Staffing

Managers often consider human resources as their organization’s most important resource. Very
few administrators would argue with the fact that human resources are very important for the
efficient and effective operation of a company. To emphasize their importance, human resources
are also called human capital, intellectual assets, or management or company talents. These
terms imply that human resources are the drivers of the organization’s performance; hence,
staffing must be considered as a crucial function of managers.

Lesson 1: Definition and Nature of Staffing

The number of managerial personnel or nonmanagerial human resources needed by an
organization depends on the size and complexity of its operations, its plans for branching out or
increasing products, and turnover rates of both types of human resources, among others. Besides
considering their number, the qualifications for the individual positions must be identified, so
that the best-suited individuals for the job positions may be selected for hiring.

The Management and Nonmanagerial Human Resources Inventory

Awareness of the management potential within an organization can be accomplished with the use
of an inventory chart, also called management succession/replacement chart. This chart is similar
to the general organization chart used by the company but limited to managerial positions and
the names of potential successors (promotable, satisfactory but not promotable, dismissed, etc)
Recruitment by external means may follow if there are no qualified successors.

The need for nonmanagerial human resources may be ascertained by the use of a general
organization chart to identify vacant job positions that need to be filled or by direct reports from
department/unit heads or supervisors. Managers need not make detailed succession planning, as
these job positions are less sensitive. Suggestions for internal replacements of successors for
vacant nonmanagerial are usually done as the need arises. External recruitment also follows if no
one within the organization is fitted for the job position that was declared vacant.

External and Internal Forces Affecting Present and Future Needs for Human Resources

Present and future needs for manager and other human resources are affected by both external
and internal forces. External forces include economic, technological, social, political and legal
factors. For example, economic progress in a particular country may bring about increased need
and wants among people, resulting, in turn, in increased demand for certain products, followed
by the expansion of the company and its workforce, as well as increased demand for managers.
Information explosion coming from the Internet, from business publications, or from the labor
department of countries may give either encouraging or discouraging long-term trends in the
world labor market and, thus, cause an increase or a decrease in demand for managers and other
human resources.

The firm’s goal and objectives, technology, the types of work that have to be done, salary scales,
and the kinds of people employed by the company, are among the internal factors or forces that
affect staffing. For example: salary scales offered by a company may not be high enough to
attract personnel who are really qualified for the job; also, this may encourage fast managerial
and labor turnover.
Lesson 2: Recruitment
In the event of a job opening, administrators must be careful when recruiting and choosing who
to bring into the organization. They must see to it that their new recruit possesses the knowledge
and skills needed to be successful in helping their company achieve their set goals and objectives
and that he or she is suited for the job position and job design.

Recruitment may either be external or internal. In external recruitment, outside sources are
considered in the process of locating potential individuals who might want to join the
organization and encouraging them to apply for actual or anticipated job vacancies. Unsolicited
applications and referrals from employment agencies and schools are examples of sources
outside the company from which management could select an applicant who best fits the job
opening.

In internal recruitment, filling job vacancies can be done through promotions or transfer of
employees who are already part of the organization. In other words, recruitment is from within
the organization.

Methods of External and Internal Recruitment

External recruitment methods include:

Advertisements – through websites, newspapers, trade journals, radio, television, billboards,

posters, e-mails, and others

Unsolicited applications – received by employers from individuals who may or may not be
qualified for the job openings.

Internet recruiting – there are thousands of independent job boards on the Web commonly used
by job seekers and recruiters to gather and disseminate job opening information

Employee referrals – are recommendations from the organization’s present employees who
usually refer friends and relatives who they think are qualified for the job.

Executive search firms – also known as “head hunters;” they help employers find the right
person for a job. Such firms seek out candidates with qualifications that match the requirements
of the job openings that their client company hopes to fill.

Educational institutions – good sources of young applicants or new graduates who have formal
training but with very little work experience; for technical and managerial positions, schools may
refer some of their alumni who may have the necessary qualifications needed for the said job
positions.
Professional associations – may offer placement services to their members who seek
employment; employers may make use of the listings that they publish in their journals regarding
members who are available for possible recruitment of hiring.

