PROJECT

IN
MANAGEMENT 303B






Submitted to: Mr. Donald Perez
Submitted by: Lovely Cruz Tayoto
HRDM31FC1


-CHAPTER 7-
PROMOTION It involves the reassignment of an employee to a higher job
position.
Promotion is a good thing to experience by all of employees. Even though there
is a heavier load of paper works and much challenging responsibilities to be done
in short period of time. It only signifies the competitive performance of worker. It
means that he/she is doing her best and exerting all his/her efforts in every piece
of his/her works. It is also a good motivation to keep on. And we have two
approaches used in recruiting employees for promotion. First is the Closed
promotion system, according to this approach the promotion is based on the
identification and evaluation of a supervisor to distinguish who are candidates in
promotion.
Then second is the Open Promotion System, the capabilities of every employees
are given an opportunity to be qualified for promotion. By means of cultivating
their skills though participating in a given type of activities wherein they can show
off their proficiency. In promoting we criteria that need to be followed those are
Seniority it is determine through the span of your service and it is categorized in
to two first is the Straight Seniority, wherein the basis is only the long duration of
time you are working for them. And the Qualified Seniority is there is comparison
between the competent employees with the one who have serve for a very long
time. And the second criteria is Current and past performance, wherein the
promotion is visibly base on their former job performance. But nowadays these
criteria are quite neglected because they evaluate and judge there work in the
other perspective. They become bias particularly if they have personal
attachment to that worker.
DEMOTION It is the reassignment of an employee to a lower job
involving fewer skills and responsibilities.
This process is the counter part of Promotion. This is a time where the employee
is not being capable of performing the assigned task to him/her. His employer
thinks that he/she is not someone who can competitively produce or perform with
the other. So instead firing him/her the employer at some point of view he/she is
giving a favorable consideration to still have a work but on a lesser demandable
area. Being demoted is not good thing to be thankful for. Because it only rub it in
to the worker that he/she is not worth it stay longer in a company anymore. But
Demotion can be served as a negative motivation. Because the employee will
think that he/she need to put efforts and encourage them to work harder in order
to fulfill the requirements and needs of their company so they can be recognize
and be one of the candidates in Promotion.

TRANSFER This is the reassignment of an employee to a job with
similar pay, status, duties and responsibilities or to another work shift, or
from one unit to another in the same company just like being an invoice
clerk to a sales clerk.
Transfer is a movement of employee in the same work and same pay but there
are some instances that it involves salary increase. And it is also considered as a
stepping stone in promotion. Good thing in this approach is the employees are
given a chance to hold a position wherein he/she can gain more knowledge and
experience in her work. It provides him/her opportunity to have a broader path in
his/her career. Transfer is not literally a same working environment that you are
going to work for. There is a bit changes compared to your work before. But
sometimes it is also being in a same shoe like if the reason is only due to
temporary replacement in job.

