PA416: Salary Administration Job Evaluation PDF

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Universidad de Manila

Dela Roma, Varon Inocencio, Francis Jewel Santos, Aldrian Jay Sison, Danica Jane C. GEORGE M. QUIAMBAO

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job evaluation salary administration personnel processes human resource management

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This document is a report on Salary Administration, focusing on job evaluation within the Philippine government. It details various methods of job evaluation and related concepts, such as job analysis and position classification.

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PA416: SALARY ADMINISTRATION GROUP 2: Job Evaluation in the Philippine Government Prepared by: Dela Roma, Varon Inocencio, Francis Jewel Santos, Aldr...

PA416: SALARY ADMINISTRATION GROUP 2: Job Evaluation in the Philippine Government Prepared by: Dela Roma, Varon Inocencio, Francis Jewel Santos, Aldrian Jay Sison, Danica Jane C. Submitted to: GEORGE M. QUIAMBAO Professor 1|P age Objectives: Explain the objectives of job evaluation and describe the various methods used to assess and classify jobs within the Philippine government. Critically evaluate the job evaluation techniques employed by the Philippine government. Understanding their application and effectiveness. Demonstrate the ability to outline and apply the steps and processes involved in conducting job evaluations within government agencies. TABLE OF CONTENTS JOB EVALUATION IN THE PHILIPPINE GOVERNMENT Appendices…………………………………………………………………………………..…….3 I. Job Analysis…………………………………………………………………………………….4 I.II Job Information …………………………………………….……………...5 I.II Job Analysis Methods……………………………………………………..7 I.III Job Description/ Design…………………………………………….……8 II. Job Evaluation…………………………………………………………………………………8 II. I Ranking Method…………………………………………………………..…8 II.II Job Classification or Job Grading Evaluation Method………..9 II.III Point System……………………………………………………………………9 II.IV Factor Comparison Method……………………………………………..10 III. Personnel Processes in the Philippine Government………………..………….13 III. I Recruitment and Selection Standards……..………………………...15 III.II Civil Service Eligibility……..……………………..…………………….…16 III.III Compensation and Position Classification……..………………17 III.IV Allocation of Salary of Grade Levels………………………………18 References…………………………………………………………………………………………..19 2|P age APPENDICES Civil Service Eligibility: It refers to the qualifications and criteria required for individuals to be appointed to or advance within government positions. Equal pay for equal work: It ensures fairness in salary and benefits across similar positions to promote equality and prevent discrimination. Human resource management: This includes recruitment, selection, training, performance evaluation, compensation, and employee relations. Job - group of positions that are similar in their duties. In some instances, only one position may be involved, simply because no other similar position exists. For example, the position of the chief accountant also constitutes a job since there is only one chief accountant in the organization. Job analysis - the procedure used for determining/collecting information relating to the operations and responsibility of a specific job. The end results are job description and job specifications. Job classification - grouping of jobs on some specified basis such as kind of work or pay. It can refer to a grouping by any selected characteristics but preferably used most often in connection with pay and job evaluation. Job description - organized, factual statements of the duties and responsibilities of a specific job. It tells what is to be done, how it is done, and why. It is a list of job duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities. Job evaluation - systematic and orderly process of determining the worth of a job in relation to other jobs. The objective is to determine the correct rate of pay. Job specifications - a written explanation of the minimum acceptable human qualities necessary for effective performance of a given job. It designates the qualities required for acceptable performance, which are requisite education, skills, personality, and so on. Merit system: This principle aims to select and advance employees based on their abilities and achievements to promote fairness and efficiency in government operations. Occupation - group of jobs that are similar as to kind of work and are found throughout an industry. An occupation is a category of work found in many firms. Position - consists of the responsibility and duties performed by an individual. There are as many positions in a firm as there are employees. 