Lesson Training and Development,

Compensation/Wages and
3 Performance Evaluation; and
Employee Relations

Both training and development are essential to achieve success in today’s organizations. In
order to have an edge over their rival organizations, managers must see to it that their human
resources have the necessary knowledge and expertise; training and development work toward
this end by providing continuous learning activities and opportunities. The typical scope of
training covers the following procedures:

Conducting the training needs assessment

Training needs assessment must be done systematically in order to ascertain if there

really is a need for training. Managers must first try to observe the business condition and the
economic, strategic and technological changes that are happening in the organization’s
environment before proceeding to the analyses of the organization, task and persons
‘individuals, as all these are determinants of training types required for the maintenance of the
firm’s stability.

Examples of organization analyses include the analyses of effects of downsizing, branching

out conflicts with rival companies, and others that may require training or retraining of
employees.

` Task analysis involves, for example, a checking of job requirements to find out if all these are
being done to meet company goals. If not this may be a go-signal to train or retrain personnel.

Person analysis determines who among the employees need training or retraining. This is to
avoid spending for the training of employees who no longer need it. For example, a department
manager pirated from a rival company to occupy a vacancy in one of the organization’s
departments in the same capacity (department manager) may not need managerial skills
training anymore.

What are the different learning principles?

Modeling – the use of personal behavior to demonstrate the desired behavior or method to be
learned.

Feedback and reinforcement – learning by getting comments or feedback from trainees

themselves, from trainers, or fellow trainees, which can help the individual realize what they
are doing wrong; reinforcement is accomplished through verbal encouragement or by giving
rewards such as prizes, awards and others.

Massed v. distributed learning - learning by giving training through either few, long hours of
training (massed) or series of short hours of training (distributed).
Goal-setting – learning through the explanation of training goals and objectives by the trainers
to the trainees.

Individual differences – training programs that take into account and accommodate the
individual differences of the trainees in order to facilitate each person’s style and rate of
learning.

Active practice and repetition –learning through the giving of frequent opportunities to
trainees to do their job task properly.

Designing the Training Program

This phase involves stating the instructional objectives that describe the knowledge,
skills and attitudes that have to be acquired or enhanced to be able to perform well. In short,
these are performance-centered objectives that must be aligned with the firm’s objectives.
Another thing to be considered is trainee readiness and motivation. This refers to the trainees’
background knowledge and experience, so that the training to be given to them will not go to
waste. Different learning principles, like using modeling, feedback and reinforcement, massed
vs. distributed learning and others influence the training design’s effectiveness.

Implementing the Training Program

Various types of training program implementation include on-the-job training,

apprenticeship training classroom instruction, audio-visual method, simulation method and
e-learning.

Evaluating the Training

The positive effects of the training program may be seen by assessing the participants’
reactions, their acquired learnings and their behavior after completing the said training, the
effects of training may also be reflected by measuring the return on investment (ROI) or through
the benefits reaped by the organization, which were about by their training investment.

Employee Development

Developing employees is a part of an organizations’ career management program and its

goal is to match the individual employee must know himself or herself well, identify his or her
own knowledge, skills, abilities, values and interests, so that he or she could also identify the
career pathway that he or she would like to take. Although he or she is encouraged to take
responsibility for his or her own career, the organization must, at regular intervals, provide
him or her with the results of his or her performance evaluations and the organization’s plans
or direction that may be related to his or her own career plans, this scheme establishes a
favorable career development climate for him or her, which may lead, ultimately, to the
blending of his or her career development goals with organizational goals.
 COMPENSATION/WAGES AND PERFORMANCE
EVALUATION
Compensation/wages and performance evaluation are related to each other because the
employees’ excellent or poor performance also determines the compensation given to them,
after considering other internal and external factors like the actual worth of the job,
compensation strategy of the organization, conditions of the labor market, cost of living and
area wage rates among others.

Compensation may come in different forms, It may market indirect or nonfinancial.

TYPES OF COMPENSATION

Direct Compensation – include workers’ salaries, incentive pays, bonuses and commissions.

Indirect Compensation – includes benefits given by employers other than financial

remunerations; for example: travel, educational and health benefits and others.

Nonfinancial Compensation – includes recognition programs, being assigned to do rewarding

jobs or enjoying management support, ideal work environment and convenient work hours.

CONNECTING COMPENSATION TO ORGANIZATIONAL OBJECTIVES

Worker compensation/wages had tremendously changed in the 21 st century date to

increased market competitions (both local and global), required skills from workers and
changes in technology, among others. Along with these, organizations’ pay philosophies have
also changed. Instead of paying employees based mainly on their job positions or titles, they
are now given pay according to their individual competencies or according to how much they
could contribute or have contributed to their company’s success. Wage experts now prepare
compensation packages that create value for both the organization and its employees.

COMPENSATION: A MOTIVATIONAL FACTOR FOR EMPLOYEES

Compensation pay presents a reward that an employee receives for good performance
that contributes to the company’s success. In relation to this, the following must be
considered:

Pay Equity – related to fairness; the Equity Theory is a motivation theory focusing on
employees’ response to the pay that they receive and the feeling that they receive less or more
that they deserve.

