de la Rama, Carmela R. Ting, Raisa Lenor Y.

Blue Yellow Maintaining a Quality Workforce

As defined by MacMillan Dictionary, workforce is the total number of people who work in a particular company, industry, or area. The workforce is the backbone of a company. It is through the workforce that a company is able to function. According to Noe (2008), the workforce is a companys intangible asset that contributes to its competitive advantage. It is unique from that of other companies and difficult to copy. Human capital, intellectual capital, social capital, and customer capital all come with the companys workforce. Human capital refers to the experiences, inspiration, creativity, energy, and enthusiasm the employees bring to a company. Intellectual capital is the knowledge and skills the employees possess. Social capital is the relationship the employees have with each other. Customer capital is the relationships with people or organizations outside of the company which are critical in the success of the business, i.e. suppliers, customers, and government agencies (Noe, 2008). As an important aspect of a business entity, human resources are given proper training and development, compensation and benefits, and safety. As employees continue to stay in a company, they would want to have bigger responsibilities. It is the companys responsibility to give them the proper training and development to better equip them for more demanding jobs. Training and development is beneficial for both the employer and its employees. Employees would be able to acquire more skills; they would be ready to deal with any changes the work environment demands; they will also be more satisfied which means

higher motivation and creativity; and they will be more ethical. All these will result in higher productivity which is very critical for the company (Schermerhorn, 2009, University of California San Francisco, n.d., Arthur, 2004). Training and development are often perceived to be one and the same. Although they are similar in many ways, training and development are focused on two different things. Training is focused on the present while development is concentrated in preparing for the future. Another difference between the two is training is mandatory for all employees while only selected employees who exemplify managerial/supervisory skills are given the opportunity to be a part of development programs. Training is more focused on improving employees skills to apply in their current jobs and be more productive. Development on the other hand aims to prepare employees for changes in the work environment, like new technology or new systems if any (Decenzo & Robbins, 2002, Noe, 2008). Training is a critical tool in the companys attainment of competitive advantage. In order to achieve this, it is important that training is linked with the goals of the company. Training must result in increased intellectual capital that is improvement in knowledge, basic skills, technology-related skills, interactive skills (with customers and staff), and behavior (Noe, 2008, Arthur, 2004). Training has two methods: on-the-job training and off-the-job training. On-the-job training, as its name implies, takes place in the workplace where employees learn hands-on in actual work situations. The benefits of on-the-job training is that is does not require an excessive amount of funds. The trainers have experience on the job, and

whatever skills the employee learns can be applied directly to the job (Decenzo & Robbins, 2002, Blacksacademy, 2003). On-the-job training, according to Decenzo and Robbins (2002), has a few disadvantages. Expect low productivity because employees are still in the process of learning to do the job so they are bound to make mistakes, even cause accidents. Trainers may be good at their jobs but are unable to pass on their skills and knowledge to the trainee. Trainers might even pass on bad work habits. In spite of these disadvantages, the benefits of on-the-job training often outweigh them in the long run. Off-the-job training takes place outside the workplace. Decenzo and Robbins (2002) mentioned that compared to on-the-job training, it is more costly because of facilities like lecture halls, conference rooms, technology-equipped classrooms, training facilities that are needed, and professional instructors. Since they are not in the workplace, they will not be able to experience the real thing. Listening to lectures or simulation, self-study, or being involved in games that are work-related might not be very effective, according to Blacksacademy (2003). While employees are taken away from their jobs, the company must provide them with the required compensation. On the other hand, Blacksacademy (2003) explained that employees will have a better chance of concentrating and it is less stressful on the employees part. Development helps employees prepare for changes that may occur sometime in the future whether its for a change in their own careers or a change in the work environment. Development is concerned with enhancing employees skills for technological advancement and any changes in the companies work system. For the

selected few with management potential, their skills are being developed further for more substantial positions in the future (Noe, 2008). Formal education, job experiences, interpersonal relationships, and assessments are some development methods stated by Noe (2008). Formal education programs are normally offered by universities or colleges. They may be on-site or off-site. Most companies prefer on-site programs simply because they can make sure that the programs are aligned with their needs. Off-site programs are where employees go to university to take up a short course, to hear a lecture or participate in business games. Some employees choose leave work temporarily to earn an MBA. Their tuition fees will be reimbursed by the company, this is called tuition reimbursement (Noe, 2008). However, there is a contract that states how many years the employee must remain in that company. Employees of Citibank Philippines and Datacraft Philippines can have their tuition reimbursed when they go and take up postgraduate studies. Assessment is the first step in employee development. This is the point where employees who exhibit exceptional skills and are likely to assume managerial positions in the future are selected to undergo development programs. In order to identify these employees, their abilities, interactive skills, values, and behavior are being evaluated by their managers or colleagues (Noe, 2008). In interpersonal relationships, employees pick up new knowledge and skills with the help of an employee whos had more experience in the company. Mentoring is one type of development through interpersonal relationships. Mentoring is one type of development through interpersonal relationships. Mentoring involves a highly

