Management

Module 10:
Delegation and Stages of Team
Development
Delegation
 It is defined as a process by which a
manager assigns and transfers
duties, authority, and responsibility
to his or her subordinates
 Delegation is empowering others to
get the job done.
 The delegated task must satisfy the
following SMARTER indicators

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Assignment and Transfer of Duties
1. S- specific
o Delegation requires communication
between two individuals. A manager
should give a clear instructions to his or
her employee in a language or form
that the latter could fully understand.

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Assignment and Transfer of Duties
2. M- measurable
o A manager must ensure that he or she
clearly explains to the employee any
quantitative and qualitative features or
indicators that are expected of the
delegated task or output.

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Assignment and Transfer of Duties
3. A- attainable
o A manager must know the skills and
capabilities of the employee to
determine if he or she can successfully
perform the delegated task.

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Assignment and Transfer of Duties
4. R- realistic
o A manager must ensure that the
delegated task is a realistic one , and
not something ideal came out from his
or her imagination

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Assignment and Transfer of Duties
5. T- time-bound
o A manager delegating the task must
specify the time and date for it to be
completed. The amount of time must
be reasonable enough for the task to
be accomplished in the desired way of
the manager.

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Assignment and Transfer of Duties
6. E- ethical
o A manager delegating the task must
reflect on any ethical issue involved in
accomplishing the task.

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Assignment and Transfer of Duties
7. R- recorded
o A manager must ensure proper
communication with the employee in a
manner that can be recorded for
documentation purposes.

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Assignment and Transfer of
Authority and Responsibility
o In a business organization,
authority refers to the power and
right conferred to a person to
allocate resources, make decisions,
issue orders, or sign documents by
virtue of his or her position.

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 In delegation, the manager assigns
and transfers authority to the
employee to do delegated task. In
doing so, the manager must
understand the following:
 Responsibility
 Accountability
 Release

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Stages of Development of a Team
 Teams can be classified according to
their contribution to the
performance of the organization.
 Teams for Functional Unit
 Teams for Leading Groups
 Teams for Advisory Purpose

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Stages of Team Development

1. Forming
2. Storming
3. Norming
4. Performing
5. Adjourning

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 Management

Module 11:
Staffing, Recruitment, Selection and
Training
Staffing
 It pertains to determining the
number of people with the right
skills for specific units in the
organization, getting the right
applicants for the vacant job
position and selecting the right
candidate for the job.

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The foundation of Staffing
 Job analysis- refers to the
collection and analysis of all
relevant information and facets
about the job that is done in a
systematic and orderly manner.

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 Job Analysis
(in-depth study of the job)

Job Description Job Specification

(Key responsibility, (Skills, education
reporting arrangements, experience required)
work environment)

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Recruitment
 The process of getting and
attracting a pool of qualified
applicants to fill a vacant job
position.

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Employment Options and potential
strategic issue
 Hiring regular employees
 Hiring full-time or part time
employees
 Hiring through an independent
contractor or an employment
agency

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Steps in Recruitment Process

1. Advertise the Job Vacancy

 Internal Recruitment
 External Recruitment

2. Screen Applicants to Create a

Short-list of Candidates

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Steps in Recruitment Process

3. Conduct a Background Check

4. Contact Potential Candidates for

Preliminary Interview

5. Refine the Short-list of Applicants

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Selection
 This is the process of choosing the
individual to hire from a pool or
short-list of job applicants

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Steps in Selection
1. Conduct Further Interview
 Behavioral Interview
 Situational Interview

2. Administer Employment Test

 Reliability
 Validity
 Actual Demonstration

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Steps in Selection

3. Offer to Hire the Chosen Applicant

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Training
 To orient new employee in the
workplace
 To develop the skills of employee
 To enhance teamwork

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Employee Orientation Programs
 Orientation Programs (induction
training)
 It is planned program of adjustment of
a new hire to his/her new company

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Employee Orientation Programs
 Skill Training and Competency
Enhancement Programs
 This training programs focus on
enabling employees to learn the skills
required to perform a job, or to
enhance competencies to achieve a
higher work performance

