Instructional Material Human Resource MGT
Instructional Material Human Resource MGT
Instructional Material Human Resource MGT
Instructional Material
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Introduction
In this Instructional Material, students will learn that Human Resource Management (HRM) is
the organizational function that manages all of the issues related to the people in an
organization. That includes but is not limited to compensation, recruitment, and hiring,
performance management, organization development, safety, wellness, benefits, employee
motivation, communication, policy administration, and training.
The department members provide the knowledge, necessary tools, training, administrative
services, coaching, legal and management advice, and talent management oversight that the
rest of the organization needs for successful operation.
In the light of the above principles, this Instructional Material will aid and assist students to be
responsible for ensuring that the organization has an overall mission, vision, and values that
are shared and provide an overarching reason for employees to want to work for their
organization. These elements can be inspirational and help employees feel as if they are part
of something that is bigger than themselves.
On the academic side, students will be exposed to different HRM function that are expected
to add value to the strategic utilization of employees and to ensure that employee programs
recommended and implemented impact the business in positive measurable ways.
They will also uncovered the current trend in HRM, i.e. moving away from traditional
personnel, administration, and transactional roles, which are increasingly outsourced in this
current business practices.
Finally, students will be required to explore the evolution and development of HRM over the
years which is now usually involves contributing to a company's strategic direction and using
metrics to measure efforts and demonstrate value.
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Table of Contents
Lesson 8 – Compensation
o Types
o Objectives
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Course Outcomes
After the completion of this course, students will have a better understanding of the nature,
concepts, and aspects of personnel management.
They will have a better appreciation of the role played by human resource management in
any organization.
Students’ understanding of the need to compensate employees for their contributions to the
organizations.
And finally, students are competent enough to identify the nature of employees’ needs, of
labor unions, and of grievance and disciplinary actions in order to bring about a
successful integration.
Learning Outcomes
At the end of this course, students should be able to:
1. Gain insights on how one can effectively make use of principles, tenets, and
aspects there at.
2. Gain further knowledge of the procedures used in ensuring quality and quantity
personnel requirements of the organization.
4. Understand and explain the need for training and development of personnel.
5. Realize no one is a perfect fit at the time of hiring and some training and education
are needed to develop and enhance the potential of the employees.
6. Gain further knowledge of the major categories of training programs and the common
methods of training used in the Philippines.
8. Acquire greater knowledge of the different types of compensation, the general pay
policies, the factors that have an important bearing on the final pay determination.
9. Realize the need for a fair and equitable compensation in any business firm or
organization.
10. A broad understanding of the need to integrate interests of employees, unions and
organization in any enterprise or firm.
Course Materials
Computer Unit & Mobile CP unit with Internet connection, bond papers, notebook, note pens,
other books and references.
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LESSON 1 – Principles
Human Resource Management is defined as the direction and coordination of the human re-
sources in an organization in order to attain the organizational goals with the least effort, fric-
tion and with proper regard for the well-being of the personnel. Thomas G. Spates, a noted
writer says:
Good human resource administration helps individuals utilize their capacities to the fullest. It
follows, therefore, that when people are treated both as individuals and groups, they will give
their best to the organization of which they identify themselves as a part.
Figure 1
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An analysis of Figure 1 indicates the two main functions of Human Resource Management
namely: managerial functions and personnel operative functions. Management functions in-
cludes that of planning, organizing and directing and controlling while specific personnel op-
erative functions consist of personnel planning; recruitment; selection; placement; training
and development; performance rating, compensation; maintenance and labor relations.
A careful look at Figures 1 and 1.1 will show that Human Resource Management has to be
undertaken in such a way that:
1. Objectives and goals for which the organization is established are attained
econom- ically and effectively;
2. Objectives of all levels of personnel are served to the highest degree; and
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Lesson 2 – Structure
The structure of Human Resource Management consists of the Career system and Classifi-
cation of Positions.
A. Career System
Career is the term used to denote the progression of an individual in a field of work all
throughout his employable years. It sometimes means devotion to a series of
employment loosely related to each other and which usually implies some degree of
success.
The importance of the development of the career system pattern recognizes service
as a part of a career. There is the ongoing movement of persons in the professional
level, research and managerial fields, among industrial, educational and public places of
em- ployment which should encourage advancement towards progression in the field of
per- sonnel administration. The numerous conditions imposed by virtue of this
limitations of given occupations, the sizes of organizations, the personal interests of
individuals, the methods of compensation, the status, tenure and other factors influence
the patterns of the career system.
a. Scope
b. Limitation on entrance, and
c. Orientation for reward and rank.
