CHAPTER 1:

TRAINING & DEVELOPMENT IN ORGANIZATIONS

Introduction:

In this competitive world, where nothing is static, every day, an innovation comes into the
market. This made the organization to be dynamic in their business process and keep on
implementing the changes so that they will be competitive in the market. But how can you be
competitive and win in the market? It’s your employees, who will help you to be competitive in the
market. The business owner or HR manager must needs be active and look out for the various
strategies which help the organization to grow in the future.
Large organizations generally provide training to their employees for better utilization of
their skills. Also, they know the importance of training and development impact on the
organization. While in case of SME (Small to Medium Enterprise) they don’t feel much benefit
because they concentrate on every single amount spend on the business.
In training and development process the employees don’t concentrate much on projects in
order to attend the training sessions. That may delay the deadline for the projects. Despite this
fact, a large organization employer doesn’t feel for that, because as employees get highly skilled
the process would be much faster and they can be competitive in the market. With lack of skilled
employees, the process and strategies utilized will make the overall process slow and the quality
may also get affected.

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Human Resuorce group may consider the following:

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What are the benefits of Training and
Development in an organization?

1. Improving Employees’ Performance:

The employee who receives the necessary training is more able to perform in their job.
The training will give the employee a greater understanding of their responsibilities within
their role, and in turn build their confidence. This confidence will enhance their overall
performance and this can only benefit the company.

2. Enhancing Employee satisfaction and morale :

The investment in training that a company makes shows employees that they are
valued. The training creates a supportive workplace. Employees who feel appreciated and
challenged through training opportunities may feel more satisfaction toward their jobs.

3. Addressing Weakness:
Most employees will have some weaknesses in their workplace skills. A training
program allows you to strengthen those skills that each employee needs to improveProviding
the necessary training creates an overall knowledgeable staff with employees who can take

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 over for one another as needed, work on teams or work independently without constant help
and supervision from others.

4. Fostering Growth:
The main aim of any organization is to get development and growth for the effects they
put on. Growth can be achieved if all the workforce of an organization pays equal attention to
development. By providing training to your employees, you’re providing them the space to
learn and grow.

5. Consistency:
Training and development program ensures that employees have a consistent
experience and background knowledge. All employees need to be aware of the expectations
and procedures within the company.

6. Increased productivity and adherence to quality standards

Productivity usually increases when a company implements training courses. Increased
efficiency in processes will ensure project success which in turn will improve the company
turnover and potential market share.

7. Increased innovation in new strategies and products:

Ongoing training and upskilling of the workforce can encourage creativity. New ideas
can be formed as a direct result of training and development.

8. Reducing Turnover:
Initially, when you train your staff, it will cost you time and money. Once the employee
gets skilled in their role they can provide you better revenue than before. It reduces the
frustration level of both the employee and the employer. Expertise brings the quality of the
work and development of the organization.

9. Enhances company reputation and profile:

Having a strong and successful training strategy helps to develop your employer brand
and make your company a prime consideration for graduates and mid-career changes. Training
also makes a company more attractive to potential new recruits who seek to improve their
skills and the opportunities associated with those new skills. Training can be of any kind
relevant to the work or responsibilities of the individual, and can be delivered.
For example, it could include:
*On-the-job learning *In-house Training
*Mentoring schemes *Individual Study

Why You Need To Run A Training Needs Assessment (And How To Do It)

6 Reasons You Need A Training Needs Assessment:

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 Imagine for just a moment that the financial year is coming to a close, and you’ve still got
training and development budget left to spend. How do you decide which people or teams should
receive training, and what kind of training they should receive? Is it a flip of a coin? A toss of the
dice?
You might have considered this spontaneous approach, but you’d never actually do it,
right? Because you know that training isn’t a chance event. Rather, it’s a business expense that
needs to pay off. And this means that the who, when and how of training should be strategic. Your
secret weapon to strategic training decisions? A Training Needs Assessment.

Here are some of the top reasons you should be identifying training needs in your company:

1. Train the Right Employees, With The Right Approach

One of the outputs of the Training Needs Analysis process is a list of who needs what kind
of training. Why is all this important? Because tailoring courses (and their delivery) to each team or
employee in your company is essential for training effectiveness. After all, the more relevant the
content is to the employee, the more likely they are to engage in learning, and the more successful
your training will be.

2. Prioritize Training Needs With The Highest Business Impact

A Training Needs Assessment identifies the specific knowledge and skills that employees
need to become more productive, efficient and innovative in their jobs. And by performing better
in their jobs, employees help the company achieve its strategic goals.
This makes the needs analysis a powerful tool in the face of limited time or budget.
Because by spotting the skill gaps that are affecting the company’s bottom line, you can prioritize
training for the biggest business impact.

3. Identify Tools and Methods You Never Considered Before

One of the steps in a Training Needs Assessment involves surveys, observations and other
forms of evaluation to identify learning obstacles. Of course, this tells the company who needs
more of the old training. But it can also reveal new training approaches that hadn’t been
considered before.

4. Achieve A Greater Return On Investment

Ask any top management on whats the importance of a Training Needs Assessment is, and
they’ll give you 3 capital letters: ROI (Return on Investment). Because they know that training
decisions based on real, measurable skill gaps are more likely to result in learning and performance
improvement, the return on training investment every company is looking for.

5. Engage Staff in Continuous Learning and Development

Employee engagement might not be something you expected to see on this list. But, boy,
does it belong here! Why? Reports have shown that staff who feel their employers listen to and

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acknowledge their input are almost 5 times more likely to feel encouraged to do their best work.
And a Training Needs Assessment is the perfect way to make them feel heard.

More than that, the results of a needs assessment give managers the insights they need to
plan the best development paths for their employees and succession plans for their teams. In
other words, it’s a real win-win.

6. Make Organizational Change an Easy Transition

An old saying is that the only constant in life is change. And the same applies to business.
Because the chances are that your company has already, or will still, adopt a new software
program, restructure a department or shift its strategic vision. So, if you can’t avoid change, how
do you best equip employees for these transitions?

How To Perform A Training Needs Analysis

If by now, you’re not wondering how to conduct a Training Needs Assessment, you haven’t
been paying attention. Because there are lots of solid reasons to start evaluating training needs in
your company today. Here’s how to do it.

1. Set Clear Business Objectives:

First, identify the objectives of training. Is the company’s goal to reduce costs? Improve
innovation? Or is maybe the aim to become more efficient? Understanding the performance
areas that employees need to improve on in order to help the company achieve its goals is
the key to the next step.
2. Identify The Competencies Needed To Achieve Them
Once you know what employees must improve on, identify how they will improve. In other
words, which knowledge and skills will they need to develop in order to become more
productive, efficient or innovative?
3. Remove Learning And Performance Obstacles
Next, through surveys and other evaluation techniques, identify any obstacles that would
prevent employees from learning and developing their knowledge and skills. This could be
anything from poor training delivery methods, to a lack of management support.
4. Provide The Appropriate Training
Finally, armed with information from the previous 2 steps, design and deliver the most
appropriate training for each employee or team’s needs. (And be confident that the results
will be positive.)

Specifically the need for training arises because of following reasons:

1. Environmental changes:

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 Mechanization, computerization, and automation have resulted in many changes that
require trained staff possessing enough skills. The organization should train the employees to
enrich them with the latest technology and knowledge.
2. Organizational complexity:
With modern inventions, technological upgradation, and diversification most of the
organizations have become very complex. This has aggravated the problems of coordination. So,
in order to cope up with the complexities, training has become mandatory.
3. Human relations:
Every management has to maintain very good human relations, and this has made training
as one of the basic conditions to deal with human problems.
4. To match employee specifications with the job requirements and organizational needs:
An employee’s specification may not exactly suit to the requirements of the job and the
organization, irrespective of past experience and skills. There is always a gap between an
employee’s present specifications and the organization’s requirements. For filling this gap training
is required.
5. Change in the job assignment:
Training is also necessary when the existing employee is promoted to the higher level or
transferred to another department. Training is also required to equip the old employees with new
techniques and technologies.

