ADVANCED HUMAN RESOURCES MANAGEMENT

Lecturer:

DR. ROMULO H. BORSOTO (Proffesor)

Student:ANDI THAHIR

11-613176

GRADUATE SCHOOL OF EDUCATIONJOSÉ RIZAL UNIVERSITY

MANILA 2011

JOSE RIZAL UNIVERSITY GRADUATE SCHOOL OF EDUCATION

EDUCATION IN DOCTORAL

ADVANCED HUMAN RESOURCES MANAGEMENTCASE STUDY

John Aldo is establishing his own small business of manufacturing automobile parts, named

Aldo Company. He has already secured the necessary financing and building for the plant. He is now

preparing plans for the organization of his Human Resource Department.

His plan for the first month is to start with about twenty (20) workers while the Company is

acquiring and installing the equipment and machineries. The number of workers will gradually

increase in about six (6) month when the company will have completed the plan for operations with a

work force of at least fifty (50) employees. By the end of the year, the company expects to have

about two hundred (200) employees.

Part I

Mr. Aldo has already finished his plans for the different operating units of the company. His

problem now is to hire someone to help him organize the human resource functions in order to carry

out the objectives of the different departments of the enterprise. You are being considered as the

Human Resource Officer. He requested you to submit to him your answers on the following:

1. What are the major functions of the HR departmen suitable for the industry and size of the

enterprise? Explain why the functions are necessary in the enterprise.

Any company or organization formed for a purpose. The role of HR departmentin the

company is very important because they are responsible for seeking,obtaining, retaining

and motivating human resources required and available so thatthe company can achieve its

goals.

Accordingly, suitable for Aldo Companies in the short term is to create a job description and

recruitment. Job description helps employees to know what needs to be done, but other than

that employees also need to know the specific targets of work that needs to be achieved,

require appropriate training and development, andneeds to gain a competitive reward and

motivate etc. HR role is to build systems that help these goals can be achieved.

Company Director

Sales Manager

Finance Manager

Office Manager Production Manager

Head Depart HR

Sales Production

2. Draw an organizational chart of the HR department showing the different functions

and their relationships with one another.

Department of Human Resources In Aldo Companies:

The chart above illustrates a common form of the Department of Human Resources, when

they first formed / simple shapes. Departments are generallyrestricted to operations

personnel maintain records and assist the managers tofind a new way of withdrawal.

Departments was formed depending on other activities and also the needs of other

managers within the organization.

3. What qualifications should the HR manager have?

Division of HRD in a company usually occupied by people who belongs to educational

psychology and law. because human beings are faced with a variety of character and potential.

While the law is needed to handle matters related to labor issues, labor, and so on. For

companies that do not have HR staff from the fields ofpsychology, they can utilize the services

of a third party to conduct psychological test. At present, we can find a number of companies

engaged in manpower recruitment services of this.

4. Show why Human Resource management is the responsibility of supervisors and

managers in their respective units in all levels of the organization. How and where

will the HR manager come in?

In the structure of large organizations typically, the responsibility of oversight of human

resources manager in each unit, because the Department of Human Resources at sub

departemen underscore a company.

However, human resource management and development of future systems in a large

company will have a separate unit under head of the company. Since theactivities of

Human Resource Management is already a complex activity that suits your needs and the

scale / size of company. Thus, this complexity makes anyemployment activities can be

organized according to the needs of company employees.

A number of observations and research has shown that slowly, the HR department

must perform the transformation from merely managing the personnel function

administation to a more strategic role, such as managing the process oforganizational

transformation and also the top management's strategic partners.The role of this kind needs

to be done because by then, the HR department will beable to provide greater value added for

the development of the company's performance.

Part II

Formulate the HR policies and procedures in the following areas:

1. On employment : recruitment, testing, interviewing and selection.

a. Show how you will accomplish these.

b. How would you determine the HR requirements of each job?

One task of HRD is to carry out the selection of new candidates. Every companyhas a kind

of different tests. Here is the procedure which I will apply to the company:

1. Psycho test.

2. Interviews and tests of related divisions. So if an employee is recruited for the

marketing division, who interviewed and tested is the manager or staff of the

marketing division.

