Importance of work in people’s lives -​ If an employee is meeting or exceeding the

expected number of units produced and

The Field of I/O Psychology -​ Most adults devote the majority of their maintaining a low percentage of defects,
waking weekday (and often weekends as their work performance is considered to be
well) to work. high.
Industrial/organizational psychology -​ Although many people have mixed feelings -​ The COVID-19 pandemic has significantly
about their jobs, research indicates that most impacted work performance in various
-​ is a branch of psychology that applies the
people would keep working even if they had industries. With the shift to remote work and
principles of psychology to the workplace.
the opportunity to stop. changes in job responsibilities, employees
-​ “to enhance the dignity and performance of
-​ This is strong testimony to the meaning of may be experiencing challenges in meeting
human beings, and the organizations they
work– not a particular job, but the experience the expectations of their job duties. This has
work in, by advancing the science and
of working– in defining who we are. led to a need for employers to reevaluate
knowledge of human behavior” (Rucci, )
-​ Work performance is the extent to which performance metrics and adapt to the
-​ Dignity, Trust and Respect regardless
employees meet the expectations of their job changing work environment to ensure that
position, equality, self-esteem,fair treatment,
duties and responsibilities. (Robbins & Judge, employees are supported in maintaining
autonomy
2019) their work performance. (APA, 2020)
-​ Factors that can influence work performance
One reason that I/O psychology continually include job design, motivation, job
increases in popularity is that, perhaps more than satisfaction, training and development, and
Differences Between I/O and Business
any other field, professionals in the field can have Programs
leadership. (Spector, 2019)
a positive impact on the lives of other people. To
support this last statement, let us look at a typical -​ Performance appraisals, objective measures,
-​ The application of psychological principles is
day in the life of a typical person: and supervisor ratings are some of the ways
what best distinguishes I/O psychology from
to assess work performance. (Cascio &
related fields typically taught in business
Work 8 hours Aguinis, 2021)
Commute to work 1 hour colleges. Although many of the topics
-​ Industrial psychologists are interested in
Watch TV 3 hours covered in this text are similar to those found
developing interventions to improve work
Sleep 8 hours in a human resource management (HRM) or
performance, such as coaching, feedback,
Prepare and eat meals 2 hours organizational behavior text, the techniques
Other 2 hours and incentives. (Huang & Ryan, 2019)
and the reasons behind them are often
-​ In a manufacturing company, work
different. For example, many HRM texts
performance can be measured by the
advocate the unstructured interview as an
number of units produced per hour or the
excellent solution for selecting the best
percentage of defective products produced.
employees.
EMPLOYEE SELECTION, JOB ANALYSIS -​ The organizational approach creates performance-appraisal instruments to
an organizational structure and evaluate employee performance.
TRAINING AND DEVELOPMENT
culture that will motivate employees ●​ Examines various methods that can be used
PERFORMANCE APPRAISAL to perform well, give them the to train and develop employees.
-​ Focuses on individual-level phenomena: necessary information to do their jobs,
-​ It is concerned with understanding and and provide working conditions that ORGANIZATIONAL PSYCHOLOGY
improving the relationships between are safe and result in an enjoyable and
●​ Are concerned with the issues of leadership,
employees and their work tasks, as well as satisfying work environment.
job satisfaction, employee motivation,
with the design and implementation of organizational communication, conflict
effective interventions to improve I/O VS BUSINESS PROGRAM management, organizational change, and
individual-level outcomes. -​ BUSINESS SCHOOLS group processes within an organization.
-​ Concerned with group- and -​ general business administration ●​ Conducts surveys of employee attitudes to
organization-level phenomena -​ management principles, get ideas about what employees believe are
-​ Focuses on understanding and improving -​ finance, marketing an organization's strengths and weaknesses.
the relationships between employees and -​ Accounting. ●​ Makes recommendations on ways problem
the larger systems in which they operate, -​ TOP areas can be improved.
such as teams, departments, and -​ Application of psychological
organizations as a whole. principles to the workplace. HUMAN FACTORS/ ERGONOMICS
-​ Employee selection and assessment
●​ Concentrates on workplace design,
-​ Aamodt notes that while there is overlap -​ Training and development
human-machine interaction, ergonomics,
between the two subfields, they have distinct -​ Performance management, and
and physical fatigue and stress.
research areas and methodological organizational development.
●​ These psychologists frequently work with
approaches. However, he also notes that the
engineers and other technical professionals
two subfields are often integrated and work
to make the workplace safer and more
together to address complex organizational PERSONNEL PSYCHOLOGY efficient.
issues.
●​ They study and practice in such areas as ●​ Sample activities in this subfield have
-​ The industrial approach focuses on
analyzing jobs, recruiting applicants, included designing the optimal way to draw
determining the competencies
selecting employees, determining salary a map, designing the most comfortable
needed to perform a job, staffing the
levels, training employees, and evaluating chair, and investigating the optimal work
organization with employees who
employee performance. schedule.
have those competencies, and
●​ Analyzes jobs to obtain a complete picture Companies with Best Ergonomics in the Philippines
increasing those competencies
of what each employee does, construct -> Unilever, Google ph yung mga sinabi ni sir
through training.
 -​ Hawthorne Effect- When workers know ●​ FIrst doctoral degree in IO- at Carnegie
people are concerned about them, their Institute of Technology in the US (1921)
productivity increases ●​ Clearest indicator of IO Psych as separate
Brief History of I/O Psychology 1960- passage of several major pieces of civil rights discipline; creation of the American
1903- Walter Dill Scott wrote The Theory of legislation Association of Applied Psychology(1938)
Advertising, in 1970- brought great strides in the understanding of ○​ Had a separate section on Industrial
which psychology was first applied to business many organizational psychology issues that involved and Business Psychology
1910- Hugo Munsterberg wrote Psychology and employee satisfaction and motivation. ○​ AAAP later merged with APA=Division
Industrial Efficiency, which was first published in 1980s-1990s- brought four major changes to I/O of Business and Industrial Psychology
English in 1913 psychology. Includes use of statistical techniques (1946)
1911- Scott wrote the book Increasing Human and methods of analysis,effects of work, application ■​ Renamed to Division of IO
Efficiency in Business of cognitive psychology to industry. Psychology(1970)
World War I- I/O psychology made its first big -​ Data driven numbers and ??? (di ko mabasa ■​ Incorporated as the Society of
impact ugh) Industrial Organizational
-​ Army Alpha and Army Beta tests 2000s- rapid advances in technology, shift in Psychology (SIOP,1982)
-​ Alpha- soldiers who can read/high ranking demographic workforce, changes in work policies, ○​ Parallel organization-Society for
officials global economy will impact i/o psychology. Human Resource Management
-​ Beta- soldiers who can’t read/low ranking -​ Plug and play (SHRM,1948)
officials -​ Playbook
1920- Thomas A. Edison created a 150- item
knowledge test that he administered to over Industrial Psychology in the Philippines
applicants (understood the importance of selecting
the right employees) -​ Mr. Mariano Obias: 1st Filipino IO
-​ Frank Gilbreth and Lillian Moller Gilbreth- Psychologist
time and motion scientific study : Headed the Personnel Department
-​ improve productivity and reduce fatigue by of a Large Company in the Philippines
studying the motions used by workers (Caltex)
1930- Hawthorne studies were published, -​ Fr. Jaime Bulatao S.J. : Introduced the
psychologists became more involved in the quality science of group process in the 1960s
of the work environment, as well as the attitudes of : Marked the start of Industrial
employees. Psychology as an academic field
IO Psych as a field of Study and Practice
-​ Fr. Eugene Moran, Carmencita Abella,
Teresita Nitroreda, Jose de Jesus:
 Philippine Institute of Applied Vision 15 Career Tracks
Behavioral Science
-​ The Filipino IO Psychologist is a world-class
-​ Introduced adult learning methods -​ Job Evaluation
trained professional who applies
Greatest Hurdle Faced by IO Psy researchers- -​ Workforce Planning
psychological theories, research method, and
Openness of companies to conduct research in their -​ Talent Management
intervention strategies to promote
organizations -​ Recruitment and Selection
productivity and social transformation
-​ Learning and Development
-​ Career Management
Mision -​ Performance Management
Practice-based Organizations in the -​ A globally-competitive Filipino I/O -​ Leadership and Executive Management
Philippines Psychologist spearheads, advocates and -​ Coaching and Mentoring
facilitates worker well-being and -​ Employee Engagement and Well Being
-​ Personnel Management Association of the
performance across the different levels -​ Rewards Management
Philippines (1956)- Renamed to People
through robust I/O psychological -​ Labor Relations
Management Association of the Philippines
interventions that are aligned with the -​ Organization Development Strategic
in 1986 (PMAP)
organization’s philosophy of doing business; Management
-​ The Philippine Society for Training and
-​ As practitioner, the Filipino I/O Psychologist -​ Culture Management
Development (PSTD ,1964)- Bringing
roles and accountabilities are demonstrated
together HR development and workplace
are demonstrated in policy formulation,
learning professionals
programs, practices and processes that lead
-​ Organization Development Practitioners Employment of I/O Psychologists
to sustainable business growth and social
Network- Formed in 2001-community of
transformation;
organization development
-​ Unwaveringly upholds the ethical standards
practitioners,consultants
of the profession for his/her good and the
society at large; and
-​ Intentionally advances knowledge and
Career tracks and Competencies of IO Psych practice of his/her profession by consistently
Practitioners adhering to professional standards of
competencies.
 Research in I/O Psychology Considerations in Conducting Research

Consulting Firms 1.​ Ideas, Hypothesis, and Theories

-​ help a wide variety of organizations become - The first step in conducting research is to
more productive by helping them select a Why Conduct Research?
decide what to research.
high quality and diverse workforce, designing 1.​ Answering Questions and Making Decisions- -​ Once a question has been asked, the
systems that will motivate employees while one of the characteristics of I/O psychology is next step is to form a hypothesis—an
treating them fairly, training employees, and its extensive use of research and statistics. educated prediction about the
ensuring that organizations treat applicants Although there are many reasons for this answer to a question
and employees in a legal and ethical manner. reliance on research, the most important is -​ This prediction is usually based
that research ultimately saves organizations on a theory, previous research,
money. or logic
Private and Public sectors 2.​ Research and Everyday Life- Research
confronts us on an almost daily basis, both at
-​ Perform similar duties as consultants, but
home and on the job. As a student, you will
they do so in very different environments. I/O
encounter research throughout this and
psychologists who work in the private sector
other courses. As a professional, you will
work for a single company such as IBM, -​
receive advertisements and sales pitches
Microsoft, and FedEx, whereas consultants 2.​ Literature Reviews
containing references to research supporting
work with many companies. I/O -​ Once a research idea has been
a particular product.
psychologists in the public sector work for a created, the next step is to search the
3.​ Common Sense Is Often Wrong- Often, there
local or state government or for the federal literature for similar research. This
is a temptation not to conduct research
government. search is important because if the
because the answer to a question is
“common sense.” ” Unfortunately, common question you are interested in
sense is not so common and is often wrong. answering has already been
Educational Requirements and Types of researched in studies, it is probably
Until the end of the fifteenth century, it was
Programs common sense that the world was flat and not necessary for you to conduct a
-Types of Graduate Programs that a person sailing toward the horizon new study
- terminal master’s degree programs would fall off the Earth. -​ Literature reviews can be conducted
- Master’s Programs in many ways, the most common of
- Doctoral Programs which are:
 -​ Journals: consist of articles written by The Research Method to Be Used -​ Debriefed or told the purpose
researchers directly reporting the of the experiment and be
-​ Experiments
results of a study given a chance to ask
-​ Quasi-experiments
-​ Bridge Publication: are designed to questions about her
-​ Archival Research
"bridge the gap" between academia participation.
-​ Surveys
and the applied world. Articles in
-​ Meta-Analysis
these publications are usually written Statistical Analysis
-​ Correlation Coefficients
by professors.
-​ What is the statistics that will be selected to
-​ Trade Magazines: contain articles
analyze the research data?
usually written by professional writers
Subject Samples -​ After all data have been collected, the results
who have developed expertise in a
are statistically analyzed.
given field. -​ Decisions also must be made regarding the
-​ Statistical analysis helps researchers
-​ Internet: the Internet contains a size, composition, and method of selecting
determine how confident they are that the
wealth of information on just about the subjects who will serve as the sample in a
results are real and did not occur by chance
every topic. study. Although it is nice to have a large
alone.
sample for any research study, a large sample
-​ Statistical analysis provides the answer by
size is not necessary if the experimenter can
determining the probability that our data
The Location of the Study choose a random sample and control for
were the result of chance.
many of the extraneous variables.
-​ In psychology, we use the .05 level of
Once a research idea has been created and a significance: If our analysis indicates
hypothesis formed, you must decide whether to that the probability that our data
Running the Study
conduct the study in the laboratory or in the field. resulted from chance is % or less, we
-​ Laboratory Research- One disadvantage of -​ When all of these decisions have been made, consider our results to be statistically
laboratory research is external validity, or it is finally time to run the study and collect significant.
generalizability of results to organizations in data. -​ Correlation: is a statistical procedure
the “real world.” -​ To ensure that data are collected in an that enables a researcher to
-​ Field Research- h has a problem opposite to unbiased fashion, it is important that all determine the relationship between
that of laboratory research. What field instructions to the subjects be stated in a two variables
research obviously gains in external validity it standardized fashion and at a level that is
loses in control of extraneous variables that understandable.
are not of interest to the researcher (internal -​ Once the subject is finished with her
validity). participation, she should be debriefed.
ETHICS IN INDUSTRIAL/ ORGANIZATIONAL Importance of Job Analysis understanding of the tasks performed and
the competencies needed to perform those
PSYCHOLOGY
tasks.
-​ Organizations and employees are faced with -​ A thorough job analysis is the foundation for -​ By identifying such requirements, it is
ethical dilemmas every day. almost all human resources activities. It is possible to select tests or develop
-​ Ethical dilemmas are ambiguous situations difficult to imagine how one could write a job interview questions that will
that require a personal judgment of what is description, select employees, evaluate determine whether a particular
right or wrong because there are no rules, performance, or conduct training programs applicant possesses the necessary
policies, or laws guiding such decisions. without knowing the tasks an employee knowledge, skills, and abilities to carry
-​ Individuals often rely on their morals and performs, the conditions under which they out the requirements of the job.
personal values, which often leads to are performed, and the competencies
different decisions by different people in needed to perform the tasks. A thorough job
TRAINING
similar situations. analysis provides such information.
-​ Type A Dilemma: there is a high level of -​ Identify Purpose of the job, task, -​ It is difficult to see how employees can be
uncertainty as to what is right or wrong. responsibility trained unless the requirements of the job
there appears to be no best solution, and are known. Job analyses yield lists of job
there are both positive and negative activities that can be systematically used to
consequences to a decision. create training programs.
WRITING JOB DESCRIPTIONS
-​ Type B Dilemma: also called rationalizing
dilemmas, the difference between right and -​ Is a brief, two- to five-page summary of the
wrong is much clearer than in a Type A tasks and job requirements found in the job
PERSONPOWER PLANNING
dilemma. Usually, individuals know what is analysis.
night but choose the solution that is most -​ A job analysis is the process of determining -​ One important but seldom employed use of
advantageous to themselves the work activities and requirements, and the job analysis is to determine worker mobility
job description is the written result of the job within an organization. That is, if individuals
analysis. are hired for a particular job, to what other
-​ Serves as the basis for many HR activities jobs can they expect to eventually be
promoted and become successful? Many
CHAPTER 2: JOB ANALYSIS AND organizations have a policy of promoting the
EVALUATION EMPLOYEE SELECTION person who performs the best in the job.
-​ it can result in the so-called Peter
-​ A thorough job analysis is the foundation for -​ It is difficult to imagine how an employee can Principle:
almost all human resources activities be selected unless there is a clear
 -​ promoting employees until administered and utilized, job-related requires a job analysis, but several important
they eventually reach their performance appraisals can serve as an guidelines and court cases mandate job analysis for
highest level of incompetence. excellent source of employee training and all practical purposes.
-​ For example, consider counseling. -​ Uniform Guidelines on Employee Selection
an employee who is the Procedures (1978)-the HR principles designed
best salesperson in the to ensure compliance with federal standards.
company. Even though -​ Several court cases have discussed the
JOB CLASSIFICATION
this person is known to concept of job relatedness.
be excellent in sales, it -​ Job analysis enables a human resources
is not known what type professional to classify jobs into groups based
of supervisor he or she on similarities in requirements and duties.
ORGANIZATIONAL ANALYSIS
will be. Promotion Job classification is useful for determining
solely on the basis of pay levels, transfers, and promotions.
sales performance does During the course of their work, job analysts often
not guarantee that the become aware of certain problems within an
JOB EVALUATION
individual will do well organization.
as a supervisor. -​ Job Analysis information can also be used to -​ For example, during a job analysis interview,
determine the worth of a job. an employee may indicate that she does not
know how she is evaluated or to whom she is
supposed to report.
PERFORMANCE APPAISAL
-​ The discovery of such lapses in organizational
JOB DESIGN
-​ Another important use of job analysis is the communication can then be used to correct
construction of a performance appraisal -​ Job analysis information can be used to problems and help an organization function
instrument. As in employee selection, the determine the optimal way in which a job better.
evaluation of employee performance must should be performed.
be job related. Employees are often evaluated
with forms that use such vague categories as
"dependability," "knowledge," and "initiative."
WRITING A GOOD JOB DESCRIPTION
COMPLIANCE WITH LEGAL
The use of specific job related categories A job description is a relatively short summary of a
leads to more accurate performance GUIDELINES
job and should be about two to five pages in length.
appraisals that are better accepted not only -​ It must describe a job in enough detail that
by employees but also by the courts (Werner decisions about activities such as selection
One legally acceptable way to directly determine job
& Bolino, 1997). In addition, when properly and training can be made.
relatedness is by job analysis. No law specifically
 -​ Should contain the following eight sections: Brief Summary placing them in a separate section makes
-​ (1) job title, their identification simpler.
-​ (2) brief summary, -​ The summary need be only a paragraph in -​ Information in this section is used primarily
-​ (3) work activities, length but should briefly describe the nature for employee selection and training. That is,
-​ (4) tools and equipment used, and purpose of the job. This summary can be an applicant can be asked if she can operate
-​ (5) work context, used in help-wanted advertisements, internal an adding machine, a computer, and a credit
-​ (6) performance standards, job postings, and company brochures. history machine.
-​ (7) compensation information, and
-​ (8) personal requirements.
Work Activities Job Context
Job Title
-​ The work-activities section lists the tasks and -​ This section should describe the
-​ A job title is important for several reasons. activities in which the worker is involved. environment in which the employee works
-​ An accurate title describes the nature of the -​ These tasks and activities should be and should mention:
job. organized into meaningful categories to -​ stress level, work schedule, physical
-​ An accurate title also aids in employee make the job description easy to read and demands, level of responsibility,
selection and recruitment. understand. The category labels are also temperature, number of coworkers,
-​ If the job title indicates the true convenient to use in the brief summary. degree of danger, and any other
nature of the job, potential applicants -​ Example: work activities performed by relevant information.
for a position will be better able to the bookkeeper are divided into seven -​ This information is especially important in
determine whether their skills and main areas: accounting, clerical, teller, providing applicants with disabilities with
experience match those required for share draft, collections, payroll, and information they can use to determine their
the job. financial operations. ability to perform a job under a particular set
-​ Job titles can also affect perceptions of the of circumstances.
status and worth of a job.
-​ job descriptions containing Tools and Equipment Used
gender-neutral titles such as
Work Performance
"administrative assistant" are -​ A section should be included that lists all the
evaluated as being worth more tools and equipment used to perform the -​ The job description should outline standards
money than ones containing titles work activities in the previous section. of performance.
with a female sex linkage such as -​ Even though tools and equipment may have -​ This section contains a relatively brief
"executive secretary". been mentioned in the activities section, description of how an employee's
 performance is evaluated and what work PREPARING FOR JOB ANALYSIS job crafting - the informal changes that
standards are expected of the employee employees make in their jobs.
-​ Prior to conducting a job analysis, several
decisions must be made that will influence
how it is conducted.
Compensation Information WHICH EMPLOYEES SHOULD PARTICIPATE?
-​ For organizations with relatively few people
-​ This section of the job description should
WHO WILL CONDUCT THE ANALYSIS? in each job, it is advisable to have all
contain information on the salary grade,
employees participate in the job analysis.
whether the position is exempt, and the -​ Job analysis is conducted by a trained
-​ In organizations in which many people
compensable factors used to determine individual in the human resources
perform the same job every person need not
salary. department, but it can also be conducted by
participate.
-​ The employee's actual salary or salary range job incumbents, supervisors, or outside
-​ Participants should be selected in as random
should not be listed on the job description. consultants.
a way as practical yet still be representative.
-​ Time is always an issue when using
The reason for this, according to research, is
supervisors or incumbents. Telling a
that employee differences in gender, race,
supervisor to "write job descriptions in
Job Competencies your spare time" is not likely to go
job performance level, experience, job
enjoyment, and personality can at times
-​ This section contains what are commonly over well.
result in slightly different job analysis
called job specifications or competencies. -​ Consultants are a good choice for
outcomes.
-​ These are the knowledge, skills, conducting a job analysis because
abilities, and other characteristics they are well trained and have
(KSAOs) (such as interest, personality, extensive experience. The main
drawback, though, is their expense. WHAT TYPE OF INFORMATION SHOULD BE
and training) that are necessary to be
successful on the job. Job College interns, graduates from 1/0 OBTAINED?
specifications are determined by psychology programs are interesting -​ An important decision concerns the level of
deciding what types of KSAOs are alternative to consultants. specificity.
needed to perform the tasks -​ That is, should the job analysis break a
identified in the job analysis. job down into very minute, specific
-​ These KSAOs can be determined HOW OFTEN SHOULD A JOB DESCRIPTION behaviors or should the job be
through a combination of logic, BE UPDATED? analyzed at a more general level.
research, and use of specific job -​ Although most jobs are
-​ job description should be updated if a job
analysis techniques. analyzed at levels somewhere
changes significantly. An interesting reason
between these two extremes,
that job descriptions change across time is
 there are times when the level always a good idea to gather -​ An excellent job analysis interview technique
of analysis will be closer to one information that has already been was developed by Ammerman (1965) and
end of the spectrum than the obtained. reported by Robinson (1981). The basic steps
other. -​ Interviewing Subject Matter Exports: for the Ammerman technique are: •
-​ A related decision addresses The most common method of -​ Convene a panel of experts that
the issue of formal versus conducting a job analysis is to includes representatives from all
informal requirements. interview subject matter experts levels of the organization.
-​ Formal requirements (SMEs). SMEs are people who are -​ Have the panel identify the objectives
for a secretary might knowledgeable about the job and and standards that are to be met by
include typing letters or include job incumbents, supervisors, the ideal incumbent.
filing memos. customers, and upper-level -​ Have the panel list the specific
-​ Informal requirements management. behaviors necessary to be attained.
might involve making -​ Prepare for the interview by necessary for each objective or
coffee or picking up the announcing the job analysis to standard
boss's children from the employees well in advance -​ Have the panel identify which of the
school. by selecting a quiet and behaviors from step 3 are "critical" to
private interview location. reaching the objective.
-​ Open the interview by -​ Have the panel rank-order the
establishing rapport, putting objectives on the basis of importance.
Identify Tasks Performed
the worker at ease, and -​ Observing Incumbents: Observations are
-​ The first step in conducting a job analysis is explaining the purpose of the useful job analysis methods, especially when
to identify the major job dimensions and the interview. used in conjunction with other methods
tasks performed for each dimension, the -​ Conduct the interview by such as interviews. During a job analysis
tools and equipment used to perform the asking open-ended questions, observation, the job analyst observes
tasks, and the conditions under which the using easy-to-understand incumbents performing their jobs in the
tasks are performed. vocabulary, and allowing work setting.
-​ This information is usually gathered by sufficient time for the -​ Job Participation: Is especially effective
obtaining previous information on the job, employee to talk and answer because it is easier to understand every
interviewing job incumbents, observing questions. Avoid being aspect of a job once you have done it
performance, or actually performing the job condescending and yourself. The technique is easily used when
itself. disagreeing with the the analyst has previously performed the job
-​ Gathering Existing Information: Prior incumbent.
to interviewing incumbents, it is
Write Task Statements of different tasks, acquiring
knowledge, or developing a skill.
-​ Write the task statements that will be used in Rate Task Statements -​ Other characteristics include such
the task inventory and included in the job personal factors as personality,
-​ Once the task statements have been written
description. willingness, interest, and motivation
(usually including some 200 tasks), the next
and such tangible factors as licenses,
step is to conduct a task analysis-using a
degrees, and years of experience.
group of SMEs to rate each task statement on
-​ Currently, KSAOs are commonly referred to as
the frequency and the importance or
competencies (Schippmann et al., 2000s). In
criticality of the task.
the old days, KSAOs were called job
specifications (job specs).

