THE DEVELOPMENT OF PERSONNEL

AND
HUMAN RESOURCES MANAGEMENT

Industrial Revolution

The age that followed the invention of machines which supplanted human labors in
factories and on farms and sharply changed the methods of production and distribution of
goods.

Scientific Management

A type of management which is characterized and guided by the use of scientific

approaches to the solution of managerial problems in business and industry. This type of
management was spearheaded by Frederick W. Taylor (1856-1915) who is known to be the
“Father of Scientific Management”.

Low Productivity of Workers is because of the following reasons:

1. Restriction of output by workers

2. Lack of standardization of work methods by the management
3. The absence of systematic methods for defining output standards for different jobs
4. Ineffective systems to reward workers for greater productivity

Steps in Solving the Problem

1. Mental Revolution
2. Method Analysis and Time and Motion Study
3. Functional Foremanship
4. Piece-Rate System

Human Relations Movement

Emphasized the need for active participation of subordinates in decision-making and

for treating them with dignity as an important element in the organization. This type of
management was introduced by Elton Mayo, F. J. Roethlisberger and William J.
Dickson who made the famous Hawthorne Experiment.

Hawthorne Experiment

To empirically determine the optimum level of illumination in the work area by

varying the level of illumination and recording its effects on the level of worker productivity.
Hawthorne Effect

- The response is based on psychological and not on the physical environment in the
experimental situation.
- Workers enjoyed the sense of importance that they were accorded by important
people.

According to Elton Mayo:

“Man’s desire to be continuously associated with his fellow is a strong, if not the
strongest human characteristics. Any disregard to it by the management or any ill advised
attempt to defeat this human impulse leads instantly to some form of defeat for management
itself”

The Behavioral Sciences and their Various Approaches

A concentration on the relationship between man and his environment. This study
was initiated by B. F. Skinner. The concept requires an understanding of the nature and
behavior of man, his values and motivations, his psychology as a human being and his needs
coupled with an attempt to satisfy his needs through a blending of management variables
such as organizational relationship, leadership and supervision.

Other approaches and theories related to behavioral sciences:

1. Manpower Development System Model

2. Self-Development
3. Group Interaction Skills
4. Transactional Analysis
5. Teambuilding
6. Administrative Value Analysis
7. Personalized Time Management Strategy
8. Job Enrichment and Job Enlargement

Development of Employee Concepts

- Labor as commodity
- Labor as machine
- Goodwill as a concept of labor
- Labor as a human personality
- Paternalism as a concept of labor
- Labor as a partner
- Labor as a social responsibility of the employer
- Labor as a resource
 ORIGIN AND DEVELOPMENT OF PERSONNEL MANAGEMENT

Growth of Personnel Management

1. Organization of PMAP in 1956

2. Acceptance and recognition of Personnel Management as a necessary function
3. Course offerings in colleges and universities
4. Initiation of seminars and workshops in the various areas of personnel management
5. Recognition from the DOLE, SSS and other government agencies as a representative of
the management of their respective firms in the negotiations with the labor unions.

Objectives of Personnel Management

1. To assist top and line management in achieving company objectives

2. To acquire capable people and provide them with opportunities for growth and
advancement
3. To assist top management in formulating policies and programs for all employees
4. To provide technical services and assistance to the operating management
5. To assist management in training and developing the human resources of the company
6. To see that all employees are treated equally and fairly in the application of company
policies, rules and regulations and in rendering services to them
7. To help effect organizational development and institution building efforts.

PERSONNEL MANAGEMENT

Is defined as the function of management concerned with promoting and enhancing

the development of work effectiveness and advancement of the human resources in the
organization through proper planning, organizing, staffing, directing and controlling of
activities related to procurement, development, motivation, and compensation of employees
to achieve the goals of the enterprise.

Roles of a Personnel Manager

- As a supervisor
- As an administrative official
- As an adviser
- As a coordinator
- As a negotiator
- As an educator
- As a provider of service
- As an employee counselor
- As a promoter of community relations
- As a public relations man
 PERSONNEL PROGRAM AND POLICIES

Why study Personnel Program and Policies?

1. To understand the importance

2. To learn how to formulate
3. To know the importance of establishing
4. To appreciate the need

Personnel Program – a plan that provides for the development and maintenance of good
employee-employer relationship.

