Human Resource Management in Public Administration

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
OPEN UNIVERSITY
Sta. Mesa, Manila
DR. FLORIÑO O. IBAÑEZ
COPYRIGHTED 2013
ISBN NO.: 978-971-94560-8-7
An Overview of Human Resource Management [The Definition and Scope of HRM] 1

THE OPEN UNIVERSITY: BRIEF HISTORY
The Polytechnic University of the Philippines Open University (PUP OU) otherwise known as the
"Pamantasang Bayan", which formally commenced in 1990, is a fresh and innovative system of delivering
higher educational services in a manner that differs from the formal, highly structured, and classroom-
oriented traditional approach.
The PUP OU is in consonance with the 1987 Philippine Constitution. Article IV mandates that quality
education at all levels should be made accessible to all Filipinos and self-learning, independent, out-of-
school study programs, non-formal, informal and indigenous learning systems, be developed particularly
those which respond to community needs.
The PUP OU caters primarily to the needs of the economically disadvantaged students, out-of-school
youths, teachers, administrators, managers, professionals and ordinary employees who want to pursue
degree or non-degree courses but are unable to do so due to accessibility, time, domestic and economic
constraints.
Ideally, under the Open University, the students do not have to attend classes inside a classroom. They do
not even have to enter the physical campus(es) of PUP. However, because of the discovered need of the
PUP student to meet and encounter their classmates and subject specialists (instructors), they are required
to attend contact sessions per subject.
The PUP OU's thrust answers the call to higher education institutions to continue contributing to the
efforts of the government of realizing its objectives of poverty alleviation, global competitiveness and
sustainable development, for the benefit of the present and future generations of Filipinos.
The PUP Open University was established in the 1970s. The initial offerings were non-degree (technical-
vocational) courses. PUP first thought of the Open University concept when then PCC President Nemesio
E. Prudente saw the need to provide access to educational opportunities to millions of Filipinos who
wanted to study but were constrained by time, distance and other circumstances. He was assisted by then
Assistant Vice President for Branches and Head of the OU and now Vice President for Academic Affairs
Dr. Samuel M. Salvador together with Prof. Teofilo H. Montemayor. They worked relentlessly in
establishing linkages with different organizations and laid down the foundations of the OU system in
PUP. However, the initial implementation fizzled out when Martial Law was declared in 1972.

When Dr. Prudente was reinstated as PUP President in 1986, he again revived the concept of the Open
University. It was formally launched in March 1990. Dr. Prudente and Dr. Salvador believed in bringing
education right at the doorsteps of the people. This concept was supported fully by Dr. Zenaida A. Olonan
during her presidency. The appointment of Dr. Ofelia M. Carague as president of PUP in 1998 augured well
for the PUP OU since she has been one of the prime movers of the OU in the University. In the presidency
of Dr. Dante G. Guevarra, the PUP OU has grown leaps and bounds as it established the three schools that
presently compose it.
While broadcast-based distance learning systems in the Philippines were popular in the 1960s, it was PUP
which first implemented the concept of the Open University, that is, a university within a university
offering both degree and non-degree programs in the country duly certified by corresponding certificates
or diplomas upon satisfactory compliance of course requirements.
GOALS
 Relevant degree and non-degree graduate and undergraduate programs;
 Innovative teaching-learning systems;
 E-learning;
 Effective and efficient technology-based instructional strategies and approaches;
 State-of-the-art instructional materials;
 Pertinent and productive researchers;
 E-linked; and
 Quality administrators, subject specialists and graduates.
MISSION
The PUP Open University is committed to provide quality education through the open and distance
learning system, which is responsive to the needs and challenges of a technologically advanced and globally
linked society.
OBJECTIVES
The PUP Open University programs will:
1. provide an affordable and portable education for all, and thus help bring about a better quality of life
for all Filipinos;
2. offer an effective and efficient alternative delivery of instruction, and training;

3. Re-engineer the traditional learning approaches through the use of printed modules, audiocassettes,
video tutorials, multimedia course wares and other creative, innovative, and cost-effective learning
delivery channels;
4. establish linkages and networking strategies with national and international institutions and
government and non-government institutions for the optimum use of resources;
5. promote general efficiency and self-reliance among students, teachers, school and public
administrators, and managers of corporations and business enterprises.
OU SUPPORT PROGRAM
Although you will not be attending classes every week, the same support is available from PUP OU. The
number of hours for a 3-unit course is 54, 18 offline (face- to- face) and 36 online.
OU LEARNING APPROACH
Each course guide follows a special format designed for optimum learning at a distance. It contains the
learning content, objective, activity, material and learning outputs outcomes.
The course modules are prepared by the course author/facilitator. Each lesson starts with a brief summary
of what you will learn. The learning goals identify the most important concepts that will be discussed in
the lesson. Following the learning goals, you will have a list of key words and phrases that are defined in
the context of the lesson and in the glossary at the back of the course manual. Even if you are familiar with
these terms, it is important to take note of how the professor will define the term in the context of your
course. The course contents of each lesson are presented as reading materials.
The reading assignments are listed and occasionally the facilitator will give you some special insights into
the reading before you begin. The reading may come from books available at the Ninoy Aquino Learning
Resource Center. Further readings are provided through e-books and e-journals available for officially
enrolled students at the PUP OU.
Each facilitator has carefully selected the references, e-books and e-journals that are in the Course
Materials List. Exercises are provided at the end of each lesson for the student to answer and submit to
the facilitator.
EXAMINATION AND PROCTORING

You will have a final examination at the end of every course. Final examinations must be proctored during
a scheduled date.

Comprehensive examinations are required to earn a Master’s Degree; Comprehensive examinations are
given in a written an integrated format. The comprehensive exams are proctored on a date scheduled by
the PUP OUS.
GRADING POLICY
Any student receiving a grade below 2.0 (for Master's Degree) in any of his course requirements will either
have to repeat the course or take a substitute course in the same discipline or area with the approval of the
PUP OU Program Chair. However for purposes of graduation, the overall average grade in the academic
course should be 2.0.
The following rating system shall be adopted by the Open University:
A student whose course work is incomplete at the time the grade is submitted shall be given a grade of
incomplete (INC). If he fails to complete the course work within one (1) year from the issuance of the grade
of INC, the grade lapses to No Credit (N).
A student who voluntarily drops a course he is registered in automatically receives “W” when he files a
Withdrawal Form at any time up to the last day of the last week of class prior to the final examination.
A student who has two or more “Incomplete” grades shall not be allowed to enroll until he has removed
his “Incomplete” grades.

COMMUNICATING WITH OU
Keeping in touch is a very important way to ensure that you will earn your Master’s Degree in a timely
fashion. We are here to assist you in any way possible. If you are having problems or are unclear about
policies or procedures, please let us know. Questions of a procedural nature or questions that impact on
deadlines may best be handled by telephone, fax or e-mail. Our Office hours are Monday through Friday,
8 am to 8 pm.
PRIVACY
We respect the rights of students that include their academic records and personal information. Only
appropriate personnel have access to this information. PUP OU does not make this information available,
even to worthwhile organizations which might be of interest to students, without obtaining the student’s
permission.
CLOSING
We look forward to serving you. We hold in high regard your academic qualifications and intellectual
capabilities. We will do all we can to assist you as a PUP Open University student and look forward with
great enthusiasm to working with you during the next few years. Welcome to the PUP Open University
family and may God bless you.

THE MASTER IN PUBLIC ADMINISTRATION PROGRAM
The program is designed to provide excellent foundation for existing potential public
administrators. Students of the program are exposed to the theoretical and paradoxical
understanding and appreciation about the needs, concerns, issues, trends and problems of
contemporary public organization and administration.
OBJECTIVES
 To produce responsible, committed, progressive public administrators who are pro-active,
innovative, creative and transformational in managing the affairs of public organizations
in particular and in sharing and teaching the discipline of public administrations in
general.
 To provide advance training for professional careers in public service and administration.
 To enhance competencies and leadership in specialized areas of public administration.
 To develop expertise in the utilization of analytical tools and techniques in research
relevant to Public Administration.

THE AUTHOR
DR. FLORIÑ O. IBAÑEZ
Dr. Ibañez is a career government official with more than 40 years of government service, starting as a clerk,
then gradually rising through the ranks, serving as position classification analyst, supervising information
officer in the Office of the President. In 1985, President Marcos appointed him to a directorial position
assigned as presidential staff director of the personnel office of Malacañang.
Under President Corazon C. Aquino’s Administration, Dr. Ibañez was appointed to full director, head of
the personnel office. President Fidel V. Ramos subsequently appointed him to CESO Rank III, Presidential
Staff Director (Director IV) after qualifying in the Career Executive Service Examination and passing the
assessments conducted by the Development Academy of the Philippines for the CES Board. He had served
seven Philippine presidents before he bowed out of the service.
His stints in the academe started in 1990 when the late Dr. Nemesio Prudente, then President of the
Polytechnic University of the Philippines (PUP), appointed him as part-time instructor in history in the
PUP College of Arts. His credentials backed him up, being a graduate of UP with a degree of Bachelor of
arts major in history and government, and Master of Public Administration which he pursued under the
Civil Service Commission Scholarship Program. He also earned masteral units in history and government
from the Ateneo Graduate School.
While still in the service, he was sent by the Office of the President to take a course in advanced
management at the Administration College in Melbourne, Austrlia under the Colombo Plan.

When he finished his doctoroal degree in public administration in the PUP Graduate School, he was asked
to teach political science subjects in the PUP Graduate School and PUP Open University System in PUP
Sto. Tomas, Batangas Center.
Dr. Ibañez is now a special lecturer teaching masteral and doctoral subjects in public administration in
the PUP Graduate School and masteral subjects in public administration at the PUP Open University
System.

MODULE 1
AN OVERVIEW OF
HUMAN RESOURCE
MANAGEMENT
LESSON 1
THE DEFINITION
AND SCOPE OF HRM
Learning Objectives
At the end of this Module, you should be able –
1. acquire a full understanding of the definition and scope of the functions of HRM in an
organization;
2. familiarize with the differences between HRM in the public sector and HRM in
private enterprise; and,
3. identify the three (3) traditional functions of HRM.
Keywords and Phrases
Basic HRM Functions Operative HRM Functions Job Creation

Salary Settings
What is HRM?
Stahl (1983) cited Megginson (1981) in defining personnel function as “the performance of
all managerial functions involved in planning for, recruiting, selecting, developing and utilizing,
rewarding, and maximizing the potential of the human resources of an organization.” This
definition fits both the public service and the private enterprise.

Martires (1999) with the private sector in mind, defined HRM as the art and science of
acquiring, motivating, maintaining and developing people in their jobs in the light of their
personal, professional and technical knowledge, skills, potentialities, needs and values and in
synchronization with the achievement of individual, organization and society’s goals.
This definition can be illustrated in a conceptual framework where both the individual
and organization interact with each other having their respective sets of goals, needs, and culture,
and influence each other promoting their respective ends (Martires, 1999).
Sison (1981) as revised by Payos (2003) considered personnel management as “the function
of management concerned with promoting and enhancing the development of work effectiveness
and advancement of human resources in the organization.” He cited two functions of HRM,
namely: the basic functions of planning, organizing, directing, coordinating and controlling; and
the operative functions of recruiting, placing, utilizing, motivating and compensating employees.
Leveriza (1990) cited Nigro (1959) and viewed personnel administration as the totality of
concern with human resources of an organization. This concern accordingly consists of the art of
selecting and utilizing employees to gain the maximum of quality and quantity in outputs and
services from the working force.
Milkovich and Boudreau (1991) defined HRM as a series of decisions about employment
relationship that influence the effectiveness of employees and organizations.
Ordway (1951) may have inspired Martires’ definition of HRM as the “utilization of the
best scientific knowledge so that the organization’s and the individual’s purposes are reconciled
to the fullest possible extent, while the working together of these purposes realizes also a genuine
social benefit.”

