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The Impact of Employee Relations in a Non-Union Organization: The Case of

National Grid Corporation of the Philippines

By: Jose Lorenzo V. Anacay


MAY 30, 2015

This research proposal tackles the impact of the Employee Relations (ER) of the
Human Resources as the voice and representative for the employees in the organization.
Voice, in the sense it reasons out to the management the concerns of the employees,
Representation in the sense that the their development, engagement, labor relations that
are embodied by the ER, in the same way that in a unionized organization, employee
voice and representation is spearheaded by the respective Union.
The organization that is mentioned here will be the National Grid Corporation of
the Philippines (NGCP). NGCP is a private organization, which is part of the Power
Industry in the Philippines that provides Power Transmission to the Philippine
Archipelago. Before NGCP had the function of Power Transmission, the National Power
Corporation (NAPOCOR) handled the generation and transmission of power in country.
Until in 2001, when the Hon. Gloria M. Arroyo signed the Energy Power Industry
Reform Act or EPIRA (R.A. 9136) into law, it gave birth to the sister corporation of
NAPOCOR, which is the National Transmission Corporation (TRANSCO) in 2003. The
function of the generation of power stayed in NAPOCOR and the transmission of power
went to TRANSCO. R.A. 9136 also mandated the privatization NAPOCORs
transmission facilities, real estate properties, disposable assets and power supply
contracts. The assets that are for sale was determined by the Power Sector Assets and
Liabilities Management (PSALM), in which in a consortium of the State Grid
Corporation of China, Monte Oro Grid, and Calaca High Power Corporation won the
open bid, and later became the National Corporation of the Philippines.
Republic Act 9511, which came from the EPIRA law, gave NGCP the franchise to
operate, manage, and expand the electric transmission business of the country. It
authorizes NGCP to handle the transmission grid for 25 years, renewable for another 25
years. The franchise only covers the operations and management of the transmission
facilities but the assets will remain in the Philippine Government through TRANSCO.

Definition of Terms
1. Employee Relations - Involves the body of work concerned with maintaining
employer-employee relationships that contribute to satisfactory productivity,
motivation, and morale.
2. Employee - a person who is hired to work for another or for a business, firm, etc,
in return for payment.
3. EPIRA (R.A. 9136) A law which states the decrease electricity rates and to
improve the delivery of power supply to end-users by encouraging greater
competition and efficiency in the electricity industry.
4. Management - The person or persons who control or direct a business or other
5. Non Union Organization - Non-union workers do not belong to a trade union or
labor union. A non-union company or organization does not employ workers who
belong to a trade union or labor union.
6. National Power Corporation (NAPOCOR) - Created under Commonwealth Act
No. 120 on November 3, 1936 as a non-stock government corporation. In 1960,
NPC was converted into a stock corporation wholly owned by the government
under Republic Act 2641.
7. National Transmission Corporation (TRANSCO) Is a government agency
created under Republic Act No. 9136, otherwise known as the Electric Power
Industry Reform Act (EPIRA) of 2001.
8. National Grid Corporation of the Philippines A private corporation with the task
of delivering safe and reliable electricity throughout the archipelago. It is a
consortium of Monte Oro Grid Resources Corporation, Calaca High Power
Corporation, and State Grid Corporation of China won the franchise to operate,
maintain, and further expand the power grid in the biggest government auction
conducted in efforts to reform the local power sector
9. Privatization - The process of transferring an enterprise or industry from the
public sector to the private sector. The public sector is the part of the economic
system that is run by government agencies.
10. Union - an organized association of workers formed to protect and further their
rights and interests.

I. Introduction

Background of the Study

This study focuses on the Impact of Employee Relations (ER) of the Human
Resource in a non-union organization in the case of the National Grid Corporation of
the Philippines. The Employee Relations is an area of the Human Resources that
function in the communication of the management and the employees, implements
corrective & disciplinary actions, and explanation of company policies and
procedures of the company. Being a non-union organization, employees look to
where their grievances can be heard and take into account by the management.
Employees of NGCP see the Employee Relations Division of the Human Resources
Department as a facilitator in bridging the needs and expectations towards the
management. Management also sees ER as the pivotal element to communicate their
plans for the organization.

Statement of the Problem

o How will the Employee Relations Division affect the perception of the
employees about NGCP being a non-union organization?
o Why does the Management of NGCP prefer a non-union organization?
o How will the initiatives of the Employee Relations Division influence the
different divisions of the Human Resource Department of NGCP?

Objectives of the Study

o To know the impact of Employee Relations in a non union organization.
o To know the strategies Management of NGCP persuades its employees
that union representation is non-essential to the organization.

