LABOR LAW

Labor Standards refer to the Philippine laws that provide the minimum requirements
regarding work conditions, work hours, wages, benefits and other employment conditions that
are being implemented by management.
The goal of Labor Relations is to strike the proper balance between the protection of workers
rights versus the exercise of management prerogatives by the employer in accordance with
law and to achieve industrial peace
State Protection of Labor
Section 3. 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 condition of works, and a living wage.
They shall also participate in policy and decision-making processes affecting their rights and
benefits as may provided by law.
The State shall promote the principle of shared responsibility between workers and
employers and the preferential use of voluntary modes in setting disputes, including conciliation,
and shall enforce their mutual compliance therewith to foster industrial peace.
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 on investments, and to expansion and growth.
Labor Code (Presidential Decree 442)
Art. 3 Declaration of basic policy
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.
The state shall assure the rights of workers to self-organization, collective bargaining, security of
tenure, and just humane conditions of work.
Art. 4. Construction in favor of Labor.
All doubts in the implementation and interpretation of the provisions of this Code, including
its implementing rules and regulations, shall be resolved in favor of labor.
Statutory Benefits of Workers
- Minimum Wage
 - Overtime, Holiday, Premium, Night Shift Differential Pay
- Thirteenth Month Pay
- Service Leave, Maternity/Magna Carta for Women, Paternity, Solo Parent, VAWC Leave
- Retirement Pay
- SSS
- Pagibig
- PhilHealth
Things to Consider in Determining Applicable Statutory Benefits
- Determine first if there is an employer-employee relationship between parties.
- Determine the number of workers employed 1-5 workers, 1-9 workers, 10 or more
workers.
- Determine the nature of employment, Agricultural, Retail/Service Establishments, etc.
Rattan, Inc., et al. v. Coming, G.R. No. 186621, March 12, 2014
To ascertain the existence of an employer-employee relationship, jurisprudence has invariably
adhered to the four-fold test, to wit:
(1) the selection and engagement of the employee;
(2) the payment of wages;
(3) the power of dismissal; and
(4) the power to control the employee’s conduct or the so called “control test.” (most
important)
Exemption from the Minimum Wage Law
Per the Rules on Exemption, the following categories of establishments may be exempted upon
application with and as determined by the Board:
 distressed establishments
 new business enterprises
 retail/service establishments employing not more than 10 workers
 establishments adversely affected by natural calamities
The Boards may also exempt establishments other than those enumerated above only if they are
in accord with the rationale for exemption stated in the Rules on Exemption and upon strong
justifiable reasons.
NO WORK NO PAY POLICY (J.P HEILBRONN CO. vs. NATIONAL LABOR UNION,
G.R. No. L-5121, January 30, 1953)
In the case of San Miguel Brewery, Inc. vs. National Union, et al., case No. 271-V, in passing
upon a demand of laborers for their wages corresponding to the days that they were on strike,
said CIR held:
As to demand for the payment of the wages that the strikers lost on occasion of their strike on
November 22, 1948, the Court understands that a strike is a voluntary and deliberate
cessation of work on the part of the workers. Upon this consideration and based on the
equitable tenet of a fair day’s wage for a fair day’s labor, this demand falls of its own weight
and must be, as it is hereby, denied.
REPUBLIC ACT OF THE PHILIPPINES vs. MINERVA M.P. PACHEO, G.R. No. 178021,
January 25, 2012
If there is no work performed by the employee there can be no wage or pay, unless of
course the laborer was able, willing and ready to work but was illegally locked out,
dismissed or suspended. The “No work, no pay” principle contemplates a “no work”
situation where the employees voluntarily absent themselves.
In this case, the petitioner was forced to forego her continued employment and did not just
abandon her duties. In fact, she lost no time in protesting her reassignment as a form of
constructive dismissal. It is settled that the filing of complaint for illegal dismissal is inconsistent
with a charge of abandonment. The filing of complaint is proof enough of his desire to return to
work, thus negating any suggestion of abandonment.
Overtime, Holiday, Premium, Night Shift Differential Pay
Article 87. Overtime Work. Work may be performed beyond eight (8) hours a day provided that
the employee is paid for the overtime work, an additional compensation equivalent to his
regular wage plus at least twenty-five percent (25%) thereof.
Work performed beyond eight hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least
thirty percent (30%) thereof.
Overtime Not Presumed
STOLT-NIELSEN MARINE SERVICES (PHILS.) INC. vs. NLRC, G.R. No. 109156 July
11,1996
“The contact provision means that the fixed overtime pay of 30% would be a basis for computing
the overtime pay if and when the overtime work would be rendered.
Simply stated, the rendition of overtime work and the submission of sufficient proof that
the said work was actually performed are conditions to be satisfied before a seaman could
be entitled to overtime pay which would be computed on the basis of 30% of the basic
monthly salary pay.
In short the contract provision guarantees the right to overtime pay but the entitlement to such
benefit must first be established.
Article 93. Compensation for rest day, Sunday or holiday work.
Where an employee is made permitted to work on his scheduled rest day, he shall be paid an
additional compensation of at least thirty percent (30%) of his regular wage.
An employee shall be entitled to such additional compensation for work performed on Sunday
only when it his established rest day.
Work performed on any special holiday shall be paid an additional compensation of at least
thirty percent (30%) of the regular wage of the employee. Where such holiday work falls on
the employee’s scheduled rest day, he shall be entitled to and additional compensation of at
least fifty percent (50%) of his regular wage.
Article 86. Night shift differential. 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.
Art.94 Right to holiday pay.