Labor unions – possible sources of applicants for blue-collar and professional jobs.

Public and private employment agencies – may also be good sources of applicants for different
types of job vacancies; public employment agencies usually offer free services while private
ones charge fees from both the job applicant and the employers soliciting referrals from them.

As earlier mentioned, internal recruitment is that which is done from within the organization.
Most managers prefer to follow a policy of filling job openings through promotions and transfer.
In this way, they lessen the chances of losing the organization’s top performers. Recruitment
may be done by: using company bulletin boards, company intranet, company newsletters, and
recommendations from department or unit heads, among others.

Both external and internal recruitment have their own advantages and disadvantages.

External Recruitment Advantages

1. Advertising and recruiting through the Internet reach a large number of possible
applicants and, therefore, increase the possibility of being able to recruit applicants suited
for the job.
2. Applicants who submit applications and resumes through their own initiative are believed
to be better potential employees because they are serious about getting the job.
3. Employee referrals from outside sources are believed to be high quality applicants
because employees are generally hesitant to recommend persons who are not qualified for
job openings.
4. Executive search firms usually refer highly qualified applicants from outside sources
because they make an effort to check applicants’ qualifications before recommending
them to client firms who pay for their services.
5. Educational institutions know the capabilities and qualifications of their graduates, hence,
increasing the chances of their ability to refer qualified applicants to potential employers.

External Recruitment Disadvantages

1. The cost and time required by external recruitment are the typical disadvantages of using
this recruitment method. Advertising job openings and the orientation and training of
newly hired employees from outside sources, as well as sorting out large volumes of
solicited or unsolicited job applications present challenges in budgeting time and money.
 2. Another disadvantage of external recruitment is the possibility of practicing bias or
entertaining self-serving motives in the referral of friends and relatives by current
employees and in the recommendation of private employment agencies of job applicants.

Internal Recruitment Advantages

1. Less expenses are required for internal recruitment advertising; newsletter, bulletin
boards, and other forms of internal communication may disseminate information to
current employees interested to apply for job openings within the company.
2. Training and orientation of newly promoted or transferred current employees are less
expensive and do not take too much time since they are already familiar with company
policies.
3. The process of recruitment and selection is faster because the candidate for transfer or
promotion is already part of the organization.

Internal Recruitment Disadvantages

1. The number of applicants to choose from is limited.

2. Favoritism may influence a manager to recommend a current employee for promotion to
a higher position.
3. It may result in jealousy among other employees who were not considered for the
position. Some may also accuse the management of bias for choosing an employee who
is perceived to be less qualified for the job opening.
Lesson 3: Selection
In many companies, selection is continuous because of fast turnover, resulting in vacancies that
have to be filled; another reason for this is the review of applicants who were placed in the
waiting list. The selection process typically includes the following steps:

1. Establishing the selection criteria – Selecting human resources in an organization

requires understanding of the nature and purpose of the job position which has to be
filled. Job design must be based on the objective analysis of position requirements and
must meet both organizational and individual needs. Skills must also be considered
depending on the job position and its position in the organizational hierarchy.
2. Requesting applicants to complete the application form – Application forms must be
completed because these provide the needed information about the applicant.
Management will fill it easier to decide whether an applicant meets the minimum
requirements for experience, education, etc., if the application forms are accurately filled
out by the applicant.
3. Screening by listing applicants who seem to meet the set criteria – This involves the
preparation of a shortlist of applicants who meet the minimum requirements of the job
position to be filled; it is done to avoid wasting time by conducting interviews with
applicants who do not meet the set criteria for the job opening.
 4. Screening interview to identify more promising applicants – Here, a shortlist of
applicants is prepared. Included in the list are the applicants who will be asked to undergo
formal interview by the supervisor/manager; applicants who are deemed to be the most
fitted for the job opening belong in this shorter list.
5. Interview by the supervisor/manager or panel interviewers – Through formal
interview of the most promising applicants, other characteristics of the applicants may be
revealed or observed by the supervisor/manager or panel interviewers. Such
characteristics include the applicants’ self-confidence, positive or negative self-esteem,
honesty, ability to relate well with others, and positive or negative life experiences which
may affect his or her job performance, among others. Interviewers must be trained so that
they will know what to look for.
6. Verifying information provided by the applicant – To make sure that the applicant has
not given false information about himself or herself, verification is necessary.
Background checking must also be done to avoid the hiring of applicants with criminal
record and to ascertain that he or she has good moral character.
7. Requesting the applicant to undergo psychological and physical examination –
Having a healthy mind and a healthy body are important for good job performance.
Hence, applicants must be requested to undergo psychological and physical examinations
prior to hiring.
8. Informing the applicant that he or she has been chosen for the position applied for –
Informing the applicant may be done verbally or in writing by the managers who give the
final decision regarding the applicant’s hiring. Final instruction regarding the company’s
rules and regulations for hiring an applicant must be given in this step.

