POINTERS TO REVIEW:

1. Importance of Human Resource Management

2. HRM Objectives
3. Features of Human Resource Management
4. Role of Human Resource Management
5. Major Purposes of Human Resource Management
6. Three Stages of Employment
7. TWO Categories of people Protected by Equal Employment Opportunity (EEO) Law
(Protected Classifications and Protected Groups)
8. Intentional Discrimination or Disparate Treatment and Unintentional Discrimination
or Disparate Impact
9. Sections 5-11 (Rights and Privileges of Disabled Persons)
10. Presidential Decree No. 442 or the Labor Code of the Philippines
11. Republic Act No. 7877 or “Anti-Sexual Harassment Act of 1995”
12. Republic Act No. 7192 or “Women in Development and Nation Building Act”
13. Republic Act No. 8042 or “Migrant Workers and Overseas Filipinos Act of 1995”
14. Republic Act No. 6727 or “Wage Rationalization Act”
15. Differences of HRM and HRD

 What is HRM?
Every organization, large or small, uses a variety of capital to make the business work.
Capital includes cash, valuables, or goods used to generate income for a business. For
example, a retail store uses registers and inventory, while a consulting firm may have
proprietary software or buildings. No matter the industry, all companies have one thing
in common: they must have people to make their capital work for them. This will be our
focus throughout the text: generation of revenue through the use of people’s skills and
abilities.
Human Resource Management or HRM is the organizational function of managing and
handling one of the most valuable assets of the organization – its employees. It tackles
various undertakings performed by a business firm to make certain that workers are
handled and managed as human beings worthy of respect and compassion throughout
their employment life. HRM is composed of human resource (HR) practices that aid the
firm in leading its people successfully and reasonably throughout their journey during
the three stages of the employment cycle: the pre-hiring, hiring and post-hiring.
Human resource management (HRM) is the process of employing people, training
them, compensating them, developing policies relating to them, and developing
strategies to retain them. As a field, HRM has undergone many changes over the last
twenty years, giving it an even more important role in today’s organizations. In the past,
HRM meant processing payroll, sending birthday gifts to employees, arranging
company outings, and making sure forms were filled out correctly—in other words, more
of an administrative role rather than a strategic role crucial to the success of the
organization. Jack Welch, former CEO of General Electric and management guru, sums
up the new role of HRM: “Get out of the parties and birthdays and enrollment forms.…
Remember, HR is important in good times, HR is defined in hard times.” It’s necessary
to point out that every manager has some role relating to human resource management.
Just because we do not have the title of HR manager does not mean we will not
perform all or at least some of the HRM tasks. For example, most managers deal with
compensation, motivation, and retention of employees—making these aspects not only
part of HRM but also part of management. As a result, this book is equally important to
someone who wants to be an HR manager and to someone who will manage a
business.
Definitions of Human Resource Management (HRM)
“Human Resource Management (HRM) focuses on managing people within the
employer-employee relationship. Specifically, it involves the productive use of people in
achieving the organization’s strategic business objectives and the satisfaction of
individual employee needs” (Stone, 2002).
Human Resource Management (HRM) consists of an organization “people practice”
which includes the policies, practices and systems that influence employees’ behavior,
attitudes and performance. Human Resource Management and Development influence
people who work for the organization and how those people work. The human
resources, if well managed, have the potential to be a source of sustainable competitive
advantage, contribution to the basic objectives such as quality, profits and customer
satisfaction (Noe et al., 2004).
As mentioned by Mello (2006), the following are the different descriptions of the HRM
functions: staffing involves job analysis, human resource planning, employees’ specific
tasks and responsibilities and the abilities, skills and qualifications needed to perform a
job are identified. Human Resource Planning ensures that the organization has the right
number of qualified people in the right jobs at the right time. In employee recruitment,
the organization seeks and attracts a pool of applicants from whom qualified candidates
are considered for job vacancies. In employee selection, the organization chooses from
among the available candidates the individual predicted to be most likely to perform
successfully in the job.
HRM also involves training. It is the acquisition of attitudes, skills, and knowledge
required for employees to learn and perform their jobs, improve on their performance,
prepare themselves for more senior positions, and achieve career goals.
In HRM, the process of determining how well employees is doing their jobs is called
performance management. In this activity, the employees are assessed and given
feedback on their strengths and areas for improvement.

 Importance of Human Resource Management

Human Resource Management embraces a wide range of basic business ideas that
include retirement, selection, training and development, performance appraisal,
compensation, safety and health, and other productivity improvement programs. It is
important even to non-HR personnel such as employees, supervisors, and leaders.
1. To maintain quality of work life. It is concerned with the employee’s perception
of physical as well as psychological wellbeing at workplace and it can be
obtained by maintaining work autonomy, work freedom, job recognition,
belongingness, rewards, etc.
2. To increase productivity and profit. HRM shall ensure right quality and
quantity of personnel in workplace. Motivated employees work hard to meet their
personal career goal which directly influences productivity of organization.
3. To retain employees and motivate them to accomplish company’s goal. By
this, the HRM performs tasks like providing benefits, compensation and rewards
to the deserving employees.
4. To recognize merit and contribution of employee.
5. To resolve conflicts. In any company, either big or small, conflicts may arise
between any parties/group. Conflicts are inevitable and they should not be
ignored. Human resource management acts as a consultant to sort out such
conflicts timely and conduct other organizational activities smoothly.

HR managers should provide a healthier working environment conducive for promotion

positive employee-employer relationship since it directly affects people’s lives as well as
the employer’s ability to compete, HR decisions are among the most difficult yet crucial
decisions that managers must take. Objective of HRM comes in many ways but talking
about the primary objective, HRM is to ensure the availability of a competent and willing
workforce to an organization, specifically HRM objectives are four-folds: societal,
organizational, functions and personal.
1. Societal Objectives. To be ethically and socially responsible to the needs and
challenges of the society, while minimizing the negative impact of such demands
upon the organization. The failure of organizations to use their resources for the
society’s benefit in ethical ways may lead to restrictions.
2. Organizational Objectives. To recognize the HRM exists to contribute to
organizational effectiveness. HRM is not an end in itself, it is only a means to
assist the organization with its primary objectives.
3. Functional Objectives. To maintain the department’s contribution at a level
appropriate to the organization’s needs. A department’s level of service must be
appropriate for the organization it serves.
 4. Personal Objectives. To assist employees in achieving their personal goals, at
least in so far as these goals enhance the individual’s contribution to the
organization.

 Evolution of Human Resource Management

Frederick Taylor introduced people management through his book The Shop
Management, which featured the proper selection and training of employees in a
specific way. Later, he pioneered the study of scientific management and eventually
became known as the father of scientific management. His work played a very important
role in the advancement of the people function in the early 1900s. He also addressed
critical issues on incentives that encouraged the compensation of workers for meeting
and/or surpassing performance criteria. As Taylor was starting with his concepts about
scientific management, other proponents were also employing related principles of
psychology in recruiting, selecting, training and developing workers. The growth of the
field of industrial psychology and its utilization in the work place came to realization
during the World War I as preliminary technical and job-related tests were used to
appoint military hires to the right tasks.

