LESSON 10

STAFFING IN THE
ORGANIZATION
NAVAREZ – DE VIVAS – PARADA
12- WALTON
Providing employment is the best
form of social service, as it
serves you, others your country,
your world the entire society.

Amit Kalantri
STAFFING THE
ORGANIZATION
Involves appointing qualified people into positions in the
organization, ensuring that they are efficient and
effective employees, and promoting their growth as they
continue to work in the company.
STAFFING THE
ORGANIZATION
Involves appointing qualified people into positions in the
organization, ensuring that they are efficient and
effective employees, and promoting their growth as they
continue to work in the company.

Managers should be able to fill all job positions in the

company since a complete body of employees is
necessary in the accomplishment of the organization's
goals and objectives.
 CONCEPTS OF PEOPLE
MANAGEMENT
01

Human Resource
Management
(HRM)
is defined as the comprehensive
set of managerial activities and
tasks concerned with developing
and maintaining a qualified
workforce and human resource,
in ways that contribute to
organizational effectiveness.
 CONCEPTS OF PEOPLE
MANAGEMENT
01 02
Human Resource Human Resource
Management Development
(HRM)
is defined as the comprehensive (HRD)
Deals with employee training and
set of managerial activities and
development. It aims to have a
tasks concerned with developing dynamic, growth-oriented workforce
and maintaining a qualified by unlocking the potential of
workforce and human resource, employees and developing their skills
in ways that contribute to and abilities through employee
organizational effectiveness. training, career development,
performance management, coaching,
succession planning, and
organization development.
 CONCEPTS OF PEOPLE
MANAGEMENT
01 02 03
Human Resource Human Resource Human Capital
Management Development Management
(HRM)
is defined as the comprehensive (HRD) (HCM)
Deals with employee training and Complements HRM as it focuses on
set of managerial activities and providing a strategic approach to
development. It aims to have a
tasks concerned with developing dynamic, growth-oriented workforce managing a company’s staff. It
and maintaining a qualified by unlocking the potential of organizes comprehensive strategies for
workforce and human resource, employees and developing their skills the company, from the time employees
in ways that contribute to and abilities through employee are hired until their turnover. It also
organizational effectiveness. training, career development,
employs succession planning and
performance management, coaching,
succession planning, and talent management.
organization development.
 ASPECTS OF
Talent HCM
Management (TM)
The process of attracting highly skilled workers and retaining them in the
organization. It involves key human resource functions such as educational
attainment, skills, experiences, training, potential, and the personal qualities
of employees. High reputable universities or colleges engage in talent
management since they retain a pool of highly skilled faculty to attract
students to enroll in their institutions.
 ASPECTS OF
Talent HCM
Management (TM)
The process of attracting highly skilled workers and retaining them in the
organization. It involves key human resource functions such as educational
attainment, skills, experiences, training, potential, and the personal qualities
of employees. High reputable universities or colleges engage in talent
management since they retain a pool of highly skilled faculty to attract
students to enroll in their institutions.

Knowledge Management (KM)

The effective and integrated approach to identifying, capturing, evaluating,
retrieving, and sharing a company’s information assets. Aside from
documents and databases, the biggest source of knowledge is the expertise of
employees.
 THE NATURE OF
STAFFING
● Staffing or Human Resource Management involves acquiring
and developing human resources that will carry out and
perform the various activities of the organization. It includes
recruiting, selecting, training, and developing people in the
organization. It also utilizes various tools and techniques to
promote employee loyalty, satisfaction, and personal growth
within the company.

● Staffing is a continuous process due to the never-ending need

to find, hire, and develop talents for the company. Effective
human resource management helps the company achieve its
goals and maximize productivity since managers are able to
select quality employees. Apart from hiring employees, it also
focuses on job satisfaction and career growth wherein
employees are given proper training and the opportunity to
avail of developmental programs, receive salaries and benefits
in line with their positions and responsibilities, and be
evaluated regularly.
 THE NATURE OF
STAFFING
● Staffing or Human Resource Management involves acquiring
and developing human resources that will carry out and
perform the various activities of the organization. It includes
recruiting, selecting, training, and developing people in the
organization. It also utilizes various tools and techniques to
promote employee loyalty, satisfaction, and personal growth
within the company.
● Staffing is a continuous process due to the never-ending need
to find, hire, and develop talents for the company. Effective
human resource management helps the company achieve its
goals and maximize productivity since managers are able to
select quality employees. Apart from hiring employees, it also
focuses on job satisfaction and career growth wherein
employees are given proper training and the opportunity to
avail of developmental programs, receive salaries and benefits
in line with their positions and responsibilities, and be
evaluated regularly.
The Human Resource
Department
The Human Resource Department (HRD) is tasked
with implementing human resource management
in the company. The activities of the HR
Department include the primary functions and
activities of human resource management such as
human resource planning, job analysis,
recruitment and hiring, training and development,
performance appraisal and management,
compensation, and employee relations. The HRD is
also responsible for ensuring that the company
complies with workplace safety standards and
labor and employment laws. This department is
staffed by human resource professionals and
headed by a Human Resource Director.
 THE STAFFING
PROCESS
Recruitment/Selection/ Performance Appraisal
Human Resource
Placement New employee Rewards system
Planning---Job
orientation Training and Employee movements
Analysis Development Employee relations
 THE STAFFING
PROCESS
Recruitment/Selection/ Performance Appraisal
Human Resource
Placement New employee Rewards system
Planning---Job
orientation Training and Employee movements
Analysis Development Employee relations

Human Resource Planning (HRP)

Identifies people with the right skills and assigns them corresponding tasks in the
company.

