UP SOLAIR: 2008, The Year That Was

ANTO COMETA

AVP - UP SOLAIR: 2008, The Year That Was. Happy viewing :-)

Divergence and Convergence of Industrial Relations and Human Resource

ANTO COMETA

The fields of Industrial Relations formerly known as the Institutional Labor Economics and the School of Personnel Management (originally known as Employment Management) which later on evolved into what is called at present as Human Resource are seen as two separate and distinct areas of studies and specialization. Tracing its origins and development the two areas are the responses in order to identify the causes of labor problems as well as to provide resolution to those problems which is very much inherent in the domain of labor and capital in the industry.

At the outset of the establishment as academic inquiries and practices in the commercial and business organizations, labor problems were seen as unitary and capitalist in nature wherein there is a general struggle between labor and capital over the control of production and distribution. However, another view was introduced which defied that particular perspective. It was pluralistic by character which recognizes that labor problems may not solely be the cause of labor-management conflict but may take different forms such as those that afflict both employers and workers. Moreover, it was seen not only as existing under a capitalist economy but also in socialist system. These labor problems provide the central position of investigation in the field of Industrial Relations. It defines the field as including those problems of human behavior involved in the reciprocal relations of the worker with four types of situation - the laborer’s work, fellow-worker, worker’s employer and the public. Industrial Relations was believed to lead increased efficiency in the organization through the means of improved production methods, motivation and cooperation between management and workers. These labor problems were recognized as field specific and were then labeled as personnel problems. As the labor problems were streamlined so as the schools of thoughts themselves. As Industrial Relations focuses in the study of key forms of behavior focusing on the employment relationship a new field of personnel management was being formed.

Industrial Relations was then viewed as the inquiry and Human Resource as a practice. Personnel management or Human Resource emerged as a fusion of Scientific Management and welfare work which then evolved with the emergence of human relations movement. Personnel management maintains the view that the root cause of labor problems and conflict between labor and management is not intrinsic in the defects of the capital market but in the organizational and administrative practices of the management. Hence, labor problems are management problems and improved industrial relations is a responsibility on the part of the management.

Both try to take forward the knowledge on the varying aspects of the employment relationship such as problems in the prevailing business practices as well as the working conditions faced by the workers. Furthermore, both try to seek reforms in the workplace and achieve efficient employee-employer relations or employment relationships.

Departure of Human Resource from the field of Industrial Relations

The major point of disagreement between Industrial Relations and Human Resource is on the discussion on the most effective way to resolve labor problems and appropriate role to be played by the labor unions and collective bargaining. Moreover, it is deemed as the former is more concerned with the organized and unionized relationship in the workplace while the latter is centered in the individual work relationship of labor and management. Human Resource believes that alternative forms of industrial democracy or joint representation other than having labor unions and collective bargaining could materially take forward both the interests of the workers and the management.

Another point of contention between the two areas is on the view on improving the work and work relations of both workers and employers. In order to achieve the goals of Industrial Relations which are improved efficiency, equity and human well-being in the workplace industrial democracy, social justice and societal and institutional transformation should be employed. On the other hand, Human resource posits that achievement of those could be attained by creating an organizational climate that promotes a mutuality of interests between management and labor and high levels of job satisfaction and productivity among the workers.

Convergence of IR and HR

The field of industrial Relations and Human Resource are of the same view and analysis that there is a need for employment reformation. They also maintain similar views on the essential elements of reform to achieve increased efficiency and those could be achieved through the means of improved production methods, motivation, supervision, and cooperation between management and workers, greater equity in pay, good working conditions among others. Both have recognized that in order to resolve the problems it is important to take into consideration the human factor in structuring and managing work.

The two schools of thought believed that the autocratic, master-servant type of employment relations between workers and the management should be replaced with the type that would foster decent and fair treatment to its workers such as appropriate representation rights and due process in the establishment. Moreover, the two fields believed that the basic institutions of capitalism, private property and free labor markets should be maintained as these elements are the underpinnings of work and employment in which both workers and employers are apparently part of.

In the current context of Industrial Relations and Human Resource both as fields of study and as practices in the organization, the convergence is as follows:

• In the domain of the workplace, IR is the study of human relations while HR is the study of people management.
• Both disciplines are concerned with organized and individual relationships within the organization. The basic process of IR is rule making while decision making is the course of action in HR.
• Both are concerned with increased productivity and efficiency as well as empowerment of workers in the organization.
• The inputs of both fields such as the environments in the economic, legal-political and socio-cultural sphere affect the structure and its processes.

_________

Note: The discussion with reference to the ideas, concepts and principles of both IR and HR were derived from the references below.

References:

• Kaufman, Bruce. 1992, Industrial Relations in the United States
• Human Resource Development: A field in Transition

Predicted Increase in World Unemployment Due to Global Financial Crisis

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An article from the International Labour Organization concerning the increase in world unemployment because of the global financial crisis.

ILO says global financial crisis to increase unemployment by 20 million

GENEVA (ILO News) ─The global financial crisis could increase world unemployment by an estimated 20 million women and men, the Director-General of the International Labour Office (ILO) said today. “We need prompt and coordinated government actions to avert a social crisis that could be severe, long-lasting and global”, he added.

Based on revised global growth estimates by the International Monetary Fund (Note 1) (IMF), the UN and early reports suggesting rising job losses for most countries where data was available, ILO Director-General Juan Somavia said the ILO’s preliminary estimates indicated that the “number of unemployed could rise from 190 million in 2007 to 210 million in late 2009.”

