COBENTH Lecture Notes: MANAGING HUMAN RESOURCES

Lesson 4
Managing Human Resources

Human Resource Management

● Ensures that employees are managed individually and collectively so that they are able
to help in the achievement of mission, vision, and goals.

● 4 Human Resource Management Process:

a. Planning
■ Managers should establish goals and define methods by which these
goals are attained

b. Controlling
■ Management function which helps in measuring the progress towards
organizational goals indicates corrective actions that should be taken

c. Organizing
■ Identifying and grouping the work to be performed, defining and
delegating responsibilities and authority inside the organization

d. Leading
■ Basic function of management process which use influence to motivate
employees to achieve organizational goals

● Human Resource Management Components:

a. Staffing
■ Fundamental function of recruitment, screening and selection

b. Training
■ Aimed at teaching professional’s applicable knowledge, skills and
attitudes to be used in their job
■ Main focus is on delivering performance and overcoming future
challenges that the company might encounter

c. Compensation
■ Remuneration that an employee receives for his/her services to the
organization

Prepared by: Dr. Cristina Teresa Lim

Associate Professorial Lecturer
DSI Department, RVR College of Business
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 COBENTH Lecture Notes: MANAGING HUMAN RESOURCES

d. Employee Relations
■ Sub-function in human resources or legal function which handles
grievances, resolving disputes between employees or between
employees and employers

A. Staffing - Finding the Right Person for the Job

○ Human resource strategy designed to ensure that the organization has the
workforce it needs to meet current and future business objectives

○ Small business owners must carefully hire their employees as hiring the wrong
employee can cost them their business.

○ Business owners can source their employees through:

i. Referrals
● When someone in your network recommends your business to a
new prospect or someone in your network recommends an
individual for a role in the company

ii. Job Advertisement

● Informative text that describes job vacancies and the details for
the potential job applicants

iii. Job Fairs

● Recruiting event in which employers and recruiters meet with
potential employees

iv. Employment Agencies

● Companies contracted to hire and staff employees for other
companies
● Staffing is the process of hiring eligible candidates in the
organization for a specific position

○ Some of the trends used in staffing are:

i. Going Virtual
● Exist in essence but not in reality

Prepared by: Dr. Cristina Teresa Lim

Associate Professorial Lecturer
DSI Department, RVR College of Business
2
 COBENTH Lecture Notes: MANAGING HUMAN RESOURCES

ii. Hiring Student Interns

● Interns - individuals who are about to graduate from college or
recent graduates and work for a company for a short period of
time to gain work experience

iii. Getting Volunteers

● Volunteer - person who voluntarily undertakes a particular service

○ To select the right employee for the business, it is important to check:

i. Employee Attitude
ii. Skills and Abilities
iii. Passion/Intensity
iv. Fitness to the Role
v. Product/Service Passion
vi. Communication Ability

B. Training - Developing and Upgrading Skills for Peak Performance

○ A formal intervention known as training is needed in order to turn an employee’s
level of performance from acceptable to excellent.

○ Before starting the training process, it is important to first assess the needs of
the company.

○ Steps in the training process:

i. Identify who needs to be trained.
ii. Prepare the employee for training.
iii. Outline the task to be completed.
iv. Demonstrate the task.
v. Watch the employee perform the task.
vi. Appraise performance.
vii. Provide feedback to the employee.

○ Training employees is an investment rather than an expense. It is important to

make training an ongoing process (e.g. quarterly, semi-annually, annually) and
look into different types of training methods (e.g. e-learning, simulation, hands-
on training, coaching/mentoring, simple lectures, group discussions, role playing
and etc.)

Prepared by: Dr. Cristina Teresa Lim

Associate Professorial Lecturer
DSI Department, RVR College of Business
3
 COBENTH Lecture Notes: MANAGING HUMAN RESOURCES

C. Compensation - Creating a Pay System that is Fair, Equitable and Just

○ All firms must be competitive in wage and salary levels in order to attract and
maintain qualified personnel.

○ Payments made to employees either are based on increments of time - such as

an hour, a day, a week, or a month – or vary with the output of the employees.

○ Forms of Compensation:
i. Bonus
● Amount of money added to wage on a possible seasonal basis as
a reward for good performance

ii. Commissions
● Service charge assessed by a broker for providing investment
advice on handling purchases and sales of securities for a
particular client or a fee paid for services usually a percentage of
the total cost

iii. Stocks
● Also known as equity securities and represents the ownership of
a fraction of a corporation; entitles the owners of the stocks to a
portion of the corporation’s assets and profits equal to how much
the individual has

iv. Profit-sharing
● Incentivized compensation program that awards employees a
percentage of the company’s profits; the amount awarded is
usually based on the company’s earning over a set period of time
(e.g. over in a year span)

v. Gain-sharing
● Incentive plan in which employees or customers will receive
benefits directly as a result of cost-saving measure that they
initiated or participated in (e.g. pay for performance program)