Every worker shall be paid his regular daily wage during regular holidays, except in retail
and service establishments regularly employing less than ten (10) workers;
The employer may require an employee to work on any holiday but such employee shall be
paid a compensation equivalent to twice his regular rate; and
As used in this Article “holiday” includes: New Year’s Day, Maundy Thursday, Good Friday, the
ninth of April, the first of May, twelfth of June, the fourth of July, the thirtieth of November, the
twenty-fifth and thirtieth of December and the day designated by law for holding a general
election.
Salary Differential Jurisprudence
REYMAN G. MINSOLA vs NEW CITY BUILDERS INC, G.R. No. 207613, January 21.
2018
In claims for payment of salary differential, service incentive leave, holiday pay, and 13th
month pay, the burden rests on the employer to prove payment.
This standard follows the basic rule that in all illegal dismissal cases the burden rests on the
defendant to prove payment rather than on the plaintiff to prove non-payment.
The likewise stems from the fact that all pertinent personnel files, payrolls, records, remittances
and other similar documents- which will show that the differentials, service incentive leave and
other claims of workers have been paid- are not in the possession of the worker but are in the
custody and control of the employer.
On the other hand, for overtime pay, premium pays for holidays and rest days, the burden
is shifted on the employee, as these monetary claims are not incurred in the normal course
of business.
It is thus incumbent upon the employee to first prove that he actually rendered service in excess
of the regular eight working hours a day, and that he in fact worked on holidays and rest days.
13th Month Pay and Bonus PRESIDENTIAL DECREE NO. 851
“Section 1. Payment of 13-month Pay All employers covered by Presidential Decree No. 851,
hereinafter referred to as the “Decree”, shall pay to all their employees receiving basic salary of
not more than P1,000 a month a thirteenth-month pay not later than December 24 of every
year.
Section 2. Definition of certain terms as used in this issuance.
(a) “Thirteenth-month pay” shall mean one twelfth (1/12) of the basic salary of an
employee within a calendar year,”
Ripened into Management Practice
Arco Metal Products Cp, Inc. and Mrs. Salvador Uy vs SAMARM-NAFLU, GR 170734, May
14, 2008
“Any benefit and supplement being enjoyed by employees cannot be reduced, diminished,
discontinued, or eliminated by the employer.
The principle of non-diminution of benefits is founded on the Constitutional mandate to
“protect the rights of workers and promote their welfare,” and to afford labor full
protection.
Said mandate in turn is the basis of Article 4 of the Labor Code which states that “all doubts in
the implementation and interpretation of this Code, including its implementing rules and
regulations shall be rendered in favor of labor.”
Jurisprudence is replete with cases which recognize the right of employees to benefits which
were voluntarily given by the employer and which ripened into company practice.
SERVICE LEAVE, MATERNITY LEAVE, MAGNA CARTA FOR WOMEN
PD 442, Article 95. Service Incentive Leave Every employee who has rendered at least one
year of service shall be entitled to a yearly service incentive leave of five days with pay.
(Now ten days)
R.A No. 9710, Section 18, Special Leave for Women. – A woman employee having rendered
continuous aggregate employment service of at least six (6) months for the last twelve (12)
months shall be entitled to a special of two (2) months with full pay based on her gross
monthly compensation following surgery caused by gynecological disorders.
Paternity, Solo Parent, VAWC Leave
Republic Act 8972: Solo Parents’ Welfare Act of 2000
Section 6. Flexible Work Schedule. – The employer shall provide for a flexible working
schedule for solo parents: Provided, That the same shall not affect individual and company
productivity: Provided further, that any employer may request exemption from the above
requirements from the DOLE on certain meritorious grounds.
Section 8. Parental Leave. – In addition to leave privileges under existing laws, parental leave
of not more than seven (7) working days every year shall be granted to any solo parent
employee who has rendered service of at least one (1) year.
REPUBLIC ACT NO. 8187, Paternity Leave Act 1996
SEC. 2. Notwithstanding any law, rules and regulations to the contrary, every married male
employee in the private and public sectors shall be entitled to a paternity leave of seven (7)
days with full pay for the first four (4) deliveries of the legitimate spouse with whom he is
cohabiting.
The male employee applying for paternity leave shall notify his employer of the pregnancy of his
legitimate spouse and the expected date of such delivery.
RA 9262 Anti-Violence Against Women and Their Children Act of 2004
SECTION 43. Entitled to Leave. – Victims under this act shall be entitled to take a paid leave of
absence up to ten (10) days in addition to other paid leaves under the Labor Code and Civil
Service Rules and Regulations, extendible when the necessity arises as specified in the
protection order.
Any employer who shall prejudice the right of the person under this section shall be penalized in
accordance with the provisions of the Labor Code and Civil Service Rules and Regulations.
Likewise, an employer who shall prejudice any person for assisting a co-employee who is a
victim under this Act likewise be liable for discrimination.

RETIREMENT PAY
Article 287, Retirement. Any employee may be retired upon reaching the retirement age
established in the collective bargaining agreement or the applicable employment contract.
In case of retirement, the employee shall be entitled to receive such retirement benefits as he may
have earned under existing laws and any collective bargaining agreement and other agreements:
Provided, however, that an employee’s retirement benefits under any collective bargaining and
other agreements shall not be less than those provided therein.
In the absence of a retirement plan or agreement providing for retirement benefits of
employees in the establishment, an employee upon reaching the age of sixty (60) years or
more, but not beyond sixty-five (65) years which is hereby declared the compulsory
retirement age, who has served at least five (5) years in the said establishment, may retire
and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every
year of service, a fraction of at least six (6) months being considered as one whole year.
SEPARATION PAY
ART. 283. CLOSURE OF ESTABLISHMENT AND REDUCTION OF PERSONNEL
The employer may also terminate the employment of any employee due to the installation of
labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation
of operation of the establishment or undertaking unless the closing is for the purpose of
circumventing the provisions of this Title, by serving a written notice on the workers and the
Ministry of Labor and Employment at least one (1) month before the intended date thereof.
