HRM Finals PDF

WHAT IS CAREER? is a pattern of work related experiences that span the course of a person's life reflects any work, paid or unpaid a way a making a living profession followed as lifetime What is Career Development series of activities or the on- going/lifelong process of developing o...

WHAT IS CAREER? is a pattern of work related experiences that span the course of a person's life reflects any work, paid or unpaid a way a making a living profession followed as lifetime What is Career Development series of activities or the on- going/lifelong process of developing one's career which includes defining new goals regularly and acquiring skills to achieve them managing one's career in an intra- organizational or inter-organizational scenario directly linked to the goals and objectives set by an individual directly linked to an individual's growth and satisfaction helps an individual grow not only professionally but also personally. While the exact steps can vary from person to person depending on their goals and circumstances, here are five common steps in the career development process: 1. Self-Assessment The first step in career development is to assess yourself. This involves taking stock of your interests, values, strengths, weaknesses, skills, and goals. Consider what you enjoy doing, what motivates you, and what you envision for your future career. Self-assessment helps you gain clarity about your career direction 2. Setting Clear Goals Once you have a better understanding of yourself, you can set clear and specific career goals. These goals should be aligned with your interests and values and should be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound). Setting goals provides direction and purpose in your career development journey. 3. Skill Development and Education To achieve your career goals, you'll often need to acquire or enhance specific skills and knowledge. This may involve pursuing formal education, enrolling in training programs, attending workshops, or gaining hands-on experience through internships or entry-level positions. Continuously improving your skills is essential for career growth. 4. Networking Building a professional network is crucial for career development. Establish and nurture relationships with colleagues, mentors, industry peers, and professionals in your feld. Networking can provide valuable insights, mentorship, job leads, and opportunities for advancement. 5. Taking Action and Adaptation Career development is not just about planning; it also requires taking action. This step involves actively searching for job opportunities, applying for positions, and pursuing promotions or career changes. Additionally, be prepared to adapt and adjust your career path as circumstances change, industry trends evolve, and new opportunities arise. Flexibility and resilience are key in this step. TRADITIONAL CAREER STAGES Exploration A career stage that usually ends in the mid- twenties as one makes the transition from school/college to work Career choice are influenced by the following: a. Your upbringing b. Communication from parents c. Feedback from Teachers d. Education Establishment A career stage in which a person finds his/her first job Typical Range 25-35 years old Person's main objective under this age: a. Learning the new job b. Gaining acceptance from Peers c. Development and improving your Skills Mid Career performance may increase or decrease or may remain constant Typical range is 35-45 years old Characterized by career stability and progression or transition into a new profession or field. Concerns of Work-life balance. Late Career identifying and developing successors Typical age range 45-55 years old Offers less opportunities for learning and obtaining new skills Offer teaching opportunities in order to identify and train successors Decline Typical Range 55-65 years old Retirement Stage 6 Steps in Choosing your Career: 1. Asses Yourself 2. Make a List of Occupation to Explore 3. Explore the occupations on you list 4. Create a Short List 5. Conduct Informal Interview 6. Make your Career Choice Career development encompasses various aspects, including education, training, networking, and job transitions. Here are some key components and aspects of career development: 1. Self-Assessment This is understanding one's strengths, weaknesses, interests, values, and long- term goals is crucial. This self-awareness helps individuals make informed career decisions. 2. Goal Setting This is setting Specific, Measurable, Achievable, Relevant, and Time-Bound (SMART) career goals is essential for creating a clear path forward 3. Education and Training This is acquiring the necessary knowledge and skills throough formal education, certifications, workshops, or on the job training to meet career goals and stay competitive in the job market 4. Skill Development It is continuously developing and improving skills that are relevant to one's career, such as technical skills communication skills, leadership skills and problem solving abilities 5. Networking It is building and maintaining professional relationships hips within and outside of one current workplace or industry to gain insights, mentorship and potential job opportunities 6. Work life Balance It is balancing career aspirations with personal life and well-being to ensure a fulfilling and sustainable career.  DR. FILEMON C. AGUILAR MEMORIAL COLLEGE College of Business Administration Golden Gate Subdivision, Talon 3, Las Piñas City Course Code and Title : BACR 1 Human Resource Management Lesson Number : Group 7 Topic: Compensating Employees Introduction: One of the most important functions of the Human Resources is the payment of the proper salaries and wages to all company employees. The pay that the employees receive from their employer is very reason for their being in the job. One way to retain competent employees and keep their morale high is to plan salary levels so as to establish uniformity of pay in relation to the job in the company and those in other business establishments in the community. Everything has a price. For instance, business persons engage in business hoping that they will make some profits. Bankers, politicians and entrepreneurs produce goods or services thinking that they will be compensated for their efforts. Learning Objectives: At the end of this lesson, you should be able to: 1. Explain the significance of Theories of wages to workers 2. Organize the procedure in conducting wage and salary surveys. 3. Provide the methods of wage payment. Lesson Presentation What is Compensation ? Compensation is an important aspect of HRM. As such, it becomes necessary to define it as well as other terms related to it. COMPENSATION is what employees receive in exchange for their work. It refers to the function of providing adequate and equitable remuneration of personnel for their contribution to organization objectives. Employee compensation refers to all work‐related payments, including wages, commissions, insurance, and time off. Wages and salaries are the most obvious forms of compensation and are based on job evaluations that determine the relative values of jobs to the organization. Under the hourly wage system, employees are paid a fixed amount for each hour they work. The system is generally used for lower skilled occupations. Salaried employees receive a fixed sum per week or month, no matter how many hours they work. Most professional positions are salaried Importance: Attract top talent Retain valuable employees Motivate and engage staff Ensure fairness and equity THE BASES for COMPENSATION 1. Time Employees may be paid according to the time they