CHAPTER 7: MOTIVATION

APPROACHES TO MOTIVATION
MOTIVATION
- are forces either within or external to a person that arouse
enthusiasm and persistence to pursue a certain course of action.
FACTORS INFLUENCING MOTIVATION
1. Individual differences
2. Job Characteristics - job limitation and challenges
a) Variety of skills required to job
b) Degree to which employee can do the entire task from the
start to finish
c) Significance of attributed to the job
d) Autonomy
e) Type and extent of performance feedback
3. Organizational Practices - policies defining benefits and rewards
1. Content Perspective
- What factor or factors motivate people?"
- The biggest approach is the need hierarchy with many
different theories underneath that particular approach.
- The problem is that it does not look at how motivation actually
works. It only looks at the person and what their needs are.
2. Process Perspective
- Why people choose certain behavioural options to fulfill their
needs and how they evaluate their satisfaction after they have
attained these goals.
- Each theory within in it has to deal with a certain reward
which is the only way that your employee are motivated are.
- Within this same perspective, goals are introduced as internal
motivator.

SUGGESTION FOR MOTIVATING EMPLOYEES ERG THEORY (Clayton Paul Alderfer)

1. Recognize individual differences. - Developed Maslow's hierarchy of needs
2. Match people to jobs.
3. Use goals and feedback. THREE CATEGORIES OF NEEDS:
4. Ensure that goals are perceived as attainable. 1. Existence needs - needs for physical well-being.
5. Individualize Rewards.
- Include Maslows physiological and safety needs.
6. Link rewards to performance.
2. Relatedness needs - the needs for satisfactory relationships with
7. Check the system for equity.
others.
8. Allow employees to participate in decisions that affect them.
 - Include Maslow's social need and the
external esteem.
3. Growth needs - needs for development of
human potential, personal growth and
competence
- Include Maslows intrinsic esteem and
self-actualization.
DIFFERENCE BETWEEN MASLOW
NEED HIERARCHY THEORY AND
ALDERFERS ERG THEORY
MASLOW
- Individual remains at a particular need
level until that need is satisfied.
- Rigid - needs follow a specific and
orderly hierarchy and unless a lower
level need is satisfied, an individual
cannot proceed to the higher-level need.
ERG THEORY
- FRUSTRATION- REGRESSION - if
a higher-level need aggravates, an
individual may revert to increase the
satisfaction of a lower level need. Thus,
it can result in regression to a lower-
level need.
- Very Flexible - needs as
range/variety. An individual can work
on growth needs even if his existence or
relatedness needs remain unsatisfied.
MC CLELLAND NEEDS
MOTIVATIONAL DRIVES it is a persons
strong desires for something as a product of
cultural environment in which they live.
THREE MOTIVATIONAL DRIVES
1. Achievement Motivation drive to
accomplish objective and get ahead.
- Accomplishment is more important
than the rewards.
2. Affiliation Motivation - drive to relate to
people effectively.
- People perform work best when they are
complimented and appreciated.
3. Power Motivation - drive to influence
people & change situation.
PERSONAL POWER- Controlling others
Institutional power and organizing the efforts
of a team.
HERZBERG TWO-FACTOR THEORY
(Frederick Herzberg 1950)
- Factors that causes job satisfaction and
job dissatisfaction.
a HERZBERG TWO-FACTOR
1. Hygiene Factors
- Job factors which are essential for
existence of motivation.
- It yields negative satisfaction.
- Also called as dissatisfiers or
maintenance factors.
 COMPONENTS OF HYGIENE FACTOR - Safety (desire for stable job/
Pay employment, health care, safe
Company policies neighborhoods and shelter.)
Physical Working Condition 3. Social needs
Interpersonal Relations - Love and affection. Relationships such
Job Security. as friendships, romantic attachments
2. Motivational Factors and families help fulfill this need for
- Cannot be regarded as motivators. It companionship and acceptance as do
yields positive satisfaction. These involvement in social, community and
factors motivate employees for a religious groups.
superior performance. 4. Personal/ Self esteem
- Also called as satisfiers. - Need for things that reflect self-esteem-
COMPONENTS OF MOTIVATIONAL personal worth, social recognition and
FACTOR accomplishment.
Recognition 5. Self-actualization
Sense of Achievement - This is the desire to accomplish
Growth and Promotional everything that one can, to become
opportunities most that one can be. Self-actualized
Responsibility people are self- aware, concerned with
Meaningfulness of the Work personal growth, no insecurity,
emphasizing less concerned in others
MASLOW HIERARCHY OF NEEDS opinions and were interested in
(Abraham Maslow) fulfilling their potentials.
We are motivated to achieve certain -
needs w/c appears to be in a hierarchical 2 TYPES OF NEEDS
order. Basic needs first before moving on a 1. Deficiency needs (D-needs)
more advanced needs. - These needs arise due to deprivation.
5 LEVELS OF HIERARCHY OF NEEDS These are the first four- physiological,
1. Physiological needs security, social and self-esteem needs.
- Needs essential for our survival Satisfying this lower level needs is
(water, air , food, sleep and so on) important to avoid unpleasant feelings
2. Security or Safety needs or consequences.
2. Growth needs or Being needs (B-needs) 1. Valence - strength of a persons preference
- These needs stem from a desire to grow for receiving a reward.
as a person.
2. Expectancy - strength of belief that one's
- This consists of the highest-level need
work related effort will result in a
or the self-actualizing needs. completion of a task

3. Instrumentality - employee's belief that a

Mc GREGOR THEORY X AND Y (Douglas
reward will be received once the task is
Mc Gregor in 1960)
accomplished. It is a subjective judgment
THEORY X
of an employee.
People dislike work and try to avoid it
EQUITY THEORY
whenever possible
- A process theory that focuses on
Employees do not want responsibilities.
individuals perceptions of how fairly
Employees resist change.
or equally they are treated compared
People prefer to be directed, or
with others.
threatened with punishment in order to
GOAL SETTING THEORY (Edwin Locke)
get them to achieve organizational
- Challenging goals increase motivation
goals.
Managers adopt a more dictatorial style. at performance. Those goals give

THEORY Y direction to an employee about the

Work is a natural as play and rest. needs to be done and how much efforts

People will exercise self-direction. are required to put in.

