FAR EASTERN UNIVERSITY

INSTITUTE OF ACCOUNTS, BUSINESS

AND FINANCE
A study on the existing organizational culture and
employee behavior in PLDT Inc.

AISA JANNAH ALAWIYA BANSAO

HUM BHV SEC 9

PLDT INC.
CASE STUDY
I. Company Background

PLDT Inc., (PSE: TEL, NYSE: PHI), formerly known as the Philippine Long Distance Telephone
Company (Filipino: Kompanya ng Teleponong Pangmalayuan ng Pilipinas), is the
largest telecommunications and digital services company in the Philippines and the most known internet
service provider. The latest consolidated service revenues reported for the first three quarters of 2016 is
at ₱125.4 billion, and net income at ₱15.9 billion.

PLDT was established on November 28, 1928, by a Philippine Government act. Philippine
legislature and approved by then Governor-General Henry L. Stimson by means of a merger of four
telephone companies under operation of the American telephone company GTE. Known as Act 3436, the
bill granted PLDT a 50-year charter and the right to establish a Philippine telephone network linking major
points nationwide. However, PLDT had to meet a 40-day deadline to start implementing the network,
which would be implemented over a period of one to four years.
By the 1930s, PLDT had an expansive fixed-line network and for the first time linked the Philippines
to the outside world via radiotelephone services, connecting the Philippines to the United States and
other parts of the world.
Telephone service in the Philippines was interrupted due to World War II. At the end of the war,
the Philippines' communications infrastructure was in ruins. U.S. military authorities eventually handed
over the remains of the communications infrastructure to PLDT in 1947, and with the help of massive U.S.
aid to the Philippines during the 1940s and 1950s, PLDT recovered so quickly that its telephone subscribers
outpaced that of pre-war levels by 1953.
On December 20, 1967, a group of Filipino entrepreneurs and businessmen led by Ramon
Cojuangco took control of PLDT after buying its shares from the American telecommunications
company GTE. The group took control of PLDT's management on January 1, 1968, with the election of
Gregorio S. Licaros and Cojuangco as chairman and president of PLDT, respectively. A few months later,
PLDT's main office in Makati (known today as the Ramon Cojuangco Building) was opened, and PLDT's
expansion programs begin, hoping to bring reliable telephone services to the rural areas.
PLDT was permitted to operate during Martial Law. During the 1970s, PLDT was nationalized by
the government of then-President Ferdinand Marcos and in 1981, in compliance of then existing policy of
the Philippine government to integrate the Philippine telecommunications industry, purchased
substantially all of the assets and liabilities of Republic Telephone Company, becoming the country's
telephone monopoly. Under this monopoly, service expansion were severely curtailed or practically
nonexistent. In the Martial Law years people would apply for phone service only to wait for years and
years on end behind an impossibly long application backlog. It is not unheard of for people and small
businesses back then to barter for a single telephone line in the black market for tens of thousands of
pesos. The incumbent Singaporean Prime Minister Lee Kuan Yew referred to the situation when visiting
the Philippines during the term of President Fidel V. Ramos. He said, albeit in jest, “In the Philippines 95%
of the population has no telephone, while the remaining 5% are waiting for that dial tone.”
After President Marcos was overthrown in 1986, the company was re-privatized and Cojuangco's
son, Antonio "Tonyboy" O. Cojuangco, Jr. became chief executive. By 1995, with the passage of the
Telecommunications Act and the subsequent deregulation of the Philippine telecommunications industry,
the company has been de-monopolized.

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 In 1998, Hong Kong-based First Pacific Company Ltd. acquired a 17.5% stake in PLDT making it the
majority owner of the conglomerate. Following the acquisition by the First Pacific group, Manuel V.
Pangilinan became the new president and CEO of PLDT, replacing Cojuangco, who assumed the post of
Chairman until 2004.
In April 2016, the company, then known as the Philippine Long Distance Telephone Company,
dropped the "long distance telephone" from its corporate name and was renamed PLDT Inc. Its board of
directors approved the new corporate name to reflect on the company's new range of services, mainly
focusing on data services. On June 13, 2016, PLDT and its subsidiary Smart unveiled their new logos and
identity as part of the company's continuing digital pivot.