spent on the job. This may be either be hourly or salaried. a.. By the Time Worked wages are computed in terms of unit time it is common to pay workers by the day Formula H x R = W ( the total amount paid to a particular employee is calculated by multiplying the total number of hours the employee worked for a certain period with the employees hourly rate. ) In which: H - hours actually worked R - rate per hour in pesos W - Total wages earned 2. Productivity This is a basis for compensation where the employee is paid according to his or her output. There are two types of productivity based compensation: a. Commission basis– are usually set as percentage of output like sales. b. Piece rate basis - is paid according to the number of units he or she produced earnings depends on how much work the employee completed. piecework salaries are determined by the number of pieces produced or completed. Formula N x U = W In which: N - number of units produced U - rate per unit in pesos W - wages earned per day or per week 3. Combination of Time and Productivity There are times when employees are paid base salaries in addition to a percentage of the amount of output produced. For instance, a factory worker is paid a basic salary of five thousand pesos ₱5,000 plus one hundred pesos ₱ 100 for every unit he or she produced.  *****Types of Rewards used to Compensate employees for their efforts: Lahat sa baba isali nyo Base Salary or Wages - refers to standard salary that an employee receives for a doing a job. Every regular employee in an organization is assured of this form of compensation Incentives - are rewards given to employees for performing beyond the standard requirements Benefits - are rewards given to an employees or group of employees for maintaining membership in the organization. Commissions - When an employee is compensated based on commission, they are given an agreed-upon rate based on some sort of action of the employee. Most times, a commission is based on sales. Overtime pay - Overtime pay is compensation to employees who work more than 40 hours a week. This type of pay can be controversial because it is very hard to monitor beyond workers who are paid by the hour. Hourly employees have to clock in and out, and if their hours go beyond 40, they are paid at a higher rate of pay for the time. Allowances - Allowances are a compensation method that gives employees money towards work-related expenses like transportation, housing, or food. Bonuses - A bonus is a set amount or percentage based on an achieved target or objective. Bonuses are different than commissions because they are usually paid above and beyond an employee's regular salary. Bonuses might be paid on an individual basis for meeting agreed on goals or targets. Some companies give bonuses as a percentage based on overall company performance.. Bonuses based on performance evaluations are common in positions where the employee cannot meet a specific target. Profit Sharing - Profit-sharing is a kind of bonus given to employees based on the performance and profits of the company in a year or a quarter. Profit-sharing is usually a percentage of the profit for the period that is divided across the eligible employees. The bonus from profit sharing will vary once it gets to the individual employee level and is agreed on as part of a compensation package. Stock Options - One way that a company can compensate its employees is through company stock options. If a company is publicly traded, they can give employees certain shares of the company stack as a part of their compensation package.. Stock options can be used in several ways to compensate, such as part of monthly earnings, commission-based, or as a regular or sporadic bonus. Components of a Compensation Program The various objectives of compensation can be achieved if a systematic compensation program is installed. This program consists of the following components: a. Job Analysis – which specify skill , responsibilities, hazards and work complexity pertaining to each job. b. Job Evaluation - which determines the worth of each job to the organization c. Salary Survey - which is used to determine the competitive position of the organization within the industry in terms of compensation d. Performance Evaluation - which is used to determine the performance level of every employee. The Basic Categories of Employee Compensation Employee compensation and benefits are divided into four basic categories: 1. Guaranteed pay - a fixed monetary ( cash ) reward paid by an employer to an employee. The most common form of this is base salary. 2. Variable pay a no– n-fixed monetary ( cash) reward paid by an employer to an employee that is contingent on discretion, performance or results achieved. The most common forms of variable pay are bonuses and incentives. 3. Benefits - programs an employer uses to supplement employees compensation such as medical insurance, company car and more. 4. Equity based compensation – is an employer compensation plan using employer’s shares as employee compensation. It provide actual ownership in the company which ties an employees compensation to the long term success of the company. The most common examples are stock options. Generalization After the lesson, the student will realized that wage and salary is the most important factor in motivating employees. It is what employees receive in exchange for their work. Attractive wage and salary makes the people contented, happy, loyal, drives them to produce quality goods and services, facilities to promote healthy relations. In the booming business opportunity and competitive environment, every organization is striving hard to recruit talent at all levels of employment but they are forced to compete with the market rates also. Wage and salary surveys are, therefore, scrutinized for the above purposes to design their compensation packages to attract employees at all levels. Reference: https://www.slideshare.net/elisantos11/chapter-7-wage-and-salary-admin https://www.scribd.com/document/104953264/Role-of-Human-Resources-in-the-Payment-of- Salaries#:~:text=One%20of%20the%20most%20important,for%20their%20being%20the%20job. Ferrer, Dr. Marissa P., Arcega, Dr. Raymundo P., Pereda, Dr. Pedrito R., (2015), Human Resource Management Revised edtion., Unlimited Books Library Services & Publishing Inc., 4  DR. FILEMON C. AGUILAR MEMORIAL COLLEGE College of Business Administration Golden Gate Subdivision, Talon 3, Las Piñas City Course Code and Title : BACR 1 Human Resource Management Lesson Number : Group 8 Topic : Performance Appraisal Introduction: After an employee has been selected for a job, has been trained to it and has worked on it for a period of time, his performance should be evaluated. Performance evaluation or appraisal is the process of deciding how employees do their jobs. Performance here refers to the degree of accomplishment of the tasks that make up an individual’s job. It indicates how well an individual is fulfilling the job requirements. Objective: At the end of this lesson, you should be able to : 1. Evaluate the purpose of performance appraisal of an employee. 2. Measure the different methods of appraisal. 3. Familiarize the errors to correct the fears in management appraisal system. Lesson Presentation : What is Performance Appraisal ? According to Newstrom, “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance.”  Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees. It is a process of evaluating an employee’s performance of a job in terms of its requirements. Objectives of Performance Appraisal Performance appraisal practices show that organisations undertake performance appraisal to meet certain objectives which are in the form of salary increase, promotion, identifying training and development needs, providing feedback to employees and putting pressure on employees for better performance. 