A RESEARCH PROPOSALPRESENTED TOTHE SCHOOL OF LABOR AND INDUSTRIAL RELATIONS OF THE UNIVERSITY OF THE PHILIPPINES ( UP-SOLAIR), DILIMAN, QUEZON CITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS IN IR 299(RESEARCH METHODS IN INDUSTRIAL RELATIONS) The Impact of Employee Relations in a Non-Union Organization: The Case of National Grid Corporation of the Philippines

By: Jose Lorenzo V. Anacay2013-78053

SUBMITTED TODR. ROHNALEE A. ASUNCIONPROFESSOR

SUBMITTED ON MAY 30, 2015

Abstract

This research proposal tackles the impact of the Employee Relations (ER) of the Human Resources as the voice and representative for the employees in the organization. Voice, in the sense it reasons out to the management the concerns of the employees, Representation in the sense that the their development, engagement, labor relations that are embodied by the ER, in the same way that in a unionized organization, employee voice and representation is spearheaded by the respective Union.

The organization that is mentioned here will be the National Grid Corporation of the Philippines (NGCP). NGCP is a private organization, which is part of the Power Industry in the Philippines that provides Power Transmission to the Philippine Archipelago. Before NGCP had the function of Power Transmission, the National Power Corporation (NAPOCOR) handled the generation and transmission of power in country. Until in 2001, when the Hon. Gloria M. Arroyo signed the Energy Power Industry Reform Act or EPIRA (R.A. 9136) into law, it gave birth to the sister corporation of NAPOCOR, which is the National Transmission Corporation (TRANSCO) in 2003. The function of the generation of power stayed in NAPOCOR and the transmission of power went to TRANSCO. R.A. 9136 also mandated the privatization NAPOCORs transmission facilities, real estate properties, disposable assets and power supply contracts. The assets that are for sale was determined by the Power Sector Assets and Liabilities Management (PSALM), in which in a consortium of the State Grid Corporation of China, Monte Oro Grid, and Calaca High Power Corporation won the open bid, and later became the National Corporation of the Philippines.

Republic Act 9511, which came from the EPIRA law, gave NGCP the franchise to operate, manage, and expand the electric transmission business of the country. It authorizes NGCP to handle the transmission grid for 25 years, renewable for another 25 years. The franchise only covers the operations and management of the transmission facilities but the assets will remain in the Philippine Government through TRANSCO.

Definition of Terms

1. Employee Relations - Involves the body of work concerned with maintaining employer-employee relationships that contribute to satisfactory productivity, motivation, and morale.

2. Employee - a person who is hired to work for another or for a business, firm, etc, in return for payment.

3. EPIRA (R.A. 9136) A law which states the decrease electricity rates and to improve the delivery of power supply to end-users by encouraging greater competition and efficiency in the electricity industry.

4. Management - The person or persons who control or direct a business or other enterprise.

5. Non Union Organization - Non-union workers do not belong to a trade union or labor union. A non-union company or organization does not employ workers who belong to a trade union or labor union.

6. National Power Corporation (NAPOCOR) - Created under Commonwealth Act No. 120 on November 3, 1936 as a non-stock government corporation. In 1960, NPC was converted into a stock corporation wholly owned by the government under Republic Act 2641.

7. National Transmission Corporation (TRANSCO) Is a government agency created under Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA) of 2001.

8. National Grid Corporation of the Philippines A private corporation with the task of delivering safe and reliable electricity throughout the archipelago. It is a consortium of Monte Oro Grid Resources Corporation, Calaca High Power Corporation, and State Grid Corporation of China won the franchise to operate, maintain, and further expand the power grid in the biggest government auction conducted in efforts to reform the local power sector

9. Privatization - The process of transferring an enterprise or industry from the public sector to the private sector. The public sector is the part of the economic system that is run by government agencies.

10. Union - an organized association of workers formed to protect and further their rights and interests.

I. Introduction

Background of the Study

This study focuses on the Impact of Employee Relations (ER) of the Human Resource in a non-union organization in the case of the National Grid Corporation of the Philippines. The Employee Relations is an area of the Human Resources that function in the communication of the management and the employees, implements corrective & disciplinary actions, and explanation of company policies and procedures of the company. Being a non-union organization, employees look to where their grievances can be heard and take into account by the management. Employees of NGCP see the Employee Relations Division of the Human Resources Department as a facilitator in bridging the needs and expectations towards the management. Management also sees ER as the pivotal element to communicate their plans for the organization.

Statement of the Problem

How will the Employee Relations Division affect the perception of the employees about NGCP being a non-union organization?

Why does the Management of NGCP prefer a non-union organization?

How will the initiatives of the Employee Relations Division influence the different divisions of the Human Resource Department of NGCP?

Objectives of the Study

To know the impact of Employee Relations in a non union organization.

