Republic of the Philippines Document Code: AAO-TMP-009

UNIVERSITY OF ANTIQUE Revision No.: 00

Sibalom, Antique
Effectivity Date: January 2016
Telefax No. (036) 543-8161
E-mail: [email protected] Page: 1 of 26

DR. SUSAN F.
ATIENZA
HRM HUMAN RESEOURCE MANAGEMENT
Professor
susanatienza12
@yahoo.com
#09755634827

MODULE/HANDOUT

COLLEGE OF BUSINESS AND ACCOUNTANCY

[email protected]

Dear Esteemed Students,

Greetings!

Your welfare and safety is our greatest concern amidst this unexpected NCOVID19 Pandemic. But, it doesn’t
mean that everything has to stop. We are practicing now the “New Normal” class.

My dear students, while you are staying at home, and, probably helping your parents meet both ends, let us do
something to also enhance your learnings. Thus, this module is prepared for you.

Each Chapter is composed of three Parts:

 Presentation of the subject matter and its supporting discussions
 Chapter Activity/activities
 Questions or exercises for you to do which would include:
Objective Quizzes, or
Simple essay questions
 Midterm and Final Exams are to be based in the Module

Submit your answers to the Chapter activity during our Face – to- face classes.

Enjoy, and please keep safe always!

God bless!

DR. SUSAN F. ATIENZA

Welcome my dear students!!!

How is your “stay at home” for quite a time?
I am sure that you are already accustomed to
 INTRODUCTION

Human Resources Management

Here, students are introduced to the management of an organization's workforce through

the design and implementation of effective human resources policies and procedures.
Currently, the Philippines(or worldwide) is constantly reviewing issues and practices so as
to ease the impact of this unexpected outbreak of the NCOVID 19 in its workforce – not
only in the government agencies, but likewise for the private sectors as well.

The topics include the need for human resources management and its growing
professionalism; human resource planning including job design and analysis; recruitment
and selection; compensation; employee development; workplace health and safety; and
employee relations.

Objectives
After successfully completing this course, the students will be able to:
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  Acquire and develop the knowledge, skills and concepts needed to resolve
actual human resource management problems or issues.
 Manage the employment relationship, which is a shared responsibility between
employers, management, human resources specialists, and employees.
 Identify the human resources’ needs of an organization or specifically,
department.
 Apply HRM knowledge and understanding in job analysis and draft a job
description from the job analysis.
 Secure and evaluate the procedures and practices used for recruiting and
selecting suitable employees.
 Secure and assess training requirements and design a successful orientation
and training program.
 Discuss workplace health and safety programs and the roles of the employer
and the employee in enforcing health and safety policies and procedures.
 Explain the responsibilities of management, HRM specialists, managers, and
employees in managing the employment relationship in a unionized or a non-
unionized environment.

Course outline
Module 1: INTRODUCTION - Need for Human Resources Management

Chapter 1: “CHANGING PERSPECTIVES OF HUMAN RESOURCES

MANAGEMENT”

 Topic 1: Evolution of Human resources Management

 Topic 2: Main Trends in the HR Profession
 Topic 3: Applications of HR Information System (HRIS)
 Topic 4: HR Departments’ Organization Charts and Structures

Module 2: Matching HR Needs and People

Chapter 2: “JOB ANALYSIS”

 Topic 1: Importance of Job Analysis and Definition of Different Job Terms

 Topic 2: Specific Information Provided by Job Analysis and Uses
 Topic 3: Steps in Conducting Job Analysis and its Specifications and Description
 Topic 4: New Jobs and Hot Jobs for the 21st Century

Chapter 3 and 4: “RECRUITMENT AND SELECTION OF EMPLOYEES”

 Topic 1: Recruitment on the Internet and Websites for Philippines and

Overseas Jobs
Topic 2: Recruitment Process/Recruitment Plan and Tips to Applicants to
Avoid Illegal Recruitment
Topic 3: The Importance of Selection Process
 Topic 4: Sources of Applicants and Writing a Resumè

Module 3: Development of Human Resources

Chapter 5: “TRAINING AND DEVELOPMENT OF EMPLOYEES”

3
  Topic 1: Employee Orientation and Training
 Topic 2: Training Options and Process/Methods

Chapter 6: “PERFROMANCE REVIEW AND APPRAISAL”

 Topic 1: Performance Appraisal and Criteria

 Topic 2: Approaches and Objectives of Performance Appraisal
 Topic 3: Performance Appraisal Methods and Tips for a World-class Appraisal
System
 Topic 4: Online and Social Media Recruitment Tools
 Topic 5: Performance Appraisal Problems and Solutions, and Feedback

Chapter 7: “CHANGES IN PERSONAL STATUS”

 Topic 1: Promotion, Demotion, Transfer and Separation

 Topic 2: Governing Laws on Separation, Dismissal or Termination, Layoffs,
Resignation, and Retirement
 Topic 3: Types of Employment

NOTE:

Chapters 8-17 is lumped into Module 4 only. You will receive this after
our Mid-term period.