Interviews are important in determining the qualifications of an applicant and gauging his or her
ability to perform a job. Interviews may come in different forms.

Types of Job Interviews

Structured interview – the interviewer asks the applicant to answer a set of prepared questions
– situational, job knowledge, job simulation, and worker requirement questions.

Unstructured interview – the interviewer has not interview guide and may ask questions freely

One-on-one interview – one interviewer is assigned to interview the applicant

Panel interview – several interviewers or a panel interviewer may conduct the interview of
applicants; three to five interviewers take turns in asking questions.

Similarly, there are different kinds of employment tests administered to measure or test an
applicant’s specific skill or capacity.
Types of Employment Tests

Intelligence test – designed to measure the applicant’s mental capacity; tests his or her cognitive
capacity, speed of thinking, and ability to see relationships in problematic situations

Proficiency and aptitude tests – tests his or her present skills and potential for learning other
skills

Personality tests – designed to reveal the applicant’s personal characteristics and ability to relate
with others

Vocational tests – tests to show the occupation best suited to applicant

Limitation of the Selection Process

In reality, there is no one perfect way to select a firm’s human resources. Predicting performance
is difficult as there is a difference between what individuals can do at present and what they will
do in the future. This is because a person’s needs and wants change, and so do an organization’s
climate and environment. The fact that many selection approaches and tests have been devised is
enough proof that management experts are still in search of what could be done to improve the
present selection process.
Lesson 4: Training and Development
Both training and development are essential to the success of today’s organizations. In order to
have an edge over their rival organizations, managers must see to it that their human resources
have the necessary knowledge and expertise; training and development work toward this end by
providing continuous learning activities and opportunities. The typical scope of training covers
the following procedures:

Conducting the Training Needs Assessment

Training needs assessment must be done systematically in order to ascertain if there really is a
need for training. Managers must first try to observe the business condition and economic,
strategic, and technological changes that are happening in the organization’s environment before
proceeding to the analyses of the organization, tasks, and persons/individuals, as all these are
determinants of training types required for the maintenance of the firm’s stability.

Examples of organization analyses include the analyses of effects of downsizing, branching out,
conflicts with rival companies, and others that may require training or retraining of employees.

Task analysis involves, for example, a checking of job requirements to find out if all these are
being done to meet company goals. If not, this may be a go-signal to train or retrain personnel.

Person analysis determines who among the employees need training or retraining. This is to
avoid spending for training of employees who no longer require it. For ex: A department
manager pirated from a rival company to occupy a vacancy in one of the organization’s
departments in the same capacity (department manager), may not need managerial skills training
anymore.

Designing the Training Program

This phase involves the stating of the instructional objectives that describe the knowledge, skills,
and attitudes that have to be acquired or enhanced to be able to perform well. In short, these are
performance-centered objectives that must be aligned with the firm’s objectives. Another thinkg
to be considered is trainee readiness and motivation. This refers to the trainees’ background
knowledge and experience, so that the training to be given to them will not go to waste. Different
learning principles, like using modeling, feedback and reinforcement, massed vs distributed
learning, and others, influence training design’s effectiveness.
Implementing the Training Program

Various types of training program implementation include: on-the-job training, apprenticeship

training, classroom instruction, audio-visual method, simulation method, and e-learning.