Significance of the Study

This study will be of great significance to organizations with a non-union

representative and thus, turn to Employee Relations of the Human Resources
Department as catalyst to voice out their concerns regarding the treatment and rights
given to them by the management. The area of Employee Relations in the Human
Resource Department of NGCP encompasses building employee commitment to the
organization, thereby achieving the business goals and at the same time, serves as
Mediator and Arbitrator in times of conflicts between the employees and the
management. Moreover, this study will look into the advantages of the Employee

Relations, and their function as a Voice for the organization. This study will also
investigate and study what are the techniques that the NGCP management undertake
in order to persuade its employees indirectly that a union representation is nonessential to the business.
A. Scope and Delimitations of the Study
The Scope of this study encompasses the function of the Employee Relations
Division of the National Grid Corporation of the Philippines (NGCP). NGCP being a
non-union organization looks to the Employee Relations as the bridge towards the
communication of the management to its employees. The two functions of the
Employee Relations Division are Employee Engagement and Labor Relations.
Employee Engagement deals with the events that will enable employee development
and participation, while Labor Relations deals with the administrative cases of
employees, upholding of company policies & procedures, and maintaining the
relations between management and employees. It also looks into the effect of these
activities to the direction of the Human Resources Department and Management of
NGCP in being a non-union organization The Delimitations of this study are the
activities, employee surveys that were used by the Employee Relations Division to
extract feedback from the employees of NGCP, as well as present interviews from
the management of the organization.

II. Review of Related Literature

According to the article Employee Engagement: A leadership priority, A
leadership priority is emerging how to improve employee engagement within
companies: There have been disquieting developments in recent times. All over the
world, good employee policies exist in the manuals. However, the management capability
to engage with the workforce and to implement the policies humanely is under pressure.
(R. Gopalakerishan, December 7, 2009).
Based on the article The Essentials of a Healthy Employer Employee
Relationship An employers relationship with their employees has to be nurtured and
taken care of in order to be beneficial for both individuals; their co-workers, and the
company as a whole. It has long been noted that strong employer-employee relationships
often lead to greater employee happiness and significantly improved productivity.
Many typical employer-employee relationships will vary on the scale of closeness and
familiarity, but it is essential that all employer-employee relationships involve at least
these five major characteristics.
1. Mutual respect
Its perfectly fine to instigate a closer relationship with your employees to the point of
socializing with them outside of work. (This is particularly common in smaller businesses
and start-ups).
But even in a relaxed workplace, it is crucial to retain the traditional hierarchal structure
and encourage awareness of this in your employees. As a leader, you need to be ready to
give your team honest and frank feedback, whether this is about projects, employee
appraisals, or constructive criticism.
Romantic relationships in the workplace are always a bad idea, but you should also bear
in mind that these relationships can have an effect on the workplace even before they are
public or common knowledge possibly without either party knowing it.
2. Mutual reliance
There should be a balanced amount of reliance on both employer and employee. The
employer relies on the employee to do his or her job well for the benefit of the business;
the employee relies on the employer to treat them fairly and pay them equitably. When
this mutual reliance becomes imbalanced or one-way, problems will inevitably occur.
The employer may start to feel that the employees efforts are no longer instrumental to
the company and view them as disposable, while the employee may no longer value their
job and start to become disengaged. When either of these things happens, its time for the
employer to reevaluate the employees role at the company whether a new agreement
can be reached, or whether its time to part ways.

3. Openness & communication

Any healthy working environment involves openness and transparency. Employers can
help create a forum of openness and honesty by asking employees candidly about their
lives, families, and interests. Employees can, in return, contribute to this setting by being
forthcoming about their lives outside of work.
Openness and communication is even more important for situations sensitive to the
company, or that require an otherwise serious approach. For employees, this might mean
informing their boss of a family emergency that could affect their performance, or a
desire to find a new job. When it comes to the latter, employers shouldnt deter their
employees from leaving, but should be understanding and supportive of their natural
want to progress.
Meanwhile, employers should keep their employees in the loop about business matters
and seek their input in important company decisions. Not allowing your employees to
have an active role in the growth of the company not only wastes valuable insight and
energy, but may also encourage them to become disengaged.
4. Support (and nurturing)
Employers should want their employees to reach their full potential and recognize when
their capabilities exceed their current role. Leaving natural abilities to stagnate will cause
boredom and frustration to grow in the employee, and as mentioned earlier, waste
valuable energy that could better help the team.
Draw up your ideal business structure, or your current business structure as it is now, and
outline every role and position that is necessary for it to work effectively. Not only will
this enable you to identify gaps in your current team, it will also encourage you to take
stock of who is performing well and who might be better off in a role with more
Supporting employees even extends as far as helping them spread their wings and fly
away to a new job when the time comes. Employers ought to be invested in their
employees success as a whole and understand that they may not be at the company
Employers have the option to help employees or to stifle them but only the former will
lead to trust, higher skill levels, more productivity and more motivation.
On the other hand, employees should be willing to show support for the companys
welfare and progress, which may mean making sacrifices from time to time. Whether its
working late to fix an unexpected problem, or covering somebody elses duties as well as
their own, employees need to be ready to show that they are invested in the success of the

