Checking of attendance

Organization and Management

QUARTER 2
Week 3-4
Compensation,
Performance
Evaluation and
Employee Relations
 Learning Competency

Examine the functions and importance of compensation, wages

and performance evaluation, appraisal, reward system, employee
relations and movement.
 Objectives
At the end of this lesson, you are expected to:
1. identify the policy guidelines on compensation and wages and
performance evaluation or appraisal;
2. understand the basis of compensation
3. differentiate benefits from privileges
May be...
Siguro…

"Talent wins games, but teamwork and intelligence

win championships."
- Michael Jordan
"Talent wins games, but teamwork and intelligence
win championships."
- Michael Jordan
"Talent wins games, but teamwork and intelligence
win championships."
- Michael Jordan
"Talent wins games, but teamwork and intelligence
win championships."
- Michael Jordan
DISCUSSION
Have you ever thought
that someday you will
be sitting as a
manager?

Do you have an idea on how to

keep the human resources in your
company?
This Photo by Unknown Author is licensed under CC BY
 Compensation/wages
all forms of pay given by employers to their employees for
the performance of their jobs
 Performance evaluation
a process usually done once a year by the organization to measure
employees’ work performance.
Different forms of
Compensation
DIRECT
COMPENSATION

includes workers’ salaries, incentive

pays, bonuses, and commissions.
INDIRECT
COMPENSATION

includes benefits and privileges given by

the employers other than financial
remunerations like travel, educational
and health benefits, among others.
Benefits and Privileges
BENEFITS
fixed and mandated by law
Benefits and Privileges
PRIVILEGES
temporary indirect compensations.
NON-FINANCIAL
COMPENSATION

does not have any monetary value rather it

involves the satisfaction that an employee
receives from his work environment.
Compensation pay represents a reward that an
employee receives for good performance that serves
to be a contributory factor to the company’s success.
In relation to this, the following must be considered:
 PAY EQUITY

The Adam’s Equity Theory states that people maintain a fair

relationship between the performance and rewards in
comparison to others.
 EXPECTANCY THEORY

Another theory of motivation which predicts that employees are

more motivated to work because of the attractiveness of the
rewards or benefits that they may possibly receive from a job
assignment.
 Piecework basis. This happens when pay is
computed according to the number of units
produced or outputs made.

Hourly basis. When pay is computed according

to the number of hours rendered.

BASIS OF
COMPENSATION Daily basis. This occurs when pay is computed
according to the number of work days
rendered.
 Weekly basis. It is on a weekly basis when pay is
computed according to the number of work weeks
rendered.

Monthly basis. This is when pay is computed

according to the number of work months
rendered.

BASIS OF
COMPENSATION
Today is your
opportunity
to build the
tomorrow
you want
-KEN POIROT
 Direction: Tell whether the following monetary rewards belong to Direct
compensation, Indirect compensation or Non-financial compensation

_____ 1. P50.00 per hour

_____ 2. Health benefits
_____ 3. P20,000 salary per month

_____ 4. PHILHEALTH membership

_____ 5. Certificate of Recognition
_____ 6. Attending a seminar to Singapore
This Photo by Unknown Author is licensed under CC BY-NC-ND