Here are some characteristics of well-written Selecting Tests to Tap KSAOS

task statements:
-​ Once the important KSAOs have been
-​ One action should be done to one object. If identified, the next step is to determine the
the statement includes the words "and", it best methods to tap the KSAOs needed at
may have more than one action or object. the time of hire. These methods will be used
-​ Task statements should be written at a level to select new employees and include such
that can be read and understood by a person methods as interviews, work samples, ability
with the same reading ability as the typical tests, personality tests, reference checks,
job incumbent. integrity tests, biodata, and assessment
-​ All task statements should be written in the centers.
same tense. -​ The average ratings obtained from Step 4 will
-​ The task statement should include the tools Determine Essential KSAOS be used to weight test scores. That is, a test
and equipment used to complete the task. tapping a KSAO with a rating of 2.9 should
-​ Identify the KSAOs needed to perform the
-​ Task statements should not be receive more weight than a test tapping a
tasks.
competencies. KSAO with a rating of 2.5.
-​ Knowledge is a body of information
-​ Task statements should not be a policy.
needed to perform a task.
-​ The statement should make sense by itself.
-​ A skill is the proficiency to perform a
-​ For those activities that involve decision
learned task. • An ability is a basic
making, the level of authority should be
capacity for performing a wide range
indicated.
USING OTHER JOB ANALYSIS METHODS variables such as work schedule, pay, -​ Jobs analyzed by FJA are broken
and responsibility. down into the percentage of time the
-​ To save time, increase structure, or
incumbent spends on three functions:
supplement information obtained from
data (information and ideas), people
interviews, observations, and task analysis, Methods providing general information
(clients, customers, and coworkers),
other job analysis methods are available. about worker ACTIVITIES: JSP & JEI and things (machines, tools, and
These methods tend to provide information
-​ Job Structured Profile (JSP): A revised equipment). An analyst is given 100
on one of four specific factors that are
version of the PAQ was developed by Patrick points to allot to the three functions.
commonly included in a job description:
and Moore (1985). The major changes in the The points are usually assigned in
worker activities, tools and equipment used,
revision, which is called the Job Structure multiples of 5, with each function
work environment, and competencies.
Profile (JSP), include item content and style, receiving a minimum of 5 points
new items to increase the discriminatory

Methods providing general information power of the intellectual and Methods providing information about
decision-making dimensions, and an
about worker activities: PAQ tools and equipments: JCI
emphasis on having a job analyst, rather than
the incumbent, use the JSP.
-​ Several questionnaires have been developed
-​ Job Elements Inventory (JEI): Another -​ Job Components Inventory (JCI): To take
to analyze jobs at a more general level. This
instrument designed as an alternative to the advantage of the PAQ's strengths while
general analysis saves time and money, and
PAQ is JEI by Cornelius and Hakel (1978). The avoiding some of its problems, Banks,
allows jobs to be more easily compared with
JEl contains 153 items and has a readability Jackson, Stafford, and Warr (1983) developed
one another than is the case if interviews,
level appropriate for an employee with only a the Job Components Inventory (JCI) for use
observations, job participation, or task
tenth-grade education. in England.
analysis is used.
-​ The JCI consists of more than 400
-​ Position Analysis Questionnaire (PAQ):
questions covering five major
is a structured instrument developed
categories: tools and equipment,
at Purdue University by McCormick, Methods providing general information
perceptual and physical
Jeanneret, and Mecham (1972), about worker activities: FJA requirements, mathematical
containing items organized into six
-​ Functional Job Analysis (FJA): was designed requirements, communication
main dimensions: information input,
by Fine (1955) as a quick method that could requirements, and decision making
mental processes, work output,
be used by the federal government to and responsibility. It is the only job
relationships with other persons, job
analyze and compare thousands of jobs. analysis method containing a detailed
context, and other job-related
section on tools and equipment.
Methods providing information about organizational, occupational, and individual. -​ Job Components Inventory (JCI): In addition
As a result, O*NET has incorporated the types to information about tools and equipment
the work environment: AET of information obtained in many job analysis used on the job, which were discussed earlier,
-​ The job analyst still needs information about techniques. the JCI also provides information about the
the conditions under which the activities are perceptual, physical, mathematical,
performed. • To obtain information about the communication, decision making, and
responsibility skills needed to perform the
work environment, a job analyst might use Methods providing information about
the AET, an acronym for job.
"Arbeitswissenschaftliches
competencies: CIT -​ Threshold Traits Analysis (TTA): An approach
Erhebungsverfahren zur Tatigkeitsanalyse" similar to the JCI is the Threshold Traits
which means ergonomic job analysis -​ Critical Incident Technique (CIT): was Analysis (TTA), which was developed by
procedure. developed and first used by John Flanagan Lopez, Kesselman, and Lopez (1981). This
-​ Ergonomic: that the instrument is and his students at the University of method is available only by hiring a particular
primarily concerned with the Pittsburgh in the late 1940s and early 1950s. consulting firm (Lopez and Associates), but
relationship between the worker and The CIT is used to discover actual incidents of its unique style makes it worthy of
work objects. job behavior that make the difference mentioning. The TTA questionnaire's items
between a job's successful or unsuccessful. identify the traits that are necessary for the
-​ The CIT is an excellent addition to a job successful performance of a job. The items
analysis because the actual critical incidents cover five trait categories: physical, mental,
Methods providing information about learned, motivational, and social.
can be used for future activities such as
competencies: o*net performance appraisal and training.
-​ The CIT's greatest drawback is that its
-​ Occupational Information Network (O*NET): emphasis on the difference between Methods providing information about
excellent and poor performance ignores
is a national job analysis system created by competencies: f-jas, jai
the federal government to replace the routine duties. Thus, the CIT cannot be used
Dictionary of Occupational Titles (DOT) which as the sole method of job analysis. -​ Fleishman Job Analysis Survey (FJAS): Based
had been in use since the 1930s (Peterson et on more than 30 years of research
al., 2001). (Fleishman & Reilly, 1992a), the Fleishman Job
Analysis Survey (F-JAS) requires incumbents
-​ O*NET is a major advancement in Methods providing information about
understanding the nature of work, in large or job analysts to view a series of abilities and
part because its developers understood that
competencies: JCI, TTA to rate the level of ability needed to perform
jobs can be viewed at four levels: economic, the job. These ratings are performed for each
of the abilities and knowledge.
 -​ The Job Adaptability Inventory (JAI): is a 2. The CIT takes the least amount of job analyst paid accordingly. The difficulty in this process,
132-item inventory developed by Pulakos, training and task analysis the most. of course, is determining the worth of each
Arad, Donovan, and Plamondon (2002) that 3. The PAQ is the least costly method and the CIT the job. Because a complete discussion of all job
taps the extent to which a job incumbent most. evaluation methods is beyond the scope of
needs to adapt to situations on the job 4. The PAQ takes the least amount of time to this text, we will stick to a discussion of the
complete and task analysis the most. most commonly used method.
5. Task analysis has the highest-quality results and
TTA the lowest.
Methods providing information about
6. Task analysis reports are the longest and Determining Compensable Job Factors
competencies: PPRF job-elements reports the shortest.
-​ The first step in evaluating a job is to decide
-​ The Personality-Related Position 7. The CIT has been rated the most useful and the
what factors differentiate the relative worth
Requirements Form (PPRF): was developed PAQ the least.
of jobs. Possible compensable job factors
by Raymark, Schmit, and Guion (1997) to 8. Task analysis gives the best overall job picture and
include:
identify the personality types needed to the PAQ the worst.
-​ Level of responsibility
perform job-related tasks. The PPRF consists -​ Physical demands • Mental demands
of 107 items tapping 12 personality -​ Education requirements
dimensions that fall under the "Big" JOB EVALUATION -​ Training and experience requirements
personality dimensions (openness to -​ Working conditions
experience, conscientiousness, extroversion, -​ Once a job analysis has been completed and -​ The philosophical perspectives of the job
agreeableness, and emotional stability). a thorough job description written, it is evaluator can affect these factors
-​ Though more research is needed, the PPRF is important to determine how much
reliable and shows promise as a useful job employees in a position should be paid. This
analysis instrument for identifying the process of determining a job's worth is called Determining the Levels for Each
personality traits necessary to perform a job. job evaluation. A job evaluation is typically
Compensable Factors
done in two stages: determining internal pay
equity and determining external pay equity. -​ Once the compensable factors have been
selected, the next step is to determine the
Evaluation of methods levels for each factor. For a factor such as
education, the levels are easy to determine
Survey research by Levine, Ash, and their colleagues DETERMINING INTERNAL PAY EQUITY
(e.g., high school diploma, associate's degree,
(Levine, Ash, & Bennett, Levine, Ash, Hall, & Sistrunk, -​ Internal pay equity involves comparing jobs bachelor's degree). For factors such as
1983) has found the following: within an organization to ensure that the responsibility, a considerable amount of time
1. The PAQ is seen as the most standardized people in jobs worth the most money are
technique and the CIT the least standardized.
 and discussion may be required to determine DETERMINING A SEX AND RACE EQUITY • Grievance System is a process in which an
the levels. employee files a complaint with the organization
-​ Pay audits should also be conducted to
and a person or committee within the organization
ensure that employees are not paid
makes a decision regarding the complaint
differently on the basis of gender or race.
DETERMINING EXTERNAL PAY EQUITY -​ The Office of Federal Contract Compliance
-​ With external equity, the worth of a job is Programs (OFCCP) monitors these analyses
determined by comparing the job to the to ensure that they are conducted and that Bureau Of Local Employment
external market (other organizations). contractors are not discriminating on the • is a ‘bureau’ under the Department of Labor and
External equity is important if an basis of pay. Employment which aims to improve the local labor
organization is to attract and retain -​ Two types of audits should be conducted: and employment situation in the Philippines.
employees. In other words, it must be -​ one that looks at pay rates of
competitive with the compensation plans of employees within positions with • Its mission is to promote full employment by
other organizations. identical duties (equal pay for equal facilitating access of Filipino jobseekers to local
work) and looks at pay rates of employment opportunities through policy research,
employees in jobs of similar worth standards setting, strategy development, labor
Determining External Equity and responsibility (comparable worth). market analysis and provision of technical assistance
-​ conducted by comparing jobs with to regional implementers in support of employment
-​ To determine external equity, organizations
similar worth (salary grade) and service operations.
use salary surveys.
responsibility (job family).
-​ Sent to other organizations, these surveys ask
how much an organization pays its
employees in various positions. The Legal Process
-​ An organization can either construct and
send out its own survey or use the results of • Mediation is a method of resolving conflicts in
surveys conducted by trade groups, an which a neutral third party is asked to help the two
Chapter 3: LEGAL ISSUES IN EMPLOYMENT
option that many organizations choose. parties reach an agreement
SELECTION • Arbitration resolves conflict in which a neutral third
-​ Aside from direct compensation, employees
are also compensated in other ways, such as party is asked to choose which side is correct
pay for time not worked (e.g. holidays, sick • Equal Employment Opportunity Commission • Binding Arbitration will ask the third party to
days), deferred income (e.g. social security (EEOC) is a branch of department of labor charged choose which side is correct but in which either
and pension plans), health protection, etc. to investigate and prosecute complaints of party is allowed may appeal the decision
employment discrimination
• Non-Binding Arbitration will ask the third party to Pregnancy Discrimination Act 1978 Religion
choose which side is correct but in which either
party may appeal the decision protects the rights of pregnant women it is illegal to use an individual's religion as a factor in
an employment decision unless the nature of the
job is religious. The Civil Rights Acts also require
Race
organizations to make accommodations for religious
Determining Whether An Employment Decision Is on the basis of the Civil Rights Acts of 1866, 1964 and beliefs unless to do so would be an undue hardship
Legal 1991, as well as the Fifth and Fourteenth
Amendments to the U.S. Constitution, it is illegal to
discriminate against a person.
Case Law Age
is the interpretation of a law by a court through a R.A. No. 10911 (2016), "An Act Prohibiting
Color
verdict in a trial, setting precedent for subsequent Discrimination Against Any Individual in
court decision as protected by the Civil Rights Acts is color. Though Employment on Account of Age and Providing
commonly used as a synonym for race, the reference Penalties Therefore," or the "Anti-Age Discrimination
to color protects individuals against discrimination in Employment Act."
Protected Class
based specifically on variations in skin color.
is any group of people for whom protective -for uniformed personnel it's okay na pili lang i-hire
legislation has been passed (pulis, military, fireman, etc.)
Sex
The Civil Rights Acts, as well as the Equal Pay Act of • Age - The Age Discrimination in Employment Act
Age Discrimination in Employment Act (ADEA) and its later amendments forbid an
1963, prohibit discrimination based on sex. gender
(ADEA) bias in hiring (use preferably NOT only) employer or union from discriminating against an
individual over the age of 40.
forbids discrimination against an individual who is
• In part, this act was designed to protect older
over the age of 40 National Origin
workers from employment practices aimed at
is protected under the Civil Rights Acts. Note that reducing costs by firing older workers with higher
Vocational Rehabilitation Act of 1973 Hispanics are protected under national origin, not salaries and replacing them with lower-paid
race. Claims of discrimination based on national younger workers.
prohibits discrimination against the physically and
origin have increased greatly over the past few years.
mentally handicapped
One of the most common complaints is about
"English only" or "understandable English" speaking
requirements.
DOES THE EMPLOYMENT PRACTICE blindness, hypertension, depression, temporary are illegal unless the employer can demonstrate that
illnesses such as pneumonia, sprained ankles, being the requirement is a bona fide occupational
DIRECTLY REFER TO A MEMBER OF A
20 pounds overweight, carpal tunnel syndrome, and qualification (BFOQ).
FEDERALLY PROTECTED CLASS? wearing glasses. • Bona Fide Occupational Qualification (BFOQ) is a
• The second part of the definition was designed to selection requirement that is necessary for the
• The first step in determining the legality of an protect people who were once disabled but no performance of job-related duties and for which
employment practice is to decide whether the longer are. Examples include recovering alcoholics, there is no substitute
practice directly refers to a member of a protected cancer patients in remission, people who spent time
class. in a mental health facility, and drug addicts who example:
• Protected class Any group of people for whom have successfully completed treatment. • If a job can be performed only by a person in a
protective legislation has been passed. (race or • The final part of the definition protects individuals particular class, the requirement is considered a
color, sex (including pregnancy), age (if 40 or who don't have a disability but are regarded or BFOQ. Actually, some jobs can be performed only by
older), national origin, religion, disability, genetic treated as if they do. a person of a particular gender; for instance, only a
information) Examples of people protected under this clause are female can be a wet nurse (a woman who
• In Canada, there are federally protected classes; those with facial scarring or severe burns. breastfeeds another woman's baby), and only a male
each province makes its own employment law. Thus, can be a sperm donor.
the protected classes. listed for Canada are those Pregnancy
protected by law in all provinces and territories. • Pregnancy Discrimination Act A 1978 federal law
protecting the rights of pregnant women.
• The Pregnancy Discrimination Act states that
DOES THE REQUIREMENT HAVE ADVERSE
Disability
"women affected by pregnancy, childbirth, or related IMPACT ON MEMBERS OF A PROTECTED
• Discrimination against people with disabilities by
the federal government is forbidden by the medical conditions shall be treated the same for all CLASS?
Vocational Rehabilitation Act of 1973, and employment related purposes, including receipt of
• Adverse Impact is an employment practice that
discrimination against the disabled by any other benefit programs, as other persons not so affected
results in members of a protected class being
employer with 15 or more employees is forbidden by but similar in their ability or inability to work."
negatively affected at a higher rate than members
the Americans with Disabilities Act (ADA). of the majority class. Adverse impact is usually
• Republic Act No. 10524 - An Act Expanding the determined by the four-fifth rule
Positions Reserved for Persons with Disability, BONA FIDE OCCUPATIONAL • Adverse impact means that a particular
Amending for the Purpose Republic Act No. 7277, as
QUALIFICATION (BFOQ) employment decision results in negative
Amended, Otherwise Known as the Magna Carta for consequences more often for members of one race,
Persons with Disability • Employment decisions based on membership in a sex, or national origin than for members of another
• Conditions not considered by the courts to be protected class (e.g., "We will not hire females race, sex, or national origin.
disabilities have included fear of heights, color because they are not strong enough to do the job")
>For example, an employee selection requirement Types of Harassment Bureau of Local Employment
of a college degree would lead to a lower
• Quid Pro Quo is a type of sexual harassment in
percentage of African American applicants being SECTION 1 R.A. 7877 "ANTI-SEXUAL HARASSMENT
which the granting sexual favors is tied to an
hired compared with White applicants. ACT OF 1995"
employment decision.
-AN ACT DECLARING SEXUAL HARASSMENT
• Hostile Environment is characterized by a pattern
UNLAWFUL IN THE EMPLOYMENT, EDUCATION OR
of unwanted conduct related to gender that
TRAINING ENVIRONMENT, AND FOR OTHER
FOUR AND FIFTH RULE interferes with an individual's work performance
PURPOSES
(display of demeaning posters, signs or cartoons)
• Four and Fifth Rule is when the selection ratio for
one group is less than 80% of the selection ratio for
another adverse impact is said to exist
AFFIRMATIVE ACTION
Organizational Liability for Sexual Affirmative Action Strategies
Harassment
CAN THE EMPLOYER PROVE THAT THE
REQUIREMENT IS JOB RELATED?
Monitoring Hiring and Promotion
• Job Related is the extent to which a test or
measure taps knowledge, skill, ability, behavior or
Preventing Sexual Harassment Statistics
other characteristics needed to successfully perform • To avoid liability, the organization must have a
- Organizations must write affirmative action plans
job. well-conceived policy regarding sexual harassment,
in which they monitor adverse impact as well as
must have communicated that policy to its
compare the percentages of women and minorities
employees
in the organization with the percentages of women
Harassment Preventing Sexually Harassing Behavior
and minorities in the qualified workforce.