Mission/Vision and Corporate Values

It is PLDT’s corporate mission and vision to be the preferred full service provider of voice, video,
and data at the most attractive levels of price, service quality, content, and coverage, thereby bringing
maximum benefit to the Company's stakeholders.
Consequently, Smart is guided by a corporate vision of a world where everyone is empowered to live
more. It is inspired by its mission to enable its customers to create awesome moments in life through
mobile and digital innovations.
PLDT espouses the corporate values of:

Accountability
We take full responsibility for our actions and decisions
Integrity
We do the right thing
Fairness
We uphold justice and fair play
Transparency
We disclose accurate and prompt information

PLDT-Digitel merger
PLDT acquired 51.55% of the shares of Digital Telecommunications Philippines from JG Summit
Holdings in March 2011 with the cost of ₱69.2 Billion. Because of this, the shares of Digitel and JG Summit
in the PSE surges while PLDT's shares remained unchanged. In the deal, JG Summit will have a 12% share
in PLDT. It was finalized by the National Telecommunications Commission on October 26, 2011.

Products and Services

Enterprise
FIXED
• Voice • Data o Leased Line
o Direct Line DOMESTIC o VSAT
o Trunkline o Fiber o DSL
o Managed Services o Metro Ethernet INTERNATIONAL
o Audio and Video o IP VPN o Carrier Ethernet
Conferencing

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 o Private Leased o Security • Satellite
Circuits o Machine-to-Machine • Value-Added Services
o IP VPN and Internet of
• ICT Solutions Things Digital
o Data Center and Innovations
• Satellite
Cloud
o Big Data Solutions Digital Commerce
o Web Presence
Consumer • Online Storefront
o Managed IT Services Home • Online Marketplace
• PLDT Global • Voice
o Landline Financial Services
o US • Cards Issuance
o Prepaid
o UK o Call Cards • Merchant Acquisition
o Hong Kong • Data • Domestic and International
o Singapore o Fiber Remittance
o Malaysia o DSL • Digital Banking Solutions
o TD LTE o Loan Marketplace
Wireless • Value-Added Services o Card Security
• Postpaid and Prepaid GSM o Infotainment o Electronic Loans
• Broadband o Video Services
o TD-LTE
Digital Media and
o LTE Mobile Marketing
• Solutions • Postpaid GSM
• Premium GSM Next Communications
o Prepaid Loading
• Prepaid GSM • Toll-Free Internet
o Messaging • Broadband • Over-the-Top Service

II. Organizational Structure

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III. Existing Human Behavior Culture Practice

Sustainability at PLDT
The PLDT Group is dedicated to the service of the nation. This commitment to foster inclusive
progress and development for all also makes it essential for the organization to place sustainability at the
core of its business strategy. The principles of sustainability guide its every step and informs its decisions
on matters concerning investments, product and service innovations, organizational development,
marketing strategies, and institutional partnerships.

With its focus on sustainable growth, the PLDT Group has aligned its programs with the Philippine
Development Plan Ambisyon Natin 2040 and the country’s commitment to the United Nation’s 2030
Agenda for Sustainable Development.

The Group therefore pushes for the advancement of sustainability through the following key areas:

 Overcoming the Geographic Digital Divide

 Empowering Social Digital Inclusion
 Leading Research and Innovation for Product and Service Development
 Ensuring Customer Privacy and Data Security
 Offering Technological Solutions for Citizens and Enterprises to Reduce Environmental Footprint

This development agenda is reflected in the PLDT Group’s Five Pillars of Sustainability that are
promulgated, practiced, and instilled in its everyday corporate culture:

To strategize an effective sustainability roadmap PLDT collaborated with its stakeholders and
conducted Materiality Assessment workshops to identify the issues most important to stakeholders and
those that impact their relationship with the Group. Both internal and external factors were considered
and explored in these assessment workshops.

