Module in
BA 15
(Human Resource Management)
BY
Joyce C. Decendario, PhD.
Business and Management (BAM) Department
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C. Semi-Final Period
Module 3: TRAINING AND DEVELOPMENT OF HUMAN RESOURCES AND
EMPLOYEE MOVEMENT
Human resources development is a function of management that registers, traces, and
insures individual progress through continued job proficiency, career growth and individual
guidance. Human resources development covers three programs: training/education, career
planning and counseling.
Training and Development
The three M’s of training and development are maintenance, motivation, and
measurement. With the tremendous changes in technology, e-commerce, boy of new knowledge,
competitive advantages, and total quality management, and good governance, companies saw the
need to train and develop employees to level up and keep abreast of these new trends. In
addition, organizational growth hindered by the lack of knowledge and training of employees
prompted companies to invest in developing and enhancing the skills of their human capital.
Training is defined as a process or method of providing programs that may modify,
change, increase, or improve the level of performance of employees.
Development is a method of allowing employees to grow by giving them opportunities
take on greater or bigger responsibilities in preparation for more challenging tasks in the future.
Training and development refers to the official and ongoing educational activities
within an organization designed to enhance the fulfillment and performance of employees.
Many companies have realized the importance of training in gaining a competitive
advantage and attaining organizational objectives. High-leverage training uses an effective
instructional design process to ensure that training is linked to the fulfillment of company goals.
It also serves as a benchmark for the training programs of other companies. Continuous
learning provides employees with the chance to study the whole system that includes the
interrelationships among jobs, their work units, and the company. Through continuous learning,
they are expected to acquire new skills and knowledge which they can apply on the job.
The training cycle is a systematic approach developed by Roger Buckley and Jim Caple:
1. Identifying training needs
2. Preparation
3. Training delivery
4. Applying learning
5. evaluation
Training, in many organizations, is the only development program and hence it is equated
with development. It should not be used as a “quick fix” program or a panacea to cure
organization ills since low productivity or substandard performance may be due to lack of
motivation, low quality or old equipment and tools and related reasons.
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Signals for Need of Training. When the following conditions occur, training may be
imperative:
1. Substandard work performance
2. Decreased productivity
3. High wastage or scrappage of resources
4. Larger than expected reject rate
5. High accident rate
6. Change in employee career plans and organization objectives, structure and staffing
for the future, and
7. Untapped potentials that are promising.
Types of Training. Depending on the organization’s goals, needs, and resources, this
program comes in various types:
1. Orientation. This type of training is afforded to new employees on probation.
2. On-the-job training. This type does not need any special school. It is simple and
realistic giving the worker a hands-on approach to actual methods, problems and
solutions right-on the job.
3. Vestibule training. In this type of training, workers are offered a short course under
working conditions that approximate those in the next levels. It refers to preparation of
an employee for the principal position he desires to assume. This is appropriate for
tenured employees who would like to be moved upward or transferred to other lateral
positions.
4. On-site and off-site training. On-site training is given within the compound of the
organization which has training rooms for the program. Resource persons come to the
organization site to save travel time of trainees and to lessen expenses for rental of
outside facilities. Off-site training is held outside the organization compound like
schools, hotels, resorts, clubhouses or special conference places to minimize, if not,
preclude, interruptions of trainees during the training program and also to provide
fellowship among trainees.
5. Formal and non-formal training. Formal training is a degree program which is
conducted by an educational institution conferring bachelor, master, and doctoral
degrees. It is better termed education program. Non-formal training consists of short
courses like seminars, workshops, colloquia, conferences, symposia, lecture series,
clinics and the like. The trainees are usually given certificates of attendance and for
fulfillment of requirements of the course.
Both operative and managerial employees can attend on-site and off-site formal and nonformal programs.
To provide smooth, organized and continuing education, policies are formulated and
implemented in certain important areas to provide answers to questions like whether it is
institution-based or individualized, on who selects trainees, criteria for selection and resources to
be used.
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The choice of training methodologies depends on teaching objectives, subject matter,
level and abilities of trainees, size of group, availability of method and teaching aids and
competence of teachers. There is no one best method of teaching.