The processes involved in HRP:

1. Environmental scanning
It is crucial for a manager to find out the factors currently affecting the labor market because this can affect
the company’s recruitment.

2. Forecasting and estimating the firm’s manpower complement

Forecasting is done to identify the demand for and supply of employees while considering the manpower
requirements, the internal supply for employees, and possible external sources of employees.
 The external supply of employees is based on the pool of job applicants. Information regarding this is
provided by government offices such as the Department of Labor and Employment and the National
Statistics office. There are also online websites which can supply information such as colleges and
universities and job portals.

In forecasting internal supply, actuarial losses are identified. These refer to life events or unavoidable
circumstances that reduce the number of employees in the company like death, disability, and retirement.

3. Gap Analysis
It is done to determine if there is a gap or difference between demand and supply in human resources.

If there is a shortage of workers, the firm may opt to allow or encourage overtime work or hire temporary or
contractual workers.

If there is a surplus of employees, there may be a need to trim down their number to achieve the desired
manpower complement. This can be done through three options:

1. Offer early retirement programs for those who are already near the retirement age of 60 years old
2. Laid off employees with redundant positions (positions that are no longer needed by the company)
3. Implement a hiring freeze where recruitment and hiring of new personnel are halted.
4. When demand is equal to supply, the current workforce is provided with further skills training.
 JOB ANALYSIS
The procedure for determining the duties and skill requirements for a job or
position, as well as other qualifications sought for in an employee or applicant.
Information that can be collected through job analysis:
1. Specific tasks and activities – essential 4. Knowledge, tools, and equipment used
tasks required for a position. The purpose of – account knowledge on software
each task, how they are done, and the specific applications, accounting procedures, laws,
time needed to complete them. and other relevant information.
5. Work conditions – physical aspects of the
2. Required behavior on the job – workplace job such as work schedules and physical
environment. Information on social contact is
behavior or ethics required in the performance
also obtained, such as the kind of people the
of the job concerned. employee interacts within the conduct of his or
her job.
3. Required job standards – performance 6. Personal characteristics & requirements
levels or standards required on the job. Used – educational background, training, experience,
as bases when evaluating the performance of personality type, attitude, values, and physical
employees. characteristics needed for the position.
 JOB ANALYSIS
PROCESS
APPLICATION PREPARATION OF
ACTUAL
FORMULATION SELECTION OF JOB JOB DESCRIPTION
CONDUCT OF
OF OBJECTIVES OF JOBS ANALYSIS AND JOB
JOB ANALYSIS
TECHNIQUES SPECIFICATION
 JOB ANALYSIS
TECHNIQUES
1. Observation – this technique requires the analyst to actually observe the jobs as they
are being performed. This method is useful in determining key job behavior, especially for
highly physical jobs that employ repetitive tasks. One disadvantage of this method is that
there are complex jobs that cannot be analyzed through simple observation alone.

2. Interview – this technique requires face-to-face interaction between the job analyst and the
employee. It provides an opportunity for the job analyst to personally clarify certain information with
the employee and to gather more precise information about the job. The disadvantage in conducting
interviews is that it is tedious, and the job analyst needs to interview several employees regarding the
same position.
3. Questionnaire – the least expensive technique for data gathering. Information gathering is
less tedious since the questionnaire is distributed to a large number of employees at the same
time. A disadvantage of this method is that the accuracy of the responses is dependent on the
ability of the employees to understand the questions and effectively communicate their
responses.

4. Logbook – recording tasks and activities in a logbook is a good way to keep track of the
conduct of a certain job and its progress over a certain period. However, this technique may
not be effective for very detailed or complex jobs. Logging entries is also time-consuming and
workers are required to set aside time for documentation.

Generally, there is no best method in implementing a job analysis and analysts usually
employ a combination of techniques. The organization's objective or purpose, as well
as time and budget constraints, determine the manager's choice of the appropriate
methods in conducting the job analysis.
 JOB DESCRIPTION
Data gathered from the job analysis is used to formulate the job description. It is
a written summary of the duties, responsibilities, reporting relationships, and the
job specifications for each job or position in the company which provides a
clearer view of what the job is all about and minimizes irregularities in the
performance of the actual job.
 ESSENTIAL PARTS OF A JOB
DESCRIPTION
1. Job title or position – this describes the exact name of the job like Human Resource Manager
or Human Resource Assistant, Production Manager, etc.

2. Reporting relationships – this includes the job title for the position's immediate supervisor. It
also includes the subordinates under the employee's supervision.

3. Job classification – it provides the rank of the jobs in comparison to the overall importance of
other jobs.

4. General description of the job – this provides a description of the job and an overview of its
duties and responsibilities.