3|P age I. I JOB ANALYSIS Job analysis is conducted to determine the responsibilities inherent in the position as well as the qualifications needed to fulfill its responsibilities. It is essential when recruiting to locate an individual having the requisite capabilities and education. Importance of Job Analysis Importance of Job Analysis (JA) Successful HRM practices can lead to outcomes that create competitive advantage. When properly performed, job analyses can enhance the success of HRM practices by laying the required foundation. Definition of Different Job Terms a. Position - consists of the responsibility and duties performed by an individual. There are as many positions in a firm as there are employees. b. Job - group of positions that are similar in their duties. In some instances, only one position may be involved, simply because no other similar position exists. For example, the position of the chief accountant also constitutes a job since there is only one chief accountant in the organization. c. Occupation - group of jobs that are similar as to kind of work and are found throughout an industry. An occupation is a category of work found in many firms. d. Job analysis - the procedure used for determining/collecting information relating to the operations and responsibility of a specific job. The end results are job description and job specifications. e. Job description - organized, factual statements of the duties and responsibilities of a specific job. It tells what is to be done, how it is done, and why. It is a list of job duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities. f. Job specifications - a written explanation of the minimum acceptable human qualities necessary for effective performance of a given job. It designates the qualities required for acceptable performance, which are requisite education, skills, personality, and so on. g. Job classification - grouping of jobs on some specified basis such as kind of work or pay. It can refer to a grouping by any selected characteristics but preferably used most often in connection with pay and job evaluation. h. Job evaluation - systematic and orderly process of determining the worth of a job in relation to other jobs. The objective is to determine the correct rate of pay. I.I Job Analysis Information Job analysis provides information in several cases including the following: 1. How much time is taken to complete basic tasks? 2. How are tasks grouped together into a job? 3. How can a job be designed so that employee performance can be improved? 4|P age 4. What kind of skills is needed to perform a given job? 5. What kind of person is best suited to perform a certain type of job? Specific Information Provided by Job Analysis 1. Job title and location 2. Organizational relationship - brief explanation of the number of persons supervised (if applicable) and job title of the position supervised. It also reflects supervision received. 3. Relation to other jobs - describes and outlines the coordination required by the job. 4. Job summary - condensed explanation of the content of the job. 5. Information concerning job requirements - usually provides information about machines, tools, materials, mental complexity and attention required, physical demands, and working conditions. It varies from job to job. Uses of Job Analysis Information 1. Preparing the job description and writing the job specifications The result of job analysis provides a complete description that contains job summary, the job duties and responsibilities, machine and equipment used, and some indications of the working conditions. It is also used to describe the individual traits and characteristics required in performing the job well. 2. Recruitment and Selection Job analysis information is useful when searching for the right person to fill the job, It helps to seek and find the type of people that will contribute to and suit the needs of the organization. 3. Determining the rate of compensation Job analysis information is also essential for estimating the value of and appropriate compensation for each job. This is because compensation usually depends on the job's required skill and educational level, safety hazards, degree of responsibility, and so on, all of which are assessed through job analysis. 4. Performance appraisal It involves comparison of actual versus planned output. Job analysis information is used to identify the standards and performance objectives and specific activities to be performed against which employees are evaluated. It is used to acquire an idea of acceptable level of performance for a job. 5. Training Job analysis information is used to design training and development programs because the analysis and resulting job description show the skills and therefore the kind of training that is required. Training and development are conducted to satisfy these skills and competency requirements. 6. Career planning and development The movement of individuals into and out of positions, jobs, and occupation is a common procedure in organizations. JA provides clear and detailed information to employees on career movement. 5|P age 7. Safety The safety of a job depends on the proper layout, standards, equipment, and other physical conditions. What a job entails and the type of people needed contribute information to establish safe procedures so that unsafe practices can either be changed or discontinued. 