Because of the tremendous training costs, the program has to be evaluated in terms of
change in the trainee’s behavior and performance in the work setting. Evaluation of such
program is a very difficult task due to problems in the process of empirical verification.
Career Planning. It is the process by which the individual worker patterns and orchestrates his
separate but related work activities to prepare him together with the organization to take greater
job and personal responsibility for his future. It is a joint endeavor by the individual and
management to course work path along which he moves toward greater personal and job growth
and responsibility. It is included on the assumption that status quo is not the status for him during
his tenure stay in the organization but rather movement from one point to the other which could
be smooth and fast with the assistance of the organization. The process serves as a motivation for
him to do what he wants to do and assures him that there are avenues for his growth and
development depending on his capability and interest.
While the ultimate aim of career planning is employee development, the process should
consider it in light of the Philippine culture. Its institutionalization, with management initiative,
helps put teeth to the process. It draws the employee to verbalize and articulate his plans that will
benefit both him and the organization.
The understanding and use of the career growth cycle operationalizes the career planning
program.
Counseling is the person-to-person relationship between a professional guide and a client in
which the former helps the latter solve his own problem.
Counseling in the work setting includes two types according to the nature of the problem:
job counseling on job-related problems and personal counseling on individual non-job related
problems.
The choice of person who gives counseling and advice depends on the depth and extent
of the problem of the employee. Deviations that occur “normally” can be handled by the work
supervisor or any staff of the human resources department. A counselor or psychologist handles
slightly abnormal cases while problems that are gravely serious are referred to a clinical
psychologist, psychiatrist or psychotherapist.
Counseling approaches, like directive, non-directive and non-coercive, mirror the user’s
assumptions about the individual’s condition when confronted with a problem and his ability to
handle himself and his problem.
Due to the preventive nature of counseling in the work setting, counseling service is
considered under the development program. It aims to assist employees to learn from problems
and grow in maturity and responsibility.
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MAINTENANCE. The first M in the training and development function is maintenance.
Maintenance means that the company invests in its employees through training and
development to enhance loyalty to the company. It also means that the firm tries to maintain
or enhance the employees’ good performance. There are various training programs a
company can provide.
The first is new employee orientation program. This program aims to provide new
employees with pertinent information about the company, specifically the following: the
company’s prevailing culture; products/services; work hours; break times; key personnel and
members of top management; the organizational chart; general policies like dress code, grace
periods, major company events, immediate supervisors, benefits, etc. more importantly, the
company vision, mission, philosophy, and values are reiterated to new employees, even
though they have discussed already during the preliminary interviews. It is also best to
introduce new employees to people they will work closely with such as those who are in the
department where they will be assigned to.
New employees should not be isolated, but immediately welcomed on their first day. As
mentioned earlier, training tries to improve or enhance the employees’ skills. Breakdown of
the training process:
1. training needs assessment
2. formulation of training objectives
3. designing of training programs
4. implementation of training program
5. validation of training technique
6. determination of appropriate training techniques
7. feedback
MOTIVATION. The second M is motivation. Motivation in the training and development
function discusses the different techniques in training and developing employees to boost their
morale and encourage them to grow and to perform better.
Usually, the success of training programs rests on the caliber of the trainers selected.
Therefore, the selected trainers should effectively communicate the content of the program.
Trainers should not only be articulate but also tactful, flexible, and innovative. There are various
training techniques which are subdivided into cognitive and behavioral methods. The selection of
a training method depends on the background and skills of the trainees. Trainers also need to
understand the advantages and disadvantages of each method.
Cognitive Methods. It pertains to the rules on how to carry out, demonstrate, or relate
concepts. The methods aim to make changes in the participants’ attitude and for them to gain
additional knowledge. Types of Cognitive Methods:
1. lecture
2. demonstration
3. discussion
4. computer-based training
5. programmed instruction
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6.
7.
8.
9.
virtual reality
distance training
brainstorming
worksheet
Behavioral Methods. These methods provide practical training for participants and are
used to develop their skills. Types of Behavioral Methods:
1. games and simulation
a. business games
b. case study
c. equipment simulators
d. behavior modeling
e. in-basket technique
f. role-playing
2. management development programs
a. goal-setting
b. team-building
c. executive coaching
d. executive mentoring
e. job rotation
3. on-the-job training
a. coaching
b. mentoring
c. job rotation
4. validation of the training program
5. implementation of the training program
a. lead by example with high integrity and credibility
b. know the would-be participants
c. exercise humility
d. use humor sparingly
e. show enthusiasm
f. get the support of top management
6. feedback
MEASUREMENT. The last M in the training and development function is measurement.