A Personnel Program defines the following:

1. objectives
2. policies and procedures
3. the means of carrying out the varied personnel functions

Note: A personnel program is more on preventive rather than for remedial purposes.

To be effective, the program must meet certain human wants such as:

1. adequate pay
2. opportunity for advancement
3. recognition for good work
4. interesting and meaningful work
5. reasonable security
6. recognition and respect to the individual as a human being

Areas covered by a Personnel Program:

1. Acquiring competent personnel

2. Holding and Retaining Competent Employees through:
- equitable wage
- incentive system
- employee moral and effectiveness
3. Developing and Motivating the Human Resources
- increase in one’s productiveness
- training and education
- promotion
4. Labor and Human Relations
- development of harmonious working relationship between the management-
individual employee-union
- legal/government interventions
5. Efficient Program Administration and Adequate Budget

Personnel Records – refers to the body of basic data required for effective action required
in all personnel management area.

Formulating a Personnel Program

For a personnel program to be effective and successful:

1. It must have the full support of the top management with adequate budget.
2. It must meet the needs of the organization and its objectives.
3. It must gain the cooperation of line supervisors and employees.
4. The program must motivate employees for greater achievement.
5. A good organizational structure.
6. Efficient administration by a capable personnel administrator.

Policy – a general plan of action that serves as a guide in the operation of the company
– a common denominator among ALL employees

Why are policies needed?

1. To give life and direction

2. To provide definite guidelines
3. Policies serves as a standard of performance
4. For fair and consistent decisions on recurring problems
5. To help build employee enthusiasm and loyalty

Rules – tells what to do and what not to do

Procedures – answers the questions how to do?

Types of Policies

1. According to their origin

a. Originated Policy
b. Appealed Policy
c. Imposed Policy
2. According to their subject matter
a. General Statement of Principles
b. Statement of Procedures
c. Specific Rules

Communicating Personnel Policies and Regulations

Means of Implementing

1. Employee Handbook
2. Policy Manual
3. Memoranda and Circulars
4. Company Bulletin Boards
5. Meetings or Conferences
6. Company Publications
 STAFFING

Is a function of management that can be viewed as consisting of a series of steps that

managers perform in order to provide the organization with the right people in the right
positions.

STAFFING PROCESS

Consists of the following process:

1. Human Resource Planning

2. Recruitment
3. Selection
4. Induction and Orientation
5. Training and Development
6. Performance Appraisal
7. Rewards, Promotion, Transfer, Demotion
8. Separation

HUMAN RESOURCE PLANNING

The purpose of which is to ensure that the personnel needs of the organization will
be met.
There are three elements of the human resource planning: (1) forecasting the
personnel requirements, (2) comparing the requirements to the inventory of potential
candidates within the organization, and (3) developing specific plans for how many people to
recruit (from outside) or whom to train (from inside).

Human Resource Forecasting

This attempts to predict the organization’s future demands for people and for jobs.
The forecasting process can be simple or complex depending on the kind of organization, its
size and the length of time considered in the forecast.

Human Resource Inventory

This provides the information about the organization’s present personnel. After the
inventory is completed, an organization will have catalogued the skills, abilities, interests and
needs of the present workforce. This human resource audit (or personnel inventory) will
allow the managers to match the organization’s present personnel strength and weaknesses
against future requirements.
 RECRUITMENT

Definition

The organization is attempting to identify and attract candidates to meet the

requirements of anticipated or actual position vacancies.

Job Analysis

There are two device used in the process of attracting people to fill up vacancies in
an organization, the job description and the job specification both of which are developed as a
result of job analysis.
It determines what kind of people should be recruited and helps the management in
maintaining the same recruitment standards throughout the company.

Job Description

States the job title, the primary duties for non-managerial positions the kind of
equipment or machines that will be operated by the person who will occupy the position.

Job Specification

States the minimum qualification of the person needed to perform the job. Such
qualifications usually include educational background, work experience, and
personal/technical/communication skills.

Sources of Applicants

There are two sources of applicants – internal and external.