Types of Training:

There are a number of different types of training we can use to engage an employee. These
types are usually used in all steps in a training process (orientation, in-house, mentorship, and
external training). The training utilized depends on the amount of resources available for training,
the type of company, and the priority the company places on training. 

1. Technical or Technology Training

Depending on the type of job, technical training will be required. Technical training is a
type of training meant to teach the new employee the technological aspects of the job.
Technical training is often performed in-house, but it can also be administered externally.

2. Quality Training
In a production-focused business, quality training is extremely important. Quality
training refers to familiarizing employees with the means of preventing, detecting, and
eliminating non-quality items, usually in an organization that produces a product. In a world
where quality can set your business apart from competitors, this type of training provides
employees with the knowledge to recognize products that are not up to quality standards and
teaches them what to do in this scenario.

3. Skills Training

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 Skills training, the third type of training, includes proficiencies needed to actually
perform the job. Most of the time, skills training is given in-house and can include the use of a
mentor. 

4. Soft Skills Training

Our fourth type of training is called soft skills training. Soft skills refer to personality
traits, social graces, communication, and personal habits that are used to characterize
relationships with other people. Soft skills might include how to answer the phone or how to
be friendly and welcoming to customers. It could include sexual harassment training and ethics
training. In some jobs, necessary soft skills might include how to motivate others, maintain
small talk, and establish rapport.

5. Professional Training and Legal Training

In some jobs, professional training must be done on an ongoing basis. Professional
training is a type of training required to be up to date in one’s own professional field. For
example, tax laws change often, and as a result, an accountant must receive yearly
professional training on new tax codes.

6. Team Training
Do you know the exercise in which a person is asked to close his or her eyes and fall
back, and then supposedly the team members will catch that person? As a team-building
exercise (and a scary one at that), this is an example of team training. The goal of team
training is to develop cohesiveness among team members, allowing them to get to know
each other and facilitate relationship building. We can define team training as a process
that empowers teams to improve decision making, problem solving, and team-
development skills to achieve business results. Often this type of training can occur after an
organization has been restructured and new people are working together or perhaps after
a merger or acquisition. Some reasons for team training include the following:
 Improving communication
 Making the workplace more enjoyable
 Motivating a team
 Getting to know each other
 Getting everyone “onto the same page,” including goal setting
 Teaching the team self-regulation strategies
 Helping participants to learn more about themselves (strengths and weaknesses)
 Identifying and utilizing the strengths of team members
 Improving team productivity
 Practicing effective collaboration with team members

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 7. Managerial Training
After someone has spent time with an organization, they might be identified as a
candidate for promotion. When this occurs, managerial training would occur. Topics might
include those from our soft skills section, such as how to motivate and delegate, while
others may be technical in nature.

8. Safety Training
Safety training is a type of training that occurs to ensure employees are protected
from injuries caused by work-related accidents. Safety training is especially important for
organizations that use chemicals or other types of hazardous materials in their production.
Safety training can also include evacuation plans, fire drills, and workplace violence
procedures. Safety training can also include the following: Eye safety, First aid, Food service
safety, Hearing protection, Construction safety, etc…

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CHAPTER 2: PERFORMANCE MANAGEMENT &
OCCUPATIONAL MANAGEMENT
PERFORMANCE MANAGEMENT

 is the term used to refer to activities, tools, processes, and programs that companies
create or apply to manage the performance of individual employees, teams, departments,
and other organizational units within their organizational influence.
 is an ongoing process of communication between a supervisor and an employee that
occurs throughout the year, in support of accomplishing the strategic objectives of the
organization. The communication process includes clarifying expectations, setting
objectives, identifying goals, providing feedback, and reviewing results.

At the workplace, performance management is implemented by employees with supervisory roles

Managers use performance management to align company goals with the goals of teams and
employees in an effort to increase efficiency, productivity, and profitability.

Employee management effectiveness is one of the most important factors in achieving company
success and its competitive advantage. Therefore, performance management is the continuous
process of the planning, monitoring and reviewing employees’ work objectives and their overall
contribution to the company.

MAIN STAGES OF THE PERFORMANCE MANAGEMENT CYCLE

5 MAIN STAGES OF PERFORMANCE MANAGEMENT:

1. PLANNING
2. MONITORING
3. REVIEWING
4. IMPROVING
5. MEASUREMENT

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1. Planning

The planning stage of the performance management cycle involves both the employees and

managers.

to identify the employee’s job description and work plan and the company's goals and objectives,
and strategic plan.

2. Monitoring

Managers should focus their attention on the achieved results, individual and team dynamics
affecting the work environment.

The employee and manager track the employee’s development and performance. If it is necessary,
the employee’s performance plan is corrected to meet the changed circumstances.

3. Reviewing

T h e e m p l o y e e

analyzed by the manager and employee. They also consider what new the employee has studied
and how his/her knowledge can be effectively used within the employee’s current position and in
the future company's jobs.

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4. Improving

To do that effectively is possible only through understanding reasons why employees are not
performing at the optimal level. It could be valid reasons, removal of which is a key for fixing the
issue without employee replacements. Managers should keep an open mind to discuss concerns
without jumping to conclusions. Clear direction about the responsibilities, job priorities, and
expectations of employee achievement as well as keeping clear accountabilities in every activity
are necessary.

Some ways to improve employee’s efficiency:

 Communicate employee’s clear expectations about their work assignments. 

 Determining the goals of every project and daily tasks. 
 Regular conducting performance appraisals. 
 Consistent appraisals. 
 Matching tasks to employee skills. 
 The priority of employee development. 
 Improving morale: work environment, salary level, benefits, mission, role in the company. 
 Authority to make decisions. 
 Utilizing the right technologies.
 Regular meetings and discussions.

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5. Measurement

Performance measurement is a process of collecting data necessary for the performance

measures. All companies (from small business to huge corporations) measure performance to
some extent.

Nowadays, effective performance measurement includes a number of new important challenges

such as:

 measuring non-financial performance;

 choosing the right measures;
 using performance measurement results;
 responsibilities for using the results;
 Communicating results to the right staff, and others.

The result of using an effective performance management system is a high performing company.

PERFORMANCE APPRAISAL
A performance appraisal, also referred to as a performance review, performance evaluation,
(career) development discussion, or employee appraisal

 is a method by which the job performance of an employee is documented and evaluated.

 are a part of career development and consist of regular reviews of employee performance

within organizations

 refers to the act of appraising or evaluating performance during a given performance

period to determine how well an employee, a vendor or an organizational unit has
performed relative to agreed objectives or goals, and this is only one of many important
activities within the overall concept of performance management.

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2 CATEGORIES OF APPRAISAL METHODS
Listed below are the various methods that belong in those two categories:

1. TRADITIONAL PERFORMANCE APPRAISAL METHOD

2. MODERN PERFORMANCE APPRAISAL METHOD

Although there is no such thing as universally accepted performance appraisal method, most
organizations accept the Strauss and Sayles classification. George Strauss and Leonard R.
Sayles classify performance appraisal methods into two categories: traditional and modern.

Traditional methods are also known as trait methods. Trait approaches to performance appraisal
are designed to measure the extent to which an employee possesses certain characteristics such
as dependability, creativity, initiative and leadership that are viewed as important and desirable for
the job and the organisation in general. There may also be added work-related characteristics such
as job knowledge, ability to complete an assignment, success in carrying out plans, etc.