Scope of HRM
The scope of HRM for discussion in this module and the succeeding module will follow
the grouping made by Martires, such as HRM functions of job creation and salary setting,
acquisition, maintenance, and development. Research which is not very popular in the public
service has been eliminated. In its place, public sector unionism and ethics in government service,
and the current trends of public personnel administration have been included.
Job Creation and Salary Setting include classification of positions and salary
determination in the public service under the standardization law (RA 6758).
Acquisition or procurement functions include personnel planning, recruitment, screening,

selection, and placement. This is a critical phase of HRM function because if properly done, it
reduces high cost of turnover and frequent replacement of personnel.
Maintenance functions include orientation and induction, motivation, performance

evaluation, benefits and other incentives, personnel relations, personnel records keeping,
complaints and grievance, and discipline.
Development functions include training and personal development, career planning,

counseling, and physical and cultural development.
In the succeeding four (4) modules, public sector unionism, norms of conduct and ethical
standards in the public service, the new trends in HRM, and retirement are discussed.
Differences between HRM in the public service and HRM in the private enterprise
What makes HRM in public service different from HRM in private enterprise is primarily
control from the state, and control emanating from the nature of the government job and from the
expectations of the public
In the traditional mechanistic functions of HRM, the government and private business are
practically the same. It is in personnel policies that the two sectors differ. HRM in public service

in the Philippines is governed by the Civil Service Law and Rules being implemented by an
independent constitutional body, the Civil Service Commission, which has nothing to do with
the private business.
Stahl (1983) has listed certain features which distinguish public service from the private
sector affecting HRM policies and practices as follows:
1. Public service is more urgent than services performed by private organizations,

2. Public service is monopolistic or semi-monopolistic character,
3. Public service is governed by law and rules which leave little room for flexibility and
maneuverability for under the law, a public service employee is told not only what not
to do, but more importantly what he can do, whereas, a businessman is only told
what not to do.
For example a department secretary during the administration of President Corazon

Aquino stayed only for more or less three months in the public service and resigned. He
complained about lack of flexibility which he used to have in the private sector from where
he came from. He cited the Department of the Budget and Management, Civil Service
Commission and the Commission on Audit as the stumbling blocks to his own style of
management. Government controls proved too much for him.
4. Public service is not governed by market price, which means government service must
be extended to all without discrimination under the principle of equality before the
law, and public service personnel must maintain strict impartiality; and,
5. Public service is conducted under public scrutiny.
READING ASSIGNMENT
E-Journals/E-Books
 PUP website: infotrac.galegroup.com/itweb/pup
 Password: powersearch

EXERCISES/WRITTEN ASSIGNMENT
1. Define HRM and its scope in an organization.

2. Differentiate public service from private business.
3. Cite three (3) traditional functions of HRM.

LESSON 2
MERIT SYSTEM
Learning Objectives
1. define merit system; and,

2. explain the essential elements of the merit system
Partly Merit/ Partly Spoils Career/ Non-career positions Close Career Positions
Quotaism Security of Tenure
MERIT SYSTEM
The merit system transplanted to the Philippine civil service has its origin in the United
States. Its origin in American political history was preceded by the prevalent practice of political
patronage where government jobs were dispensed with as rewards to those who contributed to
the victory of a political party in power. Politicians claimed that the spoils system was necessary
to sustain political party machinery.
Nevertheless, in view of the mounting complaints against the poor quality of most
American public service workers, the growing pressures of those advocating equality of
opportunity to work in government and the increasingly technical and critical character of
government functions, employment based on merit developed, which stimulated professionalism
and competence in the US civil service.
For sometime, however, the tenacity of the spoils system remained, especially in the
American local governments, where there were still supporters of the practice. The partly merit
system and partly spoils system survived for many years until merit prevailed. Eventually,
politicians realized that there were incentives other than government jobs, for political
supporters.
In the local scene, the importance of the merit system has long been recognized. But like
in United States we have our local version of spoils system, as members of Congress resorted to
quotaism, claiming the right to put their protegees in government jobs, and citing the tendency
of executive officials to monopolize appointments in the executive department.
The result was a sort of accommodation of politicians’ recommendees to government

positions.
This political accommodation may now be found in the provisions of the Civil Service
Law and Rules which classified government positions into career service and non-career service.
The career service positions are characterized by (1) entrance based on merit and fitness
to be determined as far as practicable by competitive examination, or based on highly technical
qualification, (2) opportunity for advancement to higher career position; and (3) security of
tenure.
Examples are open career positions requiring qualification in civil service examinations,
closed career positions like scientist, faculty and academic staff of state colleges and universities,
and Career Executive Service positions such as undersecretary, assistant secretary, director and
service chief.
Career Service positions are classified into first, second and third level positions.
The non-career service positions are characterized by (1) entrance on basis other than
those of the usual test of merit and fitness, (2) limited tenure and co-terminus with the appointing
authority or with the project for which employment is made. The first characteristic is apparently
intended to placate politicians.
Examples are elective officials and their confidential staff, cabinet secretaries and their
personal staff, chairmen and members of commissions and boards with fixed terms and their
personal staff, and contractual personnel.

Stahl (1983) defined merits system as “a personnel system in which comparative merit or
achievement governs each individual’s selection and progress in the service, and in which the
conditions and rewards of performance contribute to the competency and continuity of the
service.”
Initially, the use of the merit system was applied to appointment to the service. Now it
is used also in advancement, pay, selection for training and scholarship, and desirable working
conditions. It is founded on open competition with the following elements (Stahl 1983):
1. adequate publicity,
2. opportunity to apply,
3. realistic and impartial standards,
4. absence of discrimination,
5. ranking on the basis of ability; and,
6. knowledge of results.
Read further Sections 7, 8, and 9 of Chapter 2 of the Civil Service Law on career and non-
career positions (Book V of Executive Order No. 292)
READING ASSIGNMENT
E-Journals/E-Books
1. Define merit system and name the elements of open competition under the merit
system.

ACTIVITY NO. 1
Identify if the following positions in the Civil Service are career or non-career:
1. Director : ____________________
2. Confidential Secretary : ____________________
3. Division Chief : ____________________
4. Budget Analyst : ____________________
5. Clerk : ____________________
6. Board Examiner : ____________________
References/Bibliography
Leveriza, Jose P. (1990). 2nd Ed. Public Administration, the Business of Government.
Mandaluyong City: National Book Store.
Martires, Concepcion R. (2004). 2nd Ed. Human Resources Management. Mandaluyong

City: National Book Store.
Milkovich, George T. and Boudreau, John W. (1991). 6 th Ed. Human Resource
Management. Boston USA: ERWIN.
Ordway, Tead (1951). The Art of Administration. New York: McGraw Hill Book
Company, Inc.
Sison, Perfecto S. as revised by Ranulfo P. Payos and Rolando S. Zorilla for PMAP
(2003). Personnel Management in the 21st Century. Manila: Rex Book Store.
Smilansky, Jonathan (1997). The New HR. London: International Thomson Business
Press.
Stahl, Glen (1983). 6th Ed. Public Personnel Administration. New York: Harpe Bros.

MODULE 2
POSITION
CLASSIFICATION AND
SALARY SETTING
LESSON 1
WHAT IS POSITION
CLASSIFICATION?
Learning Objectives
1. define position classification and gain applied knowledge in job analysis;

2. explain the different methods of pricing the job or salary determination;
3. identify some objections to the position classification system; and
4. learn the techniques of proper classification of positions.
Position Classification Concept Class of Positions Occupational

Groups
What is position classification?
Stahl (1983) defined position classification as the analysis and organization of jobs into
categories or classes on the basis of duties and responsibilities, and the knowledge and skills
required to perform them. The application of this concept was one of the most far -reaching
developments in the public personnel field after the merit system became popular in the United
States.
Classification Plan
Position has to be classified before it can be properly identified and used for other
important administrative purposes such as salary setting, payroll, selection, appointment,
placement, promotion, performance evaluation and training. Positions classified on the basis of
duties and responsibilities are assigned to a class which consists of all positions that are
sufficiently alike in duties and responsibilities, and in required qualifications that are given the
same title and salary, and for all administrative and compensation purposes that may be treated
alike.
An example of a class is Clerk I to which all positions having clerical duties are allocated.
All related classes are ranked by difficulty and level in an occupational group. For example, the
Clerical Occupation Group consists of such classes are Clerk I, Clerk II, Senior Clerk and
Supervising Clerk.
The position classification concept adopted in the Philippine Civil Service may have been
inspired by that of the US Civil Service.
However, as the American consultant stated in his report to the Commissioner of Budget
on July 1, 1955, while under contract with the Philippine Government to design a classification
system, “the system has been tailored to work conditions in the Philippine Government. The
classification plan is in effect, a mirror reflecting the current duties, responsibilities and
organizational structure found in the national government. No attempt has been made to install
a classification system borrowed from other jurisdictions” (Louis J. Kroeger and Associates, 1955).
It took sometime before the Philippine Civil Service acquired a comprehensive classification plan.
The first classification act, Act No. 102 was passed by the Philippine Commission on March 28,
1901. The basis of classification then was salary rather than duties and responsibilities. The system
was simple as the government bureaucracy was not as big as it is today. The number of positions
was still manageable.

However, the problem was that no one knew what the employees were doing. For
example, those laborers found to be holding positions were using a wide variety of titles, namely:
musician, sailor, vaccinator and typesetter.
The first formal and systematic plan classified positions on the basis of duties and
responsibilities by virtue of Commonwealth Act No. 402 passed by the first National Assembly
on September 13, 1938. Its principles, bases of classifications, and allocations of positions,
groupings of positions into occupations, professions and services were similar to the US
Classification Act of 1923. The only difference was in the number of salary scales. The Salary Board
of the Bureau of Civil Service which was tasked to implement the classification system, classified
positions in 1940.
After the Second World War, the Salary Board adopted a single salary rate as provided for
under Executive Order No. 94, series of 1947. By that time, the Salary Board had been transferred
to the Budget Commission.
It was not until 1957, when a more comprehensive classification plan was implemented
under Executive Order 277, that paved the way to the Reorganization Plan No. 1-A (otherwise
known the Classification Plan).
Initially, 45,000 positions in various government departments and offices were covered. It
turned out later that there were 25,000 government corporation positions and 90,000 teaching
positions, thus making a total of 115,000 positions. These 115,000 positions were analyzed and
found to fall into 2,268 classes, each representing an exact category of duty and level of
responsibility. They were in turn grouped into 239 general occupational groups.
Before the adoption of the classification plan, there was no detailed information about
government positions whose titles were non-descriptive. Many employees were found doing
work unrelated to the titles of their positions.

American Experience
American industrial and political traditions provided a fertile ground for the development
of the classification concept. Cost consideration and emphasis on productivity helped enshrine
the idea in the United States more than anywhere else. Its flowering in the American soil was
brought about by the following events as enumerated by Stahl (1972):
1. The expansion of the merit system,

2. The popular demand for equal pay for equal work ; and,
3. The demand for efficiency and economy in the government service.
The advantages of the classification concept are:
1. Facilitating pay standardization. Arranging positions into classes with same level of
difficulty and responsibility makes it easy to equate them with common salary grades
or ranges,
2. Facilitating organizational clarity,
3. Facilitating staffing of the organization; and,
4. Facilitating economical operations and improved productivity.
The processes involved in the development and application of the classification system are:
1. Analyzing duties and responsibilities and other distinctive characteristics of positions,
2. Grouping positions into classes based on similarities; and,
3. Writing specifications for each class of positions.
Complaints against the classification system may be summarized, as follows:
1. Length of time it takes to effect a change in classification,

2. Slow and sometimes wrong judgment which results from poorly trained classifiers,
inadequate staff implementing the system and failure to conduct periodic survey to
update the system; and,
3. Infallibility of those administering the system.
READING ASSIGNMENT

E-Journals/E-Books
1. What is position classification?

