HR Theories & Concepts Review PDF

CLARK G. SUMAYAO, RPm, CHRA HR ASSOCIATE REVIEWER HR THEORIES & CONCEPTS Human Resource Functions | Recruitment & Selection | Workplace Learning & Development | Compensation & Benefits | Performance Management & Appraisal | Job Analysis & Design | Organizational Theories, Models, and Concepts...

CLARK G. SUMAYAO, RPm, CHRA HR ASSOCIATE REVIEWER HR THEORIES & CONCEPTS Human Resource Functions | Recruitment & Selection | Workplace Learning & Development | Compensation & Benefits | Performance Management & Appraisal | Job Analysis & Design | Organizational Theories, Models, and Concepts | Group & Organizational Issues | Worker / Employee Issues | Risk Management 2nd Edition July 2024 Text Revision Primary References: Introduction to Industrial-Organizational Psychology, Seventh Edition Riggio, R. (2018). Introduction to Industrial-organizational psychology (Seventh Ed.). Routledge. ISBN: 978-1-138-65532-34 Industrial/Organizational Psychology: An Applied Approach, Eighth Edition Aamodt, M. (2013). Industrial/organizational psychology: An applied approach, 8th Ed. Routledge. ISBN 13: 9780205254996 Psychology and Work: An Introduction to Industrial and Organizational Psychology, Second Edition Truxillo, D., Bauer, T. Erdogan, B. (2021). Psychology and work: An industrial and organizational psychology, 2 nd Ed. Routledge. https://doi.org/10.4324/9780429055843 Work and Organizational Psychology, Third Edition Rothmann, S., & Bauer, C. (2022). Work and organizational psychology, 3 rd Ed. Routledge. https://doi.org/10.4324/b22796 When knowledge meets the frontiers, psychology paves a better tomorrow! LinkedIn | Facebook | Outlook UNAUTHORIZED DISTRIBUTION IS HIGHLY PROHIBITED - DO NOT ATTEMPT HRA REVIEWER SET 1 PAGE 0 OF 58 CGS, RPm, CHRA  CLARK G. SUMAYAO, RPm, CHRA TABLE OF CONTENTS Hi! I hope that this reviewer can be a helpful tool in reinforcing and easing our academic “digestion” of information. However, I highly encourage referring to the prescribed materials by certifiers or your professors whenever you find concepts you struggle with. This material is not meant to substitute any prescribed references, but only as an aid and primer to studying laws on HR theories and concepts for HR Associates. The prescribed references are still the best means to gain a deeper understanding of this subject and avoid missing important details. Please note that I have proofread my work to the best of my ability, but if you do happen to come across any typographical errors, please accept my apologies – and I am very open to constructive remarks for improvement. I would really appreciate if you could please fill out this feedback form. Thanks! This arrangement is patterned according to its references, combining information from other references. Godspeed! – Clark G. Sumayao, RPm, CHRA (2024) Guide: CHAPTER TITLE SECTION HEADER SUBSECTION 1 SUBSECTION 2 SUBSECTION 3 Subsection 4 It may be sufficient to review one chapter per day prior your examinations. Skim chapters you are knowledgeable of and are already comfortable with. ► Click on the TOC’s hyperlinks below for ease of navigation ◄ Table Of Contents................................................................ 1 13. Hiring................................................................... 12 C1 Human Resource Functions............................................... 5 14. Onboarding.......................................................... 12 Facets Of HR........................................................................ 5 Organizational Attributes......................................................... 12 Hierarchy Of HR Titles.......................................................... 5 Categories......................................................................... 12 Some Of The Key Persons Involved In HR Management.......... 5 Employee Value Proposition (EVP)........................................... 12 S1 Human Resource Management Functions................................ 6 Key Areas Of EVP............................................................... 12 4 Main Activities Of HRM............................................................ 6 Employer Brand................................................................. 12 HRM Has 2 Functions................................................................. 6 Best Practices In Talent Acquisition.................................... 12 Basic Functions.................................................................... 6 S2 Selection......................................................................... 12 Operative Functions............................................................. 6 Overview Of Selection Process........................................... 12 Features Of HRM........................................................................ 6 Common Assessment Methods................................................. 12 S2 Human Resource Planning (HRP)........................................... 7 Resume / Curriculum Vitae (CV) Review.............................. 12 Workforce Planning Process....................................................... 7 Assessment Centers........................................................... 12 Factors Affecting WFP.......................................................... 7 Interview........................................................................... 13 Objectives Of Human Resource Planning............................... 7 Testing And Validation............................................................. 13 Determinants Of HRP............................................................ 7 Characteristics Of A Psychological Test.............................. 13 HR Planning At Different Levels............................................ 7 Types Of Tests................................................................... 14 Integrated Strategic Planning And HR................................... 7 Establishing Test Utility...................................................... 14 Demand Forecasting.................................................................. 8 Fairness Of A Test.............................................................. 15 Two Kinds Of Forecasting Techniques................................... 8 Validity.............................................................................. 15 Supply Forecasting.................................................................... 8 Decisions To Select Or Reject................................................... 15 Guidelines For Making HRP Effective..................................... 9 S3 Human Resource Development............................................. 9 C3 Workplace Learning And Development............................... 16 Key Differences Between HRD And HRM..................................... 9 S1 Theories Of Learning......................................................... 16 Scope................................................................................... 9 Learning............................................................................ 16 Focus................................................................................... 9 Theoretical Perspective On Learning........................................ 16 Features Of HRd........................................................................ 9 Social Learning Or Cognitive Theory................................... 16 Functions Of HRd....................................................................... 9 Expectancy Theory............................................................. 16 Reinforcement Theory........................................................ 16 C2 Recruitment And Selection.............................................. 10 Need Theory And Motivation.............................................. 16 S1 Basic Concepts In Recruitment And Hiring............................ 10 Equity Theory.................................................................... 16 Hiring Process......................................................................... 10 Adult Learning Theory............................................................. 16 3 Segments Of The Hiring Process...................................... 10 Pedagogy........................................................................... 