OAM 11_Q2_0501_SG_Nature of Staffing.pdf

Unit 5: Sta ng Lesson 5.1 Nature of Sta ng Contents Introduction 1 Learning Objectives 2 Let’s Connect 2 Discover...

Unit 5: Sta ng Lesson 5.1 Nature of Sta ng Contents Introduction 1 Learning Objectives 2 Let’s Connect 2 Discover 4 Job Analysis 5 Recruitment and Selection 5 Training and Development 7 Employee Training vs. Employee Development 7 The Need for Employee Training 7 Management Employee Development Approaches 8 Performance Evaluation/Appraisal 8 Methods of Employee Evaluation 9 Compensation/Wages 9 Bases of Compensation 10 Employee Benefits 10 Employee Relations 11 Types of Employees 11 Importance of Employee Relations 12 Barriers to Employee Relations 12 Overcoming Barriers 12 Employee Movement 13 Promotion 13 Employee Transfer 14 Demotion 14 Separation and Termination 14 Rewards Systems 16 Types of Rewards 16 Wrap-Up 18 Try This! 19 Challenge Yourself 20 Bibliography 23 Unit 5: Management Functions: Sta ng Lesson 5.1 Nature of Sta ng Introduction As an organization carries out its plans, it goes from answering the question “What should we do?” to “What needs to be done?”. Once the answers to those questions are established, managers then have to answer the question, “Who’s going to do each job?”. This can be answered by one of the functions of management called staffing. Staffing is the process of filling the job positions needed by the organization in order to achieve its goals and objectives. But what makes staffing so important? 5.1. Nature of Staffing 1 Unit 5: Management Functions: Sta ng To grow, thrive, and succeed in today’s competitive environment, companies must deal with diverse changes. Traditionally, the concept of value has been considered a function of finance, accounting, and marketing. Nowadays, our definition of value includes not only profits but also employee growth, development, and satisfaction. An organization is made up of people, and its main goal is to provide goods and services. These people are vital to an effective organization, which is why the proper selection, development, utilization, rewarding, and maintaining of capable people is important. This can only be achieved through effective staffing. Learning Objectives DepEd Learning Competency At the end of this lesson, you should be able to discuss At the end of this lesson, you should be the nature of staffing (ABM_AOM11-IIa-b20). able to do the following: Explain the nature of staffing. Understand the purpose of staffing. Discuss the phases of staffing. Let’s Connect Who’s Job is This? 10 minutes In this activity, your teacher will be enumerating household chores. You will decide who should be doing them in your house. 5.1. Nature of Staffing 2 Unit 5: Management Functions: Sta ng Instructions 1. Your teacher will be giving different household chores such as, but not limited to, the following: Washing the dishes Wiping the windows Doing the laundry Feeding the pets Cleaning the garage 2. Your job is to assign each chore to a member of your household. 3. Raise your hand to be recognized by your teacher and share your answer with the class. 4. Note that the person you choose for each job is not limited to your immediate family. Other individuals who live with you can be included. 5. Once the activity is done, answer the guide questions below. Guide Questions 1. What did you consider when deciding which individual will be assigned to each household chore? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ 2. Do you think they are capable of doing the job efficiently? Why or why not? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ 3. Based on your task assignment for each individual, what is the most important factor in considering an individual for a given task? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ 5.1. Nature of Staffing 3 Unit 5: Management Functions: Sta ng Discover Staffing is the filling of all organizational job positions through identifying job position vacancies and workforce requirements. It includes, but is not limited to, the following: checking the internal environment of an organization for the available human resources recruiting, selecting, placing, promoting, and evaluating possible employees career path planning, employee development and training compensating and providing benefits to employees How can an effective and e cient sta ng process benefit a firm? Fig. 1. Phases of Staffing 5.1. Nature of Staffing 4 Unit 5: Management Functions: Sta ng Job Analysis Before we recruit and select potential employees that will add value to the organization, we must carefully make a systematic plan. Reviewing human resource requirements and determining what the company needs are both vital in determining the total manpower component needed to execute any planned strategic activities. In this phase, our responsibility is to determine the context of the jobs to be filled, their human requirements (e.g., human qualifications, skills needed, and knowledge that the employee should possess), what tasks need to be performed, and how they are carried out. Recruitment and Selection Recruitment involves activities related to the evaluation of a pool of applicants for jobs in the organization. Selection is making the decision of whom to hire from the pool of qualified applicants. How does management conduct the recruitment and selection process? The process map below will show you how managers practice this in reality. 5.1. Nature of Staffing 5 Unit 5: Management Functions: Sta ng Fig. 2. Recruitment and selection process Check Your Progress As a hiring manager, what characteristics should employees that deserve to be hired in your organization have? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 5.1. Nature of Staffing 6 Unit 5: Management Functions: Sta ng Training and Development The practice of training can be traced to the Stone Age when people started transferring knowledge to others through signs and deeds. Afterward, vocational training started during the Industrial Revolution. Now, training and development are increasingly recognized as the most important key to gaining knowledge and skill in many areas. Training has to be continuously offered to enable employees to stay skilled, effective, and efficient. Employee Training vs. Employee Development Training refers to the process where employees of the organization acquire knowledge and capabilities, usually from senior employees or seminars, to use in aiding the achievement of the organizational goals. It is an effort of the company to facilitate learning job-related competencies. These competencies include not just the knowledge and skills but also the behavior that is critical for successful job performance. Employee development refers to the formal education, relationships, job experiences, and assessments of the employees’ personalities and abilities. Ideally, these are cultivated by potential employees in order to prepare themselves for the future. Development goes beyond the requirements of the current job. It helps the employees prepare for jobs beyond the ones they currently have and enables them to be prepared for changes in their current jobs due to changes in technology, work design, and customers, or even new products and types of markets. The Need for Employee Training The need for training is usually indicated in the following instances: When required skills are not possessed by anyone in the workforce When an employee’s performance is below standard but has the potential to improve When employee morale is low When the productivity of employees is low When there is high employee attrition or turnover rate When the rate of absenteeism, tardiness, or accident is high 5.1. Nature of Staffing 7 Unit 5: Management Functions: Sta ng When supervision is lax When new technology is introduced Management Employee Development Approaches In-House (company site): 1. Management Coaching (Supervisor coaches the employees) 2. Committee Assignments (Assigning employees to important company committees) 3. Job Rotation (Shifting employees from one job to another) 4. Assistant-to-the Position (Assigning an employee as an assistant to the manager) 5. Job Enlargement (Adding challenges or new responsibilities to employees) 6. Mentoring (Making employees learn knowledge and skills from experienced organization members, which are agreed upon by both parties) Off-Site (outside development interventions): 1. Formal Education (Company sends employees to seminars, workshops, and training programs) 2. Team Building (Employees are organized into teams and solve common problems related to team relationships) 3. Case Studies (Classroom type of training technique wherein employees are tasked to use management concepts to solve problems) 4. Role-playing (A developmental technique that will require a trainee to assume a role in a given situation and act out the behavior associated with it) 5. Simulations (Involves business games developed by Human Resource Experts that requires employees to analyze situations and decide on the best course of action based on the available data) Performance Evaluation/Appraisal It is said by most experienced managers that performance appraisal or evaluation is one of the major keys to effective management, as it is the basis for determining who should be promoted to a higher position. It is a process of evaluating an employee in order to arrive at an objective managerial decision. 5.1. Nature of Staffing 8 Unit 5: Management Functions: Sta ng The methods of evaluating workers have undergone developments in order to adapt to new legal employment requirements and technical changes. Different performance appraisal methods are used depending on the information an evaluator aims to discern. Methods of Employee Evaluation Some of these methods used by managers today in evaluating their subordinates are the following: The trait method is designed to find out if the employee possesses important work characteristics, such as conscientiousness, creativity, emotional stability, and others. Graphic rating is accomplished by evaluating employee performance based on a scale of measurement. This requires the evaluator to indicate a specific degree by which an employee possesses/attains a particular characteristic/organization requirement. The forced-choice method requires the evaluator to choose from two statements purposely designed to distinguish between positive or negative performances. For example, “works seriously – works fast,” “shows leadership – has initiative.” Behaviorally anchored rating scale (BARS) includes 5 to 10 vertical scales, one for each important strategy for doing the job and numbered according to importance. Behavior observation scale (BOS) measures the frequency of observed behavior. Compensation/Wages Compensation/wages and performance evaluation/appraisal are related to each other because an employee’s performance, whether excellent or poor, determines the compensation given to him or her. Compensation is given after considering other internal and external factors, such as the difficulty level of the job, the compensation strategy of the organization, the conditions of the labor market, the average cost of living, and area wage rates. Compensation can be in the form of direct compensation, which includes worker’s salaries, incentive pays, bonuses, and commissions. It can also be in the form of indirect compensation, which includes benefits given by employers aside from financial remunerations. Some examples of indirect compensation include travel, educational 5.1. Nature of Staffing 9 Unit 5: Management Functions: Sta ng programs, health benefits, and other fringe benefits. It also includes nonfinancial compensation, such as recognition programs, being assigned to do rewarding jobs, or enjoying management support, an