HUMRES – MIDTERMS
The Recruitment Process
Recruitment
• is defined as a process that provides the
organization with the pool of qualified
candidates from which to choose.
• It involves identifying and working to attract
individuals interested and capable of filling
identified organizational roles.
Why is recruitment important?
Hiring the wrong person for a job can be costly
to organizations. Therefore, highly talented and
motivated employees offer a competitive advantage
which is a firm’s ability to add value to the company
through its assets (one being its human resources);
and is able to lower its costs.
When poorly hired employees with the wrong
skills and/or experience success for companies is
at risk.
The true cost of a bad hire
The cost of a bad hire extends well beyond the
person’s salary, including:
• Recruitment advertising cost and fees (and
cost for hiring again)
• Training and onboarding cost
• Unhappy customers and lost business
• Impact on team morale and performance
• Weakened employment brand
• Lost of time and momentum
• Opportunity cost and lost productivity
Stages of Recruitment
• The stages of recruitment move through a
recruitment funnel in which the number of
participants gets smaller the further down the
funnel the applicant goes.
• There are three fundamental stages of
recruitment:
- Identify and generate applicants.
- Maintain applicant interest and
participation as they continue through
the assessment process. During
recruitment, the organization is trying
both to assess and to attract the best
job applicants.
- Influence job choice so that desired
applicants are willing to accept offers
made to them.
The Recruitment Funnel
Applicant Quantity and Quality
• Quantity: Generating a sufficient number of
applicants during the first stage of the
recruitment process
• Quality: It relates to applicants having the
requisite skills needed as well as representing a
diverse pool of applicants.
Realistic Job Previews
• An important consideration is to attract
individuals to the job and organization while
also being realistic enough that once they begin
the job, they will not be disappointed and quit.
• One way in which organizations and
researchers address these concerns is the
realistic job preview (RJP), which offers
potential applicants a realistic, and sometimes
unappealing, view of the actual job.
Internal and External Sources of Applicants
Internal Recruitment
• It is the process of looking inside the
organization for existing qualified
employees who might be promoted to higher-
level positions.
• If an organization can fill higher-level openings
with current employees who are ready to move
up, it will have to fill lower-level positions from
the outside later.
Job Posting
• It is a mechanism for internal recruiting in which
vacancies in the organization are publicized
through various media such as company
newsletters, bulletin boards, internal memos,
and the firm’s intranet.
Supervisory Recommendation
• Using supervisory recommendations, a
mechanism for internal recruiting, a manager
solicits nominations or recommendations
 for a position that needs to be filled from are interested in full-time jobs after
supervisors in the organization. graduation.
External Recruitment
• It is the process of looking to sources
outside the organization for prospective
employees.
• Somewhat different methods are likely to be
used by an organization engaged in external
recruiting because the organization needs to
reach potential applicants from outside the
company.
WORD-OF-MOUTH RECRUITING
• The organization simply informs current INTERNAL VS EXTERNAL RECRUITMENT
employees that positions are available and
encourages them to refer friends, family PARTS OF A JOB ADVERTISEMENT
members, or neighbors for those jobs. 1. Company Information (Name of the company,
ADVERTISEMENT logo, and address)
• Advertisements on websites and in newspapers 2. Job Title
and related publications are also popular 3. Summary of Job
methods for external recruiting. Responsibilities
EMPLOYMENT AGENCIES 4. Qualification (Education,
number of years of experience,
• Private Employment Agencies - are more
skills, and abilities needed)
likely to serve the white-collar labor market
5. Company Benefits
(although some serve specialized niches such
6. Application Instruction
as office workers), and they charge a fee for
7. List of requirements needed
their services.
8. Contact Person
• In a public employment agency, all potential
employee job applicants are currently
unemployed, but many employed individuals
use the services of private employment
agencies in an effort to find other work while
maintaining their current jobs.
• An individual working for an executive
search firm is also known as a headhunter (A
headhunter is an individual working for an
executive search firm who seeks out qualified
individuals for higher-level positions.)
COLLEGE PLACEMENT OFFICES
• Most large organizations visit college
campuses every year to interview graduates
for jobs within the organization.
DIGITAL RECRUITING THE SELECTION PROCESS
• Usage of online job boards, social media, and Selection
internet communication tool. • is concerned with identifying the best
INTERNSHIP candidate or candidates for a job from among
• Research shows that organizations that want the pool of qualified applicants developed
to hire interns tend to be more open to their during the recruiting process.
creativity, which helps to attract interns who Steps in the Selection Process
• The recruiting process.
• Gather information about pool of qualified
applicants.
• Evaluate qualifications of each applicant.
• Make decisions about employment offers.
BASIC SELECTION CRITERIA
EDUCATION AND EXPERIENCE
• EDUCATION - Refers to the formal classroom
training an individual has received in public or