In case of termination due to the installation of labor-saving devices or redundancy, the worker
affected thereby, shall be entitled to a separation pay equivalent to at least his one (1) month pay
for every year of service, whichever is higher.
In case of retrenchment to prevent losses and in cases of closures or cessation of operations of
establishment or undertaking not due to serious business losses or financial reverses, the
separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay
for every year of service, whichever is higher. A fraction of at least six (6) months shall be
considered one (1) whole year.
BUSINESS CLOSURE
G.J.T. REBUILDERS MACHINE SHOP vs RICARDO AMBOS, G.R. No. 174184,
January 28, 2015
The only time employers are not compelled to pay separation pay is when they closed their
establishments or undertaking due to serious business losses or financial reverses.
Serious business losses are substantial losses, not de minimis, “Losses” means that the
business must have operated at a loss for a period of time the employer “to (have) perceived
objectively and in good faith” that the business’ financial standing is unlikely to improve in
the future.
The burden of proving serious business losses is with the employer. The employer must show
losses on the basis of financial statements covering a sufficient period of time. The period
covered must be sufficient for the National Labor Relations Commission and this court to
appreciate the nature and vagaries of the business.
In North Davao Mining Corporation v. NLRC, North Davao Mining Corporation presented in
evidence financial statements showing a continuing pattern of loss from 1988 until its
closure in 1992. The company suffered net losses averaging 3 billion a year, with an aggregate
loss of 20 billion by the time of its closure. This court found that North Davao suffered serious
business losses.
Final fee of the employee should be paid 30 days from the date of separation, it should not be
over 30 days.
SSS, PAGIBIG, PHILHEALTH
R. A. No. 11199 “Social Security Act of 2018”
Section 2. Declaration of Policy. – It is the policy of State to establish, develop, promote and
perfect a sound and viable tax-exempt social security system suitable to the needs of the
people throughout the Philippines which shall promote social justice through savings, and
ensure meaningful social security protection to members and their beneficiaries against the
hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss
of income or financial burden.
PRESIDENTIAL DECREE NO. 1752, AS AMENDED, “HOME DEVELOPMENT MUTUAL
FUND LAW OF 1980.”
SEC. 2. Policy. – It is the policy of the Republic of the Philippines to motivate the employed
and other earning groups to better plan and provide for their housing needs by
membership in an integrated, nationwide savings system established for the said purpose,
with contributory support of the employers, in the spirit of social justice and the pursuit national
development.
R.A. 10606 “National Health Insurance Act of 2013”
“SEC. 2. Declaration of Principles and Policies. – It is hereby declared the policy of the State to
adopt an integrated and comprehensive approach to health development which shall endeavor to
make essential goods, health and other social services available to all the people at
affordable cost and to provide free medical care to paupers.
Towards this end, the State shall provide comprehensive health care services to all Filipinos
through a socialized health insurance program that will prioritize the health care needs of the
underprivileged, sick, elderly, persons with disabilities (PWDs), women and children and
provide free health care services to indigents.
 Performance Management and Appraisal
HRM in Action: Employee Engagement as a Strategic HR Tool
Employee engagement refers to the level of commitment workers make to their employer, seen
in their willingness to stay at the firm and to go beyond the call of duty.
- A company that has demonstrated the value of employee engagement is John Lewis, who
sell a range of household goods, clothes, and electronics. The John Lewis business
model has been hailed as a good way to run public services and 70,000 store employees
recently received a slice of a £151.3 million bonus. John Lewis is facilitated by its
unusual employee-owned structure.
Employees are known as partners and the company is run by Partnership Council,
Partnership Board, and a chairman.
Performance management (PM)- Goal-oriented process directed toward ensuring that
organizational processes are in place to maximize the productivity of employees, teams, and
ultimately, the organization.
performance appraisal (PA)- Formal system of review and evaluation of individual or team
task performance.
Uses of Performance Appraisal
 Human Resource Planning
 Recruitment and Selection
 Training and Development
 Career Planning and Development
 Compensation Programs
 Internal Employee Relations
 Assessment of Employee Potential
career planning is an ongoing process whereby an individual sets career goals and identifies the
means to achieve them. On the other hand, career development is a formal approach used by the
organization to ensure that people with the proper qualifications and experiences are available
when needed.
Performance Appraisal Process
- Identify Specific Performance Appraisal Goals
- Establish performance Criteria and Communicate Them to Employees
- Examine Work Performed
- Appraise Performance
- Discuss Appraisal with Employee
Establish Performance Criteria (Standards)

Most Common Appraisal Criteria

- Traits
- Behaviors
- Competencies
- Goal Achievement
- Improvement Potential
Competencies include a broad range of knowledge, skills, traits, and behaviors that may be
technical in nature, relate to interpersonal skills, or are business-oriented.
Research conducted by the University of Michigan Business School and sponsored by the
Society for Human Resource Management (SHRM) and the Global Consulting Alliance
determined that success in HR is dependent on competency and specific skills in the following
five key areas:
- Strategic contribution: Connecting firms to their markets and quickly aligning employee
behaviors with organizational needs.
- Business knowledge: Knowing how businesses are run and translating this into action.
- Personal credibility: Demonstrating measurable value; being part of an executive team.
- HR delivery: Providing efficient and effective service to customers in the areas of
staffing, performance management, development, and evaluation.
- HR technology: Using technology and Web-based means to deliver value to customers.
Responsibility for Appraisal- Human resource department, it is essential that line managers
play a key role from beginning to end.
