Lesson 1 LABOR RELATIONS

WHAT IS Human Resource Management? ✓ attitude surveys, employee handbooks, labor

❑HRM is the policies, practices, and systems that law compliance, relocation, and outplacement
influence employees’ behavior, attitudes, and services, maintaining workplace harmony
performance. •Base salary or wages
❑Many companies refer to HRM as involving •Bonuses
“people practices”. •Incentives tied to performance
❑Process of acquiring, training, appraising, and Example: A sales representative earns a monthly
compensating employees, and of attending to salary plus a commission for meeting sales targets
their labor relation, health and safety, and COMPENSATION and BENEFITS
fairness concerns ✓ salary structures, incentive pay, insurance,
❑Human Resource (HR) refers to all the people vacation, retirements plans, profit sharing, health
who work in an organization called personnel. and wellness & benefit program.
❑Human Resource Management refers to the LEGAL COMPLIANCE
organizational function which includes practices ✓ policies to ensure lawful behavior; safety
that help the organization to deal effectively with inspections, workplace ethics, privacy policies.
its people during the various phases of the PERFORMANCE MANAGEMENT
employment cycle ✓ performance measures, preparation and
WHAT IS Strategy? administration of performance appraisals,
❑According to Jauch and Glueck, “Strategy is a feedback and coaching, discipline.
unified, comprehensive and integrated plan that TRAINING and DEVELOPMENT
relates the strategic advantages of the firm to the ✓ orientation, skills training, development
challenges of the environment.’’ programs, career development, succession
❑It is designed to ensure that the basic planning.
objectives of the enterprise are achieved through FUNCTIONS OF HUMAN RESOURCE
proper execution by the organization. MANAGEMENT
STRATEGIC HUMAN RESOURCE MANAGEMENT MANAGERIAL FUNCTIONS
❑Strategic management is the process of  PLANNING
formulating, implementing and evaluating  ORGANIZING
business strategies to achieve organizational  DIRECTING
objectives.  COORDINATING
❑Human Resources management has an  CONTROLLING
important role to play in equipping organizations
to meet the challenges of an expanding and PLANNING
increasingly competitive sector. ✓refers to the job of determining a proposed
KEY AREAS OF HUMAN RESOURCE mode of action based upon a full understanding
MANAGEMENT of the factors involved, and directed at specific
objectives which into consideration the priorities
 ANALYSIS AND DESIGN OF WORK desired by management.
 RECRUITMENT & STAFFING ✓Involves the ability to analyze projected
 LABOR RELATIONS programs and policies in the light of conditions
 COMPENSATION AND BENEFITS related to objectives.
 LEGAL COMPLIANCE ORGANIZING
 PERFORMANCE MANAGEMENT ✓refers to the arrangement and relationships of
 TRAINING & DEVELOPMENT jobs and position which are necessary to carry
ANALYSIS and DESIGN OF WORK out the personnel programs as determined by top
✓ Job analysis, work analysis, job descriptions management.
RECRUITMENT and STAFFING ✓To ensure the smooth operation of the various
✓ recruiting, posting JD, interviewing, testing, activities required in achieving the objectives.
coordinating use of temporary employees

