Presented to the faculty ofFar Eastern University Makati

In partial fulfillment of the requirementsIn Human Resources ManagementFor the degree Masters of Business Administration

Submitted to: Professor Jaime Cempron

Submitted by: Myra Joy Lomibao

August 2013

TABLE OF CONTENTS

PageREACTION PAPERS:I. Tall Pines Hotel3II. Performance Appraisal4III. The Broken Employee Contract5

POSITION PAPER:I. HR Issue: Employee Turnover in the Philippines6

REFLECTION PAPER:I. HR Management Class Learning Points9

A Reaction to the Case:Tall Pines HotelTall Pines Hotel recently held an open house job fair in striving to fill 315 staff positions ranging from bellhops to clerks. The results of the job fair werent very attractive. Of the 200 plus applicants, only 75 had been screened and interviewed. The applicants concerns were mostly about the unappealing wage offerings and the limited access to and from the location of the hotel.The whole synopsis of the case can be relatable not only to human resource acquisition, but more importantly about the human resource maintenance. Even before the acquisition of human resources, the package of total compensation must be attractive enough to lure in applicants. Human resource acquisition focuses more on job analysis, recruitment, and selection. I think that Tall Pines method through job fair and open house is very effective. They are willing to hire to fill the positions even if the applicants had little experience, as long as they were trainable. However, Natalie, the director of personnel and the person in charge of the staffing process, had to face the competition of other employers compensation package.In line with Human resource maintenance, Natalie must consider the total compensation of potential employees. This includes direct and indirect compensation. As for direct compensation, some applicants complained that the minimum wage was nothing compared to what fast food chains were offering. Management agreed that they would upgrade the wage scale with additions to minimum wage for entry level jobs. This is necessary to retain good employees. Regarding the transportation to and from the hotel, they should provide a shuttle or other transportation system to assist the workers coming from Riverton and Roosevelt City, since it would still be very difficult to commute through public transportation. Offering these benefits could be part of the compensation package since they are in consideration of the betterment of the employees.On the other hand, to implement a more successful recruitment process, the management of Tall Pines could advertise the previously stated benefits to attract applicants to work with them. Offering a great compensation package has a big effect on attracting applicants. This would let the applicants know Tall Pines is interested in taking care of their employees, despite that it is inconveniently far from the main city. They could also advertise the mission and vision of this upcoming hotel so that applicants would understand their efforts and expectations for the company and for customers as well. If I were in the shoes of Gordon, I would implement these suggestions and be persistent in filling those 315 positions just in time for the grand opening on May 1. If they were not filled completely, I would still launch the grand opening since it was already planned. The grand opening could also serve as a visual observation of what the company is about. People would be able to see what kind of opportunities they could be given as employees.

A Reaction to the Case:Performance Appraisal

Self-appraisal is a method of performance evaluation that is accomplished by the employee to encourage career management. By completing a self-performance appraisal, the employee will be able to clarify his duties and responsibilities. Describing his job tasks can help clarify any discrepancies that may exist between management and the employee. Defining the duties would show management if the employee is doing more or less of what is required. The self-appraisal also gives the employee a chance to honestly evaluate his performance on the job. He may show weak and strong points. This would encourage him to improve or strive in his career.One of the benefits of a self-performance appraisal is to compare with the evaluation of the manager. This gives the message to employees that the process of performance management is a team effort and not only a one way street from management to the employee. Completing a self-appraisal also provides the employee with an opportunity to state his career goals with the company. The manager and the employee may develop a plan to help the employee reach his goals through training or additional responsibilities in the organization.

Janets decision to be lenient about Carol completing the self-appraisal is unacceptable. She should have been more encouraging, even though Carol found it embarrassing to admit her faults or unsatisfactory performance. The self-appraisal should not have any consequences to what is written, but it should be more about self-realization and helping the employee to do better.

I think that the self-appraisal is a very useful tool in the appraisal system. However, the employees should know what is behind it. They should be informed that it is only to be used for better career management. And it is not to be the only basis of the evaluation of an employee. The self-appraisal should be compared with the supervisors as well as the managers evaluation to be fully analyzed. I do not find it time-consuming, since they are only required to do this once a year. However, one of my recommendations would be to try to implement this evaluation procedure every six months. The earlier the employee realizes his weaknesses, the earlier he can improve. Then after the last six months, it would be more compromising to give the employee a raise due to improved performance.