Internal Recruiting

This means considering present employees as candidates for job openings. This can
positively result to the following: (1) it can reduce turnover, (2) provides incentive to learn
the job quickly, and (3) assist in making the individual a functioning member of the
organization faster because the person already knows the policies and expectations of the
company.
On the other hand, because of the familiarity of the applicants from within with each
other, selection decisions could result in unnecessary conflicts within the organization. It is
sometimes easier for an insider to accept defeat from an outsider rather than from another
insider. Another disadvantage is the ripple effect. When one employee is transferred or
promoted and an insider replaces him, another job opening is created; as a result, one vacant
position could lead to numerous job movements. These job movements could result in
increased training costs and could disrupt normal operations in various departments.
External Recruiting

It is the process of attracting individuals outside the organization to apply for

positions within the firm.
Forms of external recruitment:
1. Recommendation
2. Campus Recruitment
2.1 School Bulletin
2.2 Career Talk
2.3 Campus Interviewing
2.4 Awarding Scholarships
2.5 Executives teaching in other colleges and universities
3. Referrals
4. Employment Agency
5. Newspaper Advertisement
 SELECTION

Definition

It is the process of deciding which candidate, out of the pool of applicants developed
in recruitment has the abilities, skills, and characteristics most closely matching job demands.

The Selection Process

The selection of employees comes with a step-by-step process in order to arrive at

the best decision on who is to hire for the specific job.
Prospective applicants, before being offered the job, must follow these processes:

1. Filling up of Application Form

2. Preliminary Interview
3. Testing
3.1 Personality Test
3.2 Psychological Test
4. In-depth Interviews
5. Reference Check
6. Physical Examination
7. Offer of Employment

Kinds of Testing:

A. Psychological Test
1. Mental Alertness Test
2. Clerical Aptitude Test
3. Shop Arithmetic Test
4. Mechanical Aptitude Test
5. Space Relations Test
6. Proficiency Trade or Achievement Test
7. Vocational Interest Test
8. Dexterity and Manipulation Test

B. Personality Test
1. Personality Inventory
2. Projective Technique

Types of Interview

1. Directive Interview
2. Non-Directive Interview
3. Group Interview (Panel Interview)
4. Team Method
Points Taken Down During an Interview

1. Emotional Maturity
2. Dependability
3. Self-confidence
4. Attitude toward jobs
5. Creativeness
6. Attitude toward other persons
7. Value System
8. Critical Attitude

Stages in an Interview

Preliminary Interview – questions about what is written in your resume

Second Interview – and evaluation of an applicant’s “can do” and “will do” traits
Final Interview – hiring and placement

Decision to Consider when offered an Employment

1. Management
2. Applicant
3. Supervisor

Offer of Employment (Hiring)

1. Hiring Papers
2. Confirmation of the Appointment
3. Signing of Employment Contract
4. Accomplishment of permanent personnel records
5. Notify the payroll regarding the new employee

Categories of Employees

1. Regular Employee
2. Employment without a definite period
3. Probationary Period
4. Temporary Employee
5. Contractual Employee
6. Casual Employee
 INDUCTION AND ORIENTATION

When an employee is hired, two processes are started: induction and orientation. The
immediate goal of these processes is to bring the employee into the mainstream of the
organization as quickly as possible. The purpose of these processes is to develop program
that turn “them” (new employees) and “us” (the company) into “we”.

Induction

The purpose of which is to provide the new employees with the necessary
information about the company. It familiarizes the new person with the duties and benefits
of employment. The general purpose of this phase is to see that all employees learn where to
go for answers and help, and what the important rules, policies, and procedures of the
organization are.
The induction process is completed through an interaction of the employee, the
immediate supervisor. The time induction requires may be divided between one-to-one
interactions and large-group education.

Orientation

A continuation of what induction began. This phase is when a worker is now

introduced to the immediate working environment and to his co-workers. The purpose of
this phase is to have the new employee become oriented to the working environment and
operating reality.
The new employee may be paired with an experienced employee for a period of time
to help the socialization process. The pairing and one-to-one discussions are an attempt to
reduce the employee anxiety through meeting other people and allowing him/her the
opportunity to discuss expectations and actual performance.
The orientation phase is extremely important. This socialization process needs
proper planning and must be supported by the management.
 TRAINING AND DEVELOPMENT

What is Training?

Training maybe defined as a carefully planned and handled effort of the

management, through competent instructor, to impart “know-how” and develop or improve
certain phases of an individual’s skills, attitudes, discipline, behavior, or knowledge to make
him either more effective on his present job or better qualified for another job.

Objectives of Training

1. Productivity
2. Effectiveness on the present job
3. Qualification for a better job
4. Morale booster

Definition of Terms (As defined by the Labor Code used in Training)

Human Resources Development – refers to the process by which the actual and potential
labor force is made to systematically acquire greater knowledge, skills or capabilities for the
nation’s sustained economic and social growth.

