CHAPTER 1
He must be well
Personnel Management of the Philippines (PMAP) is a
nationwide organization of all personnel managers and
human resource practitioners in the country which was
established to uphold the profession to the fullest.
Personnel or Human Resource Management may be
defined as the function of management, concerned with
promoting and enhancing the development of work
effectiveness and advancement of the human resource in
the organization.
Personnel Management is a science because it involves the
systematic gathering of data derived from surveys,
statistics, interviews and observations.
Personnel or Human Resource Manager who is the
member of the top executive group, is responsible for the
formation of personnel policies and programs which will
serve as a foundation for an efficient personnel
administration in a company for it’s to realize its goals and
objectives and allow the employees to develop their
individual career goals.
Roles of the Personnel/HR Manager
1. Supervisor. He plans, organizes, directs, controls
and coordinates the activities of his departments.
2. Administrative Official. He or his staff conducts or
directs certain personnel activities as provided or in
the policies and programs entrusted to the
department.
3. Adviser. He serves as a counselor, guide and
confidante to manager supervisors and employees.
4. Coordinator. He brings into action all activities,
regulates and combines diverse efforts into a
harmonious whole.
5. Negotiator. He is the representative of the
management in negotiating labor contracts or to
attend negotiations with unions in an advisory
capacity.
6. Educator. He conducts or administers company’s
training program.
7. Provider of Services. He provides services to all
employees and helps them obtain facilities with
government agencies which can make their
employment more satisfying.
8. Employee Counselor. His knowledge and training in
human relations and the behavioral sciences plus
his familiarity with company operations, puts him in
the best position to counsel employees.
9. Promoter of Community Relations.
informed of the activities and developments in the
environment where the enterprise operates.
10. Public Relations Man. His functions require him to
deal with the general public, which includes the
employees, the unions and the community.
CHAPTER 2
Human Resource Planning (HRP) is the process of
systematically reviewing human resource requirements to
ensure that the number of employees matches the required
skills.
Strategic Planning is the determination of the overall
organizational purpose and goals and how they are
achieved. Human resource is the integral component.
Emergent Strategies, consists of strategies that evolves
from the grassroots of the organization and cam be thought
of as what the organizations actually do.
Intended Strategies, are the results of rational decision-
making by the top management as they develop strategic
plans.
Human Resource Information System (HRIS) is any
organized approach to obtaining relevant and timely
information on which to base human resources decisions.
An effective HRIS is crucial to sound human resource
decision-making. It is designed to provide information that
is SMART.
1. Routine Reports, HR data summarized on scheduled
bases
2. Exception Reports, confidential data that are
available only for managerial decision-making and
needs immediate attention
3. On Demand Reports, management may demand
some reports for analysis
4. Manpower Forecast, applies to predictive models
based on specific situations
CHAPTER 3
Recruitment is the process of attracting the best individuals
to join the company at a timely basis in a sufficient numbers
and meeting the qualification requirements, hereby
encouraging them to apply for the jobs in the organization.
Two Major Sources of Candidates to Fill the Vacant
Positions
1. The Internal Source. These are the qualified
candidates from the company and within the ranks
of its present employees.
2. The External Source. The hiring from the outside
source is a management option.
Different Methods of HR Recruitment
1. Job Posting. Every time a position becomes
available it is posted in the company bulletin board.
2. Word-of-Mouth System. It is one of the least
expensive recruitment systems. As soon as people
learn that there’s a job opening, the word spread
around.
3. Advertising Media. One popular and often effective
means soliciting applicants is advertising it through
the media.
Blind ads are ads that do not reveal the identity of the
company, instead they give a box number where the
resume’ or pertinent papers will be forwarded.
4. Walk Ins and Unsolicited Applicants. These
unsolicited applicants could be a possible source of
outstanding employees. They are not, however,
treated very seriously by the HR department. Most
often, the application letters or resumes are put in
the waste basket or at times put in file without even
looking at the potential qualifications of the
applicants.
5. Campus or University recruitment. The records of
the graduating students that are available at the
registrar’s office and they are just too willing to
provide the information for the companies who
need their graduates.
6. Job Fair and Open House. The organizational
Representatives of the company gather and
interview several applicants over a period of time of
one to two days in some specified fields.
7. Government Agencies. Some local government
units have their placement offices look for possible
employments for their constituents.
8. Radio and Television.
9. The Internet.
CHAPTER 4: Selection of HR
Selection can be defined as the process of determining from
among the applicants who can meet the job requirements
and can be offered the vacant position in the organization.
Personnel Requirement Form (PRF)
Job specifications, what is required to do the job. This tool
consolidates the necessary employee qualifications
identified in the job analysis schedule and lists them in
terms of knowledge, abilities, skills or licenses.
Selection procedure on how to get the most qualified
applicants
Stage 1. Establishing selection procedure
Stage 2. Identifying and choosing selection criteria,
predictors and instruments to be used
Stage 3. Gathering and evaluating information about
applicants
Stage 4. Making communication decisions to select or reject
The Selection Process
1.) Preliminary Screening