Year Events
Frederick Taylor introduced a management approach known as scientific
1890 – management that focuses on the idea of scientific selection of employees
1910 and 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.
Most companies started to develop departmental units focused on
1910 – maintain the well-being of employees. The field of industrial psychology,
1930 together with the beginning of World War I, led to the development of
employment tests and selection techniques.
1930 – During this period, the Hawthrone Studies started to have a tremendous
1945 effect on management studies and principles such that must attention was
given to personal and social interactions in the work-place that affect and
influence worker productivity and level of performance.
1945 – This period marked the birth of union membership that gave considerable
1965 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
1985 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 - Diverse labor force, globalization, and strategic HRM functions were three
 Present pressing concerns during this period. Employers, primary aim is to
effectively cope with the intense demands and effects of change,
competition and job efficiency.

Features of Human Resource Management

Human Resource management is a continuing process of managing people and their
activities at work while squeezing out the best potential from them so they become
productive individuals. It has the following features:
1. It is prevalent in nature. This means that HRM is present and performed in all
operational and functional areas of management within organization on a
continuous basis.
2. It is dynamic. It does not depend on written rules and policies to solve problem,
rather it focuses on what can be done through logical and well-grounded
solutions and decisions. It constantly finds ways to change situations and events
for the betterment of the organization and its employees.
3. It is individually-oriented. HRM works toward getting the best out of each
employee by seeing to it that they are continually offered the opportunity to be
equipped with new skills through training, development, and other productivity
improvement schemes.
4. It is employee-oriented. Rewarding them for their contributions to organizational
success is a strong reinforcement to increase the level of job performance.
5. It is forward-looking. HRM should effectively envision and assess labor needs
for a given period of time.
6. It is growth-oriented. HRM should constantly enhance the conceptual and
analytical skills of its employees. A carefully planned design for employee
development is almost compulsory if the organization aims for excellence.

Differences between Personnel Management and Human Resource Management

PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT (HRM)
(PM)
PM refers to the people manning HRM is the effective supervision and
the organization. Managing them is management of employees’ capabilities and
referred to as personnel other attributes.
management.
PM is conventional and HRM is a non-stop function directed at
concentrates on supervisory developing the knowledge and skills of
administration of people employees
PM is a separate purpose with HRM is an indispensable part of the entire
separate sub-function organization
PM is seen as a supplementary HRM anticipates and effectively handles
activity adverse situations even before they arise
PM reacts to adverse situations as HRM sees the organization as one that
they arise embodies a dynamic personality
PM takes complete authority in HRM sees to it that both personal and
people management professional needs of employees are addressed
correctly in order to achieve work-life balance
PM has a limited range as it only Motivational activities and team-building
focuses on administration of activities are top priorities for HRM
people
PM is particularly involved with In HRM, a fulfilling job is the antecedent and job
recruitment, selection and satisfaction is the outcome
administration of workforce
Primarily stimuli in PM are In HRM, there is a great relationship between
monetary and non-monetary productivity and satisfaction and employees’
rewards social well-being
In PM, a high-level of contentment HRM considers people as valuable assets
means better performance
PM regards employees as tools for HRM regards employees as excellent
the organization to make more contributors to the organization’s wellness, and
profit thus acknowledges their contributions through
growth and advancement opportunities
PM treats employees as HRM sees to it there is a constant healthy
commodities that can be brought in relationship between the organization and its
exchange for money. employees, which extends to the family
members of the employees
PM treats people as an expense, Encouraging all forms of communications is the
thus, employers have the power to driving force in HRM
manage the cost

