MODULE I: Introduction to Human Resource Management

INTRODUCTION

In this module, you will learn about the nature, scope, importance,
and evolution of Human Resource Management, as well as its roles and
functions.

LEARNING OUTCOMES: Upon completion of this Module, you shall be able to:
1. Explain the role of HRM in industrial settings
Lesson 1: Definition and Scope

DISCUSSION:
What is Human Resource Management?

Human Resource Management is the process of acquiring, developing,

motivating, and retaining a productive workforce to achieve an
organization’s objectives.

 Acquiring refers to all activities involved in bringing new people

into the organization. It covers the entire process of ensuring the
organization gets the right people, with the right skills, at the
right time. This may include human resource planning, recruitment,
selection, and placement and onboarding.

 Developing means helping employees grow their skills, knowledge,

and abilities so they can perform better in their current jobs and
prepare for future roles. It focuses on continuous improvement for
both the employee and the organization. It includes training,
employee development, career development, and performance coaching.

 Motivating refers to encouraging employees to give their best effort

by meeting their needs, recognizing their contributions, and
creating a work environment where they feel valued and engaged. It’s
about driving people to perform well—not because they have to, but
because they want to. It includes compensation and benefits,
recognition and rewards, opportunities for growth, work
environments, and engagement program.

 Retaining means keeping valuable employees in the organization by

making sure they are satisfied, engaged, and motivated to stay. It’s
about reducing employee turnover and holding on to people who
contribute to the company’s success. This involves competitive
compensation and benefits, career growth opportunities, positive
work environment, recognition and rewards, work-life balance, and
strong employee relations.

The Scope of HRM:

 Human Resource Planning

Human Resource Planning is essentially about ensuring a company

has the right number of workers with the right skills at the right
time. Imagine running a workshop: if you have only one technician
but need three to complete a project, you’ll be delayed. On the
 other hand, if you hire too many people, you’ll spend more money
than needed. Human Resource Management helps balance this by
predicting future manpower needs and preparing for them.
HRP is important because companies can’t just hire workers
whenever they feel like it. The need to think ahead.

Example:
 If a factory plans to add more machines next
year, HR must start planning now to hire and
train new operators.
 If an employee is about to retire, HR should
prepare a replacement ahead of time.
 If a business wants to expand abroad, HR must
look at the skills and languages required.

It follows four basic steps such as analyzing current staff

(How many workers at the moment? What are their skills?), forecasting
future needs (How many workers will we need next year or in the next
five years?), identifying gaps (Is there enough skilled people?, Does
the company need to train or hire?), developing action plans
(training current staff, recruiting new workers, or even
outsourcing).
HR planning is not always easy as well as it faces some
challenges like changing technology, employee turnover, economic
changes, and global trends.
Nowadays, Human Resource planning do not just look at numbers.
It also considers skills for the future.

Example:
In industrial technology, companies now look for
workers who not only know how to operate machines
but can also adapt to automation and digital
systems. HRP ensures that workers are not left
behind and that businesses stay competitive in the
modern era.

 Job Analysis Design

Job analysis is a systematic procedure that involves the

comprehensive examination and evaluation of specific job
responsibilities and prerequisites, as well as the determination of
the relative significance of these functions within a certain
occupation. It answers questions like: what does the worker do? What
skills and tools are needed? and What are the working conditions?
 Example:
If we analyze the job of a Computer Numerical
Control (CNC) Machine Operator, we’d look at tasks
like setting up machines, monitoring production, and
following safety rules. We’d also note the required
skills like basic math, machine operation, and
attention to detail.

Job analysis helps managers create clear Job Descriptions and

Job Specifications.
If Job Analysis is about understanding the job, Job Design on
the other hand is about organizing the job in a way that makes it
effective and motivating. It deals with how tasks are grouped, how
much responsibility a worker has, and how the job can be made more
meaningful.

Example:
Instead of giving a worker only one repetitive
task like drilling holes all day, a well-designed
job might combine drilling, checking measurements,
and recording results. This makes the work less
boring and helps employees feel more engaged.

The few common ways to design jobs include:

1. Job Enlargement – adding more task at the same level to
reduce boredom. Ex.: A factory worker does both packing
and labeling instead of just one.
2. Job enrichment – Giving more responsibility or decision-
making power. Ex.: A welder is also tasked to check the
quality of his own work.
3. Job Rotation – Moving employees between jobs to build
skills and reduce monotony. Ex.: A worker rotates between
machine operation, inspection, and maintenance.