Mr. Somavia added that “the number of working poor living on less than a dollar a day could rise by some 40 million – and those at 2 dollars a day by more than 100 million”.

Mr. Somavia also said that the current crisis would hit hardest such sectors as construction, automotive, tourism, finance, services and real estate. He also noted that the new projections “could prove to be underestimates if the effects of the current economic contraction and looming recession are not quickly confronted”.

“This is not simply a crisis on Wall Street, this is a crisis on all streets. We need an economic rescue plan for working families and the real economy, with rules and policies that deliver decent jobs. We must link better productivity to salaries and growth to employment”, Mr. Somavia said.

“Protecting and promoting sustainable enterprises and decent work opportunities must be at the heart of the Summit on the Financial Crisis recently announced by Presidents Bush and Sarkozy”, he added. “We must return to the basic function of finance, which is to promote the real economy. To lend so that entrepreneurs can invest, innovate, produce jobs and goods and services.”

Mr. Somavia said his concerns included restoring credit flows; maintaining and enhancing social protection, including pensions, unemployment benefits, child support and health care schemes; ensuring enterprise access to credit to avoid layoffs, wage cuts, bankruptcy and permit recovery, respect for workers’ rights and deepening social dialogue to deal with the impact on enterprises; ensuring ODA flows; rebuilding a regulatory regime for global finance; and moving quickly from recovery to sustainable development through investment and growth.

“We welcome the current calls for better financial regulation and a global surveillance system of checks and balances, but we must reach beyond the financial system”, the ILO Director-General said.

“Long before the current financial crisis, we were already in a crisis of massive global poverty and growing social inequality, rising informality and precarious work – a process of globalization that had brought many benefits but had become unbalanced, unfair, and unsustainable”, he said. “We need to get the balance right and concentrate on rescuing people and production. It’s about saving the real economy.”

“In order to keep open economies and open societies going, we must begin working together among relevant international organizations to develop a new multilateral framework for a fair and sustainable globalization. Trade talks are stalled; financial markets are on the brink, climate change continues; any reconstruction will have to find ways to integrate financial and economic, social and labour and environmental policies in a common sustainable development approach”, he said.

“This is the time to think and act in bold and innovative ways to confront the huge challenges before us, particularly for the United Nations”, Mr. Somavia said, referring to the forthcoming meeting next weekend of the United Nations Chief Executives Board (CEB) chaired by the Secretary-General Ban Ki-Moon.

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Note 1 – The IMF’s World Economic Outlook issued on 8 October projected 3.2 per cent global growth for 2009, down from its original projection of 4.6 per cent for 2008. In 2006 and 2007 projections were 5.5 and 5.6 per cent respectively.

Know Your Basic Labor Rights

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Basic rights given to all Filipino workers as outlined in Article 13 Section 3 of the 1987 Philippine Constitution.

• 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-organizations, and peaceful concerted activities, including the right to strike in accordance with law.

• They shall be entitled to security of tenure, humane 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.

• The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace.

• The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns on investments, and to expansion and growth.

Inappropriate Use of the Non-compete Clause

ANTO COMETA

One of the major violations committed by a lot of companies in the country is the use (or misuse) of the non-compete clause in the job contracts given to newly hired employees. A non-compete clause is a proviso used by companies to primarily protect its business from competitors such as disclosure of valuable information central to the operations or essential details that define the merchandise or goods of the business. It is an agreement wherein the employee is not allowed to engage in a similar profession or trade in competition against the company for a certain period.

This particular condition could only be used or is applicable only to those occupying key positions in the organization. Those key positions are those who have or possess by virtue of their function the trade secret(s) of the business such as management level positions and those whose function(s) are deemed crucial to the product or service as dictated by the nature of the business. However, the abovementioned clause is very much exploited (if I may use the word in the context of over utilization) as a lot of organizations predominantly those who tend to impose such across all positions (primarily rank and file posts) in their organization. If the said clause is to be required or used as a “security bond” to those workers who do not fall under the category of having the business’ trade secret it is deemed as an infringement of the right of the worker. This in conflict with the stipulation set forth by the Philippine Labor Code Article 12b which asserts that every individual desiring to work either locally or abroad should be given protection by securing the best employment terms and conditions.

Preventing the worker to fully realize his or her value and potential by limiting the marketability of the individual is a blind alley not only for the firm but also has a distressing impact on the country. Limiting the worker to find a job after leaving the organization could lead to unemployment. It is more of a deterrent than what is said to protect the business from loosing its footing in the market. It increases the social costs as well as hampers the growth and development of the country’s economy.

Cut Me Some Labor Slack

ANTO COMETA

Just after I was discharged from the hospital I finished my thirteen-page (nice number isn’t it?) policy paper for my Labor Law II class (IR 207.2 – Labor Standards, Justice and Equity). It dealt with some provisions from the Philippine Labor Code as well as the country’s Constitution that need to be modified and reinforced in order to address some issues that the labor sector specifically the women workforce is currently facing. To be quite honest about it, I’m not that pleased with the output. It was rushed since it was already due and I still have to review for my final exam for that same course. Luckily, I already finished all the requirements from my other class before I was hospitalized and that’s the remaining class that I have to deal with. Anyway, I already took my final exam and just right after I forwarded my test paper to my lawyer professor - Fiscal Gerardo Sadsad I just realized that it was the end of my semester. It was indeed tedious yet exultant semester for me.