Evaluating the Training

The positive effects of the training program may be seen by assessing the participants’ reactions,
their acquired learnings, and their behavior after completing the said training. The effects of
training may also be reflected by measuring the return on investment (ROI) or through the
benefits reaped by the organization, which were brought about by the training investment.
Employee Development

Developing employees is a part of an organization’s career management program and its goal is
to match the individual’s development needs to the needs of the organization. The individual
employee must know himself or herself well, identify his or her own knowledge, skills, abilities,
values and interests, so that he or she could also identify the career pathway he or she would like
to take. Although he or she is encouraged to take responsibility for his or her own career, the
organization must, at regular intervals, provide him or her with the results of his or her
performance evaluations and the organization’s plans or direction that may be related to his or
her own career plans; thus, establishing a favorable career development climate for him or her,
which may lead, ultimately to blending of his or her career development goals with
organizational goals.
Lesson 5: Compensation/Wages and Performance Evaluation
Compensation/wages and performance evaluation are related to each other because the
employees’ excellent or poor performance also determines the compensation given to them, after
considering other internal and external factors like the actual worth of the job, compensation
strategy of the organization, conditions of the labor market, cost of living, and area wage rates,
among others.

Compensation can come in different forms. It may be direct, indirect or nonfinancial.

Types of Compensation

Direct compensation – includes workers’ salaries, incentive pays, bonuses, and commissions.

Indirect compensation – includes benefits given by employers other than financial

remunerations; for example: travel, educational and health benefits, and others.

Nonfinancial compensation – includes recognition programs, being assigned to do rewarding

jobs, or enjoying management support, ideal work environment, and convenient work hours.

Connecting Compensation to Organizational Objectives

Worker compensation/wages had tremendously changed in the 21st century due to increased
market competitions (both local and global), required skills from workers, and changes in
technology, among others. Along with these, organizations’ pay philosophies have also changed.
Instead of paying employees based mainly on their job positions or titles, they are now given pay
according to their individual competencies or according to how much they could contribute or
have contributed to their company’s success. Wage experts now prepare compensation packages
that create value for both the organization and its employees.
Compensation: A Motivational Factor for Employees

Compensation pay represents a reward that an employee receives for good performance that
contributes to the company’s success; in relation to this, the following must be considered:

Pay Equity – related to fairness; the Equity Theory is a motivation theory focusing on
employees’ response to the pay that they receive and the feeling that they receive less or more
than they deserve.

Employees generally feel that their pay must be commensurate to the effort exerted in the
performance of their job. In other words, pay equity is achieved when the pay given to them by
their employers is equal to the value of the job performed; thus, this motivates them to perform
well and to do their jobs to the best of their abilities.

Expectancy Theory – another theory of motivation which predicts that employees are motivated
to work well because of the attractiveness of the rewards or benefits that they may possibly
receive from a job assignment.

The employee’s perception of the compensation or pay attached to a job position is an

important factor in ascertaining the motivational value of compensation.

Bases for Compensation

Employees may be compensated on the following bases:

Piecework basis – when pay is computed according to the number of units produced

Hourly basis – when pay is computed according to the number of work hours rendered

Daily basis – when pay is computed according to the number of work days rendered

Weekly basis – when pay is computed according to the number of work weeks rendered

Monthly basis – when pay is computed according to the number of work months rendered

Compensation rates are influenced by internal and external factors. Among the internal
factors are the organization’s compensation policies, the importance of the job, the employees’
qualifications in meeting the job requirements, and the employer’s financial stability.

External factor, on the other hand, include local and global market conditions, labor
supply, area/regional wage rates, cost of living, collective bargaining agreements, and national
and international laws, among others.
Purposes of Performance Evaluation: Administrative and Developmental

Improving individual job performance through performance evaluation is just one of the reasons
why employees are subjected to assessments on a continuous basis. There are other purposes
behind employee assessment that are beneficial to both the company and the employees, these
are:

Administrative Purposes – These are fulfilled through appraisal/evaluation programs

that provide information that may be used as basis for compensation decisions, promotions,
transfers, and terminations.

