Math 12 ABM Org - MGT Q2 Week 4
Math 12 ABM Org - MGT Q2 Week 4
Math 12 ABM Org - MGT Q2 Week 4
1
FOREWORD
2
OBJECTIVES:
K: Identify the policy guidelines on compensation and wages
and performance evaluation or
appraisal;
S: Discuss the importance of employees relations and
differentiate various employee movements; A: Realize the
importance of adopting an effective rewards system.
LEARNING COMPETENCIES:
I. WHAT HAPPENED
PRE-TEST:
Direction: Unscramble the letters below, based on the definition provided in each number.
Write your answers in your activity notebook.
1. CASONMOPIETN - all forms of pay given by employers to their employees for
the performance of their jobs
2. ERFOPRMCAEN VTIELNUAOA - a process undertaken by the organization,
usually done once a year, designed to measure employees’ work performance
3. MEPLYEOE ERLTIAOSN - the connection created among employees/workers
as they do their assigned tasks for the organization to which they belong
4. PELMOEYE EOVMEMTSN - series of actions initiated by employee groups
toward an end or specific goal
5. NUIMNIOS – the principle of combination for unity of purpose and action
6. WRADRE - gift, prize, or recompense for merit, service, or achievement, which
may have a motivating effect on the employee 7. OMNTERYA WERADR -
refers to money, finance, or currency reward
8. NNOMAOETRYN AERDWR - refers to intrinsic rewards which do not pertain to
money or finance
3
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 be direct, indirect, or
nonfinancial.
Types of Compensation
Direct compensation – includes workers’ salaries, incentive pays, bonuses, and
commission
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
Figure 1
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 position or titles, they are now given pay according to their competencies
or according to how much they could contribute or have contributed to their company’s
success. Wage experts now prepare compensation packages to create values for both the
organization and its employees.
Source: (Latte, 2018)
Figure 1. Pay equity is among the important considerations in preparing compensation packages. As illustrated
in this diagram, pay equity is based on the idea that an employee’s pay must be commensurate to his or her
effort.
4
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
than 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
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.
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.
5
Different performance appraisal methods are used depending on the information an
evaluator aim to find out.
6
Why Some Evaluation Programs Fail
Performance appraisals (such as manager/supervisor appraisal, selfappraisal,
subordinate appraisal, customer appraisal, peer appraisal, team appraisal, or 360-degree
appraisal) may sometimes fail due to various reasons including the following:
• the inadequate orientation of the evaluatees regarding the objectives of the
program; (lacking orientation)
• incomplete information of the evaluatees (e.g. proper answering of the evaluation
questionnaire); (lacking information needed for the employee)
• bias exhibited by evaluators; (evaluators oversee skill and performance and
rather go for a bias approach)
• inadequate time for answering the evaluation forms; (limited time given to
answer the forms, so they tsamba in rush)
• ambiguous terms used in the evaluation questionnaire; (words that can’t be
understood are used, causing confusion)
• employee’s job description is not properly evaluated by the evaluation
questionnaire used; (failure to hand out proper job description)
• inflated ratings resulting from the evaluator’s avoidance of giving low scores;
(having fear of affecting the company performance due to low scores, they
direct to raise ratings despite undeserving performance, unjustifiable rating)
• evaluator’s appraisal is focused on the personality of the evaluatee and not his or
her performance; (biased system as it is based in a one-dimensional quality
such as the personality, not basing from the standards)
• the unhealthy personality of the evaluator; (bitter evaluator)
• the evaluator may be influenced by organizational politics. (evaluator may be
biased as they base their evaluation to connections, involvement of the
higher-ups to employees that are directly connected to them)
REWARD SYSTEM
Organizations 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. Management offers different types of rewards:
Monetary rewards – rewards that 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 to
improve 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 pay-for-performance philosophy; it
establishes a baseline performance level that employees or groups of employees
must reach to be given such reward or payment; examples; bonuses, merit pay,
sales incentives, etc.
7
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 Options – are plans that grant employees ➢ A research on effective rewards
the right to buy a specific number of shares of systems by the Center for Effective
the organization’s stocks at a guaranteed price Organizations revealed that rewards systems
can influence six factors or areas that impact
during a selected period.
organization effectiveness. These are:
• attention and knowledge;
Nonmonetary Rewards – rewards that do • motivation of performance;
not pertain to money, finance, or currency; refer to • skills and knowledge;
intrinsic rewards that are self-granted and which • culture;
have a positive psychological effect on the • reinforce and define structure; and cost.
employee who receives them.
Read the research text at
a. Award – a nonmonetary reward that http://ceo.usc.edu/pdf/G935225.pdf
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
EMPLOYEE RELATIONS
Employee relationships apply 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 can give them
social support as they carry out their tasks in the organization where all of them belong.