1. Ranking Method
In this, the superior ranks his or her subordinates in the order of their merit, starting
from the best to the worst. It is the simplest and old method of merit rating. Every employee is
judged as a whole without distinguishing the rates from his performance.

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 2. Paired Comparison Method:
The paired comparison method is almost similar to ranking method. When variations
are made in the ranking method so that it can easily be used in large groups, it becomes paired
comparison method. In paired comparison method, every person is compared trait wise with
the other persons one at a time. The number of times one person is compared with others is
tallied on a piece of paper. With the help of these numbers, ranks are allotted to the
employees.

3. Grading System:
In this method, certain characteristics or abilities of performance are identified in
advance and the employees are put into the category according to their behaviour and traits.

4. Rating Scales:
In this method, each trait or characteristic to be rated is represented by the scale on which
a rater indicates the degree to which an employee possesses that trait or characteristic. This is
the simplest and most popular technique for appraising employee performance. The typical
rating scale system consists of several numerical scales, each representing a job-related
performance criterion such as dependability, initiative, attendance, output, attitude and
cooperation.

5. Forced Choice Method

This method requires the rater to choose from statements, often in pairs, that appear
equally favorable or equally unfavorable. The statements, however, are designed to
distinguish between successful and unsuccessful performance.

6. Checklist Method
Under this method, a checklist of statements on the traits of the employees and his or
her job is prepared in two columns – viz. a ‘Yes’ column and a ‘No’ column. It is a list of
statements that indicate the performance of the employees on the job.

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These checklists are of three types:

 Simple Checklist:
In this method, the printed forms containing descriptive questions about the performance
of the employees are provided to the supervisors. The supervisor has two options ‘Yes’ and
‘No’. He ticks the one according to the behaviour of the employee and sends the filled form
to the personnel department for the final rating.

 Weighted Checklist
In this method, the weights are allotted to the different statements to indicate their
importance over the other statements. This method is used particularly with the objective
of avoiding scope of personal prejudices.

 Forced Choice Checklist

Five statements for each trait are given in this checklist. These five statements include two
most descriptive, two least descriptive, and one neutral statement. The rater has to tick on
one statement. This checklist has greater objectivity as compared to the other methods.

7. Essay Method
This method requires the appraiser to compose a statement that best describes the
employee being appraised. The appraiser is usually instructed to describe the employee’s
strengths and weaknesses and to make recommendations for his or her development.

8. Performance Tests and Observation

With a limited number of jobs, employee assessment may be based upon his test of
knowledge or skills. The test may be of the paper and pencil variety or an actual demonstration
of skills. The test must be reliable and validated to be useful. Even then, the performance tests

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 are apt to measure potential more than actual performance. In order for the test to be job
related, observation should be made under circumstances likely to be encountered.

9. Forced Distribution Method

Raters sometimes suffer from a constant error i.e., either they rate the employees as
good, average, or poor. They do not evaluate the employees properly. This system minimises
the rater’s bias so that all employees are not similarly rated. In this method, the appraiser is
forced to appraise the appraisees according to the pattern of the normal curve.

10. Field Review Method

In this method, an employee is not appraised by his direct superior but by another
person usually from the HR department. This is an appraisal by someone outside the assessee’s
own department, usually someone from the corporate office or the HR department. The basic
idea is that such a person may take a more objective view in the appraisal as he is not under
the pressure as the superior of the employee may be.

11. Confidential Report

Confidential Reports are maintained mostly in government departments, though its
application in the industry is not ruled out. These reports differ from department to
department and from level to level. The confidential report is written for a unit for one year
and relates to the performance, ability, and character of the employee during that year.

The approach called Annual Confidential Report (ACR), contains 14 items:

 Attendance
 Self-expression
 Ability to work with others
 Leadership
 Initiative
 Technical ability

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  Ability to understand new material
 Ability to reason
 Originality
 Areas of work that suit the person best
 Judgement
 Integrity
 Responsibility
 Any defect.

Modern Methods of Performance Appraisal:

One of the potential drawbacks of a trait-oriented performance appraisal is that traits tend
to be vague and subjective. One way to improve a rating scale is to have descriptions of behaviour
along a scale, or continuum. These descriptions permit the rater to readily identify the point where
a particular employee falls on the scale.

Modern methods have been developed to specifically describe which actions should be or
should not be exhibited on the job. Modern methods are also called behavioural methods. They
are frequently more useful for providing employees with developmental feedback. Modern
methods focus on individual’s personality traits (creativity, integrity, goal-oriented approach,
leadership qualities) and tend to be more objective

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1.

Management by Objectives (MBO)

Management by objectives (MBO) is the appraisal method where managers and employees
together identify, plan, organize, and communicate goals. After setting clear goals, managers and
subordinates periodically discuss the progress made to control and debate on the feasibility.

Much of the initial impetus for MBO was provided by Peter Drucker (1954) and by Douglas
McGregor (1960). Drucker first described management by objectives in 1954 in the Practice of
Management. Drucker pointed the importance of managers having clear objectives that support
the purposes of those in higher positions in the organization. McGregor argues that by
establishing performance goals for employees after reaching agreement with superiors, the
problems of appraisal of performance are minimized. MBO in essence involves the setting out
clearly defined goals of an employee in agreement with his superior. Carroll and Tosi (1973), in an
extensive account of MBO, note its following characteristics:

1. The establishment of organizational goals.

2. The setting of individual objectives in relation to organizational goals.
3. A periodic review of performance as it relates to organisational goals. Effective goal-setting
and planning by top management.
4. Organisational commitment.
5. Mutual goal-setting.
6. Frequent individual performance reviews.
7. Some freedom in developing means of achieving objectives.

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The MBO process

MBO as a mutual goal setting exercise is most appropriate for technical, professional, supervisory,
and executive personnel. In these positions, there is generally enough latitude and room for
discretion to make it possible for the person to participate in setting his work goals, tackle new
projects, and discover new ways to solve problems. This method is generally not applied for lower
categories of workers because their jobs are usually too restricted in scope. There is little
discretionary opportunity for them to shape their jobs.

2. 360-Degree Feedback (CUSTOMER FEEDBACK)

This method is truly one of the modern methods of performance appraisal system. Customer
feedback method is used, especially for sales staff who deal with sales activity in the organization.
Under this method of appraisal system, customer feedback is directly linked with employee
performance. This method of assessment could be unbiased and reliable since customers who are
outsiders may give correct judgement about employee performance than the insiders who are
superiors.

3. Assessment Centre Method

The assessment center method tests employees in a social-related situation. This concept was
introduced way back in 1930 by the German Army but it has been polished and tailored to fit

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today’s environment. Employees are asked to take part in situation exercises like in-basket
exercises, work groups, simulations, and role-playing exercises that ensure success in a role.

An Assessment Center can be defined as "a variety of testing techniques designed to allow
candidates to demonstrate, under standardized conditions, the skills and abilities that are most
essential for success in a given job" (Coleman, 1987). The term "assessment center" is really a
catch-all term that can consist of some or all of a variety of exercises. Assessment centers usually
have some sort of in-basket exercise which contains contents similar to those which are found in
the in-basket for the job which is being tested.

4. Behaviorally Anchored Rating Scale (BARS)

Behaviorally anchored rating scales (BARS) bring out both the qualitative and quantitative benefits
in a performance appraisal process. BARS compares employee performance with specific
behavioral examples that are anchored to numerical ratings.

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the
graphic rating scale and critical incidents method. It consists of predetermined critical areas of job
performance or sets of behavioral statements describing important job performance qualities as
good or bad (for eg. the qualities like inter-personal relationships, adaptability and reliability, job
knowledge etc). These statements are developed from critical incidents.

