Chapter 5: ​Rewards Management 

Objective  based  on  the  task  &  the 

  skills/knowledge of the employee 
It  involves  a  reward  system  containing 
compensation  and  benefits  with  the  intention  of  Motivating  boosting morale & performance 
improving performance.  
  Productivity-  ensures  happy  employees, 
Total  Rewards  Approach/  Model​-  considers  all  providing  resulting in greater productivity 
aspects  of  a  reward;  tangible  and  intangible 
elements  Equitable  fair to all 
Tangible  Rewards  -  are  monetary  in  nature  and  are 
more  enticing  than  intangible  rewards,  but  it  can  be  Non-  free from prejudices 
easily copied by competitors  discriminating 
Intangible  Rewards  ​-  enhances  tangible aspects and 
inspires loyalty while giving satisfaction  Sustaining  provides  for  the  employee’s  needs 
  and  is  concerned  with  their 
REMUNERATION  welfare.  It  should  also  sustain  the 
organization’s goals & objectives 
This  is  the  computation  of compensation & benefits, 
which is the heart of the HR dept’s responsibilities.  Adequate Legal  adheres to the law 
Compensation  -  tangible  equivalent of work and the  Compliance 
primary reason why employees look for a job 
Direct Compensation - ​ monetary rewards  Time-bound  should be given on time 
Indirect  Compensation - benefits such as insurance, 
days-off, outings, etc.  Inducing  induce employees to stay 
  Loyalty 
Common Terminologies 
Base Pay  fixed  and  largest component of the  Obligatory  companies  have  the  obligation  to 
compensation  package.  Factors  pay  their  employees  well,  as 
that  determine  the  base  pay  are  indicated  by  the  employment 
job-based,  skill/competency-based,  contract 
market-based​,  or  a  combination  of 
the three.   No Insecurity  The  pay  should  make  the 
employee  feel  secure  and  satisfy 
Incentive  incentives  or  bonuses  are  given  to  their basic needs 
Compensation  those who achieve objectives   
External Factors​ (​ influencing the compensation plans) 
Allowances  temporary  add-ons  to  the  basic  1. Demand and Supply of Labor 
pay  ● Highly specialized jobs = higher pay 
● Fewer skills = lower salaries 
Overtime Pay  for  work  beyond  the  normal  work 
hours  2. Prevailing Economic Conditions 
If  it’s  good,  there  will  be  satisfying  & 
Retirement  for  those  have reached compulsory  competitive wages. 
Benefits  retirement age (65 years old)  ● High  compensation  packages  may  be 
provided  to  keep  up  with  the  industry. 
Equity  for  senior executives in the from of  (TelCo, Pharmaceuticals, Hotels) 
Compensation  stock options  3. Government Intervention in Compensation 
● Regulations  such  as  price  floors  (minimum 
Perquisites  for  members  of  senior  wage) 
management  at  the  company’s   
expense  (travel,  accommodations,  Internal  Factors  (influencing  the  compensation 
dinner meetings, etc.)  plans) 
  1. Budget 
  2. Employee Motivation 
Criteria for an Effective Compensation Plan  3. Employee Productivity 
● An  effective  way to increase productivity is to 
Cost  based  on  the  ability  of  the  provide a good compensation package 
Containment  company to pay 
 
 
Compensation Strategies Used by Firms  5. Special Surveys 
1. Minimum / Average Level   ★ Conducted  by  &  focused  on  a  particular 
Best  for  small/medium  firms  who  can  only  organization 
afford minimum wage  ★ Much time and effort is needed 
2. Above Average Pay   
Firms  that  believe  that  money  is  a  good  Pay and Grade Structures 
motivator  This  enables  the  creation  of  a  framework  that 
3. Competitive & Comparable Pay  determines the levels of compensation 
Involves  the  use  of  salary  surveys  and  ➔ Grade  Structure  -  determines  the  grade 
studies  hierarchy and job levels depending on difficulty 
  ➔ Pay Structure​ - different pay levels for jobs 
REWARDS  ➔ A  grade  structure  becomes a pay structure when pay 
This  entails  deciding  on  compensations  and  ranges are attached 
methods of payments   
  Developing Pay and Grade Structures 
Job Evaluation  Fixed Pay 
➔ The  process  wherein  the  worth/value  of  a  job  is  ➔ each grade is associated with a single pay 
assessed  ➔ Is simple, transparent, and unbiased 
➔ Is usually done through employee interviews  ➔ Can  result  in  demotivation  due  to  lack  of  salary 
➔ Factors  considered  to  determine the worth/value  progression 
of  a  job:  ​skills  required,  responsibilities  of  the  job,  Salary Scales 
working  conditions,  critical  decision-making  ➔ consists  of  incremental  pay  points  and 
functions of the job.  progression 
  ➔ Recognizes  additional  skills  and  motivates 
Methods of Job Evaluation  employees 
1. Ranking  ➔ Aren’t transparent 
● Rank the jobs from simplest to most difficult   
2. Grading System  If  salary  scales  are  chosen,  one  must  choose 
● Use a grading system according to the level of  between:  
job difficulty  ➔ Broadbands​ - more flexible with wide pay bands 
3. Point System  ➔ Narrowbands  -  provide  comparison  between 
● Elements  of  a  job  are  given  specific  points.  jobs,  thrive  on  expertise  &  experience,  and  are 
How much of each factor is required per job is  used for incremental progression 
also identified.   