1. Salary Increase - Normally salary increase of an employee depends on how he is performing his job. There is continuous evaluation of his performance either formally or informally. In a small organisation, since there is a direct contact between the employee and the one who makes decisions about salary increase, performance appraisal can be an informal process. However, in a large organisation where such contact. hardly exists, formal performance appraisal has to be undertaken. This may disclose how well an employee is performing and how much he should be compensated by way of salary increase.. 2. Promotion - Performance appraisal plays a significant role where promotion is based on merit. Most of the organisations often use a combination of merit and seniority for promotion. Performance appraisal discloses how an employee is working in his present job and what are his strong and weak points. In the light of these, it can be decided whether he can be promoted to the next higher position and what additional training will be necessary for him. Similary, performance appraisal can be used for transfer, demotion and discharge of an employee. 3. Training and Development: Performance appraisal tries to identify the strengths and weaknesses of an employee on his present job. This information can be used for devising training and development programmes appropriate for overcoming weaknesses of the employees. In fact, many organisations use performance appraisal as means for identifying training needs of employees. 4. Feedback: Performance appraisal provides feedback to employees about their performance. It tells them where they stand. A person works better when he knows how he is working; how his efforts are contributing to the achievement of organisational objectives. This works in two ways. First, the person gets feedback, about his performance and he may try to overcome his deficiencies which will lead to better performance. Second, when the person gets feedback about his performance, he can relate his work to the organisational objectives. This provides him satisfaction that his work is meaningful. Thus, given the proper organisational climate, he will try his best to contribute maximum to the organisation. 4. Feedback: Performance appraisal provides feedback to employees about their performance. It tells them where they stand. A person works better when he knows how he is working; how his efforts are contributing to the achievement of organisational objectives. This works in two ways. First, the person gets feedback, about his performance and he may try to overcome his deficiencies which will lead to better performance. Second, when the person gets feedback about his performance, he can relate his work to the organisational objectives. This provides him satisfaction that his work is meaningful. Thus, given the proper organisational climate, he will try his best to contribute maximum to the organisation.  Purposes of Performance Appraisal Strategic Purpose - how effective performance helps the organization achieve its business objectives Administrative Purpose – how organization use the system to provide information for day-to day decisions about salary, benefits and recognition programs. Developmental Purpose - how the system serves as a basis for developing employees’ knowledge and skills. Types of PerformanceAppraisal Most performance appraisals are top-down, meaning that supervisors evaluate their staff with no input from the subject. But there are other types Self-assessment: Individuals rate their job performance and behavior. Peer assessment: An individual’s work group or co-workers rate their performance 360-degree feedback assessment: Includes input from an individual, supervisor, and peers. Negotiated appraisal: This newer trend utilizes a mediator and attempts to moderate the adversarial nature of performance evaluations by allowing the subject to present first. It also focuses on what the individual is doing right before any criticism is given. This structure tends to be useful during conflicts between subordinates and supervisors Different Methods of Performance Appraisal Numerous methods have been devised to measure the quantity and quality of performance appraisals. Each of the methods is effective for some purposes for some organizations only. 1. Comparative Approach- The comparative approach of performance measurement consists of techniques that require the rater to commpare the individual’s performance with that of others. a. Ranking Method - the employees are ranked from the highest to the lowest or from the best to the worst. b. Forced Distribution Technique - determines the relative positions of the employees involved in similar work by comparing them against one another, and based on their performance, the employees receive different grades.  c. Paired Comparison Method – in this method, each employee is compared with other employees taking only one at a time. The evaluator compares two employees and put a mark against an employee whom he considers a better employee. d. The Checklist Method this method may include list of questions ( like behavior and job performance of employee ) and the rater has to answer them in just “ YES “ or “NO” form. - e. Graphic Scale Method : Graphic scale, also known as linear rating scale, is the most commonly used method of performance appraisal. In this method, a printed appraisal form is used for each appraisee. The form contains various employee characteristics and his job performance.vioral Approach 2. The behavioral approach of performance management attempts to define the behavior an employee exhibits to be effective in the job. a. The Critical Incident - the performance of an employee is done on the basis of the incidents occurred really to the concern. It is the narrative report of incidents or occurences that invole the employee. These incidents are used to give feedback on employees about what they do very well and those that they do poorly. b. The Behavioral Anchored Rating Scale - under this method, behavior anchors are used to assess the performance of an employee. Each anchor is assigned a level of performance and the various anchors constitute a rating scale. The manager and the employee agree on particular incidents and use these anchors in the rating of the employees’ performance. Errors to correct the fears in management appraisal system To correct some of the fears in the management appraisal system, the following errors should be studied very carefully: 1. Problems of Varying Standards - the manager should avoid using different standards among employees performing similar jobs. This could trigger anger from employees. 2. Central Tendency - occurs when employees are incorrectly rated near the average or middle scale. The supervisors who play safe in giving performance rating usually commit this error. 3. Recent Effect – the error in which the rater gives greater weight to recent events when appraising an individual performance. 4. Rater’s Bias - occurs when the rater’s value distorts the rating. If a manager has a strong dislike or a certain ethnic group, this bias is likely the result. 5. Halo Effect - occurs when a manager rates an employee high or low on all items because of one characteristic. For example, if a worker has few absences, the supervisor might give her a high rating in all other areas of work including quantity and quality of output because of her attendance.  