Employees learn to accept and seek GOAL-SETTING THEORY FEATURES

responsibility a) Willingness to work towards attainment

Employees have skills and capabilities. of goal

b) Specific and clear goals lead to a greater

EXPECTANCY THEORY (Victor H. Broom) output and better performance

c) Goals should be realistic and
- Motivation is a product of three factors
challenging
and these three are: valence, expectancy
d) Better and appropriate feedback of
and instrumentality.
results directs the employees behaviour
THREE-FACTORS OF
and contributes to higher performance
EXPECTANCY THEORY
e) Employees participation is not always
desirable
 f) Participation of setting goal, makes goal 6. Other Expenditure
more acceptable by the employee.
NON-TAXABLE BENEFITS
- Fringe benefits which are authorize and
exempt from tax under special laws.
- Contribution of the employer for the
benefits of the employees to retirement,
insurance and hospitalization and
hospitalization benefit plans.
- Benefits given to rank and file
employees, weather granted under a
collective bargaining or not.
- De minimis benefits
- Benefits required by the nature of or
CHAPTER 8: EMPLOYEE BENEFITS necessary to the conduct of trade or
AND INCENTIVES business or profession
- Benefits under employer convenience
FRINGE BENEFIT rule
- A special form of benefits provide for
employees in addition to their salaries CLASSIFICATION OF EMPLOYEE
and wages. BENEFITS AND SERVICES
- It means any goods, services or other
benefits furnished or granted in cash or I. MANDATED BENEFITS
in kind by an employer. - Also known as "mandated health
insurance benefits".
CLASSIFICATION OF FRINGE - Benefits that are required to cover the
BENEFITS treatment of specific health
1. Premium Payments conditions, certain types of healthcare
2. Payment for Special Duties providers, and some categories of
3. Payment for Health and Security dependents, such as children placed for
Benefits adoption.
4. Payment for Time Not Worked TYPES OF MANDATED BENEFITS
5. Payment for Employee Service
1. Government Service Insurance System
(GSIS)/ Social Security System (SSS) DIFFERENT VOLUNTARY BENEFITS
2. Compensation of Employees (CE) COVERAGE
3. 13th Month Pay 1. Accident Coverage
4. Paid Vacation and Paid Holiday 2. Cancer and Critical Illness Coverage
5. Retirement Benefits 3. Disability Coverage
6. PAG-IBIG Fund 4. Life Insurance Coverage
7. Sickness and Health program
8. Paternity Leave
9. Retirement Income
10. Classification of Employee Benefits and COLLECTIVE BARGAINING
Services - A good-faith business mechanism people
use to reach an agreement. Through basic
II. PERSONAL SERVICES BENEFITS communication and other techniques, the
1. Credit Unions people involved find solution to work-
2. Counselling Services related issues.
3. Other Personal Services - Advantage of Collective Bargaining
By reaching formal agreement, both
III.JOB RELATED SERVICE sides come to knew exactly what to
1. Free uniform expect from each other and aware of the
2. Subsidize or free employee rights they have.
transportation - Disadvantages of Collective Bargaining
3. Food services/Cafeteria Costly in both times and money.
4. Stock ownership plans People can be overshadowed especially
in workforce.
IV. EXECUTIVE PREREQUISITES/ TYPES OF COLLECTIVE BARGAINING
PERKS 1. Periodic
2. Continuous (Rolling style)
VOLUNTARY BENEFITS EMPLOYEE SERVICES
- Insurance products that employees may 1. Services related to the types of work
choose to purchase through their performed
companies at rates that are lower than they 2. Eating facilities
could get on their own.
3. Transportation facilities - The ability of a person to do
4. Child Care facilities something.
5. Housing services - Creating the circumstances where
6. Financial and legal services people can use their faculties and
7. Purchasing services abilities at the maximum level in the
8. Education services pursuit of common goals.
9. Medical services
10. Outplacement services 2. CULTURAL
11. Flexi time Relating to the representation of non-
CHAPTER 9: SAFETY AND HEALTH physical traits such as values, beliefs,
attitudes and customs shared by a group of
I. FACTORS AFFECTING EMPLOYEE people and passed from one generation to
HEALTH the next
1. POLITICAL
Involves one leadership, how he/she Practices
rules, manages and involves other people in - A customary action usually done to
decision-making. maintain or promote health like use of
Safety anting-anting or lucky charms.
- Being free from harm, and injury Beliefs
loss. - A state of habit or mind wherein a group
- Protection from exploitative of people place a trust into something
working conditions and expanding or a person.
access to social security. 3. HEREDITY
Oppression The genetic transmission of traits from
- Unjust or cruel exercise of parents to offspring genetically determined.
authority of power. 4. ENVIRONMENT
Political Will It is the sum total of all conditions and
- Determination to pursue of elements that make up the surroundings and
something which is in the interest influence the development of an individual.
of majority. 5. SOCIO-ECONOMIC
Empowerment
 This refers to the production activities, sustains and satisfies the physical, economic,
distribution and consumption of goods by psycho-social and spiritual well-being of the
individuals. employees and promotes harmonious
relationship between employees and
II. OBJECTIVES OF SAFETY management to enhance their dignity for a more
MANAGEMENT responsible public service.
Safety management practices keep employees Equality Act 2010 protects people from
free from risks and hazards in the workplace discrimination in the workplace and in
that can threaten their health and safety. wider society.
Health and safety management aims to avoid It replaced previous anti-discrimination
loss through the systematic use of techniques to laws like Disability Discrimination Act
identify and remove hazard, the control of risks of 1995.
which remain and the use of techniques to Employers and service providers make
influence the behavior that encourage safe reasonable adjustments to ensure that a
attitude. This is the primary responsibility of person with a disability is not substantially
management. disadvantaged compared with a non-
disabled person.
Reasonable Adjustments
HEALTH AND SAFETY OBJECTIVES Support people with mental health problems
To provide and maintain a working to stay productive at work.
environment that is safe and without risk for Some suggestions for reasonable working
the health of everyone. adjustments include:
To avoid all accidents and to ensure that no Flexible conditions flexible start times to
one suffers ill as a result of working. avoid travelling during difficult times or in
To plan and manage activities so that difficult conditions such as rush hour, part-
hazards are assessed and risks are time working, rest breaks, working from
eliminated in a practicable and appropriate home.
way of prevention measures. Changes to your role or reallocating some
work tasks to reduce stress and
III.RESONABLE WORKING CONDITION accommodate any limitation such as
Pertains to the humane and acceptable stepping back from a high pressured
working environment that promotes, develops, management or project management role.
 Physical changes to the work Construction accident takes place on a
environment changing the office lighting construction site that repairs construction,
or partitioning the workspace to help make or restorative actions are taking place.
it easier to stay focused on tasks. Some Examples: crush injury, finger and leg
people like a busy, noisy work environment; amputation, hypovolemia (hypovolemic
other find lack of contact with others is shock), shift workers injuries and
detrimental. depression

1. Adaptive device such as V. HAZARDS IN THE WORKPLACE

electronic and graphic organizers which Health and safety hazards exist in every
can be set to remind you of tasks or to workplace. Some are easily identified and
take a break. corrected while others create extremely
2. Enabling time-off either set dangerous situations that could be a threat to
times or more flexibility to attend your life or long-term health. The best way to
therapeutic sessions, treatment, protect yourself is to learn to recognize and
assessment and/or rehabilitation. prevent hazards in your workplace.
3. Identify training needs and
provide support to develop skills FOUR MAIN TYPES OF WORKPLACE
that can be of the individual and their HAZARDS:
colleagues; e.g. specific job 1. Physical hazards are the most common
requirements and/or around skills hazards and are present in most workplaces
enhancement such as communication at some time.
skills or time management. Examples: frayed electrical cords,
unguarded machinery, exposed moving
IV. TYPES OF WORK RELATED parts, constant loud noise, vibrations,
ACCIDENTS working from ladders, scaffolding or
Industrial accidents are result of the heights, spills, tripping hazards.
unsafe use of machinery or equipment and 2. Ergonomic hazards occur when the type
it cause great damage of injury or loss of of work you do, your body position and/or
life. your working conditions put a strain on
your body. They are difficult to identify
because you dont immediately recognize
the harm they are doing to your health.
 Examples: poor lighting, improperly standing or working under suspended loads, scaffolds,
adjusted workstations and chairs, frequent open hatches
lifting, repetitive or awkward movements.
3. Chemical hazards are present when you CAUSES OF WORK-RELATED

are exposed to any chemical preparation ACCIDENTS/ILLNESS

(solid, liquid or gas) in the workplace. (WORKPLACE HAZARDS)

Examples: cleaning products and solvents, -manual handling -head

vapours and fumes, carbon monoxide or injury

other gases, gasoline or other flammable -trips, slips or falls -neck

materials. injury

4. Biological hazards come from working -electrical accidents -repetitive

with people, animals or infectious plant strain injury

material. -sprains or strains -

Examples: blood or other bodily fluids, occupational asthma

bacteria and viruses, insect bites, animal -back injury -vibration

and bird droppings. white finger

-sitting for long periods -exposure
UNSAFE WORK PRACTICES to harmful chemicals
COMMONLY FOUND IN WORKPLACE. A. UNSAFE WORKING
using machinery or tools without authority CONDITIONS
operating at unsafe speeds or in violation of safe work practices
A condition in the workplace that likely
removing or disabling guards or other safety devices on machinery
to cause property damage or injury.
or equipment
using defective tools or equipment or using tools or Examples:
equipment indefective tools, equipment or
unsafe ways supplies, hazardous atmospheric (Poor
using hands or body instead of tools or push sticks housekeeping), inadequate supports or guards
overloading, crowding or failing to balance materials or handling
conditions, excessive noise, congestion in the
materials in other unsafe ways, including improper lifting
workplace, poor ventilation, inadequate
repairing or adjusting equipment that is in motion, under pressure,
warning systems, fire and explosion hazards.
or electrically charged
failing to use and/or maintain, or improperly using personal
protective equipment or safety devices b. OTHER WORK-RELATED FACTORS
creating unsafe, unsanitary or unhealthy conditions by improperinvolving ergonomic risk factors
Activities
personal hygiene, poor workplace maintenance or by can
smoking in to increase discomfort. Note
contribute
unauthorized areas
 that combining risk factors will Crucially, a healthy work environment
exponentially increase your risk of injury. and preventative maintenance of staff also
RISK FACTORS THAT INCREASES THE leads to greater feelings of well being,
RISK OF DISCOMFORT increased productivity and reduced
1. Fixed and constrained/ Static postures absenteeism.
A position which is maintained for a long
period of time without moving. It requires Benefits include:
constant muscular contraction or tension to Happier and healthier employees
keep the body in that position. This can lead Easier to attract and maintain staff
to fatigue or strain because the human body Increased profits
are designed to move. Highly motivated and productive staff
It includes: Low back stress and muscular
Greater collaboration, increased creativity
tension
and innovation
2. Repetitive Motion or Movement
Significant reductions in staff costs
These movements strain and gradually
Reduced management costs absenteeism
cause wear and tear and tendons in the
and presenteeism.
forearms, wrists, and fingers because you
are repeatedly using the same muscles to do
B. Health examinations
the same movement for a prolonged period
7 Major Health Examinations
of time.
1. Eye examination / vision testing
It includes: typing, filing, sewing and meat
2. Hearing test
packing
3. Dental exam
3. A high pace of work.
4. Pulse rate
It includes: having tight deadlines, knowing
5. Mental exam
your performance is being monitored by
6. Measuring the weight
some electronic system.
7. Measuring of height

VI. SAFETY PROGRAMS

C. Diagnosis and treatment
Below are some examples of safety
Medical diagnosis is the process of
programs that may be acquired by companies to
attempting to determine or identify a
ensure the safety and health of their employees:
possible disease or disorder.
A. Maintenance of healthful work
environment
 It involves Classification Tests which is legally and medically acceptable family
a major component of, for example, planning methods.
the procedure of a doctor's visit. Treatment is The program is anchored on the following basic
the techniques or actions customarily applied in principles.
a specified situation Responsible Parenthood - determining the
desired number of children they might have
D. Medical records and when they might have them.