GOVERNING LAWS REGARDING SEPERATION FROM
THE SERVICES

ARTICLE. 279. SECURITY OF TENURE - In cases of regular employment, the
employer shall not terminate the services of an employment, the employer shall
not terminate the services of an employee except for a just cause or authorize
cause and only after due process of law. An employee who is unjustly dismissed
from work shall be entitled to reinstatement without loss of seniority rights and
other privileges and to his full back wages, inclusive of allowances, and to his
other benefits or their monetary equivalent computed from the time his
compensation was withheld from him up to the time of his actual reinstatement.
The employer cannot terminate the employee just because he/she want to. There
should be justifiable reason in firing a person in his work. If the employee face
this kind of scenario he/she will be entitled to receive payment, benefit or other
privileges from his employer for the damages has been done to his/her
ARTICLE. 282. TERMINATION BY EMPLOYER (DISMISSAL)
An employer may terminate an employment for any of the following causes:
1. Serious misconduct or willful disobedience by the employees of the lawful
orders of his employer or representative in connection with his work;
2. Gross and habitual neglect by the employee of his duties;
3. Fraud or willful breach by the employee against the person of his employer or
any immediate member of his family or his duly authorized representatives;
4. Commission of a crime or offense by the employee against the person of his
employer or any immediate member of his family or his duly authorized
representatives; and
5. Other causes analogous to the forgoing.
- The employer can only terminate the employee if one of the following above
is committed by employee. But if none he/she has no right to dismiss any of
the employee. Because if he/she will do that the damages has been caused
to employee will be incurred in his/her account.
ARTICLE. 283. CLOSURE OF ESTABLISMENT AND REDUCTION OF
PERSONNELL/ LAYOFFS.
The employer may also terminate the employment of any employee due to
the following Authorized Causes:
- Installation of labor-saving devices; Redundancy; Retrenchment to
prevent losses; and Closure or cessation of business.
The installation of labor-saving devices contemplates the installation of
machinery in order to affect economy and efficiency in the method of
production. And according to law it is based on the management and the
court are not going to meddle except if it is due to abusive act and
maliciousness on the part of the management. Retrenchment is an
economic ground to reduce the number of employees. It is the reduction of
personnel for the purpose of decreasing costs of operations in terms of
salaries and wages shouldered by an employer because of losses in
operation of a business occasioned by lack of work and considerable
reduction in the volume of business. Downsizing is the closest idea of
retrenchment. It aimed to save financially ailing business establishment
from eventually collapsing. Closure of business it aims to prevent further
financial drain upon an employer who cannot pay anymore his employees
since business has already stopped. And it can be treated as partial or
total closure because there are some instances that the company is not
totally insolvent.
FACTORS BEHIND DOWNSIZING LEADING TO LAYOFF
In our modern world today there three factors that initiates downsizing first is the
Decline or crisis in the firm, there is a total abdicated of demand for the product
produce by firm because of regression in the business world and also because of
the close competition with other trade local or abroad. Then also because of
Technological Advances, there are some instances especially if the firm has
limited resources or not demanding numbered worker because they can still
produce more despite of few workers. They are more focusing in the quality
instead of quantity. And Organizational restructuring, they are focusing in the
refinement of their companys structure by means of removing the middle
management probably the reason is they are not that necessary or the company