The career system is built on the idea that men are going to stay in a certain pro-
gram, or they may be encouraged to or permitted to move among various programs
within the jurisdiction of the organization. The scope of a career system may be such
that it may permit or encourage movement within its organization’s jurisdiction.
With the advent of modern technology nowadays, people have a choice where to
find their careers. A common limitation, however, is how far and wide can a person move
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in the scope of his own occupation. These days, specialization sets the scope with which
to use one’s education, experience, training and other factors that can be best suited in
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order to serve competently. Both in the private and government sectors, many chances
of movement for occupations are available.
On the government sector, however, there are certain stumbling blocks such as:
The closed career system is characterized by the low maximum age limits for
entrance and the filling up of upper-level positions from within the organization. The
military services as well as foreign service can be cited as example. The closed sys-
tem includes provision for “selection out”. In the military service, officers reaching a
certain intermediate or moderately high rank must meet certain standards to merit fur-
ther promotion or be retired prematurely from the service. This separation takes
place after the officer has been “passed over” for promotion twice or thrice. In this
case, the solution would be to have a more selective promotional scheme
commensurate to the actual number of higher posts. This will set aside the idea that
total separation from the service is less ignominious than not being promoted.
The open career system type permits entrance at any or all grade levels (by
rank or position). Qualification requirements and competition prescribed for each cat-
egory is the governing factor for entrance. Those who have been in the service and
are well-versed and have varied experiences can have a natural advantage. The in-
fusion, however, of new blood at the upper and middle levels with the right qualifica-
tions and compatibility is not precluded.
When orientation as to rank and status is concerned, the focus of the plan is
on the assignment = the job to be performed and the fitting of an individual in the job.
The careers of individuals derive from a succession of assignments which may cut
into/across different departments or programs – as long as the individual under speci-
fied and varied modes of competition meets the demands of each post assumed.
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A significant aspect of the job-oriented model is the manner in which compensation of the
employee is affected. The pay here is synchronized with the classes of positions – equal pay
for equal work. Remunerations on the basis of work categories and levels are conducive to
bargaining with unions.
On the other hand, the rank-in-corps has a feature that puts tenure at the level above the
position held and in the service as a whole. When a unit is re-organize or posts are
abolished, the people in the positions are not adversely affected as in the other type. The
status and rank are maintained and readied for the next assignment. The inherent
characteristic of the rank idea is that the status (the pay, prestige, rights) resides in the
individual and not on the nature of his position.
KEY CONCEPTS
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LESSON 3 – Classification of Positions
On the result of job standardization is the systematic use of titles that reflect actual
duties to be performed. The functions cannot be performed unless titles and their definitions
are realistic. This is important not only with pay matters but in matters of selection,
placement, promotion, transfer and training.
The duties classification plan is not the same as the pay plan. Compensation
structure is based on the duties classification.
Federal employees in America sought reforms for their chaotic pay situation as
they advocated “equal pay for equal work”. This was a major motivation in the establish-
ment of the position classification concept. Other factors that led to its adoption were the
merit system, the reform progress and an increasing enthusiasm for job analysis. There
came about a demand for an increased government efficiency which opted for reforms
leading to a renewed interest in government problems. The reform program led to an
expert selection of personnel which broadly contributed to the broader aims of efficiency
and economy. The new principle of centralized financial control demanded classification
of positions if full possibilities were to be realized.
Hand in hand, during and after World War I, the management of large industries
was taking up job analysis with enthusiasm in the desire to systematize and improve fac-
tory operations down to the task specified for the individual worker’s job. Job analysis
therefore, in industry, was first used to increase efficiency and production and later its
use for standardization and equality of pay became evident. Job analysis then led to job
eval- uation and classification.
What determines the general characteristic of the classification system is the em-
phasis put on expertise and on the selection of prior-trained technicians and workers with
special skills.
If positions are the bases for classification, the class is the operating unit. It is a
group of positions sufficiently alike with respect to the duties and responsibilities to justify
treatment in selection, compensation and other employment processes and sufficiently
different from positions of other classes as to justify different treatment in one or more of
these respects. The class may be a group of positions or a class may sometimes consist
of but one position where no other of the same kind exists in the service being classified.
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The necessary information may be secured by various means and from a number
of sources. Basic facts regarding the general organizational set-up, broad lines of
author- ity and similar data may be obtained from previous studies. The most important
data can be secured by interviewing organizational heads, administrators and
supervisors and by studying the individual positions themselves. Because of the
complexity of the classifica- tion task, the questionnaire method of obtaining data is
recommended.