To know the strategies Management of NGCP persuades its employees that union representation is non-essential to the organization.

Significance of the Study

This study will be of great significance to organizations with a non-union representative and thus, turn to Employee Relations of the Human Resources Department as catalyst to voice out their concerns regarding the treatment and rights given to them by the management. The area of Employee Relations in the Human Resource Department of NGCP encompasses building employee commitment to the organization, thereby achieving the business goals and at the same time, serves as Mediator and Arbitrator in times of conflicts between the employees and the management. Moreover, this study will look into the advantages of the Employee Relations, and their function as a Voice for the organization. This study will also investigate and study what are the techniques that the NGCP management undertake in order to persuade its employees indirectly that a union representation is non-essential to the business.

A. Scope and Delimitations of the Study

The Scope of this study encompasses the function of the Employee Relations Division of the National Grid Corporation of the Philippines (NGCP). NGCP being a non-union organization looks to the Employee Relations as the bridge towards the communication of the management to its employees. The two functions of the Employee Relations Division are Employee Engagement and Labor Relations. Employee Engagement deals with the events that will enable employee development and participation, while Labor Relations deals with the administrative cases of employees, upholding of company policies & procedures, and maintaining the relations between management and employees. It also looks into the effect of these activities to the direction of the Human Resources Department and Management of NGCP in being a non-union organization The Delimitations of this study are the activities, employee surveys that were used by the Employee Relations Division to extract feedback from the employees of NGCP, as well as present interviews from the management of the organization.

II. Review of Related Literature

According to the article Employee Engagement: A leadership priority, A leadership priority is emerging how to improve employee engagement within companies: There have been disquieting developments in recent times. All over the world, good employee policies exist in the manuals. However, the management capability to engage with the workforce and to implement the policies humanely is under pressure. (R. Gopalakerishan, December 7, 2009).

Based on the article The Essentials of a Healthy Employer Employee Relationship An employers relationship with their employees has to be nurtured and taken care of in order to be beneficial for both individuals; their co-workers, and the company as a whole. It has long been noted that strong employer-employee relationships often lead to greater employee happiness and significantly improved productivity.

Many typical employer-employee relationships will vary on the scale of closeness and familiarity, but it is essential that all employer-employee relationships involve at least these five major characteristics.

1. Mutual respectIts perfectly fine to instigate a closer relationship with your employees to the point of socializing with them outside of work. (This is particularly common in smaller businesses and start-ups).But even in a relaxed workplace, it is crucial to retain the traditional hierarchal structure and encourage awareness of this in your employees. As a leader, you need to be ready to give your team honest and frank feedback, whether this is about projects, employee appraisals, or constructive criticism.

Romantic relationships in the workplace are always a bad idea, but you should also bear in mind that these relationships can have an effect on the workplace even before they are public or common knowledge possibly without either party knowing it.

2. Mutual relianceThere should be a balanced amount of reliance on both employer and employee. The employer relies on the employee to do his or her job well for the benefit of the business; the employee relies on the employer to treat them fairly and pay them equitably. When this mutual reliance becomes imbalanced or one-way, problems will inevitably occur.

The employer may start to feel that the employees efforts are no longer instrumental to the company and view them as disposable, while the employee may no longer value their job and start to become disengaged. When either of these things happens, its time for the employer to reevaluate the employees role at the company whether a new agreement can be reached, or whether its time to part ways.

3. Openness & communicationAny healthy working environment involves openness and transparency. Employers can help create a forum of openness and honesty by asking employees candidly about their lives, families, and interests. Employees can, in return, contribute to this setting by being forthcoming about their lives outside of work.

Openness and communication is even more important for situations sensitive to the company, or that require an otherwise serious approach. For employees, this might mean informing their boss of a family emergency that could affect their performance, or a desire to find a new job. When it comes to the latter, employers shouldnt deter their employees from leaving, but should be understanding and supportive of their natural want to progress.

Meanwhile, employers should keep their employees in the loop about business matters and seek their input in important company decisions. Not allowing your employees to have an active role in the growth of the company not only wastes valuable insight and energy, but may also encourage them to become disengaged.

4. Support (and nurturing)Employers should want their employees to reach their full potential and recognize when their capabilities exceed their current role. Leaving natural abilities to stagnate will cause boredom and frustration to grow in the employee, and as mentioned earlier, waste valuable energy that could better help the team.

Draw up your ideal business structure, or your current business structure as it is now, and outline every role and position that is necessary for it to work effectively. Not only will this enable you to identify gaps in your current team, it will also encourage you to take stock of who is performing well and who might be better off in a role with more authority.

Supporting employees even extends as far as helping them spread their wings and fly away to a new job when the time comes. Employers ought to be invested in their employees success as a whole and understand that they may not be at the company forever.Employers have the option to help employees or to stifle them but only the former will lead to trust, higher skill levels, more productivity and more motivation.