Generalization Regardless of what appraisal system is used, an understanding of what performance management is supposed to do. It is not which evaluation or appraisal from was used, but whether managers and employees understand the purposes. When performance appraisal is used to develop employees as resources for the company’s instruments for employees’ development, then it will work to the advantage of both management and employees. It is therefore important for organizations or companies to develop a well-studied appraisal system that is accepted by the workers an managers and approved by top management. Reinforcement Answer the following question.Write your answer in yellow pad paper. 1. Enumerate 3 importance of Performance Appraisal. 2. Give 2 purposes of Performance Appraisal. 3. Discuss 2 Advantages and 2 Disadvantage of performance appraisal.  DR. FILEMON C. AGUILAR MEMORIAL COLLEGE College of Business Administration Golden Gate Subdivision, Talon 3, Las Piñas City Course Code and Title : BACR 1 Human Resource Management Lesson Number : Group 9 Topic : Employee Benefits Introduction Employers are continually pressured to use all means available to attract quality job applicants and to keep them motivated even if the company already hires them. One of the means used is the provision of benefits. Although some of the benefits are mandated by law, still, many employers try to find ways to keep their benefits package attractive. The granting of benefits is now covered by specific company guidelines and procedures as management realizes that employee services and benefits should be based on sound management principles of coexistence with the employees’ organization. Learning Objectives After this lesson, you should be able to : 1. Describe the concept of benefits 2. Provide the classification of benefits 3. Valuing the difference between the various forms of compensation Lecture Presentation What are Benefits ? Benefits are anything that is not covered by regular salaries and wages. It is anything that contributes to the improvement of the conditions of work, and that motivates the employees to do good work. Benefits are additional compensations that the employees receive regularly at an interval stipulated in the company policies and guidelines.  Benefits are granted to employees to assist them and facilities are provided so that they will enjoy their stay in the company. The main purpose is to develop greater commitment and loyalty and to keep good employees in the company. The objectives of the company in granting benefits are : To provide additional protection and comfort to their employees To maintain and develop employees as an effective work force duly committed to their corporate mission and vision. To develop satisfied employees and more concerned workers. Why are Employee BENEFITS Important ? 1. Finding and Retaining Talent Employers can attract and retain employees with the best personnel in their sector by providing competitive perks. This is especially crucial in today’s work market, where job searchers have more options than ever before. 2. Boosting Employee Morale Employees are more likely to be content and engaged at work when they feel valued and cared for. Providing perks like paid time off, retirement programs, and health insurance can encourage loyalty and morale among staff members. 3. Improving Well-being and Health To assist employees’ health and well-being, many employee benefits are created. A few examples of perks that might assist employees in maintaining their health and productivity include health insurance, wellness initiatives, and gym memberships. 4. Increasing Productivity Employees are more likely to be effective and productive at work when they are motivated, healthy, and happy. Employers’ bottom lines may benefit from this. The Difference Between the Various Forms of Compensation Types of Compensation Purpose Intended Recipient Basic Salary Payment for doing a job Every employee in the organization Incentives Payment for doing a job well A few good performers Benefits Payment for staying on the job Those who are mandated by law and those who elected to receive optional benefit Classification of Benefits Benefits could be classified under the following : 1. Statutory Benefits - also known as mandatory benefits, are entitlements that employers are obligated by law to provide to their employees. The mandated benefits are as follows: A. Social Security System ( SSS) – covers private-sector employees, self- employed workers, as well as household workers. and their families with protection against disability, sickness, old age and death. In addition to social security benefits, the SSS extend financial assistance to members in the form of salary, housing, educational and other kinds of loans. The contribution depends on the salary bracket of the employee. The cost of the social security benefits provided by the SSS is borne by the employee and the employer. Monthly premiums are deducted from the payroll and these are remitted to the SSS with a counterpart amount from the employer. B. Thirteenth Month Pay - the corporate practice of giving 13th month pay to employees became mandatory after some time. Twelve months of continuous service entitles the employee to receive such amount usually at the end of the year. Those with less than one year of service are given pay in proportion to the number of months they had served. C. Health Insurance - PhilHealth is the name of the health insurance plan in place for private employees in the Philippines. Monthly Basic Salary Premium Rate Monthly Premium ₱10,000 and below 4% ₱400 ₱10,001 to ₱79,999.99 4% ₱400 to ₱3,200 ₱80,000 and above 4% ₱3,200 Employers and employees equally share the monthly contributions to PhilHealth. The premium rate collection is currently at 4%, and the income ceiling is set at ₱80,000. For 2023, PhilHealth was supposed to implement a higher premium rate of 4.5% with a higher income ceiling rate of ₱90,000. However, President Ferdinand Marcos Jr. ordered to suspend the proposed contribution hike this year.  D. Home Development Mutual Fund ( HDMF) - The HDMF, also known as Pag- IBIG fund, provides housing loans. It also offers financial assistance to Filipinos to enable them to afford decent housing. Monthly Basic Salary Employer Share Employee Share ₱1,500 and below 2% 1% Over ₱1,500 ₱100 ₱100 The maximum monthly compensation used to compute an employee's Pag-IBIG contribution is ₱5,000. For employees earning higher than ₱5,000, the total contribution is ₱200—₱100 is deducted from their salary, and the employer remits the other ₱100. The highest contribution to HDMF fund should not exceed PHP 200 in total (PHP 100 for employees and PHP 100 for employers). E. Service incentive leave - Employers in the Philippines are obligated to grant five days of paid leave to every employee who has worked for at least one year. This can be used either as sick leave or vacation leave. F. Maternity and paternity leave - Both married and unmarried female workers are entitled to 105 days of paid maternity leave for their first four pregnancies, including miscarriages. This is dependent on them contributing to Social Security for at least three months during the prior 12-month period. If a C-section is needed or there is an ectopic pregnancy requiring surgery, they are eligible for 78 days of paid leave. Married male workers can have 7 days of paternity leave for the first four pregnancies of their wives. Male workers can apply for paternal leave only when they are living with their spouse at the time of delivery or miscarriage. They need to apply for leave within a reasonable period. 