Professional Documents
Culture Documents
HRM All in
HRM All in
T Personnel or Human Resource Management i F Busting, breaking and driving the labor
is a relatively new field in the Philippines. unions out are just one of the roles of the
personnel or human resource manager.
T The variety of operations at work and the He serves as a guide and confident to
increase in size of personnel management in management supervisors and employees. He
the Philippines. must be well-informed about employee
attitudes and behavior which may affect the
company. Adviser
F The Industrial Peace Act of 1983 is also
known as the Magna Carta of Labor. .
He represents the mangement in negotiating
labor contracts or attends negotiations with
F The company program concerning employee unions in an advisory capacity.Negotiator
benefits remain the same throughout the years
and that makes their administration easy to
handle. He deals with the general public, which
includes the employees, the unions
and the community. Public Relations Man
T Personnel Management is an art because
personnel managers make decisions ‘at the
right time with the objective of achieving
He provides services to all employees and
desired results.
helps them obtain facilities with goverment
agencies like SSS, Philhealth that makes
employment more. Provider of Service .
T A personnel manager should also establish
good relationship between the management
and employees by keeping the lines of
communication open.
He helps the company project a favorable and T The final component to the strategic
positive nage to the community. He must be management process is that of Strategy
well informed of the activities and evaluation and control.
developmentsin the environment. Promoter of
Community
F Intended strategies consist of strategies that
evolve from the grassroots of the organization
He sees to it that labor laws and government and can be thought of 2a what the
regulations are properly complied with. He organizations actually do.
should also know how a policy is made and
administered. Administrative Officer
F Emergent strategies are the results of the
rational decision making by top management
He counsels employees from his knowledge as they develop strategic plans.
and training in human relations and the
behavioral sciences because of his familiarity
with company operations. Counselor T Routine reports are human resource date
summarized on a schedule basis like current
Quiz#2
manpower status, regular employees,
T Strategic planning is the determination of the contractual employees, supervisors and
overall organization purpose and goals and managenal employees on a regular payroll.
how they are to be achieved.
The use of so many techniques sometimes The linking of the recruiting activities to the
leads to the gathering of so much information. organization’s strategic objectives. career
Then the techniques do not get to be applied development system
effectively. This makes the techniques serve as
the trap rather than the means for action.
technique over-load The information regarding the personal details,
qualifications and work history of each
employee are stored in the computer that
It is the process of combining the factors for allows the HR manager to quickly locate
attaining a changed situation in the potential candidates within the organization’s
establishment of condition in the physical or work force. computerized record system
social environment. organizing
T Selection is deciding which applicant has the It determines the selction procedure on how to
personal qualities that match the job hire the most qualified applicant for the specific
requirements. job. HRD
T Effective Testing secures the use of validated It assesses the personal traits such as the
testing materials, proper administration, physical appearance, groonung and quahties
checking and interpretation made by credible, Ike trainings and educational background of the
individuals. applicant. preliminary screening
T The use of language, gestures and voice It screens physical capabilities of the
inflection are taken into consideration during Executive/Manager — applicants in performing
interviews. These could be contributory factors the job. physical examination
to fully assess the individual's fitness to the job.
1. Disrespect for the position and those 5. Wage and salary management
who perform it; · Job evaluation
· Wage and salary survey
2. The low position in the organization; · Executive compensation
REWARDS AND BENEFITS FOR THE 2. Supervisory level – higher level depends
PERSONNEL MANAGER on the ability and capability of the personnel
assistant. The traits/skills are:
1. Car plan or free use company a. Skills in writing job
transportation description, job analysis, & job
evaluations.
2. Unlimited/limited use of gasoline and b. Knowledge of employee
free maintenance check-up benefit programs related to
vacation, sick leaves, pension
3. Company cellular phone
etc.
4. Representation Allowance/Meal c. Skills in interviewing
allowance applicants and counselling
employees.
5. Education Scholarship/Attending d. Skills in testing and
conventions and seminars interpreting test results and
making recommendations.
CAREER ADVANCEMENT/ OTHER e. Job evaluation and wage
PROFESSIONNAL OPTIONS FOR administration skills and relating
pay to the differences in job technology without which competitive
requirements. advantage could hardly be possible.
f. Skills in determining training
needs; develop training module · Employees need to be trained and
g. Skills in basic research developed and we need to dismantle the
related to man power planning. bureaucratic structures that limit employee’s
ability to innovate and be creative.
Training is the process where people officers and corporate goals and
acquire capabilities to aid in the achievement of objectives, its product and services and other
knowledge, skills or behavior that are critical for other services available to employees and their
day activities.
5. Introduce the employee to co-workers and
the company working environment.
Orientation: Training of new employees
6. Safety rules and health programs.
Orientation is the planned introduction of
new employees to their jobs, coworkers, and
The purpose of orientation of new
the organization. Ihe employees need to know
employees — The overall goal of orientation is
the company policies, rules and regulations
to help new employees learn about the
and the company direction in order to adapt to
organization as soon as possible so that they
the new working environment. The systematic
can begin contributing to the company's goals
approach to orientation requires attention to
and objectives. From the perspective of the
Attitudes’ behaviors and information that new
employers and the employees, the orientation
employees need.
process has the following purposes.
Orientation to be meaningful, requires
cooperation among individuals in the HR and
I. Productivity enhancement — Both the
other managers and supervisors. The HRD has
employer and employee want to start right and
to design the orientation topics:
become productive as soon as possible.
1. Company policies, rules, and regulations —
These coyer reporting for work time
2. Turnover’s reduction — Employees with
effective orientation programs tend to stay 3. Understanding of the Customer Needs —
longer with the company. Fast employee's The global market is quality competitive.
turnover rate affects productivity and efficiency.
One of the key characteristics of
3. Organization effectiveness - Well-oriented training system that contribute to
employees can immediately competitiveness is that they are designed
contribute to the goals and objectives of the according to the instructional design process. It
organization. refers the systematic approach for the
development of training programs. The
4. Favorable employee impression — A good following steps are integral instructional
orientation program creates a processes:
favorable impression of the organization and its 1. Conducting needs assessment
work. a. Organizational analysis
b. Person Analysis
5. Enhancement interpersonal acceptance - c. Task Analysis
It tries to ease the employee's entry in the work 2. Ensuring employee's readiness for
group. Employees often of concerned about training
meeting new people in the work force. a. Attitude and motivation
b. Basic skills
A Systematic Approach to Training 3. Creating the learning environment
a. Identification of training objectives
Training is moving its focus to teaching and training outcome
employees specific skills to a broader focus of b. Meaningful material?