private school and in a college, university, or
technical school.
• EXPERIENCE - he amount of time the
individual may have spent working in either a
general capacity or a particular field.
SKILLS AND ABILITIES
• The assessment of skills and abilities, on the
other hand, is rather mixed in terms of
objectivity.
PERSONAL CHARACTERISTICS
• Some personal characteristics, which are
believed to reflect the applicant’s personality,
are also difficult to assess objectively.
• More recently, however, a great deal of
attention has been paid to assessing applicants
in terms of the big five personality traits.
HIRING FOR FIT
• A rather unique and interesting criterion for
selection is referred to as “fit.” When a firm
decides to hire someone on the basis of fit, it
hires that person not because he or she is the
most qualified for a specific job, but because
she or he is a good fit for the larger
organization.
POPULAR SELECTION TECHNIQUES
APPLICATION FORM
• A first step in most selection systems is to
ask applicants to complete an employment
application or an application blank.
- Weighted application blank: relies on
statistical techniques to determine the
relative importance of various personal
factors for predicting a person’s ability to
perform a job effectively.
- Biodata application blank: focuses on
the same type of information found in
a regular application, but it also goes
into more complex and detailed
assessments about that background.
BACKGROUND CHECKING
• A background check is a legal investigation or
verification into a potential employee's
history.
• Background screening often involves criminal
background checks, identity verification, and
education and credential checks.
EMPLOYMENT TEST
• A device for measuring the characteristics
of an individual such as personality,
intelligence, and aptitude.
• Types:
- Cognitive ability tests
- Psychomotor ability tests
- Personality tests
■ Self-inventory test
■ Projective technique
- Integrity tests
WORK SIMULATIONS
• It require an applicant to perform tasks or job-
related activities that simulate or represent the
actual work for which the person is being
considered.
• It is sometimes referred as work samples.
PERSONAL INTERVIEWS
• Although tests are popular, the most widely
used selection technique in most organizations
is the employment interview.
• Types:
- Structured: The interviewer works from a
list of standard questions that are presented
to every candidate, by every interviewer.
- Unstructured: It involves relatively little
advance preparation. The interviewer may
have a general idea about what she or he
wants to learn about the job applicant but
has few or no advance questions that are
formally constructed.
 - Semi-structured: Major or key questions
are decided in advance and provided for
each interviewer, but the interviewer is also
given the prerogative to ask follow-up
questions to probe the interviewee’s specific
answers.
- Situational: Asks the applicant questions
about a specific situation to see how he or
she would react.
INTERVIEW ERRORS
FIRST-IMPRESSION ERRORS
• Occur when an interviewer makes a decision
too early in the interview process.
CONTRAST ERRORS
• Occur when the interviewer is unduly influenced
by other people who have been interviewed.
SIMILARITY ERRORS
• Occur when the interviewer is unduly influenced
by the fact that the interviewee is similar to the
interviewer in one or more important ways.
NONRELEVANCY
• Occurs when an interviewer is influenced by
information that is not relevant to an individual’s
ability to perform the job
INTERVIEWER’S KNOWLEDGE OF THE JOB
• A final type of error that is common in interview
situations has to do with the interviewer’s
knowledge of the job.
OTHER SELECTION TECHNIQUES
REFERENCES AND RECOMMENDATIONS
• The job applicant is usually asked to provide
either letters of recommendation or the names
and addresses of individuals who may be
contacted to write such letters.
ASSESSMENT CENTERS
• An assessment center is not a physical location
but is instead an approach to selecting
managers based on measuring and evaluating
their ability to perform critical work behaviors.
MEDICAL EXAMINATION
• Candidate who have cross the above stages
are sent for a physical and medical
examination.
• Reasons:
- Physical fitness for the job concerned;
- To protect the business and employees
from infectious disease; and
- To check excessive expenditure on the
treatment of employee.
SELECTION ERRORS
Two basic types of selection errors can be made:
false positives
• are applicants who are predicted to be
successful and are hired but who ultimately fail.
false negatives
• are applicants who are predicted to fail and are
not hired, but if they had been hired would have
been successful.
Ensuring the Quality of Selection Measures:
Reliability and Validity
Reliability
• is how consistent or dependable selection
procedures are in measuring something, such
as a skill or ability.
Validity
• is the accuracy of a measure and the degree to
which it measures what it is supposed to
measure.
Test validity
• means that scores on a test are related to
performance on a job.
Criterion-related validity
• refers to the extent to which a particular
selection technique can accurately predict one
or more elements of performance.
MAKING THE OFFER
• The last step in the selection process is to
offer a position to the chosen candidate.
• The development of an offer via e-mail or letter
is a formal part of the process and requires
careful articulation of all elements and
conditions of the offer.
• Compensation and benefits will be defined in an
offer, as will any unique legal considerations.
• The job offer may be negotiable, depending on
the position.
THE TRAINING PROCESS
Training and development