Difference between Human Resource Management (HRM) and Human Resource

Development (HRD)
Human Resource Management Human Resource Development (HRD)
(HRM)
HRM focuses on enhancement of HRD is concerned with enhancing the
employees, potential from a long-term capabilities of employees that will result in
perspective positive behavior change
HRM gives attention to the effective HRD sees to it that there is continuing
utilization of employees and their opportunities for growth and development
capabilities
HRM takes decisions on HRD plans HRD depends on the decisions of HRM
HRM at its center has HRD The goal of HRD is anchored to the that of
HRM, which boils down the benefit of the
workers
HRM attends to every employee HRD promotes upscaling of skills and
demand resulting in increased knowledge resulting in outstanding
satisfaction and productivity performance
  Role of Human Resource Management
Keep in mind that many functions of HRM are also tasks other department managers
perform, which is what makes this information important, despite the career path taken.
Most experts agree on seven main roles that HRM plays in organizations. These are:
A. Staffing
Organizations need people to perform tasks and get work done in the organization.
Even with the most sophisticated machines, humans are still needed. Because of
this, one of the major tasks in HRM is staffing. Staffing involves the entire hiring
process from posting a job to negotiating a salary package. Within the staffing
function, there are four main steps:
1. Development of a staffing plan. This plan allows HRM to see how many people
they should hire based on revenue expectations.
2. Development of policies to encourage multiculturalism at work. Multiculturalism in
the workplace is becoming more and more important, as we have many more people
from a variety of backgrounds in the workforce.
3. Recruitment. This involves finding people to fill the open positions.
4. Selection. In this stage, people will be interviewed and selected, and a proper
compensation package will be negotiated. This step is followed by training, retention,
and motivation.
B. Development of Workplace Policies
Every organization has policies to ensure fairness and continuity within the
organization. One of the jobs of HRM is to develop the verbiage surrounding these
policies. In the development of policies, HRM, management, and executives are
involved in the process. For example, the HRM professional will likely recognize the
need for a policy or a change of policy, seek opinions on the policy, write the policy
and then communicate that policy to employees. It is key to note here that HR
departments do not and cannot work alone. Everything they do needs to involve all
other departments in the organization.
C. Compensation and Benefits Administration
HRM professionals need to determine that compensation is fair, meets industry
standards, and is high enough to entice people to work for the organization.
Compensation includes anything the employee receives for his or her work. In
addition, HRM professionals need to make sure the pay is comparable to what other
people performing similar jobs are being paid. This involves setting up pay systems
 that take into consideration the number of years with the organization, years of
experience, education, and similar aspects.
D. Retention
Human resource people must be aware of all the laws that affect the workplace. An
HRM professional might work with some of the HRM Retention involves keeping and
motivating employees to stay with the organization. Compensation is a major factor
in employee retention, but there are other factors as well.
E. Training and Development
Once we have spent the time to hire new employees, we want to make sure they not
only are trained to do the job but also continue to grow and develop new skills in
their job. This results in higher productivity for the organization. Training is also a key
component in employee motivation. Employees who feel they are developing their
skills tend to be happier in their jobs, which results in increased employee retention.
F. Dealing with Laws Affecting Employment
G. Worker Protection
Safety is a major consideration in all organizations. Oftentimes new laws are created
with the goal of setting federal or state standards to ensure worker safety. Unions
and union contracts can also impact the requirements for worker safety in a
workplace. It is up to the human resource manager to be aware of worker protection
requirements and ensure the workplace is meeting both federal and union
standards.
H. Communication
 Skills needed for HRM
One of the major factors of a successful manager or human resource (HR) manager is
an array of skills to deal with a variety of situations. It simply isn’t enough to have
knowledge of HR, such as knowing which forms need to be filled out. It takes multiple
skills to create and manage people, as well as a cutting-edge human resource
department.
The first skill needed is organization. The need for this skill makes sense, given that you
are managing people’s pay, benefits, and careers. Having organized files on your
computer and good time-management skills are crucial for success in any job, but
especially if you take on a role in human resources. Like most jobs, being able to
multitask—that is, work on more than one task at a time—is important in managing
human resources. A typical person managing human resources may have to deal with
an employee issue one minute, then switch and deal with recruiting. Unlike many
management positions, which only focus on one task or one part of the business,
human resources focus on all areas of the business, where multitasking is a must.
As trite as it may sound, people skills are necessary in any type of management and
perhaps might be the most important skills for achieving success at any job. Being able
to manage a variety of personalities, deal with conflict, and coach others are all in the
realm of people management. The ability to communicate goes along with people skills.
The ability to communicate good news (hiring a new employee), bad news (layoffs), and
everything in between, such as changes to policy, makes for an excellent manager and
human resource management (HRM) professional.
Keys to a successful career in HRM or management include understanding specific job
areas, such as managing the employee database, understanding employment laws, and
knowing how to write and develop a strategic plan that aligns with the business. A
strategic mind-set as an HR professional is a key skill as well. A person with a strategic
mind-set can plan far in advance and look at trends that could affect the environment in
which the business is operating. Too often, managers focus on their own area and not
enough on the business as a whole. The strategic HR professional is able to not only
work within his or her area but also understand how HR fits into the bigger picture of the
business. Ethics and a sense of fairness are also necessary in human resources. Ethics
is a concept that examines the moral rights and wrongs of a certain situation. Consider
the fact that many HR managers negotiate salary and union contracts and manage
conflict. In addition, HR managers have the task of ensuring compliance with ethics
standards within the organization. Many HR managers are required to work with highly
confidential information, such as salary information, so a sense of ethics when
managing this information is essential.
Finally, while we can list a few skills that are important, understanding the particular
business, knowing the business strategy, and being able to think critically about how HR
can align itself with the strategy are ways to ensure HR departments are critical parts of
the business. HR is a specialized area, much like accounting or finance. However,
many individuals are placed in HR roles without having the specific knowledge to do the
job. Oftentimes people with excellent skills are promoted to management and then
expected (if the company is small) to perform recruiting, hiring, and compensation
tasks.
 Equal Employment Opportunity (EEO) and the Law
Presidential Decree No. 442 or the Labor Code of the Philippines states that the State
shall afford protection to labor, promote full employment, ensure equal work
opportunities regardless of sex, race or creed and regulate the relations between
workers and employers (Sec.3). In the same time, our jurisprudence provides for Equal
Employment Opportunity laws in order to ensure the equality and avoid discrimination to
all workers/laborers.
Legal Issues pervade almost all aspects of employment from the recruitment and
selection of applicants to their separation from employment. Several HRM laws tackle a
variety of legal issues. Employment discrimination is the unjust or prejudicial treatment
of different categories of people or thing specifically on the basis of their age, race,
gender and religious beliefs. During recruitment, firms should be cautious not to infringe
anti-discrimination laws. The goal of these laws is to make certain that an individual who
seeks employment is equal chances to vie for it.
Equal Employment Opportunity Legislation – In the Philippines
 A. Title II Chapter 1 of Republic Act No. 7277 or “Magna Carta for Disabled
Persons”
Disabled persons are those suffering from restriction or different abilities, as a result of a
mental, physical or sensory impairment, which render them unable to perform an activity
in the manner of within the range considered normal for a human being;
Sec. 5. Equal Opportunity for Employment - A qualified disabled employee shall be
subject to the same terms and conditions of employment and the same compensation,
privileges, benefits, fringe benefits, incentives or allowances as a qualified able-bodied
person.
Sec. 6 Sheltered Employment – If suitable employment for disabled persons cannot
be found through open employment as provided in the immediately preceding Section,
the State shall endeavor to provide it by means of sheltered employment.
Sec. 7 Apprenticeship - Disabled persons shall be eligible as apprentices or learners:
Provided, that their handicap is not as much as to effectively impede the performance of
job operations in the particular occupation for which they are hired; Provided, further,
That after the lapse of the period of apprenticeship, if found satisfactory in the job
performance, they shall be eligible for employment.
Sec. 8 Incentives for Employers –
a. Private entities that employ disabled persons who meet the required skills or
qualifications, either as regular employee, apprentice or learner, shall be entitled
to an additional deduction, from their gross income, equivalent to twenty-five
percent (25%) of the total amount paid as salaries and wages to disabled person
b. Private entities that improve or modify their physical facilities in order to provide
reasonable accommodation for disabled persons shall also be entitled to an
additional deduction from their net taxable income, equivalent to fifty percent
(50%) of the direct costs of the improvements or modifications
Sec. 9 Vocational Rehabilitation - The State shall take appropriate vocational
rehabilitation measures that shall serve to develop the skills and potentials of disabled
persons and enable them to compete favorably for available productive and
remunerative employment opportunities in the labor market.
Sec. 10 Vocational Guidance and Counseling - The Department of Social and
Welfare and Development, shall implement measures providing and evaluating
vocational guidance and counseling to enable disabled persons to secure, retain and
advance in employment. It shall ensure the availability and training of counselors and
other suitably qualified staff responsible for the vocational guidance and counseling of
disabled persons.

A. Republic Act No. 7877 or “Anti-Sexual Harassment Act of 1995”

Section 3 of the said law defines sexual harassment as a request for sexual favor,
accepted or not, from an employer, employee, manager, teacher, instructor, professor,
coach, trainer or other persons who have authority, influence or moral ascendancy over
another. Sexual Harassment is committed when such a favor is demanded in return for
employment or promotion, or if the refusal to grant such favor results in the impairment
of an employee’s rights, privileges or employment opportunities.
Two types of Sexual Harassment:
1. Quid pro quo sexual harassment happens when a manager demands sexual
intimacy from a subordinate or a possible hire in exchange for employment. A
manager or supervisor who has the power to employ or terminate can carry out
quid pro quo sexual harassment, and that behavior is completely illegal.
2. Hostile environment can take place can take place when unsolicited criticisms
and actions interfere with the employee’s performance and well-being or has
created a disrespectful or insulting work environment for the harassed employee.
Other than the employee who is the target of harassment, the rest of the workers
who have witnessed or heard about the harassment, are also considered victims
and may likewise view the workplace as very unfriendly which could negatively
impact their productivity.

B. Republic Act No. 6727 or “Wage Rationalization Act”

ART. 124. Standards/Criteria for Minimum Wage Fixing. — The regional minimum
wages to be established by the Regional Board shall be as nearly adequate as is
economically feasible to maintain the minimum standards of living necessary for the
health, efficiency and general well-being of the employees within the framework of the
national economic and social development program. In the determination of such
regional minimum wages, the Regional Board shall, among other relevant factors,
consider the following:
“(a) The demand for living wages;
“(b) Wage adjustment vis-a-vis the consumer price index;
“(c) The cost of living and changes or increases therein;
“(d) The needs of workers and their families;
“(e) The need to induce industries to invest in the countryside;
“(f) Improvements in standards of living;
“(g) The prevailing wage levels;
“(h) Fair return of the capital invested and capacity to pay of employers;
“(i) Effects on employment generation and family income; and
“(j) The equitable distribution of income and wealth along the imperatives of economic
and social development.
C. Republic Act No. 7192 or “Women in Development and Nation Building
Act”
The intent of the Act is to promote the integration of women as full and equal partners
with men in development and nation building. The National Economic and Development
Authority is given primary responsibility for carrying out the purposes of the Act. The Act
grants women, regardless of their marital status, full legal capacity to act and to enter
into contracts. It grants them equal access to membership in all social, civic and
recreational clubs as well as the right of admission into military schools. Full-time
homemakers shall have the right to participate in government-sponsored social security
schemes.
D. Republic Act No. 8042 or “Migrant Workers and Overseas Filipinos Act of
1995”
The Act is meant to protect Filipino workers working overseas, primarily female
domestic workers. Section 2(b) stipulates that the State must protect local and overseas
labour, and promote full employment and equality of employment opportunities for all.
Similarly, the contribution of overseas female workers is recognized as is their
vulnerability, and the State must apply gender-sensitive criteria in the formulation and
implementation of policies and programs affecting migrants’ workers.