Harassment is not an issue limited to the United • If an employee complains of sexual harassment, it
States. Though the United States has taken the lead is essential that the organization investigate the
in preventing and punishing harassment, Canada,
Intentional Recruitment of Minority
complaint quickly and then promptly take any
the United Kingdom, Australia, New Zealand, Ireland, necessary action to rectify the situation and punish Applicants
and the European Union also have laws prohibiting the offender. To reduce an organization's liability for - Efforts might include advertising in magazines and
sexual harassment. sexual harassment newspapers with a minority communities, or paying
(Gutman, 2005).
current employees a bonus for recruiting a member
of a protected class.
 goals and plans for overcoming such under Consequences
representations.
• Affirmative action programs are an important tool
Identification and Removal of in ensuring equal opportunity, they can result in
Employment Practices against Minority Involuntary: Court Order some negative consequences for people hired or
Applicants and Employees • When a court finds a public agency such as a police
promoted as the result of affirmative action (Kravitz
et al., 1997).
• A third affirmative action strategy is to identify and or fire department guilty of not hiring or promoting
• The Heilman and Kravitz studies suggest that
remove practices that might discourage minority enough members of a protected class, it can order
affirmative action programs can have negative
applicants from applying to an organization or the agency to begin an affirmative action program.
consequences for their recipients. Affirmative action
minority employees from being promoted within an programs may also have negative consequences for
organization. Such practices might involve company an organization. Silva and Jacobs (1993) found that
policy, supervisor attitudes, or the way in which an Voluntary: Consent Decree hiring minorities above their level of representation
organization is decorated • If a discrimination complaint has been filed with a in the applicant pool (affirmative action) resulted in
court, a public agency can decreased organizational performance.
"voluntarily" agree to an affirmative action plan
Preferential Hiring and Promotion of rather than have a plan forced on it by the court.
With a consent decree, the agency agrees that it has
Minorities PRIVACY ISSUES
not hired or promoted enough members of a
• This is certainly the most controversial and protected class and is willing to make changes. • An employment practice is illegal if it results in
misunderstood of the affirmative action strategies. adverse impact and is not job related. An
Under this strategy, minority applicants will be given employment practice can also be illegal if it
preference over an equally qualified nonminority Voluntary: Desire to Be a Good Citizen unnecessarily violates an individual's right to privacy
applicant. It is important to note that in no way does • Rather than wait for a discrimination complaint,
affirmative action require an employer to hire an some organizations develop affirmative action
unqualified minority over a qualified non minority programs out of a desire to be good citizens. That is, Data Privacy Act of 2012 Republic Act
they want to voluntarily ensure that their 10173
employment practices are fair to all groups of
Involuntary: Government Regulation people.
• These mandatory affirmative action plans typically
PERSONAS DEFINED IN THE LAW
involve analyses of all major job categories and -Data Subject Individual whose personal information
indicate which categories have under is being processed.
representations of the protected classes, as well as
-Personal Information Controller Person or to be HBV-infected from any discrimination by occupations are more likely to be associated with
organization who controls collection, holding, employers or co-workers. Information and education workplace substance abuse.
processing, or use of personal information. Including programmes should be implemented that will raise
those who instruct others to do so. awareness and reduce stigma and discrimination Studies indicate that rates of drug use are higher
-Personal Information Processor Natural or juridical associated with Hepatitis B. People will know how among workers who:
person to whom a personal information controller Hepatitis B is transmitted, prevented and treated. 1. Work in high stress jobs managers, sales staff,
may outsource the processing of personal data They will also understand that HBV-infected physicians, lawyers, bartenders, entertainers;
pertaining to a data subject. individuals must be supported in facing their health 2. Work in unsupervised situations - long distance
and emotional difficulties and should not be feared. drivers, traveling salespersons;
3. Work under extreme conditions - army personnel,
mining industry workers;
OTHER CONSIDERATIONS IN THE 4. Work round the clock across different time zones -
PHILIPPINE SETTING DEPARTMENT ORDER NO. 53-03 Series of Call centers and information technology services.
2003
What does the law say about discrimination in -All professions are subject to workplace abuse of
the workplace? substances but some jobs are more vulnerable than
GUIDELINES FOR THE
others. However, no sector is completely free of
The law provides that discrimination of people living IMPLEMENTATION OF DRUG-FREE workplace problems related to drugs.
with HIV and AIDS during pre- employment to
WORKPLACE POLICIES AND -Working conditions that can increase the likelihood
post-employment based on actual, perceived or
PROGRAMS FOR THE PRIVATE of workers becoming addicted need to be identified
suspected HIV status is prohibited. This includes
and appropriate measures be taken.
hiring, promotion, assignment or termination from SECTOR
work. Article VII, Section 35

HEPATITIS B AND THE WORKPLACE SUBSTANCE ABUSE AS A WORKPLACE CHAPTER 4: EMPLOYEE SELECTION:
ISSUE RECRUITING AND INTERVIEWING
What can my company do to eliminate Substance use and abuse occur in virtually all
discrimination against Hepatitis B positive branches of industry and among all types of people;
worker? however, studies have shown that men, young Recruiting and interviewing- integral components of
workers, and workers in certain sectors or employee selection
Companies must implement policies that protect
workers who are HBV- infected or who are believed
 -​ Provide valuable insights and strategies to -​ External recruitment: to hire MEDIA ADVERTISEMENTS
enhance these processes someone from outside the
-​ By applying principles such as job analysis, organization.
structured interviews, etc. -​ If no qualified applicants are found, the NEWSPAPER ADS
organizations then advertise outside.
-​ Running ads in periodicals such as local
-​ To enhance employee morale and
newspapers or professional journals is a
motivation, it is often good to give current
JOB ANALYSIS employees an advantage in obtaining new
common method of recruiting employees.
-​ Newspaper advertisements typically ask the
-​ Job analysis is the cornerstone of personnel internal positions.
applicant to respond in one of four ways:
selection. -​ Internal promotions can be a great source of
-​ Respond by calling: when an
-​ Unless a complete and accurate picture of a motivation, but if an organization always
organization wants to either quickly
job is obtained, it is virtually impossible to promotes employees from within, it runs the
screen applicants or hear an
select excellent employees. risk of having a stale workforce that is devoid
applicant's phone voice.
-​ Thus, during the job analysis process, in of the many ideas that new employees bring
-​ Apply-in-person ads: when they don't
addition to identifying the important tasks with them from their previous employment
want their phones tied up by
and duties, it is essential to identify the settings.
applicants calling.
knowledge, skills, and abilities needed to -​ A balance between promoting current
-​ Send-resume ads: when the
perform the job. employees and hiring outside applicants is
organization expects a large response
-​ Therefore, the methods used to select needed.
and does not have the resources to
employees should tie in directly with the speak with thousands of applicants.
results of the job analysis. -​ Blind box: directs applicants to send a
STEPS IN SELECTING EMPLOYEES résumé to a blind box.
-​ THESE 4 CONCEPTS ARE STILL
1.​ Job Analysis
RECRUITMENT BEING USED BUT
2.​ Selection of Testing Methods
NEWSPAPER ADS NO
3.​ Test Validation
-​ Attracting people with the right
4.​ Recruitment
qualifications (as determined in the job
5.​ Screening
analysis) to apply for the job.
6.​ Testing WRITING RECRUITMENT ADS
-​ Internal recruitment: to promote
7.​ Selecting
someone from within the -​ Display the company emblem
8.​ Hiring/Rejecting
organization. -​ Use creative illustrations attract the greatest
number of applicants
 -​ Include the salary range • Write the company POINT OF PURCHASE METHODS Outside Recruiters
phone number
-​ More than 75% of organizations use such
-​ Include a realistic information about the job -​ The point-of-purchase method of
outside recruiting sources as private
-​ Write detailed descriptions of the job and recruitment is based on the same "POP"
employment agencies, public employment
organization (point-of-purchase) advertising principles
agencies, and executive search firms. Private
-​ Provide applicants with an idea of how well used to market products to consumers.
employment agencies and executive search
they would fit into an organization -​ In employee recruitment, job vacancy notices
firms are designed to make a profit from
-​ Contain the selection process are posted in places where customers or
recruitment activities, whereas public
-​ For you to be able to know what kind of current employees are likely to see them:
employment agencies are operated by state
recruitment ad that you will be doing, dapat store windows, bulletin boards, restaurant
and local public agencies and are strictly
nagkaroon ng job analysis . placemats, and the sides of trucks.
nonprofit.
-​ as a result of job analysis; job description

RECRUITERS
EMPLOYEE AGENCIES
ELECTRONIC MEDIA
Campus Recruiters -​ They charge either the company or the
-​ Includes use of television radio stations to
applicant when the applicant takes the job.
advertise job openings. -​ Many organizations send recruiters to college
-​ The amount charged usually ranges from 10%
campuses to answer questions about
to 30% of the applicant's first-year salary.
themselves and interview students for
-​ Are especially useful if an HR department is
available positions. Not surprisingly, the
SITUATION-WANTED ADS overloaded with work or if an organization
behavior and attitude of recruiters can
does not have an individual with the skills
-​ Situation-wanted ads are placed by the greatly influence applicants' decisions to
and experience needed to select employees
applicant rather than by organizations. Some accept jobs that are offered.
properly.
list extensive qualifications, some give -​ An increasing number of colleges are
-​ The disadvantage of employment agencies is
applicants' names, and some are generally organizing virtual job fairs, in which their
that a company loses some control over its
more creative than others. students and alumni can use the Web to
recruitment process and may end up with
-​ Job seeker ads or candidate ads "visit" with recruiters from hundreds of
undesirable applicants.
-​ Showcase/market their skills organizations at one time.

EXECUTIVE SEARCH FIRMS

-​ Better known as "head hunters,"
 -​ The jobs they represent tend to be PUBLIC EMPLOYMENT AGENCIES DIRECT MAIL
higher-paying, non-entry-level positions such
as executives, engineers, and computer -​ Designed primarily to help the unemployed -​ Several organizations have used it to recruit
programmers. find work, but they often offer services such applicants, especially those who are not
-​ Reputable executive search firms always as career advisement and résumé actively job hunting.
charge their fees to organizations rather than preparation. -​ With direct-mail recruitment, an employer
to applicants. -​ Can be of great value in filling blue-collar and typically obtains a mailing list and sends
-​ Fees charged by executive search firms tend clerical positions. help- wanted letters or brochures to people
to be about 10%- 30 % of the applicant's -​ There is no cost involved in hiring applicants. through the mail.
first-year salary. -​ Often government programs are also
-​ Like employment agencies, they tend to available that will help pay training costs.
exert tremendous pressure on applicants to -​ Many public employment agencies have
INTERNET
take jobs that are offered. made finding jobs easier by placing kiosks in
locations such as shopping malls and public -​ The Internet continues to be a fast-growing
buildings. source of recruitment. With employer-
based websites, an organization lists
EMPLOYMENT AGENCIES
available job openings and provides
-​ They charge either the company or the information about itself and the minimum
EMPLOYEE REFERRALS
applicant when the applicant takes the job. requirements needed to apply to a particular
-​ Specific commission per head na na-hire -​ Another way to recruit is by employee job. Internet recruiters continue to grow and
-​ Are especially useful if an HR department is referral. have an impact on hiring. Internet recruiting
overloaded with work or if an organization -​ Current employees recommend reaches more people over a larger
does not have an individual with the skills family members and friends for geographic area than do newspaper ads.
and experience needed to select employees specific job openings.
properly. -​ In a survey of 450 HR professionals, employee
-​ The disadvantage of employment agencies is referrals were rated as the most effective
JOB FAIRS
that a company loses some control over its recruitment method (SHRM, 2007). Some
recruitment process and may end up with organizations are so convinced of the -​ Job fairs are used by 70% of organizations
undesirable applicants. attractiveness of this method that they (SHRM, 2001b) and are designed to provide
provide financial incentives to employees information in a personal fashion to as many
who recommend applicants who are hired. applicants as possible.
-​ Job fairs are typically conducted in one of
three ways. First, many types of organizations
 have booths at the same location. The -​ Cub Foods in Illinois hires people with -​ Number of applicants
second type of job fair has many intellectual disabilities to serve as -​ Cost per applicant
organizations in the same field in one baggers in their grocery stores. -​ Number of qualified applicants
location. The third approach to a job fair is for -​ Cub Foods in Illinois hires people with -​ Cost per qualified applicant
an organization to hold its own. intellectual disabilities to serve as -​ Number of successful employees
baggers in their grocery stores generated by each recruitment
source (perhaps the best one)
-​ Number of minorities and women
INCENTIVES
that applied for the job and were
RECRUITING "PASSIVE” APPLICANTS
-​ When unemployment rates are low, hired.
organizations have to take extra measures to -​ Most of the recruiting methods previously
recruit employees. discussed in this chapter deal with applicants
-​ One of these measures is to offer incentives who are actively seeking work.
REALISTIC JOB INTERVIEW
for employees to accept jobs with an -​ Because "the best" employees are already
organization. employed, recruiters try to find ways to -​ RJPs involve giving an applicant an honest
-​ Though these incentives often come in the identify this hidden talent and then convince assessment of a job. The logic behind RJPs is
form of a financial signing bonus, other types the person to apply for a job with their that even though telling the truth scares
of incentives are increasing in popularity. company. away many applicants (Saks, Wiesner, &
-​ One such approach is for recruiters to build Summers, 1996), especially the most qualified
relationships with professional associations ones (Bretz & Judge, 1988), the ones who stay
for each of the fields in which they recruit. will not be surprised about the job. Because
NON TRADITIONAL POPULATIONS
-​ An increasingly common method to find they know what to expect, informed
-​ When traditional recruitment methods are these passive applicants is to surf the Web. applicants will tend to stay on the job longer
unsuccessful, many organizations look for than applicants who did not understand the
potential applicants from nontraditional nature of the job.
populations.
-​ Examples: Manpower Incorporated, in
EVALUATING THE EFFECTIVENESS OF
Chandler, Arizona, the Chicago Police RECRUITMENT STRATEGIES
EXPECTING LOWERING PROCEDURE
Department, and the Hackensack,
-​ Considering the number of potential
New Jersey, Police Department, -​ A variation of the RJP is a technique called
recruitment sources, it is important to
formed partnerships with local an expectation-lowering procedure (ELP).
determine which source is the best to use.
churches that resulted in successful Unlike an RJP, which focuses on a particular
-​ Such an evaluation can be conducted in
hires. job, an ELP lowers an applicant's
several ways:
 expectations about work and expectations in which all applicants are asked the same -​ Can add predictive power to the use
general. questions, and the structure of the system of cognitive ability test.
used to score the answers. . The research is -​ Though structured interviews result in
clear that highly structured interviews are less adverse impact, they are not
more reliable and valid than interviews with completely immune from potential
EFFECTIVE EMPLOYEE SELECTION
less structure. discrimination
TECHNIQUES -​ applicants perceive structured
-​ If the recruitment process was successful, an STYLE interviews to be more difficult.
organization will have several applicants from -​ The style of an interview is determined by the
which to choose. number of interviewees and number of
-​ At this point, many techniques can be used interviewers. one-on-one, serial interviews, PROBLEMS WITH STRUCTURED
to select the best person from this pool of panel interviews, return interviews, group INTERVIEWS
applicants interviews and serial-panel-group interviews
-​ Effective employee selection systems share are some interview styles. -​ Researchers have investigated this question
three characteristics: for several years and have identified eight
-​ They are valid, reduce the chance of a MEDIUM factors that contribute to the poor reliability
legal challenge, and are cost-effective. and validity of the unstructured interview:
-​ Interviews also differ in the extent to which
-​ A valid selection test is one -​ Poor Intuitive Ability: Interviewers often base
they are done in person. •Face-to-face
that is based on a job analysis their hiring decisions on "gut reactions," or
interview, telephone interviews video
(content validity), predicts intuition. However, people are not good at
conference interviews and written interviews
work-related behavior using intuition to predict behavior.
are some mediums to which interviews are
(criterion validity), and -​ Lack of Job Relatedness: the most common
done.
measures the construct it questions asked by interviewers are not
purports to measure related to any particular job.
(construct validity). -​ Primacy Effects: first impressions in the
ADVANTAGES OF STRUCTURED interview are mixed.

EMPLOYMENT INTERVIEWS INTERVIEWS -​ Contrast Effects: the interview performance

of one applicant may affect the interview
-​ Interviews high in structure are more valid score given to the next applicant.
STRUCTURE than unstructured interviews. -​ Negative-Information Bias: occur only when
-​ This is true even when the interview is interviewers aren't aware of job
-​ The structure of an interview is determined
conducted over the phone. requirements.
by the source of the questions, the extent to
 -​ Interviewer-Interviewee Similarity: an -​ Some of the KSAOs can be CREATING A SCORING KEY FOR
interviewee will receive a higher score if they appropriately measured in an
are similar to the interviewer in terms of interview; others will need to be
INTERVIEW ANSWERS
personality, gender or race. tapped through such methods as -​ Right/Wrong Approach: Some interview
-​ Interviewee Appearance: physically attractive psychological tests, job samples, questions, especially skill- level determiners,
applicants have an advantage in interviews assessment centers, references, can be scored simply on the basis of whether
over less attractive applicants. background checks, and training and the answer given was correct or incorrect.
-​ Nonverbal Cues: use of appropriate nonverbal experience ratings. -​ Typical-Answer Approach: The idea behind
communication is highly correlated with -​ Clarifiers: allow the interviewer to clarify this is to create a list of all possible answers to
interview scores. information in the résumé, cover letter, and each question, have subject-matter experts
-​ Although many more studies and variables application, fill in gaps, and obtain other (SMEs) rate the favorableness of each answer,
could be listed, this discussion shows that the necessary information. and then use these ratings to serve as
interview contains many sources of bias that -​ Disqualifiers: are questions that must be benchmarks for each point on a five-point
are not job related. answered a particular way or the applicant is scale.
disqualified. -​ Key-Issues Approach: In this approach, SMEs
-​ Skill-level Determiners: tap an interviewee's create a list of key issues they think should be
level of expertise.
CREATING A STRUCTURED included in the perfect answer. For each key
-​ Future-focused Questions/Situational issue that is included, the interviewee gets a
INTERVIEW Questions: ask an applicant what she would point.
Determining the KSAOs to Tap in the Interview do in a particular situation.
-​ The first step in creating a structured -​ Past-focused Questions/Patterned
Behavior Description Interviews: focusing
CONDUCTING THE STRUCTURED
interview is to conduct a thorough job
analysis and write a detailed job description. on previous behavior rather than future INTERVIEW
-​ The job analysis should identify the intended behavior.
-​ Build rapport
tasks performed, the conditions under -​ Organizational-fit Questions: tap the extent
-​ Set the agenda • Ask the interview questions
which they are performed, and the to which an applicant will fit into the culture
-​ Provide information about the job and the
knowledge, skills, abilities, and other of an organization or with the leadership
organization
characteristics (KSAOS) needed to style of a particular supervisor.
-​ Answer any questions that the applicant
perform the tasks. might have
-​ The second step is to determine the best way -​ Compliment the interviewee
to measure an applicant's ability to perform -​ Let the interviewee know when you will be
each of the tasks identified in the job analysis. contacting the applicant about job offers •
 Sum the scores to get the applicant's -​ Tailor cover letter to each company.
interview score -​ Don't write a cover letter on the stationery of
WRITING COVER LETTER your current employer.
JOB SEARCH SKILLS -​ tell an employer that you are enclosing your
résumé and would like to apply for a job.
-​ The following three sections provide advice
Cover letters should never be longer than WRITING A RESUME
on how to interview, write a cover letter, and
one page and must contain a salutation, four
write a résumé. -​ Résumés are summaries of an applicant's
basic paragraphs, and a closing signature.
professional and educational background.
SUCCESSFULLY SURVIVING THE INTERVIEW Although résumés are commonly requested
PROCESS by employers, little is known about their
-​ One of the most important of these steps is value in predicting employee performance.
to obtain training on how to interview. -​ Résumés may not predict performance
-​ Receiving interview training and practicing partly because they are intended to be
interviewing skills are good ways to reduce advertisements for an applicant.
interview anxiety. -​ There is no one best way to write a résumé.
-​ Reducing anxiety is important, as research Because people have such different
indicates that there is a negative correlation backgrounds, a format that works for one
between interviewee anxiety and interview individual may not work for another.
performance.
-​ Scheduling the Interview: What will affect
the score, however, is when applicants arrive
TIPS FOR WRITING COVER LETTERS CHARACTERISTICS OF EFFECTIVE
for the interview. If they arrive late, the score
RÉSUMÉS
will be drastically lower.
-​ Before the Interview: Learn, study about the HR director Ge Ge Beall provides job -​ The résumé must be attractive and easy to
company. During the Interview: Take read.
applicants with the following tips about
advantage of the interviewer biases. Pick up -​ The résumé cannot contain typing, spelling,
good nonverbal behaviors and desired verbal cover letters: grammatical, or factual mistakes.
behaviors. Do not hesitate before answering -​ Avoid sounding desperate and don't beg. -​ The résumé should make the applicant look
questions. -​ Avoid grammar and spelling errors. as qualified as possible- without lying.
-​ After the Interview: Write a brief letter -​ Avoid officious words or phrases. If a résumé follows the above three rules-it looks
thanking the interviewer for their time. -​ Don't discuss personal circumstances. nice, it doesn't contain mistakes, and it makes the
applicant look as good as possible-then it is an RECRUITMENT AND SELECTION -​ Remember that during the interview
effective résumé. process, candidates are deciding whether
they want to work for you just as much as
you're trying to decide whether to hire them.
CHRONOLOGICAL RESUME -​ You have only about an hour to make a good
impression on the candidate and to obtain
-​ Chronological résumés list previous jobs in
the critical information you need about their
order from the most to the least recent.
skills, experience and personality.
-​ Useful for applicants whose previous jobs
were related to their future plans and whose
work histories do not contain gaps.
Preparing for the Interview
FUNCTIONAL RESUME
-​ Organizes jobs based on the skills required to
Set enough time
perform them rather than the order in which
they were worked. -​ Dedicate specific time, conducting the
-​ Useful for applicants who are either interview in an appropriate location,
changing careers or have gaps in their work uninterrupted by email, telephones or other
histories. employees.
-​ This will allow you to concentrate, while also
PSYCHOLOGICAL RESUME giving a good first impression of your
Understanding My Role company to the applicant.
-​ Contains the strengths of both the
chronological and functional styles and is -​ Conducting an interview gives you a great
based on sound psychological theory and chance to demonstrate your employer
research. branding and company culture. Read the resume first
-​ Takes advantage of the impression-formation -​ This means that apart from focusing on the
-​ Make sure you have carefully studied each
principles of priming. candidate, you should also spend time on
resume ahead of time.
figuring out how you want to present your
-​ Know the resume so you can use the time to
company.
dig deeper.
-​ It is your chance to really get to know your
prospective employees. You'll be delving
deeper into the skills and requirements
noted on the resumé and phone screening.
Make a List of Questions Part 2: KNOWING THE FUNDAMENTALS Ask questions related to software
-​ That Directly Relate to the Job's languages
Responsibilities Don't just take the Craft your star -​ To determine whether the applicant have a
candidate's resume and wing it. comprehensive understanding of how to use
-​ If you don't have a job description, then list SITUATION - you set the scene
the language
the key responsibilities of the position, and TASK- define what is required, the when where and
-​ Example:
create a list of questions that relate to those who
-​ 1. What is SAN and how it is used?
responsibilities. ACTION- describe the action taken to overcome the
-​ 2. What languages have you
situation or challenge
programmed in?
RESULT- describe the result or the outcome of the
-​ 3. How was your experience using the
action taken
Don't talk too much during the SAP software and discuss it's
purpose?
interview process
What to do?
-​ Interviewers should only talk about 30
Ask questions about tech tools,
percent of the time.
-​ Allow candidates time to describe their skills Ask specific skills systems and security
and qualifications during the interview. -​ For you to know applicants technical
-​ Ask questions about training and
-​ Make sure to get to all of your questions and competency
certifications, knowledge of tech tools,
that you haven't missed anything to avoid -​ Example:
design, and processes.
the need for additional follow up. -​ 1. What development tools have you
-​ Example:
-​ 1. What are your technical used?
certifications? -​ 2. Have you used Visual Studio?
While Being Polite and Professional, -​ 2. How did your education prepare -​ 3. Have you used Eclipse?
Don't Get Too Chummy you for this job?
-​ 3. What do you do to maintain your Ask about their projects made and/or
-​ Keep all of your questions job-related. technical certifications?
-​ If you spend the interview chatting, you may -​ 4. How would you rate your key
accomplishments
make a hiring decision because you liked the competencies for this job? -​ To find out how they have performed in
candidate versus whether the person is truly typical workplace situations.
qualified for the job. -​ Example:
 -​ 1. Tell me about the most recent Questions to Know the Applicants Drive to Can you tell me about a time when
project you worked on. What were
your responsibilities?
Succeed things didn't go the way you wanted at
-​ 2. Describe a time you were able to work, such as a project that failed or
improve upon the design that was What online resources do you use to being passed over for a promotion?
originally suggested.
help you do your job? -​ Everyone deals with professional setbacks at
-​ 3. Tell me about the project you are
most proud of, and what your -​ The answer to this question will give you an some point in their career. What you want to
contribution was. indication of how engaged the candidate is. know is how people handled and what they
-​ 4. Give an example of where you have learned from those situations.
applied your technical knowledge in a -​ Listen to not only the problem they mention,
How do you keep your technology but also what they did after the
practical way.
-​ 5. How did you manage source code? skills current? disappointment.