16 Factors Addressed.............................................................. 10 Andragogy......................................................................... 16 Talent Acquisition.................................................................... 10 Self Esteem............................................................................. 16 Buy.................................................................................... 10 Karman’s Consistency Theory............................................. 16 Build.................................................................................. 10 Self-Fulfilling Prophecy....................................................... 16 Borrow............................................................................... 10 3 Methods/Broad Methods Of Delivering Training................ 16 Bind................................................................................... 10 Transfer Of Training/Learning............................................ 17 Talent Acquisition Process....................................................... 10 S2 Learning And Development Design....................................... 17 1. Identifying The Hiring Need....................................... 10 Instructional System Design............................................... 17 2. Devise A Recruitment Plan......................................... 10 Addie...................................................................................... 17 3. Write A Job Description............................................. 10 1. Analysis......................................................................... 17 4. Adverstise The Position............................................. 10 2. Design........................................................................... 17 5. Recruit The Position.................................................. 11 3. Development.................................................................. 17 6. Review Of Applications.............................................. 11 4. Implementation.............................................................. 17 7. Initial Screening........................................................ 11 5. Evaluation...................................................................... 17 8. Interview................................................................... 11 Instructional Strategies............................................................ 18 9. Applicant’s Assessment............................................. 11 Bloom’s Taxonomy Of Learning.......................................... 18 10. Background Checking............................................ 11 S3 Learning & Development Concepts & Methodologies............... 18 11. Decisions (To Select Or Reject).............................. 12 Needs Assessment Process...................................................... 18 12. Job Offer.............................................................. 12 1. Organizational Analysis............................................. 18 HRA REVIEWER SET 1 PAGE 1 OF 58 CGS, RPm, CHRA. CLARK G. SUMAYAO, RPm, CHRA 2. Person Analysis......................................................... 18 Relationships Statement..................................................... 31 3. Task Analysis............................................................ 18 Responsibilities And Duties................................................. 31 Implications On Training And Development............................... 19 Standards Of Performance And Working Conditions............ 31 Adult Learners And Development Interventions........................ 19 Specifications For Trained Versus Untrained Personnel....... 31 Experiential Learning Cycle (Kolb)....................................... 19 Dictionary Of Occupational Titles........................................ 31 Blended Learning And Development Strategy (70-20-10 S4 Job Analysis In A “Jobless” World........................................ 31 Principle)........................................................................... 19 From Specialized To Enlarged Jobs..................................... 31 Linking Learning, Training And Development....................... 19 S5 Job Evaluation.................................................................. 31 Development Methodologies..................................................... 19 Determining Internal Pay Equity............................................... 31 Sample Development Plan - Target Position: Administrative Step 1: Determining Compensable Job Factors................... 31 Assistant............................................................................ 20 Step 2: Determining The Levels For Each............................ 31 S4 Evaluating Learning And Development Program.................... 21 Step 3: Determining The Factor Weights............................. 31 Learning And Development Evaluation...................................... 21 Determining External Pay Equity.............................................. 32 Effectiveness Of Learning And Development....................... 21 Determining Sex And Race Equity............................................. 32 The Evaluation Process....................................................... 21 Outcomes Used In The Evaluation Of Ldis............................ 21 C6 Organizational Theories, Models, & Concepts...................... 33 Donald Kirkpatrick’s Model In Learning And Development S1 Organization.................................................................... 33 Evaluation:......................................................................... 21 Organizational Theories........................................................... 33 1. Scientific Management Theory................................... 33 C4 Compensation And Benefits............................................. 22 2. Administrative Management Theory.......................... 33 S1 Rewards Management....................................................... 22 3. Bureaucratic Theory................................................. 33 Psychological Perspective: Rewards Management............... 22 4. Human Relations Theory........................................... 33 Criteria.............................................................................. 22 5. Systems Theory........................................................ 33 Total Returns Of Work........................................................ 22 6. Contingency Theory.................................................. 33 Total Rewards Framework.................................................. 22 S2 Organizational Design........................................................ 34 Total Reward Mix Of Objectives........................................... 23 Dimensions Of Organizational Design....................................... 34 Total Reward System.......................................................... 23 Four Dimensions Of Organizational Structure -.................... 34 Types Of Organizational Structure........................................... 34 C5 Performance Management & Appraisal.............................. 24 Mechanistic Vs. Organic Structures..................................... 34 S1 Performance Management................................................. 24 Matrix Organizations.......................................................... 34 Work Methods Analysis....................................................... 24 Forms Of Organizational Structure........................................... 34 Performance Management Process..................................... 24 1. Functional Organizational Structure.......................... 34 Performance Planning And Commitment............................. 24 2. Divisional Organizational Structure............................ 34 Criteria In Writing Objectives.............................................. 24 3. Matrix Organizational Structure................................. 34 Success Criteria (Performance Measures)........................... 24 4. Hierarchical Organizational Culture........................... 35 Common Complaints About Performance Management........ 24 5. Clan Organizational Culture....................................... 35 Use Of Performance Management....................................... 24 7. Adhocracy Organizational Culture............................. 