Professional Documents
Culture Documents
Objectives of HRM
Every organization has goals. As a for-profit company, Gerami's organization's
overarching goal is to make a profit for the company's owners. In order to make this profit,
the company wants to make the best appliances possible at the lowest cost for the
greatest profit margin. The company also wants to capture the greatest share of the
kitchen appliance market as possible. And it needs human resources to accomplish these
goals.
Gerami's company needs engineers, researchers, marketing professionals, accountants,
production workers, managers and sales people just to name a few different types of
employees necessary to accomplish his company's goals. The objective of any human
resource department is to make sure the company has and retains people with the skills
necessary to accomplish the company's goals.
Let's see how Gerami does this.
HRM Responsibilities
Gerami's responsibilities are broad. You can break human resource management's
responsibilities down to five general categories:
Growth and Development of Personnel/Human Resource Management in the Philippines
Personnel or HRM is a relatively new field in the Philippines. It was only in 1950’s that it
is gradually gained acceptance and recognition in private business and industry.
For it to gain acceptance and recognition, three conditions need to exist:
• Top management must be convinced that personnel management is needed in its
business operations;
• Qualified personnel administrators must be available;
• Personnel administrators must demonstrate their capacity to contribute to the
company’s objectives and goals.
Organization and Human Resources
To grow and thrive in today’s competitive environment, organization must deal with many and
diverse changes. Traditionally the concept of value has been considered a function of finance or
accounting. Human resources are crucial to the long-term survival of the organization.
Definition of value includes not only profits but also employee growth and satisfaction,
additional employment opportunities, protection of the environment, and contribution to
community development.
Organization is made up of people. The main goal of any organization is to provide goods and
services effectively. It is the people who are linked in a formal structure and managerial leadership.
People are vital to an effective HRM program. The development of an effective organization
hinges on the proper selection, development, and utilization, rewarding, and maintaining capable
people.
The organization resources are stretched tightly to come up with the demand of the global
environment. The allocation of these various resources wisely is imperative. An organization
must work together to contribute efficiently towards the goals and objectives set by management.
The effective utilization of manpower can help add and create value.
1. Supervisor
• He plans, organizes, directs, controls and coordinates the activities of his
department. He delegates some of his functions to his subordinates but checks
on them through follow-ups. He manages the work of the employees in his
department and trains them in developing their skills for efficiency.
2. Administrative Official
• He or his staff conducts or directs certain personnel activities as provided for
in the policies and programs entrusted to the department. He sees to it that
labor laws and government regulations are properly complied with. He should
also know how a policy is made and administered.
3. Adviser
• He serves as counselor, guide and confidante to management supervisors and
employees. To be competent, he must keep himself informed about employee
attitudes and behavior and be abreast of trends in the industrial relations field
which may affect his company.
4. Coordinator
• He brings into action all activities, regulates and combines diverse efforts into
a harmonious whole, and gets together and harmonizes the work of various
personnel in his department and the related functions in other departments.
5. Negotiator
• He is the representative of management in negotiating labor contracts or to
attend negotiations with unions in an advisory capacity. As a negotiator and
administrator of the labor contract, he must understand the nature, significance,
and methods of collective bargaining.
6. Educator
• He conducts or administers the company’s training program. He is very much
involved in the management of employee development programs of his
company.
7. Provider of Services
• He provides services to all employees and helps them obtain facilities with
government agencies like SSS, Medicare, etc., which can make their
employment more satisfying.
8. Employee Counselor
• His knowledge and training in human relations and the behavioral sciences
plus his familiarity with company operations, puts him in the best position to
counsel employees.
2. Performance Management
Analyzing, improving and monitoring the performance of each employee and of the
organization as a whole.
3. Career Management
Determining, planning and monitoring the career aspirations of each individual in the
organization and developing them for improved productivity.
4. Management Development
Assessing and determining the developmental needs of managers for future succession
requirements.
1. Over-Planning
• A plan is likely to fail through an inherent weakness of having covered too many
aspects of personnel management at the very early stage of HRP in the firm or
government office.
2. Technique Overload
• The use of so many techniques sometimes leads to the gathering of so much
information. Then the techniques do not get to be applied effectively. This makes
the techniques serve as a trap rather than a means for action.
LEARNING CONTENT
Introduction:
Beginning a new job, or being assigned a new task at your current job, can be
impossible if you don't have the appropriate training. Employers recognize that, in order
to get the best results, proper preparation can make all the difference. In this chapter, you
will see the different types of training that employers provide, and you will learn how
organizations decide what types of training is necessary. This chapter also explores
theoretical concepts applied to training and development in the workplace.
We will review several aspects of employee training. We will discover the value
and benefits of employee training, as well as review the different types of employee
training and key issues in providing training in the workplace. Finally, we will discuss ways
managers can support training in the workplace.
Lesson Proper:
The success of any training program can be gauged by the amount of learning that
occurred and is transferred to the job. Training and learning will take place through the
informal work groups, whether an organization has a coordinated effort or not, because
employees learn from other employees. While this may be true to a certain extent, a well-
designed training program can give better results because what may be learned may not
be the best for the organization.
• Assessing training needs means analyzing key factors for performance in an
organization in order to bridge the gap between what is currently being done and
what needs to be done. You can accomplish this by taking an organizational
inventory of what is presently being done and comparing it to what is desired.
• Just in the same way that individuals perform a personal inventory to determine
what changes need to be made, like losing weight or getting in shape,
organizations also analyze their weak spots and identify areas to improve - but on
a much larger scale.
• Once the inventory is taken and the desired outcomes have been established,
new training plans can be developed for employees. These plans may include
organizational culture training, customer service training, skills training and
technology training.
Criteria for Evaluation of Training
Five steps to a meaningful evaluation (suggested by John M. Kelly)
2. Establish a baseline.
• Make sure you know the level of performance before training begins.
• This allows you to make a legitimate comparison to determine training
effect.
3. Isolate variables
• One variable is the Hawthorn Effect, named after a General Electric plant
that was studies in a landmark performance experiment several years ago.
• The effect: Employees improved their performance simply because of
the attention of the research study – not because of any changes in their
working conditions.
4. Measure Attitudes
• This goes back to the problem of measuring initial reaction, but it is valuable in the
overall evaluation.
o Did the trainees like the training?
o Did they think it was valuable?
o Often, they can provide valuable feedback and
suggestions for improving training techniques.
5. Measure Performance
• Go back to your base line and see what the results of the training are in terms
of the criteria you have established.
• Track performance over a long period of time so you can be sure the
improvement is established.
The Value of Employee Training
The 21st-century workplace is a fast-paced environment with new techniques, knowledge,
and opportunities appearing and disappearing at the speed of the Internet. It is critical to
keep employees updated and up-to-speed on the latest developments in the field, and the
only way to do that is by providing training. In much the same way that people upgrade
software so that they have the latest, bug-free versions with the highest functionality,
companies need to upgrade their employees so that their skills are at their peaks and they
can provide maximal value to the company.
Although training can be costly both in terms of time and money, the many benefits to the
company, including increased efficiency and broader value-creation capabilities, higher
employee loyalty, and better interfacing between departments, make training well worth
it.
Key Issues in Training
There are three main issues in training to be aware of. These are:
1. knowledge transfer,
2. trainee readiness,
3. and organization of training.
• Knowledge transfer is the application of the training to the workplace and
whether what the trainee learned is actually used in his or her day-to-day work.
Along this vein, it is important to make sure that the training is consistent with the
culture and strategy of the company.
• Trainee readiness is concerned with whether the employee actually wants and
needs the training and actually has the requisite background to grow and benefit
from it.
• Lastly, organization of training has to do with whether the training covers the
requisite material and is built around solid pedagogical principles.
Manager's Role in Training
As the person who directly oversees the employee, the manager should coordinate
between upper management and/or human resources (which determines the
needed skill sets and the number of people who should have them) and the
employee (who determines his/her own readiness for training). After training, the
manager should evaluate the outcomes based on four key criteria.
• The first is reaction, or what the employee thought of the training.
• The second is learning, which is whether the trainees learned what
they were supposed to.
• The third criterion is behavior, which looks at whether new
behaviors are being observed.
• The last of the criteria is results, which assess whether the training
was a good investment.
END of LESSON 5
LEARNING CONTENT
Introduction:
Many employees come into an organization with only a basic level of skills and experience and
must receive training in order to do their jobs effectively. Others may already have the necessary
skills to do the job, but don't have knowledge related to that particular organization. HR
development is designed to give employees the information they need to adapt to that
organization's culture and to do their jobs effectively.
What Is the Purpose of HR Development?
Human resources development can be viewed, in some ways, in the same manner that a
coach views his athletic team. While a coach may recruit players who already have some skill
and ability, the point of continued practice is to strengthen those skills and abilities and make even
better athletes.
HR development has the same goal:
To make better employees.
The purpose of HR development is to provide the 'coaching' needed to strengthen and grow the
knowledge, skills, and abilities that an employee already has. The goal of development and
training is to make employees even better at what they do.
Types of HR Development
Human resources development usually begins as soon as an employee is hired and continues
throughout that employee’s tenure with the organization. HRD comes in different forms, including
on-the-job training or job shadowing, textbook or online education, growth opportunities, and
compliance training.
• On-the-job training refers to learning the aspects of a job while one is doing
the job. An employee may know the basics of what the job requires, but specifics
like which forms to use, where materials are stored, and how to access the
computer systems may require on-the-job training.
• Job shadowing is similar in that the employee watches another employee do
the job in order to develop the proper skills.
• Another form of development is intellectual or professional development,
which includes college or certification courses or job-specific trainings and
seminars related to how to do one’s job better.
• Many organizations invest heavily in providing training and development to their
employees in order to increase their knowledge and skills. With the growth
of online learning, much of this training has become available via webinars and
online courses, but it is still very common to conduct in-person trainings or attend
training seminars or conferences with other professionals in the field.
• Many professionals also voluntarily take additional training and development
courses in order to be seen as experts in their fields. Professional organizations
often offer their members options to increase their development and many have
specific certifications that must be obtained through extensive training and
development. The Six Sigma certification, Professional in Human Resources (PHR)
certification, and Certified Professional in Learning and Performance (CPLP)
certification are just a few examples of these forms of HR development that require
continued education, training, and testing.
• Growth opportunities are another highly valuable aspect of HR development.
Employees want to grow in their professional careers as well as in knowledge and
training, and offering opportunities for career growth is fundamental to the
development of employees. Growth opportunities are both a form of HR
development and one of its goals because the purpose of development, for many
employees, is to grow in their career.
• One more very important aspect of HR development is compliance training,
where organizations must train their employees to understand and abide by the
government regulations they must comply with. Some states even require that
employees go through specific training, most often related to sexual harassment.
In an attempt to avoid potential issues, many organizations will recommend or
require their employees to undergo similar training and development programs,
regardless of whether it is mandated by law.
Why Is HRD Important?
Human resources development is important because it is an investment in one’s
employees that will ultimately result in a stronger and more effective workforce. When an
organization develops their employees, they are strengthening their assets and making these
employees even more valuable. HR development is extremely important because organizations
recognize that any value added to an employee is value added to the organization, and employees
are eager for the opportunities to develop their skills and add value to their companies.
Many employees specifically choose to work for companies where they know they will
receive further development. Over the years, the nationwide workforce has adapted in many ways
from a ‘what can I do for the company?’ mentality to ‘what can the company do for me?’
Organizations know the best employees want opportunities for further growth and
development and, therefore, it is important to provide such development opportunities in
order to attract and retain these employees.
1. Management Coaching
- The immediate supervisor coaches the subordinate employee in performing
certain functions that are necessary for his advancements.
- It combines observation and suggestions.
- This is best when it involves good relationships.
2. Committee Assignments
- Assigning promising employees to important committees can give the employees
a broadening exercise and can help them to understand the personalities, issues,
and processes governing the organization.
3. Job Rotation
- This is the process of shifting employees from one job to another.
- A substantial managerial time is needed when trainees change positions.
- The trainees must be acquainted with different people and techniques in each
new unit.
5. Job Enlargement
- refers to adding challenges or new responsibilities to the employee’s current jobs.
- This could include such activities as special projects assignments, switching roles
within a work team or research activities.