-​ This interview question can help you gauge

Ask portfolios, if applicable the candidate's enthusiasm for the How do you think further technology
-​ Mostly, applicants would have their own
profession, as well as open up a conversation advances will impact your job?
about professional development.
portfolios especially those positions in: -​ This question is a good way to start a
-​ Web Design conversation about trends and
-​ Graphic Artist Pretend I'm not a tech person. Can you advancements in the field, and it will also
-​ Draftsman Architects explain [a relevant technology] in give you insight into how the candidate
-​ Etc. perceives their role over the long term
simple terms?
-​ The ability to communicate with
Prepare a hands-on technical
non-technical people is a must.
assessment -​ You can assess candidates' communication
What skills or characteristics make
-​ This is quite straightforward, you basically ask skills. someone an effective remote worker?
the applicant to have a hands-on experience -​ This is an important question to ask given the
on the skills you are looking. ongoing impact of the COVID-19 pandemic.
-​ Remote workers must be self-starters who
are able to work with little supervision.
 -​ They need excellent communication abilities -​ An interview isn't just about assessing skill. It Bad team players.
as well as self-discipline and stellar is also a chance for all parties to determine if
time-management skills. this role at this company is a good fit. -​ Employees' usually work most of the time in
front of a computer screen, but they need to
communicate with various people and teams
What would you hope to achieve in the Check on the Red flags on a daily basis.
first six months after being hired? -​ Poor interpersonal skills and signs of
rudeness or arrogance indicate lack of team
-​ A candidate's response will give you insights Unclear answers.
spirit.
into their overall understanding of the
-​ Candidates who struggle to explain their
position.
resume might have had little or no
-​ If their goals and ambitions don't match the Order-takers.
participation in the projects they listed.
job description, this may not be the right
-​ Ask follow-up questions to identify their exact -​ Candidates who fail to see the "big picture"
position for them.
roles and contributions. are not able to understand your company's
needs and objectives. Consider candidates
who are proactive and suggest solutions;
Lack of energy.
Part 3: PARTING WORDS AND ASSESSMENT they don't simply wait for instructions.
-​ Ask candidates about fun side projects, or
about their favorite tools.
Assessing the Applicant
WRAPPING UP -​ Their reactions can indicate how committed
they are to the field -​ Screening for technical talent can be tricky.
-​ Having a holistic view of both the role and
Leave time for interviewee to ask
Inflexibility. the candidate is key to making the right
questions hiring decision.
-​ You can't expect candidates to know every -​ Develop a good understanding of a job
-​ A good candidate will be curious about
software or framework that you use. candidate's qualifications, interests and
things like the job responsibilities and how a
-​ Opt for candidates who showcase a desire to character traits that are relevant to the
company prioritizes employee satisfaction,
learn and aren't discouraged by getting used position being filled.
but few are given adequate time to ask
to new systems. -​ Different things are valued for different
questions. Or they may be too nervous to
bring them up on their own. It's important to positions.
leave plenty of time for a candidate to ask
good questions.
Is the candidate a person of good -​ These individuals will put more effort into Civil Service Commission
their work, take more pride in their work,
character who will exhibit the enjoy their jobs more, and stay with the -​ Serves as the central personnel agency of the
necessary level of professionalism? company longer government to establish a career service and
adopt measures to promote morale,
-​ Traits that align with good character include:
efficiency, integrity, responsiveness, and
Honesty, dependability, flexibility,
courtesy in the civil service.
respectfulness, and being hardworking, Is the individual likely to become a -​ Appointments in the Civil Service shall be
team-oriented, and self- motivated. good, long-term employee of the made according to merit and fitness
-​ Many employers indicate that the biggest
challenge they have with new employees is
company or organization? -​ They also provide technical advice and
solutions regarding personnel administration
personality/attitude issues (i.e.. coachability, -​ Looking for someone that has the potential -​ They also provide seminars/trainings to
motivation, etc.). to become a good, long term employee. government agencies.
-​ Establish Program to Institutionalize
Does the individual have the Meritocracy and Excellence in Human
knowledge and skills needed to do the Put your personal signature on the job. Resource Management (PRIME-HRM)

job or can he/she be trained in a -​ Think about something you can do for your
reasonable amount of time? customer to make them feel special-a Type of Positions in the Government
memory that will make them come back."
-​ It is important to identify skills/traits that are 1) Career Service Positions entrance is based on
particularly important to an employer and merit and fitness, opportunity for advancement to
Hiring people is a form of investing. You have to do
emphasize the experiences that match those higher career positions; and security of tenure.
your research and make sure you're spending your
skills/traits during the interview. -​ 1st Level - clerical, trades, crafts, and custodial
resources on the right pick." - Warren Buffett -
service positions which involve
non-professional or sub professional work in
Is the individual a good fit for the Recruitment, Selection, and Hiring in the a non-supervisory or supervisory capacity
position so he/she and the rest of the Government Sector requiring less than four years of collegiate
studies.
team will be happy and productive?
-​ 2nd Level - professional, technical, and
-​ Look for individuals who have a strong scientific positions which involve professional,
interest or passion for the type of work that technical, or scientific work in a
needs to be done. non-supervisory or supervisory capacity
 requiring at least four years of college work iii.​
Positions that are exempted
up to Division Chief level; and from Posting: Primarily
2) Non-Career Service Positions. entrance on the Confidential, Coterminous with
service bases other than those of the usual tests of the appointing authority, other
merit and fitness utilized for the career service; and non career positions.
tenure which is limited to a period specified by law, Other sources: newspapers and other job
or which is coterminous with that of the appointing websites.
authority or subject to his pleasure, or which is
limited to the duration of a particular project for
which purpose of employment was made. Ex. Recruitment Sources
Elective officials, confidential staff, secretaries,

Recruitment

1.​ Publication and Posting of Vacant

Positions
a.​ Vacant positions in the career service,
including vacant
executive/managerial positions in the
second level that are authorized to be
filled shall be published and posted in
at least three (3) conspicuous places
for a period of at least (10) calendar
days.
i.​ Filling of vacant position shall
be made 10 calendar days
from publication date for SUC,
LGU after 15 calendar days
ii.​ Validity of Publication is up to
9 months
 ix.​ Authenticated Copy of PRC or categories of positions
CSC Eligibility(if applicable) corresponding to a skill
eligibility, as listed under CSC
MC No. 11, s. 1996, as amended.
Qualification Standards (Electrician, Automotive
automotive mechanic, heavy
-​ are the minimum and basic requirements for
equipment operator,
positions in the government in terms of the
laboratory technician, shrine
following:
curator, carpenter, draftsman,
-​ Education, (CHED registered
& plumber) Skills eligibility are
institutions or certifications from
not equivalent/comparable to
CHED)
Career Service SubProfessional
-​ Experience/Training
and Professional eligibility.
-​ Eligibility refers to the result of
Other Eligibilities granted
Selection passing a merit and fitness test which
under special laws and CSC
may be determined as far as
2.​ Preliminary Assessment of applicants Issuances. (Honor Graduate
practicable by competitive
documentary requirements based on the Eligibility, BOE)
examination, or based on highly
Qualification Standards of the Vacant -​ Appointees to Casual, Contractual and
technical qualifications or other tests
Position Coterminous positions that are not
of merit and fitness conducted by CSC
a.​ Necessary documents: confidential in nature should meet
& PRC examinations.
i.​ Application Letter the education, training and
-​ Career Service Professional Eligibility
ii.​ Resume experience. Exempted from the
-​ Subprofessional Eligibility
iii.​ Personal Data Sheet qualification requirements are those
-​ Board/Bar Eligibility (RA 1080)
iv.​ Authenticated copy of TOR & appointees with primarily confidential
automatically granted to passers of
Diploma
bar examination conducted by the
v.​ Certificate of
-​ Supreme Court and of licensure board
Trainings/Seminars
examinations administered by the
vi.​ Approved Clearance from
Professional Regulation Commission.
previous employer (if
-​ Skills Eligibility - Category II (CSC MC
applicable)
11, s. 1996, as Amended by CSC MC No.
vii.​ NSO Birth Certificate
10, s. 2013)
viii.​ NBI Clearance
-​ skills eligibility shall be
appropriate for specific
 -​ Performance Based 6.​ Issuance of the appointment to the
Test appointee
-​ Driving Skills
4.​ Deliberation of Personnel Selection
Board
-​ Personnel Selection Board - primarily Hiring
responsible for the selection of
candidates for appointment in the
agency in accordance with the CSC
6. Preparation of Report on Appointments
rules, regulations and shall submit to
Issued (RAI) for submission to CSC and
the appointing officer/authority the
top 5 ranking candidates deemed approval of the appointment by the CSC
most qualified for appointment to the -​ If the appointment is invalidated by the CSC,
vacant position. the appointing authority or appointee may
-​ PSB Composition: file an appeal or motion for reconsideration
-​ Chairperson: Chief of HRDO/or within 15 days from receipt of the letter of
his/her authorized invalidation otherwise the CSC action is
3.​ Assessment of Applicants based representative deemed final. (In coordination with the Office
on Interview and Testing -​ Members : of the University Legal Counsel (CSC Letter of
-​ Head of the organizational unit Invalidation & Letter of Appeal) payment of P
-​ Semi-Structured Type of Interviews by HRDO
where the vacancy exist 500.00 to CSC.
personnel and Chief of the Requesting Office
-​ HRMO in charge for
-​ Psychological Testing
Recruitment
-​ IQ Tests
-​ First level and 2nd level rank
-​ Culture Fair Intelligence Test
and file career employees
-​ Purdue Non Language Test
-​ Watson-Glaser Critical
5.​ Recommended Applicants by PSB
Thinking Test Committee will be endorsed to the
-​ Personality Tests University President
-​ Guilford Zimmerman for final selection of appointee and for the
Temperament Survey approval of the Board of Regents. (CSW Cover
-​ 16 Personality Factor Memo, published notice of vacant position, PSB
-​ Basic Personality Inventory NOTICE OF MEETING, PDS OF APPLICANTS, PSB
RECOMMENDATION FORMS.) Ai generated summary
EMPLOYEE SELECTION: REFERENCES AND Gathering Performance Information: ●​ Investigations revealed he never graduated
from a security school and had fabricated his
TESTING
experiences.
●​ Employers usually rely on references or
letters of recommendation to gauge an
Predicting Performance Using References and applicant’s past performance. Importance of Reference Checks:
Letters of Recommendation
Definitions: ●​ 98% of employers believe résumé fraud is a
-​ In psychology, a common belief is that the significant issue, warranting reference
best predictor of future performance is past ●​ Reference Check: Confirming the accuracy checks.
performance. of an applicant's information. ●​ In the UK, 25% of employers withdraw job
●​ Reference: An opinion about an applicant’s offers after discovering lies on applications,
Past Performance as a Predictor: abilities and past performance, given verbally and 23% fired employees for résumé fraud.
or in a checklist.
●​ In psychology, past performance is seen as ●​ Letter of Recommendation: A written Legal Measures:
the best indicator of future performance. opinion about an applicant’s abilities and
●​ Organizations prefer hiring candidates with potential, created by the letter writer. ●​ Washington state passed a law making it a
successful, relevant experience. Class C felony to claim a fake degree, with
Reasons for Using References and penalties up to $10,000 or five years in pri

Verifying Employment: Recommendations

Checking for Discipline Problems
●​ It's easy to check if someone worked at a Confirming Resume Details:
previous job but hard to verify the quality of Purpose of Checking References:
their performance. ●​ Many applicants may lie on their résumés
about their experience or education. ●​ To find out if an applicant has a history of
Example from Sports: issues like poor attendance, harassment, or
Example of Resume Fraud: violence.
●​ In the NFL draft, teams can assess players
through game films, unlike employers who ●​ Shawn Eckardt, who claimed to have Negligent Hiring Risks:
lack this visual evidence. impressive security credentials, was exposed
as a fraud after the assault on figure skater
●​ Employers can be held liable if they hire
Nancy Kerrigan.
someone who later commits a crime,
 especially if that person had a criminal Methods for Understanding Applicants: Impact of Online Presence:
background that could have been uncovered
with a background check. ●​ 70% of employers have eliminated
●​ Employers use references and letters of
candidates based on information found
recommendation to learn about applicants’
Legal Implications: skills and personality.
online, so applicants should monitor their
digital footprint.
●​ Negligent hiring cases are based on the Caution with References:
employer's duty to protect employees and Predicting Future Performance
customers from harm.
References can be biased or provide
●​ Courts consider the job's nature; jobs
inaccurate information. Common Belief:
involving public safety (like police or child
care) require more thorough checks. ●​ Past performance is often seen as the best
●​ A reference saying an applicant is "difficult to
work with" may only reflect their own predictor of future performance.
Statistics on Criminal Backgrounds: experience, not a general truth.
Role of References:
●​ A study found that 23% of applicants had Importance of Specific Examples:
undisclosed criminal records. ●​ References and letters of recommendation
●​ It's crucial to gather specific behavioral are used to assess past performance in
Real-Life Examples: examples and get opinions from multiple predicting future success.
references for a more balanced view.
●​ A child-care center in California hired an Limited Effectiveness:
employee without checking references; he Using Online Research:
later abused a child, and the center was ●​ Studies show that the effectiveness of
found guilty of negligent hiring. ●​ Employers often search applicants online, references in predicting future performance
●​ A grocery store employee committed a crime including social media. is low:
but the store had checked his references and ●​ A 2012 survey found that 37% of employers ○​ Average validity coefficient: .18
found nothing, so they were not liable. checked social networking sites for (uncorrected)
information on candidates, down from 45% in ○​ Corrected validity: .29

Discovering New Information About the Applicant 2009.

 Situation 1: Coworkers can give negative feedback:

Problems with References: ●​ All eight coworkers have positive feelings ●​ Research shows coworkers will give negative
about the applicant. references for unsatisfactory employees but
●​ Leniency: Most references are overly positive; ●​ If two coworkers are chosen for references, may be hesitant due to confidentiality
fewer than 1% rate applicants as below both would give positive reviews, concerns.
average. representing the rest.
●​ Knowledge of the Applicant: The person Confidentiality and waivers:
giving the reference may not know the Situation 2:
applicant well.
●​ Applicants usually sign waivers allowing
●​ Low Reliability: References can vary ●​ Most coworkers are neutral, with two positive
reference letters to remain confidential.
significantly in quality and consistency. and two negative opinions.
●​ Research shows that reference writers are
●​ Extraneous Factors: Influences from the ●​ The applicant chooses two positive
more honest and critical when applicants
writing and reading process can affect the coworkers, so the references are more
waive their right to see the letters.
reference's reliability. favorable than what the majority thinks.

Self-Selection of References: Situation 3: Fear of legal consequences:

○​ Applicants choose their own ●​ Only two coworkers out of eight like the ●​ Reference providers fear defamation lawsuits
references, which can lead to biased applicant. (slander for spoken, libel for written false
and overly positive feedback. ●​ However, the same two positive references claims).
are given, despite most coworkers having ●​ They are protected by "conditional privilege"
negative views. laws, which allow them to give honest
opinions as long as they believe what they
Situation 4: say is true.
●​ To avoid lawsuits, references often focus on
●​ No coworkers like the applicant. factual, behavioral information.
●​ The applicant would either not apply for the
job or find references elsewhere, which Example of cautious feedback:
might be negative.
●​ Instead of saying "This employee is a jerk," it's
safer to state factual behaviors like: "He was
warned three times for yelling, and four
coworkers asked not to work with him."
Waivers to avoid lawsuits: Reliability
●​ 72% of organizations have applicants sign End of ai generated summary
-​ The extent to which a score from a test or
waivers promising not to sue the company or
from an evaluation is consistent and free
reference providers for checking references.
from

"Reference detectives": CHAPTER : Four Main Problems with The third problem with references and letters of
References and Letter recommendation recommendation involves the lack of agreement
●​ Companies exist that are hired by applicants
between two people who provide references for the
to check what their former employer says
Negligent reference example same person.
about them.
●​ These firms pose as potential employers and
gather reference information for the client. -​ For example, if Dinero Bank fires John Smith Extraneous variable
●​ If the applicant dislikes the feedback, they for theft and fails to divulge that fact to a
might use it to file a defamation lawsuit. bank that is thinking of hiring Smith, Dinero -​ The fourth problem with letters of
Bank may be found liable if Smith steals recommendation concerns extraneous
money at his new bank. factors that affect their writing and
evaluation. Research has indicated that the
Knowledge of the Applicant method used by the letter writer is often
more important than the actual content.
-​ A second problem with letters of
recommendation is that the person writing Ethical issues
the letter often does not know the applicant
well, has not observed all aspects of an -​ Because providing references and
applicant's behavior, or both. letters of recommendation is a rather
-​ Employees often act very differently around subjective process, several ethical
their supervisors than they do around problems can arise involving their use.
coworkers and customers. Raynes (2005) lists three ethical
guidelines that reference providers
should follow.
 applicants have a bachelor's degree to pass What is an ability test?
the initial applicant screening process
-​ A meta-analysis by Ng and Feldman (2009) -​ Ability tests tap the extent to which an
First, explicitly state your relationship with the found that better educated employees had applicant can learn or perform a job-
person you are recommending higher performance, were more likely to related skill.
engage in organizational citizenship -​ Ability tests are used primarily for
A person may be a supervisor as well as a good behaviors, less likely to be absent, and less occupations in which applicants are
friend likely to engage in on-the-job substance not expected to know how to perform
abuse than were employees with lower levels the job at the time of hire.
of education,
Second, be honest in providing details -​ Meta-analyses indicate that a student's GPA Cognitive Ability Test
can predict job performance (Roth, Bevier,
Switzer, & Schippmann, 1996), training - Tests designed to measure the level of intelligence
performance (Dye & Reck, 1989), promotions or the amount of knowledge possessed by an
A good rule of thumb is to ask, "If I were in the (Cohen, 1984), salary (Roth & Clarke, 1998), applicant
reference seeker's shoes, what would I need to and graduate school performance (Kuncel,
know?” Hezlett, & Ones, 2001). Cognitive ability is thought to predict work
performance in two ways: by allowing employees
Job Knowledge Test to quickly learn job-related knowledge and by
Finally, let the applicant see your reference processing information resulting in better
before sending it, and give him the chance to -A test that measures the amount of decision making.
decline to use it job-related knowledge an applicant
possesses. Cognitive Ability

-​ For example, applicants for a Cognitive ability includes such dimensions as oral
PREDICTING PERFORMANCE USING bartender position might be asked and written comprehension, oral and written
APPLICANT TRAINING AND EDUCATION how to make a martini or a White expression, numerical facility, originality,
Russian, and applicants for an HR memorization, reasoning (mathematical, deductive,
-​ For many jobs, it is common that applicants position might be asked how to inductive), and general learning.
must have a minimum level of education or conduct a job analysis.
training to be considered. That is, an Cognitive ability is important for professional,
organization might require that managerial clerical, and supervisory jobs, including such
occupations as supervisor, accountant, and These tests may be used in a variety of fields, such as valid, from a financial or safety perspective they are
secretary. engineering, architecture, and graphic design, often impractical (Hoover, 1992).
where the ability to visualize and manipulate objects
Wonderlic Personnel Test and designs is important. Passing Score

- The cognitive ability test that is most commonly Psychomotor ability - Passing scores for physical ability tests are set
used in industry. based on one of two types of standards: relative or
- Measure of facility with such processes as finger absolute. Relative standards indicate how well an
The short amount of time (12 minutes) necessary to dexterity and motor coordination. individual scores compared with others in a group
take the test, as well as the fact that it can be such as women, police applicants, or current police
administered in a group setting, makes it popular. Psychomotor ability includes finger dexterity, officers
manual dexterity, control precision, multilimb
coordination, response control, reaction time, Rather than measuring an applicant's current
arm-hand steadiness, wrist-finger speed, and knowledge or potential to perform a job (ability),
speed-of-limb movement (Fleishman & Reilly, 1992b). some selection techniques measure the extent to
which an applicant already has a job-related skill.
Physical ability tests The two most common methods for doing this are
the work sample and the assessment center.
- Tests that measure an applicant's level of physical
ability required for a job. Work Samples

Physical ability tests are often used for jobs that - With a work sample, the applicant performs actual
require physical strength and stamina, such as job- related tasks.
police officer, firefighter, and lifeguard. Physical
ability is measured in one of two ways: job For example, an applicant for a job as automotive
Perceptual ability simulations and physical agility tests mechanic might be asked to fix a torn fan belt; a
secretarial applicant might be asked to type a letter,
refers to an individual's ability to interpret and For example, firefighter applicants might climb a and a truck-driver applicant might be asked to back
understand sensory information. In the context of ladder and drag a 48-pound hose 75 feet across a a truck up to a loading dock.
employment testing, perceptual ability tests street, police applicants might fire a gun and chase
typically assess an individual's ability to identify down a suspect, and lifeguard applicants might
patterns, solve visual problems, and manipulate swim 100 yards and drag a drowning victim back to
spatial relationships. shore. Though job simulations are highly content
Assessment center realistic.​ Tests of Normal Personality

- A method of selecting employees in which - Tests of normal personality measure the traits
applicants participate in several job-related Leaderless group discussion exhibited by normal individuals in everyday life.
activities, at least one of which must be a simulation, Examples of such traits are extraversion, shyness,
and are rated by several trained evaluators. In this exercise, applicants meet in small groups and assertiveness, and friendliness.
are given a job-related problem to solve or a
Its major advantages are that assessment methods job-related issue to discuss For example, the Myers-Briggs Type Indicator has
are all job- related and multiple trained assessors four scales and is based on the personality theory of
help to guard against many (but not all) types of For example, supervisory applicants might be asked Carl Jung.
selection bias. to discuss ways to motivate employees, or resident
assistant applicants might be asked to discuss ways Whereas the Edwards Personal Preference
In basket technique to reduce noise in residence halls Schedule, with 15 dimensions, is based on a theory
by Henry Murray.