After the job analysis and descriptions are done, the classifying agency is
equipped with a blueprint of each position and then the actual arrangement of
positions into classes can be done. Any classification consists of the systematic
arrangement of items into groups upon the basis of common or distinguishing factors,
to be able to grasp all the details. The aim is to arrange the variety of individual
positions of various sorts upon the basis of similarities and dissimilarities – to
distribute positions into clas- ses and classes into such occupational groups as are
necessary for purposes of easy use and reference.
After the classes are established, the task of writing on class standards or spec-
ifications is done. The objectives are to define a class to provide a clear and
sufficient guide for the allocation of positions or classes. The specification
standardizes titling and includes a statement of minimum and desirable qualifications
necessary to per- form the work.
5. Steps in classification
1. Analyzing and recording the duties and other distinctive characteristics of the po-
sition to be classified;
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2. Grouping the positions based on their similarities;
3. Writing such standards or specification for each class or position that will indicate
its character definition and boundaries and serve as a guide in allocating
individual positions to the class and in recruitment and examinations and
4. Installation by allocating individual positions to the classes thus described.
The first three have to do largely with the setting of the plan while the fourth with
the initial step in administration. The processes are repeated in the day to day admin-
istration of position classification.
Since the classification plan is useful to the extent that is understood and ac-
cepted by management and employees, it is important that all parties have a real
share in its development and execution.
The adequacy of the information with respect to individual positions plays an im-
portant role in the development of the classification plan, the determination of lines of
promotion and the application of the principle of “equal pay for equal work”.
The classification plan may be adopted preferably by administrative action provided there is
a commitment by the legislative body to set rates or to authorize the payment of rates in
accord- ance with the plan. The Central personnel authority is the logical agency of general
admin- istration. It is charged with the functions of recruitment, examination and the like and
usually recommends or sets pay rates.
In the promulgation of class standards, the give and take attitude in the discussion of specifi-
cations will lead to objectivity and impartiality in the plan application. This discussion should
take place before determination of the allocation of individual positions to each class.
Sound administration provides provision for facilities for hearing grievances and appeals to
enable the employee to be heard if he has doubts, thus enhancing employee cooperation.
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KEY CONCEPTS
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LESSON 4 – Recruitment and Selection
SCREENING DEVICES:
Application blanks
Reference Checks
The Individual Interviews
The Organization
Tests
Physical Examination
Introduction
Figure 2
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Some authors use the word staffing to refer to the different positions of the
organization with competent and qualified personnel which includes selection, training
development of manpower and the like so that they can perform their task effectively. For
instance, Koontz and O’ Donnell describe staffing as manning and keeping the positions
provided for by the organizational structure.
To achieve the goals and objectives of the organization or firm, careful selection of
employees through the use of scientific recruitment and selection techniques is a must. Em-
ployees with right qualifications for the job are more economical for the company because:
Recruitment is securing, through planned and systematic effort, the right quantity and
quality of people needed to meet present and future manpower requirements of the
company. It is she process through which prospective applicants are induced to apply in
order that their qualifications can be evaluated through sound screening and selection
procedures. Its main purpose is to establish a “pool” of qualified candidates to meet the
needs of the organization. It focuses on strategies of attracting the best qualified persons for
specific positions. Recruit- ment as a primary responsibility of the human resource
department and can be time-consum- ing.
The process begins by establishing policy guidelines during the planning process that
direct specific activities such as developing recruitment resources, implementing application
procedures, establishing formal interviews and evaluating procedures and designing appro-
priate staff involvement strategies for each of these activities. The process of recruitment
consists of:
The two ways of recruiting may be done internally or externally. If done internally, it
can be handled centrally or in-house by departments and agencies. In this case, the line
management estimates new hiring needs and the personnel unit determines the legal
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require- ments, evaluates current staff skills in relation to hiring needs, and decides on the
extent to
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Filling a job opening from within has the advantages of stimulating preparation for
pos- sible transfer or promotion, increasing the general level of morale, and providing more
infor- mation about job candidates through analysis of work histories within he organization.
An internal search of the computer personnel data bank can flag personnel with minimum
qualifi- cations for the job opening. Dissatisfaction in the use of skills inventories have led to
the use of a more personalized job posting and bidding system. Which provides flexibility
and greater control over the career progress of the employee and results in the better
matching of em- ployee and job which is beneficial to the employer.