My semester has ended, and I’m getting my diploma in Industrial Relations. One more semester to go and I’ll be doing my master’s thesis which until now still undecided on the topic that I’ll be covering. For now, I’ll have a couple of weeks off from doing SOLAIR stuff. Well, not totally. I still have a planning session to attend to with the student council.

I miss writing IR-related stuff, I guess after this entry I’ll post one.

I’m Back!

ANTO COMETA

After being dead sick (literally), being confined in the hospital and spending more than fifty thousand for just three days, I’m back! That was the worst in my life so far, worse than the vehicular accident I experienced in Laguna years ago. I thought I was about to die (seriously), I was quite lucky that I had a first-rate doctor - a consultant of the hospital who took good care of me , although I have to say that his professional fee (including the hospital bill) was way above the stars. Nonetheless, he’s good. Actually, all the doctors I encountered were quite good, for some medical-work-related reason or the other (and it just reminded me of someone, a very special someone in the past).

Being confined in the hospital was not that bad, except of course for the bill. I have mulled over some life-related matter (which I would not discuss publicly) that should be addressed aptly and at the soonest possible time – ang nagagawa nga naman ng walang magawa ay kung hindi mag-isip.

There are a lot of things that I’m so grateful about and people other than my family I that I owe big time and should be given supreme appreciation, as in to the highest level (sounds like some remark of a certain female dj of a local fm station that I usually hear in the morning going to work). It just re-affirmed that indeed you guys are really for keeps no matter what.

Top 5 Things I Hate (and Love) About You

ANTO COMETA

5. You’re not sweet and appreciative. Every time I give you something it is as if you would say “I could also buy that”, and you wouldn’t even say thank you, which made me think that you wouldn’t need those that I would be giving you. So, I don’t have to give you anything.

4. You always ask me if I really love you. It pisses me off because it is as if I don’t. What do you want me to do just to make you realize that I really do? But at least I wouldn’t have to think of any other answer bundled with a justification. I’ll just say yes and we’ll cuddle.

3. You’re skeptic and paranoid most of the time particularly with what I do when we are not together. If I’ll put in Rene Descartes’ philosophical context, you’re in search of the truth. Although I know that you’re just negative about everything. At any rate, I love Descartes, one of my favorite thinkers back in my undergraduate years - Cogito, ergo sum.

2. We always argue even with the littlest thing. I could just take no notice of it so not to make things worse but it stimulates me, I have to win over the argument, it reminds me when I was part of the debate society.

1. If you’re jealous, you’re attentive with what I have to say and most of the time you would just stare at me. In those cases your eyes and head are just fixed and focused at me and not performing the exorcist thing. Made me feel so secured – the only apple of your eyes.

Nice Words to Hear

ANTO COMETA

Kahit habang buhay maghihintay ako sa ‘yo.
Asahan mong hindi magpapalit itong damdamin ko.

- Early 90’s Singing Group

Just a wishful thought which has no element of rationality. In your case just, pure words that has no sincerity. We don’t have reasons to believe each other. We have trust issues.

But you have more than I do.

Let’s talk after we have resolved those issues within ourselves. Maybe it would workout by then, maybe.

Unusually Familiar and Disturbing

ANTO COMETA

Last Saturday was a deviation from my usual after-class routine. Lanie was not feeling well so she decided to go home instead of staying and doing what we had been doing for the past couple of months, our Havana Fun – singing at a KTV establishment along Visayas Avenue and drinking while injecting some labor, society-related and personal stuff (usually gossips) as part of the conversation while Jef is sleeping. I was banking on luck that Lanie would change her mind. I asked her for one last time if she could. Unfortunately, she said she really can’t so we decided not to have our Havana Fun that night and just have our dinner.

After we had our dinner at Grill Queen along Maginhawa St. in Teachers’ Village people decided to split and have their own individual fun particularly the council’s chairperson (Mcrhon joke lang). Jab was oddly happy that night – no wonder Mcrhon uttered nadiligan ka yata kagabi kaya masaya ka noh? Jab was asking where to get a ride going home since she’s not familiar with the general area, although it’s quite weird since she’s been residing near the area for several years. Mcrhon and Jab decided to take the Philcoa route.

A week before that was quite taxing for me. The symposium I organized together with Atty Bitonio (former Usec of DOLE and Chair of NLRC) which took months was finally carried out. I’m thankful to the rest of the council for helping me on that activity although I have my share of gripe before and after its implementation because of several concerns which were not properly addressed. Nonetheless, I’m grateful that it has already ended (for those who would want to grab copies of the materials used by the speakers visit the UP SOLAIR Student Council site – www.upsolairsc.wordpress.com). I was hoping that I could "de-stress” that night but to no avail.

We went to the bus station in Cubao to drop Lanie. After we dropped her off at the terminal we went to Treehouse to meet Eumel. We have to meet him since we already talked about it that afternoon and that he said that he’ll be joining us after his class but unfortunately things didn’t go as it was suppose to be. He was not informed when people decided not to have our Saturday session, I totally forgot about it, so to be well-mannered enough I decided to meet him even if it’s just the three of us. I had my favorite “detoxi-flying drink” of course, minimal amount such as a glass serves as detox (quite healthy), more than that makes me high (very happy). Middle of the conversation, Eumel popped in a topic about break up. Of all topics that one could think of he really did inject something that I don’t like to hear, well, I guess just for that night. Actually it’s not about the break up of that couple, but he has already shared one last week. The first one he shared was so depressing and the primary reason I don’t want to hear it was because I want to remove the stress that I have accumulated over the week and a post-celebration of the symposium and not to distress myself just by listening.