8. Labor relations An attempt of an employee to add or subtract from the duties listed, as a result of job analysis, is already a violation of this standard. The labor union as well as the management is interested in this matter. Controversies often result and a written record of the standard job jurisdiction is valuable in resolving such disputes. Figure 2. Recommended Steps in Conducting Job Analysis Step 1 - Provide a broad view of how each job fits into the total fabric of the organization. This is to determine how the data will be used in HRM planning. HR managers should decide what data needs to be collected, the best method of collection, and the uses of the information in a comprehensive HRM strategy. Step 2 - Identify the use to which the information will be put, since this will determine the type of data to be collected and how to collect data. This requires studying the organization charts, job descriptions, and work process charts. Step 3 - Since it is usually too costly and time consuming to analyze every job, a representative sample of jobs needs to be selected. Review relevant background information such as organization charts, process charts, and existing job descriptions. Organization chart shows how the job in question relates to other jobs and where it fits in the overall organization. It should identify the title of each position and, by means of interconnecting lines, show who reports to whom in the hierarchy.Process charts show the flow of inputs to and outputs from the job under study. Existing job description can provide a starting point for building the revised job description. Step 4- This involves the actual analysis of job by collecting data on job activities, required employee behavior, education, training, experience requirements, working hours, equipment used, required job duties, process workflow, working conditions, and human traits and abilities needed to perform the job. This is done through the use of acceptable job analysis techniques. The information collected in Step 4 is then used in Step 5 and Step 6 to develop the job description 6|P age and job specifications, A job description and a job specification are usually two concrete products of the job analysis. I.II Methods Used in Job Analysis 1. Interview Job analysis information can be obtained by interviewing the job incumbent or by group interviews with group of employees doing the same job or by interviewing the supervisor who is knowledgeable about the job. Interview information is particularly valuable for professional and technical jobs that mainly involve thinking and problem solving. 2. Observation Direct observation is especially useful when jobs consist mainly of observable physical activity. Jobs like those of a janitor, production workers, and drivers are examples of these. On the other hand, observation is usually not appropriate when the job entails significant amount of mental activity, such as the work of the lawyer, financial analyst, and the like. 3. Questionnaire - These of questionnaires is usually the least costly method for collecting large of ideation in a short period of time. Advantages of using the othed include the information gathered in quantitative nature and can be easily updated as the job changes. It usually includes asking the worker to describe the kinds of experiences, qualifications attitudes arded to perform the job. It also includes a detailed list of tities perfemed and the importance of each activity or the percentage of time spent in performing it and 4. Employee recording use of log book - This is a receding by job incumbents of job duties, frequency of the duties, and when the duties are accomplished. This can produce a complete picture of the job, especially when supplemented with subsequent interviews with the worker and the supervisor I.III Job Description/ Design Writing the Job Description The original purpose of job description is to establish the level of difficulty of a specific position for the purpose of establishing pay levels. Over the years, new directions in management thinking point to a move from duty-oriented job description to role and competency-oriented descriptions. This does not become outdated as quickly and provides both supervisor and employees clarity on the what, how, and even why of the position. In addition, it is easier to alter as the technologies, strategies, or customers' needs change. The first and immediate product of job analysis is the job description. As indicated, this is basically descriptive and constitutes a record of existing and pertinent job facts. These facts must be organized in some fashion in order to be usable. Suggested contents are given as follows: 1. Date written 2. Jeb status-full-time/part-time including salary 2 Job identification- The identification section includes such information job title, department, division, plant and code number of the job. 4 Job summary A brief one or two-sentence statement describing the purpose of the job and what outputs are expected from job incumbents 5. Working relationship, responsibilities, and duties performed-Relationship statement shows the jobholder's relationship with others inside and outside the organization. These include supervision received (to whom the job incumbent reports) and supervision exercised (who reports to the employee Below is an example of a job description: 7|P age Responsibilities and duties should be presented in clear and precise statements and should include essential functions and major tasks, duties and responsibilities performed. The function of each job should be identified and explained for the benefit of the jobholder. 6. Authority of incumbent defines the limit of the jobholder's authority, including his/her decision-making authority, direct supervision of other personnel, and budgetary limitation. 