An assessment center exercise designed to simulate Business games

The number of dimensions in a statistically based
the types of information that daily come across
test is determined through a statistical process
employee's desk a manager's or are exercises that allow the applicant to
called factor analysis. The most well-known test of
demonstrate such attributes as creativity, decision
this type, the 16PF (Personality Factor), was created
examples of job-related paperwork are placed in a making, and ability to work with others.
by Raymond Cattell and, as its name implies,
basket, and the job applicant is asked to go through
A business game in one assessment center placed contains 16 dimensions.
the basket and respond to the paperwork as if he
were actually on the job computer programming applicants into small
Minnesota Multiphasic Personality
groups and asked them to develop a proposal for a
Inventory-2(MMPI-2), hundreds of items were
Simulations new iPhone application
administered to groups of psychologically healthy
people and to people known to have certain
An exercise designed to place an applicant in a Personality inventory psychological problems such as paranoia.
situation that is similar to the one that will be
encountered on the job. A psychological assessment designed to measure
various aspects of an applicant's personality.
To be effective, simulations must be based on
job-related behaviors and should be reasonably
Test of Psychopathology pictures and asked to tell stories. It is designed to A psychological test designed to predict an
measure various need levels. applicant's tendency to steal.

- Tests of psychopathology (abnormal behavior)

Objective tests Integrity tests sample
determine whether individuals have serious
psychological problems such as depression, bipolar
A type of personality test that is structured to limit Polygraph
disorder, and schizophrenia. Though used
extensively by clinical psychologists, these tests are the respondent to a few answers that will be scored
- An electronic test intended to determine honesty
seldom used by I/O psychologists except in the by standardized keys.
by measuring an individual's physiological changes
selection of law enforcement officers.
after being asked questions.
Interest inventory
Tests of psychopathology are generally scored in one
Voice stress analyzer
of two ways: objectively or projectively. - A psychological test designed to identify vocational
areas in which an individual might be interested. As - An electronic test to determine honesty by
Projective tests the name implies, these tests are designed to tap measuring an individual's voice changes after being
vocational interests. asked questions.
provide the respondent with unstructured tasks
such as describing ink blots and drawing pictures. The most commonly used interest inventory is the Overt integrity test
Strong Interest Inventory (SII), which asks
A subjective test in which a subject is asked to individuals to indicate whether they like or dislike A type of honesty test that asks questions about
perform relatively unstructured tasks, such as 325 items such as bargaining, repairing electrical applicants' attitudes toward theft and their previous
drawing pictures, and in which a psychologist wiring, and taking responsibility. theft history.
analyzes his or her responses.
Interest inventories are useful in vocational Personality-based integrity test
Common tests in this category also include the counseling (helping people find the careers for
Rorschach Inkblot Test and the Thematic which they are best suited).
A type of honesty test that measures personality
Apperception Test (TAT). Because projective tests
traits thought to be related to antisocial behavior
are of questionable reliability and validity (Lilienfeld, Integrity tests
Wood, & Garb, 2001), and are time-consuming and
Unfortunately, all of these measures have problems.
expensive, they are rarely used in employee (also called honesty tests)tell an employer the If polygraph results are used, the researcher is
selection. probability that an applicant would steal money or essentially comparing integrity test scores with the
merchandise. scores of a test-the polygraph-that has been made
Thematic Apperception Test (TAT) A projective
personality test in which test-takers are shown
illegal for most employment purposes partly The idea behind handwriting analysis is that the way Rejection letter
because of questions about its accuracy. people write reveals their personality, which in turn
should indicate work performance. A letter from an organization to an applicant
Shrinkage informing the applicant that he or she will not
Drug testing receive a job offer.

- The amount of goods lost by an organization as a

result of theft, breakage, or other loss. certainly is one of the most controversial testing
methods used by HR professionals.
Conditional reasoning test CHAPTER 5: EVALUATING SELECTION
Tests that indicate whether an applicant has
recently used a drug.
TECHNIQUES AND DECISIONS
- Test designed to reduce faking by asking
test-takers to select the reason that best explains a
statement. Medical Exams

In jobs requiring physical exertion, many employers

CHARACTERISTICS OF EFFECTIVE
Credit History SELECTION TECHNIQUES
require that a medical exam be taken after a
conditional offer of hire has been made. In these
- Human Resource Management, 47% of employers
exams, the physician is given a copy of the job
conduct credit checks for at least some jobs (SHRM, Effective selection techniques have four
description and asked to determine if there are any
2012). characteristics. They are reliable, valid, cost- efficient,
medical conditions that will keep the employee
and legally defensible.
These credit checks are conducted for two reasons: from safely performing the job.
(1) Employers believe that people who owe money
RELIABILITY
might be more likely to steal or accept bribes, and Rejecting Applicants
(2) employees with good credit are more responsible -​ Reliability is the extent to which a score from
and conscientious and thus will be better employees Rejected applicants should be treated well because
a selection measure is stable and free from
they are potential customers and potential
error.
applicants for other positions that might become
Graphology -​ If a score from a measure is not stable or
available in the organization (Koprowski, 2004;
error-free, it is not useful.
Waung & Brice, 2003).
Also called handwriting analysis, a method of -​ For example, suppose we are using a ruler to
measuring personality by looking at the way in measure the lengths of boards that will be
which a person writes. used to build a doghouse.
TEST-RETEST RELIABILITY EVALUATING THE TEST RELIABILITY OF A
-​ With the test-retest reliability method, each
TEST
one of several people take the same test
INTERNAL RELIABILITY
-​ To evaluate the coefficient, you can compare
twice. -​ The extent to which similar items are it with reliability coefficients typically
-​ The scores from the first administration of answered in similar ways is referred to as obtained for similar types of tests.
the test are correlated with scores from the internal consistency and measures item
second to determine whether they are stability.
similar. -​ Another factor that can affect the internal
-​ Temporal stability: reliability of a test is item homogeneity.
-​ The test scores are stable across time and not -​ The split-half method is the easiest to use, as
highly susceptible to such random daily items on a test are split into two groups.
conditions as illness, fatigue, stress, or -​ Cronbach's coefficient alpha (Cronbach,
uncomfortable testing. conditions. 1951) and the K- R 20 (Kuder & Richardson,
-​ Test-retest reliability is not appropriate for all 1937) are more popular and accurate
kinds of tests. methods of determining internal reliability.

ALTERNATE FORMS OF RELIABILITY

SCORER RELIABILITY
-​ With the alternate-forms reliability
methods, two forms of the same tests are -​ A fourth way of assessing reliability is scorer
constructed reliability.
-​ Scorer reliability is an issue in projective or
subjective tests in which there is no one VALIDITY
correct answer, but even tests scored with
the use of keys suffer from scorer mistakes. -​ Validity is the degree to which inferences
-​ When human judgment of performance is from scores on tests or assessments are
involved, scorer reliability is discussed in justified by the evidence.
terms of interrater reliability. -​ But just because a test is reliable does not
mean it is valid.
-​ This counterbalancing of test-taking order is
-​ Even though reliability and validity are not
designed to eliminate any effects that taking
the same, they are related.
one form of the test first may have on scores
on the second form.
 -​ We think of reliability as having a necessary -​ A major issue concerning the criterion -​ A test itself can never be valid. When we say
but not sufficient relationship with validity. validity of tests focuses on a concept known that a test is valid, we mean that it is valid for
as validity generalization, or VG-the extent a particular job and a particular criterion. No
to which a test found valid for a job in one test will ever be valid for all jobs and all
location is valid for the same job in a different criteria.
CONTENT VALIDITY
location.
-​ One way to determine a test's validity is to
look at its degree of content validity- the
FACE VALIDITY
extent to which test items sample the
CONSTRUCT VALIDITY
content that they are supposed to measure. -​ Face validity is the extent to which a test
-​ In industry, the appropriate content for a test -​ Construct validity is the most theoretical of appears to be job related.
or test battery is determined by the job the validity types. -​ Chan, Schmitt, Deshon, Clause, and
analysis. -​ It is concerned with inferences about test Delbridge (1997) found that face-valid tests
-​ The readability of a test is a good example of scores, In contrast to content validity, which is resulted in high levels of test-taking
how tricky content validity can be. concerned with Inferences about test motivation, which in turn resulted in higher
construction. levels of test performance
-​ Construct validity is usually determined by -​ But just because a test face validity does not
correlating scores on a test with scores from mean it is valid (Jackson, O'Dell, & Olson,
CRITERION VALIDITY
other tests, 1982)
-​ Criterion validity, which refers to the extent -​ Another method of measuring construct -​ Barnum statements (Dickson & Kelly,
to which a test score is related to some validity is known group validity (Hattie & 1985)-statements so general that they can be
measure of job performance called a Cookaeу, 1986). true of almost everyone
criterion.
-​ With a concurrent validity design, a test is
given to a group of employees who are
CHOOSING A WAY TO MEASURE VALIDITY FINDING RELIABILITY AND VALIDITY
already on the job. INFORMATION
-​ With three common ways of measuring
-​ With a predictive validity design, the test is validity, one might logically ask which of the -​ Seventeenth Mental Measurements
administered to a group of job applicants methods is the "best" to use. As with most Yearbook (MMY) (Geisinger, Spies, Cartson, &
who are going to be hired. questions in psychology, the answer is that "it Plake, 2007), which contains information
-​ Thus, the restricted range of performance depends." about thousands of different psychological
scores makes obtaining a significant validity -​ In deciding whether content validity is tests as well as reviews by tost exports
coefficient more difficult. enough, it is advised to use the "next-door
neighbor rule."
COST-EFFICIENCY -​ The first information needed is the test's position tend to stay with the company. The
criterion validity coefficient. number is computed by using information
-​ If two or more tests have similar validities, -​ The second piece of information that must from company records to identify the time
then cost should be considered. be obtained is the selection ratio, which is that each employee in that position stayed
-​ Wonderlic Personnel Test or the Wechsler simply the percentage of people an with the company. The number of years of
Adult Intelligence Scale (WAIS). organization must hire. The ratio is tenure for each employee is then summed
-​ A recent innovation in the administration of determined by the formula: Selection ratio= and divided by the total number of
psychological tests involves the use of number hired /number of applications employees.
computers and the internet. -​ The final piece of information needed is the -​ Test validity (r). This figure is the criterion
-​ An increasingly common use of computer base rate of current performance-the validity coefficient that was obtained through
testing is computer-adaptive testing (CAT). percentage of employees currently on the either a validity study or validity
-​ The logic behind CAT is that if a test-taker job who are considered successful. generalization.
can't answer easy questions (eg, addition and -​ Standard deviation of performance in dollars
subtraction), it doesn't make sense to ask (SDy). For many years, this number was
questions about algebra and geometry
PROPORTION OF CORRECT
difficult to compute. Research has shown,
DECISIONS however, that for jobs in which performance
ESTABLISHING THE USEFULNESS OF -​ Determining the proportion of correct is normally distributed, a good estimate of
decisions is easier to do but less accurate the difference in performance between an
A SELECTION DEVICE average and a good worker (one standard
than the Taylor-Russell tables. Information
-​ Even when a test is both reliable and valid, it needed to determine the proportion of deviation away in performance) is 40% of the
is not necessarily useful. At first, this may not correct decisions is employee test scores and employee's annual salary (Hunter & Schmidt,
make much sense. Thus, several formulas the scores on the criterion. 1982). The 40% rule yields results similar to
and tables have been designed. more complicated methods and is preferred
by managers (Hazer & Highhouse, 1997). To
BROGDEN-CRONBACH-GLESER obtain this, the total salaries of current
TAYLOR-RUSSELL TABLES UTILITY FORMULA employees in the position in question should
-​ Taylor-Russell tables are designed to be averaged.
-​ Number of employees hired per year (n). This -​ Mean standardized predictor score of
estimate the percentage of future employees
number is easy to determine: It is simply the selected applicants (m). This number is
who will be successful on the job if an
number of employees who are hired for a obtained in one of two ways. The first method
organization uses a particular test. To use the
given position in a year. is to obtain the average score on the
Taylor- Russell tables, three pieces of
-​ Average tenure (t). This is the average selection test for both the applicants who are
information must be obtained.
amount of time that employees in the hired and the applicants who are not hired.
 The average test score of the non-hired SINGLE-GROUP VALIDITY -​ If a test does not lead to adverse impact, does
applicants is subtracted from the average not have single- group validity, and does not
test score of the hired applicants. This -​ Single-group validity, meaning that the test have differential validity, it is considered to be
difference is divided by the standard will significantly predict performance for one fair.
deviation of all the test scores. group and not others.
-​ To test for single-group validity, separate
correlations are computed between the test
MAKING THE HIRING DECISION
DETERMINING THE FAIRNESS OF A TEST and the criterion for each group. -​ After valid and fair selection tests have been
-​ If both correlations are significant, the test administered to a group of applicants, a final
-​ The term bias or unbiased refers to technical
does not exhibit single-group validity and it decision must be made as to which applicant
aspects of a test.
passes this fairness hurdle. If, however, only or applicants to hire.
-​ The term fairness can include bias, but also
one of the correlations is significant, the test
includes political and social issues.
is considered fair for only that one group.
-​ Single-group validity is very rare (O'Connor,
UNADJUSTED TOP-DOWN SELECTION
ADVERSE IMPACT Wexley, & Alexander, 1975) and is usually the -​ With top-down selection, applicants are
result of small sample sizes and other rank-ordered on the basis of their test scores.
-​ The first step in determining a test's potential methodological problems (Schmidt, 1988; -​ The advantage to top-down selection is that
bias is finding out whether it will result in Schmidt & Hunter, 1978). by hiring the top scorers on a valid test, an
adverse impact. organization will gain the most utility.
-​ There are three criteria for a minimum -​ The disadvantages are that this approach can
qualification: it must be needed to perform
DIFFERENTIAL VALIDITY
result in high levels of adverse impact and it
the job, and not merely be a preference; it -​ Differential validity, a test is valid for two reduces an organization's flexibility to use
must be formally identified and groups but more valid for one than for the non-test factors such as references or
communicated prior to the start of the other. organizational fit.
selection process, and it must be consistently -​ Remember, with single-group validity, the -​ In a compensatory approach to top-down
applied. test is valid only for one group. With selection, the assumption is that if multiple
-​ A test with adverse impact will lead to poor differential validity, the test is valid for both test scores are used, the relationship
public relations with minority communities, groups, but it is more valid for one than for between a low score on one test can be
which could hurt recruitment or marketing the other. compensated for by a high score on another.
efforts by the organization. -​ Usually, however, this is not a good option.
The second option is to use the test with
separate regression equations for each
group.
RULE OF THREE BANDING 1. Providing Employee Training and Feedback
the most important use of performance
-​ A technique often used in the public sector is -​ As a compromise between top-down hiring
evaluation
the rule of three (or rule of five), in which the and passing scores, banding attempts to hire
▪ Semiannual performance appraisal review
names of the top three scorers are given to the top test scorers while still allowing some
is an excellent time to meet with employees
the person making the hiring decision (e.g.. flexibility for affirmative action.
to discuss their strengths and weaknesses
police chief, HR director). -​ Banding takes into consideration the degree
and how it will be corrected
of error associated with any test score.
-​ The question then becomes, "How many
PASSING SCORES 2. Determining Salary Increases
points apart do two applicants have to be
before we say their test scores are – provide fair
-​ Passing scores are a means for reducing
significantly different?" basis on which to determine an employee’s
adverse impact and Increasing flexibility.
-​ We can answer this question using a statistic salary increase
-​ With top-down selection, the question is,
"Who will perform the best in the future?" called the standard error (SE).
With passing scores, the question becomes, -​ SE-SD√1- reliability
3. Making Promotion Decisions
"Who will be able to perform at an – Promoting the
acceptable level in the future?" best or most senior employee often results to
-​ If there is more than one test for which we Peter Principle
have passing scores, a decision must be
made regarding the use of a multiple-cutoff CHAPTER 7: Evaluating Employee Performance 4. Making Termination Decision
or a multiple-hurdle approach.
-​ One problem with a multiple-cutoff 5. Conducting Personnel Research
approach is the cost. If an applicant passes STEP 1: Determine the reason for evaluating
– to do this, an accurate and reliable measure of job
only three out of four tests, he will not be
performance must be available
hired, but the organization has paid for the
Employee Performance
applicant to take all four tests.
-​ To reduce the costs associated with o This determination is important because the
applicants failing one or more tests, various performance appraisal techniques are STEP 2: Identify Environmental and Cultural
multiple-hurdle approaches are often used. appropriate for some purposes but not for the
others
o Most Common uses and goals for performance Limitations
appraisal:
o Could be overwork, stress, financial limitations
o The results of the evaluation may not be taken they unfavorable rate their supervisor STEP 4: Select the best Appraisal Methods to
seriously if not identified ▪ Correlate highly with upper-management
ratings of supervisors’ performance
accomplish your goals
4. Customers
STEP 3: Determine who will evaluate the o Criteria – ways of describing employee success
– provide feedback on employee
performance by filling complaints or
Performance complimenting the manager about one of her
✓ Decision 1: Focus of the Appraisal
employees Dimensions
o Traditionally done by the supervisors (but
supervisors can only see certain aspects of the
employee’s behavior) ▪ Secret Shoppers I. Trait-focused Performance Dimensions
o 360-degree feedback and Multiple-source – current customers who –concentrates on such employee attributes such