Employees generally feel that their pay must be commensurate to the effort exerted in
the performance of their job. In other words, pay equity is achieved when the pay given to
them by their employers is equal to the value of the job performed; thus, this motivates them
to perform well and to do their jobs to the best of their abilities.

Expectancy Theory – another theory of motivation which predicts that employees are
motivated to work well because of the attractiveness of the rewards or benefits that they may
possibly receive from a job assignment.
 The employee’s perception of the compensation or pay attached to a job position is an
important factor in ascertaining the motivational value of compensation.

BASES FOR COMPENSATION

Employees may be compensated based on the following:

Piecework basis – when pay is computed according to the number of units produced.
Hourly basis – when pay is computed according to the number of work hours rendered.
Daily basis – when pay is computed according to the number of work days rendered.
Weekly basis – when pay is computed according to the number of work weeks rendered.
Monthly basis - when pay is computed according to the number of work months rendered.

Compensation rates are influenced by internal and external factors, Among the internal
factors are the organization’s compensation policies, the importance of the job, the employees’
qualifications in meeting the job requirements, and the employer’s financial stability.

External factors, on the other hand, include local and global market conditions, labor
supply, area/regional wage rates, cost of living, collective bargaining agreements, and national
and international laws among others.

Purposes of Performance Evaluation: Administrative and Developmental

Improving individual job performance through performance evaluation is just one of the
reasons why employees are subjected to assessments on a continuous basis. There is other
purpose behind employee assessment that are beneficial to the company and employees:

Administrative Purposes – These are fulfilled through appraisal/evaluation programs

that provide information that may be used as basis for compensation decisions, promotions,
transfers and termination.

Human resource planning may also make use of it for recruitment and selection of
potential employees.

Developmental Purposes – These are fulfilled through appraisal/evaluation programs

that provide information about employees’ performance and their strengths and weaknesses
that may be used as basis for identifying their training and development needs. Through this
approach, the workers become more receptive to the explanations given by the organization’s
management regarding the importance of having evaluations at regular intervals – that these
are conducted to improve their competencies in order to prepare them for future job
assignments.

Different performance appraisal methods are used depending on the information on

evaluator aims to find out.
 PERFORMANCE APPRAISAL METHODS

Methods of evaluating workers have undergone development in order to adapt new legal
employment requirements and technical changes. Some appraisal methods used today are the
following:

Trait methods – performance evaluation method designed to find out if the employee
possess important work characteristics such as conscientiousness, creativity, emotional
stability and others.

Graphic rating scales – performance appraisal method where each characteristic to be

evaluated is represented by a scale on which the evaluator or rater indicates the degree to
which an employee posse that characteristic

Forced-choice method- performance evaluation that requires the rater to choose from
tow statements purposely designed to distinguish between positive or negative performance;
for example: works seriously –works fast; shows leadership – has initiative.

Behaviorally anchored rating scare (BARS) – a behavioral approach to performance

appraisal that includes five to ten vertical scales, one for each important strategy for doing the
job and numbered according to its importance.

Behavior observation scale (BOS) – a behavioral approach to performance appraisal

that measure the frequency of observed behavior.

WHY SOME EVALUATION PROGRAMS FAIL

Performance appraisals (such as manager/supervisor appraisal, self-appraisal, subordinate or

360- degree appraisal) may sometimes fail due to various reason including the following:

♦inadequate orientation of the evaluates regarding the objectives of the program;

♦incomplete cooperation of the evaluates;

♦bias exhibited evaluators;

♦inadequate time for answering the evaluation forms.

EMPLOYEE RELATIONS
Employee relations applies to all phases of work activities in organizations, and
managers, to be effective, must be able to encourage good employee relations among all human
resources under his or her care. Employees/workers are social beings who need connections
or relations with other beings – other employees/workers – who are capable of giving them
social support as they carry out their tasks in the organization where all of them belong.
Talking to a coworker, perceived to be a friend or working on a delicate task with others can
be comforting during times of stress, fear or loneliness, when these negative feelings are
overcome, employees will be able to work better toward the achievement of their organization’s
goals.
 EFFECTIVE EMPLOYER RELATIONS AND SOCIAL SUPPORT

Social support is the sum of perceived assistance or benefits that may result from
effective social employee relationships. The quantity and quality of an employee’s relationship
with others determine social support (esteem support, informational support or financial
support). In short, social support and effective employee relations must always go together
like “a horse and carriage,” were one would be useless without the other. Therefore, without
social support, effective employee relations are not possible; and without effective social
employee relationships, social support likewise is not possible.
THREE TYPES OF EMPLOYEES
1. ENGAGED – Employees who work with passion and feel a deep connection with
their company, they drive innovation and move the organization forward.
2. NOT ENGAGED – Employees who are essentially “checked out”, they put time,
but not energy or passion into their work.

3. ACTIVELY DISENGAGED – Employees who are not only unhappy at work, but
also act out their unhappiness, they undermine what their engaged coworkers accomplish.