35 Driving Results THRough Performance Management........... 24 8. Line-Staff Organizational Structure........................... 35 Building Capability THRough Performance Management...... 24 9. Project Task Force (Project-Based Organizational Performance Management: Carving Up Consequences......... 25 Structure):......................................................................... 35 Strategies For Improving Performance Management........... 25 New Design Options:.......................................................... 35 S2 Performance Appraisal...................................................... 25 Consequences Of A Poor Structure..................................... 35 Dimensions Targeted In Appraisal....................................... 25 Five Dimensions Of Societal/National Culture........................... 35 Uses Of Performance Appraisal:.......................................... 25 1. Individualism Versus Collectivism.............................. 35 Performance Appraisal Process.......................................... 25 2. Power Distance......................................................... 35 Establish Performance Criteria (Standards)......................... 25 3. Masculinity Versus Femininity.................................... 35 Responsibility For Appraisal................................................ 25 4. Uncertainty Avoidance.............................................. 36 Performance Appraisal Techniques..................................... 25 5. Long-Term Versus Short-Term Orientation................ 36 Performance Appraisal Biases............................................. 26 S3 Organizational Development (OD)........................................ 36 Understanding & Reducing Errors....................................... 26 Features Of OD........................................................................ 36 Organizational Development Process....................................... 36 C6 Job Analysis And Design................................................. 27 1. Entering And Contracting.......................................... 36 S1 Job Analysis, Definition And Basic Concepts......................... 27 2. Diagnosing Organizations, Groups, And Jobs............. 36 3 Main Products Of Job Analysis.............................................. 27 3. Collecting, Analyzing, And "Feedbacking" Diagnostic 1. Job Description......................................................... 27 Information........................................................................ 36 2. Job Specification....................................................... 27 4. Designing Interventions............................................. 36 3. Job Evaluation.......................................................... 27 5. Leading And Managing Change.................................. 36 Additional Components....................................................... 27 S4 Organizational Change....................................................... 36 Importance Of Job Analysis................................................ 27 Kurt Lewin......................................................................... 36 Elements Of Job Analysis.................................................... 27 Purpose Of OC................................................................... 36 Who Will Conduct Jas?....................................................... 27 Drivers Of Changes In An Organization............................... 36 Types Of Info Via The Job Analysis:.................................... 27 A Typology Of Change Strategies (Dunphy & Stace):............ 36 Uses Of Job Analysis Information............................................. 28 OC Is A Series Of Activities That Comes In Phases:.............. 36 Job Aspects In Job Analysis..................................................... 28 Condition For Success:....................................................... 37 Steps In Conducting Job Analysis............................................. 28 Barriers To Change:................................................................. 37 1. Identify The Tasks Performed.................................... 28 Culture.............................................................................. 37 2. Write Tasks Statements............................................. 28 People............................................................................... 37 3. Rate Task Statements................................................ 28 Methods For Data Collection.................................................... 38 4. Determine Essential KSAO......................................... 28 Technique For Analyzing Data............................................ 38 5. Selecting Tests To Tap KSAO..................................... 28 Interventions........................................................................... 38 Some Terminologies In Conducting Job Analysis................. 28 Types Of Od Interventions And Organizational Issues.......... 38 S2 Methods In Job Analysis.................................................... 29 Diagnosing Organizations, Groups, And Jobs...................... 38 Observation Method................................................................. 29 Major Interventions For Organizational Transformation....... 39 Interview Method..................................................................... 29 Employee Involvement....................................................... 39 Classification Of Job Analysis Interview............................... 29 Understanding Power......................................................... 39 Questionnaire Methods............................................................ 29 Worker Activities................................................................ 29 C7 Group & Organizational Issues......................................... 40 Task And Equipment........................................................... 29 S1 Communication In The Workplace........................................ 40 Work Environment.............................................................. 29 Communication....................................................................... 40 Necessary Competencies.................................................... 29 The Communication Process............................................... 40 Other Methods......................................................................... 30 Other Concepts Of Communication In The Workplace.......... 40 S3 Job Descriptions............................................................... 30 The Flow Of Communication In Work Organizations............. 40 Job Description........................................................................ 30 Barriers To Effective Workplace Communication................. 40 Job Identification............................................................... 30 Communication Networks................................................... 40 Job Summary..................................................................... 31 HRA REVIEWER SET 1 PAGE 2 OF 58 CGS, RPm, CHRA. CLARK G. SUMAYAO, RPm, CHRA Formal And Informal Lines Of Communications In The Work Vs. Career...................................................................... 50 Workplace.......................................................................... 40 Why Employee Engagement?................................................... 50 Communication In Employee Engagement........................... 41 Service-Profit Chain Model................................................. 50 S2 Group Processes In Work Organizations................................ 41 Communication.................................................................. 50 Defining Work Groups And Teams....................................... 41 Health And Wellness........................................................... 50 Role................................................................................... 41 Promoting Work-Life Balance............................................. 50 Organizational Socialization: Learning Group Roles And Norms Recognition And Incentives................................................ 50.......................................................................................... 41 Personal Development........................................................ 