Evaluating the training and development programs requires a cost-benefit analysis. Measurement
here is the end result of the training and development programs. The most widely used training
evaluation model is Donald Kirkpatrick’s four levels of evaluation model. A training program is
evaluated according to the following levels:
1. reaction
2. learning
3. behavior
4. results
Other criteria for evaluating the training and development program:
1. reactions
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2. results
3. recall
4. retrieval
The four Rs are essential for any change or modification of behavior on the part of the
employees, and thus, they confirm, that a training or development program is a success.
The Phillips model measures training outcomes in five levels: reaction, satisfaction and
planned action; learning; application and implementation; business impact and return on
investment (ROI).
Performance Management and Employee Movement
The performance management system is what Pulakos calls the Achilles heel of HRM.
Not many companies in recent years have paid much attention to this particular human resource
function. The clamor for an effective performance management system has become increasingly
important due to globalization, increased competition, and other social and economic pressures.
Performance management is the process by which managers, supervisors, and
executives assess the performance of employees to ensure that it accords with the company’s
objectives. Armstrong defines it as “a systematic process for improving organizational
performance by developing the performance of individuals and teams”. It is the best way of
managing and rewarding performance based on planned goals. Performance management is
effective if it identifies excellent performance, uses appropriate appraisal techniques, provides
feedback to employees regarding their performance, evaluates employees fairly, minimizes
biases, and exercise fairness.
Performance appraisal is often synonymous to performance management. It is a formal
annual assessment of employees by their immediate superiors. Periodic performances reviews
are done routinely by managers. In contrast, performance management is a continuous and more
comprehensive process of managing people. It is about motivating, guiding, and rewarding
employees, thus helping them hone their potential and improve organizational performance. The
performance management cycle shows managing performance as a continuous process. The
stages in the performance management cycle are the following:
1. planning
2. monitoring
3. reviewing
4. acting
The areas covered by planning are roles, key result areas, technical competence, behavioral
competencies, objectives, and core values of the organization.
The 3 R’s of performance management and employee movement:
1. Rewards. Rewards are tangible manifestations of a job well done or a good deed. The
outstanding performance of employees benefits the organization. Employees, who
perform outstandingly, as indicated in the performance appraisal, are rewarded by the
organization in different ways.
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2. Retention. It is the act of maintaining the employees in the organization. It entails
earning their loyalty.
3. Remuneration. It refers to payments equivalent to the value of the tasks performed. In
performance evaluation, remuneration is equated with employee movement or how
performance evaluation transforms an employee’s status.
The agreed-upon integrated objectives include corporate, functional, team, and individual
ones. Performance objectives can be done in terms of outputs and outcomes. Performance
monitoring provides a performance plan, personal development plan, and process details.
Performance reviewing has the following objectives: planning, motivation, learning and
development, and communication.
The purposes of performance appraisal involve needs assessment, employee movements,
basis for merit increases, legal concerns, development, channels of communication, and sources
of motivation. Performance appraisal techniques are divided into individual evaluation and
multiple person evaluation methods. Individual evaluation methods include the following:
graphic rating scale, forced choice technique, critical incident technique, checklists and weighted
checklists, behaviorally anchored rating scale (BARS), and essay evaluation. The multiple
person methods are as follows: forced distribution, ranking, paired comparison, 360-degree
feedback and management by objective (MBO).
The 360-degree feedback is a comprehensive assessment tool that evaluates individual
performance across all qualified raters that are associated and affected by the ratee’s
performance.
The common errors committed by raters are the halo effect, ambiguous evaluation standards,
stereotyping effect, regency effect, and primacy effect, central tendency, hard and/or easy to
please tendencies, and mirror effect.
The following areas should be included in training raters: methods, techniques and guidelines
for setting goals and objectives, documentation of performance standards, uplifting employee
morale and motivation, how to observe employee performance, how to deal with employee
resistance to performance evaluation, and providing constructive feedback, among others.