EMPLOYEE MOVEMENTS
A labor union is a formal union of employees/workers that deals with employers,
representing workers in their pursuit of justice and fairness and in their fight for their collective
or common interests.
Employers or workers unionize because of financial needs, unfair management practices
or social and leadership concerns.

a. Financial needs – complaints regarding wages or salaries and benefits given to

them by the management are the usual reasons why employees join labor unions.

b. Unfair management practices – perceptions of employees regarding unfair or

biased managerial actions are also reason why they join mass movements; examples of lack of
fairness in management are favoritism related to promotion and giving of training opportunities
and exemption from disciplinary action.

c. Social and leadership concerns – some join for the satisfaction of their need for
affiliation with a group and for the prestige associated with coworkers’ recognition of one’s
leadership qualities.

STEPS IN UNION ORGANIZING

Terry Moser, an expert union organizer, was credited by Snell and Bob lander (2011) for
the following union-organizing steps:

Step 1. Employee/union contact

Step 2. Initial organizational meeting

Step 3. Formation of in-house organizing committee
Step 4. If a sufficient number of employees support the union movement, the organizer
requests for a representation election or certification election
Step 5. End of union organizing

When the sufficient number of votes is garnered, the NLRC certifies the union as the
legal bargaining representative of the employees. Contract negotiations or collective bargaining
agreement (CBA) negotiation follow the certification. The CBA process involves the following
procedures.
a. Prepare for negotiations.
b. Develop Strategies

c. Conduct negotiations

d. Formalize agreement

GRIEVANCE PROCEDURE
The grievance procedure is a formal procedure that authorizes the union to represent
its members in processing a grievance or complaint. Such grievance must be expressed orally
or in writing to the employee’s immediate supervisor and the union steward. If the immediate
supervisor shows willingness to discuss the complaint with the employee and the union
steward, the grievance may be resolved immediately.

This is possible especially if the supervisor has formal training in handling grievances.
If not resolved within ten work days, the employee forwards the grievance to the department
manager and the chief steward of the union. Again, resolution of the grievance is possible at
this point if the department manager is willing to discuss the matter with the employee and
the chief steward. However, if it remains unresolved, the next step is for the employee to
forward the complaint to the vice president for labor relations and the local union president
after 15 work days. Resolution of the matter is possible, but if nothing happens within 30
work days, the employee may now forward the complaint, with the aid of the local union
president, to the NLRC for arbitration. The arbitrator is neutral third party who resolves the
grievance by issuing a final decision which both parties – the employee, represented by the
union president, and the employer – have to follow.

REWARDS SYSTEM
Organization offer competitive rewards systems to attract knowledgeable and skilled
people and to keep them motivated and satisfied once they are employed in their firm. Further,
rewards promote personal growth and development and present fast employee turnover.
Managements offer different types of rewards. Monetary reward- rewards which pertain to
money, finance or currency.
a. pay/salary – financial remuneration given in exchange for work performance
that will help the organization attain its goals; examples, weekly, monthly, or hourly pay,
piecework compensation, etc.
b. benefits – indirect forms of compensation given to employees/workers for the
purpose of improving the quality of their work and personal lives; health care benefits,
retirement benefits, educational benefits, and others are examples of these.

c. incentives – rewards that are based upon a pay-for-performance

philosophy; it establishes a baseline performance level that employees or groups of employees
must reach in order to be given such reward r payment; examples: bonuses, merit pay, sales
incentives etc.

d. executive pay – a compensation package for executives of organizations which

consists of five components: basic salary, bonuses, stock plans, benefits and perquisites.

e. stock option – are plans that grant employees the right to buy a specific
number of shares of the organization’s stock at a guaranteed price during a selected period of
time.
 Nonmonetary reward – rewards which do not pertain to money, finance or currency;
refer to intrinsic, rewards that are self-granted and which have a positive psychological effect
the employee who receives them.

a. award – nonmonetary reward that may be given to individual employees or

groups/teams for meritorious service or outstanding performance; trophies, medals or
certificates of recognition may be given instead of cash or extrinsic rewards.

b. praise – a form of nonmonetary, intrinsic reward given by superiors to their

subordinates when they express oral or verbal appreciation for excellent job performance.

What’s In

Write TRUE if the statement is correct and FALSE if it is not correct.

_______1. Nonmonetary reward is a rewards which do not pertain to money, finance or

currency; refer to intrinsic, rewards that are self-granted and which have a positive
psychological effect the employee who receives them.

_______2. The grievance procedure is a formal procedure that authorizes the union to represent
its members in processing a grievance or complaint.

_______3. A labor union is a formal union of employees/workers that deals with employers,
representing workers in their pursuit of justice and fairness and in their fight for their collective
or common interests.

_______4. Executive pay is a rewards that are based upon a pay-for-performance philosophy;
it establishes a baseline performance level that employees or groups of employees must reach
in order to be given such reward r payment; examples: bonuses, merit pay, sales incentives
etc.

_________5. Unfair management practices – complaints regarding wages or salaries and

benefits given to them by the management are the usual reasons why employees join labor
unions.