A Reaction to the Case:The Broken Employment Contract

According to Arthur Wayne, he was unreasonably terminated after he was promised a lifetime employment by his direct supervisor Sarah Bell. He claims that the contract for guaranteed employment was partly oral (via interview) and partly written. According to Wayne, he was told by Bell that as long as he did his job, he could remain with the company until he is ready to retire. Wayne also defended that he was only terminated because of his personality clash with other employees. And this did not seem fair to Wayne in conformity with the Supervisory Manual. Wayne also stated that before his termination, he only shared a brief conversation with Bell about the complaints from employees. While in the Manual, it states that employees should be given a chance to improve their faults through warnings and coaching sessions, leading to suspension or termination if performance does not improve.

On the other hand, on the side of George Finley and Sarah Bell, the HR investigation report states that they did conduct a formal meeting with Wayne regarding the complaints from other employees. Finley and Bell requested Wayne to provide them with various reports and documents pertaining to the allegations of odometer discrepancies. Unfortunately, Wayne could not provide such documents and was not able to answer questions satisfactorily. During the meeting, Wayne was seen as insubordinate, defensive, and displayed inappropriate behavior.After reading the full HR investigation report, it is obvious that Bell made the right decision in terminating Wayne, since he was not able to support or defend the allegations with appropriate documents and reports. Aside from that, his demonstration of inappropriate behavior during the meeting was unnecessary. It was obvious that he was guilty since he reacted with angry outbursts. Although it is stated in the Manual that employees should be given a chance to redeem themselves, it is a totally different story if the problem is with the employees carelessness and disrespectful behavior.

Furthermore, the Supervisory Manual is not to be construed as a contract between the employer and employee. The Manual is simply a guideline that advises supervisors in dealing with subordinates. Wayne should not have depended on the Manual, or even the oral promise from Bell. If that promise was actually stipulated in his employee contract, then he could provide that evidence in his defense.

In conclusion, I believe that Wayne was terminated for just cause. He was given a chance to explain himself in the meeting with Bell and Finley. However, Wayne failed to defend himself, and instead made things worse with his behavior. Lastly, Waynes defense is not strong enough since he has no hard evidence via an employment contract.

A Position Paper on the HR Issue: Employee Turnover in the Philippines

Employee turnover rate seems to be increasing more and more in the Philippines, particularly in the retail industry, the fast food industry, small-medium enterprises, and even in major call centers. According to the survey conducted by JobStreet.com, the most common reasons are the issues that employees have with compensation package and lack of career growth. Considering the culture of this country, the problem may not only be with the employee, but with the employer as well. In my experience, the retention of employees is also influenced by organizational culture, organizational commitment, and some organizational values.

JobStreet.com study reveals top reasons for employee turnoverManila, Dec 16, 2007Employers, take note: while plaques and accolades are nice to have, Filipino workers more than their counterparts in Southeast Asia would rather have job security than recognition and appreciation.A recent survey by JobStreet.com with over 1,200 respondents provides valuable insights to employers dealing with workforce retention. The survey results cite issues with present compensation and benefits, seeking greater challenges, exploring other career paths and promotion opportunities as top reasons for employees who leave their current jobs. Similar surveys conducted in Malaysia and Singapore also reveal that Filipinos share almost the same sentiments on career changes as their Southeast Asian neighbors, but differ from Malaysians and Singaporeans by preferring job security over recognition.

"A high rate of employee turnover remains a critical issue for many companies as it hampers productivity, quality and profitability," says Grace Colet, JobStreet.com's Country Manager. "We hope that with our survey's findings, employers can begin proactively addressing concerns cited by respondents with strategies such as providing a challenging and rewarding work atmosphere, positive succession planning and better overall strategic and operational management."

Source: JobStreet.com,http://www.jobstreet.com.ph/aboutus/preleases53.htm

Firstly, a high employee turnover rate can be directly correlated with the performance of the organization. If the employees are usually terminated, it would make the owners think why they were even hired in the first place. If the employees are more likely to resign voluntarily, there is obviously something that they did not find satisfactory within the organization or the company itself. Management has the duty to monitor employee retention. They must be fully accountable in identifying and understanding the causes of high employee turnover.

