Click to editMMaster

o d u l e 4 : title style

Compensation, Wages and

Performance Evaluation,
Appraisal, Reward System,
Employee Relations and
Movement
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WHAT
Click IS ITMaster title style
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•Compensation or wages is the pay given by

employers to its employees in exchange for
the job they done. It also being associated to
performance appraisal or evaluation, as
compensation and other benefits are also
being based on how well an employee
performs the tasks assigned to him/her.
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COMPENSATION
These are different kinds of
compensation. It may be in
terms of money or other
forms of benefits.

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DIRECT • This includes salaries, bonuses,

COMPENSATION commissions and/or incentives.

• This includes those benefits given

INDIRECT to employees other than monetary
COMPENSATION pays like health benefits,
education assistance or grants, tr
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• This includes those that do not

involve money but rather give the
employees a comfortable or
NONFICTIONAL
satisfying work privileges like
COMPENSATION
flexible working hours,
convenient work assignment,
idea management back-up, etc.

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Compensation is usually
Click to edit Master paid based on the number of
title style
units produced or the amount of time spent in work

When the pay is computed using a monthly

Monthly
Basis
salary rate multiplied to the number of months
that the employee has rendered work.

Weekly When the pay is computed using a weekly salary

Basis rate multiplied to the number of weeks that the
employee has rendered work.

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 Click to edit
Daily Master
When the title
pay isstyle
computed using a monthly salary rate
Basis multiplied to the number of days that the employee
has rendered work.

Hour Basis When the pay is computed using a monthly salary rate
multiplied to the number of hours that the employee has
rendered work

Piecework When the pay is computed using a certain rate per piece
Basis multiplied to the pieces that the employee has done or
completed

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PERFORMANCE
Click EVALUATION
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Hiring does not end the staffing process;

rather it is just a springboard for several
other activities that make up the staffing
function of management. After
orientation, training and compensation,
performance evaluation follows.
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Employees who
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stylenow part of the
organization should continuously improve
their individual performance and must
always work with their best foot forward.
This may be ensured by the management
through an established performance
assessment and evaluation program.
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Sometimes, performance
Click to edit Master title style evaluation is
also called performance appraisal.

It is a periodic evaluation that measures

an employee’s overall job performance
and contribution to the company.

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Moreover, performance
Click to edit Master title style appraisal do not
only measures the level of employee
performance but also serves the following
purposes for the benefit of both the
employee and the organization.

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Administrative
Click to edit MasterPurposes
title style

• Performance evaluation programs

provide relevant information which may
be used as bases for employee
promotion, transfer, termination and
even compensation decisions like
granting of bonuses and incentives
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•Behavioural issue may also be
identified and corrected even before
it could affect the organization.

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Developmental
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title style

• Performance evaluation programs is a good

avenue to learn about the employees’ strengths
and weaknesses from which training and
development needs may be identified.
• Gives motivation to employees as it makes
them feel involved and worthy of the firm’s
investments for training and development.
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How
Click toPerformance Appraisals Are Done
edit Master title style

Employees are being assessed based on

their performance of core competencies
mandated by the organization and those
which are specific to his/her job. The
process involves an appraiser, oftentimes
the employee’s immediate supervisor or
manager,
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who provides the employee a constructive
feedback which should be acted upon by
the employee or agree to develop and
achieve in his/her performance of the job.
Employee achievements and potentials
may be discovered in the performance
appraisal process.

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The following are the steps

involved in the
performance appraisal
process. It may vary from
one organization to
another
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 The to
Click Human
editResources Department
Master title style (HDR), in most cases, facilitates the
Performance Appraisal. It orients and assist the supervisor and managers in
conducting the same in their respective units or departments.

An assessment method is established.

Core competencies expected of each respective job assignments to be

performed by the employees are identified.
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18
Click to edit Conduct
Master oftitle
individual
style employee performance

A one-one-one/ face to face discussion of performance and assessment

results between the appraiser and

The employee is schedule.

Future targets to be achieved including those that should be improve are

agreed by the appraiser and the employee 1919
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When the final rating and future targets have been agreed by both
parties, the performance review documents is signed and stored
in a repository.

Whenever needed/ appropriate, performance appraisal records

are used as a basis for human resource planning such as hiring,
promotion, granting of bonuses and incentives, training programs
and other relevant reports.

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Sometimes, performance
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evaluation fail due to some
of the following reasons:

• The objectives of the performance evaluation

programs was not clearly communicated to all;
• Unclear language or terms used in the evaluation
forms;
• Some forms do not relate well with the job
descriptions/ competencies;

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• Click
Overstatement
to edit Master titleof ratings due to
style
avoidance of conflicts or disagreements
after the evaluation caused by low
rating/ score; and
• Some appraisers may possess unfit
personalities, are not cooperative
enough, may exhibit bias, do not give
ample time in answering the questions,
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may focus on the personality of the
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employee or evaluate rather than on

their work performance.

