STAFFING PT.

GROUP 6
TOPIC OUTLINE:
1. Concepts of wages and salary administration
2. Performance evaluation and appraisal
3. Employee relations
4. Employee movements (promotion and transfer)
5. Rewards systems
COMPENSATION, WHAT IS?
is the set of rewards that organizations
provide to individuals in return for their
willingness to perform various jobs and tasks
within the organization.
 FACTORS
AFFECTING
COMPENSATION
LEVELS
ATTITUDE OF MANAGEMENT
Some firms have the policy of attracting the best
qualifies applicants. In order to do this, management
offers higher compensation which could include
housing benefits and/or profit sharing schemes than
the other firms in the industry. It is the belief of
these firms that better qualified applicants mean
lower training costs and possibly, lower employee
turnover.
JOB SPECIFICATIONS

Job specification can be used to access

the worth of each job relative to other
jobs. Using the job specification, positions
in the firm may be ranked or classified.
ENVIRONMENTAL FACTORS

The setting of wage or salary levels is

not entirely within the full control of
management.
 PRINCIPLES
GOVERNING
SAL ARY
ADMINISTRATION
PRINCIPLES GOVERNING SALARY
ADMINISTRATION
 Maintaining Competitiveness
Matching Employee Expectations
Reinforcing positive employee behavior
Eliminating any discrepancy
Optimization of management and employee
interests
Maintaining good IR and harmony
 PURPOSE OF
WAGE & SAL ARY
PURPOSE OF WAGE & SALARY

Attracting talented resources

Retaining and motivating employees
Financial Management
Legal Requirements
 DIFFERENT
FORMS OF
COMPENSATION
 DIFFERENT FORMS OF COMPENSATION
Payment for timed worked
Incentive forms of compensation
Performance incentives
Spot bonuses
Skill and knowledge-based pay/competency-based pay
Merit pay plans profit sharing
Stock ownership plans
Executive compensation
PERFORMANCE
EVALUATION/
APPRAISAL
T WO T YPES OF
PERFORMANCE
APPRAISAL
INFORMAL APPRAISAL

Conducted on a day to day basis.

SYSTEMATIC APPRAISAL

Ooccurs semi-annually or annually on a

formalized basis.
FOUR MA JOR
PURPOSES OF
SYSTEMATIC
APPRAISAL
FOUR MAJOR PURPOSES OF
SYSTEMATIC APPRAISAL
1. It lets subordinates know formally how their current
performance is being rated
2. It identifies those subordinates who deserve merit
raises
3. It locates those subordinates who require additional
training
4. It plays an important role in identifying those
subordinates who are candidates for promotion
PERFORMANCE
CRITERIA
PERFORMANCE CRITERIA
1. Relevance - relevance performance dimension are
determined by the duties and responsibilities contained in
the job description.
2. Reliability - should produce consistent and repeatable
evaluation
3. Freedom from contamination - should measure each
employee's performance without being contaminated by
factors that an employee cannot control such as: economic
condition, material shortage, poor equipment.
SOURCES OF
DATA IN
APPRAISAL
SOURCES OF DATA IN APPRAISAL
1. Production data - evaluate the degree of dependable
task accomplishment by measuring quantity and quality of
performance. Example: peso volume of sales, return on
investment, etc.
2. Personnel data - type of information found in an
individual's personnel files. Example: absenteeism, tardiness,
etc.
3. Judgement of others - the spontaneous and innovative
behavior of an employee be assessed by the judgement of
others.
EMPLOYEE
REL ATIONS
EMPLOYEE RELATIONS
Provides support to staff employees and supervisors
regarding:
Policies and procedures
Work related issues
Mediation and conflict resolution
Disciplinary process
Grievance process
EMPLOYEE
MOVEMENT
EMPLOYEE MOVEMENT
EMPLOYEE MOVEMENT