The four main types of employee movement are promotion, demotion, transfer, and
separation. The steps in demoting an employee are as follows: identify the reasons for demoting
an employee; communicate the decision to the employee; make a follow-up after demotion; and
have a contingency plan.
The types of employee transfers are production transfer, replacement transfer, remedial
transfer, and versatility transfer. The types of separation are termination with just cause,
termination with authorized cause, resignation, and retirement.
Resignation is an employee’s voluntary decision to leave the company. The reasons for
resignation are varied. Some employees transfer to other companies to obtain higher salaries and
benefits. Others consider resignation a career move and a chance to look for more challenging
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jobs and positions that maximize their skills and potential. A few opt to start and manage their
own business while a number leave the country to work abroad.
Other issues related to resignation are the following: compensation, work relationship, major
changes in the organization, organizational culture, and career development program.
Questions:
1. How does training differ from the development in terms of the expected
results or outcomes manifested by the employees?
2. How does training and development help employees in the long run? Who
would benefit more- the company or the employees? Explain.
3. What is the importance of feedback/evaluation after the implementation
of the training program?
4. What do you think is the most important reason why training and development
is a core function of HRM?
5. What is the role of top management in the effective supervision of
organizational performance?
6. How can biases in performance appraisal be avoided?
Case Study No. 2: AN HRM INCIDENT IN TRAINING AND development
TITLE: Training at the Plant
AZE Company has been manufacturing refrigerators and freezers for the last 10 years
and has become a market leader. From a mere small player, it has become a trusted brand.
Work at the plant site has three shifts. AZE employs around 1,200 employees at its plant
site in Cabuyao, Laguna. The steady demand for refrigerators and freezers, including bulk orders
from newly-established restaurants in South Metro Manila, has prompted AZE to hire workers
fro regularization every year.
Aside from this, AZE taps every summer on-the-job trainees (OJTs) from nearby schools
and employs them for the required number of hours. They are mostly students who are taking up
vocational courses in refrigeration. At least four schools near Laguna entrust their students to
AZE to acquire experience. Many were eventually absorbed by AZE for a taste of real work.
There are now students who have a degree in courses like engineering who want to get work
experience at AZE.
Every summer, these practicumers flock to AZE and fill up application forms. Because of
the large number of students who go to AZE, the first 100 practicumers are given priority. After
a brief orientation of the tasks they have to perform, they start working at the plant.
One summer, the plant experienced a series of accidents. Most of the victims, who
suffered minor injuries only, were the practicumers. The series of accidents differed from one
another. The Safety Training, manager, Mr. Alan Corro, felt the need to conduct a safety
development program.
Meanwhile, the schools’ practicum coordinators called the attention of AZE about the
lack of safety measures and asked the company to ensure the student’s safety. Mr. Corro called
up the HR and discussed the matter with the HR Corporate Training Manager, Ms. Lourdes
Nakpil.
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The HR Director, Mr. Jonathan Rigor, together with Ms. Nakpil held a closed-door
meeting to discuss what had happened. Ms. Nakpil felt that Mr. Rigor should have talked to the
top management regarding the incidents. However, Mr. Rigor believed that the incidents were
minor and decided that the top management need not be bothered by petty problems.
Questions:
1. Is there really a lack of safety measures and a safety training program that AZE
must be concerned about? Elaborate.
2. What should the Safety Training Manager have done after the series of accidents
at the plant?
3. How should the concerns of the schools’ practicum coordinators be addressed?
4. In your opinion, who is right-Mr. Rigor or Ms. Nakpil? Justify your answer.
Case Study No. 3: HRM INCIDENT IN PERFORMANCE EVALUATION AND
EMPLOYEE MOVEMENTS
TITLE: ITech and Performance Appraisal
ITechnology has been selling computer hardware, software, and other computer gadgets
and accessories for the last 12 years. Sales are steady with total figures second only to Mega CD,
the number one retailer of computer parts and accessories. ITechnology has 10 branches
nationwide and the majority has sales personnel who man the stores.
ITechnology is owned by Rolando Vasquez and his family. Because of his age, Mr.
Vasquez handed the management to his daughter, Corazon, who recently graduated with a
degree in HRM. She is planning to pursue her MBA next year.