DIRECTING
✓concerned with the guidance of all efforts  Strategic human resource management
toward a stated objective. focuses on various aspects or objectives in
✓Provides a means of putting plans into action order to identify critical or complex issues
through effective supervision, work rules, and (elements) or elements of success related to
procedures. manpower and make strategic decisions that
✓If workers know their duties and have a long-term impact on the success and
responsibilities, they can work with greater conduct of the organization.
efficiency and accomplish more.  It is not just a mirror of the present or the
COORDINATING past (Smith 1982). It serves as a vehicle for
✓method of getting people in an organization to the development of integrated strategic
work together harmoniously to achieve a human resource management.
common goal with minimum expenditure of STRATEGIC HUMAN RESOURCE MANAGEMENT
effort and materials. PRINCIPLES OF STRATEGIC HUMAN RESOURCE
✓Fundamental function of management, MANAGEMENT
providing an orderly arrangement and execution Ondrack and Nininger speaks of 7 principles,
of the activities, involving personnel policies and which are:
programs in the various departments and levels 1 .Overall Objective: There should be an overall
of the organization to achieve their objectives. objective of strategic human resource
CONTROLLING management and for that purpose the
✓concerned with keeping all efforts within the aspects of human resources should be clear.
channels prescribed by management as shown in 2. Strategy Development Process: There will be a
the personnel plan for the entire organization to process of strategy development in the
ensure that the organization is accomplishing its organization and there should be a clear
purpose. description of the aspects of human resources.
OPERATIVE FUNCTIONS 3. Effective Connection: There should be regular
✓ are those tasks or duties which are specifically communication system to ensure harmony of
entrusted to the human resource or personnel thought and consciousness of human resources
department. with the institutional decision making process.
✓ These are concerned with employment, 4. Provide the Challenge: Human resource
development, compensation, integration and considerations take on the challenge of
maintenance of personnel of the organization. connecting the business needs of the CEO’s
Strategic HRM, therefore, is concerned with the office.
following: 5. Responsibility and Accountability: Strategic
✓Analyze the opportunities and threats existing human resource management establishes
in the external environment. responsibility and accountability for the
✓Formulate strategies that will match the successful level of human resource management
organization’s (internal) strengths and of the organization.
weaknesses with environmental (external) threats 6. Human resource management for business
and opportunities. In other words, make a SWOT needs: Strategic human resource management
analysis of organization. takes logical initiatives for business resource
✓Implement the strategies so formulated. management.
✓Evaluate and control activities to ensure that 7. Environmental Consideration: Strategic human
organization’s objectives are duly achieved. resource management is responsible for
HR practice is becoming more and more identifying the various costs of different
challenging day by day; they face problems like environments such as social, political,
retention, attraction of employee, dealing with technological and economic as well as
different cultural people, managing work force determining the interrelationships between
diversity, technological and informational them, where the organization is doing business
changes. and will continue to do so.
LESSON 2 How HRM and Organizational Psychology
Human Resource Management? Theories Are Connected
1. Shared Goal: Improve People and Performance
2. HRM Uses Psychology to Shape Strategy HR must ensure fair rewards,workloads, and
3. HRM = Strategy | Psychology = Insight recognition
4. Both Support Leadership, Training, and Culture Expectancy Theory
Core Theories in Organizational Psychology
 Maslow’s Hierarchy of Needs
 Herzberg’s Two-Factor Theory
 Equity Theory
 Expectancy Theory
 Reinforcement Theory
 Social Learning Theory
 Job Characteristics Model  People work harder if they believe effort leads
 Organizational Justice Theory to good results.
 Motivation = Expectancy × Instrumentality ×
MASLOW’S HIERARCHY OF NEEDS
Valence
Will effort lead to success?
Will success lead to rewards?
Do I value the reward?
Reinforcement Theory

 People work best when their basic and

psychological needs are met.
 Employees need food, safety, belonging,
esteem, and purpose. HR and leaders should
create environments that support these
needs.
Behavior is shaped by rewards and punishments.
Herzberg’s Two-Factor Theory -Positive Reinforcement
There are two types of job factors: -Negative Reinforcement
motivators and hygiene. -Positive Punishment
-Negative Punishment
Social Learning Theory
 People learn by watching others.
 Role models, peer behavior, and group norms
influence how individuals act. Leaders must
model positive behavior.
Equity Theory Job Characteristics Model

 People want fairness at work.