Textbook:

Corpus, Crispina,R.. Human Resources Management, (3rd ed.)

Assessments

To successfully complete this course, students must achieve a passing grade of

50% or higher in the Midterm period, and 50% or higher for the final period.

PART I

Module 1 - INTRODUCTION

CHAPTER 1: Changing Perspectives of Human Resource Management (HRM)

4
Topic 1: Evolution of Human Resource Management

Are you not curious if when HRM emerged as important in every

organization?
According to Atty. Arnulfo Rayos, HRM
dramatically changed its role and became
much important in most organizations in the
late 70’s with the rapid advances in
technology and communication. Managers
became increasingly concerned with ways to
improve productivity and competitiveness through
employees who are satisfied and assured of professional
growth in their respective organization.
Recently, the head of HRM Department may be called as :Vice
President, Executive Vice President, Human Resource
Officer, or may be Personnel Officer.
Today, the value of human resource in every organization is of utmost
importance. Authorities in management specifically
Thomas Davenport in his 1999 book Human Capital
assailed that they are “an organization’s human capital”
– the greatest asset of the company.
Topic 2: Main Trends in the HR Profession

The advent of “computer age” greatly contributed in

the importance of HRM.
Organizations strive to survive
amidst the stiff competition in the
“arena”- in the business world
especially. This is the reason
why, human beings really play a
very important role in the survival
of every organization. And thus,
IT today is used in almost all
phases of the HR work.
Organizations over the past years, as reflected in the study conducted by
Fortune Magazine, show that competitive advantage will no longer be
defined by better business processes but will be determined by the quality of
the workforce. This increased and intensified the need for highly competitive
and computer literate human resource.

5
Topic 3: Applications of Information Technology (IT )in the HR Information System
(HRIS)

Both government and private sector groups are exerting efforts and in fact, are in
partnership in the use and application of e-commerce in the Philippines.
They saw the importance of IT in the economic growth and development
of the country. Some of these are the following:

1. Use of job
boards and other
similar we- based
recruitment (e- recruitment) – job
vacancies is easily accessible to the applicants,
and in return, the applicants get instant feedback on the status of
their application.

2. E- selection – this helps the HR in the efficient processing and identification of the best
candidates through the fastest processing and interpretation of test results.

3. Employment Kiosk – this is an employee self-service delivery system. It provides updates

on employee status and other pertinent information initiated and made by the employee
themselves.

4. E- learning – this facilitates the learning process by providing the just-in-time learning
opportunities. The use of a Learning Management System (LMS) allows the HRMO to
focus on the more important aspects of their job rather than being concerned with course
registration and following up attendance to training programs.

5. Electronic Performance Support System (EPSS)- this provides online coaching and
mentoring services as both manager and employees can access organizational information.

6. Salary and Payroll Administration – most companies links this with performance
management systems, time and attendance, and other employee benefits, and pay systems.
This system ensures timely release of salaries, wages, bonuses, and other similar
compensation.

7. Growth of Social Networking sites like Facebook, Twitter, Instagram, etc. – although
these social networking need careful balancing with issues of privacy and data accuracy,
HR executives still use these to integrate information to these social media sites.

8. Use of e-mail (electronic mail) – this emerged as the heart and soul of corporate
communication.

6
 9. Use of IT to foster customer involvement – because of the ease and the accessibility of
social media to employees, HR departments uses these to improve and enhance employee
services and relations.

10. Telecommunication/Teleworking – this is any form of substituting information

technologies to establish remote or virtual office.

Virtual office - is the act of moving the work to the workers instead of moving the workers
to work. This allows employees to work in a place with access to Internet. Using this,
people no longer have to travel every day. They can send their accomplishments for the
day or for the week through “electronic highways”.

Teleworking closes the gap between “where people live and work.” This makes jobs
“near” homes or transforms homes into virtual office or school extensions.

N O W---- we proceed to the HUMAN RESOURCE INFORMATION SYSTEM(hris)

Shall we?
Or, you want to get a break first?
Ok---whichever. 15 minutes break only….

You may jump, or roll, or dance…

Shall we proceed now?