5. Specific duties and responsibilities – this describes the functions of the job in detail. Usually,
the specific functions start with a verb to show an element of action.

6. Job Specification – it provides the minimum qualifications for a particular job such as
 RECRUITMENT
Recruitment is the process of attracting qualified applicants to occupy
vacant positions in the company. This consists of various activities that
entice and influence qualified applicants to work with the company.
To ensure the success of recruitment, management must know the goals
of the organization and the reasons for hiring people. Next, the company
should think of prioritizing jobs depending on the kind of job performance
needed for the vacant positions.
Applicants are required to fill out the company's application form and
submit to a selection process that requires tests, interviews, and a
background check.
 SOURCES OF APPLICANTS
Internal Applicants – company employees who are considered for promotion to
higher positions. Promoting an employee to a vacant position in the company incurs
lesser cost than hiring a new employee since the internal applicant is already familiar
with the job he or she will be occupying.

External Applicants – individuals who are recruited by the company or directly

apply to join the company. A company can choose from several options when
recruiting external applicants. The traditional means of recruitment include
advertisement and notices in print media such as newspapers and magazines.
Companies also participate in job fairs and trade events that are held in large public
venues and attract many job hunters. They can also participate in campus job fairs
organized by colleges and universities if they are looking for fresh graduates.
 SOURCES OF APPLICANTS
• Some companies recruit and hire employees through referrals, where their own
employees recommend suitable applicants.
• Companies may also entertain walk-in applicants who submit their application directly
to the company.
• Companies that need temporary workers often hire the services of a manpower
agency. Normally, temporary or contractual workers are hired for less than six
months.
• There are also companies who hire people for project-based positions. The company
engages their services for a certain project and after that project is complete, their job
contract ends.
• A non-traditional yet increasingly popular method of recruitment nowadays is through
the internet. Many companies now use the internet as a recruitment tool because it is
cheaper and provides wider access to the labor market.
*Many companies also post news regarding
job vacancies on their company websites.
These companies rely on their reputation
and image
EQUAL in attracting applicants
EMPLOYMENT
This ensures that an applicant is not
discriminated against because of his or
her age, color, race, religion, civil
status, or gender.
Companies are now careful about
 SELECTION
The Selection Process starts when applicants who qualify after preliminary
screening are scheduled for the preliminary interview and psychological testing
conducted by the human resource department (HRD).
Usual types of psychological tests given to applicants:

1. Mental Ability Test or Intelligence Quotient (IQ) Test – a test of

general knowledge that consists of questions on linguistic and numerical
abilities and abstract reasoning.
2. Aptitude Test – measures specific abilities and the applicant’s inclination
to succeed in a particular field like engineering, encoding, and sales.
3. Personality Test – a measure of aspects of behavior such as
cooperation, initiative, dependability, responsibility, and sociability.
 SELECTION
Once applicants pass the initial testing, they are sent to the requisitioning
department for further interviews. The requisitioning department processes the
requests to fill in vacancies in the company.

HRD conducts a background check on the applicants who were interviewed by

the requisitioning department. A background check is done to verify the
information given by an applicant regarding his or her past work, school
experiences, and his or her personal attitudes and values.

Once the requisitioning department makes its final selection, the job is offered
to the chosen candidate. If it is accepted, the candidate is briefed about the
position, its responsibilities, and the starting salary.
 PLACEMENT
• The last part of the hiring process.
• When a candidate accepts the job offer, the next step is the submission of
pre-employment requirements. A candidate has to undergo medical
examination to determine his or her fitness for work.
• After the submission of pre-employment requirements and the results of
the medical exam, the candidate is officially hired and signs the
employment contract.
• The status of employment may be probationary, contractual, or project-
based. Contractual employees and project-based employees are
given a contract to work for the company for a limited period. On the other
hand, a probationary employee, is given a period of six months after
which he or she is evaluated before becoming a regular employee.
TRAINING AND
DEVELOPMENT
o Two distinct processes in employee development.
o An organized activity that enhances employees’ knowledge and skills
is called Training.
o Enhancement of the competencies of employees by giving them
opportunities for greater responsibilities to achieve their total growth is
called Development.
TRAINING AND
DEVELOPMENT
o Two distinct processes in employee development.
o An organized activity that enhances employees’ knowledge and skills is called
Training.
o Enhancement of the competencies of employees by giving them opportunities

NEW EMPLOYEE ORIENTATION

for greater responsibilities to achieve their total growth is called Development.

PROGRAM
The new employee orientation program aims to provide new employees with
relevant information about the company such as the company’s history, vision,
THE TRAINING PROCESS
Pre-Training Assessment

Designing the training program

Implementation

Evaluation
 THE TRAINING PROCESS
Pre-training Assessment
 Allows the trainer to identify which aspects of the trainees need improvement.
 Objectives of the program are formulated. SMART (Specific, Measurable,
Achievable, Realistic and Time bound).