On the other hand, employees should be willing to show support for the companys welfare and progress, which may mean making sacrifices from time to time. Whether its working late to fix an unexpected problem, or covering somebody elses duties as well as their own, employees need to be ready to show that they are invested in the success of the company.

5. Gratitude

Gratitude should exist on both sides of the relationship, but it is probably a larger responsibility of the employer to recognize and appreciate exceptional effort from their employees. When employees consistently deliver and receive little or no appreciation, it can become very easy for them to become disheartened, frustrated, and apathetic about their job, which destroys productivity.

A simple thank you is often enough (and this works both ways), but employers may wish to actively reward their employees for truly great work. They should use their intuition and knowledge of the person to decide what this might be.

In some cases a discreet gift might be enough, while others might relish recognition in the office. Some companies even host annual awards ceremonies where outstanding employees are given public recognition for their achievements. Overall, gratitude and recognition help to ensure that employees know they are valued and that good actions and efforts are repeated. (Adele Halsall, May 23, 2014)

According to the article The Changing Employer-Employee Relationship Employers need to communicate tirelessly and strive for transparency. It may be all they have to offer employees in such resource-constrained times. Unfortunately, some employers are resorting to fear-based tactics in an effort to reinforce employee engagement. In the short run employees may respond to such heavy-handed approaches, but such a practice is not likely to be sustainable.

The first recommendation is that employers work diligently to create a "no surprises" environment. In managing this way, they build employee perceptions of the company's trustworthiness. Doing what is planned when it is planned creates trust.

A second recommendation is to work to find out and then to protect what really matters to employees. There will be elements of work that truly are cherishedand they may be surprising. In one instance, a headquarters cut a fairly inexpensive perkafternoon cookies in the break room. The impact on morale was so strongly negative that one executive commented the "cookies were the costliest savings we ever achieved."

The third recommendation is to be certain you fully understand how the cuts and other changes being made around the workplace affect each employee's ability to do his job well. If tools, full-time employees, and other resources are being more carefully managed (as they should be), make sure first that employees' capabilities to perform are not threatened. Make adjustments as needed, such as ensuring that there is enough time available to complete work, so that the employee doesn't lose confidence that he or she can deliver to the company's expectations. (Benett, Miles, N. Benett, March 31, 2009)

Based on the article, How Top Non-Union Companies Manage Employees the author set of nine common attributes, policies, and attitudes among large nonunion companies against which the managers of nonunion as well as unionized corporations can measure the effectiveness of their own personnel practices.

1. A Sense of Caring

First and perhaps foremost, many of the founders of the nonunion companies in my sample held fiercely egalitarian views about treatment of employees. Today, many of the customary symbols of corporate rank and status are absent. In many of the companies, everyone from vice president to sweeper has access to the same parking spaces, receives identical medical benefits, and eats in the same cafeteria. Frequently, executive offices are Spartan or even nonexistent. Employees at all levels call each other by their first names.

2. Carefully Considered Surroundings

Several situational factors are also important both in fostering an effective personnel program and in encouraging a climate of trust and confidence. These factors include, among others, plant location and size and the handling of sensitive work and particular employee groups.

Determining location & size. The companies I studied consider carefully effects on employees and the chances of remaining nonunion when they select sites for new plants. Among the criteria used by one company are the quality of the public schools and the proximity to a universityas well as the areas attitude toward unions.

A personnel vice president at another company reported why a certain city would not be a good place to construct a blue-collar, production-type plant: That city is sixth among the top 50 cities in the United States in downtime due to strikes, jurisdictional disputes, and other, related union conflicts. Moreover, there are more EEO charges in that city than in all but two other major cities. It is third in the number of fair employment practice cases and unfair labor practice charges. The city has several militant and aggressive unions.Not only do many of the companies carefully choose rural or suburban plant sites, but they frequently limit the size of their facilitiesbetween 200 and 1,200 employeesto promote personal and responsive employee relations. In the words of one personnel director, We like to keep our plants small. We dont want them to grow larger than 200 employees. Beyond that size, both management and personnel lose personal contact with the employee.

Taking care with traditionally union work. Many of the companies studied are also careful about how they handle sensitive workwork that unionized employees often do. Some companies subcontract sensitive or strategic jobs. One company, for example, subcontracts its printing work, while many of its unionized competitors do their own printing. Sometimes sensitive jobs are done in-house but by the unionized employees of a subcontractor.The idea is to make an organizing drive less likely. If a companys own nonunion employees do sensitive work, management usually pays close attention to their working conditions and wages, attempting to ensure that their treatment is equal to or better than that of comparable unionized personnel.

