Organization and

Management

Training & Development,

Compensation and Performance
Appraisal
Quarter 2, Module 2
Organization and Management
Senior High School
Locally-Developed Module
Quarter 2-Module 2: Training & Development ,Compensation,
& Performance Appraisal
First Edition, 2020
All rights reserved. No part of this module may be reproduced or transmitted
to any form or by any means, electronic or mechanical, including
photocopying, recording, or by any information storage and retrieval system
without written permission from the publisher and authors.

Published by the Schools Division Office (SDO) Dagupan City

OIC, Schools Division Superintendent: Aguedo C. Fernandez
OIC, Asst Schools Division Superintendent: Ma. Criselda G. Ocang

Development Team of the Module

Writer: Jenny Vie P. De Guzman
Editor: Pina T. Cochangco
Reviewer: Pina T. Cochangco
Renata G. Rovillos
Layout Artist: Adrian Castro, Jr.
Cindy I C. Velasco
Management Team: Venus Maria SM. Estonilo
Maria Linda R. Ventenilla
Renata G. Rovillos
Cherry A. Cayabyab

Department of Education-SDO Dagupan City

Office Address: Burgos Street, Poblacion Oeste, Dagupan City
Telefax: (075) 515-6009
E-mail Address: dagupan.city@deped.gov.ph
TRAINING AND DEVELOPMENT, COMPENSATION AND
PERFROMANCE APPRAISAL
Both training and development are essential to achieve
success in today’s organizations. Managers must see to it that
their human resources have the necessary knowledge and
expertise.
Compensation/wages and performance evaluation are
related to each other because the employees’ excellent or poor
performance also determines the compensation given to them,.
In this module you will learn to:
 Recognize the different training programs (ABM_AOM11-IIa-
b-22), and
 Identify the policy guidelines on compensation/wages and
performance evaluation / appraisal.
(ABM_AOM11-IIa-b-22),

In doing this module, the

following are some reminders:
1. Take the pretest before
answering the module.
2. Read the instructions carefully
before doing each task.
3. Answer all the exercises.
4. Take the posttest.
5. Use a separate sheet in
answering all the activities.

1
A. TRUE OR FALSE:
DIRECTIONS: Write ‘true’ if the statement is correct, ‘false’
if the statement is incorrect.
1. ________ Seniority and merit pay are examples of incentive
payments.

2. ________ the main objective of training is learning.

3. ________ Development refers to the learning geared toward

the individual’s acquisition and expansion of his or her skills in
preparation for future job appointments.

4. _______ Feedback is learning through the explanation of

training goals and objectives by the trainers to the trainees.

5. _______ learning by giving training through either few, long

hours of training (distributed) or series of short hours of training
(massed).

6. _______ learning through the giving of frequent opportunities

to trainees to do their job tasks properly is called reinforcement.

7. _______ the important task of the compensation administration

is to attract, retain, and keep top talent with competitive
compensation within the budget of the organization.

8. _______ modeling is the use of personal behavior to

demonstrate the desired behavior or method to be learned.

9. _______ Workers’ salaries, incentive pays, bonuses, and

commissions are example of indirect compensation.

2
10. _______ Incentive payments includes paid time off, health
insurance, deferred incomes such as pension and profit sharing
programs, company cars, fitness club memberships, child care
services, and tuition fee reimbursement.

11. _______ Wage and Salary Add-ons includes cost-of-living

adjustments (or COLAs), overtime, holiday and other premium
wages, travel and apparel expenses and a host of related forms
of premiums and reimbursements.

12. ______ Performance evaluation method designed to find out if

the employee possesses important work characteristics such as
conscientiousness, creativity, emotional stability, and others is
called trait method.

13. _______ Performance appraisal method where each

characteristics to be evaluated is represented by a scale on
which the evaluator or rater indicates the degree to which an
employee possess that characteristic is called forced-choice
method.

14. _______ Performance appraisal tools are used to promote

employees for satisfactory performance and not to demote
employees for his inefficiency.