The posting period is usually about a week and the final decision for hiring is
completed within four weeks. Among the guidelines used for hiring are:
External recruitment is practiced for lower-entry jobs, for expansion and for positions
whose specifications cannot be met by present personnel. Among the outside source are:
advertising employment agencies, recommendations of present employees, schools and col-
leges, placement offices, labor unions, casual applicants, teachers/professor job leads, those
who took and passed the civil service tests, and relatives of family-owned firms and others.
The recruitment program should be carefully planned. Some companies have discov-
ered that at least three sources of personnel provide them with most of their better
employees namely: present-employee recommendations, high school referral and
newspaper advertising. It terms of job survival rates, a study group reported that employee
referral from banks and insurance companies was a consistently good source fo new hirees,
while newspaper ads and employment agencies were among the worst. On the other hand,
for high performing research scientists, journal advertisements and convention contracts
were the best sources, while newspaper ads and college placement offices produced poor
results.
Selection is the process of determining who from among the job applicants should get
the job. This process determines the success or failure to get productive and satisfied per-
sonnel. It also involves the use of job analysis to decide on the kind of employee needed.
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From this analysis, job description and job specifications are used to find a match of job
duties, responsibilities, purposes and conditions with knowledge, skills and human qualities
required to perform a job satisfactorily.
Organizational practices differ as to the recruitment and selection procedure for per-
sonnel. Small organizations/firms may simply see the job applicant in a face to face meeting
and the employer may ask for some information and documents such as a police clearance,
biographical data, transcript of school records or references. When the employer/owner de-
cides to hire the applicant, and the latter starts working in the organization, the recruitment
and selection process is over.
KEY CONCEPTS
At times, though after passing the physical examination, the candidate is sent to the
immediate supervisor for a “third interview” in which case the supervisor concerned is given
the right to pass judgment upon the immediate. This is done, otherwise the supervisor
cannot be held accountable for the performance of the newly hired personnel.
Thus, the “equality of authority and responsibility” is preserved. Also, since the quali-
ties that are generally appraised in an interview are highly intangible, such as personality,
ability to get along with others and leadership potential, it is helpful to have an appraisal by
both the staff employment interview and the supervisor, who is better acquainted with the
actual job conditions.
In executing the personnel unit screening functions, the emphasis tends to be more
on formal qualifications and general suitability. When the supervisor takes over, the
emphasis tends to switch toward more specific job oriented worker characteristics such as
raining and relevant past experiences.
Placement is the function of making a new employee familiar with his new job and
work environment. Proper placement of a new employee is the responsibility of the human
resource manager or human resource department.
It is a decisive step wherein the supervisor determines what the new employee can
do and matches such capabilities with what the job demands imposes and offers. For this
reason, the first placement usually carriers with it the status of probationer. Both the new
employee and the company are on trial.
It is the duty of the human resource manager and his staff to familiarize the new em-
ployee with the company history, organizational creed or philosophy, policies, rules
strategies and regulations. In some companies, the new employee is made to report to the
human re- source department for a familiarization tour prior to actual work. the length of this
familiariza- tion activities commonly called placement of employees’ varies from a day to a
week.
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At the same time, the new employee is given the employees’ manual, printed
materials,
lectures, visual aid presentations covering subjects such as:
1. Company history, objectives, personnel program, policies, strategies, rules and pro-
cedures
2. Career development plan for the new employee
3. Job description, duties and responsibilities
4. Relationship with immediate supervisor and human resource department
5. Rules and regulations covering terms and conditions of employment
6. Payment of salaries or wages
7. Employee benefits provided
8. If the company is unionized, relationship between management and the labor union
One usual practice after the hiring is the requirement for the new hiree to submit his
photograph, provide birth date for identification and record-keeping purposes.
Of late, emphasis has been placed on asking questions that could embarrass and or
harass the applicant. This does not mean though that the firm or company automatically as-
sumes that all information provided on the blank by the applicant is accurate.
The induction function immediately follows right after the hiring the job applicant, that
is after satisfactorily passing the physical examination.
All these topics and many more including parking, grievance procedure, equal
employ- ment programs, holidays, etc. are part of the induction/orientation procedures. And
this is done through some kind of formal or informal program.
It is believed that giving the new employee the “work preview” can improve the
survival
rate in the company. This “work preview” is the first phase of an organized induction program.
The second phase consists of the introduction of the inductee to his fellow
employees. The new hiree is also given a tour of the department, assigned a locker,
informed of lunch schedules and break periods, call-in procedure and etc.
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At times, the hiree is assured of his chances for success; asked to disregard the “haz-
ing game” of older employees and encouraged to approach supervisors for doubts or
problems encountered, in order to reduce anxiety.
