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Republic of the Philippines

Polytechnic University of the Philippines
Mabini Campus, Sta. Mesa, Manila
COLLEGE OF BUSINESS ADMINISTRATION
Department of Management

HR CHALLENGES AND STRATEGIES 2016

By:
MADRONERO, Judy Ann
BSBA-HRDM 4-3N
To:
PROF. Formentera, Louvelle
August 6, 2016

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HR CHALLENGES AND STRATEGIES 2016

The Big Issues Facing HR
Experts weigh in on the top trends shaping the workplace and HR.
By Jen Schramm
March 1, 2016

Tighter labor markets, economic uncertainty and globalization are key issues that will
shape the workplace and the HR profession in coming years, according to the Society for Human
Resource Managements (SHRMs) Special Expertise Panels. These groups are made up of
SHRM professional members charged with reporting emerging trends in areas such as ethics,
global practices, HR disciplines, labor relations and technology.
Throughout the past year, they have identified a wide range of challenges and notable
trends, including the following:
Stepped-up competition for talent. As labor market conditions improve and the need for skilled
and educated workers rises around the world, organizations are finding it more difficult to attract
the best employees. This makes it increasingly necessary for HR to help build a strong employer
brand. Smart HR professionals are highlighting cultures that incorporate the fundamentals of a
great place to work, including corporate social responsibility initiatives, strong worker safety and
security measures, and an overarching atmosphere of civility and respect in the workplace. The
tight competition for talent is also influencing compensation and benefits strategies, immigration
policies, and global relocations.
New developments in technology. New tools, such as talent networks, crowdsourcing and
internal social networks, hold the promise of increased flexibility and productivity. But their use
in supporting a virtual workforce will continue to make employee management and team
building challenging.
A rising sense of insecurity. With new technology, data security concerns arise for both
employer and employee. Companies face the threat of data breaches or risks to global supply
chains. At the same time, the fear that workers may find themselves in a physically dangerous
situation is also very real, as we see more incidents of workplace violence and political or social
instability in places where organizations do business and have staff.
The impact of the economy. While economic indicators have improved in countries around the
world, many organizations continue to feel a strain on their budgets. This will influence hiring
strategies and other HR decisions. In addition, increased globalization and political unrest in
some regions will continue to make economic uncertainty the new normal.

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Demographic changes. Population changes will have a mounting impact on many aspects of
employment and HR practices. These changes include the aging workforce, different generations
working together, the nature of family and parental roles, and increased cultural diversity.
Data-driven HR practices. The growing importance of big data presents human resource
practitioners with an opportunityand puts them under pressure. Business leaders are
increasingly demanding that HR professionals, like their colleagues in other functional areas, use
metrics and in-depth analysis to both make good decisions and demonstrate the return on
investment of key expenditures.
An ever-changing, complex environment can create the anxious feeling that you, as an HR
professional, need to be an expert in everything. This is clearly impossible. Still, these insights
from the experts help give us a broader sense of which trends are likely to have the biggest
impact on the professionand leveraging them can help you design strategic responses that
make the most sense for your business.
Jen Schramm is manager of the Workforce Trends program at SHRM.

INVESTMENT SKILLS
Active Management: Understanding investment skill
NOVEMBER 2014 BY MICHAEL ERVOLINI
Rather than outcomes-oriented measures, Michael Ervolini argues that to assess active
managers skills they need to be isolated by comparing their portfolios with alternative,
adjusted portfolios
The debate about skill is taking a new twist, with the investigation into active share by
KJ Martijn Cremers and Antti Petajisto and best ideas by Randy Cohen et al, indicating that
more equity portfolio managers have skill than previously believed. Most, however, do not
possess sufficient skill to outperform their benchmarks, and that is the problem. This means the
often-asked question, Do excess returns reflect manager skill or luck? now shifts to the more
pertinent inquiry: Do you have the ability to identify managers with skill, or are you just hoping
to get lucky? This article explains why the question of skill has vexed investors for so long and
how it is being answered with the use of a new framework for quantifying investment skill,
processes, and behavioral tendencies.
Fools gold Capital sources and manager selection consultants rely extensively on traditional
portfolio analytics in order to understand the ability of a manager. Measures such as return,
relative return, information ratio, alpha, tracking error, hit rates, win/loss ratios, attribution
analysis, and value at risk all have their place in manager evaluations. None, however, offers the
slightest insight into skill. These metrics measure one thing only, and that is outcome. When they
are used as proxies for skill, they lead, predictably, to weak understanding, incorrect conclusions,

