THE PROCESS OF RECRUITING,

SELECTING, AND TRAINING

EMPLOYEES
for Organization and Management
Senior High School (ABM)
Quarter 2 / Week 3
 FOREWORD

This Self-Learning Kit for Organization and

Management is designed specifically for ABM students in
the Senior High School. This is about understanding the
process of recruiting, selecting, and training employees. It
includes the definition of terms, example situations, and its
organization applications.
It is aligned with the K to 12 Curriculum of the
Department of Education following the prescribed MELCs
(Most Essential Learning Competencies.
This is designed to be more comprehensive for learners
even in studying at home.

What happened
This part contains a review of prior knowledge that has
a great contribution to the focused topic of this module.
This also contains preliminary activities that will awaken the
prior knowledge of the learners and will motivate them to
learn.
What I Need to Know (Discussion)
This part contains a discussion about recruiting,
selecting, hiring, and training employees for the learners to
better understand the topic.
What I have Learned (Evaluation/Post Test)
The exercises found in this section are designed to
develop analytical skills and check the understanding of
the learners about the topic in this module.
 LESSON THE PROCESS OF RECRUITING, SELECTING,
AND TRAINING EMPLOYEES

OBJECTIVES:
K: Define recruiting, selecting, and training;
S: Distinguish facts about recruiting,selecting and
training;
A: Appreciate the importance of recruiting,
selecting, and training employees.

LEARNING COMPETENCIES:

• Analyze the process of recruiting, selecting, and

training employees (ABM_AOM11-IIa-b-21).

I. WHAT HAPPENED
Activity:
Answer the crossword puzzle below. This is a sort of review of the previous
topic and at the same time, you will encounter these terms throughout the
discussion.

4. 5.
T I
1. 1.
O

2. 2.
3. D

4. 3.
5. R

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 ACROSS
1. an entity, a company, or an institution
2. learning given by organizations to its employees
3. can be described as the process of hiring employees
DOWN
4. has a goal to improve capability, capacity productivity, and performance
5. a manager’s way of knowing the applicant

II. WHAT YOU NEED TO KNOW

DISCUSSION
Staffing as defined in the previous discussion is the Human Resource function
of identifying, attracting, hiring, and retaining people with the necessary
qualifications to fill the responsibilities of current future jobs in the organization.
Staffing is one way to open roles within a company or organization. Staffing
has two main components, recruitment, and selection.
Hiring is similar to staffing in many ways. Like staffing, it is a way for a company
or organization to fill open roles in the roster.
Below is a diagram showing the steps of the hiring process:

Step 1 – Determining a
need
(Job Analysis)

Step 2 – Application search

and selection
a. Recruitment
b. Screening and
selection
c. interviews

Step 3 – Decision-making
process
a. Making a decision
b. Notification and
employment offer

Step 4 – Adaptation to
the workplace
Orientation

Figure 1. Steps in Hiring Employees effectively

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RECRUITMENT

Recruitment is a set of activities designed to attract qualified applicants for job

position vacancies in an organization.
The two methods of recruitment are external and internal recruitment.
Let us discuss it one by one.
External recruitment method considers outside sources in locating potential
individuals who might want to join the organization and encouraging them to
apply for actual or anticipated job vacancies.
The following are methods of external recruitment:
1.Advertisements – this can be done through websites, newspapers, trade
journals, radio, television, billboards, posters, and emails among others.
2.Unsolicited applications – these are applications from individuals who took
the initiative to apply even though the company did not indicate that they
need a new staff.
For example, you are interested in working in an organization but you do not
have any idea if they are hiring employees or not. So, what you did is you
submitted your application documents to the organization. In this case, the
organization has not put out a notice for new workers.
3.Internet recruiting – independent job boards of the web commonly used by
job seekers and recruiters to gather and disseminate job opening information.
Examples are jobstreet.com, jobfinderph.com, OnlineJobs PH, and many
more.
4.Employee referrals – are recommendations from the organization’s present
employees who usually refer to friends and relatives who they think are
qualified for the job.
An example is when you are working as a teacher in a private school and you
know that this school is looking for an English teacher. Since your cousin is an
Education graduate with English as her specialization then you refer her to your
School Principal as one of the applicants for the job.