ideal work environment, and convenient work hours. Bases of Compensation Employees may be compensated on the following bases: Table 1. Bases of compensation and how it is computed Compensation Bases How is it computed? Piecework basis Pay is computed according to the number of units produced. Hourly basis Pay is computed according to the number of work hours rendered. Daily basis Pay is computed according to the number of workdays rendered. Weekly basis Pay is computed according to the number of workweeks rendered. Monthly basis Pay is computed according to the number of work months rendered. Employee Benefits Some organizations provide employee benefits that are not covered by regular salaries and wages. This refers to benefits that contribute to the improvement of the conditions of work, and that motivates the employees to perform well. These benefits are additional compensations that the employee regularly receives at a stipulated interval and as mandated in the company policies and guidelines. 5.1. Nature of Staffing 10 Unit 5: Management Functions: Sta ng Table 2. Classification of benefits and examples Classification of Description Examples Benefits Statutory Benefits These are benefits 13th-month pay, 5-day incentive leave, mandated by law. birthday leave, maternity leave, paternity leave, PAG-IBIG Fund, Medicare fund, social security benefits, cost of living allowance Company Benefits These are benefits Vacation leave with pay, sick leave with granted by the pay, bereavement leave, hospitalization company, outside plan, insurance plan, Christmas and those mandated by mid-year bonus, educational plan, legal law. aid, car plan, company service and transportation, emergency leave, profit-sharing, recreational and physical fitness facilities, housing equity assistance Employee Relations In an organization, efforts to manage relationships between employers and employees have to be observed. It is important for organizations to have good employee relations programs that provide fair and consistent treatment to all employees so they will be committed to their jobs, stay loyal to the company, and be motivated to perform as best as they can. Types of Employees There are different types of employees in an organization, and they are as follows: 1. Engaged employees are motivated people who work with passion and are able to establish a deep connection with their company. This level of engagement often results in innovation, which reflects on the organizational performance of employees within a company. 5.1. Nature of Staffing 11 Unit 5: Management Functions: Sta ng 2. Not engaged employees are those who accomplish tasks for the sake of compliance but are unable or unmotivated to demonstrate energetic or passionate behavior at work. 3. Actively disengaged employees are those who are unhappy with their jobs and subsequently undermine what their engaged co-workers accomplish. Importance of Employee Relations Provides counsel and advice to supervisors and employees regarding employment-related inquiries Provides confidential consultation Advises employees regarding their employment rights Facilitates dialogue on employee/employer issues Barriers to Employee Relations Asocial/avoidant personality, refusal to share more about oneself to co-employees, and being a loner Lack of trust in others Selfish attitude or having too many self-serving motives Lack of good self-esteem Not a team player Being conceited Cultural/subcultural differences Lack of cooperation Communication problems, such as the refusal to listen to what others seek to communicate Lack of concern for others’ welfare Overcoming Barriers Develop a healthy personality to overcome negative attitudes and behavior. Find time to socialize with coworkers. Develop good communication skills and be open to others’ opinions. Minimize cultural/subcultural tension. 5.1. Nature of Staffing 12 Unit 5: Management Functions: Sta ng Check Your Progress How can you maintain a good healthy relationship with your employees? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Employee Movement Upon entering an organization, every employee has a goal and often ends up changing his or her employment status. In most cases, in the initial stages of his or her employment, the employee starts as a temporary employee or part-timer, then moves up to probationary employee upon meeting the requirements of the position where he or she is assigned. If he or she performs well as a probationary employee, he or she will move up the ladder and become a permanent employee with greater benefits and the possibility of promotion or transfer, as he or she stays longer in the organization. Promotion Promotion is the movement of an employee from a lower level to a higher level in the organizational hierarchy. A higher level job involves more duties and responsibilities. Usually, it carries with it higher pay, higher status, better privileges, and better working conditions. An employee can be promoted if: He or she performed well, and there is an opportunity for a higher position available He or she improved academically and professionally, making him or her prepared for new challenges He or she is proficient in what they do He or she contributed a lot to the organization to the extent that the employer decided to recognize his or her work. 5.1. Nature of Staffing 13 Unit 5: Management Functions: Sta ng Employee Transfer Employee transfer is the movement of an employee in an organization from one job to another of equivalent rank or position at the same pay class. This may cause some changes in the duties and responsibilities of the employee being transferred. Sometimes it involves an increase in pay. The transferring of employees is not limited from one department to another. It may also be assigning employees from the mother company to a subsidiary or a sister organization. There are different kinds of employee transfer: 1. Temporary Transfer means having an employee substitute for an absent employee for a particular period of time. This can also refer to giving an employee a temporary position to have them learn other duties and responsibilities in preparation for a promotion. 