6. Mentoring
- Employees can also develop skills and increase their knowledge about the
company and its operations by interacting with more experienced organization
members.
- It helps new members bring together successful senior employees with less
experienced members.
1. Formal Education
- The company sends the employee to formal seminars, workshops and other
training programs offered by training consultants and agencies.
- Some companies send their employees to take advance studies in the graduate
programs in exclusive schools or take courses in foreign countries.
- The condition is usually that an employee is tied to a contract to serve the
company for a number or years for every year of outside training.
2. Team Building
- These organizational interventions are usually conducted away from work for
about 2 to 4 days.
– The employees are organized into teams and solve common problems related
to relationships.
- The focus is on human relation issues and poor team-work.
3. Case Studies
- This is a classroom type of training technique that provides a medium through
the application of management behavior concepts and analyses.
- Cases are either through the use of multi-media or case problems that are
developed similar to those existing in the work environment.
Group case analysis and presentations are made and discussions facilitate the
learning experience.
4. Role Playing
- It is a developmental technique requiring the trainee to assume a role in a given
situation and act the behavior associated with it.
- The facilitators provide the script and the group evaluate the performance.
- The other participants provide comments and suggestions after each
performance.
5. Simulations
- These are business games developed by human resource experts that require
the participants to analyze a situation and decide the best course of action based
on the given data.
*** END of LESSON 6***
LEARNING CONTENT
Introduction:
How your employees perform daily in your organization or business will have an impact
on your success or failure. Employee performance involves factors such as quality,
quantity and effectiveness of work as well as the behaviors your employees show in the
workplace. As future human resource managers, you have control over setting these
expectations and monitoring them regularly. Understanding performance metrics,
employee performance review methods and ways to improve performance will help you
ensure your workforce can meet your organization’s or business's needs and your clients
or customers' needs.
Lesson Proper:
For an individual employee, performance may refer to work effectiveness, quality and efficiency
at the task level. Your salesperson, for example, may be expected to complete a certain quota of
calls to potential leads per hour with a specific portion of those resulting in closed sales. On the
other hand, a production worker may have performance requirements for product quality and
hourly output.
Individual performance affects your team and organizational performance. If you have employees
who can't keep up or who perform subpar work, this means that other workers may have to pick
up the slack or that you have to have work redone. When employee performance is poor, you
may not be able to satisfy your customers and thus see negative impacts on your profits, company
reputation and sales.
Performance Management Defined
Let's imagine that you work for Bottles and More, which is a company that produces baby
bottles. Your job duties include packing up the bottles and getting them ready for shipment.
Lately, you have noticed that your boss has been approaching you and asking questions
about if you are aware of the target goal of 3,000 bottles shipped a month. She also asks
if you know the objectives of your job position. She even sat you down one day to go over
the results of last month's total shipments and provide feedback about your performance.
What your manager is doing, is partaking in a process known as performance management,
which is a process that involves communication between a manager or supervisor and an
employee that focuses on expectations, objectives, goals, feedback, and results. In other words,
it is the process of:
So, your manager is letting you know that you are expected to reach the target of 3,000 shipments
per month, that you are being watched to see if you meet that goal, and providing feedback about
how well you are doing to meet that goal.
So, if this is performance management, how does the entire process really work? There are five
major steps involved in the performance management process:
Step 1: Planning
Planning is the first step, and it involves outlining expectations. During planning, supervisors will
establish goals and indicate how an employee's performance impacts the company as a whole.
So, if your boss comes to you and lets you know what she expects from you and what the goal is
for total shipments, then she is completing the planning step.
Step 2: Monitoring
Monitoring, obviously, is the step where performance is monitored. Through continued monitoring
of progress, a supervisor can make adjustments and changes where needed so that an employee
can meet the expected goals outlined in the planning stage. Monitoring also allows a supervisor
to identify any problems. In the earlier example, your boss was monitoring your progress when
she asked about your monthly shipments. She wanted to see if you were aligning with the
company goal of 3,000 shipments.
Step 3: Developing
When monitoring an employee, a supervisor might notice that the employee needs more training
or development.
The developing stage, therefore, is when the employee is given the needed training. For
example, if you did not know how to operate a machine that could help you package boxes
faster, your supervisor might suggest that you attend a training course to learn how to use
the machine. This will help you to better reach the company goal of 3,000 shipments.
Steps 4 & 5: Rating and Rewarding
Rating is the step where the supervisor rates the performance of an employee. After monitoring
an employee, a supervisor is able to rate how well the employee has been doing his or her job.
So, when your boss sat you down to discuss how well you were doing at reaching your goal of
3000 shipments, she was rating your performance.
When an employee performs well, sometimes he or she gets an incentive, prize, or gift of some
type, which is considered a reward. For instance, if you exceed the goal of 3,000 shipments, your
boss might reward you with a raise.
As a manager or employee, understanding the process can be important to success in
the work place.
Determinants of Performance
1. Administrative Uses
Alice can use the data gathered during performance appraisals in many of the
administrative functions of the human resources department. Let's look at some common
administrative uses of performance appraisals.
• Alice can use performance appraisals to make important
employment actions.
Performance appraisals help identify strong and weak performers and thereby
assist in making decisions regarding promotions, transfers, raises, bonuses and
other types of employee rewards. Of course, they can also help determine who
gets laid off and who may get terminated from employment.
• The data collected from the appraisals can be used to evaluate the
effectiveness of the company's training and development programs.
Alice can compare appraisals of employees taken before and after completion of
development programs to see if there is marked improvement.
• Personnel planning also benefits from the data collected from
performance appraisals.
Alice can review the appraisals to determine the strengths and weaknesses of the
company's current complement of workers that will help her determine whether the
company needs additional workers or workers with different skills. Review of
performance appraisals can also help confirm that the company's method of
selecting employees is working well when it's time to add to the workforce.
• Finally, performance appraisals can be used to help document
decisions that may lead to lawsuits.
For example, a well-documented personnel file, including a sound performance
appraisal, will help the company defeat claims of discrimination arising out of the
termination of an employee who was not meeting performance standards.
2. Developmental Uses
Alice will also use performance appraisals for individual employee development. Let's take
a quick look at how Alice can use it for this purpose with an employee named Ben.
The performance appraisal provides a mechanism for Ben to receive feedback. The
results will tell Ben his strengths and will recognize his individual successes. It will also tell
him where he needs to improve.
Of course, good feedback is a two-way street. The performance appraisal process should
offer the opportunity for employee feedback. Ben can provide feedback to Alice regarding
his concerns about performance, including any deficiencies in resources necessary to
meet performance goals.
• The appraisal can be used to identify goals for employees and also
help with evaluation of goal achievement.
For example, Alice can look at Ben's previous appraisal where performance goals
were set and determine whether the goals were achieved during the past period
reviewed. New goals may be set or old goals adjusted during the current appraisal.
• The process can be used to determine individual and organizational
training and development needs.
For example, Ben's personal performance appraisal may indicate performance
deficiencies that some training would quickly remedy, such as becoming more
proficient with new software programs. Alice can also look at performance
appraisals as a group and see if there are any patterns that emerge that call for
organizational changes in development.
The idea is to recognize that the performance appraisal process is not just about
assessing an employee's past performance but also about helping an employee
improve in the future.
Many companies use performance appraisals to assess the performance of their employees.
While performance appraisals provide some notable benefits, they are not without challenges.
Now let’s explore these benefits and challenges.
Performance Appraisal Benefits
Mark is 'celebrating' his first-year anniversary as a junior executive with his company with
a performance review. He's not looking forward to it and is complaining to Alan, a friend
of his that works in human resource management. Mark asks Alan what the heck they're
good for except to make his life miserable.
Alan explains that the overarching benefit of performance appraisals is that they help an
organization and its members become more effective.
Performance appraisals do this by providing a sound basis for many employee-related
administrative decisions and by making important contributions to employee and
organizational development. Performance appraisals help companies identify good
performers and poor performers. A company can use performance appraisals to
determine who should be rewarded with raises and promotions, which employees need
more training and who should be terminated.
Alan explains that the difference between profit and loss is grounded in the effectiveness
of an organization in reaching its goals, and performance appraisals can help ensure
organizational effectiveness. If you analyze performance appraisals as a group, you can
often see patterns that show where performance is good and where performance is poor
across an organization. This information will drive decision-making regarding personnel
planning and applicant selecting as well as training and development.
Performance Appraisal Challenges
Mark is not convinced that performance appraisals are a benefit. He thinks that Alan is
assuming that performance appraisals actually do a good job of judging performance. Alan
admits that implementing a sound performance appraisal does pose some challenges.
The overarching challenge of performance appraisals is accuracy. Alan acknowledges
that if an appraisal doesn't accurately distinguish between effective performance and
ineffective performance, the appraisal may actually be counterproductive. Alan explains
that it's necessary to carefully develop performance criteria or standards that accurately
describe or predict good performance.
Alan also admits that even if the standards used are accurate, rater error is possible. A
rater is the person performing the performance appraisal. Mark asks Alan to provide some
examples, thinking he may need the ammunition if his review goes bad. Alan is happy to
comply:
1. Central tendency error occurs when the rater doesn't give high or low
scores. Instead, all employees are rated about the same, which is average.
2. Raters may also commit leniency errors and strictness errors. A rater is
being too lenient if he rates everyone as excellent and is strict when rating
everyone as poor.
3. The recency effect can create errors and is where you remember recent
events better than earlier events.
For example, a supervisor rating an employee's performance may unduly focus on the
most recent performance success or failure rather than looking at performance during
the entire review period. This may lead to a wrong conclusion.
4. Raters are also subject to contrast error. This type of error results when
an employee rating is either biased up or down based upon the performance
of another employee that has been rated
For example, an employee that objectively should be rated average may get rated very
good if a very poor employee was just reviewed. On the other hand, the same average
performer may be incorrectly rated a poor performer if his review follows a great
performer.
Employee Movement
Assessing movement of employees is essential for any organization. The most basic employee
movement definition encompasses the transfer of employees from an organization to another. It
provides insights about the health of the company pertaining to employee satisfaction and
engagement levels. If a large number of employees are leaving the organization to find better
terms and conditions, it can derail business growth. Hence, it is crucial to conduct an assessment
on the movement of employees regularly.
Lesson Proper:
1. Transfer
• refers to the shifting of an employee from one position to another without
increasing his responsibilities, duties or pay
• necessary because of personal differences of employees or because of
personality conflicts between workers and supervisors
• also rotated from position to position as a training device
A TRANSFER is a horizontal or lateral movement of an employee from one job, section,
department, shift, plant or position to another at the same or another place where his salary,
status and responsibility are the same.
Yoder and others (1958) define transfer as:
“a lateral shift causing movement of individuals from one position to another usually without
involving marked change in duties, responsibilities, skills needed or compensation”. Transfer
may be initiated either by the company or the employee. It also can be temporary or permanent.
1. Production transfer
• This occurs when there is a shortage of employees in one
department and a surplus in another. Employees who are
found to be excesses in the latter department will have to be
transferred to the department where there is a shortage.
2. Replacement transfer
• This is replacing or relieving an old employee from a
heavy workload.
3. Remedial transfer
• This is to rectify a faulty selection in recruitment or
placement
4. Versatility transfer
• This provides the opportunity for an employee to increase
his/her skills by transferring him/her from one department to
another through job rotation. In most instances, this practice
prepares the individual for promotion.
Transfer have several purposes:
Reasons for employee transfers:
1. Employees who are having attachment with the organization and their morale
maybe disturbed due to transfer to some other location.
2. Family members of employee who got transferred maybe psychologically
disturbed because they have to shift their entire family to new location for which it
may take time to get accustomed to new place.
3. Definitely, employee transfer will financially cost to him by way of shifting of his
households and furniture in transportation.
4. In case of your employees, employee transfer may lead to resignation for the
reason he may not willing to leave current location if that location is his native place.
2. Promotion - refers to the shifting of an employee to a new position to which both his
status and responsibilities are increased.
- Advantageous to the firm as well as the employee
- Serves as the recognition of superior performance
- promotion decisions can be made either on the basis of seniority or through merit based on
performance
In Filipino culture, this is tainted with favoritism.