51 Basic Group Processes........................................................ 41 S3 Workplace Attitudes.......................................................... 51 Cooperation And Competition In Work Groups..................... 41 Organizational Commitment..................................................... 51 Conflict In Work Groups And Organization................................. 41 THRee Components:........................................................... 51 Levels Of Conflict............................................................... 41 Dimensions Of Organizational Commitment......................... 51 Sources Of Conflict............................................................. 42 Job Satisfaction....................................................................... 51 Conflict Outcomes.............................................................. 42 Approaches To The Study Of Job Satisfaction..................... 51 Managing Conflict.................................................................... 42 Evln: Responses To Job Dissatisfaction............................... 51 Group Decision-Making Processes....................................... 42 Citizenship Behaviors......................................................... 51 Group Decision-Making............................................................. 42 Organizational Identification (Oid)............................................ 51 Brainstorming.................................................................... 42 Social Identity Theory......................................................... 51 Groupthink......................................................................... 42 Four Variations Of Identification......................................... 51 Teams And Teamwork.............................................................. 42 Guidelines For Effective Functioning Of Work Teams............ 43 C8 Risk Management.......................................................... 52 S3 Leadership...................................................................... 43 S1 Theories In Risk Management.............................................. 52 1. Universalist Theories............................................................ 43 2 Major Theories...................................................................... 52 2. Behavioral Theories............................................................. 43 1. Human Capital Theory............................................... 52 Ohio State Leadership Studies............................................ 43 2. Stakeholder Theory................................................... 52 University Of Michigan Leadership Studies.......................... 43 S2 Key Concepts In Risk Management....................................... 52 3. Contingency Theories........................................................... 43 1. Legal And Regulatory Compliance................................... 52 Fiedler’s Contingency Model............................................... 43 2. Employee Relations........................................................ 52 Path-Goal Theory............................................................... 43 3. Workplace Safety And Health.......................................... 52 The Decision-Making Model................................................. 43 4. Data Privacy And Security.............................................. 52 Leader-Member Exchange Model (Lmx)............................... 44 5. Ethical Conduct.............................................................. 52 Impact Theory.................................................................... 44 6. Change Management...................................................... 52 4. Charismatic And Transformational Theories.......................... 44 7. HR Technology Risks...................................................... 52 Transformational Leadership.............................................. 44 8. Workplace Diversity And Inclusion.................................. 52 Comparing And Contrasting Theories Of Leadership.................. 44 9. Employee Turnover........................................................ 52 Applications Of Leadership Theories......................................... 44 10. Conflict Resolution....................................................... 53 Leadership Training & Development.................................... 44 11. Reputation Management.............................................. 53 Job Redesign And Substitutes For Leadership..................... 44 12. HR Audit And Risk Assessment..................................... 53 How To Be An Effective Leader........................................... 44 13. Global HR Risk Management......................................... 53 S4 Influence, Power, And Politics............................................. 44 S3 Models For Risk Management.............................................. 53 Influence................................................................................. 44 1. Risk Assessment Matrix.................................................. 53 Categories Of Influence Tactics........................................... 44 2. Swot Analysis................................................................. 53 Power...................................................................................... 45 3. Failure Mode And Effects Analysis (Fmea):...................... 54 Power Sources................................................................... 45 4. Coso Erm Framework..................................................... 54 Power Dynamics In The Work Organization.......................... 45 5. Iso 31000: Risk Management Guidelines......................... 54 Organizational Politics............................................................. 45 6. Plan-Do-Check-Act (Pdca) Cycle...................................... 54 Employee Perceptions Of Organizational Politics................. 45 Types Of Political Behaviors................................................ 45 C9 HR Analytics................................................................. 55 Causes Of Organizational Politics........................................ 45 Defining HR Analytics............................................................. 55 Consequences Of Organizational Politics............................. 45 Steps In HR Analytics......................................................... 55 Managing Organizational Politics......................................... 46 Advantages Of HR Analytics............................................... 55 Contingency Approach To Organizational Power And Politics Different Levels Of HR Analytics.............................................. 55.......................................................................................... 46 Steps Of Analytical Maturity..................................................... 55 1. Descriptive Analytics................................................. 55 C6 Worker / Employee Issues............................................... 47 2. Diagnostic Analytics.................................................. 55 S1 Motivation....................................................................... 47 3. Predictive Analytics.................................................. 55 Theories Of Motivation............................................................. 47 4. Prescriptive Analytics................................................ 55 Early Theories Of Motivation.................................................... 47 HR Metrics Overview.............................................................. 55 1. Hierarchy Of Needs Theory........................................ 47 HR Performance Metrics.......................................................... 55 2. Theory X And Theory Y.............................................. 47 1. Revenue Per Fte (Full-Time Equivalent)...................... 55 3. Motivation-Hygiene Theory........................................ 47 2. Profit Per Employee.................................................. 55 Contemporary Theories Of Motivation...................................... 47 3. Labor Cost Per Employee.......................................... 55 1. THRee-Needs Theory................................................. 