Republic of the Philippines

BATANGAS STATE UNIVERSITY

The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

MGT 101 – HUMAN RESOURCE MANAGEMENT

ASSESSMENT ACTIVITY NUMBER 2

Name/s: Catapang, Jessa R.

Catapang, Rheinh Jaime Anne L.
Caube, Shevanica Q.
Cuerdo, Jorelaine P.
Cueto, Khaila U.
Section: FINMGT- 1103 Date: _____________

UNIVERSITY VISION
A premier national university that develops leaders in the global knowledge economy.

UNIVERSITY MISSION
A university committed to producing leaders by providing a 21st century learning environment through
innovations in education, multidisciplinary research, and community and industry partnerships in order to
nurture the spirit of nationhood, propel the national economy, and engage the world for sustainable
development.

Direction: Answer the following questions COMPREHENSIVELY.

1. CHAPTER VII – TRAINING

Learning Opportunities for Employees Are No Accident at Farmers Insurance Group of Companies

Farmers Insurance Group of Companies is the third-largest insurer of auto and homeowners’ insurance in
the United States and also provides other insurance and financial products. Farmers has 60,000
employees and exclusive and independent agents in every one of the 50 states. It processes millions of
insurance quotes, new policies, renewals, and bills each year. In the insurance industry, legal
requirements and the introduction of new products, processes and services make training and
development critical for business success. At Farmers Insurance, learning professionals are rewarded
based on the degree to which training programs change the behavior of employees and help the business
meet its objectives. Learning is delivered based on the desired end result. No wonder that Farmers has
been ranked in the Top 10 of Training magazine’s Top 125 for the last four years and will be inducted
into the Hall of Fame!

Farmers uses a blended learning approach to deliver effective learning to its multigenerational employees
and agents who are located across the U.S. Farmers believes that rather than allowing learners to choose
the type of training method that they believe best fits their style, a blended learning approach is more
effective. As a result, its training programs integrate face-to-face instruction, print, online, video, audio,
virtual simulations, and coaching. Technology is used for delivering knowledge and instructor-led
training is used for skill development. In the past five years the amount of learning delivered through
instructor-led classroom-based training has dropped from 90 to 50%. The other 50% is online or informal
learning. For example, Farmers is using various training methods to help its employees cope with the
changes made in claims processing, ratings, billing and product systems in support of Farmers business
strategy, which emphasizes customer experience, distribution, and product management excellence. For
example, field managers were required to complete online training and webinars designed to provide the
new knowledge they needed. Then the managers received instructor-led training, videos, and coaching
guides. Farmers also revised its training program for new agents as a result of an increased failure rate of
new agencies. The revised program includes more coaching, performance support aids, and multimedia
methods. It also ensures that new agents learn knowledge and skills when they are relevant to their jobs
rather than forcing them to learn everything at once and having them frustrated with being unable to
recall the information when they need it later. As a result of the program revision, converting new agents
to full-time status improved by 12%, sales results exceeded sales goals by 11%, and agency success rates
increased 10%.

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Recognizing that new technologies are potentially useful for training delivery and instruction, Farmers
has started to use virtual classrooms, mobile learning, social networks, electronic tablets such as iPads,
and learning simulations. While taking courses at the University of Farmers, learners can use electronic
tablets to take notes, access websites and articles, and view videos. The video capabilities of the tablets
allow instructors to use them to record the learners’ practicing skills and then provide feedback and
coaching. Also, the instructors can create learning materials such as iBooks with embedded videos. To
encourage learning outside of a formal classroom environment, Farmers developed iFarmers apps for
customers, sales agents, and employees. The iFarmers customer app helps customers learn about
different insurance products. An iClaims app gives customers access to input and managing their
insurance claims. The iAgent app provides business focused learning for sales agents. Farmers has also
been experimenting with social networking for employees to collaborate, create and share knowledge,
and to provide performance support. Some training programs are using the social network for
collaborative exercises. Farmers’ “Agency Insider” program allows learners to specify whether they want
to use Twitter, Facebook, e-mail, or an RSS feed.

Questions:
● Is Farmers’ training strategic? Why? What information did you consider in determining your
answer?