Seniority – refers to one’s length of service in the organization
2. Qualified seniority
• Favored by management
• The length of service is just one of a number of specified factors used
to determine preferences in employment opportunities
3. Separation
Losing an employee for any reason can be one of the most difficult things a human resources
manager has to deal with. Let’s now discuss different ways an employee and employer might part
ways.
• Lay-off is a temporary and involuntary, usually traceable to a negative
business condition.
• A discharge is a permanent separation of an employee.
• Resignation is the voluntary and permanent separation of an employee due
to low morale, low salary, etc. in some instance.
• Forced resignation is used as a good substitute for discharge.
• Retirement can either be voluntary or involuntary. It is voluntary if one retires
upon reaching the age of 65.
A. Absenteeism and Turnover in the Workplace
Employee absenteeism and turnover can be serious problems for organizations. Now,
you'll learn about absenteeism and turnover, their impact and what can be done to reduce
their occurrence.
Meet Caroline. She's a human research manager for a large microchip-manufacturing firm,
and she has a problem. Her company is suffering from high levels of both absenteeism
and turnover.
Impact
A high degree of absenteeism and turnover can cause serious problems for organizations.
Absenteeism hurts productivity and costs money. Caroline's company, for example, is
currently suffering a high degree of absenteeism in its production department. Employees
on the assembly line are often absent. The production employees must operate complex
machinery that requires training, so temp employees don't have the requisite skills to pick
up the slack for absent operators. Thus, production decreases with each absent employee.
This costs the company money.
Moreover, most of the absences are paid leave, which means even though production is
down, labor costs remain the same. Although Caroline suspects that many of these
employees are abusing their sick leave, it's very hard to prove.
Turnover is even a more serious problem for Caroline's company. Not only can turnover
cause productivity problems, but it results in the loss of human resources that may not be
easily replaced. For example, some of the company's best and most innovative engineers
and researchers have voluntarily separated from service to pursue other opportunities.
Loss of these employees not only hurts productivity but weakens the company
strategically because of the specialized skills and creativity that the employees brought
with them. Even if the company can find the same quality of workers, the search, training
and time involved costs serious cash.
Solutions
Caroline needs to find a solution to the company's rampant absenteeism and turnover.
Extrinsic and intrinsic motivational techniques can be used to help reduce turnover.
Extrinsic rewards are a means by which an organization can motivate employees to stay
with the company by providing external rewards. Some common extrinsic inducements
that Caroline can use to encourage employee retention include:
Merit raises
A compelling reason for termination is the next step in the process, and it is the grounds
on which the employee is being terminated. Reasons for termination should be clearly
communicated through a discipline policy. If termination is not justified or the employer
lacks a clear reason for separation, there can be legal ramifications.
Chumsley is costing Mr. Chan plenty of money by breaking the products. However, unless
breaking products is a documented reason for termination stated clearly in the discipline
policy, Mr. Chan will have a difficult time getting rid of Chumsley.
It is a best practice of managers to communicate the specific reason for the termination.
This direct communication clears up any confusion. The employee understands the
reason for termination and will generally agree to that decision.
Set of Alternatives
A set of alternatives is the next step in the process, and it is a set of different measures
which may be taken prior to the decision to terminate an employee.
While this step is not always an option, it is important to know that it's available. These
measures can include:
An exit interview is beneficial for both the employee and the employer. Here's why:
• The affected employee will experience negative emotions about the
termination
• Managers can determine changes that may be needed to the job
description, training needs or workload
• Recruiters can make changes to the recruitment process
It is a best practice of managers to ask open-ended questions in an exit interview. Open-
ended questions are questions that require an explanation rather than a 'yes' or 'no'
response.
Written Statement of Termination
Finally, a written statement of termination is a statement that explains the termination.
The letter of termination may include:
• Reason for termination
• Date of termination
• Benefits available after termination
• Severance pay schedule, if offered
It is a best practice of managers to present the employee with important information
regarding what to expect after the termination. After receiving this information, the
employee:
• Has no reason to make contact with the company in the future
• Can use the information to file for unemployment benefits
• Has a record of his or her employment to use as a reference for a new
job
Four sub-types:
1. Inadequate pay
2. Lack of opportunity for advancement
3. Lack of consideration or appreciation by the employer
4. Internal policies
5. Too much overtime
6. Favoritism
4. Demotion
• refers to an employee’s movement to a lower level or position
• inefficiency/low performance
• to give chance to work in the firm, but in a lower position
A demotion is a reduction in rank, often accompanied by lower pay and status.
There are many situations in which demotion might occur; any kind of rank systems like a police
department or military, for example, uses demotions as a disciplinary tool, while some employees
are at risk due to reorganization or substandard work.
Most people view a demotion as a punishment since it implies that the individual was
incapable of performing at a higher rank. It is opposite to promotion, an elevation in rank
or status
Demotion occurs when an employee moves from one job to another that is lower in pay,
responsibility, and status. Demotion seldom holds positive outcomes for the individual.
Usually, they are associated with discipline; the individual is demoted for poor job performance or
inappropriate behavior such as excessive absenteeism or incompetence.
Demotion may also be due to organizational factors such as reduction of the workforce, market
condition, change of technology and production method, and change of product mix.
Steps on how to demote an employee without triggering conflicts and issues of unfair
treatment:
LEARNING CONTENT
Introduction:
Career Management and Development
Scarlet recently was hired in a marketing position for a toy company called Cheap-O-Fun Games.
She was very excited about her new position and planned on moving up the corporate ladder to
CEO. According to the human resource department at the toy company, her ambitious goals were
achievable. They were very supportive of developing their own employees' careers.
The company has established career management and development systems, where they offer
programs, counseling, planning and workshops to help employees manage their careers.
Managers, employees and organizations can benefit from having a sophisticated career
management and development program in place.
Finally, programs can prepare specific groups of managers for specialized talents and task forces.
At the toy company, Scarlet's two managers attend workshops to improve their managerial, writing,
presenting and communicating skills. The toy company recently decided to venture into
technology games. The spin-off toy line needed skilled managers to develop and market the
products. Cheap-O invested heavily into their star managers by sending them to technology
camps, so they could master the skills necessary to launch the new line.
Benefits for Employees
Employees should also have a career management and development program. Subordinates
need to be challenged and have direction within their daily job. A career development program
can help provide employees direction with career decisions and changes. It can also increase
communication between management and employees. In addition, the program can create a
sense of personal achievement and job satisfaction, by providing excellent feedback on
performance.
An example is that Scarlet wants to be promoted every two years within the toy company. The
company counseling program helps Scarlet set specific goals in education and training (like
getting her MBA) to improve her chances of getting promoted. The toy company is also known for
finding jobs for employees who were unfortunately part of the company-wide layoff.
Benefits for the Organization
Career development and management programs also benefit the overall organization. In fact, the
organization will ultimately benefit the most from implementing a career development and
management system. The company will have better use of employee skills and be able to retain
individuals long-term. The company will also enjoy increased morale, loyalty and communication.
For example, Scarlet is thrilled with the fact that the toy company is investing in her skills. She
feels a sense of loyalty, since Cheap-O is paying for her MBA tuition and even letting her leave
work early to attend evening classes. Jackie has no plans of ever leaving after getting her degree.
Lesson Proper:
Career Management
“Successful careers develop… when people are prepared for opportunities.”
~ Harvard Business Review ~
Career Management Process
Career Management is a life-long process of investing resources to accomplish your future career
goals. It is a continuing process that allows you to adapt to the changing demands of our dynamic
economy. The career management process embraces various concepts: Self-awareness, career
development planning/career exploration, life-long learning, and networking.
Self-Awareness
Look at yourself to discover your interests, skills, personality traits, and values. You can start by
asking yourself the following questions:
• Who are you?
• What interests you?
• What do you like to do?
• What are you good at doing?
• What do you value, what's important to you?
• What are your special assets, skills, and abilities?
• Who needs the talents, skills, and abilities you can provide?
• What work environment and/or arrangements make sense for you?
• What activities do I find fun, motivating, interesting, and enjoyable?
• What skills do you need to acquire to develop and manage your career?
• What personal style or characteristics do I have that are important to me in the
work place?
• Also ask friends, family members, co-workers, professors, or mentors if they see
the same qualities in you as you see in yourself.
Career Development Planning/Career Exploration
Career Development Planning is a process designed to help you to:
• Take the time to think about your job/career goals
• Focus on developing knowledge and skills for your current position and for future
job opportunities
• Think about how you can utilize efficiently your strengths, talents, experience,
and motivation – how can you use all of these aspects to increase your passion
for work!
• Be the architect of your own career development plan – write your goals, make
a decision to have a plan for your career development
• Discuss your career development goals with your manager
• Once you have made a career decision, you need to plan how you will carry out
that decision. A career plan provides vision, structure, direction, and motivation for
your career management process.
What do you think of Career Development Planning?
Usually, when we think of career management, we think of the goals or action items that
we feel we need to do to move our careers forward. Often, we carry these thoughts around in our
heads for long periods of time without ever writing them down. If we do write down our goals, they
often take the form of a list and many times we lose motivation after writing our goals down,
misplace the list, and attain only some of our goals. That is why this method of thinking and just
writing your career goals is not a very motivating or reinforcing process.
It is far more effective, motivating, and productive to think of career planning as a process
that allows us to envision our future careers and then provides us a path to follow in attaining our
goals and realizing our dreams. Career planning is definitely not something that happens once or
twice in one’s career. By the contrary, it is a recurring process of taking the time to assess one’s
identity, setting new goals, creating new career horizons, and celebrating successes as one
develops and becomes more knowledgeable and skilled.
Life-long Learning
Are you surprised to know how much of the daily work is now based around technology?
Computers, smart phones, tablets and other technological devices have drastically affected the
way in which we conduct work. The consequences of these advancements and innovations will
quickly reflect through the economy, affecting many industries and catapulting others into the
limelight. It is clearly up to you to be able to adapt to these ongoing innovations which will be
directly related to how current you keep your knowledge and skills. You need to consider how to
vary your learning investments in time, energy and resources. Examples may include:
credentialed coursework, certificate programs (related to your career/interest), joining cutting
edge projects/committees/task forces, attending conferences, or simply staying current in
professional reading.
Networking
As we have moved to an information, service and technological-oriented economy, our
networking relationships have become essential assets. These relationships will be the source of
information about how emerging fields and industries are evolving. In addition, personal and
professional relationships will transcend specific companies, communities, and industries. Our
ability to interact, respond and connect in our relationships will directly impact our present
performance and future career opportunities.
Remember that keeping connected and knowing how to build good relationships are more
important than ever before. These skills can be developed in applied communication courses,
contact management software, effective listening and your authentic desire to know more people.
A. CAREER PLANNING
• process by which an individual formulates career goals and develops a plan for
reaching these goals.
• defining the career path of people in the organization.
• the HR develops individual career development programs and arranges career
counseling and mentoring of personnel.
How early is too early to start planning your career? And what should you do to prepare for
seeking a job? Now we'll look at a typical career planning timeline, as well as the different stages
of career planning.
Career Planning
Lily is starting college, and she's a little worried. Her parents want her to already be thinking about
her career, but she's not sure what she wants to do. Besides, her friends are all about hanging
out and just having fun in college. They're not thinking about their careers, so why should she?
A career, or occupational path, is a major part of most people's lives. It is the way that most people
will be able to earn a living, and it requires significant time and dedication. When people go to
college, it is usually so that they can make a good living in a career. But when is the right time to
start planning your career? Are Lily's parents, right? Should she be thinking about it now?
There is no right time to begin career planning, but earlier is usually better. This doesn't mean
that people who are at the end of college (or even finished with college) should just give up, but
if Lily starts her career planning now, she increases her chances of being successful in whatever
career she chooses. Let's look at the four stages of career planning:
1. Exploration
Lily's parents want her to be thinking about her career, but Lily just isn't sure what she
wants to do for a living. And how can she know now, at 18, what she should do at age 30
or 40 or 50?
The first stage in career planning is the exploration stage, when a person tries to figure
out his or her strengths and interests. High school and the first year of college are good
times to do this. Like many people at this stage, Lily isn't sure what she wants to do, and
that's okay. She should look at this time as an opportunity to explore what she likes and
doesn't like to do, as well as her strengths and weaknesses.