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5.Educational institutions – these are good sources of young applicants or new
graduates who have formal training but with very little work experience. For
technical and managerial positions, schools may refer to some of their alumni
who may have the necessary qualifications needed for the said job positions.
For example, a University known for its successful Engineering Graduates is
looking for additional instructors in this field. And since they have their lists of
best graduates, they can hire some of their alumni to work with them.
6.Public and private employment agencies – this may also be good sources of
applicants for different types of job vacancies for they usually offer free
services while private ones charge fees from both job applicants and
employers soliciting referrals from them.
Some examples of public employment agencies in the Philippines are the
Philippine Overseas Employment Administration (POEA), the Department of
Labor and Employment (DOLE), etc. Private employment agencies like
Ephesians Human Resource Inc., Brilliant Minds Inc., and other employment
agencies that are recognized by the government.

Internal recruitment
Internal recruitment is a process of filling job vacancies through promotions or
transfers of employees who are already part of the organization. In other
words, recruitment is within the organization.
For example, you are working in an organization as an assistant supervisor for
three years already. Since your senior supervisor is about to retire, the
organization is hiring for his replacement but what they do is internal
recruitment. In this case, you as a qualified applicant for the position can
apply.

In simple words, external recruitment is looking for prospective applicants from

outside the organization while internal is from inside. Depending on the need
of the organization, they can have both methods of recruitment at the same
time.

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 Advantage and disadvantage of Internal and External Recruitment
Internal Recruitment External Recruitment
Advantages Advantages
• Cheaper and quicker to • Outside people bring in new
recruit ideas
• People already familiar with • A larger pool of workers from
business and how it operates which to find the best
• Provides opportunities for candidate
promotion with in the business • People have a wider range of
Disadvantages experience
• The business already knows Disadvantages
the strengths and weaknesses • Longer process
of the candidates • More expensive process due to
• Limits number of potential advertisements and interviews
applicants required
• No new ideas can be • The selection process may not
introduced from outside be effective enough to reveal
• May cause resentment the best candidate
amongst candidates not
appointed
• Creates another vacancy
which needs to be filled.
SELECTION
Selection is the process of choosing individuals who have the required
qualifications to fill the present and expected job opening. This is the second
component of staffing which includes the following steps:
1. Establishing the selection criteria – this includes the citation of the nature and
purpose of the job position which has to be filled. This may include the skills that
the company is looking for in an employee.
Here is an example:
Formal Education – i.e. Must be a college graduate
Experience and Past Performance – i.e. Must have at least five-year
experience in related work
Physical Characteristics – i.e. With pleasing personality
Personality Characteristics – i.e. hardworking

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2. Requesting applicants to complete the application form – application forms
must be filled by the applicants with the necessary information that the
company is asking so that it will be easy for managers to decide whether the
applicants meet the minimum requirements or not.
3. Screening by listing applicants who seem to meet the set of criteria – this is the
time when the company’s human resource team will assess who among the
applicants meet the minimum criteria and who will proceed to the next step.
This is to minimize the cost of time spent in interviews with applicants who do
not meet the criteria for the job opening.
4. Screening interview to identify more promising applicants – this is the time
where shortlisted applicants will undergo a formal interview and will be
assessed more closely if he/she fits the job.
5. Interview by the supervisor/manager or panel interviewers – this is when the
supervisors/managers will assess if the applicants are well oriented with his/her
characteristics and abilities towards the job that he/she is applying for.
6. Verifying information provided by the applicant – this is done to check if the
applicants are not telling false information to the company.
7. Requesting the applicant to undergo psychological and physical examination
– this is very important because having a healthy mind and a healthy body is
important for good job performance.
8. Informing the applicant that he or she has been chosen for the position applied
for – this can be done verbally or in writing by the managers who give the final
decision regarding the applicant’s hiring. Final instructions regarding the
company’s rules and regulations for hiring an applicant must be given in this
step.

In the selection process, organizations do not find it easy. Some will have
different ways of selecting employees because it is difficult to know what is the
real performance of their people. Predicting their performance is difficult
because of the difference between what individuals can do at present to
what they can do in the future.

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TRAINING AND DEVELOPMENT
Training refers to learning given by organizations to its employees that
concentrates on short-term job performance and acquisition or improvement
of job-related skills.
Development refers to learning given by organizations to its employees that is
geared toward the individual’s acquisition of his or her skills in preparation for
future job appointments and other responsibilities.

Why are training and development important in achieving success in today’s

organization? This is very important for every employee in an organization to
be properly equipped with the skills and abilities for them to be capable of
meeting the organization’s goals.