An Example of Behaviorally Anchored Rating Scale (BARS)

Performance Points Behavior

Extremely good 7 Can expect trainee to make valuable suggestions for
increased sales and to have positive relationships with
customers all over the country.
Good 6 Can expect to initiate creative ideas for improved sales.
Above average 5 Can expect to keep in touch with the customers
throughout the year.

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 Average 4 Can manage, with difficulty, to deliver the goods in time.
Below average 3 Can expect to unload the trucks when asked by the
supervisor.
Poor 2 Can expect to inform only a part of the customers.
Extremely poor 1 Can expect to take extended coffee breaks and roam
around purposelessly.

5. Psychological Appraisals
Psychological appraisals come in handy to determine the hidden potential of employees. This
method focuses on analyzing an employee’s future performance rather than their past work.

Qualified psychologists conduct a variety of tests (in-depth interviews, psychological tests,

discussions, and more) to identify an employee’s emotional, intellectual, and other related
traits. However, it is a rather slow and complex process and the quality of results is highly
dependent on the psychologist who administers the procedure.

Psychological assessment is a process of testing that uses a

combination of techniques to help arrive at some
hypotheses about a person and their behavior, personality
and capabilities. Psychological assessment is also referred to
as psychological testing, or performing a psychological
battery on a person. Psychological testing is nearly always
performed by a licensed psychologist, or a psychology
trainee (such as an intern). Psychologists are the only
profession that is expertly trained to perform and interpret
psychological tests.

Psychological assessment is never focused on a single test score or number. Every person has a
range of competencies that can be evaluated through a number of methods. A psychologist is
there to evaluate the competencies as well as the limitations of the person, and report on them in

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an objective but helpful manner. A psychological assessment report will not only note weaknesses
found in testing, but also the individual’s strengths.

10 Rating Errors to Avoid During Performance Reviews

Rating errors are factors that mislead or blind us in the appraisal process. Armstrong warned that
“appraisers must be on guard against anything that distorts reality, either favorably or
unfavorably.” These are the 10 rating errors seen most often. They’re where managers and other
raters are most likely to go offtrack.

1. Central tendency. Clustering everyone in the middle performance categories to avoid

extremes of good or bad performance; it’s easy, but it’s wrong. This isn’t fair to employees
who are really making an effort, and it can be demoralizing.
2. Favoritism. Overlooking the flaws of favored or “nice” employees, especially those whom
everyone likes.
3. Grouping. Excusing below-standard performance because it is widespread; “Everyone does
it.”
4. Guilt by association. Rating someone on the basis of the company they keep, rather than
on the work they do.
5. The halo effect. Letting one positive work factor you like affect your overall assessment of
performance.
6. Holding a grudge. A dangerous luxury that may result in your ending up in court. Never try
to make employees pay for past behavior.
7. The horns effect. The opposite of the halo effect—letting one negative work factor or
behavior you dislike color your opinion of other factors.
8. Bias. Allowing your bias to influence the rating. Bias can come from attitudes and opinions
about race, national origin, sex, religion, age, veterans’ status, disability, hair color, weight,
height, intelligence, etc.
9. Recency. Rating only recent performance, good or bad. Data should be representative of
the entire review period. If you’re not keeping good notes, you may not remember the
whole period. Armstrong noted that “you want to make sure, again, that you’re keeping

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 records so that you can adequately describe performance over an entire performance
period.”
10. The sunflower effect. Rating everyone high, regardless of performance, to make yourself
look good or to be able to give more compensation.

These and other rating errors can cause your entire performance review program to lose
credibility among your employees. With consistent analysis of the program, you can work to avoid
this situation.

Performance management and compensation—there’s always room for improvement.

Now is the time of year when companies typically start looking at pay ranges and contemplate re-
ranking jobs, moving positions, reviewing internal equity, or adding variable pay systems into their
total reward compensation mix.

Regardless of whether you want to reward performance, time, or knowledge, determining pay
grades is the first step to an equitable, competitive compensation system.  But proper
determination of pay grades is often overlooked as many companies focus instead on salary
survey data. Even if you have great data, the wage won’t be right if you don’t first determine the
job’s value to your organization.

3 PHASES OF PERFORMANCE EVALUATION

1. COACHING

Coaching, involves the process of orienting, training, and encouraging employees. During
coaching, expectations and performance standards are outlined, both new and seasoned
employees receive ongoing feedback regarding their performance, and employees are
encouraged to challenge themselves to improve continuously.

Effective coaching creates an environment that encourages rapid development of new job skills.
Both you and the employee can benefit from coaching in the following ways:

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 Employees receive proper training
 Duties involved in a new position are clearly outlined
 Employees have higher job satisfaction
 Turnover is reduced
Coaching and motivation go hand-in-hand to generate continued improved performance. Tips for
effective coaching and motivation include:
 Employees work harder for recognition than pay
 What gets measured, gets done
 Praise publicly and frequently
 Encourage role-playing of positive behaviors and skills
 Create an environment that seeks ideas and suggestions
 Encourage friendly competition
 Make work fun
 Satisfied employees work harder and produce more

2. CORRECTIVE ACTION

Corrective action is implemented when an employee has been properly and thoroughly trained,
but is not performing according to company and position standards and guidelines. In this
instance, it is your responsibility to:
 Uncover reasons for poor performance
 Inform the employee of low performance issues
 Provide guidance to improve the situation
A verbal discussion or warning is the initial, informal meeting between you and the employee.
A written corrective action calls for a more formal meeting between you and the employee, where
pertinent information is documented on a permanent record.
Regardless of the type of corrective action being administered, an action plan for problem
resolution, with a corresponding time frame, should always be included. Set measurable goals and
outcomes.
Both you and the employee can benefit from effective corrective action, in that:

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 Employees are made aware of substandard performance
 Employees are given an opportunity to improve
 Negative issues may be quickly resolved
 No surprises occur during the performance review
 Trust and concern for the employee is demonstrated by you
If the employee’s performance has not reached expected standards, according to the action plan
and time frame established in the previous corrective action session, it is time to take further
action, which may include conducting a second written corrective action or discharging the
employee.
A second corrective action is the last opportunity for an employee to improve performance before
a possible discharge.

3. TERMINATION

Termination, or discharge, is the process of removing the employee from their position with the
company. When all attempts to improve performance have failed, the position will be vacated in
order to make room for a new employee who can fulfill the requirements of the position.

Both you and your organization can benefit from the termination, in that poor performers may be
separated from the company and workplace morale may improve upon separation of the poor
performer.
Strive for consistency as you progress through the various stages of performance management.
Ensure that all concerns discussed in each of the three phases are directly related to the
employee’s performance, in relation to company policies and performance expectations
established for the position.
Any written corrective action should be reviewed with your manager. Terminations should be
reviewed by management, which can include Human Resources and your manager. Your
management will provide feedback to ensure fairness and consistency, while protecting the
liability of the organization.

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OCCUPATIONAL SAFETY AND HEALTH (OSH)
 also commonly referred to as occupational health and safety (OHS)
 occupational health,  or workplace health and safety (WHS)
 Is a multidisciplinary field concerned with the safety, health, and welfare of people at work
DEFINITION OF TERMS:
 Safety is the state of being "safe" (from French sauf), the condition of being protected
from harm or other non-desirable outcomes. Safety can also refer to the control of
recognized hazards in order to achieve an acceptable level of risk.

 ACCIDENTS – interrupts the normal & orderly progress of any activity & may result in injury
(minor, serious or fatal) to people and/or damage or destruction of property that result to
losses.