● Is trusted more than ranking; more objective  Jobs  to  Grades  -  job  evaluation points are translated 
4. Factor System  into job grades 
● Based  on  ​skills,  degree  of  responsibility,  Broadbanding​ -uses very wide grade ranges 
physical  effort,  mental  effort,  and  working   
conditions  Contingent Pay 
  This  is  a  pay  scheme on top of the base rate linked to 
Market  Rate  Analysis  -  is  popularly  used  to  performance,  competency,  contribution,  skills​.  It can be 
determine job rates.  applied to individual & group pay 
Sources of Market Rate Data   
1. General Published Surveys  Individual Pay 
★ Are readily accessible & available  1. Pay-for-performance Scheme 
★ Are  subdivided  by  location  and  have  a  wide  ● Good performance is rewarded with a bonus 
coverage  ● May  be  subjective;  should  rely  on  quality  and  not 
★ Is consistent, allowing trend analysis  quantity 
2. Online Data  2. Pay-for-competency Scheme 
● Encourages competence enhancement 
★ Limited, but easy to access and purchase 
● Is difficult to assess and ignores output levels 
3. Industrial Occupational Surveys  3. Pay-for-contribution Scheme 
★ Done  by  job  organizations  and  trade  ● A combination of competence and output levels 
associations  ● May be difficult to manage 
★ Better & more reliable than general surveys  4. Pay-for-skills Scheme 
4. Consultant Databases  ● Encourages employees to learn more skills 
★ Is  available  upon  purchase,  but  is  expensive  ● May  be  expensive  due  to  paying  for  a  skill  that  is 
to obtain  unnecessary/ unused  
5. Pay for service  ◆ Merit Pay ​(for outstanding performance) 
● Paid yearly based on continued service  Merit Pay​ - one-time payment 
●
  Merit  Increase  -  addition  to 
●
Group Pay  salary 
1. Team-based  Pay  -  given  to  groups  who  do  ◆ Piece Rate Pay​ (paid per piece) 
similar/  related  jobs  and  measured  in  terms  of  ◆ Commission​ (on achieved sales quota) 
achievement of a quota  ◆ Group  Incentive  ​(given  to  a  team  that 
2. Organization-wide  Pay  -  based  on  achievement  meets a sales target) 
of performance/goals. Has two types:  4. Payments based on Skills 
a. Gain-sharing   ➔ Isn’t popular in the Philippines 
Based  on  a  bonus  plan where employees can share  5. Payments based on Knowledge/ Credentials 
in  the  financial  gains  of  the  company  (sales  ➔ Continuous  learning is a motivation to attend 
bonus)  seminars  and  conferences,  and  this  also 
b. Profit-sharing  improves one’s ranking 
Given in the form of cash/shares of stock  6. Executive Payments 
  ➔ For CEOs, chairpersons, or the BOD 
Compensation for Special Groups  7. Special Payments 
1. Directors/ Executives Pay  a. Overtime  Pay  ​is  based  on  additional  hours 
They  receive  basic  salary,  incentives  &  bonuses  worked, and doesn’t include COLA 
(% of basic salary)​, and stock options  ● +25% of the hourly rate in excess of 8 hours 
  ● +30%  if  excess  is  on  a  rest  day/  special  day/ 
2. Sales Staff Pay​ (4 basic schemes)  regular holiday 
a. Salary only   
b. Salary + commission​ (​ % of sales volume)  b. Holiday  Pay  ​is  payment  for  an  unworked 
regular  holiday  as  long  as they are present on the 
c. Salary  +  bonus  ​(given  when  a  quota/ objective 
workday before the holiday. 