• refers to educational activities within a
company created to enhance the knowledge
and skills of employees while providing
information and instruction on how to better
perform specific tasks.
DESIGNING THE TRAINING PROGRAM
TRAINING
• Design means planning the overall training
• It is a planned attempt by an organization to
program including training objectives, delivery
facilitate employee learning of job-related
methods, and program evaluation.
knowledge, skills, and behaviors.
• Substeps include setting performance
DEVELOPMENT
objectives, creating a detailed training outline
• Refers to teaching managers and professionals
(all training program steps from start to finish),
the skills needed for both present and future
choosing a program delivery method (such as
jobs.
lectures or Web), and verifying the overall
Why is training and development important?
program design with management.
• Helps employees develop new skills and
IMPLEMENT THE TRAINING PROGRAM
increases their knowledge.
• Implement means actually provide the training,
• Improves efficiency and productivity of
using one or more of the instructional methods.
individuals and teams.
• Before the actual training, send
• Creates new and improved job positions.
announcements far in advance, provide
• Keeps employees motivated and enhance
directions, provide a contact, and make sure
contribution levels.
participants have pretraining materials.
The ADDIE MODEL explained
• During training, make sure all participants
Analysis – analyze your situation to understand
have a point of contact in case they have
the gaps you need to fill.
questions or need guidance.
Design – based on your analysis, make informed
• After training, remember training does not end
decisions to design the best possible learning
when the program ends. Instead, periodically
experience.
ascertain that trainees are transferring their
Development – bring your learning experience to
learning to the job.
life by building your end-product.
TRAINING IMPLEMENTATION TECHNIQUES
Implementation – distribute your learning end-
On-the-Job Training
product to your audience.
• It means having a person learn a job by actually
Evaluation – evaluate if your learning end-product
doing it.
is effective. Make any necessary updates and cycle
- Coaching/Understudy method - an
back to the Analysis phase.
experienced worker or the trainee’s
ANALYZING TRAINING NEEDS
supervisor trains the employee.
• In determining the needs for training, HR
- Job rotation - an employee (usually a
professional should consider the following
management trainee) moves from job to job
factors. These factors affect what type of
at planned intervals.
training, topics, and approach to use.
- Special assignments - similarly give lower-
level executives firsthand experience in
working on actual problems.
Apprenticeship Training
• A process by which people become skilled
workers, usually through a combination of
 formal learning and long-term on-the-job Computer-based training
training. • Uses interactive computer-based systems to
Informal Learning increase knowledge or skills.
• Training experts use the notation “70/20/10” to - Simulated learning and gaming/Virtual
show that as a rule, 70% of job learning reality
occurs informally on or off the job, 20% reflects Online/Internet based learning
social interactions (for instance, among • Learning portals
employees on the job), and only 10% is actual • Virtual classrooms
formal training. • Mobile and microlearning
Job Instruction Training Off-the-Job Training
• Many jobs consist of a sequence of steps best • Refers to training that takes place outside of the
learned step-by-step. Such step-by-step employee's regular work environment.
training is called job instruction training • Case study method
(JIT). • Management games
Lecture • Outside seminars
• Lecturing is a quick and simple way to • University-related programs
present knowledge to large groups of • Role playing
trainees.
• Corporate universities
Programmed Learning
• Executive coaches
• A systematic method for teaching job skills,
MANAGEMENT DEVELOPMENT
involving presenting questions or facts, allowing
• is any attempt to improve managerial
the person to respond, and giving the learner
performance by imparting knowledge,
immediate feedback on the accuracy of his or
changing attitudes, or increasing skills.
her answers.
ORGANIZATIONAL DEVELOPMENT (OD)
Behavior Modelling
• It is a system-wide effort, managed from the
• Behavior modeling involves (1) showing
top of the organization, to increase the
trainees the right (or “model”) way of doing
organization’s overall performance through
something, (2) letting trainees practice that way,
planned interventions.
and then (3) giving feedback on the trainees’
• OD Techniques:
performance.
- Survey feedback - Employees will respond
Audiovisual based Learning
to questionnaires
• Although increasingly replaced by Web-based
- Third-party peacemaking - Here a neutral
methods, audiovisual-based training techniques
third party, often an OD consultant from
like DVDs, films, PowerPoint, and audiotapes
outside the organization.
are still used.
- Process consultation - The consultant
Vestibule Training
then provides feedback and
• With vestibule training, trainees learn on the
recommendations to the managers about
actual or simulated equipment but are trained
how to improve these procedures.
off the job (perhaps in a separate room or
• Organizational learning - The process by
vestibule).
which an organization “learns” from past
Electronic performance support systems
mistakes and adapts to its environment.
• EPSS are computerized tools and displays
that automate training, documentation, and
phone support.
Videoconferencing
• Involves delivering programs over broadband
lines, the Internet, or satellite.