 Occupational safety deals with all aspects of physical, mental and

social health and safety in a workplace. It is the umbrella for company's efforts to prevent
injuries and hazards in all work environments. Every industry presents various kinds
of safety hazards to its employees

 Occupational Safety and Health Standards was formulated in 1978 in compliance with the
constitutional mandate to safeguard the worker’s social and economic well-being as well as
his physical safety and health. Adopted through the tested democratic machinery of
tripartism, the 1978 Standards is considered as a landmark in Philippine labor and social
legislation.

REPUBLIC ACT NO. 11058

          In view of the passage of Republic Act No. 11058 entitled "An Act Strengthening Compliance
with Occupational Safety and Health Standards and Providing Penalties for Violations thereof"
(OSH LAW) was signed into law by President Rodrigo Roa Duterte on 17 August 2018, while the IRR
was approved and signed by Secretary Silvestre H. Bello III on 06 December 2018.

MEANS THAT employers are now required to comply with occupational safety and health
standards including informing workers on all types of hazards in the workplace and having the
right to refuse unsafe work, as well as providing facilities and personal protective equipment for
the workers, among others.

 DEPARTMENT ORDER NO. 198-18 Implementing Rules and Regulations of Republic Act No.
11058 Entitled "An Act Strengthening Compliance with Occupational Safety and Health
Standards and Providing Penalties for Violations thereof"

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  LABOR ADVISORY NO. 04-19 Guide for Compliance of Establishments to DO 198-19

 Occupational Safety and Health Program Template

OSH Training Courses for the Workers and Safety Officer 1 (SO1) Pursuant to RA 11058 and D.O.
198-18

Mandatory 8-Hour Safety and Health Seminar for Workers (Pursuant to Section 16 (b) of RA 11058
and Section 3 of DO 198-18) (to be conducted by Safety Officer)

Prescribed Basic OSH Training Course for Safety Officer 1 (SO1) (Pursuant to Section 3 (n) of RA
11058 and Section 3 (v) of DO 198-18)

 Occupational Safety and Health Act

The Occupational Safety and Health Act of 1970 mandates that all nongovernment employers
provide a safe and healthful workplace for their employees. It also provided for the creation of the
Occupational Safety and Health Administration (OSHA) and the National Institute for Occupational
Safety and Health (NIOSH). The act directs OSHA to develop and issue standards through a public
rule-making process. Employers must comply with those OHS standards as they would with any
statutory requirement
 OCCUPATIONAL HEALTH PERSONNEL- doctor, nurse, first-aider, safety officer
 ACCREDITED ORGANIZATION- means any organization duly accredited by the DOLE delegated or
authorized to performed functions related to improvement of occupational safety and health
auditing or any other similar activity.
 CERTIFIED AIDER – means any person trained & duly certified or qualified to administer first-aid by
the Philippines National Red Cross or by any organization accredited by the same.
 CONSTRUCTION PROJECT MANAGER/CONSULTANT - means a person who is hired by the project
owner, to act in the owner’s behalf concerning supervision & monitoring of all matters related to
the overall execution of a construction project. The construction project manager shall be a
separate entity from the General Constructor or any sub-contractor of the construction project.
 CONSTRUCTION SAFETY SIGNAGE – refers to any, but not limited to emergency or danger sign in
table 11 in OSHS.
 GENERAL SAFETY & HEALTH INSPECTION – inspection of the work environment.
 HEAVY EQUIPMENT – any machine with engine or electric motor prime over used either for lifting
 IMMINENT DANGER – means a condition of practice
 PROJECT MANAGER – overall technical personnel of the General Constructor

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PERSONAL PROTECTIVE EQUIPMENT
PPE stands for personal protective equipment. PPE means any device or appliance designed to be
worn or held by an individual for protection against one or more health and safety hazards.

PPE TOOLS

 Eye and face protection, such as safety glasses, safety goggles, safety side shields, face
shields and laser welding shields;
 Hand protection, such as gloves and barrier creams;
 Head protection, such as hard hats;
 Hearing protection, such as earplugs and ear muffs;
 Foot protection, such as boots with metatarsal guards and puncture-resistant soles;
 Body protection, such as high-visibility vests, coveralls, welding leathers, life jackets or
buoyant work vests, chemical suits and skin protection (sun block);
 Respiratory protection, such as half-face, full-face and supplied-air respirators and two-
strap irritant dust masks; and
 Fall protection, such as personal fall arrest systems, harnesses and lanyards.

A hazard is something that can cause harm, e.g. electricity, chemicals, working up a ladder, noise,
a keyboard, a bully at work, stress, etc.

A risk is the chance, high or low, that any hazard will actually cause somebody harm.

For example, working alone away from your office can be a hazard. The risk of personal danger
may be high. Electric cabling is a hazard. If it has snagged on a sharp object, the exposed wiring
places it in a 'high-risk' category.

The goal of occupational safety and health programs is to foster a safe and healthy work
environment.  OSH may also protect co-workers, family members, employers, customers, and
many others who might be affected by the workplace environment

3 Reasons Why Occupational Safety and Health Is Important For Companies

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The occupational health and safety is about providing safety and health measures in different
work environments and sectors. It is an area that is concerned with the health, safety, as well as
welfare of people engaged in an organization. Every kind of work exposes individuals to a number
of hazards, for instance, dangerous machinery, loads that have to be manually handled, electricity,
toxic substances, working with display screen tools, risk of fire, or even psychological hazards like
stress. It might seem obvious, but management of health and safety in the workplace is very
important because along with protecting employees, it also increases productivity when
employees are healthy and happy.

1. Legal

Legal reason for OSH is related to the compensatory, punitive, and preventative effects of laws
that protect the safety and health of workers. OSH legislation requires all organizations to ensure
the safety, welfare, and health of employees and to conduct all work related activities in such a
manner that they should not pose any harm to them.

2. Economic

There are powerful economic reasons for decreasing work concerning accidents as well as ill
health. In addition to decreasing costs, efficient safety and health management promotes the
productivity of a business. Ill health and diseases related to work can result in many days absence
from work. Accidents can hinder normal operations and is a possible addition to the operating
costs of a company. Additionally, the strain and stress on other employees can demotivate them,
or might lead to more mishaps. The medical expenses incurred by injured and ill workers in
hospitals will be borne by the company.

3. Moral

It is morally right to safeguard a worker from any kind of harm. It is the duty of all the companies
to provide the best care to their employees. Friends and families would expect their loved ones
who go out to make their livelihood to come back home safe. The grief, pain, and suffering of
people who have their health affected or are hurt while working for their companies are felt by
workers as well as their family members.

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Why workplace safety is important? Workplace safety is very important for each and every
employee in the industry because all the workers desire to work in a safe and protected
atmosphere. Health and safety is the key factor for all the industries in order to promote the
wellness of both employees and employers. It is a duty and moral responsibility of the
company to look after the employee’s protection.

These days, workplace health and safety

procedures are important for the well-
being of both employees and employers
because human loss is immeasurable and
intolerable. As, such loss or injuries can
employ major loss to the families.

All the industries do have safety risks but

the management should devote their time
to think and strategize the things that
what safety precautions are required in
their company to make sure that their workers are safe enough for all the time. Also, the
management should confirm with all the workers related to their daily work and comfort. So,
that the management can take the same step according to the desired aspects of workers.
This helps them in improving the productivity and quality of the products and lot more.

1. Aware about the surroundings: There are many employees who doesn’t bother about their
surrounding hazards. But, it is important to observe your co-employees working
circumstances. Once you get to know about the particular hazards that occur at your
workplace, then it will help you in reducing the risk and allow you to take the precautionary
steps.