Newly hired employees need to be trained for them to develop their skills,
capabilities, characteristics and enhance their inter and intrapersonal relations
with their subordinates and workmates.

Before conducting the training, an organization analysis, task analysis, and

person analysis will be conducted by managers. Organization analysis may
include the analyses of effects of downsizing, branching out, conflicts with rival
companies, and others that may require training or retrain personnel. Task
analysis involves, for example, checking of job requirements to find out if all
these are being done to meet company goals. Person analysis determines
who among the employees need training or retraining. This is to avoid spending
on the training of employees who no longer need it.
In conducting training, a training design must be prepared first. Instructional
objectives that describe the knowledge, skills, and attitudes that employees
must acquire are included in this design. The objective must be aligned with
the company’s objectives. Trainee readiness and motivation is also a
consideration in making the design. They need to refer their design to the
trainee’s background knowledge and experiences.

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Next, when the design is already complete, it is time for its implementation. This
may include; on-the-job training, apprenticeship training, classroom
instruction, audiovisual method, simulation method, and e-learning.
After implementation then the evaluation will follow. This is the moment when
the training program will be evaluated by the participants. Their reactions, their
learnings, and their way of behaving during the training will be gathered and
evaluated.
Employee development is a part of an organization’s career management
program and its goal is to match the individual’s development needs with the
needs of the organization. An employee must know himself or herself well, he
or she must be aware of his knowledge and capabilities, values, and interests
so that he or she could also identify the career pathway that he or she would
like to take.
As part of the organization's goal towards its employees, it will provide its
employees with the results of their evaluations, organization’s plans, or
direction that may be related to his or her career path. This is a very good
combination to blend the employee’s career development goals with the
organizational goals.

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 III. WHAT HAVE I LEARNED
POST TEST:
A. True or False. Write T if the statement is true and F if it is false.
1. Staffing is the same as planning.
2. Recruitment somehow is the same as with hiring.
3. The hiring process need not to follow steps.
4. Interviews are done after selecting the hired applicant.
5. Selection criteria are needed by managers in selecting the most fitted
applicant for the job.
6. It is a disadvantage for internal recruitment for being expensive and costly.
7. External recruitment includes tv advertisements, newspapers, and tabloid
posting.
8. Staffing includes recruitment and selection.
9. Training is important to enhance the employee’s capabilities.
10. Organizations have the same process of hiring.

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 THE FUNCTIONS AND IMPORTANCE OF
COMPENSATION, WAGES AND PERFORMANCE
EVALUATION, APPRAISAL, REWARD SYSTEM,
EMPLOYEE RELATIONS AND MOVEMENT
for Organization and Management
Senior High School (ABM)
Quarter 2 / Week 4

1
 FOREWORD

This Self Learning Kit for Organization and

Management is an innovative tool crafted exclusively for
ABM Senior High School students. It assists students in
understanding the basic concept of organization and
management explicitly on the functions and importance
of compensation, wages and performance evaluation,
appraisal, reward system, employee relations, and
movement.
It is aligned with the BEC of the Department of
Education following the prescribed MELCs (Most Essential
Learning Competencies).
This Self Learning Kit is divided into three parts.
What happened
This section contains a pretest that measures student’s prior
knowledge and the concepts to be mastered throughout the
lesson.
What I Need to Know (Discussion)
This section contains contents on nature and levels of planning
and types of plans. The topic intends to make the students
appreciate its importance.
What I have Learned (Evaluation/Post Test)
A summary of key concepts and exercises that measures
a student’s understanding of the forms of the topic. Students are
expected to apply the concepts they’ve learned, as these will
strongly influence the kind of manager they will become in the
future.

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 LESSON THE FUNCTIONS AND IMPORTANCE OF
COMPENSATION, WAGES AND PERFORMANCE
EVALUATION, APPRAISAL, REWARD SYSTEM,
EMPLOYEE RELATIONS AND MOVEMENT

OBJECTIVES:
K: Identify the policy guidelines on compensation
and wages and performance evaluation or
appraisal;
S: Discuss the importance of employees relations
and differentiate various employee movements;
A: Realize the importance of adopting an effective
rewards system.

LEARNING COMPETENCIES:

Examine the functions and importance of

compensation, wages and performance evaluation,
appraisal, reward system, employee relations and
movement.