Job analysis and design are important because they help HR hire
the right people. It provides the basis for fair pay and performance
evaluation. It also makes work more interesting and reduces employee
turnover. Hob analysis and design also improve efficiency in
industrial and technical workplaces.

 Recruitment and Selection

Recruitment is the process of finding people who might be a

good fit for a job. It’s like “inviting applicants” to apply.
Companies announce job openings and encourage qualified people to
send their applications. Selection, on the other hand, is the next
step after the selection. It’s about choosing the best candidate
from all the applicants. This is where interviews, exams, and
background checks happen.
 Example:
In recruitment, if a factory needs new machine
operators, HR may post an ad online, contact a
training school, or announce it on Social Media
platform or JobStreet. While in selection, let say,
out of 50 applicants for a job, HR may shortlist 10,
interview them, test their skills, and then hire the
one who meets the requirements best.

There are two types of recruitment:

1. Internal Recruitment – this is hiring from inside the
company. Example: Promoting a technician to a supervisor
role. Its advantage is that, the person already knows the
company.
2. External Recruitment – This is hiring from outside the
company. Example: Posting ads online or going to job fairs.
Its advantage is, it brings in fresh skills and ideas.

The selection process usually follows the following steps:

1. Screening applications – checking the resumes and documents.
2. Interviews – Talking to the applicants about their skills
and experience
3. Testing – Giving some technical test or aptitude test as
some jobs require exams.
4. Background checks – Confirm work history, education, or
character references.
5. Hiring decision – Choose the best candidate and make the job
offer.

 Orientation and Induction

Orientation is the process of welcoming new employees and helping them

get familiar with the company. It’s like a “getting-to-know-you” session
between the company and the new worker. HR gives a short program to explain
safety rules, company values, and benefits. During orientation, new hires
learn about the company’s history, mission, and goals, rules and policies,
workplace facilities, and who their supervisors and teammates are.
While orientation focuses on introducing the company, induction helps
the employee adjust to their specific job and role. This includes meeting
their supervisor and team, learning about their tasks, receiving training
on the machines, tools, or software they will use, and understanding
performance expectations. For example, a new CNC operator may be trained
on how to operate the company’s machines and introduced to the maintenance
team they will work with.
Orientation and induction are important because they reduce confusion,
build confidence, improve safety, and encourage loyalty. Common activities
during orientation and induction include an HR presentation on company
policies and benefits, a plant or office tour, a safety briefing (covering
fire exits, emergency procedures, and PPE), a meeting with the immediate
supervisor, signing documents such as contracts and confidentiality
agreements, and initial training sessions.
 Training and Development

Training is the process of teaching employees the skills they need to

perform their current job well. Development, on the other hand, focuses on
preparing employees for future roles and responsibilities. It is more long-
term compared to training. For example, if a company buys a new machine,
employees need training to learn how to operate it safely and correctly.
In contrast, for development, a technician who aspires to become a
supervisor might attend leadership seminars or take management courses.
Training and development are important because they lead to better
performance, fewer mistakes and accidents, employee growth, and greater
adaptability. The main types of training include on-the-job training, off-
the-job training, e-learning, and apprenticeships.
The training and development process generally involves identifying
needs, designing training, conducting training, and evaluating results.
In the modern era, training and development also focus on soft skills such
as communication, teamwork, problem-solving, and digital skills, including
the use of new software, automation tools, and online collaboration
platforms. Continuous learning is also emphasized, encouraging employees
to keep learning throughout their careers, not just once.

 Performance Appraisal

Performance appraisal is the process of reviewing and evaluating how

well an employee is doing their job. It is often compared to a 'report
card' at work. The goal is not only to rate performance but also to
provide feedback and help employees improve.

Performance appraisal is important because it provides feedback,

motivates employees, identifies training needs, supports promotion and
salary decisions, and improves communication.

Performance appraisal can be done using several methods:

 Rating scale – employees are scored on different factors such as

attendance, quality of work, and teamwork.
 Checklist – the supervisor marks whether an employee demonstrates
certain behaviors or skills.
 Essay method – the supervisor writes a short description of the
employee’s performance.
 360-degree feedback – the employee is evaluated not only by the
supervisor but also by peers, subordinates, and sometimes even
customers.
 Self-appraisal – employees assess themselves before receiving
feedback from their supervisor.

The following are the steps in the Performance Appraisal Process:

1. Set clear standards – employees should know what is expected

from the start.
2. Observe and collect data – supervisors monitor performance
during the period.
3. Evaluate performance – compare actual performance against
expectations.
4. Give feedback – sit down with the employee to discuss results.
5. Plan for Improvement – suggest training, mentoring, or new
goals.
 In the past, appraisals were usually done once a year. Today,
many companies use continuous feedback, where employees receive
regular updates instead of waiting for the annual review. The rapid
development of technology also plays a big role, as online systems
can now track performance, attendance, and even productivity in real
time.

 Compensation Planning and Remuneration

Compensation planning is the process of deciding how much

employees should be paid and what benefits they should receive. It is
not just about salaries—it also includes bonuses, allowances, health
insurance, and other rewards. The goal is to create a fair and
competitive pay system that motivates employees while keeping company
expenses under control. For example, a factory may set salaries for
machine operators and add overtime pay, hazard pay, and incentives for
high productivity.

Remuneration, on the other hand, refers to the total pay and

benefits an employee receives in exchange for their work. This includes
direct pay, such as salary, wages, overtime, and bonuses, as well as
indirect pay, such as health insurance, paid leave, and retirement
plans. In short, remuneration is the entire package an employee
receives—not just the monthly salary

Compensation and remuneration matter because they play a key role

in employee satisfaction and organizational success. Competitive pay
helps companies attract skilled workers, while fair rewards motivate
employees to perform better. Proper compensation also reduces
turnover, as employees are less likely to leave for better offers when
they feel valued. In addition, careful planning supports fairness by
preventing favoritism and closing unfair salary gaps. Finally, well-
designed incentives align with company goals by encouraging employees
to meet production targets and contribute to overall growth

Several factors affect compensation planning. Job value plays a

role, as more complex or risky jobs are usually paid higher. Employee
skills and experience also matter, since skilled workers generally
earn more than beginners. The company’s budget must be considered to
ensure salaries remain affordable, while market rates help keep pay
competitive with other organizations. In addition, laws and
regulations, such as minimum wage requirements and labor standards,
must be followed.

In modern times, compensation is not just about money. Companies

also offer performance-based incentives, which provide extra pay for
meeting targets. Non-monetary rewards, such as recognition, flexible
work schedules, and career growth opportunities, are also used to keep
employees engaged. In some industries, equity-based pay is offered,
where employees receive company shares as part of their overall
compensation package.

Lesson 2: Importance and Evolution of Human Resource Management

DISCUSSION:
Importance of Human Resource Management
Human Resource Management (HRM) is important because it deals with the
most valuable part of any organization—its people. Machines, money, and
technology can only work well if people manage and use them effectively.
HRM ensures that the right employees are hired, trained, motivated, and
kept in the organization.
Some of the key reasons HRM is important include:
1. Right People for the Job – HRM helps find and select employees
who have the skills and attitudes needed for the organization.
2. Training and Growth – HRM makes sure workers are given
opportunities to learn and improve so they can perform better now
and in the future.
3. Motivation and Morale – Through fair compensation, recognition,
and career opportunities, HRM keeps employees motivated and
satisfied with their work.
4. Smooth Operations – HRM develops policies and practices that
create harmony between employees and management, reducing
conflicts.
5. Adaptability – In today’s fast-changing world, HRM helps
organizations adjust to new technology, global competition, and
diverse workforces.
In short, HRM is not just about managing employees; it is about making
sure people and organizations grow together.

Evolution of Human Resource Management

The role of HRM has changed a lot through time.

 Pre-Industrial Era – Work was mostly informal and family-based. Skills

were passed down through apprenticeships. There was no formal HR
practice.
 Industrial Revolution (1700s–1800s) – Factories started hiring many
workers. Owners needed people to handle wages, work hours, and
discipline. This marked the beginning of “personnel management.”
 Early 1900s – The focus was on worker welfare, hiring, and simple
record-keeping. The “Personnel Department” existed mainly to handle
basic employee needs.
 Mid-1900s – With labor laws, unions, and growing businesses, personnel
management expanded to include employee relations, safety, and
motivation.
 Modern HRM (late 1900s–today) – HR moved from just administrative work
to being a strategic partner. It now includes talent management,
organizational development, diversity and inclusion, employee
engagement, and aligning people with the overall goals of the
organization.