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and actions that undermine success.
Consider two active managers. The first has a hit rate of 35 and the second 45. The first manager
underperforms his benchmark while the second outperforms. Which has more skill at buying? It
is impossible to know from this information. One reason why is that hit rates do not describe the
quality of the managers buys, only which fraction of them is sold with a gain. The first manager
might generate huge levels of alpha from his buys but give that and more back through weak
selling. The second manager may generate only a modest amount of alpha from her buys, while
producing most of her excess performance from strong selling and sizing skills. Neither is able to
learn anything meaningful about their buying or other skills from hit-rate analysis.

New framework The identification and quantification of skill requires a new analytic approach
that is both rigorous and granular. Similar to the way a golfer knows how skilled she is at drives
off the tee, fairway shots, and putts, the manager must know how effective she is at buying,
selling, and sizing of positions. No one expects a golfer to be able to improve without the proper
feedback, while active managers have struggled to improve for decades using outcomes to
measure skill. This is the equivalent of asking a golfer to lower her handicap, when all she is
provided are the scores of each round played.
A framework developed by Cabot Research uses the comparison of adjusted portfolio histories to
isolate and measure skills. The basic idea is to begin with the actual history of a portfolio and
then modify one or more elements in order to construct adjusted portfolios. The comparison of
adjusted portfolios to the actual portfolio and to each other supports the precise investigation of
skills. Here is a simple example.
The manager of portfolio ABC is interested in understanding the effectiveness of his sizing

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decisions. To investigate this, an adjusted portfolio is created that, on each and every day, owns
the same names as the managers actual portfolio, but all of the managers sizing decisions are
ignored, and all positions are instead sized using a passive sizing rule. From here the comparison
of the actual portfolio to the adjusted portfolio can be based on total return, relative return, or
alpha.
Whichever performance measure is used, if the results for the actual portfolio are greater than the
adjusted portfolio, then the managers sizing decisions added value he has sizing skill.
Adjusted portfolios like these are used to quantify the three basic investment skills (buying,
selling, sizing), to investigate more granular skills for example, effectiveness of adding to
losing positions and to identify and measure the impact of behavioural tendencies (such as the
impact of holding winners too long). The essential point is that this new analytic framework
measures skills directly, providing both managers and their clients with the feedback needed to
make knowledgeable decisions.
Clarifying The new analytic framework also provides rigorous and objective insight into a
managers investment process. An example of how buying process can be better understood is
presented in the figure. This plot describes the typical new buy of the manager at the time of
initial purchase. It shows that new buys tend to have very low momentum and low price-tovalue, while possessing relatively high return on equity (ROE), trailing earnings growth, and
slightly above-average debt. These attributes are consistent with the managers value approach of
finding great companies whose price has been beaten up.
Even more interesting is that the chart shows which of his picks go on to become winners (dark
grey) and which become losers (light grey). The analysis indicates that while this manager makes
buys that are consistent with his intent or style, his best picks are those stocks that are modestly
cheap and not heavily discounted. Feedback like this can help managers become more self-aware
and improve, and it can also enable the manager to objectively explain his process to clients and
demonstrate that it is actually followed.
The next time you meet with a money manager, try asking one or more of these questions:
Which of your skills is strongest and how do you know?
How are you going about improving your weakest skill?
Do you engage in any behavioral tendency? What are you doing to eliminate it?
What is your buy process and how closely is it followed?
As an institutional investor and a fiduciary, you deserve rigorous and objective answers to
questions like these. You need facts, not hunches and educated guesses. A growing number of
equity managers now have answers to these and other questions that really delve into skill,
process, and behaviours. Armed with this type of rigorous and granular feedback, investors are in
a stronger position to identify skilled managers who are most likely to outperform. The choice is
clear. You can become more skilled at identifying and working with top portfolio managers, or
you can continue with your current approach and hope that you get lucky.