3. High Profits, Fast Growth, & Family Ties

Certain financial and ownership characteristics seem to have an important bearing on personnel policies. Most of the companies studied are profitablesome, extremely so. Many are high technology growth businesses, have dominant market positions, and are leaders in their industries. Growth enables them to offer many promotion opportunities, provide full employment, and make profit sharing pay off. more

Another important company characteristic is close ties between ownership and management. Two of the companies in my sample are privately owned, and members of the founding family are still active in management. In several of the public companies, a significant percentage of the stock is owned by one or more families, whose members remain active in top management. Thus, management is pushed to endorse the ideals of the founders and owners.

I should emphasize that no company studied displays all these attributes. Nor are these factors a sine qua non for achieving the desired organizational climate. They can even get in the way. For instance, while rapid growth provides many promotion opportunities, it also sometimes leads to such problems as communication difficulties and cramped quarters.

4. Employment Security

Many of these companies attempt to minimize workers usual nagging uncertainty regarding future employment. Several of the companies use various techniques to ensure full or nearly full employment.

During its early years, for example, Hewlett-Packard rejected large government contracts that would have created huge fluctuations in work load, forcing the company often to lay off and then rehire people. Moreover, during the 1970 recession, Hewlett-Packard cut everyones pay and work time 10% for a six-month period rather than lay anybody off. The pay cut applied to everyone, from chairman of the board to assembly-line worker, as did the practice of not working every other Friday.

Other methods of weathering peaks and troughs in the work load include hiring freezes and the use of temporary or retired workers. This latter method, of course, simply transfers unemployment from the permanent labor force to part-time and temporary workers. Some companies prefer to devote periods of overstaffing to building up their inventories. Others encourage employees to take voluntary leaves of absencethus guaranteeing continued employment.

Permitting employees to bank their vacation time can also ensure some flexibility in lean times. Work sharing is another way in which some companies avoid or minimize layoffs. Some companies that experience seasonal work loads hire their own retired or former workers during the peaks.

To some extent, one companys full-employment practice becomes its subcontractors unemployment problem. At one company studied, part of the full-employment strategy is to use subcontractors to help absorb necessary production cutbacks. During tight periods, such subcontracting is curtailed or eliminated.

Although companies that provide employment security boast of the flexibility gained from their nonunion status, they of course lose the option to lay workers off in response to changed business conditions.

The Exhibit catalogs the costs and benefits of avoiding layoffs. As it indicates, the costs can be significant. Yet the benefits of employment security cannot be overestimated. Eliminating workers fears about layoffs can be a cornerstone of effective employee relations.

Exhibit Costs and Benefits of a Full-employment PolicyIf layoffs become necessary nonetheless, management must implement a system that is perceived as equitable. The companies in my sample that do not practice full employment rely nearly exclusively on the principle of seniority. They also attempt, through a variety of means, to delay layoffs and cushion their impact. Curiously, none of these companies uses a supplemental unemployment plan.

A point to remember about full-employment practices: they always require effectively coordinating manpower planning and business planning. If a company has a policy of no layoffs, personnel people and line managers must cooperate when formulating strategies.5. Promotion from Within

A policy of promoting from withinaccompanied by training, education, career counseling, and (frequently) job postingis most attractive when a companys growth rate opens up many advancement opportunities. When computerized operations were expanded at one company, it chose to train current employees to be programmers instead of hiring qualified applicants. The training opportunities were simply posted, and interested employees who bid and passed the aptitude tests were trained to be computer programmers on company time and at company expense.

Like employment security, such efforts go a long way in building employee loyalty. Indeed, two-thirds of the companies in my sample have institutionalized the principle of promotion from within by routinely posting job openings. Some companies even provide plant workers extensive training and education so they can move into white-collar positions.

Promotion of insiders to good jobs gets attention from company employees. Up-from-the-ranks supervisors who have benefited from such a policy have reason to be loyal and enthusiastic. Indeed, their attitude may contribute to the higher rates of productivity that many of these companies claim.

Promotion from within also helps a company maintain a consistent philosophy as the organization grows larger. Homegrown managers know and respect the companys values and traditions. Unlike newcomers, veteran managers know many employees personally and are familiar with several different jobs and operations. They also serve as excellent role models for employees wishing to follow in their tracks. But remember: extensive reliance on promotion from within requires reliable initial hiring practices and good career development programs.

6. Influential Personnel Departments

Not only are the personnel departments of the companies studied usually extremely centralized, they also have access to and in many cases are part of top management. More than half of the personnel vice presidents I interviewed report directly to the presidents of their companies. At a few of these companies, the head of personnel is a member of the board of directors.

The personnel departments of the companies studied are well staffed. Many have at least one professional person per 100 employees. Many also devote much attention to training and encouraging personnel people. At one predominantly nonunion company, trainees in employee relations get experience in a union plant, a nonunion plant, and finally in a corporate staff assignment. One company employs a staff person whose sole function is to help plan the career paths of the companys personnel people.