There are some specific things that Lily can do during this stage to help her figure out what
her likes, dislikes, strengths, and weaknesses are. She can volunteer, join clubs, take a
variety of classes, and attend workshops. She can also talk to others about what careers
are out there. Professors, other students, and alumni are all good sources. Lily may
discover a career that she didn't even know existed!
During this time, Lily should also develop transferable skills. That is, she should develop
skills that transfer to a variety of careers and settings. Things like good writing and
communication, study skills, and computer skills are all important things to know in almost
any job that she ends up taking. This is a good time to take classes or workshops and
hone those skills.
2. Identifying Options
As Lily moves into her sophomore year, she has one or more years of exploration under
her belt. After the exploration stage, the next phase that Lily will enter is the identifying
options stage of career planning. During this stage, a person evaluates their experiences
and figures out a general career path. For example, Lily might discover that she's really
good at math, but not really interested in it. She might find that she really loves social
science classes though. She thinks that she might like to work in one of the social science
fields.
Notice the interests that Lily uncovered in the exploration phase are still pretty general.
There are a lot of things she could do in the social sciences. She could be a psychologist
or a sociologist. She could work for the government, as a college professor, or in corporate
America. Even if she narrows her interests down to just psychology, for example, she has
a lot of options: she can be a psychology professor or treat patients or work in advertising
and marketing or a host of other careers.
During the identifying options stage, Lily's going to want to narrow her focus a little more.
She still wants to keep some options open, but this is a good time for Lily to decide
between psychology and sociology or history, for example. For many people, the
sophomore year in college is a good time to identify options.
People, like Lily, in this stage will want to continue to take a variety of classes, but they
will also take a few classes in their area of interest. They will also likely choose a major.
Beyond that, Lily can start exploring careers in her field of choice by conducting
informational interviews and getting a summer job. She'll also want to craft a resume that
highlights skills and experiences in the general field that she's interested in.
3. Building Skills
As Lily moves into her junior year, she knows that she wants to major in psychology, and
she knows that she doesn't want to see patients. She wants to do research, either at a
university or another research institution. The next stage in career planning is the building
skills stage, which involves gaining experience and skills that will propel a person into the
career he or she wants. During this time, Lily will want to gain experience through
internships and build skills through workshops.
Not only that, but Lily will also want to network with people in the industry she's interested
in: psychological research. She can attend networking events, go to workshops, and meet
with alumni at events put on by the college. Another thing that Lily will want to do is set
realistic career goals. She might dream of being a Nobel Prize winner, but this is the time
for her to set the goals that will get her there. She will want to understand what goes on
day-to-day in her chosen field.
A good way to understand what realistic career goals are and to understand what goes on
day-to-day is to shadow people at work. That is, she can talk to people in the field, and
ask to follow them around for a few days. This will give her the chance to network and ask
questions, but it will also let her see what it's really like to work in that field. She might
discover that it's not right for her after all!
Lily will want to start this phase by finalizing goals so that she can figure out what the best
job for her is. For example, if she wants to work in a government research facility, the jobs
she looks for will be very different than if she wants to get a job as a researcher for an
advertising company. Both of those career tracks are in research psychology, but they are
vastly different!
Once she has finalized her goals, she will want to prepare for her job search by revising
her resume and performing mock interviews. She can find help with both of those things
in her school's career center. She can also seek out help from friends and family. Many
jobs are found through networking, so Lily will also want to attend networking and job
planning events to help her find the perfect entry-level job on the career path she wants
to pursue.
Implementing Career Development
Basic Steps:
1. CAREER PATHING
• a technique that addresses the specifics of progressing from one job to another
in an organization.
Career Self-management – the ability to keep up with the changes that occur within the
organization and the industry and to prepare for the future.
1. Determine or reconfirm the abilities and end behaviors of the target job.
2. Secure employee background data and review them for accuracy and
completeness.
3. Undertake a needs analysis comparison that jointly views the individual and
the targeted job.
4. Reconcile employee career desires, developmental needs, and targeted
job requirements with those of organizational career management.
5. Develop individual training work and educational needs using time-activity
orientation.
6. Blueprint career path activities.
1. CAREER COUNSELING
• the process of helping employees develop their careers.
• help employees make career choices and develop strategies in dealing with
problems and challenges in their careers.
1. SUCCESSION PLANNING
• It is the structured approach identifying, developing, and retaining employees
to prepare them to fill key areas or positions that are critical to an organization’s
long-term goals.
1. Learners – individuals with high potential for advancement who are performing
below standard
2. Stars – individuals presently doing outstanding work and having a full potential for
continued advancement; these people are on fast-tract career paths
3. Solid Citizens – individuals whose present performance is satisfactory but whose
chance for future advancement is small; these people make up the bulk of the
employees in most organizations
4. Deadwood – individuals whose present performance has fallen to an
unsatisfactory level; they have little potential for advancement
Outplacement
• refers to a benefit an employer provides to help an employee terminate
employment with the organization and get a job somewhere else
Planning to begin a career can be a stressful time. The best candidates start early and go
through four stages of planning: the exploration stage, identifying options stage, building skills
stage, and, finally, the targeted job search stage.
END of LESSON 9
Lesson Proper:
Employee Morale
Definition:
Employee morale is vital to organization culture - a positive collective attitude will create a positive
working environment for everyone. If your organization has a poor morale or a culture of suffering
then there is a possibility that in your organization employees have a low or negative morale that
can adversely affect the productivity of the organization. It can most certainly lead to greater
employee attrition, just to begin with.
Detecting Low Morale
There are some employees who worked in a business or organization that just felt 'off. Maybe
their fellow employees were grouchy, unhappy, or unsatisfied. Perhaps they complained openly
about management, their workload or how little they thought they were getting paid. They could've
been perpetually tardy or absent from work, cared little about the quality of the product or service
they produced, or caused accidents or injuries due to a careless attitude.
Such experience could be attributed to poor staff morale. Let's talk more about what is meant by
staff morale and dive into why it's important to the overall success of a business.
What is Staff Morale?
Employee morale is the overall viewpoint of individuals in the workplace, including emotions,
attitudes, outlook, and satisfaction level. It is the result of working conditions and attitudes, rather
than the cause. Good morale among employees leads to positive, confident, and satisfied
employees, while low morale can be observed in negative, angry, and uncaring employees who
fail to maintain productivity and safe business practices.
Morale, whether positive or negative, can influence a number of areas, including:
When employees feel good about their work environment, can achieve their goals and objectives
and are treated with respect and care, morale is high. If employees are unhappy or feel
unappreciated, cannot meet their objectives or clash with management or other co-workers,
morale may be low. The importance of positive morale in the workplace cannot be diminished.
3. Working conditions - If working conditions are poor (too hot, too cold,
inadequate supplies, poor maintenance of equipment, accessibility to appropriate
manuals and materials, etc.), employees' morale may suffer.
4. Status - Workers who feel like they're a part of a company's overall goals and
plans can feel like greater contributors. Employees who feel like their work is
unappreciated, who are carrying too heavy of a workload, or who are overlooked
for recognition or a promotion given to another employee may develop bad
attitudes about the business.
1. Employee Factor – attitude and values are the results of his kind of education,
social environment and economic status.
2. Management Practices – the quality of supervision and management practices
are the making of the front managers and supervisors.
3. Environment Communication – open communication between management
and employees is basic in all relationships.
4. Social and Environmental Factors – Mental and emotional conditions are
influenced by the social forces to which the employee is exposed daily.
Indicative of Good Performance
So how can you measure the morale of employees? It’s easy! Here are a few tips that you can
use to check if the employee morale is high or not:
2. Your managers must be coaches: Over the last decade or so, the definition
of a manager has slightly shifted from being a taskmaster to a coach. Your
managers should be like coaches. They should be able to help employees learn
and grow within the organization. A good manager or a supervisor will not only
motivate an employee to perform better but also help them resolve problems and
related issues.
1. Organization Itself: While it may sound surprising, but the organization itself is
one of the biggest and most important factors that affect employee morale. An
organization influences an employee’s attitude towards his/her work. The
reputation of an organization can certainly build up for better or worse, their attitude
towards it.
Employee morale is determined by how employees view their work environment and their overall
level of satisfaction in their workplace. Employee morale has a direct effect on employee retention.
A disinterested or unhappy employee will not stay for long in an organization that he/she cannot
rationalize their goals and progress with.
Here are the 4 simple ways of boosting employee morale in your workplace as mentioned
by HR leaders across the globe:
Extrinsic Motivation
You are extrinsically motivated when you are influenced to act by a factor external to yourself.
The classic external motivators are rewards and punishments. External factors are often out of
your control.
For example, let's say you are an insurance salesperson. If you exceed your production
goals, you will receive a bonus. On the other hand, if you fail to meet your minimum
production goal by a significant amount, you may be fired. The possibility of a reward (the
bonus) or a punishment (getting fired) are factors that influence your work behavior but
come from outside of you. Moreover, the conditions for receiving an award or punishment
are not in your control, but in the control of an outside force, your employer.
Intrinsic Motivation
You are intrinsically motivated when forces inside you rather than outside you influence your
behavior. Intrinsic motivation can occur when you find a work task satisfying and are competent
at performing the task. Management techniques used to facilitate intrinsic motivation includes
such things as acknowledging employee perspectives, offering choices, encouraging initiative,
and giving meaningful feedback.
Let's say you are manager at an insurance company. In the past, you made your sales
team follow your carefully designed marketing and sales plan. However, you note that
your team's productivity has declined and your rate of resignations have increased
significantly over the past three quarters. You hold a sales meeting with your team and
ask each member's perspective on the development of a new sales and marketing plan.
You eventually develop a new plan utilizing the insights offered by the team members.
You also allow each team member the choice of using the new plan or a plan they
developed so long as it complies with some minimum requirements. You schedule weekly
meetings with each member of your team to provide and receive feedback on the progress
of the plans, including any suggested adjustments. After one quarter of implementation,
employee satisfaction is up, production is up, and employee attrition is down. You have
successfully facilitated your employees' intrinsic motivation.
Lesson Summary
High employee morale can help a business or organization achieve its objectives and goals.
Morale is the collective set of attitudes, emotions, and satisfaction exhibited by employees. Morale,
whether high or low, is typically the result of any number of issues faced in the workplace,
including feelings about salary, how management leads and interacts with employees, and
working conditions. An employee's status, or how they perceive their place in an organization,
can also be impactful. Achieving high morale among employees is important for a number of
reasons, including, but not limited to, increased productivity, less employee turnover, and more
attention to detail.
Motivation is important to help employers meet their full potential in the workplace. While there
are numerous theories of motivation, most can be distilled down to either extrinsic motivation or
intrinsic motivation. Extrinsic motivation is when your behavior is influenced by outside factors,
such as rewards and punishments, while intrinsic motivation is when you are influenced by factors
inside of you, such as the feeling of job satisfaction and competency. Intrinsic motivation may not
work for some tasks.
END of LESSON 10
Lesson Proper:
Job Evaluation Defined
Carmi is a human resource specialist for a medical supplies manufacturing company. Her
boss has asked her to perform a job evaluation for all the positions currently held by
employees of the company.
Carmi's employer will use job evaluations to determine the comparative worth of each job,
which will then help determine the basis of the wages and salaries offered for each job. It
helps ensure that everyone is paid fairly relative to one another based upon the value they
bring to the organization. For example, if a salesperson is paid more than an accountant, then
there's probably a problem with pay equity because an accountant generally brings more
value than a salesperson.
Objectives of Job Evaluation
1. Compare duties, responsibilities and demands of a job with other jobs in the
organization.
2. To determine which jobs should get more pay than others
3. Determine hierarchy and rank of various jobs in an organization.
4. Ensure fair and equitable wages based on the relative worth of a job.
5. Minimize wage discrimination based on gender, age, etc.
Principles of Job Evaluation
Moreover, there are different types of methods available for Carmi to use. Let's take a
look at some of her options.
1. Job Ranking
Perhaps the easiest method that Carmi can use for job evaluation is the job ranking method.
This method involves putting all jobs in an organization in rank order of importance based
upon their contributions towards the achievement of an organization's goals. Carmi may
perform the ranking herself after performing a job analysis of each position or bring in subject
matter experts more familiar with the jobs. For example, a marketing analyst will receive a
higher ranking than a janitor.
