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Org&mgt - q2 - Mod3 - The Importance of Compensation and Wages
Org&mgt - q2 - Mod3 - The Importance of Compensation and Wages
Org&mgt - q2 - Mod3 - The Importance of Compensation and Wages
Management
Quarter 2 – Module 3:
The importance of compensation, wages and
performance evaluation, appraisal, reward system,
employee relations and movement.
Republic Act 8293, section 176 states that: No copyright shall subsist in any work of
the Government of the Philippines. However, prior approval of the government agency or office
wherein the work is created shall be necessary for exploitation of such work for profit. Such
agency or office may, among other things, impose as a condition the payment of royalties.
Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright holders.
Every effort has been exerted to locate and seek permission to use these materials from their
respective copyright owners. The publisher and authors do not represent nor claim ownership
over them.
Team Leaders:
School Head : Carlito A. Pontillas
LRMDS Coordinator : Annie Rhose C. Rosales
This module was collaboratively designed, developed and reviewed by educators both
from public and private institutions to assist you, the teacher or facilitator in helping
the learners meet the standards set by the K to 12 Curriculum while overcoming
their personal, social, and economic constraints in schooling.
This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration their
needs and circumstances.
In addition to the material in the main text, you will also see this box in the body of
the module:
As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to manage
their own learning. Furthermore, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:
Welcome to the General Physics - Grade11 Alternative Delivery Mode (ADM) Module
on The importance of compensation, wages and performance evaluation, appraisal,
reward system, employee relations and movement!
The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a learner
is capable and empowered to successfully achieve the relevant competencies and
skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at your own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.
1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.
We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!
What I Need to Know
This module is designed and created to help you understand the importance
of compensation, wages and performance evaluation, appraisal, reward system,
employee relations and movement.
Read the statement below. Analyze the situation and underline the words or
phrase that you think can identify themselves to the organization.
Julie and Jericho convince their parents that they should put up a small
carenderia since their mother loves to cook and her father can finance the business
since her father is a manager YZX Corporation.
Jericho’s task is for the salary of their employees, He wanted to know more
about compensation/wages and performance evaluation, so he always asks for his
teacher about the bases for compensation and after class he and her sister will study
in the library and they are brainstorming about the types of compensation.
Julie wanted their carenderia to become a mini resto, she always thinks of
ways on how to be a good employer at the same time a studious student and a
respectful daughter. She believes that whatever comes their way, they will find a
way to become successful.
Jericho a simple guy that reads a lot about business, He prioritize his study,
their carenderia and his family.
Lesson Training and Development,
Compensation/Wages and
1 Performance Evaluation; and
Employee Relations
Both training and development are essential to achieve success in today’s
organizations. In order to have an edge over their rival organizations, managers must
see to it that their human resources have the necessary knowledge and expertise;
training and development work toward this end by providing continuous learning
activities and opportunities. The typical scope of training covers the following
procedures:
` Task analysis involves, for example, a checking of job requirements to find out
if all these are being done to meet company goals. If not this may be a go-signal to
train or retrain personnel.
Massed v. distributed learning - learning by giving training through either few, long
hours of training (massed) or series of short hours of training (distributed).
Individual differences – training programs that take into account and accommodate
the individual differences of the trainees in order to facilitate each person’s style and
rate of learning.
This phase involves stating the instructional objectives that describe the
knowledge, skills and attitudes that have to be acquired or enhanced to be able to
perform well. In short, these are performance-centered objectives that must be
aligned with the firm’s objectives. Another thing to be considered is trainee readiness
and motivation. This refers to the trainees’ background knowledge and experience,
so that the training to be given to them will not go to waste. Different learning
principles, like using modeling, feedback and reinforcement, massed vs. distributed
learning and others influence the training design’s effectiveness.
The positive effects of the training program may be seen by assessing the
participants’ reactions, their acquired learnings and their behavior after completing
the said training, the effects of training may also be reflected by measuring the return
on investment (ROI) or through the benefits reaped by the organization, which were
about by their training investment.
Employee Development
TYPES OF COMPENSATION
Employees generally feel that their pay must be commensurate to the effort
exerted in the performance of their job. In other words, pay equity is achieved when
the pay given to them by their employers is equal to the value of the job performed;
thus, this motivates them to perform well and to do their jobs to the best of their
abilities.
Hourly basis – when pay is computed according to the number of work hours
rendered.
Daily basis – when pay is computed according to the number of work days
rendered.
Weekly basis – when pay is computed according to the number of work weeks
rendered.
Monthly basis - when pay is computed according to the number of work
months rendered.
External factors, on the other hand, include local and global market
conditions, labor supply, area/regional wage rates, cost of living, collective
bargaining agreements, and national and international laws among others.
Human resource planning may also make use of it for recruitment and
selection of potential employees.
EMPLOYEE RELATIONS
Employee relations applies to all phases of work activities in organizations,
and managers, to be effective, must be able to encourage good employee relations
among all human resources under his or her care. Employees/workers are social
beings who need connections or relations with other beings – other
employees/workers – who are capable of giving them social support as they carry out
their tasks in the organization where all of them belong. Talking to a coworker,
perceived to be a friend or working on a delicate task with others can be comforting
during times of stress, fear or loneliness, when these negative feelings are overcome,
employees will be able to work better toward the achievement of their organization’s
goals.
EFFECTIVE EMPLOYER RELATIONS AND SOCIAL SUPPORT
Social support is the sum of perceived assistance or benefits that may result
from effective social employee relationships. The quantity and quality of an
employee’s relationship with others determine social support (esteem support,
informational support or financial support). In short, social support and effective
employee relations must always go together like “a horse and carriage,” were one
would be useless without the other. Therefore, without social support, effective
employee relations are not possible; and without effective social employee
relationships, social support likewise is not possible.