I. WHAT HAPPENED
PRE-TEST:
Direction: Unscramble the letters below, based on the definition provided in
each number. Write your answers in your activity notebook.
1. CASONMOPIETN - all forms of pay given by employers to their
employees for the performance of their jobs
2. ERFOPRMCAEN VTIELNUAOA - a process undertaken by the
organization, usually done once a year, designed to measure
employees’ work performance
3. MEPLYEOE ERLTIAOSN - the connection created among
employees/workers as they do their assigned tasks for the
organization to which they belong
4. PELMOEYE EOVMEMTSN - series of actions initiated by employee
groups toward an end or specific goal
5. NUIMNIOS – the principle of combination for unity of purpose and
action

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 6. WRADRE - gift, prize, or recompense for merit, service, or
achievement, which may have a motivating effect on the employee
7. OMNTERYA WERADR - refers to money, finance, or currency reward
8. NNOMAOETRYN AERDWR - refers to intrinsic rewards which do not
pertain to money or finance

II. WHAT YOU NEED TO KNOW

DISCUSSION
COMPENSATION/WAGES and PERFORMANCE EVALUATION
Compensation/wages and performance evaluation are related to
each other because the employees’ excellent or poor performance also
determines the compensation given to them, after considering other internal
and external factors like the actual worth of the job, compensation strategy of
the organization, conditions of the labor market, cost of living, and area wage
rates, among others.
Compensation may come in different forms. It may be direct, indirect,
or nonfinancial.

Types of Compensation
Direct compensation – includes workers’ salaries, incentive pays,
bonuses, and commission
Indirect compensation – includes benefits given by employers other than
financial remunerations; for example travel, educational and health benefits,
and others
Nonfinancial compensation – includes recognition programs, being
assigned to do rewarding jobs, or enjoying management support, ideal work
environment, and convenient work hours

Connecting Compensation to Organizational Objective

Worker compensation/wages had ➢ The daily minimum
tremendously changed in the 21 century due to wage rate differs in relation
st

increased market competition (both local and to factors such as

geographical area and
industry or sector. The
National Wage and
Productivity Commission is
the government agency
concerned with minimum
wage determination in the
country.

Figure 1

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global), required skills from workers, and changes in technology, among others.
Along with these, organizations’ pay philosophies have also changed. Instead
of paying employees based mainly on their job position or titles, they are now
given pay according to their competencies or according to how much they
could contribute or have contributed to their company’s success. Wage
experts now prepare compensation packages to create values for both the
organization and its employees.
Source: (Latte, 2018)
Figure 1. Pay equity is among the important considerations in preparing compensation
packages. As illustrated in this diagram, pay equity is based on the idea that an employee’s
pay must be commensurate to his or her effort.

Compensation: A Motivational Factor for Employees

Compensation pay represents a reward that an employee receives for
good performance that contributes to the company’s success. With this, the
following must be considered:
Pay Equity – related to fairness; the Equity Theory is a motivation theory
focusing on employees’ response to the pay that they receive and the feeling
that they receive less or more than they deserve.
Employees generally feel that their pay must be commensurate to the
effort exerted in the performance of their job. In other words, pay equity is
achieved when the pay given to them by their employers is equal to the value
of the job performed; thus, this motivates them to perform well and to do their
jobs to the best of their abilities.
Expectancy Theory – another theory of motivation which predicts that
employees are motivated to work well because of the attractiveness of the
rewards or benefits that they may receive from a job assignment.
The employee’s perception of the compensation or pay attached to a
job position is an important factor in ascertaining the motivational value of
compensation.

Bases for Compensation

Employees may be compensated based on the following:
Piecework basis – when pay is computed according to the number of
units produced
Hourly basis – when pay is computed according to the number of work
hours rendered
Daily basis – when pay is computed according to the number of
workdays rendered
Weekly basis – when pay is computed according to the number of
workweeks rendered
Monthly basis – when pay is computed according to the number of work
months rendered

Compensation rates are influenced by internal and external factors.

Among the internal factors are the organization’s compensation policies, the

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importance of the job, the employees’ qualifications in meeting the job
requirements, and the employer’s financial stability.
External factors, on the other hand, include local and global market
conditions, labor supply, area/regional wage rates, cost of living, collective
bargaining agreements, and national and international laws, among others.