What is Human Resource Information System (HRIS)
HRIS is a database system that keeps important information about employees in a central
and accessible location.
HRIS merges HRM as a discipline and, in particular, its basic HR activities and processes
with the IT field. It is an integrated system designed to provide information used in HR decision
making. It is a system for gathering and maintaining data that describes the HR; transforming
data into information; and, reporting the information to users.
Purposes of HRIS
a.To improve efficiency with which data on employees and HR activities are compiled
b. To provide HR information more rapidly and more easily to be used in management’s
decision-making

HRIS Application
1. IBM – IBM Europe utilized HRIS in order to connect their almost 340,000 global
employees through revolutionary and engaging new company-oriented social
media.
2. Toshiba America Medical System ,Inc. (TAMS) – TAMS manipulated a
streamlined and functional HRIS and moved all of their benefit information online.
It was able to create a library of documents and forms on its Human Resources’
portal, including the benefits guide, which made them earn a 2004 APEX Award
for Publication Excellence.
Some of the Benefits of HRIS Solutions
7
 1. Salary and Payroll Administration
2. HR Training
3. Self-service Benefits Transactions

Example of Software
1. Jeonsoft Payroll Suite 2006 this is specifically designed for Philippine use.
This is composed of three modules such as:
a. Time attendance system
b. Payroll system
c. HRIS system

Topic 4: HR Departments’ Organization Charts and Structures

Organizations nowadays have different designs and gravitate toward smaller staff units with
nontraditional arrangements.
No two HR departments have exactly the same roles and responsibilities.
Example:
1. McDonald’s
This is a franchised store. The manager generally hires new employees and
schedules and tracks working hours for employees.
The home office in turn, generally suggests or mandates hourly wages,
provides performance appraisal forms for local use, and may handle payroll
services as well.
2. A small independent business
This is generally operated in the same way, with the owner or general
manager handling human resource duties, as the firm grows beyond a certain size,
however, a separate HR unit becomes a necessity.

Organization Charts and Structures

Centralization
This centralized strategy locates the design and responsibilities in a single organizational
unit.
Decentralization
This gives each unit the responsibility to design and administer its own personnel system.

Organization Structure
This chart is used by organizations for many purposes. These are:
1. Design their department or division;
2. Monitor reporting relationship;
3. Gain access to information about newly created job titles, staff duties, and reporting
relationships;
4. Find out how leading agencies organize their management teams and workforces;
5. Assess industry patterns;
6. examine the competition; and
7. use in business presentations and to facilitate placement decisions.

CONGRATULATIONS!!!
You’ve made it!!
NOW… look for a cozy place, bring with you a pen, and… check yourself with the
following questions below:

Modified True or False. Write True if the statement is correct, and False if it is wrong.
X2
1. learning about IT should be reserved for computer specialists.
8
 2. The increasing IT applications in HR would eventually lead to the demise of HR or
decrease the role of HRM in the organization.
3. HRM functions should be exclusively performed by the HR department
4. HRM today is mainly concerned with the recruitment and selection of people with
the right qualifications.
5. HRM is a relatively new field in the Philippines.

Essay. 10 points
1. Discuss the 2 advantages, and, 2 disadvantages of using HRIS.
2. As future employer/manager, are you in favor of using teleworking? Why or
why not?

Chapter 2
Job Analysis

This Chapter brings to the point of HRM where we are going to determine the responsibilities
corresponding to each position as well as the qualifications needed to fulfill these responsibilities.
Your knowledge here is important in recruiting possible qualified applicants.

Definition of Terms:

Job analysis – this is used in determining or collecting information relating to the operations and
responsibility of a specific job.

9
Job description – is an organized and factual statements of duties and responsibilities of a specific
job. This enumerates the duties, responsibilities, reporting relationships, working
conditions, and supervisory responsibilities, among others.
Job specifications- this is a written explanation of the minimum acceptable human qualities
necessary for effective performance of a given job.
Job classification – this pertains to the grouping of jobs on some specified basis such as the kind of
work or pay.
Job evaluation – this is the systematic and orderly process of determining the worth of a job in
relation to other jobs.
Position – this consists of the responsibility and duties performed by an individual.
Job – a group of positions that are similar in their duties.
Occupation – this is a group of jobs that are similar as to kind of work and are found throughout an
industry.
Tasks – this is coordinated and aggregated series of work elements used to produce an output.
O*Net – this is an online resource which has replaced the List and description of Job Titles and
Requirements for a very large number of jobs.
Functional job analysis – this is a task-based or work-oriented technique describing the work
performed.
Position analysis questionnaire (PAQ) – this is an example of a job analysis method. Like:
- How much time is taken to complete the basic tasks?
- How are tasks grouped together into a job?
- How can a job designed so that employee performance can be improved?
- What kind of skills is needed to perform a given job?
- What kind of person is best suited to perform a certain type of job?