Structured Interview follows a set of procedure and the
interview sets the lead
Unstructured interview is where the applicant takes the
lead
Panel or round-table interview is usually done for
managerial and supervisory employees
2.) Application Form
Graphology. Some companies would require the applicant
to write in not less than 200 words his work or life
experiences. It is the art and science in the analysis of the
individual’s traits through his handwriting.
3.) Testing and Evaluation of Result
Intelligence Test is widely used to measure mental or
general learning ability.
Aptitude Test measures the person’s capacity to learn a
given job, provided there is adequate training.
Interest Test tries to predict the success in the job if thee
person’s interest and the job are properly matched.
Personality Test is considered as an important instrument
to test the personality of the applicant
Achievement or Proficiency Test tries to measure the
applicant’s knowledge of a given job.
4.) In-depth Interview
5.) Evaluating references
6.) Physical Examination
7.) Placement
CHAPTER 5: Training and Development of HR
Training is the process where people acquire capabilities to
aid in the achievement of organizational goals.
Orientation is the planned introduction of new employees
to their jobs, co-workers and the organization.
Self-efficacy, it is the employee’s belief that he can
successfully learn the content of the training.
Basic Skills, refers to the degree of the employee’s desire to
learn the cognitive ability, reading and writing skills and
other technology changes necessary in the work
environment.
HRD Approaches
1. Management Coaching. The immediate supervisor
coaches the subordinate employee in performing
certain functions
2. Committee Assignments. Assigning promising
employees to important committees
3. Job Rotation. This is the process of shifting
employees from one job to another.
4. Assistant-to-the Position. This is the assignment of
an assistant to the position who works directly
under the manager.
5. Job Enlargement. It refers to adding challenges or
new responsibilities to the employee’s current job.
6. Mentoring. Interacting with more experienced
organization members
Formal Education, the company sends the employee to
formal seminars, workshops and other training programs
offered by training consultants and agencies.
Team building, these organizational interventions are
usually conducted away from work.
Case studies, this is a classroom type of training techniques
that provides a medium through the application of
management behavior concepts and analysis.
Role playing is a development technique requiring the
trainee to assumes a role in a given situation and act the
behavior associated to it.
Simulation, these are business games developed by HR
experts that require the participants to analyze a situation
and decide the best course of action based to the given
data.
CHAPTER 6: Job Evaluation and Work Flow Analysis
Job analysis starts with a careful study of org structure. This
would reveal the relationships of jobs within the
organization. Organizational structure is often seen in org
charts that convey the vertical and horizontal relationship of
the two.
Job Analysis is the process of getting detailed information
about the tasks, duties and responsibilities of the job as
seen in the org structure.
Job Analyst The study of jobs is the responsibility of the
personnel department thru the job analyst who is trained to
conduct the job evaluation program. He studies the duties,
responsibilities, and the specification requirement of the
job.
Job Title The correct title of a particular job is very
important in the organization.
Job Description The result of any job analysis program is the
writing of the job description. The job descriptions contain
the tasks, duties and responsibilities that the job entails.
Job Specification contains information about the
employee’s qualifications and traits required in the effective
performance of the work assigned.
CHAPTER 7: Wage and Salary Administration
Theories of Wages
1. Classical Wage Theory. This theory is based upon the
fundamental concept that labor is a commodity and we
have to pay the price according to supply and demand.
2. The Just Wage Theory of St. Thomas Aquinas. A just
wage is described as wage which permits the recipient
worker to live in a manner in keeping with his position in
society. According to this theory, the workers’ cost of living
should be considered first in the cost of production. Wages
are responsible for allocating labor to various occupations.
3. The Wage Fund Theory. Expounded by John Stuart Mill
and his followers is based on the Malthusian theory of
population and the law of diminishing returns. This theory
holds the idea that the working capital of the nation
provides a fund from which wages can be paid. The fund is
to be divided by all the workers proportionately.
4. Bargaining Theory of John Davidson. This theory
proposes that labor is a commodity like anything that could
be both at a price by the user. As a commodity, it carries
with it a price that is determined by the bargaining process
between the buyer and the seller.
5. The Marginal Productivity Theory. The supply of labor in
any given economy on the whole depends upon the total
number of individuals who want to work and available for
work
6. The Purchasing power Theory. It tries to establish the
relationship between the wages and the level of economic
activity. The level of economic growth is dependent upon
the savings generated because the increase in wages
creates a surplus that propels growth.
7. Labor Theory of Value of Karl Marx. It emphasizes that
labor is the source of all product and that without this
important component, there could be no goods for human
consumption.
8. The Standard of Living Theory of Wages. Wages should
be based on the cost of living. The cost of living is
dependent upon the economic needs of the family for the
basic necessities of life

It is the range of the salary that is paid to an employee

doing similar functions that has a minimum and maximum
pay and a series of step adjustments.

Methods of Wage Payment

1. By the Time Worked. Wages are computed in terms of
unit of time. HxR=W
2. By the amount of work produced. Earning depend on
how much work the employee complete or on a related
factor. NxU=W
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