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Michael Ervolini is CEO of Cabot Research, a specialist behavioural finance consultancy, and
author of Managing Equity Portfolios: A Behavioral Approach To Improving Skills and
Investment Processes (forthcoming, MIT Press)

MANAGING TURN-OVER
Turnover is the act of replacing an employee with a new employee (in human resources).
Partings between organizations and employees may consist of termination, retirement, death,
interagency transfers, and resignations. An organizations turnover is measured as a percentage
rate, which is referred to as its turnover rate. Turnover rate is the percentage of employees in a
workforce that leave during a certain period of time. Organizations and industries as a whole
measure their turnover rate during a fiscal or calendar year.
There are four types of turnovers:
1. Voluntary - is the first type of turnover, which occurs when an employee voluntarily
chooses to resign from the organization. Voluntary turnover could be the result of a more
appealing job offer, staff conflict, or lack of advancement opportunities.
2. Involuntary - which occurs when the employer makes the decision to discharge an
employee and the employee unwillingly leaves his or her position. Involuntary turnover
could be a result of poor performance, staff conflict, the at-will employment clause, etc.
3. Functional - which occurs when a low-performing employee leaves the organization.
Functional turnover reduces the amount of paperwork that a company must file in order
to rid itself of a low-performing employee. Rather than having to go through the
potentially difficult process of proving that an employee is inadequate, the company
simply respects his or her own decision to leave.
4. Dysfunctional - which occurs when a high-performing employee leaves the organization.
Dysfunctional turnover can be potentially costly to an organization, and could be the
result of a more appealing job offer or lack of opportunities in career advancement. Too
much turnover is not only costly, but it can also give an organization a bad reputation.
However, there is also good turnover, which occurs when an organization finds a better
fit with a new employee in a certain position. Good turnover can also transpire when an
employee has outgrown opportunities within a certain organization and must move
forward with his or her career in a new organization.
If an employer is said to have a high turnover rate relative to its competitors, it means that
employees of that company have a shorter average tenure than those of other companies in the
same industry. High turnover may be harmful to a company's productivity if skilled workers are

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often leaving and the worker population contains a high percentage of novices. Companies will
often track turnover internally across departments, divisions, or other demographic groups, such
as turnover of women versus men. Most companies allow managers to terminate employees at
any time, for any reason, or for no reason at all, even if the employee is in good standing.
Additionally, companies track voluntary turnover more accurately by presenting parting
employees with surveys, thus identifying specific reasons as to why they may be choosing to
resign. Many organizations have discovered that turnover is reduced significantly when issues
affecting employees are addressed immediately and professionally. Companies try to reduce
employee turnover rates by offering benefits such as paid sick days, paid holidays and flexible
schedules.[3] In the United States, the average total of non-farm seasonally adjusted monthly
turnover was 3.3% for the period from December, 2000 to November, 2008.[4] However, rates
vary widely when compared over different periods of time and with different job sectors. For
example, during the 2001-2006 period, the annual turnover rate for all industry sectors averaged
39.6% prior to seasonal adjustments,[5] while the Leisure and Hospitality sector experienced an
average annual rate of 74.6% during this same period
12 SUREFIRE TIPS TO REDUCE EMPLOYEE TURNOVER
By Darcy Jacobsen
How would you feel about a higher retention rate in your organization? I dont know
about you, but I cant think of a single HR exec I know who would turn that down. In fact,
employee retention is without a doubt one of the most intense challenges facing most human
resources departments.
Sadly, with the improving economy and the coming talent crunches due to retiring
boomers, retention rates promise only to get worse. Already, turnover rates for all industries
hover around 13%and those rates are far higher in the service sector, where the average is 30%,
according to SHRM. The retention crisis will undoubtedly intensify as the talent war rages and
Millennials (who are notorious for job hopping) become a bigger part of the workforce.
With that in mind, here are a dozen tips on how you can slow down the revolving door at
your company. Some may be familiar, some may be new to you, but all should help you inspire
long-term loyalty from your best employees.
1

Hire the right people

The best way to ensure employees dont leave you is to make sure you are hiring the right
employees to begin with. Define the role clearlyboth to yourself and to the candidates.
And then be absolutely sure the candidate is a fit not only for it, but for your company
culture.