Uses of Job Analysis Information

1. Preparing the job description and writing the job specifications
2. Recruitment and selection
3. Determining the rate of compensation
4. Performance appraisal
5. Training
6. Career planning and development
7. Safety
8. Labor relations

Methods Used in Job Analysis

1. Interview
2. Observation
3. Questionnaires
4. Employee recording/use of log book

Shall we have a break first!!!!!!!

Let us sing______
“Old McDonald”
Do you know this song?

“Old McDonald had a farm…

E-I-E-I-O
And in his farm he had some –
10
 1.

What is this animal, and the sound of its voice…

2.
Repeat the verse above and identify this animal and the sound of its
voice.
You can mention more animals surrounding you after this #2….

Can we move on??????????

OK….. Please get ¼ sheet of paper or any clean sheet, and answer this.
Please pass this thru your LMS link:

1. When hiring a farm laborer to pull weeds from the growing rice
plants, enumerate at least five (5) JOB SPECIFICATIONS (3 points
each);
2. Describe in one (1) sentence only the job description of a Sales Agent
of insurance (5 points).

NOW, let us proceed to CHAPTER 3……

11
 CHAPTER 3

RECRUITMENT
OF EMPLOYEES

Come! Join
Us!

Welcome all-welcome 1!

What is RECRUITMENT?
This pertains to attracting qualified people
This also represents one of the major responsibilities of the HR manager.
Recruitment of employees may be done thru:
1. Recruitment on the Internet
2. Picking employment sites such as:
- Job sites by location
- Employment super sites
- Specialty employment sites

Tips to Job Applicants to Avoid Illegal Recruitment

1. Do not apply at recruitment agencies not licensed by the Philippine
Overseas Employment Administration (POEA).
2. Do not deal with licensed agencies without job orders.
3. Do not deal with any person who is not an authorized representative of a
licensed agency.
4. Do not transact business outside the registered address of the agency. If
the recruitment is conducted in the province, check if the agency has a
provincial recruitment authority.
5. Do not pay more than the allowed placement fee. It should be equivalent
to one-month salary, exclusive of documentation and processing costs.
6. Do not pay any placement fee unless you have a valid employment
contract and an official receipt.

12
 7. Do not be enticed by ads or brochures requiring you to reply to a post
office (P.O.) box, and to enclose payment for processing of papers.
8. Do not deal with training centers and travel agencies, which promise
overseas employment.
9. Do not accept a tourist visa.
10.Do not deal with fixers.

Recruitment Process/Recruitment Plan

1. formulating a recruiting strategy
This is a choice between internal and external recruiting
strategy.
2. Searching for job applicants
The applicant search may involve traditional recruiting methods
or through the use of e-recruitment.
3. Screening applicants
Applicants should be screened to eliminate individuals who are
obviously unqualified.
4. Maintaining an applicant pool
Applicant pool consists of individuals who have expressed an
interest in pursuing a job opening and who might be feasible
candidates for the position.

Sources of Applicants
A. Internal Sources
Promotion comes from within the organization, taking into
consideration the advantages and disadvantages of this method.
B. Referrals
Present or employees of the organization are asked to encourage
friends and relatives to apply. This is the most common recruiting tool
in small organizations.
C. External Sources
1. Job advertisement – in newspapers, trade and professional publications, or
on radio and television
2. Employment centers or agencies – applicants are charged of agency fee
3. Campus recruitment – this is a primary source of job candidates fresh from
graduating from their degrees or vocation/trainings. This is usually
coordinated with the university/college placement centers.
4. Internships – employers also use their interns or students on “On-the Job-
Trainings”(OJT) for recruiting
5. Job fairs/special events recruiting
6. Online recruitment/e-recruitment

Alternatives to Recruiting
1. Subcontracting/outsourcing
2. Overtime
3. Temporary help
13
 4. Employee leasing

Writing a Resuḿe/Curriculum Vitae

This pertains to a document that describes your qualifications or profile,
goals, skills, education, and professional experience.
This gives an employer a brief overview of how you can contribute to the
organization whenever you are hired.
This can be a screening instrument.
Different Parts of a Resuḿe/Curriculum Vitae
1. Name, Address, and Telephone Number
2. Job Objective – this informs the employer if there is a match
between the job vacancy and what you can offer.
3. Education – list down in order (Current to elementary) your
educational experience, your highest GPA, any awards and
honors, and the key courses/trainings important to the job you
are applying for.
4. Skills – you highlight the skill/s required for the job you are
applying for
5. Work Experience – listing should be from the most recent to the
first job you had.
6. Communication Skills
7. References – choose your references carefully. Choose
somebody who will promote or help you acquire the job.

WHEEEEEW!!!!!!!!
ANOTHER CHAPTER IS THROUGH…..

Okay, stand – up first and stretch.

You may eat first or take a nap(short sleep).

