G11 Org Mngt Q2 WK11-ABCDwithAnswerKey PDF

# **ABM Package** ## **Grade 11** **(Organization Management)** ### **EXERCISES** #### **I. Choose the letter of the correct answer. Write your answers in your notebook.** 1. All forms of pay given by employers to their employees for the performance of their jobs. * A. Gift * B. Task...

# **ABM Package** ## **Grade 11** **(Organization Management)** ### **EXERCISES** #### **I. Choose the letter of the correct answer. Write your answers in your notebook.** 1. All forms of pay given by employers to their employees for the performance of their jobs. * A. Gift * B. Task * C. Compensation * D. Support * D. None of the above 2. Any recognition and appreciation from employer to fulfill employee's satisfaction. * A. Direct * B. Indirect * C. Non-Financial * D. None of the above 3. The money directly paid to employees in exchange for their labor. * A. Direct * B. Indirect * C. Non-Financial * D. None of the above 4. It has a financial value that can be calculated, but is not a direct payment in the form of cash. * A. Direct * B. Indirect * C. Non-Financial * D. None of the above 5. 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. * A. Equity Theory * B. Expectancy Theory * C. Theory of needs * D. Two factor theory #### **II. Write TRUE if the statement is correct and FALSE if it is incorrect. Write your answers in your notebook.** 1. Compensation can be a motivational factor to employees. 2. Direct compensation includes recognition and appreciation from employer to meet employee's satisfaction. 3. The daily minimum wage rate in the country diverges in all regions. 4. Pay equity is based on the idea that an employee's must be commensurate to his educational background. 5. Employee contributes more to the company success the more reward he will get from his employer. ### **REFERENCES** * Principles of Organization and Management, Serrano, Angelita O. * Organization and Management for Senior High School, Cabrera, HM. F, Altajeros, A.DC, Benjamin, R. (2016) * https://theinvestorsbook.com/sources-of-recruitment.html * https://theinterviewguys.com/top-10-job-interview-questions/ * https://www.patriotsoftware.com/blog/payroll/what-is-compensation/ * https://www.patriotsoftware.com/blog/payroll/what-is-compensation/ ### **Generalization** 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 is all forms of pay given by employers to employees for the performance of their job. Compensation is the human resource management function that deals with every type of reward individuals receive in exchange for performing an organizational task. Compensation is what employees receive in exchange for their work. #### **Importance of Compensation** * Recruit/retain good employees * Increase or maintain morale/satisfaction * Reward and encourage high performance * Reduce turn-over and encourage company loyalty #### **Basis for Compensation** Employee 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 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. #### **Types of Compensation** * **Direct compensation** - is the money directly paid to employees in exchange for their labor. Includes workers´ salaries, wages, bonuses and commissions. * **Salary** - is annual payment to employees which is not directly based on work produced or hours worked. * **Wages** - are payments to employees for services they rendered and computed on hourly basis or based on the amount of work produced. * **Bonuses** - is a financial compensation that is above and beyond the normal payment expectations of its recipient. Bonuses may be awarded by a company as an incentive or to reward good performance. * **Commissions** - is a compensation system which employees earn a percentage of each sale they make. * **Indirect compensation** - is still monetary in nature - meaning it has a financial value that can be calculated but is not a direct payment in the form of cash. * **Non-Financial Compensation** - any recognition and appreciation from employer to fulfill employee's satisfaction. Includes recognition programs, being assigned to do rewarding jobs, or enjoying management support, ideal work environment, and convenient work hours. * **Recognition** - is about giving positive feedback based on results or performance. * **Appreciation** - is about acknowledging a person's inherent value. #### **Compensation: A motivational Factor for Employees** Compenstaion pay represents a reward that an employee receives for good performance that contributes to the company following must be considered: * **Pay Equity** - related to fairness. The Equity Theory is a motivation theory focusing on employee's response to the pay that they receive and the feeling that they receive less or more than they deserve. * **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. Pay Equity is among the important consideration 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. {EFFORT} -> {PAY} ### **EXERCISES** Answer the following questions in your notebook. 1. What is a compensation policy? 2. Why are compensation programs important in a company? # ABM Package ## Grade 11 **(Organization Management)** ### **EXERCISES** #### **I. Write TRUE if the statement is correct and FALSE if it is incorrect. Write your answers in your notebook.** 1. Compensation management implies to salary, wages, bonuses, and incentives given to employees in exchange of their services. 2. Compensation management is valuable only for those employees with higher position. 3. Budget allocation strategy should incorporate the organization's approach to allocate compensation into salary and benefits. 4. A well-defined compensation strategy will encompass legal requirements to ensure the organization is following Presidential Decree No. 224. 5. Develop salary ranges to make sure employee pay is the same with other organizations. #### **II. Identify the concept being described. Write your answers in your notebook** 1. This strategy ascertain how much of the total compensation budget will be devoted on salary and what percentage will be spent on benefits and other incentives. 