The exercise helped identify, assess, and prioritize the key material topics that are deemed most
relevant to the different stakeholders. The results from the workshops were presented to the PLDT Board

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of Directors who concurred and confirmed the materiality of the topics and their significance to the
operations and success of the PLDT Group.

From the materiality matrix, the Group was then able to categorize them under the Five Pillars of
Sustainability, and then identify the standard monitoring and reporting protocols that would be applied
and used for this Sustainability Report:

Corporate Governance & Ethics

At the core of PLDT’s sustainability approach is good corporate governance. And it is the Board of
Directors that provides strategic leadership in the company and oversees the corporate governance
framework that guides business conduct in order to foster long-term success, sustain competitiveness,
and create value for stakeholders.
Recognizing that a values-based culture is integral to good corporate governance, PLDT have
education and communication initiatives that strengthen corporate culture at every level. They provide
continuous corporate governance training for directors and senior management to set the right “tone at
the top.” This includes annual corporate governance enhancement sessions since 2007, with local
and international experts who shared insights on current and emerging corporate governance issues.
At the same time, PLDT make the effort to “shape the middle” as executives undergo workshops
and refresher courses on ethical decision-making. Moreover, all personnel go through a corporate
governance orientation at the beginning of their engagement.
Education and training are further supplemented by the production and dissemination of relevant
communication materials, including corporate governance news briefs, articles, thematic posters,
calendars, and newsletters.

List of Corporate Governance Training/Seminars for BOD

2016 Cyber Security in the 21st Century: The Threat Landscape
2015 Data and Information Rules: What the Board and Management Should Know

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 2014 What to Expect from the SEC
Corporate Governance Trends and Current Topics in Developed Economies and their
Application in the Philippines and other ASEAN Countries
Corporate Governance Requirements Under US Laws and Regulations and Foreign
Corrupt Practices Act (FCPA) of 1977
2013 Ensuring Effective Board Oversight of Ethics and Compliance: Emerging Trends and
Lessons Learned
2012 Navigating the New World of Business
2011 Performance, Principles, and People
2010 Board of Directors’ Fiduciary Duties and Role in Relation to Enterprise Risk Management:
Best Practices in Dealing with the Agency Dilemma and Setting a Company’s Risk Appetite
2009 Governing in a Global Crisis: Lessons from the Great Recession
2008 Current Governance Environment in the United States and Ethics and Tone at the Top
2007 Corporate Governance Trends in Asia

Enterprise Risk Management

The Board oversight over the risk management strategy and practices is an essential aspect of its
sustainability strategy. Aiming towards long-term sustainable growth, the Board ensures that appropriate
risk management systems are in place and implemented. Its risk management philosophy is encapsulated
in the PLDT Group Risk Management Policy Manual that the Board approved in 2011.
The policy specifies the Enterprise Risk Management (ERM) Framework adopted that requires
both PLDT and Smart to select and implement a treatment strategy to address high-priority risks. Suitable
risk treatment strategies and action plans are developed by operational units. The risk owner shall be
responsible for coordinating and engaging the different teams involved in the implementation of the
strategies and action plans.
Appropriate resources are then made available to ensure these plans are implemented
effectively. The proper implementation of treatment strategies are documented, creating an audit trail
for periodic audits by internal and external auditors to test compliance with agreed upon policies and
strategies. The policy is operationalized through PLDT’s Group Enterprise Risk Management Department
(GRMD) which develops and manages a comprehensive integrated risk management program
implemented across all levels of the organization. It uses an ERM process based on the ISO 31000 standard
on risk management.

Business Continuity Plan

Because of their frequency and impact, natural disasters are considered one of the top ten key
enterprise risks. Management of this risk is given top priority. The strengthening of the Business Continuity
Plan and the formalization of the Crisis Management Plan are put in place as a control for this risk. There
is also a regular review and update of insurance coverage and arrangements. Despite this effort, financial
losses are still inevitable.
PLDT therefore deemed it necessary to institutionalize a Business Continuity Plan that would
futureproof the organization and prepare a line of defense that would minimize impact and restore
normal operations and service delivery as quickly and safely as possible after such events.