creating knowledge. Training is used to gain a c. Practice
competitive advantage and viewed broadly as d. Feedbacks
to create an intellectual capital. The e. Observation of others
development of intellectual capital includes the f. Administering and coordinating
following: programs
4. Ensuring transfer of training
1. Basic skills — Skills needed to perform a. Self-management strategies
one's job effectively. b. Peer and manager support
5. Selecting training methods
2. Advanced skills — The use of technology a. Presentational methods
to share with other employees. b. Hands-on methods
c. Group methods a. Organizational Analysis — the
6. Evaluating training programs specific source of information and
a. Identification of training outcome operational measures or an
and evaluation designs organization level needs analysis,
b. Cost-benefit analysis which include the following:
● Grievances
The success of any training program ● Accident record
can be gauged by the amount of learning ● Observations
occurred and is transferred to the job. Training ● Exit interview.
and learning will take place through the ● Customer’s complaints
informal work groups whether an organization ● Equipment utilization and
has a coordinated effort or not, because breakdown
employees learn from other employees. While ● Material wastage, scraps, and
this may be true to a certain extent, a well- quality control data
designed training program can give better ● Training committee, observation
results because what may be learned may not and need assessment data.
be the best for the organization.
b. Task Analysis - the job description
1. Assessment Phase and the job specifications provide
Training is designed to help the information on the performance
organization accomplish its objective. Planners expected and the skills necessary for
determine the need for training and specify the employees, to accomplish the
training objectives and the training efforts. An required work. Changes in the work
important part of the company's strategic environment due to the introduction
human resource planning is the identification of of new technology or machinery
the knowledge, skills, abilities that will be require changes in the task
needed by the employees in the future as both requirements of the position.
jobs and the organization change. Both internal c.Individual Analysis - The use of
and external forces that will influence training performance appraisal data in
must be considered when doing organizational making this individual analysis is the
analysis. The problem posed by the technical most common approach. A
obsolescence of current employees and an performance review reveals the
insufficiently educated labor pool from which to employee's inadequacy to perform
draw new workers should be confronted before certain types of task, and this will
those training needs become critical.
reveal what necessary training is work easier and is needed due to
needed to correct the weaknesses. change in work technology.
An employee's potential may mean c.Awareness of Training Needs,
further training to assume a higher Career Interest and Goals —The
position in the future. employee must be given the choice
2. Employees Readiness for Training of what training program he would
The employees must set a positive like to attend. This should be related
tone for training. That attitude toward training to his needs, career interest and
must be cultivated and made an integral personal goals in the organization as
requirement before the employee sets foot in discussed with his immediate
the training room. A positive attitude is the superior.
desire of the trainee to learn the content of the d. Basic Skills —This refers to the
training program. Motivation is related to degree of the employee's desire to
knowledge gain behavior change or skill learn the cognitive ability, reading
acquisition in the training. It is the role of the and writing skills and other
manager and the supervisor to assure that the technology changes necessary in the
employee has the highest degree of learning work environment.
before he is sent to the program. 3. The Learning Environment - Learning
involves a permanent change in
The following factors influence the behavior. For employees to acquire
motivation to learn: knowledge• and skill' in the training
a. Self-efficacy- It is the employee's program and apply the information in
belief that he can successfully learn their job, the training program needs to
the content of the training. The include specific learning principles.
employee must understand that the a. Employees need to know why they
training is for his advantage and should learn —They must
learning gain could be an asset for understand why they have to attend
the future advancement. the training program. The objective
b. Understanding the Benefits or and purpose must be made clear to
Consequences of Training — The the employees.
employee must understand that the b. Employees need to use their own
training is related to his job, personal experiences as bases for learning
and career benefits as it may include - Training could be meaningful if it is
process or procedures to make his linked to their current job
experiences and tasks. The lessons
should be presented on the level of not be readily established, as many other
employees' understanding. factors must be considered such as the liability
c.Employees need to have the and experience of the learner and the
opportunity to practice —The complexity of the things to be learned. The
opportunity to practice the learning personnel manager, with the cooperation of the
should be provided in the program. line supervisors is in the best position to
Practice makes perfect as the saying establish what and how much training is
goes. needed.
d. Employees need feedback — The
employees need to know how they The need for training is usually indicated in
are meeting the training objectives. the following instances:
Feedback should focus on specific 1. When required skill is not possessed
behavior and should be immediately by anyone in the work force.
communicated to the employee. 2. When an employee's performance is
e. Employees learn by observing and below standard, but he has the
interacting with others — potential to improve the productivity;
Community of practice refers to a 3. When morale or production is low;
group of employees who work 4. When there is a fast turnover of the
together to learn from each other and personnel;
develop a common understanding on 5. When the rate of absenteeism or
how to get the work done. accident is high;
f. Employees need training programs 6. When restiveness or dissatisfaction
to be properly coordinated and mounts;
arranged. Coordination is the most 7. When supervision is lax;
important aspect of training 8. When new technology is introduced.
administration. It means coordinating
activities before, during and after the Training needs may be ascertained by
program. considering the following questions:
1. Is there a problem to be solved?
Analyzing Training Needs 2. Where does it exist (which
The immediate and specific needs of a department)?
company are determining factors in the 3. Who need' the training?
selection of the training courses and materials. 4. What is the nature of the training?
Standard as to the amount of training that (remedial or improvement required
should be provided for each type of job may by the situation)
philosophies and alternative solutions or
The subject matter is best determined processes.
by a survey of company heeds with the help of b. Hands-on Training—This refers to
a questionnaire and job analysis and by the training method that require on-the- job
examining various records pertaining to cost, training, simulation, business games, case
labor turnover, absenteeism, and other relevant studies, behavior modeling, interactive videos,
factors in the Organization. The cooperation of and web-based training.
line supervisors in determining needs and c. Group Building Method — It helps
priorities will be necessary. trainees share ideas and experiences, build
group or team identity, understand the
4. Transfer of Training dynamics of interpersonal relationship, and get
Transfer of training is the practical application to know their own strengths and weaknesses
of what was learned in the program. Immediate and those of their co-workers. Various training
supervisors and peers support opportunity to techniques are available to improve workgroup
practice what was learned the technology in or team performance to establish new teams
the work area and self-management skills and to improve interactions among different
influence the climate of transfer. The teams. All involve examinations of feelings,
environment is the laboratory for the transfer of perceptions, and beliefs about the function of
learning. the team. This develops discussions and
5. Selecting the Training Methods - A development of plans to apply what was
number of different methods can be used to learned that will improve team performance on
help employees acquire new knowledge, skills the job.
and behavior. Technology has a major impact 6. Evaluating the Training Program -
on the delivery of training programs. New Evaluation of training compares the post-
technology allows trainees to see, feel and training results to the objectives expected by
hear how equipment and other persons the management, trainers, and the trainees.
respond to their behavior. The multimedia has Training is Often done without any thought of
greatly changed the training landscape and measuring, evaluating, and seeing how well it
training now could be less costly. works after. Training is both time-consuming
a. Presentation Method — is the and costly and therefore evaluation must be
passive receipt of information that includes the done. Training assessment will measure the
traditional instructions, distance learning and benefits derived from the activity• What the
audiovisual techniques. These are ideal for employees learn is directly related to what they
presenting new facts, information, different earn; hence, evaluation of training is put into
practice.