 If employees feel they are treated unfairly Certain job features make work meaningful and
(compared to others), they lose motivation. motivating.
Key elements:
•Skill variety ✔ Employee behavior—motivation,
•Task identity commitment, engagement—is a strategic
•Task significance lever that influences organizational outcomes.
•Autonomy ✔ HR strategies should shape and reinforce
•Feedback desired behaviors.
Organizational Justice Theory
✔ Performance management, rewards, and
culture-building are key tools.
✔ Leadership and communication styles matter.
Institutional Theory
✔ HR practices are shaped by societal norms,
legal frameworks, and cultural expectations—
not just internal strategy.
Fairness in decisions, treatment, and ✔ Organizations must comply with labor laws,
communication matters ethical standards, and cultural values.
Includes: ✔ Strategic HRM includes stakeholder
•Distributive justice (fair outcomes) engagement and public accountability.
•Procedural justice (fair processes)
•Interactional justice (respectful treatment) ✔ Institutional pressures can drive or constrain
Resource-Based View (RBV) innovation.
✔ Human resources are valuable, rare, Systems Theory
inimitable, and non-substitutable—making
them a source of sustainable competitive  HR is part of a bigger system. HR doesn’t work
advantage. alone—it connects with finance, operations,
✔ HR is not just administrative; it’s strategic. and leadership. Changes in one area affect
✔ Organizations must invest in developing others
unique capabilities (e.g., leadership, culture, Motivation Theories
innovation).
✔ Understand what drives people.
✔ Talent management becomes a strategic
priority. ✔ HR should create environments where
employees feel safe, valued, and motivated to
Human Capital Theory
grow.
✔ People are assets. Investing in their education,
Lesson 3
training, and well-being increases productivity
and organizational performance. Job Analysis
✔ HR policies should focus on continuous Job analysis is the process of gathering
learning and development. information about a job. It is, to be more specific,
a systematic investigation of the tasks, duties and
Contingency Theory
responsibilities necessary to do a job.
✔ There is no one-size-fits-all HR strategy. HR
• Job analysis is a recording of all activities
practices must align with the organization’s
involved in the job and the skill and knowledge
structure, culture, and external environment.
requirement of the performer of the job.
✔ HRM must be flexible and context-sensitive.
THE INTENTION BEHIND JOB ANALYSIS IS TO
✔ Strategic decisions depend on factors like size, ANSWER THE FF: QUESTIONS:
industry, leadership style, and goals.
• What is the need of the job to exist?
✔ Misalignment leads to inefficiency and
• What physical and mental activities does the
disengagement.
worker undertake?
Behavioral Perspective
• When is the job to be performed?
• Where is the job to be performed?
• How does the job performed by an employee?
• What qualities and qualifications are required to
perform the job?
Purposes of Job Analysis
1. Job Design
2. Job Classification
3. Job Evaluation
4. Selection
5. Training Job Specification
6. Person Power Planning  Job Specification is a statement of human
qualifications necessary to do the job. Usually
7. Performance Appraisal contains items such as Education, Experience,
8. Organizational Analysis Training, Communication skills, credentials,
etc.
 It offers a profile of human characteristics
(knowledge, skills, abilities, traits and other
characteristics (KSAOs) needed by a person
doing a job.
 Knowledge – Intelligence and understanding
of a specialized discipline acquired through
formal education and actual experience.
 Skill – potential capability of a worker to carry
out a particular job. (Problem solving skills,
Job description decision making skills)
 Ability – A capacity or competence that allows
 Job description describes in detail the various an individual to do a specific kind of work. (Ex.
aspects of a job like the tasks involved, the Ability to work under pressure)
aspects of a job like the tasks involved, duties  Personal Characteristics – employers must
and the responsibilities of the job and the possess good personal qualities.
deliverables.  Credentials – pieces of evidence that will
Example: prove a person’s identity or background that
will indicate his fitness for the job.

Job evaluation
 Job evaluation is a systematic and orderly
practices of determining the worth of a job in
relation to other jobs.
 Costing of each job attaching to its proper
money value.
Lesson 4  Changes the jobs to include more and/or
JOB DESIGN different tasks
Job design is the division of work tasks assigned JOB ENRICHMENT
to an individual in an organization that specifies
what the worker does, how, and why. Effective job  a management concept that involves
design contributes to the achievement of redesigning jobs so that they're more
organizational objectives, motivation, and challenging to the employee and have less
employee satisfaction. repetitive work.
 For example, if an employee normally Core Job Dimensions
assembles parts, the job may be enlarged to 1. Skill variety — This refers to the range of skills
include new tasks such as work planning, and activities necessary to complete the job.
inspection / quality control, or maintenance. The more a person is required to use a wide
4 Main Techniques variety of skills, the more satisfying the job is
 Job Simplification likely to be.
 Job Rotation 2. Task identity — This dimension measures the
 Job Enlargement degree to which the job requires completion
 Job Enrichment of a whole and identifiable piece of work.
Employees who are involved in an activity
JOB SIMPLIFICATION from start to finish are usually more satisfied.
o Work or job simplification is the process of 3. Task significance — This looks at the impact
removing tasks from existing roles in order to and influence of a job. Jobs are more
make them more focused. The objective of satisfying if people believe that they make a
work simplification is to develop improved difference, and are adding real value to
work methods that maximize output while colleagues, the organization, or the larger
minimizing expenditure and cost. community. Task significance is the degree to
which employees perceive their work as
JOB ROTATION
significantly impacting other people within or
 Job rotation is the practice of moving outside of the organization, but the JCM
employees between jobs in an organization. specifies that only when workers have a sense
These rotations are predominantly lateral, that their work positively impacts the well-
meaning that they happen between jobs on being of other people will they have greater
the same level and are not considered meaningfulness.
promotions. They are also often temporary 4. Autonomy — This describes the amount of
with people moving back to their individual choice and discretion involved in a
original job after a certain time. job. More autonomy leads to more
satisfaction. For instance, a job is likely to be
more satisfying if people are involved in
making decisions, instead of simply being told
what to do.
5. Feedback — This dimension measures the
amount of information an employee receives
about his or her performance, and the extent
to which he or she can see the impact of the
work. The more people are told about their
performance, the more interested they will be
in doing a good job. So, sharing production
figures, customer satisfaction scores etc. can
increase the feedback levels.

JOB ENLARGEMENT
 Duties are added to a job.