Promotion - Involves the reassignment of an

employee to a higher level job. This also refers
to the upward or vertical movement of
employees in an organization from lower level
jobs to higher level jobs involving increases in
duties and responsibility, higher pay and
privileges.
REASONS FOR
EMPLOYEE
PROMOTIONS
REASONS FOR EMPLOYEE
PROMOTIONS
An effective way to keep good men in the firm
As recognition of and reward for good
performance
To boost employee morale and encourage the
employees to render to the company the best
service they are capable of.
 BASIS OR
CRITERIA USED
FOR PROMOTION
BASIS OR CRITERIA USED FOR
PROMOTION
1. Seniority – length of service
a. Straight seniority – the length of service of an
employee is the sole basis for determining who gets
the promotion.
b. Qualified seniority – the more competent
employee as compared to another employee with
longer service will be the one promoted.
BASIS OR CRITERIA USED FOR
PROMOTION
2. Current and past performance
3. Assessment centres evaluate the qualified
candidates for promotion, w/c focus on the kinds of
skills and abilities to effectively perform the higher
level jobs that the candidates seek.
4. Competency or merit determined by the ratings or
evaluations received by the employees.
UNOFFICIAL
PROMOTION
CRITERIA
UNOFFICIAL PROMOTION CRITERIA

Personal Characteristics
Nepotism – showing of favoritism or patronage
to relatives
Social Factors
Friendship
 PROMOTION
FROM WITHIN
PROMOTION FROM WITHIN
Advantages:
Provides greater motivation thinking for good
performance
Provides greater promotion opportunities for present
employees

Disadvantages:
Creates a narrowing of and stale of ideas
Creates political infighting
DEMOTION
DEMOTION, WHAT IS?

The reassignment of an employee to a lower job

involving fewer skills and responsibilities. The
movement of an employee to a less important job
from a higher level job in the organization which
may not involve a reduction in pay but a reduction in
status or privileges.
BASIS OR CRITERIA FOR DEMOTION
1. Reorganizations, company merger or business contractions may
result in fewer jobs, forcing some employees to accept lower
positions.
2. Inability of the employees to perform their jobs according to
acceptable standards.
3. As a form of disciplinary action or a way to handle disciplinary
problems, also viewed as a routine form of punishment for
wrongdoing.
4. The tool used to communicate to employees that they are
beginning to be “liabilities” rather than assets to an organization.
TRANSFER
TRANSFER, WHAT IS?

This is the reassignment of employee to a

job with similar pay, status, duties, and
responsibilities. It also involves horizontal
movement from one job to another.
 REASONS FOR TRANSFER
Because personnel placement practices are not perfect, an employee-
job mismatch may have resulted. An employee becoming unsatisfied
with his job for one or a variety of reasons
Organizations sometimes initiate transfers to further the development
and advancement of the employee especially at management and staff.
Due to business expansion, retrenchment erroneous placement, the
need to meet departmental requirement during peak season.
For personal enrichment/greater convenience and for more interesting
jobs.
For employee to be better suited or adjusted to his job (remedial
transfer)
T WO KINDS OF
TRANSFER
TWO KINDS OF TRANSFER

Permanent – made to fill vacancies requiring the

special skills or abilities of the employee being
transferred.
Temporary – made due to the temporary absence
of an e employee, e.g., in case of sick, leave, vacation
leave, or shifts in the work load during peak periods.
 EMPLOYEE
SEPARATION
EMPLOYEE SEPARATION

Different kinds of separation occur

depending on whether the employee or
the employee decides to terminate the
employment relationship.
EMPLOYEE SEPARATION
Layoff
The separation of an employee initiated by the
employer due to business reverses, the introduction
of labor saving devices, or the reduction in the
demand for particular skills. Management as
temporary measures during periods of business
recession, industrial depression or seasonal
fluctuation resorts.
EMPLOYEE SEPARATION

Resignation
This is when employees voluntarily decide
to end their employment with an
organization.
CAUSES OF RESIGNATION