Do you love to sing “Bahay Kubo”?

Can you sing this while looking around your surroundings what
among the plants enumerated in this song that you have?

Hi!!!
Are you ready to resume our activity?

Let’s check your learnings from this Chapter.

Please pass your answers through your LMS link.

Please answer the following:

1. List 5 Websites wherein you can apply for a Job.
2. Write True if the statement is correct, and False if it is wrong:
14
 a. The use of “padrino or ninong” system is the easiest way to get a job.
b. It is better to use online recruitment than newspaper ads.
c. One way to avoid illegal recruitment is to check the web site of the Philippine
Overseas Employment Administration (POEA) about the licensed recruitment
agencies.
d. Applicants with strong recommendations should be given priority in the hiring of
employees.
e. Campus recruitment is a good source of applicants for managerial and supervisory
jobs.

GOOD LUCK!!!

CHAPTER 4
Selection of Employees

HOW are YOU today?

Don’t get too excited. Ha,ha, this is the shortest Chapter.

However, you really cannot reach this stage without passing through:

Job analysis human resource planning recruitment.

Selection process starts when recruiting programs have developed a number of applicants
for the vacant positions with their corresponding personal profile coming from their
resuḿe/curriculum vitae.

Why Selection Process is Important

1. Performance always depends in part on employees.
Take note, those who do not have the right skill could not perform effectively, hence the
overall performance of the organization will suffer.
The right time to screen undesirable performers is before they become part of the
organization, not after.
2. Hiring employees is costly.
3. Properly selected workers/employees are assets to the organization, and, are determined in
achieving the organization’s objectives.
4. An incompetent and ineffective employee/worker is a liability to the organization and results
to substandard performance and low productivity, and, are potential sources of problems to the
management, his/her co-workers, and or customers/clients.
5. Applicants possess varying degrees of intelligence, aptitudes, and abilities.
6. Labor laws protect employees. Hence, it is difficult and costly to dismiss or terminate an
incompetent employee.

Selection Process
1. Define the job before hiring an employee
2. Review application form and credentials carefully
a.Employment gaps : complete dates of employment
b. Spelling, grammar, and punctuation marks

15
 c.Evidence that a career has gone backwards or progressed(demoted or promoted over the
years)
d. Failure to follow directions
e.Failing to include a cover letter:
Resuḿe
Cover Letters
Employment Application
3. Employment Interview
Preparation for the Interview
Interview format
4. Employment Testing
Examples:
Cognitive tests – this assess reasoning, memory, perceptual speed and accuracy, and
skills in arithmetic and reading comprehension, as well as knowledge of a
particular function or job.
Physical ability tests/test of motor and physical abilities, strength and stamina
Sample job tasks – assess performance and aptitude on particular tasks.
Medical inquiries and physical examinations, including psychological tests, assess
physical or mental health
Personality tests and integrity tests – assess the degree to which a person has certain
traits or disposition or aim to predict the likelihood that a person will engage in
certain conduct(ex. Theft, absenteeism)
English proficiency tests
5. Background investigation/reference checking
This is done to verify the accuracy of factual information previously provided by the
appliucant to uncover damaging background information such as criminal records and violent
behavior. Most employers get these information from the following:
a. Personal references
b. School records
c. Previous employment records
This verification of information about the applicant is important because in some cases,
the information supplied by the applicant in his/her Resuḿe/Curriculum Vitae may be
false or misleading.
6. Final interview
7. Selection decision
8. Physical examination
9. Final employment decision/placement on the job.

CONGRATULATIONS!!!!!!!

You may take a break now.

16
 Before we go to our Chapter exercise,, let your mind and eyesight do some exercises.

Spot the Symbol

Hone your visual searching skills with this table featuring many different symbols.
Count how many times the three at the top appear in the entire table, spending 30
seconds on each.

***************************************************************************
*****************

Now -- now--- now--- please answer the questions below and send your answers to
your LMS link.
1. What is the type of test that measures the applicant’s knowledge of a particular
function or job?
2. The type of test that reveals the applicant’s emotional maturity and other personal
characteristics.
3. This is the type of test that measures the applicant’s physical ability to perform a
particular task as well as strength and stamina in general.
4. What is the final activity in the acquisition of employees which signifies decision to
hire the applicant.
5. This is a document that describes the applicant’s qualifications and gives the
employer information about what the applicant can offer if hired for the position.
6. Enumerate five (5) existing positions in your Baranggay. Include the elected
positions and the appointed ones.
7. Enumerate five (5) existing positions in the University of Antique.
17
GOOD DAY EVERYONE!

This is the last Part of our Module for this Semester. We’ll have to make everything
short, easy to study and learn because of our present situation caused by COVID –
19.