The systematic documentation of a Responsible Parenting - proper upbringing

single patient's medical history and care across and education of children so that they grow
time within one particular health care provider's up to be upright, productive and civic-
jurisdiction. It includes recording observations minded citizens.
and administration of drugs and therapies, Respect for Life - Abortion is NOT a FP
orders for the administration of drugs and method:
therapies, test results, x-rays, reports, etc. Birth Spacing - interval between
E. Health education and counseling pregnancies (ideally 3 years)
G. Physical fitness programs
Health education is the profession of
educating people about health. It can be defined Philippine Physical Fitness Test

as the principle by which individuals and A test designed to measure physical

groups of people learn to behave in a manner strength, agility, and endurance.

conducive to the promotion, maintenance, or Protective clothing and devices

restoration of health. MEANS TO PROMOTE INDUSTRIAL

SAFETY
F. Family planning programs
By regulations- mandatory prescriptions
A national mandated priority public health
By standardization- the laying down
program to attain the country's national health
official, semi-official or unofficial standards
development: a health intervention program and
By inspection- the enforcement of
an important tool for the improvement of the
mandatory regulations
health and welfare of mothers, children and
other members of the family. It also provides By technical research- investigation of

information and services for the couples of properties and characteristics of harmful

reproductive age to plan their family according materials

to their beliefs and circumstances through By education-involves teaching of things

related to safety and health
 By training-practical method for workers Comply with federal and state safety and
By persuasion-the employment of various health requirements.
methods of publicity and appeal to develop Become more effective at their jobs.
safety mindedness Management experts believe that the
By insurance- provision of financial company with a well-managed safety and
incentives health program enjoys better overall

By safety measures within the individual management.

Increase productivity rates and assure

VII. BENEFITS OF EFFECTIVE product quality.

SAFETY AND HEALTH PROGRAMS Your Business as a Whole

Reduce injuries & illnesses An exemplary workplace safety and health

Improve morale & productivity management system is "good business sense"

Reduce workers compensation costs that also makes financial sense because it will

Show good faith efforts allow you to:

WHO BENEFITS FROM EFFECTIVE Learn first-hand that the cost of accident

SAFETY AND HEALTH PROGRAMS prevention is far lower than the cost of

Your workforce accidents..

An effective workplace safety and health Improve the bottom line by:

management program will enable you to: Lowering injury and illness rates,

Recognize and remove hazards from your Decreasing workers compensation

workplace. costs,

Protect your workers from injury and Reducing lost workdays, and

illness. Limiting equipment damage and

Prevent loss of life at your worksite. product losses.

Cultivate informed and alert employees MAJOR ELEMENTS OF SAFETY AND

who take responsibility for their own and HEALTH PROGRAMS

their coworkers safety Management commitment & employee

Improve employee morale. involvement

Your Managers Management commitment and

An increased understanding of workplace employee involvement go hand in

hazards and remedies will put your managers in hand because one is not effective

a better position to: without the other.

 Management commitment provides
motivation and resources
Employee involvement allows
workers to develop and express
commitment to safety and health
Worksite analysis
Management must provide resources
to conduct a worksite analysis looking for
any existing hazards.
Hazard prevention & control
STEPS:
Start by determining that a hazard or
potential hazard exists
Conduct Hazards Assessment
Where feasible, prevent hazards by
effective design of job or job site
If the hazard cannot be eliminated, use
hazard controls
Eliminate or control hazards in a timely
manner
HIERARCHY OF CONTROL
Engineering controls
The first and best strategy is to
control the hazard at its source.
Remove Employee from
Hazard
Guards
Barriers
Work Area Design
Administrative controls
Includes exercise breaks and
rotation of workers. These types
of controls are normally used in
conjunction with other controls.
Procedures
Rotation
Breaks
Relief Workers
-Safe work practices communicated via
training, positive reinforcement,
correction of unsafe performance, and
enforcement
Include your companys general
workplace rules and other operation-
specific rules. For example, even when
a hazard is enclosed, exposure can occur
when maintenance is necessary.
-Personal Protective Equipment
PPE, such as respiratory
protection and protective clothing, is
last resort and should be used ONLY
when hazard exposure cannot be
engineered completely out, and when
other forms of control are insufficient.
Remember, PPE is the last level of
control.
Safety and health training
Training is the backbone of this
system. For management to lead, and for
employees to follow safe work practices,
they must be adequately trained.
Who Needs Training?
Everyone, beginning with the new hire.
Before an employee can perform his
expected duties, he must have training,
 as required by certain OSHA standards, c) Sunburn
such as Fire Extinguishers, HAZCOM, d) Skin Cancer-
PPE, Confined Space, etc. Other diseases of concern:
There are approximately 10 OSHA 3. Carpal tunnel Syndrome poultry industry
standards which require annual training and information technology.
for employees. Training should not be 4. Computer Vision Syndrome - persons using
limited to the shop or field worker. ALL information technology for hours.
employees, including office personnel, 5. Lead Poisoning due to lead or lead
must receive training. compounds.
Supervisors should receive additional
training on how to perform their jobs, as VIII. FORMS OF COMPENSATION
well as their liability and responsibility BENEFIT GIVEN TO EMPLOYEES
for safety. They should be made to Cash income
understand that they can be held legally Medical and related services
liable for accidents and injuries. Rehabilitation for permanent disabilities
1. Cash income benefit for temporary total
VII. MAJOR CATEGORIES OF disability
OCCUPATIONAL ILLNESS 2. Monthly cash income benefit for
Occupational disease is an illness permanent partial disability
resulting from long-term employment in a 3. Death- monthly cash income benefit for
particular type of work. death, also on a lifetime basis to the
MOST COMMON DISEASES primary or secondary beneficiaries
1. Lung disease 4. Medical Services, appliances and/or
a) Black Lung Disease - due to inhaled supplies for injury or sickness
coal dust 5. Rehabilitation services for permanent
b) Asbestosis - due to asbestos insulation. disability
c) Silicosis due to inhalation of silica Occupational diseases
dust. - Any disease contracted as a result of an
d) Byssinosis- associated with inhalation exposure to risk factor arising from work
of cotton, flax or hemp dust. activity.
2. Skin disease - According to ILO (International Labour
a) Eczema Office) the defined of OD have 2 main
b) Uticaria (Hives)
 elements: the casual relationship between
exposure in a specific working environment
of work activity and a specific disease, and
the fact that the disease occurs among a
group of exposed person with a frequency
above the average morbidity of the rest of
the population.
List of occupational diseases
1. Diseases caused by agents
1.1 Diseases caused by chemical
agents
1.2 Diseases caused by physical agents
1.3 Diseases caused by biological
agents
IX. Occupational Diseases
1. Cancer of the epithelial lining of bladder
2. Cancer, epithellomatous or ulceration of the
skin or of corneal surface of the eye
3. Cataract
4. Deafness
5. Decompression Sickness
a. Caissons Disease
6. Dermatitis Due To Irritants And Sensitizers
7. Infections
a) Anthrax
b) Glanders
c) Rabies
d) Tuberculosis
e) Tularemia
f) Weills disease
g) Mite dermatitis
8. Ionizing radiation disease, inflammation,
ulceration or malignant disease of skin or
subcutaneous tissues of the bones or
leukemia, or anemia of the aplastic type
9. Poisoning and its sequelae
10. Pneumoconiosis
11. Diseases caused by abnormalities in
temperature and humidity
12. Vascular disturbance in the upper
extremities
13. Viral hepatitis
14. Poisoning by cadmium
15. Leukemia and lymphoma
16. Cancer of stomach & other lymphatic &
blood forming vessels; nasal cavity & sinuses
17. Cancer of the lungs, liver and brain
18. Cardio Vascular Diseases
19. Cerebro Vascular Accidents
20. Malaria And Schistosomiasis
21. Pneumonia
22. Hernia
23. Bronchial Asthma
24. Osteoarthritis
26. Peptic Ulcer
27. Pulmonary Tuberculosis
28. Viral Hepatitis
29. Essential Hypertension
30. Asbestosis
Chapter 10:
LABOR MANAGEMENT RELATION