5. Gratitude
Gratitude should exist on both sides of the relationship, but it is probably a larger
responsibility of the employer to recognize and appreciate exceptional effort from their
employees. When employees consistently deliver and receive little or no appreciation, it
can become very easy for them to become disheartened, frustrated, and apathetic about
their job, which destroys productivity.
A simple thank you is often enough (and this works both ways), but employers may wish
to actively reward their employees for truly great work. They should use their intuition
and knowledge of the person to decide what this might be.
In some cases a discreet gift might be enough, while others might relish recognition in the
office. Some companies even host annual awards ceremonies where outstanding
employees are given public recognition for their achievements. Overall, gratitude and
recognition help to ensure that employees know they are valued and that good actions and
efforts are repeated. (Adele Halsall, May 23, 2014)
According to the article The Changing Employer-Employee Relationship
Employers need to communicate tirelessly and strive for transparency. It may be all they
have to offer employees in such resource-constrained times. Unfortunately, some
employers are resorting to fear-based tactics in an effort to reinforce employee
engagement. In the short run employees may respond to such heavy-handed approaches,
but such a practice is not likely to be sustainable.
The first recommendation is that employers work diligently to create a "no
surprises" environment. In managing this way, they build employee perceptions of the
company's trustworthiness. Doing what is planned when it is planned creates trust.
A second recommendation is to work to find out and then to protect what really
matters to employees. There will be elements of work that truly are cherishedand they
may be surprising. In one instance, a headquarters cut a fairly inexpensive perk
afternoon cookies in the break room. The impact on morale was so strongly negative that
one executive commented the "cookies were the costliest savings we ever achieved."
The third recommendation is to be certain you fully understand how the cuts and
other changes being made around the workplace affect each employee's ability to do his
job well. If tools, full-time employees, and other resources are being more carefully
managed (as they should be), make sure first that employees' capabilities to perform are
not threatened. Make adjustments as needed, such as ensuring that there is enough time
available to complete work, so that the employee doesn't lose confidence that he or she
can deliver to the company's expectations. (Benett, Miles, N. Benett, March 31, 2009)

Based on the article, How Top Non-Union Companies Manage Employees the author
set of nine common attributes, policies, and attitudes among large nonunion companies
against which the managers of nonunion as well as unionized corporations can measure
the effectiveness of their own personnel practices.
1. A Sense of Caring
First and perhaps foremost, many of the founders of the nonunion companies in my
sample held fiercely egalitarian views about treatment of employees. Today, many of the
customary symbols of corporate rank and status are absent. In many of the companies,
everyone from vice president to sweeper has access to the same parking spaces, receives
identical medical benefits, and eats in the same cafeteria. Frequently, executive offices
are Spartan or even nonexistent. Employees at all levels call each other by their first
2. Carefully Considered Surroundings
Several situational factors are also important both in fostering an effective personnel
program and in encouraging a climate of trust and confidence. These factors include,
among others, plant location and size and the handling of sensitive work and particular
employee groups.
Determining location & size. The companies I studied consider carefully effects on
employees and the chances of remaining nonunion when they select sites for new plants.
Among the criteria used by one company are the quality of the public schools and the
proximity to a universityas well as the areas attitude toward unions.
A personnel vice president at another company reported why a certain city would not be a
good place to construct a blue-collar, production-type plant: That city is sixth among the
top 50 cities in the United States in downtime due to strikes, jurisdictional disputes, and
other, related union conflicts. Moreover, there are more EEO charges in that city than in
all but two other major cities. It is third in the number of fair employment practice cases
and unfair labor practice charges. The city has several militant and aggressive unions.
Not only do many of the companies carefully choose rural or suburban plant sites, but
they frequently limit the size of their facilitiesbetween 200 and 1,200 employeesto
promote personal and responsive employee relations. In the words of one personnel
director, We like to keep our plants small. We dont want them to grow larger than 200
employees. Beyond that size, both management and personnel lose personal contact with
the employee.
Taking care with traditionally union work. Many of the companies studied are also
careful about how they handle sensitive workwork that unionized employees often do.
Some companies subcontract sensitive or strategic jobs. One company, for example,
subcontracts its printing work, while many of its unionized competitors do their own