Within a week of staying at ITech’s office in Makati and visiting its store in nearby
Glorietta, Cora found out that the sales personnel are happy and satisfied. Pay increases are given
every year. Spot bonuses are given by her father in every branch based on observed outstanding
performance every month.
However, Cora found out that the company did not practice performance evaluation. All
bonuses are based on “observed” evaluation. Cora did not want to take all this sitting down. She
believes performance evaluation is important as it would serve as the basis for many major
decisions in the future.
She went around the store and wondered. She felt that the sales personnel are happy with
their work. She thinks that something must be done to maintain their satisfaction. They deserve
to be appraised fairly. Their performance should have been equally rewarded based on fair
measures of performance.
Questions:
1. Is there really an urgency to install a performance appraisal system in ITechnology? Why
or why not?
2. Why do you think Cora felt the need to install a performance appraisal system?
3. How can the installation of a performance appraisal system help in maintaining the
employees’ high morale?
4. How did ITech survive for the last 12 years without a performance appraisal system?
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D. Final Period
Module 4: REWARDS MANAGEMENT AND EMPLOYEE RELATIONS
AND DISCIPLINE
Rewards Management
Rewards management involves the process of rewarding people. It is concerned with
the design, implementation, and maintenance of a rewards system containing compensation and
benefits with the intention of improving organizational and individual performance. Rewards
management includes financial and non-financial rewards. It also involves formulating policies
and implementing strategies to reward employees fairly and equitably according to their
contribution to the organization. It adopts a total rewards approach that considers all aspects of a
reward. It is integrated as well with HR efforts to achieve commitment, motivation, engagement,
and development of employees.
Total reward is defined by Thompson as having all tangible (salary, variable pay, and
benefits) and non-tangible (responsibility, career opportunities, learning, and development)
elements which are provided by the work itself and the quality of work life given by the
organization.
The total reward model indicates the tangible aspect, i.e., compensation and benefits are
monetary in nature, and are usually more enticing than intangible ones if a company seeks to
recruit and retain personnel. However, this aspect can be easily copied by competitors. The
intangible aspect of a total reward (e.g., learning, development, and work environment) further
enhances the tangible aspects and inspires loyalty among employees of the company. Thus, they
become loyal and devoted to the organization. It also gives satisfaction to the members of the
workforce. The combined effect of the tangible and intangible aspects of total rewards provides
the real meaning and impact of rewards on employees.
Figure 3. Total Reward Model
TOTAL REWARD
TANGIBLE
Pay
Individual
Benefits
Group
INTANGIBLE
(Basic pay, contingent pay,
cash bonuses, incentives,
shares dividends, profitsharing
(pensions, holiday pays,
health care/medical/life
insurance, outings/company
events, sports fests, leaves)
Learning and
Development
(on-the-job learning, training,
performance management,
career management)
Work Environment
(core values/philosophy,
leadership and empowerment,
achievement, job design, quality
of work life)
The three R’s, namely remuneration, rewards, and retention, are the tangible aspects of
total reward or compensation and benefits. Rewards refers to all types of compensation and
benefits that employees receive in exchange for all forms of work performance. Retention is the
ability to translate it into something that will increase an employee’s satisfaction and loyalty to
the organization. Remuneration refers to the compensation and benefits plan made by the firm.
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REMUNERATION
Remuneration pertains to the computation of compensation, a task considered to lie at the
“heart’ of the HR department’s responsibilities.
Compensation is the tangible equivalent of any work or task performed in the
organization. It can be either direct or indirect. Direct compensation refers to monetary rewards
such as salaries, wages, commissions, bonuses, allowance, and other forms of monetary
payments. Indirect compensation includes the benefits offered by companies to employees such
as hospitalization, insurance, days-off, summer outings, and sports fests among others.
The common terminologies assigned to compensation and benefits are the following:
1. Base Pay. It is the fixed and usually the largest component of the total compensation
package. Compensation professionals use the following factors in determining the
base pay:
a. Job-based pay
b. Skill or competency-based pay
c. Market-based pay
d. Combination of the three
2. Incentive Compensation. Incentives or bonuses are given to employees who achieve
certain objectives set by the organization.