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 PLDT moved to standardize a Business Continuity Management System (BCMS) dedicated to
organizational resilience through the protection of critical business functions which cares for its people,
maximizes stakeholder value, enhances corporate competitiveness, and embodies corporate social
responsibility. Thus in 2015, the Enterprise Business Continuity and Resilience Office (BCRO) was created
under the Office of the PLDT President and CEO to manage strategies and programs that would ensure
PLDT’s resilience and preparedness for all types of operational and business disruptions. The BCRO is
composed of four strategic divisions, namely:
• Business Continuity Analytics and Strategy
• Business Continuity Tactical Response Engineering
• Business Continuity Training and Testing
• Business Continuity Governance and Reporting

Strategies
A. Adopt a unified policy and create a dedicated organization to manage BCMS across the PLDT Group
• Develop and promulgate a single Business Continuity Policy establishing group-wide resilience
• Institutionalize business unit ownership of their respective roles in the Business Continuity Plan
B. Safeguard the interest of the Company by protecting its critical business functions against
predetermined disruptions
• Synergize Business Continuity Plans across the PLDT Group for critical business functions in order
to deliver high-quality and resilient telecommunication services
• Institutionalize the Business Continuity Cycle group-wide
C. Manage the program for an effective response that safeguards the interest of key stakeholders,
reputation, brand, and value-creating activities
• Equal priority on people, community, and shareholder value
• Evolve from employee disaster preparedness to the more mature level of employee resilience
• Support PLDT Group’s thrust of institutionalizing BCM in the group not only for regulatory and
commercial compliance but also for corporate resilience and competitiveness
D. Reiterate the organization’s CSR commitment as a critical infra structure utility company that provides
resilient and robust communication services during both regular and emergency situations, cognizant of
the role of telecommunications in national development.

Employee Statistics
PLDT have been responsive in managing their people and have been implementing strategic
human resource planning programs the past years to effectively align and match people and skills with
the positions required by the evolving business.
Of the 2,076 who availed of PLDT’s manpower redundancy program within the last five years,
68.2% came from Supervisory level, 25% from Rank and File, 5.4% from Executives, and 1.35% from Top
Officers. Of that total, 22.64% or 470 people availed of the program in 2015. The biggest movements were
in 2010 and 2012 which together accounted for almost 64% of the total availments. All these
organizational changes are meant to achieve efficiency and effectivity. They are managed professionally,
and separations are handled fairly.

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 In April 2015, PLDT held a two-day event for retirees entitled “Retirees’ Fair: Taos Pusong
Pasasalamat” to inform the retirees of their separation requirements, benefits and investment options,
as well as offer inspiration for enjoying the new chapter in their lives. Because of their values-based
culture, PLDT and Smart remain preferred choices of jobseekers in the industry. As of end-2015, employee
data show that in terms of diversity, the Wireless business offers a level playing field as women to men
ratio is nearly 1:1 and a good 47.73% of top management positions are held by women. For PLDT, 34.34%
of the population are women and 29.63% of top management are women. Meanwhile, in terms of age,
Fixed Line employees over 50 years old notably hold 34.9% of the positions, with most of them in the
supervisory level. For Wireless, the population is largely from the 30-50 yo range (60.14%).

