DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)
Compensation/Wages and Performance Evaluation
LAS for Organization and Management (Grade 11)
Quarter 4 - Week #1
Name: ___________________________________________ Strand: ________________________ Date:
______________
I – Background
Good day, students! Are you doing well? This
Learning Activity Sheet (LAS) was written for you in mind. This
LAS to help you define and identify the compensation/wages
and performance evaluation
II- Learning Competencies:
After going through this LAS, you are expected to:
1. Identify the different compensation types
2. Differentiate the two motivational factor for employees
3. Examine the functions and importance of compensation,
wages and performance evaluation, and appraisal
III- Essential knowledge, concepts and activities
Compensation/wages and performance evaluation are related to
each other because the employees’ excellent or poor performance
also determines the compensation given to them.
Compensation/wages – all forms of pay given by employees to
their employees for the performance of their jobs.
Performance evaluation – a process undertaken by the
organization, usually done once a year, designed to measure
employees’ work performance.
Types of Compensation
1. Direct compensation – includes workers’ salaries,
incentives pays, bonuses, and commissions.
2. Indirect compensation – include benefits given by
employers other than financial remunerations; for example:
travel, educational and health benefits, and others.
3. NonFinancial compensation – includes recognition
programs, being assigned to do rewarding jobs, or enjoying
management support, ideal work environment, and
convenient work hours.
The National Wages and Productivity Commission is the
government agency concerned with minimum wage
determination in the country.
Compensation: A Motivational Factor for Employees
Compensation pay represents a reward that an employee receives
for good performance that contributes to the company’s success.
In relation to this, the following must be considered:
 Pay Equity – related to fairness; the Equity Theory is a
motivation theory focusing on employees’ response to the
pay that they receive and the feeling that they receive less or
more than they deserve.
 Expectancy Theory – another theory of motivation which
predicts that employees are motivated to work well because
of the attractiveness of the rewards or benefits that they may
possibly receive from a job assignment.
Why Some Evaluation Programs Fail
Performance appraisals (such as manager/supervisor appraisal,
self-appraisal, subordinate appraisal, customer appraisal, peer
appraisal, team appraisal, or 360-degree appraisal) may
sometimes fail due to various reasons including the following:
Bases for Compensation
Employees may be compensated based on the following:
 Piecework basis – when pa is computed according to the number
of units produced.
 Hourly basis – when pay is computed according to the number
of work hours rendered.
 Daily basis – when pay is computed according to the number of
work days rendered.
 Weekly basis – when pay is computed according to the number
of work weeks rendered.
 Monthly basis – when pay is computed according to the number
of work months rendered.
Compensation rates are influenced by internal and external
factors. Among the internal factors are the organization’s
compensation policies, the importance of the job, the employees’
qualifications in meeting the job requirements, and the employer’s
financial stability.
External factors, on the other hand, include local and global
market conditions, labor supply, area/regional wage rates, cost of
living, collective bargaining agreements, and national and
international laws, among others.
Purposes of Performance Evaluation: Administrative and
Developmental
 Administrative Purposes – these are fulfilled through
appraisal/evaluation programs that provide information that may
be used as basis for compensation decisions, promotions,
transfers, and terminations.
 Developmental Purposes – these are fulfilled through
appraisal/evaluation programs that provide information about
employees’ performance and their strengths and weaknesses that
may be used as basis for identifying their training and
development needs.
Performance Appraisal Methods
 Trait Methods – performance evaluation method designed to
find out if the employee possesses important work characteristics
such as conscientiousness, creativity, emotional stability, and
others.
 Graphic rating scales – performance appraisal method where
each characteristics to be evaluated is represented by a scale on
which the evaluator or rater indicates the degree to which an
employee possesses that characteristic.
 Forced-choice Method – performance evaluation that requires
the rater to choose from two statements purposely designed to
distinguish between positive or negative performance; for
example: works seriously – works fast; shows leadership – has
initiative.
 Behaviorally Anchored Rating Scale (BARS) – a behavioral
approach to performance appraisal that includes five to ten
vertical scales, one for each important strategy for doing the job
and numbered according to its importance.
 Behavior Observation Scale (BOS) – a behavioral approach to
Prepared by: Mr. Roseller T. Cabasag – Teacher II
 DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)
performance appraisal that measures the frequency of observed
 Inadequate orientation of the evaluates regarding the behavior.
objectives of the program; V. Assessment
 Incomplete cooperation of the evaluates (e.g. proper Direction: Read and analyze each question and answer each number
answering of evaluation questionnaire); carefully and choose the best answer. Write the letters only. (NO
ERASURES)
 Bias exhibited by evaluators;
_____1. These are all forms of pay given by employers to their
 Inadequate time for answering the evaluation forms; employees for the performance of their jobs.
A. Bonuses C. Performance evaluation
 Ambiguous language used in the evaluation questionnaire B. Compensation/wages D. Travel allowance
used;
_____2. Which of the following is a process undertaken by the
 Inflated ratings resulting from evaluator’s avoidance of organization, usually done once a year, designed to measure
giving low scores; employees’ work performance?
A. Assessment C. Performance evaluation
 Evaluator’s appraisal is focused on the personality of the B. Monitoring D. Promotion
evaluate and not his or her performance;
_____3. What motivation theory focusing on employees’ response to
 Unhealthy personality of the evaluator; and the pay that they receive and the feeling that they receive less or more
than they deserve?
 Evaluator may be influenced by organizational politics. A. Compensation Theory C. Equity Theory
B. Behavioral Theory D. Expectancy Theory