2. The goal of this strategy is to decide how competitive are those jobs and what is the external market demanding. 3. This process involves the development of annual goals, annual performance appraisals and a structured process for coaching and mentoring employees. 4. This strategy builds an annual review process, salary audit, raise process timeline, and make sure someone is responsible for all compensation areas. 5. The strategy aims to be competitive with health, retirement, tuition reimbursement and other benefits. ### **REFERENCES** * Principles of Organization and Management, Serrano, Angelita O. * Organization and Management for Senior High School, Cabrera, HM. F, Altajeros, A.DC, Benjamin, R. (2016) * https://theinvestorsbook.com/sources-of-recruitment.html * https://theinterviewguys.com/top-10-job-interview-questions/ * https://www.patriotsoftware.com/blog/payroll/what-is-compensation/ ### **Generalization** An organization's goals or objectives can be achieved when its employees put in their best efforts in the right direction. Hence, they should be nurtured properly and paid well for their work, performance, services, etc. Besides wages or salaries, organizations provide different kinds of incentives, benefits and services to their employees. From the viewpoint of an organization, compensation management is a major function. This is one area which needs all the attention as it can have a direct impact on all others. #### **Nature of Compensation Management** Compensation management refers to the establishment and implementation of sound policies, programs and practices of employee compensation. It is essentially the application of a systematic and scientific approach for compensating the employees for their work in a fair, equitable and logical manner. Compensation management is concerned with the compensation to employees for their work and contribution for attaining organizational goals. Compensation management, also known as wage and salary administration, remuneration management, or reward management, is concerned with designing and implementing total compensation package. Compensation is the human resource management function that deals with every type of reward individuals receive in exchange for performing an organizational task. #### **Importance of Compensation Management** * To attract competent and qualified persons towards organization by offering fair wage and incentive. * To retain present employees by paying competitive remuneration. * To establish fair and equitable remuneration so as to avoid pay disparities. * To improve production, productivity and profitability of the organization. * To minimize unnecessary expenditure and to control cost through a device of internal check and establishment of standard. * To improve and maintain good human relation between employer and employee through a process of payment of bonus, profit sharing and other fringes benefits. * To enhance the name and fame of the company through a proper system of wage payment. * To ensure prompt and regular payment of wage and salary to all the employees. ### **EXERCISES** Answer the following questions in your notebook. 1. What is compensation management and its function? 2. Why is compensation management important in an organization? ### **7 Keys to an Effective Compensation Strategy** 1. **Budget Allocation** - The strategy should include the organization's approach to allocating compensation into salary and benefits. This budget allocation will determine how much of the total compensation budget will be spent on salary and what percentage will be spent on benefits and other incentives. 2. **Develop Salary Ranges** - Develop salary ranges to ensure employee pay is competitive with other organizations. To be competitive, it is important to benchmark similar jobs within the same industry and to create a pay structure. 3. **Salary Audits** - Markets change, therefore it is important to perform routine salary audits to ensure salary ranges reflect current compensation trends in a particular industry. When performing an audit, the goal is to determine how competitive are those jobs and what is the external market demanding. 4. **Benefit Package** - Many organizations use benefit packages, in addition to salary, to attract and retain employees. Their goal is to be competitive with health, retirement, tuition reimbursement and other benefits because they understand that it can be the determining factor for a job candidate who is deciding whether to accept a position with an organization, or an employee who is considering leaving. 5. **Performance Management System** - It is important to have a structured performance management process to ensure employees are meeting corporate objectives and are assessed on a regular basis. This process should include the development of annual goals, annual performance appraisals and a structured process for coaching and mentoring employees 6. **Legal Compliance** - A well-defined compensation strategy will incorporate legal requirements to ensure the organization is in compliance with The Labor Code of the Philippines, otherwise known as Presidential Decree No. 442. 7. **Structured Administration** As with any other business process, the structure is important. Develop an annual review process, salary audit, raise process timeline, and make sure someone is responsible for all compensation areas. ### **EXERCISES** Answer the following questions in your notebook. 1. Why is it compensation management should be effective? 2. What are the keys to have an effective compensation strategy? # ABM Package ## Grade 11 **(Organization Management)** ### **EXERCISE** Identify the concept being described. Write your answers in your notebook. Write your answers in your notebook. 1. Performance evaluation method intended to find out if the employee acquires important work characteristics such as conscientiousness, creativity, emotional stability, and others. 2. Performance appraisal method where each characteristic to be assessed is represented by a scale on which the evaluator or rater indicates the degree to which an employee possesses that characteristic. 