feedback – using multiple sources to appraise have been enlisted by a company to as dependability, honesty, and courtesy
performance periodically evaluate the service their ▪ Not good idea because they provide poor
receive feedback and thus will not result in
1. Supervisors employee development and growth
– common type of performance 5. Self-Appraisal
appraisal (supervisor rating) – allowing an employee to II. Competency-Focused Performance
evaluate her own behavior and performance Dimensions
2. Peers ▪ Suffer from leniency and correlate – concentrate of employee’s knowledge, skills,
moderately to actual performance and abilities
– often see the actual behavior
▪ Most accurate when the self-appraisal will
▪ Works directly with the employee
not be used for such administrative
▪ Reliable only when the peers are similar and III. Task-Focused Performance Dimensions –
purposes as raises or promotions
well acquainted to the employees being organized by the similarity of tasks that are
▪ Accurate when employees understand the
rated performed
performance appraisal system and when
▪ Employees tend to react worse to negative ▪ Supervisor are concentrating on tasks that
employees believe that an objective record
feedback from peers than experts occur together and can thus visualize an
of their performance is available with which
supervisor can compare the self-appraisal employee’s performance, it is often easier to
3. Subordinates evaluate performance than with other
– also called upward feedback dimensions
▪ Difficult because of the fear of backlash if ▪ More difficult to offer suggestions for how to
correct the deficiency if an employee scores a. Employee Comparisons b) Quality of Work – usually measured in terms
low on a dimension of errors (defined as deviations from a
▪ Rank Order – employees are ranked in order
standard)
by their judged performance for each
IV. Goal-Focused Performance Dimensions – • Can be even work quality higher than the
relevant dimensions
standard
organize the appraisal based on the goals to be • Easily used when there is few
c) Attendance – can be separated into three
accomplished by the employee employees to rank
distinct criteria: absenteeism, tardiness, and
▪ Easier to understand why certain behaviors
tenure
are expected Paired Comparisons
d) Safety – employees who follow safety rules
– involves comparing each possible pair of and who have no occupational accidents do
V. Contextual Performance – the effort an employees an choosing which one of each pair is the not cost an organization as much money as
employee makes to get along with peers, better employee those who break rules, equipment, and
improve the organization, and perform tasks • The time necessary to male all of the possibly their own bodies
that are needed but are not necessarily an comparisons becomes prohibitive c. Ratings of Performance – how well the
official part of the employee’s job description employee performed on each dimensions
▪ Also tend to be similar across jobs, whereas Forced Distribution 1) Graphic Rating Scale – most common rating
the dimensions involved in task scale
– predetermined percentage of employees are
performance differ across jobs • Ease of construction and use but
placed in each of the five categories
• Much easier by one must assume that susceptible to rating errors as halo and
✓ Decision 2: Should Dimensions be employee performance is normally leniency
distributed (certain percentages of 2) Behavioral Checklist – consists of a list of
Weighted? behaviors, expectations, or results for each
employees who are poor, average, and
▪ Makes good philosophical sense, as some excellent) dimensions
dimensions might be more important to an ▪ They do not provide information about how • Used to force the supervisor to
organization than others well an employee is actually doing concentrate on the relevant behaviors
▪ Reduce racial and other biases that fall under a dimension
▪ Administratively easier to compute and to • Constructed by taking the task
explain to employees statements from a detailed job
Objective Measures or Hard Criteria
description and converting them into
a) Quantity of Work – obtained by simply behavioral performance statements
✓ Decision 3: Use of Employee counting the number of relevant job representing the level at which the
Comparisons, behaviors that take place behavior is expected to be performed
• Often misleading • Behavior-focused system increased the
Objective Measures, or Ratings
amount of specific feedback that can be ▪ Provides raters with job-related (1955)
given to each employee information, practice in rating, and ▪ Supervisors are allowed to record only job
• Result-focused statements concentrate examples of ratings made by experts as well relevant behaviors
on what an employee accomplished as a as the rationale behind those expert ratings
result of what she did ▪ Goal is to communicate the organization’s
• Contamination – employee can do definition of effective performance and to
STEP 7: Evaluate Performance
everything asked of her by an then get rates to consider only relevant 1. Obtaining and Reviewing Objective Data – when
organization and still not get the desired employee behaviors when making combined with critical-incident logs, provide a
results due to factors outside her performance evaluations solid basis on which to rate an employee
control o The better that employees understand the 2. Reading Critical-Incident Logs – reduce errors
3) Comparison with other employees – performance appraisal system, the greater is of primacy, recency, and attention to unusual
comparing the employee’s level or their satisfaction with the system information
performance with that of other employees 3. Completing the Rating Form – must be careful
• Reduce such problems as overly lenient to make common rating errors
or overly strict ratings, it potentially
STEP 6: Observe and Document Performance
a. Distribution Errors – involves distribution of
forces a supervisor to rate employees o Observe employee behavior and document ratings on a rating scale
who are performing well as being worse critical incidents (examples of excellent and • Made when rater uses only one part of a
than other employees poor employee performance) rating scale
4) Frequency of Desired Behaviors o Usually written in critical incident log • Leniency Error – certain raters tend to
5) Extent to which organizational expectations o Documentation forces the supervisor to focus rate every employee at the upper end of
are met – allows high levels of feedback and on employee behaviors the scale regardless of the actual
can be applied to most types of employee o Helps supervisors recall the behaviors (first performance of the employee
behavior impressions, recent behaviors, unusual or • Central Tendency Errors – supervisor
o Feedback from behavior-based methods is extreme behaviors, behavior consistent with the rating every employee in the middle of
easier to give and to use to provide suggestion supervisor’s opinion) the scale
for improvement o Provides examples to use when reviewing • Strictness Error – rates every employee
performance ratings with employees at the low end of the scale
STEP 5: Train Raters o Helps an organization defend against legal b. Halo Errors – occurs when a rater allows
actions taken against it by employee who was either a single attribute or an overall
o Raters who receive frame-of-reference training terminated or denied a raise or promotion impression of an individual to affect the
make fewer rating errors and recall more o Employee Performance Record - more formal ratings that she makes on each relevant job
training information that do untrained raters or method for using critical incidents in evaluating dimensions
raters receiving information performance developed by Flanagan and Burns • Statistically determined by correlating
the ratings for each dimension with f. Sampling Problems the goal of understanding and improving
those for the other dimensions performance
• If they are highly correlated, halo error ✓ Employee who are actively involved in the
occurred interview are more satisfied with the results
• They can be reduced by having
STEP 8: Communicate Appraisal Results to ✓ Positive feedback should be given first, then
supervisors rate each trait at separate negative, then positive again
times Employees ✓ Discuss the reasons an employee’s
c. Proximity Errors – occur when a rating performance is not considered as perfect
made on one dimensions affects the rating ✓ Fundamental Attribution Error – attribute
made on the dimension that immediately others’ failure or poor performance to
follows it on the rating scale I. Prior to the Interview personal rather situational factors
• Only the dimension physically located ✓ Allocate time to prepare (at least for an hour ✓ Goals must be mutually set for the future
nearest a particular dimension on the for both prep and interview proper) performance and behavior, and both
rating scale are affected ✓ Schedule the interview in a neutral place supervisor and employee should
d. Contrast Errors – the performance rating and it should be scheduled at least once understand how these goals will be met
one person receives can be influenced by every six months for most employees and
the performance of a previously evaluated more often for new employees
person
Step 9: Terminate Employees
✓ When preparing for the interview, the
• Error Assimilation – when the supervisor should review the rating she has o Employment-at-will doctrine – allows
supervisor reads the previous assigned to the employee and the reasons employers freedom to fire an employee without
evaluations as excellent but the for those ratings; employee should rate her a reason
employee has been showing poor own performance ▪ Limitations: State Law, Provisions of
performance and still give the employee Federal Law or state law, Public
excellent rating Policy/Interest, Contracts, Implied
II. During the Interview
e. Low Reliability across raters – two people Contracts, Covenant of Good Faith and fair
rating the same employee seldom agree ✓ Begin with some small talk until the jitters
dealing
with each other go away
o Legal Reasons for terminating employees:
1. Raters often commit rating errors ✓ Once, established the supervisor should
1) Probationary period – period to prove that
2. Raters often have different standards communicate the role of performance
employees can perform well
and ideas about the ideal employee appraisal, how the performance appraisal
2) Violation of Company rules
3. Two different raters may actually see was conducted, how the evaluation process
a) Rule against a particular behavior must
very different behaviors by the same was accomplished, the expectation that the
actually exist
employee appraisal interview will be interview, and
b) Company must prove that the employee
knew the rule
c) Ability of the employer to prove that an
employee actually violated the rule
d) The extent to which the rule has been
equally enforced
TASK ANALYSIS
e) Extent to which the punishment fits the -​ If the results of the organizational analysis
crime indicate that a positive organizational climate
3) Inability to perform for training exists, the next step is to conduct
4) Reduction in Force (Layoff) a task analysis.
o Prior to the meeting of termination, one must -​ The purpose of a task analysis is to use the
ensure that the legal process has been followed job analysis methods discussed in Chapter to
o Then determine how much the organization identify the tasks performed by each
wants to offer the employee (references, employee, the conditions under which these
severance pay, outplacement assistance) tasks are performed, and the competencies
o Schedule at an appropriate place and time (knowledge, skills, abilities) needed to
ORGANIZATIONAL ANALYSIS
o During the meeting, the supervisor should get to perform the tasks under the identified
the point about terminating, state the reasons -​ The purpose of organizational analysis is to conditions.
for the decision, express gratitude and offer determine those organizational factors that -​ The most common job analysis methods
assistance either facilitate or inhibit training used for this purpose include interviews,
o After the meeting, a supervisor should review effectiveness. observations, and task inventories.
the facts and be honest to the other employees -​ A properly conducted organizational analysis -​ The task analysis process is usually
about what happened will focus on the goals the organization conducted by listing tasks in one column and
wants to achieve, the extent to which training how the tasks are learned in a second
will help achieve those goals, the column. As you can see, the hypothetical
organization's ability to conduct training (e.g., bank needs to develop training courses in
finances, physical space, time), and the dealing with difficult customers and in
extent to which employees are willing and cross-selling, because these are
CHAPTER 8: Designing and Evaluating Training
able to be trained (e.g., ability, commitment, competencies not tapped during the
Systems motivation, stress) (McCabe, 2001). selection process nor learned in current bank
-​ An organizational analysis should also training programs.
include a survey of employee readiness for
training.
Person Analysis -​ The second problem is that rarely are there -​ This process is used to determine whether
situations in which all employees score either the supervisors agree with their employees'
-​ The third and final step in the needs analysis high or low on a dimension. Instead, it is perceptions and to prioritize training needs
process is determining which employees more common for only a few employees to
need training and in which areas. score poorly
-​ Person analysis is based on the recognition -​ In this case, a person examining the average
that not every employee needs further performance appraisal scores might
INTERVIEWS
training for every task performed. conclude that training in a particular -​ The third method of needs analysis is the
-​ To determine the individual training needs dimension is unnecessary. But that interview, which is usually done with a
for each employee, person analysis uses conclusion would be only partially correct. selected number of employees.
performance appraisal scores, surveys, -​ Third, the current performance appraisal -​ Interviews are not used as extensively as
interviews, skill and knowledge tests, and/or system may not provide the type of surveys, but they can yield even more
critical incidents. information needed to conduct a training in-depth answers to questions about training
needs analysis (Herbert & Doverspike, 1990). needs (Patton & Pratt, 2002).
-​ The main advantage of interviews is that
PERFORMANCE APPRAISAL SCORES employee feelings and attitudes are revealed
SURVEYS more clearly than with the survey approach.
-​ Low ratings on a particular dimension for -​ The main disadvantage of interviews is that
most employees may indicate that additional -​ Another common approach to determine interview data are often difficult to quantify
training in that dimension is needed. training needs is to design and administer a and analyze (Brown, 2002).
Conversely, if most employees score high on survey that asks employees what knowledge
a particular dimension, relatively little and skills they believe should be included in
training time is needed. future training (Kroehnert, 2000).
-​ Although using performance appraisal scores -​ Second, employees often know their own
SKILL AND KNOWLEDGE TESTS
appears fairly easy as a method of needs strengths and weaknesses best. Thus, to -​ The fourth way to determine training needs
assessment, three problems can interfere determine what employees need, ask them. is with a skill test or a knowledge test. Some
with their use. First, as discussed in the -​ Finally, training needs can be determined examples of areas that could be tested to
previous chapter, several types of rating with surveys even when the organization has determine training needs include knowledge
errors can reduce the accuracy of not previously made an effort to design an of lending laws for loan officers, knowledge of
performance appraisal scores. The most effective performance appraisal system or company policy for new employees,
relevant here are leniency errors and adequate job descriptions. free-throw shooting for basketball players,
strictness errors.
 and the dreaded midterm exam for this DEVELOPING A TRAINING PROGRAM
course.
-​ If all employees score poorly on these tests,
training across the organization is indicated. ESTABLISHING GOALS AND
If only a few employees score poorly, they are OBJECTIVE
singled out for individual training.
-​ The greatest problem with using testing as a -​ It is important that these goals and
method to determine training needs is that objectives be obtainable given the time and
relatively few tests are available for this resources allocated to the training.
purpose. -​ Training goals and objectives should
concretely state the following (Mager, 1997):
-​ What learners are expected to do
-​ The conditions under which they are
CRITICAL INCIDENTS expected to do it
-​ The level at which they are expected
-​ The fifth method for determining training
to do it
needs is the critical-incident technique
-​ In other words, vague objectives such as "to
discussed in Chapters 2, 4, and 7.
be a better salesperson" should be replaced
-​ To use this technique for needs assessment,
with specific objectives such as increasing
the critical incidents are sorted into
customer contacts by 10% and increasing
dimensions and separated into examples of
new accounts by 5%.
good and poor performance, as discussed in
Chapter 2.
-​ Dimensions with many examples of poor
performance are considered to be areas in MOTIVATING EMPLOYEES
which many employees are performing
-​ For a training program to be effective,
poorly and in which additional training is
employees must be motivated to attend
indicated.
training, perform well in training, and apply
their training to their jobs
MOTIVATING EMPLOYEES TO ATTEND -​ Similarly, in situations where promotion is feedback on his swing by seeing how hard
not possible, pay increases alone are given to and far the ball travels.
TRAINING employees who master new skills. -​ For other tasks, however, judging the
-​ The most obvious way to "motivate" -​ Skill-based pay not only provides incentives correctness of a behavior without feedback is
employees to attend training is to require for employees to successfully complete difficult.
them to attend training "on the clock." training but also results in increased savings -​ A final consideration for feedback concerns
-​ Here are some strategies to motivate for an organization. what type of feedback to give. Research and
employees to attend training: common sense agree that positive feedback
-​ Relate the training to an employee's Interest. should be given when an employee correctly
immediate job. performs a task during training.
-​ Employees will be more motivated to learn
-​ Make the training interesting. -​ Perhaps the factor that plays the biggest role
when the training program is interesting.
-​ Increase employee buy-in. in employee motivation to apply training is
-​ As a result, trainers who are not effective
-​ Provide incentives. the atmosphere set by management.
presenters do not last long.
-​ Provide food. -​ That is, employees are most likely to apply
-​ Some training topics are naturally interesting
-​ Reduce the stress associated with their new knowledge and skills if supervisors
and a trainer doesn't need to do much to
attending. encourage and reward them to do so.
spice up the material.
-​ A good example of the importance of
-​ For example, the topic of detecting
Providing Incentives for Learning. management support can be found at a
deception is intrinsically interesting to most
particular fast-food restaurant.
Employees motivated to learn perform better people, but the topic of performance
-​ Another important factor in motivating
in training than their less motivated appraisal is not.
employees is the extent to which they are
counterparts (Mathieu, Tannenbaum, & Salas, -​ A topic can be made interesting by making it
given the opportunity to apply their skills.
1992). relevant to the employees' lives, having
-​ The use of knowledge and skills learned in
-​ Types of incentives that can be used to activities, using a variety of training
training can also be encouraged by having
motivate learning include money, job techniques, using humor, and maximizing
employees set goals.
security, self- improvement, advancement, audience participation.
-​ Employees will also be motivated to apply
fun (an interesting training program), and
what they learned in training if the training
opportunity to enter a new career. Feedback.
program has a reputation among them as
-​ A common financial incentive method is -​ Another essential aspect of motivating being effective and useful (Switzer, Nagy, &
skill-based pay, which is used by 16% of major employees to learn is to provide feedback. Mullins, 2005).
U.S. organizations (Mercer Consulting, 2005). -​ With some tasks, feedback occurs naturally. -​ One other method for getting employees to
For example, in baseball, a batter receives apply what they have learned in training is to
 train all the employees in a work area (team) lecture, to a few or many employees at one
at the same time. time