Labor Management relation

Interaction between the top and middle
officers on one hand and the rank and
file workers on the other as affected by
and as a result of internal and external
force of organization.
It includes the pattern of collaboration,
cooperation, competition, compromise,
avoidance, conflict between the officers
and workers in any type of organization.
It exists in a corporation or in a small-
scale enterprise.
In industry and business, it referred as
industrial relations or labor relations.
Labor Relations
Managing unionized employment
situations.
In academia, labor relations is
frequently a subarea within industrial
relations, though scholars from many
disciplines--including economics,
sociology, history, law, and political
science--also study labor unions and
labor movements.
In practice, labor relations is frequently
a subarea within human resource
management.
Labor Relations Process
1. Workers desire collective representation
2. Union begins its organizing campaign
3. Collective negotiations lead
contract
4. The contract is administered
Labor Union - An organization of wage
earners formed for the purpose of serving the
members' interests with respect to wages and
working conditions.
Trade or Labor unions in the Philippines
are organizations sanctioned by Labor
Code of the Philippines
acknowledgment of Filipino workers
freedom to self-organize.
In the Philippines, TUCP (Trade Union
Congress of the Philippines) is the
largest union and confederation of 30
labor federations in the country which
come from a wide range of sectors. As
of 2009, there are a total of 34,320
unions with consist of
summing up to 2.6 million.
Union Objectives
Increased Income
A prime objective of labor unions is to
ensure the maximum pay for members. Labor
activist believe that employees have a share in
the companys success and that they should be
rewarded for increase in productivity.
Improved Working Conditions
Labor unions also strive to secure better
to a
working conditions for their members. They
demand shorter working days or work weeks
along with the secure working environments.
Services to Members
To increase their impact in the society and
the wider economy, labor unions provide
various services beyond members job security
and safety. These securities include provision of
education and training to apprise union
as an members of their employment rights and to
improve their basic skills. Labor unions also
provide legal assistance to members who
believe their dismissal was unfair and
unjustified.
Dispute Resolution
Even when the labor union and management of
an organization settle on terms for employment,
disputes still can occur.
members
Why Employees Unionize
As a result of economic needs (wages
and benefits)
Dissatisfaction with managerial
practices
 To fulfill social and status needs.
Unionism is viewed as a way to achieve
results they cannot achieve acting
individually
To comply with union-shop provisions
of the labor agreement in effect where
they work
How Employees Become Unionized
1. Bargaining Unit
a. A group of two or more
employees who share common
employment interests and
conditions and may reasonably
be grouped together for purposes
of collective bargaining.
2. Exclusive Representation
a. The legal right and responsibility
of the union to represent all
bargaining unit members
equally, regardless of whether
employees join the union or not.
Employer Tactics Opposing Unionization
Stressing favorable employer-employee
relationship experienced without
union.
Emphasize current advantages in wages,
benefits, or working conditions the
employees may enjoy
Emphasize unfavorable aspects of
unionism: strikes, union dues, abuses of
legal rights
Use statistics to show that unions
commit large numbers of unfair labor
practices.
Initiate legal action when union
members and leaders engage in unfair
labor practices
Impact of Unionization on Managers
1. Challenges to Management
Prerogatives
a. Management prerogatives versus
union participation in decision-
making in the work place.
2. Loss of Supervisory Authority
a. Constraints on management in
directing and disciplining the
work force by terms of the
collective bargaining agreement.
Labor Disputes - are defined as situation when
there are controversies surrounding negotiations
and arranging of the terms and condition of
employment.
a
-Controversy between an employer and
its employees regarding the terms (such
as conditions of employment.
Practices that Irritates Workers and
Employers
 The desire of employers to generate as protection of the law and that the
economically as possible in their efforts government will always be on their side.
to make profits, while neglecting the
Strikes and lockouts
welfare of the workers.
Modern business management practices Strike action, also called labor strike, on
of overloading the payroll with high- strike, greve (of French: grve), or simply
salaried executives, technicians, and strike, is a work stoppage caused by the mass
consultants, while scrimping on refusal of employees to work. A strike usually
workers wages. takes place in response to employee grievances.
Management indifference and
Strikes became important during the Industrial
arbitrariness in dealing with workers.
Revolution, when mass labor became important
Managements resentment of the undue
in factories and mines. In most countries, strike
protection as the government of
actions were quickly made illegal, as factory
employees and unions through places of
owners had far more political power than
legislation.
workers. Most western countries partially
legalized striking in the late 19th or early 20th
Practices or acts of labor, on the other hand, are centuries.
sources of irritants to employers:
A lockout is a temporary work stoppage or
The shift of workers loyalty from denial of employment during a labor dispute
management to union. initiated by the management of a company.
The reduction in management rights to
discipline or even just to deal with
employees, once they become union
members.
Inter-union and intra-union rivalries Rights of Labors
which make labor relations uncertain
Labor rights or workers' rights are a
and create difficulties for management.
Acts of harassment by the union by way group of legal rights and claimed human rights

of filling of all kinds of complaints and having to do with labor relations between

grievances with the grievances workers and their employers, usually obtained

machinery. under labor and employment law.

Abuses of some employees because of
Protection of the state
their belief that they enjoy the Full employment
 Equal work opportunities Right to Security of Tenure
regardless of sex, race and creed
Tenure the regular and permanent status
Rights to self-organization- the
given to a worker who has passed
right to form, join, and assist a
satisfactorily the probation period as set
labor union.
Right to Collective Bargaining by management

It can be enjoyed if the following steps Two Important Features

are followed:
A worker can be separated from
Organization of workers the organization only for a just
Registration with the
cause
governments Bureau of Due process should be afforded
Labor Relations (BLR) of the worker before he is separated
the Department of Labor and from the organization
Employment (DOLE)
Scope of the labor laws in the Philippines
Recognition of union by
Labor Laws The function of labor
management
laws is to set up minimal standards
Negotiation of the Collective
under which organizations operate
Bargaining Agreement
for workers.
(CBA)
Items that is included:
Wages
Hours of work
So far, Labor law in the Philippines covered the
Administration of the
following items:
Collective Bargaining
Agreement (CBA) 1. Labor standards: wages, hour, health, safety
Re-negotiation of the
Collective Bargaining 2. Labor relations: management-union relations

Agreement (CBA) 3. Social insurance: SSS, GSIS, Pag-ibig, ECC

Right of Just and Humane Conditions Philippine Organizations Financing Trade

Fair and just wages
Unions
Hours and place of work
Terms and conditions of
1. American Association of Federated
employment that benefit human
Labor Institute (AAFLI)
beings
 2. Frederick Ebert Stiftung (FES) is tasked with the enforcement of the provisions
Socialist group of West Germany of the Labor Code.

3. Konrad Adenauer (KA) Christian The responsibilities of the Department of

Socialist group of Germany Labor and Employment cover three major
areas:
4. Misereior a church group in
Germany 1. Promotion of employments and manpower
development and utilization.
5. International Labor Organization
(ILO) 2. Protection of workers welfare.

Philippine Labor movement gave 3. Promotion and maintenance of industrial

official encouragement to the organization of
labor, and said program realized the following
measures:
1. The passage of the 8-hour labor law,
the Womens Child Law, the Workers
Compensation Act, and the Collective
Bargaining.
2. The creation of the Court of Industrial
Relations and the Department of Labor
peace based on social justice.
Goals
To realize its vision of full, decent and
productive employment for every Filipino
worker, the Department pursues four strategic
goals, as follows: (1) a gainfully employed
workforce, (2) a globally competitive
workforce, (3) a secure workforce, and (4) a
safe and healthy workforce. Attainment of

3. The creation of National Land these strategic goals would be the Departments

Settlement Administration. contribution to the national goal of reducing

poverty.
DOLE

The Department of Labor and Strategic Goal 1: a gainfully

Employment (DOLE) in the Philippines is the employed workforce means that workers enjoy
executive department of the Philippine gainful employment either as wage worker
Government mandated to formulate policies, (locally or overseas), self-employed or
implement programs and services, and serve as entrepreneur.
the policy-coordinating arm of the Executive Strategic Goal 2: a globally
Branch in the field of labor and employment. It competitive workforce means that workers
possess demand driven skills, technical
education, and productivity improvement
technologies. A Secure Workforce
Strategic Goal 3: a secure workforce Strategy 4: Ensuring fair and just terms
means that workers are accorded with fair and and conditions of employment for both local
humane terms and conditions of work and and overseas workers.
social protection. Strategy 5: Promoting access of
Strategic Goal 4: a safe and healthy workers in specific sectors to health care, social
workforce means that workers enjoy a safe and security and housing as well as on-site and
healthy working environment. after-care protection for overseas Filipino
workers (OFWs) through the delivery of social
Strategies protection and welfare services.