experienced senior employee guiding a much less experienced junior employee in attaining new skills and knowledge. Mentors are attracted to employees who showcase the ability of lead in a group, who are decided on what they want, and who can cope with different situations, or who share the same morals and principle they have (Noe, 2008). Coaching is another type of development through interpersonal relationships. Unlike mentoring which involves a senior and a junior employee, coaching relationships take place among colleagues. Coaches contribute to an employees development by evaluation based on psychological tests, interviews with their co-workers, and assessments. They can also help an employee find an expert who is suitable in attending to the employees concerns or get him/her a learning opportunity (Noe, 2008). Job experience is believed to be the most common and most effective development program (McCall, Lombardo, Morrison, 1998, as cited in Noe, 2008). This is where employees get the chance to stretch their abilities with the challenges, problems, relationships, duties, and demands they encounter along the way (Snell, 1990, as cited in Noe, 2008). Compensation, which is the primary driving force of employees to work, is what they receive in return for their efforts in achieving the organizations goals (Medina, 2006). Pfeffer (1999) believes that the salary should be commensurate to the efforts of the employee. A higher salary may often result to better productivity (as cited in Maximiano, 2006). That is why it is important to consider factors such as time and productivity in order to say that a compensation structure is equitable and acceptable to

both the employers and employees. In compensating employees, there are three kinds, namely: pay, benefits and incentives. According to Medina (2006), the salary or pay is the regular payment received by every employee for doing his job. The total pay is equivalent to the product of the hourly wage and the number of hours he has worked. On the other hand, commissions are percentages earned by sales while piece-rate basis is computed by the number of units a worker has produced in a factory. Employees would want more than just the basic salary they receive. Thus, it is important that the company provides a good compensation structure with benefits. Benefits are rewarded to employees who have been serving an organization for a long period. Furthermore, benefits are mainly for security purposes of the employee (Decenzo and Robbins, 2007, Medina, 2006). Benefits, which are a form of indirect compensation, include various types of leaves and insurances. It is ordered by law that employees be given paid vacation, paid holidays and paid sick leave. Medical and hospitalization expenses, medical insurances and other expenses related to these are covered by the PhilHealth program (Maximiano, 2006; Medina, 2006). Medina (2006) also gave the types of benefits here in the Philippines such as the Social Security System (SSS) which functions to protect the security of employees working in private organizations. Included benefits are for sickness, maternity, disability, old age and death. In contrast, the GSIS or Government Service Insurance functions like the SSS but covers only employees who are working in government institutions. On the other hand, the PAG-IBIG fund is government-controlled and offers loans such as

housing loans. The employees contribute the same amount as the employers and the total of the contributions plus the earnings can be collected upon retirement of the employee. The thirteenth month pay is also part of the benefits which employees expect to receive yearly. It is an additional salary equivalent to one month usually given at the end of the year. It has become mandatory and each employee is entitled to receive this kind of benefit. Medina (2006) points out that giving benefits to employees has three effects: maintaining competitiveness, attracting employees and retaining good employees. It does not guarantee a satisfactory employee performance but it initially helps in accomplishing an organizations goals. Likewise, incentives are given to employees who have done their work more than what is expected (Medina, 2006). They are essentials of compensation paid to employees who achieve targets that the company and the employees expect to be attained in a longer period of time (McKeown, 2002). Incentives are rewards for people who have done a job very well done and it is a motivating factor to the employees to work more efficiently and productively (Maximiano, 2006). Incentives usually depend on the performance of an individual. It also views the different needs of the employee to make sure he does his job well. Incentives, as stated by Medina (2006), are categorized into three types: individual, group, and organizational incentive plan. Individual incentive plans are motivators for individuals especially the top employees to work beyond what is expected while group incentive plans serve as rewards to team projects or departments who have showed great teamwork. Organizational incentive plans are rewards given to the