 Major Purposes of Human Resource Management

1. Utilization is the function embraces by the HR in order to set plans assessing
the future and ensures that the organization has the right number and kind of
people in the right places at the right time, doing the things for which they are
economically most useful.
2. Acquisition entails the hiring of workers most likely to help a company attain its
goals. This includes job analysis, recruitment, selection and placement.
3. Development function encompasses the training of workers to perform their
tasks in accordance with company strategy. This includes training and
development and performance appraisal.
4. Maintenance is concerned with maintain employee’s commitment and loyalty to
the organization. This includes wage and salary, compensation and benefits,
labor relations and collective bargaining agreement.

 Introduction to the Stages of Employment Cycle

In the pre-hiring stage, organizations determine the right number and type of people
needed to fill up positions in the organization along with their required qualifications. It
includes activities performed prior to hiring such as human resource planning and job
analysis which will be discussed together with acquisition and utilization, two of the four
purposes of human resource management which was discussed in the earlier part of
this module.
In the hire stage, companies establish policies that will help managers fulfill the staffing
needs of the company, eventually leading to recruiting and selecting which was also
discussed under acquisition purpose.
The last stage, the post-hiring, companies carry out certain HRM practices and other
productivity programs that enhance employees’ performance level, such as training and
development, performance appraisal, compensation and benefits administration,
employee health and safety and separation which is the objective of development and
maintenance purpose of HRM.
 Pre-hiring Stage
A. Utilization
HR planning is both a process and a set of plans. It is how organizations assess the
future supply and demand for human resources. In addition, an effective HR plan also
provides mechanisms to eliminate any gap that exists between supply and demand.
Thus, HR planning determines the numbers and types of employees to be recruited into
the organization. HR planning also involves linking a firm’s HRM practices to its
strategic busines needs, which have been identified by the strategic planning process.
HR planning may be done on both short-term and long-term basis. Its aim is to ensure
that people will be available with the appropriate characteristics and skills when the
organization needs them. It is a process by which a company ensures that it has the
right number and kind of people, in the right places at the right time, doing the things for
which they are economically most useful. It is a method for determining future HR
requirements and developing action plans to meet them. It is defined as a strategy for
the requisition, utilization, improvement, and retention of an enterprise’s HR and it
encompasses the subject concerned with the developing range of manpower policies,
including those for recruitment, development and retention. Just as planning for
financial, plant and equipment needs is important, so too is planning for personnel
needs. Human Resource Planning (HRP) is an HRM practice that helps managers in
predicting the various HR needs relating to acquiring, positioning, and utilizing
employees.
There are two methods of predicting HR needs: quantitative and qualitative.
Organizational needs will eventually determine which method to use; however, no
matter which method is selected, predicting HR needs should never be ignored, even by
small companies.
Quantitative approaches include the use of numerical information or mathematical
procedures in analyzing data. The most commonly used approaches are trend analysis,
ratio analysis and regression analysis.
Trend analysis is based on the concept that what has happened in the past will give the
HR officer an idea what will take place in the future. Trend analysis ties past
employment flows to subsequent labor needs.
Ratio Analysis is the process of anticipating future HR demands by calculating the
precise ratio between certain variables.
Regression analysis is identical both trend and ratio analyses in such a way that
forecasts are based upon the relation between certain predictors likes sales volume and
number of employees. In this method, the organization draws lines and marks called a
scatter diagram.
Qualitative approaches predict future HR needs based on the opinions or gut feel of
some selected members of the organization outside experts or others concerned with
the future labor needs of the company. This method is often seen as subjective and
judgmental hence, biases are most likely to occur. The Delphi Technique is a type of
qualitative forecasting method that aims to minimize biases of forecast by seeking
expert opinions and summing up their decisions. This is done by presenting a certain
business scenario to experts. A set of questions will be asked from these experts and
the reasons behind their opinions.
B. Acquisition
Manpower planning is concerned with determination of quantitative and qualitative
requirements of manpower for the organization. Determination of manpower
requirements is one of the most important problems in manpower planning. Job analysis
and job design, provide this knowledge. Before going through the mechanism of job
analysis and job design, it is relevant to understand the terms which are used in job
analysis and job design.
Generally, acquisition means the process of obtaining something or the thing that is
obtained. It is a noun form of the verb acquire, which most commonly means to get,
buy, or learn. Acquire and acquisition have a lot of meanings that vary with context.
Most of them refer to the act of getting something permanently. Under human resource
practice, acquisition is an act of recruiting and selecting of people for the right job to
perform the actual work for the organization. It is conducted to determine the
responsibilities inherent in the position as well as the qualifications needed to fulfil its
responsibilities. It is essential when recruiting to locate an individual having the requisite
capabilities and education. This is important in order for the HRM to succeed by laying
the required foundation.
Job analysis is defined as the procedure used for determining or collecting information
relating to the operations and responsibility of a specific job. The end results are job
description and job specifications. Basically, job analysis is a detailed examination of
tasks that make up an employee role, conditions under which an employee performing
his/her job and what exactly a job requires in terms of aptitudes, attitudes, knowledge,
skills, educational qualifications and the physical working condition of the employee.
A job may be defined as a “collection or aggregation of tasks, duties and responsibilities
which as a whole, are regarded as a regular assignment to individual employees,” and
which is different from other assignments, in other words, when the total work to be
done is divided and grouped into packages, we call it a “job.” Each job has a definite
title based upon standardized trade specifications within a job; two or more grades may
be identified, where the work assignment may be graded according to skill, the difficulty
of doing them, or the quality of workmanship. Thus, it may be noted that a position is a
“collection of tasks and responsibilities regularly assigned to one person;” while a job is
a “group of position, which involve essentially the same duties, responsibilities, skill and
knowledge.” A position consists of a particular set of duties assigned to an individual.
B.1 Job Analysis
The job analysis is a formal system developed to determine what tasks people actually
perform in their jobs. The purpose of a job analysis is to ensure creation of the right fit
between the job and the employee and to determine how employee performance will be
assessed. A major part of the job analysis includes research, which may mean
reviewing job responsibilities of current employees, researching job descriptions for
similar jobs with competitors, and analyzing any new responsibilities that need to be
accomplished by the person with the position. To start writing a job analysis, data need
to be gathered and analyzed, keeping in mind Hackman and Oldham’s model. Note,
that a job analysis is different from a job design. Job design refers to how a job can be
modified or changed to be more effective—for example, changing tasks as new
technology becomes available.
The information gathered from the job analysis is used to develop both the job
description and the job specifications. A job description is a list of tasks, duties, and