7. Competency requirements education and experience including special skills required to perform a given job. 8. Working conditions a list of the general working conditions involved with the job, location of the job, and other relevant characteristics of the immediate work environment such as hazards and noise levels. II. JOB EVALUATION Job evaluation refers to a systematic comparison done in order to determine the worth of one job relative to another. The basic procedure is to compare the content of jobs in relation to one another, like in terms of their effort, responsibility, and skills. This process is used for designing a pay structure, not for appraising the performance of employees holding the job. The general idea is to enumerate the requirements of a job and the job’s contribution to the organization and then classify it according to its importance. For instance, a web designer’s job would involve more complex requirements and with a potentially greater contribution to an organization than that of a person who simply weighs raw materials. Job Evaluation Methods II.I Ranking Method This is the simplest and the oldest method and the least often used job evaluation technique. It involves ranking each job relative to all other jobs, usually based on overall difficulty rather than on a number of compensable factors. Often, the evaluator prepare cards with basic information 8|P age about the jobs and then arranges the cards in the order of importance of the positions. The job ranking method produces only an ordering of jobs and does not indicate The relative degree of difference among them. For example, a job with a ranking of four is not necessarily twice as difficult as a job with a ranking of two. Advantages: Simplest and easiest to explain Takes less time to accomplish than other methods Disadvantages: Provides no yardstick for measuring the value of one job relative to another It is limited to smaller organizations where employees are very familiar with various jobs. The method is highly subjective. II.II B. Job Classification or Job Grading Evaluation Method This is a simple, widely used method in which jobs are categorized into groups. The groups are called classes if they contain similar jobs, or grades if they contain jobs that similar in difficulty but otherwise different. These sets of jobs are ranked on levels of difficulty or sophistication. Certain classes or grades of jobs are defined on the basis of differences in duties, responsibilities, skills, working conditions, and other job-related factors. Advantages: Provides specific standards for compensation and accommodates any changes in the value of individual jobs Can be constructed simply, quickly, and cheaply Easy to understand and explain to employees Disadvantages: Jobs are forced to fit into categories that are not entirely appropriate and feelings of inequity can result. Problems may arise in deciding how many classifications there should be because too few classes will make it difficult to differentiate job value while too many classes make writing definitions almost impossible. 9|P age II.III Point System Point system requires evaluators to quantify the value of the elements of a job. On the basis of the job description or interviews with job occupants, points are assigned to the degree of various compensable factors to do the job. For example, points are assigned based on skill required, physical and mental effort needed, working condition, and amount of responsibility involved in the job. When these points are summed, the job has been evaluated. Steps: 1. Selection of key jobs. This represents jobs that are common throughout the industry. The goal here is to select enough key jobs to represent each major internal variable in the pay structure for all the jobs being evaluated. A full and detailed job description is necessary for each job. 2. Selecting compensable factors. Compensable factors are factors or characteristics of jobs that are deemed important by the organization to the extent that it is willing to pay for them. The degree to which a specific job possesses these compensable factors determines its relative worth. For example, the compensable factors selected for evaluating production jobs might include skill, effort, and working condition whereas compensable factors for evaluating managerial and professional jobs might include knowledge, responsibility, and decision-making requirements. For companies with recognized labor union, compensable factors selected must be acceptable to both management and the union. In this method, job subfactors are used to describe compensable factors in more detail. For instance, the compensable factor of knowledge might include subfactors such as education, experience and training, job complexity, and manual skills. Knowledge here is defined as the familiarity or level of education or skill that must either be possessed or acquired by an individual to be able to discharge the duties of the job. 10 | P a g e Degree statements describe the specific requirements of each subfactor. Table 5 presents possible degrees and subfactors for the compensable factor of knowledge. Breaking compensable factors into subfactors and degrees allows for a more precise definition of the job and facilitate the evaluation process. Assigning Weight to Factors Weights are assigned to each of the factors, subfactors, and degrees to reflect their relative importance. Naturally, the weight assigned varies from job to job. For example, skill might be the most important factor used in evaluating a machinist’s job, while responsibility might be more critical to a supervisor’s job. Table 6 presents a possible point breakdown that totals 1,000 points. 