is met)  ● 200%  of  daily  rate  if  one  works  on  a  regular 
d. Commission  only  ​(when  employee  isn’t  holiday 
involved in non-selling activities)  c. Premium  Pay  ​is  given  if  one  works  during  rest 
e. Other  non-cash  rewards  ​(transpo  days and special holidays 
allowances, etc.)  ● +30%  of  the  basic  pay  if  either  one,  +50%  if 
3. Manual Workers/ Laborers Pay  both at the same time 
Payments  are  made  through  time  rates/  flat  d. Night  Differential  Payments  is  an  additional 
rates, or also output produced  10%  of  the  basic  rate  for  work  between  10PM  to 
  6AM 
Common Modes of Payment  e. Service  Charges  ​:85%  of  it  is  given  to 
1. Payment for time worked  employees,  15%  goes  to  management.  This is the 
➔ Wages​ are paid on an hourly rate  same with tips 
➔ Salary​ is paid on a monthly basis  f. Severance  /  Separation  Pay  ​is  provided  to 
those terminated with authorized cause 
➔ Monthly Paid​ are paid each day of a month 
● You  get  half  a  month’s  salary  per  year  of 
➔ Daily  paid  are  paid  on  the  basis  of  the  days  service  if  the  cause is: ​retrenchment to prevent 
they actually worked  further  losses,  company  closure,  or  employee 
➔ Payment  for  the  time  worked  are  adjusted  illness which prevents you to work. 
based on:  ● You  get  a month’s salary per year of service if 
◆ Across-the-board  increase  (provided  the  cause  is:  ​imposition  of  labor-saving 
to  all  employees  with  the  same  rate,  devices,  duplicate  functions,  abolition  of  a 
regardless of rank)  department without possible transfer. 
◆ Merit increases ​(on performance)  g. Retirement  Pay  ​is  given  to  those 60 to 65 years 
◆ Cost-of-Living  Allowance  (COLA)  ​(to  old  as  long  as  they  had  5  years  of  continuous 
cope with the standard of living)  service 
● You  get  half  a  month’s  salary  per  year  of 
◆ Seniority  Pay  ​(based  on length of service 
service,  but  overall  at  least equivalent to 22.5 
in the company)  days for every year of service. 
2. Flat  Rates  /  Collective  Bargaining  Agreement  h. 13th  Month  Pay  ​is  given before Dec. 24 to those 
(CBA)-negotiated Rates  who  have  worked  for  at  least  a  month  in  a 
➔ common to unionized firms  calendar year 
➔ Doesn’t consider skills & seniority   
3. Compensation through Incentives   
➔ Is  based  on  output.  Most  popular  forms   
include:   
RETENTION 
Vacation Leaves  Group Life Insurance 
Non-financial  benefits  are  given  to  motivate  and 
Unused days are forfeited  Program 
promote loyalty. The objectives are:  and not carried over to the  Benefits are given to 
1. Attract  &  retain  highly-skilled/  performing  next year  beneficiaries in the case of 
employees  a member’s death 
2. Promote commitment and loyalty 
3. Fulfill the employees’ needs  Bonuses  Christmas Party and 
  Package 
Government-mandated Benefits 
➔ SSS  /  GSIS  (Government  Service  Insurance  Cash Bonuses  Emergency Loan 
System) 
◆ SSS  is  for  private  firms,  GSIS  is  for  government  Free Uniform or  Executive Perquisites 
employees  Clothing Allowance  Also called ​executive perks​, 
◆ Both  employee  &  employer  pay.  The  former  is  given to top management 
through  salary  deduction, while the latter usually 
pays higher   
➔ Employees’ Compensation Program  Chapter 6: E
​ mployee Relations and Discipline 
◆ Given  in  case  of  work-related  injury,  disability,   
sickness, or death  Employee Relations​ - balancing employee 
➔ Pag-IBIG Benefits  satisfaction and productivity 
◆ Benefits  include  ​housing  & salary loans, retirement  Policies​ - labor relations 
funds, and total disability benefits  Practices​ - unions and CBAs 
➔ PhilHealth Program  Prevention​ - employee violations and disciplinary 
◆ Given  to  all  SSS  members  and  their  dependents,  actions 
providing  financial  assistance  for  in  and 
out-patient care   
➔ Service Incentive Leave  Four Essential Schools of Thought: 
◆ All  except  gov’t  employees,  managerial  1. Mainstream Economics 
employees,  and  house  helpers  get  5  days  of  ● Emphasizes free market competition 
service  incentive  leave  with  pay  as  long  as  they  ● Workers are free to resign 