2. Permanent Transfer means to fill a vacant position in another unit or department requiring the skills and capabilities of the employee being transferred. Demotion Demotion is the movement of an employee from a higher level to a lower level in the organizational ladder/hierarchy. It is one of the most difficult decisions the management of an organization has to make as it creates tension and anxiety. Possible reasons for demoting an employee: A need to reduce the manpower budget The inability of the employee to meet the requirements of their current position The failure of the employee to meet technical changes in the job The employee’s commitment to an infraction of the company’s rules and regulations, but not to the extent that termination is needed. Separation and Termination The termination of the relationship between the employee and employer is called separation. Termination can be caused by the resignation of the employee or a unilateral action of the management. Resignation is a voluntary separation of the employee from 5.1. Nature of Staffing 14 Unit 5: Management Functions: Sta ng the organization, while the unilateral action of the management to terminate the employment or the relationship is called lay-off or discharge. Common reasons for employee resignation: Better job opportunities in other companies or outside of the organization The desire for higher wages and better working conditions Misunderstandings between the employee and his or her superior or co-worker(s). Geographical reasons, such as travel distance from home or change of residence. Change in marital or parental status Changes in an employee’s schedule Types of Lay-off: 1. Temporary Lay-off The temporary removal of an employee from his or her position, with the possibility of rehire. One possible reason for temporary lay-off may be a lack of materials or orders that would require the services of the employee. 2. Permanent Lay-off This refers to the total severance of the employment relationship. Check Your Progress As a future manager, how can you encourage your well-performing subordinates to stay in the company longer? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 5.1. Nature of Staffing 15 Unit 5: Management Functions: Sta ng Rewards Systems Organizations offer competitive rewards systems to attract knowledgeable and skilled people and to motivate/satisfy workers currently employed in their organization. Furthermore, fair rewards promote personal growth and development and inhibit employee turnover. Types of Rewards Most managements offer different types of rewards, such as the following: 1. Monetary Rewards are most commonly given in the form of salary/pay increases, bonuses, or increases in benefits such as pension or health care premiums. These rewards can be divided into two categories: direct and indirect compensation. These contribute to the financial betterment of the employees. a. Direct compensation is the basic type of payment an employee receives. It includes an employee’s base pay or salary and other government-mandated benefits. b. Indirect compensation includes increases to benefits such as dental and eye care plans. It can also include paid leaves in the form of vacation leaves or sick leaves with pay. These include days off for training, sabbatical leaves, bereavement leaves, or childcare and eldercare leaves. There are also some organizations that offer services as part of an indirect compensation package. These include on-site childcare, an eldercare program, an on-site cafeteria or free lunch canteen, a game and videoke room or gym/wellness space, and counseling services for employees and their families. Note that indirect compensation should be valuable to employees. 2. Non-monetary rewards are costs for the organization but do not directly improve the financial position of the employees. Making sure that the employees have everything they need to fully execute the tasks assigned to them. It may include a great office location, choice of furnishings, interior layout, or special parking place can all be non-monetary rewards. Employees may be in the dark regarding full details of pay and other financial benefits of their coworkers, but non-monetary rewards are often visible and can create perceptions of inequity in an organization. In 5.1. Nature of Staffing 16 Unit 5: Management Functions: Sta ng some cases, this may be the purpose of managers who want employees to strive more to achieve the best rewards, but it often unintentionally encourages feelings of inequity. Check Your Progress Aside from giving them rewards, how do managers motivate their employees? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ In Philippine Context In the Philippines, the benefits that employees receive from the company where they choose to belong is dependent on the type of their employment. There are six common employee classifications in the Philippines, namely probationary employment, regular employment, fixed-term or contractual employment, casual employment, project employment, and seasonal employment. These classifications are not all-inclusive. There are still other employee classifications in the Philippines depending on the criteria of classification, such as level of responsibility, functions, or entitlement. These can be separated into managerial, supervisory, and rank-and-file employees. When it comes to employee protection and other employee-related rights and laws, the Labor Code of the Philippines is the general labor law that regulates employment relationships in the Philippines. 