2. What are the different methods of pricing the job apart from job analysis? What
method has been adopted in the Philippine setting?
3. Cite complaints against our position classification system.
4. If you are employed in the government service, is your position reflective of your
actual work, or assigned duties?

LESSON 2
PAY PLAN
Learning Objectives
1. define pay plan; and

2. explain different methods of job evaluation.
Equal Pay for Equal Work Pay Comparability Pay Plan
Pay Plan
Side by side with the Classification Plan, was the Pay Plan adopted under Executive Order
No. 278, which implemented by Reorganization Plan No. 2-A. Having classified all government
positions, the next step was to find a proper value for each position. This is popularly known as
pricing the job. The adoption of the Pay Plan provided the mechanism for this process. Stahl (1983)
made it clear that a classification plan is not the same thing as a pay plan. It is a vital basis of the
pay system.
The Philippine Pay Plan was predetermined. It consisted of a schedule of 75 salary ranges
of five steps each arranged in descending order. Each grade was 5% above the next preceding
grade. Each step is likewise 5% in between.
The Pay Plan was based on the principle of “equal pay for equal work” which means
employees performing basically the same task of similar level of difficulty and responsibility
receive the same pay; pay comparability which means the prevailing rates of positions in the
government must be comparable to the prevailing rate in the private sector for comparable
positions. The salary schedule was structured in a framework that can be moved upward and
downward as future conditions require.

The estimated cost of the Pay Plan, to place the salaries of employees to the proper grades
and steps in the Pay Plan was P40,000.000, implemented in three tranches, as follows:
30% in 1956;
35% in 1957; and,
35% in 1958.
Both Classification and Pay Plans require constant maintenance, administration and
updating or they will become obsolete. Accordingly, on August 22, 1976, Presidential Decree No.
985 was issued widening the coverage of the Plans by to include government corporations,
financial institutions, state colleges and universities; standardizing, employee benefits; and
reducing salary grades from 75 to 28 with eight steps each grade. The difference between grades
was 10%, while between steps, 5% (Flores, 1978).
In 1989, Republic Act No. 6758 was enacted with the following revisions of the Plans:
1. It integrated allowances and benefits into the basic salary,

2. It increased the salary schedule from 28 to 33 grades,
3. It reduced classes of positions; and
4. It implemented salary increases based on the revised schedule.
Apart from position classification or job analysis as a basis of determining the salary of a
position, there are other methods of job evaluation or pricing the job, or attaching job to its proper
money value.
Methods of Job Evaluation
The different methods of job evaluation are:
1. Ranking method applies to jobs that are ranked from the lowest to the highest. The
method is the simplest, easy to understand and does not require technical knowledge.
It is, however, applicable only to small organizations with a few number of positions.
2. Point system or point rating method is composed of positions such as responsibility,
effort, skills and working conditions are allocated point values with corresponding
weights. Positions or jobs that accumulate similar point totals are given similar pay
grades.
3. Factor comparison method is when organization selects from a cross section of jobs,
key jobs known as benchmarks or standards. Factors like mental and physical
requirements, skills, responsibilities, and working conditions are given weights
similar to the point system. Comparative evaluation of the weights assigned to each
factor is made to determine which job is worth more, and factor values are in turn
converted to money value.
READING ASSIGNMENT
E-Journals/E-Books
ACTVITY NO. 2
Name the method of job evaluation used in the following:
1. The basis is a set of duties and responsibilities. __________

2. Positions are arranged from highest to lowest. __________
3. Key jobs are used as benchmarks. __________
4. Job components are assigned weights. __________
Armstrong, Michael and Baron, Angela (1995) Job Evaluation Handbook, London;
Institute of Personnel Development.
David Keith(1993). 4th Ed. Human Resources and Personnel Management.
Flores, Tomas W. (1978). Compensation and Position Classification in the Philippine

Government. Ministry of the Budget, Malacañang, Manila.

Sison, Perfecto S., as revised by Ranulfo P. Payos and Rolando S. Zorilla for PMAP
(2003). Personnel Management in the 21 st Century. Manila: Rex Book Store.
Report on Wage and Position Classification Survey of the National Government

submitted by Louis Krueger and Associates on July 1, 1955.

MODULE 3
HRM FUNCTIONS
LESSON 1
PERSONNEL
ACQUISITION
Learning Objectives
1. define personnel planning and list down its basic steps;

2. explain the importance of recruitment, selection, and placement; and,
3. know the different considerations for selection.
Personnel Planning Personnel Turnover Open Competition

Square Peg in A Round Hole
Personnel Acquisition
a. Personnel Planning
Not quite popular in the Philippine public service, personnel planning has now gained
serious attention in the private sector, especially among big companies. These companies have
realized the importance of knowing personnel requirements at any given time, and finding
ready replacement in the event somebody leaves or moves out of the organization.

The process involves some forecasting of personnel turnover and knowing where to
look for replacement with the required qualifications and skills.
The organization has to maintain complete profiles of all its employees to determine
how many will retire, how many will resign or better still, how many have indicated the
intention to leave the organization for better opportunities.
Unlike in private companies which cannot afford to have gaps or vacuums in the
organization which may affect the productivity or profitability of business, in government
service it is not much of a concern because of added cost, and public service may only be
interrupted temporarily.
But going deeper into the concern for public service, public interest should not be
sacrificed.
At any rate, planning in the government service is usually more of a pro forma, mostly
made for compliance of requirements or instructions and not for honest-to-goodness
purposes.
It is usual in government service to hear employees telling those transacting business

with their offices to come back because the one in charge is absent or has just resigned or
retired, and nobody has replaced him yet. This shows lack of planning and coordination to
provide an understudy who can take over anytime when somebody is absent or no longer
around.
The basic steps in human resource planning are:
1. Determining the objectives of the organization which reflect its workload.

Knowing the workload would indicate needed labor force,
2. Knowing existing positions in the organization and their qualifications
requirement,
3. Forecasting human resource needs at any given time and in the future,

4. Knowing the total workforce and the number of positions in each department or
unit,
5. Improving the capabilities of current personnel through training and other
personnel development interventions,
6. Determining overstaffing and understaffing levels; and,
7. Knowing probable sources of applicants.
b. Recruitment
Knowing personnel needs and the capacity of the future to fill in these needs, public
organizations must identify specific source of qualified candidates outside and inside the
service. Recruitment that leads to final selection of qualified candidates is a critical personnel
activity. A successful and correct recruitment helps preempt employees with negative
behaviors, frequent turnover, and incompetency in the organization. Problem employees in
the organization usually result from defective recruitment.
In a progressive economy, there are limitations in attracting the best in the government
service. These are the prevailing attitudes toward public employment because of its negative
image and the low salaries in government compared with those in the private sector.
There is a law which requires publication of vacancies to attract many applicants with
the required qualifications. In actuality, however, this requirement is more of a pro-forma,
just to comply with the law, but the real purpose is defeated.
The elements of open competition in pursuance of the merit system are not strictly
followed, like adequate publicity of vacancies, opportunity to apply, realistic standards,
absence of discrimination, ranking based on ability, and knowledge of results.
c. Selection
Selection means choosing the best qualified among applicants. The assumption is
always that there is a relatively large number of applicants. This is not a problem in our

jurisdiction since there are many looking for jobs year after year. At least, there are four to five
applicants from whom one may be selected.
Selection in the public organization, whether for original appointment or promotion

is done by a selection committee which every government office has in place. The basis is a
comparative assessment of candidates on the basis of civil service examination, eligibility,
performance rating, educational qualifications, training and experience, physical
characteristics and potential.
The common assumption in the selection process is always that the candidate with
the superior qualifications should be selected.
Unfortunately, through court intervention, selection based on merit has suffered a

setback. The Supreme Court has ruled that appointing authority should have wider latitude
of discretion in selecting a candidate, as long as he meets the minimum qualifications of the
position to be filled. This means he can appoint anyone, not necessarily the one most
qualified.
Sison (2003) cited reasons for proper selection of employees:
1. Public service is better served by employees who have been properly selected,
2. An incompetent worker is a liability to the organization,
3. Personnel requirements vary from job to job,
4. People have varying degrees of intelligence, aptitudes, abilities, interests and
aspirations,
5. Laws and due process protect employees making it difficult to dismiss problem
and incompetent employees; and,
6. Careless hiring is costly to the organization.
Examination is a tool for selection which the selection board sometimes applies
whenever it encounters difficulty in making the final selection. But an examination has to
be valid, that is, it must measure the ability of the candidate to perform the job for which

he is being selected. It must also be reliable which means consistent and dependable as a
measuring tool.
However, the examination is only one tool in selection and it cannot replace the
other selection processes. In-depth interview can help clench a decision to select. The
objectives of interview are (1) to find out how well-qualified the applicant is; and, (2) to
give the applicant the chance to give serious thoughts to the position being offered, and
create goodwill for the organization.
d. Placement
To avoid placing a square peg in a round hole, the organization should carefully decide
where to assign the chosen candidate. Correct qualifications, aptitudes and temperament may
not fully serve the purpose of placement. There may be other considerations.
One consideration, of course, is the specification of a need of the requisitioning office

or the unit where the vacancy exists.
Placement is the determination of the specific unit where the selected candidate is to
be assigned.
Read further Section 21 of Chapter 5 of the CS Law on Recruitment and Selection and
Rule II of its Amended Omnibus Rules.
READING ASSIGNMENT
E-Journals/E-Books

1. What is personnel planning?
2. What are the different steps in personnel planning?
3. Explain briefly why recruitment, selection, and placement are crucial to the
organization.
4. What are the factors to be considered in the selection of applicants?
5. What practices defeat the real essence of publication of vacancies as required by law
in the civil service? Discuss at least two of these practices you may have observed or
come to know.
ACTIVITY No. 3
Describe the organization where you are currently employed, or any organization you
know, in terms of total workload; actual number of employees as against total number of
positions; method of hiring, selection and placement. Then discuss briefly if there is a need
for additional work force and if the manners of hiring, selection and placement are correctly done
in the said organization.
Davis, Keith (1993). 4th Ed. HumanResources and Personnel Management.
Martires, Concepcion R. (2004). 3rd Ed. Human Resources Management. Mandaluyong

Sison, Perfecto S. as revised by Payos and Zorilla for PMAP (2003). Personnel Management
in the 21st Century. Manila: Rex Book Store.

LESSON 2
PERSONNEL
MAINTENANCE
Learning Objectives
1. define induction, motivation, performance evaluation and discipline;

2. enumerate the different strategies in motivation;
3. explain the uses of performance evaluation;
4. acquire knowledge in categorizing benefits into performance, motivations and
paternalism;
5. differentiate complaints from grievances; and
6. know why personnel records are considered very sensitive.
Job Induction Job Enrichment Job Enlargement

Leave Monetization
PERSONNEL MAINTENANCE
a. Induction and Orientation
Induction is an informal way of assisting a newly hired employee familiarizes himself

with the organization he is assigned to work. The human resource department usually
handles this activity. It gives the new employee a guided tour of the work setting and
introduces him to key officials of the departments he will be reporting regularly. Called
familiarization or coaching, the induction process includes:
1. Tour of offices,
2. Lectures or sometimes film showing of the history, mandates and structure of the
organization; discussing the visions, missions and objectives of the organization, and
explaining the privileges, benefits and obligations of employees; and,

3. A review of the job description of the newly hired.
A formal way of introducing new employees into an organization is known as

orientation, where all newly appointed employees assembled for a day of long briefing.
This is usually done by schedules in a large organization.
Orientation shows the concern of the organization to welcome and make the new
worker feel the belongingness in a new world to gain more self-confidence. The process
is considered useful and significant because it helps in the retention and motivation of the
employees.
b. Motivation
A highly motivated employee tends to be more satisfied. A highly satisfied

employee tends to be productive and stays longer in the organization. This is one of the
findings in a local study conducted on motivation.
A simple definition of motivation is making people behave in a manner one wants

them to behave.
Technically, motivation can be defined as the intrinsic inducement that propels an

individual to think, feel, and perform in certain ways. (Martires, 1999).
Stahl (1983) said motivation varies with environment and condition of life. When
the most basic human physical needs, like food and water are not being met these become
the most important considerations for incentives. He cited an example of a man dying of
thirst in a desert who will do anything within his power to get a drink. But if water is
within his reach, his need for water fades.
This is very relevant to a poor society like the Philippines where the economy has
yet to reach a desirable and comfortable level, and where satisfaction of physical wants is
deficient. Here, increase in pay becomes paramount.

On the other hand, in affluent society, pay is not the number one motivator.
Martires (1999) shows how motivation is influenced by needs and values. Needs
are basic to man, something he cannot do away with and can be prioritized according to
one’s status.
Values are something given a high prize and cherished the most. Like needs, values
can likewise be prioritized. A need could also be a value and vice-versa. A person needs
recognition and values at the same time. But not all needs are values and not all values are
needs. For example, a worker needs a salary increase but he values a challenging work
more. Another may value good assignment, but he needs financial incentives more.
To effectively use motivation in management, managers should know a person’s

underlying need and value system.
Study of motivation tends to be difficult because motivation can only be observed

in the behavior of a person. The inner self of a person may account for his behavior. But it
cannot be precisely determined whether the observable reaction of a person is really
caused by motivation.
There are different theories which explain motivation. Knowing these various
theories enables the management to determine which among them will apply in the work
setting under prevailing conditions. Among these theories are the economic man theory
which was popular during the time of Frederick Taylor, the theory of the social man by
Rothlisberger and Mayo, the hierarchy of needs by Abraham Maslow, the need to achieve
theory by McClelland, expectancy theory by Vroom, the hygiene theory of Frederick
Herzberg, Theory X and Y by Douglas McGregor, Theory Z by Ouchi, and reinforcement
theory by Skinner (Stahl, 1983)

The foregoing theories are of foreign origin which casts doubts on their
applicability to Philippine situation. Given the Filipino culture, there is a need to evolve
a Filipino theory of motivation.
Even in our local situation the following strategies may prove effective in
motivating Filipino workers:
1. Job Enrichment or Enlargement - Frederick Taylor’s mechanical job process,

while it contributed to mass production at the assembly line reduces works to
automaton. Job broad, varied and challenging to a worker’s capacity has proved
effective in bringing superior results.
2. Participative Management - Getting workers’ cooperation and participation in

decision-making processes in an organization easily pays off. Acceptance of a
decision or policy becomes easier if those affected by such decision are given the
privilege to participate in making such decisions.
3. Keeping communications fluid - Getting information through formal channels

rather than through the “grapevine” gives the impression that employees are in the
confidence of the management. Show of trust by the management inspires and
motivates employees.
4. Encouraging suggestions offers another participative environment. If fully

endorsed by the employer, this practice enthuses workers to suggest
improvements in the organization and cooperate willingly in all the activities of
the organization.
5. Showing concern for employees’ personal problem is another strategy to

motivate them to produce more or perform better.

6. Addressing grievances is one formal channel most employees seek, to prevent
conflict and demoralization in the organization.
c. Performance Evaluation
Performance evaluation is a measurement of the extent an employee meets the

expectation of management. It deals with his contribution in an organization within a given
period. It is not a mere appraisal of the employee’s performance which tends to be subjective,
but it is more of an assessment of the degree of his contribution to the realization of
organization’s goal. To compare two individuals in their competitive performance may lead
to making judgments about individuals which may harm them. Hence, instead of using the
method to maintain and improve performance, it retards the competition.
To be unquestionably objective is so elusive as it is a frustrating aspect of performance

evaluation. Supervisor-rater finds it hard to make a distinction between two subordinates in
their work.
But instead of inhibiting, he must face the challenge to find ways to reconcile the need
to evaluate and the desire to be fair and protective of people in the organization.
Uses of Appraisal
Organization, no matter how small, finds necessity to evaluate people. The process is an
important basis in making assignment, training, salary increase, promotion, rewarding, transfer
and staff-reduction.
What to Evaluate
It is the employee’s accomplishment share of the overall goal of the organization, and not
his personality traits and characteristics that should be the subject of evaluation. Supervisor-
raters in the old traditional method of rating tend to focus on such personal traits as tact,
initiative, integrity, ingenuity and dependability. This according to Stahl (1983) is just looking at
one aspect of the employee’s life or behavior. What they have to measure is what comes out of the

employee’s mind or hand on a work product, not what appears in his physical appearance and
behavior.
Methods of Evaluation
Some of the most popular methods of evaluations are:
1. Trait Rating or Graphic Scale Rating - This method uses a list of traits in rating and
each trait is measured in degrees. The traits are classified by Sison (as revised in 2003)
under major categories, namely: personal, actual work performance and personal
relations. Listed under personal category are initiative, ability to learn, industry, drive
and dependability. Under work performance are customer service, knowledge of job,
quantity of work done, quality of work done, judgment, accuracy and cooperation and
actual work achieved.
Under personal relations category are cooperation, adaptability, dependability,

attitude towards others, and teamwork.
2. Behaviorally Anchored Rating Scale (BARS) lists down for evaluation important
dimensions of a job, and for such dimension a series of progressive behaviors or sample
actions or critical incidents are created across a continuum representing effective,
average and ineffective performance levels.
Examples of BARS dimensions designed for hotel managers are communication skills,
handling guest complaints, and promoting guest relations.
MBO
Performance evaluation using Management by Objectives is the NPAs previously used by

the Civil Service Commission for government employees.
It is a process whereby the superior and subordinate sit down together to define the key
result areas and performance targets of the subordinate within the period of assessment. What
they will agree upon will be used to rate the performance of the subordinate.

d. Discipline
A disciplinary action is the imposition of penalties for non-performance,

misperformance and violation of rules (Stahl, 1983). In the Philippine setting, disciplinary
measures are applied to violators of civil service laws and rules. The most common forms of
disciplinary action are warning or reprimanding, reassignment, suspension without pay,
demotion and dismissal.
Some forms of discipline or punishment are no longer common. Examples are placing
demerits against an employee’s records and fines in the form of deduction from salary. The
first retards an employee’s chances for promotion, and the second injures the employee and
his family financially.
Even the best of organization is not without misbehaving employees. Intolerable

misconduct among employees is bound to happen. If remedial measures are not practicable,
some kind of punishments has to be meted out to those committing offenses.
Just like in the United States, the Philippines has many experiences in dealing with
disciplinary problems ranging from the deep involvement of the central personnel agency –
the Civil Service Commission, to reliance upon the authority of individual agencies of the
government. This is because managerial responsibility without reasonable authority to ensure
discipline is an outright contradiction in terms.
The interest of the service is always being cited in taking disciplinary action against
an erring employee. But if such action is reasonable and fair, it must also consider the right of
the employee to a fair hearing and investigation where he is given the opportunity to explain
his side. If an employee feels being treated unjustly, he can resort to appeal.
e. Rewards, Benefits and other Incentives
One area of human resource management which generates greater misunderstanding

and conflict is the development of a compensation package which includes not only salary,

but also other monetary benefits and incentives. This is especially true in the government
service where the citizens are the employers who as taxpayers tend to claim on economy.
On the other side of the fence are the public servants who are for liberal wage policy.
The problem is while taxpayers want economy, reduced government activities, they also want
effective public service. Of course, government administrators would want a pay level and
policy that can retain able public employees who can also render effective public service.
Efficient and effective public service is what the transacting public wants, too.
In our local setting, as it is in the United States, payment for personal services
constitutes one of the biggest single item in the budget; hence, the concern and interest of
taxpayers is direct and understandable. At the same time, the concern for realistic and fair
compensation by the civil servants is likewise real and equally understandable.
How to reconcile the two conflicting interests is a challenge to our legislators and
government administrators.
As shown in Lesson 1 of this module, government salaries in the Philippine setting has
been based on pre-determined classification plan based on the principles of equal pay for equal
work and pay comparability.
The classification plan has provided an objective foundation of the pay plan. It has
instituted order in salary setting in the public service.
However, position classification is a complicated process that only a well- trained job
analyst can competently accomplish.
The principle of pay comparability whereby the prevailing salary levels in the
government are made comparable to the prevailing rates in the private sector for comparable
positions is being blamed for an obvious problem in salary upgrading. The reason is that there
are positions in the government service which are not found in the private enterprise. Besides,

the term “prevailing” is an abstraction. There is no single prevailing rate for identical jobs
which tend to vary from one locality to another, known as geographic variations.
The problem with the national pay plan is that it has not been revised recently. The
last upgrading was way back in the 1990’s. For many years salary level in the government
service has been low compared with salaries in the private sector, especially at the senior level
positions.
In the last survey of private sector salary rates, it was found out that the salaries of
senior level positions in the private enterprise were three times higher than the salaries of the
government executives. But both congress and government administrators favored more the
low salaried employees in the last reported upgrading of the national pay plan. The irony is
that in the same salary survey, low ranking employees in the private sector were found
receiving salaries generally lower than those in the government service.
To augment government workers’ income, the government has granted cost of living
allowances. The total allowances so far given, the latest was P1,000 a month, were still not
enough to enable government workers to catch up with the spiraling cost of living.
Government workers are also entitled to year-end bonus and cash gift.
There are also cash and non-cash benefits, or income extenders. Most of these benefits
are incorporated in the Civil Service Commission’s inspired Program on Awards and
Incentives for Service Excellence (PRAISE), formerly the Employees Suggestions, and
Incentives Awards System (ESIAS), designed to encourage and reward employees’ creativity,
innovativeness, efficiency, integrity and productivity.
The benefits are mostly performance-based, motivational and paternalistic.
Types of Incentives
Loyalty Incentive - granted to employee who has served the agency continuously and
satisfactorily for at least ten (10) years. The grant is in cash of not less than P500 but not

more than P1000 per year. Succeeding awards are given every five (5) years. Apart from
cash award, lapel emblem or loyalty pin is given, as follows:
10-15 years – Bronze

20-25 years – Silver
30, 35 and 40 years – Gold
Length of Service Incentive – given to an employee who has served at least three (3) years
of continuous satisfactory service in the same position.
Productivity Incentive – given to those who have been rated at least satisfactorily in the
last rating period.
Career and Self-Development Incentive-granted in recognition of a satisfactory

completion of a course within or outside the country, without government expense
involved.
Other incentives may be given upon recommendation of the agency PRAISE

committee.
Agency Awards
Best Employee Award – given to an employee who has excelled among other peers in a
functional group, position or profession.
Gantimpala Gawad Award – given outright to an employee commended by clients for

courtesy, promptness, efficiency and dedication to duty.
Exemplary Behaviour Award – an award based on the eight (8) norms of conduct under
the Code of Conduct and Ethical Standards for Public Officers and Employees (RA 6713)
Best Organizational Unit Award – given to a unit which is top in meeting performance
target.
Cost Economy Measure Award – given to an employee whose idea, suggestion,

invention, discovery and performance results in saving for his agency or otherwise benefits
the government as a whole.

Service Awards – conferred on retirees.
Such other awards the agency may decide to give, include the National Awards such
as the Lingkod Bayan Award, Dangal ng Bayan Award and Pag-asa Award.
Health Benefits
Hospitalization benefits under the PHILHEALTH for government employee members.

Workmen Compensation Benefits for government workers who meet an accident in line of
duty or incur work-related sickness. The Government Service Insurance System (GSIS)
administers the fund.
Leave Benefits
It is here where the government, as employer, appears to be more liberal than the
private employer by giving a full pay.
The leave concept is predicated on the idea that after many hours of work an employee
deserves rest. The purposes of vacation leave are; (1) for rejuvenation; and, (2) for maintaining
good health.
Sick Leave is essential to intelligent employment management according to Stahl

(1983). Failure to provide for a sick leave with pay would compel ailing employees to report
for work, thus endangering not only their personal health but also those of co-workers.
Entitlement to Leave
All appointive officials and employees of the government, except those covered by
special laws, whether permanent, temporary or casual are entitled to 15 days vacation leave
and 15 days sick leave annually with full pay, exclusive of Saturday, Sunday, and Public
Holidays, without limitations as to the number of days of vacation and sick leave credits that
they can accumulate.

The last portion of the paragraph means whatever total leave credits can be
accumulated in a given year, may be carried over to the following year, and so on until the
employee gets out of the service.
Table of Leave Credits Earned On Monthly Basis
No. of Months Vacation Leave Sick Leave

1 1.25 1.25
2 2.50 2.50
3 3.75 3.75
4 5.00 5.00
5 6.25 6.25
6 7.50 7.50
7 8.75 8.75
8 10.00 10.00
9 11.25 11.25
10 12.50 12.50
11 13.75 13.75
12 15.00 15.00 = 30.00
However, an employee with 10 days or more leave credits shall be required to go on

forced/mandatory leave for five days whether continuous or intermittent, annually. This
will be deductible from leave credits. If cancelled by the authority in the exigency of the
service, and the employee reports back for work, the leave credits taken shall be restored
to his credit.
Apart from the authorized vacation and sick leave, an employee may be entitled to
one year leave without pay provided all his available leave credits have been consumed.
Monetization of Leave
An employee who has accumulated 15 days or more leave credits shall be allowed
to monetize a minimum of ten (10) days. An employee is required to retain at least five (5)
days. In a given year, monetization can only reach a maximum of thirty (30) days. An
employee may also be allowed to monetize 50% or more of the accumulated vacation leave
credits for justifiable reasons, as follows:
Health, medical, and hospital needs of the employee and immediate members of the family;
 Financial assistance during calamities;
 Educational needs; and,
 Payment for mortgages and loans.
Special Leave Privileges
An employee except teachers and those covered by special laws, is allowed to go

on leave for a maximum of three (3) days on the following occasions:
Birthday, wedding or wedding anniversary and other similar milestones like death
anniversary;
Parental obligations like attending school meeting, programs, graduation, first
communion and medical needs of children;
Filial obligations;
Domestic emergencies;
Personal transactions; and,
Calamity, accident and hospitalization
Special leaves are in addition to vacation and sick leave
Maternity Leave
Pregnant woman whether married or unmarried is entitled to maternity leave of

sixty (60) days with full pay on the condition that she has rendered two (2) years of
service.
Those who have rendered service for one (1) year or more but less than two (2)
years, are entitled to pay proportional to their length of service.
Those who have rendered service for less than two (2) years can only claim half
pay.
Paternity Leave

A married man in the government service is entitled to paternity leave of seven (7)
days immediately before, during and after the childbirth or miscarriage of his legitimate
spouse. Paternity leave is non-cumulative and strictly non convertible into money value.
Other Benefits under the GSIS Act of 1997 (RA 8291)
Separation Benefit – This is paid to a member who has rendered at least three (3)
years but less than fifteen (15) years of service. He is entitled to a cash payment
equivalent to 100% of the Average Monthly Compensation for every year of service
payable upon reaching the age of 60 or upon separation whichever comes later; or
a member who has rendered at least fifteen (15) years of service and who is below
60 years of age at the time of separation. He is entitled to a cash payment
equivalent to 18 times the BMP payable at the time of separation, plus Basic
Monthly Pay for life starting at age 60.
Unemployment Benefit – This is paid to a permanent employee who is

involuntarily separated from the service and has paid twelve (12) months
contributions.
Disability: Permanent Total, Permanent Partial and Temporary Total
The following disabilities are considered permanent total:

 Complete loss of sight in both eyes;
 Loss of two (2) limbs at or above the ankle or wrist;
 Complete paralysis of two (2) limbs;
 Brain injury resulting into imbecility or insanity; or
 Other cases as may be determined by GSIS.
The following are permanent partial disabilities:

Complete and permanent loss of any fingers, any toe, one arm, one hand, one foot,
one leg, one or both ears, hearing of one or both ears, sights of one eye. Other cases
as may be determined by GSIS
 Survivorship
 Funeral
The following are eligible to receive funeral benefit from the GSIS:
 An active member,
 A member who has been separated from the service, but entitled to future
separation or retirement benefit,
 A pensioner,
 A retiree at 60 years of age but opted to retire under RA 1616; and,
 A retiree under RA 1616 prior to RA 8291 with 20 years service
f. Personnel Relations
Employees Organizations
The Philippine Constitution has guaranteed the right of employees in both public
and private organizations to self-organization.
However, it seems that no law or jurisprudence has mentioned the right of workers
not to join unions or organizations. But the current trends in the labor front and the public
service are the increasing number of workers who are not members of organizations and
unions.
The reason for this in the public sector is the weak position of workers to make
demands and negotiate collectively because most of the terms and conditions of public
service employment, especially those subjects of bargaining in the private sector, are either
covered by law or management prerogatives. Examples are salary, allowances, working
hours, leave privileges, promotions, transfer, assignment, manpower reductions, and
demotion. Practically nothing is left for negotiation that may be considered meaningful
and substantial.
In the private sector, the reasons for the increasing number of unorganized workers
as cited by Payo, are: (1) Decline of manufacturing (where there is a bulk of union
membership), and (2) the movement of workers to service sector. The remaining big
manufacturing companies, mostly multinationals or foreign-owned have the tendency to
be proactive in granting what unions can demand. The service sector has smaller working
units and has more female and part-time workers.
In the face of global economy, most companies are confronted with stiffer
competition; are apprehensive of pressures for higher wages and adversarial relationship
that constraints management decision-making, and flexibility and prerogatives. Most
companies are cost and quality conscious because of competition in the international
market. In general, employers are in general afraid of militancy and activism of some
unions.
More of private sector unionism will be discussed in Module IV.
In the public sector the employees belonging to professional and technical

organizations are not being accredited by the Civil Service Commission which has shown
bias to unionized rank and file employees. Since the Constitutional guarantee for self-
organization is intended for all government workers, regardless of whether or not they
belong to the rank-and-file, government employee organizations are now vying for CSC
accreditation under the leadership of the Confederation of Government Employee
Organizations (COGEO).
COGEO which is not for confrontational or adversarial relationship with

management or government administration, has launched a campaign for government-
employees partnership for better and effective governance. In the year 2000, the Office of
the President authorized the campaign of the COGEO for government-employee
partnership for effective governance.
g. Complaints and Grievances

In any organization, public or private, complaints and grievances may exist between
and among individual employees and supervisors on matters affecting dissatisfaction with
working conditions.
The Civil Service Laws and Rules define a complaint as an employee’s expressed feeling
of dissatisfaction with some aspects of working conditions, relationship or status outside his
control.
A grievance is a complaint in writing which has in the first instance, been ignored,
overridden, or dropped without due consideration.
Every government agency has been enjoined by law to establish a Grievance Procedure
which is a method of determining and finding the best way to resolve the cases of complaint
or grievance.
The grievance procedures as required under the Civil Service Law shall include:
1) Oral discussion – a complaint is presented orally by the employee to his immediate

supervisor who shall resolve it within three (3) days;
2) Grievance in writing – if the employee is not satisfied with the supervisor
decisions, he may submit his grievance in writing to the next higher supervisor
who shall decide it within five (5) days.
3) Appeal to the agency head – if still not satisfied with the decision of the next
higher supervisor, he may submit his grievance in writing to the agency head.
4) Appeal to the CSC – if still not satisfied he may finally appeal it to the Civil Service
Commission.
h. Records Keeping
Personnel records have to be well-maintained because of their importance. Examples

of the documents are appointments; service contracts; service records; personal data records;
rewards and commendations records, if any; records of infractions; records of position and
salary changes and payments; and, accumulated leave credits records.

Personnel records, especially employees 201 files cannot be shown or given to anyone
except to the employee himself or any authorized person.
The leave index which has money value must not be entrusted to anyone except to an
accountable employee who will keep the leave records safely and properly that they cannot be
tampered with.
Personnel records are needed for basic transactions like issuance of certifications of
the history of an employee’s employment, salary and its adjustments, performance records,
time and attendance records, position occupied past and present, medical history and status.
Read further Section 33 of Chapter 5 on Performance Evaluation System. Chapter 6

on Right to Self Organization. Chapter 7 on Discipline of the CS Law. Also read Rule IX, Rule
XIII, and Rule XIV on Performance Evaluation, Right to Self-Organization and Discipline,
respectively. Likewise, read Rule XVI on Leave of Absence of the Amended Omnibus Rules.
READING ASSIGNMENT
E-Journals/E-Books
1. Define induction, motivation, performance evaluation and discipline.

2. What are the different strategies in motivation?
3. What are the uses of performance evaluation? Name its different methods.
4. Identify whether the following benefits are performance-based, motivational or
paternalistic:
 Productivity bonus
 Year-end benefit

 Leave
 Retirement benefits
 Merit increase
 Longevity increase
 Maternity and paternity leaves
5. Differentiate complaints from grievances.

6. What is a 201 file?
Activity No. 4
If an employee earns 1.25 vacation and 1.25 sick leave credits a month, how much total
vacation leave credit, could he earn in one-and-a-half (1 ½) years? How much sick leave credits
could he earn in one (1) year?
Civil Services Law and its Revised Omnibus Rules Civil Service Commission Program on
Awards and Incentives for Service Excellence (PRAISE).
Davis, Keith (1993). 4th Ed. Human Resources Management. Mandaluyong City:
National Book Store.
Martires, Concepcion R. (2004) 3rd Ed. Human Resources Management. Mandaluyong

Nigro, Felix A. (1959) Public Personnel Administration. New York. Henry and
Company.
Pigors, Parels and Myers, Charles (1973) Personnel Administration: A Point of View
and Method New York: McGraw Hill Book Co.
Powell, Norman J. (1956) Personnel Administration in Government Cliff, M.J.

Prentice Hall Inc.
Sison, Perfecto S. as revised by Payos and Zorilla for PMAP (2003). Personnel
Administration in the 21 st Century: Manila: Rex Book Store.

Stahl, Glen (1983) 6th Ed. Public Personnel Administration. New York: Harper Bros.