3. A process commenced by the organization, usually done once a year, designed to measure employees' work performance. 4. A behavioral approach to performance appraisal that comprises five to ten vertical scales, one for each important strategy for doing the job and numbered according to its significance. 5. A behavioral approach to performance appraisal that evaluates the frequency of observed behavior. 6. To confirm a link between the undertaking and activities of an employee to the goal of the organization. 7. Executes the appraisal of the employee. 8. Performance evaluation that requires the rater to select from two statements purposely designed to distinguish between positive or negative performance. 9. These are accomplished through appraisal/evaluation programs that require information that may be used as basis for compensation, decisions, promotions, transfer, and terminators. 10. This is good resource of feedback since the coworker devotes more time with the employee evaluated and knows well how he works. ### **REFERENCES** * Principles of Organization and Management, Serrano, Angelita O. * Organization and Management for Senior High School, Cabrera, HM. F, Altajeros, A.DC, Benjamin, R. (2016) * https://theinvestorsbook.com/sources-of-recruitment.html * https://theinterviewguys.com/top-10-job-interview-questions/ * https://www.patriotsoftware.com/blog/payroll/what-is-compensation/ * https://inside.6q.io/employee-motivation-important/ * https://www.toppr.com/guides/business-management-and-entrepreneurship/human-resource-management/selection-process/ ### **Generalization** Performance appraisal/evaluation are necessary to identify areas for improvement in the work of employees. It allows feedback on work performance and it provides basis for employee rewards and promotions. Managers must formulate clear and fair policies for performance appraisals, which take into account the "what", "who", "how", and "when" for conducting performance assessments. #### **PERFORMANCE EVALUATION** A process undertaken by the organization, usually done once a year, designed to measure employees' work performance. #### **Purpose of Performance Evaluation** There are several purposes of a performance appraisal. A policy on performance appraisal may focus on all or any of the following: * **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. * **Strategic Purposes** - To establish a link between the task and activities of an employee to the goal of the organization. The strategic goals of a company must be supported by the task and activities of an employee. * **Administrative Purposes** - These are fulfilled through appraisal/evaluation programs that provide information that may be used as basis for compensation, decisions, promotions, transfer, and terminators. #### **Characteristics of a Good Performance Appraisal** A good performance appraisal is a culmination of thorough planning and preparation. Here are some characteristics of good performance appraisal. * **Clarity of Purpose** - a performance appraisal must be clear on its objectives. This should be well communicated to the employees to avoid misunderstanding and false expectations on its process and outcome. * **Well-discussed expectations for the job** - a performance appraisal should have a prior analysis of the job, including duties and responsibilities. There should be a clear discussion between manager and the employee on the expected performance standards of the job. * **Alignment of performance appraisal goals with organizational goal is understood** Performance appraisal are conducted to help achieve an organization's objectives. But the alignment of the performance appraisal goal with the organization's goal may sometimes be either assumed, taken for granted, or just simply unclear to managers who plan and design performance appraisal. ### **EXERCISES** Answer the following questions in your notebook. 1. What is performance evaluation? 2. Do you think that performance of employee should be evaluated? Why?? ### **Performance Appraisal Methods** Methods of evaluating workers who have undergone development in order to adapt new legal employment requirements and technical changes. Some appraisal method used today are the following: * **Traits Methods** - performance evaluation method designed to find out if the employee possesses important work characteristics such as conscientiousness, creativity, emotional stability and others. * **Graphic rating scales** - performance appraisal method where each characteristics to be evaluated is represented by a scale on which the evaluator or rater indicates the degree to which an employee possesses that characteristic. * **Forced-choice method** - performance evaluation that requires the rater to choose from two statements purposely designed to distinguish between positive or negative performance * **Behaviorally anchored rating scale (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 measures the frequency of observed behavior. #### **POLICY DECISIONS IN PERFORMANCE APPRAISAL** Top management lay down in performance appraisal, which considers the following: ##### **Who Evaluates** There are various sources of information for performance appraisals, or the persons who should conduct it. * **Supervisors**. The immediate supervisor performs the appraisal of the employee. However, performance appraisal is inherently subjective and prone to human errors, such as the "halo effect" and bias. * **Coworkers or Peers**. This is good source of feedback since the coworker spends more time with the employee evaluated and knows well how he performs. But friendship bias may also occur. * **Self**. The employee himself is an important source for performance appraisal. Self -rating works well since no one knows better how the job was performed but the employee himself. * **Subordinates**. The employee's subordinates can rate the employees. However, bias may occur especially when there too many subordinates involved who may be subjective in evaluation. * **Clients**. Customers and other external parties may provide data. Again, negative bias may occur. Customer ratings found at the company's Web site may also be used, but they require verification and analysis. ### **EXERCISES** Answer the question in your notebook. 