To achieve these Strategic Goals, the

A Safe and Healthy Workforce
following strategies and services are in place:
Strategy 6: Promoting safety and health
at work through the delivery of work accident
A Gainfully Employed Workforce
and illness prevention, work compensation and
Strategy 1: Enhancing the access of
rehabilitation services.
workers to employment opportunities, both
local and overseas through job search assistance
Clients, Partners and Linkages
for wage employment and capacity building
services for livelihood and self-employment. It serves more than 40 million workers
Strategy 2: Preventing job losses and comprising the country's labor force, including
preserving employment through social the temporary migrants working in about 215
partnership promotion and delivery of dispute destinations worldwide.
resolution services.
The DOLE clients include trade unions,
workers' organizations and employers and/or
A Globally Competitive Workforce
employers' groups (i.e., ECOP, chambers of
Strategy 3: Equipping workers with
commerce and industries, TUCP, FFW, etc).
demand-driven skills, technical education and
There are existing Tripartite Industrial Peace
productivity improvement technology through
Councils (TIPCs) and 128 existing Industry
the delivery of professional regulation services,
Tripartite Councils (ITCs) serving as
technical-vocational education, skills
mechanisms for social dialogue in addressing
competency and productivity trainings.
labor and employment issues.
 The DOLE also maintains linkages with
non-government organizations (NGOs),
government agencies, the academe, partner
international organizations (e.g., ILO, IOM,
IMO, UNDP, UNICEF), and with the
international community, particularly the host
countries where our OFWs are based.

Chapter 11: HUMAN RESOURCE

RESEARCH
Research
Collecting of information about a particular
subject or gathering of data information and
facts for the advance of knowledge. It is a
function of Human Resource Management
that study the people within the
organization.
Human resources research
A formal and scientific investigation on the
people component furnishing new data to
the management which uses them for better
formulation and application of policies and
practices.

5 OBJECTIVES OF HRM RESEARCH

1. To measure and evaluate present To develop and implement new forms
conditions
2. To predict future conditions and events
3 METHODS OF HUMAN RESOURCE
Help plan for alternative ways and we
RESEARCH
can make better off the present
Historical
conditions to have good outcome in
It comprises the techniques and
future
3. To evaluate effects and results of current guidelines by which the company use

policies, programs and activities historical sources and other evidence to

Knowing the problems then formulating research and then to use it as a
a solutions to solve it comparison.
4. To provide an objective basis for revising Descriptive
current policies, programs and activities Attempts to describe systematically a
Changing the old ones to new ones or situation, problem, phenomenon, service
better ones or program or provides information
5. To appraise proposed policies, programs
about, say, and living condition of a
and activities
The worth of the proposed policies, community or describes attitudes

programs and activities towards an issue.

Experimental
Also called Empirical Research or cause
IMPORTANCE OF HUMAN RESOURCE and effect method, it is a data-based
MANAGEMENT RESEARCH research, coming up with conclusions
Improves the quality of life to ensure which are capable of being verified with
compliance observations or experiment.
To society and organization
HRM is the legal liaison between the Experimental research is appropriate

organization and the employees. when proof is sought that certain

Providing direction for the people who variables affect other variables in some

work in the organization. way. It used to controlled observations

Manage people in organizations in a and measurements to test hypotheses.

structured and thorough manner.

On people management and development THE RESEARCH PROCESS IN HUMAN

issues RESOURCE

It increase knowledge and underpin 1. Define the Research Process

Agree a topic project tutor and
effective action.
organization
For Human Resource intervention Read all subject
 Decide on Research Design
Discuss/ arrange access issue
2. Evaluate what is already known
Write draft of literature review
Reading and note taking
Literature and research activities
3. Obtain data of good quality
Write draft of findings section
Write draft of methodology section
Collect data
Plan how to record data and plot data
gathering activity
Design data gathering instrument
Finalize data access issues
4. Interpret Information
Write draft of conclusions and
recommendations
Write draft of introduction Write draft
analysis section
Analyze data
5. Communicate the results
Word process final draft
Finalize references and appendices
Copy and bind accordance with study
center requirements
Submit right number of copies on time
and to the right place
MANAGEMENT DILEMMA
Dilemma comes from the Greek word di(i)
meaning twice and lemma(i) means
premise. Dilemma is a situation or
decision with two opposing forces, each
with distinct advantages and disadvantage.
In an organization for example, it is
to decide between short-term profitability
and long term growth, between qualities
versus cost, between global alignment
versus local fit. It is choosing what the best
is for the company but the choices are the
ones you want to achieve both.
LEADERS ROLE IN SUCH
SITUATION
Develop strategies that consistently tap the
maximum value of both forces over time
while minimizing the disadvantages of both.
Manage those dilemmas that arise and
provide proper solution. This is when
dilemma management enters.
Dilemma Management is when
Helps participants learn how to identify,
analyze, and skillfully manage the critical
dilemmas they face on the job. It breaks
managers out of either- or thinking.
THREE KEY CONTENT AREAS OF
DILEMMA MANAGEMENT.
To analyze and able to distinguish between
a problem, which can be solved with a
single, discrete solution, and a dilemma,
which has no one best solution and must be
manage overtime.
To clarify its opposing forces or polarities
by analyzing it briefly and to pinpoint the
upside potential and downside risks of each.
Participants learn how to use a simple but
effective tool to uncover and capture this
information as they analyze their dilemmas.
To develop specific strategies that will
achieve the best of both sides of the
dilemma over time. Participants follow a set
of guidelines to help them craftthese
 strategies and a plan how they will execute
them back in their businesses.
PURPOSES OF DILEMMA
MANAGEMENT?
To develop systems thinking
Complexity- management skills
Seasoned judgment
MANAGEMENT DILEMMAS
There are seven dilemmas you face when
dealing with the topics of productivity and
style. Everyone should take their own decisions
on the matter. Its all a question of finding the
right balance.
1. The first dilemma: Innovate or Conserve
You should focus on new applications, new
markets, etc. But the revenues
innovations are in the (near) future. You
should also get the maximum out of your
current business. If you do not invest, there
comes a moment where current business
declines without a new innovation to take
over the revenues. If you invest too much it
may endanger the continuity of current
business.
2. The second dilemma: Own production or
Leverage on third parties
What it the content of your business? Do
you face the production by yourself or do
you leverage on third parties?
concentrate on own production and what is
beside your strength you might consider
outsourcing to third parties.
3. The third dilemma: Support or Lead
You could choose for you business to be in
the front of the market or you could be
happy supporting others. There are a myriad
of possibilities for each.
4. The fourth dilemma: Cooperate or
Compete
This dilemma is more visible within your
company than from the outside although it
is also present there. Many companies value
teamwork, but they organize the activities
in a competitive way by setting individual
targets. You should balance both.
5. The fifth dilemma: External or Internal
focus
There are entrepreneurs that observe the
of market and jump in a niche when they see a
possible profit. They follow each
development in the market and they are
flexible first-movers. Others have built up
own ideas in a different way of perceiving
information. This dilemma is present in any
organization. Normally marketers and sales
are a bit more external focussed where IT
and administration for example are more
focused on streamlining the activities that
comes to them.
6. The sixth dilemma: Product or Service
A universal choice that looks so simple. We
You all have an idea about this dilemma, but the
implication of pursuing the one or the other
can be very high.
7. The last dilemma: Consumer or
Company
 This dilemma is less important for Constraints in time, effort, method,
managers if their context is already set. The materials and personnel
Priorities are given to other programs,
more important is it for entrepreneurs.
thus providing meagre or no attention to
Facing ten to twenty business clients is
research in the budget. No fund is the
something else than driving 20.000
usual camouflage for such truncated
demanding consumers to your business.
attitude. The Human Resource can take
You should know this upfront.
a lead by convincing top management to
allocate some funds in the annual
PROBLEMS IN HUMAN RESEARCH
budget for research on people problems
Human Resources cause more difficulty
that affect productivity performance.
and frustrations than many other types of
Lack of financial resources
research in the natural and physical sciences. Research on human resources is done in
Flippo contends that ... The human factor is the regular research department of the
extremely hard to delimit. It is unlikely, and organization instead of by a separate
probably undesirable, that human beings will be research staff in the human resources
completely predictable in their behaviour. department.
Less output
Human factor does not lend as easily to
research investigation as the objects in
natural and physical sciences.
Predictions with full accuracy are
unlikely and may not be suggested. Chapter 12
Lack of orientation
Many Filipino managers and CEOs are
CURRENT GLOBAL CHANGES
lack of appreciation and understanding
of the nature and purposes of research
Several recent social and political
which cancels the initiation of research
projects. Most of them dont have changes have accelerated the movement toward
backgrounds on research. international competition. The effects of these
Indifferent attitude
Managers may take a seminar-workshop changes have been profound and far-reaching.
on research that will equip them with
Many are still evolving. In this section we
the right attitude toward knowledge and
skill in research. discuss the major developments that have
accentuated the need for organizations to gain a As of 1999, all of the

competitive advantage through effectively members of the

managing human resources in a global European Economic

economy. Community share a

common currency, the

1. EUROPEAN ECONOMIC
euro.
COMMUNITY (ECC), 1992

2. NORTH AMERICAN FREE TRADE

A confederation of the
AGREEMENT (NAFTA)
most of the European nations

that agree to engage in a free An agreement among

trade with one another, with Canada, the United

commerce regulated by an States, and Mexico that

overseeing body called has created a free market

European Commission (EU). even larger than the

European Economic
Legal regulation in the
Community (EEC).
participating countries

has become more, The agreement was

although not completely, prompted by Mexicos

uniform. increasing willingness to

open its markets and

Europe has become one
facilities in an effort to
of the largest free
promote economic
markets in the world.
growth.
 In addition, NAFTA level skills beyond those

expand its membership already being observed.