3. Allowances. These are temporary add-ons to the basic pay such as rice ration,
transportation, and meal allowances, etc.
4. Overtime Pay. This is provided for work rendered beyond the normal work hours.
5. Risk Benefits. These are payments for medical, death, or disability cases that are
provided to employees depending on the risks involved in the type of jobs they
perform.
6. Retirement Benefits. These are benefits provided to employees who have reached
the compulsory retirement age after serving a company for a certain number of years.
7. Equity Compensation. Usually given to senior executives, this compensation comes
in the form of stock options.
8. Perquisites. These are extended to members of the senior management; examples
include first-class travel, lodgings, accommodations, lunch/dinner meetings, country
club memberships at company’s expense, etc.
Compensation is a primary consideration in an employees work life. It is the primary
reason why employees look for a job. They use compensation as a means to satisfy their own
needs. To earn a living is one of the objectives of a person who seeks employment. In essence, a
person’s work life starts with being employed and getting paid, and ends by being paid upon
resignation or retirement.
The criteria of an effective compensation plan are described as follows: capable of costcontainment, objective, motivating, productivity-providing, equitable, non-discriminating,
sustaining, conforms to adequate legal compliance, time-bound, loyalty-inducing, obligatory, and
secure.
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Compensation plans are influenced by the external (demand and supply of labor,
prevailing economic conditions, and government intervention) and internal (budget, employee
motivation, and employee productivity) factors. The following are the compensation strategies
used by firms: minimum average level, above average, competitive, and comparable pay
strategies.
REWARDS
Rewards entail deciding on compensations and methods of payments. To resolve the
problem or issue of compensation, many companies establish their own pay structures. A good
pay structure makes use of job evaluation.
Job evaluation is the process by which the worth or value of a job is assessed. The
purpose of a job evaluation is to compare and contrast the demands of every job. Usually, the job
evaluation is done through employee interviews conducted by HR specialists. The employee
concerned is the one currently holding the job.
The “worth” or “value” of a job is oftentimes misconstrued. There are subjective
judgments regarding this factor because it considers what a job contributes to the achievement of
organizational goals. To determine objectively the worth or values of a job, these factors are
considered: the skills required to do the job, the responsibilities that go with it, working
conditions, and the critical decision-making functions of the job.
Once the job evaluation is done, a pay structure or a hierarchy to pay levels is established.
The four methods of job evaluation include: ranking, grading system, point system, and factor
system.
Market data analysis can be obtained from various sources: general published surveys,
online data, industrial and occupational database, and special surveys.
Pay and grade structures give an organization a concrete framework that determines
where jobs can be placed in a hierarchy and pay levels. A grade structure determines the grade
hierarchy and job levels depending on difficulty. A pay structure defines the different pay
levels for jobs or groups of jobs. This is determined by job evaluation and market rate data.
Contingent pay is a pay scheme on top of the base rate and linked to any of the
following: performance, competency, contribution, or skills of employees. Contingent pay can be
applied to individuals or group.
Individuals pay includes the following: pay for performance, competency, contribution,
skill, and service.
Group pay includes team-based and organization-wide pay.
Organization-wide pay includes gain-sharing and profit-sharing.
Compensation for special work groups includes those given to the following: directors
or executives, sales staff, and manual workers or laborers.
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The common modes of payment are the following: payment for time worked, flat rates
or CBA-negotiated rates, compensation through incentives, payments based on skills, payments
based on knowledge or credentials, and special payments.
RETENTION
The third R is retention. Employees are given non-financial benefits to motivate and
make them loyal to the firm. These benefits are elements of rewards management in addition to
various forms of cash incentives for employees. The objectives of employee benefit provisions
are the following:
1. To attract and retain highly-skilled or high-performing employees
2. To promote employer commitment and loyalty to the organization
3. To fulfill some of the needs of employees
Employee benefits are divided into government-mandated and voluntary benefits.
Rewards in the form of compensation and benefits should be managed well. It is
necessary to forecast future payroll costs and budget the total rewards to be given to all
employees. The HR department should review and adjust the pay structure when necessary.
Managers should also observe transparency by communicating the reward policies to employees.