Purposes of Performance Evaluation: Administrative and Developmental

Improving individual job performance through performance evaluation is just
one of the reasons why employees are subjected to assessments on a
continuous basis. There are other purposes behind employee assessment that
are beneficial to the company and employee.
Administrative Purposes – These are fulfilled through appraisal/
evaluation programs that provide information that may be used as a basis for
compensation decisions, promotions, transfers, and terminations.
Human resource planning may also make use of it for the recruitment
and selection of potential employees.
Developmental Purposes – These are fulfilled through appraisal/
evaluation programs that provide information about employee’s performance
and their strengths and weaknesses that may be used as a basis for identifying
their training and developmental needs. Through this approach, the workers
become more receptive to explanations given by the organization’s
management regarding the importance of having evaluations at regular
intervals – that these are conducted to improve their competencies to prepare
them for future job assignments.
Different performance appraisal methods are used depending on the
information an evaluator aim to find out.

Performance Appraisal Methods

Methods of evaluating workers have undergone development to adapt to
new legal employment requirements and technical changes. Some appraisal
methods used today are the following:
1. Trait Methods – performance evaluation method designed to find out
if the employee possesses important work characteristics such as
consciousness, creativity, emotional stability, and others
2. Graphic rating scales – performance appraisal method where each
characteristic to be evaluated is represented by a scale on which the
evaluator or rater indicates the degree to which an employee
possesses that characteristic
3. Forced-choice method – performance evaluation that requires the
rater to choose from two statements purposely designed to
distinguish between positive or negative performance; for example:
works seriously – works fast; shows leadership – has initiative
4. Behaviorally anchored rating scale (BARS) – a behavioral approach
to performance appraisal that includes five to ten vertical scales, one
for each important strategy for doing the job and numbered
according to its importance

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 5. Behavior observation scale (BOS) – a behavioral approach to
performance appraisal that measures the frequency of observed
behavior

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company
which can be justified by the following advantages: (Enriquez, 2016)
➢ Promotion: Performance Appraisal helps the supervisors to chalk out
the promotion programs for efficient employees. In this regard,
inefficient workers can be dismissed or demoted in case.
➢ Compensation: Performance Appraisal helps in chalking out
compensation packages for employees. Merit rating is possible
through performance appraisal. Performance appraisal tries to give
worth to performance. Compensation packages which include
bonuses, high salary rates, extra benefits, allowances, and pre-
requisites are dependent on performance appraisal. The criteria
should be merit rather than seniority.
➢ Employees Development: The systematic procedure of performance
appraisal helps the supervisors to frame training policies and
programs. It contributes to analyzing the strengths and weaknesses
of employees so that new jobs can be designed for efficient
employees. It also helps in framing future development programs.
➢ Selection Validation: Performance Appraisal helps the supervisors to
understand the validity and importance of the selection procedure.
The supervisors come to know the validity and thereby the strengths
and weaknesses of the selection procedure. Future changes in
selection methods can be made in this regard.
➢ Motivation: Performance Appraisal serves as a motivation tool.
Through evaluating the performance of employees, a person’s
efficiency can be determined if the targets are achieved. This very
well motivates a person for a better job and helps him to improve his
performance in the future.

Why Some Evaluation Programs Fail

Performance appraisals (such as manager/supervisor appraisal, self-
appraisal, subordinate appraisal, customer appraisal, peer appraisal, team
appraisal, or 360-degree appraisal) may sometimes fail due to various
reasons including the following:
• the inadequate orientation of the evaluatees regarding the
objectives of the program;
• incomplete information of the evaluatees (e.g. proper answering of
the evaluation questionnaire);
• bias exhibited by evaluators;
• inadequate time for answering the evaluation forms;
• ambiguous terms used in the evaluation questionnaire;
• employee’s job description is not properly evaluated by the
evaluation questionnaire used;

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 • inflated ratings resulting from the evaluator’s avoidance of giving
low scores;
• evaluator’s appraisal is focused on the personality of the evaluatee
and not his or her performance;
• the unhealthy personality of the evaluator; and
• the evaluator may be influenced by organizational politics.