have provided at least 1 year of service.  ● Unions  restrict  the  supply  of  labor  and  threaten 
◆ Unused credits may be converted to cash  strikes,  which  slow  productivity  and  output 
➔ Maternity Leave  levels 
◆ For all SSS female members (married or not)  2. Human Resources Management 
◆ 60 days for normal delivery/ miscarriage  ● Personnel  management;  better  management  of 
◆ 78 days for caesarean delivery  human  resources  and  effective  handling  of 
➔ Paternity Leave  employees 
◆ For all married male employees in private firms  ● If  companies  have  effective  HRM  programs, 
◆ Granted to the first 4 deliveries of the lawful wife  workers will not seek unions 
◆ 7 days after the wife’s delivery  3. Industrial Relations 
➔ Special Leave for Women  ● The  great  bargaining  power  of  employers  breed 
◆ For  female  employees  with  gynecological  inequality  and  is  the  primary  cause  of  labor 
disorders that involve surgical procedures  problems 
◆ 2 months leave with pay  ● Employees  can  acquire  their  own  power  by 
  forming independent labor unions and collective 
Voluntary Benefits  bargaining 
4. Marxis Industrial Relations 
Hospitalization  Sick Leaves  ● Opposes mainstream economics 
  ● Perpetuates  strong  militant  unions  to  obtain 
better working conditions 
Emergency Leaves  Summer Outings   
POLICIES 
Sports Fest  Rice Subsidy  Covers  rules,  rights,  and  procedures  to  be  followed 
Providing a monthly sack  to maintain harmony 
of rice   
Employee Relations Framework 
Meal Subsidy  Shuttle Service  This  constitutes  the  main  task of employee relations 
personnel. The following elements must be present: 
Stock Options  Profit-sharing Scheme   
For those who’ve rendered  Portion of the profits are   
over 10 years of service  divided, regardless of rank   
1. Drive for Commitment ​(to gain loyalty)  ➔ Terms  and  conditions  of  employment  -  Policies 
2. Harmonization  of  Terms  and  Conditions  of  on  how  this  will  be  governed  by  CBAs  should  be 
Employment  ​(efforts  of  employees  &  conditions  of  decided 
employment are united)  ➔ Employee  handbook  -  company  policies  should 
3. Emphasis on Mutuality ​(teamwork)  be stated and explained 
4. Policies  and  Practices  for  Communication   
(maintaining  a  harmonious  relationship  centers  on  Employee Handbook 
communication; it is the solution)  ➔ This  guides  employees  on  the  vision,  mission, 
  values,  philosophy,  history, policies, disciplinary 
Basic Rights of Employees  offenses, sanctions, and benefits 
1. Equal opportunities for all  ➔ It  includes  the  key  officers,  management 
2. Security  of  tenure  ​-  can’t  be  dismissed  without  standards and expectations 
due process 
➔ Employees  are  expected  to  sign  the 
3. Work  days  and  hours  ​-  8  hours  is  the  normal 
acknowledgement  portion  to  show  that  they’ve 
number,  and  they must be paid for all the hours they 
worked. In excess, they are entitled to overtime pay  read it 
4. Wage and wage-related benefits   
5. Safe working conditions  Employee Voice 
6. Rest  days  and  holidays  ​-  Rest  day  is at least a day  This  is  how  much  “say”  employees  have.  Its 
off  from  work.  If  they  work,  they’re  entitled  to  coverage  is  a  whole  variety  of  processes  and 
holiday pay on these days  structures  enabling  and  empowering  employees  to 
7. Leave  ​-  three  types:  service  incentive,  paternity,  contribute  to  the  decision-making  power  of  the 
and maternity  firm. The forms include: 
8. Right  to  self-organization  and  collective  1. Little Voice ​- little/ minimal say 
bargaining  ​-  right  to  join  any  legit  workers  2. Some ​- employees can give suggestions 
association, free from employer interference  3. Two way - ​ employees can be consulted  
9. Workers’  participation  and  tripartism  ​-  4. Two  way  plus  ​- they are consulted in the making 
Tripartism  is  the  cooperation  of  the  employees,  & implementation of a decision 
employers, and government  5. A lot -​ they have the right to delay a decision 
10. Social Legislation ​- social security benefits  6. Veto power - ​ they have the power to reject/refuse 
 
