Department of Education Examples of organization analyses include the analyses of effects of
Saint Ignatius Loyola Academy downsizing, branching out conflicts with rival companies, and others that may
Liloan, Southern Leyte
Learning Materials in Organization and Management 11
Quarter 2
Name of Student: ___________________________ Grade & Section:_____________ Date:__________
MELC: *Examine the functions and importance of compensation, wages and performance
evaluation, appraisal, reward system, employee relations and movement
CONCEPT: ⦁The Importance of Compensation, Wages and Performance Evaluation,
Appraisal, Reward System, Employee Relations and Movement.
Training and Development,
LESSON 8 Compensation/Wages and 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.
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 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.
Activity 1: Quiz
A. IDENTIFICATION: Identify the statement and write the correct answer. Use
the given “ANSWER SHEET” for all your answers.
1. Learning through the explanation of training goals and objectives by the
trainers to the trainees.
2. 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.
3. A _________ 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. 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.
5. 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.
6. Employees who are not only unhappy at work, but also act out their
unhappiness, they undermine what their engaged coworkers accomplish.
7. 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.
8. It is the sum of perceived assistance or benefits that may result from
effective social employee relationships.
9. 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.
10. These are fulfilled through appraisal/evaluation programs that provide
information that may be used as basis for compensation decisions, promotions,
transfers and termination
B. ENUMERATION
What are the steps in union organizing? 1.__________________________________________________________________
Step 1 2.__________________________________________________________________
Step 2 3.__________________________________________________________________
Step 3
4. __________________________________________________________________
Step 4
5. __________________________________________________________________
Step 5
6. __________________________________________________________________
7. __________________________________________________________________
8. __________________________________________________________________
9. __________________________________________________________________
10. __________________________________________________________________

B. ENUMERATION
Department of Education
Saint Ignatius Loyola Academy Answers:
Liloan, Southern Leyte
What are the steps in union organizing
Answer Sheet in Organization and Management 11
Step 1
Quarter 2 • Week 8

Name:______________________________________________ Date: Nov. 15 – 19, 2021 Step 2

Grade & Section:_________________________________ Score:_____________________
Teacher: Eric Suco Rivera Step 3

REMINDERS Step 4
PUT ALL YOUR ANSWERS HERE IN YOUR ANSWER SHEET. DO NOT SUBMIT THE LEARNING
MATERIALS, ONLY THE ANSWER SHEET WILL BE SUBMITTED TO YOUR TEACHER. REFER
TO YOUR LEARNING MATERIALS FOR THE COMPLETE INSTRUCTIONS OR DIRECTIONS IN Step 5
EACH ACTIVITY.

Activity 1: Quiz
A. IDENTIFICATION
Answers: