Basic rights given to all Filipino workers as outlined in Article 13 Section 3 of the 1987 Philippine Constitution.
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.
ANTO COMETA
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 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.
1. General Skills and Competencies
2. Organizational Overhaul
3. Business Efficiency and Profitability
4. Compensation and Wage Dispersion
5. Resource Allocation
Analyzing and Resolving the Issues
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.
References
BATNA or WATNA?:
Assessment and Reinforcement to the Negotiated Agreements
The concerns and issues with Mr. J could have been dealt with accordingly if the company had administered counseling and applied progressive disciplinary actions since these are typical behavioral and attitude-related problems in any organization. These progressive disciplinary actions are quite fitting and helpful in doing mid-course corrections. Such corrective actions however, should be constructive in nature as well as reasonable in order for the employee to understand why such actions were carried out. Deliberate ignorance of Mr. J’s violations considering that he was employed as a manager and that there is a behavior expected in line with his position was wide off the mark since there were standards, rules and procedures set by the company to regulate appropriate conduct for all of its employees. Furthermore, it could be deemed as an illustration of workplace inequality as being partial in favor of Mr. J. The employee is a human resource just like the others and giving special considerations to select few puts across discrimination to the rest.
The first negotiated agreement could have been very substantive even successful if the company (or both parties) employed progress evaluation. The settlement could have been the best alternative to a negotiated agreement (BATNA) for both since the conditions laid out by the parties prior to coming to the said agreement were generally practical, advantageous and viable. On Mr. J’s end, it could be considered as an economically sound motivation – money as motivator [2] in order to execute the necessary (at the very least) work tasks both expected and needed since the reward is significantly attractive to accommodate his personal endeavors. As for the company, it could be seen as a responsive action to the needs of their workers. Moreover, on the business side, it could be the solution to the problem of performance and functional effectiveness of the operations since work attitude and behavior at some level could influence the outcome. Progress evaluation is the reinforcement to the agreement in view of the fact that work schedule and attendance is oftentimes challenging particularly in cases wherein it is habitually done. By monitoring and assessing the development of the agreement, concerns could be uncovered and raised in a timely manner rather than waiting for the situation to get worse. As appropriate or necessary, based on the evaluation conducted, renegotiate. The renegotiation should still be based on the provisions set forth in the agreement prior to implementation. This is deemed to be the most flexible and apt way of dealing with matters that are not moving in the right direction. This is to facilitate the realization and eventual maintenance of the employee’s work tardiness and absenteeism.
The subsequent negotiation was clearly the worst alternative to a negotiated agreement (WATNA). It was a drastic measure which put the company in a detrimental and unfavorable state. The company did not examine the full implications of the new agreement made which turned to the unsettlement of the main problem. Changing the employment from regular full-time to regular part-time could trim down the productivity and could hamper the operations of the business. Full attention to the operations is a minimum requirement in order to execute the work function properly. This could also affect the tasks and delivery of output of other workers whose responsibilities and accountabilities are connected to his. Furthermore, the modification of the job title to suit the status or type of employment does not add any value nor provide noteworthy additions in the resolution of the issue.
With reference to the employee’s competency and expertise in the abovementioned field that created an impression of having a considerable significance which made him an asset or fairly indispensable to the company could have been purged or remedied if the company at the inception of the situation provided training programs which could equip and increase the skills and aptitude of the other employees. In this particular case it could be applied as part of the contingent plan or succession strategy in the organization. This is to assist employees who are deserving - based on credentials, skills as well as behavior such as commitment to be eligible for planned changes in both function and role in the organization. Trainings are quite beneficial to the company and its workers. To reinforce the training programs, the company should employ (proper) Total Quality Management (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.[3] 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.[4]
[1] Company Z is a European owned and managed Web Services Company that develops PHP-based commercial grade software and performance-based internet marketing services.
[2] A hypothesis (or theory itself) which states that workers are motivated by the need for money. There were a lot of theories which incorporated money as a driving force in the employees work performance such as Maslow’s Hierarchy of Needs among others.
[3] Goetsch, D. and Davis, S. 1997, Introduction to Total Quality – Quality Management for Production, Processing and Services, Second Edition, Prentice Hall,
[4] Scholtes, P. as cited by Goetsch and
Statement of Facts
[1] Article 13 Section 3 of the 1987 Philippine Constitution
[2] Article 3 Preliminary Title of the Philippine Labor Code – Declaration of Basic Policy
[3] Pontificum Consilium Ad Christianorum Unitatem Fovendam (Directory for the Application of Principles and Norms on Ecumenism) IV B 102 – Sharing Spiritual Activities and Resources,
[4] Article 282 Book VI, Philippine Labor Code – Termination of Employer
[5] Defined as the movement toward unity or cooperation among the Christian churches - Britannica
[6] Also known as religious diversity which states that there exist significant differences of opinion among individuals who seem to be equally knowledgeable and sincere. individuals who apparently
Efforts to advance and uphold non-discrimination and equality in employment and occupation have been a major struggle for workers in order to achieve impartiality in aspects whereby personal as well professional qualifications are put into reservation. The abovementioned dilemma that companies are faced with is not something uncommon as this has been an enduring characteristic of labor markets across countries (Tomei, 2003). Managing diversity in the workplace through company policies and programs leads (at the very least) to tolerance and acceptance of differences amongst individuals within the organization.