Those stories he shared were quite familiar, but the unusual thing was he was so affected about those break ups to the extent that if ever he’ll see the person who wronged the aggrieved party he’ll slap and torture that individual. A considerable level of sympathy (or empathy which ever is the case) is understandable but this one is beyond the mark. At that point I was quite alarmed and troubled, not with the break up stories but with Eumel. After finishing our “healthy and wholesome” drinks we parted ways. It was a night for me… a disturbed night.

Disappointment

ANTO COMETA

It’s getting worse by the day.

You don’t have to yell. It wouldn’t help at all. I wouldn’t listen, because that’s not the way to convince me.

There are a lot of things I hate about you. You even justified those as who you are. Part of your being that you cannot live without. I cannot change those; you’ve been living with those your whole life, quite the unusual, far from my standards.

I subdued myself for this to work. I tried, I tried hard. You might have noticed that. I sacrificed, you did too. But what’s happening right now is very much troubling and we both know that.

I just try to entertain myself with things that are superficial so not to dwell on those aching feelings that I have.

I’m not trying to be righteous, nor try to persuade you that my points are far more superior to yours. There were, there are and would be sentiments and views that may be wrong, no doubt. I’m not even trying to defend my side. I’m just explaining my actions. I just want you to know where my frustrations are coming from, frustrations you consider petty.

Nothing more, nothing less.

Lifeless

ANTO COMETA

Just a couple of bottles to remove the inhibitions and to start the release of the angst …

Didn’t you notice for sometime now that the things that we’ve been doing are things that do not stir the commitment we have given to each other? The way I look at it, the way I feel it, it’s becoming a motionless relationship, the type that nears stagnation which would eventually be inert. I just don’t feel you anymore.

Are we drawn to actions that are routinary, those that are performed because we have been accustomed to? Those things which are done because they are deemed as basic requirements for this relationship to go on, without those, this commitment of ours would not be different from the others that I have – with my family, with my friends. If those things were removed, I don’t think that this relationship would be even called as the way it is defined.

Perhaps the ways that we look at a lot of things are very different. Obviously, those are. I’m trying to understand, I try to compromise, settle with what you give, settle with what you do. But give me something to believe, something concrete to hold on to because I’m on the brink of loosing my grip.

Am I asking too much?

Romance Suck(er)s!

ANTO COMETA

For a very good friend who inspired me because of what she wrote in her blog…

Would you rather not aim for something ideal or something that can make you smile every time you (would) remember episodes that are deviations from the normal routine of that someone?

Reality can be quite devastating particularly in most relationships which just end in the trash bin. Most people would rather not remember at all considering that recollections of that certain person even if it’s considered as delightful (not in the sexual connotation of the word) brings agonizing memories which would eventually set off bad vibes that could ruin the day.

For those who haven’t experienced such it is something to aim or look forward to if ever that someone would arrive. Hopefuls (or hope-fools which ever is the case) that more often than not create their own (fairy tale) scenes of passionate and romantic devotion to each other.

As for those who are just not so into those stuff since their lives revolve around themselves and how they would survive the dog-eat-dog world coupled with some tragic-paranoia-conspiracy theory views on people surrounding them, these dealings are just lavish and wasteful acts to perform.

Generally speaking, these alleged romantic actions are either done at the courtship phase or at the onset of the relationship, worse not at all – just pure engagement in lustful and sexual acts. Sometimes it also depends how the person perceives a certain action to label it as such. Romantic actions generates a certain feeling of euphoria even if it’s just for a very, very short period which is the primary reason why most people seek to come into contact with (ala meeting the ET ang dating).

Given that you are in a relationship or you would be (or wanted however fate doesn’t allow you to), would you not want to experience one or do something (for reciprocity’s sake) for that someone?

It could be something quite extraordinary or just something not far from the usual, but it boils down to making someone feel that their very special in your life even for just a moment.

Be Happy

ANTO COMETA

Do you really mean those words or just mere utterance by virtue of habit? Quite the opposite with the actions you do to the words you say.

Not sharing my thoughts most of the time doesn’t mean that I’m holding back things for my own gain. I would rather be quite about those than to start an argument which can never be settled. Both of us are just too arrogant to admit our flaws, way too proud to admit defeat. You said it yourself.

I could never blame you as to what you’ve become, how you look at things and your view on the relationship. You told me that you have been regaining your self-worth. I’m happy that you do. I know that there’s far to be mad about than those which should be cherished.

Have you recovered from those painful, heartrending memories? Those memories that are nothing more than what they were. Don’t you think that you’re just happy with the thought of being devoted to someone, affection to one which you can consider yours alone?

Very frustrating – I don’t know what to think, I don’t want to speculate.

For whatever its worth, be happy. There’s no other way but to be.

Uncertainty 3

ANTO COMETA

Why?

It’s been over five months.

You said that I have a choice, but you know that I already made one. If you meant was for me to change what I have decided on, that’s quite far from what I have in mind. Apparently, I’m not making another one, but to understand why I made it in the first place.

It wasn’t really an easy kind of thing to do to think that the web of complications surrounding the whole situation combined with a lot of apprehension from my end and as well as yours could only tell instability or vagueness from start to finish. It was indeed a wrong start. I couldn’t blame you if you have been stained by negativity and cynicism. But it doesn’t mean that you have the right reasons for such conclusions.