CHOOSING THE BEST TRAINING INITIAL DECISIONS

METHOD -​ Prior to conducting classroom training,
-​ Once goals and objectives have been several decisions need to be made by an
established, the next step in developing a organization.
training program is to choose the training
method that will best accomplish those goals
and objectives. WHO WILL CONDUCT THE TRAINING?
-​ For example, if the goal is for employees to
learn an actual skill, some type of hands-on -​ In-house trainers are used when a training
training will be necessary (e.g., role plays, program will be presented too frequently to
simulations). justify the cost of an outside trainer or when
-​ Because most training programs have the training topic is so specific to the
multiple goals and objectives, the best organization that finding outside trainers
training programs often use a variety of would be difficult.
methods so that employees will understand -​ External trainers are used when the trainers
the reasons for doing a certain task, how it in an organization lack the expertise on a
should be done, and in what situations it particular topic or when the cost of internally
should be done (Lawson, 2000). developing a training program exceeds the
cost of contracting with an external trainer.
-​ Rather than using actual trainers, many WHERE WILL THE TRAINING BE
organizations use videotapes as part of their HELD?
Conducting Classroom Training training programs.
-​ Many organizations are beginning to use -​ Training can be offered on-site or at an
-​ Classroom instruction-commonly called a
local colleges and universities to handle their off-site location such as a hotel, university, or
seminar, lecture, or workshop-is still the most
training needs. conference center.
common training method (ASTD, 2007).
-​ The obvious advantage of conducting
-​ With this approach, either a member of the
training on-site is that it is less expensive.
training staff or an outside consultant
provides training, often in the form of a
 -​ However, many organizations have neither ADJUSTING FOR THE AUDIENCE CREATING HANDOUTS
the space nor the equipment needed for
on-site training. -​ The characteristics of the audience play an -​ Handouts should include the following:
-​ Holding training off-site has the advantage of important role in developing a training -​ A cover sheet with the title of the
getting the employees away from the work program. training program as well as the date
site and allowing them to concentrate on -​ A trainer must consider the size, and location in which the training
their training. demographics, and ability of the audience. took place.
For example, with a large audience, not only -​ A list of goals and objectives.
will the trainer need to use a microphone, -​ A schedule for the training (e.g.,
HOW LONG SHOULD THE TRAINING but it becomes difficult to supplement breaks, ending times).
BE? lecture material with such exercises as role -​ A biographical sketch of the trainer.
play, simulation, and group discussion. -​ The notes themselves in outline form,
-​ From a cost-efficiency perspective, it is better
-​ The ability level of the audience members is full text, or copies of the PowerPoint
to conduct a weeklong training session
another important factor. If they are low on slides.
rather than divide the training into 10
experience or ability, the training will need to -​ Activity sheets such as personality
half-day sessions spread over a one-month
proceed at a slower pace than if they were inventories, free writes, or group
period.
more experienced or more skilled. activity information.
-​ For the highest level of learning, training
-​ The toughest situation for a trainer is when -​ References and suggestions for
material should be presented in small, easily
the audience has mixed levels of ability. further reading.
remembered chunks distributed over a
-​ A form to evaluate the quality of the
period of time (distributed learning) rather
training program.
than learned all at once (massed learning).
-​ The best example of the principle of massed DEVELOPING THE TRAINING
versus distributed practice is studying for CURRICULUM
exams. If we distribute the reading over INTRODUCING THE TRAINER AND THE
several days, the material is relatively easy to -​ Putting together a training program can take
TRAINING SESSION
learn. But if we wait until the night before the a great deal of time.
test to read three chapters-that is, mass the -​ The trainer must research a topic, develop a
reading-we will not retain much at all. training outline, create visuals (e.g., -​ This can be done by the trainer introducing
PowerPoint slides), create handouts, and himself or by another person doing the
obtain or create supporting materials such as introduction.
videos and role play exercises. -​ The introduction should be short and should
establish the credentials of the trainer.
 -​ If necessary, a more complete biography of MAKING THE PRESENTATION -​ Case studies are similar to leaderless group
the trainer can be placed in the training discussions and situational interview
materials so that the audience can see the -​ Though this is not a public speaking text, problems (which were discussed in Chapter
trainer's credentials without the trainer here are some tips you might find useful in 5), and are considered to be good sources for
appearing to be bragging making a training presentation: developing analysis, synthesis, and evaluation
-​ Make eye contact with the audience. skills (Noe, 2007).
-​ Use gestures effectively. -​ For case studies to be most successful, the
-​ Don't read your presentation. cases should be taken from actual situations.
USING ICEBREAKERS AND -​ Don't hide behind the podium. -​ In addition to being realistic, case studies
ENERGIZERS -​ Use a conversational style. should be interesting.
-​ Be confident. -​ To increase the effectiveness of case studies,
-​ Types of icebreakers include: -​ Speak at a pace that is neither too fast trainees should first be taught the principles
-​ Introductions such as asking each nor too slow. involved in solving a particular type of
trainee to introduce the person next -​ Avoid swearing, making off-color or problem.
to him or her, or having a scavenger offensive remarks, and demeaning
hunt in which trainees are given a list other people, groups, or
organizations.
of questions (e.g., "Who likes
-​ Try to make the presentation
USING SIMULATION EXERCISES TO
baseball?" "Who has a daughter?")
and are asked to mingle with the interesting. PRACTICE NEW SKILLS
other trainees to obtain answers to -​ Don't force humor.
-​ Whereas case studies are effective in
the questions. -​ When answering audience questions,
applying knowledge and learning
-​ Jokes or stories. repeat the question if the room is
problem-solving skills, simulation exercises
-​ Activities in which trainees, either large.
allow the trainee to practice newly learned
individually or in small groups, are skills.
given a question or problem to solve. -​ Simulations offer the advantage of allowing
-​ Open-ended questions to elicit USING CASE STUDIES TO APPLY the trainee to work with equipment under
audience response and encourage actual working conditions without the
KNOWLEDGE
discussion. consequences of mistakes.
-​ Free writes in which audience -​ Once employees have received the -​ Like all training methods, simulation
members are asked to write about the information they need through lecture, it is exercises come in many different forms.
topic important that they be able to apply what -​ Whatever the method used, a simulation
they have learned. One way to do this is exercise can be effective only if it physically
through the case study.
 and psychologically simulates actual job INCREASING INTERPERSONAL -​ Most distance learning training takes
conditions. advantage of the concept of programmed
-​ Although most simulators do not exactly
SKILLS THROUGH BEHAVIOR instruction.
replicate actual physical and psychological MODELING -​ First, learning is self paced-that is, each
job conditions, they are still better than the trainee proceeds at his own pace. Second,
-​ One of the most successful training methods
single alternatives of either lecture or actual each trainee is actively involved in the
has been behavior modeling.
practice. learning.
-​ Behavior modeling is similar to role play
-​ Finally, programmed instruction presents
except that trainees role-play ideal behavior
information in small units or chunks, because
rather than the behavior they might normally
learning smaller amounts of material is easier
PRACTICING INTERPERSONAL perform.
than learning larger amounts.
SKILLS THROUGH ROLE PLAY -​ For behavior modeling to be successful, the
videos must represent commonly
-​ Whereas simulations are effective for encountered problems and situations-thus
learning how to use new equipment or demonstrating the importance of a thorough PROGRAMMED INSTRUCTION USING
software programs, role play allows the job analysis. BOOKS, VIDEOS, OR INTERACTIVE
trainee to perform necessary interpersonal -​ An important and related issue is whether
skills by acting out simulated roles. employees should be trained on specific
VIDEO
-​ Role play is used in many types of training situational skills or on generic skills that will -​ With this method, employees are provided
situations, from supervisors practicing cover any situation. with media materials for learning the
performance appraisal reviews to sales clerks -​ Another issue involves the number and types content, as well as with a series of exams that
taking customer orders. of models that are viewed in the training measure what they have learned from them.
-​ Though role plays allow employees to video. -​ If employees do not pass the test at the end
practice what is being taught, they are not of each unit, they must reread the material
for everyone. and retake the test until they pass.
-​ Farber (1994) thinks that role play should be -​ In this way, employees study at their own
replaced by "real play," in which employees
Providing Individual Training through
pace, and the exams ensure that employees
practice their skills on actual customers. Distance Learning understand the material.
-​ One disadvantage of classroom instruction is
that all employees must be taught at the
same pace.
COMPUTER-BASED OR WEB-BASED -​ Though there is some disagreement about manager trainee to experience and
what constitutes OJT, a good definition is understand most, if not all, of the jobs within
PROGRAMMED INSTRUCTION that OJT is informal training by experienced the organization that his subordinates will
-​ Rather than using books and traditional peers and supervisors that occurs on the job perform.
videos for distance learning, many and during job tasks. -​ Job rotation is also commonly used to train
organizations are using computer-based nonmanagerial employees. Aside from
increasing employee awareness, the main
training (CBT) and e-learning. LEARNING BY MODELING OTHERS
-​ A common method of CBT and e-learning is advantage of job rotation is that it allows for
interactive video. With interactive video, -​ Also called social learning, modeling is a both lateral transfers within an organization
employees see a videotaped situation on a vitally important method of learning for and greater flexibility in replacing absent
television, computer screen, or iPod. training in organizations. As the name workers.
-​ Fast-growing sources of e-learning are implies, employees learn by watching how -​ An interesting innovation is taking job
teleconferences, webinars, and web-casts. • other employees perform, or model, a rotation training outside the organization
Another fast-growing source of e-learning is behavior. and encouraging employees to volunteer for
interactive, online communities of learning -​ Modeling as a learning technique is worthwhile charities and nonprofit
such as blogs, wikis, and listservs. astoundingly pervasive and is the basis of the organizations.
-​ Meta-analysis results indicate that CBT and behavioral modeling method of training
discussed earlier.
e-learning are at least as effective as LEARNING THROUGH APPRENTICE
classroom training and their effectiveness -​ Modeling is most effective under certain
increases when learners can control the pace conditions. These conditions mainly involve TRAINING
of the learning and when feedback is given characteristics of the employee whose -​ Apprentice training is used by more than
regarding the learner's progress (Sitzmann, behavior is being duplicated and the 50,000 people annually and is typically found
Kraiger, Stewart, & Wisher, 2006). characteristics of the person attempting to in crafts and trades such as carpentry and
model that performance. plumbing.
-​ Apprenticeships are good for both the
Conducting On-the-Job Training LEARNING THROUGH JOB ROTATION apprentice and the expert. The apprentice
learns a valuable trade, and the expert or the
-​ In this section, we will discuss how -​ Another excellent on-the-job training organization gets inexpensive labor-usually
employees learn through on-the-job training method is job rotation, in which an employee one half the cost of expert labor.
(OJT), an important topic given that some performs several different jobs within an -​ Despite this increased popularity, however,
researchers estimate that over 60% of organization. apprenticeship programs have been
employee training is OJT. -​ Job rotation is especially popular for criticized for two major reasons. First, the
managerial training because it allows a emphasis during the apprenticeship often is
 on the production of work as opposed to Evaluation of Training Results with the knowledge, skills, and abilities
teaching new skills to the apprentice. required to perform a job. In other words, the
Second, unions use apprenticeships to -​ As discussed in Chapter 1, one important content validity of the training can be
restrict entry into their trades, which results characteristic of industrial psychology is its examined.
both in inflated wages caused by high reliance on research. Evaluating training -​ Although content analysis may ensure that a
demand and a lower supply of workers, and results is a good example of this reliance. training program is job related, it still does
in unfair minority hiring practices. Because training programs can be costly in not indicate whether a particular training
both time and money, it is essential that they method is effective.
be evaluated to determine if they can be -​ But if a training program is content valid and
LEARNING THROUGH COACHING AND improved, should continue to be offered, and is conducted by a professional trainer who
MENTORING whether it significantly increases can document previous success with the
performance or affects positive changes in method in other organizations, it may be a
-​ Coaching is another popular method of
behavior (Kirkpatrick, 2000). safe assumption that the training program
training new employees and typically takes
one of two forms: experienced employees will be successful.
working with new employees and EVALUATION CRITERIA
professional coaches who work with all
-​ In the previous section, we discussed
employees. EMPLOYEE REACTIONS
research designs for evaluating training. In
-​ Experienced Employees as Coaches. In this
each design, a pretest and posttest were -​ The most commonly used method to
form of coaching, a new employee is
included. This section will discuss the types of evaluate training is measuring employee
assigned to an experienced employee, who is
criteria that can be used for these pretests reactions to the training.
told to "show the kid the ropes.
and posttests. "There are six levels at which -​ Employee reactions involve asking
-​ Professional Coaches. To overcome the
training effectiveness can be measured: employees if they enjoyed the training and
problems mentioned here, many
content validity, employee reactions, learned from the training. These ratings tend
organizations are using "corporate coaches."
employee learning, application of training, to be most influenced by the trainer's style
Corporate coaches are similar to consultants,
business impact, and return on investment and the degree of interaction in the training
yet rather than working with the
(Phillips & Stone, 2002). program, but are also influenced by the
organization as a whole, they are hired to
coach a particular employee-usually a motivation of the trainee prior to training as
manager. well as perceptions of organizational support
CONTENT VALIDITY for the training.
-​ Because trainee reactions constitute the
-​ At times, the only way that training can be lowest level of training evaluation, they can
evaluated is by comparing training content often be misleading.
 this material can be measured by observing trains its tellers to cross-sell Visa cards. The
how they treat an angry customer while they tellers rate the training session as being
are actually working. Application of training is enjoyable (employee reactions), all of the
EMPLOYEE LEARNING
often measured though supervisor ratings or employees pass a test on sales techniques
-​ Instead of using employee reactions as the through the use of the secret shoppers (knowledge), and sales attempts increase by
criterion in evaluating training performance, discussed in Chapter 7. 30% (application). The ROI approach would
actual employee learning can usually be then ask, "If we spent $5,000 training the
measured. tellers, how much more revenue was brought
BUSINESS IMPACT
-​ This test will be administered before training in as a result of the training?" If the answer to
and then again after the training has been -​ The fifth criterion that can be used to the question is more than the amount spent
completed. The measurements that will be evaluate a training program's effectiveness is on training, then the program would be
used for the pretest and posttest, as with business impact. considered a success.
selection tests, must be both reliable and -​ Business impact is determined by evaluating
valid. whether the goals for training were met.
-​ Thus, if the purpose of a training program is -​ For example, a restaurant such as Buffalo
to increase job knowledge, an appropriate Wild Wings conducts a training program
job knowledge test must be constructed or designed to increase sales of "top shelf"
purchased. liquor. A week after the training, if sales of
-​ At times, reliable and valid measures of liquors such as Knob Creek bourbon and
training effectiveness are difficult to obtain. Absolut vodka increase, and sales of liquors
such as Pepe Lopez tequila and Aristocrat
vodka decrease, the training would be
considered successful because it has had the
APPLICATION OF TRAINING
desired business impact.
-​ Another criterion for evaluating the
effectiveness of training is the degree of
RETURN ON INVESTMENT
application of training, or the extent to which
employees actually can use the learned -​ The sixth criterion for evaluating the success
material. of a training program is return on investment
-​ Learning and memorizing new material is (ROI).
one thing, and applying it is another. -​ That is, after accounting for the cost of the
-​ For example, if employees learn how to deal training, did the organization actually save
with angry customers, their ability to apply money? For example, imagine that a bank
CHAPTER 09: EMPLOYEE MOTIVATION -​ Situational self-esteem (also called -​ This method is based loosely on the principle
self-efficacy) is a person's feeling about of the self-fulfilling prophecy, which states
himself in a particular situation such as that an individual will perform as well or as
IS AN EMPLOYEE PREDISPOSED TO operating a machine or talking to other poorly as he expects to perform. In other
BEING MOTIVATED? people. words, if an individual believes he is
-​ Socially influenced self-esteem is how a intelligent, he should do well on tests. This
-​ Psychologists have postulated that some person feels about himself on the basis of the relationship between self-expectations and
employees are more predisposed to being expectations of others. performance is called the Galatea Effect.
motivated than are others.
-​ Three individual difference traits that are
most related to work motivation: SUPERVISOR BEHAVIOR
SELF ESTEEM WORKSHOPS
self-esteem, an intrinsic motivation
Another approach to increasing employee
tendency, and need for achievement. -​ To increase self-esteem, employees can self-esteem is to train supervisors to communicate a
attend workshops in which they are given feeling of confidence in an employee. The idea here
insights into their strengths. It is thought is that if an employee feels that a manager has
that these insights raise self-esteem by confidence in him, his self-esteem will increase, as
SELF ESTEEM
showing employees that they have several will his performance.
-​ Self-esteem is the extent to which a person strengths and are good people. -​ • Such a process is known as the Pygmalion
views himself as valuable and worthy. -​ In training programs such as Outward Bound effect and has been demonstrated in
-​ According to Korman's consistency theory, or the "ropes course, participants learn that situations as varied as elementary school
there is a positive correlation between they are emotionally and physically strong classrooms, the workplace, courtrooms, and
self-esteem and performance. enough to be successful and to meet the military.
-​ • employees try to perform at levels challenges. -​ In contrast, the Golem effect occurs when
consistent with their self-esteem level. negative expectations of an individual cause
EXPERIENCE WITH SUCCESS a decrease in that individual's actual
performance.
3 TYPES OF SELF ESTEEM -​ With the experience-with-success approach,
an employee is given a task so easy that he
will almost certainly succeed. It is thought
INTRINSIC MOTIVATION
All three types of self-esteem are important to job that this success increases self-esteem, When people are intrinsically motivated, they will
performance: which should increase performance, which seek to perform well because they either enjoy
-​ Chronic self-esteem is a person's overall further increases selfesteem, which further performing the actual tasks or enjoy the challenge
feeling about himself. increases performance, and so on.
of successfully completing the task. When they are HAVE THE EMPLOYEE'S VALUES AND -​ Jobs will have motivation potential if they
extrinsically motivated, they may not necessarily allow employees to use a variety of skills (skill
EXPECTATIONS BEEN MET?
enjoy the tasks but are motivated to perform well to variety) and to connect their efforts to an
receive some type of reward or to avoid negative outcome (task identification) which has
consequences (Deci & Ryan, 1985). People who are meaning, is useful, or is appreciated by
intrinsically motivated don't need external rewards coworkers as well as by others in society (task
such as pay or praise. In fact, being paid for
JOB EXPECTATIONS significance).
something they enjoy may reduce their satisfaction -​ A discrepancy between what an employee
and intrinsic motivation (Deci, Koestner, & Ryan, expected a job to be like and the reality of the NEEDS, VALUES AND WANTS
1999). job can affect motivation and satisfaction.
-​ If job expectations have not been met, the -​ A discrepancy between an employee's needs,
employee will probably feel unmotivated. values, and wants, and what a job offers can
NEEDS FOR ACHIEVEMENT AND POWER also lead to low levels of motivation and
-​ It is important that applicants be given a
-​ Employees who have a strong need for realistic job preview (RJP). satisfaction. Three theories focus on
achievement are motivated by jobs that are -​ Though being honest about the negative employees' needs and values:
challenging and over which they have some aspects of a job may reduce the applicant -​ Maslow's needs hierarchy: employees
control, whereas employees who have pool, it decreases the chances of hiring a would be motivated by and satisfied
minimal achievement needs are more person who will later lose motivation or with their jobs at any given point in
satisfied when jobs involve little challenge become dissatisfied. time if certain needs were met. •
and have a high probability of success. -​ ERG theory: Existence, Relatedness
-​ In contrast, employees who have a strong and Growth (Aldefer, 1972)
JOB CHARACTERISTICS -​ Two-factor theory.job-related factors
need for affiliation are motivated by jobs in
which they can work with and help other -​ According to job characteristics theory, could be divided into two
people. employees desire jobs that are meaningful, categories-hygiene factors and
-​ Finally, employees who have a strong need provide them with the opportunity to be motivators (Herzberg, 1966.)
for power are motivated by a desire to personally responsible for the outcome of
influence others rather than simply to be their work (autonomy), and provide them
successful. with feedback of the results of their efforts
-​ (Hackman & Oldham, 1976).
-​ If there is a discrepancy between the extent
to which a job provides these three outcomes
and an employee's need for these outcomes,
the employee will be less motivated.
 specific goals are difficult because the goals would EMPLOYEE PARTICIPATION
need constant adjustments.
-​ It was generally thought that a goal would
DO EMPLOYEES HAVE ACHIEVABLE lead to the greatest increase in productivity if
GOALS? 3.​ ATTAINABLE it was set at least in part by the employee.
However, several meta-analyses have
Properly set goals are high but attainable (Locke &
indicated that participating in goal setting
-​ To increase motivation, goal setting should Latham, 1990). If an employee regularly prints 5000
does not increase performance but increases
be used. pages an hour and sets a goal of 4000 pages,
commitment to reaching a goal.
-​ For goal setting to be most successful, the performance is certainly not going to increase.
goals themselves should possess certain Conversely, if the goal becomes 20,000 pages, it will
qualities represented by the acronym SMART: also not be effective because the employee will ARE EMPLOYEES RECEIVING FEEDBACK ON
specific, measurable, attainable, relevant, and quickly realize that he cannot meet the goal and will THEIR GOAL PROGRESS?
time-bound (Rubin, 2002). quit trying.
-​ To increase the effectiveness of goal setting,
feedback should be provided to employees
4.​ RELEVANT on their progress in reaching their goals.
1.​ SPECIFIC
-​ Feedback can include verbally telling
Properly set goals are concrete and specific (Locke & Properly set goals are also relevant. Setting a goal
employees how they are doing, placing a
Latham, 2002. A goal such as "I will produce as many about increasing public speaking skills will not be as
chart on a wall, or using nonverbal
as I can" will not be as effective as "I will print 5000 motivating to a person working in a landtill as it
communication such as smiles, glares, and
pages in the next hour." The more specific the goal, would be to a police officer who often testifies in
pats on the back. F
the greater the productivity. However setting court.
-​ Feedback best increases performance when
specific goals are difficult because the goals would it is positive and informational rather than
need constant adjustments. negative and controlling. DHA CH GLIPDNE....
5.​ TIME BOUND -​ For feedback to be effective, it must be given
Goals work best when there is a time frame for their when employees do things properly, not just
2.​ MEASURABLE completion. For example, a goal to clean one's office when they make mistakes.
Properly set goals are concrete and specific (Locke & would be more motivating if the goal included a
Latham, 2002. A goal such as "I will produce as many date by which the office would be cleaned.
as I can" will not be as effective as "I will print 5000 SELF-REGULATION THEORY
pages in the next hour." The more specific the goal,
the greater the productivity. However setting -​ The idea behind self-regulation theory is that
employees monitor their own progress
 toward attaining goals and then make the TIMING OF THE INCENTIVE to and be trained to administer different
necessary adjustments; that is, they self- types of reinforcers
regulate. -​ A reinforcer or a punisher is most effective if -​ The need for variety in rewards is also true of
-​ With multiple complex goals, self-regulation it occurs soon after the performance of the punishment.
becomes more difficult, and employees must behavior.
make a conscious effort to be aware of their -​ Unfortunately, if the timing of the incentive is
goals, monitor their goal progress, and set too long, the effectiveness of the incentive to
improve performance will be hindered.
PREMACK PRINCIPLE
priorities so that decisions can be made
when encountering competing goals. • For example, a restaurant employee -​ Reinforcement is relative and that a
learning how to wait on tables supervisor can reinforce an employee with
performs many behaviors in the something that on the surface does not
course of serving a customer. appear to be a reinforcer.
ARE EMPLOYEES REWARDED FOR
-​ The best way to explain this principle is to
ACHIEVING GOALS? construct a reinforcement hierarchy in which
CONTINGENCY OF CONSEQUENCES an employee lists his preferences for a variety
-​ An essential strategy for motivating of reinforcers.
-​ If it is not possible to immediately reward or
employees is to provide an incentive for
punish a behavior, it should at least be made
employees to accomplish the goals set by an
clear that the employee understands the
organization.
behaviors that brought reward or
-​ As a result, organizations offer
punishment.
incentives for a wide variety of
-​ Reward and punishment must be made
employee behaviors.
contingent upon performance, and this
-​ The basis for these incentive systems are
contingency of consequence must be clear
operant conditioning principles, which state
to employees if we want them to be
that employees will engage in behaviors for
motivated.
which they are rewarded and avoid behaviors
for which they are punished.

TYPE OF INCENTIVE USED

-​ • Different employees have different values,
which is why supervisors should have access
FINANCIAL REWARDS INDIVIDUAL VERSUS GROUP INCENTIVES -​ Gainsharing: ties groupwide financial
incentives to improvements (gains) in
-​ Financial incentives (bonuses, security, prizes) organizational performance.
can be used to motivate better worker -​ Stock Options: employees are given
performance either by making variable pay the opportunity to purchase stock in
an integral part of an employee's
INDIVIDUAL INCENTIVE PLANS
the future, typically at the market
compensation package or by using financial -​ Individual incentive plans are designed to price on the day the options were
rewards as a "bonus" for accomplishing make high levels of individual performance granted.
certain goals. financially worthwhile. Individual incentives
help reduce such group problems as social
EXPECTANCY THEORY
loafing.
RECOGNITION -​ The two most common individual incentive Three components of Expectancy Theory:
plans are" -​ Expectancy (E): The perceived relationship
-​ Rather than providing financial incentives, -​ pay for performance: pay employees between the amount of effort an employee
many organizations reward employee according to how much they puts in and the resulting outcome.
behavior through recognition programs. individually produce. -​ Instrumentality (1): The extent to which the
-​ In some organizations, recognition awards -​ merit pay: base their incentives on outcome of a worker's performance, if
are given by peers. performance appraisal scores rather noticed, results in a particular consequence.
than on such objective performance -​ Valence (V): The extent to which an
measures as sales and productivity. employee values a particular consequence.
TRAVEL -​ Motivation= E (IxV)

-​ Many organizations are offering travel awards GROUP INCENTIVE PLANS

REWARDS VS PUNISHMENT
rather than financial rewards. For example,
-​ Group incentive plans is to get employees to
every executive at McDonald's is allowed to -​ Rather than rewarding desired behaviors, we
participate in the success or failure of the
nominate high-performing employees for a can change employee performance by
organization.
chance to spend a week in one of the punishing undesired behaviors.
-​ Encourages employees for reaching group
company's condos in Hawaii, Florida, or Lake -​ Punishment not only reduces undesired
goals.
Tahoe, Nevada. behaviors in a particular employee but also
-​ Profit Sharing: provide employees
with a percentage of profits above a sets an example for other employees.
certain amount. -​ For punishment to be effective, an employee
must understand why he is being punished
and be shown alternative ways.
 -​ Must also "fit the crime" INTEGRATION OF MOTIVATION THEORIES
-​ Discrepancy and needs theories: we will be
ARE REWARDS AND RESOURCES GIVEN motivated in our jobs if the job itself and the
EQUITABLY? organization meet our expectations and
values and satisfy our needs.
-​ Another factor related to motivation and job
-​ Goal-setting theory: employees who have,
satisfaction is the extent to which employees
understand, and agree to goals will be more
perceive that they are being treated fairly.
motivated than those without goals or with
-​ Equity Theory: based on the premise that
unclear goals.
our levels of motivation and job satisfaction
-​ Expectancy theory and goal-setting theory:
are related to how fairly we believe we are
the goals must be challenging but
treated in comparison with others. •
reasonable.
-​ Inputs: personal elements that we
-​ Operant learning and expectancy theories:
put into our jobs.
extrinsically motivated people will be more
-​ Outputs: elements that we receive
motivated if behavior results in a reward.
from our jobs.
-​ Needs theories, and the Premack Principle:
-​ input/Output Ratio: dividing output
rewards must have value to the employee to
value by input value.
be motivating.
-​ Equity theory: rewards that are valued will
ARE OTHER EMPLOYEES MOTIVATED? be motivating only if they are given in an
equitable way. Perceptions of equity are as
-​ • If an organization's older employees work important as the reality of equity.
hard and talk positively about their jobs and -​ Social influence theory: if other employees
their employer, new employees will model are motivated, there is an increased
this behavior and be both productive and probability that we will model their behavior
satisfied. and be motivated.
-​ If veteran employees work slowly and
complain about their jobs, so too will new
employees.
CompenBen for Public and Private Sector -​ It is a survey carried out by the DBM pursuant
to its mandate to administer the compensation
and position classification system of the
Salary Standardization Law & Compensation and government under Presidential Decree No.
Benefits in the Public Sector 985 and Republic Act No. 6758 or Salary
Standardization Law I.
-​ The DBM engaged the services of Towers
SALARY STANDARDIZATION LAW of Watson who offers consulting, technology and
2015 solutions in the areas of benefits, talent
management, rewards, and risk and capital
management.
-​ It is a legislative measure to modify the
-​ The objectives of the Study are;
compensation and position classification
-​ To compare the competitiveness of
system of civilian government personnel and
government pay in relation to the Guiding Principle of SSL 2015
the base pay schedule of military and
private sector
uniformed personnel.
-​ to craft a compensation strategy to
-​ It was approved by President Benigno Aquino Guiding Principles
bring government pay closer to market
III -​ Payment of just and equitable compensation
rates
-​ Senate President Franklin M. Drilon and to government personnel in accordance with
Senate Finance Committee chairperson Loren the principle of equal pay for work of equal
Legarda co-author the proposed measure value;
(Senate Bill 3009 -​ Comparability of civilian government
-​ The basis for the proposed compensation pay with those in the private sector
adjustment of the SSL 2015 is the -​ Rationalized and standardized compensation
Compensation and Benefits Study for the across all government agencies; and
Public Sector -​ Adoption of a performance-based incentive
scheme
What is Compensation and Benefits
Study for the Public Sector? Parameters:
-​ Minimum basic salary (SG 1) shall be raised
from P9,000 to P11,068 a month.
 -​ Compensation shall be adjusted to at least Exclusion government-owned or controlled corporations
70% of the market for all salary grades -​ Those engaged thru job orders, contracts of (GOCCs), government financial institutions
-​ To recognize differences in duties and service, consultancy contracts, service (GFIs) and local government units (LGUs)
responsibilities, there shall be no salary contracts with no employee-employer -​ under permanent status
overlaps relationship -​ regular plantillas of agencies
-​ The link between pay and performance shall -​ A one (1) step increment shall be granted to
be strengthened officials and employees for every 3 years of
continuous satisfactory service in their present
Main Objective of the SSL 2015 Monthly Salary Schedule Four (4) positions.
-​ To be competitive with the market thereby
Tranches -​ An employee may progress from Step 1 to
attract and retain talent Step 8 of the salary grade allocation of his/her
-​ Strengthen the link between pay and position in recognition of meritorious
performance Reduce costs of benefits (i.e. performance based on a Performance
GSIS premiums and PhilHealth contributions) Management System.
while maximizing the benefits to employees
-​ Allow higher take home pay, especially for
government personnel belonging to lower
salary grades

Executive Order No. 201, s. 2016

-​ Modifying the Salary Schedule for Civilian
Personnel and Authorizing the Grant of
Additional Benefits for Both Civilian and
Military and Uniformed Personnel. Coverage
All civilian personnel in the Executive, Step Increment (Executive Order No.
Legislative, and Judicial Branches,
Constitutional Commissions and Constitutional
164)
Offices, GOCCs not covered by RA 10149, -​ Officials and employees of national
and LGUs government agencies (NGAs) including state
-​ Military personnel of the DND O Uniformed universities and colleges (SUCs),
personnel of the DILG, PCG, and NAMRIA
SSL 3 VS MARKET FOR NURSES HOW MUCH WILL SSL COST FROM Payment
2016 TO 2019 -​ Paid only when basic pay is also paid
-​ P 2,000.00 per month provided they render
full-time services for eight (8) hours per
working day, twenty-two (22) working days per
month, inclusive of leave of absence with pay

Subsistence, Laundry, and Quarters

Allowances (SLQA)
-​ Under the Magna Carta Benefits of Public
Health Workers pursuant to R.A. No. 7305.