can still stand without them. But there are other options to prevent the hurtful
reality of layoff those are Freeze hiring, restrict overtime, re-rain/redeploy, switch
to job sharing, use unpaid vacations, use a shorter workweek, use pay
reductions, use sabbaticals or implement early retirement programs.
SEPERATION PAY
In authorized cause terminations, separation pay is the amount gives to an
employee terminated due to retrenchment, closure or cessation of business
or incurable disease. The employee is entitled to receive the equivalent of
one month pay of one half month pay, whichever is higher, for every year of
service. In just cause terminations, separation pay is also the amount given to
employees who have been dismissed without just cause and could no longer
be reinstated.
ARTICLE. 284. DISEASE AS GROUND FOR TERMINATION
The employer may terminate the services of an employee who has been found to
be suffering from any disease and whose continued employment is prohibited by
law or is prejudicial to his health as well as to the health of his co-employees.
The employer has a power to dismiss any employee who been found
positive in any type of illness or incurable diseases.
ARTICLE. 285. TERMINATION BY EMPLOYEE (RESIGNATION)
The Philippine Constitution say no to involuntary servitude in any form shall exist
except as punishment for a crime whereof the party shall have been duly
convicted.
This article refers to the rights of the employee to resign with or without justifiable
reason from his employer. If the resignation is without cause the employee is
required to give a 30 day advance written notice to the employer, in order for the
employer to search for another employee who will filled his leave position. If the
employee fails to submit a written notice he/she will be liable for the damages.
The employee has also right to leave his commitment to employer without giving
any consent to his employer. If the one of the following causes are committed,
serious insult by the employer or his representative on the honor and person of
the employee, inhuman and unbearable treatment accorded by the employer or
his representatives, commission of a crime or offense by the employer or his
representatives against the person of the employee or any of the immediate
members of his family and other causes analogous to any of the foregoing.
ARTICLE. 280. SECTION 9. TERMINATION PAY
An employee is entitled to receive termination pay equivalent to at least one
months salary for every year of service, a fraction of at least 6 months being
considered as one whole year, in case of termination of his employment due to
the installation of labor saving devices or redundancy.
SECTION 10. BASIS OF TERMINATION PAY
The computation of termination pay of an employee shall be based on his latest
salary rate, unless the same was reduced by the employer to defeat the intention
of the Code, in which case the basis of computation shall be the rate before its
deduction.
ARTICLE. 287. RETIREMENT
The employee may retire upon reaching the retirement age established in the
collective bargaining agreement or other applicable employment contract.
The retirement age is 60 years of age but not more than 65 years of age, if they
are required for the compulsory retirement who has served for at least 5 years.
They may retire and will be entitled to retirement pay equivalent to at least one
half month salary for every year of service, a fraction of at least 6 months, which
is considered as one whole year.
ARTICLE. 280. SECTION 14. RETIREMENT BENEFITS
An employee who retired pursuant to bona-fide retirement plan or in accordance
with the applicable individual or collective agreement or established employer
policy shall be entitled to all the retirement benefits provided therein or to
termination pay equivalent to at least one-half month salary for every year of
service, whichever is higher, a fraction of at least 6 months being considered as
one whole year.
One half month salary is consists of 15 days salary which is based on the latest
salary rate, cash equivalent of 5 days service incentive leave and 1/12 of the 13
th