printing. Sometimes sensitive jobs are done in-house but by the unionized employees of a
The idea is to make an organizing drive less likely. If a companys own nonunion
employees do sensitive work, management usually pays close attention to their working
conditions and wages, attempting to ensure that their treatment is equal to or better than
that of comparable unionized personnel.
3. High Profits, Fast Growth, & Family Ties
Certain financial and ownership characteristics seem to have an important bearing on
personnel policies. Most of the companies studied are profitablesome, extremely so.
Many are high technology growth businesses, have dominant market positions, and are
leaders in their industries. Growth enables them to offer many promotion opportunities,
provide full employment, and make profit sharing pay off. more
Another important company characteristic is close ties between ownership and
management. Two of the companies in my sample are privately owned, and members of
the founding family are still active in management. In several of the public companies, a
significant percentage of the stock is owned by one or more families, whose members
remain active in top management. Thus, management is pushed to endorse the ideals of
the founders and owners.
I should emphasize that no company studied displays all these attributes. Nor are these
factors a sine qua non for achieving the desired organizational climate. They can even get
in the way. For instance, while rapid growth provides many promotion opportunities, it
also sometimes leads to such problems as communication difficulties and cramped
4. Employment Security
Many of these companies attempt to minimize workers usual nagging uncertainty
regarding future employment. Several of the companies use various techniques to ensure
full or nearly full employment.
During its early years, for example, Hewlett-Packard rejected large government contracts
that would have created huge fluctuations in work load, forcing the company often to lay
off and then rehire people. Moreover, during the 1970 recession, Hewlett-Packard cut
everyones pay and work time 10% for a six-month period rather than lay anybody off.
The pay cut applied to everyone, from chairman of the board to assembly-line worker, as
did the practice of not working every other Friday.
Other methods of weathering peaks and troughs in the work load include hiring freezes
and the use of temporary or retired workers. This latter method, of course, simply
transfers unemployment from the permanent labor force to part-time and temporary
workers. Some companies prefer to devote periods of overstaffing to building up their
inventories. Others encourage employees to take voluntary leaves of absencethus

guaranteeing continued employment.

Permitting employees to bank their vacation time can also ensure some flexibility in lean
times. Work sharing is another way in which some companies avoid or minimize layoffs.
Some companies that experience seasonal work loads hire their own retired or former
workers during the peaks.
To some extent, one companys full-employment practice becomes its subcontractors
unemployment problem. At one company studied, part of the full-employment strategy is
to use subcontractors to help absorb necessary production cutbacks. During tight periods,
such subcontracting is curtailed or eliminated.
Although companies that provide employment security boast of the flexibility gained
from their nonunion status, they of course lose the option to lay workers off in response
to changed business conditions.
The Exhibit catalogs the costs and benefits of avoiding layoffs. As it indicates, the costs
can be significant. Yet the benefits of employment security cannot be overestimated.
Eliminating workers fears about layoffs can be a cornerstone of effective employee


Exhibit Costs and Benefits of a Full-employment Policy

If layoffs become necessary nonetheless, management must implement a system that is
perceived as equitable. The companies in my sample that do not practice full employment
rely nearly exclusively on the principle of seniority. They also attempt, through a variety
of means, to delay layoffs and cushion their impact. Curiously, none of these companies
uses a supplemental unemployment plan.
A point to remember about full-employment practices: they always require effectively
coordinating manpower planning and business planning. If a company has a policy of no
layoffs, personnel people and line managers must cooperate when formulating strategies.
5. Promotion from Within
A policy of promoting from withinaccompanied by training, education, career
counseling, and (frequently) job postingis most attractive when a companys growth
rate opens up many advancement opportunities. When computerized operations were
expanded at one company, it chose to train current employees to be programmers instead

of hiring qualified applicants. The training opportunities were simply posted, and
interested employees who bid and passed the aptitude tests were trained to be computer
programmers on company time and at company expense.
Like employment security, such efforts go a long way in building employee loyalty.
Indeed, two-thirds of the companies in my sample have institutionalized the principle of
promotion from within by routinely posting job openings. Some companies even provide
plant workers extensive training and education so they can move into white-collar
Promotion of insiders to good jobs gets attention from company employees. Up-from-theranks supervisors who have benefited from such a policy have reason to be loyal and
enthusiastic. Indeed, their attitude may contribute to the higher rates of productivity that
many of these companies claim.
Promotion from within also helps a company maintain a consistent philosophy as the
organization grows larger. Homegrown managers know and respect the companys values
and traditions. Unlike newcomers, veteran managers know many employees personally
and are familiar with several different jobs and operations. They also serve as excellent
role models for employees wishing to follow in their tracks. But remember: extensive
reliance on promotion from within requires reliable initial hiring practices and good
career development programs.
6. Influential Personnel Departments
Not only are the personnel departments of the companies studied usually extremely
centralized, they also have access to and in many cases are part of top management. More
than half of the personnel vice presidents I interviewed report directly to the presidents of
their companies. At a few of these companies, the head of personnel is a member of the
board of directors.
The personnel departments of the companies studied are well staffed. Many have at least
one professional person per 100 employees. Many also devote much attention to training
and encouraging personnel people. At one predominantly nonunion company, trainees in
employee relations get experience in a union plant, a nonunion plant, and finally in a
corporate staff assignment. One company employs a staff person whose sole function is
to help plan the career paths of the companys personnel people.
One reason for the influence of the personnel departments at the companies I studied is
that line managers competence is measured partly in terms of employee relations. When
a department manager is accountable for the results of an employee attitude survey or the
number of complaints filed by his or her subordinates, the expert advice of the personnel
department suddenly takes on relevance.