Designing the Training Program

o The training program identifies the training methods to be used, the time frame for
implementation, dates and venues, evaluation methods, resource persons, and
training cost
THE TRAINING PROCESS
 Some of the most common techniques used by companies in their training programs.
1. Lecture is the oldest and most popular method of teaching where the speaker
gives a speech explaining a topic.
2. Demonstration method is utilized to show how something works or how to
perform a task.
3. Computer-based training utilizes computer programs to teach knowledge and
skills, and does not require face-to-face interaction with a trainer.
4. Programmed instruction is a computer-based training that uses instructional
program that employs a variety of content such as text and multimedia.
5. Virtual reality method allows the participant to experience a 3D environment.
6. Case study presents a particular situation and trainees discuss and decide on a
solution to an organizational problem.
7. Role playing presents actual work situations for analysis and participants are
asked to act out specific roles.
8. Teambuilding utilized activities that encourage employees to work in groups.
Training Implementation
At this stage, the trainer delivers the training program utilizing the selected
techniques.

Training Evaluation
To measure the effectiveness and success of training and development programs,
the following criteria can be used:
o 1. Reactions the actual reactions of the trainees to diff. aspects of the program.
o 2. Results include the end result and benefits
o 3. Recall includes the actual application of what is recalled.
o 4. Retrieval refers to how easily information is recalled from memory and
application. Note: The four R’s are essential for any change or modification
of behavior on the part of the employees.
COMPENSATION
AND WAGES
COMPENSAT
COMPENSATION is any tangible equivalent or reward for

ION
services rendered. It varies from one position to another.
 Direct compensation is monetary in nature and given in the
form of salaries, wages, bonuses and allowances.

 Indirect compensation is given in the form of services and

non-monetary benefits such as vacation leaves and
hospitalization.
 COMPENSATION
GUIDELINES
 The government imposes regulations and restrictions on
salaries of employees like the minimum wage law. It is
to protect manual laborers from being taken advantage of
by companies.
 Compensation is usually timebased. Salary refers to
compensation given to professionals on a monthly basis.
Wage refers to compensation given on a weekly or daily
basis.
 Base pay/basic pay is the fixed part of pay.
 COMMON MODES OF
1. Payment for time worked
 Majority of employees are PAYMENT
paid on the basis of time worked.
 Payments for time worked have adjustments based on any of the following:
a. Across the board increase pay adjustments provided to all employees with the
same rate regardless of rank.
b. Merit increase salary/wage increase given to employees on the basis of
performance.
c. Cost of living allowance (COLA) monetary allowance given to the employees to
help them cope with the prevailing conditions of the economy.
d. Seniority pay given to employees based on the no. of years of service in the
company.
2. Flat rates
 Firms with flat rates do not consider skills and seniority as factors for giving
compensation.
 COMMON MODES OF
3. Compensation through incentives

pay are the ff:

PAYMENT
These are payments based on output. The most popular forms of incentives

a. Merit pay given in recognition of outstanding performance and based on the

results of a performance evaluation.
b. Piece rate pay given to employees who are paid a fixed rate per product
produced.
c. Commission compensation based on achieved sales quota.
d. Group incentives given to a team that has achieved a particular production
target.
4. Payment based on skills
 This is based on the number of skills the employees gain while working for the
company.
 COMMON MODES OF
5. Payment based on knowledge or credentials
PAYMENT
 Compensation is given to employees who attend seminars and conferences and
gain additional knowledge that improve their performance in the company.
6. Executive payment
 Payment given to the members of top management.
7. Special payment
a. Overtime pay - covers work done beyond the normal schedule of eight hours a
day and is given on top of the basic salary.
b. Holiday pay - payment for an unworked regular holiday based on the employee’s
daily rate.
c. Premium pay - payment given to work during rest days and special holidays.
d. Night differential payment - an additional 10% of basic rate for each hour of work
performed between 10 pm to 6 am.
12 Regular Holidays under Executive Order No. 292, as amended by Republic Act 9849
HOLIDAY DATE
New Year’s Day January 1
Maundy Thursday Movable date
Good Friday Movable date
Araw ng Kagitingnan April 9
Labor Day May 1
Independence Day June 12
National Heroes' Day Last Monday of August
Eid al-Fir Movable date
Eid al-Aidha Movable date
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
 Special Holidays under Executive Order 292
HOLIDAY DATE
Ninoy Aquino Day August 21
All Saints Day November 1
Last Day of the year December 31

ADDITIONAL NON-WORKING DATE

HOLIDAYS
New Year January 2

Chinese New Year Movable date

All Souls Day November 2

EDSA Revolution Anniversary February 25

Black Saturday Movable date

Ninoy Aquino Day August 21

Feast Day of Immaculate Concepcion December 8

e. Service charge - refers to fees charged to cover services related to the
production of a product.
f. Severance or separation pay - duty of the firm to provide separation pay to
employees who are terminated with authorized cause.
a. Retrenchment to prevent further losses
b. Closure of a firm
c. Illness that may affect his or her performance or is highly contagious
g. Retirement pay - an employee who is 60 or 65 yrs old shall receive onehalf
month salary for every year of service provided that he/she has rendered 5 yrs of
continuous service to the company.
h. Thirteenth month pay - all employees are entitled to 13th month pay provided
that they have worked for at least one month in a calendar year.
 EMPLOYEE BENEFITS
1. Social Security System (SSS)/ Government Service Insurance System
(GSIS) all income earners and workers, particular employees working in private
firms, are required to give monthly contribution to the SSS and government
employees avail of benefits from the GSIS.