Talking to a co-worker, 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 goal.
-ensuring that employees are happy
-effort the organization does to manage relationships between employers and
employees
8
• Anti-social personality: refusal to share more about oneself to co-employees;
being a loner
• Lack of trust in others
• Selfish attitude; too many self-serving motives
• Lack of good self-esteem
• Not a team player
• Being conceited (mangilo)
• Cultural/subcultural differences
• Lack of cooperation
• Communication problems: refusal to listen to what others seek to communicate
• Lack of concern for others’ welfare
9
- Creating a sound and efficient work environment with excellent management and a strong
employer-employee relation can be the vital key to any business success or failure.
Table 1.
Three Types of Employees
Engaged • employees who work with passion and feel a deep connection with
their company
• they drive innovation and move the organization forward
Actively • employees who are not only unhappy at work but also act out their
Disengaged unhappiness
• they undermine what their engaged coworkers
accomplish
According to a study on employee engagement published by www.gallup.com, there are three types of
employees, as shown in this table. Employee engagement may be influenced by the kind of relationships
employees have in their workplace.
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.
Employees 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 the 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 unions for the satisfaction of their
needs for affiliation with a group and for the prestige associated with coworkers’
recognition of one’s leadership qualities
10
Figure 2. Company owners have to make sure that they make their employees satisfied in order to
prevent a labor strike.
Step 3. Formation of the in-house organizing committee – this starts with the identification
of employees who are ready to act as leaders in campaigning for their goals, in trying to get
the interests of the other employees to join their movement, and in convincing employees to
sign an authorization card to show their willingness to be represented by a labor union in
collective bargaining with their employer. The strength of the union is shown by the number
of employees who signed the authorization card. At least 30 employees must sign the said
11
card before the National Labor Relations Commission (NLRC) approves the holding
representation election.
Step 4. If a sufficient number of employees support the union movement, the organizer
requests for a representation election or certification election – a representation petition is
filed with the NLRC asking for the holding of a secret ballot election to determine the
employees’ desire for unionization. Before the election, leaders’ campaign for employees’
support for the election and encourage them to cast their votes. Intense emotions are shown
by employees, the labor group, and the employers during this period.
Step 5. End of union organizing – when a sufficient number of votes is garnered, the NLRC
certifies the union as the legal bargaining representative of the employees. Contract
negotiation or collective bargaining agreement (CBA) negotiations follow the certification.
The CBA process involves the following procedures:
a. Prepare for negotiations – data to support bargaining proposals are collected and
arranged in an orderly manner by both parties – the union and the employer’s
groups. This is followed by the selection of the members of their respective
bargaining teams. Usually, each side has four to six representatives at the
bargaining table. The chief negotiator for the union is the union president while
the chief negotiator for management is the organization’s vice president of the
labor relations manager. Supporting data to back up the positions of each group
are gathered. Economic data are very
important. Other internal organization data needed include
records of promotions, transfer, overtime work, grievances, ➢ The National Labor
disciplinary actions, and arbitration. Relations Commission (NLRC)
b. Develop strategies – management proposals are developed is an attached agency of the
DOLE. The NLRC is a quasi-
and limits of concessions are determined, while also
judicial body that is tasked to
considering the union’s goals and their possible strike plans. resolve disputes between the
The union, on the other hand, tried to develop better labor force and management in
strategies to convince the management group to accept its order to preserve industrial
proposals.
c. Conduct Negotiations – this consists of bargaining,
analyzing proposals, resolving issues related to the
proposals, and remembering to stay within their respective bargaining zone. If no
agreement is reached at this point, a deadlock may result.
The union’s bargaining power may be exercised by holding a strike, picketing,
or boycotting the employer’s products or services. The management’s bargaining
power, on the other hand, maybe exercised either by continuing operations or
shutting down operations. Another method is by a lockout of its employees or
denying the employees the opportunity to work.
Unions and employers may try to resolve bargaining deadlocks by mediation
or arbitration. Mediation is the use of a neutral third party to reach a compromise
decision in employment disputes. Arbitration also uses a neutral third party who
resolves the labor dispute by issuing a final decision in the disagreement.
d. Formalize agreement – after the negotiation process, the union and the
management group have to formalize their agreement. This agreement is a formal
binding document that lists down the terms, conditions, and rules under which
employees and managers agree to operate; the clear language must be used in the
contract, which has to be ratified by the majority of the employees. After
ratification, all the members of the union and the management bargaining teams,
12
as well as the president or chief executive officer of the organization, must sign
the document before its dissemination to all parties concerned.
CBA activities, ideally, must be a continuous process (although it is held every five
years in many companies). Right after the formalization of the agreement and its ratification
and signing, preparations for negotiations on the next CBA must begin again. This will allow
negotiations to review weaknesses and mistakes committed during the previous negotiations
while these are still fresh in their minds.