THREE TYPES OF EMPLOYEES
1. ENGAGED – Employees who work with passion and feel a deep connection
with their company, they drive innovation and move the organization forward.
2. NOT ENGAGED – Employees who are essentially “checked out”, they put
time, but not energy or passion into their work.
3. ACTIVELY DISENGAGED – Employees who are not only unhappy at work,
but also act out their unhappiness, they undermine what their engaged coworkers
accomplish.
EMPLOYEE MOVEMENTS
A labor union is a formal union of employees/workers that deals with
employers, representing workers in their pursuit of justice and fairness and in their
fight for their collective or common interests.
Employers or workers unionize because of financial needs, unfair
management practices or social and leadership concerns.
c. Social and leadership concerns – some join for the satisfaction of their need
for affiliation with a group and for the prestige associated with coworkers’ recognition
of one’s leadership qualities.
Terry Moser, an expert union organizer, was credited by Snell and Bob lander
(2011) for the following union-organizing steps:
When the sufficient number of votes is garnered, the NLRC certifies the union
as the legal bargaining representative of the employees. Contract negotiations or
collective bargaining agreement (CBA) negotiation follow the certification. The CBA
process involves the following procedures.
c. Conduct negotiations
d. Formalize agreement
GRIEVANCE PROCEDURE
REWARDS SYSTEM
Organization offer competitive rewards systems to attract knowledgeable and
skilled people and to keep them motivated and satisfied once they are employed in
their firm. Further, rewards promote personal growth and development and present
fast employee turnover. Managements offer different types of rewards.
Monetary reward- rewards which pertain to money, finance or currency.
e. stock option – are plans that grant employees the right to buy a specific
number of shares of the organization’s stock at a guaranteed price during a selected
period of time.
_______2. The grievance procedure is a formal procedure that authorizes the union
to represent its members in processing a grievance or complaint.
Step 1
Step 2
Step 3
Step 4
Step 5
E
What is It
TRAINING – refers to learning given by organizations to its employees that
concentrates on short-term job performance and acquisition or improvement of job-
related skills.
REWARD – Gift, prize or recompense for merit, service or achievement, which may
have a motivating effect on the employee.
MODIFIED TRUE OR FALSE. If the statement is correct, write True. If not, underline
the word which makes the statement incorrect, then write the correct answer on the
blanks provided before each number.
1. Benefits refers to the Gift, prize or recompense for merit, service or achievement,
which may have a motivating effect on the employee.
2. Not Engaged means - Employees who work with passion and feel a deep
connection with their company, they drive innovation and move the organization
forward.
4. Assessment- performance evaluation that requires the rater to choose from tow
statements purposely designed to distinguish between positive or negative
performance; for example: works seriously –works fast; shows leadership – has
initiative.
5. Weekly basis - when pay is computed according to the number of work months
rendered.
What I Have Learned
FILL IN the blank with WORD(S) that will complete the statements below.
GRIEVANCE PROCEDURE
Rearrange the jumbled letters to form the correct word(s) that correspond to the
meaning of the statement for each number. Write your answer on the space provided
after each item.
DRAWER
1. Gift, prize or recompense for merit, service or achievement, which may have a
motivating effect on the employee.
TRIDEC PENCOMNATIONS
2. include workers’ salaries, incentive pays, bonuses and commissions.
CENTIIVSE
3. rewards that are based upon a pay-for-performance philosophy; it establishes a
baseline performance level that employees or groups of employees must reach in
order to be given such reward r payment; examples: bonuses, merit pay, sales
incentives etc.
D S M T H E O T R T I A
4. Performance evaluation method designed to find out if the employee possesses
important work characteristics such as conscientiousness, creativity, emotional
stability and others.
L L G N M O E D I
5. The use of personal behavior to demonstrate the desired behavior or method to
be learned.
Assessment
IDENTIFICATION: Write the correct answer on the space provided before the number.
___________5. Training programs that take into account and accommodate the
individual differences of the trainees in order to facilitate each person’s style and rate
of learning.
___________6. Employees who are not only unhappy at work, but also act out their
unhappiness, they undermine what their engaged coworkers accomplish.
___________8. It is the sum of perceived assistance or benefits that may result from
effective social employee relationships.
___________9. Some join for the satisfaction of their need for affiliation with a group
and for the prestige associated with coworkers’ recognition of one’s leadership
qualities.
___________10. These are fulfilled through appraisal/evaluation programs that
provide information that may be used as basis for compensation decisions,
promotions, transfers and termination
Additional Activities
WORD POOL Complete the statements using the correct words given in the box.
Write your answer on the blank provided for every number.
♦ Grievance procedure
♦ actively disengaged
♦ indirect compensation
♦ training
♦ award
♦ nonfinancial compensation
♦staffing
♦ stock option
♦ nonmonetary reward
♦ feedback and reinforcement
♦development
_______________5. Employees who are not only unhappy at work, but also act out
their unhappiness, they undermine what their engaged coworkers accomplish.
_______________6. Refers to learning given by organizations to its employees that
concentrates on short-term job performance and acquisition or improvement of job-
related skills.
_______________7. Are plans that grant employees the right to buy a specific number
of shares of the organization’s stock at a guaranteed price during a selected period
of time.
_______________8. Rewards which do not pertain to money, finance or currency; refer
to intrinsic, rewards that are self-granted and which have a positive psychological
effect the employee who receives them.