Human Resource

• Human Resource


  Also referred as Human Capital, is defined as the set of individuals that comprises the workforce of an enterprise
• Human Resource


  • Considered to be the most important component of an organization
• Human Behavior


  Cannot easily be quantified, nor can be approached with technical knowledge
• Human Behavior


  Fall under 'soft' complexity and would deal primarily with behavioral sciences
• Industrial Engineers


  • Concerned not only with the production in a plant, but also largely with the welfare of the employees
• Goals of Industrial Engineers

  Explore the psychological factors that are often neglected in organizational manuals and engineering studies
• Human Resource Management (HRM)


  All about managing the human workforce
• Human Resource Management (HRM)


  Governs all the personal and work-related concerns of the employees
• Craft System


  Occurred in the early stages of human resource management
• Craft System


  Workers were highly skilled; more like craftsmen than factory workers
• Scientific Management


  Decreased the importance of the employee because tasks were now broken down into simpler ones that can be accomplished by semiskilled workers in a much shorter time and for a more consistent quality
• Human Relations Movement


  All started when Elton Mayo sought to determine the effects that levels of illumination had on the productivity of workers
• Organize Science


  Combines the lessons learned from the previous periods and focuses more on the organization as a whole instead of on individuals
• Specific Functions of HRM

  • Human Resource Planning
  • Human Resource Forecasting
  • Job Description
  • Job Specifications
  • Job Design
  • Human Resource Planning and Forecasting
• Human Resource Planning


  Concerned with forecasting future human resource needs
• Human Resource Planning


  Determines what kinds of jobs that a company needs and the requirements that those jobs demand
• Human Resource Forecasting


  Process of estimating the future human resource requirement of right quality and right number
• Factors that affect a company's need for labor

  • Death
  • Resignation
  • Retirement Termination
  • Productivity of Employees
  • Growth and Expansion of Organization
  • Absenteeism
• Job Description


  List of all the tasks and responsibilities of a job
• Job Specifications


  List of qualifications that a person must have to be able to fulfill the job
• Job Design


  Specifies the content of a job, the materials and equipment needed to do the job, and its relation to other jobs in the company
• Human Resource Planning and Forecasting

  It also concerns with work schedules, which are usually dictated by the nature of a company's business
• Scheduling Schemes


  • Altered workweeks
  • Compressed workweek
  • Flextime
• Altered workweeks


  Major departures from the standard 5 – day week and 9am – 5pm working hours per day
• Compressed workweek

  The work week has the normal number of hours but compressed into fewer days
• Flextime


  Workers are required to work only during a core time of the day and allowed to schedule the rest of their work time as they please
• Employee Recruitment and Selection

  Process wherein the company looks for people to fill a position that it has created or has become vacant
• Internal Labor Market


  Composed of employees that are already working inside the company
• Internal Labor Market


  When a candidate is chosen, he is either transferred, or promoted to the vacant position
• External Labor Market


  The process of attracting qualified applicants differs according to the level of the applicant
• External Labor Market


  Pool of candidates from outside the company
• Employee Training and Development

  When an employee is accepted for a certain job, it is seldom that he performs the job right away
• Employee Training and Development

  He is first trained to enhance his skills and ensure that he will do his job properly on actual scenarios
• On-The-Job Training


  Employee training takes place at the job site and it tends to be directly related to the job
• Off-The-Job Training


  The working environment that the person will be working in is taught in a classroom or in simulated environments like vestibules and simulators
• Performance Evaluation and Career Development

  Employees have to be given feedback so that they would know whether or not they are doing their job well
• Ranking Method


  Oldest and simplest performance appraisal method
• Ranking Method


  Employees are compared to other employees and ranked according to their performance
• Grading Method


  Employee performance is evaluated through grades
• 360-degree Approach


  First developed by General Electric Company of America in 1992 employee's performance is evaluated by his or her supervisors, peers, and customers