Module 5 (Part 1) — EMPLOYEE
COMPENSATION AND BENEFITS
COMPENSATION
• is the total of all rewards provided
employees in return for their work.
• The overall purpose of compensation is to
attract, retain, and motivate employees.
• Purposes of compensation:
- Provide appropriate and equitable rewards
to employees;
- Help employees focus on activities that the
organization considers important; and
- Increase employee efforts along desired
lines.
INTERNAL VS EXTERNAL EQUITY
Internal Equity
• It refers to comparison made by employees to
other employees within the same organization.
External Equity
• It refers to comparison made by employees to
others employed by different organizations
performing similar jobs.
Pay Surveys
• These are surveys of compensation paid to
employees by other employers in a particular
geographic area, industry, or occupational
group.
Direct financial compensation (core
compensation)
• consists of the pay that a person receives in
the form of wages, salaries, commissions, and
bonuses.
Indirect financial compensation (employee
benefits)
• consists of all financial rewards that are not
included in direct financial compensation.
This form of compensation includes a wide
variety of rewards normally received indirectly
by the employee such as paid vacation and
medical care.
Nonfinancial compensation
• consists of the satisfaction that a person
receives from the job itself or from the
psychological or physical environment in which
the person works.
• Although our focus will not be on nonfinancial
compensation, it is worth giving brief
consideration through an illustration to better
describe the total compensation concept.
COMPONENTS OF DIRECT FINANCIAL
COMPENSATION
Employee Base Pay
• The monetary compensation employees earn
on a regular basis for performing their jobs.
Hourly pay and salary are the main forms of
base pay.
- Hourly Pay: Employees earn hourly pay for
each hour worked.
- Salary: Employees earn salaries for
performing their jobs, regardless of the
actual number of hours worked. Companies
generally measure salary on an annual
basis.
Cost-of-Living Adjustment
• It represents periodic base pay increases that
are founded on changes in prices as recorded
by the consumer price index (CPI).
Seniority Pay
• Pay program in which pay increases are based
on length of service.
Performance-Based Pay
• Performance-based pay is governed by how
well one performs the job. The objective of
performance-based pay is to improve
productivity by rewarding those who best
assist in achieving this goal.
- Merit Pay: Pay increase added to
employees’ base pay based on their level of
performance.
- Merit Bonus: One-time annual financial
award, based on productivity that is not
added to base pay.
- Spot Bonuses: Relatively small monetary
gifts provided to employees for outstanding
work or effort during a reasonably short
period of time.
- Incentive Pay: Compensation, other than
base wages or salaries, that fluctuates
according to employees’ attainment of some
standard (e.g., a pre-established formula,
individual or group goals, or company
earnings).
Kinds of Incentive Pay Plan Options (Individual
Incentive Plans)
- Piecework: Incentive pay plan in which
employees are paid for each unit they
produce.
- Management Incentive Plan: Bonuses to
managers who meet or exceed objectives
based on sales, profit, production, or other
measures for their division, department, or
unit.
- Behavioral Encouragement Plan:
Individual incentive pay plans that reward
employees for specific such behavioral
accomplishments as good attendance.
- Referral Plan: Individual incentive pay
plans for rewarding the referral of new
customers or recruiting successful job
applicants.
Kinds of Incentive Pay Plan Options (Group
Incentive Plans)
- Gain Sharing: Plans designed to bind
employees to the firm’s productivity and
provide an incentive payment based on
improved company performance.
- Scanlon Plan: Gain sharing plan that
provides a financial reward to employees for
savings in labor costs resulting from their
suggestions.
Companywide Incentive Plans
• Profit Sharing: Compensation plans that result
in the distribution of a predetermined
percentage of the firm’s profits to employees.
- Current Plans: provide payment to
employees in cash or stock as soon as
profits have been determined.
- Deferred Plans: involve placing company
contributions in an irrevocable trust, credited
to individual employees’ accounts.
- Combination Plans: permit employees to
receive payment of part of their share of
profits on a current basis, while deferring
payment of part of their share.
• Employee Stock Plans: Equity segments of
equal value, which increase with the number of
stock shares held.
- Employee Stock Option Plan: Plan in
which a firm contributes stock shares to a
trust, which then allocates the stock to
participating employee accounts according
to employee earnings.
- Stock Compensation Plan: Companywide
incentive plans that grant employees the
right to purchase shares of company stock.
- Deferred Compensation: An agreement
between an employee and a company to
render payments to an employee at a future
date.
• Person-Focused Pay: Compensation for
developing the flexibility, knowledge, and skills
to perform a number of jobs effectively.
 - Skill-based Pay: System that compensates
employees for their job-related skills and
knowledge, not for their job titles.
- Competency-based Pay: Compensation
plan that rewards employees for the
capabilities they attain.
DETERMINANTS OF COMPENSATION
STRATEGY
• Overall organization strategy
• Ability to pay
Ranking Method
• Ability to attract and retain employees
• Is the simplest of the four job evaluation
• Ability to bargain with the unions
methods.
Pay Secrecy
• In the job evaluation ranking method, the raters
• Is a workplace policy that prohibits employees
examine the description of each job being
from talking about how much money they make
evaluated and arrange the jobs in order
with co-workers and other people outside the
according to their value to the company.
company.
• The procedure is essentially the same as the
• Many organizations have a policy of not
ranking method for evaluating employee
disclosing pay-related information.
performance. The only difference is that you
- Information about pay system as well as
evaluate jobs, not people.
individual pay received.
Classification Method
• Justification for pay secrecy
• Involves defining a number of classes or grades
- To avoid any discontent that might result
to describe a group jobs.
from employees’ knowing what everybody
• In evaluating jobs by this method, the raters
else is being paid.
compare the job description with the class
- Many employees, especially high achievers,
description.
feel very strongly that their pay is nobody
• Class descriptions – reflect the differences
else’s business.
between groups of jobs at various difficulty
• Drawbacks of pay secrecy
levels. The class description that most closely
- Difficult for employees to determine whether
agrees with the job description determines the