month pay.
One half month salary is equivalent of 22.5 days.

JOB SERVICE/LABOR CONTRACTING exists when a
principal employer enters in an agreement with a contractor or
subcontractor for the latter to perform a job or service.
The contractor or subcontractor is the one who cater time, effort, and/or expertise
instead of a good (tangible product) to employees. For example household
agency who are recruiting household workers for those who want to avail a
personal service.
LABOR ONLY CONTRACTING
It is prohibited by the law. It is the time where a labor supplier, merely recruits and
supplies workers only, without any tool or equipment, or sufficient capital to perform
services for a principal employer. At the end of the day, the workers are left with a
cabo or a labor-only contractor that has no capabilities funds to shoulder the
financial cost of wages and benefits.
TYPES OF EMPLOYMENT
Regular employment - means that workers have legal employment relationship
to the company wherein it ensures that employment is continuous. It is consider
as the most comfortable and safe type of employment. Because they are
automatically entitled for benefits like SSS, Pag-ibig and GSIS. They are the one
who are regularly work 8 hours a day. They are also entitled for overtime pay,
holiday pay, bonuses and lots of privileges. But being permanently employed in
one position or company is not the mindset of a competitive and career explorer.
Yes it is a good thing that your are rest assured that you will have a work until
your hair gets gray but come to think of it if it is a productive and good record of
track in the milestone of your career. Permanent employment only offers
consistent benefits but not introduce you to the real world. It limit your wide
possibilities to be involve in a modern and fast approaching world of your career
it seems that you will be stock in the cave that you already know. This
employment is much advisable for those who are already in prime years if heir
life but not to the young one.
Probationary employment - The purpose of a probationary period is to provide
a trial period for the employee to learn the job and for the supervisor to observe
and evaluate the employee's performance. And Probationary periods of
employment do not automatically apply to every employment contract. It will only
apply the term stipulated has been expressly agreed by both parties, which
usually done by the employer wherein he/she will insert a clause in your
employment agreement stating that your employment will be subject to a
probationary period and you agreed to work a probationary period by signing the
employment contract. The probationary period should not exceed of 6 months.
Part-time employment - Part-time employees typically work fewer hours in a
day or during a work week than full-time employees; the latter are typically
employed for 40 hours. Part-time workers may also be those who only work
during certain parts of the year. One of the good thing here is you will not be
exhausted in your job because you will not encountered endless piles of work
that seems never decreases. It is conveniently for those people who are studying
or to those who just want to add some extra income.
Commission-paid employment - Commission is a payment based on the
amount of sales an employee makes. Commission is usually based on a
percentage of total sales, so the more sales made, the more money the
employee takes to his employer. This type of employment will ensure that
workers are really doing their job because their salary will be based on how much
they produced. The drive and consistency in performing work are being
monitored as well.
Casual Employment - As an employer, temporary employment allows you to
hire the employees you need for specific tasks or times, such as a project that
exceeds your current capabilities or a substitute for an employee on leave. Once
the need for that extra employee ends, you do not need to fire or lay off the
employee, which leads to additional paperwork and in some cases expense.
Temporary employment can also be a good way to test out new employees to
find out if they are a good fit for the company before hiring a permanent person.
Contractual employment - A contractual job is employment that requires you to
sign and agree to terms of a contract before you begin working. Contractual work
is usually for a specified amount of time and ends upon completion of a project or
assignment. Some employers prefer to hire contractual workers if their work load
encounter big trouble they can easily dismissed them or if they want to test
workers' capabilities before hiring them permanently. Contractual workers are
often paid a lump sum upon project completion, but some receive payments
during the course of the assignment. For example here in the Philippines those
contractual workers who are constructing a building or the one who do the
reconstruction of road. But we cannot ease the misconception that when we say
contractual employees they are considered as low profile job. In terms of respect,
status and benefits they are the one who least received.
-CHAPTER 8-
COMPENSATION
Compensation is the total amount of the monetary and non-monetary pay
provided to an employee by an employer in return for work performed as
required. It includes all benefits and privileges of employee. Compensation also
served as the driving force of the employee to be motivated in performing his/her
responsibilities. A good compensation brought good results to both employer and
employee. Because a highly motivated employee are the one who efficiently and
effectively accomplished the task given to him/her so as a result cost of
production will increases and it will be favorable for management. But obviously if
the results didnt turn the way they wanted, the compensation will be affected that
much particularly for those who are in commission-paid employment.
Compensation should be:
Compensation needs to be adequate in meeting the needs of the employees,
in order for them to feel the satisfaction and assurance in everything in their work
it should be attention seeking from the very beginning.
Equitable, YES! It should be. Because if the employee felt injustice treatment
they might think that Nepotism is just only roaming around their circles. So in
order to extinguish this conception everything must be treated and evaluated
fairly.
Balanced, this is about the right amount of benefits to be distributed by all
employees. Make sure that it is proportionately give away. And not given to all
employees just to provide convenience to the employer. It must be clearly
defined the corresponding effect to the employees once he/she received it.
Cost-effective, means it is not only focusing in the needs of the employees we
also need to consider if the company can still provide the compensation
demanded.
Secure, it must able to fulfill the basic necessities of the employee. To keep
employee continuing his/her job.
Incentive-providing, Aside from giving high compensation it will better if there is
lots of incentives to be receive by employee every time she stand out in the
performance. It creates double pleasure and extremely push the worker to work
harder in every single moment.
Acceptable to the employee, Compensation must be clearly defined to every
employee so the employee will have an idea if the work is suitable for that
compensation given. In order to avoid conflicts from the time the employee was
hired.
Compliant with legal regulation, the compensation stated must be agreed by
both parties with accordance to law. It should not be contrary to any provisions of
law. This is done in order to rest assured both parties in case of arising of
problems. Both of them will be liable in time of misunderstanding. The aggrieved
party may appeal it to court.
MAIN COMPENTS OF COMPENSATION
Base pay it is base in number of hours/ weekly/monthly salary acquired.