7. Competitive Pay & Benefits

As might be expected, the 26 companies in my sample work hard to ensure that
employees perceive their pay and benefits policies as equitable. All of them, therefore,
compensate their employees at least as well as their unionized competitors do. The
companies studied thus pay well by both industry and community standards. The
nonunion companies watch carefully the union settlements of competitors.
Also, the nonunion businesses make careful and thorough attempts to communicate with
workers about their pay increases and benefit improvements. Few of the companies
studied will likely ever be vulnerable to a union drive on the basis of either benefits or
These companies also give particular attention to making their benefits visible. One
company, for example, presents an annual slide show at each local office comparing its
benefits with those of its organized competitors. Black & Decker personnel and benefits
professionals present all major benefit changes in-group meetings. They not only tell
managers and supervisors about the changes beforehand, but personnel staffers also
provide them with answers to possible questions from employees.
Some nonunion companies argue that what might appear to be very generous provisions
are highly cost effective. For instance, the medical facilities for employees at some
companies seem lavish. Polaroid, for one, has on call its own orthopedists,
dermatologists, and other specialistsin company facilities. Polaroid managers argue
that this is much less expensive than medical insurance payments. Furthermore,
employees spend less time away from work when medical professionals come to them.
Many nonunion companies also place heavy emphasis on merit increases, which either
substitute for or supplement across-the-board pay increases. According to its proponents,
such pay systems can serve as an incentive and will encourage greater work effort.
In the same spirit, many of the companies studied pay blue-collar workers salaries instead
of hourly wages. About half of the companies have no hourly employees at all. The
practice of bestowing the status of a salary on blue-collar workers represents another
attempt to eliminate the we-they distinction between management and labor or between
office and plant personnel.
The allowances for illness or personal business included in salaries impart respect and
responsibility to the worker that are absent when labor is rewarded strictly by the time
clock. Besides being consistent with the principle of equal treatment, salary plans
differentiate the employee in status from his or her friends at other companies in the same
industry or community.


Other common forms of supplementary compensation include profit sharing, companymatched savings and investment plans, and employee stock purchase plans. Profit sharing
and stock ownership can also help employees to identify with the company, motivate
them to work for its success, and further their understanding of the economics of the
Such programs often distinguish large nonunion companies from comparable organized
corporations in the eyes of employees. For example, unionized employees at AT&T and
General Motors were allowed to participate in their companies savings and investment
plans only two years ago, long after workers in many of the 26 companies I studied were
offered that perquisite.
8. Managements that Listen
The companies studied use a variety of mechanisms to learn employees views on various
matters. Attitude surveys take the temperature of the organization and expose
developing employee concerns. Some companies regularly conduct sensing sessions, or
random interviews to understand employees sentiments.
A number of these companies exclude supervisors from the upward communication
process, so employees feel freer to speak out. For example, one company keeps its local
managers out of its annual benefits presentations, which include a suggestion, complaint,
and discussion session.
These managers now conduct their own regular meetings with employees, in turn
excluding the foremen and supervisors. In this way, management believes, it can forestall
serious labor problems on the local level. Supervisors are also encouraged by this system
to resolve employee problems quickly, because they may fear higher-level investigations
or complaints to higher management that reflect negatively on them.
Speak-out programs, which allow employees anonymously written inquiries to be
answered by management, are another common communication device. According to
executives of companies that use speak-out programs, 5% to 10% of their employees
submit a question at least once a year.
Like other communication programs, speak-outs can backfire if handled gracelessly. At
one company, a hardworking technician wrote to inquire why parking at the plant was not
on a first-come, first-served basis. This man arrived early every morning, parked his car,
and then walked one-quarter of a mile across an empty management parking lot. His
letter was answered by a low-level official, who suggested that managers have a divine
right to convenient parking.
The dominant grievance procedure in the companies studied is the open-door policy.
However, two companies have (and pay for) formal arbitration programs for certain
grievances that cant be otherwise resolved. Two other corporations have appeals boards
to which employees can take their grievances. One of the boards includes hourly