Human resource planning may also make use of it for recruitment and selection of
potential employees.

Developmental Purposes – These are fulfilled through appraisal/evaluation programs

that provide information about employees’ performance and their strengths and weaknesses that
may be used as basis for identifying their training and development needs. Through this
approach, the workers become more receptive to the explanations given by the organization’s
management regarding the importance of high evaluations at regular intervals – that these are
conducted to improve their competencies in order to prepare them for future job assignments.

Different performance appraisal methods are used depending on the information an

evaluator aims to find out.

Performance Appraisal Methods

Methods of evaluating workers have undergone development in order to adapt new legal
employment requirements and technical changes. Some appraisal methods in use today are the
following:

Trait methods – performance evaluation method designed to find out if the employee
possesses important work characteristics such as conscientiousness, creativity, emotional
stability, and others

Graphic rating scales – performance appraisal method where each characteristic to be

evaluated is represented by a scale on which the evaluator or rater indicates the degree to which
an employee possesses that characteristic

Forced-choice method – performance evaluation that requires the rater to choose from
two statements purposely designed to distinguish between positive or negative performance; for
example: works seriously – works fast; shows leadership – has initiative
 Behaviorally anchored rating scale (BARS) – a behavioral approach to performance
appraisal that includes five to ten vertical scales, one for each important strategy for doing the
job and numbered according to its importance

Behavioral observation scale (BOS) – a behavioral approach to performance appraisal

that measure the frequency of observed behavior

Why Some Evaluation Programs Fail

Performance appraisals (such as manager/supervisor appraisal, self-appraisal, subordinate

appraisal, customer appraisal, peer appraisal, team appraisal, or 360-degree appraisal) may
sometimes fail due to various reasons including the following:

 Inadequate orientation of the evaluates regarding the objectives of the program

 Incomplete cooperation of the evaluates (e.g. proper answering of evaluation
questionnaire)
 Bias exhibited by evaluators
 Inadequate time for answering the evaluation forms
 Ambiguous language used in the evaluation questionnaire
 Employee’s job description is not properly evaluated by the evaluation questionnaire
used
 Inflated ratings resulting from evaluator’s avoidance of giving low scores
 Evaluator’s appraisal is focused on the personality of the evaluate and not his or her
performance
 Unhealthy personality of the evaluator
 Evaluator may be influenced by organizational politics
Lesson 6: Employee Relations
Employee relations applies to all phases of work activities in organizations, and manager, to be
effective, must be able to encourage good employee relations among all human resources under
his or her care. Employees/workers are social being who need connections or relations with other
beings – other employees/workers – who are capable of giving them social support as they carry
out their tasks in the organization where all of them belong. Talking to a coworker, perceived to
be a friend, or working on a delicate task with others can be comforting during times of stress,
fear, or loneliness. When these negative feelings are overcome it is expected that employees will
be able to work better toward the achievement of their organization’s goals.

Effective Employer Relations and Social Support

Social support Is the sum total of perceived assistance or benefits that may result from effective
social employee relationships. The quantity and quality of an employee’s relationship with others
determine social support (esteem support, informational support, or financial support). In short,
social support and effective employee relations must always go together like “a horse and
carriage,” where one would be useless without the other. Therefore, it is safe to say that without
social support, effective employee relations is not possible, and without effective social
employee relationships, social support, likewise, is not possible.

Below are some barriers to good employee relations.