responsibilities of a job. Job specifications, on the other hand, discuss the skills and
abilities the person must have to perform the job. The two are tied together, as job
descriptions are usually written to include job specifications. A job analysis must be
performed first, and then based on that data, we can successfully write the job
description and job specifications. Think of the analysis as “everything an employee is
required and expected to do.” Once the job description has been written, obtaining
approval from the hiring manager is the next step. Then the HR professional can begin
to recruit for the position.
Job analysis plays an important role in recruitment and selection, job evaluation, job
designing, deciding compensation and benefits, performance appraisal, analyzing
training and developments needed and to increase personnel as well as organizational
productivity. Therefore, job analysis is one of the most important functions of an HR
manager which helps in fitting the right kind of talent at the right place and at the right
time. Below are the purposes of conducting job analysis in every organization.
 Preparing the job description and writing the job specifications. The result of job
analysis provides a complete description that contains job summary, the job
duties and responsibilities, machine and equipment used, and some indications
of the working conditions. It is also used to describe the individual traits and
characteristics required in performing the job well. With the help of job analysis,
two main documents are prepared, namely:
 Recruitment and Selection. Job analysis information is useful when searching for
the right person to fill the job. It helps to seek and find the type of people that will
contribute to and suit the needs of organization.
 Determining the rate of compensation. Job analysis is also essential for
estimating the value of and appropriate compensation for each job. This is
because compensation usually depends on the job’s required skill and
educational level, safety hazards and degree of responsibility.
 Performance Appraisal. It involves comparison of actual versus planned output.
Job analysis information is used to identify the standards and performance
objectives and specific activities to be performed against which employees are
evaluated. It is used to acquire an idea of acceptable level of performance for a
job.
 Training. Job analysis information is used to design training and development
program because the analysis and resulting job description show the skills and
 therefore the kind of training that is required. Training and development are
conducted to satisfy these skills and competency requirements.
 Career planning and development. The movement of individuals into and out of
positions, jobs, and occupation is a common procedure in organization. JA
provides clear and detailed information to employees on career movement.
 Safety. The safety of the job depends on the proper layout, standards,
equipment, and other physical conditions. What a job entails and the type of
people needed contributes information to establish safe procedures so that
unsafe practices can either be changed or discontinued.
 Labor relations. An attempt of an employee to add or subtract from the duties
listed, as a result of job analysis, is already a violation of this standard. The labor
union as well as the management is interested in this matter. Controversies often
result and a written record of the standard job jurisdiction is valuable in resolving
such disputes.
B.2 Job Description and Job Specification
The first and immediate product of job analysis is the job description. This is basically
descriptive and constitutes a record of existing and pertinent job facts. The original
purpose of job description is to establish the level of difficulty of a specific position for
the purpose of establishing pay levels. Additionally, if the employee has an objective
standard to measure the performance of the job, it will be known whether or not the
standards are being met. Responsibilities and duties should be presented in clear and
precise statements and should include essential functions and major tasks, duties and
responsibilities performed.
On the other hand, the job specification uses the job description to define the kind of
human traits and experience required to do a specific job well. It shows what kind of
person to recruit and for what qualities that person should be tested. Job specification
identify the minimum acceptable qualifications required for an employee to perform the
job adequately. The job specification may be a separate section on the job description,
a separate document entirely, or at the concluding part of the job description.
 The Hiring Stage
A.1 Recruitment
Once there is an approved request to fill up a position, the next step is for HR to
develop an applicant pool using either internal or external recruiting. An organization
needs to hire the most qualified people it can at the most competitive price. Before an
organization is able to hire an individual, it must locate qualified applicants who are
looking for jobs – known as establishing an applicant pool. An effective employee
selection procedure is limited by the effectiveness of the recruitment process. In an era
when the focus of most organizations is on efficiently and effectively running the
organization, recruiting the right person for the right job is a top priority.
Under Presidential Decree 442 also known as “Labor Code of the Philippines”,
recruitment and placement refers to any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring workers, and includes referrals, contract
services, promising or advertising for employment, locally or abroad, whether for profit
or not. In its most basic definition, recruitment is the process of identifying, screening,
shortlisting and hiring the best and most qualified candidate for a job opening. An
organization needs to hire the most qualified people it can at the most competitive
price. This can be done either internally or through external sources. The former refers
to hiring employees within the organization through promotions, transfers, former
employee or referrals, whereas the latter pertains to hiring employees outside the
organization like direct recruitment. External source is the most common practice by an
organization. Through the help of technology, it makes it easier for the HR to gather and
fill in the vacancies. They have now the ability to do virtually everything from the
computers. Using internet is the fastest, simplest, and most convenient or most cost-
effective way to reach hundreds of thousands of qualified candidates.
Recruitment Strategies
Some companies, such as Southwest Airlines, are known for their innovative
recruitment methods. Southwest looks for “the right kind of people” and are less focused
on the skills than on the personality of the individual. When Southwest recruits, it looks
for positive team players that match the underdog, quirky company culture. Applicants
are observed in group interviews, and those who exhibit encouragement for their fellow
applicants are usually those who continue with the recruitment process. Some
organizations choose to have specific individuals working for them who focus solely on
the recruiting function of HR. Recruiters use similar sources to recruit individuals, such
as professional organizations, websites, and other methods discussed in this chapter.
Recruiters are excellent at networking and usually attend many events where possible
candidates will be present. Recruiters keep a constant pipeline of possible candidates in
case a position should arise that would be a good match. There are three main types of
recruiters:
1. Executive search firm. These companies are focused on high-level positions, such as
management and CEO roles. They typically charge 10–20 percent of the first-year
salary, so they can be quite expensive. However, they do much of the upfront work,
sending candidates who meet the qualifications.
2. Temporary recruitment or staffing firm. Suppose your receptionist is going on medical
leave and you need to hire somebody to replace him, but you don’t want a long-term
hire. You can utilize the services of a temporary recruitment firm to send you qualified
candidates who are willing to work shorter contracts.
3. Corporate recruiter. A corporate recruiter is an employee within a company who
focuses entirely on recruiting for his or her company. Corporate recruiters are employed
by the company for which they are recruiting. This type of recruiter may be focused on a
specific area, such as technical recruiting.
Recruitment Method Advantages Disadvantages

Can be time Expensive

saving
 1. Outside recruiters, executive Less control over final
search firms, and temporary candidates to be
employment agencies interviewed

