2. EMPLOYEE RELATIONS
Effective employee relations management is
an essential component that contributes to
the success of the company.
It is the connection created among employees/workers as they do
their assigned tasks for the organization to which they belong
3. EFFECTIVE EMPLOYER RELATIONS
AND SOCIAL SUPPORT
• Social support is the sum total of perceived
assistance or benefits that may result from effective
social employee relationships.
• Without social support, effective employee relation is not
possible; and without effective social relationships, social
support, likewise, is not possible.
4. • Below are some barriers to good employee relations:
• • Anti-social personality
• • Lack of trust in others
• • Selfish attitude
• • Lack of good self-esteem
• • Not a team player
• • Being conceited
• • Cultural/subcultural differences
• • Lack of cooperation
• • Communication problems
• • Lack of concern for other’s welfar
5. •Here are some ways to overcome barriers to
good employee relations:
•• Develop a healthy personality to overcome
negative attitudes and behavior.
•• Find time to socialize with coworkers.
•• Develop good communication skills and be
open to other’s opinions.
•• Minimize cultural/subcultural tension
6. • 2 EMPLOYEE MOVEMENTS
• Employee movements is a series of actions initiated
by employee groups toward an end or specific goal.
It is inevitable and are often the result of evaluation
or structural changes within an organization.
• An organization can move its employees either vertically or horizontally
7. • Vertical movement – entails the movement of an
employee from a lower position to a higher one.
• Horizontal movement – involves the transfer of an
employee to another department or position with
similar responsibilities or status
8. • Types of employee movements:
• • Promotion is a movement to a higher level or position.
• • Tenure refers to the number of years in service of an
employee.
• • Meritorious performance refers to an excellent or
outstanding performance of an employee.
• • Demotion is a movement to a lower level or position. A
common reason for an employee’s demotion is inefficiency or
poor performance.
• • Transfer is a movement to another position but with the
same level or scope of responsibility. It can also mean a
transfer to another branch or location but the employee still
occupies the same tasks.
9. •Separation or an employee’s departure
from the organization is the last type of
movement. It may take the following
forms:
10. • 1. Resignation – this is an employee’s voluntary decision to leave the organization.
• 2. Separation with authorized cause – it is also known as layoff; this is the company’s
decision to terminate employees due to business reasons. o Redundancy – one of
the reasons for layoff wherein the introduction of new technology will duplicate
some of the existing functions of certain jobs. o Severance package – it is a
monetary package to enable employees to maintain of their standard of living
during the period that they are unemployed.
• 3. Separation with just cause – this will be occurred when the employee terminated
due to theft, fraud, and other serious offenses. In this scenario, the employee will
not be receiving severance pay from the company and may also be subjected to
legal sanctions.
• 4. Retirement – this refers to the end of a worker’s employment with the company
due to old age, illness, or infirmity. Company’s have different prescribed retirement
age either 60 years old or age 65. The retiring employee will be given a retirement
package as mandated by law.
11. LABOR UNIONS AND COLLECTIVE
BARGAINING
• Employees have the option to form labor unions,
also known as labor organizations. Labor Union is a
formal union of workers that deals with employers,
for the purpose of collective bargaining or mutual
aid, interest, cooperation and protection
12. • Labor unions in the Philippines are classified into
two:
• 1. Public sector unions – it is also known as
government employees’ unions in which organized
by employees of government agencies.
• 2. Private sector unions – are those whose members
are employed in commercial, industrial and
agricultural enterprises including non-profit or
charitable organizations, medical, religious, and
educational institutions
13. REASONS WHY
EMPLOYEES/WORKERS UNIONIZE:
• a. Financial needs – complaints regarding unjust wages or
salaries and benefits given to them by the management.
• b. Unfair management practices – one example is
favoritism related to promotion and giving of training
opportunities and exemption of disciplinary action.
• c. Social and leadership concerns – some join unions for
the satisfaction of their need for connection with a group.
14. STEPS IN UNION ORGANIZING:
• Step 1. Employee/union contact – these actions by employees and union officers are
necessary to build a case against the employer.
• Step 2. Initial organizational meeting – this is conducted to attract more supporters
and select potential leaders.
• Step 3. Formation of in-house organizing committee – the strength of union is
shown by the number of employees who signed the authorization card. At least 30
employees must sign the said card before the National Labor Relations Commission
(NLRC) approves the holding of a representation election.
• Step 4. If a sufficient number of employees support the union movement, the
organizer requests for a representation election or certification election. Step 5. End
of union organizing – when the sufficient number of votes is garnered, the NLRC
certifies the union as the legal bargaining representative of employees.
15. • Collective bargaining refers to the process by which
the labor union negotiates a labor contract with the
management. This labor contract or collective
bargaining agreement contains agreements on the
following
16. •compensation • benefits • duties of
employees and management • work hours •
job security • promotion • layoffs • vacation
and rest period
17. 1.3 REWARD SYSTEM
• Companies also provide additional payments and
benefits on top of the employee’s basic salaries.
These form part of the company’s reward systems
and are given to motivate employees as they
perform their tasks. Further, rewards promote
personal growth, development and present fast
turnover among employees
18. • Types of rewards:
• a. Monetary rewards – pertaining to money, finance, or currency.
• o Pay/salary – financial renumeration given in exchange for work performance it is
either weekly, monthly or per hour.
• o Benefits – indirect forms of compensation given to employees like health care
benefits, retirement, and educational benefits.
• o Incentives – based upon a pay-for-performance philosophy, examples are
bonuses, merit pay, sales incentives, etc.
• o Executive pay – a compensation package for executives of organizations which
consists of five components: basic salary, bonuses, stock plans, benefits, and
perquisites.
• o Stock options – grant employees the right to buy a specific number of shares of
the organization’s stock at a guaranteed price during a selected period of time
19. • b. Nonmonetary rewards – it does not pertain to
money, finance, or currency; refer to intrinsic rewards
that have psychological effect on the employee who
receives them.
• o Award – given to employees for meritorious
service or outstanding performance like trophies,
medals or certificates.
• o Praise – reward given by superiors to their
subordinates when they express oral or verbal
appreciation for excellent job performance.
20. • Contingent Pay is given on top of the basic pay rate
and is based on the employee’s performance,
competency, contribution, and skills.
• • Individual contingent pay can be implemented
along five schemes:
• 1. Pay for performance scheme
• 2. Pay for competency
• 3. Pay for contribution
• 4. Pay for skills
• 5. Pay for servic
21. • Group contingent pay can be implemented into two schemes:
• 1. Team-based pay – this is given to groups of employees who
have related jobs and are assigned to work on certain project.
Team-based pay is usually given at a rate proportionate to an
employee’s basic pay while other companies distribute the pay
equally among team members.
• 2. Organization-wide pay – this is given to employees on the
basis of the achievement of organizational goals. There are two
types of organization-wide payments: a. Gainsharing – primarily
emphasizes increased productivity and improved performance
of employees. An example of gainsharing is when a company
gives a bonus to its employees when its sales revenues surpass
the sales targets
22. • b. Profit sharing – this refers to a scheme where
employees share in the profits of the company either
through cash payments or share of stocks.