2. Company Benefits - these are benefits granted by the company outside of those mandated by law. A. Sick Leave: Twelve (12) days for the first two years of service and additional 1 day every year starting on the 3rd year. Maximum total sick leave is 15 days. All unused leave are convertible to cash at the end of the year. B. Bereavement: Three (3) days applicable to immediate family member which includes the employee’s children, parents, grandparents, brother, sister, spouse, and parents-in-law.  C. Mid-year bonus -In addition to 13-month pay, many companies offer an additional mid-year bonus to their employees. It’s relatively common for local employers to offer this extra payment as an incentive to attract and retain key professionals. D. Overtime pay -The employee who renders service beyond the schedule indicated in the contract will be given additional compensation equivalent to his regular wage including at least 25% premium. E. Holiday/ Christmas Bonus - this is given in December, on top of the 13th month pay. This is considered as the company’s Christmas gift to their employees. F. Paid Holiday and Vacation Leaves – on top of the mandated 5 days per year leave with pay, some companies give their employees additional paid holiday and vacation leaves. The number of days allocated for these leaves usually varies from company to company and depends on the number of years an employee has been of service to the company. G. Birthday Leave - there are already companies that started giving their workers a present on their birthdays such as giving day off during the actual birth date of the worker. 3. Employee Services The purpose of this services is to improve the work life of the employees which make it easy for them to be productive and loyal to the organization. Presented below are the various types of employee services which may be adapted by the employer in the certain human resource management objectives. 1. Education Programs – some companies provide tuition money to interested and qualified employees on or before the enrollment period. 2. Pre- retirement Programs - early retirement is an option that has become popular for many employees. 3. Company sponsored social and recreational events – social functions that are organized for employees and their families like picnics and outings. 4. Counselling Services – organization offer counselling services that cover concerns as varied as alcohol and drug dependence etc. 5. Credit unions – one way of helping employees to improve their financial capability is the formation of credit union.., They also make loans to members at lower interest rates.  6. Free Uniform – is enjoyed by all employees of the company. The individual employee is relieved of spending for uniforms. 7. Food services – vending machines and cafeterias are the most common means of providing food services to employees. 8. Housing and moving expenses – some employers make the necessary moves by helping employees find living quarters, pay for their travel and living expenses.  DR. FILEMON C. AGUILAR MEMORIAL COLLEGE College of Business Administration Golden Gate Subdivision, Talon 3, Las Piñas City Course Code and Title : BACR 1 Human Resource Management Lesson Number : Group 10 Topic : Changes in Employee Status Objective: At the end of this lesson, you should be able to : 1. Enumerate and discuss the changes in employment status. 2. Provide the difference between promotion and demotion 3. Define employee transfer, demotion, employee separation and termination Introduction Why do we have study changes in personnel status? - to know what are the possible changes in the employee status and causes of these changes from the time he is hired until termination or retirement. - to understand the procedure of Promotion, Demotion, Transfer and separation. A change in employment status is effected by a personnel action generated by the HR department upon receipt of a written request from an authorized representative of a department expressing the intended change in employment status. Personnel - the people who work for a particular company or organization Employee movement Promotion = Upward Demotion = Downward Transfer = Same level Separation = Exit  Retirement Termination Lesson Presentation: What is Employment Status ? Employment status is a general term that describes the relationship between an employee and an employer. However, the term can also have a more detailed meaning depending on which country you’re referring to. Types of Employment Status: When hiring, there are many types of work arrangements that an employer and employee can agree to work with, including: A. Casual Employment Status – describes a situation where an employee is hired on a need to need basis. This means an employee is only guaranteed work when the need arises. In this arrangement, there is no expectation or guarantee for more work in the future. When a casual employee is not working for your organization, you have no active relationship. This implies the worker cannot file a personal grievance toward your organization regarding an unjustified dismissal when causal employment is not required. Casual workers are only remunerated for the number of hours they put in. They don’t get paid for holidays. B. Part time Employment Status - part-time employment status refers to an arrangement where an employee works for less than 34 hours a week. Generally, these workers get paid on an hourly basis.Part-time employees can be beneficial to organizations because they are more flexible. C. Full time employment status - Full-time employment refers to an arrangement where an employee is hired on permanent terms of service. Such an employee typically works for 35 or more hours per week and has a written employment contract. PROMOTION - is the reassignment of an employee to a higher job position. This also refers to the upward or vertical movement of employees in an organization from lower level jobs to higher level jobs involving increases in duties and responsibilities, higher pay and privileges. Promotion serves as encouragement and inspiration to other employees to exert their maximum effort. This can also help instill loyalty to the firm. Approaches to Recruit Employees for Promotion 1. Closed promotion system - the responsibility of the supervisor to identify promotable employees for the job to be filled. 2. Open promotion system - also known as job posting - enhance participation and the achievement of equal opportunity goals. Criteria Used in Promoting Employees 1. Seniority rule – ( length of service ) all things being equal, the first to be hired must be given the priority to be promoted. This will develop fairness and morale among the rank-and-file employees who are also loyal and dedicated to their job. 2. Current and past performance – promotion is based on the qualifications of the individual and previous performance and evaluation. When an individual is to be promoted, performance should be used in one of the criteria in promoting employees especially when leadership position is to be filled up 3. Attendance records – the performance for the last two to three years have to be examined. An employee who is dedicated in his job is seldom or rarely absent from work are qualities an employee must process. Remember then when an employee accepts a job, he/she not expect to stay in the same job throughout his/her working life. It is normal for all employees to expect promotion in exchange for a job well done. And giving recognition related to the job can create high levels of motivation. DEMOTION - is the reassignment of an employee to a lower job involving fewer skills and responsibilities. it is also the movement of an employee to a less important job form a higher-level job in the organization. It may not involve a reduction in pay but a reduction in status or privileges. It is one of the most difficult personnel functions of the HRD, as this creates tension and anxiety. Reasons behind Demotion 1. Inability of employees to meet the job requirements for the position he was hired. 