Fire people who dont fit

As the old saying goes, a stitch in time, saves nine. The same goes for cutting
employees loose when necessary. Sometimes even when you follow the advice above,

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you get an employee whono matter what you try to dojust doesnt fit. And, no matter
how effective they might be at their actual work, an employee who is a bad fit is bad for
your culture, and that creates culture debt. They will do more damage than good by
poisoning the well of your company. Cut them loose.
3

Keep compensation and benefits current

Be sure that you are paying employees the fair going wage for their work (or better) and
offer them competitive benefits, orreallywho can blame them for ditching you? This
might seem like a no brainer but youd be surprised how few companies offer raises that
keep up with an employees development and actual rising worth.

Encourage generosity and gratitude

Encourage pro-social behavior in your employees. When they are given the opportunity
to connect with one another through acts of generosity and the expression of gratitude,
employees will be healthier, happier, and less likely to fly the coop. And by encouraging
them to be on the lookout for good behaviors to commend, you give people a sense of
ownership of the company.

Recognize and reward employees

Show your employees they are valued and appreciated by offering them real-time
recognition that celebrates their successes and their efforts. Make it specific, social and
supported by tangible reward, and you, too, will be rewardedwith their loyalty.

Offer flexibility
Todays employees crave a flexible life/work balance. That impacts retention directly. In
fact, a Boston College Center for Work & Family study found that 76% of managers and
80% of employees indicated that flexible work arrangements had positive effects on
retention. And more and more companies know it. That means, if youre not offering
employees flexibility around work hours and locations, they might easily leave you for
someone who will.

Pay attention to engagement

This one sounds obvious, but for too many leaders interest in engagement is limited to the
results of engagement surveys. Its not enough simply to run an engagement survey once
a year. You need save most of your energy to take action based on the results and you
need to work to build a culture of engagement in your company all year long.

Prioritize employee happiness

Happiness may sound a bit soft and squishy to many execs, but the numbers behind it are
anything but. Employee happiness is a key indicator of job satisfaction, absenteeism and
alignment with valuesjust for starters. Investing in the happiness of your employees will

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pay dividends in engagement, productivity and yes, retention. (Find some tips for
building happiness here.)
9

Make opportunities for development and growth

Employees place HUGE value on opportunities for growth. In fact, a recent Cornerstone
survey drew a direct connection between lack of development opportunity and high
turnover intentions. If you arent developing your employees then you arent investing in
them. And if you arent investing in them, why should they stay with you?

10 Clean up performance reviews

Our most recent Workforce Mood Tracker survey painted a frankly dismal picture of how
employees feel about performance reviews. Only 49 percent of them find reviews to be
accurate, and only 47 percent find them to be motivating. Performance reviews offer a
prime opportunity for a big win to increase trust and fortify your relationship with
employees. Improve performance management by overhauling reviews, and watch
employee trust and satisfaction grow.
11 Provide an inclusive vision
One key factor in employee engagement and happiness, according to experts, is to
provide them with a sense of purpose and meaning in their work. Offer employees a
strong vision and goals for their work and increase their sense of belonging and loyalty to
your organization.
12 Demonstrate and cultivate respect
Finally, dont discount respect when it comes to creating a magnetic culture. In fact, in
one 2012 study, respect in the workplace was revealed to be a key factor in voluntary
turnover. Find ways to cultivate and nurture respect in your workplace and it will pay off
in higher retention.

COMPENSATION
Is a systematic approach to providing monetary value to employees in exchange for work
performed. Compensation may achieve several purposes assisting in recruitment, job
performance, and job satisfaction.
How is compensation used?
Is a tool used by management for a variety of purposes to further the existance of the
company. Compensation may be adjusted according the the business needs, goals, and available
resources.
Compensation may be used to:

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recruit and retain qualified employees.

increase or maintain morale/satisfaction.
reward and encourage peak performance.
achieve internal and external equity.
reduce turnover and encourage company loyalty.
modify (through negotiations) practices of unions.
Recruitment and retention of qualified employees is a common goal shared by many
employers. To some extent, the availability and cost of qualified applicants for open positions is
determined by market factors beyond the control of the employer. While an employer may set
compensation levels for new hires and advertize those salary ranges, it does so in the context of
other employers seeking to hire from the same applicant pool.
Morale and job satisfaction are affected by compensation. Often there is a balance
(equity) that must be reached between the monetary value the employer is willing to pay and the
sentiments of worth felt be the employee. In an attempt to save money, employers may opt to
freeze salaries or salary levels at the expense of satisfaction and morale. Conversely, an employer
wishing to reduce employee turnover may seek to increase salaries and salary levels.
Compensation may also be used as a reward for exceptional job performance. Examples
of such plans include: bonuses, commissions, stock, profit sharing, gain sharing.
What are the components of a compensation system?
Employees as fair if based on systematic components will perceive compensation.
Various compensation systems have developed to determine the value of positions. These
systems utilize many similar components including job descriptions, salary ranges/structures,
and written procedures.
The components of a compensation system include
1. Job Descriptions A critical component of both compensation and selection systems, job
descriptions define in writing the responsibilities, requirements, functions, duties,
location, environment, conditions, and other aspects of jobs. Descriptions may be
developed for jobs individually or for entire job families.
2. Job Analysis The process of analyzing jobs from which job descriptions are developed.
Job analysis techniques include the use of interviews, questionnaires, and observation.