As I see it, the farmers' training is strategic. According to the Farmers Insurance, learning
professionals are rewarded. Learning is also provided by the desired outcome and the extent to
which training programs alter employee behavior and assist the business in achieving its objectives
also provide learning opportunities. They use a variety of training methods and programs that are
easy for employees to use. As a result, the company discovered that these methods of training will
be beneficial to all agents and employees in all business dealings and operations.

The fact that farmers use a blended learning approach and online or informal learning is the
piece of information I take into consideration when coming up with my answer. We all know that
blended learning is a method of teaching that integrates technology and digital media with
traditional instructor-led classroom activities, giving students or employees more flexibility to
customize their learning experiences. Because of this, the company's training programs incorporate
face-to-face instruction, print, online, video, audio, virtual simulations, and coaching for its
multigenerational employees and agents. While online or informal learning, Farmers have started to
use virtual classrooms, mobile learning, social networks, electronic tablets such as iPads, and
learning simulations. Also, the company developed the iFarmers, iClaims, and iAgent apps to
encourage learning outside of a formal classroom environment. Farmers have also been teaching
their employees how to work together, create and share knowledge, and provide performance
support through all of these programs.

New technologies are quite helpful today, and this company acknowledges our new
technology by utilizing this kind of learning for its training program. To make it simple for
employees and agents to access and manage a business transaction, strategy, production, and other
issues. Therefore, the farmers' training is strategic since now we can use different platforms to create
learning materials and to train our employees and agents for better outcomes for the company.

● Does Farmers support informal learning? How? What else could the company do to facilitate
informal learning?

Yes, they do. Farmers' multigenerational workers and agents are dispersed across the
country, and the company provides effective learning through a blended learning method. Farmers
believe that a mixed learning strategy is more beneficial than allowing students to choose the
training technique that best suits their learning preferences. It is said that training programs combine
face-to-face instruction with print, online, video, audio, virtual simulations, and coaching. To impart
knowledge, technology is used, while instructor-led training is used to improve skills. Also, Farmers
have begun to use virtual classrooms, mobile learning, social networks, electronic tablets such as
iPads, and learning simulations after knowing that new technologies are potentially useful for
training delivery and instruction.

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

According to what I've read, one of the best ways to take advantage of unstructured learning
opportunities at work is through mentorship programs. that a junior employee's relationship with a
senior colleague can help forge solid connections, fill knowledge gaps, and put the younger worker
on the path to success. It is critical for establishing a stable, growth-oriented environment.

● How would Farmers determine if training, instead of some other reason, was responsible for the
failure of new agents?

The farmers would need to create an experiment with the training as the only variable in
order to make this judgment. By picking a small group of people and providing them with training,
they can achieve this. Making sure that all of the agents, both trained and untrained, are then placed
in the same environment with all of the same constants, and once they have completed their work,
comparing the findings. The training would be identified as the primary cause of the failure if the
untrained agents outperform the trained agents in the exact identical situations.

2. CHAPTER VIII – PERFORMANCE MANAGEMENT

Making Unnecessary Repairs

Progress Rail Services inspects railcars at Terminal Island in the port of Los Angeles where cargo is
unloaded from ships and moved across the country. Over 10,000 railcars each month are found in the
port and most are inspected by Progress Rail Services. When Progress Rail Services employees find
problems, they repair the railcars and charge the owners. The workers, known as car men, are paid
between $15 and $29 per hour. The job includes late night shifts and often working in wind and rain. Car
men need to work quickly, spending about two minutes looking at each rail car. Some car men have
smashed brake parts with hammers, gouged wheels, and used chains to tear off handles to make repairs
necessary. Also, car men make “green repairs,” which means replacing parts that are not broken and
hiding the old parts or throwing them in the ocean so that company auditors cannot find them. Progress
Rail Services, a subsidiary of Caterpillar Inc., is being investigated by a federal prosecutor for criminal
charges stemming from allegation of unnecessary repair work. Caterpillar is cooperating with the
investigation, which it considers serious because it suggests employees have not behaved in a way
consistent with company values. Workers blame their managers who say that they would lose their jobs
and be replaced if they didn’t produce sufficient repair revenue. Employees who identify large numbers
of parts to replace don’t receive extra pay but their supervisors tend to treat them more favorably and
they often receive employee-of-the-month recognition.