Nowadays, HRM plays a critical role in shaping an organization’s

culture, guiding change, and ensuring long-term success.

Lesson 3: Roles and Functions of Human Resource Management

DISCUSSION:
The roles and functions of Human Resource Management (HRM) describe
what Human Resource actually does to support an organization and its people.
While the importance an scope of HRM explain why it matters and what areas
it covers, the roles and functions focus on the how. HRM takes care of
planning the workforce, hiring the right people, orienting them into the
workplace, training them to grow, evaluating their performance, and
ensuring they are fairly compensated. It also helps maintain good employee
relations and safe working conditions. In short, HRM functions are the day-
to-day activities that connect the organization’s goals with the needs and
well-being of its employees.
The following is an example of the actual application of HRM Scope in
the workplace.
A. Human Resource Manpower Plan
Company Name: ABC Metalworks, Inc.
Department: Production
Timeframe: January – June 2025
1. Business Goal
Increase production of metal parts by 20% in the next 6 months.
2. Current Workforce
 5 Machine Operators
 2 Welders
 1 Quality Control Inspector
 1 Supervisor
3. Workforce Gap Analysis
 Target production increase needs +3 Machine Operators
 Welding workload requires +1 Welder
 Quality inspection load can be handled by current staff
 No change needed for supervisory position
4. Recruitment Plan
 Machine Operators (3) → Recruitment through TESDA-certified
training centers
 Welder (1) → Recruitment through job fairs and referrals
5. Training Plan
 Safety training for all new hires
 Machine efficiency workshop for existing operators
6. Timeline
 Recruitment: February–March 2025
 Training: April 2025
 Full deployment: May 2025

Summary of HR Manpower Plan

Job Title Current Required Additional Source of Training
No. No. Needed Recruitment Needed
Machine 5 8 3 TESDA Machine
Operator graduates efficien
cy
workshop
Welder 2 3 1 Job Safety
fairs, training
employee
referrals
QC 1 1 0 N/A Refreshe
Inspector r in
quality
 standard
s
Supervisor 1 1 0 N/A Leadersh
ip
workshop

By hiring three (3) more machine operators and one (1) welder, and
by providing the necessary training, ABC Metalworks can meet its
production goal and ensure workers’ efficiency and safety.

B. Example of a mock job advertisement and selection criteria

ABC Metalworks, Inc.

We are a growing manufacturing company specializing in precision metal
parts for the automotive industry. We value skilled workers, safety,
and teamwork.

Position: CNC Machine Operator

Location: Davao City
Employment Type: Full-time

Job Description:
We are looking for a motivated CNC Machine Operator to join our
production team. The operator will be responsible for setting up,
operating, and maintaining CNC machines to ensure high-quality
products meet customer requirements.

Key Responsibilities:

 Operate and monitor CNC machines safely and efficiently

 Read and interpret technical drawings and blueprints
 Perform basic maintenance on machines and report issues
 Follow company safety procedures and quality standards

Qualifications:

 Graduate of Industrial Technology, Mechanical Technology, or related

field
 At least 1 year of experience in machine operation (fresh graduates
are welcome to apply)
 Knowledge of CNC machine tools and measuring instruments is an
advantage
 Strong attention to detail and commitment to safety

Benefits:

 Competitive salary based on skills and experience

 Overtime pay and production incentives
 Health and safety training provided

📩 How to Apply:
Interested applicants may send their résumé and application letter to:
hr@abcmetalworks.com
Deadline of application: September 30, 2025

B.1. Example of Selection of Criteria

Essential Criteria

 Graduate of Industrial Technology or related field

  Basic knowledge of machine operation
 Willingness to work in shifts
 Ability to follow safety protocols

Desirable Criteria

 Experience in operating CNC machines

 TESDA or similar certification in machine technology
 Strong teamwork and communication skills

C. Example of training plan for entry-level workers (One-day training)

Training Title: Workplace Safety and Basic Machine Operation
Target Participants: New entry-level machine operators (5–10
participants)
Date: October 15, 2025
Timeframe: 8:00 AM – 5:00 PM
Venue: Training Room & Production Area, ABC Metalworks Inc.
Trainer: HR Officer and Production Supervisor

Training Objectives

By the end of the session, participants will be able to:

1. Identify workplace safety rules and hazard signs.

2. Demonstrate the correct use of personal protective equipment (PPE).
3. Operate a CNC machine under supervision following standard procedures.
4. Show proper housekeeping practices after machine use.