There were a lot of contradictions I’ve made, perhaps this one is another. The whole scheme of things is just something I don’t fully discern. I’m not also sure if you understand my predicament and the feelings I have right now and the things that I’ve been frequently thinking about.

It’s been a while that I have noticed that you were drifting away. Sudden changes on your behavior have been surfacing. I don’t want to think about it since I don’t want to pass judgment on those actions. But why do you go on? Why do I persist? Is it really the thing we’ve been telling each other or is just the yearning for forged romanticism?

Let me know if you have your answer.

Achieving and Sustaining Competitiveness in the Global Era: The Case of Company ABC (Part 1)

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The rewards and costs of achieving and sustaining competitiveness in the global era are fundamental in the placement of interests both of the business and the workers. Advancements in technology alongside with the competitive nature of the market has led most if not all organizations to look for viable ways of augmenting its ability to perform in order to avoid extinction. Increasing the efficiency and productivity of the business which is generally reflected in the company’s capability to maintain its profitability and still sustain the needs of the business as well as its workers are the perceived elements for its survival. Altering the processes and structure of the organization are largely the utilized ways in response to the dilemma or challenges imposed by the situation. However, modifications in the existing structure and processes of the organization in order to adapt to the changing requirements of the competitive market have crucial consequences not only the workers but also to the business. Various issues and conflicts arise which most of time are unfavorable to both parties. Careful analysis of the rewards and costs may present possible ways and approaches on how to manage and deal with the conflicting interests of the business and the (different levels of) workers.

The circumstances presented in Company ABC - the current situation that’s being faced by the banking institution as well as its workers, could lead to potential problems wherein both could lose its footing in the product and labor markets. At the least, six (6) major interrelated and to some extent overlapping issues were identified. These put forward conflicting interests whereby each holds central stakes in the continued existence of the business or the organization; these are (1) general skills and competencies, (2) organizational overhaul, (3) business efficiency and profitability , (4) compensation and wage dispersion, (5) resource allocation, and (6) benefits distribution. Preventive measures or negotiated agreements should be explored and taken so not to come across these concerns or worsen the condition which could put the entire organization in the red.

The rewards and costs of achieving and sustaining competitiveness in the global era are fundamental in the placement of interests both of the business and the workers. Advancements in technology alongside with the competitive nature of the market has led most if not all organizations to look for viable ways of augmenting its ability to perform in order to avoid extinction. Increasing the efficiency and productivity of the business which is generally reflected in the company’s capability to maintain its profitability and still sustain the needs of the business as well as its workers are the perceived elements for its survival. Altering the processes and structure of the organization are largely the utilized ways in response to the dilemma or challenges imposed by the situation. However, modifications in the existing structure and processes of the organization in order to adapt to the changing requirements of the competitive market have crucial consequences not only the workers but also to the business. Various issues and conflicts arise which most of time are unfavorable to both parties. Careful analysis of the rewards and costs may present possible ways and approaches on how to manage and deal with the conflicting interests of the business and the (different levels of) workers.

The circumstances presented in Company ABC - the current situation that’s being faced by the banking institution as well as its workers, could lead to potential problems wherein both could lose its footing in the product and labor markets. At the least, six (6) major interrelated and to some extent overlapping issues were identified. These put forward conflicting interests whereby each holds central stakes in the continued existence of the business or the organization; these are (1) general skills and competencies, (2) organizational overhaul, (3) business efficiency and profitability , (4) compensation and wage dispersion, (5) resource allocation, and (6) benefits distribution. Preventive measures or negotiated agreements should be explored and taken so not to come across these concerns or worsen the condition which could put the entire organization in the red.

Issues, Interests and Positions

1. General Skills and Competencies

The organization recognizes the need to keep pace with the changing demands and needs of the business and the market. In the last three years of the bank’s operations, older employees have contributed less than the younger employees. This didn’t mean that they exerted less effort but simply due to the acquisition of the skills needed in handling the new banking technology. In the interview conducted it showed that those who are at their 30s to 40s (regardless of gender) want more skills training and competency upgrading. As for those over their forties want the company to find ways of maximizing their experience, rather than simply introducing potentially job-shedding technological changes.

It is of equal importance and concern to the workers and the business to continually upgrade the skills and competencies required in order for the organization at the very least to maintain its survival in the market. There are two probable positions that could be taken in order to address the concern relating to the matter. In so far as the set of skills and competencies needed, developing training programs is one of the options that could be taken. Another, which could be deemed as a radical move, those deemed performing below the satisfactory level could be booted out of the organization.

2. Organizational Overhaul

This includes re-forming or re-organizing the structure, processes and design of the organization. The organizational structure, processes and design characterize the roles and functions carried out by each worker and are representative of the vertical and horizontal relationships within the organization. Moreover, these outline the appropriate channels and approaches for strategic information flow and decision making. The bank worries about losing its competitive edge if more efficient ways of organizing the work process are not introduced.

Modifying the organizational structure processes and design to achieve higher organizational productivity both operational and financial which is the aim of the business is of significant concern of the management. This is the most likely position to be taken by the company in order to effectively utilize and gain higher control over these concerns.