7. Substantial  ​-  they  have  an  equal  “say”  as 
Basic Rights of Employees 
management 
1. Closure  of  business  ​-  they can close when needed,   
such as when bankrupt  PRACTICES 
2. Transfer of workers - ​ from one dept to another  Labor  Organization  -  any  union/  association  for 
3. Hire  and  fire  ​-  only  when  it  arises  from  just/  collective  bargaining  of  employment  conditions. 
authorized cause, meaning done after due process 
Kinds include: 
4. Impose employee discipline 
● Independent  Labor  Union  - ​   w/o  affiliation  to  a 
5. Issue rules and regulations 
national federation 
6. Management  prerogatives  ​-  there's  leeway  to  ● Legitimate  Labor  Organization  ​-  registered 
administer company affairs to maximize profits  with the Bureau of Labor Relations 
 
● Company  Union  ​-  is  unlawful  since  it  is 
Employee Policies 
manipulated by the employer 
The  objective  of  this  is  to  build  a  positive  workforce  ● Federation  and  National  Union  ​-  a  group  of 
and  conducive  workplace  wherein  all  employees  unions in an industry or area 
maintain  good  relations  with  each  other  with  top  ● Trade  Associations  ​-  formed  by  self-employed 
management. They are covered by:  individuals  and  those  without  definite  employers 
➔ Union  Recognition  - the company decides which  or company affiliations 
union represents the employees   
➔ Collective  Bargaining  -  the  company  should  Individuals Eligible to Join/Form Labor Orgs 
formulate policies of the coverage of CBAs  1. Rank-and-file employees 
➔ Procedures  on  grievance  handling  and  2. Supervisory  employees  with their own union, 
discipline  -  these  should  be  formulated  and  not with rank-and-file unions 
implemented  3. Government employees in civil service 
➔ Communication  policies  -  there  should  be  4. Employees of government corporations 
policies  that  allow  employees  to  voice  out  their  5. Aliens  in  the  PH  with  valid  employment 
concerns and grievances  permits,  if  they  are  nationals  of  a  country 
that  has  the  same  privileges,  can  join/assist 
but not form labor organizations 
Individuals Not Eligible to Join/Form Labor Orgs  Forms of Strike 
1. Managerial  employees  ​-  the  nature  of  their  1. Legal  
work involves policy-making and implementation  2. Illegal 
2. Subversive  Organizations  and  their  members  3. Economic  ​-  to  compel  employers  to  provide 
-those engaged in rebellious seditious activities  wages  and  economic  concessions  not  required  by 
3. Employees  of  cooperatives  ​-  since  they’re  also  law 
members,  they’re  part-owners  and  cannot  4. Unfair  Labor  Practice  Strike  ​-  include 
bargain.  However,  this  doesn’t  apply  if  the  violations of the CBA and union busting 
employee is not a member/ co-owner  5. Slow-down  Strike  ​-  not  abandoning,  but 
4. Employees  exempted  from  being  union  reducing their work output 
members  -
​   those who have access to confidential  6. Wildcat  Strike ​- without formal filing of required 
information  that  may  be  advantageous  to  the  notice and majority approval 
labor  organization  (accounting, radio & telegraph,  7. Sit-down  Strike  ​-  stops  working,  but  doesn’t 
secretarial personnel)  leave work areas 
   
Collective  Bargaining  -  the  negotiation  of  certain  Settlement  of disputes - duty of labor conciliators to 
T&C’s  to  enable  workers  to  bargain  more  call  the  concerned  parties  after  48  hours 
persuasively  on  the  improvement  of  their  working  immediately upon valid notice for a strike/ lockout 
conditions. Industrial peace & harmony is achieved if  Picketing  -  protest  outside  the  workplace  that 
it is done through friendly and fair dialogue  should  be  done  without  intimidation,  violence,  or 
Collective  Bargaining  Agreements  (CBAs)  -  have  a  coercion 
5-year  effectivity.  Other  provisions  must  be  National  Labor  Relations  Commission  -  has  the 
renegotiated  within  3  years  of  execution,  and  power  to  issue  temporary  injunctions/  restraining 
enacted  within  6  months  from  the  date  of  expiry.  orders,  but  cannot  prevent  peaceful  picketing.  The 
These will be retroactive immediately after said date.  President/  Secretary  of  Labor  can  give 
Deadlock  -  when  the  contents  of  the  provisions  return-to-work  orders  when  the  work  is  of national 
cannot be agreed on  interest. 