3. Salary negotiation.

4. Medical check-up.

The decision to accept or reject a candidate based on the tests set out above. In

general, HRD has the authority about 75 percent to determine whether a candidate

passes. But there are also companies that provide full authority (100percent) of

the HRD.

2. On employment training and development

a. What are the objectives of your training program?

raining is short-term educational process that uses a systematic and organized procedure,

so the power non manajerial learn the knowledge and technical skills for a particular

purpose.

The development is a long-term educational process that uses a systematic and

organized procedure that labor nonmanajerial studying conceptual and theoretical

knowledge for a common purpose

The purpose of the training and development:1. increase productivity: training can improve performance for production

2. improve the quality: the knowledge and skills can reduce the error of work

3. improve accuracy in HR planning: Manpower fit mendapatakn

4. improve morale: the climate becomes more conducive if given training

5. attract and retain qualified employees: the implication is the increase in career

6. maintain the health and safety

7. avoid obsolescence

8. as personal growth

b. What are the duties and responsibilities of a training officer?

1. identification of training needs or work study;

Miner (1992) have developed four kinds of skills that are generally provided in the

training: a. Knowledge-based skills (based on knowledge keterampilam controlled to

undergo job training such as customer service); b. Singular behavior skills (behavioral

skills such as working a simple smile in cutomer service); c.Limited interpersonal skills

(eg interpersonal skills are limited ways to delegate responsibility to subordinates);

d. Social interactive skills (social and interactive skills such as ability to manage

conflict, effective leadership).

2. Targeting;

Targets are divided into two general objectives, each of which is distinguished again

become the target of training (the introduction of general principles that can be used

in everyday work situations) and the target for the subject (after training of

employees shows that after the work behavior and the obtainment of the

training).Specific targets; cognitive goals (participants understand and are able to

identify), affective goals (participants indicate a willingness), psychomotor objectives

(mastery of motor skills in carrying out work such as typing).

3. Determination of criteria for measuring success with the tools;

If most of the trainees showed a mastery, it can be concluded the training process

effective. To determine the presence of an increased mastery, before the training

carried out examinations of trainee mastery level (pre-test), and compared with

results of examination given after the training is given, then calculated their

contribution level.

4. Determination of training methods;

a. lecture: for low cost and short amount of time

b. conference: understanding the development and formation of new attitudes

through discussion

c. case studies: to train the analytical power fikir

d. play a role: an understanding of the influence behavior through play

e. planned guidance: the sequence of steps that guide the work

f. simulation: training the artificial working conditions similar to original working

condition

5. Experiments and research

After the training needs, set training objectives, success criteria and measuring tools

are developed, the material for exercises and training methods developed and

defined the next step is to test the research package.

c. Will you institute an apprenticeship system in the company? If so, why and under what

conditions?

Apprenticeship systems are generally used almost every company, internshipsgenerally

aim to:

Assisting organizations in improving job performance through training andinternships

also the solution of non-training.

Analyze the effectiveness of new employees and also to determine the trueneeds of

the organization and performance

Exploring the needs assessment as an evaluation in relation to the placement ofnew

employees on the job right.

Internship in a company's employees more precise Aldo under the Head of HR,

because this section is more appropriate to evaluate the performance and

outcome evaluation will be recommended to the director for consideration aspermanent

employees.

Part III

Formulate your HR policies and procedures in the following areas:

1. Employee benefits and services

a. What employee benefits and services will you give to your employees?

Employee benefits and services that I will give to my employee are housing (employer-

provided or employer-paid), group insurance (health, dental, life etc.), disability income

protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid

and non-paid), social security, profit sharing, funding of education, and other specialized

benefits.

The term employee benefits and services is often used colloquially to refer to those

benefits of a more discretionary nature. Often, benefits and services are given to

employees who are doing notably well and/or have seniority. Common benefits are take-

home vehicles, hotel stays, free refreshments, leisure activities on work time (golf, etc.),

stationery, allowances for lunch, and—when multiple choices exist—first choice of such

things as job assignments and vacation scheduling. They may also be given first chance at

job promotions when vacancies exist.

b. How will you organize this section to achieve efficiency?