- Immediate Supervisor
- Subordinates
- Peers and Team Members
- Self-Appraisal
- Customer Appraisal
Appraisal Period (annually or semi-annually)
Some organizations use the employee’s date of hire to determine the rating period. At times a
subordinate’s first appraisal may occur at the end of a probationary period, anywhere from 30 to
90 days after his or her start date. However, in the interest of consistency, it may be advisable to
perform evaluations on a calendar basis rather than on anniversaries.
Performance Appraisal Methods
360-degree feedback evaluation method- Popular performance appraisal method that involves
evaluation input from multiple levels within the firm as well as external sources.
Rating Scales Method- Performance appraisal method that rates employees according to
defined factors.
Critical Incident Method- Performance appraisal method that requires keeping written records
of highly favorable and unfavorable employee work actions.
Essay Method- Performance appraisal method in which the rater writes a brief narrative
describing the employee’s performance.
Work Standards Method- Performance appraisal method that compares each employee’s
performance to a predetermined standard or expected level of output.
Ranking Method- Performance appraisal method in which the rater ranks all employees from a
group in order of overall performance.
Paired comparison is a variation of the ranking method in which the performance of each
employee is compared with that of every other employee in the group.
Forced Distribution Method- Performance appraisal method in which the rater is required to
assign individuals in a work group to a limited number of categories, similar to a normal
frequency distribution.
Behaviorally Anchored Rating Scale Method- Performance appraisal method that combines
elements of the traditional rating scale and critical incident methods; various performance levels
are shown along a scale with each described in terms of an employee’s specific job behavior.
Results-Based System- Performance appraisal method in which the manager and subordinate
jointly agree on objectives for the next appraisal period; in the past a form of management by
objectives.
Problems in Performance Appraisal
- Appraiser Discomfort
- Lack of Objectivity
- Halo Error- Evaluation error that occurs when a manager generalizes one positive
performance feature or incident to all aspects of employee performance, resulting in a
higher rating.
- horn error- Evaluation error that occurs when a manager generalizes one negative
performance feature or incident to all aspects of employee performance, resulting in a
lower rating.
- Leniency/Strictness
Leniency- Giving an undeserved high performance appraisal rating to an employee.
Strictness- Being unduly critical of an employee’s work performance.
- Central Tendency- Evaluation appraisal error that occurs when employees are
incorrectly rated near the average or middle of a scale.
- Recent Behavior Bias
- Personal Bias (Stereotyping)
- Manipulating the Evaluation
- Employee Anxiety
 Characteristics of an Effective Appraisal System
 Job-related criteria
 Performance Expectations
 Standardization
 Trained Appraisers
 Continuous Open Communication
 Conduct Performance Reviews
 Due Process
Legal Implications
Perfect systems are not expected, and the law does not preclude supervisory discretion in the
process. However, the courts normally require these conditions:
- Either the absence of adverse impact on members of protected classes or validation of the
process.
- A system that prevents one manager from directing or controlling a subordinate’s career.
- The appraisal should be reviewed and approved by someone or some group in the
organization.
- The rater, or raters, must have personal knowledge of the employee’s job performance.
- The appraisal systems must use predetermined criteria that limit the manager’s discretion.
Appraisal Interview- The appraisal interview is the Achilles’ heel of the entire evaluation
process.
 Scheduling the Interview- Supervisors usually conduct a formal appraisal interview at
the end of an employee’s appraisal period.
 Interview Structure- A successful appraisal interview should be structured in a way that
allows both the supervisor and the subordinate to view it as a problem-solving rather than
a fault-finding session. The manager should consider three basic purposes when planning
an appraisal interview:
1. Discuss the employee’s performance. Focus on specific accomplishments.
2. Assist the employee in setting goals and personal-development plans for the next
appraisal period.
3. Suggest means for achieving established goals, including support from the manager
and firm.
 Use of Praise and Criticism
 Employees’ Role
 Concluding the Interview

RECRUITMENT AND SELECTION

Recruitment is the process of identifying, screening, shortlisting and hiring of the potential
human resources for the purpose of filling up the positions within the organizations.
Recruitment is the process of selecting the right person, for the right position at the right time.
It is the process of attracting, selecting and appointing potential candidates to meet the needs and
requirements of the organizations.
Taken into consideration when recruitment takes place:
 Educational qualifications
 Experience
 Abilities and skills
Recruitment takes place:
Internally: within the organization (includes the size of the organization, recruiting policy,
image of organization, and image of job)
Externally- from the usage of external sources (includes demographic factors, labor market,
unemployment rate, labor laws, legals considerations and competitors)
Selection is the process of picking or choosing the right candidate, who is most suitable for the
job. It is the process of interviewing the candidates and evaluating their qualities, which are
necessary for a specific job and then selection of the candidates is made for the right positions.
Recruitment is called a positive process with its approach of attracting as many candidates as
possible for the vacant positions. It is the process of identifying and making potential candidates
to apply for the jobs. On the other hand, selection is called a negative process with the
elimination of many candidates as possible.
Factor Affecting Recruitment and Selection
Internal:
 Size of the Organization- The size of the organization is one of the most important
factors affecting the recruitment process. To develop business, recruitment planning is
mandatory for hiring more resources, which will be crucial in the management of future
operations.
 Recruitment Policy- Recruitment policy of an organization, includes hiring from the
internal or external sources of organization. It is an important factor, which affects the
recruitment process. It identifies the objectives of recruitment and provides a framework
for the implementation of recruitment programs.
 Image of the Organizations- - Organizations having a good positive image in the market
can easily attract competent and proficient resources. Maintaining good public relations,
providing public services, and leading to goodwill of the organizations, definitely helps
an organization in improving its reputation in the market, and thereby draw the best
possible human resources.
 Image of Jobs - Just like the image of the organization, the image of jobs contribute a
critical role in the recruitment and selection processes. Jobs having a positive image in
terms of better remuneration, promotions, recognition, and amiable working environment
 with career development opportunities are considered as the characteristics to arouse
interest and enthusiasm within qualified candidates.