pay is related to performance and does not
classification for that job.
eliminate pay comparisons.
Factor Comparison Method
- May cause employees to overestimate pay
of their peers and underestimate pay of their • The _______ of job evaluation assumes that
supervisors. there are 5 universal factors consisting of
- Can create feelings of dissatisfaction. mental requirements, skills, physical
- Employees may become suspicious. requirements, responsibilities, and working
BUILDING JOB STRUCTURES USING JOB conditions; the evaluator makes decisions on
EVALUATION these factors independently.
Job Structure - Mental requirements – which reflect
mental traits such as intelligence,
• Is an ordered set of jobs that represents the job
reasoning, and imagination.
structure or hierarchy.
- Skills – which pertain to facility in muscular
Job Evaluation
coordination and training in the
• HR professionals use ________ systematically
interpretation of sensory impressions.
to recognize differences in the relative worth
- Physical requirements – which involve
among a set of jobs and to establish pay
sitting,, standing, walking, lifting, and so
differentials accordingly.
on.
 - Responsibilities – which cover areas such
as raw materials, money, records, and
supervision.
- Working conditions – which reflect the
environmental influences of noise,
illumination, ventilation, hazards, and
hours.
Point Method
• Raters assign numerical values to specific job
factors, such as knowledge required, and the
sum of these values provides aa quantitative
assessment of a job’s relative worth.
• Historically, some variation of the point plan has
been the most popular option.
Compensable factors
• Any factor used to provide a basis for judging
job value in a job evaluation scheme.
• Experience, education, working conditions,
confidential data, consequences of errors,
complexity of duties, responsibility, mental and
physical demands.
Competitive Compensation Policy
• A compensation policy refers to choices that
compensation professionals make to promote
competitive advantage.
PAY LEVEL COMPENSATION POLICY
• Market Lead Policies
- Pay policy that distinguishes companies
from the competition by compensating
employees more highly than most
competitors. Leading market denotes
market levels above the market pay line.
• Market match
- Average pay that most employers provide
for a similar job in a particular are or
industry.
• Market lag
- Pay policy that distinguishes companies
from the competition by compensating
employees less than most competitors.
Lagging the market indicates the market
levels fall below the market pay line.
Pay Compression
• Wage compression or salary compression
• Occurs when employees with the same skills
and experience are paid differently.
PAY COMPRESSION CAUSES
• Market rate changes
- New hires may earn as much as existing
employees due to rapid salary increases in
high-demand jobs.
• Internal equity adjustments
- Raises in lower or mid-level jobs to ensure
fairness can lead to similar pay across
these roles and higher-level positions.
• Regulatory or policy changes
- New minimum wage laws can decrease the
pay gap between new and experienced
workers.
• Long tenure of employees
- Long-term employees might end up with
similar pay as new hires due to smaller
incremental raise over time.
Executive Compensation
• A company’s executive compensation programs
is a critical factor in attracting and retaining the
best available talent.
• The 5 main components of executive
compensation packages include:
- Base salary
- Bonuses and performance-based pay
- Stock option plans
- Perquisites (perks), and
- Severance packages
Employee Benefits
• Indirect financial compensation (employee
benefits) consists of all financial rewards not
included in direct financial compensation. They
typically account for about 30 percent of a firm’s
financial compensation costs.
• Benefits are typically unrelated to employee • When a member gets sick, they are
productivity; therefore, although they may be recommended to get medical help
valuable in recruiting and retaining employees, within the network. Services can be performed
they do not generally serve as motivation for faster because the HMO companies and
improved performance. healthcare providers may already have existing
TYPES OF EMPLOYEE BENEFITS process in admitting members, determining the
• Legally required benefits benefits and coverage, identifying medical
• Discretionary benefits experts who can best give treatment, etc.
• Voluntary benefits
ADVANTAGES OF HMO
Legally required Benefits
• Service incentive leave • HMO companies offer a variety of healthcare
• Maternity leave solutions, including prepaid cards, coverage for
• Paternity leave senior citizens, etc.
• Paternal leave for solo parent • An HMO plan can cushion the impact of not
• Leave for victims of violence against women earning an income during sickness.
and their children • It can give peace of mind because it can help
• Special leave for women relieve financial worry brought about by being ill.
• Thirteen-month pay
• Separation pay DISADVANTAGES OF HMO
• Retirement pay • Most plans have limited annual benefit limit
• Employees’ compensation program (ABL), and so people might still spend money to
• Philhealth benefits pay what remains of the bill. This can happen
• Social Security benefits when one gets hospitalized for a long time,
• Pag-ibig benefits requires regular lab tests and treatment, or needs
Premium Pay to go through a very expensive procedure.
• Overtime pay • Some plans may not cover certain diseases or
• Holiday pay medical procedures.
• Premium pay • Some plans may also be a co-pay arrangement,
• Night shift differential where you’re asked to pay a portion of the bill.
Discretionary benefits • You’re limited to a network of healthcare
• Protection Programs providers. Some plans may not offer
• Paid time off reimbursement when you avail of healthcare
• Services services outside of the network.
PROTECTION PROGRAMS • Premiums can be quite expensive especially for
Health Maintenance Organization people of advanced age or with pre-existing
conditions.
• The health maintenance organization • Premiums are expected to go higher each time
or HMO is a company that allows people to be you renew.
insured to avail medical services in exchange for
• People in poor health may have to pay more
a fixed monthly or annual fee. It acts as the
expensive premium, are not allowed to renew
middleman between the client and healthcare
their plan or are not approved to get a plan.
providers such as hospitals, clinics, laboratories,
• You need to have Philhealth cover or else you’d
doctors, therapist, etc.
have to pay the portion for Philhealth
• HMO companies have a network of hospitals,
membership.
laboratories, and medical
• The plan may be tied to employment, so you may
facilities with which they have existing
lose it when you resign or you retire from the job.
partnership. They also have a list of doctors,
specialists, and experts that are signed up with
them.
 Job sharing