One way to evaluate training is to and after the training can do the
examine the cost associated with the training evaluation.
and the benefits received through cost-benefit
analysis. The best way is to measure the value Criteria for Evaluation, of Training
of the output before and after the training. Any Training effectiveness should be
increase represents the benefits resulting from assessed on the basis of solid grounds.
training. Sometimes trainers and managers rely on
a. Learning — It represent the level of superficial employee reactions. If trainees
how well the trainees have learned applaud the resource person, the lecture or
facts, ideas, concepts, theories, and demonstration, it is a success. If they are
attitudes. Tests on training materials happy to have -taken the course that is
are commonly used for evaluating enough. If notices that on the first day back on
learning and can be given before and the job they seem to be using the skills
after training to compare results. learned, one may conclude that the training
b. Behavior—There must be a change money was well spent. Those conclusions are
in the work attitude and behavior of entirely wrong. One should look at long-term
the trainee after the training. performance, not immediate superficial results.
Observable behavior must be
measured in terms of work Training programs are usually evaluated on
improvement, increased work output, the basis of their intended objectives. Five
and work effectiveness. The trainee steps to a meaningful evaluation:
must be able to display a better look 1. Determine what to Measure. Decide
at the work environment and before you begin training what you want
increased productivity must be to change. The number of customer
observed. Management should complaints? The rate of scrap? The
observe performance as a gauge to number of employee grievances? The
effectiveness of training. number of quality defects?
c. Results —Employer evaluate results 2. Establish the Base line. Make sure you
by measuring effects of training on know the level of performance before
the achievement of organizational training begins. This allows you to make
objectives. Because results such as a legitimate comparison to determine
productivity, turnover, quality, time, training effects.
sales volume, and cost are relatively 3. Isolate Variables. One variable is the
concrete, comparing records before Hawthorne Effect, named after a
General Electric plant, that was studied
in landmark performance experiment
several years ago. The effect: Planning and Choosing a Development
Employees improved their performance Approach
simply because of the attention of the While training considers analysis as
research study — not because of any an important component of any training
changes in their working condition. program development needs analysis because
4. Measure Attitudes. This goes back to it is necessary to identify strengths and
the problem of measuring initial weaknesses of those that will be given these
reactions, but it is valuable in the overall organizational interventions. Assessment
evaluation. Did the trainees like the involves collecting information and providing
training? Did they think it was valuable? feedback on employee's behavior,
Often, they can provide valuable communication style or skills or leadership
feedback and suggestions in improving potentials as preparation for formal induction to
training techniques. the development program.
5. Measure and see what the results of the
training are in terms of the criteria you The following processes are used in the
have established. Track performance assessment:
over a long period of time so you can be 1. Assessment Centers — Employees
sure the improvement is established. are sent to assessment centers to take
examination covering personality tests,
Human Resource Development communication skills, personal inventory
Development refers to formal assessments, benchmarking, and other
education, job experiences, relationships, and examinations. The center is manned by
assessments of personality and abilities that a group of teams that assesses the
employees prepare for the future. Development individual potential for leadership and
can be thought of as the growing capabilities other capabilities or qualities that may
that go beyond those required by the current be used by the organization in its future
job. It represents the employee's ability to operations.
handle variety of assignments. Development 2. Psychological Testing — Pencil and
helps the employee prepare for other positions paper tests have been used for years to
and increase their ability to move into other determine employees' development
jobs that may be available in the future. It also potentials and needs. Intelligence test*
prepares the employee for changes in current verbal and mechanical reasoning tests
jobs due to changes in technology, work design can furnish useful information about
or new products or new type of market. factors of motivation, reasoning,
abilities, leadership styles, interpersonal committee’s cap give the employees a
response traits and job preferences. broadening exercise and can help them
3. Performance Appraisal —Performance to understand the personalities, issues
appraisal that measures the employee’s and processes governing the
potential when done properly could be a organization.
good source of development 3. Job Rotation— this is the process of
information. Observable and shifting employees from one job to
measurable Output, attitude and another. A substantial managerial time is
behavior, data on productivity, employee needed when trainees change positions.
relations, job knowledge and leadership The trainees must be acquainted with
behavior are important source of different people and techniques in each
employee information. These are usually new unit.
available in the personnel file. 4. Assistant-to-the Position —This is the
assignment of an assistant to the
Human Resources Development position who works directly under the
Approaches manager. He is given the opportunity to
In - House or on Company Site - The deal with challenging and interesting
planned activities that could be developed tasks. Studies and other tasks are
within the company or while the employee is at assigned for analysis before they are
work are those activities that will enhance given to the head for final
employees' potential to assume other jobs that implementation.
the company needs in its operation. It is 5. Job Enlargement — refers to adding
imperative that managers and supervisors plan challenges or new responsibilities to the
coordinate development efforts so that the employee's current job. This could
desired developments actually occur. The include such activities as special
following are the In-House Approaches: projects assignments, switching roles
1. Management Coaching — The within a work team or research activities.
immediate supervisor coaches he 6. Mentoring —Employees can also
subordinates employee in performing develop skills and increase their
certain functions that are necessary for knowledge about the company and its
its advancement. It combines operation by interacting with more
observations and suggestions. This is experienced organization members.
best when involves good relationships. Mentoring helps new members bring
2. Committee Assignments — Assigning together successful senior employees
promising employees to important with less experienced members.
management behavior concepts and
Off-site or Outside Development analysis. Cases are either through the
Interventions use of multi-media or case problems
This technique can be effective that are developed similar to those
because the individuals are given the pasting in the work environment. Group
opportunity to get away from the job and case analysis and presentations are
concentrate solely on what is to be learned. made, and discussions facilitate the
These interventions are usually held outside at learning experience.
the company's expense and will serve as a 4. Role Playing — Role-playing is a
break from the office monotony. development technique requiring the
The following are some of the development trainee to assumes a role in a given
programs: situation and act the behavior
1. Formal Education — the company associated with it. The facilitators
sends the employee to formal seminars, provide the script and the group
workshops and other training programs evaluate the performance. The other
offered by training consultants and participants provide comments and
agencies. Some companies send their suggestions after each performance.
employee to take advanced studies in 5. Simulation —These are business
the graduate programs in exclusive games developed by human resource
schools or take courses in foreign experts that require the participants to
countries. The condition is usually that analyze a situation and decide the best
an employee is tied to a country to serve course of action based to the given data.
the company for a number of years for
every year of outside training.
