Republic of the Philippines

DON HONORIO VENTURATECHNOLOGICAL STATE

UNIVERSITY
GRADUTE SCHOOL
Bacolor, Pampanga

SUBJECT PERSONNEL DEVELOPMENT

PROFESSOR ESPERANZA F. SALINAS,Ph. D.

STUDENT JOSEPHINE G. HABAN

CHANGES IN PERSONNEL STATUS:

DEMOTION AND SEPARATION

DEMOTION -is the movement of an employee from one job to another of lower

rating, lower employment status, or lower rank.

Demotion need not involve reduction in pay. Some companies demote employees without

reducing their pay.

Demotion is usually initiated by management for any one of the following reasons:

 Reduction in business so that the number of positions at certain levels must be

reduced, or elimination of certain functions requiring a reduction in manpower.

 Failure of the employee either to qualify for work on the occupational level to which

he has been assigned or to meet established job standards

 As a form of disciplinary or punitive action against an employee found guilty of

violating company policies or rules.

 Inability of the employee to meet the requirements of the job due to age, poor health,

or physical disability.

SEPARATION -is the termination of employment as a result of resignation, layoff,

or discharge.

Voluntary separation is better known as resignation or quit.

CAUSES OF VOLUNTARY RESIGNATION

1. Dissatisfaction about wage and working conditions

2. Misunderstanding with supervisors or fellow workers

3. Inconvenient work hours

TERMINATION OF EMPLOYMENT

Various ways of terminating employment under different circumstances and the

compensation of employees who are terminated are covered in the following Articles

in Book Six of the Labor Code as follows:

1. Article 279. Security of tenure.

2. Article 280. Regular and casual employment

3. Article 281. Probationary employment

4. Article 282. Termination by employer.

5. Article 283. Reduction of personnel.

6. Article 284. Disease as a ground for termination

7. Article 285. Termination by employee.

 8. Article 286. When employment not deemed terminated.

9. Article 287. Retirement.

EXIT INTERVIEW

- is an attempt to find out from an employee the actual reasons for his quitting the

present organization.

The exit interview is conducted for the following purposes:

1. To ascertain from company the employee the real reasons for his leaving the

present job

2. To give the employees an indication of his future career in the company

3. To create in him goodwill towards the company.

4. To check whether he has accomplished all papers and clearances to make sure that

he received all that is due him from the SSS and from the company.

LAYOFF OR SUSPENSION OF RELATIONSHIP

- is the suspension of the employment relationship initiated by the employer

through no fault of the employee.

LABOR TURNOVER

-means losing an employee and hiring a new man to fill the position.

REFERENCE TO LABOR TURNOVER

1. If the turnover is due to voluntary resignation

2. If it is due to dismissal

Labor turnover is costly to the company. Among the costs involved are:

1. Cost of hiring

2. Cost of training
 3. Extra labor cost

4. Extra operating costs

5. Loss of goodwill and business

Turnover may be computed according to the type of movement such as:

1. According to total separations

2. According to replacements of workers who leave the company

3. According to separations excluding those which are unavoidable

JOSEPHINE G. HABAN