Prepared by: Dr. Cristina Teresa Lim

Associate Professorial Lecturer
DSI Department, RVR College of Business
4
 COBENTH Lecture Notes: MANAGING HUMAN RESOURCES

vi. Base Pay

● Base wage rate is the minimum amount an employee may be paid
for their work and is usually agreed upon during the hiring process
● Does not include bonuses and overtime pay

vii. Overtime Pay

● Amount of overtime paid to each employee in a pay period; paid
in excess of 8 hours

○ Compensation must be:

i. Fair
● Adequate compensation for the responsibilities assumed and
qualifications held by the job holder
● Based on industry standards

ii. Equitable
● Same compensation is paid to those who perform work of equal
value and recognizes seniority and merit as only reasons for pay
differentials.

iii. Just
● Legally compliant

D. Employee Relations - Forming Relationships that Foster Harmony in the Workplace

○ Refers to an entrepreneur’s efforts to manage the professional relationship
between him/her and the employees.

○ Ensure fair, consistent, and humane treatment of all employees so that they will
remain committed and loyal to the company.

○ Employee relations have 5 components and these are:

i. Discipline
● Training people to obey rules or code of behavior necessary in the
organization
● Discipline involves taking timely and appropriate action when
employees display unacceptable behavior at work.

Prepared by: Dr. Cristina Teresa Lim

Associate Professorial Lecturer
DSI Department, RVR College of Business
5
 COBENTH Lecture Notes: MANAGING HUMAN RESOURCES

● Progressive disciplinary method - process or method that

attempts to address and correct an employee's work
performance or inappropriate workplace behavior by providing
clear and constructive feedback through a series of increasingly
formal steps
● Need to follow due process:
a. Verbal warning
b. Written warning
c. Suspension
d. Termination

ii. Grievance Management

● Grievance - Discontentment of an employee with the company
and its management

● Important for business owners to implement an open-door policy

or simple grievance machinery to address employee complaints.

● Open-door policy - Every manager's door is open to every

employee. The purpose is to encourage open communication,
feedback, and discussion about any matter of importance to an
employee.

iii. Quality of Work Life

● Quality of the job environment for the people working in the
company

● This is achieved whenever a small business owner provides a

working environment that nurtures the holistic well-being of an
employee instead of just focusing on the work-related aspects of
employment.

● Scopes of Quality of Work Life (QWL)

a. Compensation
b. Health and Safety
c. Job Security
d. Job Design/Scope

Prepared by: Dr. Cristina Teresa Lim

Associate Professorial Lecturer
DSI Department, RVR College of Business
6
 COBENTH Lecture Notes: MANAGING HUMAN RESOURCES

e. Social Integration
f. Social Relevance for Work
g. Better Career Opportunities

iv. Communication
● Act of transferring information from one individual to another

● Clear communication between employer and employee is a must

in order to establish the following:
a. Rules and Regulations
■ Guidelines for doing something right to manage
behavior in the organization

b. Code of Conduct
■ Policy in the workplace

c. Work Procedures
■ Standard work procedure or process; sequential
tasks to be performed to achieve a specific
outcome

d. Job Expectations

e. Ideas and Suggestions

v. Occupational Health and Safety

● Refers to health, safety and welfare of the people in the
workplace

● Employers need to safeguard their workers’ well-being as well as

ensure that they are free from harm, injury, or hazards while
working.

● To improve workplace safety, it is important to have the following:

a. Protective Equipment
b. Regular Maintenance and Safety Checks
c. Hazard Communication

Prepared by: Dr. Cristina Teresa Lim

Associate Professorial Lecturer
DSI Department, RVR College of Business
7
 COBENTH Lecture Notes: MANAGING HUMAN RESOURCES

d. Safety Training
e. Immediate Access to Emergency Medical Care
f. Proper Ventilation and Lighting

E. Video Summary
○ How to Hire the Best: "4 Key Qualities to Look For"
i. Hire someone who loves the company and its vision because a strong
work ethic will definitely follow.

ii. Hire people whom you can trust to do business with. This process may
take 3-6 months to figure it out.

iii. Hire a person who is fast and efficient; someone that is adaptable to
changes.

iv. Hire an employee who is committed to growing and developing himself.

○ Why Invest in Employee Training & Development?

i. It is important to train employees to help them keep up to the rapid
technological advancements and be more efficient.

ii. Not training employees can cause the company a significant penalty: the
company will not be able to use the newest technology and/or the
technology will be used inefficiently or incorrectly.

iii. Making the employees learn on their own will make them inefficient at
work and resent the company for requiring them to give up their personal
time to enhance their skills.

iv. By investing in training and development, the company will be able to

increase productivity and maximize profits.

Prepared by: Dr. Cristina Teresa Lim

Associate Professorial Lecturer
DSI Department, RVR College of Business
8