Employee Management
Employee Compensation, Benefits, and Programs: Training and Development, Health and Safety,
Engagement and Volunteerism
Going beyond government-mandated laws on compensation and benefits, PLDT have a
compensation philosophy that espouses the following principles and objectives that are communicated
to every employee:
• The primary aim is to attract and retain quality employees
• Pay for Position, which incorporates pay for the importance of the position with respect to the
internal organization and considers the external market covering the pay practices in the industry
• Pay for Performance, focusing on company, team, and individual performance to achieve
business goals. This provides for both short-term and long-term incentives and is given more
weight and importance than other pay components
• Pay for Person, which incorporates pay for competencies and skills of the individual that are
valuable to the company
Aside from taking compensation and benefits into consideration, both PLDT and Smart recognize
that employees have a broad range of concerns that include working conditions, skills training, career
opportunities, health and safety, and work-life balance. PLDT reports that its Environmental, Health and
Safety (EHS) programs have resulted in an accumulation of 1,539,552 safe man-hours without time lost
to accidents as of November 2015.
PLDT shoulders the medical cost for employees who become ill, inclusive of medicines, hospital
confinements, and post-operative rehabilitation. Employees are also required to undergo Annual Physical
Examination, which 80.50% of employees have complied with as of October 2015. For continued
education and information dissemination, 59 medical education fora were conducted in 2015 that
addressed common health issues such as diabetes, hypertension, and cardio-pulmonary disease.
PLDT also ensures that work-life balance is achieved by promoting sports and recreation programs
with 134 events including talent shows, voice, theater and dance workshops, song writing, basketball,
bowling, volleyball, badminton, track and field, Frisbee, dodgeball, table tennis, football, billiards, tennis,
chess, darts, yoga, family fun day, and fitness/wellness programs that covered and engaged about 96% of
employees as of November 2015.

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 As mandated by law, PLDT regularly reports to the Bureau of Working Conditions of the
Department of Labor and Employment the following: its Annual Medical Report, Annual Work Accident/
Illness Exposure Data Report, and Report on Health and Safety Organization.

Training and Skills Development

PLDT has a Training Development and Career Center that offers programs for all employees such
as behavioral, business skills, telecoms and IP technology, business systems, as well as supervisory and
leadership training. A lot of these are held at the Telecommunications Training and Education Center
(TelTEC) at PLDT’s Innolab Building in Mandaluyong City. TelTEC houses a good number of standard
training rooms and technical training laboratories, a well-equipped corporate library, as well as dorm
facilities.

“At the Innolab, employees may avail of relevant training modules designed to enhance their
business and management skills.”
As of September 2015, PLDT’s Training Development and Career Center produced 5,592
classroom-trained graduates and 5,254 computer-based training graduates. Total employees trained
numbered 10,846. Training is delivered by 34 full time trainors and more than 100 resource persons from
training service providers.
Aside from organizing employee engagement activities, PLDT and Smart also understand the
importance of encouraging the spirit of volunteerism for well-rounded development and personal growth
of employees. Caring about others and helping out in the community make the work more meaningful
and psychologically rewarding. PLDT and Smart are proud of the work and initiatives of employee
volunteers – PLDT’s Employee Volunteers Group and Smart’s employee volunteers. From blood donation
drives, to tree planting, to coastal clean-ups, and all other community service projects, PLDT and Smart
volunteers can be relied upon to answer the call for help.
PLDT also encourages the spirit of volunteerism in its iCare Program as it asks employees to be
proactively involved in reporting issues such as cable theft or sagging wires and cables or leaning poles in
their communities that would affect the quality of the company’s service. The program includes
recognition of employees’ contribution and reports that have helped improve the company’s service
delivery every year.

IV. Theories of Human Behavior related on the existing practices

PLDT’s Corporate Governance & Ethics essentially follows the idea of knowledge management.
Knowledge management includes any structured activity that improves an organization’s capacity to
acquire, share, and use knowledge in ways that improve its survival and success. From their annual
corporate governance enhancement sessions, I reckon that PLDT is a learning organization, they actively
apply knowledge management—because they actively seek out knowledgeable people, supports
knowledge sharing and creativity, and encourages employees to quickly transform that knowledge into
valuable services. Even after services have been created, the organization learns from feedback about
how the public uses those services.