The third phase of the induction program is called a follow-up, some weeks later.
This includes an interview conducted by the supervisor concerned or the personnel specialist
to find out employees’ satisfaction with the job and the supervisor’s satisfaction with the em-
ployee.
The more smooth and pleasant the relationship between the supervisor and the em-
ployee, the greater the satisfaction for both and the corresponding effects on performance
and productivity.
KEY CONCEPTS
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LESSON 6 - Training and Development
No organization can choose whether or not to train employees. All new employees,
regardless of their previous training, education and experience need to be introduced to their
new employer’s work environment and to be shown how to perform specific tasks.
Training does not end with the initial orientation of employees, nor is it limited to re-
training for new jobs or altered work methods. People need to be trained and re-trained con-
stantly for the success or failure of any organization depends on the growth of its manpower.
Effective managers are those who can best develop all human resources for the purpose of
achieving organizational objectives.
1. Human beings have the capacity for growth. Everyone in the organization has the
ability to grow and should strive constantly in this direction in order to sustain the
growth of the company or firm.
2. Every individual has unique values. He is a person in his own right, different from
all others and is capable of innovative contributions to the organization.
The chief benefits derived from a well carried out training and development program,
or the rationale for training and development are:
1. It provides new employees with general information that they need about the or-
ganization – about policies, procedures, practices and rules that will affect them
and also about the job on which they will work. All these should be
communicated in a way that can help them feel at home in their new job
environment as quickly as possible.
2. New employees are instructed in the requirements of specific jobs they are to per-
form, as outlined in an accurate and comprehensive job description. Thus, they
learn to measure up to standards of performance in order to increase their value
to the organization at the same time satisfying their human needs for personnel
growth on the job.
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4. Work dissatisfaction, complaints, absenteeism, and turn-over are greatly reduced
when employees are well trained since they experience direct satisfaction associ-
ated with a sense of achievement and the knowledge that they are developing
their inherent capabilities at work.
6. Continued training helps employees to develop their ability to learn new work
meth- ods, and to use new kinds of equipment to meet the challenge of
technological advances.
a. on-the-job
b. apprenticeship
c. learner training
d. training within industry or job instruction training (JIT)
e. outside course
a. conference
b. demonstration
c. drill
d. exhibits
e. panel discussion
f. role playing
g. project study
h. written exercises
i. guided tours
j. individual coaching
k. lecture
l. quiz
m. programmed instructions
n. audio-visual aids
o. computer-assisted instructions
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7. Evaluation of Training and Development activities.
a. Technical
b. Leadership
10. Training helps to improve skills of employees to solve problems and to make deci-
sions.
A sample design of a training program involves six easy steps such as:
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IMPORTANCE OF EVALUATION
Training and development programs are very costly to handle. Management has to
evaluate them to see to it that such programs produced intended results. Evaluation is a
management function. It is usually based on feedback or information on their effects. Evalu-
ation ensures that the programs contribute to organizational goals. Furthermore, it helps
train directors and staff because it collects the data needed to improve every aspect of the
training and development system. Likewise, weaknesses are identified and corrected by
means of negative feedback and strengths and success are amplified by means of positive
feedback.
SPECIFIC PRINCIPLES
Evaluation can be in three forms: Immediate, Intermediate and Ultimate which are of
different levels, namely:
1. Reactions
2. Learning
3. Job Behavior
4. Organizational Repercussions
5. Ultimate Value
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Other variables considered in using results as the bases of evaluation are: 1) Top
management; 2) Trainors and Supervisors; 3) Trainees; 4) Enterprise climate
KEY CONCEPTS
Training Apprenticeship
Development On-the-job training
Apprentice Re-training
Learner
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LESSON 7 – Performance Appraisal
No matter how varied and complex the nature of training and educational programs,
development can still be slow and less effective. It is very important that the employee is
systematically appraised in order to get feedback information concerning the quality of his
performance. All employees have to be appraised of their job performance in some manner
or another.
2. to have a basis for selecting candidates for promotion to better jobs and for making
“merit” increases
3. appraisers are given definite instructions and training on how to make an appraisal
4. the results of the appraisal process are communicated to the employee and provi-
sions is made for appeal in cases of disagreement
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Many of the same systems that are utilized in measuring the worth of jobs (job evalu-
ation) are also used in measuring the work of a person on the job. Some of the most
commonly used performance appraisal system are:
1. Ranking – This is the oldest and simplest system of formal systematic rating
wherein one person is compared with others for the purpose of placing him/her in
a simple rank order of worth.
