Organization and Management Las Quarter 2 Module 3

LEARNING ACTIVITY SHEET
ORGANIZATION AND MANAGEMENT

QUARTER 2- MODULE 3
The Importance of Compensation, Wages and Performance Evaluation, Appraisal,
Reward System, Employee Relations and Movement.
NAME: ________________________________ DATE: __________________
SECTION: ______________________________ SCORE: _________________
Objectives:
1. Identify the policy guidelines on compensation and wages and performance evaluation or
appraisal;
2. Discuss the importance of employee relations; and
3. Differentiate various employee movements
I. What I Know
Activity 1. Read and understand the paragraph.
Julie likes to convince her classmates that they should be an Entrepreneur and
should start a small business. And because of her dreams she and her older brother choose
ABM. The wanted to know the training and development needed by an individual to
understand the firm.
Julie and Jericho convince their parents that they should put up a small carenderia
since their mother loves to cook and her father can finance the business since her father is
a manager YZX Corporation. Jericho’s task is for the salary of their employees, He wanted
to know more about compensation/wages and performance evaluation, so he always asks
for his teacher about the bases for compensation and after class he and her sister will study
in the library, and they are brainstorming about the types of compensation
Julie wanted their carenderia to become a mini resto, she always thinks of ways on
how to be a good employer at the same time a studious student and a respectful daughter.
She believes that whatever comes their way, they will find a way to become successful.
Jericho a simple guy that reads a lot about business, He prioritize his study, their
carenderia and his family.
II. What You Need to Know

Conducting the training needs assessment
Training needs assessment must be done systematically in order to ascertain if there really
is a need for training. Managers must first try to observe the business condition and the
economic, strategic and technological changes that are happening in the organization’s
environment before proceeding to the analyses of the organization, task and persons
‘individuals, as all these are determinants of training types required for the maintenance of
the firm’s stability. Examples of organization analyses include the analyses of effects of
downsizing, branching out conflicts with rival companies, and others that may require
training or retraining of employees.
What are the different learning principles?
Modeling – the use of personal behavior to demonstrate the desired behavior or method to
be learned.
Feedback and reinforcement – learning by getting comments or feedback from trainees
themselves, from trainers, or fellow trainees, which can help the individual realize what
they are doing wrong; reinforcement is accomplished through verbal encouragement or by
giving rewards such as prizes, awards, and others.
Massed v. distributed learning - learning by giving training through either few, long
hours of training (massed) or series of short hours of training (distributed).
Goal-setting – learning through the explanation of training goals and objectives by the
trainers to the trainees.
Individual differences – training programs that take into account and accommodate the
individual differences of the trainees in order to facilitate each. person’s style and rate of
learning.
Active practice and repetition –learning through the giving of frequent opportunities to
trainees to do their job task properly.
Designing the Training Program- This phase involves stating the instructional
objectives that describe the knowledge, skills and attitudes that have to be acquired or
enhanced to be able to perform well. In short, these are performance-centered objectives
that must be aligned with the firm’s objectives. Another thing to be considered is trainee
readiness and motivation. This refers to the trainees’ background knowledge and
experience, so that the training to be given to them will not go to waste. Different learning
principles, like using modeling, feedback, and reinforcement, massed vs. distributed
learning and others influence the training design’s effectiveness.
Implementing the Training Program- various types of training program
implementation include on-the-job training, apprenticeship training classroom instruction,
audio-visual method, simulation method and e-learning.
Evaluating the Training- the positive effects of the training program may be seen by
assessing the participants’ reactions, their acquired learnings and their behavior after
completing the said training, the effects of training may also be reflected by measuring the
return on investment (ROI) or through the benefits reaped by the organization, which were
about by their training investment.
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.
TYPES OF COMPENSATION
Direct Compensation – include workers’ salaries, incentive pays, bonuses and
commissions.
Indirect Compensation – includes benefits given by employers other than financial
remunerations; for example: travel, educational and health benefits and others.
Nonfinancial Compensation – includes recognition programs, being assigned to do
rewarding jobs or enjoying management support, ideal work environment and convenient
work hours.
COMPENSATION: A MOTIVATIONAL FACTOR EMPLOYEES
Compensation pay presents a reward that an employee receives for good
performance that contributes to the company’s success. In relation to this, the following
must be considered:
Pay Equity – related to fairness; the Equity Theory is a motivation theory focusing on
employees’ response to the pay that they receive and the feeling that they receive less or
more that they deserve. Employees generally feel that their pay must be commensurate to
the effort exerted in the performance of their job. In other words, pay equity is achieved
when the pay given to them by their employers is equal to the value of the job performed;
thus, this motivates them to perform well and to do their jobs to the best of their abilities.
Expectancy Theory – another theory of motivation which predicts that employees are
motivated to work well because of the attractiveness of the rewards or benefits that they
may possibly receive from a job assignment. The employee’s perception of the
compensation or pay attached to a job position is an important factor in ascertaining the
motivational value of compensation.
BASES FOR COMPENSATION
Employees may be compensated 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 work days rendered.
Weekly basis – when pay is computed according to the number of work weeks rendered.
Monthly basis - when pay is computed according to the number of work months rendered.
EMPLOYEE RELATIONS
Employee relations applies 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 are capable of
giving them social support as they carry out their tasks in the organization where all of
them belong. Talking to a coworker, perceived to be a friend or working on a delicate task
with others can be comforting during times of stress, fear or loneliness, when these
negative feelings are overcome, employees will be able to work better toward the
achievement of their organization’s goals
THREE TYPES OF EMPLOYEES