LESSON 3
PERSONNEL DEVELOPMENT
AND TRAINING
Learning Objectives
1. explain the importance of training; and,

2. define career planning and counseling.
Understudy Job Rotation Career Pathing
Personnel Development and Training
As a necessary function of management, training has gone a long way. There was initial
resistance to investment in training in the public service, especially from among politicians and
administrators in the late 1930s and 1940s. These people claimed that employees were hired on
the basis that they were qualified, that they were already trained for their jobs, and if they turned
out not prepared for their jobs, their selection was at fault.
As a new phenomenon, training still requires continuing vindication. In the Philippine

setting, budgetary allocations for training were among the first budget items to be cut or sacrificed
whenever the government is on retrenchment.
Now it cannot be denied that training is a function of quality and effective service. With
globalization, continuing advancement in technology, and the inevitability of change, all combine
to make the adaptability and continuing preparation of the work force as important as its initial
acquisition and motivation.

Sison (2003) defined training as a carefully planned and handled effort of management
through competent instructors, to impart “know-how” and to develop or improve certain phases
of individual’s skills, attitudes, discipline, behavior or knowledge, to make him either more
effective on the present job or better qualified for another job.
Martires (1999) said it is not enough that whatever knowledge and skills they bring in are
fully utilized, they should acquire additional capabilities for more responsibilities in their current
and future positions.
The obvious needs for training are clearly defined by Stahl (1983), as follows:
1. People are recruited not for a specific job alone, but for broad categories of jobs;
2. Public programs rarely remain static and the quickest way to adjust to changes is
through training of employees;
3. Many occupations are entirely limited or peculiar to public service such as police,
firefighters, tax assessors, mail carriers, sanitary engineers and social workers, the
specific skills of which are not acquired in general education;
4. Occupations like medicine, engineering, accounting and even stenography, do not
remain the same. Training can help professionals keep themselves abreast of
development in these fields.
The various types of training programs included in the comprehensive annual training and
development plan of the Philippine Civil Service are:
 Induction Program;
 Orientation Program;
 Reorientation Program;
 Professional/Technical/Scientific Program;
 Employee Development Program;
 Middle Management Development Program;
 Value Development Program;
 Pre-retirement Program; and,
 Executive Development Program.
Other types of training are on-the-job training, job rotation, understudy, lectures, special
seminars and workshops, study grants, and conferences.
Determining Training Needs
Sison as revised by Payos and Zorilla (2003) cited the following indicators of training
needs:
1. When a required skill is not available among those in the work force;
2. When employees’ performance is below standards;
3. When morale and production are low;
4. When there is a fast turnover of personnel;
5. When the rate of absenteeism is high; and,
6. When new technology is introduced.
The conduct of survey of training needs may also indicate the training needed.
Evaluation of Training
There are four (4) evaluation designs, that can evaluate training program according to
Payos. These are case study, pre-test/post-test comparisons, pre-test/post-test central group
design, and Solomon four-group design.
Career Planning
This is a joint effort of an individual worker and his organization to harmonize their
respective expectations. On the part of the worker, it is a process by which work activities can
be carried on and manage in organization for greater job and responsibility in the future.
For the organization, career planning is the phase of human resource management that
sets up paths along which the individual worker advances and progresses over the employable
years. It is also defined as the worker’s efforts to prepare oneself for greater job and personal
responsibility.

Career planning is yet to gain acceptance in government human resource management.
Not many government offices have established and implemented career planning.
Counseling
This is a one-on-one, face-to-face relationship, between a professional guide and a client

in which the former helps the latter solve a problem.
The problem may be personal or job-related like habitual tardiness and absenteeism, sub-
standard productivity or service, material wastage and poor superior-subordinate relationship.
Counseling is also a process of discussions of a problem with an employee, with the

objective of which is to help resolve and cope with the problem.
Martires (1999) has categorized counseling according to the depth and extent of problems,
as follows:
1. Normal cases are problems which crop up in daily life activities. These cases do not
need professional counseling for they can take care of themselves.
2. Slightly abnormal personalities whose problems are due to recent incidents or
occurrences. Counseling here is a must for which the services of counselors or
psychologists are needed.
3. Neurotic and psychotic cases whose problems are deeply embedded, need the services
of clinical psychologist or psychiatrist.
Physical and Cultural Development
Under Rule XI of the Civil Service Rules each head of government department or agency
shall encourage voluntary of employee activities, such as athletics, and such others as may fall into
social, recreational, financial, and food production and livelihood categories conducive to
employee well-being and consistent with the interest of public service.

Read further Section 30 of Chapter 5 of the CS Law on Career and Personnel Development
and Rule VIII of the Omnibus Rules.
READING ASSIGNMENT
E-Journals/E-Books
1. Define training, and briefly state the reasons for the initial resistance to investment in
training.
2. Enumerate the different types of counseling.
3. Explain career planning.
Activity No. 5
What type/types of training does your agency conduct? Describe it/them fully. How does
your agency evaluate the results of training?
Civil Service Law and its Revised Omnibus Rules.
Martires, Concepcion R. (2004). 3rd Ed. Human Resources Management.

Mandaluyong Ctiy: National Book Store.
Sison, Perfecto S. as revised by Payos and Zorilla for PMAP (2003). Personnel
Management in the 21 st Century. Manila: Rex Book Store.

MODULE 4
PUBLIC SECTOR
UNIONISM
LESSON 1
PUBLIC SERVICE
UNION
Learning Objectives
1. state clearly the importance of collective organization in the public service and know
the difference of public sector union from the regular employee organizations;
2. differentiate public sector unionism from unionism in private enterprise; and,
3. explain the limitations of collective negotiation in public service as distinguished from
bargaining of private business.
Public Service Unions
Even before the people’s right to self-organization was guaranteed by the Philippine
Constitution, employee organizations had already gained impetus. But these were just benevolent
organizations which existed to protect their interest and welfare, and not to bargain for socio-
economic advantage just like those which have existed in private enterprise.
Public service union is a relatively new phenomenon in regular government departments

and agencies, though workers’ unions already existed before in government corporations
performing proprietary, not inherently governmental functions.

In the United States, public sector unionism has developed in similar manner. Before 1889,
government employee organizations were almost all benign societies, established for welfare and
protective purposes except for the National Teachers Association which was organized in 1857.
It was in the late nineteenth century that numerous organizations of union type were
established. Organizations along private sector union line first appeared among skilled and semi-
skilled workers in various government industries. The first strictly public service unions emerged
in the postal service of the United States, primarily, according to Stahl (1983), as a protest against
poor working conditions at the time, its big size and far-flung staff, and industrial character as
compared with other government services. The 1880s and 1890s witnessed the rapid formation of
unions for letter carriers, postal clerks, rural carriers, and railway mail clerks. They started
formation independent of each other, then they merged. Now the dominant unions are American
Postal Workers Union, the National Association of Letter Carriers and the National Federation
of Rural Letter Carriers.
In the 1890s, organizations appeared representing postal supervisors and postmasters, but
since they belonged to management, their organizations could not be considered true unions.
Outside postal service, the federal employees’ organizations of general coverage are the
American Federation of Government Employees, the National Federation of Federal Employees
and the National Association of Government Employees.
The first American public sector union to adopt an enlightened and sophisticated
approach to public service labor relations was the Tennessee Valley Authority. TVA was the first
government agency in the US to have entered into full joint exploration and discussion of issues
on salary and working conditions with the union. What helped TVA in this open policy with the
union were: (1) its workforce was mostly made up of blue-collar workers who were accustomed
to unionism, and, (2) it had wider statutory latitude in matters of pay and working conditions
than other government services.
Current Policy

The present policy now governing public sector unionism in the United States has the
following major elements:
1. Employee participation in personnel policy development,

2. Affirmation of the employees rights to join or not to join labor organizations,
3. Administration of labor relations by a Federal Labor Relations Authority,
4. Resolution of impasses in negotiation by a Federal Service Impasses Panel,
5. Applicability of consultative arrangement only to unions which represent majority of
employees in a given unit,
6. Provision for written agreements,
7. Elimination of agency mission, budget, organization, number of employees and internal
security from negotiability,
8. Prohibition of strikes, work stoppages, slowdowns, or picketing; and,
9. Prescription of standards of conduct for labor organizations and fair labor practices for
agencies.
Difference of Government From Private Business
A closer analysis will reveal differences between the government and the private business
as employers. Government is not just slightly different from the private enterprise but it is indeed
very different.
In the private sector, the owner and the management of the company and its employees’
union are essentially equal in power before the law. They rival each other for advantage in a free
contest inhibited only by laws and rules from the government and the pressures of economic
competition. Whatever agreement they may arrive at, they are free to pursue.
A government is not just a party of relationship. It is an instrument of democracy, a

mechanism of control by the people. The people’s regulatory power over government finances is
being carried on by the legislature which authorizes the government budget for personal services
which is eating up a sizable portion of the budget. For this reason, the greater majority of the
public is just right to be concerned about unions, or the minority’s, demand for increases in
salaries. Thus, the interest of employees’ union is just one of many competing interests which may
be decided by the legislators.

Another difference of the government from the private sector is that most of the conditions
of employment, including government salary, are mandated by the law. On these issues
government administrators cannot enter into an agreement with the employees union, unless the
legislature agree to pass a law on the matter.
Another point of difference is that the decision-making authority in government is more

diffused than in the private industry. This government set-up is intended to prevent over-
concentration of power in public officials.
Other differences may be summarized, as follows:
1. The government is not just one ordinary employer. It is the instrument of the whole
people, the majority in our concept of what is public,
2. Personnel policies are covered by law,
3. Terms and conditions of employment subject to negotiation are limited; and,
4. The processes of negotiation and settling of disputes follow a pattern quite different
from that of the private sector.
Public Service Unionism in the Philippines
Unions did not exist at the beginning in the regular agencies of the government. There
were benevolent organizations, confederations, clubs and societies which were formed just for
welfare and protections. There were very few unions in some government corporations
performing proprietary functions and in a number of financial institutions.
In general, however, unions did not exist in regular agencies until the adoption of the 1987
Constitution.
Inspired by the triumphs of the “People Power” at EDSA in 1986, which led to the
departure of President Ferdinand E. Marcos and the assumption to the presidency of Corazon C.
Aquino, the 1987 Constitution has popularized the concept of people empowerment. It has set

the broad policies regarding labor protection and employment in its Article XIII, specifically its
Section 3:
“The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.”
“It shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike in accordance with
law. They shall be entitled to security of tenure, human conditions of work, and a living
wage. They shall also participate in policy and decision-making processes affecting their rights
and benefits as may be provided by law.”
On the basis of the Constitutional mandate, President Corazon C. Aquino issued

Executive Order No. 180 on June 1, 1987, which mandated that government employees can form,
join or assist employees organizations of their own choosing for the furtherance and protection of
their interests.
Executive Order 180 also provides for –
1. Creation of a Public Sector Labor-Management Council chaired by the Chairman of

the Civil Service Commission with the Secretary of Labor and Employment as Vice-
Chairman, and with the Secretaries of Finance, Justice and Budget and Management
as members. This Council has been authorized to implement the provisions of the
Executive Order, especially the accreditation of employees unions, and issued the
implementing guidelines.
The set of implementing rules the Council issued defined the manners and procedures
of accrediting government unions. It defined the terms and conditions subject of
negotiation, and those not negotiable.
Among the terms that can be negotiated are:

1. Schedule of vacation and other leave,
2. Work assignment of pregnant women,
3. Personal growth and development,
4. Communication system – lateral and vertical,
5. Provision for protection and safety,
6. Provisions for facilities of handicapped personnel,
7. Provisions for first aid medical services, and supplies,
8. Physical fitness program,
9. Provision for family planning services for married women,
10. Annual medical and physical examination; and,
11. Recreational, social, athletic and cultural activities and facilities.
Not subject for negotiation are those concerns covered by law and require
appropriation of funds, as follows:
1. Increases in salary and allowances,

2. Car plan,
3. Facilities requiring capital outlays,
4. Provident fund,
5. Special hospitalization, medical and dental services,
6. Rice, sugar and other subsidies,
7. Travel expenses; and,
8. Increase in retirement benefits.
Matters requiring the exercise of management prerogatives, are likewise not subject
to negotiation, as follows:
 Appointment and promotion,

 Assignment and detail,
 Reclassification and upgrading of position,
 Revision of compensation structure,

 Penalties imposed in disciplinary actions,
 Selection of personnel to attend seminar, trainings and study grants,
 Distribution of workloads; and,
 External communication linkages
Government departments and agencies have employees’ unions of rank-and-file

employees. Above this rank, are professional and technical employees who, if belonging to
managerial or middle management, cannot join unions. They may, however, join professional
organizations which are now seeking accreditation by the Civil Service Commission.
Read further Executive Order No. 180, dated June 17, 1987, and its Implementing Rules.
READING ASSIGNMENT
E-Journals/E-Books
1. Differentiate public service unions from the regular employee organizations.