4. Graphic Scale – This is similar to that of the person-to-person system except that
the degrees on the factor scales are represented by definitions rather than by key
people. Commonly used factors are quantity and quality of work, cooperation,
per- sonality, versatility, leadership, safety, job knowledge, attendance, loyalty,
depend- ability, initiative, etc.
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Other factors considered to have a successful performance appraisal system are: 1) who is
to rate; 2) when to rate; 3) training of the rater; 4) proper and consistent monitoring of the
program itself.
KEY CONCEPTS
Performance MBO
Appraisal Subjective-objective
Ratee Ranking
Graphic Scale
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LESSON 8 – Compensation: Types and Objectives
After employees are finally selected and developed to a point where they meet or
even exceed job requirements, it becomes necessary that they be appropriately and
equitably com- pensated. Factors affecting compensation are many, varied and complex
and management must come to some decisions that would motivate employees in greater
performance and efficiency. While there is no instrument to measure financial compensation
that would be acceptable to both employers and employee, the amount should consider the
prestige or sta- tus (or lack of it) that the person possesses as he seeks to attain individual
organizational and societal goals. In fact, viewed by employees in the National Capital
Region and other urban centers in the country, financial compensation is the basic means to
satisfy basic needs and wants as well as the means to attain that standard of living
economic security needed. And certainly, if the country is to grow, the individual worker or
employee should be able to grow too.
1. Base compensation or basic pay – represents that portion of the wage or salary that
an employee performing a particular job receives. With the use of job analysis and
job description, job evaluation determines the relative value of each job in an
organization or firm, hence, the varying rates of wages or salaries.
1. Non-quantitative methods
a. Simple ranking
b. Grading or job classification
2. Quantitative methods
a. Point or manual
b. Factor comparison
Whichever method is adopted by any organization, the lowest paid job can not be
less than the statutory minimum wage existing at the time. Republic Act No. 6727 of
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1989; The Wage Order No. NCR-01 of October 1990; The Regional Tripartite Wages
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and Productivity Board = the NC=all set minimum wage increases and so the needed
adjustments in the minimum wage rate in any organization.
1. The incentive plan should be simple, understandable and calculable by the em-
ployee;
2. Earnings should vary directly with increased output and efficiency;
3. Earnings should be paid to the employees as soon as possible;
4. Work standards should be carefully developed through systematic studies;
5. Incentive rates should be guaranteed against changes unless there is a change in
method, equipment or specification of material;
6. The basic hourly rate should be guaranteed to the employee regardless of daily
output;
7. The spread between normal incentive earnings and the basic hourly rate should
be sufficient to stimulate greater than normal effort from the employee. This is
normally estimated to be from 30% to 40% above straight hourly earnings.
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6. fringe benefits such as:
a. vacation leave with pay i. educational plan
b. sick leave with pay j. housing
c. medicare benefits k. car plan
d. employee compensation l. maternity leave
e. hospitalization plan m. paternity leave
f. life insurance n. sabbatical leave
g. private pension plan o. emergency leave, etc.
h. Christmas bonus
KEY CONCEPTS
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Lesson 9 – Human Resource Integration - Its Nature and Motivation
With the employee procured, developed and reasonably compensated, what appears
to be a most difficult and frustrating challenge to the management is integration. The term
integration is concerned with the attempt to effect a reasonable reconciliation of individuals,
societal and organization interests. Many significant overlapping of interests exists in society
and consequently deals with the feelings and attitudes of personnel in conjunction with the
principles and policies of organizations. Other related problems do arise such as grievances,
disciplinary actions and labor unions.
Ordinarily, it is expected that an employee would perform his job well if he is properly
placed, trained, and compensated. But in recent years, personnel managers have been con-
fronted with problems of employee attitude and morals. It is not enough that one is able to
work. He must also be willing to work. and managerial activities in the promotion of such
willingness termed as “human relations” ahs to be fair and just. There must be a reasonable
merger of person and organization in order to bring about effective results. Figure 1 indicate
an overlap in Section B which represents activities conducive to both organization and em-
ployee interests. The greater the overlap (B), the more productivity would coincide with em-
ployees satisfaction.
A B C
While some theories suggest that there can be a complete overlap of interests, it is more
probable that there are situations depicted by Sections A & C.
Organizations will require things from employees that they would prefer to avoid such
as assignment to narrow and repetitive tasks, meeting high output standards, acceptance of
managerial decisions and so on. And for this reason, organizations have disciplinary action
program as well as some freedom to dispense with the services of particular employees.