 Anti-social personality; refusal to share more about oneself to co-employees; being a

loner
 Lack of trust in others
 Selfish attitude; too many self-serving motives
 Lack of good self-esteem
 Not a team player
 Being conceited
 Cultural/subcultural differences
 Lack of cooperation
 Communication problems; refusal to listen to what others seek to communicate
 Lack of concern for others’ welfare

Here are some ways to overcome barriers to good employee relations:

 Develop a healthy personality to overcome negative attitudes and behavior

 Find time to socialize with coworkers
 Overcome tendencies to be too dependent on electronic gadgets
  Develop good communication skills and be open to others’ opinions
 Minimize cultural/subcultural tension

Three Types of Employees

Engaged: employees who work with passion and feel a deep connection with their company;

:they drive innovation and move the organization forward

Not engaged: employees who are essentially ‘checked out’

: they put time, but not energy or passion, into their work

Actively employees who are not only unhappy at work, but also act out their unhappiness

Disengaged they undermine what their engaged coworkers accomplish

Lesson 7: Employee Movements
A labor union is a formal union of employees/workers that deals with employers, representing
workers in their pursuit of justice and fairness and in their fight for their collective or common
interests.

Employees/workers unionize because of financial needs, unfair management practices, or

social and leadership concerns.

a. Financial needs – complaints regarding wages or salaries and benefits given to them by
the management are the usual reasons why employees join labor unions
b. Unfair management practices – perceptions of employees regarding unfair or biased
managerial actions are also reasons why they join mass movements; examples of lack of
fairness in management are favoritism related to promotion and giving of training
opportunities and exemption from disciplinary action
c. Social and leadership concerns – some join unions for the satisfaction of their need for
affiliation with a group and for the prestige associated with coworkers’ recognition of
one’s leadership qualities

Steps in Union Organizing

Terry Moser, an expert union organizer, was credited by Snell and Bohlander (2011) for the
following union-organizing steps:

Step 1. Employee/union contact – To explore unionization possibilities, employees weigh the

advantages and disadvantages of seeking labor representation while the union officers gather
more data about the employees’ complaints, as well as data about the employer’s management
styles, financial stability, policies, etc. These actions by employees and union officers are
necessary to build a case against the employer and a defense for the employees’ decision to
unionize.

Step 2. Initial organizational meeting – This is conducted to attract more supporters and select
potential leaders among the employees who can help the union organizers. Information or data
obtained in Step 1 will be used by the organizers to meet the employees’ need to explain the
means to accomplish their goals.

Step 3. Formation of in-house organizing committee – This starts with identification of

employees who are ready to act as leaders in campaigning for their goals, in trying to get the
interest of the other employees to join their movement, and in convincing employees to sign an
authorization card to show their willingness to be represented by a labor union in collective
bargaining with their employer. The strength of the union is shown by the number of employees
who signed the authorization card. At least 30 employees must sign the said card before the
National Labor Relations Commission (NLRC) approves the holding of a representation election.
Step 4. If a sufficient number of employees support the union movement, the organizer requests
for a representation election or certification election – A representation petition is filed with the
NLRC asking for the holding of a secret ballot election to determine the employees’ desire for
unionization. Before the election, leaders campaign for employees’ support of the election and
encourage them to cast their votes. Intense emotions are shown by employees, the labor group
and the employers during this period.

Step 5. End of union organizing – When the sufficient number of votes is garnered, the NLRC
certifies the union as the legal bargaining representative of the employees. Contract negotiations
or collective bargaining agreement (CBA) negotiations follow the certification. The CBA
process involves the following procedures:

a. Prepare for negotiations – Data to support bargaining proposals are collected and
arranged in an orderly manner by both parties – the union and the employer’s groups.
This is followed by the selection of the members of their respective bargaining teams.
Usually, each side has four to six representatives at the bargaining table. The chief
negotiator for the union is the union president while the chief negotiator for management
is the organization’s vice president or the labor relations manager. Supporting data to
back up the positions of each group are gathered. Economic data are very important.
Other internal organization data needed include: records of promotions, transfer, overtime
work, grievances, disciplinary actions, and arbitration.
b. Develop strategies – Management proposals are developed and limits of concessions are
determined, while also considering the union’s goals and their possible strike plans. The
union, on the other hand, tries to develop better strategies to convince the management
group to accept its proposals.
c. Conduct negotiations – This consists of bargaining, analyzing proposals, resolving issues
related to the proposals, and remembering to stay within their respective bargaining zone.
If no agreement is reached at this point, a deadlock may result.
The union’s bargaining power may be exercised by holding a strike, picketing, or boycotting the
employer’s products or services. The management’s bargaining power, on the other hand, may
be exercised either by continuing operations or shutting down operations. Another method is by
lockout of its employees, or denying employees the opportunity to work.