3. Job Evaluation A system for comparing jobs for the purpose of determining appropriate

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compensation levels for individual jobs or job elements. There are four main techniques:
Ranking, Classification, Factor Comparison, and Point Method.
4. Pay Structures Useful for standardizing compensation practices. Most pay structures
include several grades with each grade containing a minimum salary/wage and either step
increments or grade range. Step increments are common with union positions where the
pay for each job is pre-determined through collective bargaining.
5. Salary Surveys Collections of salary and market data. May include average salaries,
inflation indicators, and cost of living indicators, salary budget averages. Companies may
purchase results of surveys conducted by survey vendors or may conduct their own salary
surveys. When purchasing the results of salary surveys conducted by other vendors, note
that surveys may be conducted within a specific industry or across industries as well as
within one geographical region or across different geographical regions. Know which
industry or geographic location the salary results pertain to before comparing the results
to your company.
6. Policies and Regulations Compensation will be perceived as fair if it is comprised of a
system of components developed to maintain internal and external equity

What are different types of compensation?

Different types of compensation include:
Base Pay
Commissions
Overtime Pay
Bonuses, Profit Sharing, Merit Pay
Stock Options
Travel/Meal/Housing Allowance
Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes...
What are regulations affecting compensation?
FLSA
Compensation Plans
Develop a program outline.
Set an objective for the program.
Establish target dates for implementation and completion.
Determine a budget.
Designate an individual to oversee designing the compensation program.
Determine whether this position will be permanent or temporary.
Determine who will oversee the program once it is established.
Determine the cost of going outside versus looking inside.

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Determine the cost of a consultant's review.

Develop a compensation philosophy.
Form a compensation committee (presumably consisting of officers or at least including
one officer of the company).
Decide what, if any, differences should exist in pay structures for executives, professional
employees, sales employees, and so on (e.g., hourly versus salaried rates, incentive-based
versus no contingent pay).
Determine whether the company should set salaries at, above, or below market.
Decide the extent to which employee benefits should replace or supplement cash
compensation.
Conduct a job analysis of all positions.
Conduct a general task analysis by major departments. What tasks must be accomplished
by whom?
Get input from senior vice presidents of marketing, finance, sales, administration,
production, and other appropriate departments to determine the organizational structure
and primary functions of each.
Interview department managers and key employees, as necessary, to determine their
specific job functions.
Decide which job classifications should be exempt and which should be nonexempt.
Develop model job descriptions for exempt and nonexempt positions and distribute the
models to incumbents for review and comment; adjust job descriptions if necessary.
Develop a final draft of job descriptions.
Meet with department managers, as necessary, to review job descriptions.
Finalize and document all job descriptions.
Evaluate jobs.
Rank the jobs within each senior vice president's and manager's department, and then
rank jobs between and among departments.
Verify ranking by comparing it to industry market data concerning the ranking, and adjust
if necessary.
Prepare a matrix organizational review.
On the basis of required tasks and forecasted business plans, develop a matrix of jobs
crossing lines and departments.
Compare the matrix with data from both the company structure and the industrywide
market.
Prepare flow charts of all ranks for each department for ease of interpretation and
assessment.
Present data and charts to the compensation committee for review and adjustment.
Determine grades.