CHAPTER 6: JOB EVALUATION AND WORK
2. Team Building — These organizational
FLOW ANALYSIS
interventions are usually conducted
away from work about three to four
days. The employees are organized into A sound human resource management
team and solve common problems program requires knowing the different jobs in
related to relationships. The focus is on the company. The manager and supervisor
human relation issues and poor must get a comprehensive picture of each job
teamwork. in his organization. This involves — what each
3. Case Studies — This is a classroom worker does, how he does it, why he does it
type of training techniques that provides and under what conditions he performs his job
a medium through the application of
and what special qualifications each worker The following are the uses of job
must possess to perform his job satisfactory. analysis:
Analysis of the organizational structure is the
1. To specify he duties and
vertical and horizontal interconnections among
responsibilities of the position. It examines
jobs. We must have a thorough understanding
what the employee will perform, what skills are
of how one job relates to those above the
needed the condition which work shall be done
organization and those down the line of the
and the range of difficulty or complexity of the
organization and those at the same level of the
action.
functional areas. Analysis of the organization
structure can be a leverage to gain a 2. To provide job-oriented recruitment
competitive advantage for the company, but and selection guides. Those in the recruitment
how one does this depends on the firm's and election of employees must be familiar with
strategy and its competitive environment. A the duties and responsibilities of the vacant
major quality program is the need to identify position. To identify which applicant is most
clearly the output requirement for a particular qualified, it is necessary to determine the tasks
type of job. To design work systems that are that will be performed by the individual hired as
The Rationale for Job Analysis different jobs, which job deserves higher pay
than others.
The conduct of job analysis has behind
it several reasons that are vital to human 4. To provide information and tools for
resource management and the supervision of career planning and counselling. Career
the work to be done by the workers in the shop planning entails matching individual skills and
or the office. It is considered as the building aspirations that are or may become available in
block of anything that human resource the organization. This matching process
management does, as any personnel action requires that those in charge of career planning
requires information that is gleaned from job know the skill requirements of the various jobs.
4. Clarity and facility of language. 3. Why should the worker do the job?
This covers the reason why the employee has
5. Familiarity with organizational and
to do the tasks assigned to him and the
company policies.
purpose of the job in relation with those of
6. Good personality and good other.jobs in the organization. The tasks should
relationships with others in the organization. justify its contributions to the effective and
efficient functions in the organizational work
7. Tact and diplomacy in getting along
systems.
with others.
4 Supervision required in the job. The
details in supervision requires the amount of
Getting Process in job information
supervision involved or the assistance needed
Job analysis starts with a careful in carrying out the job, the extent of employee's
understanding of the relationship of the jobs in authority in carrying out the functions and the
the organizational structure. This relationship is extent of relationships of the job with those
concerned with the details of the job rather others in the organizational setup.
than with the worker who is assigned to do the
5. Working environmental conditions.
job.
This deals with the conditions prevailing in the
The following factors are important workplace, like exposure to hazards, heat, or
considerations in job analysis: other elements that affect the performance of
the job. This may involve in the conditions of
1. What the job requires the employee to
comfort or discomfort while the employee is
do. Job requirements involves the activities that
performing the tasks assigned to him.
workers have to do the importance of the
duties or activities. The amount of time that is
The Importance of a Job Title Job analysis focuses on the two
important data or information that managers
The correct title of a particular job is very
must have the right information about the
important in the organization. Similar jobs
nature of the employees' job. This information
performing similar duties and responsibilities
is reflective of what the employee does daily,
must have the same job titles. The title of the
weekly, monthly or annually. It also reflects the
job must clearly show the area of job activity
conditions or the working environment in the
and must show its relationships with the other
organization. These two important factors are:
jobs in the unit or department. The job
relationships will provide better job placements
in the organizational ladder thereby job
inconsistencies can be avoided. The specific
titles will clarify the employees' line of 1. The Job Description
movement in the organizational structure, and The result of any job analysis program is
they should be grouped in job families in the the writing of job description. The job
line and staff organization. Job titles must description contains the tasks, duties, and
reflect the major job functions. The company responsibilities that the job entails. This
must prepare a list, of titles of all jobs and it information is derived from the job analysis
must use standard terms for easy identification. report.
The following are suggested guidelines The following are the uses of job
in job title selection: descriptions:
1. The title must be standard used in the a. It helps identify and distinguish one
industry. job from other jobs.
Information
training, benefits administration, performance
appraisal and other related duties inherent in
2. Job Specification
the function of the department.
The job specification contains
information about the employee's qualifications
and traits required in the effective performance Specific Duties and Responsibilities
of the work assigned. It specifies the
1. Assists in the processing of
qualifications as to education, training,
application by conducting preliminary
experience and the statement as to the nature
interviews to applicants to determine their initial
of the environment where the employee is
qualification for the position being applied.
assigned.
2. Determines the qualification
This information could be used in the
requirement for the positions and makes
following personnel activities:
reports to the immediate supervisor for the
a. It serves as a guide in interviewing applicants that meet the initial evaluation.
applicants.
3. Assist in the giving of examination to
b. It is a guide in the proper selection of applicants to determine their suitability to the
the employee as to his qualifications for the position being applied for and makes reports of
proposed vacant positions. the results.
Under this method, the job analyst gives the Human Resources is the payment of the
the questionnaire and then conducts interview proper salaries and wages to all company
later. The analyst verifies the information from employees. The pay that the employees
the employees' immediate supervisor thru a receive from their employer is very reason for
structural interview. To verify further their being in the job. The pay provides them
information, the analyst interviews the with strong incentive to do their jobs well and
employee concerned. The contents of the the rate of pay indicates their status in the
questionnaire and the verified information are company. The pay determines the standard of
the bases for the writing of the job description. living and their positions in the community that
they live. It must be commensurate with their
4. Observation and Interview Method
efforts and contributions to the company’s'
This method is involved in the profitability index. The determination of the
observation of the worker at the job site and in proper level of pay is the foundation effective
their station. The observation is noted while the employee and employer relationship as a
employee is performing the tasks assigned to satisfied worker will stay longer in the company
him. Oftentimes, time and motion study is and develop a working team that could be
involved in this activity. After the observation beneficial to both parties. One way to retain
the job analyst interviews both the worker and competent employees and keep their morale
the supervisor to verify the information high is to plan salary levels so as to establish
gathered through observation and the results of uniformity of pay in relation to the job in the
the time and motion study. The results of the company and those in other business
interview, observation and time motion study establishments in the community.
are the bases of the written job description,
The function of the payroll in a company
which will be sent to the supervisor and the
is usually the wage and salary administration
employee concerned for final review and final
and it is carried out by the Human Resource
printing.