Please read the content of this, and answer the Chaper quizzes.
I will email thru our LMS your final exams and a questionnaire of which you have to
submit without fail as it pertains to your career goals as affected by this pandemic.
You may pass your final exams in any apps: my messenger
Yahoo
Our chat group
You have one year anyhow to complete your requirements for this course.

Good luck!

Ma’am susan

18
 PART IV

MAINTENANCE AND REWARDING OF EMPLOYEES

CHAPTER 8: COMPENSATING HUMAN RESOURCES

Welcome!!!

We are going to discuss here topics such as:

Compensation
Base Wages
Salaries

Definition of Terms:

Compensation – is the set of rewards that organizations provide to individuals in return for their
willingness to perform various jobs and tasks within the organization.

This includes all forms of financial returns and tangible services and benefits
employees receive as part of an employment relationship.

It also includes various elements such as:

Base salary
Incentives
Bonuses
Other benefits and rewards
Base Wages and salaries – are the hourly, weekly, or monthly pay that employees receive in
exchange for the work done by an employee. These should be equitable, and, make
up the largest portion of an employee’s total compensation which should effective and
ensure legal compliance, enhance recruitment efforts, and reduce morale and
turnover problems.
Direct Compensation – consists of cash directly paid to the employee in exchange for his/her
work.
Job Evaluation – refers to a systematic comparison done in order to determine the worth of one
job relative to another, in terms of their effort, responsibility, and skills.

Please look for a cozy place while you take time out from your tasks at home!
Main Components of Compensation:
a. Base pay – the hourly wage or weekly/monthly salary earned.
The current daily minimum wage for employees in the National Capital Region (NCR)
isPhp426.00 (Wage Order No. NCR-16).
b. Premium pay – refers to the additional compensation required by law for work performed
within eight (8) hours on nonworking days, such as rest days and special day.
c. Base pay progression – movement of base pay overtime, from year to year.
d. Variable pay – incentive or bonus pay that does not fall into base pay; such earnings may
be based on performance against preset goals (incentives) or pay at the discretion of the
company (bonuses); may be paid at the individual, team group, or organizational level.

Distinction Between Wages & Salaries

19
 Wages generally refer to hourly compensation paid to skilled and unskilled workers or those
performing blue-collar jobs, with time as the basis in the computation.
Salary, is income paid to an individual not on the basis of time but on the basis of
performance. These are given usually to professional and managerial employees or those who are
performing white-collar jobs, not for how much time he/she spends in the organization, but for his/her
overall contribution to the organization’s performance.

Job Evaluation Methods

A. Ranking Method
This is the simplest and the oldest method, and, the least often used job evaluation
technique. This is based usually on overall difficulty rather than on a number of
compensable factors.
B. Job Classification or Job Grading Evaluation Method
This is a simple, widely used method in which jobs are categorized into groups called
classes. These sets of jobs are ranked on levels of difficulty or sophistication,
differences in duties, responsibilities, skills, working conditions, and other job-related
factors.
C. Point System
This requires evaluators to quantify the value of the elements of a job. On the basis of
the job description or interviews with job occupants, points are assigned to the degree
of various compensable factors to do the job.
For example, points are assigned based on skill required, physical and mental effort
needed, working condition, and amount of responsibility involved in the job. When
these points are summed, the job has been evaluated.
D. Factor Comparison Method
This method is similar to the point method but slightly more complex, and it involves a
monetary scale instead of a point scale, thus, not as popular as the point method.
It is absolutely essential that the rates of pay of key jobs be viewed as reasonable and
fair to all those making evaluations. Compensable factors are then identified.
Typically, the number of compensable factors is small (4 or 5). Examples of
compensable factors are:
1. Skills
2. Respoinsibilities
3. Effort
4. Working conditions

20
I.
Seatwork
Identification (x2)
______1. are the hourly, weekly, or monthly pay that employees receive in exchange for the
work done by an employee
______2. is income paid to an individual not on the basis of time but on the basis of
performance.
______3. generally refer to hourly compensation paid to skilled and unskilled workers or those
performing blue-collar jobs, with time as the basis in the computation.
______4. This is a simple, widely used method in which jobs are categorized into groups
called classes.
______5. are the hourly, weekly, or monthly pay that employees receive in exchange for the
work done by an employee.
______6. refers to a systematic comparison done in order to determine the worth of one job
relative to another, in terms of their effort, responsibility, and skills.
______7. This method is similar to the point method but slightly more complex, and it involves
a monetary scale instead of a point scale, thus, not as popular as the point method.
______8. These are given usually to professional and managerial employees or those who are
performing white-collar jobs, not for how much time he/she spends in the organization, but for
his/her overall contribution to the organization’s performance.
______9. This method is similar to the point method but slightly more complex, and it
involves a monetary scale instead of a point scale, thus, not as popular as the point method.
______10. refers to the additional compensation required by law for work performed within
eight (8) hours on nonworking days, such as rest days and special day.