2. What characteristics of government as employer are not found in a private employer?
3. Enumerate at least five (5) labor concerns which are not subject to negotiation.
4. Would you say that the power of public sector unions to negotiate for better terms of
employment is limited? Explain why.
Executive Order No. 180 dated June 1, 1987 and its Implementing Rules.
Sison, Perfecto S. as revised by Payos and Zorilla (2003). Personnel Management in the 21st
Century. Manila: Rex Book Store.

MODULE 5
NORMS OF CONDUCT
AND ETHICAL
STANDARDS IN THE
PUBLIC SERVICE
Learning Objectives
1. name the eight (8) norms of conduct of public workers as provided for under Republic
Act No. 6713;
2. explain the constraints on public workers’ performance; and,
3. discuss how too much restrictions on performance defeat efficiency and
responsiveness in public service.
Corruption of Incompetence, Public Accountability Conflict of Interests

Transparency Disclosure and Divestment Public Interest
Whistle Blowing Ignorance and Stupidity
INTRODUCTION
The tendency to be critical of the bureaucracy, in general, and government employees, in

particular, is still very much with us. The way it looks, the not-so-good image of bureaucracy will
be in the perception of our people for many more years.
On account of the misconceptions that government bureaucrats are generally lazy, and
corrupt, there is a continuing public demand to hold them accountable for their actions.

Like in the United States, our general public expects extraordinarily rigorous standards of
conduct among public officials and employees, and continuing efforts to create those features of
employment of accountability and transparency, are essential to viable democratic government
(Stahl 1983).
Any person accepting government position is presumed to accept the responsibilities that
go with it. He must always be prepared to answer for failures to live up to those responsibilities.
The objective of personnel system is to design and administer policies that will select,
place, utilize, maintain and discipline employees in a manner that they can measure up to public
expectations.
It appears to be a tall order to demand that our public officials and employees be at all
times accountable to the people and to discharge their duties with utmost responsibility,
integrity, competence, and loyalty, and act with patriotism and justice, lead modest lives, and
uphold public interest over personal interest.
This is taken from the declaration of state policy under Republic Act No. 6713, otherwise
known as the Code of Conduct and Ethical Standards for Public Officials and Employees.
Under this Code, government personnel must observe the following norms or standards
of personal conduct in the discharge and execution of official duties:
1. Commitment to public interest,

2. Professionalism,
3. Justice and sincerity,
4. Political neutrality,
5. Responsiveness to the public,
6. Nationalism and patriotism,
7. Commitment to democracy; and,
8. Simple living.
Constraints on Public Employee Performance
Government officials and employees are just like walking on a tight rope, balancing public
interest with setting priorities in the exercise of discretion. It is just fine if what they do are in
accordance with law, and are mindful of people’s concerns and problems. But the moment their
tasks involve exercise of discretion on whom to attend first or whose request to answer first, they
run the risk of displeasing some individuals while satisfying others. In this instance, are they
serving the public interest? To what extent could they be held personally liable for doing their
duties?
Indeed, there are controls affecting bureaucratic behaviors. The Code of Conduct, the
Anti-graft law and other prohibitions keep bureaucrats from making mistakes or failing to serve
public interests.
Controls on performance may be categorized into formal and informal. The formal control
mechanisms may take the forms of congressional hearings, legislative actions on the budget, the
interventions of judicial courts, impositions of the organization hierarchy, the Ombudsman, the
Presidential Anti-Graft Commission in checking government officials’ life styles, and the watchful
eyes of the media.
While these controls are necessary, they might go beyond bounds of reasonableness. If
they do, they induce in the bureaucracy timidity, undecisiveness, and self-protective behaviors.
They may also discourage the entry or retention in the public service of the most creative and
venturesome minds. All these may not serve the cause of responsive and accountable government.
The informal controls may take the forms of the awareness and knowledge of peers or
other organizations and the codes and standards of one’s profession or occupation.
Ethics

Ethics according to Stahl (1983), is truly a part of competence. Being incompetent
especially when it prejudices public interest, is a worse kind of corruption than financial
corruption.
Test may have to be employed to ascertain when a decision or exercise of discretion serves
morally justifiable purposes. Such virtues as honesty, justice, selflessness or courage may provide
good measures, because applying these virtues results in good behavior.
It seems our government graft-busters are primarily preoccupied with government

officials’ lifestyles, income, wealth and investments. This way they overlook a more serious
violation of a truly ethical standards, that is favoring selected groups to the disadvantage of the
general public.
In granting favors to special interest groups, overstretching or twisting the meaning of

laws and rules, or rendering questionable decisions, government officials are in the process of
showing their own personal prejudices, desires and objectives rather than the real intent of the
law or the interests of the general public.
To the discerning observers, legislators, judges and justices are more susceptible to this
kind of immorality, rather than the public officials whose latitude for decisions are far more
restricted.
The central issue of public service ethics is always to serve and uphold the general welfare,
rather than the limited interests of some favored groups. Public interest should always be the
ethical standards of official performance (Stahl, 1983).
Another concern of our corruption fighters, more than malversations and dishonesty, are
wastage in government resources, faulty patching of potholes in the streets and highways, leaving
manholes uncovered, and neglect in garbage collections.
Corruptions of incompetence, ignorance and stupidity are far more depraved than stealing
and lying in the public service.
Beware of Participative Decision-Making
In a democratic sense, popular participation in decision-making is welcome. But it has its

drawbacks too. It takes time, inhibits maximum delegation of authority down the line, and
diffuses responsibility so widely that it becomes difficult to pinpoint responsibility.
Whistle Blowing
What is this thing known as “Whistle Blowing?” Is this the best deterrent to graft and
corruption in the public service?
There is an on-going campaign among sensible but overzealous graft-fighters to promote

“Whistle Blowing” in the government service. Admittedly a deterrent to graft, “Whistle
Blowing” has at the same time discernable disadvantages.
Blowing the whistle on one’s supervisor, is creating an incentive for insubordination.

What if an official happens to be wrongfully accused, putting the poor victim on the defensive?
Apart from opening invitation to insubordinations, it may encourage harassment and disrespect,
destroy the virtues of responsibility and loyalty in an ideal subordinate-supervisor relationship,
and remove that climate of high morale and motivation for executives.
This may help in the fight against corruption, but care must be exercised.
Conflict of Interest
There is conflict of interest when an individual’s private interest (usually economics) runs
counter to serving public interest. An example is a government executive whose decision in his
official capacity may affect a person with whom he has business connection. Fertile grounds for
this kind of confrontation of interest are regulatory commissions, procurement offices, assessors’
offices, and inspection teams.
Disclosure and Divestment

Business people who accept appointments in the government service are required by law
to declare their assets and liabilities and, if necessary, divest their financial holdings in private
business.
Do these requirements actually deter corruption of illegal enrichment in government? But

definitely those who sacrifice their fat salaries and perks in private business to serve the
government feel this unwarranted intrusion into their privacy in addition to their financial
sacrifices. Besides, they are taxed (capital gains tax) in divesting their stocks, a requirement
before they can join the government.
Related to the divestment, other restrictions on government officials and employees are
the prohibitions against acceptance of gifts and employment with private entities that have
transacted business with the government, or specifically the government agencies concerned. At
least for one year right after separation from the government service, a government official or even
employee is prohibited to accept employment with a private business which has official
transaction with his agency.
The gift proscription clashes with the Filipino culture. Among Filipinos it is bad taste to
turn down a gift which is offered in return for satisfactory service. To many, not accepting is an
insult. In the United States this particular prohibition may have no problem.
All these prohibitions or restrictions appear to be more of window dressings as they are
focused more on the prospects of misdemeanor, rather than the misdemeanor itself. Who can say
what will happen after the declaration, divestment or expiration of one year? Is there an assurance
the government officials will no longer enrich themselves, or exert undue influence on their former
government offices to favor a certain private business?
READING ASSIGNMENT

E-Journals/E-Books
1. Name the various constraints on government officials and employees.

2. In what way do some of these constraints defeat the desired efficiency and
responsiveness in the service? Illustrate.
3. Why are certain prohibitions considered mere window dressings?
4. Would you say that our anti-graft laws are sometimes just good on papers, and
not in actual implementation?
ACTIVITY No. 6
Check which control applies in the following situations:
Formal Informal
1. Hearing on a case at the Civil
Service Commission
2. Investigation of the Ombudsman
3. Professional Code of Physicians
4. Comments of peers or co-workers
in organization
5. Norms of conduct under R.A. 6713
Republic Act No. 6713 dated February 20, 1989, and its Implementing Rules.

MODULE 6
CURRENT TRENDS IN
PUBLIC PERSONNEL
ADMINISTRATION
Learning Objectives
1. discuss the current and evolving practices in HRM in the civil service;
2. understand current practices and evolving trends in public personnel administration.
HR as Critical Resource HR as Capital Investment Eleemosynary

Institution
Co-partner in Governance
The Environment of HRM in Public Administration
Public preoccupation with public HRM is eternal (Stahl, 1983). This concern is more
focused on the performance and competence of civil servants, most especially those who are in
constant contact with the public because of the nature of their duties. At the same time, they are
always critical and suspicious of government employees charged with the custody of public funds,
tax collection, license and permit issuance in regulatory entities. They know these are the
government agencies most exposed to temptations of corruptions.
It is wrong to treat personnel function as merely another technical function, as simply

parallel to personnel management in private business or as function of a personnel office as that
entity known as the central personnel agency or civil service commission.