Department. The most important duty of the
Human Resource Department is to set wage condition of laborers is most wretched. When
scales high enough to attract better employees this happens, the laborers could be deprived of
and contribute to the level of profitability that those comforts which customs render as
will sustain continuous profitable operations. absolute necessities.
The level of pay must not impair profits,
however.
2. The Just Wage Theory of St.
Theories of Wages
Thomas Aquinas
Wage theories deal with the payment of
A just wage is described as wage which
labor employed in competitive enterprises.
permits the recipient worker to live in a manner
Wages represent the payment of one factor of
in keeping with his position in society. This
production that is manpower. Profits and capital
doctrine is related to social organization based
could not be attained without the manpower
on the individual in the social organization;
that has to be paid according to their
According to this theory, the workers' cost of
contribution for the acquisition of enough
living should be considered first in the cost of
capital to attain the desired profits. Wages are
production. Wages are responsible for
the contributions or are the shares paid for the
allocating labor to various occupations. This
value of land, capital and profits.
theory is the basis in the implementation of
1. Classical Wage Theory minimum wage laws. While it could not be
consistent with the minimum requirements for a
This theory is based upon the
decent living in the social organization, it
fundamental concept that labor is a commodity,
responds to the basic requirements for
and we have to pay the price according to
subsistence living. The creation of the Tri-
supply and demand. When the labor supply is
partite Board composed of Labor, Management
greater than the demand, the lower is the price
and the Department of Labor is the answer to
and when there is greater demand the higher is
the study of the implementation of just wages.
the price. The price of labor, which is called
wages, is necessary to keep the laborers to 3. The Wage Fund Theory
subsist and perpetuate their race. Wages
The wage fund theory expounded by
should not fall below subsistence level. When
John Stuart Mill and his followers is based on
the supply of labor reaches below the industrial
the Malthusian theory of population and the law
requirement, there will be a competitive bidding
of diminishing returns. This theory holds the
among employers and therefore there will be a
idea that the working capital of the nation
consequent rise in wages. When the price of
provides a fund from which wages can be paid.
the labor is below the natural price, the
The fund is to be divided by. all the workers
proportionately. When a certain group gets a bargaining theory brings about the organization
greater share of the total fund, the rest in the of labor unions. These unions bargain with
group will have less to share: An increase in management for their services. The
the wages of some through collective management then sets the discounted value of
bargaining or any other pressures will labor based on the value of output in question;
adversely affect the wages of others. Under while labor demands the living wages that they
this theory it would appear that it is futile to think is enough to sustain a decent living
attempt to increase wages. It would appear that condition. When management sets a rigid limit
when you increase the wages of other workers on the funds available for labor as it affects
in the company, it would redound to decrease operating cost and profitability; on the other
the wages of the other sectors, because the hand, labor insists on living wages for their
portion of the corporate wage fund goes to the effort. The resultant condition is either a strike
selected sectors in the organization. A or a lockout.
comment under this theory is that the fund
5. The Marginal Productivity Theory
should be elastic for all the other factors of
production such as capital, maintenance, The marginal productivity theory offers
materials and labor. It should be elastic enough the best economy explanation of the wages in
to meet the economic conditions prevailing modern industry. The supply of labor in any
conditions prevailing at the time and the given economy overall depends upon the total
could be no end to this argument. It is the survey, the Human Resources Department
government, labor and management that must should study the wage and salary data that are
sit together to determine the level of living already available. In any request for survey
wages if possible, by industry and by region. data, it could be recognized that job title alone
is not good enough for matching jobs. Each job
title should be accompanied with one
Wage and Salary Surveys paragraph job description so that it is possible
to accurately compare jobs. In addition to the
Once the worth of a job has been
base salary, the information should include
established using one of the job rating
data on shift premiums, overtime payment
systems, the actual salary to be paid for each
practices and methods of wage payment.
job must be determined. A major factor in
Some surveys also include questions on paid
making the determination is the wage survey.
holidays, vacation policies, pension benefits,
Since salaries paid by other companies have
group health cards and life insurances and
an effect on employment, morale and turnover
additional leave pays. These data are needed
rate, close attention is paid to the salary that is
for more analysis of the total pay structure and
prevailing in the community and industry for
its relation to other company benefits.
specific jobs.
3. A detailed description of the key jobs and After the organization completes the salary
positions that are to be included in the survey and finds out what he prevailing salaries
survey and that is common to most firm or are in the community for comparable jobs, it
industries. Key jobs are labor grades that are must then make several decisions:
comparatively stable in duties and
1. Whether the company should pay salaries
responsibilities. These are occupations that are
above, below or at the same level, as the
common in most industries and scattered
others in the same industry in the community
through the ladder of labor classification and
are paying for the same jobs.
commonly familiar to most people in the
industry. 2. Whether the company should pay a single
rate for each job, or slot the jobs into ranges or
4. Collection of accurate wage and salary
grades which would provide room for merit
data. This may be done through a set of
increases.
questionnaires and supplemented by
interviews to get the accurate information. The 3. How many pay grades or salary ranges to
information must be able to pinpoint the use, and how wide each pay grade should be
problem area that has to be addressed by the (from the minimum of the grade to the
and the terms of payment plan. 4. What is the range of the amount in terms of
5. A compilation of the wage and salary data money value that should be allotted for each
for each job. The data gathered will provide salary grade levels?
management with the opportunity of arriving at Although there are no set rules for
the arithmetical average, the median and the making these decisions, one tool that is often
used to simplify the process is the use of two-
dimensional graphs, also known as data trend is used, the rank number or grade can be
graph. When the graph is used with the point substituted for points on the horizontal of the
system, the values of the points for key jobs in graph.
the industry are plotted with the lowest pay at
A similar graph should then be drawn to
the bottom. The survey data for any job is then
reflect the relationship between internal
plotted according to the evaluation points and
existing rates and job rating points. A trend line
grades. Eventually all the pay survey data
should be established and drawn. This trend
should be plotted.
line should be compared with the outside-
An examination of the graph will indicate survey trend line. In this way, management can
the trend of the data plotted. A line is drawn to see how salaries compare with those outside
indicate this trend, using one of the following the company. Then the decision will have to be
techniques: made whether to pay below the survey trend
line, meet it or pay above it.