II. Essay (10 points)

Compare wages and salaries

Goodluck and Godbless !!!

CHAPTER 9: EMPLOYEES BENEFITS AND SERVICES

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Are you still alert?
Shall we continue?

Indirect financial compensation is called benefits and services. This represents an important
part of just about every employee’s pay.
Benefits are generally available to all the firms and include such things as time off with pay,
health and life insurance, and retirement funds.

Tax Advantages of Benefits

This is one of the major forces behind the growth of employee benefits is the tax advantage.
The BIR ruled that employers could deduct the costs of benefits as a business expense and the
employees do not need to include the value of health benefits in their taxable income.
Today, benefits constitute a major portion of labor costs.

Nontaxable Benefits Under the Code

1. Compensation for sickness or injury
2. 13th month pay and other bonuses not to exceed Php80,000.00 per year
3. Allowances and benefits given for the convenience of the employer
4. Allowances and benefits given which are in the nature or necessary to the taxpayer’s business, trade
or profession
5. SSS, Philhealth and Pag-IBIG contributions, as well as union dues
6. Contributions of the employer fro the benefit of the employee including retirement, hospitalization,
and health insurance

*** the BIR sets a limit on the value of tax-exempt de minimis benefits.

What is de minimis benefits?

These are benefits in the nature of facilities or privileges furnished or offered by an employer
to his/her employees that are of relatively small value, and are offered or furnished by the employer
merely as a means of promoting the health, goodwill, contentment, or efficiency of its employees.
Examples are:
a. Monetized unused vacation leave credits not exceeding 10 days during the year
b. Medical cash allowance to dependents not exceeding Php 750.00 /employee/semester or
Php 125.00/month
c. Rice subsidy of Php 1500.00 or 1 sack of rice /month
d. Uniforms and clothing allowance not to exceed Php6,000.00/year
e. Actual yearly medical allowance based on the current Philhealth ceiling
f. Laundry allowance
g. Employees achievement awards like: length of service or safety achievement that may be
with cash or gift under an established policy of the agency
h. Gifts given during Christmas and major anniversary celebrations
i. Flowers, fruits, books, or similar items given to employees under special circumstances
j. Daily meal allowance for overtime work not exceeding 25% of basic minimum wage.

*** employee allowances are non-taxable

Classification of Employee Benefits and Services

A. Mandatory Employee Benefits/Legally Required Benefits in the Philippines
1. Social Security System (SSS) – this was created to provide private employees and
their families with protection against disability, sickness, old age, and death.
Benefits Given to SSS Members:
a. Sickness Benefits
b. Maternity Benefits
c. Retirement Benefits
d. Disability Benefits
e. Death Benefits

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 f. Funeral Grants

2. Government Service Insurance System (GSIS) – this is the equivalent of SSS for
government employees.
Benefits given are:
a. Life Insurance
b. Retirement benefits
c. Disability benefits
d. Funeral grants
e. Survivorship benefit

3. Home Development Mutual Fund (HDMF)

a. Multi-purpose Loan (MPL)
b. Calamity Loan
c. Housing Loan

4. Philippine Health Insurance Corporation (Philhealth)- PhilHealth is administered

by the Philippine National Health Corporation which is designed to provide
employees with a practical means of paying for adequate medical care in the
Philippines (R.A. 7875)
a. Inpatient benefits
b. Outpatient benefits
c. Lifetime membership
***Dependents of a PhilHealth member include the following:
- Legal spouse
- Child/children- legitimate, legitimated, acknowledged and illegitimate (as
appearing in birth certificate), adopted, or below 21 years of age,
unmarried and unemployed.
- Parents (non-members or membership is inactive) who are 60 years old,
including stepparents (biological parents already deceased) and adoptive
parents (with adoption papers)

5. Employees’ Compensation (EC) – this EC b sector employees and their dependents

in the event of work-related injury, sickness, disability, or death. This is purely
employer-based contribution benefit. Thus, the employee is not required to
contribute.

6. 13th Month Pay – this is based in P.D. 851, all Filipino employees are entitled to a
year-end bonus equivalent to one (1) month salary regardless of the nature of their
employment.

7. Service Incentive Leave (SIL) – employees who have worked at least one (1) year
in a company is entitled to five (5) days leave of absence with pay every year.

8. Paternity Leave – this is described by law through R.A. 8187, granting every
married male employee seven (7) working days of leave after his legitimate wife’s
childbirth, 0r any miscarriage. They are paid in full equivalent to seven(7) days,
up to the first four deliveries.

