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HUMAN RESOURCE PRODUCTIVITY

Placement Obstacles To Productivity

Quitting early: One obstacle to a productive and satisfied

workforce is that employees are more likely to quit during their first
few months than at any other time in their employment.

Dissonance reduction: The difference between what one

anticipates and what one encounters is called cognitive
dissonance.

New employee turnover: Turnover is expensive. Beside recruiting

and selection expenses, the costs associated with creating new
employee records in the HR department, establishing payroll
records in accounting, giving new employees training and providing
them with safety equipment are lost when employees leave.

Orientation and learning: Recipients of the new program learned

their jobs more quickly.

Socialization is the ongoing process through which an employee

begins to understand and accept the values, norms and beliefs held
by others in the organization.

• Socialization through orientation

Orientation programs are particularly effective socialization tools

because they are used among new employees.

• Content and responsibility for orientation

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Formal orientation programs usually rely on the HR department

and the supervisor.

• Employee handbook contains the coverage of

organizational issues and fringe benefits often is
supplemented with an employee handbook that
describes company policies, rules, regulations, benefits
and other items.

• Supervisory role

In addition to the HR department’s presentation, the orientation is

continued by the employee’s supervisor, who handles the job-
related introductions

• Opportunities and pitfalls

A helpful supplement to the newcomer orientation is the

assignment of a buddy.

• Benefits of orientation programs

Reducing employees' anxieties. With less anxiety, newcomers can

learn their duties better.

EMPLOYEE PLACEMENT

 PLACEMENT: Placement is the assignment or

reassignment of an employee to a new job. most
placement decisions are made by line managers.

TYPES OF PLACEMENT

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1. PROMOTIONS

2. TRANSFERS

3. DEMOTIONS

A promotion occurs when an employee is moved from a job to

another position that is higher in pay, responsibilities and/or
organizational level.

 Merit based promotions: it occurs when an employee

is promoted because of superior performance in the
current job.

Seniority based promotions: in some situations, the most senior

employee gets the promotion.

TRANSFERS AND DEMOTIONS

 Transfers: they occur when an employee is moved from

one job to another position that is relatively equal in pay,
responsibility and/or organizational level.

 Demotions: they occur when an employee is moved

from one job to another position that is lower in pay,
responsibility and/or organizational level.

• Job-Posting Programs: Job-posting programs inform

employees about unfilled job openings and
qualifications. The announcement of an opening invites
qualified employees to apply.

• Separations
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Separation is a decision that the individual and the organization

should part.

Separations can take several forms such as:

 Temporary leaves of absence

 Attrition

 Layoffs

 Termination

SEPARATION TYPES

• Temporarily leave of absence: employees sometimes

need to leave their jobs temporarily. the reasons may
include medical, family, educational, recreational and
other motives.

• Attrition: normal separation of people from an

organization as a result of resignation, retirement or
death. It is initiated by the individual worker not by the
company.

• Layoffs: entail the separation of employees from the

organization for economic or business reasons.

• Termination: termination is a broad term that

encompasses permanent separation from the
organization for any reason. Usually, this term implies
that the person was fired as a form of discipline.

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ISSUES IN PLACEMENT

Three placement decisions that are overriding concerns to HR

departments are:

 Effectiveness - The effectiveness of a placement

decision depends on minimizing disruption to the
employee and the organization

 Legal compliance - For many years employment

relationships that were not based on a formal written
contract were employment at will relationships.
Employment at the will of both party and continued by
mutual agreement.

 Prevention of separations - When HR department can

prevent their organizations from losing valuable human
resources, the money invested in recruitment, selection,
orientation and training is not lost.

4 COMPENSATION, BENEFITS AND SECURITY

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Compensation is the total cash and non-cash payments that you

give to an employee in exchange for the work they do for your
business.

COMPENSATION SYSTEM IN THE PHILIPPINES

Wage and Wage-Related Benefits Overview

– At least the minimum wage per region and/or sector

– Holiday wage and overtime pay for work during holidays or rest
days

– Overtime pay when working in excess of 8 hours

– Service Incentive Leave: 5 days of vacation per year of service

– Parental leaves (Maternity, Paternity and Solo parent leaves)

– Other Leaves

– 13th month

– Separation pay

1. MINIMUM WAGE

The Wage Rationalization Act, Republic Act No. 6727, sets the
minimum wage rates applicable per region, province and industry
sector.