2. Classification
Carmi can also use the classification method. In this method, a series of classes and grades
are defined. Each class will describe a group of jobs. Each grade in a class will represent
different levels of difficulty and responsibility. Carmi will sort the jobs into each class by
matching up the job descriptions for each job with the class and grade descriptions and assign
the job to the class that's the best match.
Let's look at an example.
Let's say that Carmi wants to develop a class for administrative workers. Within this class, she
may have three different grades, or levels, based upon the nature of the work and the level of
responsibility. She calls them A-1, A-2 and A-3:
Carmi may place the executive assistant to the company's president in the A-3 grade, while a
mail clerk would be placed in grade A-1. Of course, Carmi may develop classes and grades
of other types of job categories such as research, management and marketing.
3. Point-Factor Rating
The point-factor rating method is another approach that Carmi can use. The point factor
method uses specific factors to determine the relative value of a job compared to the others
in the organization. Let's see how it works.
In this method, Carmi will select compensable factors related to the job, which are factors that
have value to the company such that the company is willing to pay for them. Examples of a
compensable factor may be problem-solving or supervisory skills. Some factors are more
important or valuable than others, so Carmi will give a relative weight to each factor.
Carmi will then assess each job by rating it against each of the factors. The score received for
each job will be matched up to a specific pay level based on a pay scale that was developed
through research. It's important that the factors selected are based on the nature of the jobs.
Consequently, different factors are created for different groups of jobs, often called job clusters.
For example, there may be a cluster for production jobs, administrative jobs, marketing jobs
and management jobs.
4. Factor Comparison
The factor comparison method is another option for Carmi to consider. The factor comparison
method assumes that all jobs have five universal factors:
• Mental requirements are such things as general intellect, reasoning ability
and creativity
• Skills and training in work tasks
• Physical requirements include the ability to sit, stand, walk, lift a certain
amount of weight, among other things
• Responsibilities
• Working conditions, which include temperature, lighting, noise, hazards and
hours of work required
A compensation scale is developed that contains each of these five factors. Evaluators, like
Carmi, will rank the value of each individual factor in each job. For example, Carmi may be
evaluating a department head position that receives relatively high scores regarding mental
requirements, skills and responsibilities, but lower scores in physical requirements and
working conditions.
Summary:
3. Broad banding
• A base-pay technique that reduces many different salary categories
to several broad salary bands.
• Clustering of jobs into wide categories or groups of jobs.
Nowadays, people often don't remain at their jobs as long as Yoshi. Each time a new employee
is hired, the company spends money on hiring and training that it could have spent elsewhere.
Having a good reward system helps keep employees happy, loyal to the company, and eager to
move up the ladder. Rewards, like public recognition and additional pay, motivate employees to
work harder.
Reward management is important for the following reasons:
• Retains employees
• Attracts new employees
• Avoids the cost of hiring and training new employees
• Builds loyalty and honesty
• Creates a healthy work environment
• Encourages positive attitudes and behavior
• Makes employees more likely to seek advancement
• Strengthens the company's reputation
• Reward Management in Practice
Let's look at Yoshi’s situation again. Yoshi started at the bottom of the ladder with his old company.
In order to advance, he had to work 60-hour weeks and build relationships with upper
management. When Yoshi wanted to improve his skills by obtaining a degree in business, his
company didn't have a reward program to help with his tuition.
In contrast, at Yoshi’s new job, he's offered bonuses for performance, performance-based
promotions two years in a row, tuition reimbursement, health care coverage, points to buy items
from the internal company store, stock options, job training programs, and professional
development programs. His prior job had offered only basic health care coverage, vacation time,
and cost-of-living raises of 2% annually if the company met yearly goals. While Yoshi appreciated
these benefits, they didn't motivate him to succeed, and he didn't feel rewarded for his strong
work.
Work environment
Compensation Incentives
- All the extrinsic rewards that employees - Rewards offered in addition to the base wage
receive in exchange for their work or salary and usually directly related to
performance
- Composed of the base wage or salary, any
incentives or bonuses and any benefits. - Given to employees for performing beyond
the standard requirements.
Benefits
- Rewards employees receive as a result of
their employment and position with the
organization
Pay
- Refers only to the actual dollars/pesos employees receive in exchange for their work.
Base Salary Payment for doing a job Every employee in the organization.
Incentives Payment for doing a job well done. A few good performers.
• Employee’s Compensation
o -it covers expenses incurred as a result of work-
related injury, sickness, disability or death. The
premium remitted to the Employee’s Compensation
Commission is borne solely by the employer.
• Thirteenth Month Pay
o -it is designed to augment the annual income of the
individual and is equivalent to one month’s pay of the
employee. Twelve months of continuous service
entitles the employee to receive such amount
usually at the end of the year.
• Paid Vacation, Paid Sick Leave, and Paid Holidays
o -these are days when employees are still paid even
if they do not report for work.
• PAG-IBIG Fund Benefit
o
-it is managed by government and extends housing
and other types of loans to members. The employer
matches the employee’s contribution. The combined
amount earns dividends on an annual basis and the
entire amount plus the earnings are collected by the
employee upon retirement.
• PhilHealth (formerly MEDICARE)
o -it provides medical insurance benefits to employees
whether in the government or private firms. On a
limited basis, the program covers expenses related
medical expenses of the member and his or her
dependents.
• Paternity Leave
o -it provides relief to families with a newborn child. All
married male employees are entitled to seven (7)
days leave with full pay for each of the first four
deliveries of his legitimate spouse.
2. Voluntary Benefits - These are benefits that are voluntarily given by the companies in
addition to those which are legally mandated.
Reward management is important for any business that has employees. Human
resources is usually in charge of the reward management program in a company. This
lesson discusses the theory and importance of reward management systems.
In this lesson we will also discuss about Effective Reward Systems. Have you ever
wondered why some employees are more motivated than others to work at a higher level
of productivity? This lesson also explains how managers use intrinsic and extrinsic
rewards to reinforce positive employee behavior.
Lesson Proper:
Nowadays, people often don't remain at their jobs as long as Yoshi. Each time a new employee
is hired, the company spends money on hiring and training that it could have spent elsewhere.
Having a good reward system helps keep employees happy, loyal to the company, and eager to
move up the ladder. Rewards, like public recognition and additional pay, motivate employees to
work harder.
Reward management is important for the following reasons:
• Retains employees
• Attracts new employees
• Avoids the cost of hiring and training new employees
• Builds loyalty and honesty
• Creates a healthy work environment
• Encourages positive attitudes and behavior
• Makes employees more likely to seek advancement
• Strengthens the company's reputation
• Reward Management in Practice
Let's look at Yoshi’s situation again. Yoshi started at the bottom of the ladder with his old company.
In order to advance, he had to work 60-hour weeks and build relationships with upper
management. When Yoshi wanted to improve his skills by obtaining a degree in business, his
company didn't have a reward program to help with his tuition.
In contrast, at Yoshi’s new job, he's offered bonuses for performance, performance-based
promotions two years in a row, tuition reimbursement, health care coverage, points to buy items
from the internal company store, stock options, job training programs, and professional
development programs. His prior job had offered only basic health care coverage, vacation time,
and cost-of-living raises of 2% annually if the company met yearly goals. While Yoshi appreciated
these benefits, they didn't motivate him to succeed, and he didn't feel rewarded for his strong
work.
THE ORGANIZATIONAL REWARD SYSTEM
Organizational Reward System
• Organizational system concerned with the selection of the types of rewards to
be used by the organization.
Organizational rewards
• Rewards that result from employment with the organization
• Includes all types of rewards, both intrinsic and extrinsic
Effective Reward Systems
A motivated workforce can be a significant factor in organizational success. When employees are
motivated to work at higher levels of productivity, the organization as a whole runs more efficiently
and is more effective at reaching its goals. This is in contrast to an unmotivated workforce, who
can negatively disrupt an organization and distract employees from their work. For this reason, it
is imperative that managers understand the power of reward systems and how they are used to
influence employee behavior.
Rewards are positive outcomes that are earned as a result of an employee's performance. These
rewards are aligned with organizational goals. When an employee helps an organization in the
achievement of one of its goals, a reward often follows. There are two general types of rewards
that motivate people: intrinsic and extrinsic.
Intrinsic rewards
• Rewards internal to the individual and normally derived from involvement in
certain activities or tasks
Intrinsic motivation is internal to the person in that it is something that you have to offer yourself
and is driven by personal interest or enjoyment in the work itself. Because intrinsic motivation
exists within the individual, achieving it does not depend on others. Some people believe that the
most powerful rewards come from inside a person.
Think of that sense of accomplishment you feel once you have overcome a significant challenge
or completed an assignment or work project that required a good deal of effort. Intrinsic motivation
provides that personal pat on the back or natural high that reflects a person's ability, competency,
growth, knowledge and self-control over their endeavors. Employees who are intrinsically
motivated tend to work at higher levels of productivity and strive to develop professionally. Intrinsic
rewards include things such as: personal achievement, professional growth, sense of pleasure
and accomplishment.
Extrinsic rewards
• Rewards that are controlled and distributed directly by the organization and
are of tangible nature
Extrinsic motivation is based on tangible rewards. Unlike intrinsic motivation that is self-
administered, extrinsic motivation is external to the individual and is typically offered by a
supervisor or manager who holds all the power in relation to when extrinsic rewards are offered
and in what amount. Extrinsic rewards are usually financial in nature, such as a raise in salary, a
bonus for reaching some quota or paid time off. However, extrinsic rewards can also be as simple
as getting the better office, verbal praise, public recognition or awards, promotions and additional
responsibility.
These material rewards can be motivating to employees because pay, time off, advancement and
recognition are important to most workers. Just imagine how de-motivating it would be to
underpaid, overworked and unappreciated, and you can quickly see how important extrinsic
rewards are to organizational success. An extrinsically motivated person will work on a task that
they do not particularly care for simply because of the anticipated satisfaction that will come from
some extrinsic reward. For example, the employee may not be interested in the product he is
selling, but reaching the quota means the bonus, therefore he is motivated to put forth the effort
he needs to meet the sales quota.
Intrinsic versus Extrinsic Rewards
Work environment
Compensation Incentives
- All the extrinsic rewards that employees - Rewards offered in addition to the base wage
receive in exchange for their work or salary and usually directly related to
performance
- Composed of the base wage or salary, any
incentives or bonuses and any benefits. - Given to employees for performing beyond
the standard requirements.
Benefits
- Rewards employees receive as a result of
their employment and position with the
organization
Pay
- Refers only to the actual dollars/pesos employees receive in exchange for their work.
Base Salary Payment for doing a job Every employee in the organization.
Incentives Payment for doing a job well done. A few good performers.
• Employee’s Compensation
o -it covers expenses incurred as a result of work-
related injury, sickness, disability or death. The
premium remitted to the Employee’s Compensation
Commission is borne solely by the employer.
• Thirteenth Month Pay
o -it is designed to augment the annual income of the
individual and is equivalent to one month’s pay of the
employee. Twelve months of continuous service
entitles the employee to receive such amount
usually at the end of the year.
• Paid Vacation, Paid Sick Leave, and Paid Holidays
o -these are days when employees are still paid even
if they do not report for work.
• PAG-IBIG Fund Benefit
o
-it is managed by government and extends housing
and other types of loans to members. The employer
matches the employee’s contribution. The combined
amount earns dividends on an annual basis and the
entire amount plus the earnings are collected by the
employee upon retirement.
• PhilHealth (formerly MEDICARE)
o -it provides medical insurance benefits to employees
whether in the government or private firms. On a
limited basis, the program covers expenses related
medical expenses of the member and his or her
dependents.
• Paternity Leave
o -it provides relief to families with a newborn child. All
married male employees are entitled to seven (7)
days leave with full pay for each of the first four
deliveries of his legitimate spouse.
2. Voluntary Benefits - These are benefits that are voluntarily given by the companies in
addition to those which are legally mandated.
In this lesson, we'll define labor relations and labor union. You'll also learn the process of
establishing a labor relationship, which includes forming a bargaining unit, negotiating
contracts and administrating contract agreements. Hope you Enjoy!
Lesson Proper:
2. Union or labor representatives are elected by the unionized employees. The employees
participating in this process are usually on both sides of the fence. They strive to ensure the
company's success, but also desire a favorable employee environment. The labor
representatives highlight important factors and concerns for the employees. They communicate
the majority and common interest to ensure the needs of the employees are detailed in the
agreement.