Can hire people to Time consuming

2. Campus grow with the
recruiting/educational organization
institutions

Plentiful source of Only appropriate for

talent certain types of
experience levels

Diversity friendly Could be too broad

3. Websites/Internet Recruiting
Low cost Be prepared to deal
with hundreds of
resumes
Quick

Inexpensive Time consuming

4. Social Media
Overwhelming
response

Higher quality Concern for lack of

5. Referrals people diversity

Retention Nepotism

A.2 Selection of Employees

Once you have developed your recruitment plan, recruited people, and now have plenty
of people to choose from, you can begin the selection process. The selection process
refers to the steps involved in choosing people who have the right qualifications to fill a
current or future job opening. Usually, managers and supervisors will be ultimately
responsible for the hiring of individuals, but the role of human resource management
(HRM) is to define and guide managers in this process.
The selection process consists of five distinct aspects:
1. Criteria development.
All individuals involved in the hiring process should be properly trained on the steps for
interviewing, including developing criteria, reviewing résumés, developing interview
questions, and weighting the candidates. The first aspect to selection is planning the
interview process, which includes criteria development. Criteria development means
determining which sources of information will be used and how those sources will be
scored during the interview. The criteria should be related directly to the job analysis
and the job specifications. This process usually involves discussing which skills,
abilities, and personal characteristics are required to be successful at any given job. By
developing the criteria before reviewing any résumés, the HR manager or manager can
be sure he or she is being fair in selecting people to interview. Some organizations may
need to develop an application or a biographical information sheet. Most of these are
completed online and should include information about the candidate, education, and
previous job experience.
2. Application and résumé review.
Once the criteria have been developed (step one), applications can be reviewed.
People have different methods of going through this process, but there are also
computer programs that can search for keywords in résumés and narrow down the
number of résumés that must be looked at and reviewed.
3. Interviewing.
After the HR manager and/or manager have determined which applications meet the
minimum criteria, he or she must select those people to be interviewed. Most people do
not have time to review twenty or thirty candidates, so the field is sometimes narrowed
even further with a phone interview.
Interview processes can be time-consuming, so it makes sense to choose the right type
of interview(s) for the individual job. Some jobs, for example, may necessitate only one
interview, while another may necessitate a telephone interview and at least one or two
traditional interviews.
Here are different types of interviews:
1. Traditional interview. This type of interview normally takes place in the office. It
consists of the interviewer and the candidate, and a series of questions are asked and
answered.
2. Telephone interview. A telephone interview is often used to narrow the list of people
receiving a traditional interview. It can be used to determine salary requirements or
other data that might automatically rule out giving someone a traditional interview.
3. Panel interview. A panel interview occurs when several people are interviewing one
candidate at the same time. While this type of interview can be nerve racking for the
candidate, it can also be a more effective use of time.
4. Group interview. In a group interview, two or more candidates interview at the same
time. This type of interview can be an excellent source of information if you need to
know how they may relate to other people in their job.
5. Video interviews. Video interviews are the same as traditional interviews, except that
video technology is used. This can be cost saving if one or more of your candidates are
from out of town.
4. Test administration
Any number of tests may be administered before a hiring decision is made. These
include drug tests, physical tests, personality tests, and cognitive tests. Some
organizations also perform reference checks, credit report checks, and background
checks.
A variety of tests may be given upon successful completion of an interview. These
employment tests can gauge a person’s KSAOs in relation to another candidate. The
major categories of tests include the following:
1. Cognitive ability tests
A cognitive ability test can measure reasoning skills, math skills, and verbal skills. It is a
test of that measure’s intelligences, such as numerical ability and reasoning.
2. Personality tests
The goal of the test is to assess talent and to see if the candidate has the potential to
meet the expectations of the consumers/employers.
3. Physical ability tests
4. Job knowledge tests
A job knowledge test measures the candidate’s level of understanding about a particular
job. For example, a job knowledge test may require an engineer to write code in a given
period of time or may ask candidates to solve a case study problem related to the job.
5. Work sample
Work sample tests ask candidates to show examples of work they have already done.
5. Making the offer.
The last step in the selection process is to offer a position to the chosen candidate.
Development of an offer via e-mail or letter is sometimes a more formal part of this
process. Oftentimes once the decision is made to hire a candidate, HR professionals
feel their job is finished. But making the offer to the chosen candidate can be equally as
important as the interview process. If the offer is not handled properly, you can lose the
candidate, or if the candidates take the job, he or she could start off on the wrong foot.
Once you have determined in the interview process that the salary expectation is in the
range of what you can offer, the first step is to make the offer as soon as the decision is
made. Once the offer has been made, it is reasonable to give the candidate some time
to decide, but not too long, as this can result in losing other candidates should this
candidate reject the job offer. It is likely the candidate may come back and ask for
higher salary or benefits. Once the pay and benefits package has been successfully
negotiated and the offer letter (or e-mail) sent, you should clarify acceptance details in
writing and receive confirmation of the start date. It is not unusual for people in higher-
level positions to need a month or even two to transition from their old jobs. During this
period, make sure to stay in touch and even complete the new hire paperwork in the
meantime.
 The Post-Hiring Stage
A. Development
A.1 Training and Development
Any effective company has training in place to make sure employees can perform his or
her job. During the recruitment and selection process, the right person should be hired
to begin with. But even the right person may need training in how your company does
things. Lack of training can result in lost productivity, lost customers, and poor
relationships between employees and managers. It can also result in dissatisfaction,
which means retention problems and high turnover. All these ends up being direct costs
to the organization.
Training is a planned learning experience intended to enhance the competence,
expertise, aptitude, and performance of an individual in his or her current job, while
development is a planned learning experience designed to enhance and improve
competencies of an individual for a possible future task.
Employee training and development is an indispensable part of the HR function. It aims
at improving the performance and productivity of the employees. In training, the
employees are imparted technical know-hows related to their present job. The main
objective is to extend growth and advancement opportunities in conformity with
company goals and objectives. In contrast, development requires educational process
which is concerned with the future growth of the employee. Basically, development
prepares employees for future challenges and a potential climb up the corporate leader.
After the training and development sessions, employees are expected to “bring back to
the floor” whatever learning they have gained during the activity.
For effective employee training, there are four steps that generally occur. First, the new
employee goes through an orientation, and then he or she will receive in-house training
on job-specific areas. Next, the employee should be assigned a mentor, and then, as
comfort with the job duties grows, he or she may engage in external training.
The first step in training is an employee orientation. Employee orientation is the
process used for welcoming a new employee into the organization. The importance of
employee orientation is two-fold. First, the goal is for employees to gain an
understanding of the company policies and learn how their specific job fits into the big
picture. Employee Orientation is the procedure for providing new employees with some
basic background information about the business or company, its culture and the job. It
is similar to what sociologists refer to as socialization. Socialization is a process when a
new employee learns the norms, values, goals, work procedures, and patterns of
behavior that are expected by the organization. This should be conducted at two levels:
1. Organizational/Overview orientation – topics discussed include overview of the
company, key policies, and procedures, compensation, benefits, safety, and
 accident prevention, employees and union relation if there is any, physical
facilities, and the like.
2. Departmental and Job orientation – topics about the department function and the
duties and responsibilities of the newly hired employee, policies, procedures,
rules and regulations, tour of the department, and introduction to department
employees.
In-house training programs are learning opportunities developed by the organization in
which they are used. This is usually the second step in the training process and often
is ongoing. In-house training programs can be training related to a specific job, such as
how to use a particular kind of software. In a manufacturing setting, in-house training
might include an employee learning how to use a particular kind of machinery. Many
companies provide in-house training on various HR topics as well, meaning it doesn’t
always have to relate to a specific job.
After the employee has completed orientation and in-house training, companies see the
value in offering mentoring opportunities as the next step in training. Sometimes a
mentor may be assigned during in-house training. A mentor is a trusted, experienced
advisor who has direct investment in the development of an employee. A mentor may
be a supervisor, but often a mentor is a colleague who has the experience and
personality to help guide someone through processes. While mentoring may occur
informally, a mentorship program can help ensure the new employee not only feels
welcomed but is paired up with someone who already knows the ropes and can help
guide the new employee through any on-the-job challenges. Mentors are selected
based on experience, willingness, and personality.
External training includes any type of training that is not performed in-house. This is
usually the last step in training, and it can be ongoing. It can include sending an
employee to a seminar to help further develop leadership skills or helping pay tuition for
an employee who wants to take a marketing class.
Designing a training program
Training and development have been defined and differentiated, and the purposes of
each stated shows the major steps in training and the analysis of organizational and
trainee needs, which is the heart of a training and development program. These are the
considerations for developing a training program:
1. Needs assessment and learning objectives. This part of the framework development
asks you to consider what kind of training is needed in your organization. Once you
have determined the training needed, you can set learning objectives to measure at the
end of the training.
2. Consideration of learning styles. Making sure to teach to a variety of learning styles is
important to development of training programs.
3. Delivery mode. What is the best way to get your message across? Is web-based
training more appropriate, or should mentoring be used? Can vestibule training be used
for a portion of the training while job shadowing be used for some of the training, too?
Most training programs will include a variety of delivery methods.
4. Budget. How much money do you have to spend on this training?
5. Delivery style. Will the training be self-paced or instructor led? What kinds of
discussions and interactivity can be developed in conjunction with this training?
6. Audience. Who will be part of this training? Do you have a mix of roles, such as
accounting people and marketing people? What are the job responsibilities of these
individuals, and how can you make the training relevant to their individual jobs?
7. Content. What needs to be taught? How will you sequence the information?
8. Timelines. How long will it take to develop the training? Is there a deadline for training
to be completed?
9. Communication. How will employees know the training is available to them?
A.2 Appraising and Managing Performance
One of the most important activities of an HR manager is maintaining and enhancing
the workforce. With all the efforts and costs that recruiting and selection entail, it is
important to develop employees for them to use their fullest capabilities, thus, improving
the effectiveness of the organization. Performance review is the ongoing process of
evaluating and improving employees’ performance. It is a process by which an
individual’s work performance is assessed and evaluated. It answers the question, “How
well has the employee performed during the period of time in question?” It also entails
determining and communicating to an employee how he/she is performing on the job
and ideally, establishing a plan of improvement. Performance is often confused with the
effort that refers to energy expended. Performance is measured in terms of result.
Performance may be defined then as the accomplishment of an employee or manager’s
assigned duties and outcomes produced on a specified job function or activity during a
specified time period. Performance review or evaluation, on the other hand, refers to a
systematic description and review of an individual’s job performance. The major
contribution of performance management is its focus on achieving results – useful
products and services for customers inside and outside organization. Performance
management is an ongoing communication process, undertaken in partnership between
employee and his/her immediate supervisor.
Performance Appraisal Method
Appraisal methods have been designed to gauge the quality of employee performance.
However, some methods maybe effective to some companies only, and may not be
applicable to others. Therefore, there is no one best way of appraising performance
except as it applies to the specific needs of the company or an employee.
1. Character Traits Method
This method could be an edge for employees who are more demonstrative, innovative,
and are rewarded for work that requires such traits, but puts to a disadvantage
employee who do not possess these characteristics. Each person has a distinguishing
character trait often labeled as either good or bad. Good traits include integrity, loyalty,
and determination, while bad traits could be disrespectfulness and greed.
 2. Behavior-Based Method
One great stumbling block of a character trait method is its tendency to be unclear and
biased. Behavior-based appraisal was designed to especially outline which conduct or
attitude is permissible and not permissible at work.
3. Output-Based Method
Instead of focusing at the character traits or the behaviors of employees on the job,
most organizations assess employees’ performance through the outputs they
accomplished at work. Supporters of the output-based method claim that this method is
unbiased and more motivating for employees. Additionally, output-based appraisal
usually provides employees the control for their outputs, and at the same time giving
them the freedom to choose the method they want to use to achieve them.
APPRAISAL ADVANTAGES DISADVANTAGES
METHOD