External:
 Demographic Factors- Demographic factors are related to the characteristics of
potential employees such as, their age, religion, educational qualifications, gender,
occupation, economic status, and place of location.
 Labour market – Labour market exercises control on the demand and supply of
labour. For example, if the supply of people having specific skills and abilities is less
than the demand, then the hiring will require more efforts. On the other hand, if the
demand is less than the supply, then hiring will be relatively more manageable.
 Unemployment rate – If the unemployment rate is high in a specific area, hiring of
human resources will be simple and manageable, as there will be an increase in the
number of applicants. For various job positions in all types of organizations, large
number of applications are received. In contrast, if the unemployment rate is low, then
recruiting tends to be difficult due to lesser number of resources.
 Labour laws – Labour laws reflect the social and political environment of the
market, which are created by the central and the state governments. These laws
dictate the compensation, working environment, safety and health regulations, and the
job duties of the workforce, for different types of employments. As the governments
undergo transformations, there are transformations that come about in the labour
laws.
 Legal Considerations- Job reservations for different castes such as Scheduled Tribes,
Scheduled Castes, and Other Backward Classes are the best examples of legal
considerations. These considerations, passed by government, will have a positive or
negative impact on the recruitment policies of the organizations.
 Competitors- When organizations in the same industry are competing for the best
qualified resources, there is a need to analyse the competition and make provision of
the resources packages that are finest in terms of the industry standards.
 Equal Opportunity- When recruitment and selection of the employees take place,
then it is vital to take into consideration, equal employment opportunities for the
individuals. Equal opportunity results when all the applicants are treated on an equal
basis and consistently at every stage of recruitment. There should not be any
discrimination against anybody on the basis of factors, such as, caste, creed, race,
religion, ethnicity, gender and socio-economic background. Fairness and justness is of
principal significance in the recruitment and the selection processes.
Posting Vacancies
Job posting refers to the practice of publicising and displaying advertisements of an open job to
the employees.
Recruitment and Selection Process
Elements in the Recruitment Process
 Job Vacancy- The first step is when vacancy arises within the organization. One should
be aware of the vacant positions and by when they should get filled with capable
employees. Job vacancy enables the individuals to determine the factors, such as,
redesigning, or initiating part time employment opportunities for the individuals. In some
cases, vacant positions may get filled with qualified candidates rapidly, whereas in others,
it may be a time consuming process. One should implement measures to reduce the risks
associated with recruitment. The existing employees should see that there is a potential
career path within the organization, which may motivate them to stay longer.
 Job Analysis- Two main factors need to be taken into consideration regarding job
analysis. First is expectation of the employers from their employees, within the
organization, the employers have certain expectations from their employees regarding
performance of job duties, and they expect them to inculcate the traits of regularity,
diligence, resourcefulness, conscientiousness and creativity. The other areas that need to
be taken into consideration are the characteristics of the job. These include, training,
work experience, skills and knowledge, physical attributes, personality traits,
communication skills and personal circumstances. Development and utilization of well-
structured questions based on the profile of the employees will help in getting the better
insight of the true personality of the candidate.
 Attracting Candidates – In attracting candidates for the jobs, there are two important
sources that need to be taken into consideration, internal recruitment and external
recruitment. In the case of internal recruitment, the following advantages are, it reduces
recruitment costs, internal employees are already familiar with all the aspects of the
organization, its goals, objectives etc. It can act as a motivating factor for others in the
business by displaying that it is possible to acquire promotional opportunities and the
employers are already familiar with the person, within the organization. Sources of
external recruitment includes, websites, advertisements in newspapers, journals,
magazines, recruitment agencies, consultants, employment fairs, and seminars.
 Screening Candidates- The purpose of the screening process is to narrow down the
field, so that one is able to spend more time with the candidates for formal interviews.
Large numbers of applications are received for the positions, and all the applicants are not
called for the interviews, hence, it is vital for the employers to screen the candidates to
select the most suitable ones for the interviews. In the number of applications received,
screening is done on the basis of factors such as, educational qualifications, experience,
skills, and so forth. When this process has been effectively implemented, only then the
screening process takes place. After the screening process is implemented in an adequate
manner, then interviews are organized for the candidates.
 Interviewing Candidates- The important aspects that need to be taken into account for
interviewing candidates include, ensuring that proper notice is given regarding the date
and time of the interview, ensuring that the candidates are aware that they should reach
the premises on time, ensuring that they are clear where to go and whom they should
contact on arrival and ensuring that they are aware of the documents that need to be
brought along in the interview. These aspects contribute in preparing the candidates on
the complete basis for the interview. The employers or the interviewers need to review
the resume and all the job applications before interviewing the candidates. It is vital to
implement time management skills for the interview processes, so that they can be
completed on time.
  Selecting and Appointing Candidates- The methods of selecting and appointing
candidates are different in various organizations. The procedures generally include the
steps, such as, the selection of the candidate, verbal communication of his or her
appointment, medical completed if appropriate, sending of appointment letters and
signing the contract. Selecting and appointing candidates depend upon the urgency of
getting the vacancy filled. When job vacancies are to be urgently filled, then selecting
and appointing of candidates may take place immediately after the interviews. In some
organizations, candidates are appointed on an immediate basis, after their selection and
other formalities, such as giving appointment letters or signing the contract.
 Induction and Training- Induction is the process of receiving and welcoming of the
employees, after they have been selected and providing them the required training needed
to settle down adequately. Induction has three aims, to smooth the early stages, when
everything is likely to be extraordinary and unfamiliar to the new employees. To establish
a positive attitude of the organization within the mind-sets of the employees, so that they
are likely to stay for a long term and to obtain effective output from new employees in
short period of time. Training is referred to making use of methods and strategies to
enhance the awareness, knowledge and information among the employees. Various
training methods include, role plays, vestibule training, field visits, and lectures. The
employees should receive on the job and off the job training to generate information
regarding history, personnel, goals and performance of job duties. The main purpose of
training is to balance the needs and requirements of the organizations and human
resources.