Dissatisfaction about wages and working

conditions
Misunderstandings with supervisors or
fellow workers
Inconvenient work hours are among the
chief reasons employee resignation.
EMPLOYEE SEPARATION
Retirement
This is when employees having satisfied certain
conditions under existing laws and/or provisions of
the collective bargaining agreements or upon
reaching the age of 65 are separated from
employment with entitlement to retirement benefits.
This is given either in a lump sum amount or in a
form of a monthly pension for life.
EMPLOYEE SEPARATION
Termination/Discharge or Dismissal
The practice of putting an end to the employer-
employee relations initiated by the employer with
prejudice to the worker. A discharge is due to
some fault of the employee such as inability to
meet the company’s standards of performance,
incompetence, violation of company rules,
insubordination, etc.
REWARDS
SYSTEMS
REWARDS SYSTEMS
Each element of compensation and benefits, is known as
reward.
Total rewards include everything the employee perceives to be
of value resulting from employment relationship.
This intervention involves the design of organizational rewards
to improve employee satisfaction and performance.
Reward systems should take a holistic approach to achieving
optimum performance.
Rewards can be monetary and non-monetary.
REWARDS SYSTEMS
A company’s reward system refers to the
totality of the inducements that a firm provides
in order to:
1.Attract people to work for the company
2. Motivate them to perform well while working
with the company, and
3. Induce them to remain with the company
over time.
REWARDS SYSTEMS
-Salaries
-Incentives
-bonuses
Direct (cash)
-insurance
Financial -holidays
-Medical and health
Indirect -Child care
(benefits) -Employee assistance
Total
Rewards -Good policies and
practices
Environment -Competent supervision
Non- -Safe and healthy work
Financial environment
-fair treatment
Job
-Interesting work
-Challenge
-Responsibility
-Recognition
advancement
TOTAL REWARDS
TOTAL REWARDS
All of the tools available to the employer those may be
used to attract, motivate and retain employees.
Total rewards include everything the employee perceives
to be of value resulting from the employment
relationship.
There are five elements of total rewards, each of which
includes programs, practices, elements & dimensions
Those collectively define an organization's strategy to
attract, motivate and retain employees.
FIVE ELEMENTS
OF TOTAL
REWARDS
FIVE ELEMENTS OF TOTAL REWARDS
Compensation - Pay provided by an employer to an employee for
services rendered (i.e., time, effort and skill)
Benefits - Programs an employer uses to supplement the cash
compensation that employees receive. - These programs are designed
to protect the employee and his or her family from financial risks.
Work-Life - A specific set of organizational practices, policies,
programs, plus a philosophy, which actively supports efforts to help
employees achieve success at both work and home. - Work-life
strategies address the key intersections of the worker, his or her
family, the community and the workplace.
FIVE ELEMENTS OF TOTAL REWARDS
Performance - Alignment of organizational, team and individual
performance is assessed in order to understand what was
accomplished, and how it was accomplished. - Performance involves
the alignment effort toward the achievement of business goals and
organizational success.
Recognition - Acknowledges or gives special attention to employee
efforts or performance. - It meets an intrinsic psychological need for
appreciation and can support business strategy by reinforcing certain
behaviors that contribute to organizational success. - Awards can be
cash or non-cash (e.g., verbal recognition, trophies, certificates,
plaques, dinners, tickets, etc.).
DEVELOPMENTAL
OPPORTUNITIES
DEVELOPMENTAL OPPORTUNITIES

A set of learning experiences designed to

enhance employees’ applied skills and
competencies;
• Development engages employees to perform
better and leaders to advance their
organizations’ people strategies.
 CAREER
OPPORTUNITIES
CAREER OPPORTUNITIES

A plan for an employee to advance their own

career goals and may include advancement into a
more responsible position in an organization.
• The organization supports career opportunities
internally so that talented employees are deployed
in positions that enable them to deliver their
greatest value to their organization.