Training Schedule

Time Activity Method Trainer/Facilitator

8:00 – 8:30 AM Registration and Orientation, Q&A HR Officer
Welcome
Icebreaker activity
8:30 – 9:30 AM Session 1: Workplace Lecture, visual aids, HR Officer
Safety Basics discussion
- Company rules
- Hazard symbols
- Emergency exits
9:30 – 10:00 AM Demonstration: PPE Demo, hands-on Safety Officer
Use practice
(helmets, gloves,
goggles, etc.)
10:00 – 10:15 AM Break - -
10:15 – 12:00 PM Session 2: Introduction Lecture-demo, actual Production Supervisor
to CNC Machine machine tour
- Parts of the machine
- Safety precautions
before starting
12:00 – 1:00 PM Lunch Break - -
1:00 – 2:30 PM Session 3: Guided Hands-on training Production Supervisor
Machine Operation
- Loading material
- Monitoring operation
- Emergency stop
procedure
2:30 – 3:00 PM Discussion: Common Group discussion Supervisor
Mistakes and
Troubleshooting
3:00 – 3:15 PM Break - -
 3:15 – 4:15 PM Session 4: Workplace Lecture-demo, HR & Supervisor
Housekeeping (5S workshop
Method)
- Sort, Set, Shine,
Standardize, Sustain
4:15 – 4:45 PM Assessment & Practice Written test, demo Training Team
Drill evaluation
- Safety quiz
- PPE demonstration
- Operate machine under
supervision
4:45 – 5:00 PM Closing & Feedback Evaluation forms HR Officer

D. Sample Computation of Weekly Compensation with Overtime

Employee Information
 Name: Juan Dela Cruz
 Position: Machine Operator
 Daily Rate: ₱600.00
 Work Schedule: 6 days a week, 8 hours per day
1. Regular Pay
 Worked 6 days × ₱600.00/day = ₱3,600.00
2. Overtime Pay
 Overtime rate: 125% of hourly rate (for regular workdays)
 Hourly rate = ₱600 ÷ 8 hrs = ₱75.00/hr
 Overtime hourly rate = ₱75 × 1.25 = ₱93.75/hr
Suppose Juan worked 6 hours overtime in the week:
 6 hrs × ₱93.75 = ₱562.50
3. Total Gross Pay
 Regular pay: ₱3,600.00
 Overtime pay: ₱562.50
 Total = ₱4,162.50
4. Deductions (Example only)
 SSS: ₱150.00
 PhilHealth: ₱100.00
 Pag-IBIG: ₱100.00
Total deductions = ₱350.00
5. Net Pay
 ₱4,162.50 – ₱350.00 = ₱3,812.50

E. Example of Workplace Safety Guidelines

ABC Small Workshop
1. General Conduct
 Always follow the supervisor’s instructions.
 Report any unsafe condition or damaged equipment right away.
 No horseplay, running, or distractions inside the workshop.
2. Personal Protective Equipment (PPE)
 Wear safety glasses, gloves, or masks as required.
 Always wear closed-toe shoes; no slippers allowed.
 Keep long hair tied back and avoid loose clothing or jewelry.
3. Machine and Tool Safety
 Only trained workers may operate machines.
 Inspect tools and machines before use; do not use damaged equipment.
 Turn off and unplug tools after use.
 Never leave a running machine unattended.
4. Fire and Electrical Safety
 Do not overload electrical outlets.
 Keep flammable materials away from sparks and heat sources.
  Know where the fire extinguisher and first aid kit are located.
5. Housekeeping
 Keep aisles and work areas free from clutter.
 Clean spills immediately to prevent slips and falls.
 Return tools and materials to their proper storage after use.
2. Emergency Procedures
 In case of fire, stop work immediately and evacuate calmly.
 Report all accidents, even minor ones, to the supervisor.
 Know the emergency contact numbers posted in the workshop.

ASSESSMENT

Group Activity:
Create your own version of the following:
 Human Resource Manpower Plan
 Mock job advertisement and selection criteria
 Training plan
 Computation of Compensation
 Workplace Safely Guidelines
References:

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(15th ed.). Kogan Page.
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ed.). Cengage Learning.
e. Mondy, R. W., & Martocchio, J. J. (2016). Human resource management (14th ed.). Pearson.
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