15. _______ Training employees is a win-win situation for both the

workers and the organization.

3
MATCHING TYPE
DIRECTIONS: Match column A to column B. Write letter of
your answer in the blank.
COLUMN A
COLUMN B
___ 1. applications are screened
A. Remuneration
out and suitable candidates ate
pick as per requirements B. Recruitment

____ 2. compensation provided C. Manpower Require-

monetarily to the employees ment

____ 3. shifting to different work D. Selection

units in the same organization E. Orientation
____ 4. movements of workers F. Placement
from lower to higher job
G. Promotion
____ 5. organization invites and
H. Transfer
solicits applicants
I. Training & Develop-
____ 6. forecasting and deter-
ment
mining manpower needs
J. Performance
____ 7. enhancing the skills and
knowledge of the employees Evaluation

____ 8. aims to understand the

abilities of a person for future
growth
____ 9. candidates are made
familiar to the work units.
____ 10. assigning him/her to a
particular job position.

4
TRAINING AND DEVELOPMENT

Training implies enhancing the skills and knowledge of the

employees for performing a specific job. The crucial consequence of
training is learning.

(https://images.app.goo.gl?DhyZN9EfwzDV7xdB6)

Training refers to learning given by organizations to its

employees that concentrates on short-term job performance and
acquisition or improvement of job related skills.

Development refers to the learning given by organizations

to its employees that is geared toward the individual’s acquisition and
expansion of his or her skills in preparation for future job appointments
and other responsibilities.

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The Typical of Training Process

1. Conducting the Trainings

Needs Assessment
This must be done systematically in
order to ascertain if there really is a
need for training. Determinants of
training types like the business
condition and the economic,
strategic, and technological changes
that are happening in the
organization’s environment, tasks,
and persons/individuals, are must be
first observed for planning training
programs.
Task analysis involves, for example,
a checking of job requirements to
find out if all these are being done to
meet company goals. If not, this may
be a go-signal to train or retain
personnel. Person analysis
determines who among the
employees need training or (https://images.app.goo.gl/
retraining. This is to avoid wNrZoCdtk5AnboHc9)
spending for the training of
employees who no longer need it.

6
2. Designing the Training Program
This phase involves stating the instructional objectives that
describe the knowledge, skills, and attitudes that have to be
acquired or enhanced to be able to perform well. Another thing to
be considered is trainee readiness and motivation. This refers to
the trainees’ background knowledge and experience, so that the
training to be given will not go to waste.

3. Identify Training Goals and Objectives

For larger training programs, break your training goals into
specific segments of bite-sized learning objectives. A learning
objective for food service training for example, might be
“employees will be able to complete the steps for preparing and
cleaning the roller grill. Having smaller goals that contribute to your
overall goals help employees gain confidence throughout the
training process.

4. Implementing the Training Program

Various type of training program implementation includes on-
the-job training, apprenticeship training, classroom instruction,
audio-visual method, and e-learning.

5. Evaluating the Training

The positive effects of the training program may be seen by
assessing the participant’s reactions, their acquired learning, and
their behavior after completing the said training.

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 (https:images.app.goo.gl/RfjU6md2HD1R8RE8)

LEARNING PRINCIPLES
Modelling – the use of personal behaviour to demonstrate the
desired behaviour or method to be learned
Feedback and Reinforcement- learning by getting comments
or feedback from the trainees themselves, from trainer, or fellow
trainees, which can help the individual realized what they are
doing good or bad; reinforcement is accomplished through verbal
encouragement of by giving rewards such as prizes, award and
others.
Massed vs. Distributed learning- learning by giving training
through either few, long hours of training (massed) or series of
short hours of training (distributed).
Goal-setting – learning through the explanation of training goals
and objectives
Individual Differences- training program that take into
account the individual differences of the trainees in order to
facilitate each person style and rate of learning.
Active Practice and Repetition- learning through the giving of
frequent opportunities to trainees to do their job tasks properly.