2. Employees’ compensation program given to private and government

employees in case of work related disability and sickness.

3. Pag ibig (Home Development Mutual Fund) benefits a government

established housing finance program.

4. Philhealth (Philippine Health Insurance Corporation) benefits gives

member and their dependents financial assistance for hospitalization.
 EMPLOYEE BENEFITS
5. Service incentive leave employees are entitled to five days service
incentive leave with pay provided they have rendered at least one year
of service.

6. Maternity leave given to all female SSS members whether married or

not.

7. Paternity leave granted to all married male employees in private firms.

8. Special leave for women granted to female employees with

gynecological disorders.
 VOLUNTARY BENEFITS FREELY GIVEN BY THE
The followingCOMPANY TO ITS
are ex. of voluntary EMPLOYEES.
benefits:

1. Vacation leaves - the number of vacation days given to employees

varies from one company to another.
2. Sick leaves - companies provide more than the allotted number of
days for the service incentive leave as sick leaves.
3. Emergency leaves - some companies provide emergency leaves of
three days. Examples include floods due to typhoon and bringing a
family member to a hospital.
4. Summer outings - companies may organize exclusive summer outing
for their employees.
5. Sportsfest employees - engage in sports like bowling, basketball and
many more.
 VOLUNTARY BENEFITS FREELY GIVEN BY THE
COMPANY TO ITS EMPLOYEES.
6. Rice subsidy - regular employees are provided one sack of rice per
month.
7. Meal subsidy - may come in the form of meal discounts.
8. Shuttle service - employees who live in locations that are far from the
office are provided transportation services.
9. Hospitalization - employees are given health cards and a list of
accredited hospitals whose services they can avail.
10. Group life insurance program - enrolled in a group life insurance
program with benefits provided to beneficiaries in case of death.
11. Bonuses - aside from the 13th month pay, some companies also give
14th month up to 17th month pay.
 VOLUNTARY BENEFITS FREELY GIVEN BY THE
COMPANY TO ITS EMPLOYEES.
12. Profit sharing - company can “share its bounty” by dividing net income
among all employees regardless of rank.
13. Stock options can give shares of stocks to employees who have
rendered more than 10 years of service.
14. Christmas parties and packages - Christmas parties that include
exchange gifts, raffles, and gift basket giveaways.
15. Cash bonuses - companies provide cash bonuses to employees at the
end of the year.
16. Emergency Loan - companies granted interest-free emergency loans to
employees for emergency purposes which are payable through salary
deduction.
 VOLUNTARY BENEFITS FREELY GIVEN BY THE
COMPANY TO ITS EMPLOYEES.
17. Free uniform and laundry allowance - provides uniforms and laundry
allowance upon regularization to employees and can be obtained after
one year of service.

18. Executive perquisites / Executive Perks - additional benefits given to

top management in the form of free limousine service, free hotel
accommodations, gasoline allowances, and the like.
REWARD
SYSTEMS
 REWARD
Companies also provide additional payments and benefits on top of the

SYSTEM
employees’ basic salaries. These form part of the company’s reward
system and are given to motivate employees as they perform their tasks.
CONTINGENT PAY
 This is a pay scheme which is given on top of the basic pay rate and is
based the employee’s performance, competency, contribution, and
skills.
 Contingent pay can be applied to individuals or group.
 INDIVIDUAL
1. Pay for performance scheme

 CONTINGENT PAY
On top of the basic pay, an employee is given a bonus based on the performance.
This serves to motivate employees to perform well in their jobs.
 Employees are encouraged to fully participate in attaining the company’s objectives.
 One disadvantage is that the basis for providing the reward may be subjective.
 The company should have a good performance management system that relies on the
quality and not the quantity of work.

2. Pay for Competency

 Based on the knowledge, skills, and abilities that employees have that they apply on the
jobs.
 Encourages enhancement of competencies among employees but may be difficult to
assess since it ignores output levels.
 Excellent competency framework is required.
 INDIVIDUAL
3. Pay for Contribution
CONTINGENT PAY
 Focuses on the combination if employee competencies and output levels.
 Provides employees the opportunity to simultaneously develop their
competencies and increase their output levels.
 This may be difficult to manage as managers will have to assess both the
competencies and performance of employees at the same time.

4. Pay for Skills

 This payment depends on the skills acquired by the employees.
 Requires a worker to undergo trainings and gain certification for a certain skills
or competencies.
 Advantage of this scheme is that it encourages employees to learn more skills
and avail of trainings and development programs.
 INDIVIDUAL
 This scheme may be expensive.
CONTINGENT PAY
 A possibility that the employee may decide to undergo trainings to acquire skills
or competencies that are unrelated to their position.