• Two part-time people split the duties of one job in

some agreed-on manner and are paid according
to their contributions.

Telecommuting

• Work arrangement whereby employees, called

Paid time off
• In providing payment for time not worked,
employers recognize that employees need time
away from the job for many purposes.
- Vacation
- Sick pay and paid time off banks
- Sabbaticals
“teleworkers” or “telecommuters,” are able to
remain at home (or otherwise away from the
office) and perform their work using computers
and other electronic devices that connect them
with their offices.
Part-time Work
• A type of employment which regular hours of
work are substantially less than the normal hours
prescribed.

EMPLOYEE SERVICES

• Child care
• Educational Assistance
• Food services and subsidized cafeterias
• Scholarships for dependents
• Relocation benefits
• Domestic partner benefits

Workplace Flexibility and Worklife Balance

• Effective work–life balance programs focus on

solving any personal issues that can detract from
an employee’s work.
• For employers, creating a balanced work–life
environment can be a key strategic factor in
attracting and retaining the most talented
employees. MODULE 5 (PART 2) – Benefits in the Philippines

Flexible Working Arrangements Businesses have the responsibility to follow laws

related to compensation and benefits.
Flextime
SOURCES OF LAWS RELATED TO COMPENSATION
• Practice of permitting employees to choose their AND BENEFITS
own working hours, within certain limitations.

Compressed Workweek

• Any arrangement of work hours that permits

employees to fulfill their work obligation in fewer
days than the typical five-day workweek.
Minimum Wage Maternity Leave

• It is the lowest wage rate fixed by law that an
employer can pay his/her worker.
How is the Minimum Wage determined?
• This benefit applies to all covered female
employees, regardless of civil status,
employment status, and the legitimacy of her
child.

Paternity Leave

• Under the law, male private and government

employees in the Philippines are entitled to seven
days to paternity leave with full pay. They should
receive their basic salary, allowance, and other
monetary benefits for those days.

Parental Leave for Solo Parents

Holiday pay • Solo Parents are entitled to parentals leave of 7

work days every year with full pay.
• refers to the payment of regular daily wage for any
unworked regular holiday. Leave for victims of Violence against Women and
their Children
Premium Pay

• refers to the additional compensation for work

performed with eight hours on non-work days,
such as rest days and special days.