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Em- ployees might desire such things as increased wages, time-off with pay, shorter work
weeks,
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premium pay for overtime, totally safe working conditions but which organization might be
reluctant to provide. Thus, external pressures may come from labor unions and the govern-
ment and thus the personnel manager gets into the picture as the key person to deal with the
problem.
As such, the personnel manager has to know the behavior of the employee, under-
stand it an influence such behavior toward a certain direction. He can do this better if he
realizes that human beings have needs both physiological, social and egoistic.
The physiological or the basic and fundamental needs have to be met and if threatened, this
will give rise to much and strongly motivated activities of an individual. Social needs such as
acceptance, love and affection vary from person to person just as the egoistic needs such as
recognition, dominance, independence and achievement.
Psychologists like Abraham Maslow proposed that the order to priority of fundamental
needs are:
1. basic physiological needs;
2. safety and security;
3. love;
4. esteem;
5. self-actualization
Maslow felt that such a hierarchy of needs helps to explain certain mistakes of man-
agement wherein the organization embarks on an elaborate personnel services program
with- out the basis for a fair and competitive wage structure and therefore the firm merely
wastes its time and money and even fails to appeal to the employees cooperation and
loyalty.
Frederick Herzberg on the other hand, expounded on his “motivated employee theory
which considers both hygienic factors” and “motivators” in the success of management.
Chris Argyris, while in agreement with that of Maslow’s needs and McGregor’s theory
Y, emphasizes several dimensions of maturation through which the person will develop,
char- acterized by increasing activity, independence, develop deeper interests, and capability
of behaving in many ways to satisfy needs.
All the four organizational psychologists have one thing is common – the infinite
human capacity to learn, grow and achieve. Manpower constitutes the greatest resource.
Some of the needs an employee brings to an organization are money, security of job,
congenial associates, credit for work done, a meaningful job, opportunity to advance,
comfort- able, safe and attractive working conditions, competent and fair leadership,
reasonable orders and directions and a socially relevant organization.
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These wants provide the motivational tools that managers could utilize to motivate
be- havior toward desired directions. The motivational force is greatest – if
Thus, as an organization becomes more complex, the managers will have to increas-
ingly stimulate collaboration and cooperation taking into consideration interests and efforts of
all the members of the organization in order to promote or improve organizational climate
otherwise called quality worklife (QWL).
As suggested by the American Center for the Quality of Working Life, (QWL) quality
work life can be both a philosophy or an approach that can permeate many different activities
in the work place.
The Center defined quality of work life improvements as “any activity which takes
place at every level of an organization which seeks greater organizational effectiveness
through the enhancement of human dignity and growth… a process through which the
stockholders in the organization, management, unions and employees – learn to work
together better … to deter- mine for themselves what actions, changes and improvements
are desirable and worthwhile in order to achieve the twin and simultaneous goals of an
improved quality of life at work for all the members of the organization and greater
effectiveness for both the company and the unions.
Some common examples of the QWL program are: adoption of a performance ap-
praisal program, job enlargement and enrichment instead of highly specialized job assign-
ments, joint union-management program to reduce accidents and prevent health problems,
reducing stress in the job, provision for a counselor, painting the walls, improving lighting fa-
cilities, etc. these are all aimed at improving the quality of work life.
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KEY CONCEPTS
38
Lesson 10 – Labor Unions
The successful personnel manager should be able to integrate the interests of the
employees and labor unions with the interests of the organization.
An employees has reasons for joining a union. Union membership is compulsory for
job retention. Another reason for joining a labor organization is the sense of freedom from
arbitrary management action. Through organized and collective force, an employee can feel
independent enough to challenge the actions of superiors in management. The ability to
offer freedom from actual or potential arbitrary management decrees and actions concerning
the industrial lives of the employees is a primary function of the labor union.
Specifically, employees join labor unions/or labor organizations due to the fol-
lowing:
On the other hand, there are several strategies for non-unionization. For instance,
companies may have effective personnel planning, recruitment, selection and placement;
training and development programs for employees; performance evaluation; compensation;
employee maintenance; labor-management relations and the life.
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Types of Unions
Generally, there are two types of labor unions: the industrial and the craft. These are
often known as vertical and horizontal, respectively. The industrial union is vertical because
it includes all workers in a particular company and industry regardless of occupation. It is
therefore a mixture of skills and it lacks homogeneity of crafts. (Ex. Car Workers). The hori-
zontal or craft union is an organization that cuts across many companies and industries. The
members belong to a closely related group of occupations. (Ex. Mechanics/carpenters).