Hazard Pay
-​ It is to protect and promote the welfare of
public servants by providing them with
SSL 3 VS MARKET FOR TEACHERS additional compensation taking into account
P 225.82 Billion the nature of their responsibilities and
exposure to hazard or possible dangers
Personnel Economic relief allowance pertaining to their positions
(PERA) Budget Circular No. 2011-2:
Coverage
-​ All employees and officials of the Government
Coverage
shall be paid hazard pay when stationed or
-​ All civilian government employees occupying assigned to work in or under the following
regular, contractual and casual status, whether circumstances/conditions
elective or appointive, rendering FULL TIME or -​ Hazardous or less hazardous areas.
part time basis. -​ Difficult areas or hardship posts
characterized by distance,
inconvenience of travel due to bad
 roads and conditions of the terrain, Longevity Pay MEDICARE SHARING (PHILHEALTH
isolation, inaccessibility and extreme
A monthly longevity pay equivalent to five percent SHARING)
weather conditions
-​ Stations which offer risks to health and (5%) of the present monthly basic pay shall be paid to -​ The new sharing scheme, which was
safety due to exposure to radiation, public health workers for every five (5) years of implemented starting last month, is divided to
contagious diseases and volcanic continuous, efficient and meritorious services the medical department (50 percent) that
activity: Institutions that tend or care for rendered as certified by the Head of Agency/Local would include doctors, hospital administrator,
mentally-deranged patients: Chief Executives commencing after the approval of medical director, chief nurse, head of billing
-​ Those in prison reservations and penal the Act. (April 17, 1992) section, medical social services and the
colonics without adequate police personnel officer who handles the accounts of
protection: Philhealth.
-​ Plants and installations of the arsenat Representation & Transportation -​ The other 50 percent is divided among the
-​ Aboard aircraft and watercraft in Allowance rank and file employees (75 percent), senior
crossing bodies of water; and nurses, supervisors and quality teams (15
-​ RATA is a collective term for two distinct but percent) and all the hospital department heads
Computation of Hazard Pay complementary allowances. Both Allowances who are members of the management circle
are provided to select government official to (10 percent)
cover related expenses incidental to and in
connection with the actual performance of their
NIGHT DIFFERENTIAL PAY
respective functions.
-​ Night shift Differential Pay-Compensation
premium granted to government personnel
whose regular working hours fall wholly or
partly within 6:00 PM to 6:00 AM of the
following day.
-​ Hourly Basic Rate - The basic salary rate per
hour derived by (a) dividing the monthly rate
by 22 working days, and dividing the quotient
derived in (a) by S hours.
-​ 20% of the hourly basic rate of the employee
13th Month Pay (Mid year Allowance) than November 15 of the current year employees of Five Thousand Pesos
Conditions: (P5,000) each for the purpose of
-​ COVERAGE: All positions in the government -​ Must have rendered at least a TOTAL improving the government employees
whether regular, casual or contractual in or AGGREGATE of FOUR (4) months productivity
nature, elective or appointive of service from January 1 to October -​ Exclusions
-​ GUIDELINES: 31 of the current year -​ Consultants and experts hired for a
-​ Equivalent to ONE (1) month basic pay -​ Must remain in the service as of limited period to perform specific
as of MAY 15 October 31 of the same year. activities or services with expected
-​ Rendered at least a total or an outputs
aggregate of FOUR (4) months of -​ Laborers hired through job contracts
CLOTHING ALLOWANCE
service from July 1 of the immediately (pakyaw) and those paid on piecework
preceding year to May 15 of the current -​ Section 40 of the General Provisions of basis
year Republic Act (R.A.) No. 10155, the Fiscal Year -​ Student workers and apprentices; and
-​ Remains to be in the government (FY) 2012 General Appropriations Act (GAA), -​ Individuals and groups of people
service as of May 15 of the current provides that appropriations for each whose services are engaged through
year department, bureau, office, or agency may be job orders, contracts of service, or
-​ With at least a SATISFACTORY used for uniform or. clothing allowance of others similarly situated
performance rating in the immediately employees at not more than P5,000 per
preceding rating period annum. subject to the rules and regulations
COLLECTIVE NEGOTIATION
issued by the DBM
AGREEMENT
14TH MONTH PAY (YEAR-END -​ Administrative Order (AO) No. 1351 s. 2005
ALLOWANCE) AND CASH GIFT PRODUCTIVITY ENHANCEMENT -​ Collective Negotiation Agreement (CNA)
INCENTIVES Incentive - This may be granted to both
-​ COVERAGE management and rank-and-file employees of
-​ All government employees whether agencies with approved and successfully
regular, contractual, or casual in -​ Pursuant to Executive Order (EO) No.
implemented CNAs in recognition of their
nature, appointive or elective. 201, s. 2016 efforts in accomplishing performance targets
-​ GUIDELINES: -​ Beginning FY 2016, the Productivity at lesser cost, in attaining more efficient and
-​ Year-End-Bonus equivalent to one (1) Enhancement incentive shall be given viable operations through cost cutting
month salary as of October 31 and not earlier than December 15 of every measures and systems improvement
Cash Gift of P5000- given not earlier year to all qualified government
PERFORMANCE BASED BONUS -​ shall be computed at P500.00 but not Honoraria Honorana
more than P1,000.00 for every year of
-​ Subject to the achievement by service, in accordance with CSC MC -​ shall be paid to the following personnel subject
departments/agencies of performance forgets No. 06, s.2002 to the guidelines issued by the DBM
and compliance with good governance and -​ COVERAGE
other conditions Based on a progressive rate -​ Teaching personnel of the DepEd
system as the position and responsibility goes TESDA, SUCs, and other educational
ANNIVERSARY BONUS
higher, so does the amount of PBB institutions with excess and outside
-​ The provision for Anniversary Bonus (AB) at their teaching load.
P3,000.00 per qualified personnel shall be -​ lecturers, resource pension,
Performance Category PBB as % of Monthly
Basic Salary made only on the occasion of the agency's coordination, and facilitators in
milestone year. seminars
Best 65% -​ 15th anniversary and every 5 years -​ Chairs and members of
Bureau/OfficeDelivery thereafter Commissgens/Boards/Councils
Unit (10%) -​ Those involved in science and
technological activities who render
Best 57.5% OVERTIME PAY
Bureau/OfficeDelivery services beyond their regular workload
Unit (25%) A duly authorized work rendered beyond the regularly -​ Officials and employees assigned to
scheduled normal hours of work, such as work during special projects The rates of honoraria
Best 50% the day beyond the 8 hours of work required from shall depend on the level of
Bureau/OfficeDelivery
daily paid workers or work during the week beyond responsibilities, nature of work
Unit (65%)
the 40 hours of work required from monthly paid rendered, and extent of individual
workers. contribution to produce the desired
LOYALTY AWARD outputs. The total honoraria received
from all special projects shall not
-​ The provision for the cash gift component of
exceed 25% of the annual basic salary.
the Loyalty Award for qualified officials and
employees, in addition to the loyalty
memorabilia/souvenir, on the occasion of the
incumbent's milestone year.
-​ 10th year anniversary and every 5
years thereafter
MAGNA CARTA BENEFITS two (2) years of service as PHW, may be Maternity leave
entitled to one (1) step increase to Sixty (60) calendar days leave.
-​ Honoraria for assignment in special project beintegrated into the basic salary, in
-​ Honoraria for lecturers and Resource persons recognition of his/her efforts towards
Paternity leave
-​ Per Diem professional advancement.
-​ Hazard Pay All married male employees are eligible for 7 working
-​ Subsistence Allowance days
-​ Laundry Allowance
Types of leaves
-​ Free Quarters Monetization of Leave Credits
-​ Longevity Pay
-​ Salary Increase for Retirement and Terminal Vacation leave -​ Officials and employees in the career and
Leave Benefit Purposes (13) vacation leave non-career service whether permanent,
temporary, casual or coterminous, who have
accumulated fifteen (15) days of vacation
SALARY GRADE INCREASE PRIOR TO Sick leave Twelve
leave credits shall be allowed to monetize a
RETIREMENT (12) days of sick leave minimum of ten (10) days: Provided, that at
least five (5) days is retained after
-​ Upon Retirement, Personnel shall Privilege Leave monetization and provided further that a
automatically be granted one (1) salary grade
3 days, (Birthday, and other special events) maximum of thirty (30) days may be
higher tha his/her basic salary and retirement
monetized in a given year. (CSC MC 41, s.
benefits shall be computed on the basis of the
highest salary received, pursuant to section 14 Bereavement: 1998)
Three (3) days -​ Sec. 23. Monetization of 50% of Vacation/Sick
or R.A No. 8439.
Leave Credits.
Solo Parent Leave Seven -​ This may be allowed for valid and
Salary Step Increment for Completion justifiable reasons subject to the
of a Postgraduate Degree (7) working days discretion of the agency head and the
availability of funds. [MC 41, s. 1998
-​ In line with Section 34h) of R.A. No. 7305, a Leave for Victims of Violence Against Women
PHW who holds a position in the agency and Their Children
plantilla of regular positions and who
Ten (10) days leave
completes a master's or doctoral degree
related to the performance of the duties and
responsibilities of his/her position after at least
Terminal Leave Philhealth -​ Reward and encourage peak
performance.
-​ Agencies shall also use BP Form 205 to reflect Pag-ibig -​ Achieve internal and external equity.
the terminal leave benefits of FY 2019 retirees. -​ Reduce turnover and encourage
-​ Every employee, employer, members, OFWs
TLB of compulsory retirees whether company loyalty.
must take note of the latest Pagibig
permanent or casual, shall be computed -​ Modify (through negotiations) practices
Contribution Table 2018 below to aid and be
separately from those of optional retirees. of unions
aware how much you are paying to Pagibig
-​ Computation
Fund every month. The usual payment is P100
-​ TLB= S x D x CF
following the maximum compensation set to Under the Law
-​ TLB = Terminal Leave Benefit
5,000.
-​ S- Highest Monthly salary Received
-​ D- No. of accumulated vacation and PHILHEALTH BENEFITS (Ra 7875, as
sick leave credits Compensation and Benefits In the Private Sector amended by RA 9241)
-​ CF-Constant factor is 0.0481927

Compensation
GSIS, PHILHEALTH, AND PAG-IBIG -​ Is a systematic approach to providing
monetary value to employees in exchange for
GSIS work performed.
-​ May achieve several purposes assisting in
-​ Section 11 of the Revised Implementing Rules
recruitment, job performance, and job
and Regulations of RA 8291 approved on
satisfaction
June 23, 2010 under Board Resolution No. 88
-​ Is a tool used by management for a variety of
provides that the rate of contribution payable
purposes to further the existence of the
by the member and the government agency
company. Compensation may be adjusted
shall be nine (9) per cent and 12 per cent,
according to the business needs, goals, and
respectively, based on the actual monthly
available resources
salary of the member.
-​ Compensation may be used to:
-​ Recruit and retain qualified employees.
-​ Increase or maintain
morale/satisfaction.
 employment is violating the SSS law.
Meanwhile, an HR who does the same
can be sued for violation. BENEFITS UNDER THE EMPLOYEES'
-​ If found guilty, the ER/HR is liable to the Ees
and must:
COMPENSATION PROGRAM (PD 626)
-​ Pay the benefits of those who die,
become disabled, get sick or reach Definition
retirement age; -​ is a government program designed to provide
-​ Pay all unpaid contributions plus a a compensation package to public and private
penalty of three (3%) per month; and sector employees or their dependents in the
-​ Be held liable for a criminal offense event of work - related sickness, injury,
punishable by fine and/or imprisonment disability, or death.
Coverage
1. The ECP covers all workers in the formal
sector.
2. Coverage in the ECP starts on the first day
of employment.
SOCIAL SECURITY BENEFITS (RA 3. Employees in the private sector who are
1161, as amended by RA 8282) compulsory members of the Social Security
System (SSS), with employer - employee
-​ Coverage
relationship
-​ A private employee, whether
Benefits
permanent, temporary or provisional
1. Loss of income benefit
-​ Benefits
2. Medical benefits
-​ 1. Sickness
3. Rehabilitation services
-​ 2. Maternity
4. Carer 's allowance
-​ 3. Disability
5. Death and Funeral
-​ 4. Retirement
-​ 5. Death & Funeral
-​ Reminder to Employer
-​ An ER who does not report his/her
EEs, regardless of status of
PAG-IBIG BENEFITS (Republic Act No. -​ Every employee who has rendered at least status (e.g., probationary, regular, contractual,
one (1) year of service whether continuous or project basis)
9679)
broken
-​ 5 days with pay Definition
Contribution -​ May be used for sick and vacation leave -​ shall apply to the first four (4) deliveries of the
-​ The maximum monthly compensation used in purposes. employee's lawful wife with whom he is
computing the employee contributions is -​ Commutable to its money equivalent at the cohabiting
currently set at P5,000. This means that the end of the year. -​ 7 days
maximum member contribution and employer -​ Not convertible and non cumulative
counterpart per month are both currently Maternity Leave (RA 11210)
P100. Conditions
1. He is an employee at the time of the delivery of his
child;
Monthly Employee Percentage of
Compensation Share Monthly 2. He is cohabiting with his spouse at the time that
Compensation she gives birth or suffers a miscarriage;
Employer 3. He has applied for paternity leave with his employer
Share within a reasonable period of time from the expected
date of delivery by his pregnant spouse, or within
1,500 below 1% 2%
such period as may be provided by company rules
Over 1,500 2% 2% and regulations, or by collective bar gaining
agreement; and
4. His wife has given birth or suffered a miscarriage
Benefits
1.​ Savings
2.​ Short Term Loans PARENTAL LEAVE FOR SOLO
3.​ Housing Problems PARENTS (RA 8972)

Service Incentive Leave Paternity Leave Coverage

Coverage Coverage granted to any solo parent or individual who is left
-​ granted to all married male employees in the alone with the responsibility of parenthood due to:
private sector, regardless of their employment 1. Giving birth as a result of rape or, as used by the
law, other crimes against chastity;
2. Death of spouse; a woman with whom the person has or had a
3. Spouse is detained or is serving sentence for a sexual or dating relationship, or with whom he
criminal conviction for at least one (1) year; has a common child, or against her child
4. Physical and/or mental incapacity of spouse as whether legitimate or illegitimate, within or
certified by a public medical practitioner; without the family abode, which will result in or
5. Legal separation or de facto separation from is likely to result in physical, sexual,
spouse for at least one (1) year: Provided that he/she psychological harm or suffering, or economic
is entrusted with the custody of the children; abuse including threats of such acts, battery,
6. Declaration of nullity or annulment of marriage as assault, coercion, harassment or arbitrary
decreed by a court or by a church: Provided, that deprivation of liberty.
he/she is entrusted with the custody of the children; -​ The leave benefit shall cover the days that the
7. Abandonment of spouse for at least one (1) year; woman employee has to attend to medical and
8. Unmarried father/mother who has preferred to keep legal concerns. 10 days provided certification
and rear his/her child/children, instead of having from barangay/clerk of court is submitted to
others care for them or give them up to a welfare employer
institution; -​ Not convertible and non cumulative
9. Any other person who solely provides parental care
and support to a child or children: Provided, that
he/she is duly licensed as a foster parent by the Special Leave for Women (RA 9710)
Department of Social Welfare and Development
(DSWD) or duly appointed legal guardian by the court; Coverage
and -​ All female employee regardless of age and
10. Any family member who assumes the LEAVE FOR VICTIMS OF VIOLENCE civil status
responsibility of head of family as a result of the AGAINST WOMEN AND THEIR Definition
death, abandonment, disappearance, or prolonged -​ The special leave shall be granted to the
CHILDREN (RA 9262)
absence of the parents or solo parent: Provided, that qualified employee after she has undergone
such abandonment, disappearance, or prolonged -​ "Violence against women and their children," surgery without prejudice to an employer
absence lasts for at least one (1) year as used in Republic Act 9262 (the "Anti - allowing an employee to receive her pay
-​ Assessed by DSDW Violence Against Women and Their Children before or during the surgery.
Act of 2004"), "refers to any act or a series of -​ 2 months
acts committed by any person against a -​ Not convertible and non cumulative
woman who is his wife, former wife, or against Conditions
 -​ She has rendered at least six (6) months practice or policy of monitoring and pooling -​ The following income of MWEs shall also be
continuous aggregate employment service for tips given voluntarily by its customers to its exempt from income tax:
the last twelve (12) months prior to surgery; employees, the pooled tips should be 1. Statutory Minimum Wage (SMW)
-​ She has filed an application for special leave monitored, accounted, and distributed in the inclusive of the COLA;
with her employer within a reasonable period same manner as the service charges. 2. Holiday pay;
of time from the expected date of surgery or 3. Overtime pay;
within such period as may be provided by 4. Night shift differential pay; and
company rules and regulations or collective Minimum Wage 5. Hazard pay.
bar gaining agreement; and
-​ She has undergone surgery due to -​ Republic Act No. 6727 (also known as the ( Search nalang minimum wage sa manila kasi
gynecological disorders as certified by a "Wage Rationalization Act") mandates the Pampanga nasa PPT ni sir)
competent physician. fixing of the minimum wages applicable to
different industrial sectors, namely, non
agriculture, agriculture plantation, and non
SERVICE CHARGES HOLIDAY PAY
plantation, cottage/handicraft, and
Sharing retail/service, depending on the number of Regular Holidays
-​ All rank-and-file employees of employers and workers or capitalization or annual gross sales -​ Every employee covered by the Holiday Pay
contractors working therein a collecting service in some sectors. Rule is entitled to the minimum wage rate
charges are entitled to an equal share in the Coverage (daily basic wage and COLA). This means that
eighty-five percent (85%) of the total of such -​ The wage increases prescribed under Wage the employee is entitled to at least 100% of
charges. The remaining fifteen percent (15%) Orders apply to all private sector workers and his/her minimum wage rate even if he/she did
of the charges may be retained by employees receiving the daily minimum wage not report for work, provided he/she is
management to answer for losses and rates present or is on leave of absence with pay
breakages and for distribution to managerial Basis on the work day immediately preceding the
employees, at the discretion of the -​ The basis of the minimum wage rates holiday.
management in the latter case. Service prescribed by law shall be the normal working
charges are collected by most hotels and hours of eight (8) hours a day.
some restaurants, nightclubs, cocktail lounges, Coverage from Income Tax of Minimum Wage
among others. Earners
Tips -​ Minimum wage earners (MWEs) are exempt
-​ Where a restaurant or similar establishment from income tax
does not collect service charges but has a
 Overtime Pay (Article 87) THIRTEENTH -MONTH PAY (PD 851)
Definition Coverage
-​ Overtime pay refers to the additional -​ All employers are required to pay their rank
compensation for work performed beyond and file employees thirteenth-month pay,
eight (8) hours a day. regardless of the nature of their employment
Coverage and irrespective of the methods by which their
-​ Same as those covered under 3. Premium wages are paid, provided they worked for at
Pay. least one (1) month during a calendar year.
The thirteenth- month pay should be given to
the employees not later than December 24 of
Night Shift Differential every year.
PREMIUM PAY
Definition
Special Days -​ Refers to the additional compensation of 10%
SEPARATION PAY
-​ The "no work, no pay" principle applies during of an employee's regular wage for each hour
special days and on such other special days of work performed between 10pm to 6 am Coverage
as may be proclaimed by the President or by (Private). 6pm to 6am (Public). -​ An employee's entitlement to separation pay
Congress. Coverage depends on the reason or ground for the
-​ This benefit applies to all employees except: termination of his or her services. An
-​ 1. Government employees employee may be terminated for just cause,
-​ 2. Those of retail and service and other similar causes, generally, may not
establishments regularly employing not be entitled to separation pay. On the other
more than five (5) workers; hand, where the termination is for authorized
-​ 3. Kasambahay and persons in the causes, separation pay is due.
personal service of another; Basis
-​ 4. Managerial employees -​ The computation of separation pay of an
-​ 5. Officers or members of a managerial employee shall be based on his/her latest
staff salary rate.
-​ 6. Field personnel and those whose
time and performance are
unsupervised by the employer
RETIREMENT PAY (Article 302mm)
Coverage
1. Employees shall be retired upon reaching the age
of sixty (60) years or more but not beyond sixty - five
(65) years old [and have served the establishment for
at least five (5) years]
2. This benefit applies to all employees except:
1. government employees;
2. employees of retail, service and agricultural
establishments/operations regularly employing
not more than ten (10) employees