Unfair  Labor  Practice  (ULP)  -  violates  the  rights  of   
the employees to self-organization  PREVENTION 
Union  Busting  -  a  form  of  ULP  wherein  militant  The  company’s  ability  to  avert  anything  that  could 
union leaders are illegally dismissed   tarnish  their  employee  relationship,  and  to  impose 
  discipline among its employees 
A strike or lockout is valid on the grounds of bargaining   
deadlock, ULP, and union busting.   Employee Code of Conduct 
  This  defines  acceptable  behavior,  and  an  employee 
Strike  -  temporary  employee  work  stoppage,  which  must  sign  their  acceptance  as  a  legal  agreement 
includes  sit-down  strikes,  slow-down  strikes,  and  between  them  and  the  company.  Common  contents 
mass leaves  include: 
Lockout  -  employer’s  call to replace union members  1. Prohibition of illegal activities 
with non-union employees  2. Prohibition of discrimination 
  3. Sexual harassment 
Requirements for a strike/ lockout  4. Confidentiality expectations 
5. Dress code and appearance 
1. Notice  must  be  filed  with  DOLE  at  least  15  days 
6. Punctuality and absenteeism 
before  the  staging  of  a  strike/lockout,  and  30  7. Procedures for sick and emergency leaves 
days in the case of a bargaining deadlock  8. Sanctions for each violation 
2. Strike should be supported by majority members.   
Lockout  should  be  supported  by  a  majority  of  Objectives include: 
management/ BOD via a secret meeting  1. To maintain peace & harmony 
3. Vote  should  be  reported  to  DOLE  at  least  7  days  2. To avoid litigation and lawsuits 
before the intended event  3. To promote teamwork & transparency 
4. In  case  of  union  busting,  the  union  may  take   
action immediately   
5. Non-compliance will render it illegal   
   
   
   
   
   
Employee Discipline  Three Types of Grievances 
It  enables  employees  to  conform  to  standards,  and  1. Factual​ -
​ based on facts or reality 
corrects/  punishes  them  when  rules  are  violated.  2. Imaginary - ​ caused by misinterpretation of a rule 
Common violations include:  3. Disguised  ​-  caused  be  pressure  from  the 
● Personal  habits  of  employees  ​-  those  that may  employee’s  family  and  friends,  or  from  a  heavy 
affect productivity, like tardiness & intoxication  heart. (see example from book) 
● Incompetence  ​-  non-performance  of  assigned   
duties   
● Misconduct  -  fraud,  deceit,  sleeping  on  duty,  Classification of Grievances and Their Causes 
sexual harassment  Refer to Table 9, p.181 
   
Positive  Discipline  -  encourages  participation  by  Grievance Handling in the Union 
allowing  employees  to  willingly  conform.  It  applies  In  CBAs,  a  problem is “grievable” if some provisions 
reason  in  the  achievement  of  company  objectives  are  not  implemented.  Grievance  Handling  is  the 
and allows self-expression.   process of solving conflicts between a union member 
The approach is as follows:  and the management. They include the following: 
1. Identify the problem - ​ root cause  ● CBA violations 
2. Analyze the severity of the problem  ● Violations  of  labor  laws  &  occupational 
3. Discuss  the  problem  ​-  including  how  it  affects  the  health and safety standards 
employee and the solution  ● Unjust labor practices 
4. Document the discussion - ​ for easy follow-up  ● Violations of union policies 
5. Follow up on the correction - ​ after an agreed time   
  General Grievance Handling Procedure 
Negative  Discipline  -  focuses  on  punishment  1. Interview - ​ of those involved 
(demotion,  suspension,  termination)  and  is  used  in  2. Investigation ​- interrogation of witnesses 
severe forms of employee violation  3. Research and Documentation - ​ legal research 
  4. Counseling 
The Disciplinary Process  5. Drafting  of  necessary papers ​- position papers, 
1. Identify the violator  testimonies, and formal complaints 
2. Identify the violation  6. Hearing 
3. Consult  the  head/supervisor  and  make  an  7. Settlement  ​-  whatever  agreed  upon  must  be 
initial assessment  documented  in  the  minutes  of  the  meeting.  If  not 
4. Set a meeting with the head/supervisor  settled, a third-party conciliation is done 
5. Set a meeting with the above & the employee   
6. Accord the employee due process  Conciliation  -  a  mild  form  of  intervention  by  a 
7. Plan  and  discuss  the  corrective  action  with  neutral  third  party  wherein  the conciliator keeps the 
the head/supervisor  discussions calm and going 
  Mediation  -  mild  intervention  by  a  neutral  third 
Due  Process  of  Law  -  encompasses  all  other  party  wherein  the  mediator  starts  advising  and 