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Establish the number of levels - senior, junior, intermediate, and beginner - for each job
family and assign a grade to each level.
Determine the number of pay grades, or monetary range of a position at a particular level,
within each department.
Establish grade pricing and salary range.
Establish benchmark (key) jobs.
Review the market price of benchmark jobs within the industry.
Establish a trend line in accordance with company philosophy (i.e., where the company wants to
be in relation to salary ranges in the industry).
Determine an appropriate salary structure.
Determine the difference between each salary step.
Determine a minimum and a maximum percent spread.
Slot the remaining jobs.
Review job descriptions.
Verify the purpose, necessity, or other reasons for maintaining a position.
Meet with the compensation committee for review, adjustments, and approval.
Develop a salary administration policy.
Develop and document the general company policy.
Develop and document specific policies for selected groups.
Develop and document a strategy for merit raises and other pay increases, such as costof-living adjustments, bonuses, annual reviews, and promotions.
Develop and document procedures to justify the policy (e.g., performance appraisal
forms, a merit raise schedule).
Meet with the compensation committee for review, adjustments, and approval.
Obtain top executives' approval of the basic salary program.
Develop and present cost impact studies that project the expense of bringing the present
staff up to the proposed levels.
Present data to the compensation committee for review, adjustment, and approval.
Present data to the executive operating committee (senior managers and officers) for
review and approval.
Communicate the final program to employees and managers.
Present the plan to the compensation committee for feedback, adjustments, review, and
approval.
Make a presentation to executive staff managers for approval or change, and incorporate
necessary changes.
Develop a plan for communicating the new program to employees, using slide shows or
movies, literature, handouts, etc.
Make presentations to managers and employees. Implement the program.

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Design and develop detailed systems, procedures, and forms.

Work with HR information systems staff to establish effective implementation
procedures, to develop appropriate data input forms, and to create effective monitoring
reports for senior managers.
Have the necessary forms printed.
Develop and determine format specifications for all reports.
Execute test runs on the human resources information system.
Execute the program.
Monitor the program.
Monitor feedback from managers.
Make changes where necessary.
Find flaws or problems in the program and adjust or modify where necessary

PROMOTIONS

Is the appointment of a current, active classified employee

(employee) to a position in a higher salary range than the one to
which the employee is presently assigned. A promotion is also
advancement to a position that requires performing accountabilities of
significantly increased complexity or responsibility. Most promotions
will occur as a result of a job posting.
Open/vacant, benefits eligible positions will be posted in order to allow
equal opportunity for all employees to apply for and be promoted into
open/vacant position within the University.
Eligibility
Employee may be eligible for promotion, if they have satisfactorily
met of the following:
1. Successful completion of a probationary period of 180 days
(University's Employee Classification-Probationary Service
Required, HOOP, Section V, Chapter 1,3.1) with no disciplinary
action beyond a verbal warning and/or has not been on a
performance related action plan as a result of unsatisfactory
performance during the past annual review period in their
present position.
Types of Promotions
1. Inter/Intra-departmental Promotion

An intradepartmental promotion occurs when an active employee

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in a department/budget entity is promoted into an open/vacant

position in a higher salary range within the same
department/budget entity. These positions must be posted for a
minimum of three (3) working days.
2. Internal College/Division Promotion

An internal promotion occurs when an active employee, within a

College or Division is promoted into an open/vacant position in a
higher salary range within the same College or Division. These
positions must be posted for a minimum of three (3) working
days.
3. Cross College/Division Promotion

A cross College/Division promotion occurs when an active

employee within the University is promoted into an open/vacant
position in a higher salary range in another College/Division
within the University. These types of promotions are filled via the
job posting program. These positions must be posted for a
minimum of five (5) working days.
Promotional Salary Adjustments
1. When an employee is promoted, the employees salary will be

adjusted as follows:
a. To at least the minimum of the higher salary range for
classified staff positions; or
b. To a level within the salary range of the new position, based
on
the
promoted
employees
related
experience,
qualifications and the salaries of the other employees in the
same position. Promotional increases normally range
between 6% - 10%, depending upon date of last increase.
2. When promoted, the employees next merit increase will be

during the common review process and will be prorated for time
in position.

3. If a promotion is being given during the common review process,

and the promotion will be effective 9/1, the merit increase is

calculated first and then the promotional guidelines would apply.
4. Any salary increases not included in this procedure must be in

accordance with the Employment Actions Approval Process.

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Process for Promotions

1. The hiring official must follow the respective Hiring Process.
2. The hiring official must verify that the eligibility criterion for the

employees promotion has been met, including to verifying the

employees past work performance.
3. The

receiving supervisor should receive a completed

performance evaluation from the employees current supervisor.