1. Eye Inspection - The line is drawn freehand
so that about the same number of data points In deciding whether to match a survey
fall above the line. It follows the general trend trend line, management faces a conflict
of the data. This technique is the least scientific between personnel and economic forces. If the
and reliable as this does not require scientific company pays above the survey trend line, its
computations. It is more of a judgmental ability to compete may be endangered as the
analysis that is used only by experts in the field labor cost will be higher than the same
of job evaluation. industry, thereby added cost of production will
be added to the cost of the product. If the
2. The Least Squares — This uses the
company pays below the trend line, its ability to
statistical formula; the trend line will normally
hire capable employees may be affected or this
follow a straight path. It presents more
will cause personnel turnover. To reconcile
accurately the relationships between the peso
these two conflicting forces, management may
or money value and the points for the key jobs.
decide its own slope line that should be about
3.The Second-Degree Curve - Using another the same as the result of the survey.
statistical formula; the trend line will normally
Another important decision is whether
take the form of a curve and may more
hourly paid occupations should be assigned a
accurately indicate the trend of the data.
single rate or a range of rates. For production
The trend line should correctly reflect or maintenance workers, most organization
the trend of the data collected so the pays one standard rate for all jobs in the same
competitive pay rates and ranges will hold grade. That is especially true when an
throughout the structure. If the ranking method
operation is so standardized that it is difficult to and as an aid in short term and long-range
determine accurately the contribution of plans.
workers. A single rate for each job has the
6.
advantage of eliminating favoritism.
7. It establishes an equitable salary range for
The Development of Wage and Salary
various jobs.
Structure
Wage Structure Design
The design and operation of wage and
salary structure is the concern of management The design of the wage and salary
and employees. Wage and salary structure is structure is' the establishment of the job
the hierarchy of jobs to where the pay rate is classes and rate ranges. All jobs within a class
attached. The positions are allocated in pay are treated in the same way for purpose of
grades according to the job evaluation results economical administration. Pay structure
and its relations with the pay system derived ranges should be used in developing a
from the results of the salary survey. The jobs schedule for both rank-and-file employees,
are ranked in ascending to descending order technical and managerial positions. In some
according to their importance and based on the companies, they have a separate structure for
points or ranked earned in the job evaluation hourly and daily paid employees and separate
program conducted by the HRD and the salary structure for regular monthly paid jobs.
committee created for the development of a The managerial pay systems are separated,
and eases computation of salary adjustment structure for any industry or company. This
depends on the number of job classes and the SALARY RANGE
number of employees in the company. The
It is the range of the salary that is paid to
greater the differences in job classes the
an employee doing similar functions that has a
greater the number of pay grades in the salary
minimum and maximum pay and a series of
structure to give credence to differences in
step adjustments. It is to provide adjustment in
duties, responsibilities and other factors of
pay for performance evaluation without
variances as determined by the job evaluation
distorting the salary pay plan.
program.
It provides adjustments within the pay
The same could be said for the width of
grade of about 3% between each step. It is
the salary grade. There is no standard guide as
determined by the industry rate and the
to the spread of pay grades. For hourly jobs,
prevailing wages adjustments by the Tripartite
the spread from the minimum to maximum may
Board and the Department of Labor and
vary from ten percent (10%) to twenty (20%),
Employment. An example is provided below,
while for salaried jobs, the spread may vary
from 15% to 75%. The typical spread of Sample of Wage Plan for Small and Medium
next to step. (See Sample computation) Salary Adjustments with High Seniority
Once the pay structure has been Another reverse situation is when the
determined, the next step is to assign employee with high seniority, is either so
employees to their proper job classifications. If competent or has received so many increases
the jobs are properly evaluated and were that his salary is above the maximum of the
developed before the implementation of any pay grade. This is called red circle rate, which
structure, most existing salaries should fall can be handled in two ways:
within the salary range established for their
1. Review the performance of the
jobs. When employees' salaries fall below the
employee. If the employee is doing superior
minimum of the pay grade for the job, then it is
work and is capable of performing higher tasks
called green circle rate. When that occurs, the
or responsibilities and has displayed potentials
decision to bring salaries to the minimum of the
for promotion, then he has to be promoted and
grade should be based on the employees'
given the salary grade corresponding to the
performance. If the employees are on training
new assignment. He should be under probation
stage, their salaries should perhaps be below
in the new assignment for at least 3 months
the minimum of the grade until they can fully
before he assigned to the new pay grade.
meet the requirements then they are brought
up to at least the minimum of the pay grade.
2. If the performance review reveals basis plus piecework There are two methods of
that the employee is not worthy to be paying salaries:
promoted and such salary increase was
1. By the Time Worked - earnings do
discreetly earned for some obvious
not fluctuate with the amount of work
reasons, then the employee will not get
performed or with the quality of output. In this
normal merit increase due to the
method, wages are computed in terms of unit
implementation of the new structure. As the
of time. It is common to pay workers by the day
range moves up due to cost-of-living index and
and the term day-work was adopted. Day-work
the salary plan is revised accordingly, then his
methods of pay usually include weekly, or
salary probably will still fall within the range and
biweekly or monthly bases. Paying by the time
then he could be entitled to future adjustments
worked is called Non-incentive wage plan
if deemed necessary.
because the method of calculations will not
In order to remain competitive, a salary immediately result in more money. No matter
structure should be reviewed every two or how hard an employee works during an hour,
three years depending on the inflation rate the pay will be computed by the hourly rate and
prevailing in the country brought by economic no more. Wages under this plan are computed
factors or internal factors such as improved by multiplying the number of hours worked by
productivity and profitability. the rate per hour, as follows:
The main purpose of a formal wage and In which H - Hours actually worked R - Rate
salary management plan is to have a per hour in pesos W - Total wages earned
systematic method of payment to ensure that
employees receive a fair wage and salary for
the work they perform. Up to this point, we Payment on the basis of time worked is
have examined how these wages are more satisfactory factory under the following:
determined or how much the employees should 1. Employees have little or no control over how
be paid for the work they perform. Now we will much work they produce.
examine the methods of determining how
2. There is no clear-cut relationship between
salaries are paid. Two organizations may have
the effort made to produce the work and the
similar salary structures for their jobs yet may
amount of work produced.
use different methods in computing the
employees' salaries. Salaries may be the 3. Work delays occur often and are beyond the
same, but one company may pay on hourly employees' control.
4. Quality of work is very important. Guaranteed piecework occurs when
employees are paid their days' — work when
5. Units of work produced cannot be
the work distortion is not caused by the
distinguished and cannot be measured.
employees' lack of power or some other factors
beyond the control of the workers.
2.By the Amount of Work Produced Payment by piecework is satisfactory under the
— earnings depend on how much work the following conditions:
employee completes or on a related factor,
1. When a unit of completed work can be
such as the quality of work. This method of
measured easily;
paying wages is called an incentive wage plan.