In analyzing the HRIS record, Philips and Connell prescribe the following questions:

1. Which major group contains the most turnover? (Example: professional)2. Which specific job category contains the most turnover? (Ex: senior client partner)3. Which specific function contains the most turnover? (Ex: outbound sales )4. Which specific department contains the most turnover? (Ex: operations)5. Which specific area/region contains the most turnover? (Ex: Makati)6. What is the timing of most turnover statistics? (Ex: mid-January)7. What is the tenure of most turnover statistics? (Ex: average of four months)8. What is the age of most turnover statistics? (Ex: 21-26 years old)9. What is the educational level of most turnover statistics? (Ex: first-year college)10. What is the sex of most turnover statistics? (Ex: male)11. What is the ethnic or regional background of most turnover statistics? (Ex: Visayan)12. What is the marital status of most turnover statistics? (Ex: single)13. What is the family status of most turnover statistics? (Ex: separated parents)

The answers to these questions provide only one dimension. The other dimension must come from loyal employees. To find out, you must directly ask these people what motivates them to stay and what could motivate them to leave.

Source: Managing Employee Retention:Jack Philips and Adele Connell, 2003

With regard to organizational culture, I have observed that many corporations, big or small are very hesitant in giving full benefits. There is a certain process that an employee goes through starting with becoming a casual employee, then goes on to a probationary period, before finally becoming a regular employee (Labor Code of the Philippines, Book VI). However, some remain under contractual employment for longer than expected, before enjoying the full benefits of regular employment. There are many organizations who are guilty of cost cutting even in the cost of human resources. The cost of labor in the Philippines is already so cheap, and many corporations also want to deprive their employees of non-monetary benefits. Fortunately, there are those firms who really know how to take care of their employees. What about those employees who are obedient, hard-working, and persistent in their careers? Part of managing human resources definitely includes offering a just compensation package for the exertion of the employee.Another factor would be the organizational culture and values. The concept of crab mentality is very common here. Crab mentality is a social epidemic. It is characterized by peoples actions of pulling others down so they can get on top. The more knowledge, skills, and abilities that an employee would portray in his productivity, there are only two results: either they arerewarded with positive reinforcement or they are seen as a threat to fellow employees. Some employees really have difficulty in career growth due to this malicious mentality. Some employers would prefer not to promote their employees because they wouldnt want to lose such a good employee. Some employers are scared that their subordinates might even strive higher than where they are. This is probably why employees just decide to resign from their jobs, just to get away from the negative values that are practiced within the organization.In conclusion, my recommendation in minimizing employee turnover is to first make the realization that turnover is high and retention is low. After admitting that there is a problem, management can then gather descriptive statistical data to determine what is causing the problem. Also, business owners, management, and supervisors should always instill their true organizational values to ensure that the culture is a positive to attract and retain employees. It is important to build relationships within a firm to ensure that everyone is treated like a human being, and not just an employee. Lastly, rewards and perks should always be part of compensation. Recognition is a great way to let employees know that they are moving up the corporate ladder. Human resources are an investment, not a cost.

A Reflection on the Class: HR Management

During my time in our HR management class, I learned a lot about the theories of human resources management. I feel that it was very important to be familiar with the theories, even though they may not actually be practiced in various organizations. The HR processes of acquisition, development, maintenance, and coordination are vital in HR management. I feel that these concepts make a good foundation and structure for handling people in an organization. But of course, in actual practice, it should always be three-dimensional. One must consider theories for guidance, experience with human relations, and instinctive decision making skills.One of the best parts of the class was working with my group-mates (The Yogis). They were all very insightful during our group assignments. They were all very cooperative and willing to contribute great ideas for our presentations. Since we all come from different backgrounds, I learned a lot. Though it was challenging at some points, I learned to push through. I also enjoyed being the class secretary since I felt that I had a certain responsibility to my other classmates. Being in this position gave me a sense of leadership and urgency since I was dealing with more than 30 students. I am not usually interactive in class, so being the class secretary helped me to come out of my shell and to build my confidence as a person. It was also great that our class was so big and diverse. It gave me a chance to interact with new people and create new networks.Lastly, I learned the importance of human resources management. First, every organization needs to acquire and then develop a set of employees that will give future benefits to the firm. Managing those employees will lead to optimum utilization of human resources. HR management also leads to improving quality of work life, creating trustworthy relationships within the whole organization, and progressing in personal as well as career growth. On a more social level, HR bridges the gap between potential employees and job opportunities.9LOMIBAO 2013