3. Business Efficiency and Profitability

The main thrust of the business is to deliver and achieve bottom-line returns which are chiefly dealt with higher asset utilization at prominently lower costs. This is the idea behind the business’s asset management and successful profit realization. This is of utmost concern of the business. Previously, the bank was perceived as financially stable having five solid years of increasing its profitability. Moreover, it was seen in the high productivity of the workers – with every peso spent on the individual worker it yields five pesos of net income. However, with the situation that could subvert the financial stability of the business diagnosing which works effectively and what’s hampering the efficiency and profitability could be the management’s action towards the resolution of this particular dilemma.

Increasing the bank’s efficiency to generate higher productivity while maintaining or lowering the overheads is the most likely position to be taken. This could be achieved by taking out those employing labor flexibilization measures. This is to maximize the current set of resources that the organization have while minimizing the cost of operations.

4. Compensation and Wage Dispersion

Wage is deemed as a central driving force (but not exclusive) in the delivery and performance of individuals within the organization. Determining the tolerable wage differentials in so far as seniority, position and rank levels in the organization is concerned as well as being compensated for the output and performance carried out is of importance to the company but exceedingly to the workforce.

The significant contributions to the business and organization such as increased profitability, output delivered and performance carried out is perceived to be directly related to the compensation to be given out. It could be seen on the survey conducted which had shown concerns on the part of those workers who are relatively new which raised the idea of pegging pay to skills and performance. Moreover, the demand made by the junior officers to increase the salary differentials between them and the rank and file as well as to the senior officers to be narrowed down.

Disparity in wage levels has an effect on the productivity or efficiency as well as motivation on the part of the workers. This also posits a relational conflict in both horizontal and vertical dimensions. The most probable position to be taken by the organization would be to provide performance and skill-based pay as well as to increase the base pay given to the junior officers.

5. Resource Allocation

The basic allocation of resources is the preference of which items to finance, what level of support it would receive and which items could be left unfunded. More often than not, businesses would invest on units or groups which generate higher productivity and profitability than those which were not. Moreover, those classified as high profit centers in contrast to those deemed as cost or low generating profit centers are mostly likely to be given high priority.

This concern is of equal interest on workers and management. The most probable position to be taken by the management would be in favor of the demands made by those individuals or group which yielded high levels of productivity and made significant contributions in terms of increasing the bank’s profitability. Failure to provide the pleas could result in the decreased morale and motivation of those workers which could eventually lead to their decreased productivity which also affects the business’ profitability. It could also be the case (which is more likely to occur) that these workers would leave the company and transfer to other organizations even to the competitors.

6. Benefits Distribution

Benefits more often than not are considered to be part of the entire wage or compensation arrangement given to the workers. Companies recognize the value of benefit packages in the organization as key factors in the individual’s consideration for an employment opportunity, employee morale and motivation as well as reduction in staff turn over. Thus, the benefits offered in the organization are quite essential to the overall employment picture.

It was identified that there were different needs in terms of benefits acquisition in the organization. These vary depending on the age group and (civil) status classification of the worker - workers who are married want child-minding facilities as oppose to those who are still single who prefers to have programs for fitness and wellness; those in their thirties to forties yearn for more skills training and competency upgrading in contrast to those over their forties and fifties who want the Bank to find ways of maximizing their experience and would consider an early retirement program plus assistance in setting up their own businesses should they retire, respectively. Moreover, the position of the union in general is simply to improve what is currently being enjoyed since the workers deserve to be rewarded for their hard work which brought the organization to where it is today.

This matter is of high concern to the workers. The needs may differ but they are not necessarily conflicting. It could be perceived that the needs cited if taken all together have varying levels of significance and appeal to the worker. If the organization decides to grant the need(s) one group over the other, it could likely cause tension and discord within the horizontal dimension. The most feasible action to be taken by the management considering the cost (as well as if it’s lucrative in the long term) is through the collective bargaining agreement scheme.

Achieving and Sustaining Competitiveness in the Global Era: The Case of Company ABC (Part 2)

ANTO COMETA

Analyzing and Resolving the Issues

The major dilemma as outlined by the issues and probable concerns perceived to be encountered by the company is principally attached in the organization’s view of losing its competitive edge in the market. With the introduction of new technology, international standards in the management of risks using mathematical models, sophisticated regulatory and compliance requirements resulting from laws seeking to accommodate e-transactions among others pose a tight spot in the efficiency of the organization to adeptly address the concerns of the business and the workers.

Among the six identified issues and concerns, there are three that could be deemed crucial. These need extreme focus in order to facilitate the resolution of the problem and avoid adverse consequences that may arise from those. It doesn’t mean however, that the rest are of low significance. The remaining three from the identified critical issues and concerns are developmental consequences which are also central to the dilemma.

The first critical issue relates to the financial or banking institution’s business efficiency and productivity. If the organization considered increasing the bank’s efficiency to generate higher productivity while maintaining or lowering the overheads by applying labor flexibility it could be the case that instead of achieving what is desired the converse could occur this could be considered as the worst alternative instead of being the best option. We do not shelve that there are several benefits that could be attained by applying labor flexibilization measures. The advantages by implementing such measures in the company are exceedingly significant to the operations of the business. On the firm’s end it would provide savings or profit - operational or overhead costs for not hiring additional manpower, and better resource allocation. On the part of its workers, it facilitates in the acquisition of several skills primarily related or needed for business operations. Together with the benefits that could be acquired by applying such measures, there are also negative implications that affect not only the business and but also its workers. In line with applying labor flexibility, modifying the organizational structure, processes and design follows. This is to justify or legitimize the utilization of such measures applied in the organization specifically to its workers.