One reason for the influence of the personnel departments at the companies I studied is that line managers competence is measured partly in terms of employee relations. When a department manager is accountable for the results of an employee attitude survey or the number of complaints filed by his or her subordinates, the expert advice of the personnel department suddenly takes on relevance.

7. Competitive Pay & Benefits

As might be expected, the 26 companies in my sample work hard to ensure that employees perceive their pay and benefits policies as equitable. All of them, therefore, compensate their employees at least as well as their unionized competitors do. The companies studied thus pay well by both industry and community standards. The nonunion companies watch carefully the union settlements of competitors.

Also, the nonunion businesses make careful and thorough attempts to communicate with workers about their pay increases and benefit improvements. Few of the companies studied will likely ever be vulnerable to a union drive on the basis of either benefits or pay.These companies also give particular attention to making their benefits visible. One company, for example, presents an annual slide show at each local office comparing its benefits with those of its organized competitors. Black & Decker personnel and benefits professionals present all major benefit changes in-group meetings. They not only tell managers and supervisors about the changes beforehand, but personnel staffers also provide them with answers to possible questions from employees.

Some nonunion companies argue that what might appear to be very generous provisions are highly cost effective. For instance, the medical facilities for employees at some companies seem lavish. Polaroid, for one, has on call its own orthopedists, dermatologists, and other specialistsin company facilities. Polaroid managers argue that this is much less expensive than medical insurance payments. Furthermore, employees spend less time away from work when medical professionals come to them.

Many nonunion companies also place heavy emphasis on merit increases, which either substitute for or supplement across-the-board pay increases. According to its proponents, such pay systems can serve as an incentive and will encourage greater work effort.

In the same spirit, many of the companies studied pay blue-collar workers salaries instead of hourly wages. About half of the companies have no hourly employees at all. The practice of bestowing the status of a salary on blue-collar workers represents another attempt to eliminate the we-they distinction between management and labor or between office and plant personnel.

The allowances for illness or personal business included in salaries impart respect and responsibility to the worker that are absent when labor is rewarded strictly by the time clock. Besides being consistent with the principle of equal treatment, salary plans differentiate the employee in status from his or her friends at other companies in the same industry or community.

Other common forms of supplementary compensation include profit sharing, company-matched savings and investment plans, and employee stock purchase plans. Profit sharing and stock ownership can also help employees to identify with the company, motivate them to work for its success, and further their understanding of the economics of the business.

Such programs often distinguish large nonunion companies from comparable organized corporations in the eyes of employees. For example, unionized employees at AT&T and General Motors were allowed to participate in their companies savings and investment plans only two years ago, long after workers in many of the 26 companies I studied were offered that perquisite.

8. Managements that Listen

The companies studied use a variety of mechanisms to learn employees views on various matters. Attitude surveys take the temperature of the organization and expose developing employee concerns. Some companies regularly conduct sensing sessions, or random interviews to understand employees sentiments.

A number of these companies exclude supervisors from the upward communication process, so employees feel freer to speak out. For example, one company keeps its local managers out of its annual benefits presentations, which include a suggestion, complaint, and discussion session.

These managers now conduct their own regular meetings with employees, in turn excluding the foremen and supervisors. In this way, management believes, it can forestall serious labor problems on the local level. Supervisors are also encouraged by this system to resolve employee problems quickly, because they may fear higher-level investigations or complaints to higher management that reflect negatively on them.

Speak-out programs, which allow employees anonymously written inquiries to be answered by management, are another common communication device. According to executives of companies that use speak-out programs, 5% to 10% of their employees submit a question at least once a year.

Like other communication programs, speak-outs can backfire if handled gracelessly. At one company, a hardworking technician wrote to inquire why parking at the plant was not on a first-come, first-served basis. This man arrived early every morning, parked his car, and then walked one-quarter of a mile across an empty management parking lot. His letter was answered by a low-level official, who suggested that managers have a divine right to convenient parking.

The dominant grievance procedure in the companies studied is the open-door policy. However, two companies have (and pay for) formal arbitration programs for certain grievances that cant be otherwise resolved. Two other corporations have appeals boards to which employees can take their grievances. One of the boards includes hourly employees and makes recommendations to the president. The other, which consists of managers, is a decision-making body.

Discussions with representatives of several nonunion companies have convinced me that open-door policies whose reviews and investigations are formal and rigorous can be effective. The office of the chairman of one company usually receives several hundred open-door complaints a year. Investigators working out of the chairmans office follow up on these complaints under an exacting timetable. Because managers usually settle in advance those cases in which the employee is obviously right, the cases that reach the chairmans office tend to be those in which management is right; thus, about three-fourths of the decisions support managers and about one-fourth back employees.