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Employee Orientation Programs
 Team Building Program
 Managers need to develop the team
spirit among employees and across
units and department of the company

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Other Methods of Training and
Development
 Coaching and Mentoring
 Coaching- one-on-one training
 Mentoring- another form of coaching

wherein a more senior or more experience

manager gives regular or learning
advices.
 Career Development
 Succession Planning

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Management 10/e - Chapter 9 30
 Management

Module 12:
Compensation Policy
Compensation Policy and
Importance
 Compensation Policy is a set of
general guidelines established by
the top management of a company
in paying and rewarding employees
for the work they rendered.

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 People give a competitive edge to
the business through their unique
skills and talents.
 Effective compensation policy
increase employee loyalty to the
company.
 An effective compensation policy
helps to attract applicants to join
the company

Management 10/e - Chapter 9 33

 Management Considerations in a
Compensation Policy

1. Economic
 Managers take into account and
balance important factors when
setting the company’s compensation
policy.
Compensation Policy’s Compensation Policy’s
Ability to Capacity to

• Attract Applicants Maintain a cost structure that

• Motivate Employees enables a company to complete
• Retain Employees effectively and efficiently in its
markets
Management 10/e - Chapter 9 34
 2. Fairness
Managers must ensure that the
company’s policy for compensation
is perceived as fair and equitable
by the employees

Equity Theory
of Motivation

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3 Types of Equity Perceptions
among Employees

1. Internal Equity
 Is when employee perceives fairness
in pay differentials among the
different jobs within their organization

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3 Types of Equity Perceptions
among Employees

1. External Equity
 When an employee perceives fairness
in his or her compensation relative to
others holding the same or
comparable jobs outside the
organization

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3 Types of Equity Perceptions
among Employees

1. Individual Equity
 When an employee perceives fairness
in pay differentials among coworkers
holding identical jobs within their
organization.

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Things to Consider on
Compensation Policy of a company
1. Market Competitiveness
o A company will adopt employee
salary levels based on the
market rates prevailing in the
industry to provide a
compensation package that is
attractive to current and
potential employees.

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Things to Consider on
Compensation Policy of a company
2. Link with Company Performance
o A company that continually
experiences high financial
growth for many years is
expected to increase the
compensation of its employee.,

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 Components of a Compensation
System

Direct Compensation Indirect Compensation

Base Pay Salaries Legally Acquired

and wages SSS, Pag-IBIG,
PhilHealth

Incentive Pay Optional

Bonus, commission, profit Retirement, pension plans
sharing, stock option, merit Life insurance
increase Educational plan

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 Direct Compensation is a type of
compensation given by the company
to employees based on the extent of
work actually rendered by the
employee
 Indirect Compensation refers to other
type compensation given by the
company to its employees either in
compliance with the law or as optional

Management 10/e - Chapter 9 42

Direct Compensation
 Base Pay – it consists of salaries
which are compensations computed
on a fixed, monthly basis
 Incentives – are in form of bonuses,
commissions, profit sharing
semiannually, and stock options

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 Bonus – additional compensation
given to employees, which may be
monthly, quarterly or semiannually

 Commissions- are payments to

employees as a percentage of a
quantity of output that they have
produced or sold

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 Profit sharing arrangements-
additional compensation given to
employees based on the outcome of
company profitability rates.

 Stock options- stock ownership

arrangements given to employees
as additional compensation or
reward for high performance

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 Merit increase – additional
compensations given to individuals
who have performed exceptionally
well.

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Indirect Compensation

 Legally Acquired Benefits

 SSS (private employees)
 GSIS (Government employees)
 Pag-IBIG
 PhilHealth

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Indirect Compensation

 Optional Benefits
 It pertains to additional benefits that
the company provides, depending on
the company policy or decision of the
top management
 Medical insurance , life insurance,
retirement plans, car plans,
Membership of clubs and tuition
reimbursement or scholarships

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Incentives Based on Individual vs.
Group performance
 Rewards
 Employees who perform well are
rewarded by companies. Giving reward
encourages the high performers to
keep up with their good work or to
perform even much better.