4. Human Services (HRS) Services and the respective Director/Vice

President must approve all promotions in accordance with the

Employee Actions Approval process and ensure compliance with
applicable policies, rules and laws.

5. Any promotional increase must be approved by the respective

Director/Vice President before being communicated to the

employee.

6. After an employee has been reviewed and approved by HRS for

promotion to another department, the Directors/Managers of the

respective departments will determine a mutually acceptable
transfer date. The employee does not decide the starting date.
The receiving supervisor should also receive a completed
performance evaluation, from the current supervisor, on the
promoted employee by the agreed upon promotion date or no
later than 30 days after the effective date of promotion.
7. The employee will experience a new 180 day Probationary

Period. The probationary period is established to ensure that the

employee selected for the new position is qualified and can meet
the minimum performance standards for that position
(University's Employee Classification- Probationary Service
Required and Probationary Policy for Transfer, HOOP,
Section V, Chapter 1.3.1 and 1.3.2).

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SENIORITY PAY AND INCENTIVES
The seniority of regular employees consists of their relative tenure with
respect
to
other
employees
in
their
occupational
group
(for
service/maintenance employees) within their respective department; the
department; and campus/university. Seniority accumulates from the first day
of employment in the employee's group or special skill, but an employee is
not entitled to benefits of seniority until successful completion of the
probationary period.
In a seniority-based pay scale, employees are paid a base salary and awarded the same
increase at regularly scheduled intervals. No differentiation is made based on how well a person
performs a job -- only how long the person has been in the job. A pay scale based on seniority
has some advantages over a performance-based scale and is often used in government and with
unionized jobs. Pay based on seniority does not help private, non-union organizations to develop
a high-performing workforce that improves overall company performance.
Advantages
Seniority-based pay systems have some advantages over other pay systems. They are generally
easy to administer, since they are formula-driven with little variation. These systems eliminate
any perceptions of favoritism, since every employee is treated identically. They tend to produce a
stable workforce of loyal employees with relatively low employee turnover and create a cadre of
highly-experienced incumbents in a job who have been performing the same job for many years.
Disadvantages
Pay scales based on seniority have disadvantages that make them incompatible with a strategy to
develop a high-performing workforce. For example, since all employees are treated the same,
there is no financial incentive for an employee to do anything more than the minimum
requirement for acceptable performance. These systems tend to retain the average or belowaverage performers in a job, and higher performing employees are more likely to leave an
organization. Seniority-based pay encourages the status quo and discourages innovative or
creative thinking that might increase productivity by changing how a job is structured or how
employees perform the job.

JOB DESIGN
Job design follows job analysis i.e. it is the next step after job analysis. It aims at outlining and
organizing tasks, duties and responsibilities into a single unit of work for the achievement of
certain objectives. It also outlines the methods and relationships that are essential for the success
of a certain job. In simpler terms it refers to the what, how much, how many and the order of the
tasks for a job/s.

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Job design essentially involves integrating job responsibilities or content and certain
qualifications that are required to perform the same. It outlines the job responsibilities very
clearly and also helps in attracting the right candidates to the right job. Further it also makes the
job look interesting and specialized.
Job design is a continuous and ever evolving process that is aimed at helping employees make
adjustments with the changes in the workplace. The end goal is reducing dissatisfaction,
enhancing motivation and employee engagement at the workplace.
new-responsive
There are various steps involved in job design that follow a logical sequence, those that
were mentioned earlier on. The sequence is as follows:
What tasks are required to be done or what tasks is part of the job?
How are the tasks performed?
What amount are tasks are required to be done?
What is the sequence of performing these tasks?
All these questions are aimed at arriving upon a clear definition of a specific job and
thereby make it less risky for the one performing the same. A well defined job encourages feeling
of achievement among the employees and a sense of high self esteem.