3. Mediators are third party neutrals who help resolve disagreements between managers and
labor representatives. Although the solutions are not mandated or legally binding, they do offer
advice and communicate the risks and costs of failing to reach an agreement.
4. While the government is not directly involved in contract agreement negotiations, it can affect
decisions on both sides through the changes in labor law legislation.
Contract Administration
Once the contract terms are set, administration of the terms and conditions is a continual process.
Enforcement of the contract usually occurs daily between union representatives and management.
Sometimes rights disputes arise. These are disagreements over contract terms or
interpretations. Typically, resolving rights disputes accounts for the majority of interaction
between management and union representatives.
Once Anna gets the Hamilton Manufacturing executives up to speed on how labor relations work,
they can deliberate about whether a union will work for their employees. Considering that the
majority of employees are interested in a union, the next step would be for them to create
a bargaining unit and get the ball rolling.
Labor Unions: Definition and Importance
Labor unions have a significant impact on employees, businesses, and even the political system.
Knowing about what labor unions are and their history will help you understand them and the
actions they take in the business and political world.
A labor union is an organization of employees that is created for the purpose of dealing with
employers concerning employee-employer relations, including grievances, labor disputes, wages,
rates of pay, hours of employment, and other conditions of work. A labor union negotiates on
behalf of its members in a process known as collective bargaining. They are also usually active
in the political process and in lobbying about issues of importance to their members.
Types of Labor Unions
1. Craft or Trade Unions – are those whose membership consists of workers engaged in a
particular trade.
Some sources define trade unions as another word for labor unions. However, labor
unions are often correlated with a specific group of people, while a trade union is usually
connected with a group of skilled workers that are sometimes in the same profession. Both,
however, were created by workers (independent of employers) to apply control over their
lives, the future of their families and fair wages.
Workers formed trade and labor unions to unite, promote and protect their common
interests. They wanted a system in place that would assure fair practices and improved
working conditions. All members would be represented by an elected spokesperson who
would negotiate and represent the needs and demands of the members to employers.
2. Industrial Unions – are those whose members are employed in a given industry regardless
of the type of work performed by each member
Union’s Contributions and Effects
1. Local labor union – one which draws membership from a local industry or
company
2. Independent union – operates at the enterprise or company level and whose
legal personality is derived through an independent action for registration
3. National union – composed of at least ten (10) locals/chapters or affiliates each
of which must be a duly certified or recognized collective bargaining agent
Rights of Legitimate Labor Organizations
1. Security personnel
2. Managerial employees
A closed shop is a workplace that would require John or any other employee to join the union
before or immediately upon hiring. However, this form of shop is no longer used and has been
illegal since 1947.
It’s more likely that John’s store will become what is known as a union shop. Employees generally
have until 30 days after their hiring to join the union, but ultimately must join to keep their
jobs. Contingency union shop provisions make it so that if a state is no longer a right-to-work
state, the shop automatically converts to a union shop. A right-to-work state is a state that does
not allow union security provisions.
What if John doesn’t want to join the union? Since labor unions negotiate on behalf of all
employees in the workplace, they do not want employees in the workplace who do not pay union
dues. The argument can be made that it isn’t fair for some employees to benefit from the union’s
work without having to pay for services. An agency shop provision would require John to still pay
union dues if he chooses not to join. Under the provision, if he does not pay the fee, he can lose
his job. John has the legal right to request a partial refund for any dues that are used for political
activities and don’t directly relate to employee contract negotiations, grievances, or administrative
costs.
In a hiring hall provision, the employer hires union members who have been referred by the
union. This is a common practice in the construction and maritime industries. The practice benefits
unions because employees must be active dues-paying members who rely on the union to find
work. Rather than go directly to the employer, workers typically find jobs through their union.
Any action that adds convenience and efficiency for the union's benefit boosts union security. One
provision that caught John's attention was the suggestion of a preferential treatment clause. If
John's company were to open additional hardware stores, John and other existing union members
would have hiring preference for jobs at the new location. This provision allows the union to
maintain membership numbers and allows the company retain experienced workers.
A dues checkoff provision would allow John to sign an agreement permitting automatic dues
payments out of his paycheck. John will not have to worry about writing a separate check each
month. Although this doesn't guarantee that employees will join the union, once the dues checkoff
is in place, it keeps the union from having to bill and collect individual payments from employees.
Since the payments are automatic, the union can count on money regularly flowing in without
requiring a lot additional collection work. This frees up time and resources for the union to focus
on other matters.
END of LESSON 13
LEARNING CONTENT
Introduction:
In this lesson, we'll define labor relations and labor union. You'll also learn the process of
establishing a labor relationship, which includes forming a bargaining unit, negotiating
contracts and administrating contract agreements. Hope you Enjoy!
Lesson Proper:
What Are Labor Relations?
At the heart of labor relations is the desire of both management and labor to create an efficient
and effective organization. When this happens, management is planning, organizing, and
directing work such that employees understand their roles and responsibilities in a way that they
can produce the desired outcomes. There is a healthy work environment and strong working
relationships amongst everyone. The employees have an opportunity to contribute and each feel
valued as part of the collective effort of the unit. A mutual respect exists between management
and employees. Life is good and everyone is happy.
Achieving and sustaining this ideal state does not always occur; and some might argue, never
fully happens. Employees do not always meet expectations, conflict and other factors challenge
group dynamics, laws and other compliance issues exist, and sometimes managers and
supervisors do not lead or address a given situation well. The domain of labor relations exists in
a dynamic environment.
Hamilton Manufacturing is a midsize company that makes curtains. The company has heard
rumblings of its employees wanting to join a union.
Hamilton Manufacturing hires a consultant, Anna, to explain the labor relations process to
executives. The company in its current structure is considered non-unionized, meaning
employees' work conditions and environment are solely determined internally by the
management.
So how does Anna explain labor relations to Hamilton Manufacturing?
For the rest of this lesson, we'll explore things she might cover about the labor relations process,
such as advantages and disadvantages of a unionized structure, forming a bargaining unit,
contract negotiation and administration of the contract agreement.
Advantages & Disadvantages of Unions
Now let's see how employees organize themselves to join a union.
Bargaining Unit Formation
Anna first asks the executives if they've polled the employees to determine their interest in being
unionized. One of the executives says he believes a majority percentage of the employees
showed interest.
It's important to note that there must be a majority to legally create a bargaining unit, which is a
group of employees represented by a union. Bargaining units have commonality in responsibilities
and duties, performance review, geographic location, and pay.
Contract Negotiation
There are several participants in this process:
• managers,
• union representatives,
• mediators
• and the government.
1. The managers represent the interests of the company. If the managers or human resource
representatives are not skilled in unionization, the company may hire a management consultant
to communicate the important concerns.
2. Union or labor representatives are elected by the unionized employees. The employees
participating in this process are usually on both sides of the fence. They strive to ensure the
company's success, but also desire a favorable employee environment. The labor
representatives highlight important factors and concerns for the employees. They communicate
the majority and common interest to ensure the needs of the employees are detailed in the
agreement.
3. Mediators are third party neutrals who help resolve disagreements between managers and
labor representatives. Although the solutions are not mandated or legally binding, they do offer
advice and communicate the risks and costs of failing to reach an agreement.
4. While the government is not directly involved in contract agreement negotiations, it can affect
decisions on both sides through the changes in labor law legislation.
Contract Administration
Once the contract terms are set, administration of the terms and conditions is a continual process.
Enforcement of the contract usually occurs daily between union representatives and management.
Sometimes rights disputes arise. These are disagreements over contract terms or
interpretations. Typically, resolving rights disputes accounts for the majority of interaction
between management and union representatives.
Once Anna gets the Hamilton Manufacturing executives up to speed on how labor relations work,
they can deliberate about whether a union will work for their employees. Considering that the
majority of employees are interested in a union, the next step would be for them to create
a bargaining unit and get the ball rolling.
Labor Unions: Definition and Importance
Labor unions have a significant impact on employees, businesses, and even the political system.
Knowing about what labor unions are and their history will help you understand them and the
actions they take in the business and political world.
A labor union is an organization of employees that is created for the purpose of dealing with
employers concerning employee-employer relations, including grievances, labor disputes, wages,
rates of pay, hours of employment, and other conditions of work. A labor union negotiates on
behalf of its members in a process known as collective bargaining. They are also usually active
in the political process and in lobbying about issues of importance to their members.
Types of Labor Unions
1. Craft or Trade Unions – are those whose membership consists of workers engaged in a
particular trade.
Some sources define trade unions as another word for labor unions. However, labor
unions are often correlated with a specific group of people, while a trade union is usually
connected with a group of skilled workers that are sometimes in the same profession. Both,
however, were created by workers (independent of employers) to apply control over their
lives, the future of their families and fair wages.
Workers formed trade and labor unions to unite, promote and protect their common
interests. They wanted a system in place that would assure fair practices and improved
working conditions. All members would be represented by an elected spokesperson who
would negotiate and represent the needs and demands of the members to employers.
2. Industrial Unions – are those whose members are employed in a given industry regardless
of the type of work performed by each member
Union’s Contributions and Effects
1. Local labor union – one which draws membership from a local industry or
company
2. Independent union – operates at the enterprise or company level and whose
legal personality is derived through an independent action for registration
3. National union – composed of at least ten (10) locals/chapters or affiliates each
of which must be a duly certified or recognized collective bargaining agent
Rights of Legitimate Labor Organizations
1. Security personnel
2. Managerial employees
A closed shop is a workplace that would require John or any other employee to join the union
before or immediately upon hiring. However, this form of shop is no longer used and has been
illegal since 1947.
It’s more likely that John’s store will become what is known as a union shop. Employees generally
have until 30 days after their hiring to join the union, but ultimately must join to keep their
jobs. Contingency union shop provisions make it so that if a state is no longer a right-to-work
state, the shop automatically converts to a union shop. A right-to-work state is a state that does
not allow union security provisions.
What if John doesn’t want to join the union? Since labor unions negotiate on behalf of all
employees in the workplace, they do not want employees in the workplace who do not pay union
dues. The argument can be made that it isn’t fair for some employees to benefit from the union’s
work without having to pay for services. An agency shop provision would require John to still pay
union dues if he chooses not to join. Under the provision, if he does not pay the fee, he can lose
his job. John has the legal right to request a partial refund for any dues that are used for political
activities and don’t directly relate to employee contract negotiations, grievances, or administrative
costs.
In a hiring hall provision, the employer hires union members who have been referred by the
union. This is a common practice in the construction and maritime industries. The practice benefits
unions because employees must be active dues-paying members who rely on the union to find
work. Rather than go directly to the employer, workers typically find jobs through their union.
Any action that adds convenience and efficiency for the union's benefit boosts union security. One
provision that caught John's attention was the suggestion of a preferential treatment clause. If
John's company were to open additional hardware stores, John and other existing union members
would have hiring preference for jobs at the new location. This provision allows the union to
maintain membership numbers and allows the company retain experienced workers.
A dues checkoff provision would allow John to sign an agreement permitting automatic dues
payments out of his paycheck. John will not have to worry about writing a separate check each
month. Although this doesn't guarantee that employees will join the union, once the dues checkoff
is in place, it keeps the union from having to bill and collect individual payments from employees.
Since the payments are automatic, the union can count on money regularly flowing in without
requiring a lot additional collection work. This frees up time and resources for the union to focus
on other matters.
END of LESSON 13
Lesson 14: Collective Bargaining
LEARNING CONTENT
Introduction:
It's called 'collective' because the opinions of both sides, or the entire group, are
considered. The concept is based on fairness and equality. Each side selects
representatives, and those representatives negotiate on behalf of the group. There are two
types of collective bargaining. The first is periodic bargaining. This type of bargaining
occurs at irregular intervals, as problems or needs must be addressed. As a need arises,
representatives are selected and the need is addressed.
The second type is continuous bargaining. This is a popular and proactive approach
because needs are continuously addressed through the use of various permanent
committees. When unions use collective bargaining, the end result is put into a collective
bargaining agreement. This is a formal, written contract memorializing the bargaining
agreement. The agreement can be drafted and amended just like any other written contract.
In this lesson, you will also learn what collective bargaining is and be given a general
outline of its process. Hope you Enjoy!