11 | P a g e In this example, the compensable factor of responsibility was deemed to be the most important factor and was awarded 360 points. Assigning Points to Specific Jobs After the point scale has been agreed on, point values are derived for key jobs using the following steps: 1.Examine the job descriptions. 2.Determine the degree statement that best describes each subfactor for each compensable factor. 3. Add the total number of points. The point totals should present the same general relationships that the actual pay show for the key jobs. That is, a rank ordering of the key jobs according to point totals should be approximately equivalent to a rank ordering of key jobs according to pay. Table 7 presents another example of point assignment for four compensable factors to evaluate the job of a machine operator. Regardless of the technique used, both past experience and judgment play major roles in assigning weights. Generally, weights are assigned on the basis of a maximum number of points for any job; this number is often decided arbitrarily. Advantages: Detailed and specific – Jobs are evaluated on a component basis and compared against a predetermined scale. The system is easy to keep current as jobs change. Because of its quantitative nature, it is easy to assign monetary value to jobs. Disadvantages: Time consuming and costly to develop Requires significant interaction and decision-making by the different parties involved in conducting job evaluation. 12 | P a g e II.IV Factor Comparison Method This method is similar to the point method but slightly more complex, and it involves a monetary scale instead of a point scale, thus, not as popular as the point method. It is absolutely essential that the rates of pay of key jobs be viewed as reasonable and fair to all those making evaluations. Compensable factors are identified. Typically, the number of compensable factors is small (4 or 5). Examples of compensable factors are: 1.Skills 2. Responsibilities 3.Effort 4. Working Conditions Unlike the point system, however, the factor comparison method does not break down the compensable factors into subfactors and degrees. It requires that each job be compared and ranked with their jobs under each separate factor. Steps: 1.Identify key (benchmark) jobs. 2.Identify job factors. 3. Rank jobs with respect to each of the factors independently. 4. Assign monetary amounts to each job on each factor. 5. Compare unique jobs with key jobs. This should be done factor by factor, to determine how much each unique job should be paid. 6. Group similar jobs into pay grades. A pay grade is comprised of jobs of approximately equal difficulty or importance as determined by job evaluation. 7.Price each pay grade. The jobs are then priced and the total pay for each job is divided into Pay for each factor. See example matrix above. This process establishes the rate of pay for each factor of each benchmark job. Advantages: Relatively detailed and specific – jobs are evaluated on a component basis and compared against other jobs. 13 | P a g e Usually easier to develop than the point method Value of the job is expressed in monetary terms. Can be applied to a wide range of jobs Can be applied to newly created jobs Disadvantages: Relatively difficult to explain to employees since the pay for each factor is based on judgments that are subjective The standards used to determine the pay for each factor may have built-in basis that would affect certain groups of employees like females or minorities. In conducting job evaluation, the following must be taken into consideration: 1.Consistency – This is to establish reliability. It is achieved when two people evaluating the same jobs provide similar ratings made by one person on two different occasions. 2.Freedom from bias – The process should be free from political considerations or personal biases. Those making the evaluation should be objective. 3. Correctability – Firms should provide mechanisms to modify inaccurate or out-of-date evaluations, thus, the need to periodically review and update job evaluation results. Employees should also be allowed to review the evaluation of their jobs and to appeal the ratings if dissatisfied. 4. Representatives – All employees affected by the process should have their concerns represented. 5. Accuracy of information – Ratings must be based on accurate information, that is, those making the evaluations should be quite knowledgeable of the jobs being rated. Different Forms of Compensation Employees can be paid for the time they work, the output they produce, or a combination of these two factors. a. Payment for Time Worked Pay surveys are used to establish competitive pay for the industry and job evaluation is the principal method for setting time-pay schedules. This method has no direct relation to the worker’s output. Pay is usually adjusted upward through six types of increases: a. General – across-the-board increase for all employees b. Merit increases – paid to employees based on some indicator of job performance c. Cost of living adjustment d. Reclassification increase 14 | P a g e e. Level adjustment f. Promotional increase 3. Incentive Forms of Compensation This is a method of compensating employees on the basis of output which means, more production, more earnings. The organization first establishes performance standards to determine the quantity a person can be expected to produce a given period of time. The firm sets wages III. PERSONNEL PROCESSES III. I Recruitment and Selection Standards The Commission provides qualification standards for level one and two positions: Level 1 Positions: 1. Clerical: These involve administrative tasks like maintaining records, typing, filing, scheduling, and assisting with routine office functions. 