REWARD SYSTEM
Organizations offer competitive rewards systems to attract
knowledgeable and skilled people and to keep them motivated and satisfied
once they are employed in their firm. Further, rewards promote personal
growth and development and present fast employee turnover. Management
offers different types of rewards:
Monetary rewards – rewards that pertain to money, finance, or currency.
a. Pay/Salary – financial remuneration given in exchange for work
performance that will help the organization attain its goals; examples:
weekly, monthly, or hourly pay, piecework compensation, etc.
b. Benefits – indirect forms of compensation given to employees/
workers to improve the quality of their work and personal lives; health
care benefits, retirement benefits, educational benefits, and others
are examples of these
c. Incentives – rewards that are based upon pay-for-performance
philosophy; it establishes a baseline performance level that
employees or groups of employees must reach to be given such
reward or payment; examples; bonuses, merit pay, sales incentives,
etc.
d. Executive Pay – a compensation package for executives of
organizations which consists of
➢ A research on effective
five components: basic salary,
rewards systems by the Center for
bonuses, stock plans, benefits, Effective Organizations revealed
and perquisites that rewards systems can influence
e. Stock Options – are plans that six factors or areas that impact
grant employees the right to buy organization effectiveness. These
a specific number of shares of are:
the organization’s stocks at a • attention and knowledge;
guaranteed price during a • motivation of performance;
selected period • skills and knowledge;
• culture;
• reinforce and define structure; and
Nonmonetary Rewards – rewards cost.
that do not pertain to money, finance, or
currency; refer to intrinsic rewards that are Read the research text at
self-granted and which have a positive http://ceo.usc.edu/pdf/G935225.pdf
psychological effect on the employee
who receives them.
a. Award – a nonmonetary reward that may be given to individual
employees or groups/teams for meritorious service or outstanding

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

EMPLOYEE RELATIONS
Employee relationships apply to all phases of work activities in
organizations, and managers to be effective, must be able to encourage
good employee relations among all human resources under his or her care.
Employees/workers are social beings who need connections or relations with
other beings – other employees/workers – who can give them social support
as they carry out their tasks in the organization where all of them belong.
Talking to a co-worker, perceived to be a friend, or working on a delicate task
with others can be comforting during times of stress, fear, or loneliness. When
these negative feelings are overcome, employees will be able to work better
toward the achievement of their organization’s goal.

Effective Employer Relations and Social Support

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

Below are some barriers to good employee relations:

• Anti-social personality: refusal to share more about oneself to co-
employees; being a loner
• Lack of trust in others
• Selfish attitude; too many self-serving motives
• Lack of good self-esteem
• Not a team player
• Being conceited
• Cultural/subcultural differences
• Lack of cooperation
• Communication problems: refusal to listen to what others seek to
communicate
• Lack of concern for others’ welfare

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

• Develop a healthy personality to overcome negative attitudes and
behavior.
• Find time to socialize with coworkers.

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 • Overcome tendencies of being too dependent on electronic
gadgets.
• Develop good communication skills and be open to others’ opinions.
• Minimize cultural/subcultural tension.

The Benefits of Strong Employment Relations

Having a strong employer and employee relations reaps a lot of benefits
for your business. The most advantages are listed below: (Enriquez, 2016)
1.Productivity
Strong employment relations create a pleasant atmosphere within the work
environment; it increases employee motivation and can also be increased
through improved employee morale. Companies that have invested in
employee relations programs have experienced an increase in productivity,
and therefore, the increased productivity leads to increases in profits for the
business.
2.Employee Loyalty
Creating a productive and pleasant work environment has a drastic effect on
an employee’s commitment to the firm, it encourages a loyal workforce.
Having such a labor force improves employee retention, in doing so the cost
of recruitment, hiring, and training are cut drastically. For most businesses, the
high cost of employee turnover outweighs the cost of the employee relations
program that they have in place. Another benefit is that when the employee
turnover is low, it ensures that the employer has a trained and skilled set of
employees.
3.Conflict Reduction
When a work environment is efficient and friendly, the extent of conflict within
the workplace is reduced. Fewer conflict results in the employees being to
concentrate on the tasks at hand and they are therefore more productive. All
the research and statistics lead to one conclusion, ‘A happy workforce is a
productive workforce.’ Creating a sound and efficient work environment with
excellent management and a strong employer-employee relation can be the
vital key to any business success or failure.

Table 1. Three Types of Employees

Engaged • employees who work with passion and feel a deep
connection with their company
• they drive innovation and move the organization
forward
Not Engaged • employees who are essentially “checked out”
• they put time, but not energy or passion, into their work

Actively • employees who are not only unhappy at work but also
Disengaged act out their unhappiness
• they undermine what their engaged coworkers
accomplish

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According to a study on employee engagement published by www.gallup.com, there are
three types of employees, as shown in this table. Employee engagement may be influenced
by the kind of relationships employees have in their workplace.