Lesson Proper:
Now let’s talk more about Collective Bargaining which is a vital process in labor-management.
•It is the process by which a labor union and employer negotiate over the
terms of the employment relationship.
•The primary goal of collective bargaining is the achievement of a
Collective bargaining collective bargaining agreement between the union and employer.
•A typical bargaining agreement will contain the general terms governing
the employment relationship, including, but not limited to, wages,
benefits, hours, promotion, and grievance procedures.
A bargaining unit is a group of employees that is represented by the union in negotiations with
the employer. A majority of employees in the bargaining unit must agree on the representative as
their sole and exclusive representative in negotiations with the employer. Non-union employees
will be bound by the collective bargaining agreement.
Now, we will explore the function of collective bargaining and the parties it serves. Collective
bargaining is a group process of negotiating work-related issues with the anticipation of coming
to an agreement. Bargaining or negotiating is done between two parties: the employer and the
employees. The employees are represented by a collective bargaining unit. Employees form a
union, which is a group of workers who band together to protect their rights.
bargain, or
prepare, discuss, propose, and settle.
negotiate
Let's take a visit to Lenny's Trans-Atlantic Shipping Company. Lenny's employees are known as
longshoremen. These are employees who load and unload ships. The longshoremen are part of
a large union called the United Longshoremen of America. Lenny and his employees are at odds
about a pay raise. Lenny and the union are going to meet soon to discuss the pay raise. Each
party will follow the collective bargaining process to negotiate the pay raise.
2. In the next step - DISCUSS - the two parties meet at a neutral site to talk about the issues
at hand. The parties are generally required to meet at a neutral location to avoid one party
being more comfortable or have a stronger support system than the other. Meeting on the
docks near Lenny's company may be in the best interest of the union, but it would leave
Lenny with few supporters. It can create a stressful and, in the worst case, even hostile
environment. The parties should meet in a neutral place, like a nearby luncheonette.
3. The third step - PROPOSE - involves one or both parties formally recommending a
solution to the issue at hand. The proposal must be in specific language. Lenny's
longshoremen want to make $3.00 more per hour. The union representatives must provide
Lenny and his representatives with the exact dollar amount. In this case, the
representatives drafted the proposal with the dollar amount included.
4. Next, the parties will BARGAIN OR NEGOTIATE, and this involves making offers and
counter-offers. Each party will present their rationale for the solution. Negotiations
between Lenny and the union representatives were heated. Lenny negotiated a raise of
$2.00 per hour. The representatives wanted to negotiate $3.00 per hour. This went on for
several hours.
5. Finally, it is the hopes of both parties that they will SETTLE, or come to an agreement on
the issue that is at the best interest of both parties. However, both parties do not always
settle.
Going on Strike
Not all negotiations settle. If the union does not feel satisfaction with the negotiations, the
employees may go on strike.
Unfortunately, Lenny's longshoremen went on strike. They paced the docks with signs stating
their issue. Their strike meant that the ships were not being loaded or unloaded. The imports and
exports were at a standstill.
Arbitration
Sometimes, an arbitrator is called to act as a third party who will assist in the settlement. The
arbitrator acts as an alternate conflict resolution facilitator. There are two ways in which this is
done: voluntary and involuntary.
1. Voluntary means both parties agree to allow the arbitrator to hear both sides of the issue
and make suggestions for settlement. This means both parties knew that they could not
come to a negotiation. They agreed to allow a third party to listen and decide for them.
2. Involuntary means one or both parties did not agree to allow an arbitrator to hear the
issue. A court could force the parties to allow an arbitrator to hear the issue. This happens
in cases where the issues are either too complex to be resolved by the parties or the
parties just cannot get along.
The arbitrator's decision can impact the settlement in two ways: non-binding and binding.
One of the primary advantages of unionization for workers is the collective bargaining process.
Kate doesn't negotiate with her employer on her own. Instead, she's a part of a group of
employees, called a collective bargaining unit, that engages in collective bargaining. Collective
bargaining occurs when employees are able to negotiate the terms and conditions of their
employment with an employer as a unit rather than individually. Kate's unit will select a union
representative to speak for all of the employees with one voice. Kate's collective bargaining unit
will use its power and leverage to negotiate on Kate's behalf for better wages, benefits and other
terms and conditions of employment.
Importance
Collective bargaining can be time consuming and complicated, so you may wonder why the heck
anyone would want to bother? It's all about bargaining power, which is the ability of a party to
compel an agreement from the other side on his own terms. In other words, if one side has greater
bargaining power than the other, the side with more power can force the weaker side into an
agreement that favors the stronger party.
Collective bargaining gives employees, like Kate, leverage to improve their bargaining power.
Kate will find it exceedingly difficult, if not impossible, to move an employer to a concession
because it's pretty hard for little old Kate to negatively affect an employer. For example, if Kate
decides to quit if she doesn't get a wage increase, Kate is pretty much replaceable at a modest
cost. Likewise, if a job applicant wants more pay than an employer is willing to pay, there is usually
a line of applicants outside willing to take the wage - especially in times of economic hardship.
Now, if employees are able to negotiate together, the employer cannot use a divide and conquer
strategy. In other words, it's pretty easy for an employer to force employees to concede if the
employer gets to take on the employees one at a time. However, if employees are able to act in
unison - as a group - then it's much harder. For example, one employee threatening to walk isn't
too big of a deal, but all employees threatening to strike can result in serious economic problems
for the company.
Collective bargaining balances the scale and gives employers and employees relatively equal
bargaining positions. When parties have equal bargaining power, no one can take advantage of
the other, and the chance of a fair agreement for all is much more likely.
LEARNING CONTENT
Introduction:
Employee discipline in the workplace is a touchy subject. In this lesson, you will learn what
employee discipline is, and how it affects the modern workplace.
Anger in the Workplace
Picture the following scenario: You have just reached into the cabinet and pulled out a bag of
chips. After plopping down into a comfortable chair, you grab the remote and tune into one of your
favorite movies. You grab your chips, rip it open, and reach inside to get a tasty treat.
Sounds great, doesn't it? How would you feel if you pulled out a chip that had an obscene
message written on it? Shocked, I imagine! That's exactly what happened to some consumers of
Frito-Lay chips in 1973. ( http://www.discipleshipandethics.com/blog/2017/10/13/from-sabotage-
to-collaboration-a-factorys-dramatic-shift-from-a-bounded-to-centered-approach )
What would cause someone to write obscene messages on a potato chip, you wonder? In an
effort to make sure upper-level management realized they were unhappy, several Frito-Lay
employees started writing messages on chips before they were bagged and shipped out to
consumers. Once consumers started uncovering these messages, complaints rolled into the
corporate headquarters. Management took notice and began to investigate the root cause of
employee anger. They discovered that employees were very upset over the employee discipline
system that was in place at Frito-Lay.
Lesson Proper:
The purpose of employee discipline is not to embarrass or degrade an employee. The purpose is
to ensure that an employee performs in a manner that is deemed acceptable by the organization.
Does this mean that employee discipline is nothing more than being threatened with being fired?
Of course, it doesn't. Employee discipline is much more than that.
The Principle
The concept of employee discipline was brought up in the early 1900s. It was during that period
that Henri Fayol, a noted French management theorist, proposed the 14 principles that he felt
were essential to effective management. Discipline was one of those principles. Fayol believed
that a disciplined employee was one that not only was sincere about his work, but also had faith
in the policies and procedures of an organization. He also believed that a disciplined employee
would fulfill the orders given to him and respect management.
In Fayol's opinion, discipline in the workplace was a necessity for an organization to prosper.
Without it, an organization would certainly fail. Though Fayol was an avid supporter of the
discipline concept, he did not believe that discipline should mimic bullying. Instead, he felt that
employee discipline should be handled in a fair and just manner and should apply equally to
everyone.
Modern Practices
Over the years, the concept of employee discipline has grown. Managers realize that discipline is
a part of the job. They also realize that there must be disciplinary action within an organization to
maintain some sense of control.
In today's workplace, discipline and documentation go hand in hand. Most disciplinary action
policies are progressive. This means that as rule violations increase, so do the consequences.
To protect the organization, adequate documentation of the rule violation and the consequence
must exist. Most employee discipline plans use the same basic guideline. It is as follows:
First rule infraction: Verbal counseling
Modern managers also realize that effective employee discipline is more of a mindset than a
physical action. By focusing on the needs of employees, and the human relations aspect of the
management job, managers are able to foster the development of dedication in employees. A
dedicated and happy employee is one that longs to do a good job. In order for the employee to
meet his own personal goal, he must become self-disciplined. Becoming self-disciplined is a win-
win concept. The employee is happier because of the job that he is doing. The organization is
happy because this type of employee is often a long-term employee who is capable of increased
productivity.
EMPLOYEE DISCIPLINE
• One of the most challenging areas in human resource management.
• Mismanaging it may force the organization to deal with more difficult problems
like union strikes, costly lawsuits, or demoralization.
Discipline
• may be defined as the condition in the organization where employees
conduct themselves in accordance with the organization’s rules and
standard of acceptable behavior.
• As treatment that punishes
• As orderly behavior in an organizational setting
• As training that molds and strengthens desirable conduct or correct
undesirable conduct and encourage development of self-control
Categories of Difficult/Problem Employee
1. Ineffective Employee with Unsatisfactory Performance
Employees whose performance is due to factors directly to work are theoretically the
easiest to work with and to adjust. Ineffective performance may be the result of skill,
job or motivational climate factors. Each of these factors or causes ought to be
carefully assessed.
2. Rule Violators
Some companies have general rules that are informally communicated to employees
while others have specific rules that prohibit such things as possession of deadly
weapons, use of alcohol or narcotics, abusive or threatening language,
insubordination, sleeping on the job, etc.
3. Illegal or Dishonest Acts
A serious disciplinary problem for all organizations concerns any form of illegal or
dishonest behavior such as theft, embezzlement, misuse of company facilities or
property or falsifying records. Even if an illegal act is not prosecuted, the employee
committing the act is usually discharged unless a company does not have sufficient
evidence.
4. With Personal Problems
Employees are normally expected to handle personal problems on their own without
letting them interfere with work performance. Temporary difficulties due to family
problems are not uncommon. Falling in love, getting married, having children and
getting divorce are unsettling experiences that may affect performance on their job.
Many large organizations provide personal counseling services for their employees.
5. Substance Abuse
The most serious personal problems are alcoholism and drug abuse. These
problems are not temporary and are not solved by ignoring them or by assuming
they will be corrected on their own.
Approaches to Discipline
to determine cause
3rd violation counseling employee and immediate employee’s
supervisor and higher
supervisor malfunction
employee and warning for possib
superintendent termination
4th violation final counseling
Definition
If a person ever worked for an employer who he believed did not meet the terms of their
employment contract. Perhaps he was not fully compensated for his work or he experienced
unsafe work conditions. In this situation, he may wish to file a formal complaint against his
employer. This is known as an employee grievance.
Whether the grievance is valid or not, it can have a negative effect on employee morale,
productivity, and retention. Organizations must, therefore, have policies and procedures in place
to address employee grievances. This is an important human resource management function.
Types of Grievances
Let's first look at some of the most common types of employee and workplace grievances. Keep
in mind that a grievance can be real or imaginary, and employees file grievances for a range of
issues that can be minor or major.
1. Pay and Benefits: This is the most common area of employee complaints and grievances.
These grievances may involve the amount and qualifications for pay increases, pay equity for
comparable work within the organization, and the cost and coverage of benefit programs.
2. Workloads: Heavy workloads are a common employee and workplace grievance. If you work
for a company that is going through lean times, you may have been asked to take on more work
without a pay increase. Perhaps your employer decides not to fill a vacant position and instead
assigns additional work to you and your colleagues. Such situations lead to employee frustration
and dissatisfaction.
3. Work Conditions: A safe and clean work environment is crucial to employee satisfaction and
motivation. Extensive state and federal regulations protect worker health and safety. Employees
who believe a company is not following applicable regulations and guidelines may decide to file
a grievance.
4. Union and Management Relations: When unions represent employees, both the union and
management must avoid unfair labor practices. These illegal acts involve threatening or
coercive behavior by either party designed to obtain an employee's loyalty or cooperation. The
National Labor Relations Act specifies unlawful activities for employers and unions. For
example, employers cannot threaten employees with termination if they vote for a union.
