compensation Commission: agency in charge in the administrations of the state insurance funds. 5 EX-OFFICIO MEMBERS OF ECC :

  1. Secretary of Labor and Employment
  2. GSIS General Manager
  3. SSS Administrator
  4. Chairman of the Philippine Medical Care Commission
  5. Executive Director of the ECC secretariat and two appointee members