Questions:
● How could performance management have stopped the car men from making bogus repairs?

To begin with, we already recognize that performance management is a method used by

managers to ensure that employees' actions and outputs are congruent with the company's goals.
Performance evaluation is an aspect of this procedure that management could have used to prevent
its car men from performing bogus repairs. Employee performance is assessed or evaluated to
determine whether or not an employee is performing satisfactorily at work. Performance evaluation
can assist the management in minimizing and eliminating the causes of performance shortfalls by
identifying top and lowest performers and providing them with feedback.

One of the main ways that performance management strategies are put into practice is by
first defining the outcomes, actions, and, to some extent, employee traits that are essential to
implementing those tactics, and then creating measurement and feedback systems that will
maximize the degree to which employees exhibit the traits, take the actions, and produce the
outcomes. Sales alone are not a sufficient metric to determine if an employee is performing well. To
verify the validity of their earnings, it is still necessary to assess how they perform. The
management can discover employees who are performing better and those who continuously
perform poorly by evaluating the performance of the employees. With this, they can promptly
decide who should get raises and incentives and who has to be let go.

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Ensuring that the company's clients receive high-quality service can be achieved by
properly implementing performance management. As a result, it can help in minimizing and
eliminating behaviors that are inconsistent with the company's culture and values and avoid future
problems involving customers.

● Consider the different performance management approaches discussed in the chapter. Which
approach do you recommend for ensuring only correct repairs are made in the future? Explain the
reasons for the approach you recommend.

To monitor and assess performance, one might utilize one of five main performance
management strategies. Among these five ways, I may suggest the comparative and behavioral
approaches for the given scenario. Under the comparative approach, an individual's performance can
be compared to other performances or it can also be a comparison of prior measurements to the
current performance evaluation. The management might contrast their current or upcoming sales
with their past sales, which include the money from phone repairs, in the instance at hand. When
they learned of the poor performance, they should anticipate a drop in sales. The management must
launch another inquiry if it turns out that sales are staying the same because it's possible that their
employees are continuing performing false repairs. In terms of the behavioral approach,
management can place less emphasis on performance outputs and more emphasis on the attitude and
conduct a person exhibits in relation to his or her job. With such information, management can act
promptly to put a stop to this sort of behavior. In this strategy, the management may simply set aside
a day to monitor their employees, do spot audits, or pay them a surprise visit to assess their
behavior. The management might also get feedback from the customers about the employees'
customer service.

● Using the factors to consider in analyzing poor performance shown in Figure 8.8 determine the
cause for the faulty repairs.

Employees require performance feedback to improve their existing job performance, as we

emphasized in the previous topic. For employees to advance their knowledge and abilities,
"Employee Development," or performance feedback, is also necessary. Managers must be able to
diagnose the root causes of performance issues and take appropriate action to enhance and maintain
employee performance. This goes beyond simply knowing how to offer employees performance
feedback. Giving marginal employees performance feedback, for instance, might not be enough to
help them perform better.

It is vital to think about whether the poor performance is detrimental to the company while
determining the causes of it. The next stage is to conduct a performance analysis to identify the root
cause of poor performance if it is detrimental. In my opinion, the employees' actions and behavior
were the cause of the faulty repairs. Any workplace acknowledges the need for good work behavior.
Not only may it affect how well employees get along, but it can also affect how productive they are
and how safe the workplace is. Employees who behave well at work are more likely to be efficient,
get along better with coworkers, and adhere more closely to safety regulations. Overall, this may
result in a more productive and efficient workplace. Additionally, solid work ethics can contribute to
the development of a positive workplace culture. Employees that behave irresponsibly could be less
efficient, more likely to have damages. This may result in a drop in morale and an increase in
employee turnover.

It's critical to understand how an employee's behavior can impact how well they perform at
work. It's crucial to make improvements if they discover that their actions are hindering their ability
to do their job. Setting the example for proper workplace conduct is essential for companies. This
entails establishing specific expectations and offering frequent feedback. Employers should also
foster a respect and appreciation-based culture. Therefore, when poor workplace behavior happens,
employers should take appropriate action. This could imply disciplining employees as needed and
offering coaching or counseling. Employers can establish a workplace where good work behavior is
the standard by implementing these actions. The steps that the manager and the employee will take

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

to enhance performance will be discussed, along with the issues associated with not doing so. A
timeline for improvement will also be established.