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 Another theory that PLDT’s Corporate Governance & Ethics follows is Organizational learning. The
stock of knowledge that resides in an organization is called its Intellectual capital, which is the sum of
everything known in an organization that gives it competitive advantage—including its human capital,
structural capital, and relationship capital. To maintain this valuable stock of knowledge (intellectual
capital), organizations depend on their capacity to acquire, share, and use knowledge more effectively.
This process is often called organizational learning because companies must continuously learn about
their various environments to survive and succeed through adaptation. The “capacity” to acquire, share,
and use knowledge means that companies have established systems, structures, and organizational values
that support the knowledge management process which is in PLDTs case their annual corporate
governance enhancement sessions that dates back to since 2007.

PLDT’s Enterprise Risk Management follows Maslow’s Needs Hierarchy Theory. Maslow’s Needs
Theory is a motivational theory in Psychology that shows a ‘hierarchy of needs’ within a pyramid. At the
bottom of the hierarchy are the psychological needs, next safety needs, then belongingness, esteem, and
at the very top of the hierarchy is self-actualization. The Enterprise Risk Management mostly follows the
theory of safety needs. In Maslow’s theory, safety needs are the need for a secure and stable environment
and the absence of pain, threat, or illness which is basically what PLDT’s Enterprise Risk Management is
all about. To quote,

“The PLDT Group operates in a complex and dynamic business environment which gives rise to
a variety of risks that can be both threat and opportunity. Recognizing that these risks are an
integral part of its business, the PLDT Group is committed to managing its overall risk exposure
in a systematic way and in such a manner that supports its strategic decision-making process.”

Enterprise Risk Management (ERM) does not only focus on identifying and preparing for dangers
that may interfere with an organization’s operations and objectives. In modern businesses, they face a
much more diverse collection of obstacles and potential dangers and the management of these dangers
also falls under ERM. These potentials for exposure include crucial risks such as reputation, day-to-day
operational procedures, legal and human resources management, financial, and other controls related to
the Sarbanes-Oxley Act of 2002 (SOX), and overall governance. So ERM also focuses on the safety of its
employees and not just mainly on the sustainability of the company when in the face of danger.

PLDT’s Employee Statistics basically covers how the company has been effectively managing their
people with aligning their skill set to the correct positions required by the evolving business. This follows
the theory of Job design. Job design is the process of assigning tasks to a job, including the
interdependency of those tasks with other jobs. The employee statistics mentioned PLDT’s manpower
redundancy program which were mainly meant to achieve efficiency and effectivity in the organization. I
am actually taking one law subject this semester and got intrigued into researching more about these
redundancy programs. I found out that according to Nicolas and De Vega law offices website,

“The Supreme Court has defined redundancy, for purposes of the Labor Code, as a condition
which exists where the services of an employee are in excess of what is reasonably demanded by the
actual requirements of the enterprise. Succinctly put, a position is redundant where it is superfluous, and
superfluity of a position or positions may be the outcome of a number of factors, such as over hiring of

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workers, decreased volume of business, or dropping of a particular product line or service activity
previously manufactured or undertaken by the enterprise.

In another case, the Supreme Court stated that redundancy in an employer’s personnel force
necessarily or even ordinarily refers to duplication of work. That no other person was holding the same
position that private respondent held prior to the termination of his services, does not show that his
position had not become redundant. In such cases, the Supreme Court held that the employer has no legal
obligation to keep in its payroll more employees than are necessary for the operation of its business.

However, employer must show adequate and convincing proof that the intended reduction of
workforce or the abolishment of positions were unnecessary. In other words, it is not enough for a
company to merely declare that it has become overmanned. It must produce adequate proof that such is
the actual situation to justify the dismissal of the affected employees for redundancy.”

Basically, what the website is mainly trying to say is that the redundancy programs are
implemented mainly for reducing cost and aligning the composition of work force which is identical to the
idea behind Job design. The organization goal of Job design is to create jobs that can be performed
efficiently yet employees are motivated and engaged.

Employee Statistics also covered investment options for their retiring employees which somehow
follow suit the theory of Stock Options. Stock Options are a reward system that gives employees the right
to purchase company stock at a future date at a predetermined price. While Investment Options is
building a portfolio with a mix of investments that would provide a regular stream of income as its prime
importance. They are similar in a way that both are exercised to reward employees. They are also similar
in that both involves money but the purpose of money for both cases are very different. In investment
options, money is mainly set aside for future use while in stock options money is put into a fund for
productive uses. Investment options are also made to fulfill unexpected expenses or urgent money
requirements while stock options are made to generate returns over a period that can help in capital
formation.

Lastly, Employee Statistics covered diversity in the workplace which follow suit the theory of Team
Diversity. In the textbook it mentioned that Homogeneous teams are teams that include members with
common technical expertise, demographics (age, sex), ethnicity, experiences, or values. Heterogeneous
teams are teams that include members with diverse personal characteristics and backgrounds. Both
homogeneous and Heterogeneous have advantages and disadvantages, and their relative effectiveness
depends on the situation.
Today, many countries are experiencing increasing levels of racial and ethnic diversification.
Women now account for nearly half of the paid workforce in the United States—more than double the
participation rate a few decades ago. Gender-based shifts continue to occur within many occupations. For
example, women represent 59 percent of accountants in the United States, compared to just 17 percent
in 1960. Similarly, the percentage of women enrolled in medical schools has jumped from 9 percent in
1970 to almost 50 percent today.

Diversity presents both opportunities and challenges in organizations. In some circumstances and
to some degree, diversity can become a competitive advantage by improving decision making and team
performance on complex tasks. For many businesses a diverse workforce also provides better customer
service in a diverse society. But several experts suggest that the benefits are more subtle and contingent

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on a number of factors. In fact, the general conclusion is that most forms of diversity offer both advantages
and disadvantages. Diverse employees usually take longer to become a high-performing team.
Communication problems also always exist between people from different backgrounds. Diversity can
also be a source of conflict, which can lead to lack of information sharing and, in extreme cases, morale
problems and higher turnover.

PLDT’s Employee Management covers compensation, employee safety, and work-life balance.
PLDT’s Pay for Position, Pay for Performance, and Pay for Person noticeably follow the theories under
financial reward practices mentioned in the book. The Pay for Position follows Job Status-based rewards,
Pay for Performance follows Performance-based rewards, and lastly the Pay for Person follows
Competency-based rewards.

PLDT’s Pay for Position incorporates pay for the importance of the position with respect to the
internal organization and considers the external market covering the pay practices in the industry. It is
exactly the same as Job Status-based rewards. Almost every organization rewards employees to some
extent based on the status or worth of the jobs they occupy. Job evaluation is commonly used to rate the
worth or status of each job, with higher pay rates going to jobs that require more skill and effort, have
more responsibility, and have more difficult working conditions. Aside from receiving higher pay,
employees with more valued jobs sometimes receive larger offices, company-paid vehicles, and other
perks.

Job status—based rewards maintain feelings of equity (people in higher-valued jobs should get
higher pay) and motivate employees to compete for promotions. However, when companies are trying to
be more cost efficient and responsive to the external environment, job status–based rewards potentially
do the opposite by encouraging bureaucratic hierarchy. These rewards also reinforce a status mentality.
Furthermore, status-based pay potentially motivates employees to compete with each other for higher-
status jobs and to raise the value of their own jobs by exaggerating job duties and hoarding resources.

The Pay for Performance focuses on company, team, and individual performance to achieve
business goals. This provides for both short-term and long-term incentives and is given more weight and
importance than other pay components. Performance-based rewards can be divided into individual, team,
and organizational rewards.

In Individual Rewards, there are bonuses, commissions, and piece rate systems. In team Rewards,
bonuses are mostly given and gainsharing plans. Gainsharing plans are a form of team-based
compensation that calculates bonuses from the work unit’s cost savings and productivity improvement.
Gainsharing plans tend to improve team dynamics, knowledge sharing, and pay satisfaction. They also
create a reasonably strong link between effort and performance because much of the cost reduction and
labor efficiency is within the team’s control.