2. As a form of disciplinary action that viewed as a routine form of punishment for wrongdoing. 3. The tool used to inform the employee concerned that he or she is beginning to be a liability rather than an asset to the organization. 4. Failure of the employee to meet changes in the job in terms of technical skills that require new skills.  TRANSFER - is the movement of an employee from one job to another of equivalent rank or position at the same pay, status, duties and responsibilities within the organization. Such employee transfer may be from one department to another or from one selection to another. Reasons for Transfer due to job dissatisfaction conflict with supervisor or co-workers employees convenience due to business expansion 2 Kinds of Transfer a. Permanent Transfer – this is made to fill vacancies in another unit or department requiring the skills and capabilities of the employee being transferred. b. Temporary Transfer – is made due to the temporary absence of an employee or for an employee to learn other duties and responsibilities as preparation for promotion SEPARATION - occurs when employee leaves the organization after several years of service. It can be voluntary or involuntary. Types of Separation 1.) Voluntary separation –the initiative for separation is taken by employee. It refers to the separation of employees on their own request. (:reasons : when they decide to seek better position and relocation for family reasons ) a. Resignation – employee decides to quit when he is totally dissatisfied with the job; suffers from ill health or he has secured a better job elsewhere. b. Retirement - occur when employees reach the end of their career. 2.) Involuntary separation – the initiative for separation is taken by employer. The separation of employees for organizational reasons which are beyond the control of employees. ( reasons: health problem- unfit to continue in the profession and behavioral problem - when the employees behavior is unethical or violates the code of conduct of an organization ) a. Discharge/Dismissal – employee is discharged if there is excessive absenteeism, serious misconduct, theft of company property and espionage ( submission of false data at recruitment.  b. Lay off – employees are laid off for a certain period when organization is faced with recession, shortage of raw materials, etc.. Normally employees are laid off based on seniority. Those with shortest service period are laid off first. c. Retrenchment - employees are retrenched permanently when they become surplus due to change in products or closure of a department. They are entitled to compensation. d. Downsizing - means reducing the size of the workforce. It is adopted when organization incurs losses over a period of years or when organization is restructured. Benefits of Employee Separation reduced labor costs replacements of poor performance increased innovation GENERALIZATION Changes in the employee’s status are expected to take place during the period of his employment. The number of job openings and vacant positions in the organization may rise or fall.If the number rises, opportunities for employment and changes in status like promotion occur for the employees who has improved his qualifications or developed graters skills. The company’s growth and expansion will create job openings for higher positions and those already with the company will have chances of being considered for the vacant positions. These job openings are opportunities for the people in the organization if they have shown in their skills and abilities that they acquired higher qualification for the vacant positions. Education, training, and experience are the usual considerations for employee movement into the ladder of higher position.  DR. FILEMON C. AGUILAR MEMORIAL COLLEGE College of Business Administration Golden Gate Subdivision, Talon 3, Las Pinas City GROUP 12 Course Title : HUMAN RESOURCE MANAGEMENT Course Code : BACR 1 Prepared by: Prof. Grace A. Mercado Employee Discipline Introduction Good discipline means that employees are willing to abide by company rules and executive orders and behave in the desired fashion. Discipline is the backbone of healthy industrial relations. The promotion and maintenance of employee discipline is essential for smooth functioning of an organisation. Employee morale and industrial peace are definitely linked with a proper maintenance of discipline. Disciplinary action can also help the employee to become more effective. The actions of one person can affect others in the group.ng Learning Objectives After these lesson, you should be able to : Summarize the nature of discipline Interpret the different types of penalties Discuss the role of managerial counseling.  2 Lesson Presentation Discipline is regarded as the training of the mental, physical, moral and development of individual character inherent in an organizational system. It is the manner in which members of the organization conform to the established rules and regulations which experience has shown to be desirable. Employee discipline refers to the process of correcting and managing employee behavior to ensure that individuals adhere to established rules, policies, and standards within the workplace. It involves taking corrective action when employees violate company policies or exhibit behavior that is inconsistent with the expectations set by the organization. Discipline is a procedure that corrects or punishes a subordinate because a rule of procedure has been violated.· —Dessler,2001 Discipline should be viewed as a condition within an organization whereby Employees know what is expected of them in terms of the organization’s rules, Standards and policies and what the consequences are of infractions. The Primary goal of Employee discipline: 1. Is to maintain a productive and respectful work environment 2. Ensure compliance with company rules 3. Help employees improve their performance or behavior 9 STEPS for effective discipline in the workplace: 1. Know what the law says about employee discipline - there are laws that broadly cover employee discipline and termination issues. It’s a good idea to have your lawyer review your employee discipline in the workplace policies in the employee handbook just to be on the safe side. 2. Establish clear rules for employees - Lay it all out, in writing, and go over it with them. Have them sign the employee handbook that these rules are located in so that you have documentation that they heard and understand what is expected of them. 3. Establish clear rule for your managers - All managers must be consistent in putting your disciplinary policies into action 4. Decide what disciplint method youwill use - All discipline methods are based on the idea that there is a goal or benchmark that needs to be met, and that not meeting it puts something into motion  5. Document employee discipline in the workplace - If employee discipline leads to firing or legal action, having no documentation to refer to as a reason for disciplinary action will leave you open to possible legal consequences. 6. Be proactive by using employee reviews - Regular employee reviews, even for small businesses, are a proactive approach to employee discipline. 