5. Pay for Service

 Usually paid yearly on the basis of an employee’s continued service.
 Treats all employees equally regardless of performance, skills acquired, and
competence level.
 However, implementing rewards based on the length of service fails to reward
those who contribute more to the company’s achievement.
 GROUP CONTINGENCY
1. Team-based Pay
 Given to groups of employees whoPAY
have related jobs and are assigned to work
on a certain project.
 Reward is based on the achievement of a certain quota or service delivery
standards.
 Usually given at a rate proportionate to an employee’s basic pay.
 Other companies distribute equally among team members.
 It is effective for high cohesive groups themselves to be more contributing to the
achievement of the team are likely to be disappointed if bonuses are divided
equally.

2. Organized-wide Pay
 Given to employees on the basis of the achievement of organizational goals.
 2 TYPES OF ORGANIZED-
a. Gainsharing
WIDE PAY
 Based on a bonus plan where employees are encouraged to fully contribute to the
company’s performance.
 Primarily emphasizes increased productivity and improved performance of employees.
 Achievements are compared to a set of baselines.
 The gain of the company is calculated and become the bases of bonuses given to
employees.
 Example, when a company gives bonus to its employees when its sales revenue
surpasses the sales target.

b. Profit Sharing
 Employees share in the profits of the company either through cash payments or shares of
stocks.
 The value of the incentives is determined by the management.
 Usually, the management decides which portions of the profit will be shared with
employees.
PERFORMANCE
APPRAISAL
 PERFORMANCE
 It refers to the process where employee performance is documented and

APPRAISAL
evaluated.

 Also known as performance review or performance evaluation.

 Determines whether employee performance is effective and conforms to

company standards and expectations.

 Done periodically by the company and the management decides on how

frequently it is conducted and the means by which employees are appraised.
 PERFORMANCE
Evaluation is an important aspect of company’s performance management system

APPRAISAL
as it provides concrete information based on which the overall performance of the
company can be assessed.

Formal Evaluation
 Highly preferred and recommended as opposed to the informal evaluation.

Over the years, performance appraised has expanded from mere decision-making
regarding salary or promotion to addressing other employee-related concerns that
affect long-term organizational performance.
 PURPOSES OF
1. Needs Assessment - Performance evaluation provides relevant information
aboutPERFORMANCE APPRAISAL
the specific training needs of employees.

2. Employee Movements - It helps management decide who will be promoted by

providing proof or meritorious performance.

3. Basic for Merit Increase - It gives strong proof for merit increases.

4. Legal Concerns
 If there are questions regarding certain decisions like termination, the appraisal
becomes the basis for justifying such action.
 Results of appraisal is also used to address such issues on rewards, layoff, and
employee transfer.
 PURPOSES OF
5. Development


PERFORMANCE
A series APPRAISAL
of performance appraisal tracks the growth of employee.
It serves as evidence for identifying career paths and determining personnel
development.

6. Channel of Communication
 Provides good venue for discussion regarding performance and other issues
between employees and their immediate supervisors.
 An avenue for ironing out differences and articulating certain career concerns or
questions on performance ratings.

7. Source of Motivation
 One of the best ways to keep employees motivated.
 One way to boost employee morale and encourage them to make a good impression
and give an outstanding performance in their job.
 PERFORMANCE APPRAISAL
- performance appraisal is done through objective or judgmental methods.
METHODS
OBJECTIVE METHODS
 Measures of actual output and performance test.

MEASURES OF ACTUAL OUTPUT

 Volume of sales or number of orders processed.

PERFORMANCE TEST
 Another objective appraisal method that evaluates an employee using a
set of standardized condition.
 PERFORMANCE APPRAISAL
JUDGMENTAL METHODS
METHODS
 Include ranking and rating techniques.

RANKING TECHNIQUE
 A method where employees are compared to other employees.
 Drawbacks include a tendency to be inaccurate when applied to large groups. It is also
difficult to rank people who come from different groups.
 Ranking itself doesn’t provide sufficient information for feedback as evaluators focus on
the general performance employees and do not identify their strengths and weaknesses.
RATING TECHNIQUE
 Appraisal method that compares an employee to a fixed standard.
 Rating scale is used to measure the characteristics of an employee, as well as their job
performance.
 Example of a rating scale is the Behaviorally Anchored Rating Scale (BARS). This rating
scale identifies aspects of employee behavior that will be measured and assigns rating
scales to them.
 PERFORMANCE APPRAISAL
JUDGMENTAL METHODS
METHODS
 Include ranking and rating techniques.

RANKING TECHNIQUE
 A method where employees are compared to other employees.
 Drawbacks include a tendency to be inaccurate when applied to large groups. It is also
difficult to rank people who come from different groups.
 Ranking itself doesn’t provide sufficient information for feedback as evaluators focus on
the general performance employees and do not identify their strengths and weaknesses.
RATING TECHNIQUE
 Appraisal method that compares an employee to a fixed standard.
 Rating scale is used to measure the characteristics of an employee, as well as their job
performance.
 Example of a rating scale is the Behaviorally Anchored Rating Scale (BARS). This rating
scale identifies aspects of employee behavior that will be measured and assigns rating
scales to them.
 PUNCTUALITY
The employee always comes to work on time.