In Organizational Rewards, organizational bonuses, ESOPs, stock options, profit-sharing are

usually given out. Employee stock ownership plans (ESOPs) encourage employees to buy shares of
company stock, usually at a discounted price or with a no-interest loan. Employees are subsequently
rewarded through dividends and market appreciation of those shares. Whereas ESOPs involve actually
purchasing company shares, stock options give employees the right to purchase shares from the company
at a future date at a predetermined price up to a fixed expiration date.

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 Profit-sharing plans, a third organization-level reward system, calculate bonuses from the
previous year’s level of corporate profits. A fourth organization-level reward strategy, called balanced
scorecard (BSC), is a goal-oriented performance measurement system that rewards people (typically
executives) for improving performance on a composite of financial, customer, and internal processes, as
well as employee factors. The better the measurement improvements across these dimensions, the larger
the bonus awarded.

PLDT’s Employee management also tackled employee safety which again follow suit Maslow’s
Theory of Safety Needs. PLDT reports that its Environmental, Health and Safety (EHS) programs have
resulted in an accumulation of 1,539,552 safe man-hours without time lost to accidents as of November
2015. PLDT also shoulders the medical cost for employees who become ill, inclusive of medicines, hospital
confinements, and post-operative rehabilitation. Employees are also required to undergo Annual Physical
Examination, which 80.50% of employees have complied with as of October 2015.
The Employee management also mentioned work-life balance which obviously follow suit the
theory of Work-life Balance. Work–life balance is minimizing conflict between work and nonwork
demands and was seldom mentioned a couple of decades ago. Today, work–life balance has become one
of the most important factors in the employment relationship. PLDT ensures that Sports and recreation
activities are readily available to members of the PLDT Group to promote work-life balance among
employees.
The last existing human behavior culture practice in PLDT is their Training and Skills Development.
PLDT has a Training Development and Career Center that offers programs for all employees such as
behavioral, business skills, telecoms and IP technology, business systems, as well as supervisory and
leadership training. PLDT understand the importance of development and personal growth. They have
rolled out comprehensive training programs designed to build and enhance the skills set of their talent
base. Their Training and Skills Development attest to the theories of Empowerment, Self-Leadership, and
Strength-Based coaching.
Empowerment is a psychological concept represented by four dimensions: self-determination,
meaning, competence, and impact of the individual’s role in the organization. Empowerment consists of
all four dimensions. If any dimension weakens, the employee’s sense of empowerment will weaken.
Self-leadership refers to the process of influencing oneself to establish the self-direction and self-
motivation needed to perform a task. Self-leadership takes the view that individuals mostly regulate their
own actions through behavioral and cognitive (thought) activities. What is the most important
characteristic that companies look for in their employees? Leadership potential, ability to work in a team,
and good communication skills are all important, but surprisingly the most important employee
characteristic for companies is self-motivation. Most of the concepts introduced in the book have
assumed that corporate leaders do things to motivate employees. Certainly, these theories and practices
are valuable; but they overlook the fact that the most successful employees ultimately motivate and
manage themselves. In other words, they engage in self-leadership.
Strength-based coaching is a positive organizational behavior approach to coaching and feedback
that focuses on building and leveraging the employee’s strengths rather than trying to correct his or her
weaknesses. Strength-based coaching is logical because people inherently seek feedback about their
strengths, not their flaws. Strength based coaching also makes sense because personality becomes quite
stable before a person reaches midcareer, and this stability limits the flexibility of the person’s interests,
preferences, and competencies. In spite of these research observations, most companies focus goal

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 setting and feedback on tasks that employees are performing poorly. By focusing on weaknesses,
companies fail to realize the full potential of the employee’s strengths.

V. References

PLDT - Wikipedia
https://en.wikipedia.org/wiki/PLDT

Company Leadership - Board of Directors & Others | Official PLDT Website - PLDT Inc.
http://www.pldt.com/about-us/company-leadership

PLDT – ANNUAL AND SUSTAIBALITY REPORTS

http://pldt.com/investor-relations/annual-and-sustainability-reports

How to Implement a Redundancy Program in the Work Place

https://ndvlaw.com/how-to-implement-a-redundancy-program-in-the-work-place/

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