7. Get the right mindset - 8. Stop focusing on productivity as your ultimate measure - If managers are so focused on productivity, it’s too easy for them to let bad behavior slide as long as productivity goals are being met. 9. Follow your own guidelines - Different Types of Penalties The crafting of any policy, rules and regulations must conform to a set of standard norms of conduct for all employees. The employee must know exactly the rules to follow and under what condition is his freedom of action within the set guidelines. The main types of penalties are: 1. Reprimand – it is a verbal warning given by the supervisor to correct immediately infraction of a company rule. a.) Oral warning - this is done by the supervisor or line manager to correct immediately the misdeeds of the employee. b.) Written reprimand – usually given by the manager or line supervisor and is made a part of his personnel file. 4 2. Suspension – is the temporary lay off of an employee from work due to a repeated violation of minor policies that don’t warrant total separation or termination. 3. Discharge or Termination - it means total loss of a job and loss of privileges and benefits. Dismissal should be used only for the most serious offenses. **The Role of Managerial Counselling in Maintaining Discipline** Managerial counseling is designed to help employees to do a better job by providing them with an understanding of their relationships with their superiors, fellow workers and subordinates. Counselling is an accepted process of management and operated at all levels with the understanding and knowledge of human behavior. It is done in a conventional setting between two people where consultations of common problem is discussed. Areas Where Employees may Require Counseling Counseling is involved in all aspects of personnel management. It starts with the selection process and ends only when the employee is finally separated from employment. The following areas are frequently the subject of counseling: 1. Job-Related Activities ( di kona ni red yung below this but you have to discuss) a. Peformance issues - management is responsible for informing the employee of their progress. The employees must know their status from time to time and the immediate supervisor must do the counseling when performance is getting low. b. Disciplinary Cases – before the problem gets worse , the manager or the supervisor must do the remedial measures and do intensive counseling. The HRD must establish the borderline between counseling and discipline, as disciplinary measures could also serve as motivating factor for other employees. Counseling must come first before imposing disciplinary action. c. Conflict in the Work Place – the HRD must be careful in handling personal conflicts as this may lead some color to some people and the counselor must know when to intervene in the conflict. d. Safety and Industrial Health - employees should always be reminded of the health and safety programs of the company and develop values and attitudes of safe job performance while at work and in their affairs. e. Retirement - when employees retire from employment, they need counseling and guidance for them to adjust to a new world of life outside the organization. f. Termination - employees who are terminated should be given proper counseling for seeking other jobs and to advise them to be better in their next employment. 2. Personal Problems - the HRD is the guidance officer of the people who suffer problem related to their families, work, drug abuse and others which are personal in nature. Why are Employee BENEFITS Important ? 1. Finding and Retaining Talent Employers can attract and retain employees with the best personnel in their sector by providing competitive perks. This is especially crucial in today’s work market, where job searchers have more options than ever before. 2. Boosting Employee Morale Employees are more likely to be content and engaged at work when they feel valued and cared for. Providing perks like paid time off, retirement programs, and health insurance can encourage loyalty and morale among staff members. 3. Improving Well-being and Health To assist employees’ health and well-being, many employee benefits are created. A few examples of perks that might assist employees in maintaining their health and productivity include health insurance, wellness initiatives, and gym memberships. 4. Increasing Productivity Employees are more likely to be effective and productive at work when they are motivated, healthy, and happy 1. Statutory Benefits - also known as mandatory benefits, are entitlements that employers are obligated by law to provide to their employees. The mandated benefits are as follows: A. Social Security System ( SSS) – covers private-sector employees, self-employed workers, as well as household workers. and their families with protection against disability, sickness, old age and death. B. Thirteenth Month Pay - the corporate practice of giving 13th month pay to employees became mandatory after some time. C. Health Insurance - PhilHealth is the name of the health insurance plan in place for private employees in the Philippines. D. Home Development Mutual Fund ( HDMF) - The HDMF, also known as Pag-IBIG fund, provides housing loans. It also offers financial assistance to Filipinos to enable them to afford decent housing. E. Service incentive leave - Employers in the Philippines are obligated to grant five days of paid leave to every employee who has worked for at least one year. F. Maternity and paternity leave - Both married and unmarried female workers are entitled to 105 days of paid maternity leave for their first four pregnancies, including miscarriages. 2. Company Benefits - these are benefits granted by the company outside of those mandated by law. A. Sick Leave: Twelve (12) days for the first two years of service and additional 1 day every year starting on the 3rd year. Maximum total sick leave is 15 days. All unused leave are convertible to cash at the end of the year. B. Bereavement: Three (3) days applicable to immediate family member which includes the employee’s children, parents, grandparents, brother, sister, spouse, and parents-in-law. C. Mid-year bonus -In addition to 13-month pay, many companies offer an additional mid-year bonus to their employees. It’s relatively common for local employers to offer this extra payment as an incentive to attract and retain key professionals. D. Overtime pay -The employee who renders service beyond the schedule indicated in the contract will be given additional compensation equivalent to his regular wage including at least 25% premium. E. Holiday/ Christmas Bonus - this is given in December, on top of the 13th month pay. This is considered as the company’s Christmas gift to their employees. F. Paid Holiday and Vacation Leaves – on top of the mandated 5 days per year leave with pay, some companies give their employees additional paid holiday and vacation leaves. G. Birthday Leave - there are already companies that started giving their workers a present on their birthdays such as giving day off during the actual birth date of the worker. WHAT IS CAREER? is a pattern of work related experiences that span the course of a person's life reflects any work, paid or unpaid a way a making a living profession followed as lifetime What is Career Development series of activities or the on- going/lifelong process of developing one's career which includes defining new goals regularly and acquiring skills to achieve them managing one's career in an intra- organizational or inter-organizational scenario directly linked to the goals and objectives set by an individual directly linked to an individual's growth