Top managements reactions to complaints demonstrate to lower-level management and employees alike whether the higher echelons care about the way employees are treated. When top management wants the decisions to be fair and is willing to investigate and review lower-level decisions, its credibility is enhanced.

The principal value of the formal complaint procedure seems to be the encouragement it gives to managers and supervisors to resolve employee problems before they become formal complaints. Management in a nonunion environment should not expect a formal grievance procedure to be used frequently; nor should such a procedure be relied on as a primary feedback device.

However, in my view, a nonunion company today should not be without some kind of formal complaint procedure. This is especially so in todays environment because employees who feel discriminated against because of race, sex, or age or who think their work area is unsafe can take complaints to an outside agency for investigation. Wise executives prefer to respond to complaints through their own mechanisms rather than deal with requirements set by a government agency.

9. Careful Grooming of Managers

Managers in these companies know that effective management of people is an important part of their jobs. Many of the companies studied avoid bonuses that reward short-term performance. Instead, they emphasize long-term results, including successful employee relations. They use stock options or other incentives associated with longer-term company success.

Thus, the selection of managers is a carefully considered procedure. Some nonunion companies use a series of panel interviews to evaluate potential managers instead of the traditional process whereby the boss picks his or her favorite for a promotion. Other companies send managerial candidates to assessment centers for a series of rigorous and imaginative tests that assess their ability to identify priorities and subdue crises in the managerial ranks.

At the lower levels of the organization, considerable resources are devoted to supervisory training. The supervisors, after all, deal with employees on a day-to-day basis, while top management has only occasional contact with them.

As a consequence of such training and reward systems, managers at all levels are keenly aware of the importance of good employee relations. Results of surveys are viewed as indicators of managerial competence. In many companies, managers believed that a stigma would be attached to their careers if their units had union-organizing drives or major personnel problems.

People who demonstrate that they can manage well within the ethic of the organization are promoted, said a general manager of one company. At another company, performance is evaluated in terms of both competence and relationships.

Because top managements personnel concerns often focus on the lowest-level employees, the supervisor may have the most difficult role of all in these nonunion companies. In some cases, the preoccupation of the founder with the welfare and security of the hourly workers appears to have depreciated the role of the supervisors, who may feel less secure than those they supervise. If supervisors come to feel insecure and experience too much anxiety, of course, the long-run health of the organization can suffer. Some of the nonunion companies have therefore begun tracking the feelings of supervisors through attitude surveys and other means.

III. Study Framework

A. Theoretical Framework

Two-Factor Theory by Frederick Herzberg

This theory represents the factors drives employees from being dissatisfied and satisfied in terms of their job in the organization. According to Mr. Herzberg, Hygiene Factors such as Job Security, Salary, Insurances, and Benefits are maintenance factors, which are compliance of the laws of the country and the company policies. On the other hand, Motivators are intrinsic factors which give a positive reinforcement on the job they perform. This is where management recognizes their value as assets, in effect, it gives the employee a feeling of belongingness to the organization, and that they are able to contribute to the objective of the management.

MotivatorsHygiene Factors

B. Conceptual Framework

This Conceptual Framework represents the strategies of the Employee Relations in terms of addressing the Dissatisfiers of the employees in NGCP. The researcher will gather the information through the resignation letters and interview forms through the Organization and Recruitment Division of NGCP. The researcher will also look into the results of the previous Human Resource and Organizational Climate Study survey forms from the years 2010-2014.

The following Dissatifiers were gathered by the researcher through interviewing of NGCP employees who have been previously employed by TRANSCO and NAPOCOR before.

Salaries & Benefits Package

Before, the employees of NGCP that came from two government corporations (NAPOCOR and TRANSCO) experienced significant number of benefits that were given by both the Management of TRANSCO and NAPOCOR such as: Three Month Pay, Christmas Bonus Pay, Anniversary Pay, Rice & Clothing Allowance, Car & Educational Loan, and Medical Allowance. Since transitioning to NGCP in 2009, there was great amount of comparison between the public and private entities, to which the employees of NGCP expected more out of the management.

Career Opportunities

After gaining work experience and training from the organization, most employees from the Operations and Maintenance and Engineering Department of NGCP leave the organization because of better career opportunities abroad. Since NGCPs workforce consists of senior age individuals, promotion is dependent on the positions vacated.

CommitmentEngagementFulfillment

Employee RetentionResignation of Employees

Two Factor Theory

Hygiene Factor / Job Dissatisfaction

Salaries & Benefits Package Career opportunities

Motivators / Job Satisfaction Events and Programs of the Employee Relations Division Job Challenge and Growth

In terms of Job Satisfaction in NGCP, the following Motivators were gathered based on interviews with NGCP employees, and programs that are approved by the management.

Events and Employee Programs of the Employee Relations Division

Annual Management Employee convocations are essential elements of Motivators because it entails communication between the management and employees. This is where employees are given recognitions based on their performance and contributions to the organization.