_____4. What government agency is concerned with minimum wage

IV. Learning Activities determination in the country?
A. Department of Finance
Among the four performances appraisal methods, which do you B. Department of Labor
think is more effective and efficient? Why do you say so? 10 C. National Labor Relations Commission
points D. National Wages and Productivity Commission
____________________________________________________ _____5. Which performance evaluation method designed to find out
_____ if the employee possesses important work characteristics?
A. Behavior Observation Scale C. Graphic rating scales
____________________________________________________ B. Forced-choice method D. Trait methods
_____
_____6. Which performance appraisal method where each
____________________________________________________ characteristic to be evaluated is represented by a scale on which the
_____ evaluator or rate indicates the degree to which an employee possesses
that characteristics?
____________________________________________________ A. Behavior Observation Scale C. Graphic rating scales
_____ B. Force-choice method D. Trait methods
____________________________________________________ _____7. Which performance appraisal that measures the frequency of
_____ observed behavior?
A. Behavior Observation Scale C. Graphic rating scales
____________________________________________________ B. Force-choice method D. Trait methods
_____
_____8. These are fulfilled through appraisal/evaluation programs
____________________________________________________ that provide information about employees’ performance and their
_____ strengths and weaknesses.
A. Administrative Purposes C. Graphic Rating Scales
____________________________________________________ B. Developmental Purposes D. Trait Methods
_____
_____9.These are fulfilled through appraisal/evaluation programs
____________________________________________________ that provide information that may be used as basis for compensation
_____ decisions, promotions, transfers, and terminations.
A. Administrative Purposes C. Graphic Rating Scales
____________________________________________________ B. Developmental Purposes D. Trait Methods
_____
_____10. Evaluation programs fail because of the following reasons,
____________________________________________________ EXCEPT
_____ A. Bias exhibited by evaluators.
B. Healthy personality of the evaluator.
B. Inadequate time for answering the evaluation forms.
C. Evaluator may be influenced by organizational politics.

Prepared by: Mr. Roseller T. Cabasag – Teacher II

DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)

B. Disseminator, monitor, spokesperson

C. Entrepreneur, negotiator, resource allocator
D. Monitor, negotiator, resource allocator

Prepared by: Mr. Roseller T. Cabasag – Teacher II

DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)

Prepared by: Mr. Roseller T. Cabasag – Teacher II

DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)

Prepared by: Mr. Roseller T. Cabasag – Teacher II

DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)

Prepared by: Mr. Roseller T. Cabasag – Teacher II

DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)

Prepared by: Mr. Roseller T. Cabasag – Teacher II

DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)

Prepared by: Mr. Roseller T. Cabasag – Teacher II