Finals hrm

• Performance appraisal


  A process of evaluating an individual in order to arrive at an objective human resource decision
• Performance appraisal


  • It is crucial for effective management
  • It determines who should be promoted to higher positions
  • It evaluates individuals objectively and aids in management development by identifying strengths and weaknesses
  • Accurate measurement of performance is vital for organizations to achieve their goals and objectives
  • It can integrate organizational demands and individual needs through career advancement
• Criteria in the development of a measuring instrument

  • Validity
  • Reliability
  • Acceptability
  • Specificity
• Developing and administering an appraisal plan

  1. Secure full agreement of line managers about the need for a formal performance appraisal plan and for the purpose in which it will be used

  2. Secure plans of their companies and existing literature on the subject to develop a plan best suited for the needs of the particular organization

  3. Enlist the cooperation of the supervisor in drawing up the appraisal plan

  4. Make sure that the purposes and nature of the performance appraisal plan are explained to those who will make the appraisal

  5. Provide training to those who will use the instruments

  6. Develop and achieve line and staff coordination

  7. Arrange for periodic discussion of the performance appraisal

  8. The appraisal system should be carefully used in selecting employees for possible promotions

  9. Provide for challenges and review of performance appraisal
• Approaches to performance management

  • Comparative approach
  • Behavioral approach
  • Result approach
• Comparative approach


  • Ranking
  • Forced distribution technique
  • Checklist method
• Behavioral approach


  • Critical incident
  • Behavioral anchored rating
  • Organizational behavioral modification
• Result approach


  • Management by Objectives (MBO)
  • Productivity Measurement and Evaluation System (PROMES)
• The performance management appraisal feedback

  1. Data

  2. Evaluation

  3. Action
• The appraisal interview


  • Managers have the chance to discuss both the strengths and weaknesses of the employee
  • Managers need to convey both praise and constructive criticism
  • Managers should focus on counseling and development rather than solely on poor performance
  • Handling the process tactfully is crucial to prevent resentment and potential conflicts
• Effective performance management system

  • Consistent with the strategic mission and goals of the organization
  • Beneficial as a development tool
  • Useful as an administrative tool of management
  • Legal and job related
  • Generally fair and acceptable by the supervisor and the employees
  • Useful as documentary evidence in all personnel actions
• Performance management evaluation and appraisal are recognized as essential tools for a functional organizational system, aimed at facilitating its growth and development
• Regardless of the formality of the organization, there is a need for an appraisal system as a means of control
• It's imperative for organizations to establish a well-designed appraisal system that garners acceptance from both workers and managers and receives approval from top management
• Fringe benefits


  Additional compensation provided to employees beyond their regular salary or wages
• Origins and early processes of fringe benefits


  • Employers initially provided welfare benefits to employees and their families
  • These benefits aim to gain employee loyalty, cooperation, and goodwill
  • Employees were considered part of a big family, and the company ensured their satisfaction
• Small company dynamics


  • In small family-owned businesses, management knew all employees personally
  • The paternalistic approach worked well, with management acting as a caring "Big Brother"
• Challenges in larger corporations

  • As companies expanded, granting fringe benefits became less common
  • Some employees viewed benefits as dole-outs rather than fair compensation
  • Inequalities arose due to inconsistent benefit distribution
• Role of company unions

  • Employee unions advocated for fair treatment in benefit provision
  • Management responded by implementing clear guidelines and procedures
  • Benefits now align with sound management principles and employee needs
• Fringe benefits


  • Anything that is not covered by regular salaries and wages
  • Anything that contributes to the improvement of the conditions of work, and that motivates the employees to do good work
  • Additional compensations that the employees receive regularly at the company policies and guidelines
• dole-outs rather than fair compensation
• Inequalities arose due to inconsistent benefit distribution
• Employee unions


  Advocated for fair treatment in benefit provision
• Management


  Responded by implementing clear guidelines and procedures
• Benefits now align with sound management principles and employee needs
• Benefits


  Anything that is not covered by regular salaries and wages, that contributes to the improvement of the conditions of work, and motivates employees to do good work
• Objectives of the company in granting fringe benefits

  • To provide additional protection and comfort to employees and their families
  • To maintain and develop employees as an effective workforce committed to corporate mission and vision
  • To develop productive and happy employees and greater loyalty and commitment
  • To develop greater partnership in the development of quality products and services
  • To develop satisfied employees and more concerned workers to avoid activism
  • To develop partnership with labor unions and employee's associations
• Company benefits


  Additional costs in the company operation, must consider the company's ability to pay and contribute to profitability
• Principles the company's benefits should follow

  • Base on financial conditions and capability to pay
  • Not interfere with company operations, management has prerogative to control
  • Fair to all employees of equal rank and positions, capable of uniform implementation
  • Have mutual value to both employers and employees
  • Measured in terms of employees' services to the company
• Classification of benefits


  • Statutory benefits (mandated by law)
  • Company benefits (granted by the company outside of those mandated by law)
• Statutory benefits


  • 13th month pay
  • Five-day incentive leave
  • Maternity leave with pay
  • Paternity leave with pay
  • Pag-Ibig Fund-housing loans
  • Medicare Fund
  • Social Security Benefits
  • Cost of living allowance
• Company benefits


  • Vacation leave with pay
  • Sick leave with pay
  • Bereavement Leave
  • Hospitalization Plan
  • Sickness and Accident Insurance plan
  • Life insurance and pension plans
  • Christmas and mid-year bonus
  • Housing equity assistance
  • Educational Plan
  • Recreational and fitness facilities
  • Legal aid
  • Car plan
  • Company Service and transportation
  • Stock option plan
  • Management Bonus
  • Emergency Leave
  • Personal Leave
  • Union Leave
  • Production sharing plan
  • Birthday leave
• Profit-sharing


  An incentive program where employers share a portion of their net profits with employees
• Purpose of Profit-Sharing


  • Employee Stake: Employees feel a sense of ownership
  • Attitude Modification: Enhance employee efficiency, productivity, loyalty, and interest in the firm's welfare
  • Worker Partnership: Employers view workers as partners or co-workers
• Types of Profit-Sharing Plans

  • Cash Plan (Current Distribution Plan)
  • Deferred Distribution Plan
  • Purchase Plan
• Major categories of benefits

  • Economical and financial benefits
  • Recreational, social and athletic services
  • Health and medical services
  • Professional services
• The benefits derived from these company services are immeasurable, since they are intangible. Nevertheless, their value cannot be underestimated as they contribute greatly in making the company a good place to spend the best years of the employee's productive life
• Administrative and Financial Challenges

  Managing fringe benefits poses administrative and financial challenges for employers
• Careful Handling


  It's crucial to handle benefits programs carefully to avoid souring relationships between management and employees
• Mutual Benefits


  Benefits programs should be advantageous for both employers and employees