NGCP Sports Competition Besides competencies and growth in the respective departments, NGCP also recognizes talents regarding physical activities that would build up the camaraderie, trust, communication, and the breaking barriers between the ranks of the employees in the organization.

Job Challenge and Growth

NGCP Working Group Committee - the Employee Relations Division recommend to the NGCP Management the creation and approval of working group committees in various events in the organization such as: Task Force Yolanda, Task Force Ruby, and Task Force Ondoy. These working group committees are formed by NGCP employees from various departments from the Head Office to the Regional Offices of North, South, Visayas and Mindanao. Since most of the working group committees formed are related for natural disaster operations, NGCP employees will have the chance to render service in restoring electricity and providing basic necessities to those greatly affected by natural calamities across the country.

NGCP Employee Cooperative, Inc. (NEMCO) The Employee Relations Division recommended to the NGCP Management created its own cooperative for financial assistance to its employees. This also gives the employees to be part of the management of NEMCO, whereby they hold positions from being the Chairman, Vice President, Secretary, Treasurer and Auditor through elections of fellow NGCP employees.

NGCP Armed Forces of the Philippines (AFP) Reservist Personnel In collaboration with the Management, Employee Relations Division, and Security Department, employees from the North, South, Head Office, Visayas, and Mindanao will be part of the ranked reservist personnel of the AFP, which they will be required to render services in times of exigency.

C. Operational Framework

Figure 1

Hygiene Factors

Salaries & Benefits Package Career Opportunities

Figure 3

Employee Relations Division

Job Challenge and Growth

Events and Programs

Figure 4

Motivators

Employee Involvement

Recognition

Opportunity to do something meaningful

Challenging work

g

Figure 2

Human Resource Department and Organizational Climate Survey

HR Roadshows

Employee Performance Feedback System (EPFS)

Employees are Engaged, Satisfied, and Fulfilled

The figure above shows the operational framework of NGCP. Figure 1 pertains to the Hygiene Factors such as Salaries and Career Opportunities are seen as Maintenance Factors of the organization. Most senior employees of NGCP that have been part of the TRANSCO and NAPOCOR era, are accustomed to scheme of the grant of compensation and benefits package provided by the former employers. Since coming to NGCP, these employees expected more from the organization in terms of monetary allowances, leave credits monetization, financial assistance program and insurances. The second item pertains to possible career advancements in the organization. Employee turnover of employees who are assigned in the core functions such as the Operations and Maintenance and Engineering Department greatly impact the manpower level of NGCP in operating the transmission towers and substations across the Philippine Archipelago. Foreign energy organizations pirate these employees, and offer a more competitive compensation & benefits package and positions to them.

Figure 2 pertains on how the Employee Relations Division will reach out to the employees, to know what programs and events are suited well to develop employee development to the organization. The first and second item concerns the creation and distribution of survey forms to the customers of the Human Resource Department of NGCP across the country and the HR, as a whole, travel to these offices to interact with these employees. By this, the Employee Relations Divisions will be able to identify what are the expectations in terms of services and programs of the employees from and the management. The third item, EPFS, concerns the key result areas and performance evaluation of NGCP. By this, the Employee Relations Division, in coordination with the respective managers and supervisors of the employees, will be able indicate what type of trainings are needed by the employees.

Figure 3 represents the initiatives of the Employee Relations Division in relation to the instruments mentioned in Figure 2. The first item, Job Challenge and Growth speaks of positions that these employees can apply and be part of, besides their usual function in their departments. By this, employees are involved and be part of the decision making process of the operations of these organizations. The second item, Events and Programs pertain to the open communication between the management and employees. This is where recognition of the employees, who performed well in the organization, is given distinctions by the management. By that, employees felt a sense of purpose and engagement towards NGCP.

The Employee Relations Division of the Human Resources Department of NGCP plays a big role in addressing the concerns of the employees to the management. Because NGCP is a non union organization, employees look for a venue to channel and express their sentiments. The Employee Relations Division reaches out these employees to let them know that the Human Resources Department is helping them communicate to the management.

The management of NGCP favors more a non union organization through the creation of the Employee Relations Division, and that having a union entails more of a structured approach for the employees. By having a group that is familiar with the employees of the organization, it enables the both sides to express freely their initiatives and expectations as to the mission of the organization. Management approves these programs and events of the Employee Relations Division because they want to let the employees feel that they are most valuable assets of the organization. Recognition and Growth are two indispensable elements in an organization which that effect on employees will motivate them to work better.