Overtime Pay

• refers to the additional compensation for work

performed beyond eight hours a day.

Night Shift Differential (NSD)

• refers to the additional compensation of ten Special Leave for Women

percent (10%) of an employee’s regular wage for
each hour of work performed 10 PM to 6 AM.

Service Charges

• is the amount that is added to a bill for any work

or service performed.
• The Service Charge Law dictates how service
charge payments should be made and when they
should be made to employees.
• All service charges collected by an employer Thirteenth Month Pay
must be distributed fully and equally, based on
actual hours or days of work or service rendered,
among all covered employees.

Service Incentive Leave

• Employee who has rendered at least one year of

service is entitled Service Incentive Leave
(SIL) of five days with pay.
Separation pay Employees Compensation Program

• is given to employees in instances covered by • The Employees’ Compensation Program (ECP) is

Articles 298 and 299 (formerly Articles 283 and a government program designed to provide a
284) of the Labor Code of the Philippines. An compensation package to public and private
employee’s entitlement to separation pay sector employees or their dependents in the
depends on the reason or ground for the event of work-related sickness, injury, or death.
termination of his or her services.
• An employee may be terminated for just cause
(i.e., gross and habitual neglect of duty, fraud, or
commission of a crime), and other similar causes
as enumerated under Article 297 (formerly Article
282) of the Labor Code and, generally, may not be
entitled to separation pay. On the other hand,
where the termination is for authorized causes,
separation pay is due.

TWO TYPES OF SEPARATION PAY

Retirement Pay

• Employees shall be retired upon reaching the age

of sixty (60) years or more but not beyond sixty
five (65) years old [and have served the
establishment for at least five (5) years Philhealth Benefits

• The National Health Insurance Program (NHIP) is

a compulsory health insurance program of the
government established to provide universal
health insurance coverage and ensure affordable,
acceptable, available and accessible health care
services for all citizens of the Philippines.

Social Security System

• Covered employees are entitled to a package of

benefits under the Social Security and
Employees' Compensation (EC) Programs in the
event of death, disability, sickness, maternity and
old age. Self-employed and voluntary members
 also get the same benefits as covered • It provides employees additional information how
employees, except those benefits under the EC well they are currently doing so they can correct
program. their deficiencies, capitalize on their strengths,
and improve their overall contributions to their
Pag-Ibig benefits
jobs; and
• The Home Development Mutual Fund, otherwise • It is a basis of incentive pay systems and other
known as Pag-IBIG (Pagtutulungan sa performance-management interventions.
kinabukasan: Ikaw, Bangko, Industriya at
GOALS OF PERFORMANCE APPRAISAL PROCESS
Gobyerno) Fund is a mutual provident savings
system for private and government employees • Provide valid and reliable measure of employee
and other earning groups, supported by matching performance in relevant dimensions
mandatory contributions of their respective • Documentation
employers with housing as the primary • Improve job performance, which requires that
investment. employees
Module 6 – Performance Appraisal and Career receive:
Management - Accurate feedback
- Guidance
Employees need to know how well they are
performing and how they can improve their
performance. Companies often base pay and
promotion decisions on employee performance. They
need ways of measuring, capturing, and comparing
performance levels of different employees. For all
these purposes, companies need accurate
performance measures.

PERFORMANCE APPRAISAL AND PERFORMANCE

MANAGEMENT

Performance appraisal

• is the specific and formal evaluation of an

employee to determine the degree to which the
employee is performing his or her job effectively.
• It is also known as: performance evaluation,
performance review, annual review, employee
appraisal, or employee evaluation.