organization as a whole such as gain sharing, profit sharing and employee stock ownership. As a whole, this compensation structure functions as an attraction to future employees, a factor to retain them and a motivation to improve their performance in the job (Medina, 2006). Though the compensation must be fair to the employees efforts, the company must also consider its capacity to pay in order to maintain its competitiveness in the market and retain its employees (Sison, 2003). Compensation is a big factor in applying for a job especially to those employees who are highly skilled. That is why highly skilled Filipino workers and professionals are going abroad to find offers with higher pay. Compensation is relatively low in the Philippines compared to that of other countries. This problem is provoking the best employees in companies here to look for better opportunities abroad. Although companies have responded by offering very generous benefits, it wasnt enough to stop employees from leaving. Thats why the number of our information technology experts and seafarers abroad continue to escalate. One expert even noted that a company is considered lucky if they didnt have one employee working hard to get out of the country (Skene, 2004). Employee productivity is dependent on the workers health and condition. Thus, preventive measures and health policies are needed in maintaining a healthy and safe workplace for the employees (Medina, 2006). There are two important reasons why the safety of employees is important to a company. The first reason is because the company would have to compensate on the employees medical expenses, which is the direct cost. Aside from that additional costs must be incurred for the repair of damages

in the equipment, personnel who will investigate on the cause of the accidents. Furthermore, production will be affected but theyll still have to compensate on the time the employee is unable to go to work while he/she is in recovery. These additional expenses are referred to as indirect costs (Decenzo & Robbins, 2002). Causes of accidents are categorized into human causes, which is the more common cause, and environmental causes. Human causes are those of errors made due to irresponsibility that is, carelessness, inebriation, and daydreaming. Sometimes it is because the employee lacks knowledge about the job as he/she is still in training. Environmental causes can be attributed to the tools, equipment, physical plant, and the environment in the workplace (Decenzo & Robbins, 2002). It is important that employees are educated about the standard operating procedures in the workplace and informed how to use safety equipment whether in times of emergency or for regular personal protection (Medina, 2006). These are some helpful accident preventative measures as mentioned by Decenzo and Robbins (2002): (1) Safety rules and regulations must be strictly enforced. If necessary, implement corresponding punishments for those who dont follow. (2) Put up visible signs that promote safety. They may be in the form of safety slogans, accident prevention articles, or a signboard that records the number of days the plant has gone on without any accidents. (3) Accident preventative measures must be part of the employees training. (4) Design jobs and equipment so as they can avoid operator fatigue, boredom, and daydreaming. (5) Provide employee with the necessary safety equipment such as boots, gloves, hard hats, safety goggles, masks, and noise mufflers.

Here in the Philippines, it is evident that the workers arent provided the necessary safety equipments. Not every worker in construction sites has helmets,

gloves, or safety boots. Many of them are wearing shorts and flip-flops at work. Fishermen are not advised to use the Bangka to go fishing if heavy rains and strong winds and currents come. It is highly dangerous for anyone at sea. Fishermen are supposed to use industrial fishing boats. They are much bigger and sturdier and can withstand strong currents. Garbage collectors are exposed to so much on-the-job hazards. In other countries, they wear steel-toe boots, goggles, long pants, and a helmet to avoid those hazards. On the other hand, garbage collectors here use their bare hands to pick up trash, while wearing only flip-flops and hanging on to the back of the garbage truck. A healthy workforce means higher productivity. Employees would be able to work at their full force if they didnt have any headaches, watering eyes, or breathing difficulties. They would be able to focus more on their jobs knowing that theyre safe and free of any hazardous materials and fumes that might threaten their health (Decenzo & Robbins, 2002). Decenzo and Robbins (2002) provided some tips on maintaining a healthy workplace: (1) Employee complaints signal the need to investigate on the safety of the workplace. (2) Unsealing closed vents to allow employees to get enough fresh air would save the company a lot more compared to when it tries to conserve energy by keeping the vents closed.(3) Before occupying a new building, allow it to sit vacant until the worst fumes dissipate then test the building for any toxins to keep away from potential

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health problems. (4) Maintain a smoke-free environment. Set up a smoking area equipped with its own ventilation system for the smokers. Truly, prevention is better than cure because following preventive measures may lessen, if not eliminate, the risks of accidents and unwanted incidents in the workplace (Medina, 2006). A survey was conducted in De La Salle University with 30 participants, 10 professors, 10 office staffs, and 10 security personnel. When asked if high compensation is the most important factor that motivates them to perform more efficiently, 10% or 1 of the 10 professors, 20% or 2 of the 10 security personnel, and none of the office staffs strongly agree while 50% or 5 out of 10 of the professors, 60% or 6 out of 10 of the security personnel, and 50% or 5 out of 10 of the office staffs agree. Only 20% or 2 out of 10 of the professors, 10% or 1 out of 10 of the office staffs disagree. For the next question, 20% or 2 of the 10 professors, 10% or 1 of the 10 office staffs, and 50% or 5 of the 10 security personnel strongly agree and 20% or 2 of the 10 professors, 30% or 3 of the 10 office staff, and 30% or 3 of the 10 security personnel agree that periodic increase in compensation encourages them to stay in the company. From these results, it is clear that compensation is in fact a huge factor of the employees efficiency in performance and their commitment to the company. Since for some, if not most employees, their primary reason for going to work is to earn a living. On the other hand, some employees go to work to have a sense of responsibility or to make a contribution to society. For a few, they dreamt of having their jobs. To prove this point, 90% or 9 out of 10 of the professors, 80% or 8 out of 10 of the office