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 a 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 working days, the employee forwards the grievance to the
department manager and the chief steward of the union. Again, the 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 this 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 workdays. Resolution of the matter is possible, but if nothing
happens within 30 workdays, the employee may now forward the complaint, with the aid of
the local union president, to the NLRC arbitration. The arbitrator is a 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.
13
A. Direction: Choose the correct word(s)/term(s) from the box that is being described in
the statements below. Write only the letter of the best answer in your activity
notebook.
A. Compensation G. Graphic Rating Scales
B. Direct Compensation H. Grievance procedure
C. Employee Relations I. Trait methods
D. Engaged Employees J. National Wages & Productivity
E. Expectancy Theory Commission
F. Financial needs K. Weekly basis
1. These are all forms of pay given by employers to their employees for the
performance of their jobs.
2. This theory predicts that employees are motivated to work well because of the
attractiveness of the rewards or salary that they may receive from a job
assignment.
3. A compensation that includes worker’s salaries, incentive pays, bonuses, and
commissions.
4. This is the connection created among employees as they do their assigned tasks for
the organization to which they belong.
5. A formal procedure that authorizes the union to represent its members in
processing a complaint.
6. A government agency that is concerned with minimum wage determination in the
country.
7. A performance method where each characteristic to be evaluated in represented by
a scale.
8. A performance evaluation method designed to find out if the employee possesses
important work characteristics.
9. A complaint regarding wages or salaries and benefits given to the employees by
the management.
10. These are employees who work with passion and feel a deep connection with their
company.
B. Answer the following questions succinctly. Write your answer in your activity
notebook.
1. Do you agree with the statement that the evaluator’s bias may cause the evaluation
program to fail? Explain your answer.
2. How important is effective employee relations in achieving the goals of the
company?
3. Give the reasons why employees organize a labor union. Support your answer.
4. In this time of the pandemic, what do you think is/are the best reward(s) an
employer can offer to their employees especially to the frontliners (e.g. medical
workers, sales staff, security guards, etc.) who are risking their lives for the benefit
of all? Explain your answer.
REFERENCES
14
Cabrera, H., Altajeros, A., & Riaz, B. et al (2016). Organization and Management. Quezon
City: Vibal Group, Inc.
Enriquez, E., et al (2016). Organization and Management. Manila, Philippines: JFS
Publishing Services.
lapilipinas. (2016). The Faces and Landmarks of Philippines Money. Retrieved from steemit:
https://steemit.com/history/@lapilipinas/the-faces-andlandmarks-of-philippines-
money
Latte, C. T. (2018, February 2). Coding Problem: Balancing a Scale. Retrieved November 1,
2020, from www.medium.com/@erica13chai/codingproblem-balancing-a-scale-
11da8d88c823
Vectorstock. (n.d.). Business People on Strike - Modern Cartoon Vector Image. Retrieved
November 1, 2020, from www.vectorstock.com/royalty-free-vector/business-people-
on-strikemodern-cartoon-people-vector-22052349
15
DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS
ORIENTAL
ROSELA R. ABIERA
Education Program Supervisor – (LRMS)
ARNOLD R. JUNGCO
Education Program Supervisor – (SCIENCE & MATH)
MARICEL S. RASID
Librarian II (LRMDS)
ELMAR L. CABRERA
PDO II (LRMDS)
MARGIE A. QUINDO
Writer
ALPHA QA TEAM
GIL . DAEL
BETA QA TEAM
RICKLEOBEN V. BAYKING
LITTIE BETH S. BERNADEZ
GIL . DAEL
16
DISCLAIMER
The information, activities and assessments used in this material are designed to provide accessible learning modality to the teachers and
learners of the Division of Negros Oriental. The contents of this module are carefully researched, chosen, and evaluated to comply with the set
learning competencies. The writers and evaluator were clearly instructed to give credits to information and illustrations used to substantiate
this material. All content is subjefrom the division. ct to copyright and may not be reproduced in any form without expressed written consent
17
SYNOPSIS AND ABOUT THE AUTHOR
ANSWER KEY
This self-learning kit discusses
movement and
rewards system.
AUTHOR
MARGIE A. QUINDO finished her bachelor’s degree
in Business Administration major in Management at
Silliman University, Dumaguete City in October 2003.
She earned 42 units in Bachelor of Science in
Secondary Education – Crash Program at Foundation
University, Dumaguete City in March 2015 and passed
the Licensure Examination for Professional Teachers on
the same year. Currently, she is a SHS-Teacher at
Giligaon High School of Siaton 4 District in the
Division of Negros Oriental from 2017 up to present.