 Employee Evaluation- Monitoring the performance of the employees is an essential
aspect within the organization. It is necessary to evaluate the employees from time to
time in order to monitor enhancement of productivity and their performance. The
methods of employee evaluation help in identifying the limitations and the measures that
are required to get implemented to improve them. Monitoring the performance of the
employees is stated as an on-going activity and new employees can be trained in a better
way to enhance productivity. The evaluation process can tell whether the recruitment
process is working efficiently or are there any changes and transformations that need to
be brought about. The main purpose is to ensure that the quality of the employees get
enhanced that are recruited within the organizations. This is imperative to improve
employee productivity and to achieve the organizational goals and objectives.
Types of Recruitment
Internal Recruitment- Internal sources of recruitment refer to the hiring of employees within
the organization internally. In this case, applicants are seeking different positions and are those
who are currently employed within the same organization.
Internal Sources:
 Promotions- Promotion refers to advancement of the employees by evaluating their job
performance. When the employers, managers and supervisors feel satisfied with the
performance of the employees, they promote them to an upper level within the
organization and it leads to an increase in pay and benefits. It is the process of shifting an
employee from a lower position to a higher position with more responsibilities,
 remuneration, facilities, and status. Internally, many organizations fill the vacant
positions at higher levels with the process of promotions.
 Transfers- Transfer refers to the process of interchanging from one job to another
without any change in the designation and responsibilities. It can also be the shifting of
the employees from one department to another department or from one location to
another, depending upon the requirement of the position. Transfers are normally based on
the job requirements and the capabilities of the employees. If the organization has two
branches, then it may take place between two branches. The internal shifting of the
employee from one branch to another is known as transfer.
 Recruitment of former employees- Recruitment of former employees is a process of
internal sources of recruitment, wherein the ex-employees are called back, depending
upon the requirement of the positions. This process is cost effective and saves plenty of
time and money. The other major benefit of recruiting former employees is that they are
well aware of the organization, the roles and responsibilities of the job and personnel.
The employers are well versed with their personality traits and approaches and the
organization is not required to undertake much stress regarding their training and
development.
 Internal Advertisements or Job Postings- Internal advertisements are referred to as the
processes of posting and advertising jobs within the organization. These job postings are
an open invitation to all the employees within the organization, where they can apply for
the vacant positions. It makes provision of equal opportunities to all the employees.
Hence, the recruitment will be carried out from within the organization and it involves
less expenses.
 Employee Referrals- Employee referrals is an operative way of sourcing the right
candidates at a low cost. It is the process of hiring new capitals through the references of
the employees, who are currently employed within the organization. In this process, the
present employees can refer their friends and relatives for filling up the vacant positions.
Organizations inspire employee referrals, the reason being, it is lucrative and saves time
as compared to hiring candidates from external sources. In most cases, employees are
stimulated and motivated towards the performance of job duties, by giving them benefits,
incentives and rewards for their performance.
 Previous Applicants- In this case, the hiring team examines the profiles of previous
applicants from the organizational recruitment database. These applicants are those, who
have applied for jobs in the past. These individuals can be easily contacted and the
response will be positive in most cases. It saves cost and employees are well aware of all
the features of the organization and the performance of their job duties. It is also an
economical way of filling up the vacant positions.
External Sources of Recruitment- refer to hiring of the employees outside the organization
externally. In other words, the applicants seeking job opportunities in this case are those, who
are external to the organization. External employees bring innovativeness, resourcefulness,
creativity and new thoughts and ideas to the organization.
External Sources:
 Direct Recruitment- Direct recruitment refers to the external source of recruitment,
where the recruitment of qualified candidates are carried out by putting a notice
 regarding job vacancy on the notice board of the organization. This method of
sourcing is also called as factory gate recruitment. This is in most cases used to
recruit blue collar and technical workers.
 Employment Exchanges- As per the law, for certain job vacancies, it is compulsory
that the organization provides details to the employment exchange. Employment
exchange is a government entity, where the details of the job seekers are deposited
and given to the employers for filling the vacant positions. This source of external
recruitment is accommodating in hiring of the unskilled, semi-skilled, and skilled
workers.
 Employment Agencies- Employment agencies are external sources of recruitment.
They are functioned by various sectors, such as private, public and government. It
provides, unskilled, semi-skilled and skilled resources in accordance to the needs and
requirements of the organizations. The job seekers usually register themselves with
employment agencies and in this way, they have a database of qualified candidates
and organizations can use their services at the time of requirement.
 Advertisements- Advertisements are the most prevalent and common external
sources of recruitment. The job vacancy is displayed through various print and
electronic media with a specific job description and specifications of the
requirements. Advertisements regarding jobs are displayed in newspapers, magazines
and on the websites. Making use of advertisements is the best way to source
candidates in a short span and it provides an efficient way of screening the specific
requirements of the candidates.
 Professional Associations- Professional associations can help the organizations in
hiring professional, technical, and managerial personnel, however, they focus on
sourcing mid-level and top-level resources. There are many professional associations
that perform the roles of facilitators between the organizations and the job-seekers.
 Campus Recruitment- Campus recruitment is an external source of recruitment,
where the educational institutions such as, colleges and universities make provision of
information to the students regarding employment opportunities. It is when
opportunities are made available for hiring students. In this process, the organizations
visit technical, management, and professional institutions for recruiting students
directly for new positions.