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2. Reduce workplace stress: Most of the employees are not fit and healthy because of their
busy schedule, which includes long working hours, work-pressure and conflicts occur with co-
workers or with the boss of the organization. And, all these can lead to some illness or
depression to the employees. Also, this not only affects their professional life but also creates
the nuisance in their personal lives too. So, instead of waiting to get unfit, it is better that you
start take care of your health, by taking regular breaks, sit in an appropriate posture with
appropriate diet. It will be better for you to schedule your work accordingly and manage the
things to reduce your workplace stress.

3. Use tools appropriately: Take appropriate precautions while using machinery or any other
tool, instead of taking any shortcuts. Taking shortcuts is one of the biggest reason behind
workplace loss. It’s a biggest safety risk to use scaffolding as a ladder or one tool instead of
another for a particular job. So, it is always recommended to use the correct tools and reduce
the opportunity of workplace injury.

4. Keep crisis exits which are easily accessible: In case there is an emergency, you will need
quick access to the exits. It is also advised to keep clear usage of equipment shutoffs which
might stop you from performing at emergency.

5. Update Your Supervisor about the unsafe conditions: It is important that you keep
updating your supervisor about the hazards or risks occur at workplace. They should be
legally obligated to ensure that their employees are working a safe environment or not. And,
in case, if the employees are not working in safe conditions, then it is the responsibility of the
supervisor to listen and understand their condition and create safe working environment for
employees.

6. Use mechanical assistance: Whenever, you want to carry or lift up some heavy

equipment’s then you should use a conveyor belt, crank or forklift. There are lot of risks
involved, if you try to lift something which is heavier, it can affect your weighing capability

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and can lead to some muscle displacement. So, make sure that use the appropriate tools for
not harming yourself.

7. Stay Alert: There are many employees who usually compromise or ignore the alerts of
advance warning and due to this, a number of workplace injuries or fatalities occur.

8. Reduce Workplace Environment Stress: Stress to any employee or to any co-worker, can

lead into depression and into concentration problems. And the main reason includes,
extended working hours, excess of work, insecurity of job and issues which occur at co-
workers or professionals. So, instead of taking stress on your shoulders, you should discuss it
with your supervisor and ask him/her to look after your problems which you are facing in the
organization.

9. Wear the right safety equipment’s: It is essential that you wear the right protection
equipment tools during your work. And, the equipment’s can be in any form like, earplugs,
earmuffs, hard hats, gloves, full-face masks, safety gloves and any other equipment which is
required to wear while working. These tools will prevent the workers from the incidents that
occur at workplace.

Construction Occupational Safety and Health (COSH)

 Is the 40-hour mandatory course for designated safety officers, safety

representatives of various contractors, sustaining technical employees (STEs) of
construction firms and others whose work revolves around work safety and health in
construction sites.
 It is also a requirement for accreditation as safety practitioners in the construction
industry in the Philippines. It tackles key OSH concepts, principles and practices that
are foundational knowledge requirements in the construction industry. Specifically, it
facilitates learning on the importance of OSH in the construction industry. There are

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 also discussions on excavation and demolition safety;   safety of construction
machineries  (as cranes and mobile equipment); safety of site premises; safety in the
use of temporary structures, hand and power tools, fall protection while working at
heights; environmental concerns and waste disposal on site. The use of interventions
as tool box meetings, job hazards analysis excavation and demolition safety are also
included. Furthermore, there are also discussions on the various laws and latest
issuances on OSH in the industry. As an integrating activity, participants are also
given tips on the development and or enhancement of the Construction Safety and
Health Program (CSHP).

A Toolbox Talk is an informal safety meeting that focuses on safety topics related to the

specific job, such as workplace hazards and safe work practices. Meetings are normally short
in duration and are generally conducted at the job site prior to the commencement of a job
or work shift.

The name comes from the team gathering around a toolbox at a construction site for
the talk, but these meetings can be held at any workplace.

SAMPLE OF COSH CERTIFICATION

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CHAPTER 3: COMPENSATION ADMINISTRATION AND
JOB EVALUATION
Compensation
- A systematic approach to providing monetary value to employees in exchange for
work performed. Compensation may achieve several purposes assisting in
recruitment, job performance and job satisfaction.

Objectives of Compensation
1. Attracting the talent – It is widely accepted that human resources of an organization
give it an edge over its competitors. By offering a well-designed pay package.
2. Retaining the talent – Now a days employees do not hitch one job and joining other if
they offered better pay package. Therefore organization have to design
compensation systems that talent and skills not only get attracted but also stay with
the organization.
3. Motivating the employee – The employees may have talent but they will not be
motivated to use their talent unless they know that they will be rewarded duly for
their contribution towards the organizational objectives.

Types of Compensation
1. Direct Compensation – refers to monetary benefits offered and provided to
employees in return of the services they provide to the organization.
2. Indirect Compensation – refers to non-monetary benefits offered and provided to
employees in lieu of the services provided by them to the organization.

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Components of Compensation
1. Wage and Salary – Wages represents hourly rates of pay and salary refers to the
monthly rate of pay, irrespective of the number of hours put in by an employee.
Wages and salaries are subject to the annual increments. They differ from employee
and depend upon the native of job, seniority and merits.
Wage and salary policy
A sound wage and salary policy is essential to procure, maintain and develop
employees and to get effective results from them.

Classification of Wages
Minimum wage – it is sufficient to cover the bare physical needs of a worker
enable to sustain and preserve the efficiency of the worker and offer basic
amenities of life.
Fair wage – it is the above minimum wage but below the living wage. It is fixed,
taking into account factors such as the productivity of labour prevailing wage
rates, level of national income and its distribution and the employer’s capacity to
pay.
Living wage – it is the highest amount of wages proposed by the government,
offering basic amenities of life and satisfying the social needs of worker.

2. Incentives – Also called “payment by result”, incentives are paid in addition to wages
and salaries.
3. Fringe benefits – These include such employee benefits as provident fund, gravity,
medical care, hospitalization, accident relief, health and group insurance, canteen
etc.
4. Perquisites – These are allowed to executive and include company car, club
membership, paid holiday, furnished house etc. perquisites are offer to retain
competent executives.

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Factors in formulating compensation program
1. Productivity of workers: to get the best results from the employees and to increase the
productivity compensation has to be productivity based.
2. Ability to pay: it depends upon the employer’s ability to pay wages to the workers. This
depends upon the profitability of the firm. If the firm is marginal and can’t afford to pay
higher than the competitors then the employees will go to other firms while if the company
is successful then they can easily pay their employees as they wish.
3. Government: government has also fixed the rules for protecting the interest of the
employees. The organizations are liable to pay as per the government instructions. Wages
cannot be fixed below the level prescribed by the government.
4. Labor union: labor union also helps in paying better wages to the workers. Higher wages
have to be paid by the firm to its workers under the pressure of the trade unions.
5. Cost of living: wages depends upon the cost of living if it is high wages will also hike.
6. Demand and supply of labor: it is one of the important factors affecting wages. If the
demand of labor is more they will be paid high wages otherwise vice versa. If the supply of
the employees is more than they will be paid less and vice versa.
7. Prevailing wage rate: wages also depends upon the prevailing wage rate as the
organizations have to pay accordingly to keep the employees with them.

Job evaluation
- is the systematic process for assessing the relative worth of jobs within an
organization. It involves a systematic study and analysis of job duties and
requirements. It allows employers to analyze jobs in terms of both salary and
organizational fit. If you have a standard technique for evaluating jobs, you can
identify similarities and differences in the work performed, the levels of
responsibility, and the skills and qualifications involved in the positions.