47 2. Labor Cost Percentage Of Revenue........................... 55 2. Goal-Setting Theory.................................................. 47 3. Absence Rate Per Department................................... 56 3. Reinforcement Theory............................................... 47 4. Overtime Expense Per Period.................................... 56 4. Designing Motivating Jobs......................................... 48 5. Training Expense Per Employee................................. 56 5. Equity Theory............................................................ 48 6. Turnover Rate........................................................... 56 6. Expectancy Theory (Vroom)...................................... 48 7. Turnover Rate Per Department.................................. 56 7. Alderfer’s Erg Theory................................................ 48 8. Cost Of Absenteeism................................................. 56 8. Theory Z................................................................... 48 9. Cost Of Turnover...................................................... 56 9. Flow Theory.............................................................. 48 10. HR To Employee Ratio.......................................... 56 Current Issues In Motivation..................................................... 48 11. HR Cost To Full-Time Equivalent (Fte)................... 56 1. Cross-Cultural Challenges.......................................... 48 12. Promotion Rate.................................................... 56 2. Motivating Unique Groups Of Workers........................ 49 13. Retention............................................................. 56 3. Flexible Work/Job Schedules..................................... 49 Recruitment Metrics................................................................ 56 4. Motivating Professionals............................................ 49 1. Time To Fill............................................................... 56 5. Motivating Contingent Workers.................................. 49 2. Time To Hire............................................................. 56 6. Motivating Low-Skilled, Minimum-Wage Employees..... 49 3. Time-To-Productivity................................................. 56 7. Designing Appropriate Rewards Programs.................. 49 4. Accession Rate......................................................... 56 S2 Employee Engagement...................................................... 49 5. Cost Per Hire............................................................ 57 William Kahn’s Theory Of Employee Engagement...................... 49 6. First Year Attrition.................................................... 57 Kahn’s Theories As Employee Engagement Drivers.............. 49 7. Turnover Rate........................................................... 57 Defining Employee Engagement............................................... 49 8. Applicants Per Opening............................................. 57 THRee Types Of Employees................................................ 49 9. Selection Ratio.......................................................... 57 Drivers Of Engagement....................................................... 50 HRA REVIEWER SET 1 PAGE 3 OF 58 CGS, RPm, CHRA. CLARK G. SUMAYAO, RPm, CHRA 10. Offer Acceptance Rate.......................................... 57 11. Vacancy Rate....................................................... 57 12. Application Completion Rate................................. 57 13. Promotion Rate.................................................... 57 14. Succession Rate................................................... 57 Training And Development Metrics........................................... 57 1. Competency Rate...................................................... 57 2. Training Spend Rate.................................................. 57 3. Training Cost Per Employee....................................... 57 4. Training Participation Rate........................................ 57 General Workforce Metrics....................................................... 57 1. Retirement Rate........................................................ 57 2. Salary Hike Since Last Year....................................... 57 3. Employee Engagement Rate...................................... 58 Risk Management Metrics......................................................... 58 1. Workers Compensation Spend Rate............................ 58 2. Workers Compensation Claims Filed........................... 58 3. Employment Practices Claims Initiated....................... 58 4. Employee Liability Spend........................................... 58 Performance Management Metrics........................................... 58 1. Performance Review Completion Rate....................... 58 2. Average Performance Rating..................................... 58 3. Performance Rating Distribution................................ 58 Total Rewards Metrics.............................................................. 58 1. Annual Base Salary Increase...................................... 58 2. Target Bonus For Executives...................................... 58 3. Target Bonus For Non-Executives.............................. 58 4. Benefits Spend Share................................................ 58 5. Benefit Participation Rate.......................................... 58 HRA REVIEWER SET 1 PAGE 4 OF 58 CGS, RPm, CHRA. CLARK G. SUMAYAO, RPm, CHRA C1 HUMAN RESOURCE FUNCTIONS FACETS OF HR 4. Training and Development Professionals - They design and implement training programs that enhance employees' skills, knowledge, and performance. They identify learning needs, develop training materials, and facilitate workshops and courses. 5. Compensation and Benefits Specialists - design and manage compensation structures, benefits packages, and incentive programs that attract, retain, and motivate employees. 6. Employee Relations Specialists - handle employee grievances, conflicts, and workplace issues, fostering positive relationships between employees and the organization. 7. Performance Managers - oversee the performance appraisal process, set performance goals, and provide feedback to employees to ensure their continuous development. 8. Labor Relations Managers - In organizations with unions, labor relations managers handle negotiations, grievances, and compliance with labor laws and agreements. HIERARCHY OF HR TITLES 9. HR Analysts - use data and analytics to derive insights from HR metrics, helping to inform strategic decisions and improvements in HR processes. 10. HR Associate, Assistants, and Coordinators - These roles support various HR functions, such as administrative tasks, scheduling interviews, maintaining records, and assisting with onboarding processes. HR Associates - typically have a broader scope of responsibilities compared to assistants and coordinators. o They might be involved in various HR functions, including recruitment, employee relations, training, and administrative tasks. o They may assist in conducting interviews, managing HR records, and supporting HR projects. o HR Associates often have more experience and knowledge in HR practices compared to entry- level positions. HR Assistants - focus on administrative tasks and providing support to the HR team. o Duties may include: maintaining employee records, scheduling interviews, coordinating meetings, and managing paperwork. o They play a crucial role in ensuring the smooth operation of HR processes by handling routine tasks and assisting with various HR functions. HR Coordinators - typically have more responsibility than assistants but might have a narrower focus compared to associates o They might handle specific areas within HR, such as employee onboarding, benefits administration, or training coordination o Coordinators ensure that processes run efficiently by managing logistics, communication, and coordination related to their assigned area. 11. CHRO (Chief Human Resources Officer) - In larger organizations, the CHRO is the executive leader responsible for the overall HR strategy and its alignment with business SOME OF THE KEY PERSONS INVOLVED IN HR MANAGEMENT goals. 