One of the foremost objectives of a labor union is to establish and protect the
existence and security of the organization. There are various types of union security such
as:
1. Restricted Shop – This is a situation or attitude rather than a formal type of shop like
is the union or the closed shop. The legal restrictive situation exists when the man-
agement does what it can to keep the union out.
2. Open Shop – Technically, the restricted shop is an open shop. A true open shop is
one in which there is neither a union present for a management program to promote
nor to keep out of. The employees are relatively free to decide whether or not they
will exercise their legal rights to organize.
4. Agency Shop - It is simply identical with the simple-recognition shop except for one
item. All employees pay union dues whether or not they are members of the union.
6. Modified union Shop - The union shop is a form of compulsory unionism. The em-
ployer may hires but agrees that within a stipulated time the employee may join the
union. A modified union shop provides fro certain exemptions to this rule. Among the
groups that may not be required to join regardless of length of service are those who
object to unions on religious grounds, students and employees who had been hired
prior to the organization of the union.
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7. Union Shop - The grace period for a full union shop can be shorter than 30 days. It
is assumed that all employees are union members.
8. Closed Shop – This is the highest degree of union security. An employee must be a
union member at the time of hiring. The union becomes the only source of labor for
the employer. The closed shop clause does not appear in the contract but it is
present in effect through operating rules, union hiring policy, or management’s
willingness to use the union as a sole supplier of human resource.
OBJECTIVES/ACCOMPLISHMENTS OF UNIONS:
KEY CONCEPTS
Define the following terms briefly:
1. restricted shop
2. open shop
3. agency shop
4. closed shop
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Lesson 11 – Labor Management (Collective Bargaining)
Among the suggested strategies for good labor-management relations are the establishment
of:
1. a policy and philosophy of labor-management cooperation;
2. realistic personnel program;
3. good superior-subordinate relationship; and
4. means to abide the provisions of the collective bargaining agreement by both
man- agement and employees and their labor union.
There are possible ways which can be adopted by management when unions start
bargaining rights. Some of them are:
1. Fighting the union - Management may decide to fight the union but when this
decision is done, it should be in subtle ways. It must be borne in mind that
outright discrimination against union members and the refusal to bargain is
unlawful
2. Armed Truce – The armed truce basis is done on the assumption that the basic
interests of the company and the union are in conflict. Management may
strengthen its position with employees through good personnel programs
stressing loyalty issues.
3. Working Harmony - Management may structure its dealings with the union so
that a relationship of “working harmony develops”. It should recognize the need
of the union for security and through action assures the union of such.
Discussions are held not necessarily on how to solve them. There is a sharing of
ideas through open communication.
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4. Union-management cooperation – Management may decide, with the union
rep- resentatives, to develop a program of union-management cooperation on
problems and develop a kind of relationship that redounds to the good of
everybody.
Collective Bargaining
There are two basic types of Collective Bargaining between labor and manage-
ment and these are:
2. Integrated. Each group must view the other as cooperative and trustworthy.
Both sides withhold commitments to a definite position while soliciting information
and discussions problems and feelings. The philosophy is to pursue a win-win
solution in preference to one where one party wins and the other loses.
The Philippine Labor Code, Union and Management are mandated to follow the fol-
lowing procedures for Collective Bargaining:
1. When a party desires to negotiated an agreement, it shall serve notice to the other
party with a statement of its proposals. Reply is to be given within 10 calendar days
from receipt of notice.
2. If differences arise based on notice and reply, either party may request a conference
to begin not later than 10 calendar days from receipt date.
3. If the dispute is not settled, the National Conciliation and Mediation Board shall inter-
vene upon request of either party or at its own initiative, immediately call the parties
to a conciliation meeting. The Board could issue subpoenas requiring parties to
attend meetings.
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4. During conciliation proceedings, the parties are prohibited from doing any act that
may disrupt or impede the early settlement of the disputes.
5. The Board shall exert all effort to settle disputes amicably and encourage the parties
to submit their case to a voluntary arbitrator.
It is the duty of both parties to bargain collectively. This means that it is a mutual
obligation of both to convene promptly and expeditiously in good faith for the purpose of
negotiating an agreement on wages, hours of work and other terms and conditions of
employment including proposals for adjustment of grievances. It also means that neither
party can terminate or modify the agreement during its life-time. However, at least 60 days
before the expiration date, either party can serve a written notice to terminate or modify the
agreement. It is the duty of both parties to maintain status quo and to continue in full force
and effect the terms and conditions of the existing agreement during the 60 day period or
until a new agreement is reached.
KEY CONCEPTS
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