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 REWARD SYSTEM
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•Organizations establish reward systems

with the aim of attracting both new and old
employees to remain in the company,
motivate and retain skilled and
knowledgeable employees thereby
reducing the risk or employee turnovers
and promote personal development and
growth of employee 2424
A reward
Click system
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a program established by
an organization where employees are given
recognition and incentives for performing very
well which may serve as a motivation to
others to also do well. A reward is a
compensation for a meritorious achievement
that contributed to the success of the
organization,
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aClick
prize orMaster
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forstyle
exemplary service or
accomplishment. It may be monetary or
non-monetary.

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Monetary rewards refer

to financial or currency
rewards.
Example of which are the following

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1. Salary – wage or pay
Click to edit Master title given in exchange
style

for the performance of a job which may

be given for each piece of work done,
daily, weekly, monthly or annually;
2. Benefits – like health insurance,
educational grants, retirement package,
etc.;
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 Incentives
3.Click – atitle
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styleof rewards based on the
philosophy of paying for a job performance
done over and above what is expected. It has
a performance level that serves a baseline
which the employee or a team must reach in
order to receive an incentives. Examples of
this are sales incentive, merit pay, cash
bonus;
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4.Click
Executive Pay –title
to edit Master some
styleorganizations give
compensations to their company executives that
come in the form of a package which includes their
basic salary, cash bonus, benefits and privileges;
and
5. Stock Options – corporations give their employees
the opportunity to own some shares of company
stocks at discounted prices in particular period

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 Nonmonetary
Click to edit Master rewards
title style

Refers to those that do not involve money,

financial or currency rewards. They are
rewards that motivate those who receive them
due to its positive psychological effect given
that it is intrinsic and brought about by an
employee’s exemplary performance. It may
take the form of the following:
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1. Praise – verbally expressed appreciation
and acknowledgement done by the
superiors for an employee or subordinate’s
excellent performance and contribution; and
2. Award – plaques, trophies, certificates. Or
medals as tokens of recognition or
appreciation of an outstanding or meritorious
individual or team performance.
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In organization, there are three types of
Click to
employees edit Master title style

Engaged – active participants in all the

organization’s endeavors; passionate and
enjoys his/her work; fosters a certain connection
with the organization; are innovative and driven.

Disengaged – they are just acting out to be

happy at work, invest only time and lacks the
vigour for their job and shows no concern for the
organization
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 Actively
Click Disengaged
to edit Master – are worker who
title style
are not only unhappy, the are actively
acting out or show their dissatisfaction
or “unhappiness” at work and
demoralize their coworkers’
accomplishments and weaken their
sense of achievement.

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However, employee
behaviour and
personalities tend to
became barriers to good
employee relations in an
organization such as: 35
 Preferring
• Click to edit Masterto work
title style alone or separating
oneself from others;
• Lack of trust in others;
• Having self serving motives or being
selfish;
• No knowing how to communicate as
well as listen to others;
• Lack of concern for other’s welfare;
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 Being
•Click to edit overconfident
Master title style to the point of
being conceited;
• Lack oof self-confidence or low self
esteem;
• Not being a team player.

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Here are but some of the suggested ways to
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hurdle the abovementioned barriers:

• Do find time to socialized and relate with your

co-workers.
• Sometimes, engaging in electronic gadgets can
separate you from the others, take a break and
engage in conversations and social activities
with your colleagues.

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•Click
Having a healthy
to edit Master title style and wholesome

personality will help you develop a

positive attitude and behavior
• Learn to communicate, be open
and learn to listen to others.

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Employee
Click Movements
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•Employee movements refers to the

transfer of employees. The transfer
could either be in the organization or to
another organization. It could be
horizontal or vertical.

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Horizontal transfer
Click to edit Master title styleor the lateral
movement of an employee from one
branch, unit, section or department of an
organization to a same position with the
same salary and responsibility which
could either be temporary or permanent.

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This could reduce monotony and increase
the flexibility of an employee by providing
him/her with learning opportunities for being
assigned to another section. This is
advantageous to the organization as it can
readily respond to staffing fluctuations due to
absence of some employees which may
happen from time to time.
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Examples are job rotations or
transferring an administrative aide from
the Accounting Section to the Human
Resource Section.

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The
Click totransfer
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movement of an employee from once
hierarchical level to another. This may be
associated to promotion or the
advancement of an employee to a higher
rank or position which involves additional
responsibilities, pay enhancement, and
improved organizational
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standing
Click to edit or demotion
Master title style where an
employee rank or job title in the
organization is reduced for some reason
like underperformance or the inability to
achieve the set targets.

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Sometimes the management or

the other employee
him/herself comes up with a
decision that also affects how
employee movements take
place, such as the following:
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Separation is another
Click to edit Master title style form of employee
movement which takes place when the
employment contract of an employee comes
to an end.

Termination happens when the employer or

management decides to end the employment
contract, lay-off or fire an employee.
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The company does not
Click to edit Master title style have an obligation to
pay the employee for the termination unless
otherwise it is not grounded on valid and
legal reasons.

Resignation is an employee movement

which could either be voluntary if the
employee has already reached an age that
would already arrant his/her retirement
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(in the
Click Philippines
to edit for example, 60 years
Master title style
old) due to health or other personal or
family decisions. Retirement may be
forced in the employee has already
reached the maximum working age (ex.
65 years old).

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