9. Meal and Rest Periods – this is based on Article 83 of the Labor Code. Here,
employees are entitled to one (1) hour break for meals on an eight – hour workday.
Employees are also entitled to adequate rest periods in the morning and afternoons,
of short durations, that will be counted as hours worked. This last usually for 15
minutes and used for coffee or snacks breaks.

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 10. Right to Holiday Pay Under Article 94 of the Labor Code
a. Every worker shall be paid his regular daily wage during regular holidays,
except in retail and service establishments regularly employing less than ten
(10) workers;
b. The employer may require an employee to work on any holiday but such
employee shall be paid a compensation equivalent to twice his regular rate;
and,
c. The following are the 11 regular holidays in the Philippines under Executive
Order 292 as amended by R.A. 9492:
 New Year’s Day – January 1
 Araw ng Kagitingan – April 9
 Maundy Thursday – movable date
 Good Friday – movable date
 Labor Day – May 1
 Independence Day – June 12
 National Heroes Day – last Monday of August
 Bonifacio Day – November 30
 Christmas Day – December 25
 Rizal Day – December 30
 Observance o Eid’l Fitr and Eidul Adha – movable date determined in
accordance with the Islamic calendar
 Special Days:
(No work, No pay unless required)
- Ninoy Aquino Day – August 02
- All Saint’s Day – November 01
- Last Day of the Year – December 31
- EDSA Revolution Anniversary

11. Premium (Overtime) Payment – this is a compensation for work hours rendered
exceeding the maximum number of working hours which is normally 8 hours per
day.
The Labor Code of the Philippines sets premium rates at 25% of the employee’s
regular wage or salary on working regular days.
If overtime work is done during their rest day or on a holiday, the premium pay is
increased to 30%.

12. Night Shift Differential – according to Article 86 of the Labor Code of the
Philippines, every employee shall be paid a night shift differential of not less than
ten percent (10%) of his/her regular wage for each hour of work performed
between ten o’clock in the vening and six o’clock in the morning.

B. Benefit Given Because of Management Generosity

These benefits which are non-government mandated but are usually given to
employees. These are:
1. Holiday Christmas Bonus – this is given on top of the 13th month pay. This is given
in December and as the agency’s/company’s Christmas gift to their employees.
2. Midyear Bonus – this is given in June, given to assist employees in school
enrollment fees for their children. This is also known as an educational assistance
plan.
3. Cost of Living Allowance – this is for food, medicine and clothing allowance for
employees.
4. Paid Holiday and Vacation Leaves – on top of mandated 5 days per year leave
with pay, some agencies/companies give their employees additional paid holiday
and vacation leaves. The number of days however for this varies from company to
company/ agency to agency.
5. Sick Leave – some companies grant sick leave aside from service incentive leave
when an employee cannot report for work due to an illness or injury.

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 6. Emergency/Bereavement Leave – this provides the employee with time off from
work to plan and attend a funeral and to deal with family matters surrounding a
death.
7. Birthday Leave – some companies give their employees a present on their
birthdays such as giving day off during the actual birth date of the worker.
8. Healthcare /HMO Coverage – aside from PhilHealth coverage, most companies
provide additional healthcare benefits through selected HMO.
9. Group Life Insurance – this provides lower rates for both the employer and the
employee than if they bought such insurance as individuals. This is however not
mandatory.
10. Pension Plans – these refer to the periodic payments to workers who are retired
from the company because of old age, illness, or other reasons as determined by
the employer and as provided for in the plan.

C. Executive Compensation
Types of Executive Compensation
1. Cash Compensation
2. Long-term Incentive Plans (LTIPs)
3. Retirement Packages
4. Executive Perks

D. Employee Services
1. Personal Services benefits
Credit Union Benefits
Counselling Service
Legal Service

2. Job – related services benefits such as free uniforms, food services or cafeteria,
educational subsidies or grants, and stock ownership options.

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I.
Seatwork
Modified True or False. (x2)Benefits are supplemental compensation which empoyee
1. Benefits are supplemental compensation which empoyees are entitled to receive aside from
their basic pay.
2. Benefits granted to employees can no longer be reduced.
3. A female pregnant employee can’t avail of the maternity leave benefit of SSS if unmarried.
4. Paternity leave benefit is granted to a male married employee whose wife is going to give
birth.
5. 13th month pay is given to all employees regardless of tenure.
6. De minimis benefits are nontaxable benfits under the Labor Code.
7. Christmas bonus is mandated by law.
8. SSS provided the same benefits as GSIS.
9. PhilHealth dependents include parents of a PhilHealth member.
10. Providing housing loans is the main program of Pag-IBIG.

Good luck and God Bless!!!

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