Character Traits  Includes relevant  Prone to rating flaws

dimensions  Not advisable for
 Cost-efficient employee counseling
 Simple to use  Not helpful for growth
and advancement
decisions

 Makes use of specific job

Behavior-Based performance indicators
 Helpful in providing  Takes considerable time
performance feedback to complete
 Appropriate for  Expensive to prepare
compensation and benefit  Errors are more likely to
decisions happen
 Pleasing to workers and
superiors

 Agreeable to workers and  Longer time to complete

Output-Based managers  May promote a shorter
 Tie employee and outlook
organizational goals  May include irrelevant
 Ideal for remuneration job standards
and benefits decisions

Employee Appraisal Interview

The employee appraisal interview is one of the means to assure good working
environment and professional development. It is a friendly dialogue between an
employee and the manager or supervisor. In an appraisal interview, the employee gets
the chance to improve his efficiency and change work manners. Both employee and
manager talk about employee performance and the major aspects of employee
development. Interviews should be planned and organized beforehand to give enough
time to both employee and manager to be ready for the dialogue.
 Compensation and Benefits
 A. Rights of laborers/employees under Presidential Decree No. 442

Presidential Decree no. 442 known as the “Labor Code of the Philippines” is the law
governing employment practices and labor relations within the jurisdiction. The
Department of Labor and Employment (DOLE) is the primary policy-making,
programming, coordinating and administrative entity in the field of labor and
employment. It is primarily responsible for the promotion of gainful employment
opportunities, the advancement of workers’ welfare and promoting harmonious,
equitable and stable employment relations.
Under Article 3 of 1987 Philippine Constitution, 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.
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.
The State shall promote the principle of shared responsibility between workers and
employers and the preferential use of voluntary modes in settling disputes, including
conciliation, and shall enforce their mutual compliance therewith to foster industrial
peace.
The State shall regulate the relations between workers and 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 expansion and growth.
The basic rights of workers specifically guaranteed by the Constitution are:
1. The right to organize, form unions and conduct Collective Bargaining Agreement
Every worker has the right to self-organization, under Art. 253 it includes the right to
form, join or not to join, assist labor organizations for the purpose of collective
bargaining through representatives of their own choosing and to engage in lawful
concerted activities for the same purpose or for their mutual aid and protection.
Corollary, the right of self-organization is the prerogative not to join, affiliate with or
assist a labor union. In order to become a union member, an employee must not only
signify the intent to become one but also take some positive steps to realize that intent.
The procedure for union membership is usually embodied in the union’s constitution and
bylaws.
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. Collective bargaining is a
process between two parties, namely the employer and the union, where the terms and
conditions of employment are fixed and agreed upon. In collective bargaining, the two
parties also decide upon a method for resolving grievances. Collective bargaining
results in a contract called a Collective Bargaining Agreement (CBA).
2. Engage in peaceful concerted activities
The right to strike is a constitutional and legal right of the workers as employers have
the right to lockout, all within the context of labor relations and collective bargaining.
Subject to the enactment by Congress of amendments or a new law on labor relations,
the provisions of existing laws shall govern the exercise of those rights. Strike is the
only concerted activity mentioned under the Labor Code of the Philippines. It is defined
as the temporary stoppage of work as a result of an industrial or labor dispute. Strike
must be in a peaceful way that the will be no illegal violent acts to be attributed by the
employees when they express their grievance to their employer.
3. Security of Tenure
Every employee shall be assured security of tenure. No employee can be dismissed
from work except for a just or authorized cause, and only after due process. Since one’s
employment or work is contemplated as property. It is the duty of the State to protect
Filipinos or individual from unlawful or arbitrary arbitration of their livelihood.
4. Humane Conditions of work
Employers must provide workers with every kind of on-the-job protection against
injury, sickness or death through safe and healthful working conditions. Jobs may be
hazardous or highly hazardous. Hazardous jobs are those which expose the employee
to dangerous environment elements, including contaminants, radiation, fire, poisonous
substances, biological agents and explosives, or dangerous processes or equipment
including construction, mining, quarrying, blasting, stevedoring, mechanized farming
and operating heavy equipment. It is the duty of every employers to ensure the safety of
its employees within the premise of the company or even when the employee is
performing acts outside when carrying out business.
5. Living wage
A living wage refers to a theoretical income level that allows an individual or family to
afford adequate shelter, food, and the other basic necessities. The goal of a living wage
is to allow employees to earn enough income for a satisfactory standard of living and to
prevent them from falling into poverty.