Manpower – is that portion of the population, which has actual or potential capability to
the production of goods and services.

National Manpower Plan – refers to the plan formulated by the National Manpower
Council on the systematic determination of manpower requirements and supply of the
sectors of the economy over a future period of time.

Training – is the systematic development of the attitude/knowledge/skill and behavior

pattern required for the adequate performance of a given job or task.

Training in Vocation – refers to a range of activities, aimed at providing the skills,

knowledge, and attitudes required for employment in a particular occupation, group of
related occupations or functions in a field of economic activity.

Basic Skills Training – refers to the first stage of the learning process of a given task. This
covers any of the following:
a.) Pre-entry Training – the basic skills training for immediate entry into the working
environment.
b.) Accelerated Training – the basic skills training of a short-term nature for jobs
with a defined level of qualifications.
Further Training – refers to that part of vocational training, which follows the basic
training. This includes any or all of the following:
a.) Upgrading
b.) Updating
c.) Refresher
d.) Specialization
e.) Retraining

Entrepreneurship Training – refers to the schemes to develop persons for self-

employment, or for organizing, financing and or managing an enterprise.

Cooperative Settlement Training – refers to the training of a group of young people or

farmer families in modern methods in agriculture.

Instructor Training – is aimed at developing capacities of person for imparting knowledge,

skills and attitudes

Vocational Preparation Training – refers to the range of training activities primarily aimed
at the youth.

TYPES OF TRAINING

1. Orientation or Induction
2. On-the-job Training (OJT)
3. Seminars and Workshops
4. Job Rotation
5. Apprenticeship Training
6. Understudy and special projects or assignments
7. Guidance and Counseling
8. Supervisory Training
9. Travel Observation Tours
10. Conferences, lectures, special seminars, or workshops
11. Management or Leadership Development for potential managers
12. Study Grants
13. Study Abroad
14. Training within the industry
15. Vestibule Training
16. Learners in Industry
17. Training through correspondence
 PERFORMANCE APPRAISAL

Definition

Performance Appraisal maybe defined as the method by which, through observation

by the appraiser, the individual worker’s efficiency in performing his duties and
responsibilities during a given period is evaluated on the basis of predetermined performance
standards or established goals mutually set by the employee and his supervisor.

The task of evaluating employee performance is known by various terms, namely:

(a) performance rating

(b) efficiency rating
(c) merit rating
(d) employee evaluation
(e) service rating
(f) personnel rating
(g) performance review
(h) performance appraisal

Objectives of Performance Appraisal

1. Providing feedback on employee performance

2. Basis for personnel action
a.) Potentials and Promotions
b.) Transfer, Demotion, Layoff and Discharge
c.) Salary Increase
3. Management guide in employee counseling and discipline
4. Promotion of better employee-employer relations
5. Improvement of supervision by making the supervisor better aware of his duties
6. Development of employees and supervisors
7. As an agent of change
8. Identification of training needs and management development
9. Facilitate organizational diagnosis and development

Methods Used in Performance Appraisal

1. Rank Order Method

2. Paired Comparison Method
3. Forced Distribution System
4. Narrative Essay
5. Graphic Rating Scale
6. Preference Checklist Method
7. Rating Scale Method
8. Weighting
9. Management by Objectives(MBO) or Result Oriented Method
Developing an Appraisal Program

The following must be taken into account in developing an appraisal program:

1. Approval and Full Support of the Management

2. Selling the Plan to Management and Employees
3. Coordinating Performance Appraisal with Other Phases of the Personnel
Program
4. Selecting the Appropriate Plan to Use
5. Getting Expert Help
6. Preparing a Good Job Description
7. Coverage of the Plan
8. Traits or Factors to Rate
8.1 Traits that could be a Factor to Rate:
8.1.1 Personal Traits
8.1.2 Actual Work Performance
8.1.3 Personal Relations
8.2 Selecting the Traits
8.2.1 Select the trait that can be defined
8.2.2 The trait should be observable
8.2.3 The trait should be considered important in the successful
performance of all the jobs covered by the rating plan.
8.2.4 No two or more traits should overlap
8.3 Testing the Program
8.4 The Rating Form
8.5 Space for Comments
8.6 Manual for the Program
9. Qualities of a Good Appraisal Form
9.1 It must be as simple as possible
9.2 It must provide the basis or standards for appraising satisfactory
performance.
9.3 It must be flexible
9.4 It must be thorough
9.5 It must provide a definite control over personal biases or prejudices
9.6 Whenever possible, it should provide for two or more independent
evaluations of each employee
9.7 It must provide for a training program for supervisors who will rate their
subordinates
10. Guidelines for an effective program
10.1 Prepare a complete job description and standards of performance
required
10.2 Explain clearly the job description and the performance standard or
required goals to the employees.
10.3 Be sure that the materials and equipment needed are readily available.
10.4 Get the right man for the right job and train and direct him on how to do
the job properly.
10.5 Observe if the employee is doing the right thing.
 10.6 Assess the performance of an employee based on the performance
standards set.
10.7 Inform the employee of his performance rating.
10.8 Express a sincere appreciation for the work done by an employee.
10.9 Provide counseling on the weak points and help him prepare for
improvements.
11. Frequency of Rating
12. Confidentiality of Rating
13. Appeal for Review
14. Joint or Group Appraisal

Common Errors in Rating

1. The Halo Effect

2. Logical Error
3. Blaming Subordinates for Errors that are not Their Fault
4. Leniency
5. Severity
6. Central Tendency
7. Bias and Prejudice
8. Previous Performance Bias
 WAGE AND SALARY ADMINISTRATION

Salary

Refers to the compensation covering weekly, monthly or yearly period for services
rendered. A salary is based on the stated minimum number of days per week or hours per
day or week.

Wage

Refers to compensation for manual labored-skilled or unskilled. – for work done by

the so called “blue-collar” workers.

Merit Increase

It is a raise in the salary or wage of an employee on the basis of performance or

merit.

Union Rate

Refers to an hourly or daily rate of pay, usually a single rate for an occupation or
trade, set-up by an agreement reached through collective bargaining.

Basic Determinants of Salary

1. The relationship between jobs and wage rates.

2. The recognition of individual differences.
3. The level of pay existing in the community.
4. The company’s ability to pay.
5. The type of industry.
6. Labor costs.
7. Cost of living.
8. Collective bargaining.

Difficulties in Wage Administration

1. Difficulty in determining what is adequate and fair pay for a particular job.
2. Desire of workers to earn more money and of management to operate at greater profit.
3. Dissatisfaction of employee owing to inequalities in pay.
4. Lack of measuring device which can establish to the satisfaction of all concerned what a
man’s services are worth in pesos.
5. Individual and group pressure for higher pay.
6. Lack of sound pay policy.
7. Lack of communication on the salary program.

Causes of Wage Inequities

1. Pressure of aggressive employees or supervisors.

2. Favoritism among supervisors.
3. Seniority.
4. The feeling of being important.
5. Union pressure.
6. Faculty classification of jobs.
7. Absence of job evaluation.
8. Compensation plant not kept up-to-date.

Inter-company Inequalities in Pay

1. Differences in the nature of the business or industry, company size, and geographical
location.
2. Collective bargaining.
3. Company ability to pay.
4. Management’s generosity.

Other Problems in Salary Administration

1. Equal pay for equal work.

2. A Fair Day’s Pay for a Fair Day’s Work
3. Flexible Time

Factors to be considered in planning the Program for Wage and Salary

Administration

➢ Job Analysis
➢ Evaluating Jobs
➢ Wage Survey
➢ Wage and Salary Structure
➢ Maximum Pay Level
➢ Grading the Jobs and Positions
➢ Job Pricing
➢ Provision for Performance Rating
➢ Performance Level Ranking in Wage Setting
➢ Responsibility for Salary Administration]
➢ Selling the Compensation Program to Management and Employees
➢ Salary Review
➢ Wage Studies

Different Types of Wage and Salary Adjustments

1. CBA General Wage Increase

2. Cost of Living Allowance (COLA)
3. Merit Increase
4. Promotional Increase
5. Level Adjustment
6. Reclassification Increase

JOB EVALUATION

Refers to the process of determining the worth of one job in relation to that of the
other jobs in the company so that a fair and equitable wage and salary system can be
established. Its main objective is to determine the relative positions or level of the jobs in the
company.