to other Latin American

3. THE GROWTH OF ASIA
countries, such as Chile.

An additional global
NAFTA has increased
market that is of
U.S. investment in
economic consequence to
Mexico because of
many firms lies in Asia.
Mexicos substantially

lower labor cost for low- Japan has been a

skilled employees. This dominant economic force

has had two effects on for over 20 years.

employment in the
Recently, countries like
United States. First,
Singapore, Hong Kong,
many low skilled jobs
and Malaysia have
went south, decreasing
become significant
employment
economic forces.
opportunities for U.S.
China, with its
citizens who lack higher-
population of more than
level skills. Second, it
1 billion and trend
has increased
toward opening its
employment
markets to foreign
opportunities for
investors, presents a
Americans with higher-
 tremendous potential an agreement to cut

market for goods. tariffs ( taxes on

imports ) by 40%, reduce

While Asia has been
government subsidies to
affected by the recent
businesses, expand
recession, the main
protection of intellectual
impact has only been to
property such as
slow its rate of growth.
copyrights and patents,

4. GENERAL AGREEMENT ON and establish rules for

TARIFFS AND TRADE (GATT) investing and trading in

services.
Multi-lateral agreement

regulating international Established the World

trade. Trade Organization

(WTO) to resolve
An international
disputes among GATT
framework of rules and
members.
principles for reducing

trade barriers across FACTORS AFFECTING HRM IN

countries around the GLOBAL MARKETS:

world.
Companies that enter global markets

Consists of more than must recognize that these markets are not

100 member-nations. simply mirror images of their home country.

Countries differ along a number of dimensions

Recently, GATT
that influence the attractiveness of direct
negotiations resulted in
foreign investment in each country. It unstated) that members of a

determined the economic viability of building community share.

an operation in a foreign location, and they

Culture is important to HRM for
have a particularly strong impact on HRM in
two reasons:
that operation. The four factors affecting HRM

in global markets are: a. It often determines the

other three factors

1. CULTURE
affecting HRM in

2. EDUCATION-HUMAN CAPITAL global markets.

3. POLITICAL-LEGAL SYSTEM Culture can

greatly affect a countrys

4. ECONOMIC SYSTEM
laws, in that laws are

often the codification of

right and wrong as

defined by the culture. It

also affects human

capital, because if

education is greatly

valued by the culture,

them member of the

community try to
1. CULTURE
increase their human

It is defined as the set of capital. Cultures and

important assumptions (often

 economic systems are other individuals

closely intertwined. in society- that is,

the degree to
b. It often determines the
which people act
effectiveness of various
as individuals
HRM practices.
rather than as

Practices found to members of a

be effective in the United group.

States may not be

effective in a culture that

has different beliefs and

values.
b. Power Distance

Geert Hofstede identified four

Concerns how a
dimensions on which various
culture deals with
cultures could be classified.
hierarchical

HOFSTEDES CULTURAL power

DIMENSIONS: relationship -

particularly to the
a. Individualism-
unequal
Collectivism
distribution of

Describes the power.

strength of the
It describes the
relation between
degree of
an individual and
 inequality among miscommunicatio

people that is n and conflicts

considered to be between people

normal. from different

cultures.
Cultures with

small power c. Uncertainty Avoidance

distance, such as
Describe how
those of Denmark
cultures seek to
and Israel, seek to
deal with the fact
eliminate
that the future is
inequalities in
not perfectly
power and wealth
predictable.
as much as

possible, whereas It is defined as

countries with the degree to

large power which people in a

distance, such as culture prefer

India and the structured over

Philippines, seek unstructured

to maintain those situations. Some

differences. cultures, such as

those of
Differences in
Singapore and
power distance
Jamaica, have
often result in
weak uncertainty clear rules as to

avoidance. They how one should

socialize behave.

individuals to
d. Masculinity-Femininity
accept this
Dimension
uncertainty and

take each day as It describes the

it comes. People division of roles

from these between the sexes

cultures tend to within a society.

be rather
In masculine
easygoing and
cultures, such as
flexible regarding
those of Germany
different views.
and Japan, what
Other cultures,
are considered
such as those of
traditionally
Greece and
masculine values-
Portugal,
showing off,
socialize their
achieving
people to seek
something
security through
visible, and
technology, law,
making money -
and religion.
permeate the
Thus these
society. These
cultures provide
 societies stress e. Long-term - Short-term

assertiveness, Orientation

performance,
Cultures high on
success, and
the long-term
competition.
orientation focus

Feminine on the future and

cultures, such as hold values in the

those of Sweden present that will

and Norway, not necessarily

promote values provide an

that have been immediate

traditionally benefit, such as

regarded as thrift (saving) and

feminine, such as persistence.

putting Hofstede found

relationships that many Far

before money, Eastern countries

helping others, such as Japan and

and preserving China have a

the environment. long-term

These cultures orientation.

stress service, Short-term

care for the weak, orientations, on

and solidarity. the other hand,

 are found in the health by promoting certain values that either

United States, aid or inhibit economic growth.

Russia, and West

Cultural characteristics influence the
Africa. These
ways managers behave in relation to
cultures are
subordinates, as well as the perceptions, of the
oriented toward
appropriateness of various HRM practices.
the past and
First, cultures differ strongly on such things as
present and
how subordinates expect leaders to lead, how
promote respect
decisions are handled within the hierarchy, and
for tradition and
(most important) what motivated individuals.
for fulfilling
Second, cultures may influence the
social
appropriateness of HRM practices.
obligations.

Culture often influences how employees

value certain aspects of their work

IMPLICATIONS OF CULTURE FOR HRM environment.

Cultures have an important impact on Similarly, cultures can influence compensation

approaches to managing people. As we discuss systems. Individualistic cultures such as those

later, the culture can strongly affect the found in the United States often exhibit great

education-human capital of a country, the differences between the highest- and lowest-

political-legal system, and the economic paid individuals in an organization, with the

system. As Hofstede found, culture also has a highest individual often receiving 200 times the

profound impact on a countrys economic salary of the lowest. Collectivist cultures, on

the other hand, tend to have much flatter salary

structures, with the top-paid individual be an important HRM issue. Human

receiving only about 20 times the overall pay of capital refers to the productive

the lowest-paid one. capabilities of individuals- that is, the

knowledge, skills, and experience that

Cultural differences can affect the
have economic value.
communication and coordination processes in

organizations. Collectivist cultures, as well as A countrys human capital is

those with less of an authoritarian orientation, determined by a number of variables. A

value group decision making and participative major variable is the educational

management practices more highly than do opportunities available to the labor

individualistic cultures. When a person raised force.

in an individualistic culture must work closely

A countrys human capital may
with those from a collectivist culture,
profoundly affect a foreign companys
communication problems and conflicts often
desire to locate there or enter that
appear. Much of the emphasis on cultural
countrys market. Countries with low
diversity programs in organizations focuses
human capital attract facilities that
on understanding the cultures of others in order
require low skills and low wage levels.
to better communicate with them.

Countries with high human

2. EDUCATION- HUMAN CAPITAL
capital are attractive sites for direct

A companys potential to find foreign investment that creates high-

and maintain a qualified workforce is an skill jobs.

important consideration in any decision

3. POLITICAL - LEGAL SYSTEM
to expand into a foreign marker. Thus a

countrys human capital resources can

 The regulations imposed by a minimum wage for a variety of jobs. We

countrys legal system can strongly have regulations that dictate much of the

affect HRM. The political legal process for negotiation between unions

system often dictates the requirements and management.

for certain HRM practices, such as

The ECC provides another
training, compensation, hiring, firing,
example of the effects of the political-
and layoffs. In large part, the legal
legal system on HRM. The ECCs
system is an outgrowth of the culture in
Community Charter of December 9,
which it exists. Thus the laws of a
1989, provides for the fundamental
particular country often reflect societal
social rights of workers. These rights
norms about what constitutes legitimate
include freedom of movement, freedom
behavior.
to choose ones occupation and be fairly

For example, the United States compensated, guarantee of social

has led the world in eliminating protection via Social Security benefits,

discrimination in the workplace. freedom of association and collective

Because of the importance this has in bargaining, equal treatment for men and

our culture, we also have legal women, and a safe and healthful work

safeguards such as equal employment environment, among others.

opportunity laws that strongly affect the

4. ECONOMIC SYSTEM
hiring and firing practices of firms. As a

society, we also have strong beliefs A countrys economic system

regarding the equity of pay system; thus influences HRM in a number of ways.

the Fair Labor Standards Act, among In socialist economic systems there are

other laws and regulations, sets the ample opportunities for developing
human capital because the education In addition to the effects of an

system is free. However, under these economic system on HRM, the health of

systems, there is little economic the system can have an important

incentive to develop human capital impact.