 Word of Mouth Advertising- Word of mouth is an imperceptible way of sourcing
the candidates for filling up the vacant positions. There are many reputed
organizations with good image in the market. Such organizations only need a word of
mouth advertising regarding a job vacancy to arouse interest and enthusiasm among
large number of candidates.
Types of Interview
An interview is a determined exchange of notions, the answering of questions and
communication between two or more persons. Normally, an interview is a process of private
conversation between people, where questions are asked and answers are obtained.
An interview refers to a discussion with one or more persons acting as the role of an interviewer,
who ask questions and the person, who answers the questions acts as the role of an interviewee.
Interviews can be either formal or informal, structured or unstructured. Interviews can be
carried out on a one to one basis or in groups, they can be conducted over telephone or
through video conferencing

10 types of Interview
 Structured Interview- In this type, the interview is planned, designed and detailed in
advance. A structured interview is pre-planned, precise, and reliable in hiring the
candidates.
 Unstructured Interview- This type of interview is an unexpected one, where the
interview questionnaire is not prepared. The interviewers are not well prepared regarding
the questions that are to be asked and in obtaining accurate answers. Here, the usefulness
of the interview is less and there is a waste of time and effort of both the interviewer and
the interviewee to a large extent.
 Group Interview- In this type of interview, all the candidates or a group of candidates
are interviewed together. Group interviews are conducted to save time, when there are
large number of applications received for limited job vacancies. In this case, a subject
will be given to the candidates to get engaged in group discussions and the interviewer
judges the innovativeness and behaviour of each candidate within the group.
 Depth Interview- Depth interview is a semi-structured interview, where the candidates
have to give detailed information about their educational qualifications, work experience,
special interests, skills, aptitude and so forth. In this case, all the information about the
candidate is known first and then the interviewer takes a depth interview and begins
analysing the expertise and proficiency of the candidate. This interview enables the
interviewer to acquire detailed information, so that the selection process becomes more
manageable.
 Stress Interview- Stress interviews are conducted to ascertain how a candidate would
react during the time of stress and cope up with problems. In this type of interview, the
interviewer will come to know whether the candidate can deal in an effective manner
with the demands and needs of a complicated job. The candidate, who maintains his self-
control during a stress interview is normally the right person to handle a stressful job.
 Individual Interview- In an individual interview, the interview takes place on a one to
one basis. In this case, there will be a verbal and a visual interaction between two people,
an interviewer and a candidate. This is a two-way communication interview, which helps
in finding the right candidate for a vacant job position. In this case, an interviewer may
make use of open-ended and close-ended questions. Open-ended questions may involve
elaborate explanations of the answers and close-ended questions involve one word
answers, such as yes, no etc.
 Informal Interview- Such interviews are conducted in an informal way, i.e., the
interview will be stable without any written communication and can be arranged at any
place. There are not any proper procedures of asking questions in this type of interview
and it is not adequately structured. It is more like an informal conversation between the
individuals and takes place in a friendly manner.
  Formal Interview- A formal interview is organized in a formal manner, i.e., the
candidate will be aware about the dates and timings of the interview well in advance and
the interviewer plans and prepares the questions for the interview. This is also called as a
planned interview. In this case, the interviewee is supposed to provide accurate answers
to all the questions asked by the interviewer.
 Panel Interview- Panel interview, as the name indicates, is being conducted by a group
of people. In this type of interview, three to five members of the selection committee will
be asking questions to the candidates on various concepts. The final decision of selection
of the candidates will be taken by all the members of the panel collectively.
 Exit Interview- Exit interviews are conducted for those employees, who want to leave
the organization. The significance of the exit interview is to ascertain the reasons behind
leaving the job. There are several reasons for which the employees leave jobs, such as,
transfer to another location, health problems, promotional opportunities in other
organizations, availability of rewards and incentives in other organizations, family issues
and so forth.
TRAINING AND DEVELOPMENT
An Instructional System is composed of (1) Problem Diagnosis (Performance Analysis, Need
Analysis or Skills Gapping), (2) Program Design, (3) Program Delivery, and (4) Program
Evaluation.
Training/development is never a finished product. There are always continued revisions to meet
goals, situations change, and goals also change. It should be kept in mind that there may be a
"sleeper effect" where it takes time for results to show up back on the job. One also does not
know how long the impact will last. Interest in training and development has risen due to the
need for a wider array of skills, awareness of the entire production system, the need to be
responsive to mishaps, changing customer needs, interest in building clusters of internal team
experts, more vocal concern over employment security, career growth, and retraining costs.
HR Training and Development Methods
Employee Orientation (Onboarding) = Basic background information is provided. The history
of the organization, culture and the basics of various HR subjects are covered. The aim is to
make the employee feel welcome, provide a general understanding of the organization, and start
to socialize them with regard to the policies and procedures (how one should act)
Job Instruction = The trainer explains the job in its proper sequence and demonstrates how it
should be done. The trainee tries to replicate the methods, and receives feedback from the trainer.
Coaching (Understudy Method) = On a day-to-day basis the manager notes what the employee
is doing properly and improperly. The trainer should provide advice on how the trainee can do
his/her job more easily and effectively. Some supervisors, however, are reluctant to challenge or
criticize.
Informal Learning (The Buddy System) = Employees learn much from peers. Surveys have
found as much as 80% of what employees learn on the job, they learn informally
Project Teams (Action Learning) = A temporary team, often consisting of people from different
areas or functions, that works on real projects. The results are taught to others.
Mentoring = A figure who is often 8 to 15 years older, and 2 or 3 levels above provides career
advice, hints on how to tackle problems, and demonstrates interpersonal/political skills by
example. The trainee often picks up the mentor's friends and enemies (i.e. "guilt by association").
The process should be monitored so the trainee is not exploited (e.g. the mentor taking credit for
his/her ideas).