EMPLOYEE RELATIONS AND DISCIPLINE
Employee relations encompass the ultimate human resource concerns that embody a
balance between employees’ satisfaction and their efficiency as well as the attainment of
organizational goals and employee productivity. The main aspects of the employee relations
framework are the basic rights of employees and employers, labor union and collective
bargaining, grievance handling, and employee discipline.
The three P’s in employee relations are policies, practices, and prevention. The context
of labor relations is tackled in policies. Labor unions, together with collective bargaining
agreements (CBA), are discussed under practices. The last P, prevention, explains employee
violations and corresponding disciplinary actions.
POLICIES. Policies denote certain rules, rights, and procedures that both the management and
employees have to follow to maintain harmony within the organization. The elements of a
successful employee relationship are drive for commitment, harmonization of terms and
conditions of employment, emphasis on mutuality, policies, and practices for communication.
The basic rights of employees contained in the Labor Code of the Philippines include
equal opportunities for all, security of tenure, work days and work hours, wage and wage-related
benefits, safe working conditions, rest days and holidays, leaves, right to self-organization and
collective bargaining, workers’ participation and tripartism , and social legislation.
Meanwhile, the rights of employers are incorporated in the following areas: closure of
business, transfer of workers, hiring or firing, imposition of employee discipline, issuance of
rules and regulation, and management prerogatives.
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Employee policies include union recognition, collective bargaining, procedures on
grievance handling and discipline, communication policies, terms and conditions of employment,
and the employee handbook.
An employee handbook guides employees and explains in written form the company’s
vision and mission statements, corporate values or philosophy, history, policies, disciplinary
offenses and sanctions, and benefits. It also includes the key officers as well as management’s
standards and expectations regarding employee conduct and behavior. Employees are expected
to read the handbook and acknowledge that they have received and understood its contents by
signing the acknowledgment portion.
The forms of employee voice can be described as little, some, two-way, two-way plus, a
lot, veto power, and substantial.
PRACTICES
A labor organization is any union or association organized for the purpose of collective
bargaining in relation to the employees’ conditions of employment. The different kinds of labor
organizations are independent labor union, legitimate labor organization, company union,
federation and national unions, and trade associations.
The types of individuals who are eligible to form and join labor organizations are the
rank and file, supervisory employees, government employees in the civil service, employees of
corporations established under the Corporation Code, and aliens who are in the Philippines with
valid employment permits.
The employees who are not allowed to join or form labor organizations are management
employees, subversives or members of subversive organizations, and employees of cooperatives.
Both the strike and lockout are weapons of the union and management against each other during
unfair labor practice, union busting, or deadlock. The different forms of strike are the following:
legal, illegal, economic, unfair labor practice, slowdown, wildcat, and sit-down strike.
Settlement of disputes. It shall be the duty of labor conciliators to call the parties
concerned within a period exceeding forty-eight (48) hours immediately upon receipt of a valid
notice for a strike or lockout. Picketing is way of having union members protest outside the
workplace by carrying placards and banners. Picketing should be done without acts of
intimidation, violence, or coercion. The National Labor Relations Commission has the power
to issue temporary injunctions or restraining orders when necessary, but it cannot prevent
employees from peaceful picketing. When return-to-work orders are necessary, specifically for
organizations that produce products or deliver services that are of national interest such as
hospitals, the President or the Secretary of Labor can give them. All employees involved in the
strike or lockout shall return to work immediately.
PREVENTION. It refers to the company’s ability to avert anything that could tarnish the
relationship between the management and employees such as unfair calls for termination. It is
very important for a company to impose discipline among its employees. Any infractions
committed by employees should be dealt with according to its gravity.
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Employee Code of Conduct
An employee code of conduct defines acceptable employee behavior. The objectives of
having an employee code of conduct are to maintain peace and harmony among employees;
avoid litigation and lawsuits for wrongful decisions on suspension, termination, etc.; and
promote teamwork, and transparency at all levels of the company’s organizational structure.
The common employee violations are unproductive personal habits of employees,
incompetence, and misconduct. The steps in the positive discipline approach are to identify the
problem, analyze the severity or seriousness of the problem, discuss the problem or issue,
document the discussion, and follow up on the correction.