The most common of incentive plan is called 2. When there is a clear relationship between a
piecework. Piecework salaries are determined workers' effort and the results of his efforts;
by the number of pieces produced or
3. When the quality of work is less important
completed and each piece is assigned a piece
than quantity or when quality standards are
value that is called piece rate. Time study sets
uniform and measurable;
the acceptable number of pieces an employee
can produce at a given time taking into 4 When the flow of work is regular, breakdowns
consideration the acceptable quality of work are few and jobs follow a standard procedure,
U = Rate per unit in pesos 1. The wage and salary plan must be easily
understood. Every worker wants to know how
W = Wages earned per day or
his company wage plan works. To keep
per week
employees in the dark as to how their earnings
are determined could lead to distrust on the 5. The method of payment should be stable
management and fear that they are not getting and unvarying. Frequent changes in wage
paid for what they have earned. payment plan may lead worker to think that
management is trying to confuse and or even
2. Salaries in the wage plan should be
cheat them. It is important to choose a plan
easily computed. Most employees like to
that will fit the needs of the organization so that
compute from to time what they are earning
the necessity of frequent subsequent changes
and to make sure that the salaries are correct.
eliminated.
Therefore, a wage payment plan should be
simple enough to allow quick calculations. The Morale Renewal in the Workplace
method of wage payment must be explained
1. Know that leaders have limitations.
during the orientation program and employees
must be made to understand that wages are Steve Berglas of the Harvard Medical School
related to employees' effort and productivity believes that "people who achieve great
and based on a wage plan that relates to duties heights but lack the bedrock character to
and responsibilities of the positions and other sustain them through the stress are headed for
factors considered in the job evaluation disaster." He predicts that one or more of the
set so as to challenge a worker making him John C. Maxwell is right in his observation that,
reach the extra effort. Once he has achieved "We have no-control over a lot of things in life.
the standard, he should be rewarded for his We don't get to choose our parents. We don't
effort with increased earnings. select the location or circumstances of our birth
4. Incentive, wage plans should provide and upbringing. We don't get to pick our talents
payment for incentive earnings to and IQ. But we do choose our character. In
employees soon after they have been fact, we create it every time we make choices."
earned for efforts exerted to reach the In the workplace, you can create your own
standards. In this way, the reward or penalty is character. Do you want easy money or work for
fixed in their minds in relation to the work they it? Do you keep the right company? Do you
do. Obviously, it would be too costly and stand by your principles? You can, if you
7. Show the mirror to your leaders. 10. Rebuild and do not slide back.
Set your mind toward the future. Stop going Today we classify our work roles into
back to your past, except to see how much you three categories called labor grades. These
have progressed. Let your guideposts be labor grades are described below:
milestones in the future and not how you were
Skilled Labor - these are workers who
before. If you have improved in a facet of your
have received specialized training to do their
character, make sure that you don't slide back.
jobs. They have developed and honed a
Be not like the dog that eats his own vomit.
special skill and may or may not need to be
Never underestimate what ordinary people can
licensed or certified by the state. The examples
do, especially when they heed the call of one
of skilled laborers are carpenters, plumbers,
leader who was killed in Dallas, almost our
electricians, business executives and
decades ago," ...ask not what your country can
managers, artisans, accountants, engineers,
do for you; ask what you can do to your
police, mechanics; etc. These may be blue- or
country."
white-collar workers.
Other Information Related to Wages
Unskilled Labor - These are workers
Labor and Wages who have received no specialized training
technological one, the members of this group
The type of job one does and the
have developed and have few specific skills. As
financial compensation he or she receives are
our society has grown into an increasingly'
very important in our society. Job type is linked
developed more and more skills. A mechanic
to status as is wealth. While the type of job one
for example, used to be considered unskilled
performs is arguably more important status
labor. Today, that is no longer the case.
wise then wealth, both are. important to
Mechanics require a great deal of skill and
Americans.
training to w today's modern engines.
In the past we used to use other Examples of unskilled laborer sanitation and
descriptions to classify workers. The terms blue custodial workers, painters, factory assembly
collar or white-collar employees were used to line workers, etc. These are blue collar
describe the type of vocation. workers.
White Collar — Office workers secretarial, etc. labor grades, these are those workers who
need an advanced degree to do their jobs. The
Pink Collar — Job associated with women like
three primary groups of professionals are
nursing, secretarial, etc. This, being a rather
doctors, lawyers, and teachers. These are
sexist term, is no longer used.
white collar workers.
These labor grades are often said to be 11. Negative tone attitude toward training
non-competing labor grades because workers that must be cultivated and made an
integral requirement before the
rarely move from one grade td another and do employee sets foot in the training
not compete salary wise with each other. There program. FALSE
12. Training involves a permanent change in
are reasons why they do not compete with behavior. FALSE
each other. The cost of education and training 13. Self-efficacy is the most important
aspect of training administration. FALSE
may be a significant obstacle. They might lack 14. The immediate and special needs of a
the opportunity to make such a move and they company are determining factors in the
selection of the training courses and
might also have a lack of initiative. materials. FALSE
15. Learning has a major impact on the
HR QUIZZEZ delivery of training programs. FALSE
16. This technique can be effective because
QUIZ #1 the individuals are given the opportunity
1. Training has to be continuously offered to get away from the job and
to keep employees updated and concentrate solely on what is to be
effective. TRUE learned. OFF-SITE/OUTSIDE
2. The cost of training is greater than the DEVELOPMENT INTERVENTION
cost of gaining experience. FALSE 17. It determines employee’s development
3. The element of predictability is far potentials and needs.
greater when compared to the outcome PYSCHOLOGICAL TESTING
of a well-conceived and conducted 18. The process of shifting employees from
training program. FALSE* one job to another. JOB ROTATION
4. Employees with effective orientation 19. Adding challenges and new
programs tends to stay longer with the responsibilities to the employee’s
company. TRUE current job. JOB ENLARGEMENT
5. Development is used to gain a 20. Employees interacting with more
competitive advantage and viewed experienced organization members.
broadly as to create an intellectual MENTORING
capital. FALSE 21. Group of employees who work together
6. The success of any training program to learn from each other and develop a
can be gauged by the amount of common understanding on how to get
observation and practice that occurred the work done. COMMUNITY OF
and is transferred to the job. FALSE PRACTICE
7. Supervisors determine the need for 22. The growing capabilities that go beyond
training and specify the training those required by the current job.
objectives and the training efforts. DEVELOPMENT
FALSE 23. Practical application of what was
8. Only internal forces that can influence learned in the program. TRANSFER OF
training must be considered when doing TRAINING
organizational analysis. FALSE 24. Degree of the employee’s desire to learn
9. The use of Job Description Data in the cognitive ability, reading and writing
making this individual analysis is the skills and other technology changes
most common approach. FALSE necessary in the work environment.