Company Z is a European owned and managed Web Services Company operating in the
It could be viewed that articulation of non-discrimination and equality is unnecessary as the organization has been liberal in accepting various individuals having different personal characteristics such as sexual category and sexual orientation. In hind sight this is fairly equitable. However, by means of actuality, non-articulation in any form does not mean approval of such matter. It could be a case of just being apathetic since it would not affect the operations of the business or restrained in view of the fact that discriminative actions could lead to violation of several labor and employment policies and laws which could bring about several negative implications to the company.
Non-articulation does not eliminate bigotry in any way within the organization. Thus, protection against discrimination in the workplace should be enforced (or reinforced) to safeguard individuals from probable adverse consequences that may arise from it. Companies fail to notice the benefits that they could get by implementing and promoting non-discrimination and equality in the organization. Administrating and harboring diversity at work leads to effective workforce management which in turn results to effective and efficient business operations. It does not only foster a good working environment for the welfare of its workers but also provides a stable groundwork for the business to thrive since workers are the chief elements of running the business. Workers play a major role for both the successes and failures of the business. Investing on equality of treatment and opportunity through equal remuneration (compensation and benefits) as well as general undertakings and conduct within the organization would provide an excellent avenue for growth and development for both the individual and the organization.
The correlation that exists between the employee and employer constitutes the institutional view of an employment relationship. This general view is to some extent problematic as the provisions of employment are not categorically defined. Examining the structure together with the provisions of the individual’s employment provides a better understanding as to what determines an employment relationship. This would aid to address the issues concerning protection, compliance and violations of labor standards as well as to facilitate and promote the appropriate working conditions for both workers and employers.[1]
The employment relationship is outlined within the limitations imposed by both labor and product markets. It is in the exchange between the value of labor and performance of the individual or the worker. Moreover, it is formed within the permanent system of negotiations in view of the fact that a formal contract of employment cannot be expected to characterize the relationship between the specifics of value and performance and that control on cost necessitates repeated emphasis and realization. It is deemed as the exchange between time, qualification and wages which takes place between the employer and employee during the labor process.[2]
In order to establish the existence of the abovementioned relationship it should suffice the elements of selection and engagement of the employee in the organization, payment of wages, the power of dismissal and the employer’s power to control the employee’s conduct. The most essential factor is the employer’s power to manage and control the conduct of the individual, this is not only deemed as the consequence of tasks to be delivered but it provides the means and methods to furnish work undertakings.[3] The subject of identifying the existence of an employment relationship is mainly to establish an appropriate mechanism in order to provide effective measures of protection and prevention of maltreatment and exploitation of workers within the context that constitutes such relationship.
Society has never been forbearing in terms of gender particularly in employment and equality of work opportunities. Institutions have prearranged standards and established tasks and functions wherein the abovementioned facets of work have been classified and segregated on the account of the individual’s sexual category. There have been numerous efforts of pushing gender sensitivity in employment opportunity and occupation. The creation and ratification of both local and international labor laws and policies seek to provide equal opportunity and shun discriminatory undertakings in both pre and full employment. However, it fell short of substance as they were never really effusively exercised.
Several provisions on both the Philippine Constitution and the Philippine Labor Code outlined the recognition, full protection and support of anti-discrimination in work and employment opportunities.[1] Furthermore, the International Labor Organization has set sight on the promotion of equality of opportunity and treatment by declaring and pursuing a national policy aimed at eliminating all forms of discrimination In respect of employment and occupation.[2] These necessitate that the state would make certain that the fundamental equality between individuals regardless of differences (physical, socio-economic and political relations) are observed and performed in the field of employment and occupation.
In spite of these, laws and policies concerning work opportunity and protection do not fully regulate employers in the selection of its workers and execution of work processes and functions assigned to the individual. To a certain extent it could be seen as if society and its institutions have accepted that preference in gender is not a barrier in the execution of occupational functions. The study conducted by Hector Morada and Lani Santos on sex discrimination in job advertisements in the Philippines reveal that within the period of 1975 to 1995 there has been decreasing figures in pre-employment sex discrimination . However, it did not signify that sex discrimination has declined or has been eliminated. A number of occupations exhibited persistence in eliminating discriminatory advertisements to avoid gender partiality while others display reversals in sex preferred by employers. [3]
We should not discard the fact that the individual is the principal component of any associations that could be instituted within the state. Establishment of these institutions would not be viable without optimizing the potential derived from each individual regardless of gender. With the current protection to labor and support in full employment and equality of employment opportunities, it still remains to be seen how far it would proceed and progress. Unless society and its institutions fully recognize that gender is not a factor that could encumber the functionality and performance in work, the essentials of the so called work equality could be deemed as distant from the ideal.
[1] Article 2 Section 14, Article 3 Section 1, Article 13 Section 3 of the 1987 Philippine Constitution, and
[2] International Labor Organization (ILO), Convention No. 111 – Convention Concerning Discrimination in
[3] Morada H. and