Unions and employers may try to resolve bargaining deadlocks by mediation and arbitration.
Mediation is the use of a neutral third party to reach a compromise decision in employment
disputes. Arbitration also uses a neutral third party who resolves the labor dispute by issuing a
final decision in the disagreement.

d. Formalize agreement – After the negotiation process, the union and management groups
have to formalize their agreement. This agreement is a formal binding document which
lists down the terms, conditions, and rules under which employees and managers agree to
operate; clear language must be used in the contract, which has to be ratified by the
majority of the employees. After ratification, all members of the union and the
management bargaining teams as well as the president or chief executive officer of the
organization must sign the document, before its dissemination to all parties concerned.

CBA activities, ideally, must be a continuous process (although it is held every five years in
many companies). Right after the formalization of the agreement and its ratification and signing,
preparations for negotiations for the next CBA must, again, begin. This will allow negotiators to
review weaknesses and mistakes committed during the previous negotiations while these are still
fresh in their minds.

Grievance Procedure

The grievance procedure is a formal procedure that authorizes the union to represent its members
in processing a grievance or complaint.

Such grievance must be expressed orally or in writing to the employee’s immediate supervisor
and the union steward. If the immediate supervisor shows willingness to discuss the complaint
with the employee and the union steward, the grievance may be resolved immediately.

This is possible, especially if the supervisor has formal training in handling grievances. If not
resolved within ten work days, the employee forwards the grievance to the department manager
and the chief steward of the union. Again, resolution of the grievance is possible at this point if
the department manager is willing to discuss the matter with the employee and the Chief
Steward. However, if it remains unresolved, the next step is for the employee to forward the
complaint to the vice president for labor relations and the local union president after 15 work
days. Resolution of the matter is possible, but if nothing happens within 30 work days, the
employee may now forward the complaint, with the aid of local union president, to the NLRC of
the Department of Labor for arbitration. The arbitrator is a neutral third party who resolves the
grievance by issuing a final decision which both parties – the employee, represented by the union
president, and the employer – have to follow.
Lesson 8: Rewards System
Organizations offer competitive rewards systems to attract knowledgeable and skilled people and
to keep them motivated and satisfied once they are employed in their firm. Further, rewards
promote personal growth and development and present fast employee turnover.

Management offer different types of rewards:

Monetary Rewards – rewards which pertain to money, finance, or currency.

a. Pay/salary – financial remuneration given in exchange for work performance that will
help the organization attain its goals; examples: weekly, monthly, or hourly pay,
piecework compensation, etc.
b. Benefits – indirect forms of compensation given to employees/workers for the purpose of
improving the quality of their work and personal lives; health care benefits, retirement
benefits, educational benefits, and others are examples of these
c. Incentives – rewards that are based upon a pay-for-performance philosophy; it establishes
a baseline performance level that employees or groups of employees must reach in order
to be given such reward or payment; examples: bonuses, merit pay, sales incentives, etc.
d. Executive pay – a compensation package for executives of organizations which consists
of five components: basic salary, bonuses, stock plans, benefits and perquisites
e. Stock options – are plans that grant employees the right to buy a specific number of
shares of the organization’s stock at a guaranteed price during a selected period of time

Nonmonetary Rewards – rewards which do not pertain to money, finance, or currency; refer to
intrinsic rewards that are self-granted and which have a positive psychological effect on the
employee who receives them.

a. Award – nonmonetary reward that may be given to individual employees or groups/teams

for meritorious service or outstanding performance; trophies, medals, or certificates of
recognition may be given instead of cash or extrinsic rewards
b. Praise – a form of nonmonetary, intrinsic reward given by superiors to their subordinates
when they express oral or verbal appreciation for excellent job performance.

Definition of terms:

Reward – is something given or done in return, especially in the form of salary, a gift, prize,
incentive pay, benefits, or recompense for merit, service or achievement, and which may have a
motivating effect on the employee.