Personnel function is the responsibility of everyone in the government service, most
especially the supervisors, directors and managers. While our legislators provide the general
direction in the personnel programs of the government, people in the bureaucracy with expertise
and competence in personnel management contribute to the shaping and formation of personnel
policy in an ever expanding bureaucracy brought about by increasing social and economic
demands of a growing population.
The Trends in Personnel Management
The observable trends in personnel recruitment is the entry in the service of mostly
qualified employees with the desired knowledge, skill and qualifications. Gone are the days when
the less qualified found refuge in government employment which caused it to become a sort of
gigantic charitable institution where government positions were treated as give-aways being
dispensed with on the basis of needs or rewards. In those days, government employees were
regarded as a cost which could easily be cut or even removed, whenever the government decided
to retrench.
A New Paradigm
At the height of the popularity of behavioral science, workers in both public and private
sectors have been considered an asset, a critical resource in the dispensation of products and
services. Without this human resource, the other passive resources like materials, money and
machines could not be converted into useful components of production. In the light of this
development, human resource management supplanted personnel management.
Human Capital Management
The entry in public and private employment of individuals with the desired knowledge,
skill, experience, and expertise, is again changing the image of the human component of an
organization. In the private business, it is now fast becoming more than an asset; it is now
considered a human capital. If the owner has invested money as capital, the worker has invested
his skills, knowledge and expertise likewise as capital. Sison (2003) named two (2) elements of
human capital, namely: hard and soft skills. Hard skills are those easily discernible like

proficiency in typing. Soft skills are innate qualities like intelligence, energy, and integrity. In
the process, both owner and worker may be considered co-owners.
In the government service, employees may soon be regarded as a co-partner in governance

where the common objective is the provision of an efficient, effective, and responsive service to
the people.
READING ASSIGNMENT
E-Journals/E-Books
1. Name the three (3) stages of the role of human resource in an organization.
2. Explain why human resource is regarded a critical asset.
3. Explain the meaning of human capital as an investment of the individual workers in
private business.
4. What do you think is the advantage of the government-employee partnership?
Will this result in effective and responsive governance?
ACTIVITY No. 7
The practice of outsourcing or privatizing government services like security, janitorial and
even recruitment is getting popular especially among government corporations and financial
institutions. Explain how this practice will affect our future personnel management system.
Sison, Perfecto S. as revised (2003). Personnel Management in the 21st Century.

Manila: Rex Book Store.

MODULE 7
RETIREMENT
Learning Objectives
1. discuss the different retirement laws in the government;

2. discuss the conditions and requirements for retirement in the government service; and,
3. explain the procedures and techniques of computing benefits under different
retirement laws.
Contributory/ Funded Retirement System Compulsary/ Optional Retirement

Annuity Superannuity
Basic Monthly Compensation Gratuity
INTRODUCTION
Retirement means separation of employees by reason of age, disability or death. Slow to

evolve, this aspect of HRM has developed in its modern concept from expediency to charity, and
lately to the employees right to a deferred salary at the end of a career in the government service.
According to Stahl (1983), Great Britain was far ahead of the United States, in adopting a
means to compensate for superannuation. Its root was traced back to the pension plan for the
British Customs Service.
While England introduced in 1810 a comprehensive retirement law with generous benefits
for all English civil servants, the United States has a history of administering multiple plans
covering particular jurisdictions, departments, or employment categories.

Important revisions to the British retirement plan came in 1857, the main features of which
were a non-contributory scheme fully funded by the employer, a scale of pensions based on annual
requirements, and retirement age of 60 years.
The US federal service has a retirement plan for its public employees since 1920, which
later became a true annuity plan based on actuarial principle in 1930, and greatly revamped and
liberalized in 1956.
In the Philippine Civil Service, Commonwealth Ac 186 as amended by RA 660, introduced

a retirement plan. Republic Act 1616 amending RA 660 provided for gratuity. Lately, the
Philippine retirement plan was revised-under PD 1146 and then by a new law, RA 8291. Age 65
has remained to be the compulsory retirement age.
Under RA 660, a retiree can receive 80% of his average monthly compensation as his
monthly pension. Under the new law, RA 8291, a retiree will receive 90% of his average monthly
compensation without limit, provided he has rendered a creditable service of at least 36 years.
Creditable service of 36 years is an actuarial factor with corresponding premium or contribution
payment. The Average Monthly Compensation (AM) is the average of the actual salaries for the
last three (3) years in the service, 90% of which is the basic monthly pension (BMP) of a retiree
under RA 8291.
RA 1616 granted a gratuity benefit based on a graduated scale – those with 20 years
government service, can retire and be paid one month salary for every year of service for the first
20 years. Those with more than 20 years shall be paid one and a half months salary for every year
of the succeeding 10 years, above 20 years but not beyond 30 years. Above 30 years, two (2)
months’ salary for every year of service. Gratuity benefit is payable by the agency from which the
employee retires. He gets from the GSIS only the surrender value of his contributions and the
government counterpart.
Average Monthly Compensation (AMC)

The average monthly compensation (AMC) is the basis apart from length of service, for
computing the basic monthly pension (BMP). The AMC is the quotient after dividing the
aggregate compensation received by the member during his last thirty-six (36) months of service
preceding his separation, retirement, disability or death, by thirty-six (36) or the total
compensation by the number of months he received such compensation if he has less than thirty-
six years of service.
AMC is the average salary of the last three (3) years.

Initially, the AMC would not exceed ten thousand pesos (P10,000.00). It was later
adjusted by the GSIS Board to twelve thousand (P12,000.00), then to fourteen thousand
(P14,000.00), sixteen thousand (P16,000.00), until finally the limit has been removed.
The AMC is computed as follows:
1) If length of service is thirty-six (36) years or more:
Total compensation received during the last thirty-six

AMC = ____________(36) months of service______________
Thirty-six (36)
If length of service is less than thirty-six (36) years:
Total compensation received preceding unemployment,

AMC = Disability or death______________
Actual number of months a member received such
Compensation
Basic monthly pension (BMP) is 90% of the AMC.
Retirement Eligibility
An employee, member of the GSIS, is qualified to retire if:
He/she has rendered at least 15 years of service; and
He/she is at least 60 years old at the time of retirement.

As to how much retirement benefit a retiree will get, there are two (2) options under the
new law:
The 5-year lump-sum equivalent to 60 x BMP plus the basic monthly pension
(BMP) for life starting at the end of the 5-year guaranteed period;
or
Cash payment equivalent to 18 x BMP, plus the basic monthly pension (BMP) for
life starting immediately upon retirement.
Retirement Benefit Computation
An example may be illustrated as follows:
A member is retiring at age 60 with a total of 36 years of service. Shown below is the
schedule of compensation he received for the last three (3) years of continuous service.
Date No. of Mo. Pay

Months received
January 1, 2001 - December 31, 2001 12 10,500

January 1, 2002 -December 31, 2002 12 12,500
January 1, 2003 -December 31, 2003 12 15,000
Computation of the AMC
Total compensation received for the last
AMC = _________36 months of service_______

Thirty-six (36)
= (12 x 10,500) + (12 x 12,500) + (12 x 15,000) =

= (126,000) + (150,000) + (180,000) = 456,000 : 36
= 12,667 AMC
90% of 12,667 (AMC) = 11,400 (BMP)

Option 1 = 5 years lump-sum (60 mos. x 11,400 = 684,000)
plus monthly pension after five (5) years guaranteed
period.
Option 2 = 18 months cash payment (18 x 11,400 = 205,200)

plus immediate pension
Other Retirement Features
1. Compulsory retirement age is 65 years; but an employee may retire at age 60 years
2. Employees who entered the service before June 1, 1977, have the option to retire under RA
1616, RA 660 or RA 8291.
3. Retirement benefits are paid on the last day of service of a retiree if all requirements are
submitted to the GSIS at least thirty (30) days before the effectivity of retirement.
READING ASSIGNMENT
E-Journals/E-Books
1. What is the compulsory retirement age in the government service?

2. Who are eligible to retire under the new retirement law?
3. What is the formula in computing the retirement benefit under the new retirement law (RA
8291)?
ACTIVITY No. 8
Compute the retirement benefit under RA 8291 of Jose Robles at age 60 with a total of thirty-five
(35) years of service. He served continuously for thirty-three years and went on leave without pay
for about one (1) year. He reported back for another two (2) years.
Below is his schedule of compensation for his last five (5) years of service:

Date No. of Monthly Pay
Months received
January 1, 1992 to August 31, 1992 8 P 8,000.00

September 1, 1992 to December 31, 1993 16 9,500.00
January 1, 1994 to June 30, 1994 6 10,500.00
July 1, 1994 to June 30, 1995 12 Leave w/o pay
July 1, 1995 to December 31, 1995 6 10,500.00
January 1, 1996 to Debember 31, 1996 12 12,500.00
January 1, 1997 to June 30, 1997 6 15,000.00
How much will Jose Robles receive?
- Compute for the AMC

- Compute for the BMP
- Compute for the 5-year lump-sum
- Compute for the 18 months cash payment (Option 2)
GSIS Charter (RA 8291) and its implementing rules.
Primer on the GSIS Act of 1997.

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

DR. FLORIÑO O. IBAÑEZ

An Overview of Human Resource Management [The Definition and Scope of HRM] 1

An Overview of Human Resource Management [The Definition and Scope of HRM] 2

An Overview of Human Resource Management [The Definition and Scope of HRM] 3

EXAMINATION AND PROCTORING

An Overview of Human Resource Management [The Definition and Scope of HRM] 4

The following rating system shall be adopted by the Open University:

An Overview of Human Resource Management [The Definition and Scope of HRM] 5

An Overview of Human Resource Management [The Definition and Scope of HRM] 6

An Overview of Human Resource Management [The Definition and Scope of HRM] 7

An Overview of Human Resource Management [The Definition and Scope of HRM] 8

An Overview of Human Resource Management [The Definition and Scope of HRM] 9

At the end of this Module, you should be able –

Keywords and Phrases

Basic HRM Functions Operative HRM Functions Job Creation

An Overview of Human Resource Management [The Definition and Scope of HRM] 10

An Overview of Human Resource Management [The Definition and Scope of HRM] 11

Acquisition or procurement functions include personnel planning, recruitment, screening,

Maintenance functions include orientation and induction, motivation, performance

Development functions include training and personal development, career planning,

An Overview of Human Resource Management [The Definition and Scope of HRM] 12

1. Public service is more urgent than services performed by private organizations,

For example a department secretary during the administration of President Corazon

An Overview of Human Resource Management [The Definition and Scope of HRM] 13

1. Define HRM and its scope in an organization.

An Overview of Human Resource Management [The Definition and Scope of HRM] 14

At the end of this Module, you should be able –

1. define merit system; and,

Keywords and Phrases

The result was a sort of accommodation of politicians’ recommendees to government

An Overview of Human Resource Management [The Definition and Scope of HRM] 16

An Overview of Human Resource Management [The Definition and Scope of HRM] 17

Martires, Concepcion R. (2004). 2nd Ed. Human Resources Management. Mandaluyong

An Overview of Human Resource Management [The Definition and Scope of HRM] 18

At the end of this Module, you should be able –

1. define position classification and gain applied knowledge in job analysis;

Keywords and Phrases

Position Classification Concept Class of Positions Occupational

What is position classification?

An Overview of Human Resource Management [The Definition and Scope of HRM] 20

An Overview of Human Resource Management [The Definition and Scope of HRM] 21

1. The expansion of the merit system,

The advantages of the classification concept are:

Complaints against the classification system may be summarized, as follows:

1. Length of time it takes to effect a change in classification,

An Overview of Human Resource Management [The Definition and Scope of HRM] 22

1. What is position classification?

An Overview of Human Resource Management [The Definition and Scope of HRM] 23

At the end of this Module, you should be able –

1. define pay plan; and

Keywords and Phrases

Equal Pay for Equal Work Pay Comparability Pay Plan

An Overview of Human Resource Management [The Definition and Scope of HRM] 24

1. It integrated allowances and benefits into the basic salary,

Methods of Job Evaluation

The different methods of job evaluation are:

Name the method of job evaluation used in the following:

1. The basis is a set of duties and responsibilities. __________

David Keith(1993). 4th Ed. Human Resources and Personnel Management.

Flores, Tomas W. (1978). Compensation and Position Classification in the Philippine

An Overview of Human Resource Management [The Definition and Scope of HRM] 26

Report on Wage and Position Classification Survey of the National Government

An Overview of Human Resource Management [The Definition and Scope of HRM] 27