Performance management

• refers to the more general set of activities carried
out by the organization to change (improve)
employee performance.
IMPORTANCE OF PERFORMANCE APPRAISAL
• Appraisal results provide a benchmark for
assessing the extent to which recruiting and
selection processes are adequate;
• It is important for legal reasons (All employee
movements are based on merit and valid
causes);
DIFFERENT ROLES IN THE PERFORMANCE
APPRAISAL PROCESS
Role of the Organization
• Develop the appraisal process
• Determine timing of appraisals
• Ensure availability of clear and specific standards
Role of the rater
• Observe performance and process information
gained from observation
• Communicate results and consequences
• Prepare ratee to perform at desired levels
DIFFERENT ROLES IN THE PERFORMANCE
APPRAISAL PROCESS
Role of the ratee
• Maintain a clear and unbiased view of
performance
• Collect adequate information to avoid
disagreements during
the process
360 degree feedback
• is a process that allows an employee to
understand their strengths and weaknesses. In
this feedback system, the employer and other
staff members, like co-workers, peers,
subordinates, and people that share the same
work environment, provide feedback to an
employee.
Method of Performance Appraisal
SIMPLE RANKING METHOD
• Manager gives a rank-order to each member of a
particular work group from top to bottom or from
best to worst
Paired Comparison Method
• Each individual employee is compared with every
other individual employee, two at a time.
Forced Distribution Method
• Grouping employees into predefined frequencies
of performance ratings.
GRAPHIC RATING SCALE
• Statement or question about some aspect of an
individual’s job performance.
CRITICAL INCIDENT METHOD
• Relies on instances of especially good or poor
performance on the part of the employee.
Behaviorally Anchored Rating Scale (BARS)
• Combination of the graphic rating scale and the
critical incident method.
Management by Objectives
• System is based largely on the extent to which
individuals meet their personal performance
objectives.
RATING ERROS IN PERORMANCE APPRAISAL
Contrast Error
• When people are compared to against one
another instead of against an objective standard
Distributional error
• When the rater only tends to use one part of the
rating scale.
- Severity – all employees have below
average things.
- Leniency – everyone has an above
average rating
- Central tendency – no one is actually
good or bad, employees receive generally
average rating
Halo Error
• One positive characteristic may cause the
manager to rate all other aspects of performance
positively.
Horns error
• When the manager downgrades other aspect of
an employee’s performance because of a single
performance dimension
CONTEXTUAL PERFORMANCE ○ Specific jobs performed by a person
○ Responsibilities and activities that
• It refers to tasks an employee does
constitute the job
on the job that are not required as
○ Movements and transitions between
part of the job but that
jobs
nevertheless benefit the
○ Individual’s overall assessment
organization in some way. This is
○ Feelings of job satisfaction
known as OCB.
• Organizational citizenship
behaviors include:
- Willingness to stay late at work to
finish deadlines
- Helping co-workers
- Performing tasks that help the
organization

Evaluating the Performance-Appraisal Process

• Most firms claim to have dropped performance

appraisal since the usage of stack ratings have
led to:
- Backstabbing
- Low levels of teamwork
- Feelings of frustration
• Performance-management technologies enable
collection of real-time performance data
Legal Issues in Performance Appraisal
• Appraisals showing evidence of disparate impact
must be validated in the same manner as any
selection techniques
- Show that rating is job related
- Demonstrate that raters:
■ Can observe rated behaviors
■ Have training to help them appraise
performance better
MODULE 6 (Part 2) – Career Management
Most people have a general idea of the meaning of
career. For instance, they generally agree that
careers have something to do with the work a
person does in an organization, but they also
recognize that a career is a broader and more
general concept than a single job or task in an
organization.
Career
• Set of experiences and activities that people
engage in related to their job and livelihood over
the course of their working life
Exploration
• During this period in people’s lives, they try to
identify the kind of work they are interested in
doing.
• This period of a typical person’s career starts in
the mid- to late teens and lasts through the mid-
to late twenties.
ESTABLISHMENT
• During this period, an individual begins to create
a meaningful and relevant role for herself and
the organization.
• There is considerable range in terms of age and
time in this stage, but it generally encompasses
an individual’s late twenties through mid- to late
thirties.
Maintenance
• During this period, the individual begins to reach
a level in the organization that optimizes his
talents or capabilities.
Disengagement
• During this period, the individual gradually begins
to pull away from her work in the organization, her
priorities change, and work may become
less important to her.
Older Workers and Decision to Retire Career Development Issues and Challenges

• Curvilinear relationship exists Career Counseling Programs

between age and performance
• Formal career-counseling programs usually take
○ Performance is highest when
the form of workshops, conferences, and career
workers are youngest and older
development centers. In some cases, the
• Retired individuals are most likely to
organization establishes general-purpose career-
retire when:
counseling programs that are available to all
○ Adequate financial resources are
employees.
available
• Organizations also have informal counseling
○ Health makes it difficult to
programs. Much of this counseling takes the form
continue work
of one-on-one interactions between an employee
HUMAN RESOURCE MANAGEMENT AND and his or her supervisor and typically occurs
CAREER MANAGEMENT during the performance-appraisal period.

Dual-Career and Work-Family Issues

• Balancing family needs with

work demands
o Family-friendly work
practices such as child
care, elder care, and
flexible work schedules
• Work stress and family stress
Career Planning are connected

• is a strategic and systematic process that EVALUATING CAREER-MANAGEMENT ACTIVITIES

involves individuals and organizations working
• If an employee is satisfied with his or her career
collaboratively to identify and develop career
at this point, then career management must be
goals, explore growth opportunities, and create
judged successful up to that point.
actionable plans to achieve desired career
• Employees who go into careers for which they are
outcomes.
not well suited (either in terms of abilities or
temperament) will obviously be more likely to
suffer dissatisfaction with their careers.

Career Planning Initiatives