Achieving efficiency in benefits and services program will start with consideration in

compensation, benefits and services design. We should balancing cost to persuade and

keep the workers against competitive pressure from the same industry. Using quartile

strategy the company can decided in what range of quartile they want to be. Most of the

company set them in second quartile of labor market based on salary survey data from

the other company’s compensation plan. Decision to choose the second quartile is a way

to achieve balancing between company’s cost, available funding in corporate and needs to

keep the workers.

2. On wage and salary administration

a. Will you undertake a job evaluation for your company? If not, give your reasons. If so,

what method will you use in evaluating your jobs?

I will undertake a job evaluation in my company, and the method that I will use is banding

method. This procedure takes place when jobs are grouped together by common

characteristic. Characteristic used to group job follow : exempt versus non exempt,

professional versus non professional, union versus non union, key contributor versus non

key contributor, line versus staff, technical versus non technical, value-added versus non

value-added, and classified versus non classified. I choose this method because they have

some advantages such as: quick and an easy procedure, has initial face validity to

employees, allows for organizational flexibility, minimal administration required.

b. What steps will you take to carry out your job evaluation plan?

After the company choose one method for job evaluation (in this case I choose

banding method), human resources division in the company will prepare the system

and all procedure that will support this evaluation, so that they can undertake the job

evaluation.

Compensable factors should represent all of the major aspects of job content. This

compensable factors selected should avoid excessive overlapping or duplication, be

definable and measurable, be easily understood by employees ands administrators,

not cause excessive installation or admin cost, and should be selected with legal

considerations in mind.

Operating managers should be convinced about the techniques and program of the

evaluation. They should be trained in fixing and revising the wages based on job

evaluation.

All the employees should be provided with complete information about job

evaluation techniques and program. All groups and grades of employees should be

covered by the job evaluation

The result of job evaluation must be fair and rational and unbiased to the individuals

being affects

Analysis performance to identify gaps between expected performance and actual

performance. Such as the cause of gaps : organization or work environment-related

causes, system or process-related causes, personal causes.

Select and design an action plan to close the gaps. A plan that meets business needs,

performance needs, training needs, or work environment needs.

Implement the plan

Follow up, as measure and evaluate the impact of the plan on the performance

c. How would you establish the salaries and wages of your human resource?

Establish the salaries and wages of human resources will be related with management

goals to relationship of compensation program include:

Making salary decisions that are based upon appropriate equity and budget

considerations

Encouraging and rewarding excellent performance with merit increases whenever

possible

Providing salary increases within available funding

Motivating employees by demonstrating the link between performance and pay

d. Who among your employees should be on the monthly payroll?

Employees who should be on the monthly payroll is permanent employee. They will be

given salary on time to time consistently without any consideration of total time work.

e. Who should be on the daily wage basis?

Employees who should be on daily wage basis is casual workers. This is common payment

to pay wage based on total time work.

f. Will you hire casual workers? If so, under what conditions?

I prefer to hire permanent worker and make strategy to effectively and efficiently employ

them, so they will give the high productivity to company. Beside that, permanent worker

has more high status than the other type of workers. It’s because of they right and duty to

company more higher. I only hire a temporary or casual employee when it’s become

necessary for business or service during peak business season, to complete an assignment

or project, or to replace the employee, who is on leave.

3. On employee benefits and services

a. What are the duties of an employee benefits and services section?

The duties of an employee benefits and services section are :

Develop and administrate compensation system

Evaluate job appraisal and compensation survey

Develop salary and compensation policy

Adapting in between job performance and compensation

Recommending range level and the increase of salary based on suggestion of HRD

analysis

b. What is the coverage or scope of your benefits and services program?

The coverage or scope benefits and services program includes evaluate job performance

appraisal, which is handled by cooperation with the other section on Human Resources

Department. Another scope of benefits and services program is salary and compensation

system. In this part, working with departments to determine more appropriate and cost

effective structuring of jobs

Part IV

Formulate your personnel policies on the following areas:

1. On employer-employee relations

a. State your philosophy towards your personnel.