8
Benefits of Trained Personnel
 Improves morale of employees –training helps the employee
to get job security and job satisfaction. The more satisfied the
employee is and the greater is his morale, the more he will
contribute to organizational success and the lesser will be
employee absenteeism and turnover.
 Less supervision –a well-trained employee will be well-
acquainted with the job and will need less supervision. Thus,
there will be less wastage of time and effort.
 Fewer accidents –the more trained an employee is, the less
are the chances of committing accidents in the job and the
more proficient the employee becomes.
 Chances of promotion –during trainings the employee
acquire skills and efficiency. They become more eligible for
promotion. They become an asset for the organization.
 Increased productivity –a well-trained employees show both
quantity and quality performance. There is less wastage of
time, money and resources if employees are properly trained.

(https:images.app.goo.gl/Jt3CF8krV61Kc76)

9
COMPENSATION ADMINISTRATION
This is a segment of management or human resource
management focusing in planning, organizing and controlling the
direct and indirect payments employees received for the work they
perform. The important task of the compensation administration is
to attract, retain, and keep top talent with competitive
compensation within the budget of the organization.

Types of (https:images/goo.gl/qc8HeheXsQ6QkAxm6)

Compensation
Direct Compensation – includes workers’ salaries, incentive
pays, bonuses, and commission
Indirect Compensation- includes benefits given employers
other than financial remunerations; for example: travel,
educational and health benefits and others
Nonfinancial Compensation- includes recognition
programs, being assigned to do rewarding jobs, or enjoying
management support, ideal working environment, and
convenient working hours.
10
Basic Components of Compensation Program
Base Pay- refers to cash that employers’ pays for work
performed (wage or salary). Salary is a fixed amount given to
the employees for their performance or productivity at the end
of the month whereas wages are hourly or daily-based
payment given to labor for amount of work finished in a day.
Wage and Salary Add-ons – this include cost-of-living
adjustments (or COLAs), overtime, holiday and other premium
wages, travel and apparel expenses and a host of related
forms of premiums and reimbursements
Incentive Payments- refers to the funds employees receive for
meeting performance or output goals as well as to seniority
and merit
Benefits- this includes paid time off, health insurance,
deferred incomes such as pension and profit sharing
programs, company cars, fitness club memberships, child
care services, and tuition fee reimbursement.

(https://images.goo.gl/uPFSjZxXKKd4GWU9)

11
Factors of Determining Rates

The interaction among the following factors affects the

actual pay rates employees received, according to Richard I.
Henederson, author of Compensation Management in a
Knowledge-Based World: (1) types and levels of skills and
knowledge required, (2) types of business, (3) union affiliation or
no union affiliation, (4)capital-intensive or labor intensive,(5)
company size, (6) management philosophy,(7)complete
compensation package, (8) geographic location, (9) labor supply
and demand,(10) company profitability, (11) employment stability,
(12) gender difference, and (13) length of employment and job
performance.

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12
PERFORMANCE APPRAISAL
Performance appraisal is a systematic evaluation of the
performance of employees. It also aims to understand the abilities
of a person for further growth and development.
Objectives of Performance Appraisal
 To maintain records in order to determine compensation
packages, wage structure, salaries raises, etc.
 To identify the strengths and weakness of employees to place
right men on the right jobs.
 To maintain and assess the potentials present in a person for
further growth and development.
 To provide feedback to employees regarding their performance
and related status.
 It serves as a basis for influencing working habits of the
employees.
 To review and retain the promotional and other training
programs.

(https://images.app.goo.gl/QjFcAcxgxFGS6qUH7)

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 (https://images.app.goo.gl/eCN78EYvrLK9ZqNR8)

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the
company which can be justified by the following advantages:
 Promotion: Performance Appraisal helps the supervisors
to chalk out the promotion program for efficient employees. In
this regard, inefficient workers can be dismissed or demoted in
case.
 Compensation: Performance Appraisal helps in planning
compensation packages for employees. Merit rating is possible
through performance appraisal. Performance Appraisal tries to
give worth to a performance. Compensation packages which
include bonus, high salary rates, extra benefits, allowances
and pre-requisites are dependent on performance appraisal.
 Employees Development: The training policies and
programs are based on the performance appraisal results. It
helps to analyze strengths and weakness of employees so that
new jobs can be designed for efficient employees.