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Extrinsic Rewards
 This are monetary or material
rewards. These may be in the form
of bonuses, salary increases, merit
increases, car plans, or other
material incentives that serves to
reward and motivate employees.

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Intrinsic Rewards
 These are non monetary rewards
given to employees who performed
well.
 Recognition program such as
Employee of the Month or Best
Employee award

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Some Implications for Rewarding
Managers with Financial Incentives

Management 10/e - Chapter 9 52

Management 10/e - Chapter 9 53
 Management

Module 13:
Performance Appraisal and
Employee Relations
Performance Appraisal
 Refers to the evaluation of an
employee’s performance to provide
meaningful information to asses
individual needs for improvement,
and for the organization to plan for
the future.
 It is also called performance
management, performance evaluation
or performance measurement.

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Purposes of Performance
Appraisal
 Developmental Purposes

 Strategic Purpose

 Administrative Purpose

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Characteristics of a Good
Performance Appraisal
 Clarity of Purpose
 Well-discussed Expectations for the
Job
 Alignment of Performance Appraisal
Goals with Organizational Goals is
Understood

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Policy Decisions in Performance
Appraisal
 Who Evaluates

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 What to Evaluate
 The specific areas to assess or measure
may cover the following:

1. Traits-based measure

2. Behavior-based measure

3. Result-based measure

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 How to evaluate
 Performance appraisals can be
administered using different methods.
Formal methods may use written
questionnaires, online surveys or
customer feedback
 Employee appraisals can also use
absolute measures or relative
measures assessment

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 Absolute measure – assess the
employee performance based on a
specific performance standard
 Relative measure – involve
comparing the evaluation result of
an employee vis-à-vis those of
other person within a group

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 When to evaluate
 It should be a part of the company’s
appraisal policy to specify the time
period, or a regular schedule for
conducting performance appraisals of
employees.

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Employee Relations
 It pertains to company efforts to
enhance and maintain harmonious,
peaceful, and productive relations
between the management and its
employees. It is also called labor-
management relations, especially in
organizations where workers form
union

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Importance of Employee Relations
 To promote a spirit of partnership
between management and employees
that led to business growth and
human development
 To establish systems and procedures
for management and employees to
freely discuss, negotiate, and settle
issues that may arise, particularly
those related to employee rights and
benefits

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Importance of Employee Relations
 To encourage workers’ participation
in policy and decision-making on
matters that concern their interest
 To promote a sustainable human
resource management and
development
 To establish and promote employee
grievance system

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Importance of Employee Relations
 To establish and promote a code of
discipline
 To prevent economic losses that
may result due to labor strikes, or
to reduce their negative effects

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Labor Unions and Collective
Bargaining
 To promote effective labor-
management relations, some
private companies and public
organizations have workers’ unions.
These are called unionized
organization.

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 Labor unions are formal
associations formed by workers
within an organization as a vehicle
for promoting and protecting
employees’ interest

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 Labor unions in the Philippines
register with DOLE Bureau of Labor
Relations to acquire a legal
personality.
 National Labor Relation Commission
(NLRC) is in charge in handling
mediation and dispute settlement

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Collective Bargaining
 Is a process in which the workers
who are members of union meet
with representatives of
management to discuss and
negotiate the specific issues and
proposal raised by the union
concerning their compensation and
work conditions.

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 Example of companies that have
unions are Bank of the Philippine
Islands, Meralco, PLDT, and San
Miguel Corporation

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Employee Relations in
Nonunionized Companies
 In nonunionized companies,
managers develop employee
relations by having a proactive
approach to promote workers’
welfare.

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Employee Movements
 It pertains to modifications in the
status or nature of employment of
personnel. Its related to employee
promotion, separation and
retirement.

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Promotion
 Refers to upward or vertical
movement

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Management 10/e - Chapter 9 75
Management 10/e - Chapter 9 76