employee  rights,  ensuring  a  fair  hearing  regarding  offering solutions 
their violation or a management decision. It provides   
an  objective  investigation  of  the  case,  and  allows  Progressive  Discipline  -  the  most  popular  approach 
management to impose disciplinary action.  in implementing discipline, which promotes fairness 
  in handling cases and preventing lawsuits. Steps are: 
Employee  Grievances  -  any  discontent,  whether  1. Oral reprimand 
expressed  or  not,  valid  or  not,  arising  out  of  2. Written warning 
anything  connected  to  the  company  which  the  3. Final written warning or Suspension 
employee finds unfair  4. Termination 
Dissatisfaction  -  mental  or  emotional  disturbance   
which may or may not be expressed  Hot-Stove  Rule  -  immediate,  impersonal,  and 
Complaint  -  spoken or written dissatisfaction that is  consistent disciplinary actions. Characteristics are: 
brought to a supervisor’s attention  1. Immediate 
Grievance  -  formally  presented  to  management  or a  2. Consistent 
union official  3. Impersonal 
  4. Early warning and notice 
   
   
Chapter 7: ​Career Management  ● Management  should  provide  support  and 
  guidance in career planning 
This  is  ensuring  that  the  organization  has  a  steady  4. Self-Assessment Programs 
flow  of talent and can achieve its goals by developing  ● Helps employees determine their career goals 
their  employees’  abilities  and  careers.  It  makes  sure  5. Development Programs 
the company retains people with talent  ● Employees  usually  turn  to  their  immediate 
  supervisors, who will give career advice 
Career Management Framework  ● Portfolio  Career  -  people  will  change  the 
1. Career Management Policies  direction  of  their  careers  during  their 
The  company  decides  how  often  and  to  what  working life 
extent it’ll use the following internal moves:  ● Protean  Career  -  employees  take 
a. Promotion  responsibility for their career paths 
● This  boost  employee  morale  as  they  ● Career  Anchors  -  employees’  own concept of 
assume  greater  responsibility  and  their  talents  and  abilities,  and  motives 
authority for higher salaries and benefits  related to their careers 
● Plateaued  Employees  are  those  who  will  6. Succession Planning 
no longer advance in their careers  ● An  integrated  approach  of  identifying 
b. Demotion  employees  who  will fill key areas, and honing 
● Employees  can  be  depressed  and  those employees’ skills 
inefficient,  so  some  companies  just   
discharge or transfer the employee  Career Anchors 
● It  is  caused  by  structural  changes,  1. Technical and/or Functional Competence 
disciplinary action, or employee inability  They  like  to be challenged and to use their skills to 
c. Transfer  become  experts.  They  may  reject  management 
● It  takes  9  months  to  adjust  after  a  positions  because  they  don’t  want  to  stop 
practicing  their  specialties.  They  want  to  be 
promotion or transfer 
appreciated for their technical skills. 
● A lateral transfer requires 7.8 months  2. General Managerial Competence 
d. Separation  They  like  to  solve  problems,  make  decisions,  and 
● Termination  may  be  traumatic,  and  old  influence  others.  They  feel  satisfied  with  the 
people  who  are  laid  off  may  take  a longer  general managerial position 
time to get another job  3. Autonomy or Independence 
● Retirement  Age  is  60  to  65 years old, and  They like to work alone and become consultants or 
some  retirees  may  return  to  work  as  independent businesspeople 
consultants  4. Security and Stability 
● Resignation  is  when  an  employee  quits.  They  like  a  stable  and  secure  job,  and will look for 
a company that’ll make them economically stable 
Types of resignees include: 
5. Entrepreneurial Creativity 
○ Impulsive  quitters  ​-  resign  on  the  spot 
They’ll  be  fulfilled  with  creative  efforts,  and  want 
without  planning  what’s  next  for  their  something creative and innovative 
career 
6. Service and Dedication to a Cause 
○ Comparison  quitters  ​-  resign  due  to 
7. Pure Challenge 
better  alternatives;  they  hold  no  bitter 
feelings  They  get  satisfaction  from  winning  over 
competitors 
○ Pre-planned  quitters  ​-  they  can’t  be 
8. Lifestyle 
prevented since they’ve already planned it 
They  want  a  balance  between  family  and  career, 
○ Conditional  quitters  ​-  leaves  as soon as 
and want jobs that jibe with their lifestyle 
there’s  a  job  offer  that  meets  their   
conditions 
MAINTENANCE 
 