employees and makes recommendations to the president. The other, which consists of
managers, is a decision-making body.
Discussions with representatives of several nonunion companies have convinced me that
open-door policies whose reviews and investigations are formal and rigorous can be
effective. The office of the chairman of one company usually receives several hundred
open-door complaints a year. Investigators working out of the chairmans office follow up
on these complaints under an exacting timetable. Because managers usually settle in
advance those cases in which the employee is obviously right, the cases that reach the
chairmans office tend to be those in which management is right; thus, about three-fourths
of the decisions support managers and about one-fourth back employees.
Top managements reactions to complaints demonstrate to lower-level management and
employees alike whether the higher echelons care about the way employees are treated.
When top management wants the decisions to be fair and is willing to investigate and
review lower-level decisions, its credibility is enhanced.
The principal value of the formal complaint procedure seems to be the encouragement it
gives to managers and supervisors to resolve employee problems before they become
formal complaints. Management in a nonunion environment should not expect a formal
grievance procedure to be used frequently; nor should such a procedure be relied on as a
primary feedback device.
However, in my view, a nonunion company today should not be without some kind of
formal complaint procedure. This is especially so in todays environment because
employees who feel discriminated against because of race, sex, or age or who think their
work area is unsafe can take complaints to an outside agency for investigation. Wise
executives prefer to respond to complaints through their own mechanisms rather than
deal with requirements set by a government agency.
9. Careful Grooming of Managers
Managers in these companies know that effective management of people is an important
part of their jobs. Many of the companies studied avoid bonuses that reward short-term
performance. Instead, they emphasize long-term results, including successful employee
relations. They use stock options or other incentives associated with longer-term
company success.
Thus, the selection of managers is a carefully considered procedure. Some nonunion
companies use a series of panel interviews to evaluate potential managers instead of the
traditional process whereby the boss picks his or her favorite for a promotion. Other
companies send managerial candidates to assessment centers for a series of rigorous
and imaginative tests that assess their ability to identify priorities and subdue crises in the
managerial ranks.
At the lower levels of the organization, considerable resources are devoted to supervisory

training. The supervisors, after all, deal with employees on a day-to-day basis, while top
management has only occasional contact with them.

As a consequence of such training and reward systems, managers at all levels are keenly
aware of the importance of good employee relations. Results of surveys are viewed as
indicators of managerial competence. In many companies, managers believed that a
stigma would be attached to their careers if their units had union-organizing drives or
major personnel problems.
People who demonstrate that they can manage well within the ethic of the organization
are promoted, said a general manager of one company. At another company,
performance is evaluated in terms of both competence and relationships.
Because top managements personnel concerns often focus on the lowest-level
employees, the supervisor may have the most difficult role of all in these nonunion
companies. In some cases, the preoccupation of the founder with the welfare and security
of the hourly workers appears to have depreciated the role of the supervisors, who may
feel less secure than those they supervise. If supervisors come to feel insecure and
experience too much anxiety, of course, the long-run health of the organization can suffer.
Some of the nonunion companies have therefore begun tracking the feelings of
supervisors through attitude surveys and other means.


III. Study Framework

A. Theoretical Framework
Two-Factor Theory by Frederick Herzberg
This theory represents the factors drives employees from being dissatisfied and
satisfied in terms of their job in the organization. According to Mr. Herzberg,
Hygiene Factors such as Job Security, Salary, Insurances, and Benefits are
maintenance factors, which are compliance of the laws of the country and the
company policies. On the other hand, Motivators are intrinsic factors which give a
positive reinforcement on the job they perform. This is where management
recognizes their value as assets, in effect, it gives the employee a feeling of
belongingness to the organization, and that they are able to contribute to the
objective of the management.




B. Conceptual Framework
This Conceptual Framework represents the strategies of the Employee Relations
in terms of addressing the Dissatisfiers of the employees in NGCP. The
researcher will gather the information through the resignation letters and
interview forms through the Organization and Recruitment Division of NGCP.
The researcher will also look into the results of the previous Human Resource and
Organizational Climate Study survey forms from the years 2010-2014.
The following Dissatifiers were gathered by the researcher through interviewing
of NGCP employees who have been previously employed by TRANSCO and
NAPOCOR before.
Salaries & Benefits Package

Before, the employees of NGCP that came from two government

corporations (NAPOCOR and TRANSCO) experienced significant
number of benefits that were given by both the Management of
TRANSCO and NAPOCOR such as: Three Month Pay, Christmas Bonus
Pay, Anniversary Pay, Rice & Clothing Allowance, Car & Educational
Loan, and Medical Allowance. Since transitioning to NGCP in 2009, there
was great amount of comparison between the public and private entities, to
which the employees of NGCP expected more out of the management.