Employees may file grievances when they experience unfair labor practices.
Grievance Resolution
Businesses need effective policies and procedures to resolve the different types of employee
grievances. Some employees will use grievance procedures just to express frustration, while
others will file a grievance to influence future contract negotiations or protest unlawful practices.
In all cases, managers should strive for the most effective possible resolution that will satisfy both
parties.
The grievance resolution process usually begins with a meeting between the employee and
manager. At this stage, it is important for managers to:
If the grievance is not resolved at this stage, the process will escalate to higher levels of
management. If there is no resolution at the managerial level, the parties may turn to arbitration.
Arbitration is a process where a neutral outside party hears both sides of a dispute and then
makes a decision.
The best grievance management policy is one that prevents employee and workplace grievances
in the first place. Managers who have open doors and listen and respond to their employees will
help maintain a motivated and productive workforce. When grievances do arise, managers must
take appropriate steps to identify and address workplace concerns.
Grievance and Complaint
Effective HRM should create a pleasant and rewarding place to work.
If employees are treated fairly, complaints will be minimized.
Grievance procedure & discipline procedure purpose is to maintain fair and effective
employee relations.
Grievance procedures
• Provide a systematic process for hearing and evaluating the complaints of
employee.
• Protect the rights of employees and eliminate the need for strikes or slowdowns
every time a disagreement occurs about the labor contract.
Discipline procedures - A systematic process for handling problem employees.
• The goal of a good discipline system is to help employees perform better;
but if they fail to respond, a procedure is needed for firing them as a last
resort.
Effective Employee Relation
Grievance Procedures - To protect the employees
Discipline Procedures - To protect the company
Grievance - A complaint about an organizational policy, procedure or managerial practice that
creates dissatisfaction or discomfort, whether it is valid or not.
GRIEVANCE DEFINITION:
UNIONIZED FIRMS - use a more limited definition in w/c grievance refer only to specific disputes
concerning any violation of the CBA or the labor code.
NON-UNIONIZED FIRMS - To encompass any discontent or sense of injustice, even criticisms
that are never expressed by employees.
Causes of Grievances
1. The employee who has a grievances or claim shall submit this to his immediate
supervisor
2. Submitting the grievances to the employee’s union representative
3. Appealing the grievance to top management representative w/ the top union
officials
4. Submitting the grievance to arbitration
Recommendations to reduce number of grievances:
1. Receive and treat all complaints seriously and give the employee a full hearing
2. Get the facts investigating & handling each case as though it may eventually
result arbitration
3. Carefully examine all the evidence before making a decision
4. Follow-up to make sure the plan of action is properly carried out & by means of
correcting conditions w/c could result in a similar grievance happening again.
Grievance Procedures- Non-unionized
1. Presentation of employee problem/s to the foreman/supervisor who is expected
to settle the problem w/in the specified period
2. If not satisfied, the employee can elevate the complaint to the next higher level
to resolve the grievance
3. The problem/case may be taken to arbitration for final decision if no satisfactory
solution has been reached by the above procedures
Grievance committees - hear the evidence and issue a judgment.
Grievance appeal procedure - allows employee to submit grievances to successively higher
levels in the organization where the aggrieved employee is represented by an attorney
Neutral company executive - hears the evidence and make a judgment
Voluntary arbitration - the final stage in the dispute resolution process
Arbitration - Quasi-judicial process in w/c the parties agree to submit an unreasonable dispute
to a neutral 3rd party for binding settlement.
Voluntary arbitrator - any person accredited by the National Conciliation and Mediation Board
(NCMB) or anyone named /designated in the CBA by the parties to act as their voluntary arbitrator
Art. 261-262 of the Labor Code – provides pertinent information about the jurisdiction of
voluntary arbitrators, procedures to be followed and costs of arbitration.
Lesson Summary
Let's review. Employee discipline is a complex topic in management. It must be taken seriously
and handled carefully. From the earliest days when it was realized that employee discipline was
important, this concept has continued to grow and evolve. In years past, the focus was on having
a system that allowed managers to control the actions of employees based on the reaction they
would get from the organization. In the modern world, employee discipline is still used as a form
of control, but only to the extent that it makes an employee realize what is expected of him, and
what the consequences will be should any policy or procedure be violated.
The focus of employee discipline has shifted from the physical sense of discipline to the mental
process of being self-disciplined and wanting to do a good job. By making this shift, management
is able to create a much more pleasant and productive work environment.
When an employee is not satisfied with the terms of his or her employment, he or she can file a
grievance. Common grievances are filed regarding issues of pay and compensation, workload,
work conditions, and union and management relations. During a grievance resolution process, an
employee meets with a manager or managers to try to find an equitable solution. If this fails, an
impartial arbitrator may be employed. In these cases, the arbitrator makes the final decision. The
best way to handle employee grievances, however, is for a company to take measures to avoid
them in the first place. This means that companies should provide fair pay for fair work and
negotiate with employees in good faith. Managers should listen and respond to employees in
positive ways and help maintain a positive workforce.
Workplace Grievances: Quick Guide
Workplace grievance
Employee grievance: a formal complaint filed against an employer that can have negative
effects on morale, productivity, and retention
Pay & benefits: most common area of employee complaints and grievances
Work conditions: safe and clean work environment crucial to employee satisfaction
Unfair labor practices: illegal acts involving threats or coercive behavior to obtain an employee's
loyalty or cooperation
The National Labor Relations Act: specifies unlawful activities for employers and unions
Grievance resolution process: listen carefully, acknowledge the grievance, gather facts, keep
an open mind, investigate the cause of the grievance and take appropriate action
Arbitration: a process where a neutral outside party hears both sides of a dispute and then
makes a decision
END of LESSON 16
LEARNING CONTENT
Introduction:
Since
accidents and unhealthy work environments impact employee lives and company profits,
it's important to maintain a safe, healthy workplace.
Impact of Accidents and Unsafe Work Environments
Employers are legally responsible for safe and healthy work environments. Company policies and
procedures must follow federal compliance standards to prevent injuries and fatalities. First, we
will look at the statistics on unsafe workplaces, which is the reason compliance standards are
required to protect employees.
Approximately 5,000 employees were killed in United States workplaces in 2013. Annually more
than three million non-fatal accidents occurred on the job according to the United States Bureau
of Labor Statistics. This number represents three percent of employees, or 3 out of 100, who
suffer from workplace health issues or accidents.
These accidents and hazardous health issues impact employees’ personal lives and result in the
loss of company productivity due to employee absences. Nationwide workplace injuries cost
employers over $125 billion a year.
Lesson Proper:
PREVENTING ACCIDENTS
Safe work environment
- is an objective that must be attained if the organization is seeking improved productivity.
Accidents may be prevented with the adaptation of the strategies, which include the following:
1. Employee Selection -this may be done through the use of effective selection methods.
2. Employee Training –this requirement is especially applicable to newly hired employees
who are not yet familiar with their respective jobs and the immediate environment of their
workplaces.
3. Safety Incentive
4. Safety Audit –is one undertaken to determine unsafe job behaviors aimed to prevent
unsafe acts on the part of the employees.
5. Accident Investigation –one of the means used in accident prevention is the
determination of the cause of accident, if one has occurred.
6. Safety Committee –this which involves workers in safety
-composed of workers of different levels and from a variety of departments.
Protecting the health of the employees is a concern as important as preventing accidents the
health of employees may be protected through:
1. Maintaining a healthy work environment.
2. Adaptation of the preventive approach to health maintenance.
3. Maintaining health services for employees.
Indicators of Stress
A person’s behavior may be scrutinized to determine if he is under stress. The emotional
indicators of stress include:
1. Prolonged unhappiness or boredom
2. Explosive anger in reaction to minor difficulties
3. A pessimistic view of life
SAFETY PROGRAMS
Occupational Safety and Health Standards (OSAHS) encourages every organization to maintain an
ongoing safety program.
Managers should demonstrate a sincere interest in them by means of preparing a policy statement that
declares management’s concern about safety and health.
All employees should know that careless and willful disregard for safe practices may result in discipline
and termination.
Another way to promote safety is through the use of protective clothing and devices for employees
working in hazardous job situation.
Every year millions of people are injured on the job. Learn more about the laws governing
workplace safety and the programs in place to compensate injured workers and their families.
There are many laws governing workplace safety at virtually every level of government, from
national and state regulations to local ordinances. These laws are designed to protect employees
from unsafe or unhealthy working conditions. The purpose is to reduce the risk of accidental injury,
death, or disease in the workplace. Some regulations govern safety standards in specific
industries that tend to pose more danger, such as coal mining and railroads. For most workers
there are two important sources of workplace safety laws: the Occupational Safety and Health
Act (OSHA) at the federal level and various workers' compensation laws at the state level.
OSHA
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing
a safe and healthy work environment. The Act requires employers to comply with specific
occupational safety and health standards and to keep records of occupational injuries and
illnesses. The Occupational Safety and Health Administration (OSHA) is the federal agency
responsible for enforcing the Act. OSHA develops and enforces safety standards, and provides
training, outreach, education, and assistance. OSHA has the power to conduct on-site
inspections, issue citations, and levy penalties against employers for violations.
Safety Standards
OSHA standards are rules that describe the methods that employers must use to protect
their employees from hazards. There are standards designed for specific industries such
as construction work, agriculture, and maritime operations, and general industry standards
that apply to most other worksites. The standards limit the amount of hazardous chemicals
workers can be exposed to, require the use of certain safety practices and equipment, and
require employers to monitor hazards and keep records of workplace injuries and
illnesses.
Penalties for violations of OSHA standards may include citations, criminal penalties, or
substantial fines. These fines can range from no fine for minor violations to several millions
of dollars for companies guilty of multiple, repeated, or particularly egregious infractions.
Some company executives have even spent time in jail for recklessly endangering
workers.
The good news is that occupational safety laws are working. Workplace injuries and
deaths have dropped dramatically in the past few decades. Since 1970, workplace
fatalities have dropped by more than 65%, and occupational injury and illness rates have
declined by 67%. Deaths are down from about 38 worker deaths a day in 1970 to 13 a
day in 2011. Worker injuries and illnesses are also down from 10.9 incidents per 100
workers in 1972 to fewer than 4 per 100 in 2010.
Workers' Compensation
Workers' compensation is a program that provides medical care, income continuation, and
rehabilitation for workers who sustain injuries or illness on the job. Death benefits are also
available for family members of workers who suffer work-related deaths.
Workers' compensation is administered by the states and governed by state law. The majority of
states require workers' compensation for nearly all workers, including part-time employees. Even
nonprofit corporations, unincorporated businesses, and employers with only one employee must
comply with the requirements.
Programs differ from state to state, and sometimes not every worker is eligible. Some employees
may be covered by other compensation laws, including federal civilian employees, railroad
workers, longshoremen, shipyard, and harbor workers. Other groups who may not be covered
include volunteer workers, agricultural laborers, casual employees, and domestic workers.
Workers compensation is optional in only a few states.
Workers' compensation programs are designed to provide a no-fault remedy for workers who are
injured on the job. No fault means that benefits are not dependent on who was to blame for the
accident. Even workers who were at fault for their accident can collect. There are some limitations,
however. Generally, employees can't collect benefits for intentionally self-inflicted injuries or those
caused by intoxication or illegal activity such as illicit drug use. In exchange for collecting benefits,
the employee gives up the right to sue his or her employer for the same injury. The no-fault system
benefits workers and protects employers from numerous lawsuits and unpredictable awards for
workplace injuries.
Social Responsibility
In addition to the legally mandated requirements, workplace safety is an important issue of social
responsibility for companies. Managers have a social and moral responsibility not to sacrifice
employee health and safety in the pursuit of profits. A workplace culture that places a greater
value on productivity or cost cutting over the safety of its people can face big problems.
In addition to being the right thing to do for workers, failing to ensure safe working conditions can
have a big impact on the bottom line. The consequences of these decisions can be more far
reaching than lost work days and mounting liability, including loss of employee morale, mistrust
of management, damage to the company's reputation, or worse, serious injury or death. In any
successful organization, workplace safety that exceeds the minimum standards required by law
is a top priority for management that serves the best interest of the company and its people.