Important Features of Job Evaluation

Job evaluation has some importance and features as follows:

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 1. Job evaluation helps to rate the job
- It is a technique which helps to rate the job in terms of complexities and
importance. It rates the job but the job holder. This helps to determine and fixing
wages accordingly.
2. Job evaluation helps to determine pay structure
- It is a consistent and rational process of determining wages and salary structure for
various levels of jobs. Internal and external consistencies are analyzed in order to
determine wage levels.
3. Job evaluation helps in bringing harmonious relation between labor and
management
- It brings harmony and good labor relation through eliminating wage inequalities
within the organization.
4. Job evaluation helps to minimize the cost of recruitment and selection
- It helps in keeping down the recruitment and selection costs as it assists in retaining
employees. It means, job evaluation inspires for keeping down the labor turnover, as
a result of which there will be less need for new recruitment. Moreover, due to the
systematic analysis of various aspects of jobs, recruitment and selection can be made
by matching the qualification and candidate.
5. Job evaluation helps to differ job other than skills
- It considers risks and other factors of the job rather than skills in order to determine
the worth of jobs. Hence, jobs are no longer differentiated with skills.
6. Job evaluation helps to determine the cost and rate of production
- It determines an efficient wage structure according to workload, hence, worker’s
productivity will be increased thereby increasing the rate of production.
7. Job evaluation helps to determine the requirement for training and development
- It identifies training and development requirements by comparing the complexity
and importance of various jobs. Highly complex and critical job exposes training
need.

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 8. Job evaluation helps to minimize cost
- Through the productivity enhancement and increasing the rate of production, the per
unit cost of an output is minimized or reduced.

Job Evaluation Methods

1. Ranking Method – in this method, jobs are arranged from highest to lowest in order
of their value or merit in the organization.
2. Classification Method – a predeterminded number of job groups or job classes are
established and jobs are assigned to these classification.
3. Factor Comparison Method – It is more systematic and scientific method of job
evaluation. Instead of ranking complete jobs, each job is ranked according to a series
of factors. These factors include: mental effort, physical effort, skills needed and
responsibility.
4. Point Method – jobs are expressed in terms of key factors. Points are assigned to
each factor after prioritizing each factor importance.

Benefits of Job Evaluation

- Link pay with the requirements of the job.
- Systematic procedure for determination the relative worth of jobs.
- Outcome is an equitable wage structure.
- Employees and unions are also an active part of the job evaluation process.
- Helps in evaluation of new jobs.
- Points out possibilities of more appropriate use of the plants labour force.

CHAPTER 4: LABOR RELATION

Labor relations are the term used to define the process between employers and employees,
management and unions in order to make decisions in organizations. The decisions taken

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refer to wages, working conditions, hours of work, and safety at work, security and
grievances.

EMPLOYEE AND LABOR RELATIONS

Employee and Labor Relations assists with general management regarding developing,
maintaining and improving employee relationships via communication, performance
management, processing grievances and/or disputes as well as interpreting and conveying
University policies. Essentially, Employee and Labor Relations is concerned with preventing
and resolving problems involving employees which stem out of or affect work situations. In
addition, Employee Relations recognizes employees for service contributed to the Pace
community and provides assistance with professional growth. Finally, Employee and Labor
Relations is responsible for negotiation and administration of the Collective Bargaining
Agreements for the two employee Unions on campus.

A. RIGHTS OF EMPLOYEES AND THE PREROGATIVES OF EMPLOYERS

Three basic employees’ rights

Right to Know

Employers and supervisors must ensure workers are aware of the hazards presented
by people, equipment, materials, the environment, and processes. They have the right
to be trained on, and to receive information about dangerous and hazardous
substances that they are exposed to, or are likely to be exposed.

Right to Participate

The right to participate is best illustrated through worker membership on the J.H.S.C.
Workers have the right to ask questions about issues concerning their health and
safety or that of a coworker. Workers have the right to be a part of the process of
identifying, assessing and controlling workplace health and safety hazards.

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Participation can also be achieved by reporting unsafe conditions to the supervisor or
employer.

Right to Refuse Unsafe Work

Workers may refuse work where they believe it is likely to endanger themselves, or
any other worker. The Act includes a detailed process for refusing unsafe work and
explains the employer’s responsibility for responding to work refusals. The Act also
provides workers with protection from reprisal, or retaliation, from the employer
should they decided to refuse unsafe work.
Management prerogatives
The reason behind every business is to earn profits. In pursuit of such goal, the employer
hires employees to conduct its business. But at the end of the day, companies may do
everything within their power to succeed in business even if it would mean terminating
employees’ services in order to survive.

 Right to transfer workers

The right to transfer an employee from one department to another or form one part
of an establishment to another or from one branch to another is the prerogative of
the management and the consent of the employee is not required in the exercise of
such prerogative.

 Right to re-assign workers

Transferring employees to another work assignment or location is a management
prerogative. But management can’t simply argue that it has the absolute power to
hire, transfer, or fire employees at whim.
(Every people manager wants to be liked by his workers. But sometimes, transferring
people to work assignments that they don’t like will often result in conflict. Although
job transfers are clearly a management prerogative, it should not be used to oppress
people.

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  Right to reorganize its business
Each delivers value if pursued in the right way. Restructuring involves
changing the structures around which resources and activities are grouped and
coordinated—for example, function, business line, customer segment, technology
platform, geography, or a matrix combination of these.

 Right to promote or not to promote employees

Not all employees may be ready for an appraisal or a promotion due to lack of the
length of service, the right number of achievements as well as lack of the needed
skills and experience at the given position.

 Right to demote employees

In order to demote an employee, you should expressly reserve the right to do so in
the Contract of Employment. The contractual provision should lay down the
circumstances that it will be used, for example, as an alternative to dismissal when
dealing with poor performance or misconduct.

 Right to discipline erring workers

Establishing clear and logical rules, along with an atmosphere of trust between
management and labor, will minimize disciplinary confrontations with employees.
Often it's the manner in which rules are established and enforced that makes the
difference between a smooth-running operation and a company plagued by
employee-related disruptions.

 Right to abolish and create positions

Abolition  means elimination of an obsolete and/or unnecessary position. Conversion

of position means the abolition of vacant position/s and the creation of

another position in its/their stead with the same, lower or higher salary range/grade.

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  Right to dismiss employees
There are two types of employment termination in the Philippines: termination by
employer and voluntary resignation or termination by employee. Employers can
dismiss an employee based on just and authorized causes. Just causes are based on
acts attributable to an employee’s own wrongful actions or negligence while
authorized causes refer to lawful grounds for termination which do not arise from
fault or negligence of the employee.

Voluntary resignation is defined as a voluntary act committed by employees who

knowingly dissociate themselves from their employment for personal reasons.

 Right to prescribe working methods, time, place, manner and other aspects of
work.
Under the doctrine of management prerogative, every employer has the inherent
right to regulate, according to his own discretion and judgment, all aspects of
employment, including hiring, work assignments, working methods, the time, place
and manner of work, work supervision, transfer of employees, lay-off of workers, and
discipline, dismissal, and recall of employees. The only limitations to the exercise of
this prerogative are those imposed by labor laws and the principles of equity and
substantial justice.

B. KNOW THE WORK OF THE UNION

A labor union or trade union is an organized group of workers who unite to make decisions
about conditions affecting their work. Labor unions strive to bring economic justice to the
workplace and social justice to our nation. 

A labor union, also called a trade union or workers union, is an organization that represents

the collective interests of employees. Labor unions help workers unite to negotiate with
employers over wages, hours, benefits, and other working conditions.

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What is a union and why does it matter?

A Union is a group of people working together to improve their work lives through collective
bargaining.

What difference would a Union make?

Having a Union means that you can collectively meet and negotiate with management over
any issues that affect you and your job, including wages, benefits, and working conditions. A
Union contract is a legally binding document where these agreements are put in writing.
Having a Union gives you a stronger voice in working with management to make the
company stronger, more prosperous, and better place to work.
Who runs the Union?