14
 Selection Validation: Performance Appraisal helps the
supervisors to understand the validity and importance of the
selection procedure. The supervisors come to know the validity
and thereby the strengths and weaknesses of the selection
procedure.
 Communication: Through performance Appraisal,
communication can be sought for the following ways:
1. Through performance appraisal, employees can
understand and accept skills subordinates.
2. The subordinates can also understand and create trust and
confidence in supervisors.
3. It also helps in maintaining cordial and congenial labor
management relationship
4. It develops the spirit of work and boosts the morale of
employees
 Motivation: Performance Appraisal serves as a
motivational tool. Through evaluating performance of
employees, a person’s efficiency can be determined if the
targets are achieved.

(encrypted-tbn0.gstatic.com)

15
Performance Appraisal Methods

Trait methods- performance evaluation method designed to

find out if the employee possesses important work
characteristics such as conscientiousness, creativity,
emotional stability, and others.

Graphic method- performance appraisal method where each

characteristics to be evaluated is represented by a scale on
which the evaluator or rater indicates the degree to which
an employee possess that characteristic.

Forced-choice method- performance evaluation that requires

the rater to choose from two statements purposely
designed to distinguish between positive or negative
performance.

Behaviorally anchored rating scale (BARS)- a behavioral

approach to performance appraisal that includes five to ten
vertical scales, one for each important strategy for doing
the job and numbered according to its importance.

Behavior Observation scale (BOS)- a behavioral approach to

performance appraisal that measures the frequency of
observed behavior.

16
ACTIVITY 1
MATCHING TYPE
Directions: Match column A to Column B. Write the letter of
your answer on the space provided.

COLUMN A COLUMN B

______1. HEALTH INSURANCE

A. BASE PAY
______ 2. WAGE B. INCENTIVE PAYMENT
______ 3. COMPANY CARS C. BENEFITS

______ 4. COST OF LIVING D. SALARY ADD-ONS

ALLOWANCE

______ 5. MERIT PAY

______ 6. COMMISSIONS

______ 7. SALARY

______ 8. TRAVEL EXPENSES

______ 9. FITNESS CLUB

MEMBERSHIP

______ 10. OVERTIME PAY

17
ACTIVITY 2

ENUMERATION
Give the following.
Benefits of Trained Personnel Performance Appraisal Method
1. 6.
2. 7.
3. 8.
4. 9.
5. 10.

ACTIVITY 3
DIRECTIONS: Give your own insights about the statement.
“People work for money but go extra mile for recognition,
praise and rewards” by Dale Carnegie
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________

18
We’re almost done! Here’s a
recap of what we have learned
today. Review them once again,
and get ready for the Post Test
on the next page! You’re doing
great! Keep it up!

 Training refers to learning given

by organizations to its employees
that concentrates on short term job
performance and acquisition of
improvement of job-related skills.
 Development refers to leaning
given by the organization to its
employees that is geared toward the
individual’s acquisition and
expansion of his or her skills in
preparation for future job
appointments and other

 Training typically covers five procedures (1) conduct the

training needs assessment, (2) designing the training
program, (3)Identifying the Goals and Objectives, (4)
implementing the training program, and (5)
evaluating the training.

19
Compensation/wages is all forms of pay given by
employers to their employees for the job performance of
their job.

ompensations may be direct, indirect, or nonfinancial

compensations.

asic components of compensation program are base pay,

wage and salary add-ons, incentive payments, and
benefits.

erformance appraisal is a systematic evaluation of the

performance of employees.

t is said that performance appraisal is an investment for the

company which can be justified by the following advantages:
promotion, compensation, employees’ development,
selection validation, communication, and motivation

20
IDENTIFICATION:
Directions: Supply the word or group of words being described
or defined.
1. ______________ a behavioral approach to performance
appraisal that measures the frequency of the observed
behavior.