My philosophy in human resources is ETHIC. They are Excellence, Teamwork, Humanity,

Integrity and Customer Focus.

Excellence : striving for excellence through integrated and continuous improvements.

Teamwork : developing a work environment with mutual synergy.

Humanity : upholding humanity and religious values.

Integrity : complying with professional ethics, thinking and behaving with high morale.

Customer Focus: understanding and serving the customer needs to make the company

a reliable and profitable partner.

b. What are the duties and responsibilities of your employer-employee relations'section?

Increasing “comfortable” condition for a positive relationship with employees

Cooperate and organize collaboration with labor union in the company field

Supervise “company’s climate” due to labor organization establishment process and

employee’s relationship

Helping on labor contract negotiation

Socializing and giving detail knowledge about labor regulation

Solving problem between employee and employer

c. Will you encourage the organization of a labor union in your company? Give your

reasons for your answer.

I will encourage the organization of labor union in my company because it is one of

persuasive strategy for high productivity. The company can make win-win solution

between employees and employer. That means the company can fulfill the needs from

employee. In fact, satisfying employee can give a good job performance that can increase

productivity of human resources. The high productivity of human resources is the most

important factor to achieving company’s goal.

2. On handling discipline, complaints, and grievances.

On handling discipline, complaints and grievances I will take some policies such as I will make

special section to handle this part in HRD division. This section will become the place for

employee who wants to give their complaints or grievances. In this part this section will have

some responsibilities such as they will help on complaints procedure draft, they can

supervise on complaint rate’s tendency for company, they can help on preparing arbitration

case, also they have responsibility on solving the complaints and grievances.

JOSE RIZAL UNIVERSITY GRADUATE SCHOOL OF EDUCATION

EDUCATION IN DOCTORAL

ADVANCED HUMAN RESOURCES MANAGEMENT

CASE STUDY

An article in the Personnel Administrator described Nucor Corporation as the most productive steel mill in the world. When students in a human resource management class heard that a Nucor mill was located nearby, they thought it would provide an excellent field trip. One of the student leaders, Rebecca, called to arrange the visit. She asked to speak with their human resource manager.

"I'm sorry, we don't have a human resource manager."

"Then could I speak with your personnel director?"

"We don't have a personnel director either."

"Then what do you call that position?"

"I'm sorry, ma'am, but we simply don't have that position."

Assuming they had a special title for the position, Rebecca asked, "Who handles your compensation ane! benefits?"

"Our benefits are managed by our controller but our compensation is directed by a payroll clerk. Would you like to talk with her?"

"Is she also the one who manages the recruiting, hiring, and performance evaluation?"

"No, those activities are performed by our supervisors. Is there something I could help you with?"

Finally, Rebecca realized that they did not have a human resource manager or a personnel department. Eventually, her call was directed to the general manager, who explained how personnel functions were performed at the steel mill. Although Nucor Steel did not have a human resource manager at each mill, they had a manager of personnel services at the corporate headquarters who was responsible for creating personnel policies and programs for the mills.

The general manager explained that 335 employees worked at that location, and all but fifty-five of them were directly involved in producing steel. These fifty-five included the supervisors, the clerical support staff, and six vice presidents. Although none of these people had the title human resource manager, they all performed various human resource functions. Wages, salaries and benefits were distributed by the payroll clerk; health and accident insurance was supervised by an insurance clerk. The supervisors were responsible for most of the remaining personnel functions, including interviewing, hiring, discipline, safety and training. Recruiting was not assigned to anyone,

since they had a long waiting list of job applicants and turnover was negligible.

The supervisors received a salary for fifty-two weeks per year, plus an annual bonus, while production workers received hourly pay plus generous productivity bonuses that were calculated daily and weekly. Everyone also participated in an annual profit- sharing plan. The productivity bonuses generally accounted for over two-thirds of the production workers' pay. Employees who came to work late forfeited their daily production bonus, and if they were absent, they lost their weekly production bonus. Consequently, tardiness and absenteeism were not problems at the mill.