2. Trades: These jobs involve specialized manual labor requiring technical skills or training. 3. Crafts: Similar to trades, but with a focus on manual skills that require a high degree of craftsmanship and precision. 4. Custodial: These involve maintaining the cleanliness and security of government facilities. Level 2 Positions: 1. Professional: Government roles requiring advanced qualifications and specialized knowledge. 2. Technical: Positions that need technical expertise or support. 3. Scientific: Roles involving research and scientific analysis within government agencies. The Process of Choice Internal: Recruitment and promotion of candidates from within the government agency External: Hiring candidates from outside the government agency Type of Recruitment: Open Type: All qualified candidates, whether internal or external, can apply for the position, ensuring a broad pool of applicants. Closed Type: Recruitment is limited to a specific group, often internal employees, to fill the position. 15 | P a g e III.II Civil Service Eligibility These competitive examinations affirm the merit system as a component of the overall comprehensive recruitment plan and provide the basic criteria for selecting the fit, the excellent, and the progressive. The test is an evidence of the commitment to produce quality civil servants with the best qualifications to render service to the fullest. The civil service eligibility test is divided into two types: Professional: The Professional civil service eligibility test is intended for candidates applying for positions that require a higher level of education and specialized knowledge. Sub-professional: The Sub-professional civil service eligibility test is for positions that require less advanced education and qualification. Special Civil Service Eligibilities and Privileges Granted Under Special Laws: 1. Veteran’s Preference Rating: May be granted to any one child of a veteran who takes the Civil Service examination. 2. Electronic Data Processing Specialists: Civil Service eligibility may be conferred based on qualifications and experience in public service. 3. Barangay Nutrition Scholars: Eligibility equivalent to second grade may be granted after at least two (2) years of continuous and satisfactory service in the barangay. 4. Scientific and Technological Specialists: Civil Service eligibility may be conferred based on qualifications and the requirements of public service. 5. Trades and Crafts Positions: Civil Service eligibility may be granted based on qualifications and satisfactory work performance over a period of time. 6. Career Service Positions (Resolution No. 435): Eligibility is granted to individuals occupying positions in the career service, based on qualifications and successful or satisfactory performance over time. 7. Barangay Officials: Eligibility is granted pursuant to Section 94, subparagraph 1 (d) of the Local Government Code, following specific guidelines. 8. Government Employees with Provisional or Temporary Status: Civil Service eligibility may be granted to those with at least seven (7) years of efficient service. Placement Assistance for Civil Service Eligibles: Grantees of Civil Service eligibility (like honor graduates) are encouraged to participate in training programs through the Human Resources Development Office of the Civil Service Commission (CSC). Three Approaches to Job Placement: 1. Direct Application:The applicant applies directly to the government agency that has job vacancies. 2. Referral Method: Eligible applicants can ask the CSC to refer them to specific government agencies. 16 | P a g e 3. Agency Request: Government agencies request the CSC to provide a list of qualified eligibles from which they can choose. Three Types of Placement Programs: 1. Regular Placement Assistance Program (RPAP): This is a referral program for Civil Service eligibles who directly seek assistance from the CSC. 2. Transfer Assistance Program (TAP): This program helps those already working in a government office but wish to transfer to another unit, usually for reasons like being closer to home or seeking better career opportunities. 3. Brightest for the Bureaucracy Program (BBP): A special placement program for applicants who are exceptionally talented. III.III Compensation and Position Classification Two principles generally underlie the management of personnel in government: 1. Merit system: The merit system ensures that government personnel decisions, such as hiring, promotions, and pay increases, are based on individual qualifications, performance, and competence rather than political connections or favoritism. 