EMPLOYEE MOVEMENTS
A labor union is a formal union of employees/workers that deals with
employers, representing workers in their pursuit of justice and fairness and in
their fight for their collective or common interests.
Employees or workers unionize because of financial needs, unfair
management practices, or social and leadership concerns.
a. Financial needs – complaints regarding wages or salaries and
benefits given to them by the management are the usual reasons
why employees join labor unions
b. Unfair management practices – perceptions of employees regarding
unfair or biased managerial actions are also the reason why they join
mass movements; examples of lack of fairness in management are
favoritism related to promotion and giving of training opportunities
and exemption from disciplinary action
c. Social and leadership concerns – some join unions for the satisfaction
of their needs for affiliation with a group and for the prestige
associated with coworkers’ recognition of one’s leadership qualities

Figure 2. Company owners have to make sure that they make their employees
satisfied in order to prevent a labor strike.

Steps in Union Organizing

Terry Moser, an expert union organizer was credited by Snell and
Bohlander (2011) for the following union-organizing steps:
Step 1. Employee/Union Contact – to explore unionization possibilities,
employees weigh the advantages and disadvantages of seeking labor
representation while the union officers gather more data about the
employee’s complaints, as well as data about the employer’s management
styles, financial stability, policies, etc. these actions by employees and union

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officers are necessary to build a case against the employer and defense for
the employees’ decision to unionize.
Step 2. Initial organizational meeting – This is conducted to attract more
supporters and select potential leaders among the employees who can help
the union organizers. Information or data obtained in Step 1 will be used by the
organizers to meet the employees’ need to explain the means to accomplish
their goals.
Figure 3. The Collective Bargaining Process

Step 3. Formation of the in-house organizing committee – this starts with the
identification of employees who are ready to act as leaders in campaigning
for their goals, in trying to get the interests of the other employees to join their
movement, and in convincing employees to sign an authorization card to
show their willingness to be represented by a labor union in collective
bargaining with their employer. The strength of the union is shown by the
number of employees who signed the authorization card. At least 30
employees must sign the said card before the National Labor Relations
Commission (NLRC) approves the holding representation election.
Step 4. If a sufficient number of employees support the union movement, the
organizer requests for a representation election or certification election – a
representation petition is filed with the NLRC asking for the holding of a secret
ballot election to determine the employees’ desire for unionization. Before the
election, leaders’ campaign for employees’ support for the election and
encourage them to cast their votes. Intense emotions are shown by
employees, the labor group, and the employers during this period.
Step 5. End of union organizing – when a sufficient number of votes is garnered,
the NLRC certifies the union as the legal bargaining representative of the
employees. Contract negotiation or collective bargaining agreement (CBA)
negotiations follow the certification. The CBA process involves the following
procedures:

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a. Prepare for negotiations – data to support bargaining proposals are
collected and arranged in an orderly manner by both parties – the
union and the employer’s groups. This is followed by the selection of
the members of their respective bargaining teams. Usually, each side
has four to six representatives at the bargaining table. The chief
negotiator for the union is the union president while the chief
negotiator for management is the organization’s vice president of
the labor relations manager. Supporting data to back up the
positions of each group are gathered. Economic data are very
important. Other internal organization data
needed include records of promotions, ➢ The National Labor
transfer, overtime work, grievances, Relations Commission
disciplinary actions, and arbitration. (NLRC) is an attached
agency of the DOLE. The
b. Develop strategies – management proposals
NLRC is a quasi-judicial
are developed and limits of concessions are
body that is tasked to
determined, while also considering the resolve disputes between
union’s goals and their possible strike plans. the labor force and
The union, on the other hand, tried to management in order to
develop better strategies to convince the preserve industrial
management group to accept its proposals. peace.
c. Conduct Negotiations – this consists of bargaining, analyzing
proposals, resolving issues related to the proposals, and
remembering to stay within their respective bargaining zone. If no
agreement is reached at this point, a deadlock may result.
The union’s bargaining power may be exercised by holding a
strike, picketing, or boycotting the employer’s products or services.
The management’s bargaining power, on the other hand, maybe
exercised either by continuing operations or shutting down
operations. Another method is by a lockout of its employees or
denying the employees the opportunity to work.
Unions and employers may try to resolve bargaining deadlocks by
mediation or arbitration. Mediation is the use of a neutral third party
to reach a compromise decision in employment disputes. Arbitration
also uses a neutral third party who resolves the labor dispute by
issuing a final decision in the disagreement.
d. Formalize agreement – after the negotiation process, the union and
the management group have to formalize their agreement. This
agreement is a formal binding document that lists down the terms,
conditions, and rules under which employees and managers agree
to operate; the clear language must be used in the contract, which
has to be ratified by the majority of the employees. After ratification,
all the members of the union and the management bargaining
teams, as well as the president or chief executive officer of the
organization, must sign the document before its dissemination to all
parties concerned.

