QUARTER 2

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.
O

2.
D

3.
R

1
 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
Recruitment
Screening and
selection
interviews

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

Step 4 – Adaptation to
the workplace Orientation

Figure 1. Steps in Hiring Employees effectively

2
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
[Link], [Link], 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.

3
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.

4
 Advantage and disadvantage of Internal and External Recruitment
Internal Recruitment External Recruitment
Advantages Advantages
 Cheaper and quicker to  Outside people bring in new ideas
recruit  A larger pool of workers from which to
 People already familiar with find the best candidate
business and how it operates  People have a wider range of
 Provides opportunities for experience
promotion with in the business Disadvantages
Disadvantages  Longer process
 The business already knows the  More expensive process due to
strengths and weaknesses of the advertisements and interviews required
candidates  The selection process may not be
 Limits number of potential effective enough to reveal the best
applicants candidate
 No new ideas can be introduced
from outside
 May cause resentment 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

5
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.

6
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.

7
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.

8
 [Link] 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.

9
 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
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

10
 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 tremendously
changed in the 21st century due to increased market The daily minimum
competition (both local and wage rate differs in relation 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

11
 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 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.

12
 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
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.
13
  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;
 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.

14
 d. Executive Pay – a compensation package for executives of
organizations which consists of
A research on effective
five components: basic salary, bonuses, rewards systems by the Center for
stock plans, benefits, and perquisites Effective Organizations revealed that
e. Stock Options – are plans that rewards systems can influence six factors
grant employees the right to buy a or areas that impact organization
specific number of shares of the effectiveness. These are:
organization’s stocks at a guaranteed attention and knowledge;
price during a selected period motivation of performance;
skills and knowledge;
Nonmonetary Rewards – rewards that do culture;
reinforce and define structure; and cost.
not pertain to money, finance, or currency; refer to
intrinsic rewards that are self-granted and which Read the research text at
have a positive 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

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.

15
 Below are some barriers to good employee relations:
 Anti-social personality: refusal to share more about oneself to co- employees;
being a loner
 Lack of trust in others
 Selfish attitude; too many self-serving motives
 Lack of good self-esteem
 Not a team player
 Being conceited
 Cultural/subcultural differences
 Lack of cooperation
 Communication problems: refusal to listen to what others seek to communicate
 Lack of concern for others’ welfare

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

 Develop a healthy personality to overcome negative attitudes and behavior.
 Find time to socialize with coworkers.
 Overcome tendencies 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) [Link]
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.

16
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 act out their
Disengaged unhappiness
 they undermine what their engaged coworkers
accomplish

According to a study on employee engagement published by [Link], 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.

17
 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 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:

18
 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, transfer,
overtime work, grievances, disciplinary actions, and  The National Labor Relations
Commission (NLRC) is an
arbitration.
attached agency of the DOLE.
b. Develop strategies – management proposals The NLRC is a quasi-judicial
are developed and limits of concessions are body that is tasked to resolve
determined, while also considering the union’s goals disputes between the labor
and their possible strike plans. The union, on the other force and management in
hand, tried to develop better strategies to convince the order to preserve industrial
management group to accept its proposals.
c. Conduct Negotiations – this consists of bargaining, analyzing
proposals, resolving issues related to the proposals, and remembering to stay within
their respective bargaining zone. If no agreement is reached at this point, a deadlock
may result.
The union’s bargaining power may be exercised by holding a strike, picketing,
or boycotting the employer’s products or services. The management’s bargaining
power, on the other hand, 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.

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

19
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 13 th
month pay to all employees that have worked for them for at least a month.

[Link] 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 Trait
C. Employee Relations I. 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.
bonuses, and commissions.
20
 3. This is the connection created among employees as they do their assigned tasks
for the organization to which they belong.
4. A formal procedure that authorizes the union to represent its members in
processing a complaint.
5. A government agency that is concerned with minimum wage determination in the
country.
6. A performance method where each characteristic to be evaluated in represented by
a scale.
7. A performance evaluation method designed to find out if the employee possesses
important work characteristics.
8. A complaint regarding wages or salaries and benefits given to the employees by
the management.
9. 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.
REFERENCES

Cabrera,H. PhD, Altarejos, A, PhD, Benjamin, R., et al 2016. ORGANIZATION AND MANAGEMENT. PASIG:
VIBAL GROUP.

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:
[Link] landmarks-of-philippines-money
Latte, C. T. (2018, February 2). Coding Problem: Balancing a Scale. Retrieved November 1, 2020, from
[Link]/@erica13chai/coding- problem-balancing-a-scale-11da8d88c823
Vectorstock. (n.d.). Business People on Strike - Modern Cartoon Vector Image. Retrieved November 1,
2020, from [Link]/royalty-free-vector/business-people-on-strike-
modern-cartoon-people-vector-2205234

21
22
23
24
25
26