2. Equal pay for equal work: This principle mandates that employees performing the same job with similar responsibilities, skills, and qualifications should receive the same level of compensation, regardless of their gender, race, or other non-job-related factors. Position classification: Position classification is the process of categorizing government jobs into different classes or grades based on their duties, responsibilities, and required qualifications. The classification plan: The classification plan is a systematic approach used to define and categorize positions within the government according to their job functions, levels of responsibility, and required qualifications. The Philippine Position Classification System The classes of positions under our classification system are grouped into four main categories: 1. The professional supervisory: The professional supervisory category includes managerial character exercising positions of management of functions of planning, organizing, directing, coordinating, controlling and overseeing the activities of the organization unit or group. 2. The professional non-supervisory: The professional non-supervisory category includes positions performing tasks requiring exercise of a particular profession and those which requires application of knowledge acquired through formal training or which calls for natural, creative and artistic ability or talent in the arts and letters. 3. The sub-professional supervisory: The sub-professional supervisory category includes positions performing supervisory functions over a group of employees engaged in technical, manual, and clerical work requiring training and moderate experience but considerable knowledge of a limited or particular subject matter or skills in the crafts, arts and trades. 17 | P a g e 4. The sub-professional non-supervisory: The sub-professional non-supervisory category includes positions involved in structured work supportive of office or fiscal operations of those engaged in arts, trades, and manual work. Skills acquired through training and experience are important for this category of positions. The updated compensation and position classification system of our government is governed by four basic guidelines: 1. Just and Equitable Wage Rates: Ensure that wage rates and pay differences are fair and justified by the type of work performed. 2. Comparability with Private Sector: Ensure that the compensation for government-owned and controlled corporations, including financial institutions, is competitive with similar private sector roles. 3. Budgetary Considerations: Manage salary and wage expenditures within the constraints of the national budget. 4. Periodic Review: Regularly review and adjust compensation rates to reflect changes in the cost of living and inflation. III.IV Allocation of Salary of Grade Levels The salary grade levels in government have been compressed from seventy-nine to thirty three by virtue of Republic Act No. 6758. All positions in government, whether elective or appointive, full time or part time, government corporations and financial institutions of government, are allocated to position titles and salary grades in accordance with the Index of Occupational Services established by the Department of Budget and Management. The Department of Budget and Management is hereby authorized to determine the officials who are of equivalent rank to the foregoing Officials, where applicable, and may be assigned the same Salary Grades based on the following guidelines: GRADE 33 - This Grade is assigned to the President of the Republic of the Philippines as the highest position in the government. No other position in the government service is considered to be of equivalent rank. GRADE 32 - This Grade is limited to the Vice-President of the Republic of the Philippines and those positions which head the Legislative and Judicial Branches of the government, namely: the Senate President, Speaker of the House of Representatives and Chief Justice of the Supreme Court. No other positions in the government service are considered to be of equivalent rank. GRADE 31 - This Grade is assigned to Senators and Members of the House of Representatives and those with equivalent rank as follows: the Executive Secretary, Department Secretary, Presidential Spokesman, Ombudsman, Press Secretary, Presidential Assistant with Cabinet Rank, Presidential Adviser, National Economic and Development Authority Director General, Court of Appeals Presiding Justice, Sandiganbayan Presiding Justice, Secretary of the Senate, Secretary of the House of Representatives, and President of the University of the Philippines. GRADE 30 - Positions included are those of Department Undersecretary, Cabinet Undersecretary, Presidential Assistant, Solicitor General, Government Corporate Counsel, Court Administrator of the Supreme Court, Chief of Staff of the Office of the Vice-President, National Economic and Development Authority Deputy Director General, Presidential Management Staff Executive Director, Deputy Ombudsman, Associate Justices of the Court of Appeals, Associate Justices of the Sandiganbayan, Special Prosecutor, University of the Philippines Executive Vice-President, 18 | P a g e Mindanao State University President, Polytechnic University of the Philippines President of and President of other state universities and colleges of the same class. REFERENCES Corpuz, Crispina R. (2013) Human Resource Management https://www.studocu.com/ph/document/eastern-visayas-state-university/masters-in-public- resource-management/human-resource-management-crispina-corpuz/64429313 Tendero, Avelino P. (2000) Theory and Practice of Public Administration in the Philippines 19 | P a g e 20 | P a g e 21 | P a g e

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