1. ENGAGED – Employees who work with passion and feel a deep connection with their
company, they drive innovation and move the organization forward.
2. NOT ENGAGED – Employees who are essentially “checked out”, they put time, but not
energy or passion into their work.
3. ACTIVELY DISENGAGED – Employees who are not only unhappy at work, but also act
out their unhappiness, they undermine what their engaged coworkers accomplish.
STEPS IN UNION ORGANIZING

Terry Moser, an expert union organizer, was credited by Snell and Bob lander (2011) for
the following union-organizing steps:
Step 1. Employee/union contact
Step 2. Initial organizational meeting
Step 3. Formation of in-house organizing committee
Step 4. If enough employees support the union movement, the organizer requests for a
representation election or certification election
Step 5. End of union organizing
When enough votes is garnered, the NLRC certifies the union as the legal bargaining
representative of the employees. Contract negotiations or collective bargaining agreement
(CBA) negotiation follow the certification. The CBA process involves the following
procedures. a. Prepare for negotiations. b. Develop Strategies c. Conduct negotiations d.
Formalize agreement
GRIEVANCE PROCEDURE
The grievance procedure is a formal procedure that authorizes the union to represent
its members in processing a grievance or complaint. Such grievance must be expressed
orally or in writing to the employee’s immediate supervisor and the union steward. If the
immediate supervisor shows willingness to discuss the complaint with the employee and
the union steward, the grievance may be resolved immediately.
This is possible especially if the supervisor has formal training in handling grievances.
If not resolved within ten work days, the employee forwards the grievance to the
department manager and the chief steward of the union. Again, resolution of the grievance
is possible at this point if the department manager is willing to discuss the matter with the
employee and the chief steward. However, if it remains unresolved, the next step is for the
employee to forward the complaint to the vice president for labor relations and the local
union president after 15 work days. Resolution of the matter is possible, but if nothing
happens within 30 work days, the employee may now forward the complaint, with the aid
of the local union president, to the NLRC for arbitration. The arbitrator is 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.
REWARDS SYSTEM
Organization 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.
Managements offer different types of rewards. Monetary reward- rewards which pertain to
money, finance or currency.
a. pay/salary – financial remuneration given in exchange for work performance that will
help the organization attain its goals; examples, weekly, monthly, or hourly pay, piecework
compensation, etc.
b. benefits – indirect forms of compensation given to employees/workers for the purpose
of improving the quality of their work and personal lives; health care benefits, retirement
benefits, educational benefits, and others are examples of these.
c. incentives – rewards that are based upon a pay-for-performance philosophy; it
establishes a baseline performance level that employees or groups of employees must
reach in order to be given such reward or payment; examples: bonuses, merit pay, sales
incentives etc.
d. executive pay – a compensation package for executives of organizations which consists
of five components: basic salary, bonuses, stock plans, benefits and perquisites.
e. stock option – are plans that grant employees the right to buy a specific number of
shares of the organization’s stock at a guaranteed price during a selected period of time.
Nonmonetary reward – rewards which do not pertain to money, finance or currency; refer
to intrinsic, rewards that are self-granted and which have a positive psychological effect
the employee who receives them.
a. award – nonmonetary reward that may be given to individual employees or
groups/teams for meritorious service or outstanding performance; trophies, medals or
certificates of recognition may be given instead of cash or extrinsic rewards.
b. praise – a form of nonmonetary, intrinsic reward given by superiors to their
subordinates when they express oral or verbal appreciation for excellent job performance.
Activity 2: MODIFIED TRUE OR FALSE. If the statement is correct, write True. If not,
underline the word which makes the statement incorrect, then write the correct answer on
the blanks provided before each number.
___________________1. Benefits refers to the Gift, prize or recompense for merit, service or
achievement, which may have a motivating effect on the employee.
___________________2. Not Engaged means - Employees who work with passion and feel a
deep connection with their company, they drive innovation and move the organization
forward.
___________________3. Indirect Compensation – includes benefits given by employers other
than financial remunerations; for example: travel, educational and health benefits and
others.
___________________4. Assessment- performance evaluation that requires the rater to
choose from tow statements purposely designed to distinguish between positive or negative
performance; for example: works seriously –works fast; shows leadership – has initiative.
___________________5. Weekly basis - when pay is computed according to the number of
work months rendered.
Activity 3: FILL IN the blank with WORD(S) that will complete the statements below.
GRIEVANCE PROCEDURE
The 1. ___________________ is a formal procedure that authorizes the union to
represent its members in processing a grievance or complaint. Such grievance must be
expressed orally or in writing to the employee’s immediate supervisor and the union
steward. If the immediate supervisor shows willingness to discuss the complaint with the
employee and the union steward, the grievance may be resolved immediately. This is
possible especially if the supervisor has formal training in handling grievances. If not
resolved within 2. ___________________, the employee forwards the grievance to the
department manager and the chief steward of the union. Again, resolution of the grievance
is possible at this point if the department manager is willing to discuss the matter with the
employee and the 3___________________. However, if it remains unresolved, the next step is
for the employee to forward the complaint to the vice president for labor relations and the
local union president after 4. ___________________ . 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 5. ___________________ for 6.
___________________ . The arbitrator is 7___________________. third party who resolves the
grievance by issuing a 8. ___________________ which both parties – the employee,
represented by the union president, and the employer – must follow.
Activity 4: What are the steps in union organizing?

Step 1
Step 2
Step 3
Step 4
Step 5
Prepared by:
Ms. Melrose F. Sta. Cruz
Subject Teacher

Organization and Management Las Quarter 2 Module 3

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LEARNING ACTIVITY SHEET

ORGANIZATION AND MANAGEMENT

SECTION: ______________ SCORE: _

II. What You Need to Know

THREE TYPES OF EMPLOYEES

STEPS IN UNION ORGANIZING

Activity 4: What are the steps in union organizing?

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