1. HR Managers - responsible for overseeing the entire HR 12. Employees - While not HR professionals, employees function within an organization. themselves also play a role in HR management by They develop HR strategies, policies, and programs, participating in performance evaluations, development manage employee relations, and ensure alignment programs, and other HR-related processes. between HR practices and organizational goals. 2. HR Specialists - focus on specific areas within HR, such as recruitment, training and development, compensation and benefits, employee relations, or performance management. They bring specialized expertise to these functional areas. 3. Recruiters (Talent Attraction & Acquisition / Sourcers) - responsible for sourcing, attracting, and selecting candidates to fill job vacancies within the organization. They engage in candidate outreach, screening, interviewing, and ensuring a smooth onboarding process. HRA REVIEWER SET 1 PAGE 5 OF 58 CGS, RPm, CHRA. CLARK G. SUMAYAO, RPm, CHRA OPERATIVE FUNCTIONS S1 HUMAN RESOURCE 1. Procurement of Employees - Involves attracting, sourcing, MANAGEMENT FUNCTIONS and recruiting suitable candidates to fill vacant positions within the organization. Talent management - is a strategic approach to managing an - Includes: activities such as job analysis, job posting, organization's human resources with a focus on attracting, candidate screening, interviewing, and selecting the developing, retaining, and maximizing the potential of talented best-fit individuals for the roles. individuals to achieve the organization's goals and objectives. 2. Placement and Utilization of Employees - Focuses on placing selected employees in appropriate job roles that align Key elements of talent management typically include: with their skills, qualifications, and competencies. 1. Talent Acquisition - Aims: optimize the allocation of human resources to 2. Talent Development maximize their contributions and overall organizational 3. Performance Management efficiency. 4. Succession Planning 3. Training and Development - Encompasses activities that 5. Career Pathing enhance the skills, knowledge, and abilities of employees. 6. Retention Training - involves structured programs that impart 7. Workforce Analytics specific skills Development - focuses on a broader growth plan for 4 MAIN ACTIVITIES OF HRM employees to excel in their current and future roles. 1. Acquisition - Involves the processes of attracting, sourcing, 4. Motivating Employees - Involves creating an environment selecting, and hiring qualified individuals for various job that encourages employees to perform at their best. roles within the organization. - Includes: recognition, rewards, career growth - Includes: recruitment strategies, candidate evaluation, opportunities, and addressing employees' needs to boost and making informed hiring decisions to bring in the their job satisfaction and commitment. right talent. 5. Compensating - Encompasses designing and managing compensation packages for employees. 2. Development - Focuses on enhancing the skills, knowledge, - Includes: determining salaries, bonuses, benefits, and and abilities of employees to improve their performance and incentives that align with both industry standards and contribute effectively to the organization. the organization's financial capabilities. - Includes: training programs, career development 6. Maintaining Good Industrial Relations - Focuses on initiatives, mentoring, and continuous learning fostering positive relationships between employees, opportunities. management, and labor unions (if applicable). - Includes: handling grievances, disputes, negotiations, 3. Motivation - Involves creating a positive work environment, and creating an environment of open communication recognizing employee contributions, and implementing and cooperation. strategies to increase employee engagement and job 7. Record Keeping - Involves maintaining accurate and up-to- satisfaction. date records related to employees' personal and professional information. 4. Maintenance of Human Resources - activities that aim to - Includes: documentation of employment contracts, retain and sustain the workforce over the long term. performance evaluations, training records, and other - Includes: managing employee relations, ensuring fair relevant data for legal compliance and decision-making compensation and benefits, addressing workplace purposes. concerns, and creating a safe and inclusive workplace culture. FEATURES OF HRM 1. Inherent Part of Management - HRM is an integral HRM HAS 2 FUNCTIONS component of overall management, involving the 1. Basic Functions – general management: planning, management of people to achieve organizational goals and organizing, directing, coordinating, and controlling objectives. 2. Operative Functions – daily activities of business: 2. Pervasive Function - HRM is present throughout the procurement, placement and utilization, motivating, and organization and impacts all levels, departments, and compensating employees. functions, reflecting its broad influence. 3. Basic to all Functional Areas - Human resource BASIC FUNCTIONS management principles are essential in every functional area 1. Planning - Developing strategies and action plans to align of an organization, ensuring that people are effectively HR activities with organizational goals, anticipating managed regardless of their roles. workforce needs, and creating a roadmap for effective HR 4. People Centered - HRM places a strong emphasis on management. (See S2) employees as valuable assets, recognizing their contributions and focusing on their development and well-being. 2. Organizing - Structuring and arranging resources, roles, and Blue-collar workers – e.g., Working on machines and responsibilities within the organization to ensure smooth engaged in loading, unloading, etc. operations, clear communication, and efficient workflow. White-collar workers – e.g., clerical Employees, Managerial and Non-managerial personnel, 3. Directing - Guiding and leading HR teams to execute tasks, professionals projects, and initiatives effectively, while fostering a positive 5. Personnel Activities or Functions - HRM encompasses work environment that encourages collaboration and various activities, including recruitment, training, innovation. compensation, performance management, and employee relations. 4. Controlling - Monitoring and evaluating HR processes and 6. Based on Human Relations - HRM is grounded in the outcomes, comparing actual results to predefined standards, understanding of human behavior, interactions, and and taking corrective actions to ensure compliance, psychology to effectively manage and motivate employees. efficiency, and continuous improvement. 7. Continuous Process - HRM is an ongoing and evolving process, involving various stages such as planning, recruitment, selection, development, and retention that require consistent attention and adaptation. HRA REVIEWER SET 1 PAGE 6 OF 58 CGS, RPm, CHRA. CLARK G. SUMAYAO, RPm, CHRA DETERMINANTS OF HRP S2 HUMAN RESOURCE PLANNING Factors or determinants can be classified into (1) external factors (HRP) and (2) internal factors. Human Resource Planning (HRP) or Workforce Planning (WFP) EXTERNAL FACTORS - is the process an organization uses to analyze its workforce and Government Policies determine the steps it must take to prepare for future staffing Level of Economic Development needs. Business Environment Process of estimating and projecting the supply and demand Level of Technology for different categories of personnel in the organization for International Factors the years to come. A systematic assessment of workforce content and INTERNAL FACTORS composition issues and determines what actions must be Company Policies and Strategies: Company’s policies and taken to respond to future needs. strategies relating to expansion diversification, alliances, etc. - The actions to be taken may depend on determines the HR demand in terms of quality and quantity. o External factors (e.g., skill availability) Human Resource Policies: Quality of human resource, o Internal factors (e.g., age of the workforce). compensation level, quality of work life, etc. o These factors may determine whether future skill needs Job Analysis: Job description and job specification will be met by recruiting, by training or by outsourcing determines the kind of employees required. the work (SHRM 2021). Time Horizons - Companies with stable competitive environment can plan for the long run whereas the firms Main objective of WFP: identify the “human capital” (KSA) with unstable competitive environment can plan for only requirement of the organization and how to acquire them. short-term range. WFP can be used to “optimize” current workforce in the HR PLANNING AT DIFFERENT LEVELS organization. HRP may be done at different levels and for different purposes. WORKFORCE PLANNING PROCESS 1. HRP at the National Level - Forecast the demand and There are several distinct analytical steps in workforce planning: supply of human resources at the national level. 