Career Opportunities

After gaining work experience and training from the organization, most
employees from the Operations and Maintenance and Engineering
Department of NGCP leave the organization because of better career
opportunities abroad. Since NGCPs workforce consists of senior age
individuals, promotion is dependent on the positions vacated.


Resignation of



Two Factor Theory

Hygiene Factor
/ Job Dissatisfaction
/ Job Satisfaction
Events and Programs of the Employee Relations Division
Salaries &Job
and Growth
Career opportunities

In terms of Job Satisfaction in NGCP, the following Motivators were gathered

based on interviews with NGCP employees, and programs that are approved by
the management.
Events and Employee Programs of the Employee Relations Division

Annual Management Employee convocations are essential elements of

Motivators because it entails communication between the management
and employees. This is where employees are given recognitions based on
their performance and contributions to the organization.

NGCP Sports Competition Besides competencies and growth in the

respective departments, NGCP also recognizes talents regarding physical
activities that would build up the camaraderie, trust, communication, and
the breaking barriers between the ranks of the employees in the


Job Challenge and Growth

NGCP Working Group Committee - the Employee Relations Division

recommend to the NGCP Management the creation and approval of
working group committees in various events in the organization such as:
Task Force Yolanda, Task Force Ruby, and Task Force Ondoy. These
working group committees are formed by NGCP employees from various
departments from the Head Office to the Regional Offices of North, South,
Visayas and Mindanao. Since most of the working group committees
formed are related for natural disaster operations, NGCP employees will
have the chance to render service in restoring electricity and providing
basic necessities to those greatly affected by natural calamities across the

NGCP Employee Cooperative, Inc. (NEMCO) The Employee Relations

Division recommended to the NGCP Management created its own
cooperative for financial assistance to its employees. This also gives the
employees to be part of the management of NEMCO, whereby they hold
positions from being the Chairman, Vice President, Secretary, Treasurer
and Auditor through elections of fellow NGCP employees.

NGCP Armed Forces of the Philippines (AFP) Reservist Personnel In

collaboration with the Management, Employee Relations Division, and
Security Department, employees from the North, South, Head Office,
Visayas, and Mindanao will be part of the ranked reservist personnel of
the AFP, which they will be required to render services in times of


C. Operational Framework

Figure 1
Hygiene Factors
Salaries &
Benefits Package


Figure 3

Figure 4



Job Challenge
and Growth
Events and

Opportunity to do
Challenging work

Figure 2
Human Resource
Department and
Climate Survey
HR Roadshows
Feedback System

Employees are
Satisfied, and


The figure above shows the operational framework of NGCP. Figure 1 pertains to the
Hygiene Factors such as Salaries and Career Opportunities are seen as Maintenance
Factors of the organization. Most senior employees of NGCP that have been part of the
TRANSCO and NAPOCOR era, are accustomed to scheme of the grant of compensation
and benefits package provided by the former employers. Since coming to NGCP, these
employees expected more from the organization in terms of monetary allowances, leave
credits monetization, financial assistance program and insurances. The second item
pertains to possible career advancements in the organization. Employee turnover of
employees who are assigned in the core functions such as the Operations and
Maintenance and Engineering Department greatly impact the manpower level of NGCP
in operating the transmission towers and substations across the Philippine Archipelago.
Foreign energy organizations pirate these employees, and offer a more competitive
compensation & benefits package and positions to them.
Figure 2 pertains on how the Employee Relations Division will reach out to the
employees, to know what programs and events are suited well to develop employee
development to the organization. The first and second item concerns the creation and
distribution of survey forms to the customers of the Human Resource Department of
NGCP across the country and the HR, as a whole, travel to these offices to interact with
these employees. By this, the Employee Relations Divisions will be able to identify what
are the expectations in terms of services and programs of the employees from and the
management. The third item, EPFS, concerns the key result areas and performance
evaluation of NGCP. By this, the Employee Relations Division, in coordination with the
respective managers and supervisors of the employees, will be able indicate what type of
trainings are needed by the employees.
Figure 3 represents the initiatives of the Employee Relations Division in relation to the
instruments mentioned in Figure 2. The first item, Job Challenge and Growth speaks of
positions that these employees can apply and be part of, besides their usual function in
their departments. By this, employees are involved and be part of the decision making
process of the operations of these organizations. The second item, Events and Programs
pertain to the open communication between the management and employees. This is
where recognition of the employees, who performed well in the organization, is given
distinctions by the management. By that, employees felt a sense of purpose and
engagement towards NGCP.
The Employee Relations Division of the Human Resources Department of NGCP plays a
big role in addressing the concerns of the employees to the management. Because NGCP
is a non union organization, employees look for a venue to channel and express their
sentiments. The Employee Relations Division reaches out these employees to let them
know that the Human Resources Department is helping them communicate to the
The management of NGCP favors more a non union organization through the creation
of the Employee Relations Division, and that having a union entails more of a structured
approach for the employees. By having a group that is familiar with the employees of the

organization, it enables the both sides to express freely their initiatives and expectations
as to the mission of the organization. Management approves these programs and events
of the Employee Relations Division because they want to let the employees feel that they
are most valuable assets of the organization. Recognition and Growth are two
indispensable elements in an organization which that effect on employees will motivate
them to work better.
IV. Research Methodology
Research Design and Data Gathering Instrument