2. OVERTIME RATE

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HOURLY RATE BASED ON MINIMUM WAGE: Php 429/8hrs =

Php 53.625 per hour

. HOLIDAY PAY

There are 12 regular and 3 special non working holidays (see

above) in the Philippines.

12 regular holidays are (Republic Act No. 9849):3 special non-

working days:

– New Year’s day - Ninoy Aquino Day

– Maundy Thursday - All Saints Day

– Good Friday - Last Day of the Year

– Araw ng Kagitingan – Labour Day

– Independence Day – National Heroes’ Day

– Eidl Fitr – Eidl Adha

– Bonifacio Day – Christmas Day – Rizal Day

4. NIGHT SHIFT DIFFERENTIAL PAY

For work done between the hours of 10pm to 6am, employees are
entitled to Night Shift Differential (NSD), which represents an
additional 10% to the regular wage for each hour of work
performed.

5. SERVICE INCENTIVE LEAVE

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Every employee who has rendered at least one (1) year of service
is entitled to a Service Incentive Leave (SIL) of five (5) days with
pay. SIL may be used for sick and vacation leave purposes.

6. PARENTAL LEAVES

7. 13th MONTH PAY

The 13th month pay must be at least 1/12th of the total basic salary
of each employee earned during that calendar year.

8. RETIREMENT PAY

All employees from the private-sector may retire from age 60 up to

age 65, at which retirement becomes compulsory, and must have
served the establishment for at least 5 years.

9. DE MINIMIS BENEFITS

• Base pay is the initial pay you give your employees. The
base pay rate is essentially the minimum amount an
employee can expect to receive before taxes and other
deductions.

• Base salary vs. total compensation

An employee’s base pay does not include compensation

that might raise the wages above the base level.
• Gross pay is the amount an employee earns before
taxes and other deductions are subtracted. Net pay is

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the amount the employee takes home after everything is

subtracted.
How to determine compensation of employees?

• There are many ways to determine an employee’s

compensation. No matter how you determine employee
wages, you should consider internal equity. Internal
equity is when you compare the positions in your
business to ensure fair pay

1. Research

Do research on what other businesses pay their employees.

Compare your business to other businesses in the area

2. Accomplishments

If a particular employee excels at their job, you can pay them

increased wages. Or, you might pay an employee more if they
received more education or advanced training related to their job.

3. Previous wages

You base an employee’s wages off their wages at their previous

job. You might match the previous wages or offer an increase.

4. Available funds

What does compensation mean for your bottom line? You need to
calculate carefully how much you can spend on employees.

5. Benefits

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By offering desirable benefits, you might be able to offer a lower

base pay to employees.

Direct Forms of Compensation

1. Salary

This type of wage is customarily a set sum of remuneration over a

defined period of time.

2. Hourly

This is a dollar amount per hour of service to the employer, more

commonly used to compensate unskilled and skilled laborers in the
workforce.

3. Commission

When compensation is based on volume or some form of

performance, this is known as commission-based remuneration.

4. Bonuses

Bonuses are used to increase performance from the employee.

This is a variable type of remuneration and is more commonly
found with salaried staff to incentivize them for a particular goal
whether time or volume based.

5. Benefits

This particular group is traditionally thought of in the form of

insurances (health, dental, life, disability and vision)
and retirement.

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6. Equity Based Programs

Rarely found in the small business world for several reasons.

These types of indirect compensation tie the employee to the
company via ownership.

Fringe Benefits and Services

Fringe benefit is a special form of benefits you provide your

employees in addition to their salaries and wages.

Sample of fringe benefits

 Housing Expense account

 Vehicle of any kind

 Housing personnel, such as maid, driver and others

 Interest on loan at less than the market rate to extent of

the difference between the market and actual rate
granted

 Membership fees, dues and other expenses borne by

the employer for the employees in social athletic clubs or
other similar organizations

 Expanses for foreign travel

 Holiday and vacation expenses

 Educational assistance to the employees or his

dependents; and

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 Life or Health insurance and other non-life insurance

premiums or similar amounts in excess of what the law
allows

Employee Safety

• Employee Retention

An unsafe environment will probably make workers feel

unappreciated.