However, applying labor flexibilization measures as well as changes in the organizational structure processes and design without careful analysis, strategic implementation and compatibility with the laws governing the rights of the workers could lead to further costs than rewards. If this happens, increased worker woes on employment matter leads to job discontentment. In the case of most workers in relation with the commonly used labor flexibilization measures applied in companies correlates more distressing views which are human capital exploitation and unfair labor practices. As stated in Article 247 of the Philippine Labor Code, unfair labor practices are not only violations of the civil rights of both labor and management but are also criminal offenses against the State which shall be subject to prosecution and punishment as herein provided.

There were several case studies conducted for financial institutions showed that cost reduction is just one way of profit maximization. Banks that tried to maximize profits by raising revenues while reducing costs is quite effective, but there are also those who provide higher quality services that raised costs yet also raised revenue more than the cost increases. It could be perceived that the results suggested that methods that exclude revenues when assessing performance may be misleading (Berger and Mester, 2001). Organizations should run the business in the interest of meeting not just their own needs but also other important stakeholders such as the workers since they are also contributors which have impact on the performance of the business. The best alternative is to look for other methods or have a consultation as to what would be the measures that could increase efficiency and productivity without encountering such concerns.

The second is compensation appended with the worker’s benefits. Benefits more often than not are considered to be part of the entire wage or compensation arrangement given to the workers. Companies recognize the value of benefit packages in the organization as key factors in the individual’s consideration for an employment opportunity, employee morale and motivation as well as reduction in staff turn over. Thus, the benefits offered in the organization are quite essential to the overall employment picture.

The best way to understand the needs and at the same time agree or eliminate those which could not be granted is through the collective bargaining agreement. The needs identified have varying levels of significance and appeal to the worker, however, it doesn’t mean that these various needs are conflicting since these needs is dependent on the category (age and marital status) of the worker. If the organization decides to grant the need(s) one group over the other, it could likely cause tension and discord within the horizontal dimension. The best option for the management is really to negotiate with the union in order to arrive at a mutual agreement.

As for those demands made by individuals or group which yielded high levels of productivity and made significant contributions in terms of increasing the bank’s profitability one of the usual and conventional way of adjusting or modifying the base pay in order to reflect or make it appear higher than what is given is achieved by combining benefits and other incentives either monetary or non-monetary. The objectives of determining pay may have one or more that may be in discord with each other (De Siva, 1992). These objectives can be classified into four distinctive categories. First is equity which includes the narrowing of inequalities, wage increase of the lowest paid employees, the concept of equal pay for equal work value among others. The second is efficiency which is reflected in efforts to connect or associate part of the employee’s wage to the productivity or profit, performance whether group or individual as well as acquisition of both skills and knowledge related to the execution of job functions. The third perceived objective is related to the stability in the macro-economic aspect. This has something to do with the levels of employment as well as other related factors that of could either contribute or impede the balance and sustainability of development of the economy of a country. Last identified objective is the effective allocation of labor in the labor market. This particular objective relates to the mobility of workers whether geographical or industry related since the motive of doing such is to the idea of acquiring a net gain and not only to meet the individual’s basic requirements.

A lot of organizations are now in search of sustaining their competitiveness in the market by means of increasing the pay given to the employee. The type (s) of pay are mostly related to performance measures, this is primarily done in order to sop up the costs of labor of the organization at the same time motivate and recompense the employee for the performance. The conventional way of companies in order to secure increased wages and reward their employees is through job appraisal and promotion. However, due to the limitations on resources as well as achieving higher positions in the organization not to mention that current developments in the organizational structure becoming less hierarchical due to market demands and types of flexibility employed in the company, incorporating pay increases based on performance is perceived to be more attractive and effective rather than rewarding the worker through promotions this could be deemed as the best alternative option. One of the methods or strategies that is gaining acceptance throughout different industries particularly in the services sector in order to increase the productivity and profitability of the company at the same time rewarding the worker is through performance-based pay. Moreover, the trend in paying the employees is not for the output produced or even for the labor input rendered but simply for the time spent on the job (Blinder, 1990).

There are several theories in human motivation which incorporates pay or pay system as a driving force in motivating their workers to achieve, increase levels or maintain satisfactory performance. The systems of pay given to the workers are now being integrated as part of the human resource management of organizations. This is primarily done in order to achieve the business strategies and objectives whether financial or employee-related since both directly affect the operations of the business. Pay is viewed as a matching element or a dependent variable to the employee’s performance and productivity, by increasing or providing additional pay based on increased productivity and performance is an indication that the company could its financial profitability and could achieve its business objectives.

Its is noteworthy to take into consideration that in designing or structuring a performance pay system, the type of system should highly promote the kind of performance that the organization requires and not just to increase its revenue. Fundamental principles should be laid out and that the objectives and targets should be quite measurable or realizable. Furthermore, the achievement of the performance pay system should be supported by operative approaches and strategies so not to establish that the targets and objectives are impossible to attain. As necessary, employ consultation or increase the involvement in the decision making process or designing of the system. By employing such actions, it could generate efficient or effective ideas, approaches and strategies that could contribute or lead to the achievement of the goals. The organization should also have a feedback mechanism to review the processes, procedures, outcome among others of both pay system and the targets and objectives. It is a excellent avenue in determining and assessing the key factors of either success or failure.