Factors in Determining Job Values

1. Skills, knowledge and requirements of the job needed in terms of the worker’s education
and experience
2. Effort
3. Responsibilities
4. Working Conditions

Union Attitudes toward Job Evaluation

1. Union policy of opposition

2. Union policy of review of findings
3. Union policy of joint participation

Job Evaluation Methods

1. Non-Quantitative Methods
a. The Ranking Method
b. The Position Classification or Grade Description Method
2. Quantitative Methods
a. The Point System
b. The factor Comparison System
c. The Hay Method
d. The Paterson Method

The Ranking Method

It is the process of evaluating a job by comparing it with others to determine

whether it is higher or lower or of the same rank.

Advantages of the Ranking Method

a. Simplicity
b. Time Element
c. Accuracy and Facility for Adjustment in Rank

Disadvantage of the Ranking Method

a. The evaluator can easily be influences by prejudice.

b. There is no exact way of determining the highness or lowness of a job.
c. The evaluator has no standard on which to base his overall judgement.
d. The ranking method is not suited to large organizations.

Position Classification or Grade Description Method

Refers to the process of grouping jobs by comparing each job against a rating scale
comprising several job grades, to ascertain the grade to which each job appropriately
belongs. Jobs are compared to a predetermined standard.

Advantages of the Position Classification or Grade Description Method

a. Easy preparation of a rating scale consisting of a written description of each grade.

b. The written description can be made fairly comprehensive and can even use examples
for each grade.
c. It can be easily explained to the employees.
d. Easy to use and lesser time to take to rate the job.

Disadvantages of the Position Classification or Grade Description Method

a. Can cause broad interpretation or narrow interpretations of the words/phrases used.

b. Disagreements may exist as to the assignment of a particular job to a particular grade.
c. Job classification maybe subject to disagreements between management and the union,
unless job rates are fairly standard in the industry or community.
d. The higher the job level, the more difficult it becomes to classify it under the Grade
Description Method.
The Point System

It is also known as the point-rating method. It evaluates the job by appraising it

separately against each of the factors or characteristics, such as skill, effort, responsibility and
working conditions, and adding up the corresponding point values to arrive at a single point
score for each job.

Factors commonly used in the Point System

1. Skill
- Schooling
- Experience
- Manual Dexterity
- Supervision Received
- Complexity of Duties
2. Responsibility
- Accuracy
- Company Funds and Material
- Contact with Others
- Confidential Data
- Supervision Given to Others
3. Effort
- Mental
- Physical
4. Working Conditions

Advantages of the Point System

a. Much reliable and much valid since it uses graphic and descriptive types of rating scale.
b. Easy distribution of point values to the labor grades of job classes.
c. Point values obtained for each job indicate relative job differences so it is possible to
assign point values for each job to the corresponding pay classes in the salary structure
and to establish minimum and maximum salary rates for each job.
d. Errors in judgement can be minimized.
e. Intentional bias is easy to detect and is, therefore less apt to occur.

Disadvantages of the Point System

a. The point system is difficult to construct

b. The point system is difficult to explain
c. The point system is time consuming
The Factor Comparison Method

Developed out of a knowledge of the strengths and weaknesses of the other

methods already described.

Five Factors in Comparing Jobs

1. Skill Requirement
2. Mental Requirement
3. Physical Effort
4. Working Conditions
5. Responsibility

The Hay Method

This method requires that the organization develop its own key job, called
benchmark, selected from among the positions within the company.

Stages of the Hay Method

1. Benchmark Selection
2. Position Analysis
3. Position Evaluation
a. Degree of Know-how
b. Degree of Problem Solving
c. Degree of Accountability
4. Compensation Survey
5. Policies and Procedures

The Paterson Method

Thomas T. Paterson proposed this job evaluation scheme on the assumption that it
is equally attractive and acceptable to all members of the firm, whether the Board level or
elsewhere. Acceptability he claims has three factors: simplicity, justice and fairness, and
participation. It is the method of analyzing jobs according to the kinds of decisions made,
and assessing them, according to the universal pattern and the amount of the total payroll
available.
 EMPLOYEE BENEFITS AND SERVICES

Employee Benefits of Fringe Benefits

Are supplemental compensation which employees receive, aside from their direct
wages or incentive pay. These are not substitutes for wages or salaries.

Reason for Granting Fringe Benefits

1. Provision for the need of employees.

2. Meeting union demands.
3. Maintaining the worker’s living standards.
4. Management’s willingness to grant fringe benefits.
5. Increased government regulations of business and industry.
6. Boosting employee morale.
7. Effects of World War II.
8. Effects of inflation and other economic causes.
9. To attract and retain employees.