10. An employee’s potential may mean BASIC SKILLS
further training to assume a higher
position in the future. TRUE
25. The planned introduction of new supervision and decision-making
employees to their jobs, co-workers, and become minimal. FALSE
the organization. ORIENTATION 12. The correct title of a particular job is very
26. It makes management alert to important in the organization. TRUE
inefficiency, provides better products, 13. The result of any job analysis program is
and services and keeps costs down. the writing of the Job Title and Job
TRAINING. Specification. FALSE
27. How management gives the new 14. Job Analysis is the sole responsibility of
employees information about the details the HRD. FALSE
of his/her work. THROUGH INDUCTION 15. A HR Manager requires knowing the
28. Learning while working in the job. ON- different jobs in the company. TRUE
THE-JOB TRAINIG 16. It is an improvement of the ranking
29. An objective in training to make the system. POINT RATING METHOD
employees do his job more efficiently. 17. The ff are uses of job description:
PRODUCTIVITY ● It helps identify and distinguish
30. These skills are needed to perform one job from other jobs.
one’s job effectively. BASIC SKILLS ● It is used as a tool in the proper
employee recruitment, selection
and training.
QUIZ #2 ● It helps establish job relationships
1. Analysis of the Organizational Structure within the salary bracket.
is the vertical interconnections among ● It serves as a guide in structural
jobs. FALSE departmentalization.
2. The type of Organizational Structure has ● It could be used as a guide in the
no implication in the design of the jobs. horizontal and vertical promotion
FALSE of employee’s thereby developing
3. There is a best method in job analysis. and promoting morale.
1. The process of getting detailed
FALSE
4. The smaller the company, the simpler information about the task, duties, and
responsibilities of the job as seen in the
the job evaluation method used. TRUE
organizational structure. JOB ANALYSIS
5. Similar jobs performing similar duties
1. It identifies what work must be
and responsibilities must have the same
performed and who will perform it. JOB
job title. TRUE
INFORMATION
6. Job titles must not reflect the major job
1. It is the systematic determination of the
functions. FALSE
value of each job or relations to other jobs in
7. Job analysis focuses only in one
the organization. JOB EVALUATION
important data that managers must have
1. It is more complex method, and it
the right information about the nature of
involves a monetary scale instead of a point
the employees. FALSE
scale. FACTOR COMPARISON METHOD
8. The accuracy of job information is
1. From the foundation of any human
necessary to Job Analysis. TRUE
resource process from recruitment and
9. Job analysis is considered as the
selection of performance management,
building block of anything that human
compensation, and career development.
resource manager does. TRUE
HUMAN RESOURCE PROGRAM
10. The type of organizational structure has
1. One who studies the duties,
implication on the design of the jobs.
responsibilities, and the specification
TRUE
requirements of the job. JOB ANALYST
11. In a divisional structure, jobs need
1. A written statement of the essential
specialization, and the responsibility is
characteristics of a job including the necessary
focused on specialized skills hence
qualifications, duties, responsibilities, and 8. The number of pay ranges in pay
degree of authority of job. JOB DESCRIPTION structure does not depends on the
1. This method is commonly used for blue- company and on the number of such
collar, as the employee may not be able to structures in the company. FALSE
answer the question. THE INTERVIEW 9. The same could be said for the width of
METHOD the salary grade, there is standard guide
1. It contains information about the as to the spread of pay grades. FALSE
employee’s qualifications and traits required in 10. Once the pay structure has been
the effective performance of the work assigned. determined, the next step is to assign
JOB SPECIFICATION employees to their proper job
1. The simplest and oldest method and the classifications. TRUE
least often used, it usually based on overall 11. When employees’ salaries fall below the
difficulty rather than on a number of minimum of the pay grade for the job,
compensable factors. RANKING METHOD then it is called green circle rate. TRUE
1. It clearly shows the area of job activity 12. To remain competitive, a salary structure
and must show its relationships with the other should be reviewed every four (4) years
jobs in the unit or department. JOB TITLE depending on the inflation rate prevailing
1. The process of getting detailed in the country brought by economic
information about the tasks, duties and factors and internal factors. FALSE
responsibilities of the job as seen in the 13. The Bargaining Theory is brought about
organizational structure. JOB ANALYSIS by the organization of minimum wage
1. It evaluates selected job factors, which laws. FALSE
are regarded as important for the effective 14. Presentation of the surveys result is
performance of the job, according to one optional in conducting wage and salary
several alternative methods. JOB survey. FALSE
EVALUATION 15. Skills is much more important that
integrity. FALSE
QUIZ #3 16. The elite of the labor grades.
PROFESSIONALS
1. HRD function in a company is usually 17. This theory gives weight to the merit of
the Wage and Salary Administration. work. LABOR THEORY OF VALUE
FALSE 18. Advantages of Wage and Salary
2. The level of pay must impair profits. Structure:
FALSE ● It affects the worker’s earning and
3. There are set of rules for making standard of living.
decisions in conducting Salary Wage ● It eases the recruitment and
Survey. FALSE maintenance of an effective labor
4. In deciding whether to match a survey force.
trend line, management faces a conflict ● It develops employee morale and
between the law and economic forces. increases work efficiency
FALSE ● It represents cost and competitive
5. The design and operation of wage and advantage in the industry
salary structure is the concern of ● It helps in preparing budgetary
management alone. FALSE allocations and eases
6. Jobs are ranked in ascending to computation of salary
descending order according to their adjustments and as an aid in
importance. TRUE short-term and long-range plans
7. The design of the Wage and Salary ● It eliminates pay distortions and
Structure is the establishment of the job inequities in employee
classes and rate ranges. TRUE compensation
● It establishes an equitable salary 1. This theory offers the best explanation
range for various jobs of wages in modern industry. MARGINAL
1. Characteristics of Wage and Salary PRODUCTIVITY THEORY
Policies:
● The wage and salary plan must
be easily understood
● Salaries in the wage plan should
be easily computed
● Salaries must be made relevant
with efforts
● Incentive wage plans should
provide payments for incentive
earnings to employees soon after
they have been earned for the
efforts exerted to reach the
standards
● The method of payment should
be stable and unvarying
1. This theory of wages is expounded by
John Stuart Mill. WAGE FUND THEORY
1. This theory is the basis in the
implementation of minimum wage laws. THE
JUST WAGE THEORY OF ST. THOMAS
AQUINAS
1. This theory proposes that labor is a
commodity like anything that could be brought
at a price by the user. BARGAINING THEORY
OF JOHN DAVIDSON
1. It tries to establish the relationship
between wages and the level of economic
activity. THE PURCHASING POWER THEORY
1. This theory, if applies will be in favor for
the labor force but is counterproductive. THE
STANDARD OF LIVING THEORY
1. “The more money I have, the more
clothes I can buy” is a statement that
characterizes what theory of wages?
PURCHASING POWER THEORY
1. Who propounded the labor theory of
value? KARL MARX
1. This method of wage payment is often
used in paying wages for factory workers. DAY
WOR METHOD**
1. This type of theory gives weight to the
merit of work. LABOR THEORY OF VALUE
1. This technique is the least scientific and
reliable as this does not require scientific
computation. EYE INSPECTION