Lastly, skills and competencies which encompass the general productivity of the organization in delivering the required output needed for the business. In order to address the issues concerning the skills and competencies of its workers, organizations should also provide trainings since these are quite beneficial to the company and its workers in achieving their goals both monetary and non-monetary, this could be perceived as the best alternative over a negotiated agreement. To reinforce the training programs, the company should employ Total Quality Management (TQM). TQM which consists of continuous improvement activities involving everyone in the organization, managers and workers alike in a totally integrated effort toward improving performance at every level ( Goetsch and Davis, 1997). It could be integrated as part of the organizational and professional development program. In a quality organization everyone is constantly learning. Management encourages employees to constantly elevate their level of technical skills and professional expertise. People gain an even greater mastery of their jobs and learn to broaden their capability (Scholtes as cited by Goetsch and Davis, 1997). The required set of skills and competencies are basic not only because these are elements essential to the execution of the assigned functions and tasks of the worker in order to achieve the desired output needed for the operations but also important for innovation and alignment of current and future goals and strategies of the organization.

References

Blinder, A. 1990, Paying for Productivity, The Brookings Institution, Washington

Berger, A. and Mester, L. 2001, Explaining the Dramatic Changes in Performance of U.S. Banks: Technological Change, Deregulation and Dynamic Changes in Competition (Working Paper), The Wharton School, University of Pennsylvania

De Silva, S. 1998, An Introduction to Performance and Skill-based Pay Systems, International Labor Office, Geneva

Goetsch, D. and Davis, S. 1997, Introduction to Total Quality – Quality Management for Production, Processing and Services, Second Edition, Prentice Hall, Ohio

The Philippine Labor Code, Department of Labor and Employment, http://www.dole.gov.ph

Not Another Ordinary Day...

ANTO COMETA

A statement we drafted (together with the Chair and Vice-chair) disseminated to all constituents of the college and forwarded to a major newspaper in the observance of Labor Day. Mabuhay ang uring manggagawa!


NOT ANOTHER ORDINARY DAY…

The SOLAIR Student Council joins the rest of the nation in the observance of Labor Day.

The salient labor concerns such as sluggish implementation of wage increases, debilitating work standards and conditions, among others have remained unresolved up to this time. And this year may not be significant, as workers are still at the brink of rising unemployment rates, poorer working conditions, higher prices of commodities and increasing contractualization of work.

The recent shortcomings of our agricultural prices strained many of our laborers to clamor for the expedient implementation of a rational wage increase to sustain their decent livelihood. We believe that the increase on the daily wages is not only timely as it has been long overdue. The Student Council sees this issue as an institutional dysfunction of the appropriate government agencies supposed to deliver the mandate for the conduct of wage reviews, whether in a state of unprecedented national crisis or not.

We call for the immediate resolution of this issue and we urge these agencies to immediately act and present a feasible wage increase structure. We clamor for a more transparent and consultative wage review process to include participation of the different sectors of the society, especially the working population. By exercising this mandate, we provide assurance for both workers and employers.

The UP SOLAIR Student Council believes that the appropriated non-wage benefits for this year’s observance of Labor Day is an insult to the ordinary workers. These token “gifts” are clear manifestations of the State’s lopsided policy towards Labor. These represent the State’s total disregard of the interests and overall well-being of the working class.

We demand for the relevant government agencies to deliver their mandate! We demand for transparent and accountable wage review process to include different sectors of the society, especially the working class! We demand for the expedient implementation of wage increase!

We call on the Arroyo Administration to act on these NOW!!!

UP School of Labor and Industrial Relations
Student Council AY 2008-2009
May 01, 2008

A Call to Action to the UP SOLAIR Centennial Graduates

ANTO COMETA

Below is the statement of the UP SOLAIR Student Council which I drafted together with the council's Vice-Chairperson, Jef Baraquio for the centennial graduating class of the college. It was quite ecstatic when both the academic excellence awardee of the graduate school and the Guest Speaker - Dean Froilan Bacungan quoted the statement we distributed during the commencement exercise last Sunday, April 28, 2008.

For the graduates of both DipIR and MIR, I hope that what we have learned in UP SOLAIR would be applied in our respective professions and organizations and not just another item in our list of credentials.

A CALL TO ACTION TO THE UP SOLAIR CENTENNIAL GRADUATES

Today marks a momentous event in your academic and professional careers as you will be conferred with your respective Diploma or Master’s Degree in Industrial Relations, from no less than the School of Labor and Industrial Relations of the premier state university in the country, The University of the Philippines. As Iskolar ng Bayan, this not only brings prestige, but likewise responsibility and obligation to give something back to the country, to the university, and to the society.

A UP-SOLAIR education is not just a hard-earned diploma or another item in our list of credentials. Above anything else, it is something that we should apply in the workplace to effectuate decent work, non-discrimination, equal opportunities, and distributive justice.

As workers, it will be our weapon to resist unfair labor practices. As managers, it will be our moral and ethical standard in implementing just and equitable labor policies.

As graduates of UP-SOLAIR, we should lead by example in our respective organizations by taking into our minds and hearts, and be advocates of what is fair, what is just, and what is right --- the very core principles UP SOLAIR is much known for.

Let’s uphold and act on what we believe to be just and humane, not only for the workers and the organization we belong to but for the society and the country! Let us be UP SOLAIR graduates!

MABUHAY KA ISKOLAR NG BAYAN! MABUHAY KA SOLAIRIAN!

UP School of Labor and Industrial Relations
Student Council 2008-2009
APRIL 27, 2008