1 2 3

Strongly Disagree Strongly

disagree Disagree

CONGENIALITY
The employee greets customers warmly and treats them with respect and dignity

1 2 3

Strongly Disagree Strongly

disagree Disagree
 Accuracy
The employee is always accurate in his or her work.

1 2 3

Strongly Disagree Strongly

disagree Disagree
 PERFORMANCE APPRAISAL
360-DEGREE FEEDBACK
METHODS
 Become popular in recent years.
 Supervisors are not the only evaluators and other people may also evaluate the
employees.
 Gives a comprehensive evaluation of all personal aspects of an employee.

• To eliminate bias in conducting employee evaluation, companies provide its

manager and supervisors extensive training on performance appraisal.
• Evaluators are also required to practice consistent and effective way of
appraising employee performance.
• Managers should keep in mind that their appraisal will affect the morale of the
employees and their chance for merit increase, promotion, career development,
and training.
 PERFORMANCE APPRAISAL
• There is a need for allMETHODS
the managers and supervisors who conduct
performance appraisal to be trained in setting the goals and objectives of
appraisal, effective selection and used of evaluation method, proper
documentation, conducting feedback and post-review actions with
employees, and addressing employee questions and concerns regarding
the appraisal. The training can be done through special workshops
conducted by professional HR consultants and human resource
managements experts.
 EMPLOYEE MOVEMENTS
• inevitable and are often the result of evaluation or structural changes
within an organization.
• an organization can move its employees either vertically or horizontally.

Vertical Movement
 Entails the movement of an employee from lower position to the higher
one.

Horizontal Movement
 Involves the transfer of an employee to another department or position
with similar responsibilities or status.
 EMPLOYEE MOVEMENTS
PROMOTION
• is a movement to a higher level or position.
• companies have different criteria on promotion.
• the usual criteria are the combination of tenure and meritorious
performance.

Tenure
 Refers to the number of years in service of an employee.

Meritorious Performance
 Refers to an excellent or outstanding performance of an employee.
 EMPLOYEE MOVEMENTS
PROMOTION
• is a movement to a higher level or position.
• companies have different criteria on promotion.
• the usual criteria are the combination of tenure and meritorious performance.

Tenure
 Refers to the number of years in service of an employee.
Meritorious Performance
 Refers to an excellent or outstanding performance of an employee.

Some companies may have a clear preference for the tenure based on loyalty of the
employees or performance may have more weight on the basis of how much the
employee contributes to the achievement of corporate goal.
 EMPLOYEE MOVEMENTS
DEMOTION
 A movement to a lower level or position.
 A common reason for an employee’s demotion is inefficiency or poor
performance.

TRANSFER
 A movement to another position but with the same level or scope of
responsibility.
 It can also mean a transfer to another branch or location but the employee still
occupies the same tasks.
 In some cases, an employee may have another position but the level is still the
same.
 EMPLOYEE MOVEMENTS
SEPARATION
• an employee’s departure from the organization.
1. Resignation
 Employee’s voluntary decision to leave the organization.
 The usual reasons for employee’s resignation are to look for better opportunities
in another companies and avail of higher salaries and benefits.

2.Separation with Authorized Cause

 More commonly known as LAYOFF
 This is the company’s decision to terminate employees due to business reasons.
 One of the common reasons is REDUNDANCY, wherein the introduction of a
new technology will duplicate some of the existing functions of certain jobs.
 Current job holders of such functions will be given an appropriate severance
package when they leave the organization.
 EMPLOYEE MOVEMENTS
 Severance Package consists of considerable monetary package to the enable
employees to maintain their standard of living during the period that they are
unemployed.

3. Separation With Just Cause

 Occurs when an employee is terminated due to theft, fraud, and other serious
offenses.
 Employee does not receive any severance pay from the company.
 Employee who was found to have committed grave offenses may also be
subjected to legal sanction.
 Employee who receives are unfavorable evaluation at the end of their
probationary period can also be terminated.
 EMPLOYEE MOVEMENTS
4. Retirement
 Refers to the end of a worker’s employment with the company due to old age,
illness, or infirmity.
 There is no prescribed age for retirement, although, many companies set the
normal retirement age for employees at 60 years old and some companies set it
at the age of 65 years old.
 Employees are given retirement package as a mandate by law along with other
voluntary benefits from the company.
 EMPLOYEE MOVEMENTS
4. Retirement
 Refers to the end of a worker’s employment with the company due to old age,
illness, or infirmity.
 There is no prescribed age for retirement, although, many companies set the
normal retirement age for employees at 60 years old and some companies set it
at the age of 65 years old.
 Employees are given retirement package as a mandate by law along with other
voluntary benefits from the company.
 EMPLOYEE
* RELATIONS
Effective employee relations management is an essential component that contributes to the
success of a company.
1. Drive for Commitment
When a company foster good relationship between management and employees, the latter is
more likely to become loyal and committed to the organization.
It is very important to always win employees over and gain their loyalty to the organization.
2. Harmonization of Terms and Condition of Employees.
Management should ensure that employees are provided good work conditions and benefits as
stated in their employment contracts. The general satisfaction of employees is assured as well
as their continued motivation to do well in their jobs.
3. Emphasis on Mutuality
Management must be inclusive, and employees must feel that managers are also a part of the
work team.
4. Policies and Practices for Communication - Clear and Honest communication between
employees and management is a vital component of labor relations that will ensure
continuous and harmonious relationship among members of the company.
E C C M
O
M M LABOR RELATIONS O
A
M
P M M N
U
L N HARMONY
U
A
N
O I I G
C
Y A
C
E
FAIRNESS A
E T T M
E I I
O O
E
S N RAPPORT N N
T