 Maintenance
A major factor in keeping skilled workers is an organization’s compensation package
system, and what it gives employees in exchange for their services. A compensation is
an organized system that provides monetary compensation to employees in exchange
for work performance, while benefits refer to the form of compensation paid by
employers over and above regular salary or wages. Wages and salaries are key parts of
any compensation system, but most systems also include features such as incentives
and employee benefit program. Compensation is the set of rewards that organizations
provide to individuals in return for their willingness to perform various jobs and tasks
within the organization. It includes all forms of financial returns and tangible services
and benefits employees receive as part of an employment relationship. It also includes
various elements such as base salary, incentives, bonuses, benefits and other rewards.
Base wages and salaries are the hourly, weekly or monthly pay that employees receive
in exchange for their work. In most situations, these make up the largest portion of an
employees’ total compensation. These form the foundation for most employees’ total
perceptions of the fairness or equity of the pay system. The primary objective of any
base wage and salary system is to establish a structure for the equitable compensation
of employees, depending on their jobs and their level of performance in their jobs. This
simply means that if the base wage and salary system are effective, a firm’s
compensation system can improve cost efficiency, ensure legal compliance, enhance
recruitment efforts, and reduce morale and turnover problems. In setting wage and
salary levels, a company, must consider several factors. First, it must take into account
how its competitors compensate their employees. A firm that pays less than its rivals
may soon find itself losing valuable personnel. The issue about compensation should be
a top concern for a company. It must take into account how it is determined can make a
productive workforce. Within the wage and salary levels, managers must decide how
much to pay individual workers. Two employees may do exactly the same job but the
employee with more experience may earn more, in part to keep that person in the
company. Some union contracts specify differential wages based on experience. Note,
however, that the basis for differential pay must be job-related, not favoritisms or
discrimination.
Laws on wages and working hours in the Philippines
“The State shall afford protection to labor, promote full employment, ensure equal
opportunities regardless of sex, race or creed, and regulate the relations between
workers and employees. The State shall assure the rights of workers to self-
organization, collective bargaining, security of tenure, and just and humane conditions
of work.”
The laws that concern the above provisions are the Labor Code of the Philippines as
amended and the other laws that are part of Labor and Social Legislation in the country,
namely, laws related to the Labor Code like PD 928, as amended on minimum wage,
PD 851, as amended on 13th month pay, and PD 525, as amended on emergency
allowance, and social security laws like the Social Security Law, as amended Revised
Government Service Insurance Act and the Philippine Medical Care Act, as amended.
1. The Rights of workers in the Philippines with regards to wages
The International Covenant on Economic, Social, and Cultural Rights speaks of the right
to everyone to just and favorable conditions of work which ensure, in particular:
Renumeration which provides all workers. As minimum with:
 Fair wages and equal remuneration for work of equal value without
distractions of any kind, women in particular being guaranteed conditions of
work not inferior to those enjoyed by men, with equal pay for equal work; and
 A decent living for themselves and their families.

2. The Philippine Labor Law rights provided under the law:

a. Considering that the normal hours of work shall not exceed eight hours a day, the
right not be required to perform overtime work except in emergency and the right
to overtime pay for overtime work.
b. The right to a meal period
c. The right to night shift differential pays
d. The right to a weekly rest day
e. The right not to be required to work on a rest day, except for emergency work
f. The right to additional compensation for rest day or holiday work
g. The right to holiday pay for a regular holiday as differentiated from one which is
not a regular but a special holiday
h. The right to a service incentive leave

3. Republic Act No. 602 or “Minimum Wage Law”

This applies to employees in private enterprises, by they in agriculture, industry or trade.
Employees of religious, charitable, and educational organizations are also covered by
the law. The law covers all employees in the government service-national, provincial,
municipal, and city or those in government owned or controlled corporations. This law
does not apply to farm tenancy, household service, and employment in needlework in
the houses or in any cottage industry registered with the National Cottage Industries
Development Authority. The Minimum Wage Law is applicable to all employees except
home-workers engaged in needlework by hand, workers on farm tenancy, domestic
servants, retail or service establishment that regularly employ not more than five
employees, and apprentices, handicapped workers, students and graduate of Nautical
School.
4. The Right of workers in the Philippines with regard to Rest, Working Hours,
and Holidays
Meal and Rest Periods
Article 85 of the Labor Code of the Philippines provides that it shall be the duty
of every employer to give his employees not less than sixty (60) minutes time-off for
their regular meals.
 A worker is entitled to not less than one hour time-off for regular meals, and to
rest periods or coffee breaks of five to twenty minutes. This meal period may be
shortened under the following circumstances:
1. When the work is non-manual in nature or does not involve strenuous physical
exertion;
2. When there are actual or impending emergencies or when there is urgent work to
be performed in machinery, equipment or installations to avoid serious loss which
the employer would suffer; and
3. When the work is necessary to prevent serious loss of perishable goods
Holidays
Every worker shall be paid his regular daily wage during regular holidays, expect
in retail and service establishments regularly employing less than (10) workers. The
employers may require an employee to work on any holiday but such employee shall be
paid a compensation equivalent to twice his regular rate. On the other hand, special
holidays embodied the principle of “no work, no pay”. Special days are proclaimed by
the President or by the Congress.
Night Shift Differential
Article 86 of the Labor Code of the Philippines provides that every employee shall
be paid a night shift differential of not less than ten percent (10%) of his regular wage
for each hour of work performed between ten o’clock in the evening and six o’clock in
the morning.
For night work performed on rest days and//or special holidays, an employee shall
be paid an amount equivalent to his regular wage plus at least 30% additional amount
of not less than 10% of such premium pay for each hour of work performed.
For night work performed on regular holidays, an employee shall be paid his regular
wage during there days plus an additional compensation of not less than 10% of the
hourly rate for each hour of work performed. When an employee is asked to work after
his work schedule, he shall be entitled to his regular wage plus, at least, 25%, plus an
additional amount of not less than 10% of this overtime rate for each hour of work
performed between 10 p.m. to 6 a.m.
Overtime
A covered employee who works beyond eight hours on an ordinary working day shall be
paid for overtime work an amount equivalent to his regular wage plus, at least, 25%. A
covered employee who works on his designated rest day shall be paid an additional
compensation as premium pay of not less than 30% of his regular wage. If he works on
such a rest day in excess of eight hours, he shall be paid for an additional 8 hours work
plus, at least, 30% thereof.
An employee who works on a special holiday shall be governed by the same rule
enunciated for a covered employee who works on his rest day. An employee who works
on any regular holiday shall be paid in addition to, at least, 20% of his regular daily
wage. If he works on such holiday in excess of 8 hours, he shall receive additional
compensation for the overtime work equivalent to his rate for the first three hours of
such holiday work plus, at least, 30% thereof.