because there are no monetary rewards

An economic system also affects
for increasing human capital. In
HRM directly through its taxes on
addition, in former Soviet bloc
compensation packages. Socialist
countries, an individuals investment in
systems are characterized by tax
human capital did not always result in a
systems that redistribute wealth by
promotion. Rather, it was investment in
taking a higher percentage of a persons
the Communist Party that led to career
income as she moves up the economic
advancements.
ladder. Capitalist systems attempt to

In capitalist systems the opposite reward individuals for their efforts by

situation exists. There is less allowing them to keep more of their

opportunity to develop human capital earnings.

without higher costs. However, those

who do invest in their individual human

capital, particularly through education,

are more able to reap monetary rewards,

thus providing more incentive for such

investment. In the United States,

individuals salaries usually reflect

differences in human capital

 In conclusion, every country 3. A third country is a country

varies in terms of its culture, human other than the host country or

capital, legal system, and economic parent country, and a company

system. These variations directly may or may not have a facility

influence the types of HRM systems there.

that must be developed to accommodate

Expatriate is the term generally used for
the particular situation. The extent to
employees sent by a company in one country to
which these differences affect a
manage operations in a different country.
company depends on how involved the

company is in global markets. The different categories of employees

or expatriates:
MANAGING EMPLOYEES IN A GLOBAL

CONTEXT 1. Parent-country nationals

(PCNs) - employees who were

Types of International Employees:
born and live in the parent

1. A parent country is the country country.

in which the companys

2. Host-country nationals
corporate headquarters is
(HCNs) - those employees who
located.
were born and raised in the host,

2. A host country is the country in as opposed to the parent,

which the parent country country.

organization seeks to locate (or

3. Third-country nationals
has already located) a facility.
(TCNs) - employees born in a

country other than the parent

 country and host country but those areas more or less attractive

who work in the host country. according to the work ethics of the

potential employees. Similarly, the

LEVELS OF GLOBAL PARTICIPATION
human capital in the different areas may

We often hear companies referred to as vary greatly because of differences in

multinationals or international. However, it educational systems. Finally, local pay

is important to understand the different levels rates may differ.

of participation in international markets. This is

2. INTERNATIONAL
especially important because as a company

becomes more involved in international trade, As more competitors enter the

different types of HRM problems arise. domestic markets, companies face the

possibility of losing market share, thus

1. DOMESTIC
they often seek other markets for their

Most companies begin by products. This usually requires entering

operating within a domestic international markets, initially by

marketplace. As the product grows in exporting products but ultimately by

popularity, the owner might choose to building production facilities in other

build additional facilities in different countries. The decision to participate in

parts of the country to reduce the costs international competition raises a host

of transporting the product over large of human resource issues. All the

distances. In deciding where to locate problems regarding locating facilities

these facilities, the owner must consider are magnified. One must consider

the attractiveness of the local labor whether a particular location provides

markets. Various parts of the country an environment where human resources

may have different cultures that make

ban be successfully acquired and 3. MULTINATIONAL

managed.
Whereas international

Now the company faces an companies build one or a few facilities

entirely different situation with regard in another country, they become

to culture, human capital, the political multinational when they build facilities

legal system, and the economic system. in a number of different countries,

A countrys legal system may also attempting to capitalize on lower

present HRM problems. production and distribution costs in

different locations. The lower

Finally, cultures may have to be
production costs are gained by shifting
considered. To the extent that the
production from higher-cost locations to
countrys culture is vastly different from
lowest-cost locations. For example,
that of the parent organization, conflicts,
some of the major U.S. automakers have
communication problems, and morale
plants all over the world. They continue
problems may occur. Expatriate
to shift their production from the United
managers must be trained to identify
States, where labor unions have gained
these cultural differences, and they must
high wages for their members, to
be flexible enough to adapt their styles
maquiladora facilities in Mexico, where
to those of their country. This requires
the wages are substantially lower.
an extensive selection effort to identify
Similarly, these companies minimize
individuals who are capable of adapting
distribution and labor costs by locating
to new environments and an extensive
facilities in central and eastern
training program to ensure that the
European countries such as Poland,
culture shock is not devastating.
Hungary, and the Slovak Republic for
manufacturing and assembling managers from different cultures into

automobiles to sell in the European the culture of the parent company. In

market. addition, multinational companies now

take more expatriates from countries

The HRM problems
other than the parent country and place
multinational companies face are similar
them in facilities of other countries. For
to those international companies face,
example, a manager from Scotland,
only magnified. Instead of having to
working for a U.S. company, might be
consider only one ot two countries
assigned to run an operation in South
cultural, human capital, legal, and
Africa. This practice accentuates the
economic systems, the multinational
need for cross-cultural training to
company must address these differences
provide managerial skills for interaction
for a large number of countries. This
with individuals from different cultures.
accentuates the need to select managers

capable of functioning in a variety of 4. GLOBAL

settings, give them necessary training,

Many researches now propose a
and provide flexible compensation
fourth level of integration: global
systems that take into account the
organizations. Global organizations
different market pay rates, tax systems,
compete on state-of-the-art, top-quality
and costs of living.
products and services and do so with the

Multinational companies now lowest costs possible. Whereas

employ many inpatriates managers multinational companies attempt to

from different countries who become develop identical products distributed

part of the corporate headquarters staff. worldwide, global companies

This creates a need to integrate increasingly emphasize flexibility and

mass customization of products to meet spread across the globe, resulting in less

the needs of particular clients. hierarchically structured organizations

Multinational companies are usually that emphasizes decentralized decision

driven to locate facilities in a country as making. This results in the need for

a means of reaching that countrys human resource systems that recruit,

market or lowering production costs, develop, retain, and use managers and

and the company must deal with the executives who are competent

difference across the countries. Global transnationally.

firms, on the other hand, choose to

A transnational HRM system is
locate a facility based on the ability to
characterized by three attributes:
effectively, efficiently, and flexibly

produce a product or service and 1. Transnational Scope - the fact

attempt to create synergy through the that HRM decisions must made

cultural differences. from a global rather than a

national or regional prospective.

This creates the need for HRM
This creates the need to make
systems that encourages flexible
decisions that balance the need
production (thus presenting a host of
for uniformity (to ensure fair
HRM issues). These companies
treatment of all employees) with
proactively consider the cultures, human
all the need for flexibility (to
capital, political-legal system, and
meet the needs of employees in
economic system to determine where
different countries).
production facilities can be located to

provide a competitive advantage. Global 2. Transnational Representation

companies have multiple headquarters - reflects the multinational

 composition of a companys needs managers who will treat

managers. Global participation managers from other cultures as

does not necessarily ensure that equals. This synergy can be

each country is providing accomplished only by combining

managers to the companys rank. selection, training, appraisal, and

This is a prerequisite if the compensation system in such a way

company is to achieve the next that managers have a transnational

attribute. rather than a parochial orientation.

However, a survey of 50 companies

3. Transnational Process - the
in the United States and Canada
extent to which the companys
found that global companies HRM
planning and decision-making
systems are far planning systems
processes include representatives
and organizational structures.
and ideas from a variety of

cultures. This attribute allows In conclusion, entry into

for diverse viewpoints and international markets creates a host

knowledge associated with of HRM issues that must be

different cultures, increasingly addressed if a company is to gain

the quality of decision making. competitive advantage. Once the

choice has been made to compete in

These three characteristics are
a global arena, companies must seek
necessary for global companies to
to manage employees who are sent
achieve cultural synergy. Rather
to foreign countries (expatriates and
than simply integrating foreigners
third-country nationals). This causes
into the domestic organizations, a
need to shift from focusing only on
successful transnational company
 the culture, human capital, political- addition, if a company does develop such

legal, and economic influences of facilities, these factors strongly affect the HRM

the host country to examining ways practiced used. However, one important issue

to manage expatriate managers who that has been recognized over the past few

must be located there. Selection years is the set of problems inherent in

systems must be developed that selecting, training, compensating, and

allow the company to identify the reintegrating expatriate managers.

important aspects of the new culture

1. SELECTION OF EXPATRIATE
in which they will live as well as the
MANAGERS
relevant legal-political and

economic system. Finally, these One of the major problems in

managers must be compensated to managing expatriate managers is

offset the cost of uprooting determining which individuals in the

themselves and their families to organization are most capable of

move to a new situation vastly handling an assignment in a different

different from their previous lives. culture. Expatriate managers must have

In the next section we address issues technical competence in the area of

regarding management of expatriate. operations; otherwise they will be

unable to earn the respect of

MANAGING EXPATRIATES IN GLOBAL
subordinates. However, technical
MARKETS
competence has been almost the sole

We have outlined the major macro-level variable used in deciding who to send

factors that influence HRM in global markets. overseas assignments, despite the fact

These factors can affect a companys decision that multiple skills are necessary for

whether to build facilities in a given country. In

 successful performance in these manager to accurately perceive

assignments. and evaluate the host

environment. One study of

A successful expatriate manager
international assignees found
must be sensitive to the countrys
that they considered the
cultural norms, flexible enough to adapt
following five factors to be
to those norms, and strong enough to
important in descending order of
make it through the inevitable culture
importance: family situation,
shock. In addition, the managers family
flexibility and adaptability, job
must be similarly capable of adapting to
knowledge and motivation,
a new culture.
relational skills, and extra

ADAPTIVE SKILLS THREE cultural openness.