Types of Employee Benefits and Services

1. Economic or Financial Benefits

2. Recreational, Social and Athletic Services
3. Health and Medical Services
4. Professional Services
- Counseling Services
- Legal Advice
- Education and Self-Development
5. Services for Employee’s Family Welfare and Convenience

Company Benefits and Services

1. Vacation and Sick Leave with Pay

2. Leave of Absence without Pay
3. Employee Benefits Association
4. Credit Union, Loan and Savings Association
5. Service Awards
6. Retirement
7. Coffee Breaks
8. Group Insurance
9. Social Security
10. Medicare
11. Pension
12. Company Store and Cafeteria
13. Library and Reading
14. Transporting and Housing Services

PROFIT-SHARING PLANS

Types of Plans
- The Cash Plan
- The Deferred Distribution Plan
- Stock Purchase Plan

PRODUCTIVITY GAINSHARING PLANS (PGS)

Types of Productivity Gainsharing Plans

- Those that are based on the individual output
- Those that are based on time saved by the worker
- Those that are based on Group Cooperation
 CHANGES IN PERSONNEL STATUS: TRANSFER, PROMOTION,
DEMOTION AND SEPARATION

Transfer

This is when an employee is moved from one job to another of equivalent rank or of
the same play class within the firm.

Kinds of Transfer
1. Temporary
2. Permanent

Promotion

Is the movement of the employee from one position to another of a higher level
involving more difficult duties and greater responsibilities and carrying higher pay, higher
status and/or offering better privileges.

Factors in Promoting
1. Records of Attendance and Performance
2. Potential Ability

“Seniority Rule”

It is the practice of basing rights to employment and job and job opportunities upon
the employee’s relative length of service in the firm.

General Type of Seniority

1. Straight Seniority
2. Qualified Seniority

Separation

Is the termination of employment as a result of resignation, layoff or discharge.

Three kinds of Separation:

1. Voluntary
2. Involuntary
3. Temporary
 COMPLAINTS AND GRIEVANCES

Complaint

Is a written dissatisfaction that disturbs the worker enough to cause a negative

reaction to be brought to the attention of the supervisor or management.

Grievances

Is defined as the dissatisfaction, complaint, irritation or misunderstanding (real or

imagined) of an employee arising from his job, or his relationship with his employer, any
violation of the CBA or the Labor Code that he thinks or feels he is wronged or treated
unfairly.

Kinds of Complaints

1. The petty gossiper or intriguer.

2. The rebel without a cause.
3. The champions of the oppressed.
4. The thinkers.
5. The average complaint.

Nature of Grievances

1. Individual differences
2. Attitudes of Supervisor

Classification of Grievances

a. Open Grievances
b. Hidden Grievances
c. Work-related Grievances
d. Non-work related Grievances
e. Valid Grievances
f. Imagined Grievances

Causes of Grievances

1. Application and interpretation of the Collective Bargaining Agreement.

2. Absence of a clear-cut company labor policy.
3. Ineffective or inadequate supervision.
4. Inadequate communication.
5. Personal problems.
6. Union inspired grievances.
7. Improper selection and placement.
8. Lack of orientation and training of new employees.
9. Favoritism
10. Poor organization structure.
11. Poor systems and procedures.
12. Lack of appropriate facilities.
13. Improper implementation of policies.

Investigating the Grievances

1. The background
2. The subject of the grievance
3. The solution or settlement

Methods of Settling Grievances

1. By the supervisors’ autocratic attitude.

2. By the human relations approach.
3. By the legalistic approach.
4. By the corrective action of removing the cause of the grievance.
5. By compromise.
6. By a formal method.
7. By submitting the grievance directly to voluntary arbitration.

REMEMBER:
When handling grievances, check on these points:
1. RECEIVE THE GRIEVANCE PROPERLY
➢ Give the man a good hearing
➢ Ask him to repeat his story and repeat essentials in your own words
➢ Assure him of an answer
2. GET THE FACTS
➢ Check every angle
➢ Check the union agreement/company policy
➢ Examine the employee’s record
3. TAKE ACTION
➢ Make correction if the company is wrong
➢ Maintain your position if right
➢ Communicate facts to your boss
4. FOLLOW-UP
➢ Make sure actions were carried out
➢ Correct conditions which cause grievance
➢ Write up grievance and action taken
➢ Promote employee morale