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staff, and 80% or 8 out of 10 of the security personnel would remain in a company if they would be involved in development programs that would allow them to assume higher positions in the future. In addition, 100% of all professors, staffs and security personnel find training helpful in improving their skills in the job. 87% or 26/30 of surveyed answered that high salaries doesnt compensate on the health and safety risks they are exposed to. It proved that most workers would consider their safety in the job first before the salary they would receive. In addition, according to Maximiano (2006), the pay isnt the only motivation of employees but they also consider their self-satisfaction and success in career. That is why there is a need to treat them well because organizations benefit from them. For the few who agreed, it is because they are willing to sacrifice their well-being for the sake of providing for their families especially in the Philippines because there arent enough jobs available. As a whole, effective management of human capital is a significant factor to consider in establishing and sustaining an organizations competitive advantage (Sison, Noe et al, Birla, Werther and Davis, Goldsmith et al, Andres, Pell & Ortigas, 2000, as cited in Maximiano, 2006). Overall, organizations that train a greater percentage of employees report improvements in performance and productivity. Increased overall profitability, improved quality of products and services, increased sales and revenues, improved levels of customer and employee satisfaction, and the ability to retain top performers are just some of the positive by-products by training (Arthur, 2004, p. 200).

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REFERENCES

Arthur, D. (2004). Fundamentals of Human Resource Management. Retrieved September 29, 2011, from http://0ehis.ebscohost.com.lib1000.dlsu.edu.ph/ Blacksacademy. (2003). Training and Development. Retrieved October 17, 2011, from www.blacksacademy.biz Decenzo, D.A., & Robbins, S.P. (2002). Human Resource Management (Seventh Edition). United States of America: John Wiley & Sons, Inc. Decenzo, D.A., & Robbins, S.P. (2007). Fundamentals of Human Resource Management (9th ed.). New Jersey: John Wiley & Sons, Inc. Maximiano, J.M.B. (2006). Managing Human Resources in the 21st Century. Quezon City: Rex Bookstore Inc. McKeown, J.L. (2002). Retaining Top Employees. New York: McGraw Hill. Medina, R.G. (2006). Personnel and Human Resources Management. Manila: Rex Bookstore, Inc. Noe, R.A. (2008) Employee Training and Development (Fourth Edition). Singapore: The McGraw-Hill Companies, Inc. Shermerhorn, J.R. (2009). Management (Tenth Edition). United States of America: Wiley Skene, C. (2004). Change and Continuity: Recent Developments in HRM in the Philippines. Rowley & J. Benson, The Management of Human Resources in the Asia Pacific Region (Convergence Reconsidered) (p. 106 128). London: Frank Cass Sison, P.S. (2003). Personnel Management in the 21st Century. Manila: Rex Bookstore, Inc. University of California, San Francisco. Guide to Managing Human Resources. Retrieved from University of California, San Francisco database Workforce. (n.d.). In Macmillandictionary.com.Retrieved October 31, 2011, from http://www.macmillandictionary.com/dictionary/american/workforce

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Maintaining a Quality Workforce

Thesis Statement: As an important aspect of a business entity, human resources are given proper training and development, benefits and safety. Outline: I. Importance of Quality Workforce A. Knowledge, Skills and Abilities 1. Human Capital 2. Intellectual Capital B. Relationships with Stakeholders 1. Social Capital 2. Customer Capital II. Ways of Maintaining a Quality Workforce A. Training and Development 1. Training Programs a. On-the-job training b. Off-the-job training 2. Development Programs a. Formal education b. Job experiences c. Interpersonal relationships

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i. Mentoring ii. Coaching d. Assessments B. Compensation and Benefits 1. Salary a. Hourly Wage b. Commissions c. Piece-rate System 2. Benefits a. PhilHealth b. Social Security System c. PAG-IBIG fund d. Thirteenth Month Pay 3. Incentives a. Individual incentive plan b. Group incentive plan c. Organizational incentive plan C. Safety and Health 1. Causes of Accidents a. Human causes b. Environmental causes 2. Preventative Measures a. Safety rules and regulations

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b. Education on safety c. Safety equipment 3. Maintaining a Healthy Workplace III. Effects of Proper Human Resource Management a. On the Employees 1. Higher Efficiency in Performance 2. Long-term Commitment b. On the Business 1. Increased profitability 2. Improved quality of products and services

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APPENDIX

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