3. CHAPTER IX – EMPLOYEE DEVELOPMENT

Leadership Development at Raytheon

At Raytheon, a leader in the defense industry, leadership development focuses on high-potential early
career leaders from different functional areas including information technology, human resources, supply
chain, engineering, and business development. The program includes rotational assignments, and
functional and cross-functional learning opportunities that are related to the company’s competency
model. The program includes more than 100 employees in each class. The learning environment is
team-based and problem-focused to develop critical knowledge sharing, business acumen, and team
leadership that are needed by Raytheon’s managers. The capstone event for the program is a simulation
that mirrors real market share and profit challenges faced by Raytheon’s leaders. Twenty-five-person
teams participate in the challenge. Each team has two engineers and the other three team members are
from other business functions. The simulation is a test of how well the participants can apply what they
learned in the program. To succeed in the simulation the teams have to be able to draw upon the
functional expertise of all members. The simulation requires participants to use tools and processes that
the company uses to manage costs, execute projects, and measure success. Teams need to balance both
long- and short-term goals to insure they can successfully compete against each other. There are multiple
rounds of competition with information provided on each team’s effectiveness. This information is used
for the next decisions the team needs to make.

Questions:
● What other types of development activities should Raytheon consider for its leadership
development program? Provide a rationale for your recommendations.

The Raytheon leadership exercise is "switching roles," when the manager assigns part of
their responsibilities to employees for a day or a few hours. They may be more knowledgeable
about what managers are doing. It will be good to examine managerial work more carefully.
Position enhancement, in which executives employed by Raytheon have their duties changed to
match certain personal ambitions, is one option that Raytheon should take into consideration. In this
kind of development activity, the leaders are given particular tasks that help assess their degree of
expertise. Raytheon can either formally or informally mentor its leaders as part of the second type of
development activity. When engaging in this kind of leadership development activity, Raytheon can
mentor the leaders and establish clear goals for them, expecting them to achieve the results.

● What interpersonal skills could be improved by participating in the simulation? Explain how.

In my opinion, communication skills are one of the interpersonal skills that can be enhanced
through simulation participation. My research shows that simulations are typically computer-based,
using software-generated models to support the decision-making and training of managers and
engineers. Simulation technology supports understanding and experimentation because models are
visual and interactive. Therefore, communication is very important when doing a team project,
research, or simulation, as all members need to interact with each other, especially when it comes to
making decisions. Everyone can share their opinions and suggestions to improve their work.

Communication within a group is crucial. In the absence of this, there is a greater likelihood
of workplace conflict, tension, and misunderstanding. Because it is the foundation of a healthy
culture and a team that works well. When your team communicates effectively, your projects
succeed in all other ways. On the other hand, if one team can't communicate, all the other parts will
probably struggle or fail. Simulation is not like a project where getting a good grade in one subject
is simple; simulation necessitates broad knowledge, observation, and experimentation by a team.
There’s a leader who can lead every member, and each member can communicate with each other to
make good decisions as a group.

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

In conclusion, simulation gives participants the chance to generate, develop, and improve
their communication skills, as well as their confidence in their own abilities, without having to
worry about it. As a result, in this article, they need to improve not only their leadership skills but
also their communication skills if they want their work to go smoothly and produce good results.