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

Grievance Procedure
The grievance procedure is a formal procedure that authorizes the union to
represent its members in processing a grievance or complaint. Such grievance
must be expressed orally or in writing to the employee’s immediate supervisor
and the union steward. If the immediate supervisor shows a willingness to
discuss the complaint with the employee and the union steward, the
grievance may be resolved immediately.
This is possible especially if the supervisor has formal training in handling
grievances. If not resolved within ten working days, the employee forwards the
grievance to the department manager and the chief steward of the union.
Again, the resolution of the grievance is possible at this point if the department
manager is willing to discuss the matter with the employee and the chief
steward. However, if this remains unresolved, the next step is for the employee
to forward the complaint to the vice president for labor relations and the local
union president after 15 workdays. Resolution of the matter is possible, but if
nothing happens within 30 workdays, the employee may now forward the
complaint, with the aid of the local union president, to the NLRC arbitration.
The arbitrator is a neutral third party who resolves the grievance by issuing a
final decision which both parties – the employee, represented by the union
president, and the employer – have to follow.

Source: (lapilipinas, 2016)

Figure 4. The Philippine government has implemented a law that requires business
establishment to give 13th month pay to all employees that have worked for them for at least
a month.

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III. WHAT HAVE I LEARNED
EVALUATION:
A. Direction: Choose the correct word(s)/term(s) from the box that is being
described in the statements below. Write only the letter of the best answer
in your activity notebook.
A. Compensation G. Graphic Rating Scales
B. Direct Compensation H. Grievance procedure
C. Employee Relations I. Trait methods
D. Engaged Employees J. National Wages & Productivity
E. Expectancy Theory Commission
F. Financial needs K. Weekly basis

1. These are all forms of pay given by employers to their employees for
the performance of their jobs.
2. This theory predicts that employees are motivated to work well
because of the attractiveness of the rewards or salary that they may
receive from a job assignment.
3. A compensation that includes worker’s salaries, incentive pays,
bonuses, and commissions.
4. This is the connection created among employees as they do their
assigned tasks for the organization to which they belong.
5. A formal procedure that authorizes the union to represent its
members in processing a complaint.
6. A government agency that is concerned with minimum wage
determination in the country.
7. A performance method where each characteristic to be evaluated
in represented by a scale.
8. A performance evaluation method designed to find out if the
employee possesses important work characteristics.
9. A complaint regarding wages or salaries and benefits given to the
employees by the management.
10. These are employees who work with passion and feel a deep
connection with their company.

B. Answer the following questions succinctly. Write your answer in your

activity notebook.
1. Do you agree with the statement that the evaluator’s bias may cause
the evaluation program to fail? Explain your answer.
2. How important is effective employee relations in achieving the goals
of the company?
3. Give the reasons why employees organize a labor union. Support your
answer.
4. In this time of the pandemic, what do you think is/are the best
reward(s) an employer can offer to their employees especially to the
frontliners (e.g. medical workers, sales staff, security guards, etc.) who
are risking their lives for the benefit of all? Explain your answer.

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 REFERENCES

Cabrera, H., Altajeros, A., & Riaz, B. et al (2016). Organization and

Management. Quezon City: Vibal Group, Inc.
Enriquez, E., et al (2016). Organization and Management. Manila, Philippines:
JFS Publishing Services.
lapilipinas. (2016). The Faces and Landmarks of Philippines Money. Retrieved
from steemit: https://steemit.com/history/@lapilipinas/the-faces-and-
landmarks-of-philippines-money
Latte, C. T. (2018, February 2). Coding Problem: Balancing a Scale. Retrieved
November 1, 2020, from www.medium.com/@erica13chai/coding-
problem-balancing-a-scale-11da8d88c823
Vectorstock. (n.d.). Business People on Strike - Modern Cartoon Vector
Image. Retrieved November 1, 2020, from
www.vectorstock.com/royalty-free-vector/business-people-on-strike-
modern-cartoon-people-vector-22052349

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