2. Talent Audits  This  is  where  loyalty  to  the  company  is  nurtured  by 
● The review of the talent pool available  keeping employees satisfied all the time 
3. Career Planning   
● Defining  the  career  path  of  people  in  the  Career  -  one’s pattern of activities during their work 
organization  life. Stages are: 
● Systematic  matching  of  career  goals,  ➔ Formation  Stage  ​(the  moment  they  get  hired; 
21-28 years old) 
employee  capabilities  and  opportunities  to 
➔ Enterprising  Stage  ​(when  the  employee  sells 
achieve them 
their  skills  well,  or  pursue  a  master’s  or  graduate 
● Career  Ladder  is  a  sequence  of  jobs  with  degree; 28-35 years old) 
increasing levels of responsibility 
 ➔ Maintenance  Stage  ​(marked  by  many  Succession  Planning  -  the  structured  approach  of 
achievements  and  recognitions,  with  the  best  of  identifying,  developing,  and  retaining  employees  to 
both work and family life; 35-42 years old)  fill key areas. The key principles are: 
➔ Mid-Career  Stage  ​(mid-career  crisis;  there may  ● It’s aligned to company objectives 
be  dissatisfaction  with  psychological or emotional  ● It’s not limited to executive positions 
conflicts; 42-48 years old)  ● It ensures a pool of talents for key positions 
➔ Fulfillment  Stage  ​(contemplation of retirement;  ● A  process  that’s  fair,  well-communicated,  and 
48-60 years old)  transparent 
  ● It’s monitored and the progress is evaluated 
MOTIVATION   
Wherein  the  individual  carers  of  employees  are  well  Succession Planning Steps: 
managed  1. Identify  key  areas  and  positions  ​-  key 
  positions  are  those  critical  to  the  strategic 
Career  Planning  -  the  process  of  selecting  career  objectives of the organization 
targets  and  paving  the  path  to  them.  The  company  2. Identify  capabilities  for  the  above  ​- 
identification  of  ​knowledge  ​(information  that 
must  provide  growth  opportunities  until retirement. 
allows  a  person  to  successfully  perform  a  task), 
It  is  the  process  of  matching  career  goals  and  skills  (level  of  proficiency),  and  abilities 
individual  capabilities  with  opportunities  for  their  (enduring capacity to perform a task) 
fulfillment. Steps include:  3. Identify  employees  who  have  potential  for 
1. Self-Assessment  ​(a  personal  assessment  of  these  key  positions  ​-  the  purpose  is  for  these 
one’s interests, skills, characteristics, and values)  employees  to  acquire  the  needed  skills  once  the 
2. Exploration  and  Research  ​(the  company  positions are available 
provides  a  career  path  for  every  position,  which  4. Develop  and  implement  succession  plans  ​- 
identifies the career opportunities available)  they  can  be  given  assignments  beyond  their 
3. Decision-Making ​(career goals are formulated)  current  abilities,  or temporarily assume a key post 
4. Taking  Action  ​(bridging  of  individual  career  if the incumbent is absent 
goals with the prepared development programs)  5. Evaluate  effectiveness ​- monitor the efforts and 
5. Evaluation  ​(a  necessary  periodic  review  to  keep  make adjustments when needed 
track of the employee’s career progress)   
  MEASUREMENT 
SODI  Career  Planning  Model  -  a  simple  model  of  The  ultimate  measure  is  the  feeling  of  satisfaction 
career education with four concepts:  and  fulfillment.  The  company  should  be  satisfied 
1. Self-Awareness  (​ awareness  of  one’s  skills,  with  the  employee’s  performance,  the  employee 
petentials, and competencies)  should  be  satisfied  with  their  long  stint  in  the 
2. Opportunity  Awareness  ​(includes  career  company 
possibilities and opportunities)   
3. Decision-making  and  Planning  ​(how  to  make   
career  decisions  and  an  awareness  of  work   
pressures and influences) 
 
4. Implementing Plans ​(making it a reality) 
 
 
Career  Counseling  -  The  process  of  helping 
employees  develop  their  careers.  There  are  six 
personality types: 
1. Realistic  ​-  likes  to  work  with  animals,  tools,  or 
machines.  Dislikes  social  activities.  Are  technical 
in nature 
2. Investigative  ​-  like  studying  and  solving 
math/science  problems.  They’re  precise  and 
intellectual 
3. Artistic  ​-  like creative activities, dislike repetitive 
or routine activities 
4. Social  ​-  like  helping  others,  avoids  machines/ 
tools 
5. Enterprising  ​-  likes  selling  products  and 
persuading  people.  They  avoid  analytical  thinking 
and are sociable and ambitious 
6. Conventional  ​-  like  to  work  with  numbers  and 
machines; are systematic and orderly