Whether the infraction is minor or not, the HR department should always ensure fairness
in handling disciplinary cases. There are several steps in the disciplinary process. The types of
employee grievances are the following: factual, imaginary, and disguised. The classifications of
grievances
are
wage-related
grievances,
supervision,
working
conditions,
seniority/promotion/transfers, discipline, collective bargaining agreement (CBA), and unionmanagement relations. The general grievance handling procedures include the interview,
investigation, research and documentation, counseling, drafting of necessary papers, hearing, and
settlement.
Conciliation is “conceived of as a mild form of intervention by a neutral third party. The
conciliator-mediator, relying on his/her persuasive expertise takes an active role in assisting
parties by trying to keep disputants talking, facilitating other procedural niceties, carrying
messages back and forth between the parties, and generally being a good fellow who tries to
keep things calm and forward-looking in a tense situation”.
Mediation is “a mild intervention by a neutral third party, whereby the conciliatormediator starts advising the parties or offering solutions or alternatives to the problems with the
end in view of assisting them towards voluntarily reaching their own mutually acceptable
settlement of the dispute”.
The most popular approach in implementing discipline is a progression of punishments
based on repetitive violations. For example, for tardiness, the first offense is a written warning.
For the second offense, it is a three-day suspension, etc.
The practice of progressive discipline promotes fairness in handling employee cases and
protects management from wrong decisions, thus preventing termination lawsuits. The steps in
the progressive discipline approach are oral reprimand, written warning, final written warning or
suspension, and termination.
The hot-stove rule was conceptualized by Douglas McGregor. It is called a hot stove
because when one touches a hot stove, the effect is instantaneous. The hot-stove rule has the
following characteristics: immediate, consistent, impersonal, and early warning and notice.
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Questions:
1. How do companies compete with one another in relation to their compensation
and benefits packages?
2. What is the role of job evaluation in the provision of total rewards?
3. How can reward policies and practices support the company’s business goals?
4. Why should there be basic rights for employees and the management?
5. How can the management and employees establish a harmonious relationship despite
the former’s implementation of employee discipline?
6. Is the progression of punishments effective? Justify your answer.
Case Study No. 4: HRM INCIDENT IN COMPENSATION AND BENEFITS
TITLE: Executive Perks and More
Many employees believe that no other company in the manufacturing industry takes care
of its employees better than the CBA Company. For the last 50 years, it has been successful in
selling many of its product categories, specifically shampoos, deodorants, feminine washes,
sanitary napkins, colognes, powders, and the like.
This recognition is due to the new CEO installed a few weeks ago. He is Mariano Nicdao,
a graduate of a reputable university who earned his master’s in business in the U.S. he is known
for his vast experience in sales and marketing. However, managing people is not on top of his
list. All costs are kept under strict scrutiny. He believes that employees have to work hard since
they are paid well; their salaries are among the highest in the industry.
The benefits enjoyed by the employees were approved by the top management under the
term of its former CEO who retired at the age of 65.
Employees believe that the time to update the salaries and benefits package, if only to
keep up with the industry has arrived. The HR has recently received its subscription on the latest
salary surveys and understood fairly well that compensations should be adjusted, specifically
with rank-and-file employees up to supervisors.
However, Mr. Nicdao issued a memorandum regarding salary upgrades only of managers
up to top executives including him without consulting the HR.
Supervisors and some rank-and-file employees were disappointed and disgusted. They
went to the HR and complained angrily. The HR director Sue Valenzuela, together with her
managers, tried to calm them down. Sue promised that she would talk to Mr. Nicdao and discuss
the concerns of the employees whose rates were not adjusted.
Questions:
1. Should the CEO make a decision regarding compensation without consulting the other
members of top management such as the HR Director? Explain.
2. Given this scenario, what should Sue do?
3. What is the right process in making decisions on compensation adjustment?
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VII. ASSESSMENT
:
Assignment/Outputs
Quizzes
Periodic Exam
Total
- 20
- 20
- 60
- 100%
VIII. REFERENCES
:
Zarate, Cynthia A., c2014. Human Resources Management. Quezon City: C & E
Publishing Inc.
Martires, Concepcion R., c2012. Human Resources Management: Principles and
Practices. Mandaluyong City: Cacho Hermanos, Inc.
Serrano, Angelita C., c2014. Total Quality Management. Manila: Unlimited Books
Library Services & Publishing Inc.
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