NATIONAL CAPITAL REGION
Minimum Wage
INDICATOR/SECTI
INDICATOR/SECTOR Rates (Effective
January 1, 2014) a

Non Agriculture 466.00
Agriculture
Plantation and Non-Plantation 429.00
Private Hospitals
With Bed Capacity of 100 or Less 429.00
Retail/Service
Establishments Employing 15 Workers or Less 429.00
Manufacturing
Establishments Regularly Employing
Less than 10 workers 429.00

Premium Pay - During rest and special days, the principle of no work, no pay
applies. Workers who were not required or permitted to work on those days are not by
law entitled to any compensation. This is consistent with the definition above that
premium pay is to be paid for work performed. Performance of work is necessary for
entitlement to premium pay.
Base Pay progression it is simply an increase to the salary of employee in
every year.
Variable pay It is also known as performance pay, is used to acknowledged
and reward employee contribution above and beyond their normal job requirements.
DETERMINING PAY RATES
Determining the proper pay scale is essential for productivity and its also necessary for
cost control but setting the pay scale too low can causes recruiting challenges, and
setting the scale too high adds costs to replace employees. We can also simply
determine how experience, credentials and tenure affect employees wages. Obtain
employee census records to identify whether long-term employees are being
compensated fairly as a reward for their length of service. Check employee training and
development opportunities to decide whether certain jobs should receive higher
compensation based on completion of training. In determining the right pay of
employees we have significant factors that we need to consider those are external,
organizational, job and individual factors. Among those four I can conclude that
Individual factors are the important thing to considered because they are the one who
are going to receive compensation and their skills and experience dictates the company
on how much amount they want. Mostly to those have exemplary achievements in
career.
JOB EVALUATION
Job evaluation is a systematic process for defining the relative worth or size of jobs or
roles within an organization in order to establish internal relativities and provide the
basis for designing an equitable grade structure, grading jobs in the structure and
managing relativities. Job evaluation is a technique that helps to rate the job in terms of
complexities and importance. It rates the job but the job holder. This helps determining
and fixing wages precisely. And last by conducting job evaluation it helps to minimize
cost. Through the productivity enhancement and increasing the rate of production, the
per unit cost of an output is minimized or reduced.
JOB EVALUATION METHODS
RANKING METHODS
It is considered as the simple and very effective when there are only few jobs to be
evaluated usually based on judgement of skill, effort (physical and mental),
responsibility and working conditions. Since there is no standard used for
comparison, new jobs would have to be compared with the existing jobs to
determine its appropriate rank. So the ranking process would have to be repeated
each time a new job is added to the organization.
POINT SYSTEM
A point factor system provides a structured and consistent method to evaluate jobs.
It provides a relative objective and unbiased view of the worth of jobs. There is a
documented record of the worth of the job based on the selected compensable
factors. There is an avoidance of positive or negative bias as the individual job
holder is not the basis for evaluation. It objectively measure the content of each job
determine its relative worth and establish justifiable relationships among all jobs
within an organization.
CLASSIFICATION METHOD
Classification uses categories, or classes, of similar job content and value.
Examples of categories include executive, managerial, skilled and semi-skilled. This
method works well for large organizations, such as government agencies and
worldwide corporations with numerous locations. Jobs within the same class have
comparable compensation packages.
FACTOR COMPARISON METHOD
This method is a combination of the ranking and point system. Under this method,
jobs are evaluated by some standards. In this method, instead of ranking complete
jobs, each job is ranked according to series of factors. All jobs are compared to each
other for the purpose of determining their relative importance by selecting four or five
major job elements which are more common or less common to all jobs.
DIFFERENT FORMS OF COMPENSATION
Payment for time worked
Under this system, the workers and employees are paid wages on the basis of the
time they have worked rather than the volume of output they have produced. According
to this system, wages are paid on hourly, weekly or monthly basis.
Incentive forms of compensation
The portion of an employee's salary that is related to performance and not a guaranteed
payment. Incentive compensation is additional money, or other rewards of value such
as stock options. This means the employee has an incentive to perform at a high level,
and be rewarded for the effort. It aim to motivate individuals to act in a way such that the
money is a reward for the employee's contribution to the success of the business.
Piecework or payment by results - the work is paid for at a fixed rate per
piece of work done.
Individual incentive plans - The individual employee incentive plans are
those things that where the performance of an individual is directly
measured and incentive is paid out to the individual regardless of how well
the group does.
Group incentive plans this plan reinforce team planning and problem
solving, and help ensure collaboration with the other member.
Performance-based rewards It can increase the effort level among high
performers and may increase turnover among low performers.
Spot bonuses - goal is to provide special recognition to staff members who have
accomplished an extraordinary achievement within the workplace. Performance
should beyond expectation on a specific assignment, task, or goal of the
company.
Competency based pay - based on employee proficiency and expertise instead
of factors such as seniority or tenure. Job competency refers to the level at which
the employee performs, usually in a field that requires specialized experience,
knowledge or expertise. The more experience you have the more you have and
can demand a high compensation.
Merit pay plans - it is frequently used methods to pay an employee based on
individual performance. The goal of a merit pay program is to connect pay to
performance in a manner that is consistent with the mission of the organization.
Profit sharing the employer has power to determine when and how much the
company pays into the plan. The amount allocated to each individual account is
usually based on the salary level of the employee.
Stock ownership plans - provides an employee with further encouragement to
remain at his company and contribute to its financial success. It provides a
companys workers with an ownership interest in the company.
Executive compensation these are high level employees are paid executive
compensation. It commonly include a much private income protection especially
their shares in the company.