1. Supply Analysis - (supply forecasting) - Plans for occupational distribution, sectoral and o also referred to as “staffing assessment”, an analysis of regional allocation of human resources. an organizations’ labor supply. - Plan for educational facilities, health care facilities, agricultural and industrial development and 2. Demand Analysis - (demand forecasting) employment plans, etc. o includes a review of future business plans and The government of the country plans for human objectives. resources at the national level. 3. Gap Analysis (estimating workforce gap) o compares the differences in the supply and demand 2. HRP at the Sectoral Level - Plan for a particular sector (e.g., analysis and identifies human capital availability and agriculture, industry) deficiencies - Helps government allocate resources to the various sectors depending upon the priority accorded to the 4. Solution Analysis (formulating HR plans) particular sector. o focuses on how to address gaps in current staffing and future staffing needs through recruiting, training and 3. HRP at the Industry Level - takes into account the development, contingent staffing, and outsourcing. output/operational level of the particular industry when manpower needs are considered. FACTORS AFFECTING WFP 1. External challenges - economic developments, political, 4. HRP at the Unit Level - HR Planning at the company level is legal, social, technological changes, and competition based on the estimation of human resource needs of the 2. Organizational decisions - divesting, investing, particular company in question. It is based on the business downsizing, and merger plan of the company. 3. Workforce factors - Quality and quantity, and diversity of Manpower Plan - helps avoid the sudden disruption of workforce the company’s production since it indicates shortages of particular types of personnel, if any, in advance, thus HRP is the most important managerial function of an enabling the management to adopt suitable strategies to organization. It ensures three main things: cope with the situation. 1. Adequate supply of human resources. 5. HRP at the Departmental Level - looks at manpower needs 2. Proper quality of human resources. of a particular department in an organization. 3. Effective utilization of human resources. INTEGRATED STRATEGIC PLANNING AND HR OBJECTIVES OF HUMAN RESOURCE PLANNING Integrated strategic planning involves four steps, presents the link 1. Assessing manpower needs for future and making plans for between strategic plan and human resource plan: recruitment and selection. 2. Assessing skill requirement in future for the organization. Step I - Development and knowledge of organization’s 3. Determining training and the development needs of the overall purpose or mission or goals and objectives. organization. Step II - Providing inputs by HR manager regarding key HR 4. Anticipating surplus or shortage of staff and avoiding areas, capabilities and constraints of HR and environment to unnecessary detentions or dismissals. corporate strategists. 5. Controlling wage and salary costs. Step III - The corporate strategists in turn communicate their 6. Ensuring optimum use of human resources in the needs and constraints to the HR manager. organization. Step IV - Integration of HR and other functional plans. 7. Helping the organization to cope with the technological development and modernization. CORPORATE STRATEGIC PLANNING INVOLVES FOUR TIME SPANS: 8. Ensuring career planning of every employee of the 1. Long period (5 or more years) - Strategic plans that establish organization and making succession programs. company’s vision, mission and major long-range objectives. 9. Ensuring higher labor productivity. 2. Intermediate period (3 years) - Intermediate-range plans cover about a three-year period. These are more specific plans in support of strategic plan. HRA REVIEWER SET 1 PAGE 7 OF 58 CGS, RPm, CHRA. CLARK G. SUMAYAO, RPm, CHRA 3. Operation period (1 year) - Operating plans cover about one assumptions to the others, who then make year. Plans are prepared month-by-month in sufficient detail revisions in their forecasts. for profit, human resources, budget and cost control. o Face-to-face contact among the experts is avoided. 4. Short period (day-to-day or week-by-week) - Activity plans survey approach can be adopted are the day-to-day and week by-week plans. These plans may not be documented. 2. STATISTICAL PROJECTION Statistical Projection - forecasting techniques based on STRATEGIC PLAN VS. HR PLAN CAN BE AT FOUR LEVELS: statistical methods. 1. Corporate-Level Plan a. Ratio-Trend Analysis: carried out by studying the past Top management formulates corporate-level plan based ratios and the forecasting ratios for the future. on corporate philosophy, policy, vision and mission. o The components of internal environmental The HRM role is to raise the broad and policy issues changes are considered while forecasting the relating to human resources. future ratios. o The HR issues are related to employment policy, o Activity level forecasts - are used to determine HRD policies, remuneration policies, etc. the direct human resource requirements. This o The HR department prepares HR strategies, method depends on the availability of past records objectives and policies consistent with company’s and the internal environmental changes likely to strategy. occur in future. b. Econometric Model: the previous data is analyzed and 2. Intermediate-Level Plan the relationship between different variables in a Strategic Business Units (SBUs) - organized by large- mathematical formula is developed. scale and diversified companies for the related c. Work-Study Techniques: generally used to study work activities. measurement. o SBUs prepare intermediate plans and implement o the volume of workload in the coming years is them. analyzed. HR managers prepare specific plans for acquiring o These techniques are more suitable where the future managers, key personnel and total number of volume of work is easily measurable: employees in support of company requirements over ▪ If forecast expansion in the operations, the next three years. additional operational workers may be 3. Operations plan - prepared at the lowest business profit required. center level. ▪ If forecast reduction in its operations in a Supported by the HR plans relating to recruitment of particular area, there may be decreased skilled personnel, developing compensation structure, demand for the workers. designing new jobs, developing, leadership, improving ▪ If no change, present demand for workers work life, etc. will continue. o also takes into account the productivity pattern 4. Short-term activities plan for the present and future, internal mobility of the workers like promotion, transfer, external mobility Day-to-day business plans are formulated by the lowest of the workers like retirement, deaths, voluntary level strategists. retirements, etc. Day-to-day HR plans relating to handling employee benefits, grievances, disciplinary cases, accident reports, etc. are formulated by the HR managers. SUPPLY FORECASTING FACTORS FOR HR REQUIREMENTS ON SUPPLY SIDE DEMAND FORECASTING Supply forecasting - is concerned with human resources requirements from within and outside the organization. FACTORS FOR MANPOWER REQUIREMENTS ON DEMAND SIDE The first step of forecasting the future supply of human Demand forecasting - process of estimating the future resource is to obtain the data and information about the requirements of manpower, by function and by level of skills. present human resource inventory. - It has been observed that demand assessment for operative The supply forecasting includes human resource audits; personnel is not a problem but projections regarding employee wastage; changes due to internal promotions; and supervisory and managerial levels is difficult. changes due to working conditions. TWO KINDS OF FORECASTING TECHNIQUES Some of the steps are discussed below: used to determine the organization’s projected demand for HR: Human Resource Audits - analysis of each employee’s skills and abilities. 