2. _____________ a behavioral approach to performance

appraisal that includes five to ten vertical scales, one for
each important strategy for doing the job and numbered
according to its importance.

3. ____________ performance evaluation that requires the rater

to choose from two statements purposely designed to
distinguish between positive or negative performance.

4. ______________ performance appraisal method where each

characteristics to be evaluated is represented by a scale on
which the evaluator or rater indicates the degree to which an
employee possesses that characteristics.

5. _____________ this involves checking of job requirements to

find out if all these are being done to meet company goals. If
not, this may be a go-signal to train or retain personnel.

6. _____________ determines who among the employees need

training or retraining. This is to avoid spending for the
training of employees who no longer need it.

21
7. _____________ is the first phase in designing training program
for an organization.

8. _____________ this phase of training program that involves

stating the instructional objectives that describe the knowledge,
skills, and attitudes that have to be acquired or enhanced by
the employees.

9. ____________ is the last phase of the training program wherein

the organization checks on the positive effects of the training.

10. ____________ is a learning principle that uses personal

behavior to demonstrate the desired behavior or method to be
learn.

11. ___________ is learning by getting comments or feedback or

encouragement from the trainers.

12. ____________ is learning by giving training through few-long

hours of training

13. ____________ is learning by giving training through series of

short hours of training.

14. ____________ is learning through the explanation of the

training goals and objectives by the trainers to the trainee.

15. ____________ is learning through the giving of frequent

opportunities to trainees to do their job task properly.

22
16. ____________ its task is to attract, retain, and keep top talent
within the budget.

17. ____________ refers to the cash that an employer pays for

the work performed.

18. ____________ this includes cost-of-living allowance (COLA’s),

overtime pay, holiday and other premium wage.

19. ____________ refers to funds employees receive for meeting

performance or output goals as well as to seniority or merit
pay.

20. ___________ this includes paid time off, health insurance,

deferred income such as pension and profit sharing programs,
company cars, fitness club membership and tuition
reimbursement.

23
It’s time to check your answers!
Remember, honesty is important so
that you can effectively assess your
learning. Don’t feel pressured, I know
you did your best! Let’s now have a
look at these answers for the Pre-Test
and Review.

15. True
14. False
13. False
12. True
11. True
10. False 10. F
9. False 9. E
8. True 8. J
7. True 7. I
6. False 6. C
5. False 5. B
4. False 4. G
3. True 3. H
2. True 2. A
1. True 1. D
True or False REVIEW
PRE-TEST

24
 25
ACTIVITY # 3 (ESSAY)
Note: Answers may vary and would depend on ones percep-
tions, insights, and experiences.
ACTIVITY # 2
ACTIVITY # 1
Benefits of Trained Personnel
1. C
1. improves employees’ morale
2. A
2. Less supervision
3. C
3. Fewer accidents
4. D
4. Chance of promotion
5. B
5. Increased productivity
6. B
7. A
Performance Appraisal Method
8. D
6. trait method
9. C
7. graphic rating method
8. forced-choice method 10. D
9. behaviourally anchored rating scale
10. behaviour observation scale
answers for Practice Time!
Now, let’s look at these
 26
IDENTIFICATION
1. Beharior observation scale (BOS)
2. Behaviourally anchored rating scale (BARS)
3. Forced-choice method
4. Graphic rating scales
5. Tasks analysis
6. Person analysis
7. Training need assessment
8. Design training program
9. Evaluating the training
10. Modelling
11. Feedback and reinforcement
12. Massed training
13. Distributed training
14. Goal-setting
15. Active practice and repetition
16. Compensation administration
17. Base pay
18. Wage and salary add-ons
19. Incentive payment
20. Benefits
Post Test!
these answers for the
And finally, let’s look at
Biore, C.(2019). Introduction to Business Management Made
Easy. Academicians, Students and Educators Alliance, Inc.
(ASEAN).

Cabrera, H.M, et.al.(2016).Oranization and Management.

Quezon City.Vibal Group Inc.

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