IV. Research Methodology

Research Design and Data Gathering Instrument

The researcher will utilize the interview method and survey analysis to produce narrative reports on both the employees and management of NGCP. For the employees perspective, the researcher will examine the answers of the employees in the HRD Customer and Organizational Climate Survey Form as to what improvements needed to be done in the organization in terms of engagement of employees. For the managements perspective, schedule interviews with the Henry T. Sy, Jr., President and CEO, Hon. Roque F. Corpuz, NGCP Consultant, and Dir. Anthony L. Almeda, Chief Administrative Officer. The researcher will use audio recording to document the important details of the interview.

Schedule of Activities

By July 2015, the researcher will first draft memo addressed to the head of the Human Resources Department in pursuing to study the needed documents in the research. The researcher will allocate 1 month, starting August to September 2015 to examine and furnish the report on the HRD Customer and Organizational Climate Survey. The researcher will also interview rank and file employees of NGCP during the 1 month allocated period of analyzing the survey forms as to compliment the findings.

For the interview with the management of NGCP, the researcher will draft a memo addressed to the following: Henry T. Sy, Jr, Roque F. Corpuz, and Anthony L. Almeda by October 2015.

Budget

To cover the expenses, the researcher has allotted Php 5,000.00 for the printing, photocopying, and if possible, travelling to the different offices of NGCP in North, South, Visayas and Mindanao Region.

Bibliography

Books:

Hollinshead, G. Nicholls, P, Tailby, S. (2003) Employee Relations (Second ed.). Pearson Education.

Leat, M. (2007). Exploring Employee Relations (Second Edition ed.). Elsivier.

Websites

EPIRA (R. A. 9136) (Philippine Department of Energy Portal) https://www.doe.gov.ph/electric-power-statistics/199-energy-faqs/faqs-epira-ra9136/755-faqs-epira-ra9136

The National Transmission Corporation (TransCo) http://www.transco.ph

NGCP conducts AGOMA 2015 (NGCP) http://www.ngcp.ph

https://www.boundless.com/management/textbooks/boundless-management-textbook/organizational-behavior-5/employee-needs-and-motivation-46/herzberg-s-two-factor-theory-239-6609/

http://www.merriam-webster.com/dictionary/free

Articles Online

Gopalakerishan, R. (2009). Employee Engagement: A Leadership Priority. http://articles.economictimes.indiatimes.com/2009-12-07/news/27634237_1_employee-engagement-employee-policies-suicides

Hallsall, A. (20014). The Essentials of a Healthy Employer-Employee Relationship. http://www.tlnt.com/2014/05/23/the-essentials-of-a-healthy-employer-employee-relationship/ Bennett, N., Miles, S. (2009). The Changing Employer-Employee Relationship. http://www.businessweek.com/managing/content/mar2009/ca20090331_755178.htm

Foulkes, F. (1981). How Top Non-Union Companies Manage Employees

Appendices

Interview Guide Questionnaire

Good Day! I am Jose Lorenzo V. Anacay of the Human Resources Department - NGCP Head Office. As part of my course requirement at the School of Labor and Industrial Relations of UP Diliman, I am here to get your ideas regarding the why NGCP favors a non-union organization. Objective: The purpose of this interview questionnaire is to identify what are expectations of the employees of NGCP regarding the management and specifically the Employee Relations Division of the Human Resource Department as to the engagement of their employees to boost job satisfaction in the workplace.Name: Age: Position: Department

Interview Questions

1. What is your idea of the Employee Relations Division of the Human Resource Department?

2. What do you think are the elements that contribute to the job dissatisfaction of employees in NGCP?

3. What do you think should be the initiatives of the Employee Relations Division and the management to boost the job satisfaction of the employees of NGCP?

HRD Survey 2015 The objective of this HRD Survey Form is to identify the Job Satisfaction Level of the Employees of NGCP.Shade the circle that corresponds to your Functional Group

Office of the President and CEO Office of the Chief Finance Officer Office of the Chief Technical Officer Office of the Chief Administrative Officer

Shade the circle that corresponds to your department 27

HRD FINANCE and ACCOUNTING PAMGSD SECURITY O&M SO RRAD RTAD IAD ITD P&E

Shade the circle that corresponds to your level Rank and File Supervisorial Manager Executive

Strongly DisagreeSomewhat DisagreeNeither Agree nor DisagreeSomewhat AgreeStrongly Agree

I feel encouraged to come up with new and better ways of doing things.

My work gives me a feeling of personal accomplishment.

I have the tools and resources to do my job well.

The Company does an excellent job of keeping employees informed about matters affecting us.

I understand why it is so important for (Company name) to value diversity (to recognize and respect the value of differences in race, gender, age, etc.)

My job makes good use of my skills and abilities.

My supervisors manager visibly demonstrates a commitment to quality.

Senior managers visibly demonstrate a commitment to quality.

How satisfied are you with the information you receive from Management on what is going on in your division?

How satisfied are you with your involvement in decisions that affect your work?

How satisfied are you with your opportunity to get a better job in this company?