5.1. Nature of Staffing 17 Unit 5: Management Functions: Sta ng Wrap-Up _____________________________________________________________________________________________ Staffing is the filling of all organizational job positions through identifying job position vacancies and workforce requirements. It includes checking the internal environment of an organization for the available human resources; recruiting, selecting, placing, promoting, and evaluating possible employees; career path planning, employee development and training; and compensating and providing benefits to employees. The Phases of Staffing are the following: 1. Recruit and carefully select potential employees of the organization 2. Train and develop hired employees 3. Give employees compensation and benefits 4. Create healthy and good relationships with the employees 5. Aid the employees’ movement in the organization 6. Evaluate employees’ performances 7. Reward employees based on their performance in the organization _____________________________________________________________________________________________ 5.1. Nature of Staffing 18 Unit 5: Management Functions: Sta ng Try This! A. True or False. Write true if the statement is correct. Otherwise, write false. ________________ 1. Staffing is filling organizational job positions. ________________ 2. Staffing is only focused on activities related to the recruitment and selection of applicants. ________________ 3. Employee development refers to the formal education, relationships, job experiences, and assessments of the employees’ personalities and abilities that are cultivated by potential employees in order to prepare themselves for the future. ________________ 4. Compensation based on the number of units produced is referred to as “daily basis.” ________________ 5. Training and development have the same functions. ________________ 6. Employee benefits are different from compensation and wages. ________________ 7. Staffing is not necessary for creating good relationships between employers and employees. ________________ 8. A rewards system is just an additional cost for an organization, which is why it is discouraged or minimized. ________________ 9. Promotion is the movement of employees from lower to higher levels of the organizational hierarchy. ________________ 10. Compensation only comes in the form of direct compensation, which includes worker’s salaries, incentive pays, bonuses, and commissions. 5.1. Nature of Staffing 19 Unit 5: Management Functions: Sta ng B. Identification. Identify the term or phrase being asked in each item. ________________ 1. It involves activities related to the development of a pool of applicants for jobs in the organization. ________________ 2. This is a tool that organizations use to attract knowledgeable and skilled people and to keep them motivated/satisfied once they are employed in their firm. ________________ 3. Benefits granted by the company outside those mandated by law. ________________ 4. Pay is computed according to the number of workdays rendered. ________________ 5. It refers to the process where employees of the organization acquire knowledge and capabilities to aid in the achievement of the organizational goals. Challenge Yourself Short-Response Essay. The following are different questions and situations that involve the use of staffing. Write your answer on the space provided. The rubric at the end of this section will be used to grade your answers. 1. You are assigned to be the store manager of a fast-food venue and you have noticed that the crew are obviously demotivated when performing their tasks. The rate of absenteeism and workplace accidents in the store is high. As the manager, how will you address this problem? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ 5.1. Nature of Staffing 20 Unit 5: Management Functions: Sta ng 2. “Hire an attitude, not just experience and qualification.” With this in mind, how will you select the potential employees of your company? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ 3. The company is facing a recession due to the pandemic crisis, and it has to minimize its operation costs to survive. If you are a manager who is part of the decision-making process, what can you propose to the board of directors to provide a resolution? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ 5.1. Nature of Staffing 21 Unit 5: Management Functions: Sta ng Suggested Rubric for Grading The rubric below is a suggested one. Your teacher may modify the rubrics based on your needs. Consult your teacher for the final rubric. Performance Levels 1 2 3 Suggested Criteria Score Beginning Proficient Advanced Weight Proficiency Proficiency Content Less than half of the More than half of All of the answers answers are logical the answers are are logical and ×3 and plausible. logical and plausible. plausible. Supporting Less than half of the More than half of All of the answers answers have clear the answers have have clear Information ×2 supporting theoretical clear supporting supporting evidence. theoretical evidence. theoretical evidence. Grammar and Less than half of the More than half of All of the answers answers are the answers are are grammatically Structure grammatically correct grammatically correct correct and free ×1 and free spelling and free spelling spelling errors. errors. errors. Total Possible Score 18 5.1. Nature of Staffing 22 Unit 5: Management Functions: Sta ng Bibliography Altarejos, Anthony, Cabrera, Helena, and Riaz, Benjamin. Organization and management. Vibal Group, Inc. 2016 Frias, Solita, and Orjalo, Victoria. Organization and management: Concepts, caselets, and exercises. Phoenix Publishing House, Inc. 2016 Pereda, Pedrito, and Pereda, Purisima. Human Resource Management. Mindshapers Co., Inc.. 2008 Salvador, Samuel, Bagunas, Estelito, and Geronimo, Ellinor. Principles and Practices of Management and Organization, Second Edition. Allen Adrian Books, Inc.. 2009 5.1. Nature of Staffing 23