1. How performance evaluation should be done to make it successful? # **ABM Package** ## **Grade 11** **(Organization Management)** ### **EXERCISES** #### **I. Write TRUE if the statement is correct and FALSE if it is incorrect. Write your answers in your notebook.** 1. Social support and good employee relations constantly go together. 2. Good employee relationship management transforms into lack of employee well-being and performance. 3. Employee relations comprises only the emotional dimensions of the employee-employer relationship. 4. Finding time to socialized with co-workers can generate good employee relations. 5. Being a team player is one of the attributes of employees that promotes good employee relations. #### **II. Answer the following questions in your notebook.** 1. Define employee relations and how important in achieving company's goal. 2. There is no perfect employee relations in an organization there are a lot of barriers in order to have a better employee relations. If you are an employer, what will you do in order to overcome those barriers? ### **REFERENCES** * Principles of Organization and Management, Serrano, Angelita O. * Organization and Management for Senior High School, Cabrera, HM. F, Altajeros, A.DC, Benjamin, R. (2016) * https://theinvestorsbook.com/sources-of-recruitment.html * https://theinterviewguys.com/top-10-job-interview-questions/ * https://www.patriotsoftware.com/blog/payroll/what-is-compensation/ * https://inside.6q.io/employee-motivation-important/ * https://www.toppr.com/guides/business-management-and-entrepreneurship/human-resource-management/selection-process/ ### **Generalization** The employees must share a good rapport with each other and strive hard to realize the goal of the organization. They should complement each other and work together as a single unit. For the employees, the organization must come first and all their personal interest should take a back seat. #### **Employee Relations' Defined** Employee relations' are the connection created among employees as they do their assigned task for the organization to which they belong. Employee relations' covers the contractual, practical, as well as the physical and emotional dimensions of the employee-employer relationship. #### **Importance of Good Employee Relations** Employee Relations is a crucial factor when it comes to overall organizational performance. Because good employee relationship management translates into increased employee well-being (and performance). The following are the importance of maintaining good employee relations in the organization: * There are several issues on which an individual cannot take decisions alone. * Work becomes easy if it is shared among all. * The organization becomes a happy place to work if the employees work together as a family. * An individual feels motivated in the company of others whom he can trust and fall back whenever needed. * Healthy employee relations also discourage conflicts and fights among individuals. * A healthy employee relations also discourage conflicts and fights among individuals. * A healthy employee relation reduces the problem of absenteeism at the work place. * It is wise to share a warm relation with fellow workers, because no one will ever know when he needs them. #### **Effective Employer Relations and Social Support** Social support is the sum total perceived assistance or befits 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", where one would be useless without the other. Therefore, without social support, effective employee relations is not possible; and without effective social employee relationships, social support, likewise, is not possible. ### **EXERCISES** Answer the following questions in your notebook. 1. Do you agree that social support and effective employee relations always go together? Explain your answer. 2. How important is effective employee relations in achieving the goals of the company? ### **Ways to Improve Employee Relations** A healthy relation among employees promotes a positive ambiance at the work place and employees feel happy and satisfied at work. They look forward to going to office daily and also work hard to realize their team's as well as organization's goals. It is important that the management promotes healthy employee relations at workplace to extract the best out of each individual. Competition is essential but it should not promote negativity or any king od enmity among employees. Here are some strategies for a healthy employee relationship in the organization: * Involve organizational members * Encourage individuals to share their work with each other * Give them targets and ask all members to contribute equally and attain the target within the desired time frame * One should try his level best that all the employees must have their lunch together at the same time * Promote effective communication among members * Written modes of communications must be promoted among employees for better transparency * Morning meeting is another way to improve the relation among the employees * Organize birthday parties, Christmas parties, New Year parties, etc. at the workplace. #### **Barriers to Good Employee Relation** * Anti-Social Responsibility; refusal to share more about oneself to 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 * Cultural/Subcultural differences * Lack of cooperation * Communication problems; refusal to listen to what others seek to communicate * Lack of concern for other's welfare #### **Ways to Overcome Barriers to Good Employee Relation** * Develop a healthy personality to overcome negative attitudes and behavior * Find time to socialize with coworkers * Overcome tendencies of being too dependent on electronic gadgets * Develop good communication skills and be open t others' opinions * Minimize cultural/subcultural differences ### **EXERCISES** Answer the question in your notebook. 1. Choose any three barriers to good employee relations mentioned in the lesson and explain their adverse effects to the attainment of the organization's objectives.