4. CHAPTER X – EMPLOYEE SEPARATION AND RETENTION

Churning About to Heat Up

Traditionally, the U.S. workforce has had one of the highest rates of voluntary turnover in the world,
and this is actually considered a source of competitive advantage. Unlike layoffs that reduce the
overall size of the economy, people who turn over voluntarily often have lined up better jobs already,
and thus, create a new job opening for someone else after they leave. Thus, this kind of “churning”
does not affect the size of the economy and results in a better person-job fit for many people. It also
rewards good employers who can attract the best workers and punishes employers who fail to meet
the needs of the workforce, thus “thinning the herd” at the firm level. The churn rate for the U.S.
economy, however, is not what is used to be, and many have pointed to this factor as one of the
reasons for the weak nature of the most recent recovery. Many workers during the recession were
very reluctant to leave their jobs, and this aversion to risk reduced the number of job openings over
and above what might be attributable to the bad economy. One study suggested, for example, that
80% of the reduction in hiring during the 2007–2009 recession was due to a reduction in churn
rather than a decline in job creation. All of this seems to be changing, however. Turnover rates that
stood at 9% in 2008 and 2009, jumped to 15% in 2010 and 2011. In addition, all signs pointed to
even higher increases in 2012 and 2013. A national survey conducted by the Society of Human
Resource Management indicated that job satisfaction, a leading indicator of voluntary turnover, was
down over 80% in 2012, and a separate survey conducted by HR software vendor Cornerstone
OnDemand estimated that 25% of employees were looking to change jobs in the 2013–2015 time
period. Many of these workers suffered through years of increased workloads without increased pay
during the recession and are looking to improve their situation as the economy continues to heat up.
For businesses, the cost of this churning is close to $2 trillion due to the need to recruit and train new
workers. This cost is not distributed evenly across employers, however. Organizations that were not
able to keep up employee morale are about to lose a large percentage of their most valued
employees, whereas companies that met their employees’ needs are likely to experience stability or
growth. Thus, churning streamlines the economy and creates efficiency by eliminating weak
competitors and strengthening the most competitive firms.

Questions:
● Explain the sentence “churning streamlines the economy and create efficiency by eliminating
weak competitors and strengthening the most competitive firms”.

Employees may leave because better opportunities await them, while others may leave
because they did not meet the workforce's demands. It also causes problems for organizations since
skilled workers exit. It is best to let employees go if they are incompetent, unproductive, and show
no signs of progress. Turnover can also boost employee morale. Voluntary turnover is not always a
bad thing because it offers opportunities for other people with outstanding skills. Hiring and training
new employees will be costly, but they will bring new skills and ideas.

● What are some of the step’s organizations take to reduce and avoid turnover among
employees?

The company should build learning and development programs in light of the rising
voluntary turnover rate, which causes the existing company to be supplanted by the stronger
company. Employee morale is raised and the organization gains from learning and
development. Companies can set up definite guidelines for learning and development while still
allowing their staff to pursue interests. To attend a conference or seminar each year, for
instance, you could provide a budget. Making sure the criteria are transparent, equitable, and

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

broadly accepted by employees is necessary for the success of these programs. By choosing the
proper employees, HR professionals have a special chance to shape an organization. Finding
workers who are enthusiastic about the organization's objective as well as having the necessary
abilities is crucial. Concentrating on your schooling may be the solution if you'd want to
enhance your HR professional abilities.

● How does an increase in churn rates create strategic opportunities for firms with strong
reputations in the labor market?

To begin with, the rate at which customers stop doing business with a company is
known as the "churn rate." It is most commonly expressed as the percentage of service
subscribers who cancel their subscriptions within a specified time frame. Aside from that,
calculating a company's churn rate shows how well the business is keeping customers, which is
a reflection of the quality and usefulness of the service it provides. A company knows that a
fundamental part of how it runs its business is flawed when it observes an increase in its churn
rate over time.

Therefore, I believe that managing employee retention involves strategic actions to

maintain employees' motivation and focus so that they choose to remain employed and fully
productive for the organization's benefit. It is possible for a comprehensive employee retention
program to have a significant impact on both attracting and keeping key employees, as well as
reducing turnover and the costs associated with it. Employee job satisfaction and employee
engagement are essential parts of employee retention programs. All of these factors contribute
to an organization's overall productivity and business performance. Retaining an excellent
employee is more productive than recruiting, training, and orienting a replacement employee of
the same quality.

However, the time and money invested in focusing on employee retention are well
worth it in terms of improved performance, productivity, morale, and work quality, as well as a
decrease in employee turnover and issues related to employees. In conclusion, by managing
employee retention, organizations can keep talented and motivated employees who genuinely
want to be a part of the company and are committed to contributing to the overall success of the
organization.

Prepared by:

JEMUEL G. MALALUAN, CHRA

Instructor, Mgt 101
Date: November 8, 2022

Leading Innovations, Transforming Lives, Building the Nation