You do. The Union is a democracy at every level. You elect your negotiating committee and
leadership for the local, district, and international union. Our Union is made up of thousands
of people like you -- standing together to make a difference.

Aren’t there already laws that protect us?

Laws governing employment, safety, discrimination, and overtime all exist because millions
of Union members fought for them. A Union grievance process ensures that everyone is
treated fairly and equally, without favoritism and discrimination. A Union contract, with the
aid of Union resources and staff, ensures that these laws and rules are enforced.

Who are Union Members?

There are over 60 unions representing over 14 million workers throughout the country. No
matter what work you do, there's a union that represents your work, including:

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  Teachers
 Miners 
 Firefighters
 Farm workers 
 Bakers
 Engineers 
 Pilots
 Public employees
 Doctors 
 Nurses
 Plumbers, 
 Bus drivers, 
 Office workers
 Computer professionals and more are all union members

Benefits of Belonging to a Union

Higher pay, better benefits, and a voice on the job. These are the main reasons to join union.
As a union member, you have a collective voice regarding:

 Pay and wages

 Work hours
 Benefits - including retirement plans, health insurance, vacation and sick leave, tuition
reimbursement, etc.
 Working conditions
 Workplace health and safety
 Ways to balance work and family
 The best ways to get work completed, and other work-related issues

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C. LABOR LAWS

What is Labor Law?

Labor law primarily concerns the rights and responsibilities of unionized employees. Some
groups of employees find unions beneficial, since employees have a lot more power when
they negotiate as a group rather than individually. Unions can negotiate for better pay, more
convenient hours, and increased workplace safety. However, unions do not have limitless
power. Leaders must treat all union members fairly and refrain from restricting union
members' rights to speech, assembly, and voting powers.

Employers also must follow specific rules when dealing with union members. For example,
employers may only negotiate with designated union representatives and must carefully any
agreement between the union and the employer.

HR Management and Labor Laws

Whether your company has a dedicated human resources department, relies on the
expertise of an outside consultant or assigns HR duties to someone qualified to handle
employment matters, you must be familiar with labor and employment laws that affect your
business. A number of laws apply to certain businesses, and noncompliance can result in stiff
penalties and fines as well as damage to your business reputation.

Recruitment

Fundamental to your organization's recruitment and selection process is an understanding

of fair employment laws, such as Title VII of the Civil Rights Act of 1964. Businesses that
employ at least 15 workers are subject to Title VII regulations; however, if you have fewer
than 15 employees, it's in your best interest to adhere to fair employment practices. Within
the context of recruitment, this means that you afford applicants equal opportunity,
regardless of their color, national origin, race, religion or gender. The same goes for
individuals with disabilities, who are protected by the Americans with Disabilities Act of

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1990. Provided an applicant can perform the essential functions of the job, your company
can't deny employment to someone who has a disability or whom you perceive to have a
disability.

Compensation

The Equal Pay Act of 1963 prohibits companies from paying employees who perform
essentially the same duties different wages based on gender. To provide equal employment
opportunity in compensation matters, the law requires equal pay for equal work. HR
management is accountable for establishing compensation structures that pay equal wages,
regardless of gender. In many cases, this entails conducting job analyses to determine
whether two or more positions require comparable skills, working conditions, effort and
responsibilities.

Employee and Labor Relations

Employee relations is an HR discipline that focuses on strengthening the employer-employee

relationship. Equal opportunity laws, such as Title VII, the ADA and the Genetic Information
Nondiscrimination Act of 2008, codify fair employment practices and prohibited activities.
The National Labor Relations Act of 1935 governs labor-management relations and protects
the rights of union and non-union workers. Your organization may be subject to the NLRA
regardless of how many workers you employ. The act's jurisdictional standards are based on
type of business and gross receipts, not the number of employees. For example, if your
company earns at least $100,000 annually managing and leasing shopping center space and
you have four employees, you are subject to NLRA provisions. Your HR management
strategy must consider the ramification of NLRA rules and the potential that just a few
employees can engage in concerted activity, which is protected by the law.

Compliance

Your HR management strategy also needs to consider how legislation, impending legal
matters and organizational structure can affect compliance. Routine audits generally are a
function of HR management, together with periodic advice from legal counsel. If your
company does business with the federal government, compliance takes on another
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meaning. Companies that employ at least 50 employees and have contracts with the federal
government worth at least $50,000 are required to have written affirmative action plans,
under Executive Order 11246. The order is enforced by the U.S. Department of Labor Office
of Federal Contract Compliance Programs.

What Are the Functions of Labor Laws?

Labor laws have a uniform purpose: they protect employees' rights and set forth employers'
obligations and responsibilities. They also have multiple functions. The primary functions of
labor laws are to provide equal opportunity and pay, employees' physical and mental well-
being and safety, and workplace diversity. Although many employers would still embrace
sound business principles without legal mandates, employers use the structure that labor
laws provide to ensure that their operations are in compliance with federal laws.

Equal Opportunity

The combined function of federal labor laws, such as Title VII of the Civil Rights Act of 1964,
the Americans with Disabilities Act of 1990, and the Age Discrimination in Employment Act
of 1967, is to provide applicants and employees with equal access to employment and fair
treatment in the workplace. These laws prohibit discrimination and disparate treatment
based on factors that aren't related to the job requirements. These laws also function as
mandates for employers to give consideration and equal opportunities to workers,
regardless of their age, color, disability, national origin, race, religion or sex.

Pay Equity

The Equal Pay Act of 1963 functions to ensure pay equity. The act prohibits employers from
establishing different pay scales or using different compensation practices based on an
employee's gender, provided employees are performing job duties that require the same
duties, have similar responsibility, and require equal effort. For example, two similarly
situated account managers -- one male, one female -- must receive equal compensation. The
purpose of the Equal Pay Act is to mandate equal pay for equal work, a phrase often
considered the mantra for pay equity.

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Family-Friendly Workplace

Creating a family-friendly workplace requires more than legislation, as in the Family and
Medical Leave Act of 1993 -- commonly known as the FMLA -- which the U.S. Department of
Labor Wage and Hour Division enforces. The FMLA conveys to employees that their
employers respect the time they need for attending to family matters. The function of the
FMLA is to protect workers from being penalized by employers when they need time off to
care for a serious medical condition of their own or that of a family member. The FMLA
requires that certain employers provide up to 12 weeks of unpaid, job-protected leave to
eligible employees. In some circumstances, employees are permitted up to 26 weeks of
unpaid, job-protected leave when they need to care for an armed forces service member.
Upon returning to work from leave, an employee must be restored to the previously held
job, or an equivalent one with equal pay and similar working conditions.

Concerted Activity

The National Labor Relations Act, or the Wagner Act, as it's often called, functions to protect
employees' rights to engage in concerted activity. The law was enacted to prohibit
employers from interfering with employees' rights to seek better working conditions as a
self-directed group of workers or workers represented by a labor union. The rights that the
Wagner Act protected when it was enacted in 1935 were equalized by the rights protected in
the 1947 enactment of the Taft-Hartley Act. This act guaranteed that employees couldn't be
forced to engage in concerted activity, and it prohibited employment discrimination based
on union membership.

Workplace Safety

Employers have an obligation to provide a safe work environment, with particular emphasis
on workplace safety where employees are exposed to hazardous substances, complex
machinery and dangerous conditions. The Occupational Safety and Health Act of 1970
functions as the primary law for reinforcing this employer obligation. It requires that
employers log workplace accidents and fatalities, and provides stiff fines and penalties for
employers who ignore their obligations under workplace safety principles.

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