The researcher will utilize the interview method and survey analysis to
produce narrative reports on both the employees and management of
NGCP. For the employees perspective, the researcher will examine the
answers of the employees in the HRD Customer and Organizational
Climate Survey Form as to what improvements needed to be done in the
organization in terms of engagement of employees. For the managements
perspective, schedule interviews with the Henry T. Sy, Jr., President and
CEO, Hon. Roque F. Corpuz, NGCP Consultant, and Dir. Anthony L.
Almeda, Chief Administrative Officer. The researcher will use audio
recording to document the important details of the interview.

Schedule of Activities

By July 2015, the researcher will first draft memo addressed to the head of
the Human Resources Department in pursuing to study the needed
documents in the research. The researcher will allocate 1 month, starting
August to September 2015 to examine and furnish the report on the HRD
Customer and Organizational Climate Survey. The researcher will also
interview rank and file employees of NGCP during the 1 month allocated
period of analyzing the survey forms as to compliment the findings.

For the interview with the management of NGCP, the researcher will draft
a memo addressed to the following: Henry T. Sy, Jr, Roque F. Corpuz, and
Anthony L. Almeda by October 2015.


To cover the expenses, the researcher has allotted Php 5,000.00 for the
printing, photocopying, and if possible, travelling to the different offices
of NGCP in North, South, Visayas and Mindanao Region.



Hollinshead, G. Nicholls, P, Tailby, S. (2003) Employee Relations (Second

ed.). Pearson Education.

Leat, M. (2007). Exploring Employee Relations (Second Edition ed.).



EPIRA (R. A. 9136) (Philippine Department of Energy Portal)


The National Transmission Corporation (TransCo)


NGCP conducts AGOMA 2015 (NGCP)




Articles Online

Gopalakerishan, R. (2009). Employee Engagement: A Leadership Priority.


Hallsall, A. (20014). The Essentials of a Healthy Employer-Employee

Relationship. http://www.tlnt.com/2014/05/23/the-essentials-of-a-healthyemployer-employee-relationship/

Bennett, N., Miles, S. (2009). The Changing Employer-Employee


Foulkes, F. (1981). How Top Non-Union Companies Manage Employees



Interview Guide Questionnaire

Good Day! I am Jose Lorenzo V. Anacay of the Human Resources Department - NGCP
Head Office. As part of my course requirement at the School of Labor and Industrial
Relations of UP Diliman, I am here to get your ideas regarding the why NGCP favors a
non-union organization.
Objective: The purpose of this interview questionnaire is to identify

what are

expectations of the employees of NGCP regarding the management and specifically the
Employee Relations Division of the Human Resource Department as to the engagement
of their employees to boost job satisfaction in the workplace.


Interview Questions
1. What is your idea of the Employee Relations Division of the Human Resource
2. What do you think are the elements that contribute to the job dissatisfaction of
employees in NGCP?
3. What do you think should be the initiatives of the Employee Relations Division
and the management to boost the job satisfaction of the employees of NGCP?


HRD Survey 2015

The objective of this HRD Survey Form is to identify the
Job Satisfaction Level of the Employees of NGCP.
Shade the circle that corresponds to your Functional Group

Office of the President and CEO

Office of the Chief Finance Officer
Office of the Chief Technical Officer
Office of the Chief Administrative Officer

Shade the circle that corresponds to your department

o O&M
o SO




Shade the circle that corresponds to your level

Rank and File

o Strongl

o Somewh

o I feel encouraged to come up with new and better ways of doing


o My work gives me a feeling of personal accomplishment.

o I have the tools and resources to do my job well.



o The Company does an excellent job of keeping employees

informed about matters affecting us.

o I understand why it is so important for (Company name) to value

diversity (to recognize and respect the value of differences in
race, gender, age, etc.)

o My job makes good use of my skills and abilities.

o My supervisors manager visibly demonstrates a commitment to

o Senior managers visibly demonstrate a commitment to quality.


o How satisfied are you with the information you receive from
o Management on what is going on in your division?

o How satisfied are you with your involvement in decisions that

affect your work?

o How satisfied are you with your opportunity to get a better job in
this company?