Our Lady of the Pillar College-Cauayan, Inc.

College of Education
GRADUATE SCHOOL
Cauayan City, Isabela

HUMAN RESOURCE MANAGEMENT

Topic Reflections (Chapter 7 & 8)

JULIETA G. ASUNCION September 07, 2019

MAED FILIPINO

CHAPTER VII: CHANGES IN PERSONNEL STATUS

Promotion is vertical movement of an employee within the organization. In other words,

promotion refers to the upward movement of an employee from one job to another higher one,
with increase in salary, status and responsibilities. Promotion may be temporary or permanent,
depending upon the needs of the organization. Promotion has an in-built motivational value as it
elevates the authority, power and status of an employee within an organisation. It is considered
good personnel policy to fill vacancies in a higher job through promotions from within because
such promotions provide an inducement and motivation to the employees and also remove
feelings of stagnation-and frustration.

On the other hand, when it comes to changes in status, demotion is completely opposite
to promotion. In an organization, Demotion refers to movement of employee from a higher order
to immediate lower order whereby a decrease in pay or responsibility is seen. Demotion becomes
a necessity when an employees is unable to perform his duties satisfactorily.

Talking about these two different concept, we can clearly attest that the causes of any
change in our working status is largely affected by our performance in the organization.

CHAPTER VIII: COMPENSATING HUMAN RESOURCES

Compensation is a primary motivator for employees. People look for jobs that not only
suit their creativity and talents, but compensate them-both in terms of salary and other benefits-
accordingly. Compensation is also one of the fastest changing fields in Human Resources, as
companies continue to investigate various ways of rewarding employees for performance.
 When setting the level of an employee’s monetary compensation, several factors must be
considered. First and foremost, wages must be set high enough to motivate and attract good
employees. They must also be equitable-that is, the wage must accurately reflect the value of the
labor performed. In order to determine salaries or wages that are both equitable for employees
and sustainable for companies, businesses must first make certain that they understand the
responsibilities and requirements of the position under review.
 Our Lady of the Pillar College-Cauayan, Inc.
College of Education
GRADUATE SCHOOL
Cauayan City, Isabela

HUMAN RESOURCE MANAGEMENT

Topic Reflections (Chapter 7 & 8)

MARVIN E. ASUNCION September 07, 2019

MAED FILIPINO

CHAPTER VII: CHANGES IN PERSONNEL STATUS

Changes in personnel status of employees is one of the most integral and

inevitable aspect of any working professional. We continuously seek
improvement for ourselves personally and professionally for the purpose of
elevating our current status. On the other hand, there are also factors that may
cause delay or even demotion on our professional life.

One of the main reasons why organizations give incentives for employees
in the form of promotion is for them to give their maximum effort and loyalty to
the firm and to give recognition and reward for a good performance. Ways
which good performance will be rewarded are salary increase, special
commendation and promotion to higher position. For the basis for promotion,
lay off, rehiring, transfer and other action that have a bearing in change of
personnel status.

In connection with promotion, demotion also occurs when a classified

employee is reassigned to a position with a salary range that is lower than the
salary range of the former position. A demotion may occur when an individual is
assigned to a position that requires performing accountabilities of significantly
decreased complexity or responsibility; or due to age, poor health and if the
employee was unable to perform satisfactorily in the higher-level position or the
employee’s request for a demotion is approved; or as a result of a
reorganization, disciplinary action, due to misconduct, violating policy,
procedure or proved guilty.

CHAPTER VIII: COMPENSATING HUMAN RESOURCES

Human Resource Management (HRM) has never been as significant as it is

today. Companies want to attract, retain and motivate brains to meet
objectives. Today Humans are regarded as one of every company’s assets so
they need to be efficiently and effectively managed. One of the tools
companies use to attract, retain and motivate its people is Compensation
Management. A well designed compensation and benefits plan helps to
attract, motivate and retain talent in your firm. Compensation includes
payments like bonuses, profit sharing, overtime pay, recognition rewards and
sales commission.

Compensation can also include non-monetary perks like a company-paid

car, company-paid housing and stock opportunities. Compensation is a vital
part of human resource management, which helps in encouraging the
employees and improving organizational effectiveness. Compensation
packages with good pay and advantages can help attract and retain the best
employees. A quick survey of employees about compensation is likely to expose
an expectation that wages are fair and cover basic living expenses, keep up
with inflation, leave some money for savings (perhaps for retirement) and leisure,
increment over time.