and satisfaction helps an individual grow not only professionally but also personally. While the exact steps can vary from person to person depending on their goals and circumstances. TRADITIONAL CAREER STAGES Exploration A career stage that usually ends in the mid- twenties as one makes the transition from school/college to work Career choice are influenced by the following: a. Your upbringing b. Communication from parents c. Feedback from Teachers d. Education Establishment A career stage in which a person finds his/her first job Typical Range 25-35 years old Person's main objective under this age: a. Learning the new job b. Gaining acceptance from Peers c. Development and improving your Skills Mid Career performance may increase or decrease or may remain constant Typical range is 35-45 years old Characterized by career stability and progression or transition into a new profession or field. Concerns of Work-life balance. Late Career identifying and developing successors Typical age range 45-55 years old Offers less opportunities for learning and obtaining new skills Offer teaching opportunities in order to identify and train successors Decline Typical Range 55-65 years old Retirement Stage The Basic Categories of Employee Compensation Employee compensation and benefits are divided into four basic categories: 1. Guaranteed pay - a fixed monetary ( cash ) reward paid by an employer to an employee. The most common form of this is base salary. 2. Variable pay a no– n-fixed monetary ( cash) reward paid by an employer to an employee that is contingent on discretion, performance or results achieved. 3. Benefits - programs an employer uses to supplement employees compensation such as medical insurance, company car and more. 4. Equity based compensation – It provide actual ownership in the company which ties an employees compensation to the long term success of the company. Components of a Compensation Program The various objectives of compensation can be achieved if a systematic compensation program is installed. This program consists of the following components: a. Job Analysis – which specify skill , responsibilities, hazards and work complexity pertaining to each job. b. Job Evaluation - which determines the worth of each job to the organization c. Salary Survey - which is used to determine the competitive position of the organization within the industry in terms of compensation d. Performance Evaluation - which is used to determine the performance level of every employee. Different Types of Penalties 1. Reprimand – it is a verbal warning given by the supervisor to correct immediately infraction of a company rule. a.) Oral warning - this is done by the supervisor or line manager to correct immediately the misdeeds of the employee. b.) Written reprimand – usually given by the manager or line supervisor and is made a part of his personnel file. 2. Suspension – is the temporary lay off of an employee from work due to a repeated violation of minor policies that don’t warrant total separation or termination. 3. Discharge or Termination - it means total loss of a job and loss of privileges and benefits. Dismissal should be used only for the most serious offenses. Criteria Used in Promoting Employees 1. Seniority rule – ( length of service ) all things being equal, the first to be hired must be given the priority to be promoted. 2. Current and past performance – promotion is based on the qualifications of the individual and previous performance and evaluation. 3. Attendance records – the performance for the last two to three years have to be examined. SEPARATION occurs when employee leaves the organization after several years of service. It can be voluntary or involuntary. Types of Separation 1.) Voluntary separation – It refers to the separation of employees on their own request.  a. Resignation – employee decides to quit when he is totally dissatisfied with the job; suffers from ill health or he has secured a better job elsewhere. b. Retirement - occur when employees reach the end of their career. 2.) Involuntary separation – the initiative for separation is taken by employer. a. Discharge/Dismissal – employee is discharged if there is excessive absenteeism, serious misconduct, theft of company property and espionage ( submission of false data at recruitment. b. Lay off – employees are laid off for a certain period when organization is faced with recession, shortage of raw materials, etc. c. Retrenchment - employees are retrenched permanently when they become surplus due to change in products or closure of a department. d. Downsizing - means reducing the size of the workforce. It is adopted when organization incurs losses over a period of years or when organization is restructured. PROMOTION is the reassignment of an employee to a higher job position. TRANSFER is the movement of an employee from one job to another of equivalent rank or position at the same pay, status, duties and responsibilities within the organization Different Methods of Performance Appraisal 1. Comparative Approach- The comparative approach of performance measurement consists of techniques that require the rater to commpare the individual’s performance with that of others. a. Ranking Method - the employees are ranked from the highest to the lowest or from the best to the worst. b. Forced Distribution Technique - determines the relative positions of the employees involved in similar work by comparing them against one another, and based on their performance, the employees receive different grades. c. Paired Comparison Method – in this method, each employee is compared with other employees taking only one at a time. d. The Checklist Method this method may include list of questions ( like behavior and job performance of employee ) and the rater has to answer them in just “ YES “ or “NO” form.  e. Graphic Scale Method : Graphic scale, also known as linear rating scale, is the most commonly used method of performance appraisal. 2. The behavioral approach of performance management attempts to define the behavior an employee exhibits to be effective in the job. a. The Critical Incident - It is the narrative report of incidents or occurences that invole the employee. b. The Behavioral Anchored Rating Scale - under this method, behavior anchors are used to assess the performance of an employee. Each anchor is assigned a level of performance and the various anchors constitute a rating scale. The manager and the employee agree on particular incidents and use these anchors in the rating of the employees’ performance. Errors to correct the fears in management appraisal system To correct some of the fears in the management appraisal system, the following errors should be studied very carefully: 1. Problems of Varying Standards - the manager should avoid using different standards among employees performing similar jobs. This could trigger anger from employees. 2. Central Tendency - occurs when employees are incorrectly rated near the average or middle scale. The supervisors who play safe in giving performance rating usually commit this error. 3. Recent Effect – the error in which the rater gives greater weight to recent events when appraising an individual performance. 4. Rater’s Bias - occurs when the rater’s value distorts the rating. If a manager has a strong dislike or a certain ethnic group, this bias is likely the result. 5. Halo Effect - occurs when a manager rates an employee high or low on all items because of one characteristic. For example, if a worker has few absences, the supervisor might give her a high rating in all other areas of work including quantity and quality of output because of her attendance.