Rebecca asked if it would be possible to bring the student group on a field trip to visit the plant.

"I'm sorry, but we cannot accommodate you. It's not that we dislike visitors or want to be secretive; we simply don't have anyone to show you around. We are in the business of producing steel, not guided tours."

Nucor Steel is god at making steel. The top five steel mills in the United States average 347 tons of steel per employee per year, while the top five integrated steel mills in Japan average 480 tons of steel per employee per year. Nucor produces approximately 950 tons of steel per employee per year.

Questions

1. Most companies with over 300 employees have a human resource manager. How does Nucor

Steel get by without one?

The raising and tightening global competition lately force company to change its strategy due to

establish and increase the company. To gain the goal, the exact roles of each component in the

company is highly needed, especially the role of human resource which is the most valuable asset

of the company. In recent years, several business trends have had a significant impact on the

broad field of HRM. Changes in organizational structure have also influenced the changing face of

human resource management.

In Nucor case, they have already transformed their organization in order to win the competition.

Transformation in the organization can be seen from team work oriented and flexibility of

organization structure. Organization structure is made more flat, it can be easier in span of

control and information flow in order to make knowledge-based and network-based organization

structure. Commonly company whose flat organization structure has only three levels:

counselors, partners, and associates. In Nucor this three levels can be seen from position of vice

presidents until managers (include manager of personnel) as counselors, supervisors and the

clerical support staffs in partners position, and the rest of employee who work at mill location in

associates position.

Nucor has already done their human resources function even they don’t have the personnel

department. The basic role and function from human resources department have already created

and handle by some positions. Also they have already an effort to enhance productivity with their

compensation and benefits system. Nucor can keep handle their employee, and get their

productivity by doing such payroll (hourly and weekly) system and giving some generous bonus

which is accounted by their productivity

2. Since Nucor Steel does not have a human resource manager, and they are so productive, does

this suggest that other companies should eliminate or reduce their human resource

departments?

We have to make adaption human resource system with our business. The key to win global

market competition and survive in business is by creating competitive advantage. In this

globalization era, a company should practice transparency-oriented management, focus on

changes, over and over innovation, and develop collective-leadership (Barbey, 2000). To reach

competitive advantage, practice transparency-oriented management and do the good corporate

governance, so it is needed control system which is includes the whole corporate component,

especially human resources component. Role of human resource as a valuable asset. We have to

build unique HRD for our own special company. Depending on the size, goals, and nature of the

organization, human resource may differ considerably in their responsibilities and in the methods

they use.

As we know that, there are many types of human resources. In a small organization, a human

resources generalist may handle all aspects of human resources work, and thus require an

extensive range of knowledge. The responsibilities of human resources generalists can vary

widely, depending on their employer's needs. In a large corporation, the director of human

resources may supervise several departments, each headed by an experienced manager who

most likely specializes in one human resources activity, such as employment and placement,

compensation and benefits, training and development, or labor relations.

3. What would be the advantages and disadvantages of creating a human resource manager

position at Nucor Steel? What should be the responsibilities of this position?

Advantages of creating a human resource manager position at Nucor Steel is for better create

management system in good corporate governance and corporate social responsibility, in order

to bring the company to face and struggle in global market challenge also improve their

competitive advantage.

Disadvantages of creating a human resource manager position at Nucor Steel is from

effectiveness and efficiency. Creating human resource department means increase of employee.

Increasing of employee means increase of cost.

They responsible to some function of human resource such as:

Managing for employee competence

This issue focuses on improving workers skill to face the threat of technology and organization

changes

Managing workforce diversity

This issue related to how recruit, keep, and motivate employee with different background of

race, religion, gender, ages, language.

Managing for enhanced competitiveness

This issue related to success of company that depends on how effective and efficient

operational and strategic policy, such as improving product and service quality, innovating

new product and service continually and systemic

Managing for globalization

This issue is related with awareness of company to global market condition, so that they can

produce and markets the product in order to increase their competitive advantage