DIMENSIONS:
The use of women in expatriate

1. The Self-Dimension - the skills assignments would not be successful

that enable a manager to in countries where women have not

maintain a positive self-image traditionally been promoted to

and psychological well-being. management positions such as in

Japan and other Asian countries.

2. The Relationship Dimension -
Some research suggests that male
the skills required to foster
and female expatriates can perform
relationships with the host-
equally well in international
country nationals.
assignments, regardless of the
3. The Perception Dimension -
countrys cultural predispositions
those skills that enable a
toward women in management.
 However, female expatriates self- effectiveness. However, in spite of this,

rate their adjustments lower in cross-cultural training is hardly

countries that have few women in universal. According to one 1995

the workforce. Also research has survey, nearly 40% of the respondents

shown that female expatriates were offered no cross-cultural preparation to

perceived as being effective expatriates. What exactly is emphasized

regardless of the cultural toughness in cross-cultural training programs?

of the host country. And the fact that However, for now, it is important to

female expatriates feel more know that most attempt to create an

strongly than their supervisors that appreciation of the host countrys

prejudice does not limit womens culture so that expatriates can behave

ability to be successful. appropriately.

2. TRAINING AND DEVELOPMENT ASPECTS OF CULTURAL

OF EXPATRIATES SENSITIVITY:

Once an expatriate manager has 1. Expatriates must be clear

been selected, it is necessary to prepare about their own cultural

that manager for the upcoming background, particularly as it

assignment. Because these individuals is perceived by the host

already have job-related skills, some nationals. With an accurate the

firms have focused development efforts cultural self-awareness,

on cross-cultural training. A review of managers can modify their

the cross-cultural training literature behavior to accentuate the

found support for the belief that cross- effective characteristics while

cultural training has an impact on

 minimizing those that are country, and few provide

dysfunctional. language training. However,

most companies simply assume

2. Expatriates must understand
that the host-country nationals
the particular aspects of
all speak the parent-country
culture in the new work
language. Although this
environment. Although culture
assumption might be true,
is an elusive, almost invisible
seldom do these nationals speak
phenomenon, astute expatriate
the parent-country language
managers must perceive the
fluently. Thus, expatriate
culture and adapt their behavior
managers must be trained to
to it. This entails identifying the
communicate with others when
types of behaviors and
language barrier exists. Effective
interpersonal styles that are
cross-cultural training helps ease
considered acceptable in both
an expatriates transition to the
business meetings and social
new work environment. It can
gatherings. For example,
also help avoid costly mistakes,
Germans value promptness for
such as the expatriate who
meetings to a much greater
attempted to bring two bottles of
extent than do Latin Americans.
brandy into the Muslim country

3. Expatriates must learn to of Qatar. The brandy was

communicate accurately in the discovered by customs; not only

new culture. Some firms was the expatriate deported, the

attempt to use expatriates who company was also disinvited

speak the language of the host from the country.

 Expatriate managers must be trained to Gestures. Use more facial and

communicate with across language barriers. hand gestures to emphasize the

meaning of words.
Tips for Communicating across language

barriers: Demonstration. Act our as many

themes as possible
Verbal behavior

Pauses. Pause more frequently

Clear, slow speech. Enunciate

each word. Do not use colloquial Summaries. Hand our written

expressions. summaries of your verbal

presentation
Repetition. Repeat each

important idea using words to Attribution

explain the same concept.

Silence. When there is silence,

Simple sentences. Avoid wait. Do not jump in to fill the

compound long sentences silence. The other person is

probably just thinking more

Active verbs. Avoid passive
slowly in the nonnative language
verbs.
or translating.
Nonverbal behavior
Intelligence. Do not equate poor
Visual restatements. Use as grammar and mispronunciation
many visual restatements as with lack of intelligence; it is
possible, such as pictures, usually a sign of second-
graphs, tables, and slides. language use.
 Differences. If unsure, assume Longer time frame. Allocate

difference, not similarly. more time for each module than

usual in a monolingual program.

Comprehension

Motivation
Understanding. Do not just

assume that they understand; Encouragement. Verbally and

assume that they do not nonverbally encourage and

understand. reinforce speaking by nonnative

language participants.
Checking comprehension. Have

colleagues repeat their Drawing out. Explicitly draw

understanding of the material out marginal and passive

back to you. DO not simply ask participants.

whether they understand of nor.

Reinforcement. Do not
Let them explain what they
embarrass novice speakers
understand to you.

.
Design

3. COMPENSATION OF
Breaks. Take more frequent
EXPATRIATES
breaks. Second-language

comprehension is exhausting. One of the more troublesome

aspects of managing expatriates is

Small modules. Divide the
determining the compensation package.
material into smaller modules.
Most use a balance sheet approach to

determine the total package level. This

 approach entails developing a total rates between countries may

compensation package that equalizes the make an offered salary a raise

purchasing power of the expatriate some of the time, a pay cut at

manager with that of employees in other times. In addition, the base

similar positions in the home country salary may be used on

and provide incentives to offset the comparable pay in the parent

inconveniences incurred in the location. country, or it may be based on

Purchasing power includes of all the the prevailing market rates for

expenses associated with the expatriate the job in the host country.

assignment. Expenses include goods Expatriates are often offered a

and services (food, personal care, salary premium beyond that of

clothing, recreation, and transportation), their present salary as an

housing ( for a principal residence ), inducement to accept the

income taxes( paid to federal and local expatriate assignment.

governments) ,reserve ( savings,

2. Tax Equalization Allowance.
payments for benefits, pension
They are necessary because of
contribution), and shipment and storage
countries different taxation
(costs associated with moving and/or
system in high-tax countries.
storing personal belongings ).
For example, a senior executive

TOTAL PAY PACKAGE FOUR earning $100 in Belgium (with a

COMPONENTS: maximum marginal tax rate of

70.8%) could cause a company

1. Base Salary. Determining the
almost $1,000,000 in taxes over
base salary is not simple matter,
five to seven years. Under most
however, fluctuating exchange
 tax equalization plans, the different health care plans

company withholds the amount available resulted in situation

of taxes to be paid in the home, where it might cost significantly

then pays all of the taxes in the less to have the employee fly to

host country. the United States to have a

procedure performed rather than

3. Benefits. It presents additional
to have it done in the host
compensation problems. Most of
country. However, the health
the problems have to do with the
plans did not allow this
transportability of the benefits.
alternative.
For example, if an expatriate

contributing to a pension plan in 4. Allowances. It is often offered

the United States is moved to a to make the expatriate

different country, thus the assignment less unattractive.

individual have a new pension in Cost-of-living allowances are

the host country, or should the payments that offset the

individual be allowed to differences in expenditures on

contribute to the existing day-to-day necessities between

pension in her home country? the host country and the parent

What about health care system country. Housing allowances

located in the United States? insured that the expatriate can

How thus the company ensure maintain the same home-country

that expatriate employees have living standard. Education

equal health care coverage? for allowances reimburse expatriates

example, in one company, the for the expense of placing their

 children in private English- with jobs that gave them reduce

speaking schools. Relocation autonomy and authority. Twenty-percent

allowances covered all the of workers want to leave the company

expenses of making the actual when they return from an overseas

move to a new country, assignment, and this presents potentially

including transportation to and serious morale and productivity

from the new location, problems. In fact, the most recent

temporary living expenses, and estimates are that 25% of expatriate

shipping and/or storage of leave the company within one year of

personal possessions. returning from their expatriates

assignments. If this repatriates leave, the

4. REACCULTURATION OF
company has virtually no way to recoup
EXPATRIATES
its substantial investment in human

A final issue of importance to capital.

managing expatriates is dealing with the

Companies are increasingly
reacculturation process when the
making efforts to help expatriates
managers reenter their home country.
through reacculturation.
Reentry is no simple feat. Culture shock

takes place in reverse. The individual Two characteristics help in this

has changed, the company has changed, transition process:

and the culture has changed while the

a. COMMUNICATION. It
expatriate was oversees. According to
refers to the extent to
one source, 60% to 70% of expatriates
which the expatriate
did not know what their position would
receives information and
be upon their return, and 46% ended up
 recognizes changes while investment that firms

abroad. The closer the make in expatriate

contact with the home employees, usually

organization while aimed at providing

abroad, the more global experience that

proactive, effective, and will help the company,

satisfied the expatriate firms certainly do not

will be upon reentry. want to lose expatriates

ager their assignments

b. VALIDATION. It refers
have concluded.
to the amount of

recognition received by

the expatriate upon

return home. Expatriates

who receive recognition

from their peers and their

bosses for their foreign

work and their future

potential contribution to

the company have fewer

troubles with reentry

compared with those

who are treated as if they

were out of the loop.

Given the tremendous