• Company Finances

A company could run into serious financial trouble if an employee

sues because of workplace hazards or a resulting injury.

• Company Productivity

Healthy employees who feel safe and comfortable in their work

environment will work more productively than employees who
become injured or sick in the workplace.

• Company Reputation

A company will quickly develop a reputation as negligent if it allows

employees to work among avoidable hazards.

Ways to Encourage Employee Health

1. Promoting Regular Exercise to your Workforce

2. Promoting Good Nutritional Habits among your

Employees

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3. Promoting Cleanliness in the Workplace

4. Promoting Social Equality and Harmony

5. Improving the Mental Health of your Employees

6. Creating a Smoke-Free Workplace

7. Reducing Alcohol Consumption

8. Providing Health and Wellness Incentives and

Programs

9. Preventing Health Problems in General

5 Management and Labor Relations

Employee relations refer to a company's efforts to manage

relationships between employers and employees.

Employee relations programs are typically part of a human

resource strategy designed to ensure the most effective use of
people to accomplish the organization's mission. Human resource
strategies are deliberate plans companies use to help them gain
and maintain a competitive edge in the marketplace. Employee
relations programs focus on issues affecting employees, such
as pay and benefits, supporting work-life balance, and safe
working conditions.

Stakeholders are people who are committed, financially or

otherwise, to a company and are affected by its success or failure.

The four pillars of employee relations

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1. Open communication - Employees spend the majority

of their days at work so it’s important that they feel
comfortable with their manager and fulfilled in their
tasks.

2. Show recognition - Simple gestures of thanks and kind

words go a long way. Longer than you might think.

3. Constant feedback - Offering frequent feedback to your

employees on their great work and constructive criticism
on where they can improve is essential in nurturing a
positive relationship with your team.

4. Invest in your employees - Show employees that you

care about them as people, not just as 9-5 workers.

How to improve employee relations?

1. Stop micromanaging

When a leader micromanages instead of trusting their team and

giving their employees autonomy, the employee risks becoming
disengaged.

2. Don’t play favourites

It is generally obvious when an employer chooses favorites, and it

can completely demoralize the rest of the team, ruining employee
relations.

3. Be as clear as possible

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Again, this ties back to good communication, but employees need

to clearly understand their job roles, and what’s expected of them.

4. Collect ideas from the team

You want to make employees feel like they are part of the team,
and part of the decision making process.

 Share the company vision

Employees need to feel like what they’re doing is important.

Labor unions are the primary means workers have for advancing
their collective interests at the workplace.

Union-Management Relations

Functions of Labor Unions

1. Guardian of interest of an organization’s employees

2. Organized to mediate or facilitate grievances of

employees to various factors that affect or in effect
cause disillusions or chaos to the workforce

3. Ensure security of labor rights of the workforce

Unions in the Philippines are classified into two (2) types or

sectors; PUBLIC and PRIVATE.

 PUBLIC SECTOR UNION or PUBLIC EMPLOYEES

ORGANIZATION refers to any organization, union or
association of employees in the agencies of government
which exist in whole or in part for the purpose of

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collective negotiations or mutual aid, interest,

cooperation and protection.

 PRIVATE SECTOR UNION or LABOR

ORGANIZATION refers to any union or association of
employees in the private sector which exist in whole or in
part for the purpose of collective bargaining or mutual
aid, interest, cooperation, protection or other lawful
purposes.

CONFLICT DEFINITION

Conflict exists when disagreements lead to arguments and

struggles between people with competing ideas and/or personal
interests.

CONFLICT MANAGEMENT TECHNIQUES AND BEST

PRACTICES

Techniques below aim to help managers to understand the

complexities of conflict management.

1. Be aware of conflict
2. Take a considered and rational approach to conflict
3. Investigate the situation
4. Decide how to tackle the conflict
5. Let everyone have their say
6. Identify options and agree on a way forward
7. Implement what has been agreed
8. Evaluate how things are going
9. Consider preventative strategies for the future

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