Apprenticeship = This normally involves craft positions (plumbers, carpenters, electricians,

linemen, etc.). It normally lasts 2 to 5 years (the average being four years). It primarily involves
on the job training under the direction of an experienced person. It also frequently has a
classroom component. The skilled workmen may want to limit the number of new craftsmen to
further their own interests. A client may be charged the craftsman's rate despite the fact a trainee
did some of the work.
Business (Management) Games = Simulations of what it is like to make top management
decisions.
Case Studies = Trainees are given in-depth descriptions (5 to 30 pages) of the experiences of
disguised organizations. This allows them to see the experiences of numerous managers in a
short period of time. Hopefully, the trainees will not repeat the same mistakes as the characters in
the case. The case, however, is pre-gathered information. Therefore, the trainees do not practice
researching problems. They do normally try to analyze the given information, diagnose
problems, and pose solutions (Dessler, 2011: 156). They never see an actual implementation, nor
have a chance to enact revisions. Essentially, the middle stages of handling problems are
stressed, while the initial and final steps are left out. If groups analyze cases, and grades are at
stake, aspects such as social loafing and political infighting may emerge.
Discussion Method (Incident Method) = Short controversial scenarios (one to three pages), like
"An Exam for Mrs. Smith," are used to spark discussion. There are no "right answers." One can
learn from the experiences of others, and should come to better appreciate others' views. The
trainee should also develop his/her analytic skills and management style. Some people who long
for exact answers dislike the disorganized and open-ended nature of these discussions. This
method can only be effectively carried out in small groups. The nature of the feedback needs to
be monitored ("Well, in my company we had a different experience" versus "No, you are wrong.
That would never work.")
In-basket Exercises = The trainee is given a stack of memos, phone messages and letters. In the
upcoming time frame (one week), the person has too much to do. Therefore, the problems must
be prioritized. Time management must be exercised. In some cases, responses must be drafted. If
the material is really job related, this can be a very useful developmental tool.
Sensitivity Training (T-groups) [Ropes Course, Outward Bound Program, Team Building]
= This method is intended to change interpersonal relationships. A series of somewhat bizarre
exercises will be carried out. The trainee will then discuss the experiences with the other
participants (group analysis). Later, the trainee will put his/her reflections in writing (self-
analysis). These multiple analytic processes are intended to give the trainees greater insight into
the behavior of others and themselves. Ideally, it will build greater understanding and tolerance.
Lecture = The most common training method. This is an economical way to convey information
to large numbers of trainees with a small number of trainers. The amount of content for the time
consumed is generally very high. Normally, this consists of a simple one-way presentation of
information. The lack of social interaction and individualized material is a drawback. The
extensive usage of lectures sometimes results in boredom. The lack of reinforcement and the
ability to practice can pose problems in skill training.
Programmed Instruction (Auto Instructional Techniques) = Modules like the SRA reading
program and computer software packages (CDs, Web sites, Learning Portals, etc.) that promote
self paced learning. There is a question, respond, and feedback cycle (Dessler, 2005: 278).
Ideally, this method will be challenging and individualized. Computers and modules do not get
impatient. Travel time to human presentations is eliminated. Advocates assert the same amount
of material can be learned in one-third the time. The immediate feedback the employee can
receive from self-tests, and the branching the software programs provide to locate the person's
level and build him/her up from there are a plus. Unfortunately, trainees may cheat on the self
tests. Why? They may want to impress or keep up with peers in classroom situations. The lack of
social interaction raises questions about whether critical interpersonal skills are being neglected.
Overall, the costs of the manuals or software can be compared to the benefits of accelerated
learning (Dessler, 2005: 279).
Role Playing = Simulations where the trainees learn by doing. They carry out their prescribed
roles and in the process develop their interpersonal skills.
Behavioral Modeling = First, the trainees are exposed to "model behavior." After observing,
they practice the techniques, get feedback as well as praise, and make revisions. This training
should then be transferred back to the job (Dessler, 2011: 150).
Vestibules/Simulators = Train on the same or at least similar equipment in order to learn how to
operate planes, ships, or autos.
Common Concerns and Suggestions for Improvement
(1) A lack of ongoing measurement and revision has long been a major problem.
Good intentions and large sums of money do not necessarily equal good education. What
are
some possible evaluation criteria?
- knowledge acquisition
- changing attitudes
- problem solving skills
- interpersonal skills
- participant acceptance (trainees’ reactions- enjoyment?)
- knowledge retention
- knowledge transfer
(2) Big ticket training involves a very real risk that you will become the talent supplier for your
competitors.
(3) Some consultants or outside trainers may be more interested in delivering their "tried and
true" program than in sensing the organization's needs.
(4) One should not send mixed or improper signals.
(5) One needs to try to strike the right balance.
(6) Efforts can be made to enhance the meaningfulness of programs.

We will conclude with a list of Human Resource Development Principles. Many of these
principles were mentioned in the discussion above. These are important factors to consider in
each situation.
Distributed Learning = conducting the program over a long enough period of time for the
trainees to be able to digest and apply the material (not trying to do too much, too fast).
Rewards = The trainees should be able to see what is in it for them (praise, recognition,
promotion, etc.).
Feedback = Trainees need to know what progress they are making and what mistakes need
correction.
Motivation = Trainees must want to learn. Some people do not believe it is very easy to motivate
people. If so, you better pick people who are already motivated.
Opportunity to Practice = Trainees should be able to try the techniques they are being taught in
order to make these methods part of their repertoire.
Learning from Many Sources = This heightens the probability you will get the material
through by (a) hitting the mode the person computes on, and (b) providing a broad base for the
points being made which provides helpful reinforcement.
Individual Differences = The trainee's intelligence, motivation, aptitudes and interests should be
taken into account.