EMPLOYMENT – MANAGEMENT RELATIONSHIP

 EMPLOYEE-MANAGEMENT
RELATIONSHIP DIAGRAM

 The diagram shows the elements of maintaining good relationship between managers and
employees.

 Harmony, unity, joint effort, fairness, and rapport contributes to maintaining relations
characterized by mutual respect, cooperation, and shared responsibilities and benefits.

 Good Communication is the key in resolving conflicts between employees and

management.

 Company must ensure that there is constant dialogue between employees and
management.
 LABOR UNION AND COLLECTIVE BARGAINING
: employees have the option to form labor unions.

: also known as labor organization, for the purpose of collective bargaining or

mutual aid, interest, cooperation, and protection.

: Labor unions in the Philippines are classified as either public sector unions or
private sector unions.
 Public Sector Unions
Also known as government employees’ unions are organized by employees of government
agencies.

 Private Sector Unions

Those whose members are employed in commercial, industrial, and agricultural enterprise,
including non-profit or charitable organization, and medical, religious, and educational
institutions.

 Workers Association
Employee organizations established for mutual aid, protection, and other legitimate purposes
but not for the purpose of collective bargaining.
 COLLECTIVE BARGANING

: Refers to the process by which the labor union negotiates a labor contract with management.

: The labor contract or the Collective Bargaining Agreement contains agreements on compensations,
benefits, duties of employees and management, work hours, job security, promotion, layoffs, vacation and
rest periods, and the grievance procedure should there be violations to the labor contract.

o Forming a union or workers
association should be a
voluntary act on the part of the
employees.
o Once a union is established, it
must be registered with the
Department of Labor and
Employment. Once negotiations
between the union and
management produce a
collective bargaining agreement,
this must be registered with the
DOLE.
o Employees themselves may take o
the initiative and organize
themselves into a union, or they
may be assisted by the outside
organization.
o Employees with managerial
positions are not allowed to
become members of a labor
union since they are assumed to o
represent the interests of
management.
Labor unions often present a
problem for management since
these limits the freedom of
management in several areas,
and the conflicting interests
between unions and
management often results in
difficulties for the company.
Companies therefore seek to
employ practices that promotes
good employee relations so that
their employees will not feel the
need to organize labor unions.
 EMPLOYEE CODE Code of conduct defines the acceptable
behavior of employees within the workplace.
OF CONDUCT
It is considered a legal agreement between the company and the employee that he or she will observe
ethical workplace conduct at all times.

Code of conduct is also included in the employee’s handbook and its contents are relayed to the
employee in the orientation.

It varies from one industry to another, but some of its essential contents are as follows.

1. Prohibition of illegal activities, such 4. Confidentiality and disclosure of

as gambling, smoking, or drinking. confidential information. 7. Procedures for sick
leaves and emergency
leaves.
2. Prohibition of discrimination against 5.Dress code and appearance
gender, race, religion, and civil status. 8. Sanctions for
violations of the code of
6. Punctuality (tardiness and absences)
conduct.
3. Sexual Harassment
 GENERAL STEPS IN THE DISCIPLINARY PROCESS THROUGH HRD

: disciplinary actions are : the disciplinary process is : in order to properly assess

taken to address misconduct often included in the the nature of the alleged
in the workplace or any type employees’ contracts or is violation or misconduct, the
of violations against given as part of the job disciplinary process follow
company rules. orientation. these steps.

1. Identify the employee who committed the violation

2. Identify the violation/s committed.

3. Consult the department head or the immediate supervisor and make an initial
assessment of the violation

4. Set a meeting with the department head or immediate supervisor and the employee

5. Ensure that the employee is provided with due process

6. Plan and discuss the corrective action with the department head or supervisor.
 DUE PROCESS
: any disciplinary issue involving employee violations of the code of conduct must go through the process.

: It ensures that the disciplinary process is conducted in a fair and impartial manner with due regard for the rights of the
employee.

: Employees are entitled to safeguards and protections since being subjected to discipline hearings will endanger their
standing in the company and in the worst case may result in the termination of their employment.

: Due process also upholds the right of management to address any disciplinary issue involving its employees and employ
whatever corrective measure they see fit.

: It ensures a fair and impartial hearing on employee’s violations or a management decision which threatens an employee’s
tenure or status of employment.

: It also ensures a fair and impartial investigation of the case.

: Due process also allows the management to impose appropriate disciplinary action and progressive discipline on an
employee who was found to have committed violations.
THANK YOU!
“People are not your most
important asset. The
right people are.”
– Jim Collins