The whole process of job design is aimed to address various problems within the
organizational setup, those that pertain to ones description of a job and the associated
relationships. More specifically the following areas are fine tuned:
Checking the work overload.
Checking upon the work under load.
Ensuring tasks are not repetitive in nature.
Ensuring that employees don not remain isolated.
Defining working hours clearly.
Defining the work processes clearly.
The above mentioned are factors that if not taken care of result into building stress within the
employees.
Benefits of Job Design
The following are the benefits of a good job design:
Employee Input: A good job design enables a good job feedback. Employees have the option to
vary tasks as per their personal and social needs, habits and circumstances in the workplace.
Employee Training: Training is an integral part of job design. Contrary to the philosophy of

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leave them alone job design lays due emphasis on training people so that are well aware of
what their job demands and how it is to be done.
Work / Rest Schedules: Job design offers good work and rest schedule by clearly defining the
number of hours an individual has to spend in his/her job.
Adjustments: A good job designs allows for adjustments for physically demanding jobs by
minimising the energy spent doing the job and by aligning the manpower requirements for the
same.
Principles of Job Design
The following key factors need to be taken into consideration when designing roles:
1. Variety
Greater variety in a job can improve the interest, challenge and commitment of the role
holder to the task. Doing the same repetitive tasks may offer little challenge and can lead
to role holders losing interest or becoming and dissatisfied.
Variety means more than simply adding an extra but similar duty. For example,
processing different forms would not make the work more meaningful as there may be no
extra challenge. Some other type of relevant activity may, therefore, be worthwhile
incorporating into the job.
Alternatively, too much variety can also be frustrating and a source of conflict and
dissatisfaction. The optimum amount of variety will differ from person to person and will
depend on the level of the position, and the needs of the job.
2. Responsibility
Individuals need to feel responsible for the work they are doing, either individually or as
part of a team. Their work should be clearly identified so they can see that they are
personally responsible for the outcomes (successes and failures) that occur as a result of
their own actions. If the responsibilities are clear, then the role holder and their supervisor
will be better able to know if the accountabilities of the position are being delivered. The
employee should be able to understand the significance of the work they undertake and
where it fits into the purpose of the organization.
3. Autonomy
This goes hand in hand with responsibility. Autonomy means giving more scope to
individuals to regulate and control their own work within the parameters set for the job.
The role holder will need to have some areas of decision-making that they can call their
own, within the overall framework of their job. For example, this might include scope for
exercising some discretion over their method of working in order to deliver.

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4. Task identity
Individuals often receive more satisfaction from doing a whole piece of work. This is
more likely to occur when a task or job has a distinct beginning and end which is clearly
apparent to the role holder and others who work around them. It is highly desirable that
people see the end results of the work they have produced, either on their own or as a part
of a team.
5. Feedback
Everyone benefits from information on how they are doing and this helps role holders
feel motivated and contributes to their development in the role.
Providing genuine feedback is primarily the responsibility of the line manager, and can
built in to the formal working relationship through e.g. regular one-to-one meetings to
discuss work objectives.
The staff review and development appraisal procedure provides one important
mechanism for nominated supervisors to communicate and give feedback to staff
members.
As well as information on the standard of their performance, the role holder will need to
know what their particular targets are and how they relate to the overall operation of the
work unit and the University. This can be clarified to a large extent through the PD33, the
Model Appraisal Form PD25 and the Personal Development Plan PD26.
In most cases a role should provide the hole holder with an opportunity for interaction
with other employees, who in turn are important sources of feedback at many levels.
Colleagues and customers should be encouraged to give appropriate feedback,
recognition and support to members of staff.
6. Participation in decision making
Most people want to take part in decision making about matters that directly affect their
work. As a result of experience they also have considerable potential to contribute.
People are, generally, far more likely to act upon and own decisions that they have had a
part in making. Being told about matters affecting people and the job they undertake is
clearly better than no communication at all, but it doesn't allow for effective involvement
which in itself can be motivational. Interchange of ideas is better still and unless people
can participate in the discussion of matters that affect their work, they may not be
satisfied in their job, or contribute to their full potential. Participation and contribution to
wider-ranging issues can be encouraged through e.g. institutional meetings, specialist
subject discussions.
7. Recognition and support
People usually aspire to have jobs that contribute to self-respect, particularly through
acceptance and recognition by fellow workers and their supervisors. Jobs need to

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encourage sound working relationships between individuals, provide clearly defined
areas of responsibility and where possible, support team working. This can reduce an
individual's feeling of isolation, which may result in negative feelings about work and the
workplace.
8. Working environment

A job must be designed to support a safe and healthy working environment that is inclusive, nondiscriminatory, free from harassment, occupational health and safety hazards.