1. JUDGEMENTAL FORECASTS o facilitates the human resource planners with an Judgmental Forecasts: aka. Conventional Method understanding of the skills and capabilities available in - forecasts are based on the judgement of those managers the organization and helps them identify manpower and executives who have intensive and extensive supply problems arising in the near future. knowledge of human resource requirement. o These inventories should be updated periodically otherwise it can lead to present employees being Judgmental Forecasts could be of two types: ignored for job openings within the organization. a. Managerial Estimate: o Managers or supervisors who are well-acquainted Employee Wastage with the workload, efficiency and ability of o This is done to identify the employees who leave the employees, think about their future workload, organization and to forecast future losses likely to occur future capabilities of employees and decide on the due to various reasons. number and type of human resources to be o Employees may leave for reasons like: retirements, required. layoffs, dismissals, disablement, ill health, death, etc. o An estimate of staffing needs is done by the lower- o High Labor Turnover and Absenteeism should be level managers who make estimates and pass analyzed and remedial measures taken. them up for further revision. ▪ Management has to calculate the rate of labor turnover, conduct exit interview, etc. This helps b. Delphi Method: to forecast the rate of potential loss, reasons for o requires a large number of experts who take turns loss and helps in reducing the loss. to present their forecast statement and underlying HRA REVIEWER SET 1 PAGE 8 OF 58 CGS, RPm, CHRA. CLARK G. SUMAYAO, RPm, CHRA - Internal Promotions Analysis is undertaken regarding the vacancies likely due to FEATURES OF HRD 1. Training and Development - HRD focuses on enhancing the retirements and transfer and the employees of particular skills, knowledge, and capabilities of employees through groups and categories who are likely to be promoted. various training programs and developmental activities. o The multiple effect of promotions and transfers on the 2. Performance Management - HRD oversees the process of total number of moves should be analyzed and taken evaluating, managing, and improving employee into consideration in forecasting changes in human performance through objective setting, feedback, coaching, resource supply of various departments. and other performance enhancement techniques. ▪ For example, there are 3 moves for one promotion. 3. Career Development - HRD assists employees in planning and managing their career growth within the organization, GUIDELINES FOR MAKING HRP EFFECTIVE identifying their aspirations, and providing guidance and 1. Integration with Organizational Plans. opportunities to achieve their career goals. 2. Period of HR Planning. 4. Succession Planning - HRD identifies potential leaders 3. Proper Organization. within the organization and develops their skills to ensure a 4. Support of Top Management. smooth transition in key positions as per the organization's 5. Involvement of Operating Executives. succession planning strategy. 6. Efficient and Reliable Information System. 5. Talent Management - HRD focuses on attracting, 7. Balanced Approach. identifying, selecting, and retaining talented individuals within the organization to meet its current and future needs. S3 HUMAN RESOURCE 6. Organizational Development - HRD supports the overall development and improvement of the organization by DEVELOPMENT facilitating change, promoting a positive organizational HRD (Human Resource Development) - refers to the process of culture, and aligning HR practices with organizational developing the knowledge, skills, abilities, and attitudes of objectives. employees within an organization to enhance their performance 7. Employee Engagement - HRD fosters a positive work and contribute to the overall growth and success of the environment, promotes employee involvement, and organization. encourages open communication to enhance employee - It focuses on creating a learning environment, providing satisfaction, motivation, and commitment. training and development opportunities, and supporting 8. Knowledge Management - HRD facilitates the acquisition, employees in their career growth. sharing, and utilization of knowledge within the organization to enhance organizational effectiveness and See C3 Workplace Learning and Development for theories and innovation. methodologies in HRD FUNCTIONS OF HRD KEY DIFFERENCES BETWEEN HRD AND 1. Training and Development - designing and implementing HRM training programs, conducting needs assessments, and evaluating training effectiveness. SCOPE 2. Performance Management - establishing performance HRD HRM standards, monitoring performance, providing feedback, and HRD specifically focuses on HRM covers a wide range implementing performance improvement plans. the development and of functions that span the 3. Career Development - conducting career counseling, growth of employees entire employee lifecycle, developing career paths, and identifying learning and through training, career including recruitment, growth opportunities for employees. planning, and performance selection, compensation, 4. Succession Planning - identifying potential successors, enhancement initiatives. and employee relations. developing their skills, and creating plans for filling key It aims to build the skills positions in the future. and capabilities of 5. Talent Management - attracting candidates, conducting employees to drive recruitment and selection, and providing onboarding individual and processes to ensure talent acquisition and retention. organizational success. 6. Organizational Development - diagnosing organizational issues, implementing interventions, managing change, and FOCUS improving organizational effectiveness. HRD HRM 7. Employee Engagement - promoting employee involvement, HRD emphasizes creating a HRM, on the other hand, conducting employee surveys, fostering a positive work learning culture and has a more strategic focus, culture, and implementing strategies to enhance employee supporting employees' aligning human resources engagement. professional development. with organizational goals, 8. Knowledge Management - developing knowledge-sharing ensuring compliance with platforms, encouraging expertise exchange, and capturing It is centered around the policies and regulations, and disseminating organizational knowledge individual employee's and managing the overall growth, potential, and workforce. career aspirations. HRA REVIEWER SET 1 PAGE 9 OF 58 CGS, RPm, CHRA. CLARK G. SUMAYAO, RPm, CHRA C2 RECRUITMENT AND SELECTION S1 BASIC CONCEPTS IN TALENT ACQUISITION PROCESS Aamodt (2016) RECRUITMENT AND HIRING 1. Identifying the hiring need HIRING PROCESS 2. Devise a recruitment plan 3. Write a JD 3 SEGMENTS OF THE HIRING PROCESS 4. Advertise the position Planning - Involves establishing the foundation for the 5. Recruit the position hiring process by defining the job role, responsibilities, and 6. Review applications required qualifications. 7. Initial screening Recruitment - process of attracting potential applicants to a 8. Interview vacant position 9. Applicant’s assessment Selection - process selecting the most qualified candidates 10. Background checking among the applicants. 11. Decision (to select or reject) 12. Job Offer FACTORS ADDRESSED 13. Hiring Looks, dresses, body language, communication styles 14. Onboarding Avoid Type I and Type II Error Expanded below TALENT ACQUISITION 1. IDENTIFYING THE HIRING NEED TALENT: (1) Buy, (2) Bind, (3) Borrow, (4) Build WHEN DO WE HIRE? 1. A newly formed position is available – due to BUY company expansion. Your Situation 2. Recently vacated position. - Quick fulfillment - Internal pipeline, slow internal supply 2. DEVISE A RECRUITMENT PLAN - Organization transformation, needs new perspective 1. INTERNAL RECRUITING STRATEGIES Pros